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SECURITIES AND EXCHANGE COMMISSION --------------------------
WASHINGTON, D.C. 20549 OMB Approval
FORM N-17f-2 --------------------------
OMB Number: 3235-0360
Certificate of Accounting of Securities and Similar Expires: July 31, 1994
Investment in the Custody of Estimated average burden
Management Investment Companies hours per response... 0.05
Pursuant to Rule 17f-2 [17 CFR 270.17f-2]
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1. Investment Company Act File Number: Date examination completed
811-8644 July 31, 1998
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2. State identification Number: N/A
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AL AK AZ AR CA CO
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CT DE DC FL GA HI
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ID IL IN IA KS KY
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LA ME MD MA MI MN
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MS MO MT NE NV NH
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NJ NM NY NC ND OH
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OK OR PA RI SC SD
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TN TX UT VT VA WA
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WV WI WY PUERTO RICO
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Other (specify):
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3. Exact name of investment company as specified in representation statement:
Variable Insurance Funds
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4. Address of principal executive office (number, street, city, state, zip code):
3435 Stelzer Road, Columbus, Ohio 43219
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PRICEWATERHOUSECOOPERS [LOGO]
INDEPENDENT ACCOUNTANT'S REPORT
To the Trustees of the AmSouth Equity Income VIF
We have examined management's assertion about the AmSouth Equity Income VIF's
(the Fund's) compliance with the requirements of subsections (b) and (c) of Rule
17f-2 under the Investment Company Act of 1940 as of July 31, 1998, included in
the accompanying Management Statement Regarding Compliance With Certain
Provisions of the Investment Company Act of 1940. Management is responsible for
the Fund's compliance with those requirements. Our responsibility is to express
an opinion on management's assertion about the Fund's compliance based on our
examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly, included
examining, on a test basis, evidence about the Fund's compliance with those
requirements and performing such other procedures as we considered necessary in
the circumstances. Included among our procedures were the following tests
performed as of July 31, 1998, with respect to securities of the Fund:
o Conformation, or other procedures we considered necessary, of
all securities held in book entry form by the Depository Trust
Company;
o Conformation, or other procedures as we considered necessary,
of all mutual fund investments with transfer agents;
o Reconciliation of all such securities to the books and records
of the Fund and AmSouth Bank.
We believe that our examination provides a reasonable basis for our opinion. Our
examination does not provide a legal determination on the Fund's compliance with
specified requirements.
In our opinion, management's assertion that the Fund were in compliance with the
requirements of subsections (b) and (c) of Rule 17f-2 of the Investment Company
Act of 1940 as of July 31, 1998, with respect to securities reflected in the
investment accounts of the Fund is fairly stated, in all material respects.
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This report is intended solely for the information and use of management of the
Fund and the Securities and Exchange Commission and should not be used for any
other purpose.
/s/ PricewaterhouseCoopers LLP
Columbus, Ohio
September 18, 1998
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MANAGEMENT STATEMENT REGARDING COMPLIANCE WITH CERTAIN PROVISIONS
OF THE INVESTMENT COMPANY ACT OF 1940
We, as members of management of the AmSouth Equity Income VIF are responsible
for complying with the requirements of Rule 17f-2, "Custody of Investments by
Registered Management Investment Companies" of the Investment Company of 1940.
We are also responsible for establishing and maintaining an effective internal
control structure over compliance with the requirements of Rule 17f-2
requirements. We have performed an evaluation of the AmSouth Equity Income VIF's
compliance with the requirements of Rule 17f-2 as of July 31, 1998. Based on
this evaluation, we assert that the AmSouth Equity Income VIF was in compliance
with the provisions of subsection (b) and (c) of Rule 17f-2 of the Investment
Company Act of 1940 as of July 31, 1998 with respect to securities reflected in
the investment account of the AmSouth Equity Income VIF.
AmSouth Equity Income VIF
