<PAGE>
[GRAPHIC]
ALEXANDER HAMILTON
VARIABLE INSURANCE TRUST
SEMI-ANNUAL REPORT
JUNE 30,1997
(UNAUDITED)
ALEXANDER HAMILTON LIFE
-----------------------
A LIFE INSURANCE SUBSIDIARY OF JEFFERSON-PILOT CORPORATION
<PAGE>
TABLE OF CONTENTS
------------------------
<TABLE>
<CAPTION>
PAGE
<S> <C>
LETTER TO POLICYHOLDERS............................................... 1
PORTFOLIO OF INVESTMENTS
Investment Grade Bond Fund........................................ 2
High Yield Bond Fund.............................................. 4
Balanced Fund..................................................... 8
Growth & Income Fund.............................................. 13
Growth Fund....................................................... 18
Emerging Growth Fund.............................................. 22
International Equity Fund......................................... 26
STATEMENT OF ASSETS AND LIABILITIES................................... 29
STATEMENT OF OPERATIONS............................................... 30
STATEMENT OF CHANGES IN NET ASSETS.................................... 31
FINANCIAL HIGHLIGHTS.................................................. 34
NOTES TO FINANCIAL STATEMENTS......................................... 37
</TABLE>
This report is not authorized for distribution to prospective investors unless
accompanied by a current prospectus for the Alexander Hamilton Variable
Insurance Trust. Please read the prospectus carefully before sending money.
<PAGE>
Dear Policyholder,
For the first half of 1997, financial assets continued to generate
attractive returns despite very divergent trends during the first and second
quarters. As the year began, it became increasingly apparent that a surprising
rebound in consumer spending and job creation would lead to above average growth
in real GDP. Despite recent history where the U.S. economy has experienced both
low unemployment and low inflation, investors became convinced that an improving
economy would force the Federal Reserve to raise interest rates in order to make
a pre-emptive strike on inflation. Bond prices were driven lower in anticipation
of such action which put pressure on the stock market as well. The Federal
Reserve validated such concerns by raising the Federal Funds Rate by 25 basis
points near the end of March. This action created additional selling pressure on
the stock and bond markets with the result that most broad bond and stock market
indices showed either losses or only slight gains for the quarter.
As the second quarter progressed, economic statistics continued to show no
sign of inflation plus a marked slowdown in consumer spending and economic
growth. The need for additional tightening by the Fed was gone and an avalanche
of liquidity was unleashed across the financial markets. In the bond market this
resulted in lower interest rates and a tightening of spreads between corporate
bonds and Treasuries. The stock market benefitted from higher price earnings
ratios due to lower interest rates, plus a continuation of strong growth in
corporate profits. All economic sectors of the stock market showed strong
appreciation, with exceptional performance coming from healthcare, consumer
staples, technology, and transportation stocks.
The outlook for the remainder of the year is for modest growth in the U.S.
economy, with mild inflation and continued low interest rates. This forecast
generally applies to the economies of most developed nations as the forces of
global competition and technology-driven productivity continue to make economic
growth possible with only modest inflation.
Your variable annuity subaccount managers are continuing to manage your
assets within this economic outlook. Alexander Hamilton will continue to monitor
subaccount performance and make necessary adjustments as the market dictates.
Respectfully,
/s/ E.J. Yelton
E. J. Yelton
PRESIDENT
1
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
INVESTMENT GRADE BOND FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------- ------------
<S> <C> <C>
CORPORATE BONDS - 41.6%
CONVERTIBLE BOND - 0.7%
INDUSTRIAL - 0.7%
Ryerson Tull, Inc., 8.50%, due 7/15/01 (COST $24,940).................. $25,000 $25,487
------------
NON-CONVERTIBLE BONDS - 40.9%
AUTOMOTIVE - 10.8%
Aegis Auto Rec., 1996-2, 8.90%, due 1/20/02............................ 96,797 97,039
General Motors Corp., 7.40%, due 9/01/25............................... 125,000 123,284
Premier Auto Trust Mortgage, 1995-3, 6.15%, due 3/06/00 (a)............ 140,000 140,367
------------
360,690
------------
BANKING AND SAVINGS & LOANS - 6.3%
Export Import Bank of Korea, 6.50%, due 2/10/02 (b).................... 30,000 29,437
Midland Bank PLC, 7.625%, due 6/15/06.................................. 140,000 144,738
Thai Farmers Bank PLC, 8.25%, due 8/21/16.............................. 40,000 38,350
------------
212,525
------------
COMPUTER SYSTEMS - 1.8%
Seagate Technology, Inc., 7.125%, due 3/01/04.......................... 60,000 60,229
------------
FINANCIAL SERVICES - 7.5%
BBV International Finance, 7.00%, due 12/01/25......................... 65,000 60,055
Green Tree Financial Corp.,1995-10 A2, 5.80% due 2/15/27 (a)........... 138,879 139,101
Santista Export Sec., I, 8.09%, due 11/30/06........................... 50,000 50,312
------------
249,468
------------
INDUSTRIAL - 3.8%
Celulosa Arauco, 6.75%, due 12/15/03................................... 130,000 126,952
------------
INSURANCE - 4.0%
Metropolitan Life Insurance Co., 7.80%, due 11/01/25................... 135,000 134,662
------------
RETAILING - 0.8%
Federated Department Stores, 8.50%, due 6/15/03........................ 25,000 26,636
------------
TELECOMMUNICATIONS & EQUIPMENT - 1.8%
TCI Communications, Inc., 7.875%, due 2/15/26.......................... 20,000 19,116
WorldCom, Inc., 7.55%, 4/01/04 (b)..................................... 40,000 40,443
------------
59,559
------------
UTILITIES - 4.1%
Boston Edison Co., 6.05%, due 8/15/00.................................. 140,000 136,631
------------
TOTAL NON-CONVERTIBLE BONDS (COST $1,344,482).......................... 1,367,352
------------
TOTAL CORPORATE BONDS (COST $1,369,422)................................ 1,392,839
------------
U.S. GOVERNMENT & U.S. GOVERNMENT
AGENCY OBLIGATIONS - 57.5%
U.S. GOVERNMENT OBLIGATIONS - 20.8%
U.S. Treasury Note, 5.875%, due 2/15/00................................ 175,000 173,688
U.S. Treasury Note, 6.875%, due 3/31/00................................ 169,000 171,799
</TABLE>
2
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
INVESTMENT GRADE BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
---------- ------------
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS (CONT'D) - 20.8%
U.S. Treasury Note, 5.25%, due 1/31/01................................. $133,000 $128,719
U.S. Treasury Note, 6.375%, due 9/30/01................................ 20,000 20,013
U.S. Treasury Note, 6.375%, due 8/15/02................................ 200,000 199,938
------------
TOTAL U.S. GOVERNMENT OBLIGATIONS (COST $691,175)...................... 694,157
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 36.7%
Federal Home Loan Mortgage Corp.,
Gold Pool #C00427, 8.00%, due 10/01/25................................ 172,387 176,535
Federal Home Loan Mortgage Corp.,
Pool #D77232, 7.50%, due 1/02/27...................................... 198,997 200,147
Federal National Mortgage Assoc.,
Pool #337434, 6.50%, due 2/01/26...................................... 136,191 130,654
Federal National Mortgage Assoc.,
Pool #338690, 6.00%, due 2/01/26...................................... 138,861 129,452
Federal National Mortgage Assoc.,
Pool #352795, 7.00%, due 7/01/26...................................... 130,711 128,355
Federal National Mortgage Assoc.,
Pool #250672, 7.00%, due 9/01/26...................................... 127,053 124,763
Government National Mortgage Assoc.,
Pool #205196, 9.00%, due 7/15/17...................................... 75,346 80,967
Government National Mortgage Assoc.,
Pool #355069, 7.00%, due 2/15/24...................................... 89,709 88,658
Government National Mortgage Assoc. II,
Pool #2247, 7.00%, due 7/20/26........................................ 173,373 169,310
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $1,213,409)............. 1,228,841
------------
TOTAL U.S. GOVERNMENT & U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $1,904,584)..................................................... 1,922,998
------------
TOTAL INVESTMENTS (COST $3,274,006) - 99.1%............................ 3,315,837
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.9%.......................... 29,173
------------
NET ASSETS - 100.0%.................................................... $3,345,010
------------
------------
</TABLE>
(a) Mortgage trust bond.
(b) Collateral trust bond.
See notes to financial statements.
3
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
HIGH YIELD BOND FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ------------
<S> <C> <C>
CORPORATE BONDS - 95.1%
CONVERTIBLE BONDS - 2.5%
AUTOMOTIVE PARTS & EQUIPMENT - 2.4%
Exide Corp., 144A, 2.90%, 12/15/05 (d)................................. $25,000 $15,531
Hayes Wheels International, 11.00%, due 7/15/06........................ 50,000 55,125
------------
70,656
------------
CONGLOMERATES - 0.1%
Reeves Industries, Inc., 11.00%, due 7/15/02........................... 5,000 3,750
------------
TOTAL CONVERTIBLE BONDS (COST $69,424)................................. 74,406
------------
NON-CONVERTIBLE BONDS - 92.6%
AEROSPACE & DEFENSE - 2.3%
BE Aerospace, Inc., 9.875%, due 2/01/06................................ 33,000 34,980
K&F Industries, Inc., 10.375%, due 9/01/04............................. 30,000 31,800
------------
66,780
------------
APPAREL & TEXTILES - 3.0%
Synthetic Industries, 144A, 9.25%, due 2/15/07 (d)..................... 35,000 35,875
Westpoint Stevens, Inc., 9.375%, due 12/15/05 (b)...................... 50,000 52,250
------------
88,125
------------
AUTOMOTIVE PARTS & EQUIPMENT - 0.9%
Oxford Automotive, Inc., 144A, 10.125%, due 6/15/07 (d)................ 25,000 25,125
------------
BUILDING PRODUCTS & MATERIALS - 5.1%
American Standard, 10.50%, due 6/01/05 (a)............................. 50,000 49,437
Building Materials Corp., 11.75%, due 7/01/04 (a)...................... 25,000 22,812
Building Materials Corp., 8.625%, due 12/15/06......................... 40,000 40,800
Nortek, Inc., 9.25%, due 3/15/07....................................... 35,000 35,875
------------
148,924
------------
CHEMICIALS - 2.2%
Amphenol Corp., 9.875%, due 5/15/07.................................... 25,000 25,937
Harris Chemical, 10.25%, due 7/15/01 (a)(b)............................ 10,000 10,375
UCC Investors, 10.50%, due 5/01/02..................................... 25,000 27,188
------------
63,500
------------
COMMUNICATIONS & MEDIA - 1.7%
Cablevision Systems Corp., 9.25%, due 11/01/05......................... 25,000 25,812
Chancellor Radio Broadcasting, 144A, 8.75%, due 6/15/07 (d)............ 15,000 14,925
Rogers Cablesystems Ltd., 10.125%, due 9/01/12......................... 10,000 10,625
------------
51,362
------------
CONGLOMERATES - 0.7%
Atlantis Group, Inc., 11.00%, due 2/15/03.............................. 20,000 20,600
------------
CONTAINERS & PACKAGING - 4.6%
Calmar, Inc., 11.50%, due 8/15/05...................................... 25,000 26,625
Gaylord Container, 12.75%, due 5/15/05 (a)............................. 50,000 55,125
Gaylord Container, 144A, 9.75%, due 6/15/07 (d)........................ 25,000 25,062
U.S. Can Corp., 10.125%, due 10/15/06.................................. 25,000 26,813
------------
133,625
------------
</TABLE>
4
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
HIGH YIELD BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ------------
<S> <C> <C>
COSMETICS & TOILETRIES - 1.8%
Revlon Consumer Products, 10.50%, due 2/15/03.......................... $50,000 $53,375
------------
DIVERSIFIED HOLDING COMPANIES - 4.6%
E&S Holdings Corp., 10.375%, due 10/01/06.............................. 50,000 52,375
ESAT Holdings, 12.50%, due 2/01/07 (a)(b).............................. 75,000 45,000
Thermadyne Holding Corp., 10.75%, due 11/01/03......................... 35,000 36,050
------------
133,425
------------
ENTERTAINMENT & LEISURE - 2.0%
AMC Entertainment, Inc., 144A, 9.50%, due 3/15/09 (d).................. 25,000 25,625
American Skiing Corp., 12.00%, due 7/15/06............................. 25,000 26,500
Plitt Theatres, Inc., 10.875%, due 6/15/04............................. 5,000 5,300
------------
57,425
------------
FINANCIAL SERVICES - 2.0%
Globalstar LP Capital, 144A, 11.375%, due 2/15/04 (d).................. 25,000 24,875
Indah Kiat Financial Mauritius, 144A, 10.00%, due 7/01/07 (d).......... 15,000 15,056
PTC International Finance BV, 144A, 10.75%, due 7/01/07 (a)(d)......... 30,000 18,543
------------
58,474
------------
FOOD & BEVERAGE - 0.5%
Delta Beverage Group, 9.75%, due 12/15/03.............................. 15,000 15,675
------------
GAMING & HOTELS - 5.9%
Casino America, Inc., 12.50%, due 8/01/03.............................. 25,000 26,125
Coast Hotels & Casino, 13.00%, due 12/15/02............................ 20,000 22,450
El Dorado Resorts, 10.50%, due 8/15/06................................. 45,000 48,263
Grand Casinos, Inc., 10.125%, due 12/01/03............................. 20,000 20,950
Horshoe Gaming L.L.C., 144A, 9.375%, due 6/15/07 (d)................... 30,000 30,375
Red Roof Inns, 9.625%, due 12/15/03.................................... 20,000 20,450
Santa Fe Hotel, 11.00%, due 12/15/00................................... 5,000 3,675
------------
172,288
------------
HEALTH CARE - 1.7%
Tenet Healthcare Corp., 8.00%, due 1/15/05............................. 50,000 50,375
------------
INDUSTRIAL - 21.0%
AAF-McQuay, Inc., 8.875%, due 2/15/03.................................. 50,000 50,250
Brooks Fiber Properties, 10.875%, due 3/01/06 (a)...................... 40,000 27,450
Clark-Schwebel, Inc., 10.50%, due 4/15/06.............................. 25,000 26,750
Finlay Enterprises, 10.625%, due 5/01/03............................... 25,000 26,625
Haynes International, Inc., 11.625%, due 9/01/04....................... 50,000 55,500
Howmet Corp., 10.00%, due 12/01/03..................................... 50,000 53,500
IMO Industries, 11.75%, due 5/01/06.................................... 20,000 24,000
ITC Deltacom, Inc., 144A, 11.00%, due 6/01/07 (d)...................... 20,000 20,425
Interlake Corp., 12.125%, due 3/01/02.................................. 35,000 36,925
International Knife & Saw 11.375%, due 11/15/06........................ 40,000 42,900
Iron Mountain, Inc., 10.125%, due 10/01/06............................. 50,000 53,500
L-3 Comms Corp., 144A, 10.375%, due 5/01/07 (d)........................ 35,000 37,275
Marvel Holdings, 0.00%, due 4/15/98*................................... 10,000 1,500
Moog, Inc., 10.00%, due 5/01/06........................................ 25,000 26,418
</TABLE>
5
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
HIGH YIELD BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ------------
<S> <C> <C>
INDUSTRIAL (CONT'D) - 21.0%
Pierce Leahy Corp., 11.125%, due 7/15/06............................... $50,000 $55,250
Polymer Group, 12.25%, due 7/15/02..................................... 30,000 33,450
Remington Product Co. LLC, 11.00%, due 5/15/06......................... 5,000 4,425
Venture Holdings Trust, 9.75%, due 4/01/04............................. 15,000 14,700
Williams Scotsman, 144A, 9.875%, due 6/01/07 (d)....................... 25,000 25,125
------------
615,968
------------
MANUFACTURING - 1.7%
APP Financial II Mauritius Ltd., 144A, 12.00%, due 2/15/04 (a)(d)...... 10,000 10,325
Anacomp, Inc., 144A, 10.875%, due 4/01/04 (d).......................... 5,000 5,100
Clark R&M Holdings, 0.00%, due 2/15/00 (c)............................. 10,000 7,625
Fairfield Manufacturing, 11.375%, due 7/01/01 (b)...................... 25,000 26,812
------------
49,862
------------
METALS & MINING - 1.2%
Kaiser Aluminum & Chemical, 9.875%, due 2/15/02........................ 35,000 36,137
------------
OIL & OIL SERVICES - 2.5%
Falcon Drilling Co., 8.875%, due 3/15/03............................... 20,000 20,450
Gulf Canada Resources, 9.25%, due 1/15/04.............................. 25,000 26,344
Mesa Operating Co., 10.625%, due 7/01/06............................... 10,000 11,425
Pride Petroleum Services, Inc., 9.375%, due 5/01/07.................... 15,000 15,675
------------
73,894
------------
PUBLISHING - 0.9%
Hollinger International Publishing, 9.25%, due 3/15/07................. 25,000 25,625
------------
RETAILING - 0.8%
Parisian, Inc., 9.875%, due 7/15/03.................................... 22,000 22,770
------------
SERVICES - 0.7%
Kindercare Learning Centers, 9.50%, due 2/15/09........................ 20,000 19,600
------------
STEEL - 2.7%
AK Steel Corp., 9.125%, due 12/15/06................................... 25,000 25,813
WCI Steel, Inc., 10.00%, due 12/01/04.................................. 50,000 52,000
------------
77,813
------------
SUPERMARKETS - 3.2%
Grand Union Co., 12.00%, due 9/01/04................................... 10,000 7,450
Jitney-Jungle, 12.00%, due 3/01/06..................................... 5,000 5,594
Pathmark Stores, 9.625%, due 5/01/03................................... 10,000 9,700
Ralph's Grocery Co., 10.45%, due 6/15/04............................... 20,000 21,575
Shoppers Food Warehouse, 144A, 9.75%, 6/15/04 (d)...................... 20,000 19,976
Smiths Food & Drug Centers, 11.25%, due 5/15/07........................ 25,000 29,469
------------
93,764
------------
TELECOMMUNICATIONS & EQUIPMENT - 17.6%
Colt Telecommunications Group PLC, 12.00%, due 12/15/06 (a)............ 40,000 26,200
Comcast Cellular, 144A, 9.50%, due 5/01/07 (d)......................... 35,000 35,263
Diamond Cable Communications PLC, 144A, 10.75%, due 2/15/07 (a)(d)..... 40,000 23,200
Echostar Satellite Broadcast, 13.125%, due 3/15/04 (a)................. 15,000 10,762
</TABLE>
6
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
HIGH YIELD BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ------------
<S> <C> <C>
TELECOMMUNICATIONS & EQUIPMENT (CONT'D) - 17.6%
Echostar Satellite Broadcast, 12.875%, due 6/01/04 (a)................. $25,000 $21,125
Intelecom Group USA, Inc., 12.50%, due 5/01/06 (a)..................... 50,000 33,000
Intermedia Capital Partners, 11.25%, due 8/01/06....................... 25,000 27,375
Lenfest Communications, 10.50%, due 6/15/06............................ 25,000 27,312
MFS Communications, 8.875%, due 1/15/06 (a)............................ 30,000 23,850
McCaw International Ltd., 144A, 13.00%, due 4/15/07 (a)(d)............. 25,000 12,125
Millicom International Cellular, 13.50%, due 6/01/06 (a)............... 30,000 21,750
Mobilmedia Communications, 10.50%, due 12/01/03*....................... 10,000 1,250
Nextel Communications, 9.75%, due 8/15/04 (a).......................... 25,000 19,375
Orion Network Systems, 11.25%, due 1/15/07............................. 25,000 26,250
Paging Network, 8.875%, due 2/01/06.................................... 15,000 13,763
People's Choice TV Corp., 13.125%, due 6/01/04 (a)..................... 10,000 3,700
QWest Communications, 144A, 10.875%, due 4/01/07 (d)................... 25,000 27,375
Sprint Spectrum L.P. Fin., 11.00%, due 8/15/06......................... 50,000 55,500
Sygnet Wireless, Inc., 11.50%, due 10/01/06............................ 25,000 25,125
Teleport Communications, 11.125%, due 7/01/07 (a)...................... 50,000 36,188
Telesystem International Wireless, 13.25%, due 6/30/07 (a)(d).......... 35,000 18,725
Western Wireless Communications, 10.50%, due 2/01/07................... 25,000 26,094
------------
515,307
------------
TRANSPORTATION - 1.3%
CHC Helicopter, 11.50%, due 7/15/02.................................... 28,000 29,260
Central Transportation, 9.50%, due 4/30/03............................. 10,000 9,650
------------
38,910
------------
TOTAL NON-CONVERTIBLE BONDS (COST $2,615,016).......................... 2,708,728
------------
TOTAL CORPORATE BONDS (COST $2,684,440)................................ 2,783,134
------------
<CAPTION>
SHARES
----------
<S> <C> <C>
CONVERTIBLE PREFERRED STOCKS - 1.3%
COMMUNICATIONS & MEDIA - 1.0%
Time Warner, Inc. ..................................................... 252 28,035
------------
MANUFACTURING - 0.3%
K-III Communications................................................... 100 10,200
------------
TOTAL CONVERTIBLE PREFERRED STOCKS (COST $37,344)...................... 38,235
------------
TOTAL INVESTMENTS (COST $2,721,784) - 96.4%............................ 2,821,369
OTHER ASSETS IN EXCESS OF LIABILITIES - 3.6%.......................... 104,547
------------
NET ASSETS - 100.0%.................................................... $2,925,916
------------
------------
</TABLE>
* Non-income producing security.
(a) Variable or step coupon bond. Interest rate stated begins on a future date.
(b) Collateral trust bond.
(c) Zero coupon bond.
(d) Security exempt from registration under Rule 144A of the Securities Act of
1933.
These securities may be resold in transactions exempt from registration
normally to qualified institutional buyers. At June 30, 1997, these
securities amounted to a value of $465,906 or 15.9% of net assets.
See notes to financial statements.
7
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
BALANCED FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCKS - 53.5%
AEROSPACE & DEFENSE - 3.0%
Coltec Industries *.................................................... 1,800 $35,100
General Motors Corp., Class H.......................................... 570 32,918
McDonnell Douglas Corp. ............................................... 500 34,250
Rohr, Inc. *........................................................... 3,300 72,394
------------
174,662
------------
APPAREL & TEXTILES - 1.2%
Collins & Aikman Corp. ................................................ 5,210 52,100
Fruit of The Loom, Inc. *.............................................. 500 15,500
------------
67,600
------------
AUTOMOTIVE PARTS & EQUIPMENT - 0.1%
Lear Corp. *........................................................... 100 4,438
------------
BANKS AND SAVINGS & LOANS - 3.4%
Banc One Corp. ........................................................ 1,632 79,050
Citicorp............................................................... 300 36,169
Crestar Financial Corp. ............................................... 530 20,604
First Chicago NBD Corp. ............................................... 500 30,250
Great Western Financial................................................ 100 5,375
NationsBank Corp. ..................................................... 400 25,800
------------
197,248
------------
CAPITAL EQUIPMENT - 2.5%
AlliedSignal, Inc. .................................................... 850 71,400
Cooper Industries, Inc. ............................................... 1,500 74,625
------------
146,025
------------
CHEMICALS - 2.8%
Albemarle Corp. ....................................................... 2,770 58,343
Du Pont (E.I.) de Nemours & Co. ....................................... 960 60,360
Union Carbide Corp. ................................................... 900 42,356
------------
161,059
------------
COMPUTER SOFTWARE & SERVICES - 0.3%
Autodesk, Inc. *....................................................... 500 19,156
------------
COMPUTER SYSTEMS - 3.2%
Bay Networks, Inc. *................................................... 1,300 34,531
Cabletron Systems, Inc. *.............................................. 800 22,650
EMC Corp. *............................................................ 640 24,960
International Business Machines Corp. ................................. 800 72,150
Sun Microsystems, Inc. *............................................... 800 29,775
------------
184,066
------------
CONGLOMERATES - 0.7%
Unilever NV............................................................ 200 43,600
------------
</TABLE>
8
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
BALANCED FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
CONTAINERS - 0.6%
Temple-Inland, Inc. ................................................... 600 $32,400
------------
ELECTRICAL EQUIPMENT - 0.3%
Anixter International, Inc. *.......................................... 1,030 17,703
------------
ELECTRONICS - 3.2%
ADT Ltd *.............................................................. 700 23,100
General Instrument Corp. *............................................. 2,200 55,000
Input/Output, Inc. *................................................... 2,100 38,063
Intel Corp. ........................................................... 200 28,363
Perkin-Elmer Corp. .................................................... 310 24,664
Symbol Technologies, Inc. ............................................. 500 16,812
------------
186,002
------------
ENTERTAINMENT & LEISURE - 1.4%
Circus Circus Enterprises, Inc. *...................................... 1,700 41,863
International Game Technology.......................................... 2,100 37,275
------------
79,138
------------
ENVIRONMENTAL MANAGEMENT - 0.6%
Waste Management, Inc. ................................................ 1,100 35,338
------------
FINANCIAL SERVICES - 3.0%
Edwards, (A.G.), Inc. ................................................. 220 9,405
Federal National Mortgage Association.................................. 500 21,812
First Data Corp. ...................................................... 1,000 43,937
Morgan Stanley Dean Witter Discover.................................... 730 31,436
Providian Financial Corp. *............................................ 200 6,425
Salomon, Inc. ......................................................... 430 23,919
Washington Mutual, Inc. ............................................... 600 35,850
------------
172,784
------------
FOOD, BEVERAGE & TOBACCO - 3.4%
General Mills, Inc. ................................................... 700 45,588
PepsiCo, Inc. ......................................................... 2,100 78,881
Philip Morris Cos. .................................................... 500 22,188
Ralston-Ralston Purina Group........................................... 600 49,312
------------
195,969
------------
HEALTH CARE PRODUCTS & SERVICES - 1.3%
Columbia/HCA Healthcare Corp. ......................................... 200 7,862
United Healthcare Corp. ............................................... 1,300 67,600
------------
75,462
------------
HOUSEHOLD PRODUCTS - 1.5%
Procter & Gamble Co. .................................................. 600 84,750
------------
INSURANCE - 1.7%
Aegon N.V. ADR......................................................... 86 6,025
Financial Security Assurance Holdings Ltd. ............................ 900 35,044
</TABLE>
9
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
BALANCED FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF MARKET
SHARES VALUE
----------- ------------
<S> <C> <C>
INSURANCE (CONT'D) - 1.7%
Marsh & McClennan Cos. ................................................ 800 $57,100
------------
98,169
------------
MANUFACTURING - 0.4%
Allegheny Teledyne, Inc. .............................................. 900 24,300
------------
OIL & OIL SERVICES - 4.1%
Anadarko Petroleum Corp. .............................................. 340 20,400
British Petroleum Ltd. ADR............................................. 224 16,772
Enron Corp. ........................................................... 400 16,325
Exxon Corp. ........................................................... 1,200 73,800
Tosco Corp. ........................................................... 2,700 80,831
Valero Energy Corp. ................................................... 800 29,000
------------
237,128
------------
PHARMACEUTICALS - 3.7%
Alza Corp. *........................................................... 960 27,840
American Home Products Corp. .......................................... 800 61,200
Schering Plough Corp. ................................................. 500 23,937
Warner-Lambert Co. .................................................... 800 99,400
------------
212,377
------------
RETAILING - 2.7%
Circuit City Stores-CarMax Group *..................................... 110 1,574
Circuit City Stores-Circuit City Group................................. 900 32,006
Federated Department Stores, Inc. *.................................... 800 27,800
Toys R Us, Inc. *...................................................... 2,760 96,600
------------
157,980
------------
TELECOMMUNICATIONS & EQUIPMENT - 4.4%
Bell Atlantic Corp. ................................................... 300 22,762
GTE Corp. ............................................................. 700 30,712
MCI Communications..................................................... 800 30,625
Sprint Corp. .......................................................... 600 31,575
Tele-Communications, Class A *......................................... 4,490 66,789
WorldCom, Inc. *....................................................... 2,300 73,600
------------
256,063
------------
TRANSPORTATION - 1.8%
CNF Transportation, Inc. .............................................. 230 7,417
CSX Corp. ............................................................. 1,000 55,500
Union Pacific Corp. ................................................... 580 40,890
------------
103,807
------------
UTILITIES - 2.2%
Dominion Resources, Inc. .............................................. 690 25,271
Duke Energy Corp. ..................................................... 668 32,022
New England Electric System............................................ 960 35,520
Northern States Power.................................................. 700 36,225
------------
129,038
------------
TOTAL COMMON STOCKS (COST $2,700,393).................................. 3,096,262
------------
</TABLE>
10
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
BALANCED FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
----------- ------------
<S> <C> <C>
CORPORATE BONDS - 11.3%
CONVERTIBLE BOND - 0.2%
INDUSTRIAL - 0.2%
Ryerson Tull, Inc., 8.50%, due 7/15/01 (COST $9,976)................... $10,000 $10,195
------------
NON-CONVERTIBLE BONDS - 11.1%
AUTOMOTIVE - 3.2%
Aegis Auto Rec., Ser. 1996-2, 8.90%, due 1/20/02....................... 48,399 48,520
General Motors Corp., 7.40%, due 9/01/25............................... 70,000 69,039
Premier Auto Trust Mortgage, 6.15%, due 3/06/00 (a).................... 70,000 70,183
------------
187,742
------------
BANKING AND SAVINGS & LOANS - 0.5%
Export Import Bank of Korea, 6.50%, due 2/10/02 (b).................... 10,000 9,813
Thai Farmers Bank PLC, 8.25%, due 8/21/16.............................. 20,000 19,175
------------
28,988
------------
COMPUTER SYSTEMS - 0.5%
Seagate Technology, Inc., 7.125%, due 3/01/04.......................... 30,000 30,114
------------
FINANCIAL SERVICES - 2.6%
BBV International Finance, 7.00%, due 12/01/25......................... 40,000 36,957
Green Tree Financial Corp. 1995-10 A2, 5.80%, due 2/15/27 (a).......... 69,439 69,551
Green Tree Financial Corp., 7.238%, due 2/15/29........................ 25,000 24,983
Santista Export Sec. I, 8.09%, due 11/30/06............................ 20,000 20,125
------------
151,616
------------
INDUSTRIAL - 1.2%
Celulosa Arauco, 6.75%, due 12/15/03................................... 70,000 68,358
------------
INSURANCE - 1.2%
Metropolitan Life Insurance Co., 7.80%, due 11/01/25................... 70,000 69,825
------------
RETAILING - 0.2%
Federated Department Stores, 8.50%, due 6/15/03........................ 10,000 10,655
------------
TELECOMMUNICATIONS & EQUIPMENT - 0.5%
TCI Communications, Inc., 7.875%, due 2/15/26.......................... 10,000 9,558
WorldCom, Inc., 7.55%, due 4/01/04 (b)................................. 20,000 20,222
------------
29,780
------------
UTILITIES - 1.2%
Boston Edison Co., 6.05%, due 8/15/00.................................. 70,000 68,315
------------
TOTAL NON-CONVERTIBLE BONDS (COST $636,472)............................ 645,393
------------
TOTAL CORPORATE BONDS (COST $646,448).................................. 655,588
------------
U.S. GOVERNMENT & U.S. GOVERNMENT AGENCY OBLIGATIONS - 33.4%
U.S. GOVERNMENT OBLIGATIONS - 23.4%
U.S. Treasury Note, 6.375%, due 4/30/99................................ 49,000 49,276
U.S. Treasury Note, 6.875%, due 3/31/00................................ 139,000 141,302
</TABLE>
11
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
BALANCED FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT VALUE
----------- ------------
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS (CONT'D) - 23.4%
U.S. Treasury Note, 6.375%, due 9/30/01................................ $35,000 $35,022
U.S. Treasury Note, 6.375%, due 8/15/02................................ 306,000 305,905
U.S. Treasury Note, 6.25%, due 2/15/03................................. 401,000 397,993
U.S. Treasury Bond, 8.50%, due 2/15/20................................. 357,000 422,822
------------
TOTAL U.S. GOVERNMENT OBLIGATIONS (COST $1,345,181).................... 1,352,320
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 10.0%
Federal Home Loan Mortgage Corp., Gold Pool #C00427, 8.00%,
due 10/01/25.......................................................... 82,373 84,355
Federal Home Loan Mortgage Corp., Pool #D77232, 7.50%,
due 1/02/27........................................................... 74,689 75,121
Federal Home Loan Mortgage Corp., 7.50%, due 3/01/27................... 67,793 68,153
Federal National Mortgage Assoc., Pool #337434, 6.50%, due 2/01/26..... 68,096 65,327
Federal National Mortgage Assoc., Pool #339454, 6.00%, due 3/01/26..... 69,654 64,934
Federal National Mortgage Assoc., Pool #352795, 7.00%, due 7/01/26..... 43,571 42,786
Federal National Mortgage Assoc., Pool #354237, 7.00%, due 8/01/26..... 58,338 57,287
Government National Mortgage Assoc., Pool #2247, 7.00%,
due 7/20/26........................................................... 123,838 120,935
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $572,832)............... 578,898
------------
TOTAL U.S. GOVERNMENT & U.S. GOVERNMENT AGENCY OBLIGATIONS (COST
$1,918,013)........................................................... 1,931,218
------------
TOTAL INVESTMENTS (COST $5,264,854) - 98.2%............................ 5,683,068
OTHER ASSETS IN EXCESS OF LIABILITIES - 1.8%.......................... 105,989
------------
NET ASSETS - 100.0%.................................................... $5,789,057
------------
------------
</TABLE>
* Non-income producing security.
ADR - American Depository Receipt.
(a) Mortgage bond.
(b) Collateral Trust bond.
See notes to financial statements.
12
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCKS - 91.2%
AEROSPACE & DEFENSE - 4.1%
Gulfstream Aerospace Corp. *........................................... 1,000 $29,500
Litton Industries *.................................................... 1,700 82,131
Lockheed Martin........................................................ 600 62,137
Raytheon Co. .......................................................... 1,900 96,900
------------
270,668
------------
APPLIANCES - 0.8%
Maytag Corp. .......................................................... 1,900 49,637
------------
ART DEALERSHIP - 0.5%
Sotheby's Holdings, Class A............................................ 2,000 33,750
------------
BANKS AND SAVINGS & LOANS - 2.5%
Bank of New York Co., Inc. ............................................ 1,100 47,850
Citicorp............................................................... 500 60,281
Republic New York Corp. ............................................... 500 53,750
------------
161,881
------------
BUILDING MATERIALS - 1.5%
USG Corp. *............................................................ 2,600 94,900
------------
CAPITAL EQUIPMENT - 2.9%
AlliedSignal, Inc. .................................................... 500 42,000
Cummins Engine Co., Inc. .............................................. 800 56,450
Harsco Corp. .......................................................... 1,200 48,600
Ingersoll-Rand Co. .................................................... 700 43,225
------------
190,275
------------
CHEMICALS - 3.6%
Ferro Corp. ........................................................... 1,300 48,181
Imperial Chemical Industries ADR....................................... 1,500 85,312
Olin Corp. ............................................................ 1,000 39,062
Union Carbide Corp. ................................................... 1,300 61,181
------------
233,736
------------
COMPUTER SOFTWARE & SERVICES - 2.8%
Automatic Data Processing.............................................. 1,700 79,900
Reynolds & Reynolds, Class A........................................... 1,700 26,775
Sun Microsystems, Inc. *............................................... 2,000 74,437
------------
181,112
------------
COMPUTER SYSTEMS - 5.5%
Hewlett-Packard Co. ................................................... 1,700 95,200
International Business Machines Corp. ................................. 1,700 153,319
Quantum Corp. *........................................................ 2,000 40,625
Seagate Technology *................................................... 2,100 73,894
------------
363,038
------------
</TABLE>
13
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
CONGLOMERATES - 1.0%
Unilever NV............................................................ 300 $65,400
------------
CONSUMER DURABLES - 5.8%
Chrysler Corp. ........................................................ 5,800 190,312
Ford Motor Co. ........................................................ 2,900 109,475
Volvo AB ADR........................................................... 3,000 80,250
------------
380,037
------------
ELECTRONICS - 0.8%
Eaton Corp. ........................................................... 600 52,388
------------
ENVIRONMENTAL MANAGEMENT - 0.8%
Browning-Ferris Industries............................................. 800 26,600
Waste Management, Inc. ................................................ 800 25,700
------------
52,300
------------
FINANCIAL SERVICES - 5.1%
American Express Co. .................................................. 1,100 81,950
Block (H&R), Inc. ..................................................... 900 29,025
Federal Home Loan Mortgage Corp. ...................................... 1,300 44,688
Federal National Mortgage Association.................................. 1,400 61,075
Household International, Inc. ......................................... 400 46,975
Lehman Brothers Holding, Inc. ......................................... 1,700 68,850
------------
332,563
------------
FOOD, BEVERAGE & TOBACCO - 9.0%
Anheuser-Busch Cos., Inc. ............................................. 2,600 109,037
PepsiCo, Inc. ......................................................... 1,900 71,369
Philip Morris Cos., Inc. .............................................. 3,400 150,875
RJR Nabisco Holdings Corp. ............................................ 4,000 132,000
Ralston-Ralston Purina Group........................................... 300 24,656
Sara Lee Corp. ........................................................ 1,500 62,438
Swedish Match Co. ADR.................................................. 1,200 40,800
------------
591,175
------------
HEALTH CARE PRODUCTS & SERVICES - 5.0%
Baxter International, Inc. ............................................ 1,400 73,150
Columbia HCA Healthcare Corp. ......................................... 1,700 66,831
Foundation Health Systems, Class A *................................... 1,800 54,563
McKesson Corp. ........................................................ 200 15,500
Tenet Healthcare Corp. *............................................... 1,100 32,519
United Healthcare Corp. ............................................... 700 36,400
Wellpoint Health Networks, Inc. *...................................... 1,000 45,875
------------
324,838
------------
HOUSEHOLD PRODUCTS - 0.3%
Newell Co. ............................................................ 500 19,812
------------
</TABLE>
14
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
INSURANCE - 4.2%
Berkley (W.R.) Corp. .................................................. 900 $52,988
Equitable of Iowa Cos. ................................................ 600 33,600
General Re Corp. ...................................................... 300 54,600
MBIA, Inc. ............................................................ 900 101,531
Terra Nova (Bermuda) Holdings Ltd. .................................... 1,500 31,500
------------
274,219
------------
METALS - 2.3%
Alumax, Inc. *......................................................... 1,700 64,494
Aluminum Co. of America................................................ 800 60,300
LTV Corp. ............................................................. 1,700 24,225
------------
149,019
------------
OFFICE SUPPLIES & EQUIPMENT - 2.1%
Deluxe Corp. .......................................................... 800 27,300
Pitney-Bowes, Inc. .................................................... 1,600 111,200
------------
138,500
------------
OIL & OIL SERVICES - 12.1%
British Petroleum Ltd ADR.............................................. 2,100 157,238
Dresser Industries, Inc. .............................................. 800 29,800
Exxon Corp. ........................................................... 2,400 147,600
Noble Drilling Corp. *................................................. 3,200 72,200
Parker and Parsley Petroleum Co. ...................................... 1,100 38,913
Reading & Bates Corp. *................................................ 1,900 50,825
Royal Dutch Petroleum Co. ADR.......................................... 1,200 65,250
Total SA ADR........................................................... 1,700 86,063
Transocean Offshore, Inc. ............................................. 1,000 72,625
Western Atlas, Inc. *.................................................. 1,000 73,250
------------
793,764
------------
PHARMACEUTICALS - 1.8%
Bristol-Myers Squibb Co. .............................................. 900 72,900
Schering-Plough Corp. ................................................. 1,000 47,875
------------
120,775
------------
PHOTOGRAPHY EQUIPMENT - 0.9%
Polaroid Corp. ........................................................ 1,100 61,050
------------
RESTAURANTS & LODGING - 0.3%
Lone Star Steakhouse & Saloon *........................................ 800 20,800
------------
RETAILING - 6.9%
Carson Pirie Scott & Co. *............................................. 1,100 34,925
Federated Department Stores, Inc. *.................................... 1,600 55,600
Harcourt General, Inc. ................................................ 500 23,813
May Department Stores Co. ............................................. 700 33,075
Neiman-Marcus Group, Inc. *............................................ 1,300 34,125
Payless ShoeSource, Inc. *............................................. 1,200 65,625
Rite Aid Corp. ........................................................ 1,000 49,875
</TABLE>
15
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
RETAILING (CONT'D) - 6.9%
Tandy Corp. ........................................................... 500 $28,000
Wal-Mart Stores, Inc. ................................................. 3,800 128,488
------------
453,526
------------
TELECOMMUNICATIONS & EQUIPMENT - 5.1%
Alltel Corp. .......................................................... 900 30,094
Ameritech Corp. ....................................................... 1,000 67,938
MCI Communications Corp. .............................................. 1,000 38,281
NYNEX Corp. ........................................................... 1,800 103,725
SBC Communications, Inc. .............................................. 1,500 92,812
------------
332,850
------------
TRANSPORTATION - 1.7%
Burlington Northern Santa Fe........................................... 500 44,938
CSX Corp. ............................................................. 1,200 66,600
------------
111,538
------------
UTILITIES - 1.8%
American Electric Power................................................ 1,000 42,000
DPL, Inc. ............................................................. 500 12,312
DQE, Inc. ............................................................. 400 11,300
Entergy Corp. ......................................................... 1,200 32,850
Illinova Corp. ........................................................ 800 17,600
------------
116,062
------------
TOTAL COMMON STOCKS (COST $5,810,783).................................. 5,969,613
------------
CONVERTIBLE PREFERRED STOCKS - 3.4%
FINANCIAL SERVICES - 0.6%
Merrill Lynch "IGL" Strypes............................................ 1,000 37,500
------------
INSURANCE - 2.4%
Aetna, Inc., Class C................................................... 400 37,500
Allstate Corp. ........................................................ 2,300 119,600
------------
157,100
------------
TELECOMMUNICATIONS & EQUIPMENT - 0.4%
Airtouch Communications................................................ 900 25,650
------------
TOTAL CONVERTIBLE PREFERRED STOCKS (COST $218,946)..................... 220,250
------------
</TABLE>
16
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
GROWTH & INCOME FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ------------
<S> <C> <C>
REPURCHASE AGREEMENT - 4.8%
Repurchase agreement with State Street Bank, 5.80%, due 7/01/97, dated
6/30/96, with a maturity value of $317,051; collateralized by $320,000
U.S. Treasury Note, 6.125%, due 3/31/98; market value $325,600
(COST $317,000)....................................................... $317,000 $317,000
------------
TOTAL INVESTMENTS (COST $6,346,729) - 99.4%............................ 6,506,863
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.6%.......................... 41,875
------------
NET ASSETS - 100.0%.................................................... $6,548,738
------------
------------
</TABLE>
* Non-income producing security.
ADR - American Depository Receipt.
See notes to financial statements.
17
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
GROWTH FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCKS - 96.1%
APPAREL & TEXTILES - 1.2%
Jones Apparel Group, Inc. *............................................ 1,000 $47,750
Wolverine World Wide................................................... 2,250 68,344
------------
116,094
------------
APPLIANCES - 1.4%
Sunbeam Corp. ......................................................... 3,700 139,675
------------
BANKS AND SAVINGS & LOANS - 4.3%
Citicorp............................................................... 500 60,281
First Bank System, Inc. ............................................... 1,000 85,375
Northern Trust Corp. .................................................. 1,700 82,237
Norwest Corp. ......................................................... 1,400 78,750
Washington Mutual, Inc. ............................................... 2,000 119,500
------------
426,143
------------
CHEMICALS - 0.5%
Monsanto Co. .......................................................... 1,100 47,369
------------
COMMERCIAL SERVICES - 3.8%
AccuStaff, Inc. *...................................................... 1,800 42,637
Billing Information Concepts *......................................... 1,600 55,800
Corrections Corp. of America *......................................... 1,800 71,550
Mail-Well, Inc. *...................................................... 3,200 91,200
Outdoor Systems, Inc. *................................................ 2,000 76,500
Service Corp. International............................................ 1,200 39,450
------------
377,137
------------
COMMUNICATIONS & MEDIA - 0.8%
Clear Channel Communication *.......................................... 1,400 86,100
------------
COMPUTER SOFTWARE & SERVICES - 10.2%
3Com Corp. *........................................................... 300 13,500
CBT Group PLC ADR *.................................................... 700 44,187
Cisco Systems, Inc. *.................................................. 2,100 140,962
Compuware Corp. *...................................................... 2,200 105,050
Fiserv, Inc. *......................................................... 2,000 89,250
HBO & Co. ............................................................. 1,000 68,875
McAfee Associates, Inc. *.............................................. 2,300 145,187
Microsoft Corp. *...................................................... 1,000 126,375
National Data Corp. ................................................... 900 38,981
PeopleSoft, Inc. *..................................................... 2,100 110,775
Sykes Enterprises, Inc. *.............................................. 3,000 78,000
Veritas Software Corp. *............................................... 1,000 50,250
------------
1,011,392
------------
</TABLE>
18
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
COMPUTER SYSTEMS - 1.8%
Dell Computer Corp. *.................................................. 900 $105,694
Oracle Corp. *......................................................... 1,400 70,525
------------
176,219
------------
COSMETICS & TOILETRIES - 0.7%
Gillette & Co. ........................................................ 700 66,325
------------
DIVERSIFIED OPERATIONS - 3.4%
Corning, Inc. ......................................................... 2,500 139,063
General Electric Co. .................................................. 1,700 111,137
Textron, Inc. ......................................................... 1,300 86,288
------------
336,488
------------
ELECTRONICS & ELECTRONIC EQUIPMENT - 7.0%
ASM Lithography Holdings NV *.......................................... 1,300 76,050
Altera Corp. *......................................................... 1,500 75,750
Applied Materials, Inc.*............................................... 800 56,650
Intel Corp. ........................................................... 800 113,450
KLA-Tencor Corp. *..................................................... 1,000 48,750
Kent Electronics Corp. *............................................... 1,900 69,706
Motorola, Inc. ........................................................ 700 53,200
Perkin-Elmer Corp. .................................................... 1,000 79,563
Teradyne, Inc. *....................................................... 1,600 62,800
Uniphase Corp. *....................................................... 1,000 58,250
------------
694,169
------------
ENTERTAINMENT & LEISURE - 0.4%
Carnival Corp., Class A................................................ 1,000 41,250
------------
FINANCIAL SERVICES - 4.9%
American Express Co. .................................................. 1,400 104,300
FIRSTPLUS Financial Group *............................................ 3,000 102,000
Franklin Resources, Inc. .............................................. 1,800 130,612
Patriot American Hospitality, Inc. .................................... 1,700 43,350
Starwood Lodging Trust................................................. 1,200 51,225
The Charles Schwab Corp. .............................................. 1,500 61,031
------------
492,518
------------
FOOD, BEVERAGE & TOBACCO - 3.0%
Coca-Cola Enterprises.................................................. 1,800 41,400
PepsiCo, Inc.. ........................................................ 2,400 90,150
Philip Morris Cos., Inc. .............................................. 2,100 93,187
The Coca-Cola Co. ..................................................... 1,100 74,250
------------
298,987
------------
FOREST & PAPER PRODUCTS - 0.7%
Fort Howard Corp. *.................................................... 1,400 70,875
------------
</TABLE>
19
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
HEALTH CARE PRODUCTS & SERVICES - 7.2%
AmeriSource Health Corp., Class A *.................................... 1,300 $64,838
Guidant Corp. ......................................................... 600 51,000
HEALTHSOUTH Corp. *.................................................... 5,000 124,688
Johnson & Johnson...................................................... 1,100 70,812
McKesson Corp. ........................................................ 2,000 155,000
Medical Resources, Inc. *.............................................. 3,300 54,450
Medtronic, Inc. ....................................................... 1,800 145,800
Oxford Health Plans, Inc. *............................................ 700 50,225
------------
716,813
------------
HOUSEHOLD PRODUCTS - 0.6%
Procter & Gamble Co. .................................................. 400 56,500
------------
INSURANCE - 5.1%
Conseco, Inc. ......................................................... 2,600 96,200
Hartford Life, Inc. Class A *.......................................... 2,800 105,000
MGIC Investment Corp. ................................................. 1,800 86,288
Nationwide Financial Services, Class A................................. 1,000 26,563
The Travelers Group., Inc. ............................................ 1,600 100,900
Western National Corp. ................................................ 3,500 93,844
------------
508,795
------------
METALS - 0.9%
Illinois Tool Works, Inc. ............................................. 1,800 89,888
------------
OFFICE EQUIPMENT - 4.4%
Danka Business Systems PLC ADR......................................... 5,000 204,375
Knoll, Inc. *.......................................................... 2,900 68,875
Xerox Corp. ........................................................... 2,100 165,637
------------
438,887
------------
OIL & OIL SERVICES - 8.0%
B.J. Services Co. *.................................................... 100 5,363
Cooper Cameron Corp. *................................................. 2,800 130,900
EVI, Inc. *............................................................ 2,500 105,000
Falcon Drilling Co. *.................................................. 1,400 80,675
Gulf Canada Reources Ltd. ADR *........................................ 10,000 83,125
Newpark Resources *.................................................... 3,000 101,250
Santa Fe International Corp. .......................................... 1,500 51,000
Schlumberger Ltd. ..................................................... 700 87,500
Smith International, Inc. *............................................ 1,000 60,750
Sun Co., Inc. ......................................................... 3,100 96,100
------------
801,663
------------
PHARMACEUTICALS - 9.8%
Abbott Laboratories.................................................... 1,300 86,775
American Home Products Corp. .......................................... 1,200 91,800
Elan Corp. PLC ADR *................................................... 1,300 58,825
Eli Lilly & Co. ....................................................... 1,800 196,763
Parexel International Corp. *.......................................... 2,000 63,500
</TABLE>
20
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
PHARMACEUTICALS (CONT'D) - 9.8%
Pfizer, Inc. .......................................................... 1,800 $215,100
Warner Lambert Co. .................................................... 2,100 260,925
------------
973,688
------------
RESTAURANTS & LODGING - 1.0%
Wyndham Hotel Corp. *.................................................. 3,000 97,875
------------
RETAILING - 8.9%
Consolidated Stores Corp. *............................................ 1,875 65,156
Dayton-Hudson Corp. ................................................... 1,600 85,100
Dollar General Corp. .................................................. 1,600 60,000
Dollar Tree Stores, Inc. *............................................. 1,400 70,525
Fastenal Co. .......................................................... 600 29,400
Home Depot, Inc. ...................................................... 1,800 124,088
Kohl's Corp. *......................................................... 2,400 127,050
ShopKo Stores, Inc. ................................................... 2,000 51,000
Staples, Inc. *........................................................ 3,000 69,750
Starbucks Corp. *...................................................... 1,100 42,831
Wal-Mart Stores, Inc. ................................................. 2,500 84,531
Walgreen Co. .......................................................... 1,500 80,437
------------
889,868
------------
TELECOMMUNICATIONS & EQUIPMENT - 5.5%
Boston Technology, Inc. *.............................................. 3,200 94,600
Cincinnati Bell, Inc. ................................................. 1,600 50,400
Lucent Technologies, Inc. ............................................. 1,000 72,063
Nokia Corp. ADR........................................................ 1,300 95,875
Tellabs, Inc. *........................................................ 3,300 184,387
WorldCom, Inc. *....................................................... 1,700 54,400
------------
551,725
------------
TRANSPORTATION - 0.6%
Midwest Express Holdings, Inc. *....................................... 2,250 61,594
------------
TOTAL COMMON STOCKS (COST $8,014,120).................................. 9,568,037
------------
TOTAL INVESTMENTS (COST $8,014,120) - 96.1%............................ 9,568,037
OTHER ASSETS IN EXCESS OF LIABILITIES - 3.9%.......................... 384,396
------------
NET ASSETS - 100.0%.................................................... $9,952,433
------------
------------
</TABLE>
* Non-income producing security.
ADR - American Depository Receipt.
See notes to financial statements.
21
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
EMERGING GROWTH FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCKS - 97.5%
BANKING AND SAVINGS & LOANS - 2.5%
Banc One Corp. ........................................................ 1,865 $90,336
Compass Bancshares, Inc. .............................................. 1,200 40,350
First Hawaiian, Inc. .................................................. 1,100 37,538
ONBANCorp, Inc. ....................................................... 900 45,900
------------
214,124
------------
CAPITAL EQUIPMENT - 0.9%
AGCO Corp. ............................................................ 1,100 39,531
Greenfield Industries.................................................. 1,500 40,500
------------
80,031
------------
CHEMICALS - 0.5%
Cambrex Corp. ......................................................... 1,100 43,587
------------
COMMERCIAL SERVICES - 0.5%
Accustaff, Inc. *...................................................... 1,800 42,637
------------
COMMUNICATIONS & MEDIA - 2.6%
Cox Communications, Inc., Class A *.................................... 400 9,600
Cox Radio, Inc., Class A *............................................. 1,800 46,125
Heritage Media Corp., Class A *........................................ 8,600 162,325
------------
218,050
------------
COMPUTER SOFTWARE & SERVICES - 19.2%
Activision, Inc. *..................................................... 1,300 18,687
Adobe Systems, Inc. ................................................... 2,500 87,656
Affiliated Computer Services, Class A *................................ 900 25,200
BDM International, Inc. *.............................................. 1,900 43,700
BISYS Group, Inc. *.................................................... 1,200 50,100
BMC Software, Inc. *................................................... 1,000 55,375
Cadence Design System, Inc. *.......................................... 6,330 212,055
Claremont Technology Group, Inc. *..................................... 3,500 83,125
Computer Associates International, Inc. ............................... 900 50,119
Computer Sciences Corp. *.............................................. 1,200 86,550
DST Systems, Inc. *.................................................... 1,900 63,294
Edify Corp. *.......................................................... 9,200 135,700
Electronic Arts *...................................................... 3,900 131,137
Fiserv, Inc. *......................................................... 2,900 129,413
HBO & Co. ............................................................. 600 41,325
HPR, Inc. *............................................................ 2,300 42,550
Pure Atria Corp. *..................................................... 1,800 25,425
SPS Transaction Services CRP, Inc. *................................... 2,900 53,650
Synopsys, Inc. *....................................................... 6,700 246,225
Technology Solutions Co. *............................................. 1,100 43,450
------------
1,624,736
------------
</TABLE>
22
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
EMERGING GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
COMPUTER SYSTEMS - 7.5%
Cerner Corp. *......................................................... 800 $16,800
HCIA, Inc. *........................................................... 6,500 217,750
IDX Systems Corp. *.................................................... 900 31,050
Oracle Corp. *......................................................... 3,400 171,275
Quantum Corp. *........................................................ 3,700 75,156
Seagate Technology *................................................... 500 17,594
Spectrum Holobyte, Inc. *.............................................. 2,000 9,750
Transition Systems, Inc. *............................................. 5,200 94,575
------------
633,950
------------
ELECTRICAL EQUIPMENT - 3.9%
Cable Design Technologies *............................................ 11,200 329,700
------------
ELECTRONICS & ELECTRONIC EQUIPMENT - 8.6%
ADT Ltd. *............................................................. 6,000 198,000
Actel Corp. *.......................................................... 1,900 32,419
Analog Devices, Inc. *................................................. 3,200 85,000
Atmel Corp. *.......................................................... 700 19,600
Gemstar International Group Ltd. *..................................... 9,307 171,016
KLA-Tencor Corp. *..................................................... 1,200 58,500
Kulicke & Soffa Industries, Inc. *..................................... 4,300 139,616
LSI Logic Corp. *...................................................... 600 19,200
------------
723,351
------------
ENTERTAINMENT & LEISURE - 0.5%
Harrah's Entertainment, Inc. *......................................... 2,100 37,800
------------
ENVIRONMENTAL MANAGEMENT - 0.0%
Waste Industries, Inc. ................................................ 100 1,762
------------
FINANCIAL SERVICES - 4.9%
Advanta Corp., Class B................................................. 1,300 46,394
Finova Group........................................................... 1,000 76,500
First USA Paymentech, Inc. *........................................... 100 2,894
FIRSTPLUS Financial Group *............................................ 200 6,800
Franklin Resources, Inc. .............................................. 3,900 282,994
------------
415,582
------------
FOOD & BEVERAGE - 0.9%
McCormack & Co., Inc. ................................................. 3,100 78,275
------------
HEALTH CARE PRODUCTS & SERVICES - 12.8%
Acuson Corp. *......................................................... 1,500 34,500
AmeriSource Health Corp., Class A *.................................... 2,300 114,713
CRA Managed Care *..................................................... 600 31,313
Health Management Associates, Inc., Class A *.......................... 2,750 78,375
Healthsource, Inc. *................................................... 1,500 32,531
HEALTHSOUTH Corp. *.................................................... 900 22,444
Mariner Health Group, Inc. *........................................... 14,200 219,213
Mentor Corp. .......................................................... 1,400 41,475
</TABLE>
23
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
EMERGING GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
HEALTH CARE PRODUCTS & SERVICES (CONT'D) - 12.8%
Nellcor Puritan Bennett, Inc. *........................................ 2,600 $47,125
Renal Treatment Centers, Inc. *........................................ 1,600 43,000
Safeguard Health Enterprises *......................................... 1,000 10,625
St. Jude Medical, Inc. *............................................... 6,400 249,600
Trigon Healthcare, Inc. *.............................................. 4,100 99,425
United Healthcare Corp. ............................................... 1,100 57,200
------------
1,081,539
------------
INSURANCE - 1.9%
CompDent Corp. *....................................................... 3,900 82,144
Conseco, Inc. ......................................................... 2,000 74,000
Hartford Life, Inc., Class A *......................................... 100 3,750
Nationwide Financial Services, Class A................................. 100 2,656
------------
162,550
------------
MANUFACTURING - 1.0%
Keystone International, Inc. .......................................... 2,500 86,719
------------
OFFICE EQUIPMENT - 1.1%
Danka Business Systems PLC ADR......................................... 2,200 89,925
------------
OIL & OIL SERVICES - 2.5%
Apache Corp. .......................................................... 1,200 39,000
Cooper Cameron Corp. *................................................. 1,000 46,750
Diamond Offshore Drilling *............................................ 400 31,250
Global Industries Ltd. *............................................... 1,400 32,703
National-Oilwell, Inc. *............................................... 300 17,250
Santa Fe International Corp. .......................................... 100 3,400
Transocean Offshore, Inc. ............................................. 600 43,575
------------
213,928
------------
RESTAURANTS & LODGING - 3.5%
Applebee's International, Inc. ........................................ 1,000 26,750
Choice Hotels Corp., Inc. *............................................ 800 13,550
HFS, Inc. *............................................................ 1,650 95,700
Prime Hospitality *.................................................... 1,900 37,525
Promus Hotel Corp. *................................................... 3,000 116,250
Silverleaf Resorts, Inc. *............................................. 100 1,537
------------
291,312
------------
RETAILING - 9.7%
AnnTaylor Stores *..................................................... 2,800 54,600
Gymboree Corp. *....................................................... 8,000 192,000
Home Depot, Inc. ...................................................... 1,000 68,937
Office Depot *......................................................... 1,300 25,269
Polo Ralph Lauren Corp. *.............................................. 100 2,737
Rite Aid Corp. ........................................................ 3,900 194,512
Smith's Food & Drug Centers, Class B *................................. 2,000 107,250
</TABLE>
24
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
EMERGING GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
RETAILING (CONT'D) - 9.7%
Viking Office Products, Inc. *......................................... 8,900 $169,100
------------
814,405
------------
TELECOMMUNICATIONS & EQUIPMENT - 9.0%
Aerial Communications, Inc. *.......................................... 6,400 54,400
AirTouch Communications, Inc. *........................................ 2,100 57,487
Ascend Communications, Inc. *.......................................... 7,100 279,563
Aspect Telecommunications *............................................ 3,800 84,550
Cascade Communications Corp. *......................................... 2,300 63,538
Rogers Communications, Class B *....................................... 6,700 41,456
Telephone & Data Systems, Inc. ........................................ 2,000 75,875
U.S. Cellular Corp. *.................................................. 3,000 88,875
U S West Media Group, Inc. *........................................... 600 12,150
------------
757,894
------------
TRANSPORTATION - 3.4%
Kansas City Southern Industries........................................ 1,400 90,300
Wisconsin Central Transportation Corp. *............................... 5,200 193,700
------------
284,000
------------
WHOLESALE DISTRIBUTION - 0.1%
Earthgrains Co. ....................................................... 100 6,556
------------
TOTAL COMMON STOCKS (COST $7,245,364).................................. 8,232,413
------------
CONVERTIBLE PREFERRED STOCK - 0.8%
RESTAURANTS & LODGING - 0.8%
La Quinta Inns (COST $53,740).......................................... 3,100 67,813
------------
TOTAL INVESTMENTS (COST $7,299,104) - 98.3%............................ 8,300,226
OTHER ASSETS IN EXCESS OF LIABILITIES - 1.7%.......................... 143,910
------------
NET ASSETS............................................................. $8,444,136
------------
------------
</TABLE>
* Non-income producing security.
ADR - American Depository Receipt
See notes to financial statements.
25
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCKS - 94.8%
ARGENTINA - 0.7%
Banco de Galicia y Buenos Aires SA ADR................................. 800 $21,100
Telefonica de Argentina SA ADR......................................... 800 27,700
------------
48,800
------------
AUSTRALIA - 4.1%
BRL Hardy Ltd. ........................................................ 30,030 85,173
National Australian Bank Ltd. ......................................... 7,000 99,479
Woolworths Ltd. ....................................................... 36,000 117,316
------------
301,968
------------
BRAZIL - 2.8%
Centrais Electricas Brasileiras ADR.................................... 1,900 53,124
Petroleo Brasilerio SA ADR............................................. 1,900 52,064
Telecomunicacoes Brasileiras SA ADR.................................... 500 75,875
Uniao de Bancos Brasileiros SA GDR *................................... 800 29,700
------------
210,763
------------
CANADA - 2.2%
BCE, Inc. ............................................................. 700 19,485
Berkley Petroleum Corp. *.............................................. 1,500 14,135
Bombardier, Inc., Class B.............................................. 700 15,882
Canadan Occidental Petroleum........................................... 1,200 26,965
Cinram Ltd. ........................................................... 600 15,222
Gulfstream Resources CDA Ltd. ......................................... 2,800 22,529
Royal Bank of Canada................................................... 800 36,272
Westmin Resources Ltd. *............................................... 2,100 10,047
------------
160,537
------------
CHILE - 0.6%
Banco BHIF ADR......................................................... 1,400 29,575
Quinenco SA ADR *...................................................... 900 16,650
------------
46,225
------------
FRANCE - 10.8%
Alcatel Alsthom Nouvelles.............................................. 1,300 162,972
Christian Dior SA...................................................... 1,030 170,177
Pinault-Printemps...................................................... 310 149,114
Societe Generale....................................................... 1,382 150,845
Sodexho Alliance SA.................................................... 340 174,258
------------
807,366
------------
GERMANY - 7.7%
Daimler-Benz AG........................................................ 1,800 146,580
Dresdner Bank AG....................................................... 4,150 145,515
Gehe AG................................................................ 2,050 141,174
Metro AG............................................................... 1,300 141,748
------------
575,017
------------
</TABLE>
26
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
HONG KONG - 3.1%
Cheung Kong Holdings................................................... 11,000 $108,619
HSBC Holdings PLC...................................................... 4,000 120,300
------------
228,919
------------
ITALY - 4.2%
ENI SPA................................................................ 31,850 180,168
Gucci Group NV......................................................... 2,020 131,964
------------
312,132
------------
JAPAN - 21.9%
Canon, Inc. ........................................................... 3,000 81,797
Fuji Machine Mfg Co. .................................................. 2,000 72,533
Fujitsu Ltd. .......................................................... 6,000 83,370
Hitachi Ltd. .......................................................... 6,000 67,115
Industrial Bank of Japan............................................... 5,000 77,777
Ito-Yokado Co. Ltd. ................................................... 1,000 58,114
Marui Co. Ltd. ........................................................ 3,000 55,842
Mitsubishi Estate Co. Ltd. ............................................ 6,000 87,040
NEC Corp. ............................................................. 5,000 69,912
NTT Data Corp. ........................................................ 3 116,141
Nichiei Co. Ltd. ...................................................... 900 104,605
Nippon Telegraph & Telephone Corp. .................................... 6 57,677
Rohm Co. Ltd. ......................................................... 1,000 103,120
Shin-Etsu Chemical Co. ................................................ 3,000 79,699
Sony Corp. ............................................................ 900 78,572
Sumitomo Bank Ltd. .................................................... 4,000 65,717
Sumitomo Electric Industries........................................... 6,000 100,673
The Bank of Tokyo-Mitsubishi Ltd. ..................................... 4,000 80,399
Tokyu Land Corp. *..................................................... 20,000 83,020
Toyota Motor Corp. .................................................... 2,000 59,075
Ushio, Inc. ........................................................... 4,000 49,637
------------
1,631,835
------------
MALAYSIA - 1.3%
Malayan Banking Berhad................................................. 9,000 94,493
------------
MEXICO - 0.8%
Desc SA ADR............................................................ 1,000 29,125
Telefonos de Mexico, Class L ADR....................................... 627 29,939
------------
59,064
------------
NETHERLANDS - 9.0%
Koninklijke Ahold NV................................................... 1,999 168,954
Internationale Nederlanden Groep NV.................................... 5,004 231,132
Royal Dutch Petroleum.................................................. 1,200 62,532
VNU-Verenigde Nederlandse Uitgeversbedrijven........................... 6,180 136,890
Wolters Kluwer - CVA................................................... 600 73,189
------------
672,697
------------
</TABLE>
27
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1997 (UNAUDITED)
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C> <C>
SINGAPORE - 1.3%
United Overseas Bank Ltd. ............................................. 9,000 $92,527
------------
SPAIN - 1.9%
Telefonica de Espana................................................... 4,900 141,932
------------
SWEDEN - 3.0%
Telefonaktiebolaget LM Ericsson, Class B............................... 5,660 222,890
------------
SWITZERLAND - 3.7%
Novartis AG............................................................ 173 276,971
------------
UNITED KINGDOM - 15.5%
BBA Group PLC.......................................................... 27,000 159,523
Barclays PLC........................................................... 11,000 218,223
British Aerospace PLC.................................................. 5,000 111,217
Granada Group PLC...................................................... 14,500 190,646
Halifax PLC *.......................................................... 6,374 82,002
NEXT PLC............................................................... 8,000 90,338
Norwich Union PLC *.................................................... 22,000 116,984
Rentokil Initial PLC................................................... 28,000 98,141
Stagecoach Holdings PLC................................................ 8,000 84,413
------------
1,151,487
------------
VENEZUELA - 0.2%
CIA Anomia Telefonos de Venezuela...................................... 400 17,250
------------
TOTAL COMMON STOCKS (COST $5,871,358).................................. 7,052,873
------------
OTHER - 0.1%
Latin American Discovery Fund (COST $6,970)............................ 500 9,875
------------
TOTAL INVESTMENTS (COST $5,878,328) - 94.9%............................ 7,062,748
OTHER ASSETS IN EXCESS OF LIABILITIES - 5.1%.......................... 379,984
------------
NET ASSETS - 100.0%.................................................... $7,442,732
------------
------------
</TABLE>
* Non-income producing security.
ADR - American Depository Receipt.
GDR - Global Depository Receipt.
See notes to financial statements.
28
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTMENT HIGH YIELD GROWTH & EMERGING INTERNATIONAL
GRADE BOND BOND BALANCED INCOME GROWTH GROWTH EQUITY
----------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities, at market
value (Note 2)..................... $3,315,837 $2,821,369 $5,683,068 $6,189,863 $9,568,037 $8,300,226 $7,062,748
Repurchase agreements, at market
value (Note 2)..................... - - - 317,000 - - -
Cash................................ 30,057 107,445 48,855 204 417,041 215,938 -
Cash denominated in foreign
currencies......................... - - - - - - 415,301
Receivables:
Dividends and interest............ 43,619 65,571 48,845 14,071 8,201 2,730 12,669
Due from Adviser.................. 36,939 36,472 42,852 43,281 45,178 31,503 37,819
Fund shares sold.................. 350 661 14,789 15,058 14,589 20,856 -
Investment securities sold........ - 12,000 100,658 415,233 355,972 1,063 39,895
Foreign taxes recoverable......... - - - - - - 5,723
Prepaid insurance expense........... 718 412 1,424 1,767 2,807 2,320 2,065
-----------------------------------------------------------------------------------------
TOTAL ASSETS.................... 3,427,520 3,043,930 5,940,491 6,996,477 10,411,825 8,574,636 7,576,220
-----------------------------------------------------------------------------------------
LIABILITIES:
PAYABLES:
Due to custodian.................. - - - - - - 2,219
Dividends......................... 43,500 48,000 - 17,500 5,000 - 10,000
Investment securities purchased... - 32,674 108,730 381,624 399,954 79,828 70,318
Fund shares redeemed.............. - - - - 2,238 2,669 304
Other payables and accrued
expenses......................... 39,010 37,340 42,704 48,615 52,200 48,003 50,647
-----------------------------------------------------------------------------------------
TOTAL LIABILITIES............... 82,510 118,014 151,434 447,739 459,392 130,500 133,488
-----------------------------------------------------------------------------------------
NET ASSETS.......................... $3,345,010 $2,925,916 $5,789,057 $6,548,738 $9,952,433 $8,444,136 $7,442,732
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
SOURCE OF NET ASSETS:
Capital stock, at par............... $346 $282 $496 $589 $756 $737 $620
Additional paid-in capital.......... 3,445,624 2,838,064 5,019,284 5,898,269 8,054,192 7,405,970 6,308,731
Net unrealized appreciation on:
Investment securities............. 41,831 99,585 418,214 160,134 1,553,917 1,001,122 1,184,420
Foreign currency related
transactions..................... - - - - - - 3,947
Undistributed net investment income
(loss)............................. 4,584 5,728 5,250 4,436 216 (20,393) 1,145
Accumulated net realized gain
(loss)............................. (147,375) (17,743) 345,813 485,310 343,352 56,700 (56,131)
-----------------------------------------------------------------------------------------
NET ASSETS.......................... $3,345,010 $2,925,916 $5,789,057 $6,548,738 $9,952,433 $8,444,136 $7,442,732
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Shares outstanding.................. 345,981 282,057 495,563 589,080 755,835 736,552 620,260
Net asset value per share........... $9.67 $10.37 $11.68 $11.12 $13.17 $11.46 $12.00
Cost of investments................. 3,274,006 2,721,784 5,264,854 6,029,729 8,014,120 7,299,104 5,878,328
Cost of repurchase agreements....... - - - 317,000 - - -
Cost of foreign currencies.......... - - - - - - 376,737
</TABLE>
See notes to financial statements.
29
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTMENT HIGH YIELD GROWTH & EMERGING INTERNATIONAL
GRADE BOND BOND BALANCED INCOME GROWTH GROWTH EQUITY
----------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME: (NOTE 2)
Interest.......................... $111,441 $130,445 $73,879 $17,218 $30,003 $16,871 $5,279
Dividends......................... - - 22,642 44,850 31,183 6,122 70,136
-----------------------------------------------------------------------------------------
111,441 130,445 96,521 62,068 61,186 22,993 75,415
Foreign taxes withheld.............. - - (135) (37) - (68) (9,621)
-----------------------------------------------------------------------------------------
Total investment income........... 111,441 130,445 96,386 62,031 61,186 22,925 65,794
-----------------------------------------------------------------------------------------
EXPENSES: (NOTE 3)
Investment advisory fees.......... 9,400 9,566 20,379 20,291 32,305 29,184 33,398
Administration fees............... 15,887 15,887 15,887 15,887 15,887 15,887 15,887
Accounting fees and expenses...... 12,637 12,637 12,637 12,637 12,637 12,637 22,411
Audit fees........................ 3,979 2,812 5,437 6,795 8,099 7,317 7,225
Reports to shareholders........... 2,728 2,728 2,728 2,728 2,728 2,728 2,728
Trustees' fees.................... 2,720 2,720 2,720 2,720 2,720 2,720 2,720
Custodian fees and expenses....... 2,409 2,605 10,671 6,138 10,317 9,292 8,098
Legal fees........................ 1,468 1,070 1,967 2,431 2,877 2,614 2,579
Cash management fees.............. 1,280 705 2,157 2,767 4,019 3,426 3,277
Insurance expense................. 1,240 1,240 1,240 1,240 1,240 1,240 1,240
Registration fees................. 464 339 676 789 1,139 975 958
Other expenses.................... 744 744 744 744 744 744 744
-----------------------------------------------------------------------------------------
Total expenses 54,956 53,053 77,243 75,167 94,712 88,764 101,265
Fees waivers and expense
reimbursements................... (41,639) (40,935) (51,768) (49,078) (51,639) (46,095) (54,518)
-----------------------------------------------------------------------------------------
Net expenses........................ 13,317 12,118 25,475 26,089 43,073 42,669 46,747
-----------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS)........ 98,124 118,327 70,911 35,942 18,113 (19,744) 19,047
NET REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities............. (2,494) 16,922 361,466 839,850 162,580 12,304 198,997
Foreign currency related
transactions..................... - - - - - - (182,246)
-----------------------------------------------------------------------------------------
Net realized gain (loss) on
investments.................... (2,494) 16,922 361,466 839,850 162,580 12,304 16,751
-----------------------------------------------------------------------------------------
Net change in unrealized
appreciation on:
Investment securities............. 3,523 33,149 173,816 (131,017) 865,228 946,046 664,500
Foreign currency related
transactions..................... - - - - - - 453
-----------------------------------------------------------------------------------------
Net change in unrealized
appreciation on investments.... 3,523 33,149 173,816 (131,017) 865,228 946,046 664,953
-----------------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS............. 1,029 50,071 535,282 708,833 1,027,808 958,350 681,704
-----------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................... $99,153 $168,398 $606,193 $744,775 $1,045,921 $938,606 $700,751
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
30
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTMENT GRADE BOND HIGH YIELD BOND BALANCED
------------------------ ------------------------ ------------------------
FOR THE FOR THE FOR THE
PERIOD PERIOD PERIOD
FOR THE SIX FEBRUARY 8, FOR THE SIX FEBRUARY 8, FOR THE SIX FEBRUARY 8,
MONTHS 1996* MONTHS 1996* MONTHS 1996*
ENDED JUNE THROUGH ENDED JUNE THROUGH ENDED JUNE THROUGH
30, 1997 DECEMBER 30, 1997 DECEMBER 30, 1997 DECEMBER
(UNAUDITED) 31, 1996 (UNAUDITED) 31, 1996 (UNAUDITED) 31, 1996
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income............... $98,124 $174,825 $118,327 $154,290 $70,911 $121,095
Net realized gain (loss) on
investments........................ (2,494) (144,881) 16,922 (34,665) 361,466 (15,653)
Net change in unrealized
appreciation on investments........ 3,523 38,308 33,149 66,436 173,816 244,398
----------- ----------- ----------- ----------- ----------- -----------
Net increase in net assets
resulting from operations........ 99,153 68,252 168,398 186,061 606,193 349,840
----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income............... (94,445) (173,920) (113,125) (153,764) (67,001) (119,755)
Net realized gain from investment
transactions....................... - - - - - -
----------- ----------- ----------- ----------- ----------- -----------
Total Distributions to
shareholders..................... (94,445) (173,920) (113,125) (153,764) (67,001) (119,755)
----------- ----------- ----------- ----------- ----------- -----------
SHARE TRANSACTIONS:
Proceeds from shares sold........... 161,911 3,108,990 553,925 2,170,394 616,616 4,388,096
Net asset value of shares issued
upon reinvestment of
distributions...................... 8,945 173,920 26,126 153,764 11,002 119,755
Payments for shares redeemed........ (5,915) (1,881) (48,771) (17,092) (11,707) (103,982)
----------- ----------- ----------- ----------- ----------- -----------
Net increase in net assets from
share transactions................. 164,941 3,281,029 531,280 2,307,066 615,911 4,403,869
----------- ----------- ----------- ----------- ----------- -----------
Net increase in net assets.......... 169,649 3,175,361 586,553 2,339,363 1,155,103 4,633,954
NET ASSETS
Beginning of period............... 3,175,361 - 2,339,363 - 4,633,954 -
----------- ----------- ----------- ----------- ----------- -----------
End of period (including
undistributed net investment
income).......................... $3,345,010 $3,175,361 $2,925,916 $2,339,363 $5,789,057 $4,633,954
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
Undistributed Net Investment
Income............................. $4,584 $905 $5,728 $526 $5,250 $1,340
----------- ----------- ----------- ----------- ----------- -----------
SHARE TRANSACTIONS
Shares sold....................... 17,086 310,759 54,441 216,429 56,614 437,742
Shares issued upon reinvestment... 930 18,004 2,537 15,104 985 11,351
Shares redeemed................... (611) (187) (4,780) (1,674) (1,083) (10,046)
----------- ----------- ----------- ----------- ----------- -----------
Net increase........................ 17,405 328,576 52,198 229,859 56,516 439,047
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
</TABLE>
* Commencement of operations.
See notes to financial statements.
31
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH & INCOME GROWTH EMERGING GROWTH
------------------------ ------------------------ ------------------------
FOR THE FOR THE FOR THE
FOR THE SIX PERIOD FOR THE SIX PERIOD FOR THE SIX PERIOD
MONTHS FEBRUARY 8, MONTHS FEBRUARY 8, MONTHS FEBRUARY 8,
ENDED 1996* ENDED 1996* ENDED 1996*
JUNE 30, THROUGH JUNE 30, THROUGH JUNE 30, THROUGH
1997 DECEMBER 1997 DECEMBER 1997 DECEMBER
(UNAUDITED) 31, 1996 (UNAUDITED) 31, 1996 (UNAUDITED) 31, 1996
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)........ $35,942 $44,403 $18,113 $115,746 ($19,744) ($649)
Net realized gain (loss) on
investments........................ 839,850 (354,540) 162,580 383,458 12,304 202,815
Net change in unrealized
appreciation on investments........ (131,017) 291,151 865,228 688,689 946,046 55,076
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net
assets resulting from
operations....................... 744,775 (18,986) 1,045,921 1,187,893 938,606 257,242
----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income............... (31,614) (44,295) (18,278) (115,365) - -
Net realized gain from investment
transactions....................... - - - (202,686) (727) (157,692)
----------- ----------- ----------- ----------- ----------- -----------
Total Distributions to
shareholders..................... (31,614) (44,295) (18,278) (318,051) (727) (157,692)
----------- ----------- ----------- ----------- ----------- -----------
SHARE TRANSACTIONS:
Proceeds from shares sold........... 464,815 5,542,511 1,418,050 6,934,982 1,469,232 7,090,949
Net asset value of shares issued
upon reinvestment of
distributions...................... 4,114 44,295 5,778 318,051 - 157,692
Payments for shares redeemed........ (15,612) (141,265) (313,050) (308,863) (697,364) (613,802)
----------- ----------- ----------- ----------- ----------- -----------
Net increase in net assets from
share transactions................. 453,317 5,445,541 1,110,778 6,944,170 771,868 6,634,839
----------- ----------- ----------- ----------- ----------- -----------
Net increase in net assets.......... 1,166,478 5,382,260 2,138,421 7,814,012 1,709,747 6,734,389
NET ASSETS
Beginning of period............... 5,382,260 - 7,814,012 - 6,734,389 -
----------- ----------- ----------- ----------- ----------- -----------
End of period (including
undistributed net investment
income).......................... $6,548,738 $5,382,260 $9,952,433 $7,814,012 $8,444,136 $6,734,389
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
Undistributed Net Investment Income
(Loss)............................. $4,436 $108 $216 $381 ($20,393) ($649)
----------- ----------- ----------- ----------- ----------- -----------
SHARE TRANSACTIONS
Shares sold....................... 45,535 554,436 115,559 662,842 141,373 705,476
Shares issued upon reinvestment... 385 4,483 477 27,045 - 15,490
Shares redeemed................... (1,502) (14,257) (24,623) (25,465) (66,591) (59,196)
----------- ----------- ----------- ----------- ----------- -----------
Net increase........................ 44,418 544,662 91,413 664,422 74,782 661,770
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
</TABLE>
* Commencement of operations.
See notes to financial statements.
32
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY
------------------------
FOR THE
FOR THE SIX PERIOD
MONTHS FEBRUARY 8,
ENDED 1996*
JUNE 30, THROUGH
1997 DECEMBER
(UNAUDITED) 31, 1996
----------- -----------
<S> <C> <C>
OPERATIONS:
Net investment income............... $19,047 $23,990
Net realized gain on investments.... 16,751 5,158
Net change in unrealized
appreciation on investments........ 664,953 523,414
----------- -----------
Net increase in net assets
resulting from operations........ 700,751 552,562
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income............... (18,504) (56,416)
Net realized gain from investment
transactions....................... - (45,012)
----------- -----------
Total Distributions to
shareholders..................... (18,504) (101,428)
----------- -----------
SHARE TRANSACTIONS:
Proceeds from shares sold........... 817,739 6,287,701
Net asset value of shares issued
upon reinvestment of
distributions...................... 3,504 101,428
Payments for shares redeemed........ (695,018) (206,003)
----------- -----------
Net increase in net assets from
share transactions................. 126,225 6,183,126
----------- -----------
Net increase in net assets.......... 808,472 6,634,260
NET ASSETS
Beginning of period............... 6,634,260 -
----------- -----------
End of period (including
undistributed net investment
income).......................... $7,442,732 $6,634,260
----------- -----------
----------- -----------
Undistributed Net Investment
Income............................. $1,145 $602
----------- -----------
SHARE TRANSACTIONS
Shares sold....................... 75,382 619,314
Shares issued upon reinvestment... 301 9,314
Shares redeemed................... (64,904) (19,147)
----------- -----------
Net increase........................ 10,779 609,481
----------- -----------
----------- -----------
</TABLE>
* Commencement of operations.
See notes to financial statements.
33
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR EACH SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INVESTMENT GRADE BOND HIGH YIELD BOND BALANCED
------------------------ ------------------------ ------------------------
FOR THE FOR THE FOR THE
FOR THE SIX PERIOD FOR THE SIX PERIOD FOR THE SIX PERIOD
MONTHS FEBRUARY 8, MONTHS FEBRUARY 8, MONTHS FEBRUARY 8,
ENDED 1996* ENDED 1996* ENDED 1996*
JUNE 30, THROUGH JUNE 30, THROUGH JUNE 30, THROUGH
1997 DECEMBER 1997 DECEMBER 1997 DECEMBER
(UNAUDITED) 31, 1996 (UNAUDITED) 31, 1996 (UNAUDITED) 31, 1996
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE PER SHARE, BEGINNING
OF PERIOD.......................... $9.66 $10.00 $10.18 $10.00 $10.55 $10.00
----------- ----------- ----------- ----------- ----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income............. 0.30 0.56 0.45 0.72 0.15 0.28
Net realized and unrealized gain
(loss)........................... - (0.34) 0.18 0.18 1.12 0.55
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations..................... 0.30 0.22 0.63 0.90 1.27 0.83
----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment
income........................... (0.29) (0.56) (0.44) (0.72) (0.14) (0.28)
Distributions from net realized
gains............................ - - - - - -
----------- ----------- ----------- ----------- ----------- -----------
Total distributions............. (0.29) (0.56) (0.44) (0.72) (0.14) (0.28)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net asset
value.............................. 0.01 (0.34) 0.19 0.18 1.13 0.55
Net asset value per share, end of
period............................. $9.67 $9.66 $10.37 $10.18 $11.68 $10.55
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
TOTAL RETURN (a) **................. 3.11% 2.20% 6.24% 8.96% 12.12% 8.30%
Net assets, end of period (000
omitted)........................... $3,345 $3,175 $2,926 $2,339 $5,789 $4,634
Ratio to average net assets of: ***
Expenses, net of fee waivers and
expense reimbursements........... 0.85% 0.85% 0.95% 0.73% 1.00% 1.00%
Expenses, prior to fee waivers and
expense reimbursements........... 3.51% 2.95% 4.15% 4.09% 3.03% 2.66%
Net investment income, net of fee
waivers and expense
reimbursements................... 6.26% 6.54% 9.26% 8.32% 2.78% 3.26%
Portfolio turnover rate **.......... 50% 421% 59% 165% 79% 241%
Average commission rate paid per
share traded....................... - - - - $0.0443 $0.0549
</TABLE>
* Commencement of operations.
** Not annualized.
*** Annualized.
(a) Total returns assume reinvestment of all dividends during the year and do
not reflect any separate account charges under variable annuity contracts.
Investment returns and principal values will fluctuate and shares, when
redeemed, may be worth more or less than the original cost.
See notes to financial statements.
34
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR EACH SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH & INCOME GROWTH EMERGING GROWTH
------------------------ ------------------------ ------------------------
FOR THE FOR THE FOR THE
FOR THE SIX PERIOD FOR THE SIX PERIOD FOR THE SIX PERIOD
MONTHS FEBRUARY 8, MONTHS FEBRUARY 8, MONTHS FEBRUARY 8,
ENDED 1996* ENDED 1996* ENDED 1996*
JUNE 30, THROUGH JUNE 30, THROUGH JUNE 30, THROUGH
1997 DECEMBER 1997 DECEMBER 1997 DECEMBER
(UNAUDITED) 31, 1996 (UNAUDITED) 31, 1996 (UNAUDITED) 31, 1996
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE PER SHARE, BEGINNING
OF PERIOD.......................... $9.88 $10.00 $11.76 $10.00 $10.18 $10.00
----------- ----------- ----------- ----------- ----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)...... 0.06 0.08 0.02 0.18 (0.03) -
Net realized and unrealized gain
(loss)........................... 1.24 (0.12) 1.41 2.08 1.31 0.42
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations..................... 1.30 (0.04) 1.43 2.26 1.28 0.42
----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment
income........................... (0.06) (0.08) (0.02) (0.18) - -
Distributions from net realized
gains............................ - - - (0.32) - (0.24)
----------- ----------- ----------- ----------- ----------- -----------
Total distributions............. (0.06) (0.08) (0.02) (0.50) - (0.24)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net asset
value.............................. 1.24 (0.12) 1.41 1.76 1.28 0.18
Net asset value per share, end of
period............................. $11.12 $9.88 $13.17 $11.76 $11.46 $10.18
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
TOTAL RETURN (a) **................. 13.14% (0.38%) 12.22% 22.59% 12.57% 4.24%
Net assets, end of period (000
omitted)........................... $6,549 $5,382 $9,952 $7,814 $8,444 $6,734
Ratio to average net assets of: ***
Expenses, net of fee waivers and
expense reimbursements........... 0.90% 0.90% 1.00% 1.00% 1.17% 0.65%
Expenses, prior to fee waivers and
expense reimbursements........... 2.59% 2.14% 2.20% 2.03% 2.43% 2.14%
Net investment income (loss), net
of fee waivers and expense
reimbursements................... 1.24% 0.95% 0.42% 2.04% (0.54%) (0.01%)
Portfolio turnover rate **.......... 209% 131% 141% 349% 73% 79%
Average commission rate paid per
share traded....................... $0.0599 $0.0594 $0.0680 $0.0383 $0.0549 $0.0470
</TABLE>
* Commencement of operations.
** Not annualized.
*** Annualized.
(a) Total returns assume reinvestment of all dividends during the year and do
not reflect any separate account charges under variable annuity contracts.
Investment returns and principal values will fluctuate and shares, when
redeemed, may be worth more or less than the original cost.
See notes to financial statements.
35
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR EACH SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY
------------------------
FOR THE
FOR THE SIX PERIOD
MONTHS FEBRUARY 8,
ENDED 1996*
JUNE 30, THROUGH
1997 DECEMBER
(UNAUDITED) 31, 1996
----------- -----------
<S> <C> <C>
NET ASSET VALUE PER SHARE, BEGINNING
OF PERIOD.......................... $10.89 $10.00
----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income............. 0.03 0.04
Net realized and unrealized
gain............................. 1.11 1.02
----------- -----------
Total from investment
operations..................... 1.14 1.06
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment
income........................... (0.03) (0.09)
Distributions from net realized
gains............................ - (0.08)
----------- -----------
Total distributions............. (0.03) (0.17)
----------- -----------
Net increase in net asset value..... 1.11 0.89
Net asset value per share, end of
period............................. $12.00 $10.89
----------- -----------
----------- -----------
TOTAL RETURN (a) **................. 10.48% 10.59%
Net assets, end of period (000
omitted)........................... $7,443 $6,634
Ratio to average net assets of: ***
Expenses, net of fee waivers and
expense reimbursements........... 1.40% 1.40%
Expenses, prior to fee waivers and
expense reimbursements........... 3.04% 2.59%
Net investment income, net of fee
waivers and expense
reimbursements................... 0.59% 0.48%
Portfolio turnover rate **.......... 70% 62%
Average commission rate paid per
share traded....................... $0.0320 $0.0323
</TABLE>
** Not annualized.
*** Annualized.
(a) Total returns assume reinvestment of all dividends during the year and do
not reflect any separate account charges under variable annuity contracts.
Investment returns and principal values will fluctuate and shares, when
redeemed, may be worth more or less than the original cost.
See notes to financial statements.
36
<PAGE>
ALEXANDER HAMILTON VARIABLE INSURANCE TRUST
-------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1 - ORGANIZATION AND BUSINESS:
The Alexander Hamilton Variable Insurance Trust (the "Trust") is an
open-end, management investment company established as a Massachusetts
business trust under a Declaration of Trust dated September 16, 1994. The
Trust consists of seven separate investment portfolios or funds (the
"Funds" or a "Fund"), each of which is, in effect, a separate mutual fund.
The Trust is intended to be a funding vehicle for variable annuity
contracts to be offered by a separate account of Alexander Hamilton Life
Insurance Company and affiliates.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:
(A) Net Asset Value - The net asset value per share of each Fund is
normally determined once daily as of the close of regular trading on the
New York Stock Exchange. The net asset value of each Fund is determined by
dividing the value of the Fund's securities and other assets, less all
liabilities by the number of shares of the Fund outstanding.
(B) Portfolio Valuation - The value of each Fund's securities and other
assets, except those of certain short-term debt securities held by the
Funds, is determined on the basis of their fair values. All short-term
debt securities having remaining maturities of sixty days or less held by
the Funds are valued by the amortized cost method, which is intended to
approximate fair value. Investments for which market quotations are not
readily available are valued at their fair value as determined in good
faith by, or under authority delegated by, the Trust's Board of Trustees.
Portfolio securities traded on more than one U.S. national securities
exchange or foreign securities exchange are valued at the last sale price
on each business day at the close of the exchange representing the
principal market for such securities. If no sale occurs, securities traded
on a U.S. exchange or NASDAQ are valued at the mean between the closing
bid and closing asked prices and securities traded on a foreign exchange
will be valued at the official bid price.
Debt securities with a remaining maturity of 61 days or more are valued on
the basis of dealer-supplied quotations or by a pricing service selected
by the sub-adviser and approved by the Board of Trustees of the Trust if
those prices are deemed by the sub-adviser to be representative of market
values at the close of business of the New York Stock Exchange.
Forward foreign currency exchange contracts are valued based upon
quotations supplied by dealers in such contracts.
(C) Tax Status - It is the policy of each Fund to qualify as a regulated
investment company under Subchapter M of the Internal Revenue Code, and to
make distributions of taxable income and net realized capital gains
sufficient to relieve it from all, or substantially all, Federal income
and excise taxes. For Federal income tax purposes, each Fund is treated as
a separate single entity for the purposes of determining such
qualification. For Federal income tax purposes, the Funds indicated below
have capital loss carryforwards as of December 31, 1996 which are
available to offset future capital gains if any. The carryovers do not
include net realized losses from November 1, 1996 through December 31,
1996, if any, which are treated for Federal income tax
37
<PAGE>
purposes as arising in fiscal 1997. Accordingly, no capital gains
distribution is expected to be paid to shareholders until net gains have
been realized in excess of such amounts.
<TABLE>
<CAPTION>
CAPITAL LOSS
CARRYFORWARD EXPIRATION
------------- -------------
<S> <C> <C>
Investment Grade Bond $ 142,000 2004
High Yield Bond 32,000 2004
Balanced 1,900 2004
Growth & Income 136,000 2004
</TABLE>
As a result of varying treatment for financial reporting and Federal
income tax purposes, the International Equity Fund reclassed $33,028 of
net realized gains from foreign currency related transactions from
accumulated net realized gains to undistributed net investment income.
(D) Security Transactions and Investment Income - Security transactions
are recorded on a trade date basis. Net realized gains and losses from
security transactions are recorded on the basis of identified cost.
Interest income, adjusted for amortization of premiums and, when
appropriate, discounts on investments, is recorded on the accrual basis
and dividend income is recorded on the ex-dividend date.
(E) Repurchase Agreements - The Funds' custodian or designated
sub-custodians, as the case may be under tri-party repurchase agreements,
takes possession of the collateral pledged for investments in repurchase
agreements. The underlying collateral is valued daily on a mark-to-market
basis to ensure that the value, including accrued interest, is at least
equal to the repurchase price. In the event of default of the obligation
to repurchase, the Funds have the right to liquidate the collateral and
apply the proceeds in satisfaction of the obligation. Under certain
circumstances, in the event of default or bankruptcy by the other party to
the agreement, realization and/or retention of the collateral may be
subject to legal proceedings.
(F) Foreign investments involve special risks not typically associated
with investing in securities of U.S. issuers. The risks include
revaluation of currencies and future adverse political and economic
developments. Moreover, securities of many foreign issuers and their
markets may be less liquid and their prices more volatile than those of
securities of comparable U.S. issuers. Funds investing in foreign
securities or currencies may be required to pay withholding or other taxes
to foreign governments.
(G) Foreign Currency Translations - The books and records of the
International Equity Fund are maintained in U.S. dollars. Foreign currency
transactions are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and
liabilities -- at the daily rates of exchange, and
(ii) purchases and sales of investment securities, dividends and
interest income and expenses -- at the rates of exchange
prevailing on the respective dates of such transactions.
Net realized gain (loss) on foreign currency related transactions includes
realized foreign currency gains and losses between trade and settlement
dates on securities transactions, gains and losses arising from sale of
foreign currency, realized foreign currency gains and losses from the sale
of investment securities and foreign currency gains and losses between the
ex-date and payment date on dividends and interest. Gains and losses from
translating foreign currency denominated assets and liabilities at
year-end exchange rates are included in net unrealized appreciation
(depreciation) on foreign currency related transactions.
(H) Forward Exchange Currency Contracts - The Funds may enter into forward
exchange currency contracts in order to hedge their exposure to changes in
foreign currency exchange rates on foreign portfolio holdings and to hedge
certain firm purchase and sale commitments
38
<PAGE>
denominated in foreign currencies. A forward exchange currency contract is
a commitment to purchase or sell a foreign currency at a future date at a
negotiated forward rate. The gain or loss arising from the difference
between the original contract and the closing of such contract is included
in net realized gain or loss from foreign currency transactions.
Fluctuations in the value of forward exchange currency contracts are
recorded for financial reporting purposes as net unrealized appreciation
(depreciation) on foreign currency related transactions by the Fund.
The Funds' custodian will place and maintain cash not available for
investment or securities in a separate account of the Fund having a value
equal to the aggregate amount of the Fund's commitments under forward
exhange currency contracts entered into with respect to position hedges.
Risks may arise from the potential inability of the counterparty to meet
the terms of a contract and from unanticipated movements in the value of a
foreign currency relative to the U.S. dollar.
At June 30, 1997, there were no forward exchange currency contracts
outstanding.
(I) Dollar Roll Transactions - The Funds may enter into mortgage dollar
roll transactions, with selected banks and broker-dealers pursuant to
which a Fund sells mortgage-backed securities for delivery in the current
month and simultaneously contracts to repurchase substantially similar
securities on a specified future date. In the event that the party with
whom the Fund contracts to replace substantially similar securities on a
future date fails to deliver such securities, the Fund may not be able to
obtain such securities at the price specified in the contract and thus may
not benefit from the price differential between the current sales price
and the repurchase price.
(J) Accounting Estimates - The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
(K) Expenses - Expenses directly attributable to a Fund are charged to
that Fund's operations; expenses which are applicable to all Funds are
allocated among them.
NOTE 3 - FEES AND RELATED PARTY TRANSACTIONS:
(A) Alexander Hamilton Capital Management, Inc. (the "Adviser"), is the
investment adviser of the Funds. The adviser is a wholly-owned subsidiary
of the Alexander Hamilton Life Insurance Company of America ("Alexander
Hamilton Life"), a Michigan stock life insurance company. Alexander
Hamilton Life is wholly-owned by Jefferson-Pilot Corporation.
For its services to the Trust, the Adviser receives a management fee,
payable monthly, based on the average daily net assets of the Fund at the
following annual rates:
<TABLE>
<CAPTION>
ADVISORY
FUND FEE
- --------------------------------------------------------------- ------------
<S> <C>
Investment Grade Bond 0.60%
High Yield Bond 0.75%
Balanced 0.80%
Growth & Income 0.70%
Growth 0.75%
Emerging Growth 0.80%
International Equity 1.00%
</TABLE>
39
<PAGE>
The Adviser has voluntarily agreed to waive fees and reimburse operating
expenses of the Trust or of any Fund to the extent the expenses exceed a
predetermined percentage of a Fund's average daily net assets. For the six
months ended June 30, 1997, the Adviser voluntarily waived fees and
reimbursed Fund expenses in the following amounts pursuant to these
voluntary limitations:
<TABLE>
<CAPTION>
FEE WAIVER AND EXPENSE
REIMBURSEMENT
-------------------------
<S> <C>
Investment Grade Bond $ 41,639
High Yield Bond 40,935
Balanced 51,768
Growth & Income 49,078
Growth 51,639
Emerging Growth 46,095
International Equity 54,518
</TABLE>
(B) Sub-Advisers:
J.P. Morgan Investment Management, Inc. ("Morgan") is the sub-adviser to
the Investment Grade Bond Fund and the Balanced Fund.
Massachusetts Financial Services Company ("MFS") is the sub-adviser to the
High Yield Bond Fund and the Emerging Growth Fund.
Warburg, Pincus Counsellors, Inc. ("Counsellors"), serves as the
sub-adviser to the Growth & Income Fund.
Strong Capital Management, Inc. ("Strong"), is the sub-adviser to the
Growth Fund.
Lombard Odier, the sub-adviser to the International Equity Fund, provides
investment advisory services with respect to the Fund's investments in
foreign securities, including recommending optimal geographic and equity
allocation.
As compensation for its services, the sub-advisers receive a monthly fee
from the Adviser based on the average daily net assets of each Fund at the
following annual rates:
<TABLE>
<CAPTION>
SUB-ADVISER SUB-ADVISORY FEE
- ---------------------------------------------------------- ---------------------
<S> <C>
J.P. Morgan (Investment Grade Bond Fund) 0.30%
J.P. Morgan (Balanced Fund)* 0.45%
MFS (High YIeld Bond Fund) 0.40%
MFS (Emerging GrowthFund) 0.40%
Warburg, Pincus Counsellors (Growth & Income Fund) 0.50%
Strong (Growth Fund)* 0.60%
Lombard Odier (International Equity Fund) 0.50%
</TABLE>
* At certain specified net asset levels, the sub-advisory fee paid by the
adviser for the Balanced Fund and the Growth Fund will decrease.
40
<PAGE>
NOTE 4 - SECURITIES TRANSACTIONS:
For the six months ended June 30, 1997, the cost of purchases and the
proceeds from sales of portfolio securities (excluding short-term
investments) were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C>
Investment Grade Bond $1,961,283 $1,534,363
High Yield Bond 1,896,721 1,414,738
Balanced 4,603,079 3,923,878
Growth & Income 11,379,019 10,992,702
Growth 12,321,675 10,396,574
Emerging Growth 6,081,836 5,055,254
International Equity 5,039,212 4,347,000
</TABLE>
At June 30, 1997, the cost of each Fund's securities for Federal income
tax purposes was substantially the same as for financial reporting
purposes.
The unrealized appreciation (depreciation) of the Funds' investments as of
June 30, 1997 were as follows:
<TABLE>
<CAPTION>
GROSS UNREALIZED GROSS UNREALIZED NET UNREALIZED
FUND APPRECIATION DEPRECIATION APPRECIATION
- -------------------------- ---------------- ---------------- --------------
<S> <C> <C> <C>
Investment Grade Bond $ 46,614 $ (4,783) $ 41,831
High Yield Bond 119,900 (20,315) 99,585
Balanced 440,550 (22,336) 418,214
Growth & Income 220,129 (59,995) 160,134
Growth 1,563,356 (9,439) 1,553,917
Emerging Growth 1,211,989 (210,867) 1,001,122
International Equity 1,244,301 (59,881) 1,184,420
</TABLE>
41
<PAGE>
NOTE 5 - INDUSTRY CONCENTRATIONS:
At June 30, 1997, the International Equity Fund had the following
concentrations by industry (as a percentage of total investments):
<TABLE>
<CAPTION>
% OF TOTAL
U.S. VALUE INVESTMENTS
------------ ------------
<S> <C> <C>
Banking $1,464,392 20.7%
Retail 686,322 9.7%
Telecommunications & Equipment 566,603 8.0%
Pharmaceuticals 418,145 5.9%
Automotive & Trucking 365,178 5.2%
Oil & Gas 358,394 5.1%
Electronics 342,908 4.9%
Real Estate Development 278,679 4.0%
Food & Beverage 254,127 3.6%
Financial Services 225,144 3.2%
Printing & Publishing 210,079 3.0%
Computer Systems 199,511 2.8%
Entertainment & Leisure 190,646 2.7%
Utilities 189,117 2.7%
Electrical Equipment 179,245 2.5%
Commercial Services 174,258 2.5%
Cosmetics & Toiletries 170,177 2.4%
Insurance 116,984 1.7%
Aerospace & Defense 111,217 1.6%
Conglomerates 98,140 1.4%
Transportation Services 84,413 1.2%
Office Equipment 81,797 1.2%
Chemicals 79,699 1.1%
Machinery & Equipment 72,533 1.0%
Wholesale Distribution 58,114 0.8%
Diversified Holding Companies 45,775 0.6%
Manufacturing 31,104 0.4%
Metals 10,047 0.1%
------------ ------------
$7,062,748 100.0%
------------ ------------
------------ ------------
</TABLE>
42
<PAGE>
ALLEGIANCE-REGISTRATION MARK-
VARIABLE ANNUITY
ONE OF THE ALLEGIANCE FAMILY OF VARIABLE PRODUCTS
ABOUT ALEXANDER HAMILTON LIFE
SINCE BEGINNING OPERATIONS IN 1964, THE DRIVING FORCE BEHIND ALEXANDER HAMILTON
LIFE'S SUCCESS HAS BEEN AN UNCOMPROMISING COMMITMENT TO FINANCIAL STRENGTH AND
STABILITY. THIS COMMITMENT HAS EARNED THE TRUST AND CONFIDENCE OF OUR
POLICYHOLDERS WHO LOOK TO HAMILTON FOR QUALITY INSURANCE AND FINANCIAL SERVICES
PRODUCTS.
ALEXANDER HAMILTON LIFE IS RATED A++ (SUPERIOR) BY A.M. BEST & COMPANY AND HAS
EARNED THE HIGHEST AVAILABLE AAA CLAIMS-PAYING RATING BY STANDARD & POOR'S AND
DUFF & PHELPS INDEPENDENT RATING SERVICES. ALEXANDER HAMILTON LIFE IS A
SUBSIDIARY OF JEFFERSON-PILOT CORPORATION, A HOLDING COMPANY BASED IN
GREENSBORO, NORTH CAROLINA.
ALEXANDER HAMILTON
----------------------------
A LIFE INSURANCE SUBSIDIARY OF JEFFERSON-PILOT CORPORATION
32991 HAMILTON COURT - FARMINGTON HILLS, MI 48334-3358
ALLEGIANCE VARIABLE ANNUITY IS ISSUED BY ALEXANDER HAMILTON LIFE AND DISTRIBUTED
BY JEFFERSON-PILOT INVESTOR SERVICES, INC.
MEMBER, NATIONAL ASSOCIATION OF SECURITIES DEALERS
27426
