<PAGE> 1
AMERICAN GENERAL ANNUITY INSURANCE COMPANY
ELITEPLUS BONUS VARIABLE ANNUITY
TO ELITEPLUS CONTRACT OWNERS:
Thank you for choosing the American General Annuity ElitePlus Bonus
Variable Annuity. ElitePlus offers a number of excellent features and includes a
variety of investment options managed by a group of highly-respected
professional money managers. Accordingly, ElitePlus gives you the ability to
tailor a program suited for your long-term financial plans, yet provides you the
flexibility to change investment options later, should your requirements change.
The enclosed Semi-Annual Report for AGA Series Trust contains detailed
financial information to help you understand your annuity contract's past
performance.
We look forward to serving you in the future. Please contact us if you have
any questions concerning your account. Our toll-free telephone number is (800)
424-4990.
<PAGE> 2
AGA SERIES TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1998
The information in this report is intended for informational purposes. This
report is not authorized for distribution to prospective investors unless
preceded or accompanied by current prospectuses for AGA Series Trust and AGA
Separate Account A. The prospectuses contain important information about
American General Annuity Insurance Company and the ElitePlus Bonus Variable
Annuity, including charges and expenses. Please read the prospectuses carefully
before investing.
<PAGE> 3
MANAGEMENT'S DISCUSSION AND ANALYSIS
The following discussion of the first half, 1998 performance of the
portfolios within AGA Series Trust supplements the financial statements and
related notes found elsewhere in this report.
On February 25, 1998, Western National Corporation became a wholly-owned
indirect subsidiary of American General Corporation. Subsequently, WNL Series
Trust changed its name to AGA Series Trust, WNL Separate Account A changed its
name to AGA Separate Account A, and Western National Life Insurance Company
changed its name to American General Annuity Insurance Company.
The total returns reported are net of portfolio operating expenses but do
not reflect any insurance or administrative charges that apply to the separate
account. Furthermore, the portfolios' performances reflect the absorption of
certain fund expenses by American General Annuity Insurance Company. Had these
expenses not been absorbed, the total returns would have been lower. Performance
data represent past performance and neither guarantee nor predict future
results. The investment return and accumulation value of the portfolios will
fluctuate, and the redemption value may be higher or lower than an investor's
original cost.
As with all money market funds, an investment in the State Street Global
Advisors Money Market Portfolio is neither insured nor guaranteed by the U.S.
Government. Although the Portfolio strives to maintain a stable net asset value
of $1.00 per share, there can be no assurance that this objective will be met.
CREDIT SUISSE GROWTH AND INCOME PORTFOLIO
On May 1, 1998, the BEA Growth and Income Portfolio changed its name to the
Credit Suisse Growth and Income Portfolio. The change is a change of name only
(BEA is a subsidiary of Credit Suisse); Portfolio objectives, policies and
management remain the same.
The total return for the first half of 1998 was 10.4%, equaling its
benchmark, which is a 50/50 composite of the S&P 500 and the Lehman Aggregate
Bond Index. Additionally, the twelve-month return of 21.0% was handily above the
16.2% of the composite and, in fact, nearly equaled the S&P 500. The
inception-to-date return of 20.1% exceeded its mark by 2.2%. The equity manager
noted that in recent quarters the performance of the largest 10 stocks in the
S&P 500 continued to be responsible for a disproportionate share of the overall
market's gain. Notwithstanding that large-cap bias, the manager continued to
concentrate holdings in mid-cap companies because he believes, based on long
experience, that maintaining a diversified portfolio of mid-cap equities will
provide better returns in the long run. During the first half he reduced
holdings in the health care, financial, energy and technology sectors. The
manager believes that three factors have driven the current bull market:
increased corporate earnings, rising dividends, and improved P/E ratios. He does
not believe that these factors can continue to produce favorable results, so he
is becoming more cautious in his stock selection and at mid year commenced
changing the Portfolio mix from 55% equities/45% debt securities back to an
equally balanced position.
On the fixed income side the manager maintained a slightly long average
maturity, increased mortgage holdings and slightly increased investment in
lower-quality securities, all in an effort to attain yield. The Portfolio
continues to be in part structured with a barbell credit spread, containing high
quality credits for safety and selected lower-quality credits for yield. With
the current flat yield curve, it is difficult to achieve much more than an
average market return. In the international sector the manager has had success
with Polish and Argentine debt, but is wary of other emerging markets. The
Portfolio's cash position has risen to about 6%, and although it is earmarked
for investment in equities, the manager is not comfortable spending it in the
current market.
CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO
In the first half of 1998 the International Equity Portfolio's total return
was 6.2%, significantly worse than the 17.6% return of its benchmark, the Morgan
Stanley Composite Index -- Europe, Australia & Far East (EAFE). Similarly, its
twelve-month return was significantly below the mark.
1
<PAGE> 4
The poor performance in recent quarters has nearly offset earlier superior
performance, so that the Portfolio's inception-to-date return of 11.5% is now
much nearer, but still above the EAFE benchmark's 9.7%. The manager attributes
the current disappointing performance to the same factors that produced the
earlier success; i.e., overweight investment in emerging markets, principally
Eastern and Central Europe.
The performance in the first half was driven by Portfolio's overweight
position in the poor-performing emerging markets (outside of Asia - the manager
anticipated the problems there and was largely out of that market before the
crash). The problem was compounded by the corresponding underweight in core
Europe, the strongest of the world's markets. The manager erred early in the
year when he concluded that Asia's problems would not depress emerging markets
elsewhere. He stuck to his basic strategy of overweighting investment in
emerging markets because he believed that is where his expertise added the most
value. Although the individual stocks owned did well within their respective
markets, the flight of capital out of emerging markets everywhere was disastrous
for the Portfolio. In short, the manager severely underestimated the systematic
risk of straying so far from the EAFE weightings.
In order to deal with the problems, the Portfolio has been conservatively
restructured with weightings that are much closer to the EAFE. It is overweight
in Continental Western Europe, and underweight in the U.K. (the manager
anticipates weakness there). It is also underweight in Japan, but by a smaller
margin. The manager is not optimistic about Japan, but believes it dangerous to
be so far off the benchmark because he expects that market to move up very
rapidly when it does turn. Finally, emerging markets still are overweighted, but
by a much smaller amount, e.g., emerging Europe constitutes about 10% of total
European investment versus nearly 33% early in the year. Within emerging
markets, the weighting in Latin America (especially Brazil) has been increased
and the weighting in Eastern Europe (especially Russia) has been reduced. The
manager intends to stick much closer to the EAFE weightings in the future, and
so expects future performance to more closely parallel the benchmark.
ELITEVALUE PORTFOLIO
On May 1, 1998, the EliteValue Asset Allocation Portfolio changed its name
to the EliteValue Portfolio. The change is a change of name only; Portfolio
objectives, policies and management remain the same.
Although the EliteValue Portfolio objectives and policies permit the
manager to invest in all asset categories, the manager has consistently kept it
almost entirely invested in equities, a strategy that has generally proved very
successful. The Portfolio consists of a relatively small number of stocks of
companies the manager believes will show superior performance, and the turnover
rate is very low.
The Portfolio's first-half total return of 11.5% beat its benchmark, the
Lipper Benchmark -- Flexible Portfolio Funds Index, which registered 10.7%. The
twelve-month return was slightly above the mark, and the inception-to-date
return of 24.0% substantially beat the index's 17.3%. The recent performance
suffered relative to the S&P 500 because of the relatively strong performance of
the very-largest-capitalized stocks. The manager continues to invest in a
limited number of businesses that he feels are inherently worth more than their
asking prices and that will generate excess cash flow that will enhance
long-term value for the shareholders; i.e., the focus is on individual companies
prospective long-term potential rather than on stock market fluctuations.
Among the Portfolio's largest holdings, McDonalds and Freddie Mac had great
success. Major disappointments were Du Pont, and Boeing. Du Pont announced poor
results in the second quarter linked in part to problems in Asia. Boeing
continues to have difficulty dealing with its problems, but the manager believes
that in the long run a well-managed Boeing would be a very strong performer and
good investment. The manager sold Lockheed Martin and Monsanto and bought ITT
and Excel. The ITT purchase was made because of an announced restructuring under
which ITT will divest some low margin businesses (e.g., auto parts) and use the
proceeds to buy in up to 25% of its stock.
The manager is disappointed in his current performance. Nevertheless, he
still hopes to attain his goal of a 12-15% return for 1998. He continues to hold
a substantial cash position, as he is still wary of the market and hasn't found
any new names that he feels warrant heavy investment.
2
<PAGE> 5
SALOMON U.S. GOVERNMENT SECURITIES PORTFOLIO
The first-half total return was 3.5%, essentially equaling the benchmark,
One-to-Ten Year Treasury Index. Additionally, the twelve-month and the
inception-to-date returns are very close to the benchmark.
In the current flat and relatively stable market-rate environment, it is
difficult for a government bond portfolio to significantly outperform its index.
Consequently, the manager continued to overweight the Portfolio in mortgage
securities in order to capture yield. Because of the uncertainty as to which
direction rates might move next, the Portfolio maturity is being maintained at
the benchmark duration. The maturity structure is barbelled, with longer
mortgages (for yield) balanced by shorter Governments (there is little reward
for longer maturity). The manager expects the economy to slow slightly in the
latter part of 1998, but remain strong. He also expects inflation to stay under
control. The turmoil in Asian markets has had less effect on the market than he
expected. In short, the manager's outlook is for a continued stable rate
environment; so he is staying on the benchmark and expects future returns to
approximately equal the market's.
STATE STREET GLOBAL ADVISORS GROWTH EQUITY PORTFOLIO
On May 1, 1998, the Global Advisors Growth Equity Portfolio changed its
name to the State Street Global Advisors Growth Equity Portfolio. The change is
a change of name only; Portfolio objectives, policies and management remain the
same.
The Growth Equity Portfolio is an enhanced index fund, that is, one that
tracks the S&P 500 by industry classification, but attempts to pick the best
individual stocks within each industry. The Portfolio's first-half total return
of 15.8% slightly lagged its benchmark, the Standard and Poor's 500 Stock Index,
but its twelve-month return of 30.3% handily beat the benchmark's 21.9%. The
Portfolio has suffered recently from the fact that most of the positive
benchmark performance resulted from strong performances by the very largest
"mega-cap" stocks. The mid-cap sector, where most of the Portfolio's assets are
concentrated, has been left behind. Global Advisors continues to try to improve
performance by enhancing its computer model. Specifically, it is has revised its
industry classifications, and is now linking industries that show similar
characteristics into 24 "clusters". It has also refined its method of following
"lead analysts" for individual stocks and for entire industries. The management
team believes that the modeling process must be constantly enhanced in order to
stay ahead of the competition. That is, if all players in the market have the
same analytical capacity, nobody can have an advantage.
STATE STREET GLOBAL ADVISORS MONEY MARKET PORTFOLIO
On May 1, 1998, the Global Advisors Money Market Portfolio changed its name
to the State Street Global Advisors Money Market Portfolio. The change is a
change of name only; Portfolio objectives, policies and management remain the
same.
The Money Market Portfolio's total return of 2.7% for the first half of
1998 slightly exceeded its benchmark, the 91-Day Treasury Auction Average Index,
as it has generally done in recent quarters. The Portfolio's small size and
volatility (most purchases initially pass thorough the Portfolio during the
"policy free look" period) make it difficult for the manager to make economic
trades while maintaining sufficient diversity and liquidity.
VAN KAMPEN AMERICAN CAPITAL EMERGING GROWTH PORTFOLIO
The Emerging Growth Portfolio's first-half total return of 22.0%
significantly exceeded the Lipper Mid-Cap Funds benchmark (and the S&P 500). The
manager stated that the Portfolio's stock selection model emphasizes stocks that
show good growth in earnings and stocks that show favorable revisions of
earnings forecasts, and that during the first half the market rewarded such
stocks. Additionally, good sector selection contributed to the favorable
performance. Media stocks, Internet stocks (e.g., AOL), credit card stocks, and
retail stocks all exhibited strong performances. During the period holdings in
the poor-performing energy sector were reduced and the proceeds invested
principally in the retail sector. Nevertheless the energy sector performance did
adversely affect the Portfolio return. There were no particular surprises among
Portfolio
3
<PAGE> 6
holdings; that is, the Portfolio avoided any disasters. The manager believes
that his long-term strategy of staying fully invested in stocks with positive
fundamentals paid off, and will continue to do so. He continues to believe that
the Portfolio is in a good position to benefit in the future from the relative
strengthening of small and mid-cap issues relative to very large-cap issues that
have led the market in recent quarters.
YEAR 2000 RISKS
Like insurance companies, financial and business organizations around the
world, the Series Trust Portfolios could be adversely affected if the computer
systems used by the Series Trust, other service providers and entities with
computer systems that are linked to the Series Trust's records do not properly
process and calculate date-related information and data from and after January
1, 2000. This is commonly known as the "Year 2000 Issue." The Series Trust is
taking steps that it believes are reasonably designed to address the Year 2000
Issue with respect to the computer systems that it uses and to obtain
satisfactory assurance that comparable steps are being taken by each of the
Series Trust's major service providers. However, there can be no assurance that
these steps will be sufficient to avoid any adverse impact on the Series Trust
Portfolios.
PERFORMANCE GRAPHS
The following graphs illustrate the performance of $10,000 invested in each
of the portfolios in comparison to their respective benchmark returns. The
charts assume investment at each portfolio's inception date and track
performance through June 30, 1998.
4
<PAGE> 7
[CREDIT SUISSE GROWTH AND INCOME PORTFOLIO GRAPH]
<TABLE>
<CAPTION>
- ------------------------------------------------------
Average Annual Total Return *
- ------------------------------------------------------
One Since
Year Inception
- ------------------------------------------------------
<S> <C> <C>
Portfolio 21.05 20.06
50-50 S&P 500/Lehm 16.23 17.84
- ------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------
June 30, 1998 Fund Facts
- ------------------------------------------------------
<S> <C>
Date of Inception 10/20/95
Net Assets $11,297,000
Net Asset Value per Share $ 13.90
Manager BEA Associates
- ------------------------------------------------------
</TABLE>
* The portfolio total returns reported are net of portfolio operating expenses
but do not reflect any insurance or administrative charges that apply to the
separate account. Furthermore, the portfolio's performance reflects the
absorption of certain fund expenses by American General Annuity Insurance
Company. Had these expenses not been absorbed, the total returns would have
been lower. Performance data represent past performance and neither guarantee
nor predict future results. The investment return and accumulation value of
the portfolio will fluctuate, and the redemption value may be higher or lower
than an investor's original cost. The S&P 500/Lehman Aggregate does not
include any expenses.
5
<PAGE> 8
[CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO GRAPH]
<TABLE>
<CAPTION>
- -------------------------------------------------------
Average Annual Total Return *
- -------------------------------------------------------
One Since
Year Inception
- -------------------------------------------------------
<S> <C> <C>
Portfolio (4.89) 11.49
Morgan Stanley -- EAFE 4.35 9.73
- -------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------
June 30, 1998 Fund Facts
- ------------------------------------------------------
<S> <C>
Date of Inception 10/20/95
Net Assets $5,576,000
Net Asset Value per Share $ 10.95
Manager Credit Suisse Asset
Management Ltd.
- ------------------------------------------------------
</TABLE>
* The portfolio total returns reported are net of portfolio operating expenses
but do not reflect any insurance or administrative charges that apply to the
separate account. Furthermore, the portfolio's performance reflects the
absorption of certain fund expenses by American General Annuity Insurance
Company. Had these expenses not been absorbed, the total returns would have
been lower. Performance data represent past performance and neither guarantee
nor predict future results. The investment return and accumulation value of
the portfolio will fluctuate, and the redemption value may be higher or lower
than an investor's original cost. The Morgan Stanley Composite Index -- EAFE
does not include any expenses.
6
<PAGE> 9
[ELITEVALUE PORTFOLIO GRAPH]
<TABLE>
<CAPTION>
- ------------------------------------------------------
Average Annual Total Return *
- ------------------------------------------------------
One Since
Year Inception
- ------------------------------------------------------
<S> <C> <C>
Portfolio 20.03 24.00
Lipper Flex 19.30 17.32
- ------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------
June 30, 1998 Fund Facts
- ------------------------------------------------------
<S> <C>
Date of Inception 1/2/96
Net Assets $15,105,000
Net Asset Value per Share $ 15.88
Manager OpCap Advisors
- ------------------------------------------------------
</TABLE>
* The portfolio total returns reported are net of portfolio operating expenses
but do not reflect any insurance or administrative charges that apply to the
separate account. Furthermore, the portfolio's performance reflects the
absorption of certain fund expenses by American General Annuity Insurance
Company. Had these expenses not been absorbed, the total returns would have
been lower. Performance data represent past performance and neither guarantee
nor predict future results. The investment return and accumulation value of
the portfolio will fluctuate, and the redemption value may be higher or lower
than an investor's original cost. The Lipper Benchmark/Flexible Portfolio
Funds does not include any expenses.
7
<PAGE> 10
[SALOMON BROTHERS U.S. GOVERNMENT SECURITIES PORTFOLIO GRAPH]
<TABLE>
<CAPTION>
- -------------------------------------------------------
Average Annual Total Return *
- -------------------------------------------------------
One Since
Year Inception
- -------------------------------------------------------
<S> <C> <C>
Portfolio 9.07 6.59
Treasury 1 to 10 Yr. Ind 8.00 6.94
- -------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------
June 30, 1998 Fund Facts
- ------------------------------------------------------
<S> <C>
Date of Inception 2/6/96
Net Assets $5,137,000
Net Asset Value per Share $ 10.13
Manager Salomon Brothers
Asset Management
- ------------------------------------------------------
</TABLE>
* The portfolio total returns reported are net of portfolio operating expenses
but do not reflect any insurance or administrative charges that apply to the
separate account. Furthermore, the portfolio's performance reflects the
absorption of certain fund expenses by American General Annuity Insurance
Company. Had these expenses not been absorbed, the total returns would have
been lower. Performance data represent past performance and neither guarantee
nor predict future results. The investment return and accumulation value of
the portfolio will fluctuate, and the redemption value may be higher or lower
than an investor's original cost. The Treasury 1 to 10 Year Index does not
include any expenses.
8
<PAGE> 11
[STATE STREET GLOBAL ADVISORS GROWTH EQUITY PORTFOLIO GRAPH]
<TABLE>
<CAPTION>
- ------------------------------------------------------
Average Annual Total Return *
- ------------------------------------------------------
One Since
Year Inception
- ------------------------------------------------------
<S> <C> <C>
Portfolio 30.36 27.27
S&P 500 Stock Index 21.93 28.11
- ------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------
June 30, 1998 Fund Facts
- ------------------------------------------------------
<S> <C>
Date of Inception 10/20/95
Net Assets $10,909,000
Net Asset Value per Share $ 16.22
Manager State Street
Global Advisors
- ------------------------------------------------------
</TABLE>
* The portfolio total returns reported are net of portfolio operating expenses
but do not reflect any insurance or administrative charges that apply to the
separate account. Furthermore, the portfolio's performance reflects the
absorption of certain fund expenses by American General Annuity Insurance
Company. Had these expenses not been absorbed, the total returns would have
been lower. Performance data represent past performance and neither guarantee
nor predict future results. The investment return and accumulation value of
the portfolio will fluctuate, and the redemption value may be higher or lower
than an investor's original cost. The Standard & Poor's 500/Stock Index does
not include any expenses.
9
<PAGE> 12
[STATE STREET GLOBAL ADVISORS MONEY MARKET PORTFOLIO GRAPH]
<TABLE>
<CAPTION>
- ------------------------------------------------------
Average Annual Total Return *
- ------------------------------------------------------
One Since
Year Inception
- ------------------------------------------------------
<S> <C> <C>
Portfolio 5.50 5.36
91-Day Treasury Index 5.29 5.27
- ------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------
June 30, 1998 Fund Facts
- ------------------------------------------------------
<S> <C>
Date of Inception 10/10/95
Net Assets $4,200,000
Net Asset Value per Share $ 1.00
Manager State Street
Global Advisors
- ------------------------------------------------------
</TABLE>
* The portfolio total returns reported are net of portfolio operating expenses
but do not reflect any insurance or administrative charges that apply to the
separate account. Furthermore, the portfolio's performance reflects the
absorption of certain fund expenses by American General Annuity Insurance
Company. Had these expenses not been absorbed, the total returns would have
been lower. Performance data represent past performance and neither guarantee
nor predict future results. The investment return and accumulation value of
the portfolio will fluctuate, and the redemption value may be higher or lower
than an investor's original cost. The 91-Day Treasury Index does not include
any expenses.
As with all money market funds, an investment in the State Street Global
Advisors Money Market Portfolio is neither insured nor guaranteed by the U.S.
Government. Although the Portfolio strives to maintain a stable net asset
value of $1.00 per share, there can be no assurance that this objective will
be met.
10
<PAGE> 13
[VAN KAMPEN AMERICAN CAPITAL EMERGING GROWTH PORTFOLIO GRAPH]
<TABLE>
<CAPTION>
- ------------------------------------------------------
Average Annual Total Return *
- ------------------------------------------------------
One Since
Year Inception
- ------------------------------------------------------
<S> <C> <C>
Portfolio 35.16 25.14
Lipper Mid-Cap 21.95 18.73
- ------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------
June 30, 1998 Fund Facts
- ------------------------------------------------------
<S> <C>
Date of Inception 1/2/96
Net Assets $8,103,000
Net Asset Value per Share $ 16.92
Manager Van Kampen American
Capital Asset Management, Inc.
- ------------------------------------------------------
</TABLE>
* The portfolio total returns reported are net of portfolio operating expenses
but do not reflect any insurance or administrative charges that apply to the
separate account. Furthermore, the portfolio's performance reflects the
absorption of certain fund expenses by American General Annuity Insurance
Company. Had these expenses not been absorbed, the total returns would have
been lower. Performance data represent past performance and neither guarantee
nor predict future results. The investment return and accumulation value of
the portfolio will fluctuate, and the redemption value may be higher or lower
than an investor's original cost. The Lipper Benchmark/Mid-Cap Fund does not
include any expenses.
11
<PAGE> 14
AGA SERIES TRUST
FINANCIAL SCHEDULES
JUNE 30, 1998
F-1
<PAGE> 15
AGA SERIES TRUST
CREDIT SUISSE GROWTH & INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ ----------
<S> <C> <C>
COMMON STOCKS -- 51.0%
AEROSPACE -- 1.6%
Coltec Industries Incorporated(a)...................... 4,000 $ 79,500
Lockheed Martin Corporation............................ 1,000 105,875
----------
185,375
----------
AIR TRAVEL -- 1.5%
AMR Corporation(a)..................................... 2,000 166,500
----------
BROADCASTING -- 3.0%
At Home Corporation(a)................................. 3,000 141,937
MediaOne Group Incorporated............................ 4,500 197,719
----------
339,656
----------
BUSINESS SERVICES -- 2.5%
Automatic Data Processing Incorporated................. 3,000 218,625
GTECH Holdings Corporation(a).......................... 2,000 67,375
----------
286,000
----------
CHEMICALS -- 1.0%
Monsanto Company....................................... 2,000 111,750
----------
COMPUTERS & BUSINESS EQUIPMENT -- 2.7%
DST Systems Incorporated(a)............................ 2,500 140,000
Symbol Technologies Incorporated....................... 4,500 169,875
----------
309,875
----------
CONSTRUCTION MATERIALS -- 0.7%
Sherwin-Williams Company............................... 2,500 82,813
----------
CONTAINERS & GLASS -- 1.2%
Owens Illinois Incorporated(a)......................... 3,000 134,250
----------
DRUGS & HEALTH CARE -- 4.2%
Barr Laboratories Incorporated(a)...................... 2,500 99,375
Pfizer Incorporated.................................... 1,000 108,687
SmithKline Beecham PLC ADR............................. 1,600 96,800
Warner-Lambert Company................................. 2,400 166,500
----------
471,362
----------
ELECTRICAL EQUIPMENT -- 1.1%
Emerson Electric Company............................... 2,000 120,750
----------
FINANCE & BANKING -- 0.7%
Charles Schwab Corporation............................. 2,500 81,250
----------
FINANCIAL SERVICES -- 0.2%
Crescent Operating Incorporated(a)..................... 1,500 25,500
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-2
<PAGE> 16
AGA SERIES TRUST
CREDIT SUISSE GROWTH & INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ ----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
FOOD & BEVERAGES -- 4.0%
Hershey Foods Corporation.............................. 1,800 $ 124,200
Sysco Corporation...................................... 5,000 128,125
Wrigley (WM) Jr. Company............................... 2,000 196,000
----------
448,325
----------
HOUSEHOLD APPLIANCES & HOME FURNISHINGS -- 0.4%
Newell Company......................................... 1,000 49,813
----------
INDUSTRIAL MACHINERY -- 3.6%
Dover Corporation...................................... 3,000 102,750
General Electric Company............................... 1,600 145,600
Tyco International Limited............................. 2,500 157,500
----------
405,850
----------
INSURANCE -- 5.8%
ACE Limited............................................ 2,400 93,600
American International Group Incorporated.............. 1,500 219,000
CNA Financial Corporation(a)........................... 3,000 139,687
EXEL Limited........................................... 1,200 93,375
Mutual Risk Management Limited......................... 3,000 109,313
----------
654,975
----------
INTERNATIONAL OIL -- 1.0%
Exxon Corporation...................................... 1,600 114,100
----------
MANUFACTURING -- 1.2%
Illinois Tool Works Incorporated....................... 2,000 133,375
----------
MULTIMEDIA -- 3.1%
Media General Incorporated............................. 4,000 195,000
Time Warner Incorporated............................... 1,800 153,787
----------
348,787
----------
NEWSPAPERS -- 0.6%
Gannett Company Incorporated........................... 1,000 71,063
----------
PETROLEUM SERVICES -- 0.4%
Marine Drilling Companies Incorporated(a).............. 2,500 40,000
----------
PUBLISHING -- 1.8%
Hollinger International Incorporated................... 8,000 136,000
Tribune Company........................................ 1,000 68,812
----------
204,812
----------
REAL ESTATE -- 0.7%
TriNet Corporate Realty Trust Incorporated............. 2,500 85,000
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-3
<PAGE> 17
AGA SERIES TRUST
CREDIT SUISSE GROWTH & INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ ----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
RETAIL TRADE -- 1.6%
Costco Companies Incorporated(a)....................... 2,800 $ 176,575
----------
SEMI-CONDUCTOR -- 0.4%
Ramtron International Corporation(a)................... 12,000 41,625
----------
SOFTWARE -- 1.4%
Microsoft Corporation(a)............................... 1,500 162,563
----------
TELECOMMUNICATIONS -- 4.1%
AirTouch Communications Incorporated(a)................ 3,500 204,531
Motorola Incorporated.................................. 2,000 105,125
US West Incorporated(a)................................ 123 5,776
WorldCom Incorporated.................................. 3,000 145,313
----------
460,745
----------
TRANSPORTATION -- 0.5%
Norfolk Southern Corporation........................... 2,000 59,625
----------
TOTAL COMMON STOCKS -- (Cost $4,392,729).................... 5,772,314
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
---------
<S> <C> <C>
MUNICIPALS -- 1.7%
California State
5.00%, 02/01/2023.................................... $ 10,000 9,765
Illinois State
4.75%, 06/01/2023.................................... 15,000 14,102
Jacksonville Florida Electric Authority Revenue
5.00%, 10/01/2023.................................... 10,000 9,747
Massachusetts Bay Transport Authority
4.75%, 03/01/2021.................................... 10,000 9,455
Massachusetts Water Resources Authority
4.75%, 08/01/2027.................................... 10,000 9,386
Metropolitan Transportation Authority
4.75%, 04/01/2028.................................... 15,000 14,004
Municipal Electric Authority Georgia
5.00%, 01/01/2026.................................... 30,000 29,170
Nevada State
4.75%, 05/15/2026.................................... 25,000 23,422
New Jersey Economic Development Authority
0.00%, 02/15/2008.................................... 10,000 5,561
7.425%, 02/15/2029................................... 40,000 45,452
New York City Municipal Water Finance Authority
4.75%, 06/15/2025.................................... 10,000 9,434
</TABLE>
The accompanying notes are an integral part of the financial statements
F-4
<PAGE> 18
AGA SERIES TRUST
CREDIT SUISSE GROWTH & INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
- -------------------- --------- ----------
<S> <C> <C>
MUNICIPALS -- (CONTINUED)
South Carolina State Public Service Authority
5.00%, 01/01/2029.................................... $ 10,000 $ 9,666
----------
TOTAL MUNICIPALS -- (Cost $184,988)......................... 189,164
----------
CORPORATE BONDS -- 9.2%
AIR TRAVEL -- 0.6%
Continental Airlines Incorporated
9.50%, 12/15/2001.................................... 20,000 21,250
Northwest Airlines Incorporated
7.625%, 03/15/2005................................... 40,000 40,156
U. S. Air Incorporated
9.625%, 02/01/2001................................... 10,000 10,445
----------
71,851
----------
BROADCASTING -- 0.8%
Belo (A.H.) Corporation
6.875%, 06/01/2002................................... 20,000 20,391
Fox Liberty Networks LLC
8.875%, 08/15/2007................................... 30,000 30,450
Tele-Communications Incorporated
6.34%, 02/01/2002.................................... 15,000 14,945
Turner Broadcasting Systems Incorporated
7.40%, 02/01/2004.................................... 25,000 26,133
----------
91,919
----------
COMPUTERS & BUSINESS EQUIPMENT -- 0.2%
Seagate Technology Incorporated
7.45%, 03/01/2037.................................... 20,000 19,646
----------
DRUGS & HEALTH CARE -- 0.9%
Columbia/HCA Healthcare Corporation
8.36%, 04/15/2024.................................... 20,000 21,050
Merck & Company Incorporated
5.76%, 05/03/2037.................................... 80,000 82,935
----------
103,985
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-5
<PAGE> 19
AGA SERIES TRUST
CREDIT SUISSE GROWTH & INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
- -------------------- --------- ----------
<S> <C> <C>
CORPORATE BONDS -- (CONTINUED)
ELECTRIC UTILITIES -- 1.2%
Beaver Valley II Funding Corporation
9.00%, 06/01/2017.................................... $ 40,000 $ 45,742
Connecticut Light & Power Company
7.75%, 06/01/2002.................................... 10,000 10,257
7.875%, 10/01/2024................................... 10,000 10,203
Long Island Lighting Company
8.90%, 07/15/2019.................................... 10,000 10,606
9.00%, 11/01/2022.................................... 10,000 11,406
Niagara Mohawk Power Corporation
8.75%, 04/01/2022.................................... 10,000 10,999
North Atlantic Energy Corporation
9.05%, 06/01/2002.................................... 19,000 19,530
Texas Electrical Capital
8.175%, 01/30/2037................................... 20,000 20,978
----------
139,721
----------
FINANCE & BANKING -- 2.1%
A T & T Capital Corporation
6.41%, 08/13/1999.................................... 10,000 10,037
6.48%, 12/03/1999.................................... 25,000 25,234
6.47%, 12/03/2099.................................... 15,000 15,078
BellSouth Capital Funding Corporation
6.04%, 11/15/2026.................................... 80,000 82,959
Chase Manhattan Corporation
6.375%, 04/01/2008................................... 25,000 25,078
General Motors Acceptance Corporation
6.375%, 12/01/2001................................... 20,000 20,226
6.625%, 04/24/2000................................... 30,000 30,351
6.21%, 09/19/2000.................................... 30,000 30,141
----------
239,104
----------
INDUSTRIALS -- 0.4%
CSC Holdings Incorporated
7.875%, 12/15/2007................................... 20,000 21,050
Dresser Industries Incorporated
7.60%, 08/15/2096.................................... 20,000 23,013
----------
44,063
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-6
<PAGE> 20
AGA SERIES TRUST
CREDIT SUISSE GROWTH & INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
- -------------------- --------- ----------
<S> <C> <C>
CORPORATE BONDS -- (CONTINUED)
LEISURE TIME -- 0.8%
Time Warner Incorporated
6.85%, 01/15/2026.................................... $ 50,000 $ 51,401
7.48%, 01/15/2008.................................... 10,000 10,717
8.05%, 01/15/2016.................................... 25,000 28,521
----------
90,639
----------
MINING -- 0.2%
Southern Coal & Iron Corporation
6.27%, 03/25/2019.................................... 25,000 25,034
----------
PETROLEUM SERVICES -- 0.4%
Cliffs Drilling Company
10.25%, 05/15/2003................................... 10,000 10,700
Petroleum Geo-Services
7.125%, 03/30/2028................................... 30,000 30,361
----------
41,061
----------
TELECOMMUNICATIONS -- 1.3%
Diamond Cable Communications PLC
10.75%, 02/15/2007................................... 10,000 7,400
GTE Corporation
6.84%, 04/15/2018.................................... 25,000 25,086
6.94%, 04/15/2028.................................... 30,000 30,234
MCI Communications Corporation
6.125%, 04/15/2012................................... 15,000 15,016
Nextel Communications Incorporated
9.75%, 10/31/2007.................................... 10,000 6,525
10.65%, 09/15/2007................................... 30,000 20,175
TCI Communications Financing III
9.65%, 03/31/2027.................................... 10,000 12,249
Teleport Communications Group
11.125%, 07/01/2007.................................. 40,000 34,600
----------
151,285
----------
TRANSPORTATION -- 0.3%
Norfolk Southern Corporation
7.80%, 05/15/2027.................................... 10,000 11,475
7.05%, 05/01/2037.................................... 15,000 15,929
----------
27,404
----------
TOTAL CORPORATE BONDS -- (Cost $1,028,327).................. 1,045,712
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-7
<PAGE> 21
AGA SERIES TRUST
CREDIT SUISSE GROWTH & INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
- -------------------- --------- ----------
<S> <C> <C>
FOREIGN CORPORATE BONDS -- 1.4%
FINANCE & BANKING -- 0.6%
Credit Lyonnais
6.75%, 09/19/2049.................................... $ 30,000 $ 29,274
Fuji Finance Caymon Limited
7.30%, 03/29/2049.................................... 20,000 17,000
6.425%, 08/29/2049................................... 10,000 8,000
Sparbanken Sverige
7.50%, 11/29/2049.................................... 10,000 10,450
----------
64,724
----------
FINANCIAL SERVICES -- 0.4%
Auxiliaire Credit Foncier
5.60%, 10/18/2002.................................... 10,000 9,683
5.58%, 09/25/2002.................................... 10,000 9,638
Credit Foncier De France
8.00%, 01/14/2002.................................... 30,000 31,453
----------
50,774
----------
INDUSTRIALS -- 0.2%
Osuuspankkien Kesk
6.188%, 09/29/2049................................... 20,000 19,850
----------
OIL & GAS -- 0.1%
Petroleos Mexicano
9.50%, 09/15/2027.................................... 15,000 14,100
----------
TRANSPORTATION -- 0.1%
TFM, Sa De Cv
11.75%, 06/15/2009................................... 10,000 6,275
----------
TOTAL FOREIGN CORPORATE BONDS -- (Cost $159,535)............ 155,723
----------
FOREIGN GOVERNMENT BONDS -- 1.8%
Federal Republic of Brazil
9.375%, 04/07/2008................................... 10,000 8,870
Government of Poland
4.00%, 10/27/2014.................................... 90,000 80,442
National Republic of Bulgaria
6.56%, 07/28/2024.................................... 25,000 19,095
</TABLE>
The accompanying notes are an integral part of the financial statements
F-8
<PAGE> 22
AGA SERIES TRUST
CREDIT SUISSE GROWTH & INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
- -------------------- --------- ----------
<S> <C> <C>
FOREIGN GOVERNMENT BONDS -- (CONTINUED)
Republic of Argentina
9.15%, 11/30/2002.................................... $ 45,000 $ 44,606
Republic of Columbia
8.625%, 04/01/2008................................... 30,000 28,455
Republic of Korea
8.875%, 04/15/2008................................... 10,000 9,075
8.75%, 04/15/2003.................................... 15,000 14,083
----------
TOTAL FOREIGN GOVERNMENT BONDS -- (Cost $208,824)........... 204,626
----------
ASSET-BACKED SECURITIES -- 2.3%
FINANCE & BANKING -- 1.9%
Contimortgage Home Equity Loan Trust
Series 1998-CF1, Class A5, 6.43%, 04/15/2016......... 15,000 15,047
Series 1996-4, Class A8, 7.22%, 01/15/2028........... 10,000 10,256
GMAC Commercial Mortgage Security Incorporated Series
1997-C1, Class A2, 6.853%, 09/15/2006................. 10,000 10,391
Green Tree Financial Corporation
Series 1998-4, Class A3, 5.98%, 08/01/2008........... 40,000 40,057
Series 1998-C, Class A2, 6.03%, 07/15/2029........... 35,000 35,055
Series 1997-6, Class A3, 6.32%, 01/15/2029........... 10,000 10,036
Series 1997-3, Class A3, 6.73%, 07/15/2028........... 55,000 55,601
IMC Home Equity Loan Trust
Series 1998-3, Class A3, 6.16%, 05/20/2014........... 15,000 15,000
New Century Home Equity Loan Trust
Series 1997-6, Class A4, 6.73%, 07/25/2022........... 10,000 10,150
UCFC Loan Trust
Series 1996-B, Class A7, 8.20%, 11/15/2027........... 10,000 10,872
----------
212,465
----------
FINANCIAL SERVICES -- 0.4%
Green Tree Recreational Equipment
Series 1998-B, Class A3, 6.05%, 05/15/2001........... 20,000 20,106
K Mart Corporation
Series 1995-K, 8.54%, 01/02/2015..................... 14,746 15,738
Nationscredit Grantor Trust
Series 1996-1, Class A, 5.85%, 09/15/2011............ 12,611 12,606
Structured Asset Securities Corporation
Series 1996-CFL, Class A1C, 5.944%, 02/25/2028....... 5,591 5,566
----------
54,016
----------
TOTAL ASSET-BACKED SECURITIES -- (Cost $264,728)............ 266,481
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-9
<PAGE> 23
AGA SERIES TRUST
CREDIT SUISSE GROWTH & INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
- -------------------- -------- ----------
<S> <C> <C>
PREFERRED STOCK -- 0.5%
FINANCE & BANKING -- 0.4%
California Federal Preferred Capital Corporation....... 700 $ 19,119
NB Capital Corporation(a).............................. 20 21,000
----------
40,119
----------
FINANCIAL SERVICES -- 0.1%
Travelers Group Incorporated........................... 250 13,781
----------
TOTAL PREFERRED STOCK -- (Cost $52,144)..................... 53,900
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES -- 25.1%
FEDERAL AGENCIES -- 13.8%
Federal Home Loan Mortgage Corporation
6.00%, 08/15/2007.................................... $ 25,000 24,950
Federal National Mortgage Association
0.00%, 02/25/2023.................................... 25,000 17,310
5.50%, 12/01/TBA..................................... 75,000 72,726
6.00%, 04/01/2028.................................... 90,000 87,609
6.00%, 08/01/2008.................................... 100,000 98,906
6.50%, 12/01/TBA..................................... 205,000 204,166
6.50%, 12/01/TBA..................................... 485,000 487,726
7.00%, 01/01/TBA..................................... 90,000 91,266
7.00%, 12/01/TBA..................................... 25,000 25,453
7.50%, 12/01/TBA..................................... 180,000 184,774
8.00%, 12/01/TBA..................................... 135,000 139,725
Government National Mortgage Association
7.00%, 06/20/2026.................................... 95,000 96,247
Tennessee Valley Authority
5.88%, 04/01/2036.................................... 30,000 31,190
-----------
1,562,048
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-10
<PAGE> 24
AGA SERIES TRUST
CREDIT SUISSE GROWTH & INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
- -------------------- ---------- -----------
<S> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES -- (CONTINUED)
U.S. GOVERNMENT -- 11.3%
United States Treasury Bonds
6.875%, 08/15/2025................................... $ 180,000 $ 208,462
United States Treasury Notes 6.25%, 06/30/2002......... 290,000 297,297
7.50%, 02/15/2005.................................... 20,000 22,137
7.75%, 11/30/1999.................................... 705,000 726,037
7.875%, 11/15/2004................................... 20,000 22,462
-----------
1,276,395
-----------
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES -- (Cost
$2,816,204)............................................... 2,838,443
-----------
REPURCHASE AGREEMENT -- 19.8%
(Cost $2,244,000)
State Street Bank and Trust Company, 4.0% dated
6/30/98, to be repurchased at $2,244,249 on 7/1/98,
collateralized by $1,970,000 par value U.S. Treasury
Bond,
6.75% due 8/15/2026, with a value of $2,289,542...... 2,244,000 2,244,000
TOTAL INVESTMENTS -- (COST $11,351,479*) -- 112.8%.......... 12,770,363
-----------
OTHER ASSETS LESS LIABILITIES -- (12.8)%.................... (1,454,090)
-----------
NET ASSETS -- 100.0%........................................ $11,316,273
===========
</TABLE>
- ---------------
(a) Non-income producing security
ADR -- American Depository Receipt
TBA -- To Be Announced
* Aggregate cost for Federal tax purposes. Aggregate gross unrealized
appreciation for all securities in which there is an excess of value over tax
cost and aggregate gross unrealized depreciation for all securities in which
there is an excess of tax cost over value were $1,481,996 and $63,112,
respectively, resulting in net unrealized appreciation of $1,418,884.
The accompanying notes are an integral part of the financial statements
F-11
<PAGE> 25
AGA SERIES TRUST
CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
-------------------- ------- ----------
<S> <C> <C>
COMMON STOCKS -- 91.1%
AUSTRALIA -- 0.3%
Telstra Corporation Limited............................ 6,000 $ 15,419
----------
BELGIUM -- 1.1%
Banque Paribas(a)...................................... 575 61,535
----------
BRAZIL -- 2.9%
Telecomunicacoes Brasileiras S/A -- Telebras........... 1,500 163,781
----------
CANADA -- 0.6%
Rogers Communications Incorporated(a).................. 4,000 34,521
----------
CHILE -- 1.4%
Five Arrows Chile Investment Trust Limited............. 20,000 39,650
Genesis Chile Fund..................................... 1,000 36,250
----------
75,900
----------
CHINA -- 0.5%
China Telecom (Hong Kong) Limited...................... 10,000 17,359
Zhejiang Expressway Company, Limited................... 60,000 10,067
----------
27,426
----------
CROATIA -- 0.3%
Pliva D.D. GDR......................................... 1,000 16,170
----------
CZECH REPUBLIC -- 1.4%
Ateso AS............................................... 2,000 16,556
Deza Valasske Mezirici AS.............................. 1,000 42,095
Galena AS.............................................. 600 21,596
----------
80,247
----------
DENMARK -- 0.6%
ISS International Service System A/S................... 570 33,190
----------
FRANCE -- 10.7%
Alcatel Alsthom SA..................................... 362 73,709
AXA SA................................................. 575 64,674
Cie Generale de Eaux................................... 325 69,400
Cofinec GDR (a)........................................ 3,000 41,250
Rhodia SA (a).......................................... 1,889 52,680
Rhone-Poulenc SA....................................... 1,278 72,084
Sanofi SA.............................................. 463 54,451
Societe BIC SA......................................... 583 41,466
Total SA............................................... 474 61,625
Valeo SA............................................... 644 65,830
----------
597,169
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-12
<PAGE> 26
AGA SERIES TRUST
CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
-------------------- ------- ----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
GERMANY -- 6.7%
Bayerische Motoren Werke (BMW)(a)...................... 16 $ 15,792
Bayerische Motoren Werke AG............................ 57 57,681
Dresdner Bank AG....................................... 856 46,278
Mannesmann AG.......................................... 710 73,029
Siemens AG............................................. 765 46,724
Viag AG................................................ 90 61,981
Volkswagen AG.......................................... 76 73,453
----------
374,938
----------
HONG KONG -- 0.6%
China Resources Enterprise Limited..................... 3,000 3,098
HSBC Holdings Limited.................................. 500 12,229
Hutchison Whampoa Limited.............................. 2,000 10,557
New World Development Company Limited.................. 5,000 9,680
----------
35,564
----------
HUNGARY -- 0.6%
MOL Magyar Olaj-es Gazipari GDR........................ 600 16,200
Primagaz Hungaria Company Limited...................... 1,000 15,641
----------
31,841
----------
INDIA -- 1.4%
India Fund............................................. 12,000 76,500
----------
INDONESIA -- 0.1%
Gulf Indonesia Resources Limited(a).................... 430 4,945
----------
ISRAEL -- 0.9%
Electric Fuel Corporation(a)........................... 2,500 13,594
Koor Industries Limited ADR............................ 1,500 35,063
----------
48,657
----------
ITALY -- 5.5%
Assicurazioni Generali SPA............................. 2,013 65,485
Banco Ambrosiano Veneto SPA............................ 10,825 60,591
Ente Nazionale Idrocarburi SPA......................... 8,150 53,439
Telecom Italia Mobile (TIM) SPA........................ 10,219 62,519
Telecom Italia SPA..................................... 8,650 63,704
----------
305,738
----------
JAPAN -- 12.8%
Advantest.............................................. 100 5,395
Amada Company.......................................... 3,000 14,645
Bank of Tokyo Mitsubishi Limited....................... 1,000 10,624
Banyu Pharmaceutical Company........................... 2,000 21,697
</TABLE>
The accompanying notes are an integral part of the financial statements
F-13
<PAGE> 27
AGA SERIES TRUST
CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
-------------------- ------- ----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
JAPAN -- (CONTINUED)
Daiwa Securities....................................... 8,000 $ 34,541
East Japan Railway..................................... 6 28,293
Eisai Company.......................................... 1,500 20,503
Fanuc.................................................. 1,000 34,715
Honda Motor Company.................................... 1,000 35,727
Japan Airport Terminal................................. 2,000 11,138
Japan Tobacco Incorporated............................. 5 33,955
Maeda Road Construction................................ 2,000 10,747
Mitsubishi Heavy Industries............................ 5,000 18,949
NEC Corporation........................................ 4,000 37,405
Nippon Telegraph & Telephone........................... 9 74,854
Nitto Denko Corporation................................ 2,000 30,158
Nomura Securities Limited.............................. 2,000 23,360
Olympus Optical Company Limited........................ 6,000 52,332
Santen Pharmaceutical Company.......................... 1,210 13,293
Sanwa Bank Limited..................................... 2,000 17,950
Sony Corporation....................................... 1,000 86,425
Sumitomo Osaka Cement Company Limited.................. 7,000 9,011
Takefuji Corporation................................... 1,200 55,544
Terumo Corporation..................................... 2,000 31,822
----------
713,083
----------
MALAYSIA -- 0.2%
Magnum Corporation Berhad.............................. 9,000 3,340
YTL Corporation Berhad................................. 8,000 6,014
----------
9,354
----------
MEXICO -- 2.6%
Telefonos De Mexico SA................................. 3,000 144,000
----------
NETHERLANDS -- 5.8%
ABN Amro Holding NV.................................... 1,700 39,808
ING Groep NV........................................... 950 62,251
Oce NV................................................. 1,400 59,643
Philips Electronics NV................................. 880 74,028
Royal Dutch Petroleum Company.......................... 763 42,340
Vedior NV.............................................. 438 12,395
Vendex NV.............................................. 819 31,281
----------
321,746
----------
NEW ZEALAND -- 0.2%
Telecom Corporation of New Zealand..................... 6,000 12,863
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-14
<PAGE> 28
AGA SERIES TRUST
CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
-------------------- ------- ----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
PERU -- 1.1%
Telefonica del Peru ADR................................ 3,000 $ 61,313
----------
PHILIPPINES -- 0.2%
SM Prime Holdings...................................... 55,000 8,705
----------
PORTUGAL -- 0.9%
EDP-Electricidade de Portugal SA....................... 2,206 51,314
----------
RUSSIA -- 1.9%
AO Tatneft ADR......................................... 4,000 31,000
Fleming Russia Securities Fund Limited(a).............. 5,000 62,500
Surgutneftegaz......................................... 3,825 15,300
----------
108,800
----------
SINGAPORE -- 0.1%
Singapore Technologies Engineering Limited............. 12,045 8,507
----------
SLOVAKIA -- 0.5%
Slovenske Lodenice AS(a)............................... 700 13,399
Vychodoslovenske Zeleziarne AS......................... 2,000 16,508
----------
29,907
----------
SPAIN -- 3.4%
Banco Bilbao Vizcaya SA................................ 1,313 67,384
Iberdrola SA........................................... 3,388 55,012
Telefonica de Espana................................... 1,396 64,543
----------
186,939
----------
SWEDEN -- 1.8%
Atlas Copco AB......................................... 1,625 44,312
Electrolux AB.......................................... 3,125 53,677
----------
97,989
----------
SWITZERLAND -- 6.5%
Ciba Specialty Chemicals AG............................ 476 61,217
Nestle SA.............................................. 32 68,594
Novartis AG............................................ 34 56,670
Roche Holdings AG...................................... 5 49,181
SchweizerischeRueckversicherungs-Gesellschaft.......... 25 63,330
Zurichversicherungs-Gesellschaft....................... 100 63,924
----------
362,916
----------
THAILAND -- 0.1%
Electricity Generating Public Company Limited.......... 5,000 7,761
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-15
<PAGE> 29
AGA SERIES TRUST
CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
-------------------- ------- ----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
UNITED KINGDOM -- 17.4%
Asda Group PLC......................................... 18,350 $ 63,040
Blue Circle Industries PLC............................. 10,150 57,367
Boots Company PLC...................................... 3,705 61,429
Central European Media Enterprises Limited(a).......... 2,000 43,250
Compass Group PLC...................................... 6,870 79,034
Electrocomponents PLC.................................. 6,700 52,579
General Accident PLC................................... 2,750 61,988
GKN PLC................................................ 4,800 61,191
Granada Group PLC...................................... 4,000 73,600
Lloyds TSB Group PLC................................... 4,900 68,602
Pearson PLC............................................ 3,900 71,500
Provident Financial PLC................................ 3,859 60,568
Shell Transport & Trading Company...................... 9,050 63,767
SmithKline Beecham PLC................................. 5,600 68,398
Vodafone Group PLC..................................... 6,800 86,347
----------
972,660
----------
TOTAL COMMON STOCKS -- (Cost $4,872,075).................... 5,081,398
----------
DEPOSITORY RECEIPTS -- 1.1%
BRAZIL -- 0.8%
Companhia Paranaense De Energia-Copel.................. 5,000 46,250
----------
CZECH REPUBLIC -- 0.3%
Ceske Radiomunikace AS(a).............................. 620 13,280
----------
TOTAL DEPOSITORY RECEIPTS -- (Cost $55,701)................. 59,530
----------
WARRANTS -- 0.8%
FRANCE -- 0.0%
Cie Generale de Eaux(a)................................ 175 345
----------
JAPAN -- 0.8%
Fleming Japan Investor(a).............................. 60,000 5,009
Schroder Japan Growth Fund(a).......................... 175,000 41,638
----------
46,647
----------
TOTAL WARRANTS -- (Cost $180,131)........................... 46,992
----------
PREFERRED STOCK -- 1.6%
GERMANY -- 1.4%
Henkel KGaA............................................ 787 77,895
----------
RUSSIA -- 0.2%
Unified Energy Systems(a).............................. 504 10,080
----------
TOTAL PREFERRED STOCK -- (Cost $99,396)..................... 87,975
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-16
<PAGE> 30
AGA SERIES TRUST
CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SECURITIES DESCRIPTION AMOUNT VALUE
---------------------- --------- ----------
<S> <C> <C>
REPURCHASE AGREEMENT -- 4.5%
(Cost $249,000)
State Street Bank and Trust Company, 2.00% dated 6/30/98,
to be repurchased at $249,014 on 7/1/98, collateralized by
$220,000 par value U.S. Treasury Bond, 6.75% due
8/15/2026, with a value of $255,685....................... $249,000 $ 249,000
----------
TOTAL INVESTMENTS -- (COST $5,456,303*) -- 99.1%............ 5,524,895
----------
OTHER ASSETS LESS LIABILITIES -- 0.9%....................... 48,686
----------
NET ASSETS -- 100.0%........................................ $5,573,581
==========
</TABLE>
- ---------------
(a) Non-income producing security
GDR -- Global Depository Receipt
ADR -- American Depository Receipt
* Aggregate cost for Federal tax purposes. Aggregate gross unrealized
appreciation for all securities in which there is an excess of value over tax
cost and aggregate gross unrealized depreciation for all securities in which
there is an excess of tax cost over value were $877,431 and $808,839,
respectively, resulting in a net unrealized depreciation of $68,592.
The accompanying notes are an integral part of the financial statements
F-17
<PAGE> 31
AGA SERIES TRUST
CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO
ANALYSIS OF INDUSTRY CLASSIFICATIONS
JUNE 30, 1998
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY NET ASSETS
- -------- ----------
<S> <C>
Auto Parts.................................................. 0.3%
Automobiles................................................. 3.3
Banks....................................................... 8.0
Broadcasting................................................ 1.4
Business Services........................................... 1.8
Chemicals................................................... 4.2
Communication Services...................................... 0.2
Conglomerates............................................... 2.2
Construction Materials...................................... 1.4
Construction & Mining Equipment............................. 1.0
Drugs & Health Care......................................... 7.6
Electric Utilities.......................................... 3.3
Electrical Equipment........................................ 0.7
Electronics................................................. 2.4
Financial Services.......................................... 5.4
Food & Beverages............................................ 3.3
Household Appliances & Home Furnishings..................... 3.8
Industrial Machinery........................................ 3.1
Insurance................................................... 5.7
Investment Companies........................................ 0.5
Leisure Time................................................ 1.6
Miscellaneous............................................... 0.2
Mutual Funds................................................ 3.9
Office Furnishings & Supplies............................... 1.8
Oil & Gas................................................... 2.5
Petroleum Services.......................................... 3.0
Photography................................................. 0.9
Publishing.................................................. 1.3
Railroads & Equipment....................................... 0.5
Real Estate................................................. 0.3
Retail Trade................................................ 2.8
Steel....................................................... 0.3
Telecommunications.......................................... 15.7
Turnpikes & Toll Roads...................................... 0.2
----
TOTAL INVESTMENTS BY INDUSTRY CLASSIFICATION...... 94.6
Repurchase Agreement........................................ 4.5
----
TOTAL INVESTMENTS................................. 99.1%
====
</TABLE>
The accompanying notes are an integral part of the financial statements
F-18
<PAGE> 32
AGA SERIES TRUST
ELITEVALUE PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
-------------------- ---------- -----------
<S> <C> <C>
COMMON STOCKS -- 73.7%
AEROSPACE -- 5.3%
Boeing Company......................................... 11,000 $ 490,187
Lockheed Martin Corporation............................ 3,000 317,625
-----------
807,812
-----------
AIR TRAVEL -- 1.5%
UAL Corporation(a)..................................... 3,000 234,000
-----------
BANKS -- 11.4%
BankBoston Corporation................................. 7,000 389,375
Citicorp............................................... 4,000 597,000
M & T Bank Corporation................................. 900 498,600
Wells Fargo & Company.................................. 700 258,300
-----------
1,743,275
-----------
BROADCASTING & CABLE -- 1.3%
Tele-Communications Incorporated(a).................... 10,000 200,625
-----------
CHEMICALS -- 8.0%
Du Pont (E.I.) de Nemours & Company.................... 8,000 597,000
Hercules Incorporated.................................. 2,600 106,925
Monsanto Company....................................... 5,200 290,550
Solutia Incorporated................................... 8,000 229,500
-----------
1,223,975
-----------
COMMERCIAL SERVICES -- 2.7%
R.R. Donnelley & Sons Company.......................... 9,000 411,750
-----------
CONSTRUCTION & MINING EQUIPMENT -- 3.1%
Caterpillar Incorporated............................... 9,000 475,875
-----------
DRUGS & HEALTH CARE -- 1.0%
Becton, Dickinson & Company............................ 1,900 147,488
-----------
ELECTRONICS -- 5.9%
Avnet Incorporated..................................... 2,000 109,375
Intel Corporation...................................... 1,000 74,125
ITT Industries Incorporated............................ 15,000 560,625
National Semiconductor Corporation(a).................. 12,000 158,250
-----------
902,375
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-19
<PAGE> 33
AGA SERIES TRUST
ELITEVALUE PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
-------------------- ---------- -----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
FEDERAL AGENCIES -- 3.6%
Federal Home Loan Mortgage Corporation................. 11,500 $ 541,219
-----------
FINANCIAL SERVICES -- 1.0%
American Express Company............................... 1,400 159,600
-----------
FOOD & BEVERAGES -- 2.2%
Diageo PLC ADR......................................... 7,100 342,131
-----------
HOTELS & RESTAURANTS -- 4.8%
McDonald's Corporation................................. 10,500 724,500
-----------
INSURANCE -- 5.9%
Ace Limited............................................ 8,500 331,500
Exel Limited........................................... 7,200 560,250
-----------
891,750
-----------
MANUFACTURING -- 1.0%
Varian Associates Incorporated......................... 4,000 156,000
-----------
MULTI INDUSTRY COMPANIES -- 3.6%
Minnesota Mining & Manufacturing Company............... 4,500 369,843
Textron Incorporated................................... 2,500 179,219
-----------
549,062
-----------
MULTIMEDIA -- 4.2%
Time Warner Incorporated............................... 7,500 640,781
-----------
OIL & GAS -- 1.4%
Unocal Corporation..................................... 6,000 214,500
-----------
PAPER -- 2.3%
Champion International Corporation..................... 7,000 344,313
-----------
TELECOMMUNICATIONS -- 2.3%
Sprint Corporation..................................... 5,000 352,500
-----------
TOYS & AMUSEMENTS -- 1.2%
Mattel Incorporated.................................... 4,300 181,944
-----------
TOTAL COMMON STOCKS -- (Cost $9,673,509).................... 11,245,475
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-20
<PAGE> 34
AGA SERIES TRUST
ELITEVALUE PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
-------------------- ---------- -----------
<S> <C> <C>
DISCOUNT NOTES -- 25.4%
FEDERAL AGENCIES -- 25.4%
Federal Farm Credit Bank
5.40%, 07/10/1998**.................................. $ 920,000 $ 918,758
Federal Home Loan Bank
5.36%, 07/09/1998**.................................. 800,000 799,047
5.37%, 07/03/1998**.................................. 1,115,000 1,114,667
5.39%, 07/10/1998**.................................. 375,000 374,495
5.41%, 07/24/1998**.................................. 265,000 264,084
5.42%, 08/28/1998**.................................. 400,000 396,507
-----------
TOTAL DISCOUNT NOTES -- (Cost $3,867,558)................... 3,867,558
-----------
TOTAL INVESTMENTS -- (COST $13,541,067*) -- 99.1%........... 15,113,033
-----------
OTHER ASSETS LESS LIABILITIES -- 0.9%....................... 139,461
-----------
NET ASSETS -- 100.0%........................................ $15,252,494
===========
</TABLE>
- ---------------
(a) Non-income producing security
ADR -- American Depository Receipt
* Aggregate cost for Federal tax purposes. Aggregate gross unrealized
appreciation for all securities in which there is an excess of value over
tax cost and aggregate gross unrealized depreciation for all securities in
which there is an excess of tax cost over value are $2,058,814 and $486,848,
respectively, resulting in net unrealized appreciation of $1,571,966.
** The rate shown reflects the current yield at June 30, 1998.
The accompanying notes are an integral part of the financial statements
F-21
<PAGE> 35
AGA SERIES TRUST
SALOMON BROTHERS U.S. GOVERNMENT SECURITIES PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
-------------------- ---------- -----------
<S> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES -- 104.1%
FEDERAL AGENCIES -- 95.2%
Federal Home Loan Bank
5.40%, 07/01/1998**.................................. $ 547,000 $ 547,000
Federal Home Loan Mortgage Corporation
5.89%, 07/24/2000.................................... 225,000 226,089
6.50%, 12/01/TBA..................................... 500,000 503,435
6.247%, 03/17/2021................................... 100,000 100,171
7.00%, 04/15/2021.................................... 47,400 47,993
8.25%, 04/01/2017.................................... 17,914 18,756
11.75%, 07/01/2006................................... 8,723 9,679
11.75%, 07/01/2013................................... 2,923 3,154
11.75%, 08/01/2013................................... 1,055 1,062
Federal National Mortgage Association
6.50%, 08/01/2027.................................... 247,700 246,692
6.50%, 12/01/TBA..................................... 900,000 896,337
6.527%, 05/25/2030................................... 150,000 153,000
7.00%, 05/01/2026.................................... 169,922 172,364
7.00%, 12/01/TBA..................................... 450,000 456,327
7.00%, 12/01/TBA..................................... 450,000 456,327
7.50%, 12/01/TBA..................................... 75,000 76,921
9.00%, 10/01/2026.................................... 127,686 135,028
11.50%, 09/01/2019................................... 14,602 16,631
12.00%, 10/01/2015................................... 58,321 67,555
12.00%, 01/01/2016................................... 3,365 3,969
12.50%, 08/01/2015................................... 5,741 6,731
12.50%, 09/01/2015................................... 6,753 8,017
13.00%, 11/01/2015................................... 14,273 17,158
14.50%, 11/01/2014................................... 5,693 7,000
Government National Mortgage Association
7.50%, 05/15/2027.................................... 123,112 126,523
7.50%, 07/15/2027.................................... 177,066 181,972
9.00%, 10/20/2016.................................... 63,523 67,851
Student Loan Marketing Association
7.20%, 11/09/2000.................................... 225,000 232,488
United States Department of Veteran Affairs
7.25%, 10/15/2010.................................... 100,117 100,675
-----------
4,886,905
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-22
<PAGE> 36
AGA SERIES TRUST
SALOMON BROTHERS U.S. GOVERNMENT SECURITIES PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
-------------------- ---------- -----------
<S> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES -- (CONTINUED)
U.S. GOVERNMENT -- 8.9%
United States Treasury Notes
5.625%, 12/31/2002................................... $ 50,000 $ 50,218
5.625%, 05/15/2008................................... 100,000 101,359
5.75%, 04/30/2003.................................... 100,000 100,984
5.875%, 09/30/2002................................... 100,000 101,250
6.125%, 08/15/2007................................... 100,000 104,047
-----------
457,858
-----------
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES -- (Cost
$5,307,888)............................................... 5,344,763
-----------
REPURCHASE AGREEMENT -- 42.1%
J.P. Morgan & Company, 5.48% dated 6/30/98, to be
repurchased at $1,079,164 on 7/1/98 collateralized by
$1,025,000 par value U.S. Treasury Bond, 8.50% due
11/15/2000, with a value of $1,100,594................ 1,079,000 1,079,000
State Street Bank and Trust Company, 5.70% dated
6/30/98, to be repurchased at $1,079,171 on 7/1/98
collateralized by $915,000 par value U.S. Treasury
Bond, 7.50% due 11/15/2016, with a value of
$1,101,146............................................ 1,079,000 1,079,000
-----------
TOTAL REPURCHASE AGREEMENT -- (Cost $2,158,000)............. 2,158,000
-----------
TOTAL INVESTMENTS -- (COST $7,465,888*) -- 146.2%........... 7,502,763
-----------
OTHER ASSETS LESS LIABILITIES -- (46.2)%.................... (2,369,513)
-----------
NET ASSETS -- 100.0%........................................ $ 5,133,250
===========
</TABLE>
- ---------------
TBA -- To Be Announced
* Aggregate cost for Federal tax purposes. Aggregate gross unrealized
appreciation for all securities in which there is an excess of value over
tax cost and aggregate gross unrealized depreciation for all securities in
which there is an excess of tax cost over value were $39,981 and $3,106,
respectively, resulting in net unrealized appreciation of $36,875.
** The rate shown reflects the current yield at June 30, 1998.
The accompanying notes are an integral part of the financial statements
F-23
<PAGE> 37
AGA SERIES TRUST
STATE STREET GLOBAL ADVISORS GROWTH EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
-------------------- ------- -----------
<S> <C> <C>
COMMON STOCKS -- 97.2%
AEROSPACE -- 3.6%
Aeroquip-Vickers Incorporated.......................... 400 $ 23,350
General Dynamics Corporation........................... 1,700 79,050
Goodrich (B.F.) Company................................ 400 19,850
Lockheed Martin Corporation............................ 1,300 137,637
United Technologies Corporation........................ 1,500 138,750
-----------
398,637
-----------
APPAREL & TEXTILES -- 0.6%
Intimate Brands Incorporated........................... 900 24,806
VF Corporation......................................... 800 41,200
-----------
66,006
-----------
AUTOMOBILES -- 2.4%
Ford Motor Company..................................... 1,400 82,600
General Motors Corporation............................. 1,000 66,813
Johnson Controls Incorporated.......................... 1,100 62,906
Navistar International Corporation Incorporated(a)..... 200 5,775
PACCAR Incorporated.................................... 800 41,800
-----------
259,894
-----------
BANKS -- 7.8%
AmSouth Bancorporation................................. 1,050 41,278
BankAmerica Corporation................................ 800 69,150
Chase Manhattan Corporation............................ 3,000 226,500
Citicorp............................................... 200 29,850
Comerica Incorporated.................................. 1,850 122,563
First Union Corporation................................ 1,100 64,075
NationsBank Corporation................................ 2,900 221,850
Republic New York Corporation.......................... 1,200 75,525
-----------
850,791
-----------
BROADCASTING -- 0.2%
A.H. Belo Corporation.................................. 700 17,063
-----------
BUSINESS SERVICES -- 2.0%
Accustaff Incorporated(a).............................. 2,400 75,000
Computer Sciences Corporation.......................... 700 44,800
Manpower Incorporated.................................. 800 22,950
Unisys Corporation(a).................................. 2,700 76,275
-----------
219,025
-----------
CHEMICALS -- 2.5%
Dow Chemical Company................................... 300 29,006
Du Pont (E.I.) de Nemours & Company.................... 600 44,775
</TABLE>
The accompanying notes are an integral part of the financial statements
F-24
<PAGE> 38
AGA SERIES TRUST
STATE STREET GLOBAL ADVISORS GROWTH EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
-------------------- ------- -----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
CHEMICALS -- (CONTINUED)
PPG Industries Incorporated............................ 1,500 $ 104,344
Solutia Incorporated................................... 3,500 100,406
-----------
278,531
-----------
COMPUTERS & BUSINESS EQUIPMENT -- 2.9%
Cisco Systems Incorporated(a).......................... 500 46,031
EMC Corporation(a)..................................... 1,200 53,775
Gateway 2000 Incorporated(a)........................... 200 10,125
Hewlett-Packard Company................................ 300 17,963
International Business Machines........................ 700 80,369
Lexmark International Group Incorporated(a)............ 900 54,900
Storage Technology Corporation(a)...................... 1,200 52,050
-----------
315,213
-----------
CONSTRUCTION MATERIALS -- 0.6%
Georgia Pacific Timber Group........................... 1,600 36,900
USG Corporation........................................ 600 32,475
-----------
69,375
-----------
CONSTRUCTION & MINING EQUIPMENT -- 1.1%
Caterpillar Incorporated............................... 2,200 116,325
-----------
COSMETICS & TOILETRIES -- 0.2%
Avon Products Incorporated............................. 300 23,250
-----------
DRUGS & HEALTH CARE -- 11.9%
Abbott Laboratories.................................... 300 12,263
American Home Products Corporation..................... 500 25,875
Amgen Incorporated..................................... 2,500 163,437
Becton, Dickinson & Company............................ 700 54,337
Bristol Myers Squibb Company........................... 1,700 195,394
Cardinal Health Incorporated........................... 500 46,875
Columbia/HCA Healthcare Corporation.................... 1,500 43,688
Eli Lilly & Company.................................... 400 26,425
Guidant Corporation.................................... 1,000 71,312
Johnson & Johnson...................................... 800 59,000
McKesson Corporation................................... 800 65,000
Merck & Company Incorporated........................... 1,100 147,125
Pfizer Incorporated.................................... 2,100 228,244
Schering-Plough Corporation............................ 700 64,137
Tenet Healthcare Corporation(a)........................ 200 6,250
Wellpoint Health Networks Incorporated(a).............. 1,200 88,800
-----------
1,298,162
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-25
<PAGE> 39
AGA SERIES TRUST
STATE STREET GLOBAL ADVISORS GROWTH EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
-------------------- ------- -----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
ELECTRIC UTILITIES -- 1.8%
Consolidated Edison Company............................ 200 $ 9,213
DTE Energy Company..................................... 500 20,188
Energy East Corporation................................ 700 29,137
Entergy Corporation.................................... 200 5,750
FirstEnergy Corporation................................ 400 12,300
GPU Incorporated....................................... 600 22,687
PP&L Resources Incorporated............................ 1,100 24,956
Public Service Enterprise Group........................ 2,000 68,875
-----------
193,106
-----------
ELECTRONICS -- 1.8%
Arrow Electronics Incorporated(a)...................... 200 4,350
Honeywell Incorporated................................. 1,300 108,631
Intel Corporation...................................... 1,200 88,950
-----------
201,931
-----------
FEDERAL AGENCIES -- 1.3%
Federal National Mortgage Association.................. 2,300 139,725
-----------
FINANCIAL SERVICES -- 3.9%
American Express Company............................... 600 68,400
Bear Stearns Companies Incorporated.................... 300 17,062
Countrywide Credit Industries Incorporated............. 900 45,675
Lehman Brothers Holdings Incorporated.................. 800 62,050
Morgan Stanley, Dean Witter, Discover and Company...... 2,200 201,025
Norwest Corporation.................................... 200 7,475
Travelers Group Incorporated........................... 400 24,250
-----------
425,937
-----------
FOOD & BEVERAGES -- 3.8%
Coca-Cola Company...................................... 2,300 196,650
Heinz (H.J.) Company................................... 100 5,613
Interstate Bakeries Corporation........................ 2,800 92,925
PepsiCo Incorporated................................... 1,900 78,256
Quaker Oats Company.................................... 800 43,950
-----------
417,394
-----------
GAS EXPLORATION -- 0.6%
Apache Corporation..................................... 2,000 63,000
-----------
HOUSEHOLD PRODUCTS -- 1.2%
Gillette Company....................................... 400 22,675
</TABLE>
The accompanying notes are an integral part of the financial statements
F-26
<PAGE> 40
AGA SERIES TRUST
STATE STREET GLOBAL ADVISORS GROWTH EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
-------------------- ------- -----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
HOUSEHOLD PRODUCTS -- (CONTINUED)
Premark International Incorporated..................... 800 $ 25,800
Procter & Gamble Company............................... 900 81,956
-----------
130,431
-----------
INDUSTRIAL MACHINERY -- 1.4%
Deere & Company........................................ 2,100 111,037
Ingersoll Rand Company................................. 700 30,844
Sundstrand Corporation................................. 100 5,725
-----------
147,606
-----------
INSURANCE -- 4.4%
Allstate Corporation................................... 2,000 183,125
American General Corporation........................... 400 28,475
American International Group Incorporated.............. 400 58,400
Equitable Companies Incorporated....................... 1,100 82,431
Everest Reinsurance Holdings Incorporated.............. 200 7,688
Marsh & McLennan Companies Incorporated................ 1,800 108,787
Old Republic International Corporation................. 150 4,397
Torchmark Corporation.................................. 100 4,575
Travelers Property Casualty Corporation................ 100 4,288
-----------
482,166
-----------
INTERNATIONAL OIL -- 5.3%
Amoco Corporation...................................... 2,800 116,550
Chevron Corporation.................................... 700 58,144
Exxon Corporation...................................... 2,900 206,806
Mobil Corporation...................................... 1,800 137,925
Texaco Incorporated.................................... 1,000 59,687
-----------
579,112
-----------
LEISURE TIME -- 1.0%
Anchor Gaming(a)....................................... 100 7,763
Carnival Corporation................................... 1,400 55,475
Walt Disney Company.................................... 400 42,025
-----------
105,263
-----------
LIQUOR -- 0.7%
Anheuser Busch Companies Incorporated.................. 1,600 75,500
-----------
MANUFACTURING -- 3.4%
General Electric Company............................... 3,100 282,100
National Service Industries Incorporated............... 900 45,788
Trinity Industries Incorporated........................ 1,000 41,500
-----------
369,388
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-27
<PAGE> 41
AGA SERIES TRUST
STATE STREET GLOBAL ADVISORS GROWTH EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
-------------------- ------- -----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
OFFICE FURNISHINGS & SUPPLIES -- 1.0%
Xerox Corporation...................................... 1,100 $ 111,788
-----------
PAPER -- 0.1%
Fort James Corporation................................. 300 13,350
-----------
PETROLEUM SERVICES -- 0.3%
ENSCO International Incorporated....................... 100 1,738
Rowan Companies Incorporated(a)........................ 1,800 34,987
-----------
36,725
-----------
PUBLISHING -- 1.8%
Gannett Company Incorporated........................... 1,600 113,700
Valassis Communications Incorporated(a)................ 2,100 80,981
-----------
194,681
-----------
RETAIL GROCERY -- 0.7%
Kroger Company(a)...................................... 1,600 68,600
SUPERVALU Incorporated................................. 200 8,875
-----------
77,475
-----------
RETAIL TRADE -- 9.2%
American Greetings Corporation......................... 600 30,563
Costco Companies Incorporated(a)....................... 1,300 81,981
Dayton Hudson Corporation.............................. 1,500 72,750
Federated Department Stores Incorporated(a)............ 1,400 75,337
General Nutrition Companies Incorporated(a)............ 2,200 68,475
Home Depot Incorporated................................ 200 16,613
Lowe's Companies, Incorporated......................... 1,600 64,900
May Department Stores Company.......................... 1,500 98,250
Ross Stores Incorporated............................... 800 34,400
Sears Roebuck & Company................................ 2,000 122,125
Tandy Corporation...................................... 900 47,756
TJX Companies Incorporated............................. 5,800 139,925
Wal Mart Stores Incorporated........................... 2,500 151,875
-----------
1,004,950
-----------
SOFTWARE -- 6.9%
Autodesk Incorporated.................................. 2,000 77,250
BMC Software Incorporated(a)........................... 1,200 62,325
Cadence Design Systems Incorporated(a)................. 1,800 56,250
Computer Associates International Incorporated......... 1,450 80,566
Microsoft Corporation(a)............................... 3,500 379,312
</TABLE>
The accompanying notes are an integral part of the financial statements
F-28
<PAGE> 42
AGA SERIES TRUST
STATE STREET GLOBAL ADVISORS GROWTH EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
-------------------- ------- -----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
SOFTWARE -- (CONTINUED)
Network Associates Incorporated(a)..................... 200 $ 9,575
Oracle Systems Corporation(a).......................... 3,400 83,513
-----------
748,791
-----------
STEEL -- 0.9%
USX-US Steel Group Incorporated........................ 3,000 99,000
-----------
TELECOMMUNICATIONS -- 9.1%
Ameritech Corporation.................................. 2,700 121,163
AT&T Corporation....................................... 2,900 165,662
Bell Atlantic Corporation.............................. 2,920 133,225
BellSouth Corporation.................................. 1,200 80,550
General Instrument Corporation(a)...................... 1,200 32,625
GTE Corporation........................................ 700 38,938
Lucent Technologies Incorporated....................... 3,000 249,562
SBC Communications Incorporated........................ 2,176 87,040
US West Incorporated(a)................................ 1,900 89,300
-----------
998,065
-----------
TOBACCO -- 0.5%
Philip Morris Companies Incorporated................... 1,400 55,125
-----------
TRANSPORTATION -- 0.3%
Burlington Northern Santa Fe Corporation............... 300 29,456
-----------
TOTAL COMMON STOCKS -- (Cost $8,973,268).................... 10,612,237
-----------
MUTUAL FUNDS -- 3.0%
(Cost $324,845)
Dreyfus Cash Management Plus Fund...................... 324,845 324,845
-----------
TOTAL INVESTMENTS -- (COST $9,298,113*) -- 100.2%........... 10,937,082
-----------
OTHER ASSETS LESS LIABILITIES -- (0.2)%..................... (21,944)
-----------
NET ASSETS -- 100.0%........................................ $10,915,138
===========
</TABLE>
- ---------------
(a) Non-income producing security
* Aggregate cost for Federal tax purposes. Aggregate gross unrealized
appreciation for all securities in which there is an excess of value over
tax cost and aggregate gross unrealized depreciation for all securities in
which there is an excess of tax cost over value were $1,787,212 and
$148,243, respectively, resulting in net unrealized appreciation of
$1,638,969.
The accompanying notes are an integral part of the financial statements
F-29
<PAGE> 43
AGA SERIES TRUST
STATE STREET GLOBAL ADVISORS MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
-------------------- ---------- ----------
<S> <C> <C>
DISCOUNT NOTES -- 34.4%
FEDERAL AGENCIES -- 34.4%
Federal Farm Credit Bank
5.46%, 09/01/1998**.................................. $ 38,000 $ 37,643
5.50%, 09/01/1998**.................................. 160,000 159,927
7.85%, 08/28/1998**.................................. 500,000 501,674
Federal Home Loan Bank
5.04%, 08/20/1998**.................................. 65,000 64,917
5.46%, 07/30/1998**.................................. 300,000 298,680
5.50%, 08/05/1998**.................................. 100,000 99,465
5.80%, 09/18/1998**.................................. 130,000 130,032
5.97%, 08/27/1998**.................................. 25,000 24,996
Federal National Mortgage Association
5.46%, 09/17/1998**.................................. 50,000 49,409
7.85%, 09/10/1998**.................................. 30,000 30,101
----------
TOTAL DISCOUNT NOTES -- (Cost $1,396,844)................... 1,396,844
----------
COMMERCIAL PAPER -- 65.8%
AUTOMOBILES -- 3.5%
Daimler-Benz of North America Corporation
5.56%, 07/24/1998**.................................. 140,000 139,503
----------
BANK FOREIGN -- 9.8%
UBS Finance Incorporated
6.20%, 10/01/1998**.................................. 200,000 200,196
Woolwich PLC
5.52%, 09/22/1998**.................................. 200,000 197,455
----------
397,651
----------
BANK MULTINATIONAL -- 4.4%
Citibank NA
5.52%, 09/09/1998**.................................. 181,495 179,547
----------
BROKERAGE -- 11.3%
Merrill Lynch & Company Incorporated
5.44%, 07/02/1998**.................................. 225,000 224,966
Morgan Stanley Group Incorporated
5.845%, 07/15/1998**................................. 235,000 235,288
----------
460,254
----------
CAPITAL GOODS -- 5.5%
Emerson Electric
5.50%, 10/30/1998**.................................. 228,000 223,785
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-30
<PAGE> 44
AGA SERIES TRUST
STATE STREET GLOBAL ADVISORS MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
-------------------- ---------- ----------
<S> <C> <C>
COMMERCIAL PAPER -- (CONTINUED)
CHEMICALS -- 4.9%
Du Pont (E.I.) de Nemours & Company
5.49%, 07/10/1998**.................................. $ 200,000 $ 199,726
----------
FINANCE CAPTIVE -- 8.0%
Ford Motor Credit Company
5.625%, 12/15/1998**................................. 224,000 223,848
General Motors Acceptance Corporation
6.00%, 01/11/1999**.................................. 100,000 100,198
----------
324,046
----------
FINANCE NON-CAPTIVE DIVERSIFIED -- 11.1%
Associates Corporation North America
5.25%, 09/01/1998**.................................. 200,000 199,871
General Electric Capital Corporation
5.51%, 07/29/1998**.................................. 250,000 248,929
----------
448,800
----------
INSURANCE -- 7.3%
Prudential Funding Corporation
5.44%, 09/23/1998**.................................. 100,000 98,731
USAA Capital Corporation
5.52%, 08/20/1998**.................................. 200,000 198,466
----------
297,197
----------
TOTAL COMMERCIAL PAPER -- (Cost $2,670,509)................. 2,670,509
----------
REPURCHASE AGREEMENT -- 3.4%
(Cost $138,000)
Goldman, Sachs & Company, 5.80% dated 06/30/98 to be
repurchased at $138,022 on 07/01/98, collateralized by
$100,000 par value U.S. Treasury Bond, 9.25% with a
value of $142,050...................................... 138,000 138,000
----------
TOTAL INVESTMENTS -- (COST $4,205,353*) -- 103.6%........... 4,205,353
----------
OTHER ASSETS LESS LIABILITIES -- (3.6)%..................... (144,874)
----------
NET ASSETS -- 100.0%........................................ $4,060,479
==========
</TABLE>
- ---------------
* Aggregate cost for Federal tax purposes is identical.
** The rate shown reflects the current yield at June 30, 1998.
The accompanying notes are an integral part of the financial statements
F-31
<PAGE> 45
AGA SERIES TRUST
VAN KAMPEN AMERICAN CAPITAL EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
-------------------- -------- ----------
<S> <C> <C>
COMMON STOCKS -- 94.9%
ADVERTISING -- 1.6%
Interpublic Group of Companies Incorporated............ 700 $ 42,481
Omnicom Group Incorporated............................. 1,050 52,369
Outdoor Systems Incorporated(a)........................ 1,300 36,400
----------
131,250
----------
AEROSPACE -- 0.4%
Gulfstream Aerospace Corporation(a).................... 650 30,225
----------
AIR TRAVEL -- 2.5%
Alaska Air Group Incorporated(a)....................... 700 38,194
America West Holding Incorporated(a)................... 800 22,850
ASA Holdings Incorporated.............................. 400 19,850
Comair Holdings Incorporated........................... 500 15,438
Continental Airlines Incorporated(a)................... 750 45,656
US Airways Group Incorporated(a)....................... 750 59,437
----------
201,425
----------
APPAREL & TEXTILES -- 1.1%
Jones Apparel Group Incorporated(a).................... 1,100 40,219
Tommy Hilfiger Corporation............................. 400 25,000
Warnaco Group Incorporated............................. 200 8,488
Wolverine World Wide Incorporated...................... 700 15,181
----------
88,888
----------
AUTO PARTS -- 0.9%
Danaher Corporation.................................... 750 27,516
Federal-Mogul Corporation.............................. 400 27,000
Gentex Corporation(a).................................. 800 14,500
----------
69,016
----------
BANKS -- 2.3%
AmSouth Bancorporation................................. 375 14,742
Bank United Corporation................................ 125 5,984
Fifth Third Bancorp.................................... 225 14,175
Fleet Financial Group Incorporated..................... 450 37,575
National Commerce Bancorporation....................... 125 5,234
Northern Trust Corporation............................. 600 45,750
Silicon Valley Bancshares(a)........................... 200 7,119
Southtrust Corporation................................. 300 13,050
Star Banc Corporation.................................. 400 25,550
Zions Bancorp.......................................... 300 15,938
----------
185,117
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-32
<PAGE> 46
AGA SERIES TRUST
VAN KAMPEN AMERICAN CAPITAL EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
-------------------- -------- ----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
BROADCASTING -- 6.1%
Cablevision Systems Corporation(a)..................... 550 $ 45,925
Capstar Broadcasting Corporation(a).................... 1,000 25,125
Chancellor Media Corporation(a)........................ 3,400 168,831
Clear Channel Communications Incorporated(a)........... 1,000 109,125
Jacor Communications Incorporated(a)................... 700 41,300
Tele-Communications Liberty Media Group(a)............. 1,500 58,219
Univision Communications Incorporated(a)............... 300 11,175
Viacom Incorporated(a)................................. 650 37,862
----------
497,562
----------
BUILDING & RELATED -- 1.5%
Lowe's Companies Incorporated.......................... 2,400 97,350
Southdown Incorporated................................. 300 21,412
----------
118,762
----------
BUSINESS SERVICES -- 9.2%
Affiliated Computer Services Incorporated(a)........... 400 15,400
America Online Incorporated............................ 2,000 212,000
Apollo Group Incorporated(a)........................... 800 26,450
Cambridge Technology Partners Incorporated(a).......... 1,100 60,087
Comdisco Incorporated.................................. 600 11,400
Concord EFS Incorporated(a)............................ 300 7,838
Consolidated Graphics Incorporated(a).................. 425 25,075
Documentum Incorporated(a)............................. 150 7,200
Envoy Corporation(a)................................... 600 28,425
Information Management Resources Incorporated(a)....... 900 30,431
Keane Incorporated(a).................................. 1,100 61,600
Mastech Corporation(a)................................. 500 14,063
Paychex Incorporated................................... 750 30,516
Robert Half International Incorporated(a).............. 750 41,906
Saville Systems PLC ADR(a)............................. 750 37,594
Snyder Communications Incorporated(a).................. 400 17,600
SunGuard Data Systems Incorporated(a).................. 1,150 44,131
Yahoo! Incorporated(a)................................. 475 74,812
----------
746,528
----------
CHEMICALS -- 0.1%
Solutia Incorporated................................... 250 7,172
----------
COMMUNICATION SERVICES -- 1.1%
AirTouch Communications Incorporated(a)................ 1,500 87,656
----------
COMPUTERS & BUSINESS EQUIPMENT -- 6.2%
Dell Computer Corporation(a)........................... 3,723 345,541
EMC Corporation(a)..................................... 2,500 112,031
</TABLE>
The accompanying notes are an integral part of the financial statements
F-33
<PAGE> 47
AGA SERIES TRUST
VAN KAMPEN AMERICAN CAPITAL EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
-------------------- -------- ----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
COMPUTERS & BUSINESS EQUIPMENT -- (CONTINUED)
Lexmark International Group Incorporated(a)............ 500 $ 30,500
Storage Technology Corporation(a)...................... 400 17,350
----------
505,422
----------
DRUGS & HEALTH CARE -- 12.3%
Allegiance Corporation................................. 450 23,063
Arterial Vascular Engineering Incorporated(a).......... 350 12,513
Boston Scientific Corporation(a)....................... 300 21,488
ESC Medical Systems Limited(a)......................... 600 20,250
Guidant Corporation.................................... 250 17,828
HBO & Company.......................................... 8,200 289,050
Health Management Associates Incorporated(a)........... 1,575 52,664
McKesson Corporation................................... 550 44,687
Medicis Pharmaceutical Corporation(a).................. 350 12,775
MiniMed Incorporated(a)................................ 350 18,331
Mylan Laboratories Incorporated........................ 1,100 33,069
NBTY Incorporated(a)................................... 1,950 35,831
Omnicare Incorporated.................................. 1,450 55,281
Quintiles Transnational Corporation(a)................. 950 46,728
Rexall Sundown Incorporated(a)......................... 1,050 37,012
Safeskin Corporation(a)................................ 1,900 78,137
STERIS Corporation(a).................................. 500 31,797
Sybron International Corporation(a).................... 600 15,150
Total Renal Care Holdings Incorporated(a).............. 1,150 39,675
Twinlab Corporation(a)................................. 400 17,475
Universal Health Services Incorporated(a).............. 325 18,972
Warner-Lambert Company................................. 650 45,094
Watson Pharmaceuticals Incorporated(a)................. 600 28,013
----------
994,883
----------
ELECTRICAL EQUIPMENT -- 0.1%
Kuhlman Corporation.................................... 200 7,913
----------
ELECTRONICS -- 0.9%
Gemstar Group Limited(a)............................... 200 7,487
Uniphase Corporation(a)................................ 500 31,391
Vitesse Semiconductor Corporation(a)................... 1,000 30,875
----------
69,753
----------
FINANCIAL SERVICES -- 4.8%
AmeriCredit Corporation(a)............................. 200 7,137
Associates First Capital Corporation................... 250 19,219
Capital One Financial Corporation...................... 950 117,978
Federal Home Loan Mortgage Corporation................. 500 23,531
Finova Group Incorporated.............................. 1,150 65,119
</TABLE>
The accompanying notes are an integral part of the financial statements
F-34
<PAGE> 48
AGA SERIES TRUST
VAN KAMPEN AMERICAN CAPITAL EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
-------------------- -------- ----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
FINANCIAL SERVICES -- (CONTINUED)
Healthcare Financial Partners Incorporated(a).......... 500 $ 30,656
North Fork Bancorporation Incorporated................. 713 17,412
Providian Financial Corporation........................ 1,050 82,491
State Street Corporation............................... 400 27,800
----------
391,343
----------
HOUSEHOLD APPLIANCES & HOME FURNISHINGS -- 1.0%
Interface Incorporated................................. 1,100 22,206
Maytag Corporation..................................... 750 37,032
WestPoint Stevens Incorporated(a)...................... 650 21,450
----------
80,688
----------
INDUSTRIAL MACHINERY -- 1.7%
AES Corporation(a)..................................... 825 43,364
Tyco International Limited............................. 1,500 94,500
----------
137,864
----------
INSURANCE -- 2.0%
Annuity and Life Re (Holdings), Limited(a)............. 100 2,213
CMAC Investment Corporation............................ 300 18,450
Equitable Companies Incorporated....................... 200 14,825
Everest Reinsurance Holdings Incorporated.............. 300 11,531
Marsh & McLennan Companies Incorporated................ 638 38,529
Mercury General Corporation............................ 405 26,097
Protective Life Corporation............................ 400 14,675
SunAmerica Incorporated................................ 500 28,719
Transatlantic Holdings Incorporated.................... 75 5,798
----------
160,837
----------
INVESTMENT COMPANIES -- 0.5%
Lehman Brothers Holdings Incorporated.................. 550 42,659
----------
LEISURE TIME -- 1.2%
Bally Total Fitness Holding Corporation(a)............. 200 7,200
Carnival Corporation................................... 700 27,738
Royal Caribbean Cruises Limited........................ 600 47,700
SFX Entertainment Incorporated......................... 400 18,350
----------
100,988
----------
LIQUOR -- 0.2%
Canandaigua Wine Company Incorporated(a)............... 325 15,986
----------
MANUFACTURING -- 0.4%
Mail Well Holdings Incorporated(a)..................... 300 6,506
Sundstrand Corporation................................. 450 25,763
----------
32,269
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-35
<PAGE> 49
AGA SERIES TRUST
VAN KAMPEN AMERICAN CAPITAL EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
-------------------- -------- ----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
OFFICE FURNISHINGS & SUPPLIES -- 0.3%
Herman Miller Incorporated............................. 1,100 $ 26,744
----------
OIL & GAS -- 0.0%
Stolt Comex Seaway SA ADR(a)........................... 200 3,500
----------
PETROLEUM SERVICES -- 2.3%
Coflexip SA............................................ 375 22,922
Cooper Cameron Corporation(a).......................... 550 28,050
Global Industries Limited(a)........................... 600 10,125
Marine Drilling Companies Incorporated(a).............. 1,250 20,000
National-Oilwell Incorporated(a)....................... 600 16,088
Rowan Companies Incorporated(a)........................ 600 11,663
Stolt Comex Seaway SA.................................. 400 7,750
Varco International Incorporated(a).................... 2,200 43,587
Veritas DGC Incorporated(a)............................ 600 29,962
----------
190,147
----------
POLLUTION CONTROL -- 1.3%
Allied Waste Industries Incorporated(a)................ 1,600 38,400
American Disposal Services Incorporated(a)............. 375 17,578
Newpark Resources Incorporated(a)...................... 1,000 11,125
Republic Services Incorporated......................... 500 12,000
USA Waste Services Incorporated(a)..................... 600 29,625
----------
108,728
----------
PUBLISHING -- 1.1%
Meredith Corporation................................... 1,050 49,284
New York Times Company................................. 500 39,625
----------
88,909
----------
RETAIL GROCERY -- 2.3%
Fred Myer Incorporated(a).............................. 1,350 57,375
Safeway Incorporated(a)................................ 1,600 65,100
Whole Foods Market Incorporated(a)..................... 1,000 60,500
----------
182,975
----------
RETAIL TRADE -- 13.8%
Abercrombie & Fitch Company(a)......................... 950 41,800
Barnes & Noble Incorporated(a)......................... 700 26,206
Bed Bath & Beyond Incorporated(a)...................... 475 24,611
Best Buy Company Incorporated(a)....................... 2,600 93,925
Borders Group Incorporated(a).......................... 850 31,450
Costco Companies Incorporated(a)....................... 1,700 107,206
CVS Corporation........................................ 1,000 38,937
Dayton Hudson Corporation.............................. 1,700 82,450
Dollar General Corporation............................. 400 15,825
</TABLE>
The accompanying notes are an integral part of the financial statements
F-36
<PAGE> 50
AGA SERIES TRUST
VAN KAMPEN AMERICAN CAPITAL EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
-------------------- -------- ----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
RETAIL TRADE -- (CONTINUED)
Dollar Tree Stores Incorporated(a)..................... 638 $ 25,898
Family Dollar Stores Incorporated...................... 2,500 46,250
Finish Line Incorporated(a)............................ 500 14,063
Gap Incorporated....................................... 775 47,759
General Nutrition Companies Incorporated(a)............ 950 29,569
Goody's Family Clothing Incorporated(a)................ 300 16,463
Home Depot Incorporated................................ 650 53,991
Just For Feet Incorporated(a).......................... 700 19,950
K Mart Corporation(a).................................. 1,100 21,175
Kohl's Corporation(a).................................. 1,150 59,656
Linens 'N Things Incorporated(a)....................... 1,500 45,844
Pacific Sunwear of California(a)....................... 825 28,875
Proffitt's Incorporated(a)............................. 1,250 50,469
Ross Stores Incorporated............................... 525 22,575
Stage Stores Incorporated(a)........................... 475 21,494
Staples Incorporated(a)................................ 1,900 54,981
TJX Companies Incorporated............................. 3,000 72,375
Williams-Sonoma Incorporated(a)........................ 900 28,631
----------
1,122,428
----------
SAVINGS & LOAN -- 0.2%
Dime Bancorp Incorporated.............................. 625 18,711
----------
SOFTWARE -- 11.1%
Aspect Development Incorporated(a)..................... 200 15,125
Aspen Technology Incorporated(a)....................... 300 15,150
BMC Software Incorporated(a)........................... 3,000 155,812
CBT Group PLC ADR(a)................................... 1,700 90,950
Ciber Incorporated(a).................................. 1,100 41,800
Citrix Systems Incorporated(a)......................... 750 51,281
Compuware Corporation(a)............................... 3,750 191,719
Engineering Animation Incorporated(a).................. 212 12,932
JDA Software Group Incorporated(a)..................... 200 8,750
Legato Systems Incorporated(a)......................... 1,500 58,500
Lernout & Hauspie Speech Products(a)................... 800 47,750
Mercury Interactive Corporation(a)..................... 250 11,156
Peoplesoft Incorporated(a)............................. 900 42,300
Siebel Systems Incorporated(a)......................... 900 29,025
Sterling Software Incorporated(a)...................... 800 23,650
</TABLE>
The accompanying notes are an integral part of the financial statements
F-37
<PAGE> 51
AGA SERIES TRUST
VAN KAMPEN AMERICAN CAPITAL EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS -- (CONTINUED)
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SECURITY DESCRIPTION SHARES VALUE
-------------------- -------- ----------
<S> <C> <C>
COMMON STOCKS -- (CONTINUED)
SOFTWARE -- (CONTINUED)
Synopsys Incorporated(a)............................... 500 $ 22,875
Veritas Software Company(a)............................ 1,050 43,444
Visio Corporation(a)................................... 750 35,813
----------
898,032
----------
STEEL -- 0.2%
Mueller Industries Incorporated(a)..................... 350 12,994
----------
TELECOMMUNICATIONS -- 4.2%
Advanced Fibre Communications(a)....................... 900 36,056
Cisco Systems Incorporated(a).......................... 575 52,936
General Instrument Corporation e(a).................... 500 13,594
IDT Corporation(a)..................................... 300 9,019
Lucent Technologies Incorporated....................... 1,600 133,100
STAR Telecommunications Incorporated................... 350 7,831
Tekelec(a)............................................. 475 21,256
Tellabs Incorporated(a)................................ 650 46,556
Xylan Corporation(a)................................... 800 23,850
----------
344,198
----------
TOTAL COMMON STOCKS -- (Cost $5,639,590).................... 7,701,572
----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
REPURCHASE AGREEMENT -- 5.0%
(Cost $402,000)
State Street Bank and Trust Company, 5.00% dated
6/30/98, to be repurchased at $402,056 on 7/1/98,
collateralized by $405,000 par value U.S. Treasury
Bond, 6.25% due 6/30/2002, with a value at $414,239... $ 402,000 $ 402,000
----------
TOTAL INVESTMENTS -- (COST $6,041,590*) -- 99.9%............ 8,103,572
----------
OTHER ASSETS LESS LIABILITIES -- 0.1%....................... 8,665
----------
NET ASSETS -- 100.0%........................................ $8,112,237
==========
</TABLE>
- ---------------
(a) Non-income producing security
ADR -- American Depository Receipt
* Aggregate cost for Federal tax purposes. Aggregate gross unrealized
appreciation for all securities in which there is an excess of value over
tax cost and aggregate gross unrealized depreciation for all securities in
which there is an excess of tax cost over value were $2,121,938 and $59,956,
respectively, resulting in net unrealized appreciation of $2,061,982.
The accompanying notes are an integral part of the financial statements
F-38
<PAGE> 52
AGA SERIES TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
CREDIT SALOMON
SUISSE CREDIT BROTHERS
GROWTH SUISSE U.S.
AND INTERNATIONAL GOVERNMENT
INCOME EQUITY ELITEVALUE SECURITIES
----------- ------------- ----------- ----------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value........ $10,526,363 $5,275,895 $15,113,033 $5,344,763
Repurchase agreements, at value............ 2,244,000 249,000 0 2,158,000
----------- ---------- ----------- ----------
Total Investment(a) (Note 1)............... 12,770,363 5,524,895.. 15,113,033 7,502,763
Cash, including foreign currency, at
value.................................... 56 95,694 11,080 44
Receivable for securities sold............. 443,233 10,266 -- --
Receivable for currency sold............... -- 28 -- --
Receivable for forward contracts (Note
5)....................................... -- 6,055 -- --
Interest receivable........................ 38,127 14 (543) 39,791
Dividends receivable....................... 4,427 17,052 5,437 --
Receivable for fund shares sold............ 29,014 336 163,224 --
Receivable due from adviser (Note 2)....... 13,537 6,767 8,220 8,645
Prepaid insurance.......................... 6,009 6,009 6,009 6,009
----------- ---------- ----------- ----------
TOTAL ASSETS..................... 13,304,766 5,667,116 15,306,460 7,557,252
LIABILITIES
Payable for securities purchased........... 1,937,725 49,250 -- 2,391,095
Payable for fund shares repurchased........ 9,686 3,548 16,078 3,489
Payable for forward contracts (Note 5)..... -- 1,873 -- --
Trustees fees payable...................... 593 593 593 594
Accounts payable and accrued expenses...... 40,489 38,271 37,295 28,824
----------- ---------- ----------- ----------
TOTAL LIABILITIES................ 1,988,493 93,535 53,966 2,424,002
----------- ---------- ----------- ----------
NET ASSETS....................... $11,316,273 $5,573,581 $15,252,494 $5,133,250
=========== ========== =========== ==========
NET ASSETS CONSIST OF:
Par value (Note 4)....................... $ 8,144 $ 5,088 $ 9,604 $ 5,067
Paid-in capital (Note 4)................. 9,736,858 5,465,118.. 13,272,386 5,085,166
Accumulated net realized gain (loss) on
investments, futures, and foreign
currency translations................. 152,387 30,979 398,538 6,142
Net unrealized appreciation
(depreciation) of:
Investments........................... 1,418,884 68,592 1,571,966 36,875
Foreign currency...................... -- 3,804 -- --
----------- ---------- ----------- ----------
NET ASSETS....................... $11,316,273 $5,573,581 $15,252,494 $5,133,250
=========== ========== =========== ==========
Shares outstanding at end of period...... 814,354 508,774 960,394 506,678
Net asset value per share................ $ 13.90 $ 10.95 $ 15.88 $ 10.13
(a) Investments in securities and
repurchase agreements, at cost........ $11,351,479 $5,456,303 $13,541,067 $7,465,888
</TABLE>
The accompanying notes are an integral part of the financial statements
F-39
<PAGE> 53
AGA SERIES TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
STATE STATE
STREET STREET VAN KAMPEN
GLOBAL GLOBAL AMERICAN
ADVISORS ADVISORS CAPITAL
GROWTH MONEY EMERGING
EQUITY MARKET GROWTH
----------- ---------- ----------
<S> <C> <C> <C>
ASSETS
Investments in securities, at value..................... $10,937,082 $4,067,353 $7,701,572
Repurchase agreements, at value......................... -- 138,000 402,000
----------- ---------- ----------
Total Investment(a) (Note 1)............................ 10,937,082 4,205,353 8,103,572
Cash, including foreign currency, at value.............. 23,506 116 190
Receivable for securities sold.......................... 7,530 -- 59,385
Interest receivable..................................... -- 34,417 56
Dividends receivable.................................... 10,276 -- 1,859
Receivable for fund shares sold......................... 14,529 44,638 18,214
Receivable due from adviser (Note 2).................... 19,270 8,532 10,843
Prepaid insurance....................................... 6,009 6,009 6,009
----------- ---------- ----------
TOTAL ASSETS.................................. 11,018,202 4,299,065 8,200,128
LIABILITIES
Payable for securities purchased........................ 56,310 -- 38,050
Payable for fund shares repurchased..................... 8,443 208,630 8,526
Trustees fees payable................................... 593 593 1,677
Accounts payable and accrued expenses................... 37,718 29,363 39,638
----------- ---------- ----------
TOTAL LIABILITIES............................. 103,064 238,586 87,891
----------- ---------- ----------
NET ASSETS.................................... $10,915,138 $4,060,479 $8,112,237
=========== ========== ==========
NET ASSETS CONSIST OF:
Par value (Note 4).................................... $ 6,729 $ 40,605 $ 4,794
Paid-in capital (Note 4).............................. 8,623,225 4,019,874 6,082,958
Undistributed (distributions in excess of) net
investment income.................................. 4 -- (3,694)
Accumulated net realized gain (loss) on investments
and foreign currency translations.................. 646,211 -- (33,803)
Net unrealized appreciation (depreciation) of:
Investments........................................ 1,638,969 -- 2,061,982
----------- ---------- ----------
NET ASSETS.................................... $10,915,138 $4,060,479 $8,112,237
=========== ========== ==========
Shares outstanding at end of period................... 672,897 4,060,479 479,394
Net asset value per share............................. $ 16.22 $ 1.00 $ 16.92
(a) Investments in securities and repurchase
agreements, at cost................................ $ 9,298,114 $4,205,353 $6,041,589
</TABLE>
The accompanying notes are an integral part of the financial statements
F-40
<PAGE> 54
AGA SERIES TRUST
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
CREDIT SALOMON
SUISSE CREDIT BROTHERS
GROWTH SUISSE U.S.
AND INTERNATIONAL GOVERNMENT
INCOME EQUITY ELITEVALUE SECURITIES
-------- ------------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income.............................. $117,243 $ 5,454 $ 75,277 $146,625
Dividend income**............................ 21,365 43,930 90,396 --
-------- -------- ---------- --------
TOTAL INVESTMENT INCOME.............. 138,608 49,384 165,673 146,625
EXPENSES
Investment advisory fees (Note 2)............ 11,466 6,118 15,250 5,707
Investment sub-advisory fees (Note 2)........ 22,932 15,909 24,400 5,136
Sub-administration fees...................... 26,715 26,715 26,715 26,716
Audit fees................................... 6,289 6,565 6,829 5,461
Custodian fees and expenses.................. 28,469 30,984 13,708 13,829
Trustee's fees (Note 2)...................... 3,748 3,748 3,748 3,748
Transfer agent fees.......................... 2,012 2,007 2,492 2,045
Insurance expense............................ 1,013 1,013 1,013 1,013
Registration and filing fees................. -- -- -- 11
Printing expenses............................ 178 178 178 178
Miscellaneous expenses....................... 57 57 76 119
-------- -------- ---------- --------
Total operating expenses before
waivers and reimbursements......... 102,879 93,294 94,409 63,963
Fees waived and expenses reimbursed (Note
2)........................................ (69,970) (72,172) (56,669) (53,965)
-------- -------- ---------- --------
NET EXPENSES......................... 32,909 21,122 37,740 9,998
-------- -------- ---------- --------
NET INVESTMENT INCOME................ 105,699 28,262 127,933 136,627
-------- -------- ---------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENTS AND FOREIGN CURRENCY
Net realized gain (loss) on:
Investments and futures contracts......... 108,488 1,819 410,626 22,813
Foreign currency transactions............. -- 43,283 -- --
Net change in unrealized appreciation
(depreciation) of:
Investments............................... 672,237 208,808 641,141 (249)
Foreign currency.......................... -- (6,555) -- --
-------- -------- ---------- --------
NET REALIZED AND UNREALIZED
GAIN (LOSS).......................... 780,725 247,355 1,051,767 22,564
-------- -------- ---------- --------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................... $886,424 $275,617 $1,179,700 $159,191
======== ======== ========== ========
** Net of foreign withholding taxes of....... $ 62 $ 8,834 $ -- $ --
======== ======== ========== ========
</TABLE>
The accompanying notes are an integral part of the financial statements
F-41
<PAGE> 55
AGA SERIES TRUST
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
STATE STATE
STREET STREET VAN KAMPEN
GLOBAL GLOBAL AMERICAN
ADVISORS ADVISORS CAPITAL
GROWTH MONEY EMERGING
EQUITY MARKET GROWTH
---------- -------- ----------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest income......................................... $ 2,455 $158,246 $ 12,838
Dividend income......................................... 70,204 -- 7,524
---------- -------- ----------
TOTAL INVESTMENT INCOME......................... 72,659 158,246 20,362
EXPENSES
Investment advisory fees (Note 2)....................... 11,279 6,838 8,361
Investment sub-advisory fees (Note 2)................... 16,241 5,470 16,722
Sub-administration fees................................. 26,716 26,715 26,716
Audit fees.............................................. 6,828 5,259 6,038
Custodian fees and expenses............................. 30,025 15,488 32,142
Trustee's fees (Note 2)................................. 3,748 3,748 4,832
Transfer agent fees..................................... 1,982 1,970 1,951
Insurance expense....................................... 1,013 1,013 1,013
Registration and filing fees............................ -- -- 11
Printing expenses....................................... 178 178 178
Miscellaneous expenses.................................. -- 57 65
---------- -------- ----------
Total operating expenses before waivers and
reimbursements................................ 98,010 66,736 98,029
Fees waived and expenses reimbursed (Note 2)......... (72,026) (55,606) (74,156)
---------- -------- ----------
NET EXPENSES.................................... 25,984 11,130 23,873
---------- -------- ----------
NET INVESTMENT INCOME........................... 46,675 147,116 (3,511)
---------- -------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
AND FOREIGN CURRENCY
Net realized gain (loss) on:
Investments.......................................... 660,609 -- 128,773
Net change in unrealized appreciation (depreciation) of:
Investments.......................................... 553,205 -- 1,212,866
---------- -------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS)................. 1,213,814 -- 1,341,639
---------- -------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...... $1,260,489 $147,116 $1,338,128
========== ======== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements
F-42
<PAGE> 56
AGA SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CREDIT SUISSE CREDIT SUISSE
GROWTH AND INCOME INTERNATIONAL EQUITY ELITEVALUE
-------------------------- -------------------------- --------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 1998 1997
----------- ------------ ----------- ------------ ----------- ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
From operations:
Net investment income............ $ 105,699 $ 140,680 $ 28,262 $ 25,979 $ 127,933 $ 86,775
Net realized gain (loss) on:
Investments and futures........ 108,488 295,529 1,819 258,493 410,626 201,702
Foreign currency
transactions................. -- -- 43,283 (7,339) -- --
Net change in unrealized
appreciation (depreciation) of:
Investments and futures........ 672,237 522,340 208,808 (239,805) 641,141 621,441
Foreign currency............... -- -- (6,555) (11,172) -- --
----------- ---------- ---------- ---------- ----------- ----------
Net increase in net assets
resulting from
operations................. 886,424 958,549 275,617 26,156 1,179,700 909,918
Distributions to shareholders (Note
1):
From net investment income....... (108,396) (139,024) (16,424) (44,337) (127,947) (86,761)
In excess of net investment
income......................... -- -- -- (81,524) -- --
From net realized gains.......... -- (237,747) -- (174,639) -- (213,790)
Fund share transactions (Note 4)... 3,150,277 3,661,091 1,004,171 1,857,579 4,730,120 6,554,216
----------- ---------- ---------- ---------- ----------- ----------
Total increase in net
assets..................... 3,928,305 4,242,869 1,263,364 1,583,235 5,781,873 7,163,583
NET ASSETS:
Beginning of period................ 7,387,968 3,145,099 4,310,217 2,726,982 9,470,621 2,307,038
----------- ---------- ---------- ---------- ----------- ----------
End of period(a)................... $11,316,273 $7,387,968 $5,573,581 $4,310,217 $15,252,494 $9,470,621
=========== ========== ========== ========== =========== ==========
(a) Including undistributed
(overdistributed) net investment
income........................... $ -- $ 2,697 $ -- $ (11,838) $ -- $ 14
=========== ========== ========== ========== =========== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements
F-43
<PAGE> 57
AGA SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SALOMON BROTHERS U.S. STATE STREET GLOBAL STATE STREET GLOBAL
GOVERNMENT SECURITIES ADVISORS GROWTH EQUITY ADVISORS MONEY MARKET
-------------------------- -------------------------- --------------------------
SIX SIX SIX
MONTHS YEAR MONTHS YEAR MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1998 1997 1998 1997 1998 1997
----------- ------------ ----------- ------------ ----------- ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
From operations:
Net investment income............. $ 136,627 $ 159,857 $ 46,675 $ 69,786 $ 147,116 $ 159,789
Net realized gain (loss) on:
Investments..................... 22,813 23,149 660,609 622,295 -- --
Net change in unrealized
appreciation (depreciation) of
investments..................... (249) 38,894 553,205 676,633 -- --
---------- ---------- ----------- ---------- ----------- ----------
Net increase in net assets
resulting from operations... 159,191 221,900 1,260,489 1,368,714 147,116 159,789
Distributions to shareholders (Note
1):
From net investment income........ (136,766) (160,062) (46,671) (69,791) (147,116) (159,789)
From net realized gains........... -- -- -- (636,692) -- --
Fund share transactions (Note 4).... 1,124,927 1,577,343 2,374,214 3,244,409 (1,039,785) 3,809,240
---------- ---------- ----------- ---------- ----------- ----------
Total increase in net
assets...................... 1,147,352 1,639,181 3,588,032 3,906,640 (1,039,785) 3,809,240
NET ASSETS:
Beginning of period................. 3,985,898 2,346,717 7,327,106 3,420,466 5,100,264 1,291,024
---------- ---------- ----------- ---------- ----------- ----------
End of period(a).................... $5,133,250 $3,985,898 $10,915,138 $7,327,106 $ 4,060,479 $5,100,264
========== ========== =========== ========== =========== ==========
(a) Including undistributed
(overdistributed) net investment
income............................ $ -- $ 139 $ -- $ -- $ -- $ --
========== ========== =========== ========== =========== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements
F-44
<PAGE> 58
AGA SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
VAN KAMPEN AMERICAN
CAPITAL EMERGING GROWTH
---------------------------
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, DECEMBER 31,
1998 1997
----------- ------------
(UNAUDITED)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
From operations:
Net investment income.................................. $ (3,511) $ 8,180
Net realized gain (loss) on:
Investments and futures.............................. 128,773 (102,237)
Net change in unrealized appreciation (depreciation)
of:
Investments and futures.............................. 1,212,866 704,593
---------- ----------
Net increase in net assets resulting from
operations.......................................... 1,338,128 610,536
Distributions to shareholders (Note 1):
From net investment income............................. (481) (7,882)
From net realized gains................................ -- --
Fund share transactions (Note 4).......................... 1,276,056 3,014,043
---------- ----------
Total increase in net assets...................... 2,613,703 3,616,697
NET ASSETS:
Beginning of period....................................... 5,498,534 1,881,837
---------- ----------
End of period(a).......................................... $8,112,237 $5,498,534
========== ==========
(a) Including undistributed (overdistributed) net
investment income...................................... $ (3,694) $ 298
========== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements
F-45
<PAGE> 59
AGA SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CREDIT SUISSE GROWTH AND INCOME
----------------------------------------------------------------
SIX MONTHS YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
JUNE 30, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997 1996 1995*
------------- ------------ ------------ ------------
(UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSET VALUE
Net asset value, beginning of
period............................. $ 12.72 $11.04 $10.46 $10.00
------- ------ ------ ------
INVESTMENT OPERATIONS
Net investment income(1)............. 0.14 0.33 0.47 0.14
Net realized and unrealized gain
(loss)............................. 1.19 2.11 0.96 0.51
------- ------ ------ ------
Total from investment operations..... 1.33 2.44 1.43 0.65
------- ------ ------ ------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income................ (0.15) (0.33) (0.47) (0.14)
Net realized gains................... -- (0.43) (0.38) --
In excess of net realized gains...... -- -- -- (0.05)
------- ------ ------ ------
Total distributions to
shareholders....................... (0.15) (0.76) (0.85) (0.19)
------- ------ ------ ------
Net asset value, end of period....... $ 13.90 $12.72 $11.04 $10.46
======= ====== ====== ======
TOTAL RETURN......................... 10.37%(2) 22.33% 13.82% 6.57%(2)
RATIOS AND SUPPLEMENTAL DATA
Expenses to average net assets(3).... 0.72%(4) 0.62% 0.49% 0.12%(4)
Net investment income to average net
assets............................. 3.02% 2.87% 4.65% 6.99%
Portfolio turnover rate.............. 71% 191% 217% 75%
Net assets, end of period (000's).... $11,316 $7,388 $3,145 $2,136
</TABLE>
- ---------------
* The Credit Suisse Growth and Income Portfolio commenced operations on
October 20, 1995.
(1) Net investment income is after waiver of fees and reimbursement of certain
expenses by the Investment Adviser, the Sub-administrator and American
General Annuity Insurance Company, an affiliate of the Adviser (see Note 2
to the financial statements). If the Investment Adviser and the
Sub-administrator had not waived fees and American General Annuity Insurance
Company had not reimbursed expenses for the periods ended June 30, 1998,
December 31, 1997, December 31, 1996, and December 31, 1995, net investment
income (loss) per share would have been $0.06, $0.10, $0.00 and $(0.06) for
the Credit Suisse Growth and Income Portfolio, respectively.
(2) Total return represents aggregate total return for the period indicated and
is not annualized.
(3) If the Investment Adviser and the Sub-administrator had not waived fees and
American General Annuity Insurance Company had not reimbursed expenses for
the periods ended June 30, 1998, December 31, 1997, December 31, 1996, and
December 31, 1995, the ratio of operating expenses to average net assets
would have been 2.24%, 3.26%, 5.15% and 9.95% for the Credit Suisse Growth
and Income Portfolio, respectively.
(4) Annualized.
The accompanying notes are an integral part of the financial statements
F-46
<PAGE> 60
AGA SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CREDIT SUISSE INTERNATIONAL EQUITY
----------------------------------------------------------
SIX MONTHS YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
JUNE 30, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997 1996 1995*
------------- ------------ ------------ ------------
(UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSET VALUE
Net asset value, beginning of period....... $10.35 $10.67 $10.33 $10.00
------ ------ ------ ------
INVESTMENT OPERATIONS
Net investment income(1)................... 0.06 0.08 0.15 0.06
Net realized and unrealized gain (loss).... 0.57 0.37 1.56 0.33
------ ------ ------ ------
Total from investment operations........... 0.63 0.45 1.71 0.39
------ ------ ------ ------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income...................... (0.03) (0.12) (0.15) (0.06)
In excess of net investment income......... -- (0.20) -- --
Net realized gains......................... -- (0.45) (0.24) --
In excess of net realized gains............ -- -- (0.98) --
------ ------ ------ ------
Total distributions to shareholders........ (0.03) (0.77) (1.37) (0.06)
------ ------ ------ ------
Net asset value, end of period............. $10.95 $10.35 $10.67 $10.33
====== ====== ====== ======
TOTAL RETURN............................... 6.19%(2) 4.30% 16.50% 3.93%(2)
RATIOS AND SUPPLEMENTAL DATA
Expenses to average net assets(3).......... 0.86%(4) 0.77% 0.60% 0.12%(4)
Net investment income to average net
assets................................... 2.02% 0.71% 1.09% 2.89%
Portfolio turnover rate.................... 4% 6% 79% 2%
Net assets, end of period (000's).......... $5,574 $4,310 $2,727 $2,083
</TABLE>
- ---------------
* The Credit Suisse International Equity Portfolio commenced operations on
October 20, 1995.
(1) Net investment income is after waiver of fees and reimbursement of certain
expenses by the Investment Adviser, the Sub-administrator and American
General Annuity Insurance Company, an affiliate of the Adviser (see Note 2
to the financial statements). If the Investment Adviser and the
Sub-administrator had not waived fees and American General Annuity Insurance
Company had not reimbursed expenses for the periods ended June 30, 1998,
December 31, 1997, December 31, 1996, and December 31, 1995, net investment
income (loss) per share would have been $(0.08), $(0.29), $(1.25) and
$(0.18) for the Credit Suisse International Equity Portfolio, respectively.
(2) Total return represents aggregate total return for the period indicated and
is not annualized.
(3) If the Investment Adviser and the Sub-administrator had not waived fees and
American General Annuity Insurance Company had not reimbursed expenses for
the periods ended June 30, 1998, December 31, 1997, December 31, 1996, and
December 31, 1995, the ratio of operating expenses to average net assets
would have been 3.81%, 5.06%, 6.41% and 11.83% for the Credit Suisse
International Equity Portfolio, respectively.
(4) Annualized.
The accompanying notes are an integral part of the financial statements
F-47
<PAGE> 61
AGA SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
ELITEVALUE
-------------------------------------------
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
JUNE 30, DECEMBER 31, DECEMBER 31,
1998 1997 1996*
----------- ------------ ------------
(UNAUDITED)
<S> <C> <C> <C>
NET ASSET VALUE
Net asset value, beginning of period................... $ 14.38 $12.32 $10.00
------- ------ ------
INVESTMENT OPERATIONS
Net investment income(1)............................... 0.15 0.19 0.18
Net realized and unrealized gain (loss)................ 1.50 2.39 2.48
------- ------ ------
Total from investment operations....................... 1.65 2.58 2.66
------- ------ ------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income.................................. (0.15) (0.19) (0.18)
Net realized gains..................................... -- (0.33) (0.16)
------- ------ ------
Total distributions to shareholders.................... (0.15) (0.52) (0.34)
------- ------ ------
Net asset value, end of period......................... $ 15.88 $14.38 $12.32
======= ====== ======
TOTAL RETURN........................................... 11.50%(2) 21.08% 26.70%(2)
RATIOS AND SUPPLEMENTAL DATA
Expenses to average net assets(3)...................... 0.62%(4) 0.52% 0.36%(4)
Net investment income to average net assets............ 2.72% 1.58% 1.74%
Portfolio turnover rate................................ 21% 29% 21%
Net assets, end of period(000's)....................... $15,252 $9,471 $2,307
</TABLE>
- ---------------
* The EliteValue Portfolio commenced operations on January 2, 1996.
(1) Net investment income is after waiver of fees and reimbursement of certain
expenses by the Investment Adviser, the Sub-administrator and American
General Annuity Insurance Company, an affiliate of the Adviser (see Note 2
to the financial statements). If the Investment Adviser and the
Sub-administrator had not waived fees and American General Annuity Insurance
Company had not reimbursed expenses for the periods ended June 30, 1998,
December 31, 1997 and December 31, 1996, net investment income (loss) per
share would have been $0.09, $0.00 and $(0.54) for the EliteValue Portfolio,
respectively.
(2) Total return represents aggregate total return for the period indicated and
is not annualized.
(3) If the Investment Adviser and the Sub-administrator had not waived fees and
American General Annuity Insurance Company had not reimbursed expenses for
the periods ended June 30, 1998, December 31, 1997 and December 31, 1996,
the ratio of operating expenses to average net assets would have been 1.55%,
2.76% and 7.45% for the EliteValue Portfolio, respectively.
(4) Annualized.
The accompanying notes are an integral part of the financial statements
F-48
<PAGE> 62
AGA SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SALOMON BROTHERS U.S. GOVERNMENT SECURITIES
-------------------------------------------
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
JUNE 30, DECEMBER 31, DECEMBER 31,
1998 1997 1996*
----------- ------------- -------------
(UNAUDITED)
<S> <C> <C> <C>
NET ASSET VALUE
Net asset value, beginning of period..................... $10.07 $ 9.79 $10.00
------ ------ ------
INVESTMENT OPERATIONS
Net investment income(1)................................. 0.29 0.57 0.53
Net realized and unrealized gain (loss).................. 0.06 0.28 (0.21)
------ ------ ------
Total from investment operations......................... 0.35 0.85 0.32
------ ------ ------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income.................................... (0.29) (0.57) (0.53)
------ ------ ------
Total distributions to shareholders...................... (0.29) (0.57) (0.53)
------ ------ ------
Net asset value, end of period........................... $10.13 $10.07 $ 9.79
====== ====== ======
TOTAL RETURN............................................. 3.53%(2) 8.89% 3.40%(2)
RATIOS AND SUPPLEMENTAL DATA
Expenses to average net assets(3)........................ 0.44%(4) 0.35% 0.22%(4)
Net investment income to average net assets.............. 6.42% 6.25% 5.91%
Portfolio turnover rate.................................. 11% 615% 297%
Net assets, end of period (000's)........................ $5,133 $3,986 $2,347
</TABLE>
- ---------------
* The Salomon Brothers U.S. Government Securities Portfolio commenced
operations on February 6, 1996.
(1) Net investment income is after waiver of fees and reimbursement of certain
expenses by the Investment Adviser, the Sub-administrator and American
General Annuity Insurance Company, an affiliate of the Adviser (see Note 2
to the financial statements). If the Investment Adviser and the
Sub-administrator had not waived fees and American General Annuity Insurance
Company had not reimbursed expenses for the periods ended June 30, 1998,
December 31, 1997, and December 31, 1996, net investment income (loss) per
share would have been $0.18, $0.28 and $0.10 for the Salomon Brothers U.S.
Government Securities Portfolio, respectively.
(2) Total return represents aggregate total return for the period indicated and
is not annualized.
(3) If the Investment Adviser and the Sub-administrator had not waived fees and
American General Annuity Insurance Company had not reimbursed expenses for
the periods ended June 30, 1998, December 31, 1997, and December 31, 1996,
the ratio of operating expenses to average net assets would have been 2.80%,
4.84% and 5.26% for the Salomon Brothers U.S. Government Securities
Portfolio, respectively.
(4) Annualized.
The accompanying notes are an integral part of the financial statements
F-49
<PAGE> 63
AGA SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
STATE STREET GLOBAL ADVISORS GROWTH EQUITY
----------------------------------------------------------------
SIX MONTHS YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
JUNE 30, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997 1996 1995*
------------- ------------ ------------ ------------
(UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSET VALUE
Net asset value, beginning of
period............................. $ 14.07 $11.85 $10.31 $10.00
------- ------ ------ ------
INVESTMENT OPERATIONS
Net investment income(1)............. 0.07 0.17 0.20 0.05
Net realized and unrealized gain
(loss)............................. 2.15 3.56 1.99 0.31
------- ------ ------ ------
Total from investment operations..... 2.22 3.73 2.19 0.36
------- ------ ------ ------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income................ (0.07) (0.17) (0.20) (0.05)
Net realized gains................... -- (1.34) (0.45) --
------- ------ ------ ------
Total distributions to
shareholders....................... (0.07) (1.51) (0.65) (0.05)
------- ------ ------ ------
Net asset value, end of period....... $ 16.22 $14.07 $11.85 $10.31
======= ====== ====== ======
TOTAL RETURN......................... 15.83%(2) 31.67% 21.36% 3.57%(2)
RATIOS AND SUPPLEMENTAL DATA
Expenses to average net assets(3).... 0.58%(4) 0.48% 0.39% 0.12%(4)
Net investment income to average net
assets............................. 1.03% 1.34% 1.80% 2.46%
Portfolio turnover rate.............. 73% 111% 89% 9%
Net assets, end of period (000's).... $10,915 $7,327 $3,420 $2,073
</TABLE>
- ---------------
* The State Street Global Advisors Growth Equity Portfolio commenced
operations on October 20, 1995.
(1) Net investment income is after waiver of fees and reimbursement of certain
expenses by the Investment Adviser, the Sub-administrator and American
General Annuity Insurance Company, an affiliate of the Adviser (see Note 2
to the financial statements). If the Investment Adviser and the
Sub-administrator had not waived fees and American General Annuity Insurance
Company had not reimbursed expenses for the periods ended June 30, 1998,
December 31, 1997, December 31,1996 and December 31, 1995, the net
investment income (loss) per share would have been $(0.03), $(0.11), $(0.29)
and $(0.15) for the State Street Global Advisor Growth Equity Portfolio,
respectively.
(2) Total return represents aggregate total return for the period indicated and
is not annualized.
(3) If the Investment Adviser and the Sub-administrator had not waived fees and
American General Annuity Insurance Company had not reimbursed expenses for
the periods ended June 30, 1998, December 31, 1997, December 31, 1996 and
December 31, 1995, the ratio of operating expenses to average net assets
would have been 2.17%, 3.29%, 4.83% and 9.94% for the State Street Global
Advisor Growth Equity Portfolio, respectively.
(4) Annualized.
The accompanying notes are an integral part of the financial statements
F-50
<PAGE> 64
AGA SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
STATE STREET GLOBAL ADVISORS MONEY MARKET
--------------------------------------------------------
SIX MONTHS YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
JUNE 30, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997 1996 1995*
----------- ------------ ------------ ------------
(UNAUDITED)
<S> <C> <C> <C> <C>
NET ASSET VALUE
Net asset value, beginning of period........ $ 1.00 $ 1.00 $ 1.00 $1.00
------ ------ ------ -----
INVESTMENT OPERATIONS
Net investment income(1).................... 0.03 0.05 0.05 0.01
------ ------ ------ -----
Total from investment operations............ 0.03 0.05 0.05 0.01
------ ------ ------ -----
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income....................... (0.03) (0.05) (0.05) (0.01)
------ ------ ------ -----
Total distributions to shareholders......... (0.03) (0.05) (0.05) (0.01)
------ ------ ------ -----
Net asset value, end of period.............. $ 1.00 $ 1.00 $ 1.00 $1.00
====== ====== ====== =====
TOTAL RETURN................................ 2.68%(2) 5.50% 5.19% 1.17%(2)
RATIOS AND SUPPLEMENTAL DATA
Expenses to average net assets(3)........... 0.41%(4) 0.32% 0.29% 0.12%(4)
Net investment income to average net
assets.................................... 5.38% 5.41% 5.23% 5.25%
Net assets, end of period (000's)........... $4,060 $5,100 $1,291 $ 126
</TABLE>
- ---------------
* The State Street Global Advisors Money Market Portfolio commenced operations
on October 10, 1995.
(1) Net investment income is after waiver of fees and reimbursement of certain
expenses by the Investment Adviser, the Sub-administrator and American
General Annuity Insurance Company, an affiliate of the Adviser (see Note 2
to the financial statements). If the Investment Adviser and the
Sub-administrator had not waived fees and American General Annuity Insurance
Company had not reimbursed expenses for the periods ended June 30, 1998,
December 31, 1997, December 31, 1996, and December 31, 1995, net investment
income (loss) per share would have been $0.01, $0.03, $(0.08) and $(0.35)
for the State Street Global Advisors Money Market Portfolio, respectively.
(2) Total return represents aggregate total return for the period indicated and
is not annualized.
(3) If the Investment Adviser and the Sub-administrator had not waived fees and
American General Annuity Insurance Company had not reimbursed expenses for
the periods ended June 30, 1998, December 31, 1997, December 31, 1996, and
December 31, 1995, the ratio of operating expenses to average net assets
would have been 2.44%, 4.17%, 14.15% and 161.83% for the State Street Global
Advisors Money Market Portfolio, respectively.
(4) Annualized.
The accompanying notes are an integral part of the financial statements
F-51
<PAGE> 65
AGA SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
VAN KAMPEN AMERICAN
CAPITAL EMERGING GROWTH
-------------------------------------------
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
JUNE 30, DECEMBER 31, DECEMBER 31,
1998 1997 1996*
----------- ------------ ------------
(UNAUDITED)
<S> <C> <C> <C>
NET ASSET VALUE
Net asset value, beginning of period................... $13.87 $11.54 $10.00
------ ------ ------
INVESTMENT OPERATIONS
Net investment income(1)............................... (0.01) 0.03 0.05
Net realized and unrealized gain (loss)................ 3.06 2.33 1.86
------ ------ ------
Total from investment operations....................... 3.05 2.36 1.91
------ ------ ------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income.................................. -- (0.03) (0.05)
Net realized gains..................................... -- -- (0.32)
------ ------ ------
Total distributions to shareholders.................... -- (0.03) (0.37)
------ ------ ------
Net asset value, end of period......................... $16.92 $13.87 $11.54
====== ====== ======
TOTAL RETURN........................................... 22.05%(2) 20.45% 19.06%(2)
RATIOS AND SUPPLEMENTAL DATA
Expenses to average net assets(3)...................... 0.71%(4) 0.62% 0.46%(4)
Net investment income to average net assets............ 0.61% 0.23% 0.40%
Portfolio turnover rate................................ 57% 107% 154%
Net assets, end of period (000's)...................... $8,112 $5,499 $1,882
</TABLE>
- ---------------
* The Van Kampen American Capital Emerging Growth Portfolio commenced
operations on January 2, 1996.
(1) Net investment income is after waiver of fees and reimbursement of certain
expenses by the Investment Adviser, the Sub-administrator and American
General Annuity Insurance Company, an affiliate of the Adviser (see Note 2
to the financial statements). If the Investment Adviser and the
Sub-administrator had not waived fees and American General Annuity Insurance
Company had not reimbursed expenses for the periods ended June 30, 1998,
December 31, 1997 and December 31, 1996, net investment income (loss) per
share would have been $(0.16), $(0.42) and $(1.29) for the Van Kampen
American Capital Emerging Growth Portfolio, respectively.
(2) Total return represents aggregate total return for the period indicated and
is not annualized.
(3) If the Investment Adviser and the Sub-administrator had not waived fees and
American General Annuity Insurance Company had not reimbursed expenses for
the periods ended June 30, 1998, December 31, 1997 and December 31, 1996,
the ratio of operating expenses to average net assets would have been 2.93%,
5.65% and 11.22% for the Van Kampen American Capital Emerging Growth
Portfolio, respectively.
(4) Annualized.
The accompanying notes are an integral part of the financial statements
F-52
<PAGE> 66
AGA SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998
(UNAUDITED)
AGA Series Trust, formerly WNL Series Trust, (the "Trust") is an open-end,
diversified series management investment company established as a Massachusetts
business trust under a Declaration of Trust dated December 12, 1994, as amended
April 19, 1995 and May 1, 1998. The Trust currently offers shares of beneficial
interest in seven series (the "Portfolios"), each of which has a different
investment objective and represents the entire interest in a separate portfolio
of investments. The Portfolios are: Credit Suisse Growth and Income Portfolio,
formerly BEA Growth and Income Portfolio, (the "Growth and Income Portfolio"),
Credit Suisse International Equity Portfolio (the "International Equity
Portfolio"), EliteValue Portfolio, formerly EliteValue Asset Allocation
Portfolio, (the "EliteValue Portfolio"), Salomon Brothers U.S. Government
Securities Portfolio (the "U.S. Government Securities Portfolio"), State Street
Global Advisors Growth Equity Portfolio, formerly Global Advisors Growth Equity
Portfolio, (the "Growth Equity Portfolio"), State Street Global Advisors Money
Market Portfolio, formerly Global Advisors Money Market Portfolio, (the "Money
Market Portfolio"), and Van Kampen American Capital Emerging Growth Portfolio
(the "Emerging Growth Portfolio"). The Portfolios are currently available to the
public only through variable annuity contracts ("VA Contracts") issued by
American General Annuity Insurance Company, formerly Western National Life
Insurance Company, (the "Life Company"), a wholly-owned subsidiary of American
General Corporation.
1. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from these estimates. The following is a
summary of significant accounting policies followed by the Trust in the
preparation of its financial statements in accordance with generally accepted
accounting principles.
(a) Valuation of Securities -- All securities are valued as of the close of
regular trading on the New York Stock Exchange (normally 4:00 p.m. New York
time). Securities traded on a national securities exchange or quoted on the
NASDAQ National Market System are valued at their last-reported sale price on
the principal exchange or reported by NASDAQ or, if there is no reported sale,
and in the case of over-the-counter securities not included in the NASDAQ
National Market System, at a bid price estimated by a broker or dealer. Debt
securities, including zero-coupon securities, and certain foreign securities
will be valued by a pricing service approved by the Trustees. Other foreign
securities will be valued by the Trust's custodian. The value of a foreign
security is determined in its national currency as of the close of trading on
the foreign exchange on which it is traded or as of 4:00 p.m. New York time, if
that is earlier, and that value is then converted into its U.S. dollar
equivalent at the foreign exchange rate in effect at noon, New York time, on the
day the value of the foreign security is determined. Securities for which
current market quotations are not readily available and all other assets are
valued at fair value as determined in good faith by the Trustees.
The Money Market Portfolio values all securities using the amortized cost
method which approximates market value. Under this method, which does not take
into account unrealized securities gains or losses, an instrument is initially
valued at its cost and thereafter assumes a constant amortization or accretion
to maturity of any discount or premium.
(b) Repurchase Agreements -- A repurchase agreement is a contract under
which the Portfolio acquires a security for a relatively short period (usually
not more than a week) subject to the obligation of the seller to repurchase and
the Portfolio to resell such security at a fixed time and price. The collateral
for such agreements will be held by the Portfolio's custodian. The Portfolio
will enter into repurchase agreements only with banks and broker-dealers that
have been determined to be creditworthy by the Trust's Board of Trustees. The
seller under a repurchase agreement would be required to maintain the value of
the collateral subject to
F-53
<PAGE> 67
AGA SERIES TRUST
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
the repurchase agreement at not less than the repurchase price. Default by the
seller would expose the Portfolio to possible loss because of adverse market
action or delay in connection with the disposition of the underlying collateral.
In addition, if bankruptcy proceedings are commenced with respect to the seller
of the obligations, the Portfolio may be delayed or limited in its ability to
sell the collateral.
(c) When Issued Transactions -- The Portfolios may enter into a when-issued
transaction for the purpose of acquiring portfolio securities and not for the
purpose of leverage, although a Portfolio may dispose of a when-issued security
or forward commitment prior to settlement if it is deemed appropriate to do so.
In such transactions, delivery of the securities occurs beyond the normal
settlement periods, but no payment or delivery is made by, and no interest
accrues to, the Portfolios prior to the actual delivery or payment by the other
party to the transaction. Due to fluctuations in the value of securities
purchased on a when-issued or a delayed-delivery basis, the yields obtained on
such securities may be higher or lower than the yields available in the market
on the dates when the investments are actually delivered to the buyers.
(d) Dollar Roll Transactions -- Certain Portfolios seeking a high level of
current income may enter into dollar rolls in which the Portfolio sells
securities (usually Mortgage-Backed Securities) and simultaneously to purchase
contracts, typically in 30 to 60 days, substantially similar but not identical,
securities on a specified future date through a TBA purchase commitment. The
proceeds of the initial sale of securities in such transaction may be used to
purchase long-term securities which will be held during the dollar roll period.
During the roll period the Portfolio foregoes principal and interest paid on the
security sold at the beginning of the roll period. The Portfolio may be
compensated by either, the difference between the current sale price and the
forward price for the future purchase as well as by the interest earned on the
cash proceeds of the initial sale or a set fee determined at the time the
transaction is entered into or a combination of these two methods. Dollar rolls
involve the risk that the market value of the securities the Portfolio is
obligated to repurchase under the agreement may decline below the repurchase
price.
(e) TBA Purchase Commitments -- Certain Portfolios may enter into "TBA" (to
be announced) purchase commitments to purchase securities for a fixed unit price
at a future date beyond customary settlement time. Although the unit price has
been established, the principal value has not been finalized. The Portfolio
holds, and maintains until settlement date, cash or high-grade debt obligations
in an amount sufficient to meet the purchase price, or the portfolio may enter
into offsetting contracts for the forward sale of other securities it owns.
Income on the securities will not be earned until settlement date. TBA purchase
commitments may be considered securities in themselves, and involve a risk of
loss if the value of the security to be purchased declines prior to the
settlement date, which risk is in addition to the risk of decline in the value
of the Portfolio's other assets. Unsettled TBA purchase commitments are valued
at the current market value of the underlying securities, according to the
procedures described under "Valuation of Securities" above. The portfolio may
dispose of the commitment prior to settlement if the Advisor deems it
appropriate to do so.
(f) Foreign Investments -- Certain Portfolios may invest in securities of
foreign issuers. There are certain risks involved in investing in foreign
securities, including those resulting from fluctuations in currency exchange
rates, devaluation of currencies, future political or economic developments and
the possible imposition of currency exchange blockages or other foreign
governmental laws or restrictions, reduced availability of public information
concerning issuers, and the fact that foreign companies are not generally
subject to uniform accounting, auditing and financial reporting standards or to
other regulatory practices and requirements comparable to those applicable to
domestic companies. The Portfolios' foreign investments may be less liquid and
their prices may be more volatile than comparable investments in securities of
U.S. companies.
(g) Forward Foreign Currency Exchange Contracts -- Certain Portfolios may
engage in forward foreign currency exchange contracts ("forward contracts").
Portfolios may enter into forward contracts to convert U.S. Dollars to and from
different foreign currencies. A Portfolio can either enter into these
transactions on a spot (i.e., cash) basis at the spot rate prevailing in the
foreign currency exchange market, or use forward
F-54
<PAGE> 68
AGA SERIES TRUST
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
contracts to purchase or sell foreign currencies. Forward foreign currency
contracts are valued at the exchange rate and are marked-to-market daily. The
change in the market value is recorded by the Portfolio as an unrealized gain or
loss. When the contract is closed, the Portfolio records a realized gain or loss
equal to the difference between the value of the contract at the time it was
opened and the value at the time it was closed.
A forward contract is an obligation by a Portfolio to purchase or sell a
specific currency at a future date. The Portfolio maintains with its custodian,
in a segregated account, high-grade liquid assets in an amount at least equal to
its obligations under each contract. Neither spot transactions nor forward
contracts eliminate fluctuations in the prices of the Portfolio's securities or
in foreign exchange rates, or prevent loss if the prices of these securities
should decline.
A Portfolio may enter into forward contracts for hedging purposes as well
as for non-hedging purposes. Transactions are entered into for hedging purposes
in an attempt to protect against changes in foreign currency exchange rates that
would adversely affect a portfolio position or an anticipated portfolio
position. Although these transactions tend to minimize the risk of loss due to a
decline in the value of the hedged currency, at the same time they tend to limit
any potential gain that might be realized should the value of the hedged
currency increase.
A Portfolio may enter into forward contracts for other than hedging
purposes which present greater profit potential but also involves increased
risk.
(h) Foreign Currency Translations -- The books and records of the
Portfolios are maintained in U.S. dollars. Foreign currencies, investments and
other assets and liabilities are translated into U.S. dollars at the exchange
rates prevailing at the end of the period, and purchases and sales of investment
securities, income and expenses are translated on the respective dates of such
transactions. The eligible Portfolios do not isolate that portion of the results
of operations from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held. Such
changes and fluctuations are included with net realized and unrealized gain or
loss from investments. Foreign exchange gain (loss) is treated as ordinary
income for federal income tax purposes to the extent constituting "Section 988
Transactions" pursuant to the Internal Revenue Code, including currency gains
(losses) related to the sale of debt securities, forward foreign currency
exchange contracts, payments of liabilities, and collections of receivables.
(i) Futures Contracts -- Certain Portfolios may enter into futures
contracts. Upon entering into a futures contract, the Portfolio is required to
deposit with the broker an amount of cash or cash equivalents equal to a certain
percentage of the contract amount. This is known as the initial margin.
Subsequent payments ("variation margin") are made or received by the Portfolio
each day, depending on the daily fluctuation of the value of the contract. The
daily changes in the contract are recorded as unrealized gains or losses. The
Portfolio recognizes a realized gain or loss when the contract is closed.
The use of futures contracts as a hedging device involves several risks.
The change in value of futures contracts primarily corresponds with the value of
their underlying instruments, which may not correlate with the change in value
of the hedged investments. In addition, the Portfolio may not be able to enter
into a closing transaction because of an illiquid secondary market.
(j) Securities Transactions and Investment Income -- Securities
transactions are recorded as of the trade date. Realized gains and losses on
sales of investments are recorded on the identified cost basis. Interest income
is recorded daily on the accrual basis. Dividend income is recorded on the
ex-date.
(k) Expense Allocation -- Expenses with respect to any two or more
Portfolios may be allocated in proportion to the net assets of the respective
Portfolios except where allocations of direct expenses can otherwise be fairly
made.
F-55
<PAGE> 69
AGA SERIES TRUST
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
(l) Dividends and Distributions -- The Money Market Portfolio will declare
a dividend of its net ordinary income daily and distribute such dividends
monthly. Each of the other Portfolios will declare and distribute dividends from
net ordinary income quarterly and will distribute its net realized capital
gains, if any, at least annually.
Income dividends and capital gain distributions are determined in
accordance with Federal tax regulations which may differ from generally accepted
accounting principles. These differences are primarily due to differing
treatments of income and gains on various investment securities held by the
Portfolios, timing differences and differing characterization of distributions
made by the Portfolios. As a result, net investment income (loss) and net
realized gain (loss) on investment transactions for a reporting period may
differ significantly from distributions during such period. Accordingly, each
Portfolio may periodically make reclassifications among certain of its capital
accounts without impacting the net asset value of the Portfolio.
(m) Federal Income Taxes -- Each Portfolio of the Trust intends to qualify
and elects to be treated as a regulated investment company that is taxed under
the rules of Subchapter M of the Internal Revenue Code. As an electing regulated
investment company, a Portfolio will not be subject to federal income tax on its
net ordinary income and net realized capital gains to the extent such income and
gains are distributed to the separate account of the Life Company that holds its
shares.
2. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under an Investment Advisory Agreement (the "Agreement"), AGA Investment
Advisory Services, Inc., formerly WNL Investment Advisory Services, Inc., (the
"Adviser"), a wholly-owned subsidiary of American General Corporation, manages
the business and affairs of the Portfolios and the Trust, subject to the control
of the Trustees. Under the Agreement, the Adviser is obligated to formulate a
continuing program for the investment of the assets of each Portfolio of the
Trust in a manner consistent with each Portfolio's investment objectives,
policies and restrictions and to determine from time to time securities to be
purchased, sold, retained or lent by the Trust and to implement those decisions.
The Agreement also provides that the Adviser shall provide such services
required for effective administration of the Trust.
As full compensation for its services under the Agreement, the Trust will
pay the Adviser a monthly fee at the following rates based on the average daily
net assets of each Portfolio:
<TABLE>
<S> <C>
Credit Suisse Growth and Income............................. 0.75%
Credit Suisse International Equity.......................... 0.90%
EliteValue.................................................. 0.65%
Salomon Brothers U.S. Government Securities................. 0.475%
State Street Global Advisors Growth Equity.................. 0.61%
State Street Global Advisors Money Market................... 0.45%
Van Kampen American Capital Emerging Growth................. 0.75%
</TABLE>
Through April 30, 1998 the Adviser waived that portion of its advisory fee
in excess of the amount payable by the Adviser to each Sub-adviser pursuant to
the respective sub-advisory agreements for each Portfolio. Beginning on May 1,
1998 the advisory fees are being charged as shown in table above.
F-56
<PAGE> 70
AGA SERIES TRUST
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
The Adviser pays each Sub-adviser the following fees:
<TABLE>
<S> <C>
Credit Suisse Growth and Income............................. 0.50%
Credit Suisse International Equity.......................... 0.65%
EliteValue.................................................. 0.40%
Salomon Brothers U.S. Government Securities................. 0.225%
State Street Global Advisors Growth Equity.................. 0.36%
State Street Global Advisors Money Market................... 0.20%
Van Kampen American Capital Emerging Growth................. 0.50%
</TABLE>
In addition, the Life Company, an affiliate of the Adviser, has undertaken
to bear until May 1, 1999 all operating expenses of each Portfolio, excluding
the compensation of the Adviser, that exceed 0.12% of each Portfolio's average
daily net assets. The Life Company has reserved the right to withdraw or modify
its policy of expense reimbursement for the Trust.
In accordance with each Portfolio's investment objective and policies and
under the supervision of the Adviser and the Trust's Board of Trustees, each
Portfolio's Sub-adviser is responsible for the day-to-day investment management
of the Portfolio, to make investment decisions for the Portfolio and to place
orders on behalf of the Portfolio to effect the investment decisions made as
provided in separate Sub-advisory Agreements. The Sub-advisers to the Portfolios
are: BEA Associates for the Growth and Income Portfolio; Credit Suisse Asset
Management, Ltd. for the International Equity Portfolio; OpCap Advisors for the
EliteValue Portfolio; Salomon Brothers Asset Management Inc. for the U.S.
Government Securities Portfolio; State Street Global Advisors for the Growth
Equity and Money Market Portfolios; and Van Kampen American Capital Asset
Management, Inc. for the Emerging Growth Portfolio. The Sub-advisers receive
their fees directly from the Adviser, and receive no compensation from the
Trust.
The Trust's Sub-administrator, custodian, transfer and dividend-paying
agent is State Street Bank and Trust Company.
For the six months ended June 30, 1998, the Adviser waived advisory fees
and the Life Company reimbursed operating expenses as follows:
<TABLE>
<CAPTION>
ADVISORY
FEES EXPENSES
WAIVED REIMBURSED TOTAL
-------- ---------- -------
<S> <C> <C> <C>
Credit Suisse Growth and Income........................ $6,992 $62,978 $69,970
Credit Suisse International Equity..................... 3,842 68,330 72,172
EliteValue............................................. 9,231 47,438 56,669
Salomon Brothers U.S. Government Securities............ 3,584 50,381 53,965
State Street Global Advisors Growth Equity............. 6,950 65,076 72,026
State Street Global Advisors Money Market.............. 4,461 51,145 55,606
Van Kampen American Capital Emerging Growth............ 5,221 68,935 74,156
</TABLE>
AGA Brokerage Services, Inc., formerly WNL Brokerage Services, Inc., a
subsidiary of American General Corporation, is the distributor and underwriter
of the VA Contracts. Each Trustee of the Trust who is not an interested person
of the Trust or Adviser or Sub-adviser receives an annual fee of $7,500 and an
additional fee of $750 for each Trustees' meeting attended. In addition,
disinterested Trustees who are members of any Board committees will receive a
separate $750 fee for attendance at any committee meeting that is held on a day
on which no Board meeting is held.
For the six months ended June 30, 1998, State Street Global Advisors Growth
Equity Portfolio, Van Kampen American Capital Emerging Growth Portfolio and
EliteValue Portfolio paid brokerage commissions
F-57
<PAGE> 71
AGA SERIES TRUST
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
of $505, $113, and $750, respectively, to CS First Boston Corporation and the
Van Kampen American Capital Emerging Growth Portfolio paid commissions of $93 to
Salomon Brothers Inc., affiliated brokers, for portfolio transactions executed
on behalf of the Portfolio.
3. SECURITY TRANSACTIONS
The aggregate cost of purchases and proceeds from sales of securities,
excluding short-term investments, for the six months ended June 30, 1998 were as
follows:
<TABLE>
<CAPTION>
U.S. U.S.
GOVERNMENT PROCEEDS GOVERNMENT
PURCHASES PURCHASES FROM SALES SALES
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Credit Suisse Growth and Income...... $4,872,196 $3,292,380 $2,159,501 $3,324,168
Credit Suisse International Equity... 2,253,716 -- 172,200 --
EliteValue........................... 4,361,398 154,535 1,689,545 87,841
Salomon Brothers U.S. Government
Securities......................... 118,045 743,717 -- 394,513
State Street Global Advisors Growth
Equity............................. 7,890,014 -- 5,632,514 90,279
State Street Global Advisors Money
Market............................. -- -- -- --
Van Kampen American Capital Emerging
Growth............................. 4,228,217 35,218 2,878,694 --
</TABLE>
4. SHARES OF BENEFICIAL INTEREST
The Trust has an unlimited authorized number of shares of beneficial
interest with a par value of $0.01. The tables below summarize transactions in
Trust shares.
CREDIT SUISSE GROWTH AND INCOME PORTFOLIO
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31, 1997
-------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT
------- ---------- -------- ----------
<S> <C> <C> <C> <C>
Capital stock sold............................... 288,497 $3,889,442 364,640 $4,535,552
Capital stock issued upon reinvestment of
dividends and distributions.................... 7,897 108,396 30,006 376,771
Capital stock redeemed........................... (62,654) (847,561) (98,914) (1,251,232)
------- ---------- -------- ----------
Net increase..................................... 233,739 $3,150,277 295,732 $3,661,091
======= ========== ======== ==========
</TABLE>
CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31, 1997
-------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT
------- ---------- -------- ----------
<S> <C> <C> <C> <C>
Capital stock sold............................... 120,188 $1,308,183 177,329 $2,089,267
Capital stock issued upon reinvestment of
dividends and distributions.................... 1,499 16,424 28,680 300,498
Capital stock redeemed........................... (29,553) (320,436) (45,050) (532,186)
------- ---------- -------- ----------
Net increase..................................... 92,134 $1,004,171 160,959 $1,857,579
======= ========== ======== ==========
</TABLE>
F-58
<PAGE> 72
AGA SERIES TRUST
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
ELITEVALUE PORTFOLIO
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31, 1997
-------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT
------- ---------- -------- ----------
<S> <C> <C> <C> <C>
Capital stock sold............................... 372,132 $5,829,174 562,538 $7,853,515
Capital stock issued upon reinvestment of
dividends and distributions.................... 8,089 127,946 21,013 300,551
Capital stock redeemed........................... (78,503) (1,227,000) (112,176) (1,599,850)
------- ---------- -------- ----------
Net increase..................................... 301,718 $4,730,120 471,375 $6,554,216
======= ========== ======== ==========
</TABLE>
SALOMON BROTHERS U.S. GOVERNMENTAL SECURITIES PORTFOLIO
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31, 1997
-------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT
------- ---------- -------- ----------
<S> <C> <C> <C> <C>
Capital stock sold............................... 146,306 $1,488,136 167,218 $1,688,562
Capital stock issued upon reinvestment of
dividends and distributions.................... 13,531 136,767 16,187 160,062
Capital stock redeemed........................... (49,058) (499,976) (27,188) (271,281)
------- ---------- -------- ----------
Net increase..................................... 110,779 $1,124,927 156,217 $1,577,343
======= ========== ======== ==========
</TABLE>
STATE STREET GLOBAL ADVISORS GROWTH EQUITY PORTFOLIO
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31, 1997
-------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT
------- ---------- -------- ----------
<S> <C> <C> <C> <C>
Capital stock sold............................... 189,587 $2,961,531 239,753 $3,380,388
Capital stock issued upon reinvestment of
dividends and distributions.................... 2,896 46,670 50,305 706,482
Capital stock redeemed........................... (40,376) (633,987) (57,888) (842,461)
------- ---------- -------- ----------
Net increase..................................... 152,107 $2,374,214 232,170 $3,244,409
======= ========== ======== ==========
</TABLE>
STATE STREET GLOBAL ADVISORS MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31, 1997
-------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Capital stock sold..................... 24,057,146 $ 24,057,146 27,649,529 $ 27,649,529
Capital stock issued upon reinvestment
of dividends and distributions....... 147,116 147,116 159,789 159,789
Capital stock redeemed................. (25,244,047) (25,244,047) (24,000,078) (24,000,078)
----------- ------------ ----------- ------------
Net increase........................... (1,039,785) ($ 1,039,785) 3,809,240 $ 3,809,240
=========== ============ =========== ============
</TABLE>
F-59
<PAGE> 73
AGA SERIES TRUST
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
VAN KAMPEN CAPITAL EMERGING GROWTH PORTFOLIO
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31, 1997
-------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT
------- ---------- -------- -----------
<S> <C> <C> <C> <C>
Capital stock sold.............................. 129,524 $2,008,443 387,792 $ 4,961,448
Capital stock issued upon reinvestment of
dividends and distributions................... 30 481 617 7,882
Capital stock redeemed.......................... (46,682) (732,868) (154,969) (1,955,287)
------- ---------- -------- -----------
Net increase.................................... 82,872 $1,276,056 233,440 $ 3,014,043
======= ========== ======== ===========
</TABLE>
5. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
At June 30, 1998, the outstanding forward foreign currency exchange
contracts, which contractually obligate the Trust to deliver currencies at a
specified date, were as follows:
Credit Suisse International Equity Portfolio
<TABLE>
<CAPTION>
U.S. DOLLAR
PRICE ON U.S. DOLLAR UNREALIZED
SETTLEMENT ORIGINATION CURRENT Appreciation\
CURRENCY SOLD DATE DATE VALUE (DEPRECIATION)
- ------------- ---------- ----------- ----------- --------------
<S> <C> <C> <C> <C>
FRF............................................ 8/26/98 $129,541 $126,418 $ 3,123
JPY............................................ 9/9/98 473,071 474,944 (1,873)
NLG............................................ 8/26/98 116,948 114,016 2,932
-------- -------- -------
$719,560 $715,378 $ 4,182
</TABLE>
7. TAX INFORMATION
For Federal income tax purposes capital loss carryforwards (exclusive of
certain capital losses incurred after October 31) of $16,671 and $84,949 are
available to the extent provided by regulations to offset future realized
capital gains of Salomon Brothers U.S. Government Securities Portfolio and the
Van Kampen American Capital Emerging Growth Portfolio, respectively. These
losses expire in 2004 and 2005, respectively.
Additionally, certain capital losses incurred after October 31, within the
taxable year are deemed to arise on the first business day of the Portfolio's
next taxable year. During the year ended December 31, 1997 Credit Suisse
International Equity Portfolio, State Street Global Advisors Growth Equity
Portfolio, EliteValue Portfolio and Van Kampen American Capital Emerging Growth
Portfolio elected to defer net capital losses of $14,123, $8,777 $9,115 and
$69,870, respectively.
8. SIGNIFICANT EVENT
On February 25, 1998, American General Corporation purchased all of the
outstanding common stock of Western National Corporation, the parent company of
the Life Company. At that date the Life Company (now whole-owned indirect
subsidiary of American General Corporation) changed its name from Western
National Life Insurance Company to American General Annuity Insurance Company.
F-60
<PAGE> 74
AGA SERIES TRUST
PROXY VOTING RESULTS
(UNAUDITED)
The following proposal which was voted upon at a special meeting of
shareholders on April 16, 1998, with results shown below.
PROPOSAL 1.
To approve a new Sub-Advisory Agreement between Salomon Brothers Asset
Management, Inc., AGA Investment Advisory Services, Inc. and AGA Series Trust.
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
------- ------- -------
<S> <C> <C> <C>
Record Date Shares (429,327)
Salomon Brothers U.S. Government
Securities Portfolio........................................ 311,976 20,209 97,142
</TABLE>
F-61
<PAGE> 75
<TABLE>
<S> <C>
AMERICAN GENERAL ANNUITY INSURANCE COMPANY ----------------
VARIABLE ANNUITY SERVICE CENTER
BULK RATE
205 E. 10TH AVENUE U.S. POSTAGE
AMARILLO, TEXAS 79101 PAID
Permit No. 1
Houston, Texas
NATIONAL MAIL
ADVERTISING, INC.
----------------
</TABLE>
VER 8/20/98 Recycled Paper [RECYCLED PAPER LOGO]
