<PAGE> 1
[LOGO TOUCHSTONE]
---------------------------
Touchstone Variable Annuity
----------------
Select Advisors Variable
Insurance Trust
- Emerging Growth Portfolio
- International Equity Portfolio
- Balanced Portfolio
- Income Opportunity Portfolio
- Standby Income Portfolio
- --------------------------------------------------------------------------------
ANNUAL REPORT
DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<PAGE> 2
EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES (Note 1)
- ------ --------
<S> <C> <C>
COMMON STOCKS (88.3%)
ADVERTISING (0.4%)
8,800 Mastering*...................... $ 80,300
-----------
AUTOMOTIVE (2.4%)
4,800 Bandag, Class A................. 229,800
8,900 Exide........................... 230,288
-----------
460,088
-----------
BANKING (4.2%)
1,000 Bank United, Class A............ 48,938
9,600 Dime Bancorp.................... 290,400
12,600 Golden State Bancorp*........... 470,925
-----------
810,263
-----------
BEVERAGES, FOOD & TOBACCO (3.3%)
9,000 DiMon........................... 236,250
13,000 Ralcorp Holdings*............... 220,188
4,000 Robert Mondavi, Class A*........ 195,000
-----------
651,438
-----------
BUILDING MATERIALS (2.8%)
10,000 Calmat.......................... 278,750
7,100 Martin Marietta Materials....... 259,587
-----------
538,337
-----------
CHEMICALS (2.7%)
14,400 Calgon Carbon................... 154,800
7,400 Standard Products............... 189,625
11,500 Vivid Technologies*............. 182,563
-----------
526,988
-----------
COMMERCIAL SERVICES (8.9%)
6,000 Administaff*.................... 155,250
5,000 Advance Paradigm*............... 158,750
11,500 A. C. Nielson*.................. 280,313
9,000 Boron Lepore & Associates*...... 247,500
13,500 Metromail*...................... 241,313
3,700 National Service Industries..... 183,381
5,000 Stewart Enterprises............. 233,125
6,200 Wallace Computer Services....... 241,025
-----------
1,740,657
-----------
COMMUNICATIONS (2.0%)
6,700 Cable Design Technologies*...... 260,463
8,000 Geotel Communications Group*.... 125,000
-----------
385,463
-----------
COMPUTERS & INFORMATION (6.5%)
8,000 EMC*............................ 219,500
12,200 Gerber Scientific............... 242,475
25,300 Intergraph*..................... 253,000
5,500 Saville Systems, ADR*........... 228,250
18,500 Scitex*......................... 223,156
2,500 Sterling Commerce*.............. 96,094
-----------
1,262,475
-----------
COMPUTER SOFTWARE & PROCESSING (9.7%)
5,000 Cambridge Technology Partners*.. 208,125
3,000 CBT Group*...................... 246,375
7,500 Devry*.......................... 239,063
5,000 HNC Software*................... 215,000
5,000 Keane*.......................... 203,125
4,100 Policy Management System*....... 285,206
COMPUTER SOFTWARE &
PROCESSING--CONTINUED
20,000 PSW Technologies*............... $ 290,000
5,000 Wind River Systems*............. 198,438
-----------
1,885,332
-----------
ELECTRONICS (3.6%)
3,900 Commscope*...................... 52,406
12,600 Magnetek*....................... 245,700
2,310 Sanmina*........................ 156,503
8,000 Sipex Corporation*.............. 242,000
-----------
696,609
-----------
ENTERTAINMENT & LEISURE (0.4%)
2,000 Cinar Films, Class B*........... 77,750
-----------
FINANCIAL SERVICES (5.1%)
5,375 First Security.................. 225,078
10,300 Life USA Holdings*.............. 173,813
5,600 Meditrust....................... 205,100
2,600 Seacor Smit*.................... 156,650
13,500 T&W Financial*.................. 224,438
-----------
985,079
-----------
HEALTH CARE PROVIDERS (0.6%)
12,000 Dianon Systems*................. 112,500
-----------
HEAVY INDUSTRY (2.9%)
13,000 Comfort Systems USA*............ 256,750
8,059 Flowserve....................... 225,148
5,200 Global Industrial
Technologies*................. 88,075
-----------
569,973
-----------
HOME CONSTRUCTION, FURNISHINGS &
APPLIANCES (2.2%)
4,200 Herman Miller................... 229,163
4,600 LA-Z-Boy Chair.................. 198,375
-----------
427,538
-----------
INDUSTRIAL (3.3%)
8,000 CN Bioscience*.................. 200,000
6,000 General Cable................... 217,125
5,600 Wesley Jessen Visioncare*....... 218,400
-----------
635,525
-----------
INSURANCE (1.2%)
2,800 HSB Group....................... 154,525
6,100 Willis Coroon Group, ADR........ 75,106
-----------
229,631
-----------
MEDIA--BROADCASTING &
PUBLISHING (4.4%)
5,000 American Radio Systems*......... 266,563
2,300 Central Newspapers, Class A..... 170,056
17,600 Hollinger International......... 246,400
5,600 Lee Enterprises................. 165,550
-----------
848,569
-----------
MEDICAL (0.9%)
10,000 Atria Communities*.............. 171,250
-----------
MEDICAL SUPPLIES (2.0%)
7,500 EG&G............................ 156,094
14,400 Elsag Bailey*................... 237,600
-----------
393,694
-----------
METALS (0.9%)
4,100 Harsco.......................... 176,813
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE> 3
EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS--CONTINUED
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES (Note 1)
- ------ -----------
<S> <C> <C>
OIL & GAS (4.0%)
6,500 Equitable Resources............. $ 229,938
24,000 Grey Wolf*...................... 129,000
7,200 Nabors Industries*.............. 226,350
5,000 Natural Gas Clearinghouse....... 87,500
7,000 Quaker State.................... 99,750
-----------
772,538
-----------
PHARMACEUTICALS (2.1%)
7,700 Chirex*......................... 135,713
14,000 Digene*......................... 120,750
20,000 Sequus Pharmaceuticals*......... 148,750
-----------
405,213
-----------
REAL ESTATE (1.4%)
6,000 CCA Prison Realty Trust......... 267,750
-----------
RETAILERS (2.4%)
34,000 Charming Shoppes................ 159,375
6,800 Stanhome........................ 174,675
6,300 Zale............................ 144,900
-----------
478,950
-----------
TELEPHONE SYSTEMS (0.6%)
5,000 Startec Global Communication*... 111,875
-----------
TEXTILES, CLOTHING & FABRICS (1.9%)
7,000 Albany International............ 161,000
18,200 Stride Rite..................... 218,400
-----------
379,400
-----------
TRANSPORTATION (5.5%)
6,400 Alexander & Baldwin............. $ 174,800
15,200 Fritz Companies*................ 211,850
10,400 JB Hunt Transportation
Services...................... 195,000
8,500 Knightsbridge Tankers........... 240,656
9,700 Newport News Shipbuilding....... 246,744
-----------
1,069,050
-----------
TOTAL COMMON STOCKS (COST $14,331,373)...
17,151,048
-----------
TOTAL INVESTMENTS AT VALUE (88.3%)
(COST $14,331,373) (A)................... 17,151,048
CASH AND OTHER ASSETS
NET OF LIABILITIES (11.7%)............... 2,265,902
-----------
NET ASSETS (100.0%)...................... $19,416,950
===========
</TABLE>
- ------------------------------
NOTES TO THE SCHEDULE OF INVESTMENTS:
* Non-income producing security.
(a) The aggregate identified cost for federal income tax purposes
is $14,331,750, resulting in gross unrealized appreciation and
depreciation of $3,081,914 and $262,616, respectively, and net
unrealized appreciation of $2,819,298.
ADR - American Depositary Receipt
- --------------------------------------------------------------------------------
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES (Note 1)
------ --------
<S> <C> <C>
COMMON STOCKS (91.7%)
AUSTRALIA (0.5%)
1 Broken Hill Proprietary..... $ 9
1,900 Erste Banks*................ 94,688
-----------
94,697
-----------
BRAZIL (1.7%)
2,700 Centrais Electricas
Brasileiras, ADR.......... 68,950
3,900 Cia Paranaense Energy,
ADR....................... 53,381
8,200 Cia Vale Do Rio Doce........ 164,952
400 Telecomunicacoes
Brasileiras, ADR.......... 46,575
-----------
333,858
-----------
CANADA (3.2%)
1,695 BCE......................... 56,751
4,693 Canadian Imperial Bank...... 146,128
600 Newbridge Network*.......... 21,096
300 Northern Telecom............ 26,743
4,650 Petro-Canada................ 85,409
2,771 Royal Bank of Canada........ 146,863
2,900 Suncor...................... 99,430
1,410 Talisman Energy*............ 41,931
-----------
624,351
-----------
CHILE (1.0%)
2,195 Chilgener................... $ 56,066
4,495 Compania De
Telecomunicaciones........ 134,288
-----------
190,354
-----------
DENMARK (0.8%)
393 Den Danske Bank............. 52,386
6,755 Sas Danmark................. 98,623
-----------
151,009
-----------
FINLAND (0.7%)
3,918 Pohjola Insurance,
Class B................... 145,295
-----------
FRANCE (12.7%)
674 Accor....................... 125,356
2,529 Alcatel Alsthom............. 321,563
3,044 AXA......................... 235,617
2,811 Banque National De Paris.... 149,462
2,547 Cap Gemini.................. 208,916
3,445 Credit Commercial De
France.................... 236,194
5,203 France Telecom*............. 188,783
3,423 Lagardere Groupe............ 113,218
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE> 4
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS--CONTINUED
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES (Note 1)
------ --------
<S> <C> <C>
FRANCE--CONTINUED
4,632 Renault*.................... $ 130,341
7,019 Rhone Poulenc............... 314,522
1,562 Societe National
Elf-Aquitaine............. 181,734
1,541 Suez Lyonnaise Des Eaux-
Dumex..................... 170,582
1,286 Total S.A., Series B........ 140,003
-----------
2,516,291
-----------
GERMANY (4.2%)
3,128 Bayerische Vereinsbank...... 204,764
510 Mannesmann.................. 257,836
3,660 Rhein-Westfael
Elektricitaet............. 196,435
1,693 Schering.................... 163,368
-----------
822,403
-----------
GREAT BRITAIN (28.2%)
3,300 Airtours.................... 67,238
10,300 Allied Irish Banks.......... 98,282
15,071 Amvesco..................... 128,963
71,109 Avis Europe................. 203,306
20,731 Boots....................... 298,572
9,794 British Aerospace........... 279,214
39,132 British Gas................. 176,182
16,773 British Petroleum........... 222,000
14,400 Compass Group............... 177,224
17,700 CRH......................... 205,331
3,940 GKN......................... 80,731
11,394 Glaxo Wellcome.............. 271,747
18,928 Great Universal Stores...... 238,549
13,530 JJB Sports.................. 146,063
19,879 Lloyds TSB Group............ 258,720
7,264 Mercury Assets Management... 202,939
12,124 National Westminster........ 202,801
17,817 Next........................ 203,457
15,614 Railtrack Group............. 248,095
31,163 Royal & Sun Alliance
Insurance Group........... 313,890
26,004 Sainsbury(J)................ 217,488
32,453 Shell Transport & Trading... 227,698
3,871 Siebe....................... 76,010
24,324 Tesco....................... 197,842
24,192 Unilever.................... 208,176
5,700 Virgin Express Holdings,
ADR*...................... 118,275
40,194 Vodafone Group.............. 289,937
44,887 WPP Group................... 197,666
-----------
5,556,396
-----------
IRELAND (1.2%)
15,150 Bank Of Ireland............. 232,507
-----------
ISRAEL (0.7%)
3,470 ECI Telecommunications...... 88,485
220 Geotek Communications....... 337
1,050 Teva Pharmaceutical
Industries, ADR........... 49,678
-----------
138,500
-----------
ITALY (5.8%)
9,275 Assicurazione Generali...... 228,365
90,762 Credito Italiano............ 280,910
192,863 Montedison.................. 173,009
ITALY--CONTINUED
30,221 Stet RISP................... $ 132,866
47,082 Telecom Italia Mobile....... 217,355
18,840 Telecom Italia.............. 120,585
-----------
1,153,090
-----------
JAPAN (8.4%)
900 Acom........................ 49,627
1,700 Aoyama Trading.............. 28,773
4,000 Bank of Tokyo............... 55,141
4,000 Bridgestone................. 86,693
3,000 Canon....................... 69,845
7,000 Fujitsu..................... 75,053
2,000 Fuji........................ 76,584
2,000 Honda Motor................. 73,368
4 Japan Tobacco............... 28,367
4,000 Kao......................... 57,591
1,100 Konami Company.............. 27,042
6,000 Minebea..................... 64,331
4,000 Mitsubishi Estate........... 43,500
5,000 Mitsubishi Trust............ 50,163
500 Nintendo.................... 49,397
4,000 Nippon Comsys............... 49,320
16 Nippon Telegraph and
Telephone................. 68,620
190 Nippon Television Network... 55,730
2,000 Nomura Securities........... 26,651
810 Promise Company............. 44,912
1,000 Rohm Company................ 101,857
1,000 Sankyo...................... 22,592
6,000 Sekisui House............... 38,553
900 Sony........................ 79,954
1,000 TDK......................... 75,359
3,000 Terumo...................... 44,113
2,800 Tokyo Elec Power............ 51,036
4,000 Toyota Motor................ 114,570
2,000 Yamanouchi Pharmaceutical... 42,887
-----------
1,651,629
-----------
MEXICO (3.2%)
17,108 Cemex, Class B*............. 90,940
28,895 Fomento Economico
Mexicano.................. 232,363
39,085 Kimberly-Clark Mexico,
Series A.................. 185,001
2,200 Telefonos De Mexico......... 123,338
-----------
631,642
-----------
NETHERLANDS (4.1%)
1,038 Ahrend...................... 32,628
2,226 Benckiser*.................. 92,160
5,717 Ing Groep................... 240,924
3,893 Koninklijke PTT
Nederland NV.............. 162,521
1,792 Philips Electronics......... 107,529
6,070 Verenigde Nederlandse....... 171,332
-----------
807,094
-----------
NORWAY (0.1%)
1,961 Sas Norge, Class B.......... 27,358
-----------
PORTUGAL (0.5%)
1,300 Portugal Telecom, ADR....... 61,100
800 Portugal Telecom............ 37,120
-----------
98,220
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
18
<PAGE> 5
INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS--CONTINUED
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES (Note 1)
------ --------
<S> <C> <C>
RUSSIA (0.8%)
550 AO Tatneft.................. $ 78,161
7,000 JSC Surgutneftegaz.......... 71,548
-----------
149,709
-----------
SOUTH AFRICA (0.0%)
1 South African Breweries,
ADR....................... 25
-----------
SPAIN (1.4%)
3,103 Banco Popular Espanola...... 216,915
1,370 Sol Melia................... 54,854
-----------
271,769
-----------
SWEDEN (3.3%)
1,658 Electrolux.................. 115,104
26,883 Nordbanken Holding*......... 152,082
2,941 Skandia Forsakrings......... 138,772
10,403 Sparbanken Sverige.......... 236,587
-----------
642,545
-----------
SWITZERLAND (8.4%)
30 Julius Baer Holdings........ 55,595
61 Kuoni Reisen Holdings....... 228,382
124 Liechtenstein Global
Trust..................... 76,739
239 Novartis.................... 388,813
276 Rentenenstalt............... 216,482
30 Roche Holding............... 148,784
109 Sairgroup*.................. 149,075
544 Schweizerische
Bankverein*............... 168,890
78 Swiss Reinsurance........... 145,722
60 Union Bank of Switzerland... 86,655
-----------
1,665,137
-----------
UNITED STATES (0.4%)
2,300 Lukoil Holdings............. $ 71,390
-----------
VENEZUELA (0.4%)
2,200 Cia Anonima Telef De
Venezuela................. 91,575
-----------
TOTAL COMMON STOCKS (COST $16,740,223)... 18,066,844
-----------
PREFERRED STOCKS (2.8%)
GERMANY (2.8%)
4,155 Henkel...................... 262,287
872 Sap AG Vorzug............... 285,413
-----------
TOTAL PREFERRED STOCKS (COST $458,852)... 547,700
-----------
TOTAL INVESTMENTS AT VALUE (94.5%) (COST
$17,199,075) (a)......................... 18,614,544
CASH AND OTHER ASSETS NET OF LIABILITIES
(5.5%)................................... 1,088,187
-----------
NET ASSETS (100.0%)...................... $19,702,731
===========
</TABLE>
- ------------------------------
NOTES TO THE SCHEDULE OF INVESTMENTS:
* Non-income producing security.
(a) The aggregate identified cost for federal income tax purposes
is $17,343,781, resulting in gross unrealized appreciation and
depreciation of $1,737,547 and $466,784, respectively, and net
unrealized appreciation of $1,270,763.
ADR - American Depositary Receipt
RISP - Risparmio (Italian "Savings Shares")
- --------------------------------------------------------------------------------
BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES (Note 1)
------ --------
<S> <C> <C>
COMMON STOCKS (57.4%)
ADVERTISING (1.6%)
8,000 WPP Group................... $ 361,000
-----------
AEROSPACE & DEFENSE (3.1%)
6,100 Boeing...................... 298,519
3,900 Lockheed Martin............. 384,150
-----------
682,669
-----------
AIRLINES (1.6%)
2,800 AMR*........................ 359,800
-----------
BANKING (3.0%)
2,900 Citicorp.................... 366,669
900 Wells Fargo................. 305,494
-----------
672,163
-----------
BEVERAGES, FOOD &
TOBACCO (2.6%)
6,500 Diageo...................... 246,188
6,800 McDonald's.................. 324,700
-----------
570,888
-----------
CHEMICALS (2.4%)
13,000 Monsanto.................... 546,000
-----------
COMPUTERS & INFORMATION (1.2%)
9,400 EMC*........................ $ 257,913
-----------
ELECTRONICS (9.0%)
8,900 Adaptec*.................... 330,413
3,800 Avnet....................... 250,800
20,133 Commscope*.................. 270,537
20,600 Nextlevel Systems*.......... 368,225
6,600 Solectron*.................. 274,313
12,900 Ucar International*......... 515,194
-----------
2,009,482
-----------
ENTERTAINMENT & LEISURE (3.2%)
9,400 Polaroid.................... 457,663
4,000 Time Warner................. 248,000
-----------
705,663
-----------
FINANCIAL SERVICES (10.7%)
14,400 Countrywide Credit.......... 617,400
3,600 Federal National Mortgage
Association............... 205,425
8,000 Renaissancere Holdings...... 353,000
18,900 Sabre Group Holding*........ 545,738
</TABLE>
The accompanying notes are an integral part of the financial statements.
19
<PAGE> 6
BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS--CONTINUED
DECEMBER 31, 1997
<TABLE>
<CAPTION>
VALUE
SHARES (Note 1)
------ ---------
<S> <C> <C>
FINANCIAL
SERVICES--CONTINUED
9,200 Security Capital Group,
Class B*.................. $ 299,000
15,300 Security Capital Industrial
Trust..................... 380,588
-----------
2,401,151
-----------
HEALTH CARE PROVIDERS (1.8%)
11,800 Tenet Healthcare*........... 390,875
-----------
HEAVY INDUSTRY (3.4%)
4,900 Caterpillar................. 237,956
15,100 Lucasvarity................. 526,613
-----------
764,569
-----------
INDUSTRIAL (1.6%)
4,700 Armstrong World
Industries................ 351,325
-----------
LODGING (1.1%)
16,800 Homestead Village
Property*................. 253,050
-----------
METALS (1.1%)
9,300 Allegheny Teledyne.......... 240,630
-----------
OIL & GAS (2.3%)
8,500 Anadarko Petroleum.......... 515,844
-----------
REAL ESTATE (1.5%)
9,900 Oakwood Homes............... 328,556
-----------
TELEPHONE SYSTEMS (2.3%)
8,700 Sprint...................... 510,038
-----------
TEXTILES, CLOTHING &
FABRICS (2.9%)
34,200 Shaw Industries............. 397,575
6,000 Unifi....................... 244,125
-----------
641,700
-----------
TRANSPORTATION (1.0%)
8,300 Canadian Pacific............ 226,175
-----------
TOTAL COMMON STOCKS (COST $11,736,957)... 12,789,491
-----------
PRINCIPAL
AMOUNT
- ---------
<S> <C> <C>
CORPORATE BONDS (12.4%)
BANKING (3.3%)
$ 100,000 Bankers Trust-NY, 7.125%,
03/15/06.................. 102,880
250,000 BB&T, 7.25%, 06/15/07....... 263,025
250,000 Chase Manhattan, 7.25%,
06/01/07.................. 262,096
806,615 Nykredit, 6.00%, 10/01/26... 114,797
-----------
742,798
-----------
BEVERAGES, FOOD &
TOBACCO (0.7%)
160,000 Coca-Cola Femsa, 8.95%,
11/01/06.................. 166,888
-----------
CHEMICALS (0.5%)
100,000 Belo, 6.875%, 06/01/02...... 101,704
-----------
ELECTRIC UTILITIES (1.0%)
215,000 Financiera Energy, 9.375%,
06/15/06.................. 216,679
-----------
<CAPTION>
PRINCIPAL VALUE
AMOUNT (Note 1)
- ---------- --------
<S> <C> <C>
CORPORATE BONDS--CONTINUED
FINANCIAL SERVICES (3.4%)
$ 20,000 Access Financial, 7.10%,
05/15/21.................. $ 20,425
250,000 Bonos Del Tesoro, 8.75%,
05/09/02.................. 236,405
40,000 G.E. Capital Management
Service, 6.50%,
11/25/23.................. 36,903
44,500 G.E. Capital Management
Service, 6.50%,
03/25/24.................. 43,065
300,000 New Brunswick, 7.125%,
10/01/02.................. 312,396
120,000 Paine Webber Group, 7.00%,
03/01/00.................. 121,613
-----------
770,807
-----------
METALS (1.4%)
300,000 AK Steel, 9.125%,
12/15/06.................. 307,500
-----------
OIL & GAS (0.7%)
150,000 Petroleos Mexicanos, 8.85%,
09/15/07.................. 148,500
-----------
RETAILERS (1.4%)
300,000 Rite Aid, 7.125%,
01/15/07.................. 311,722
-----------
TOTAL CORPORATE BONDS
(COST $2,749,445)........................ 2,766,598
-----------
MORTGAGE BACKED SECURITIES (0.7%)
35,000 Federal National Mortgage
Association, 6.15%,
10/25/07.................. 34,984
9,359 Federal National Mortgage
Association, 5.00%,
10/25/03.................. 9,317
40,000 Merrill Lynch Mortgage
Investment, 7.09%,
12/26/25.................. 40,800
2,566 Merrill Lynch Mortgage
Investment, 9.70%,
07/15/10.................. 2,613
23,825 Merrill Lynch Mortgage
Investment, 7.65%,
01/15/12.................. 24,370
50,000 Prudential Home Mortgage
Securities, 6.25%,
04/25/24.................. 45,950
-----------
TOTAL MORTGAGE BACKED SECURITIES
(COST $154,006).......................... 158,034
-----------
MUNICIPAL BONDS (1.4%)
40,000 Baltimore Community
Development Financing,
8.20%, 08/15/07........... 44,000
15,000 Colorado Housing Finance
Authority, 8.00%,
08/01/02 ................. 15,009
20,000 Michigan State Job
Development Authority,
7.10%, 05/01/98........... 20,076
65,000 New York City, New York,
General Obligation, 0.00%,
11/15/14.................. 53,056
</TABLE>
The accompanying notes are an integral part of the financial statements.
20
<PAGE> 7
BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS--CONTINUED
DECEMBER 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (Note 1)
- --------- --------
<S> <C> <C>
MUNICIPAL BONDS--CONTINUED
$ 10,000 New York City, New York,
General Obligation, 9.75%,
08/15/12.................. $ 10,825
40,000 New York State Housing
Finance Agency Service,
7.50%, 09/15/03........... 41,050
50,000 Ohio Housing Financial
Agency, 7.90%, 10/01/14... 53,188
30,000 Oklahoma City Airport,
9.40%, 11/01/10........... 33,713
40,000 Oregon State General
Obligation, 6.90%,
01/01/00.................. 40,267
-----------
TOTAL MUNICIPAL BONDS
(COST $293,618).......................... 311,184
-----------
SOVEREIGN GOVERNMENT OBLIGATIONS (2.1%)
AUSTRALIA (1.2%)
390,000 Treasury Corp of Victoria,
7.50%, 08/15/08........... 272,358
-----------
UNITED KINGDOM (0.9%)
105,000 UK Treasury, 8.00%,
12/07/15.................. 204,459
-----------
TOTAL SOVEREIGN GOVERNMENT OBLIGATIONS
(COST $494,167).......................... 476,817
-----------
U.S. TREASURY OBLIGATIONS (20.2%)
575,000 US Treasury Bond, 6.75%,
08/15/26.................. 633,213
175,000 US Treasury Bond, 7.25%,
08/15/22.................. 202,125
840,000 US Treasury Note, 7.25%,
08/15/04.................. 907,939
700,000 US Treasury Note, 5.75%,
08/15/03.................. 700,161
<CAPTION>
VALUE
SHARES (Note 1)
- ---------- -----------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS--CONTINUED
605,000 US Treasury Note, 6.25%,
04/30/01.................. $ 614,347
300,000 US Treasury Note, 7.00%,
07/15/06.................. 323,906
765,000 US Treasury Note, 6.125%,
08/31/98.................. 767,547
345,000 US Treasury Note, 5.75%,
10/31/00.................. 345,321
-----------
TOTAL U.S. TREASURY OBLIGATIONS (COST
$4,385,300).............................. 4,494,559
-----------
<CAPTION>
UNITS
- ---------
<C> <S> <C>
WARRANTS (0.0%)
FINANCIAL SERVICES (0.0%)
1,056 Security Capital Group,
0.00%..................... 5,544
-----------
TOTAL INVESTMENTS AT VALUE (94.2%) (COST
$19,813,493)(A).......................... 21,002,227
CASH AND OTHER ASSETS NET OF LIABILITIES
(5.8%)................................... 1,284,840
-----------
NET ASSETS (100.0%)...................... $22,287,067
===========
</TABLE>
- ------------------------------
NOTES TO THE SCHEDULE OF INVESTMENTS:
* Non-income producing security.
(a) The aggregate identified cost for federal income tax purposes
is $19,813,493, resulting in gross unrealized appreciation and
depreciation of $1,434,330 and $245,596, respectively, and net
unrealized appreciation of $1,188,734.
- --------------------------------------------------------------------------------
INCOME OPPORTUNITY PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (Note 1)
- --------- --------
<S> <C> <C>
CORPORATE BONDS (41.0%)
BEVERAGES, FOOD & TOBACCO
(1.5%)
$ 400,000 Specialty Foods, 11.125%,
10/01/02.................. $ 405,000
-----------
CASINOS (1.1%)
300,000 Trump Atlantic City, 11.25%,
05/01/06.................. 292,500
-----------
CHEMICALS (4.9%)
300,000 Climachem, 10.75%,
12/01/07.................. 309,000
500,000 Panoceanic Bulk, 12.00%,
12/15/07.................. 492,500
500,000 Perry-Judd, 10.625%,
12/15/07.................. 520,000
-----------
1,321,500
-----------
COMMERCIAL SERVICES (1.2%)
300,000 RCN, 10.00%, 10/15/07....... 311,250
-----------
COMPUTER SOFTWARE &
PROCESSING (1.1%)
300,000 Details, 10.00%, 11/15/05... 306,750
-----------
ELECTRONICS (1.2%)
300,000 High Voltage Engineering,
10.50%, 08/15/04.......... 311,250
-----------
ENTERTAINMENT & LEISURE
(3.1%)
880,000 Pen-Tab Industries, 10.875%,
02/01/07.................. 844,800
-----------
FOOD RETAILERS (3.4%)
500,000 Pantry, 10.25%, 10/15/07.... 510,000
400,000 Richmont Marketing Special,
10.125%, 12/15/07......... 405,000
-----------
915,000
-----------
FOREST PRODUCTS & PAPER (0.9%)
250,000 Riverwood International,
10.625%, 08/01/07......... 253,750
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
21
<PAGE> 8
INCOME OPPORTUNITY PORTFOLIO
SCHEDULE OF INVESTMENTS--CONTINUED
DECEMBER 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (Note 1)
- --------- --------
<S> <C> <C>
HEAVY INDUSTRY (2.0%)
$ 300,000 Advanced Accesory Systems,
9.75%, 10/01/07........... $ 294,750
250,000 United Auto Group, 11.00%,
07/15/07.................. 246,250
-----------
541,000
-----------
HOME CONSTRUCTION,
FURNISHINGS & APPLIANCES (1.5%)
400,000 Sealy Mattress, 9.875%,
12/15/07.................. 410,000
-----------
INDUSTRIAL (6.9%)
300,000 Iowa Select Farms, 10.75%,
12/01/05.................. 307,875
300,000 Tuesday Morning, 11.00%,
12/15/07.................. 301,500
500,000 Viasystems, 9.75%,
06/01/07.................. 516,875
400,000 Walbro, 10.125%, 12/15/07... 410,000
300,000 Werner Holdings, 10.00%,
11/15/07.................. 307,500
-----------
1,843,750
-----------
MEDIA--BROADCASTING &
PUBLISHING (1.7%)
400,000 Frontiervision, 11.00%,
10/15/06.................. 444,000
-----------
OIL & GAS (3.1%)
500,000 Elgin National Industries,
11.00%, 11/01/07.......... 518,750
300,000 Panaco, 10.625%, 10/01/04... 303,000
-----------
821,750
-----------
RETAILERS (1.9%)
500,000 Big 5, 10.875%, 11/15/07.... 497,500
-----------
TELEPHONE SYSTEMS (5.5%)
350,000 Hyperion Telecom, 12.25%,
09/01/04.................. 386,750
300,000 Iridium LLC/Capital, 14.00%,
07/15/05.................. 325,500
400,000 Orion Network, 11.25%,
01/15/07.................. 454,000
300,000 Primus Telecommunications,
11.75%, 08/01/04.......... 322,500
-----------
1,488,750
-----------
TOTAL CORPORATE BONDS
(COST $10,737,381)....................... 11,008,550
-----------
EUROBONDS (19.3%)
BRAZIL (2.0%)
600,000 Paging Network De Brazil,
13.50%, 06/06/05.......... 546,000
-----------
DOMINICAN REPUBLIC (1.1%)
300,000 Tricom, 11.375%, 09/01/04... 291,750
-----------
ECUADOR (3.0%)
400,000 Conecel Holdings, 14.00%,
10/01/00.................. 400,000
400,000 Conecel, 14.00%, 05/01/02... 404,000
-----------
804,000
-----------
GREAT BRITAIN (1.1%)
300,000 Dialog, 11.00%, 11/15/07.... 311,250
-----------
HONG KONG (1.9%)
600,000 GS Superhighway Holdings,
10.25%, 08/15/07.......... 522,000
-----------
INDIA (1.0%)
500,000 Nippon Denro Ispat, 3.00%,
04/01/01.................. 270,000
-----------
NETHERLANDS (6.9%)
500,000 DGS International Finance,
10.00%, 06/01/07.......... 425,000
750,000 Indah Kiat Fin Mauritius,
10.00%, 07/01/07.......... 630,000
500,000 Netia Holdings, 10.25%,
11/01/07.................. 477,500
500,000 PTC International Finance
(Zero Coupon until
07/01/02, 10.75%
thereafter)(c), 0.00%,
07/01/07.................. 325,000
-----------
1,857,500
-----------
PANAMA (1.6%)
500,000 CSN Iron, 9.125%, 06/01/07.. 423,390
-----------
THAILAND (0.7%)
1,750,000 NTS Steel Group Public,
4.00%, 12/16/08........... 175,000
-----------
TOTAL EUROBONDS
(COST $5,991,536)........................ 5,200,890
-----------
SOVEREIGN GOVERNMENT OBLIGATIONS (14.0%)
ARGENTINA (2.2%)
672,000 Argentina, 6.688%,
03/31/05.................. 601,440
-----------
NIGERIA (0.7%)
250,000 Central Bank of Nigeria,
6.25%, 11/15/20........... 173,450
-----------
RUSSIA (5.2%)
2,250,000 Russia-Principal Loan(b),
6.719%, 12/15/20.......... 1,392,300
-----------
TURKEY (1.9%)
500,000 Republic of Turkey, 10.00%,
09/19/07.................. 503,100
-----------
VENEZUELA (4.0%)
714,286 Republic of Venezuela, DCB,
6.81%, 12/18/07........... 640,143
500,500 Republic of Venezuela,
9.25%, 09/15/27........... 449,449
-----------
1,089,592
-----------
TOTAL SOVEREIGN GOVERNMENT OBLIGATIONS
(COST $3,550,655)........................ 3,759,882
-----------
YANKEE BONDS (10.0%)
BRAZIL (2.9%)
500,000 Tevecap, 12.625%,
11/26/04.................. 458,750
350,000 TV Filme, 12.878%,
12/15/04.................. 327,208
-----------
785,958
-----------
INDONESIA (1.4%)
500,000 FSW International, 12.50%,
11/01/06.................. 380,000
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
22
<PAGE> 9
INCOME OPPORTUNITY PORTFOLIO
SCHEDULE OF INVESTMENTS--CONTINUED
DECEMBER 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (Note 1)
- --------- --------
<S> <C> <C>
MEXICO (5.7%)
$ 700,000 Grupo Televisa (Zero Coupon
until 05/15/01, 13.25%
thereafter)(c), 0.00%,
05/15/08.................. $ 524,159
500,000 Innova S. de R.L, 12.875%,
04/01/07.................. 505,000
500,000 Transport Maritma, 10.00%,
11/15/06.................. 500,625
-----------
1,529,784
-----------
TOTAL YANKEE BONDS
(COST $2,845,862)........................ 2,695,742
-----------
BRADY BONDS (9.6%)
BULGARIA (3.2%)
550,000 Government of Bulgaria,
IAB(d), 6.69%, 07/28/11... 402,875
600,000 Government of Bulgaria(d),
6.69%, 07/28/24........... 462,000
-----------
864,875
-----------
ECUADOR (3.6%)
1,250,000 Republic of Ecuador(d),
3.50%, 02/28/25........... 682,750
387,000 Republic of Ecuador(d),
6.69%, 02/28/25........... 291,721
-----------
974,471
-----------
PERU (2.8%)
1,250,000 Government of Peru, FLIRB,
3.25%, 03/07/17(d)........ 742,250
-----------
TOTAL BRADY BONDS
(COST $2,353,687)........................ 2,581,596
-----------
<CAPTION>
UNITS
- ----------
<S> <C> <C>
WARRANTS (0.0%)
TELEPHONE SYSTEMS (0.0%)
300 Primus Telecommunications,
0.00%, 08/01/04........... 3,000
-----------
TOTAL INVESTMENTS AT VALUE (93.9%)
(COST $25,479,121)(A).................... 25,249,660
CASH AND OTHER ASSETS
NET OF LIABILITIES (6.1%)................ 1,629,751
-----------
NET ASSETS (100.0%)...................... $26,879,411
===========
</TABLE>
- ------------------------------
NOTES TO THE SCHEDULE OF INVESTMENTS:
(a) The aggregate identified cost for federal income tax purposes
is $25,479,121, resulting in gross unrealized appreciation and
depreciation of $883,918 and $1,113,379, respectively, and net
unrealized depreciation of $(229,461).
(b) A percentage of income is received in shares of certain
securities.
(c) Zero or step coupon.
(d) Interest rate shown reflects current rate on instrument with
variable or floating rates.
FLIRB - Front-Load Interest Reduction Bond
- --------------------------------------------------------------------------------
STANDBY INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (Note 1)
- --------- -----------
<S> <C> <C>
ASSET BACKED SECURITIES (16.6%)
$700,000 CS First Boston, 6.32%,
02/25/18.................... $ 698,236
479,055 Daimler-Benz, 5.85%,
07/20/03.................... 478,499
574,562 First Security Auto Grantor
Trust, 6.25%, 01/15/01...... 575,338
57,654 Honda Auto Receivables Grantor
Trust, 6.20%, 12/15/00...... 57,724
600,000 Olympic Auto Trust, 5.85%,
07/15/01.................... 598,446
497,672 Olympic Auto Trust, 6.95%,
06/15/01.................... 500,300
-----------
TOTAL ASSET BACKED SECURITIES (COST
$2,909,063)............................... 2,908,543
-----------
CORPORATE BONDS (9.2%)
BANKING (4.0%)
$700,000 Credit Lyonnais (a), 6.75%,
09/19/49.................... $ 698,250
-----------
ELECTRIC UTILITIES (1.4%)
250,000 Boston Edison, 5.95%,
03/15/98.................... 249,845
-----------
TELEPHONE SYSTEMS (3.8%)
665,000 AT&T Capital, 5.87%,
08/28/98.................... 663,832
-----------
TOTAL CORPORATE BONDS (COST $1,611,610)...
1,611,927
-----------
COMMERCIAL PAPER (73.3%)
900,000 Autoliv, 5.94%, 01/16/98...... 890,348
840,000 Case Credit, 6.25%,
01/29/98.................... 833,729
625,000 Cinergy, 6.12%, 01/28/98...... 618,944
735,000 Comdisco, 5.83%, 02/03/98..... 724,525
800,000 Commonwealth Edison, 6.22%,
01/13/98.................... 795,992
830,000 Conagra, 6.40%, 01/07/98...... 827,639
850,000 Hanson Financial, 6.15%,
01/13/98.................... 845,063
250,000 ICI Chemical Delaware, 7.20%,
01/09/98.................... 249,150
800,000 IES Diversified, 6.18%,
01/30/98.................... 793,683
</TABLE>
The accompanying notes are an integral part of the financial statements.
23
<PAGE> 10
STANDBY INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS--CONTINUED
DECEMBER 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT (Note 1)
- -------- --------
<S> <C> <C>
COMMERCIAL PAPER--CONTINUED
$525,000 JB Hunt Transport, 5.80%,
01/14/98.................... $ 518,995
785,000 Merrill Lynch, 6.03%,
01/09/98.................... 782,633
800,000 Minnesota Power & Light,
6.15%, 01/16/98............. 795,627
770,000 Occidental Petroleum, 6.40%,
01/15/98.................... 767,947
145,000 Pennsylvania Fuel, 7.00%,
01/13/98.................... 144,577
515,000 Pennsylvania Fuel, 6.12%,
01/22/98.................... 510,623
260,000 Pennsylvania Power & Light,
6.80%, 01/12/98............. 259,362
760,000 Ryder Systems, 5.80%,
03/06/98.................... 751,919
600,000 Safeway Stores, 6.13%,
01/07/98.................... 597,346
800,000 Textron Financial, 6.10%,
01/14/98.................... 795,524
380,000 US West Capital Funding,
6.15%, 01/16/98............. 377,663
-----------
TOTAL COMMERCIAL PAPER (COST
$12,881,288).............................. 12,881,289
-----------
TOTAL INVESTMENTS AT VALUE (99.1%) (COST
$17,401,961)(B)........................... 17,401,759
CASH AND OTHER ASSETS NET OF LIABILITIES
(0.9%).................................... 160,442
-----------
NET ASSETS (100.0%)....................... $17,562,201
===========
</TABLE>
- ------------------------------
NOTES TO THE SCHEDULE OF INVESTMENTS:
(a) Interest rate shown reflects current rate on instrument with
variable rate.
(b) The aggregate identified cost for federal income tax purposes
is $17,401,961, resulting in gross unrealized appreciation and
depreciation of $959 and $1,161, respectively, and net
unrealized depreciation of $(202).
The accompanying notes are an integral part of the financial statements.
24
<PAGE> 11
SELECT ADVISORS VARIABLE INSURANCE TRUST
Statements of Assets and Liabilities
December 31, 1997
- --------------------------------------------------------------------------------
<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) $17,151,048 $18,614,544 $21,002,227 $25,249,660 $17,401,759
Cash 2,116,582 2,230,160 1,108,532 2,234,737 1,846
Receivables for:
Investments sold 254,361 47,363 -- -- --
Fund shares sold 61,849 15,976 72,408 58,482 38,086
Dividends and interest 23,708 22,733 163,453 646,583 77,583
Foreign tax reclaim 110 13,968 373 -- --
Net unrealized gain on open forward
currency contracts (Note 1) -- 380 14,870 -- --
Deferred organization expenses (Note 1) 7,373 7,373 7,373 7,373 7,427
Reimbursement receivable from Sponsor (Note
3) 4,017 102,996 21,650 2,507 72,856
----------- ----------- ----------- ----------- -----------
Total assets 19,619,048 21,055,493 22,390,886 28,199,342 17,599,557
----------- ----------- ----------- ----------- -----------
LIABILITIES:
Payable for investments purchased 157,619 1,287,072 65,025 1,277,510 --
Payable for fund shares redeemed -- -- -- -- 1,429
Other accrued expenses 44,479 65,690 38,794 42,421 35,927
----------- ----------- ----------- ----------- -----------
Total liabilities 202,098 1,352,762 103,819 1,319,931 37,356
----------- ----------- ----------- ----------- -----------
NET ASSETS: $19,416,950 $19,702,731 $22,287,067 $26,879,411 $17,562,201
=========== =========== =========== =========== ===========
Shares outstanding 1,260,959 1,640,973 1,592,899 2,439,073 1,755,724
=========== =========== =========== =========== ===========
Net asset value $ 15.40 $ 12.01 $ 13.99 $ 11.02 $ 10.00
=========== =========== =========== =========== ===========
(a) Cost of investments $14,331,373 $17,199,075 $19,813,493 $25,479,121 $17,401,961
=========== =========== =========== =========== ===========
</TABLE>
Statements of Operations
For the year ended December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EMERGING INTERNATIONAL INCOME STANDBY
GROWTH EQUITY BALANCED OPPORTUNITY INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ------------- ---------- ----------- ---------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME (NOTE 1):
Interest $ 69,919 $ 81,871 $ 381,574 $1,973,709 $813,493
Dividends 105,090 197,309(a) 88,185 -- --
---------- ---------- ---------- ---------- --------
Total investment income 175,009 279,180 469,759 1,973,709 813,493
---------- ---------- ---------- ---------- --------
EXPENSES:
Investment advisory fees (Note 2) 98,956 135,300 103,999 108,452 34,222
Administration and fund accounting fees 64,999 80,001 64,999 64,999 64,999
Custody fees 32,476 158,281 31,889 25,360 30,809
Sponsor fee (Note 2) 24,658 28,492 26,691 33,342 27,365
Audit fees 17,020 18,618 11,939 17,633 10,920
Printing expense 13,232 16,785 12,737 15,533 17,763
Amortization of organization expenses (Note 1) 3,906 3,906 3,906 3,906 3,931
Trustee fees (Note 2) 2,101 1,895 1,857 2,159 1,947
Miscellaneous expense 12,065 10,586 14,432 14,622 10,900
---------- ---------- ---------- ---------- --------
Total expenses 269,413 453,864 272,449 286,006 202,856
Waiver of Sponsor fee (Note 2) (24,658) (28,492) (26,691) (33,342) (27,365)
Reimbursement from Sponsor (Note 3) (102,973) (247,296) (125,649) (110,959) (107,078)
---------- ---------- ---------- ---------- --------
Net expenses 141,782 178,076 120,109 141,705 68,413
---------- ---------- ---------- ---------- --------
NET INVESTMENT INCOME 33,227 101,104 349,650 1,832,004 745,080
---------- ---------- ---------- ---------- --------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on investments 1,327,486 1,133,852(b) 1,435,996(b) 191,074 (8,448)
Net change in unrealized appreciation
(depreciation) on investments 2,197,739 577,604(c) 475,638(c) (528,803) (382)
---------- ---------- ---------- ---------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) 3,525,225 1,711,456 1,911,634 (337,729) (8,830)
---------- ---------- ---------- ---------- --------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $3,558,452 $1,812,560 $2,261,284 $1,494,275 $736,250
========== ========== ========== ========== ========
</TABLE>
- ---------------
(a) Net of foreign tax withholding of $22,995.
(b) Includes foreign currency transactions gains (losses) of ($93,168) for the
International Equity Portfolio and $26,135 for the Balanced Portfolio.
(c) Includes change in unrealized gain on foreign currency transactions and
other assets of $1,811 for International Equity Portfolio and $13,469 for
Balanced Portfolio.
The accompanying notes are an integral part of the financial statements.
25
<PAGE> 12
SELECT ADVISORS VARIABLE INSURANCE TRUST
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EMERGING GROWTH INTERNATIONAL EQUITY
PORTFOLIO PORTFOLIO
------------------------- -------------------------
FOR THE YEARS ENDED DECEMBER 31, 1997 1996 1997 1996
- ------------------------------- ----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 33,227 $ 18,649 $ 101,104 $ 56,677
Net realized gain (loss) on investments 1,327,486 46,078 1,133,852 142,359
Net change in unrealized appreciation
(depreciation) on investments 2,197,739 352,244 577,604 523,196
----------- ---------- ----------- ----------
Net increase in net assets resulting from
operations 3,558,452 416,971 1,812,560 722,232
----------- ---------- ----------- ----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (30,394) (18,684) (70,264) (54,999)
Net realized capital gains (1,012,609) (130,830) (995,634) --
Distribution in excess of net investment income -- -- -- (2,423)
Distribution in excess of capital gains -- -- -- --
----------- ---------- ----------- ----------
Total dividends and distributions (1,043,003) (149,514) (1,065,898) (57,422)
----------- ---------- ----------- ----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 12,538,066 3,109,043 10,372,680 3,190,175
Reinvestment of dividends 1,043,003 149,514 1,065,898 57,422
Cost of shares redeemed (2,450,901) (369,358) (1,240,789) (368,758)
----------- ---------- ----------- ----------
Net increase from investors' transactions 11,130,168 2,889,199 10,197,789 2,878,839
----------- ---------- ----------- ----------
Total changes in net assets 13,645,617 3,156,656 10,944,451 3,543,649
----------- ---------- ----------- ----------
NET ASSETS:
Beginning of period 5,771,333 2,614,677 8,758,280 5,214,631
----------- ---------- ----------- ----------
End of period $19,416,950 $5,771,333 $19,702,731 $8,758,280
=========== ========== =========== ==========
NET ASSETS CONSIST OF:
Paid-in capital $16,385,765 $5,255,597 $18,285,104 $8,087,315
Undistributed (distribution in excess of) net
investment income 3,217 384 (56,246) (363)
Accumulated net realized gain (loss) on investments 208,293 (106,584) 58,471 (166,470)
Net unrealized appreciation (depreciation) of
investments 2,819,675 621,936 1,415,402 837,798
----------- ---------- ----------- ----------
Net assets applicable to shares outstanding $19,416,950 $5,771,333 $19,702,731 $8,758,280
=========== ========== =========== ==========
SHARES OUTSTANDING (NOTE 1):
Shares sold 892,720 259,365 858,524 298,741
Reinvestment of dividends 69,673 12,297 89,196 5,288
----------- ---------- ----------- ----------
962,393 271,662 947,720 304,029
Shares redeemed (174,447) (30,567) (98,268) (33,902)
----------- ---------- ----------- ----------
Net increase 787,946 241,095 849,452 270,127
Beginning of period 473,013 231,918 791,521 521,394
----------- ---------- ----------- ----------
End of period 1,260,959 473,013 1,640,973 791,521
=========== ========== =========== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
26
<PAGE> 13
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED INCOME OPPORTUNITY STANDBY INCOME
PORTFOLIO PORTFOLIO PORTFOLIO
------------------------- ------------------------- ---------------------------
1997 1996 1997 1996 1997 1996
----------- ---------- ----------- ---------- ------------ -----------
<C> <C> <C> <C> <C> <C>
$ 349,650 $ 116,070 $ 1,832,004 $ 510,964 $ 745,080 $ 353,653
1,435,996 138,439 191,074 339,888 (8,448) 3,871
475,638 470,231 (528,803) 196,298 (382) (14,556)
----------- ---------- ----------- ---------- ------------ -----------
2,261,284 724,740 1,494,275 1,047,150 736,250 342,968
----------- ---------- ----------- ---------- ------------ -----------
(350,429) (115,048) (1,814,515) (466,250) (745,079) (353,721)
(1,314,627) (113,645) (227,491) (266,446) -- --
(5,844) -- -- -- -- (1,813)
-- -- (496,586) -- -- --
----------- ---------- ----------- ---------- ------------ -----------
(1,670,900) (228,693) (2,538,592) (732,696) (745,079) (355,534)
----------- ---------- ----------- ---------- ------------ -----------
13,559,392 3,195,328 19,127,540 4,765,192 19,020,895 4,294,599
1,670,900 228,693 2,538,593 732,696 743,655 355,535
(228,301) (120,136) (2,010,537) (145,810) (11,298,653) (1,322,371)
----------- ---------- ----------- ---------- ------------ -----------
15,001,991 3,303,885 19,655,596 5,352,078 8,465,897 3,327,763
----------- ---------- ----------- ---------- ------------ -----------
15,592,375 3,799,932 18,611,279 5,666,532 8,457,068 3,315,197
----------- ---------- ----------- ---------- ------------ -----------
6,694,692 2,894,760 8,268,132 2,601,600 9,105,133 5,789,936
----------- ---------- ----------- ---------- ------------ -----------
$22,287,067 $6,694,692 $26,879,411 $8,268,132 $ 17,562,201 $ 9,105,133
=========== ========== =========== ========== ============ ===========
$20,922,008 $5,920,017 $27,592,868 $7,950,387 $ 17,571,962 $ 9,106,065
14,838 1,153 543 -- 1,366 --
148,018 46,957 (484,024) 18,918 (10,925) (1,112)
1,202,203 726,565 (229,976) 298,827 (202) 180
----------- ---------- ----------- ---------- ------------ -----------
$22,287,067 $6,694,692 $26,879,411 $8,268,132 $ 17,562,201 $ 9,105,133
=========== ========== =========== ========== ============ ===========
967,476 260,657 1,651,438 427,096 1,900,755 429,003
120,806 18,270 224,056 66,234 74,322 35,510
----------- ---------- ----------- ---------- ------------ -----------
1,088,282 278,927 1,875,494 493,330 1,975,077 464,513
(16,607) (9,856) (174,262) (13,441) (1,129,387) (132,107)
----------- ---------- ----------- ---------- ------------ -----------
1,071,675 269,071 1,701,232 479,889 845,690 332,406
521,224 252,153 737,841 257,952 910,034 577,628
----------- ---------- ----------- ---------- ------------ -----------
1,592,899 521,224 2,439,073 737,841 1,755,724 910,034
=========== ========== =========== ========== ============ ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
27
<PAGE> 14
- --------------------------------------------------------------------------------
SELECT ADVISORS VARIABLE INSURANCE TRUST
Financial Highlights
- --------------------------------------------------------------------------------
Selected data for a share outstanding throughout the years ended December 31:
<TABLE>
<CAPTION>
TOUCHSTONE EMERGING GROWTH PORTFOLIO
---------------------------------------
1997 1996 1995 1994(a)
------- ------- ------ -------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.20 $ 11.27 $10.10 $10.00
------- ------- ------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.03 0.04 0.11 0.04
Net realized and unrealized gain on investments 4.06 1.22 1.87 0.06
------- ------- ------ ------
Total from investment operations 4.09 1.26 1.98 0.10
------- ------- ------ ------
Less dividends and distributions to shareholders from:
Net investment income (0.03) (0.04) (0.15) --
Realized capital gains (0.86) (0.29) (0.66) --
------- ------- ------ ------
TOTAL DIVIDENDS AND DISTRIBUTIONS (0.89) (0.33) (0.81) --
------- ------- ------ ------
NET ASSET VALUE, END OF PERIOD $ 15.40 $ 12.20 $11.27 $10.10
======= ======= ====== ======
TOTAL RETURN (b) 33.67% 11.16% 19.57% 1.00%
RATIOS AND SUPPLEMENTAL DATA (c):
Net assets at end of period (000's) $19,417 $ 5,771 $2,615 $2,020
Ratios to average net assets:
Net expenses 1.15% 1.15% 1.15% 1.15%
Net investment income 0.27% 0.50% 1.09% 3.67%
Expenses, without waiver and reimbursement from Sponsor 2.19% 3.22% 3.73% 11.08%
Portfolio Turnover 88% 89% 101% 0%
Average commission rate (d) $0.0572 $0.0568 -- --
Selected data for a share outstanding throughout the years ended December 31:
<CAPTION>
TOUCHSTONE INCOME OPPORTUNITY PORTFOLIO
------------------------------------------
1997 1996 1995 1994(a)
-------- -------- ------- -------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.21 $ 10.09 $ 9.42 $10.00
------- ------- ------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 1.20 1.17 1.22 0.12
Net realized and unrealized gain (loss) on investments 0.11 1.45 0.79 (0.70)
------- ------- ------ ------
Total from investment operations 1.31 2.62 2.01 (0.58)
------- ------- ------ ------
Less dividends and distributions to shareholders from:
Net investment income (1.19) (1.17) (1.34) --
Realized capital gains (0.31) (0.33) -- --
------- ------- ------ ------
TOTAL DIVIDENDS AND DISTRIBUTIONS (1.50) (1.50) (1.34) --
------- ------- ------ ------
NET ASSET VALUE, END OF PERIOD $ 11.02 $ 11.21 $10.09 $ 9.42
======= ======= ====== ======
TOTAL RETURN (b) 12.03% 27.37% 23.35% (5.80)%
RATIOS AND SUPPLEMENTAL DATA (c):
Net assets at end of period (000's) $26,879 $ 8,268 $2,602 $1,883
Ratios to average net assets:
Net expenses 0.85% 0.85% 0.85% 0.85%
Net investment income 10.93% 11.85% 12.81% 11.24%
Expenses, without waiver and reimbursement from Sponsor 1.72% 2.85% 3.54% 11.56%
Portfolio Turnover 189% 213% 104% 45%
</TABLE>
- ------------------------------
(a) The Fund commenced operations on November 21, 1994.
(b) Total return would have been lower had certain expenses not been reimbursed
or waived during the periods shown. (Note 2)
(c) Ratios are 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 commission rate structures may differ.
The accompanying notes are an integral part of the financial statements.
28
<PAGE> 15
<TABLE>
<CAPTION>
TOUCHSTONE INTERNATIONAL EQUITY PORTFOLIO
-------------------------------------------
1997 1996 1995 1994(a)
--------- --------- -------- --------
<S> <C> <C> <C>
$ 11.07 $ 10.00 $ 9.51 $10.00
------- ------- ------ ------
0.07 0.06 0.04 --
1.56 1.08 0.48 (0.49)
------- ------- ------ ------
1.63 1.14 0.52 (0.49)
------- ------- ------ ------
(0.05) (0.07) (0.03) --
(0.64) -- -- --
------- ------- ------ ------
(0.69) (0.07) (0.03) --
------- ------- ------ ------
$ 12.01 $ 11.07 $10.00 $ 9.51
======= ======= ====== ======
14.76% 11.47% 15.45% (4.90)%
$19,703 $ 8,758 $5,215 $4,757
1.25% 1.25% 1.25% 1.25%
0.71% 0.86% 0.46% 1.23%
3.19% 3.03% 3.69% 5.58%
149% 90% 86% 0%
$0.0359 $0.0266 -- --
<CAPTION>
TOUCHSTONE BALANCED PORTFOLIO
------------------------------------
1997 1996 1995 1994(a)
------- ------- ------ -------
<S> <C> <C> <C>
$ 12.84 $ 11.48 $10.17 $10.00
------- ------- ------ ------
0.31 0.30 0.32 0.05
2.05 1.60 2.15 0.12
------- ------- ------ ------
2.36 1.90 2.47 0.17
------- ------- ------ ------
(0.32) (0.30) (0.37) --
(0.89) (0.24) (0.79) --
------- ------- ------ ------
(1.21) (0.54) (1.16) --
------- ------- ------ ------
$ 13.99 $ 12.84 $11.48 $10.17
======= ======= ====== ======
18.61% 16.78% 24.56% 1.70%
$22,287 $ 6,695 $2,895 $2,034
0.90% 0.90% 0.90% 0.90%
2.61% 2.76% 2.87% 4.26%
2.04% 2.72% 3.46% 8.97%
86% 75% 124% 3%
$0.0345 $0.0664 -- --
<CAPTION>
TOUCHSTONE STANDBY INCOME PORTFOLIO
------------------------------------
1997 1996 1995 1994(a)
------- ------- ------ -------
<S> <C> <C> <C>
$ 10.01 $ 10.02 $10.03 $10.00
------- ------- ------ ------
0.54 0.52 0.56 0.05
(0.01) (0.01) (0.01) 0.03
------- ------- ------ ------
0.53 0.51 0.55 0.08
------- ------- ------ ------
(0.54) (0.52) (0.56) (0.05)
-- -- -- --
------- ------- ------ ------
(0.54) (0.52) (0.56) (0.05)
------- ------- ------ ------
$ 10.00 $ 10.01 $10.02 $10.03
======= ======= ====== ======
5.41% 5.18% 5.90% 0.30%
$17,562 $ 9,105 $5,790 $5,013
0.50% 0.50% 0.50% 0.50%
5.42% 5.15% 5.59% 4.90%
1.48% 1.54% 1.73% 3.67%
251% 143% 159% 56%
</TABLE>
29
<PAGE> 16
SELECT ADVISORS VARIABLE INSURANCE TRUST
Notes to Financial Statements
- --------------------------------------------------------------------------------
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, and was 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 Declaration of Trust permits the Trust to issue an unlimited number of
shares of beneficial interest. The Trust offers shares of beneficial interest of
each portfolio to separate accounts of Western-Southern Life Assurance Company
("Western-Southern") as a funding vehicle for certain variable annuity contracts
issued by Western-Southern through the separate accounts.
As of December 31, 1997, Touchstone Advisors, Inc., a subsidiary of
Western-Southern, and Western-Southern owned 100% of the outstanding shares of
the Trust.
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. Securities for which market quotations are
readily available are valued at 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 quoted in foreign currencies are translated into U.S. Dollars
at the current exchange rate. 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
using 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 currency 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 statements 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 the ex-dividend date
for such dividend except that certain dividends from foreign securities where
the ex-dividend date has passed are recorded upon notification 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 GAAP. Permanent book and tax basis
differences relating to shareholder distributions will
30
<PAGE> 17
SELECT ADVISORS VARIABLE INSURANCE TRUST
Notes to Financial Statements
- --------------------------------------------------------------------------------
result in reclassifications to paid in capital. These differences which may
result in distribution reclassifications are primarily due to differing
treatments for foreign currency transactions, passive foreign investment
companies (PFIC), and losses deferred due to wash sales, paydown gains and
losses on certain securities and excise tax regulations. Undistributed net
investment income and accumulated net realized gains and losses may include
temporary book and tax basis differences which will reverse in a subsequent
period. Any taxable income or gain remaining at fiscal year end is distributed
in the following year.
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
Standby Income Portfolio has the following capital loss carryforwards that
expire as noted below:
<TABLE>
<S> <C>
December 31, 2003 $1,112
December 31, 2005 $3,712
</TABLE>
Additionally, at December 31, 1997, the following Portfolios have net
capital losses attributable to security transactions incurred after October 31,
1997, which are treated as arising on the first day of the Portfolio's next
taxable year.
<TABLE>
<S> <C>
International Equity Portfolio $ 22,354
Balanced Portfolio $ 37,583
Income Opportunity Portfolio $490,314
Standby Income Portfolio $ 6,101
</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 foreign
currency 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 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 December 31, 1997, the following Funds had the following open forward
currency contracts:
<TABLE>
<CAPTION>
CONTRACTS TO IN EXCHANGE UNREALIZED
FUND NAME MATURITY DELIVER FOR VALUE GAIN/LOSS
--------- ------------- ------------ --------------- -------- ----------
<S> <C> <C> <C> <C> <C>
INTERNATIONAL EQUITY
PORTFOLIO
Sales 1/6/98 GBP 583 $ 968 $ 957 $ 11
1/2/98 SEK 132,407 17,053 16,684 369
-------
$ 380
=======
BALANCED PORTFOLIO
Sales 3/3/98 AUD 415,000 $281,163 $269,670 $11,493
1/9/98 DKK 718,000 107,458 104,879 2,579
3/19/98 GBP 122,000 200,495 199,697 798
-------
$14,870
=======
</TABLE>
AUD =Australian Dollar, GBP = Great British Pound, SEK = Swedish Krona,
DKK = Danish Krone.
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. 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.
31
<PAGE> 18
SELECT ADVISORS VARIABLE INSURANCE TRUST
Notes to Financial Statements
- --------------------------------------------------------------------------------
h) Securities Transactions. 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. The Sponsor 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. 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 December 31, 1998.
b) Investment Advisor. The Trust also has an investment advisory
agreement with the Sponsor. Under the terms of the investment advisory
agreement, each Portfolio pays a fee that is computed daily and paid monthly.
For the year ended December 31, 1997, each Portfolio incurred investment
advisory fees equal on an annual basis to the following percentages of the
average daily net assets of the Portfolio. The Balanced Portfolio's advisory fee
changed on May 1, 1997, from 0.70% to 0.80%.
<TABLE>
<CAPTION>
EMERGING INTERNATIONAL INCOME STANDBY
GROWTH EQUITY BALANCED OPPORTUNITY INCOME
-------- ------------- -------- ----------- -------
<S> <C> <C> <C> <C> <C>
Rate 0.80% 0.95% 0.77% 0.65% 0.25%
</TABLE>
Fort Washington Investment Advisors, Inc., an affiliate of the Sponsor, is
the sub-advisor for the Standby Income Portfolio.
c) Trustees. Each Trustee who is not an "interested person," (as defined
in the Act), of the Trust, receives an aggregate of $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. For
the year ended December 31, 1997, the Trust incurred $9,959 in Trustee fees.
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%
Amount of Reimbursement $102,973 $247,296 $125,649 $110,959 $107,078
</TABLE>
The Sponsor has advised the trust that it will continue to waive fees and
reimburse each portfolio as described above through December 31, 1998.
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 period ended December 31, 1997 were as follows:
<TABLE>
<CAPTION>
EMERGING INTERNATIONAL INCOME STANDBY
GROWTH EQUITY BALANCED OPPORTUNITY INCOME
----------- ------------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Cost of purchases $18,376,280 $27,002,868 $19,944,975 $47,229,551 $7,713,760
Proceeds from sales 9,544,004 18,719,039 9,675,798 29,499,769 1,502,093
</TABLE>
Purchase and sales of U.S. government obligations for the period ended
December 31, 1997 were as follows:
<TABLE>
<CAPTION>
BALANCED STANDBY INCOME
---------- --------------
<S> <C> <C>
Cost of purchases $3,880,424 $2,038,234
Proceeds from sales 1,116,083 2,709,760
</TABLE>
32
<PAGE> 19
SELECT ADVISORS VARIABLE INSURANCE TRUST
Notes to Financial Statements
- --------------------------------------------------------------------------------
FEDERAL TAX INFORMATION (UNAUDITED)
Pursuant to Section 852 of the Internal Revenue Code, the Portfolios
designate the following capital gain dividends for the year ended December 31,
1997.
<TABLE>
<CAPTION>
EMERGING INTERNATIONAL INCOME
GROWTH EQUITY BALANCED OPPORTUNITY
-------- ------------- -------- -----------
<S> <C> <C> <C> <C>
28% Rate gains $ 60,808 $242,458 $ 92,841 $23,661
20% Rate gains $157,210 $327,221 $398,119 $13,550
</TABLE>
33
<PAGE> 20
SELECT ADVISORS VARIABLE INSURANCE TRUST
Report of Independent Accountants
- --------------------------------------------------------------------------------
To the Investors and Trustees of
the Select Advisors Variable Insurance Trust:
We have audited the accompanying statements of assets and liabilities of the
Select Advisors Variable Insurance Trust (consisting of the Emerging Growth
Portfolio, International Equity Portfolio, Balanced Portfolio, Income
Opportunity Portfolio and Standby Income Portfolio), including the schedules of
investments, as of December 31, 1997, the related statements of operations for
the year then ended, the statements of changes in net assets for each of the two
years in the period then ended and financial highlights for each of the three
years in the period then ended and for the period from November 21, 1994
(commencement of operations) to December 31, 1994. These financial statements
and financial highlights are the responsibility of the Select Advisors Variable
Insurance Trust's management. Our responsibility is to express an opinion on
these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1997 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Select Advisors Variable Insurance Trust as of December 31, 1997, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended and the financial highlights for each
of the three years in the period then ended and for the period from November 21,
1994 (commencement of operations) to December 31, 1994, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
February 13, 1998
