<PAGE>
A.G. SERIES TRUST
SEMI-ANNUAL REPORT
June 30, 1999
(Unaudited)
<PAGE>
A.G SERIES TRUST
SEMI-ANNUAL REPORT
The accompanying Semi-Annual Report for A.G. Series Trust contains detailed
financial information to help you understand your portfolio's past performance.
The following discussion of the 1999 performance of the portfolios within the
Trust supplements the financial statements and related notes found in the
report.
Credit Suisse Growth and Income Portfolio The total return for the first
half of 1999 was 6.8%, compared to the 5.5% of its benchmark, which is a 50/50
composite of the Standard and Poor's 500 Index (S&P 500) and the Lehman
Aggregate Bond Index. The equity manager noted that in recent quarters the
performance of a few of the largest 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. On the fixed income side the manager expected rates to
rise, so he maintained a conservative position. At quarter end the portfolio
was composed of 55% equities, 30% bonds and 15% cash. The manger expects to
reduce cash soon due to an improved outlook for bonds.
Credit Suisse International Equity Portfolio In the first half of 1999, the
International Equity Portfolio's total return was 3.4%, compared to the 4.0%
return of its benchmark, the Morgan Stanley Composite Index --Europe, Australia
& Far East (EAFE).
In recent years, the portfolio's disappointing performance resulted principally
from overweight investment in emerging markets. In 1999, the manager returned
the portfolio to a nearly index-neutral position in order to avoid systemic
risk. As a result, the performance is much closer to that of the EAFE. During
1999, the manager has increased the portfolio's exposure in Japan from an
underweight position to one that is significantly overweight, so that now it is
at 33% of the portfolio compared to EAFE's 26%. The manager believes that Japan
has finally bottomed-out and that while the recovery will be slow, the recession
is over. He thinks that the government of Japan has implemented some good
policies and that some signs have appeared of badly needed (though cautious)
corporate restructuring. That overweight position has proved beneficial in
recent months. The manager intends to stick much closer to the EAFE weightings
in the future (particularly with respect to emerging market exposure), and so
expects future performance to more closely parallel that of the benchmark.
EliteValue Portfolio Although the EliteValue Portfolio's objectives and
policies permit the manager to invest in all asset categories, the manager has
consistently invested almost entirely in equities, a strategy that has generally
proved 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 total return of 7.2% for the first half of 1999 lagged its
benchmark, the S&P 500's 12.4%; it was more than double the Lipper Benchmark --
Flexible Portfolio Funds Index, which registered 3.1%. The 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. That strategy
showed favorable results in the second quarter, as the market finally tilted to
some extent toward "Value " from the very strong "Growth" bias that it has shown
in recent quarters.
State Street Global Advisors Growth Equity Portfolio 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 7.2% lagged its
benchmark, the S&P 500. The Portfolio's long-term results have also been
disappointing relative to the benchmark, although its Lipper ranking in the
three-year time frame places it in the top quintile for its category, Equity
Income Funds.
While market breadth increased for the first half of the year, it was still
narrow on a historical basis. At the end of the first quarter, lack of market
breadth was at an historical high, as 80% of all U.S. listed stocks lagged the
S&P 500. The measure stood at 69% on June 30, lower, but still high on a
historical basis. The market being led by such a concentration of industries
and specific stocks has continually hurt this broad-based portfolio's
performance.
1
<PAGE>
State Street Global Advisors Money Market Portfolio The Money Market
Portfolio's total return of 2.2% for the first half of 1999 essentially equaled
its benchmark, the 91-Day Treasury Auction Average Index, as it has generally
done in recent quarters. The Portfolio's small size and volatility make it
difficult for the manager to make economic trades while maintaining sufficient
diversity and liquidity.
American General U.S. Government Securities Portfolio For the first half of
1999, the portfolio's total return was a negative .5%, essentially equaling the
benchmark, One-to-Ten Year Treasury Index. During the second quarter, the total
return slightly lagged the benchmark because Treasuries outperformed spread
product such as the mortgage-backed agencies that comprised most of the
portfolio. The index is composed entirely of Treasuries. In the future, the
manager intends to stay close to the benchmark portfolio, so he expects future
returns to approximately equal the market's.
Van Kampen Emerging Growth Portfolio The Emerging Growth Portfolio's total
return of 20.6% for the first half of 1999 doubled the benchmark, S&P 500's
10.3%. It also significantly exceeded the Lipper Mid-Cap Funds benchmark return
of 11.9%. As in recent periods, the principal reason for the excellent
performance was good sector selection, particularly a heavy overweight in
technology. Within that sector, Internet stocks (particularly AOL) and "Internet
infrastructure" stocks such as Verio and Network Solutions, proved very
successful. (Although technology generally and AOL in particular were big
disappointments in the second quarter.) Additional strong sectors were
specialty retail (e.g., Best Buy) and Biotech. Selected health care and
financial issues (credit cards) also contributed to the outperformance. 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. The fund has
consistently placed in the top of the Lipper Mid Cap Growth category, and its
three-year ranking was number five out of 37 portfolios in that category.
Performance Graph The following graph displays the performance of each
portfolio in comparison to its respective benchmark return:
2
<PAGE>
Year to Date Performance through June 30, 1999
[CHART APPEARS HERE]
<PAGE>
A.G. SERIES TRUST
FINANCIAL SCHEDULES
June 30, 1999
<PAGE>
A.G. SERIES TRUST
CREDIT SUISSE GROWTH AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS--47.2%
AIR TRAVEL--1.8%
AMR Corporation (a)........................ 7,000 $ 477,750
-----------
AUTO PARTS--0.2%
Delphi Automotive Systems Corporation...... 2,795 51,882
-----------
AUTOMOBILES--1.0%
General Motors Corporation................. 4,000 264,000
-----------
BANKS--1.8%
Chase Manhattan Corporation................ 3,000 259,875
The Toronto-Dominion Bank.................. 5,000 227,500
-----------
487,375
-----------
BROADCASTING--2.3%
Fox Entertainment Group Incorporated (a)... 10,000 269,375
MediaOne Group Incorporated (a)............ 4,500 334,688
-----------
604,063
-----------
BUSINESS SERVICES--1.5%
Automatic Data Processing Incorporated..... 9,000 396,000
-----------
CHEMICALS--1.8%
Scotts Company, Class A (a)................ 10,000 476,250
-----------
COMPUTERS & BUSINESS EQUIPMENT--3.0%
DST Systems Incorporated (a)............... 4,000 251,500
Sun Microsystems Incorporated (a).......... 4,000 275,500
Symbol Technologies Incorporated........... 7,500 276,562
-----------
803,562
-----------
DRUGS & HEALTH CARE--4.7%
American Home Products Corporation......... 6,000 345,000
Boston Scientific Corporation (a).......... 5,000 219,687
Pharmacia & Upjohn Incorporated............ 6,000 340,875
Warner-Lambert Company..................... 5,000 346,875
-----------
1,252,437
-----------
ELECTRIC UTILITIES--0.8%
Public Service Enterprise Group............ 5,000 204,375
-----------
ELECTRICAL EQUIPMENT--3.7%
Emerson Electric Company................... 7,000 440,125
Sony Corporation........................... 5,000 551,875
-----------
992,000
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-2
<PAGE>
A.G. SERIES TRUST
CREDIT SUISSE GROWTH AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
FINANCIAL SERVICES--1.9%
American Express Company.................... 4,000 $ 520,500
-----------
FOOD & BEVERAGES--3.0%
Hershey Foods Corporation................... 5,000 296,875
Sysco Corporation........................... 8,000 238,500
Wrigley (WM) Jr. Company.................... 3,000 270,000
-----------
805,375
-----------
INDUSTRIAL MACHINERY--2.1%
Tyco International Limited.................. 6,000 568,500
-----------
INSURANCE--1.5%
American International Group Incorporated... 3,500 409,719
-----------
INTERNATIONAL OIL--1.7%
Exxon Corporation........................... 6,000 462,750
-----------
MANUFACTURING--2.6%
General Electric Company.................... 2,600 293,800
Illinois Tool Works Incorporated............ 5,000 410,000
-----------
703,800
-----------
MULTIMEDIA--1.9%
Media General Incorporated, Class A......... 4,000 204,000
Time Warner Incorporated.................... 4,000 294,000
-----------
498,000
-----------
RETAIL TRADE--0.8%
Costco Companies Incorporated (a)........... 2,800 224,175
-----------
SOFTWARE--2.0%
Microsoft Corporation (a)................... 6,000 541,125
-----------
TELECOMMUNICATIONS--6.3%
AT&T Corporation............................ 7,500 418,594
COMSAT Corporation.......................... 5,000 162,500
MCI WorldCom Incorporated (a)............... 4,000 344,250
Vodafone Airtouch PLC
ADR......................................... 1,500 295,500
Teligent Incorporated (a)................... 8,000 478,500
-----------
1,699,344
-----------
TRANSPORTATION--1.9%
FDX Corporation (a)......................... 7,000 379,750
Norfolk Southern Corporation................ 4,000 120,500
-----------
500,250
-----------
TOTAL COMMON STOCKS--(Cost $9,946,004) 12,943,232
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-3
<PAGE>
A.G. SERIES TRUST
CREDIT SUISSE GROWTH AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C> <C>
MUNICIPALS--0.0%
Illinois State
(Cost $14,239)
4.75%, 06/01/2023........................ $15,000 $ 13,493
-----------
CORPORATE BONDS--6.4%
AIR TRAVEL--0.3%
Continental Airlines Incorporated
9.50%, 12/15/2001......................... 20,000 21,000
Northwest Airlines Incorporated
7.625%, 03/15/2005........................ 30,000 27,448
U. S. Air Incorporated
9.625%, 02/01/2001........................ 15,000 15,197
-----------
63,645
-----------
BROADCASTING--0.4%
Belo (A.H.) Corporation
6.875%, 06/01/2002........................ 55,000 54,970
Fox Liberty Networks LLC
8.875%, 08/15/2007........................ 15,000 15,563
Tele-Communications Incorporated
6.34%, 02/01/2002......................... 15,000 15,043
Turner Broadcasting Systems Incorporated
7.40%, 02/01/2004......................... 25,000 25,729
-----------
111,305
-----------
COMPUTERS & BUSINESS EQUIPMENT--0.1%
Seagate Technology Incorporated
7.45%, 03/01/2037......................... 30,000 27,865
-----------
DRUGS & HEALTH CARE--0.4%
Columbia/HCA Healthcare Corporation
8.36%, 04/15/2024......................... 10,000 9,408
Merck & Company Incorporated
5.76%, 05/03/2037......................... 100,000 100,273
-----------
109,681
-----------
ELECTRIC UTILITIES--0.4%
Beaver Valley II Funding Corporation
9.00%, 06/01/2017......................... 30,000 32,919
Connecticut Light & Power Company
7.75%, 06/01/2002......................... 20,000 20,423
7.875%, 10/01/2024........................ 10,000 10,436
North Atlantic Energy Corporation
9.05%, 06/01/2002......................... 14,000 14,393
Texas Electrical Capital
8.175%, 01/30/2037........................ 20,000 19,843
-----------
98,014
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-4
<PAGE>
A.G. SERIES TRUST
CREDIT SUISSE GROWTH AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----
<S> <C> <C>
CORPORATE BONDS--(CONTINUED)
FINANCE & BANKING--1.6%
A T & T Capital Corporation
6.41%, 08/13/1999.............................. $10,000 $ 10,006
6.47%, 12/03/2099.............................. 15,000 15,036
6.48%, 12/03/1999.............................. 25,000 25,086
6.875%, 01/16/2001............................. 10,000 10,004
American General Institutional Capital B
Capital Secs 8.125Pct 144A, 8.125%,03/15/2046... 50,000 52,703
Bay View Capital Corporation
9.125%, 08/15/2007............................. 10,000 9,300
Bellsouth Capital Funding Corporation
6.04%, 11/15/2026.............................. 30,000 29,846
Chase Manhattan Corporation
6.75%, 09/15/2006.............................. 20,000 19,483
Subordinated Note, 7.25%, 06/01/2007........... 10,000 10,214
Citicorp
6.375%, 11/15/2008............................. 40,000 37,998
Deutsche Bank Capital Funding Trust
7.872%, 12/29/2049............................. 30,000 28,876
EOP Operating LP
6.50%, 01/15/2004.............................. 15,000 14,612
First Republic Bank
7.75%, 09/15/2012.............................. 25,000 22,727
Ford Motor Credit Company
5.80%, 01/12/2009.............................. 60,000 54,834
Lehman Brothers Holdings Incorporated
6.625%, 04/01/2004............................. 25,000 24,393
7.00%, 05/15/2003.............................. 25,000 24,776
Merrill Lynch & Company Incorporated
6.875%, 11/15/2018............................. 20,000 18,633
National Westminster Bancorporation
9.375%, 11/15/2003............................. 10,000 11,032
-----------
419,559
-----------
INDUSTRIALS--0.3%
CSC Holdings Incorporated
7.875%, 12/15/2007............................. 20,000 20,050
Dresser Industries Incorporated
7.60%, 08/15/2096.............................. 30,000 30,259
GTE North Incorporated
6.90%, 11/01/2008.............................. 5,000 5,036
PT Indah Kiat Pulp & Paper Corporation
10.00%, 07/01/2007............................. 5,000 3,475
Valero Energy Corporation
7.375%, 06/30/2006............................. 30,000 29,164
-----------
87,984
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-5
<PAGE>
A.G. SERIES TRUST
CREDIT SUISSE GROWTH AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----
<S> <C> <C>
CORPORATE BONDS--(CONTINUED)
LEISURE TIME--0.4%
Time Warner Incorporated
6.85%, 01/15/2026................................. $55,000 $ 54,685
7.48%, 01/15/2008................................. 10,000 10,174
8.05%, 01/15/2016................................. 40,000 41,852
8.11%, 08/15/2006................................. 10,000 10,482
-----------
117,193
-----------
TELECOMMUNICATIONS--1.0%
GTE Corporation
6.84%, 04/15/2018................................. 20,000 19,086
6.94%, 04/15/2028................................. 20,000 18,932
MCI Communications Corporation
6.125%, 04/15/2002................................ 40,000 39,669
Nextel Communications Incorporated
9.75%, 08/15/2004................................. 30,000 30,525
Paging Network Incorporated
10.125%, 08/01/2007............................... 10,000 7,300
8.875%, 02/01/2006................................ 10,000 7,200
TCI Communications Financing III
9.65%, 03/31/2027................................. 20,000 22,632
TCI Communications Incorporated
6.375%, 05/01/2003................................ 10,000 9,993
WorldCom Incorporated
7.75%, 04/01/2007................................. 50,000 52,253
8.875%, 01/15/2006................................ 39,000 41,378
-----------
248,968
-----------
TRANSPORTATION--0.3%
Norfolk Southern Corporation
7.05%, 05/01/2037................................. 45,000 45,728
7.70%, 05/15/2017................................. 20,000 20,537
7.40%, 09/15/2006................................. 10,000 10,241
-----------
76,506
-----------
UTILITIES--0.2%
Peco Energy Transition Trust
6.05%, 03/01/2009................................. 20,000 19,156
6.13%, 03/01/2009................................. 45,000 42,764
-----------
61,920
-----------
TOTAL CORPORATE BONDS--(Cost $1,465,389) 1,422,640
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-6
<PAGE>
A.G. SERIES TRUST
CREDIT SUISSE GROWTH AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -------
<S> <C> <C>
FOREIGN CORPORATE BONDS--0.9%
FINANCE & BANKING--0.3%
Bangkok Sentral Philipinas
8.60%, 06/15/2027..................... $ 5,000 $ 4,063
Bangkok Sentral NG
8.60%, 06/15/2027..................... 5,000 3,625
Credit Lyonnais
6.3125%, 09/19/2049................... 50,000 46,125
Fuji Finance Caymon Limited
5.80125%, 08/29/2049.................. 20,000 16,200
7.30%, 03/29/2049..................... 20,000 16,200
--------
86,213
--------
FINANCIAL SERVICES--0.1%
Auxiliaire Credit Foncier
5.00%, 10/18/2002..................... 20,000 18,927
5.00%, 09/25/2002..................... 10,000 9,571
--------
28,498
--------
INDUSTRIALS--0.1%
Osuuspankkien Kesk
5.53%, 09/29/2049..................... 20,000 19,300
YPF SA
8.00%, 02/15/2004..................... 10,000 9,815
--------
29,115
--------
TRANSPORTATION--0.1%
TFM, Sa De Cv
11.75%, 06/15/2009.................... 25,000 14,875
0%, 06/15/2009 (a) (b)................ 10,000 5,975
--------
20,850
--------
UTILITIES--0.3%
Empresa Nacional de Electricidad SA
8.125%, 02/01/2097.................... 10,000 8,065
Korea Electric Power Corporation
7.00%, 10/01/2002..................... 30,000 29,178
7.00%, 02/01/2027..................... 30,000 27,662
Niagara Mohawk Power Corporation
8.75%, 04/01/2022..................... 20,000 21,288
--------
86,193
--------
TOTAL FOREIGN CORPORATE BONDS--(Cost $252,146) 250,869
--------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-7
<PAGE>
A.G. SERIES TRUST
CREDIT SUISSE GROWTH AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ -------
<S> <C> <C>
FOREIGN GOVERNMENT BONDS--0.5%
Government of Poland
5.00%, 10/27/2014................................... 60,000 $ 52,350
Republic of Colombia
9.705%, 08/13/2005.................................. 20,000 17,200
Republic of Ecuador
6.00%, 02/27/2015................................... 5,774 1,862
Republic of Philippines
9.875%, 01/15/2019.................................. 5,000 4,900
Republic of Venezuela
9.25%, 09/15/2027................................... 40,000 26,052
United Mexico States
11.50%, 05/15/2026.................................. 25,000 27,386
--------
TOTAL FOREIGN GOVERNMENT BONDS--(Cost $127,746) 129,750
--------
ASSET-BACKED SECURITIES--1.9%
FINANCE & BANKING--0.9%
Commercial Mortgage Asset Trust
Series 1999-C1, Class A3, 6.64%, 09/17/2010......... 75,000 72,425
Contimortgage Home Equity Loan Trust
Series 1996-4, Class A8, 7.22%, 01/15/2028.......... 10,000 9,991
DLJ Commercial Mortgage Corporation
Series 1998-CG1, Class A, 6.41%, 05/10/2008......... 50,000 48,146
GMAC Commercial Mortgage Security Incorporated
Series 1997-C1, Class A2, 6.853%, 09/15/2006........ 10,000 10,111
Series 1999-C2, Class A, 6.945%, 09/15/2033......... 25,000 24,960
Heller Financial Commercial Mortgage Asset Company
Series 1999-PH1, Class A2, 6.847%, 05/15/2031....... 45,000 44,700
New Century Home Equity Loan Trust
Series 1997-6, Class A4, 6.73%, 07/25/2022.......... 10,000 9,982
UCFC Loan Trust
Series 1996-B, Class A7, 8.20%, 11/15/2027.......... 10,000 10,289
Series 1998-A, 6.87%, 07/15/2029.................... 10,000 9,821
--------
240,425
--------
FINANCIAL SERVICES--1.0%
Green Tree Recreational Equipment
Series 1998-B, Class A3, 6.05%, 10/15/2010.......... 20,000 20,050
K Mart Corporation
Series 1995-K, 8.54%, 01/02/2015.................... 15,000 15,062
Morgan Stanley Capital Incorporated
Series 1998-X1, Class A3, 6.48%, 06/03/2030......... 90,000 86,935
Nomura Asset Securities Corporation
Series 1998-D, Class A1, 6.59%, 03/17/2028.......... 75,000 72,897
Option One Mortgage Security Corporation
Series 1999-2, 9.66%, 06/25/2029.................... 35,000 34,850
Standard Credit Card Master Trust
Series 1994-2, Class A, 7.25%, 04/07/2008........... 30,000 30,760
--------
260,554
--------
TOTAL ASSET-BACKED SECURITIES--(Cost $515,150) 500,979
--------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-8
<PAGE>
A.G. SERIES TRUST
CREDIT SUISSE GROWTH AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ -------
<S> <C> <C>
PREFERRED STOCK--0.5%
FINANCE & BANKING--0.4%
California Federal Preferred Capital Corporation... 1,175 $ 30,770
Centaur Funding Corporation........................ 25 26,750
Citigroup Incorporated, Preferred G................ 700 34,650
NB Capital Corporation............................. 800 20,100
--------
112,270
--------
FINANCIAL SERVICES--0.1%
Lehman Brothers Holdings Incorporated.............. 290 12,579
Lehman Brothers Holdings Incorporated, Series D.... 395 17,232
--------
29,811
--------
TOTAL PREFERRED STOCK--(Cost $149,318) 142,081
--------
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES--30.3%
FEDERAL AGENCIES--13.1%
Federal National Mortgage Association
0.00%, 02/25/2023........................... $ 25,000 15,891
6.00%, 01/01/2029........................... 296,411 279,109
6.00%, 12/01/2099 TBA....................... 1,070,000 1,013,359
6.50%, 12/01/2099 TBA....................... 1,205,000 1,165,741
7.00%, 01/01/2099 TBA....................... 335,000 331,124
8.00%, 12/01/2099 TBA....................... 685,000 703,619
-----------
3,508,843
-----------
U.S. GOVERNMENT--17.2%
United States Treasury Bills
4.35%, 09/16/1999........................... 10,000 9,907
4.4075%, 08/05/1999......................... 4,000,000 3,983,122
United States Treasury Bonds
3.875%, 04/15/2029.......................... 100,000 98,625
8.00%, 11/15/2021........................... 330,000 397,907
8.75%, 05/15/2017........................... 165,000 53,473
United States Treasury Note
6.25%, 02/15/2007........................... 90,000 91,702
-----------
4,634,736
-----------
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES--
(Cost $8,161,840) 8,143,579
-----------
REPURCHASE AGREEMENT--23.9%
(Cost $6,416,000)
Agreement with State Street Bank and Trust
Company, 4.25% dated 06/30/1999, to be
repurchased at $6,416,757 07/01/1999,
collateralized by $5,345,000 U.S. Treasury
Note, 8.125% maturing 8/15/2019 (value
$6,547,561)................................. 6,416,000 6,416,000
-----------
TOTAL INVESTMENTS--(Cost $27,047,832*)--111.6% 29,962,623
-----------
OTHER ASSETS LESS LIABILITIES--(11.6)% (3,124,858)
-----------
NET ASSETS--100.0% $26,837,765
===========
</TABLE>
The accompanying notes are an integral part of the financial statements
F-9
<PAGE>
A.G. SERIES TRUST
CREDIT SUISSE GROWTH AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SCHEDULE OF OPEN FUTURES CONTRACTS AT JUNE 30, 1999
- -----------------------------------------------------------------------------------
NUMBER OF CONTRACT TOTAL CONTRACT UNREALIZED
CONTRACTS DESCRIPTION VALUE GAIN (LOSS)
- ------------ --------------------------------------------------- -------------- ----------
<S> <C> <C> <C>
3 U.S. Treasury Bond September 1999 (long)........... $347,719
(7,260)
-------
$(7,260)
=======
</TABLE>
(a) Non-income producing security
(b) Step Bond - coupon rate increases in increments to maturity. Rate
disclosed is as of June 30, 1999. Maturity date disclosed is the final
maturity date.
ADR-American Depository Receipt
TBA-To Be Announced
* Aggregate cost for Federal tax purposes is $27,047,832. 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 $3,098,440 and $183,649
respectively, resulting in net unrealized appreciation of $2,914,791.
The accompanying notes are an integral part of the financial statements
F-10
<PAGE>
A.G. SERIES TRUST
CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ --------
<S> <C> <C>
COMMON STOCKS--93.4%
AUSTRALIA--1.0%
Lend Lease Corporation Limited......... 1,500 $ 20,568
National Australia Bank Limited........ 1,000 16,526
Pasminco Limited....................... 15,000 16,540
Publishing & Broadcasting Limited...... 3,500 23,067
--------
76,701
--------
BRAZIL--0.8%
Centrais Eletricas Brasileiras SA...... 1,630 16,411
Petroleo Brasileiro SA................. 1,260 19,401
Telecom Brazil Funding Corporation..... 270 24,351
--------
60,163
--------
CZECH REPUBLIC--0.5%
Ateso AS............................... 2,000 16,184
Deza Valasske Mezirici AS.............. 1,000 10,161
Galena AS.............................. 600 9,795
--------
36,140
--------
DENMARK--0.7%
ISS International Service System A/S... 1,009 53,862
--------
FRANCE--10.9%
AXA SA................................. 655 79,877
Banque Nationale de Paris (BNP)........ 1,050 87,457
Carrefour SA........................... 700 102,827
Cofinec GDR (a)........................ 3,000 21,000
Lafarge SA............................. 1,007 95,710
Rhodia SA (a).......................... 4,029 76,421
Rhone-Poulenc (India) Limited.......... 1,854 84,685
Total SA............................... 734 94,656
Valeo SA............................... 1,050 86,592
Vivendi................................ 1,194 96,682
--------
825,907
--------
GERMANY--7.2%
BASF AG................................ 1,617 71,426
Bayerische Motoren Werke AG............ 101 69,445
Dresdner Bank AG....................... 1,019 39,812
Mannesmann AG.......................... 666 99,467
Metro AG............................... 1,300 80,674
Preussag AG............................ 1,768 94,955
Volkswagen AG.......................... 1,360 87,061
--------
542,840
--------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-11
<PAGE>
A.G. SERIES TRUST
CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ -------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
HONG KONG--0.8%
Cheung Kong (Holdings) Limited.......... 2,000 $ 17,787
China Telecom (Hong Kong) Limited (a)... 300 17,100
Hang Seng Bank Limited.................. 900 10,063
Swire Pacific Limited................... 2,500 12,373
--------
57,323
--------
ITALY--5.2%
Assicurazioni Generali SPA.............. 2,213 76,651
Banco Intesa SPA........................ 14,786 71,028
Ente Nazionale Idrocarburi SPA.......... 13,500 80,576
Telecom Italia Mobile (TIM) SPA......... 12,819 76,512
Telecom Italia SPA...................... 8,194 85,144
--------
389,911
----------
JAPAN--26.9%
Aruze Corporation....................... 1,000 98,372
Bank of Tokyo Mitsubishi Limited........ 6,000 85,459
Canon Incorporated...................... 6,000 172,605
Fuji Photo Film......................... 4,000 151,443
Honda Motor Company..................... 3,000 127,222
Ito-Yokado Company Limited.............. 1,000 66,959
Matsushita Electric Company............. 4,000 77,705
Minebea Company Limited................. 8,000 89,278
Mitsui & Company Limited................ 12,000 83,723
Nintendo Company Limited................ 800 112,491
Nippon Telegraph & Telephone............ 16 186,493
Orix Corporation........................ 1,000 89,278
Ryohin Keikaku Company Limited.......... 400 100,686
Sekisui House Hokuriku Limited.......... 7,000 75,572
Shimamura Company Limited............... 600 50,839
Sony Corporation........................ 1,500 161,817
TDK Corporation......................... 1,000 91,510
The Nomura Securities Company Limited... 7,000 81,996
Toyota Motor Corporation................ 3,000 94,982
Yakult Honsha Company Limited........... 3,000 27,403
----------
2,025,833
----------
KOREA--0.9%
Korea Electric Power Corporation........ 1,450 29,725
Pohang Iron & Steel Company Limited..... 420 14,123
Samsung Electronics..................... 570 14,734
SK Telecom Company Limited.............. 760 12,920
----------
71,502
----------
MALAYSIA--0.2%
YTL Corporation Berhad.................. 8,000 16,842
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-12
<PAGE>
A.G. SERIES TRUST
CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ -------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
MEXICO--0.6%
Cifra SA de CV............................... 880 $ 16,878
Telefonos De Mexico SA....................... 390 31,517
--------
48,395
--------
NETHERLANDS--5.7%
Elsevier NV.................................. 6,100 70,742
ING Groep NV................................. 1,400 75,768
Laurus NV.................................... 2,600 60,305
Oce NV....................................... 2,800 71,294
Philips Electronics NV....................... 976 96,234
TNT Post Group NV............................ 2,420 57,751
--------
432,094
--------
NEW ZEALAND--0.3%
Telecom Corporation of New Zealand........... 6,000 25,731
--------
SOUTH AFRICA--0.8%
Liberty Life Association of Africa Limited... 1,950 24,981
South African Breweries Limited.............. 4,340 37,689
--------
62,670
--------
SPAIN--2.4%
Banco Bilbao Vizcaya SA...................... 6,001 86,668
Telefonica de Espana......................... 1,987 95,922
--------
182,590
--------
SWEDEN--4.4%
Atlas Copco AB............................... 2,219 59,598
Electrolux AB................................ 4,225 88,591
Skandia Forsakring AB........................ 4,500 84,286
Telefonaktiebolaget LM Ericsson AB........... 3,100 99,511
--------
331,986
--------
SWITZERLAND--4.3%
Nestle SA.................................... 45 81,053
Novartis AG.................................. 46 67,147
Roche Holdings AG............................ 10 102,758
Zurich Allied AG (a)......................... 126 71,625
--------
322,583
--------
UNITED KINGDOM--19.8%
Barclays..................................... 2,700 78,521
BP Amoco PLC................................. 5,000 89,531
British Telecom PLC.......................... 5,850 97,928
CGU PLC...................................... 6,160 88,698
GKN PLC...................................... 5,200 88,768
Glaxo Wellcome PLC........................... 2,500 69,473
Granada Group PLC............................ 4,650 86,123
</TABLE>
The accompanying notes are an integral part of the financial statements
F-13
<PAGE>
A.G. SERIES TRUST
CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
--------- ----------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
UNITED KINGDOM--(CONTINUED)
Kingfisher PLC.......................................................... 6,800 $ 79,350
Lloyds TSB Group PLC.................................................... 6,700 90,982
National Westminster Bank PLC........................................... 3,995 84,696
Pearson PLC............................................................. 4,408 89,561
Peninsular & Oriental Steam Navigation Company.......................... 6,000 89,988
Scottish & Newcastle PLC................................................ 7,610 79,529
Shell Transport & Trading Company....................................... 14,750 110,669
SmithKline Beecham PLC.................................................. 6,700 87,127
Unilever PLC............................................................ 8,946 79,393
Vodafone Group PLC...................................................... 4,850 95,407
----------
1,485,744
----------
TOTAL COMMON STOCKS--(Cost $6,419,750) 7,048,817
----------
WARRANTS--0.0%
(Cost $150)
FRANCE--0.0%
Vivendi (a)............................................................. 175 469
----------
PREFERRED STOCK--1.2%
(Cost $90,104)
GERMANY--1.2%
Henkel KGaA............................................................. 1,300 88,715
----------
PRINCIPAL
AMOUNT
------
REPURCHASE AGREEMENT--4.3%
(Cost $327,000)
Agreement with State Street Bank and Trust Company, 2.00%, dated
06/30/1999, to be repurchased at $327,018 07/01/1999, collateralized
by $265,000 U.S. Treasury Note, 10.75% maturing 8/15/2005
(value $338,064)....................................................... $327,000 327,000
----------
TOTAL INVESTMENTS--(Cost $6,837,004*)--98.9% 7,465,001
----------
OTHER ASSETS LESS LIABILITIES--1.1% 79,511
----------
NET ASSETS--100.0% $7,544,512
==========
</TABLE>
(a) Non-income producing security
* Aggregate cost for Federal tax purposes is $6,837,004. 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 $984,916 and $356,919,
respectively, resulting in net unrealized appreciation of $627,997.
The accompanying notes are an integral part of the financial statements
F-14
<PAGE>
A.G. SERIES TRUST
CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY NET ASSETS
- -------- ----------
<S> <C>
Appliances........................................ 2.2%
Auto Parts........................................ 0.2
Automobiles....................................... 5.0
Banks............................................. 8.7
Broadcasting...................................... 0.3
Business Services................................. 2.8
Chemicals......................................... 3.3
Computers & Business Equipment.................... 1.2
Conglomerates..................................... 0.2
Construction Materials............................ 1.3
Construction & Mining Equipment................... 0.8
Diversified....................................... 3.0
Drugs & Health Care............................... 5.6
Electric Utilities................................ 0.6
Electrical Equipment.............................. 0.2
Financial Services................................ 3.8
Food & Beverages.................................. 2.5
Homebuilders...................................... 1.0
Household Appliances & Home Furnishings........... 3.4
Industrial Machinery.............................. 3.7
Insurance......................................... 5.7
Investment Companies.............................. 1.1
Leisure Time...................................... 4.0
Non-Ferrous Metals................................ 0.2
Office Furnishings & Supplies..................... 3.2
Oil & Gas......................................... 2.5
Petroleum Services................................ 2.7
Photography....................................... 2.0
Publishing........................................ 2.1
Real Estate....................................... 0.2
Retail Trade...................................... 8.4
Steel............................................. 0.2
Telecommunications................................ 11.3
Transportation.................................... 1.2
----
TOTAL INVESTMENTS BY INDUSTRY CLASSIFICATION 94.6
Repurchase Agreement.............................. 4.3
----
TOTAL INVESTMENTS 98.9%
====
</TABLE>
The accompanying notes are an integral part of the financial statements
F-15
<PAGE>
A.G. SERIES TRUST
ELITEVALUE PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ ----------
<S> <C> <C>
COMMON STOCKS--81.6%
AEROSPACE--3.1%
Boeing Company........................... 22,600 $ 998,638
----------
AIR TRAVEL--1.8%
UAL Corporation (a)...................... 9,200 598,000
----------
BANKS--3.9%
BankBoston Corporation................... 11,300 577,713
M & T Bank Corporation................... 1,250 687,500
----------
1,265,213
----------
BROADCASTING & CABLE--4.5%
Chancellor Media Corporation (a)......... 6,000 330,750
News Corporation Limited ADR............. 36,000 1,136,250
----------
1,467,000
----------
CHEMICALS--6.2%
Du Pont (E.I.) de Nemours & Company...... 19,000 1,297,937
Monsanto Company......................... 18,400 725,650
----------
2,023,587
----------
COMMERCIAL SERVICES--2.0%
R.R. Donnelley & Sons Company............ 17,252 639,402
----------
COMPUTERS & BUSINESS EQUIPMENT--1.3%
Compaq Computer Corporation.............. 17,900 424,006
----------
CONSTRUCTION & MINING EQUIPMENT--2.9%
Caterpillar Incorporated................. 16,000 960,000
----------
DRUGS & HEALTH CARE--2.0%
American Home Products Corporation....... 11,400 655,500
----------
ELECTRONICS--2.6%
ITT Industries Incorporated.............. 22,500 857,813
----------
FINANCIAL SERVICES--22.0%
Citigroup Incorporated................... 45,375 2,155,312
Federal Home Loan Mortgage Corporation... 28,000 1,624,000
Household International Incorporated..... 14,900 705,888
Wells Fargo Company...................... 42,000 1,795,500
Xl Capital Limited....................... 15,439 872,303
----------
7,153,003
----------
FOOD & BEVERAGES--3.1%
Diageo PLC ADR........................... 23,800 1,023,400
----------
HOTELS & RESTAURANTS--6.3%
McDonald's Corporation................... 49,400 2,040,837
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-16
<PAGE>
A.G. SERIES TRUST
ELITEVALUE PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
INSURANCE--1.3%
ACE Limited...................................... 15,000 $ 423,750
-----------
MULTI INDUSTRY COMPANIES--4.8%
Minnesota Mining & Manufacturing Company......... 12,500 1,086,719
Textron Incorporated............................. 5,700 469,181
-----------
1,555,900
-----------
MULTIMEDIA--2.6%
Time Warner Incorporated......................... 11,500 845,250
-----------
PAPER--1.1%
Champion International Corporation............... 7,700 368,638
-----------
SOFTWARE--4.9%
Cadence Design Systems Incorporated (a).......... 12,000 153,000
Computer Associates International Incorporated... 26,000 1,430,000
-----------
1,583,000
-----------
TELECOMMUNICATIONS--5.2%
Motorola Incorporated............................ 7,700 729,575
Sprint Corporation............................... 18,000 950,625
-----------
1,680,200
-----------
TOTAL COMMON STOCKS--(Cost $23,829,753) 26,563,137
-----------
PRINCIPAL
AMOUNT
---------
DISCOUNT NOTES--18.6%
FEDERAL AGENCIES--18.6%
Federal Home Loan Bank
4.60%, 07/01/1999............................... $ 1,190,000 $ 1,190,000
Federal National Mortgage Association
4.96%, 07/20/1999............................... 2,000,000 1,994,764
4.85%, 07/19/1999............................... 2,885,000 2,878,004
-----------
TOTAL DISCOUNT NOTES--(Cost $6,062,768) 6,062,768
-----------
TOTAL INVESTMENTS--(Cost $29,892,521*)--100.2% 32,625,905
-----------
OTHER ASSETS LESS LIABILITIES--(0.2)% (56,263)
-----------
NET ASSETS--100.0% $32,569,642
===========
</TABLE>
(a) Non-income producing security
ADR- American Depository Receipt
* Aggregate cost for Federal tax purposes is $29,892,521 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 $3,448,033 and $714,649,
respectively, resulting in net unrealized appreciation of $2,733,384.
The accompanying notes are an integral part of the financial statements
F-17
<PAGE>
A.G. SERIES TRUST
AMERICAN GENERAL U.S. GOVERNMENT SECURITIES PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- ----------
<S> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES--83.6%
FEDERAL AGENCIES--73.7%
Federal Farm Credit Bank
5.25%, 05/01/2002............................ $ 500,000 $ 490,685
Federal Home Loan Bank
5.125%, 04/17/2001........................... 1,000,000 989,370
5.125%, 09/15/2003........................... 500,000 481,560
5.80%, 09/02/2008............................ 150,000 142,841
5.89%, 07/24/2000............................ 225,000 225,599
6.00%, 03/01/2029............................ 496,224 467,889
6.61%, 06/09/2004............................ 500,000 497,969
Federal Home Loan Mortgage Corporation
6.50%, 08/01/2013............................ 439,289 433,882
8.25%, 04/01/2017............................ 8,154 8,494
11.75%, 07/01/2006........................... 3,792 4,074
11.75%, 07/01/2013........................... 2,449 2,584
5.50%, 05/15/2002............................ 750,000 741,090
5.75%, 06/15/2001............................ 500,000 499,685
10.00%, 09/01/2020........................... 124,524 133,896
Federal National Mortgage Association
5.81%, 03/02/2004............................ 1,000,000 979,370
5.875%, 04/23/2004........................... 1,500,000 1,468,125
6.42%, 03/09/2009............................ 1,000,000 962,340
6.50%, 08/01/2027............................ 150,004 144,705
7.00%, 05/01/2026............................ 125,178 123,731
9.00%, 10/01/2026............................ 91,562 96,626
11.50%, 09/01/2019........................... 9,494 10,518
12.00%, 01/15/2016........................... 2,235 2,575
12.50%, 09/20/2015........................... 4,773 5,545
13.00%, 11/15/2015........................... 9,347 10,942
14.50%, 11/15/2014........................... 3,460 4,094
7.00%, 02/01/2028............................ 94,234 93,391
6.50%, 04/01/2029............................ 791,531 763,574
6.00%, 08/01/2028............................ 498,320 469,233
6.00%, 03/01/2029............................ 99,562 93,704
7.00%, 03/01/2029............................ 348,676 345,346
6.50%, 04/01/2029............................ 99,708 96,440
6.50%, 03/01/2029............................ 199,382 192,984
6.00%, 02/05/2009............................ 1,000,000 936,416
Government National Mortgage Association
7.50%, 05/15/2027............................ 67,416 68,219
7.50%, 07/15/2027............................ 129,790 131,337
7.50%, 08/15/2027............................ 489,607 495,443
Student Loan Marketing Association
7.20%, 11/09/2000............................ 225,000 229,007
United States Department of Veteran Affairs
7.25%, 10/15/2010............................ 9,600 9,583
-----------
12,852,866
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-18
<PAGE>
A.G. SERIES TRUST
AMERICAN GENERAL U.S. GOVERNMENT SECURITIES PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT Value
---------
<S> <C> <C>
U.S. GOVERNMENT AND AGENCY SECURITIES--(CONTINUED)
U.S. GOVERNMENT--9.9%
United States Treasury Notes
4.50%, 09/30/2000.............................................. $500,000 $ 494,530
4.75%, 02/15/2004.............................................. 400,000 384,748
5.25%, 05/15/2004.............................................. 500,000 491,330
5.625%, 12/31/2002............................................. 50,000 49,945
5.75%, 04/30/2003.............................................. 100,000 100,172
5.875%, 09/30/2002............................................. 100,000 100,625
6.125%, 08/15/2007............................................. 100,000 101,078
-----------
1,722,428
-----------
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES--(Cost $14,875,572) 14,575,294
-----------
COMMERCIAL PAPER--7.8%
DRUGS & HEALTH CARE--3.9%
Baxter International Incorporated
5.85%, 07/01/1999.............................................. 675,000 675,000
-----------
MANUFACTURING--3.9%
Cooper Industries Incorporated
5.70%, 07/01/1999.............................................. 675,000 675,000
-----------
TOTAL COMMERCIAL PAPER--(Cost $1,350,000) 1,350,000
-----------
REPURCHASE AGREEMENT--7.7%
(Cost $1,349,000)
Agreement with State Street Bank and Trust Company, 4.70%
dated 06/30/1999, to be repurchased at $1,349,176
07/01/1999, collateralized by $1,330,000 U.S. Treasury Note,
6.625% maturing 3/31/2002 (value $1,378,213) 1,349,000 1,349,000
-----------
TOTAL INVESTMENTS--(Cost $17,574,572*)--99.1% 17,274,294
-----------
OTHER ASSETS LESS LIABILITIES--0.9% 154,546
-----------
NET ASSETS--100.0% $17,428,840
===========
</TABLE>
* Aggregate cost for Federal tax purposes is $17,574,572. 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 $8,632 and $308,910,
respectively, resulting in net unrealized depreciation of $300,278.
The accompanying notes are an integral part of the financial statements
F-19
<PAGE>
A.G. SERIES TRUST
STATE STREET GLOBAL ADVISORS GROWTH EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ --------
<S> <C> <C>
COMMON STOCKS--98.8%
AEROSPACE--0.9%
General Dynamics Corporation................... 1,900 $ 130,150
United Technologies Corporation................ 1,200 86,025
----------
216,175
----------
ALUMINUM--1.6%
Aluminum Company of America.................... 5,900 365,062
----------
APPAREL & TEXTILES--0.7%
Intimate Brands Incorporated................... 3,360 159,180
----------
AUTOMOBILES--2.0%
Ford Motor Company............................. 8,100 457,144
----------
BANKS--5.4%
Bank One Corporation........................... 200 11,913
BankAmerica Corporation........................ 2,600 190,613
Chase Manhattan Corporation.................... 4,700 407,137
Fleet Financial Group Incorporated............. 8,000 355,000
UnionBanCal Corporation........................ 8,500 307,062
----------
1,271,725
----------
BROADCASTING--0.0%
CBS Corporation................................ 100 4,344
Hearst-Argyle Television Incorporated (a)...... 200 4,800
----------
9,144
----------
BUSINESS SERVICES--1.5%
Hertz Corporation.............................. 100 6,200
Unisys Corporation (a)......................... 2,400 93,450
Viad Corporation............................... 7,800 241,313
----------
340,963
----------
CHEMICALS--1.9%
Du Pont (E.I.) de Nemours & Company............ 600 40,988
FMC Corporation (a)............................ 3,500 239,094
Solutia Incorporated........................... 7,400 157,712
----------
437,794
----------
COMMERCIAL SERVICES--0.8%
R.R. Donnelley & Sons Company.................. 5,100 189,019
----------
COMPUTERS & BUSINESS EQUIPMENT--8.4%
Apple Computer Incorporated (a)................ 7,400 342,712
Dell Computer Corporation (a).................. 2,700 99,900
Gateway 2000 Incorporated (a).................. 1,100 64,900
Hewlett-Packard Company........................ 4,000 402,000
International Business Machines................ 5,400 697,950
Lexmark International Group Incorporated (a)... 5,000 330,312
Sun Microsystems Incorporated (a).............. 300 20,663
----------
1,958,437
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-20
<PAGE>
A.G. SERIES TRUST
STATE STREET GLOBAL ADVISORS GROWTH EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ --------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
DRUGS & HEALTH CARE--8.4%
Abbott Laboratories..................... 300 $ 13,650
Amgen Incorporated (a).................. 3,600 219,150
Becton, Dickinson & Company............. 100 3,000
Bristol Myers Squibb Company............ 5,100 359,231
C.R. Bard Incorporated.................. 3,900 186,469
Columbia / HCA Healthcare Corporation... 12,300 280,594
Eli Lilly & Company..................... 600 42,975
Guidant Corporation..................... 100 5,144
Johnson & Johnson....................... 3,200 313,600
Merck & Company Incorporated............ 3,600 266,400
Pfizer Incorporated..................... 1,900 208,525
Schering-Plough Corporation............. 1,200 63,600
Triad Hospitals Incorporated (a)........ 715 9,652
----------
1,971,990
----------
ELECTRIC UTILITIES--4.4%
GPU Incorporated........................ 8,200 345,938
Peco Energy Company..................... 4,400 184,250
PP&L Resources Incorporated............. 7,800 239,850
UtiliCorp United Incorporated........... 10,500 255,281
----------
1,025,319
----------
ELECTRONICS--3.4%
Altera Corporation (a).................. 7,300 268,731
Applied Materials Incorporated (a)...... 3,500 258,563
Intel Corporation....................... 4,500 267,750
----------
795,044
----------
FEDERAL AGENCIES--1.5%
Federal National Mortgage Association... 5,300 362,388
----------
FINANCIAL SERVICES--7.5%
Citigroup Incorporated.................. 14,950 710,125
J.P. Morgan & Company Incorporated...... 3,000 421,500
Lehman Brothers Holdings Incorporated... 4,200 261,450
Merrill Lynch & Company Incorporated.... 4,200 335,737
Waddell & Reed Financial Incorporated... 5 137
Wells Fargo Company..................... 500 21,375
----------
1,750,324
----------
FOOD & BEVERAGES--3.0%
Coca-Cola Company....................... 3,000 187,500
General Mills Incorporated.............. 1,900 152,712
IBP Incorporated........................ 6,000 142,500
Interstate Bakeries Corporation......... 4,200 94,238
Quaker Oats Company..................... 1,900 126,112
----------
703,062
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-21
<PAGE>
A.G. SERIES TRUST
STATE STREET GLOBAL ADVISORS GROWTH EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ --------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
FOREST PRODUCTS--0.6%
Georgia-Pacific Corporation.................. 3,200 $151,600
--------
GAS & PIPELINE UTILITIES--1.5%
Coastal Corporation.......................... 8,900 356,000
--------
HOTELS & RESTAURANTS--0.8%
Tricon Global Restaurants Incorporated (a)... 3,400 184,025
--------
HOUSEHOLD PRODUCTS--2.8%
Fortune Brands Incorporated.................. 6,900 285,487
Premark International Incorporated........... 6,300 236,250
Procter & Gamble Company..................... 1,600 142,800
--------
664,537
--------
INDUSTRIAL MACHINERY--0.2%
Tyco International Limited................... 400 37,900
--------
INSURANCE--1.9%
American International Group Incorporated.... 1,500 175,594
Loews Corporation............................ 2,200 174,075
PMI Group Incorporated....................... 1,400 87,937
--------
437,606
--------
INTERNATIONAL OIL--2.2%
Exxon Corporation............................ 5,900 455,037
Mobil Corporation............................ 600 59,400
--------
514,437
--------
LIQUOR--0.8%
Anheuser Busch Companies Incorporated........ 2,700 191,531
--------
MANUFACTURING--3.0%
General Electric Company..................... 5,600 632,800
York International Corporation............... 1,900 81,344
--------
714,144
--------
MULTIMEDIA--0.2%
Time Warner Incorporated..................... 700 51,450
--------
PAPER--0.5%
Boise Cascade Corporation.................... 2,500 107,188
--------
PETROLEUM SERVICES--0.2%
Tidewater Incorporated....................... 1,500 45,750
--------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-22
<PAGE>
A.G. SERIES TRUST
STATE STREET GLOBAL ADVISORS GROWTH EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ --------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
PUBLISHING--0.9%
Central Newspapers Incorporated................ 100 $ 3,763
Knight-Ridder Incorporated..................... 100 5,494
Meredith Corporation........................... 200 6,925
New York Times Company......................... 200 7,362
Readers Digest Association Incorporated........ 200 7,950
Times Mirror Company........................... 100 5,925
Tribune Company................................ 2,000 174,250
----------
211,669
----------
RETAIL GROCERY--0.5%
Kroger Company (a)............................. 3,000 83,813
Safeway Incorporated (a)....................... 500 24,750
----------
108,563
----------
RETAIL TRADE--8.7%
Best Buy Company Incorporated (a).............. 800 54,000
Federated Department Stores Incorporated (a)... 7,000 370,562
Home Depot Incorporated........................ 2,500 161,094
May Department Stores Company.................. 6,050 247,294
TJX Companies Incorporated..................... 9,100 303,144
Toys "R" Us Incorporated (a)................... 4,300 88,956
Wal Mart Stores Incorporated................... 16,900 815,425
----------
2,040,475
----------
SOFTWARE--5.0%
America Online Incorporated.................... 1,600 176,800
Microsoft Corporation (a)...................... 10,900 983,044
----------
1,159,844
----------
TELECOMMUNICATIONS--16.9%
Ameritech Corporation.......................... 700 51,450
AT&T Corporation............................... 10,050 560,916
Bell Atlantic Corporation...................... 5,800 379,175
BellSouth Corporation.......................... 6,100 285,937
Cisco Systems Incorporated (a)................. 9,900 638,550
GTE Corporation................................ 300 22,725
Lucent Technologies Incorporated............... 9,100 613,681
MCI WorldCom Incorporated (a).................. 5,900 507,769
SBC Communications Incorporated................ 3,200 185,600
Tellabs Incorporated........................... 6,000 405,375
US West Incorporated........................... 5,300 311,375
----------
3,962,553
----------
TOBACCO--0.4%
Philip Morris Companies Incorporated........... 2,400 96,450
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-23
<PAGE>
A.G. SERIES TRUST
STATE STREET GLOBAL ADVISORS GROWTH EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
TRANSPORTATION--0.3%
Burlington Northern Santa Fe Corporation 2,200 $ 68,200
-----------
TOTAL COMMON STOCKS--(Cost $19,823,299) 23,116,692
-----------
MUTUAL FUNDS--3.5%
FINANCIAL SERVICES--3.5%
Dreyfus Cash Management Plus Fund 824,709 824,709
-----------
TOTAL MUTUAL FUNDS--(Cost $824,709) 824,709
-----------
TOTAL INVESTMENTS--(Cost $20,648,008*)--102.3% 23,941,401
-----------
OTHER ASSETS LESS LIABILITIES--(2.3)% (550,493)
-----------
NET ASSETS--100.0% $23,390,908
===========
</TABLE>
(a) Non-income producing security
* Aggregate cost for Federal tax purposes is $20,648,008. 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 $3,446,050 and $152,657,
respectively, resulting in net unrealized appreciation of $3,293,393.
The accompanying notes are an integral part of the financial statements
F-24
<PAGE>
A.G. SERIES TRUST
STATE STREET GLOBAL ADVISORS MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- ---------
<S> <C> <C>
DISCOUNT NOTES--41.6%
FEDERAL AGENCIES--41.6%
Federal Farm Credit Bank
4.76%, 01/18/2000 **................... $200,000 $ 199,767
Federal Home Loan Bank
4.77%, 09/08/1999 **................... 250,000 249,976
5.54%, 07/15/1999 **................... 100,000 100,017
5.00%, 07/02/1999 **................... 125,000 124,983
Federal Home Loan Mortgage
4.71%, 05/18/2000 **................... 200,000 199,859
4.74%, 08/05/1999 **................... 480,000 477,788
4.90%, 07/09/1999 **................... 100,000 99,891
Federal National Mortgage Association
4.95%, 09/03/1999 **................... 141,000 139,759
6.45%, 07/29/1999 **................... 305,000 305,286
4.85%, 07/08/1999 **................... 45,000 44,958
4.90%, 07/06/1999 **................... 40,000 39,973
5.03%, 09/10/1999 **................... 215,000 212,867
----------
TOTAL DISCOUNT NOTES--(Cost $2,195,124) 2,195,124
----------
COMMERCIAL PAPER--37.8%
BEVERAGES--3.8%
Coca-Cola Company
4.88%, 07/12/1999...................... 200,000 199,702
----------
FINANCE & BANKING--24.5%
Abbey National Treasury Services PLC
5.08%, 01/13/2000...................... 250,000 249,968
Branch Banking & Trust Company
6.20%, 09/15/1999...................... 100,000 100,160
First Union National
5.30%, 03/01/2000...................... 150,000 150,000
General Electric Capital Corporation
5.03%, 08/27/1999 **................... 150,000 148,805
Household Finance Corporation
4.89%, 04/17/2000...................... 200,000 199,902
Merrill Lynch & Company Incorporated
5.14%, 08/11/1999...................... 250,000 248,537
Nationsbank Charlotte NC
5.12%, 02/22/2000...................... 100,000 99,988
Svenska Handelsbanken Incorporated
4.85%, 08/24/1999...................... 100,000 99,272
----------
1,296,632
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-25
<PAGE>
A.G. SERIES TRUST
STATE STREET GLOBAL ADVISORS MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- ----------
<S> <C> <C>
COMMERCIAL PAPER--(CONTINUED)
FINANCIAL SERVICES--5.7%
PACCAR Financial Corporation
4.85%, 07/21/1999 **........................................ $ 200,000 $ 199,423
Xerox Corporation
5.03%, 07/09/1999........................................... 100,000 99,888
----------
299,311
----------
INDUSTRIALS--3.8%
Shell Oil Company
6.63%, 07/01/1999 **........................................ 200,000 200,000
----------
TOTAL COMMERCIAL PAPER--(Cost $1,995,645) 1,995,645
----------
REPURCHASE AGREEMENT--21.1%
Agreement with Lehman Brothers, 4.70% dated 06/30/1999,
to be repurchased at $615,080 07/01/1999, collateralized
by $550,000 U.S. Treasury Note, 13.12% maturing 5/15/2001
(value $627,300)............................................. 615,000 615,000
Agreement with Merrill Lynch, 4.90% dated 06/30/1999, to be
repurchased at $500,068 07/01/1999, collateralized by
$515,000 FMC Discount Note, 1.49% maturing 1/17/2000
(value $510,816)............................................. 500,000 500,000
----------
TOTAL REPURCHASE AGREEMENT--(Cost $1,115,000) 1,115,000
----------
TOTAL INVESTMENTS--(Cost $5,305,769*)--100.5% 5,305,769
----------
OTHER ASSETS LESS LIABILITIES--(0.5)% (27,149)
----------
NET ASSETS--100.0% $5,278,620
==========
</TABLE>
**The rate shown reflects the current yield at June 30, 1999.
*Aggregate cost for Federal tax purposes is identical.
The accompanying notes are an integral part of the financial statements
F-26
<PAGE>
A.G. SERIES TRUST
VAN KAMPEN EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ ----------
<S> <C> <C>
COMMON STOCKS--94.3%
ADVERTISING--1.7%
Omnicom Group Incorporated...................... 2,300 $ 184,000
Outdoor Systems Incorporated (a)................ 1,700 62,050
TMP Worldwide Incorporated (a).................. 1,300 82,550
----------
328,600
----------
AEROSPACE--0.3%
Gulfstream Aerospace Corporation (a)............ 750 50,672
----------
AIR TRAVEL--0.4%
SouthWest Airlines Company...................... 2,600 80,925
----------
APPAREL & TEXTILES--1.2%
Intimate Brands Incorporated.................... 2,835 134,308
NIKE Incorporated............................... 600 37,988
Tommy Hilfiger Corporation (a).................. 900 66,150
----------
238,446
----------
AUTO PARTS--0.6%
Danaher Corporation............................. 1,350 78,469
Gentex Corporation (a).......................... 1,050 29,400
----------
107,869
----------
AUTOMOBILES--0.4%
Harley-Davidson Incorporated.................... 1,550 84,281
----------
BANKS--1.2%
First Tennessee National Corporation............ 1,100 42,144
Firstar Corporation............................. 4,050 113,400
Northern Trust Corporation...................... 850 82,450
----------
237,994
----------
BROADCASTING--6.7%
Adelphia Communications Corporation (a)......... 800 50,900
AT&T Corporation (a)............................ 4,400 161,700
Cablevision Systems Corporation (a)............. 2,200 154,000
CBS Corporation................................. 1,800 78,187
Clear Channel Communications Incorporated (a)... 5,014 345,653
Echostar Communications Corporation (a)......... 2,000 306,875
Hispanic Broadcasting Corporation (a)........... 650 49,319
Univision Communications Incorporated (a)....... 2,100 138,600
----------
1,285,234
----------
BUILDING & RELATED--0.6%
Lowe's Companies Incorporated................... 2,100 119,044
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-27
<PAGE>
A.G. SERIES TRUST
VAN KAMPEN EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ ----------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
BUSINESS SERVICES--2.2%
Affiliated Computer Services Incorporated (a).................................. 400 $ 20,250
Clarify Incorporated (a)....................................................... 1,000 41,250
Concord EFS Incorporated (a)................................................... 1,600 67,700
CSG Systems International Incorporated (a)..................................... 2,400 62,850
Fiserv Incorporated (a)........................................................ 1,400 43,837
Hertz Corporation.............................................................. 700 43,400
International Network Services (a)............................................. 1,725 69,647
Sapient Corporation (a)........................................................ 400 22,650
SunGuard Data Systems Incorporated (a)......................................... 1,500 51,750
----------
423,334
----------
CHEMICALS--0.6%
Waters Corporation (a)......................................................... 2,100 111,562
----------
COMMUNICATION SERVICES-0.9%
CenturyTel Incorporated........................................................ 1,100 43,725
Level 3 Communications Incorporated (a)........................................ 1,700 102,106
McLeodUSA Incorporated (a)..................................................... 700 38,500
----------
184,331
----------
COMPUTERS & BUSINESS EQUIPMENT--3.9%
EMC Corporation (a)............................................................ 3,400 187,000
Eletronics For Imaging Incorporated (a) .................................... 2,250 115,594
Lexmark International Group Incorporated (a)................................... 3,800 251,037
Network Appliance Incorporated (a)............................................. 3,500 195,563
----------
749,194
----------
CONTAINERS & GLASS--0.2%
Ball Corporation............................................................... 800 33,800
----------
DRUGS & HEALTH CARE--8.7%
Allergan Incorporated.......................................................... 2,250 249,750
Andrx Corporation (a).......................................................... 650 50,131
Bausch & Lomb Incorporated..................................................... 1,700 130,050
Biogen Incorporated (a)........................................................ 3,900 250,819
Biomet Incorporated............................................................ 600 23,850
Boston Scientific Corporation (a).............................................. 1,800 79,087
IDEC Pharmaceuticals Corporation (a)........................................... 1,100 84,769
Immunex Corporation (a)........................................................ 2,100 267,619
MedImmune Incorporated (a)..................................................... 3,100 210,025
MiniMed Incorporated (a)....................................................... 600 46,163
St. Jude Medical Incorporated (a).............................................. 750 26,719
TLC The Laser Center Incorporated (a).......................................... 200 9,600
VISX Incorporated (a).......................................................... 3,250 257,359
----------
1,685,941
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-28
<PAGE>
A.G. SERIES TRUST
VAN KAMPEN EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ --------
COMMON STOCKS--(CONTINUED)
<S> <C> <C>
ELECTRONICS--19.9%
Adaptec Incorporated (a)................................. 1,500 $ 52,969
Altera Corporation (a)................................... 4,400 161,975
Analog Devices Incorporated (a).......................... 3,000 150,562
ANTEC Corporation (a).................................... 1,200 38,475
Applied Materials Incorporated (a)....................... 1,500 110,812
Applied Micro Circuits Corporation (a)................... 1,000 82,250
Broadcom Corporation (a)................................. 3,150 455,372
Conexant Systems Incorporated (a)........................ 4,600 267,087
Corning Incorporated..................................... 800 55,974
Cree Research Incorporated (a)........................... 500 38,469
Flextronics International Limited (a).................... 2,000 111,000
Jabil Circuit Incorporated (a)........................... 1,700 76,713
LSI Logic Corporation (a)................................ 6,500 299,812
PMC-Sierra Incorporated (a).............................. 2,500 147,344
QLogic Corporation (a)................................... 1,000 132,000
RF Micro Devices Incorporated (a)........................ 1,850 138,056
SDL Incorporated (a)..................................... 1,250 63,828
Solectron Corporation (a)................................ 600 40,013
STMicroelectronics NV.................................... 2,250 156,094
Taiwan Semiconductor Manufacturing Company Limited ADR... 1,500 51,000
Teradyne Incorporated (a)................................ 2,050 147,087
Texas Instruments Incorporated........................... 1,400 203,000
Uniphase Corporation (a)................................. 2,500 415,000
Vitesse Semiconductor Corporation (a).................... 3,600 242,775
Xilinx Incorporated (a).................................. 3,700 211,825
----------
3,849,492
----------
FINANCIAL SERVICES--2.4%
Capital One Financial Corporation........................ 4,000 222,750
Knight/Trimark Group Incorporated (a).................... 800 48,250
Metris Companies Incorporated............................ 1,200 48,900
Old Kent Financial Corporation........................... 840 35,175
Providian Financial Corporation.......................... 1,200 112,200
----------
467,275
----------
FOREST PRODUCTS--0.4%
Weyerhaeuser Company..................................... 400 27,500
Willamette Industries Incorporated....................... 1,150 52,972
----------
80,472
----------
GAS EXPLORATION--0.9%
Amerada Hess Corporation................................. 1,000 59,500
Apache Corporation....................................... 2,500 97,500
Vastar Resources Incorporated............................ 300 15,731
----------
172,731
----------
HOTELS & RESTAURANTS--1.1%
Brinker International Incorporated (a)................... 900 24,469
Darden Restaurants Incorporated.......................... 1,500 32,719
Mandalay Resort Group (a)................................ 1,500 31,687
Outback Steakhouse Incorporated (a)...................... 3,250 127,766
----------
216,641
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-29
<PAGE>
A.G. SERIES TRUST
VAN KAMPEN EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ ----------
COMMON STOCKS--(CONTINUED)
<S> <C> <C>
HOUSEHOLD APPLIANCES & HOME FURNISHINGS--0.5%
Maytag Corporation............................. 1,400 $ 97,562
----------
INDUSTRIAL MACHINERY--1.2%
Tyco International Limited..................... 2,400 227,400
----------
INSURANCE--0.2%
Marsh & McLennan Companies Incorporated........ 600 45,300
----------
LEISURE TIME--0.6%
Hasbro Incorporated............................ 2,500 69,844
SFX Entertainment Incorporated................. 800 51,200
----------
121,044
----------
PUBLISHING--0.4%
Valassis Communications Incorporated (a)....... 2,250 82,406
----------
RETAIL TRADE--14.1%
Abercrombie & Fitch Company (a)................ 5,000 240,000
American Eagle Outfitters Incorporated (a)..... 2,000 91,000
AnnTaylor Stores Corporation (a)............... 1,400 63,000
Bed Bath & Beyond Incorporated (a)............. 3,200 123,200
Best Buy Company Incorporated (a).............. 10,700 722,250
BJ's Wholesale Club Incorporated (a)........... 1,000 30,063
Circuit City Stores-Circuit City Group......... 4,500 418,500
Consolidated Stores Corporation (a)............ 2,000 54,000
Family Dollar Stores Incorporated.............. 4,000 96,000
Home Depot Incorporated........................ 2,400 154,650
Linens `N Things Incorporated (a).............. 2,300 100,625
Ross Stores Incorporated....................... 750 37,781
Staples Incorporated (a)....................... 3,700 114,469
Tandy Corporation.............................. 6,000 293,250
Tiffany & Company.............................. 1,200 115,800
TJX Companies Incorporated..................... 2,200 73,287
----------
2,727,875
----------
SOFTWARE--12.0%
Adobe Systems Incorporated..................... 1,300 106,803
America Online Incorporated.................... 3,500 386,750
BroadVision Incorporated (a)................... 600 44,250
CNET Incorporated (a).......................... 1,400 80,675
Citrix Systems Incorporated (a)................ 2,000 113,000
Compuware Corporation (a)...................... 1,800 57,263
Exodus Communications Incorporated (a)......... 1,000 119,937
Gemstar Group Limited (a)...................... 4,800 313,200
InfoSpace.com Incorporated (a)................. 600 28,200
Intuit Incorporated (a)........................ 700 63,088
Macromedia Incorporated (a).................... 1,700 59,925
Mercury Interactive Corporation (a)............ 1,400 49,525
Microsoft Corporation (a)...................... 700 63,131
Novell Incorporated (a)........................ 2,750 72,875
Rational Software Corporation (a).............. 3,500 115,281
Real Networks Incorporated (a)................. 800 55,100
Siebel Systems Incorporated (a)................ 2,750 182,531
Verisign Incorporated (a)...................... 1,900 163,875
Veritas Software Company (a)................... 2,500 237,344
----------
2,312,753
----------
</TABLE>
The accompanying notes are an integral part of the financial statements
F-30
<PAGE>
A.G. SERIES TRUST
VAN KAMPEN EMERGING GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
------ -----------
COMMON STOCKS--(CONTINUED)
<S> <C> <C>
TELECOMMUNICATIONS--11.0%
Cisco Systems Incorporated (a).............. 2,419 $ 156,046
Comcast Corporation......................... 2,600 99,938
Comverse Technology Incorporated (a)........ 3,250 245,375
General Instrument Corporation (a).......... 1,450 61,625
Global Crossing Limited (a)................. 619 26,385
Global TeleSystems Group Incorporated (a)... 800 64,800
Metromedia Fiber Network Incorporated (a)... 6,400 230,000
MindSpring Enterprises Incorporated (a)..... 2,600 115,213
Motorola Incorporated....................... 1,600 151,600
Nokia Oyj................................... 3,700 338,781
Nortel Networks Corp........................ 2,150 186,647
QUALCOMM Incorporated....................... 3,200 459,200
-----------
2,135,610
-----------
TOTAL COMMON STOCKS--(Cost $13,307,397) 18,257,788
-----------
PRINCIPAL
AMOUNT
------
DISCOUNT NOTES--6.1%
FEDERAL AGENCIES--6.1%
Federal Home Loan Bank
(Cost $1,174,000)
4.60%, 07/01/1999...................... $1,174,000 1,174,000
-----------
TOTAL INVESTMENTS--
(Cost $14,481,397*)--100.4%............... 19,431,788
-----------
OTHER ASSETS LESS LIABILITIES--(0.4)%...... (80,047)
-----------
NET ASSETS--100.0%......................... $19,351,741
===========
</TABLE>
(a) Non-income producing security
ADR- American Depository Receipt
* Aggregate cost for Federal tax purposes is $14,481,397. 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 $5,117,429 and $167,039,
respectively, resulting in net unrealized appreciation of $4,950,390.
The accompanying notes are an integral part of the financial statements
F-31
<PAGE>
A.G. SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
<TABLE>
<CAPTION>
CREDIT AMERICAN
SUISSE CREDIT GENERAL
GROWTH SUISSE U.S.
AND INTERNATIONAL GOVERNMENT
INCOME EQUITY ELITEVALUE SECURITIES
--------------- ------------- ----------- ------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value.. $23,546,623 $7,138,001 $32,625,905 $15,925,294
Repurchase agreements, at value...... 6,416,000 327,000 - 1,349,000
--------------- ------------- ----------- ------------
Total Investments (a) (Note 1)....... 29,962,623 7,465,001 32,625,905 17,274,294
Cash, including foreign currency, at
value............................... 849 62,041 1,656 136
Receivable for securities sold....... 295,263 26,915 - -
Interest receivable.................. 45,259 18 535 171,992
Dividends receivable................. 5,048 14,557 12,117 -
Receivable for fund shares sold...... 36,501 17,218 34,525 31,403
Receivable due from adviser (Note 2). 26,901 36,223 15,574 22,975
Receivable for variation
margin.............................. 2,625 - - -
Prepaid insurance.................... 6,233 2,052 7,601 3,542
----------- ---------- ----------- -----------
TOTAL ASSETS........................ 30,381,302 7,624,025 32,697,913 17,504,342
LIABILITIES
Payable for securities purchased..... 3,423,139 11,551 - -
Payable for fund shares repurchased.. 28,246 5,607 38,184 18,443
Payable for forward contracts (Note
5).................................. - 6,906 - -
Payable for futures variation
margin.............................. - - - -
Accounts payable and accrued expenses 92,152 55,449 90,087 57,059
----------- ---------- ----------- -----------
TOTAL LIABILITIES................... 3,543,537 79,513 128,271 75,502
----------- ---------- ----------- -----------
NET ASSETS.......................... $26,837,765 $7,544,512 $32,569,642 $17,428,840
=========== ========== =========== ===========
NET ASSETS CONSIST OF:
Par value (Note 4).................... $ 18,251 $ 7,225 $ 20,609 $ 17,481
Paid-in capital (Note 4).............. 23,911,372 7,586,733 29,741,107 17,755,785
Undistributed (distributions in
excess of) net investment income..... 1,852 (34,892) (22) 1,857
Accumulated net realized gain (loss)
on investments, futures, and foreign
currency translations................ (1,241) (634,978) 74,564 (46,005)
Net unrealized appreciation
(depreciation) of:
Investments.......................... 2,914,791 627,997 2,733,384 (300,278)
Futures contracts.................... (7,260) - - -
Foreign currency..................... - (7,573) - -
----------- ---------- ----------- -----------
NET ASSETS.......................... $26,837,765 $7,544,512 $32,569,642 $17,428,840
=========== ========== =========== ===========
Shares outstanding at end of period.. 1,825,143 722,501 2,060,853 1,748,089
Net asset value per share............ $ 14.70 $ 10.44 $ 15.80 $ 9.97
(a) Investments in securities and
repurchase agreements, at cost... $27,047,832 $6,837,004 $29,892,521 $17,574,572
</TABLE>
The accompanying notes are an integral part of the financial statements
F-32
<PAGE>
A.G. SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
<TABLE>
<CAPTION>
STATE STATE
STREET STREET
GLOBAL GLOBAL VAN
ADVISORS ADVISORS KAMPEN
GROWTH MONEY EMERGING
EQUITY MARKET GROWTH
------------ ---------- -----------
<S> <C> <C> <C>
ASSETS
Investments in securities, at value.......... $23,941,401 $4,190,769 $19,431,788
Repurchase agreements, at value.............. - 1,115,000 -
----------- ---------- -----------
Total Investments (a) (Note 1)............... 23,941,401 5,305,769 19,431,788
Cash, including foreign currency, at value... 27 7,408 1,729
Receivable for securities sold............... 2,648,272 35 403,439
Interest receivable.......................... - 33,716 -
Dividends receivable......................... 21,952 - 2,985
Receivable for fund shares sold.............. 2,114 9,979 8,589
Receivable due from adviser (Note 2)......... 32,715 26,471 29,496
Prepaid insurance............................ 5,641 2,715 4,240
----------- ---------- -----------
TOTAL ASSETS................................ 26,652,122 5,386,093 19,882,266
LIABILITIES
Payable for securities purchased............. 3,147,820 - 433,479
Payable for fund shares repurchased.......... 30,028 70,759 21,455
Accounts payable and accrued expenses........ 83,366 36,714 75,591
----------- ---------- -----------
TOTAL LIABILITIES........................... 3,261,214 107,473 530,525
----------- ---------- -----------
NET ASSETS.................................. $23,390,908 $5,278,620 $19,351,741
=========== ========== ===========
NET ASSETS CONSIST OF:
Par value (Note 4)........................... $ 13,206 $ 52,786 $ 8,419
Paid-in capital (Note 4)..................... 19,207,093 5,225,834 12,947,547
Undistributed
net investment income...................... (3,713) - (30,196)
Accumulated net realized gain (loss) on
investments and foreign currency
translations................................. 880,929 - 1,475,581
Net unrealized appreciation of:
Investments.................................. 3,293,393 - 4,950,390
----------- ---------- -----------
NET ASSETS.................................. $23,390,908 $5,278,620 $19,351,741
=========== ========== ===========
Shares outstanding at end of period.......... 1,320,551 5,278,620 841,902
Net asset value per share.................... $ 17.71 $ 1.00 $ 22.99
(a) Investments in securities and repurchase
agreements, at cost...................... $20,648,008 $5,305,769 $14,481,397
</TABLE>
The accompanying notes are an integral part of the financial statements
F-33
<PAGE>
A.G. SERIES TRUST
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
<TABLE>
<CAPTION>
CREDIT AMERICAN
SUISSE CREDIT GENERAL
GROWTH SUISSE U.S.
AND INTERNATIONAL GOVERNMENT
INCOME EQUITY ELITEVALUE SECURITIES
----------- ------------- ---------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income**............................................. $ 259,697 $ 96 $ 139,925 $ 364,629
Dividend income**............................................. 47,003 69,473 157,627 -
---------- --------- ---------- ---------
TOTAL INVESTMENT INCOME...................................... 306,700 69,569 297,552 364,629
EXPENSES
Investment advisory fees (Note 2)............................. 26,704 8,176 32,813 15,962
Investment sub-advisory fees (Note 2)......................... 53,408 21,267 52,500 14,366
Sub-administration fees....................................... 26,749 26,752 26,749 26,749
Audit fees.................................................... 718 715 713 726
Custodian fees and expenses................................... 29,738 33,204 15,340 16,837
Trustee's fees (Note 2)....................................... 2,517 2,517 2,517 2,517
Transfer agent fees........................................... 2,147 2,160 1,669 2,162
Insurance expense............................................. 2,952 2,952 2,952 2,952
Miscellaneous expenses........................................ 2,337 2,181 2,336 1,891
---------- --------- ---------- ---------
Total operating expenses before
waivers and reimbursements................................... 147,270 99,924 137,589 84,162
Fees waived and expenses reimbursed (Note 2).................. (53,893) (66,265) (36,080) (46,173)
---------- --------- ---------- ---------
NET EXPENSES................................................. 93,377 33,659 101,509 37,989
---------- --------- ---------- ---------
NET INVESTMENT INCOME........................................ 213,323 35,910 196,043 326,640
---------- --------- ---------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS AND FOREIGN CURRENCY
Net realized gain (loss) on:
Investments and futures contracts............................ (72,742) (291,029) 89,279 (49,037)
Foreign currency transactions................................ - 5,597 - -
Net change in unrealized appreciation (depreciation) of:
Investments.................................................. 1,299,938 448,719 1,509,025 (358,960)
Futures contracts............................................ (4,163) - - -
Foreign currency............................................. - 23,596 - -
---------- --------- ---------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS)....................... 1,223,033 186,883 1,598,304 (407,997)
---------- --------- ---------- ---------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS...................................... $1,436,356 $ 222,793 $1,794,347 $ (81,357)
========== ========= ========== =========
** Net of foreign withholding taxes of........................ $ 161 $ 9,803 $ 904 $ -
========== ========= ========== =========
</TABLE>
The accompanying notes are an integral part of the financial statements
F-34
<PAGE>
A.G. SERIES TRUST
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
<TABLE>
<CAPTION>
STATE STATE
STREET STREET
GLOBAL GLOBAL VAN
ADVISORS ADVISORS KAMPEN
GROWTH MONEY EMERGING
EQUITY MARKET GROWTH
---------- --------- ----------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest income................................ $ 171 $169,420 $ 24,454
Dividend income................................ 122,928 - 10,797
---------- -------- ----------
TOTAL INVESTMENT INCOME....................... 123,099 169,420 35,251
EXPENSES
Investment advisory fees (Note 2).............. 23,792 8,563 18,778
Investment sub-advisory fees (Note 2).......... 34,260 6,850 37,555
Sub-administration fees........................ 26,749 26,749 26,749
Audit fees..................................... 713 728 720
Custodian fees and expenses.................... 33,719 16,000 29,473
Trustee's fees (Note 2)........................ 2,517 2,517 1,433
Transfer agent fees............................ 2,155 2,156 2,159
Insurance expense.............................. 2,942 2,952 2,952
Miscellaneous expenses......................... 2,346 1,892 1,992
---------- -------- ----------
Total operating expenses before
waivers and reimbursements.................... 129,193 68,407 121,811
Fees waived and expenses reimbursed (Note 2)... (59,275) (48,883) (56,364)
---------- -------- ----------
NET EXPENSES.................................. 69,918 19,524 65,447
---------- -------- ----------
NET INVESTMENT INCOME (LOSS).................. 53,181 149,896 (30,196)
---------- -------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS AND FOREIGN CURRENCY
Net realized gain (loss) on:
Investments.................................... 695,344 - 1,825,171
Net change in unrealized appreciation of:
Investments.................................... 653,468 - 1,082,739
---------- -------- ----------
NET REALIZED AND UNREALIZED
GAIN (LOSS).................................... 1,348,812 - 2,907,910
---------- -------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS....................... $1,401,993 $149,896 $2,877,714
========== ======== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements
F-35
<PAGE>
A.G. SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CREDIT SUISSE CREDIT SUISSE
GROWTH AND INCOME INTERNATIONAL EQUITY ELITEVALUE
-------------------------- -------------------------- -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
From operations:
Net investment income..................... $ 213,323 $ 249,352 $ 35,910 $ 26,969 $ 196,043 $ 247,265
Net realized gain (loss) on:
Investments and futures contracts........ (72,742) 422,709 (291,029) (335,423) 89,279 198,448
Foreign currency transactions............ - - 5,597 (14,341) - -
Net change in unrealized appreciation
(depreciation) of:
Investments.............................. 1,299,938 868,206 448,719 319,494 1,509,025 293,534
Future contracts......................... (4,163) (3,097) - - - -
Foreign currency......................... - - 23,596 (41,527) - -
----------- ----------- ---------- ---------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............... 1,436,356 1,537,170 222,793 (44,828) 1,794,347 739,247
Distributions to shareholders (Note 1):
From net investment income............... (210,839) (251,869) (95,100) (15,131) (196,202) (247,142)
In excess of net investment income....... - - - (1,293) - -
From net realized gains.................. - (392,447) - - - (201,075)
Fund share transactions (Note 4)......... 8,899,122 8,432,304 1,420,861 1,746,993 10,351,567 10,858,279
----------- ----------- ---------- ---------- ----------- -----------
Total increase in net assets.............. 10,124,639 9,325,158 1,548,554 1,685,741 11,949,712 11,149,309
NET ASSETS:
Beginning of period....................... 16,713,126 7,387,968 5,995,958 4,310,217 20,619,930 9,470,621
----------- ----------- ---------- ---------- ----------- -----------
End of period (a)......................... $26,837,765 $16,713,126 $7,544,512 $5,995,958 $32,569,642 $20,619,930
=========== =========== ========== ========== =========== ===========
(a) Including undistributed (distribution in
excess) net investment income......... $ 1,852 $ (632) $ (34,892) $ 24,298 $ (22) $ 137
=========== =========== ========== ========== =========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements
F-36
<PAGE>
A.G. SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
AMERICAN GENERAL U.S. STATE STREET GLOBAL STATE STREET GLOBAL
GOVERNMENT SECURITIES ADVISORS GROWTH EQUITY ADVISORS MONEY MARKET
--------------------------- --------------------------- ------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
From operations:
Net investment income..................... $ 326,640 $ 296,390 $ 53,181 $ 91,987 $ 149,896 $ 275,567
Net realized gain on:
Investments.............................. (49,037) 65,391 695,344 557,763 - -
Net change in unrealized
appreciation of investments............... (358,960) 21,558 653,468 1,554,162 - -
----------- ---------- ----------- ----------- ----------- ----------
Net increase/(decrease) in net
assets resulting from operations........ (81,357) 383,339 1,401,993 2,203,912 149,896 275,567
Distributions to shareholders (Note 1):
From net investment income................ (325,232) (309,413) (56,898) (91,978) (149,896) (275,567)
From net realized gains................... - (32,231) - (357,781) - -
Fund share transactions (Note 4).......... 9,156,236 4,651,600 6,546,056 6,418,498 (3,975,066) 4,153,422
----------- ---------- ----------- ----------- ----------- ----------
Total increase/(decrease) in net assets... 8,749,647 4,693,295 7,891,151 8,172,651 (3,975,066) 4,153,422
NET ASSETS:
Beginning of period....................... 8,679,193 3,985,898 15,499,757 7,327,106 9,253,686 5,100,264
----------- ---------- ----------- ----------- ----------- ----------
End of period (a)......................... $17,428,840 $8,679,193 $23,390,908 $15,499,757 $ 5,278,620 $9,253,686
=========== ========== =========== =========== =========== ==========
(a) Including undistributed
excess) net investment income........... $ 1,857 $ 449 $ (3,713) $ - $ - $ -
=========== ========== =========== =========== =========== ==========
</TABLE>
The accommpanying notes are an integral part of the financial statements
F-37
<PAGE>
A.G. SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS
VAN KAMPEN
EMERGING GROWTH
----------------------------
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, DECEMBER 31,
1999 1998
---- ----
INCREASE (DECREASE) IN NET ASSETS
From operations:
Net investment income....................... $ (30,196) $ (17,490)
Net realized loss on:
Investments................................ 1,825,171 (187,014)
Net change in unrealized appreciation of:
Investments................................ 1,082,739 3,018,535
----------- -----------
Net increase in net assets resulting
from operations........................... 2,877,714 2,814,031
Distributions to shareholders (Note 1):
From net investment income................. - (481)
Fund share transactions (Note 4)........... 4,799,995 3,361,948
----------- -----------
Total increase in net assets................ 7,677,709 6,175,497
NET ASSETS:
Beginning of period......................... 11,674,032 5,498,534
----------- -----------
End of period (a)........................... $19,351,741 $11,674,032
=========== ===========
(a) Including undistributed
net investment income..................... $ (30,196) $ 298
=========== ===========
The accompanying notes are an integral part of the financial statements
F-38
<PAGE>
A.G. SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CREDIT SUISSE GROWTH AND INCOME
------------------------------------------------------------------------------
PERIOD
ENDED YEAR YEAR YEAR PERIOD
JUNE 30, ENDED ENDED ENDED ENDED
1999 DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1998 1997 1996 1995*
-------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE
Net asset value, beginning of period.......... $ 13.89 $ 12.72 $11.04 $10.46 $ 10.00
------- ------- ------ ------ ---------
INVESTMENT OPERATIONS
Net investment income (1)..................... 0.13 0.27 0.33 0.47 0.14
Net realized and unrealized gain.............. 0.81 1.52 2.11 0.96 0.51
------- ------- ------ ------ ---------
Total from investment operations.............. 0.94 1.79 2.44 1.43 0.65
------- ------- ------ ------ ---------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income......................... (0.13) (0.28) (0.33) (0.47) (0.14)
Net realized gains............................ (0.00) (0.34) (0.43) (0.38) -
In excess of net realized gains............... 0 - - - (0.05)
------- ------- ------ ------ ---------
Total distributions to shareholders........... (0.13) (0.62) (0.76) (0.85) (0.19)
------- ------- ------ ------ ---------
Net asset value, end of period................ $ 14.70 $ 13.89 $12.72 $11.04 $ 10.46
======= ======= ====== ====== =========
TOTAL RETURN.................................. 6.77%(2) 14.16% 22.33% 13.82% 6.57% (2)
RATIOS AND SUPPLEMENTAL DATA
Expenses to average net assets (3)............ 0.87%(4) 0.81% 0.62% 0.49% 0.12% (4)
Net investment income to average net assets... 2.87%(4) 3.04% 2.87% 4.65% 6.99% (4)
Portfolio turnover rate....................... 127% 151% 191% 217% 75%
Net assets, end of period (000's)............. $26,838 $16,713 $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, 1999, December 31, 1998,
December 31, 1997, December 31, 1996, and December 31, 1995, net investment
income (loss) per share would have been $0.10, $0.16, $0.10, $0.00 and $(0.06)
for the Credit Suisse Growth and Income Portfolio.
(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, 1999, December 31, 1998, December 31, 1997, December 31,
1996, and December 31, 1995, the ratio of operating expenses to average net
assets would have been 1.38%, 2.01%, 3.26%, 5.15% and 9.95% for the Credit
Suisse Growth and Income Portfolio.
(4) Annualized.
The accompanying notes are an integral part of the financial statements
F-39
<PAGE>
A.G. SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CREDIT SUISSE INTERNATIONAL EQUITY
------------------------------------------------------------------------------
PERIOD
ENDED YEAR YEAR YEAR PERIOD
JUNE 30, ENDED ENDED ENDED ENDED
1999 DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1998 1997 1996 1995*
---------- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE
Net asset value, beginning of period.......... $10.23 $ 10.35 $10.67 $10.33 $ 10.00
------ ------- ------ ------ ---------
INVESTMENT OPERATIONS
Net investment income (1)..................... 0.04 0.06 0.08 0.15 0.06
Net realized and unrealized gain (loss)....... 0.30 (0.15) 0.37 1.56 0.33
------ ------- ------ ------ ---------
Total from investment operations.............. 0.34 (0.09) 0.45 1.71 0.39
------ ------- ------ ------ ---------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income......................... (0.13) (0.03) (0.12) (0.15) (0.06)
In excess of net investment income............ (0.00) - (0.20) - -
Net realized gains............................ - - (0.45) (0.24) -
In excess of net realized gains............... - - - (0.98) -
------ ------- ------ ------ ---------
Total distributions to shareholders........... (0.13) (0.03) (0.77) (1.37) (0.06)
------ ------- ------ ------ ---------
Net asset value, end of period................ $10.44 $ 10.23 $10.35 $10.67 $ 10.33
====== ======= ====== ====== =========
TOTAL RETURN.................................. 3.41%(2) (0.86)% 4.30% 16.50% 3.93%(2)
RATIOS AND SUPPLEMENTAL DATA
Expenses to average net assets (3)............ 1.02%(4) 0.94% 0.77% 0.60% 0.12%(4)
Net investment income to average net assets... 0.54%(4) 0.53% 0.71% 1.09% 2.89%(4)
Portfolio turnover rate....................... 43% 61% 6% 79% 2%
Net assets, end of period (000's)............. $7,545 $ 5,996 $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, 1999 December 31, 1998,
December 31, 1997, December 31, 1996, and December 31, 1995, net investment loss
per share would have been $(0.05) $(0.19), $(0.29), $(1.25) and $(0.18) for the
Credit Suisse International Equity Portfolio.
(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, 1999, December 31, 1998, December 31, 1997, December 31,
1996, and December 31, 1995, the ratio of operating expenses to average net
assets would have been 3.05%, 3.78%, 5.06%, 6.41% and 11.83% for the Credit
Suisse International Equity Portfolio.
(4) Annualized.
The accompanying notes are an integral part of the financial statements
F-40
<PAGE>
A.G. SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
ELITE VALUE
-------------------------------------------------------------
PERIOD
ENDED YEAR YEAR PERIOD
JUNE 30, ENDED ENDED ENDED
1999 DECEMBER 31, DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1998 1997 1996*
----------- ------------ ------------- -----------
<S> <C> <C> <C> <C>
NET ASSET VALUE
Net asset value, beginning of period.......... $ 14.95 $ 14.38 $12.32 $ 10.00
------- ------- ------ ---------
INVESTMENT OPERATIONS
Net investment income (1)..................... 0.10 0.25 0.19 0.18
Net realized and unrealized gain.............. 0.85 0.72 2.39 2.48
------- ------- ------ ---------
Total from investment operations.............. 0.95 0.97 2.58 2.66
------- ------- ------ ---------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment loss........................... (0.10) (0.25) (0.19) (0.18)
Net realized gains............................ 0 (0.15) (0.33) (0.16)
------- ------- ------ ---------
Total distributions to shareholders........... (0.10) (0.40) (0.52) (0.34)
------- ------- ------ ---------
Net asset value, end of period................ $ 15.80 $ 14.95 $14.38 $ 12.32
======= ======= ====== =========
TOTAL RETURN.................................. 6.43%(2) 6.72% 21.08% 26.70% (2)
RATIOS AND SUPPLEMENTAL DATA
Expenses to average net assets (3)............ 0.77%(4) 0.71% 0.52% 0.36% (4)
Net investment income to average net assets... 2.27%(4) 2.42% 1.58% 1.74% (4)
Portfolio turnover rate....................... 27% 39% 29% 21%
Net assets, end of period (000's)............. $32,570 $20,620 $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, 1999, December 31, 1998,
December 31, 1997 and December 31, 1996, net investment income (loss) per share
would have been $0.09, $0.17, $0.00 and $(0.54) for the EliteValue Portfolio.
(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, 1999, December 31, 1998, December 31, 1997 and December
31, 1996, the ratio of operating expenses to average net assets would have been
1.05%, 1.41%, 2.76% and 7.45% for the EliteValue Portfolio.
(4) Annualized.
The accompanying notes are an integral part of the financial statements
F-41
<PAGE>
A.G. SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
AMERICAN GENERAL U.S. GOVERNMENT SECURITIES
-----------------------------------------------------------------
PERIOD
ENDED YEAR YEAR PERIOD
JUNE 30, ENDED ENDED ENDED
1999 DECEMBER 31, DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1998 1997 1996*
-------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
NET ASSET VALUE
Net asset value, beginning of period.......... $ 10.23 $10.07 $ 9.79 $ 10.00
------- ------ ------ ----------
INVESTMENT OPERATIONS
Net investment income (1)..................... 0.22 0.52 0.57 0.53
Net realized and unrealized gain (loss)....... (0.26) 0.22 0.28 (0.21)
------- ------ ------ ----------
Total from investment operations.............. (0.04) 0.74 0.85 0.32
------- ------ ------ ----------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income......................... (0.22) (0.54) (0.57) (0.53)
Net realized gains............................ - (0.04) - -
------- ------ ------ ----------
Total distributions to shareholders........... (0.22) (0.58) (0.57) (0.53)
------- ------ ------ ----------
Net asset value, end of period................ $ 9.97 $10.23 $10.07 $ 9.79
======= ====== ====== ==========
TOTAL RETURN.................................. (0.47)%(2) 7.49% 8.89% 3.40%(2)
RATIOS AND SUPPLEMENTAL DATA
Expenses to average net assets (3)............ 0.595%(4) 0.53% 0.35% 0.22%(4)
Net investment income to average net assets... 5.71%(4) 5.95% 6.25% 5.91%(4)
Portfolio turnover rate....................... 78% 24% 615% 297%
Net assets, end of period (000's)............. $17,429 $8,679 $3,986 $2,347
</TABLE>
* The American General U.S. Government Securities Portfolio, formerly Salomon
Brothers U.S. Government Securities Portfolio, commenced operations on
February 6, 1996.
+ The Salomon Brothers U.S. Government Securities Portfolio changed its name
to American General U.S. Government Securities Portfolio effective March 9,
1999 to reflect that Salomon Brothers no longer sub-advises the portfolio.
(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, 1999, December 31, 1998,
December 31, 1997, and December 31, 1996, net investment income per share would
have been $0.19, $0.40, $0.28 and $0.10 for the American General U.S. Government
Securities Portfolio.
(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, 1999, December 31, 1998, December 31, 1997, and December
31, 1996, the ratio of operating expenses to average net assets would have been
1.32%, 2.46%, 4.84% and 5.26% for the American General U.S. Government
Securities Portfolio.
(4) Annualized.
The accompanying notes are an integral part of the financial statements
F-42
<PAGE>
A.G. SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
STATE STREET GLOBAL ADVISORS GROWTH EQUITY
------------------------------------------------------------------------------
PERIOD
ENDED YEAR YEAR YEAR PERIOD
JUNE 30, ENDED ENDED ENDED ENDED
1999 DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1998 1997 1996 1995*
-------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE
Net asset value, beginning of period.......... $ 16.57 $ 14.07 $11.85 $10.31 $ 10.00
------- ------- ------ ------ ---------
INVESTMENT OPERATIONS
Net investment income (1)..................... 0.04 0.13 0.17 0.20 0.05
Net realized and unrealized gain.............. 1.15 2.89 3.56 1.99 0.31
------- ------- ------ ------ ---------
Total from investment operations.............. 1.19 3.02 3.73 2.19 0.36
------- ------- ------ ------ ---------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income......................... (0.05) (0.13) (0.17) (0.20) (0.05)
Net realized gains............................ 0 (0.39) (1.34) (0.45) -
------- ------- ------ ------ ---------
Total distributions to shareholders........... (0.05) (0.52) (1.51) (0.65) (0.05)
------- ------- ------ ------ ---------
Net asset value, end of period................ $ 17.71 $ 16.57 $14.07 $11.85 $ 10.31
======= ======= ====== ====== =========
TOTAL RETURN.................................. 7.17%(2) 21.60% 31.67% 21.36% 3.57%(2)
RATIOS AND SUPPLEMENTAL DATA
Expenses to average net assets (3)............ 0.73%(4) 0.66% 0.48% 0.39% 0.12%(4)
Net investment income to average net assets... 0.56%(4) 0.88% 1.34% 1.80% 2.46%(4)
Portfolio turnover rate....................... 139% 140% 111% 89% 9%
Net assets, end of period (000's)............. $23,391 $15,500 $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, 1999, December 31, 1998,
December 31, 1997, December 31,1996 and December 31, 1995, the net investment
loss per share would have been $(0.00), $(0.02), $(0.11), $(0.29) and $(0.15)
for the State Street Global Advisor Growth Equity Portfolio.
(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, 1999, December 31, 1998, December 31, 1997, December 31,
1996 and December 31, 1995, the ratio of operating expenses to average net
assets would have been 1.36%, 1.96%, 3.29%, 4.83% and 9.94% for the State Street
Global Advisor Growth Equity Portfolio.
(4) Annualized.
The accompanying notes are an integral part of the financial statements
F-43
<PAGE>
A.G. SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
STATE STREET GLOBAL ADVISORS MONEY MARKET
------------------------------------------------------------------------------
PERIOD
ENDED YEAR YEAR YEAR PERIOD
JUNE 30, ENDED ENDED ENDED ENDED
1999 DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1998 1997 1996 1995*
-------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE
Net asset value, beginning of period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ---------
INVESTMENT OPERATIONS
Net investment income (1)..................... 0.02 0.05 0.05 0.05 0.01
------ ------ ------ ------ ---------
Total from investment operations.............. 0.02 0.05 0.05 0.05 0.01
------ ------ ------ ------ ---------
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income......................... (0.02) (0.05) (0.05) (0.05) (0.01)
------ ------ ------ ------ ---------
Total distributions to shareholders........... (0.02) (0.05) (0.05) (0.05) (0.01)
------ ------ ------ ------ ---------
Net asset value, end of period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== =========
TOTAL RETURN.................................. 2.18%(2) 5.23% 5.50% 5.19% 1.17% (2)
RATIOS AND SUPPLEMENTAL DATA
Expenses to average net assets (3)............ 0.57%(4) 0.49% 0.32% 0.29% 0.12% (4)
Net investment income to average net assets... 4.37%(4) 5.12% 5.41% 5.23% 5.25% (4)
Net assets, end of period (000's)............. $5,279 $9,254 $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, 1999, December 31, 1998,
December 31, 1997, December 31, 1996, and December 31, 1995, net investment
income (loss) per share would have been $0.01, $0.04, $0.03, $(0.08) and $(0.35)
for the State Street Global Advisors Money Market Portfolio.
(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, 1999, December 31, 1998, December 31, 1997, December 31,
1996, and December 31, 1995, the ratio of operating expenses to average net
assets would have been 1.99%, 2.44%, 4.17%, 14.15% and 161.83% for the State
Street Global Advisors Money Market Portfolio.
(4) Annualized.
The accompanying notes are an integral part of the financial statements
F-44
<PAGE>
A.G. SERIES TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
VAN KAMPEN EMERGING GROWTH
--------------------------------------------------------------
PERIOD
ENDED YEAR YEAR PERIOD
JUNE 30, ENDED ENDED ENDED
1999 DECEMBER 31, DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1998 1997 1996*
-------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
NET ASSET VALUE
Net asset value, beginning of period.......... $ 19.05 $ 13.87 $11.54 $ 10.00
------- ------- ------ ----------
INVESTMENT OPERATIONS
Net investment income (1)..................... (0.04) (0.03) 0.03 0.05
Net realized and unrealized gain.............. 3.98 5.21 2.33 1.86
------- ------- ------ ----------
Total from investment operations.............. 3.94 5.18 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................ $ 22.99 $ 19.05 $13.87 $ 11.54
======= ======= ====== ==========
TOTAL RETURN.................................. 20.61%(2) 37.43% 20.45% 19.06% (2)
RATIOS AND SUPPLEMENTAL DATA
Expenses to average net assets (3)............ 0.87%(4) 0.80% 0.62% 0.46% (4)
Net investment income to average net assets... 0.47%(4) 0.57% 0.23% 0.40% (4)
Portfolio turnover rate....................... 71% 107% 107% 154%
Net assets, end of period (000's)............. $19,352 $11,674 $5,499 $ 1,882
</TABLE>
*-The Van Kampen 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, 1999, December 31, 1998,
December 31, 1997 and December 31, 1996, net investment loss per share would
have been $(0.10), $(0.26), $(0.42) and $(1.29) for the Van Kampen Emerging
Growth Portfolio.
(2) Total return represents aggregate total return for the period indicated and
is not annualized.
(3) If the Investment Adviser and the Sub-administrator had not waived fees and
American General Annuity Insurance Company had not reimbursed expenses for the
periods ended June 30, 1999, December 31, 1998, December 31, 1997 and December
31, 1996, the ratio of operating expenses to average net assets would have been
1.62$, 2.64%, 5.65% and 11.22% for the Van Kampen Emerging Growth Portfolio.
(4) Annualized.
The accompanying notes are an integral part of the financial statements
F-45
<PAGE>
A.G. SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
A.G. Series Trust, formerly 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. 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 (the "EliteValue Portfolio"), American
General U.S. Government Securities Portfolio, formerly the 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 Emerging Growth
Portfolio, formerly 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"), an indirect 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 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.
F-46
<PAGE>
A.G. SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1999
(C) WHEN ISSUED TRANSACTIONS - The Portfolio 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 Portfolio 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 contracts to
purchase, 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; (a) the difference between the current sale price and the
forward price for the future purchase plus the interest earned on the cash
proceeds of the initial sale; or (b) a set fee determined at the time the
transaction is entered into; or (c) 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 control 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 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.
F-47
<PAGE>
A.G. SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1999
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.
(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 which holds
its shares.
F-48
<PAGE>
A.G. SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1999
2. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under an Investment Advisory Agreement (the "Agreement"), A.G. Investment
Advisory Services, Inc., formerly AGA Investment Advisory Services, Inc.,
formerly WNL Investment Advisory Services, Inc., (the "Adviser"), an indirect
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:
Credit Suisse Growth and Income 0.75%
Credit Suisse International Equity 0.90%
EliteValue 0.65%
American General U.S. Government Securities 0.475%
State Street Global Advisors Growth Equity 0.61%
State Street Global Advisors Money Market 0.45%
Van Kampen Emerging Growth 0.75%
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 to each Portfolios as shown in the table
above.
The Adviser pays each Sub-adviser the following fees:
Credit Suisse Growth and Income 0.50%
Credit Suisse International Equity 0.65%
EliteValue 0.40%
American General U.S. Government Securities 0.225%*
State Street Global Advisors Growth Equity 0.36%
State Street Global Advisors Money Market 0.20%
Van Kampen Emerging Growth 0.50%
*Effective March 9, 1999, the Adviser re-assumed the day to day management of
the Portfolio.
In addition, the Life Company, an affiliate of the Adviser, has undertaken to
bear until May 1, 2000 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, a 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:
Credit Suisse Asset Management, formerly 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 through March
8, 1999; State Street Global Advisors for the Growth Equity and Money Market
Portfolios; and Van Kampen Asset Management Inc. for the Emerging Growth
Portfolio.
F-49
<PAGE>
A.G. SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1999
The Trust's Sub-administrator, custodian, transfer and dividend-paying agent is
State Street Bank and Trust Company.
For the period ended June 30, 1999, the Life Company reimbursed operating
expenses as follows:
<TABLE>
<CAPTION>
Expenses
Reimbursed
----------------------------------
<S> <C>
Credit Suisse Growth and Income $53,893
Credit Suisse International Equity 65,265
EliteValue 36,080
American General U.S. Government Securities 46,173
State Street Global Advisors Growth Equity 59,275
State Street Global Advisors Money Market 48,883
Van Kampen Emerging Growth 56,364
</TABLE>
American General Distributors, Inc., formerly A.G. Distributors, Inc. formerly
AGA Brokerage Services, Inc., and formerly WNL Brokerage Services, Inc., an
indirect wholly-owned 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.
3. SECURITIES TRANSACTIONS
The aggregate cost of purchases and proceeds from sales of securities, excluding
short-term investments, for the six months ended June 30, 1999 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 $ 6,834,170 $18,358,673 $ 2,443,880 $18,898,725
Credit Suisse International Equity 4,227,995 - 2,727,015 -
EliteValue 14,108,646 646,515 5,627,613 -
American General U.S. Government Securities - 16,295,082 - 7,992,240
State Street Global Advisors Growth Equity 20,389,569 633,385 14,026,794 405,601
State Street Global Advisors Money Market - - - -
Van Kampen Emerging Growth 14,397,347 - 10,188,307 -
</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.
F-50
<PAGE>
A.G. SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1999
<TABLE>
<CAPTION>
CREDIT SUISSE GROWTH AND INCOME PORTFOLIO
SIX MONTHS ENDED JUNE 30, 1999 YEAR ENDED DECEMBER 31, 1998
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Capital stock sold 863,511 $12,363,361 792,134 $10,722,666
Capital stock issued upon
reinvestment of dividends
and distributions 14,561 210,839 46,708 644,316
Capital stock redeemed (255,750) (3,675,078) (216,635) (2,934,678)
- --------------------------------------------------------------------------------------------------
Net increase 622,322 $ 8,899,122 622,207 $ 8,432,304
==================================================================================================
</TABLE>
<TABLE>
<CAPTION>
CREDIT SUISSE INTERNATIONAL EQUITY PORTFOLIO
SIX MONTHS ENDED JUNE 30, 1999 YEAR ENDED DECEMBER 31, 1998
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Capital stock sold 238,894 $ 2,515,732 272,097 $ 2,783,727
Capital stock issued upon
reinvestment of dividends
and distributions 12,182 95,131 1,499 16,424
Capital stock redeemed (114,883) (1,190,002) (103,928) (1,053,158)
- --------------------------------------------------------------------------------------------------
Net increase 136,193 $ 1,420,861 169,668 $ 1,746,993
==================================================================================================
</TABLE>
<TABLE>
<CAPTION>
ELITEVALUE PORTFOLIO
SIX MONTHS ENDED JUNE 30, 1999 YEAR ENDED DECEMBER 31, 1998
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Capital stock sold 921,308 $14,044,158 989,195 $14,792,557
Capital stock issued upon
reinvestment of dividends
and distributions 12,820 196,202 29,857 448,216
Capital stock redeemed (252,431) (3,888,793) (298,572) (4,382,494)
- --------------------------------------------------------------------------------------------------
Net increase 681,697 $10,351,567 720,480 $10,858,279
==================================================================================================
</TABLE>
<TABLE>
<CAPTION>
AMERICAN GENERAL U.S. GOVERNMENT SECURITIES PORTFOLIO
SIX MONTHS ENDED JUNE 30, 1999 YEAR ENDED DECEMBER 31, 1998
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Capital stock sold 1,249,505 $12,716,069 589,383 $ 6,067,048
Capital stock issued upon
reinvestment of dividends
and distributions 32,428 325,232 33,449 341,645
Capital stock redeemed (381,974) (3,885,065) (170,600) (1,757,093)
- --------------------------------------------------------------------------------------------------
Net increase 899,959 $ 9,156,236 452,232 $ 4,651,600
==================================================================================================
</TABLE>
<TABLE>
<CAPTION>
STATE STREET GLOBAL ADVISORS GROWTH EQUITY PORTFOLIO
SIX MONTHS ENDED JUNE 30, 1999 YEAR ENDED DECEMBER 31, 1998
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Capital stock sold 581,713 $ 9,902,102 544,056 $ 8,356,169
Capital stock issued upon
reinvestment of dividends
and distributions 3,269 56,898 27,475 449,775
Capital stock redeemed (199,687) (3,412,944) (157,065) (2,387,446)
- --------------------------------------------------------------------------------------------------
Net increase 385,295 $ 6,546,056 414,466 $ 6,418,498
==================================================================================================
</TABLE>
F-51
<PAGE>
A.G. SERIES TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1999
<TABLE>
<CAPTION>
STATE STREET GLOBAL ADVISORS MONEY MARKET PORTFOLIO
SIX MONTHS ENDED JUNE 30, 1999 YEAR ENDED DECEMBER 31, 1998
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Capital stock sold 22,435,892 $ 22,435,892 46,307,126 $ 46,307,126
Capital stock issued upon
reinvestment of dividends
and distributions 149,896 149,896 275,567 275,567
Capital stock redeemed (26,560,854) (26,560,854) (42,429,271) (42,429,271)
- --------------------------------------------------------------------------------------------------
Net increase/(decrease) (3,975,066) $ (3,975,066) 4,153,422 $ 4,153,422
==================================================================================================
</TABLE>
<TABLE>
<CAPTION>
VAN KAMPEN EMERGING GROWTH PORTFOLIO
SIX MONTHS ENDED JUNE 30, 1999 YEAR ENDED DECEMBER 31, 1998
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Capital stock sold 364,556 $ 7,672,926 357,277 $ 5,569,032
Capital stock issued upon
reinvestment of dividends
and distributions - - 30 481
Capital stock redeemed (135,336) (2,872,931) (141,146) (2,207,565)
- --------------------------------------------------------------------------------------------------
Net increase 229,220 $ 4,799,995 216,161 $ 3,361,948
==================================================================================================
</TABLE>
5. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
At June 30, 1999, 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
CURRENCY SETTLEMENT ORIGINATION CURRENT UNREALIZED
SOLD DATE DATE VALUE (DEPRECIATION)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EUR 9/29/1999 $500,000 $493,094 $(6,906)
</TABLE>
6. TAX INFORMATION
For Federal income tax purposes capital loss carryforwards (exclusive of certain
capital losses incurred after October 31) of $84,949 and $254,219 is available
to the extent provided by regulations to offset future realized capital gains of
the Van Kampen Emerging Growth Portfolio. These losses will expire in 2005 and
2006, respectively. In addition, $317,406 is available to the extent provided
by regulations to offset future realized capital gains of Credit Suisse
International Equity Portfolio and this loss expires in 2006.
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, 1998, the Credit Suisse
International Equity Portfolio elected to defer a net capital loss of $4,727.
7. SUBSEQUENT EVENT
On July 7, 1999, the Trust and several other parties filed a substitution
application with the Securities and Exchange Commission. If the transactions
described in that application are approved and consummated, the Trust will be
liquidated. Assuming approval, it is anticipated that, the liquidation of the
Trust will be completed prior to December 31, 1999.
F-52
<PAGE>
AMERICAN GENERAL ANNUITY INSURANCE COMPANY
VARIABLE ANNUITY SERVICE CENTER
205 E. 10TH AVENUE
AMARILLO, TEXAS 79101
F-53
