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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORMN-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number811-07238
SUNAMERICA SERIES TRUST
(Exact name of registrant as specified in charter)
21650 Oxnard Street, 10th Floor, Woodlands Hills, CA 91367
(Address of principal executive offices) (Zip code)
John T. Genoy
Senior Vice President
SunAmerica Asset Management, LLC
Harborside 5, 185 Hudson Street, Suite 3300
Jersey City, NJ 07311
(Name and address of agent for service)
Registrant’s telephone number, including area code: (201) 324-6414
Date of fiscal year end:December 31
Date of reporting period:December 31, 2018
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Item 1. Reports to Stockholders
This filing is on behalf of five of the fifty-eight Investment Company Series of SunAmerica Series Trust. Also, attached to this filing are the financial statements with regard to the five Master Funds of the American Funds Insurance Series®.
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SUNAMERICA SERIES TRUST
ANNUAL REPORT
DECEMBER 31, 2018
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SUNAMERICA SERIES TRUST
Dear SunAmerica Series Trust Investor
We are pleased to present the SunAmerica Series Trust annual report, which contains the investment portfolio information and the financial statements of the Trust portfolios that invest exclusively in shares of corresponding funds (“Master Funds”) of the American Funds Insurance Series (“AFIS”) for the reporting period ended December 31, 2018.
If you have any questions, please contact your investment representative, or you may contact us directly at 1-800-445-7862.
Thank you for the confidence you place in us with your financial future, and we look forward to reporting to you once again in six months.
Sincerely,
John T. Genoy
President
SunAmerica Series Trust
Note: All performance figures quoted are for the SunAmerica Series Trust. They do not reflect fees and charges associated with the variable annuity. Past performance is no guarantee of future results. Annuities are long-term investment vehicles designed for retirement purposes. Early withdrawal may be subject to withdrawal charges and if taken prior to age 59 1/2, a 10% federal tax penalty may apply. An investment in a variable annuity involves investment risk, including possible loss of principal. The contract, when redeemed, may be worth more or less than the total amount invested.
Investments in stocks and bonds are subject to risks. The Portfolios are indirectly exposed to these risks through their investments in the master funds. Investments in growth stocks may be subject to volatile price swings and therefore present a greater potential for loss than other investments. Income seeking investment strategies may not be realized due to changes in dividend policies or the availability of capital resources. Investments in non-U.S. stocks and bonds may be subject to additional risks such as fluctuations in foreign currencies, political and economic instability, differences in securities regulation and accounting standards, foreign tax laws, and limited availability of public information. Investments in lower rated bonds and “junk bonds” are considered speculative due to the heightened risk of default and are subject to unpredictable losses as a result of changes in the issuer’s creditworthiness.
There can be no assurance that the Portfolios will meet their investment objectives. The master funds’ asset allocation may result in underperformance relative to benchmarks and other funds with similar objectives.
A full description of the investment goals, principal strategies, and risks for each Portfolio are provided in the prospectus.
For a full description of the master funds, please consult the prospectus for the relevant underlying master fund.
Investments are not guaranteed or endorsed by any bank, is not a deposit or obligation of any bank, and is not federally insured by Federal Deposit Corporation (FDIC), the Federal Reserve Board or any other federal government agency.
• Not FDIC or NCUA/NCUSIF Insured
• May Lose Value • No Bank of Credit Union Guarantee
• Not a Deposit • Not insured by any Federal Government Agency
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SUNAMERICA SERIES TRUST
December 31, 2018 |
(unaudited)
Disclosure of Portfolio Expenses in Shareholder Reports
As a shareholder of a separate series (a “Portfolio”) in the SunAmerica Series Trust (the “Trust”), you incur ongoing costs, including management fees; service(12b-1) fees; and other Portfolio expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolios and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at July 1, 2018 and held until December 31, 2018. Shares of the Trust are not offered directly to the public. Instead, shares are currently issued and redeemed only in connection with investments in and payments under variable annuity contracts and variable life insurance policies (“Variable Contracts”) offered by life insurance companies affiliated with SunAmerica Asset Management, LLC, the Trust‘s investment adviser and manager. The fees and expenses associated with the Variable Contracts are not included in these Examples, and had such fees and expenses been included your costs would have been higher. Please see your variable contract prospectus for more details on the fees associated with the variable contract.
Actual Expenses
The “Actual” section of the table provides information about your actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the column under the heading entitled “Expenses Paid During the Six Months Ended December 31, 2018”, to estimate the expenses you paid on your account during this period. The “Expenses Paid During the Six Months Ended December 31, 2018” column and the “Annualized Expense Ratio” column do not include fees and expenses that may be charged by the Variable Contracts, in which the Portfolios are offered. Had these fees and expenses been included, the “Expenses Paid During the Six Months Ended December 31, 2018” column would have been higher and the “Ending Account Value” column would have been lower.
Hypothetical Example for Comparison Purposes
The “Hypothetical” section of the table provides information about hypothetical account values and hypothetical expenses based on the Portfolio‘s actual expense ratio and an annual rate of return of 5% before expenses, which is not the Portfolio‘s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolios and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. The “Expenses Paid During the Six Months Ended December 31, 2018” column and the “Annualized Expense Ratio” column do not include fees and expenses that may be charged by the Variable Contracts, in which the Portfolios are offered. Had these fees and expenses been included, the “Expenses Paid During the Six Months Ended December 31, 2018” would have been higher and the “Ending Account Value” would have been lower.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees and expenses that may be charged by the Variable Contracts. Please refer to your variable contract prospectus for more information. Therefore the “Hypothetical” example is useful in comparing ongoing costs and will not help you determine the relative total costs of owning different funds. In addition, if these fees and expenses were included, your costs would have been higher.
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SUNAMERICA SERIES TRUST
EXPENSE EXAMPLE(continued) December 31, 2018 |
(unaudited)
Actual | Hypothetical | |||||||||||||||||||||||||||
Portfolio | Beginning Account Value at July 1, 2018 | Ending Account Value Using Actual Return at December 31, 2018 | Expenses Paid During the Six Months Ended December 31, 2018* | Beginning Account Value at July 1, 2018 | Ending Account Value Using a Hypothetical 5% Assumed Return at December 31, 2018 | Expenses Paid During the Six Months Ended December 31, 2018* | Annualized Expense Ratio* | |||||||||||||||||||||
SA American Funds Asset Allocation | ||||||||||||||||||||||||||||
Class 1#@ | $ | 1,000.00 | $ | 944.64 | $ | 1.32 | $ | 1,000.00 | $ | 1,023.84 | $ | 1.38 | 0.27 | % | ||||||||||||||
Class 3#@ | $ | 1,000.00 | $ | 943.10 | $ | 2.55 | $ | 1,000.00 | $ | 1,022.58 | $ | 2.65 | 0.52 | % | ||||||||||||||
SA American Funds Global Growth | ||||||||||||||||||||||||||||
Class 1#@ | $ | 1,000.00 | $ | 882.61 | $ | 1.28 | $ | 1,000.00 | $ | 1,023.84 | $ | 1.38 | 0.27 | % | ||||||||||||||
Class 3#@ | $ | 1,000.00 | $ | 881.63 | $ | 2.47 | $ | 1,000.00 | $ | 1,022.58 | $ | 2.65 | 0.52 | % | ||||||||||||||
SA American Funds Growth | ||||||||||||||||||||||||||||
Class 1#@ | $ | 1,000.00 | $ | 907.05 | $ | 1.30 | $ | 1,000.00 | $ | 1,023.84 | $ | 1.38 | 0.27 | % | ||||||||||||||
Class 3#@ | $ | 1,000.00 | $ | 907.36 | $ | 2.50 | $ | 1,000.00 | $ | 1,022.58 | $ | 2.65 | 0.52 | % | ||||||||||||||
SA American Funds Growth-Income | ||||||||||||||||||||||||||||
Class 1#@ | $ | 1,000.00 | $ | 922.44 | $ | 1.31 | $ | 1,000.00 | $ | 1,023.84 | $ | 1.38 | 0.27 | % | ||||||||||||||
Class 3#@ | $ | 1,000.00 | $ | 921.16 | $ | 2.57 | $ | 1,000.00 | $ | 1,022.53 | $ | 2.70 | 0.53 | % | ||||||||||||||
SA American Funds VCP Managed Allocation† | ||||||||||||||||||||||||||||
Class 1#@ | $ | 1,000.00 | $ | 953.79 | $ | 1.33 | $ | 1,000.00 | $ | 1,023.84 | $ | 1.38 | 0.27 | % | ||||||||||||||
Class 3#@ | $ | 1,000.00 | $ | 952.76 | $ | 2.56 | $ | 1,000.00 | $ | 1,022.58 | $ | 2.65 | 0.52 | % |
† | See Note 1 in Notes to Financial Statements |
* | Expenses are equal to the Portfolio’s annualized expense ratio multiplied by the average account value over the period, multiplied by 184 days divided by 365 (to reflect the one-half year period). These ratios do not reflect expenses associated with the Variable Contracts. If such fees and expenses had been included, the expenses would have been higher. Please refer to your Variable Contract prospectus for details on the expenses that apply to the Variable Contracts of the insurance companies. |
# | During the stated period, the investment adviser either waived fees and assumed expenses for the Portfolios or through recoupment provisions, recovered a portion of or all fees and expenses waived or reimbursed in the previous two fiscal years. As a result, if these fees and expenses had not been waived, the “Actual/Hypothetical Ending Account Value” would have been lower and the “Actual/Hypothetical Expenses Paid During the Six Months Ended December 31, 2018” and “Annualized Expense Ratios” would have been higher. If these fees and expenses had not been recouped, the “Actual/Hypothetical Ending Account Value” would have been higher and the “Actual/Hypothetical Expenses Paid During the Six Months Ended December 31, 2018” and the “Annualized Expense Ratio” would have been lower. |
@ | Does not include the expenses of the underlying Funds of the American Funds Insurance Series (“Master Funds”) that the Portfolios bear indirectly. If these indirect expenses had been included, the “Actual/Hypothetical Expenses Paid During the Six Months Ended December 31, 2018” and the “Annualized Expense Ratios” would have been higher and the “Actual/Hypothetical Ending Account Value” would have been lower. |
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SunAmerica Series Trust SA American Funds® Asset Allocation Portfolio
PORTFOLIO PROFILE — December 31, 2018 — (unaudited)
Industry Allocation*
Asset Allocation Investment Companies | 100.0 | % | ||
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* | Calculated as a percentage of net assets. |
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SunAmerica Series Trust SA American Funds® Asset Allocation Portfolio
PORTFOLIO OF INVESTMENTS — December 31, 2018
Shares | Value (Note 2) | |||||||
REGISTERED INVESTMENT COMPANIES — 100.0% | ||||||||
Asset Allocation Investment Companies —100.0% | ||||||||
American Funds Insurance Series® — Asset Allocation Fund, Class 1 | 37,142,346 | $ | 790,760,548 | |||||
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TOTAL INVESTMENTS | 100.0 | % | 790,760,548 | |||||
Liabilities in excess of other assets | (0.0 | ) | (34,439 | ) | ||||
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NET ASSETS | 100.0 | % | $ | 790,726,109 | ||||
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@ | See Note 3 for cost of investments on a tax basis. |
The following is a summary of the inputs used to value the Portfolio’s net assets as of December 31, 2018 (see Note 2):
Level 1 - Unadjusted Quoted Prices | Level 2 - Other Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | |||||||||||||
ASSETS: | ||||||||||||||||
Investments at Value:* | ||||||||||||||||
Registered Investment Companies | $ | 790,760,548 | $ | — | $ | — | $ | 790,760,548 | ||||||||
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* | For a detailed presentation of investments, please refer to the Portfolio of Investments. |
See Notes to Financial Statements
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SunAmerica Series Trust SA American Funds® Global Growth Portfolio
PORTFOLIO PROFILE— December 31, 2018 — (unaudited)
Industry Allocation*
International Equity Investment Companies | 100.0 | % | ||
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* | Calculated as a percentage of net assets. |
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SunAmerica Series Trust SA American Funds® Global Growth Portfolio
PORTFOLIO OF INVESTMENTS — December 31, 2018
Shares | Value (Note 2) | |||||||
REGISTERED INVESTMENT COMPANIES — 100.0% | ||||||||
International Equity Investment Companies — 100.0% | ||||||||
American Funds Insurance Series® — Global Growth Fund, Class 1 | 13,734,818 | $ | 353,534,218 | |||||
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TOTAL INVESTMENTS | 100.0 | % | 353,534,218 | |||||
Other assets less liabilities | 0.0 | 2,220 | ||||||
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NET ASSETS | 100.0 | % | $ | 353,536,438 | ||||
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@ | See Note 3 for cost of investments on a tax basis. |
The following is a summary of the inputs used to value the Portfolio’s net assets as of December 31, 2018 (see Note 2):
Level 1 - Unadjusted Quoted Prices | Level 2 - Other Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | |||||||||||||
ASSETS: | ||||||||||||||||
Investments at Value:* | ||||||||||||||||
Registered Investment Companies | $ | 353,534,218 | $ | — | $ | — | $ | 353,534,218 | ||||||||
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* | For a detailed presentation of investments, please refer to the Portfolio of Investments. |
See Notes to Financial Statements
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SunAmerica Series Trust SA American Funds® Growth Portfolio
PORTFOLIO PROFILE— December 31, 2018 — (unaudited)
Industry Allocation*
Domestic Equity Investment Companies | 100.0 | % | ||
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* | Calculated as a percentage of net assets. |
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SunAmerica Series Trust SA American Funds® Growth Portfolio
PORTFOLIO OF INVESTMENTS — December 31, 2018
Shares | Value (Note 2) | |||||||
REGISTERED INVESTMENT COMPANIES — 100.0% | ||||||||
Domestic Equity Investment Companies — 100.0% | ||||||||
American Funds Insurance Series® — Growth Fund, Class 1 | 4,368,068 | $ | 305,590,049 | |||||
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TOTAL INVESTMENTS | 100.0 | % | 305,590,049 | |||||
Liabilities in excess of other assets | (0.0 | ) | (29,872 | ) | ||||
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NET ASSETS | 100.0 | % | $ | 305,560,177 | ||||
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@ | See Note 3 for cost of investments on a tax basis. |
The following is a summary of the inputs used to value the Portfolio’s net assets as of December 31, 2018 (see Note 2):
Level 1 - Unadjusted Quoted Prices | Level 2 - Other Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | |||||||||||||
ASSETS: | ||||||||||||||||
Investments at Value:* | ||||||||||||||||
Registered Investment Companies | $ | 305,590,049 | $ | — | $ | — | $ | 305,590,049 | ||||||||
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* | For a detailed presentation of investments, please refer to the Portfolio of Investments. |
See Notes to Financial Statements
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SunAmerica Series Trust SA American Funds® Growth-Income Portfolio
PORTFOLIO PROFILE— December 31, 2018 — (unaudited)
Industry Allocation*
Domestic Equity Investment Companies | 100.0 | % | ||
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* | Calculated as a percentage of net assets. |
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SunAmerica Series Trust SA American Funds® Growth-Income Portfolio
PORTFOLIO OF INVESTMENTS — December 31, 2018
Shares | Value (Note 2) | |||||||
REGISTERED INVESTMENT COMPANIES — 100.0% | ||||||||
Domestic Equity Investment Companies — 100.0% | ||||||||
American Funds Insurance Series® — Growth-Income Fund, Class 1 | 5,403,361 | $ | 245,258,564 | |||||
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TOTAL INVESTMENTS | 100.0 | % | 245,258,564 | |||||
Liabilities in excess of other assets | (0.0 | ) | (28,706 | ) | ||||
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NET ASSETS | 100.0 | % | $ | 245,229,858 | ||||
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@ | See Note 3 for cost of investments on a tax basis. |
The following is a summary of the inputs used to value the Portfolio’s net assets as of December 31, 2018 (see Note 2):
Level 1 - Unadjusted Quoted Prices | Level 2 - Other Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | |||||||||||||
ASSETS: | ||||||||||||||||
Investments at Value:* | ||||||||||||||||
Registered Investment Companies | $ | 245,258,564 | $ | — | $ | — | $ | 245,258,564 | ||||||||
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* | For a detailed presentation of investments, please refer to the Portfolio of Investments. |
See Notes to Financial Statements
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SunAmerica Series Trust SA American Funds VCP Managed Allocation Portfolio#
PORTFOLIO PROFILE— December 31, 2018 — (unaudited)
Industry Allocation*
Asset Allocation Investment Companies | 100.0 | % | ||
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* | Calculated as a percentage of net assets. |
# | See Note 1 |
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SunAmerica Series Trust SA American Funds VCP Managed Allocation Portfolio#
PORTFOLIO OF INVESTMENTS — December 31, 2018
Shares | Value (Note 2) | |||||||
REGISTERED INVESTMENT COMPANIES — 100.0% | ||||||||
Asset Allocation Investment Companies — 100.0% | ||||||||
American Funds Insurance Series® — Managed Risk Growth-Income Fund, Class P1 | 141,465,171 | $ | 1,659,386,455 | |||||
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TOTAL INVESTMENTS | 100.0 | % | 1,659,386,455 | |||||
Other assets in excess of liabilities | 0.0 | 116,797 | ||||||
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NET ASSETS | 100.0 | % | $ | 1,659,503,252 | ||||
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@ | See Note 3 for cost of investments on a tax basis. |
# | See Note 1 |
The following is a summary of the inputs used to value the Portfolio’s net assets as of December 31, 2018 (see Note 2):
Level 1 - Unadjusted Quoted Prices | Level 2 - Other Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | |||||||||||||
ASSETS: | ||||||||||||||||
Investments at Value:* | ||||||||||||||||
Registered Investment Companies | $ | 1,659,386,455 | $ | — | $ | — | $ | 1,659,386,455 | ||||||||
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* | For a detailed presentation of investments, please refer to the Portfolio of Investments. |
See Notes to Financial Statements
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SUNAMERICA SERIES TRUST
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2018
SA American Funds® Asset Allocation Portfolio | SA American Funds® Global Growth Portfolio | SA American Funds® Growth Portfolio | SA American Funds® Growth- Income Portfolio | SA American Funds VCP Managed Allocation Portfolio† | ||||||||||||||||
ASSETS: | ||||||||||||||||||||
Investment at value (unaffiliated)* | $ | 790,760,548 | $ | 353,534,218 | $ | 305,590,049 | $ | 245,258,564 | $ | 1,659,386,455 | ||||||||||
Receivable for: | ||||||||||||||||||||
Fund shares sold | 197,711 | 13,007,956 | 6,820,747 | 3,082,175 | 56 | |||||||||||||||
Investments sold | 2,278,017 | — | — | — | 28,839,732 | |||||||||||||||
Prepaid expenses and other assets | 4,719 | 4,695 | 4,688 | 4,680 | 4,560 | |||||||||||||||
Due from investment adviser for expense reimbursements/fee waivers | 796,535 | 419,296 | 317,696 | 255,919 | 2,009,407 | |||||||||||||||
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Total assets | 794,037,530 | 366,966,165 | 312,733,180 | 248,601,338 | 1,690,240,210 | |||||||||||||||
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LIABILITIES: | ||||||||||||||||||||
Payable for: | ||||||||||||||||||||
Fund shares redeemed | 2,475,728 | 7,095 | 180,055 | 55,925 | 28,839,788 | |||||||||||||||
Investments purchased | — | 13,000,861 | 6,640,692 | 3,026,250 | — | |||||||||||||||
Investment advisory and management fees | 573,808 | 282,484 | 223,083 | 180,019 | 1,374,623 | |||||||||||||||
Service fees | 168,591 | 74,313 | 65,556 | 52,893 | 361,712 | |||||||||||||||
Transfer agent fees | 87 | 108 | 84 | 84 | 86 | |||||||||||||||
Trustees' fees and expenses | 4,455 | 2,189 | 1,928 | 1,541 | 10,039 | |||||||||||||||
Other accrued expenses | 88,752 | 62,677 | 61,605 | 54,768 | 150,710 | |||||||||||||||
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Total liabilities | 3,311,421 | 13,429,727 | 7,173,003 | 3,371,480 | 30,736,958 | |||||||||||||||
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NET ASSETS | $ | 790,726,109 | $ | 353,536,438 | $ | 305,560,177 | $ | 245,229,858 | $ | 1,659,503,252 | ||||||||||
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NET ASSETS REPRESENTED BY: | ||||||||||||||||||||
Paid-in capital | 822,400,600 | 345,332,849 | 298,847,450 | 238,726,644 | 1,658,856,830 | |||||||||||||||
Total distributable earnings (loss) | (31,674,491 | ) | 8,203,589 | 6,712,727 | 6,503,214 | 646,422 | ||||||||||||||
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NET ASSETS | $ | 790,726,109 | $ | 353,536,438 | $ | 305,560,177 | $ | 245,229,858 | $ | 1,659,503,252 | ||||||||||
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Class 1 (unlimited shares authorized): | ||||||||||||||||||||
Net assets | $ | 823,738 | $ | 114,550 | $ | 56,765 | $ | 47,259 | $ | 144,784 | ||||||||||
Shares of beneficial interest issued and outstanding | 63,651 | 12,515 | 6,152 | 4,951 | 11,419 | |||||||||||||||
Net asset value, offering and redemption price per share | $ | 12.94 | $ | 9.15 | $ | 9.23 | $ | 9.54 | $ | 12.68 | ||||||||||
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Class 3 (unlimited shares authorized): | ||||||||||||||||||||
Net assets | $ | 789,902,371 | $ | 353,421,888 | $ | 305,503,412 | $ | 245,182,599 | $ | 1,659,358,468 | ||||||||||
Shares of beneficial interest issued and outstanding | 61,070,137 | 38,587,523 | 33,068,145 | 25,706,276 | 130,979,444 | |||||||||||||||
Net asset value, offering and redemption price per share | $ | 12.93 | $ | 9.16 | $ | 9.24 | $ | 9.54 | $ | 12.67 | ||||||||||
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* Cost | ||||||||||||||||||||
Investment securities (unaffiliated) | $ | 821,605,614 | $ | 346,652,188 | $ | 297,918,952 | $ | 236,069,402 | $ | 1,665,026,969 | ||||||||||
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† | See Note 1 |
See Notes To Financial Statements
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SUNAMERICA SERIES TRUST
For the Year Ended December 31, 2018
SA American Funds® Asset Allocation Portfolio | SA American Funds® Global Growth Portfolio | SA American Funds® Growth Portfolio | SA American Funds® Growth- Income Portfolio | SA American Funds VCP Managed Allocation Portfolio† | ||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||
Dividends (unaffiliated) | $ | 15,266,072 | $ | 3,635,737 | $ | 2,325,793 | $ | 4,432,009 | $ | 31,769,868 | ||||||||||
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Total investment income | 15,266,072 | 3,635,737 | 2,325,793 | 4,432,009 | 31,769,868 | |||||||||||||||
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EXPENSES: | ||||||||||||||||||||
Investment advisory and management fees | 5,901,503 | 3,946,091 | 2,991,615 | 2,352,637 | 16,385,228 | |||||||||||||||
Service fees | 1,734,202 | 1,038,122 | 879,377 | 691,465 | 4,311,561 | |||||||||||||||
Transfer agent fees | 679 | 816 | 816 | 816 | 691 | |||||||||||||||
Custodian and accounting fees | 11,968 | 11,953 | 11,943 | 11,953 | 11,988 | |||||||||||||||
Reports to shareholders | 72,178 | 31,475 | 29,216 | 21,844 | 167,462 | |||||||||||||||
Audit and tax fees | 25,438 | 25,438 | 25,438 | 25,438 | 45,439 | |||||||||||||||
Legal fees | 12,380 | 9,746 | 12,045 | 10,439 | 49,996 | |||||||||||||||
Trustees' fees and expenses | 19,463 | 11,833 | 10,037 | 7,910 | 48,872 | |||||||||||||||
Interest expense | 11 | 61 | 10 | 78 | 30 | |||||||||||||||
Other expenses | 10,213 | 12,838 | 9,650 | 12,396 | 23,216 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total expenses before fee waivers and expense reimbursements | 7,788,035 | 5,088,373 | 3,970,147 | 3,134,976 | 21,044,483 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4) | (4,165,767 | ) | (2,907,646 | ) | (2,111,728 | ) | (1,660,685 | ) | (12,073,325 | ) | ||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||
Net expenses | 3,622,268 | 2,180,727 | 1,858,419 | 1,474,291 | 8,971,158 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income (loss) | 11,643,804 | 1,455,010 | 467,374 | 2,957,718 | 22,798,710 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||||||||||||||
Net realized gain (loss) on investments (unaffiliated) | 1,624,652 | 25,238,684 | 17,813,080 | 17,116,558 | 11,406,709 | |||||||||||||||
Net realized gain (loss) from capital gain distributions received from underlying funds (unaffiliated) | 28,991,202 | 28,150,636 | 35,022,144 | 18,726,681 | 66,925,902 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized gain (loss) on investments | 30,615,854 | 53,389,320 | 52,835,224 | 35,843,239 | 78,332,611 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net change in unrealized appreciation (depreciation) on investments (unaffiliated) | (85,420,834 | ) | (88,215,937 | ) | (51,046,007 | ) | (42,126,160 | ) | (193,244,936 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized and unrealized gain (loss) on investments | (54,804,980 | ) | (34,826,617 | ) | 1,789,217 | (6,282,921 | ) | (114,912,325 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (43,161,176 | ) | $ | (33,371,607 | ) | $ | 2,256,591 | $ | (3,325,203 | ) | $ | (92,113,615 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
† | See Note 1 |
See Notes To Financial Statements
| ||
15 |
Table of Contents
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS
SA American Funds® Asset Allocation Portfolio | SA American Funds® Global Growth Portfolio | SA American Funds® Growth Portfolio | ||||||||||||||||||||||
For the year ended December 31, 2018 | For the year ended December 31, 2017 | For the year ended December 31, 2018 | For the year ended December 31, 2017 | For the year ended December 31, 2018 | For the year ended December 31, 2017 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 11,643,804 | $ | 6,505,474 | $ | 1,455,010 | $ | 1,438,313 | $ | 467,374 | $ | 664,748 | ||||||||||||
Net realized gain (loss) on investments | 30,615,854 | 17,228,619 | 53,389,320 | 32,191,902 | 52,835,224 | 54,264,387 | ||||||||||||||||||
Net unrealized gain (loss) on investments | (85,420,834 | ) | 30,861,936 | (88,215,937 | ) | 83,958,038 | (51,046,007 | ) | 29,387,966 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) in net assets resulting from operations | (43,161,176 | ) | 54,596,029 | (33,371,607 | ) | 117,588,253 | 2,256,591 | 84,317,101 | ||||||||||||||||
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|
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|
|
|
|
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| |||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: (1) | ||||||||||||||||||||||||
Distributable earnings — Class 1 | (69,708 | ) | (2,813 | ) | (28,781 | ) | (12,696 | ) | (109,469 | ) | (14,029 | ) | ||||||||||||
Distributable earnings — Class 3 | (65,164,367 | ) | (11,127,633 | ) | (85,129,035 | ) | (45,779,751 | ) | (99,439,357 | ) | (38,930,483 | ) | ||||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (65,234,075 | ) | (11,130,446 | ) | (85,157,816 | ) | (45,792,447 | ) | (99,548,826 | ) | (38,944,512 | ) | ||||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions (Note 6) | 350,585,083 | 232,963,007 | 32,526,086 | (44,098,574 | ) | 51,994,160 | (16,304,257 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
TOTAL INCREASE (DECREASE) IN NET ASSETS | 242,189,832 | 276,428,590 | (86,003,337 | ) | 27,697,232 | (45,298,075 | ) | 29,068,332 | ||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||
Beginning of period | 548,536,277 | 272,107,687 | 439,539,775 | 411,842,543 | 350,858,252 | 321,789,920 | ||||||||||||||||||
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| |||||||||||||
End of period | $ | 790,726,109 | $ | 548,536,277 | $ | 353,536,438 | $ | 439,539,775 | $ | 305,560,177 | $ | 350,858,252 | ||||||||||||
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|
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|
|
|
|
(1) | The prior year amounts have been restated to reflect the adoption of amendments to Rule6-09.3 of RegulationS-X. Below are the amounts as stated in the December 31, 2017 annual report. |
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||||||||||
Net investment income — Class 1 | $ | (900 | ) | $ | (1,158 | ) | $ | (621 | ) | |||||||||||||||
Net investment income — Class 3 | (3,444,387 | ) | (3,932,655 | ) | (1,521,460 | ) | ||||||||||||||||||
Net realized gain on securities — Class 1 | (1,913 | ) | (11,538 | ) | (13,408 | ) | ||||||||||||||||||
Net realized gain on securities — Class 3 | (7,683,246 | ) | (41,847,096 | ) | (37,409,023 | ) | ||||||||||||||||||
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|
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|
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| |||||||||||||||||||
Total distributions to shareholders | $ | (11,130,446 | ) | $ | (45,792,447 | ) | $ | (38,944,512 | ) | |||||||||||||||
|
|
|
|
|
|
See Notes to Financial Statements
| ||
16 |
Table of Contents
SUNAMERICA SERIES TRUST
STATEMENT OF CHANGES IN NET ASSETS
SA American Funds® Growth-Income Portfolio | SA American Funds VCP Managed Allocation Portfolio† | |||||||||||||||
For the year ended December 31, 2018 | For the year ended December 31, 2017 | For the year ended December 31, 2018 | For the year ended December 31, 2017 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 2,957,718 | $ | 2,905,679 | $ | 22,798,710 | $ | 3,813,361 | ||||||||
Net realized gain (loss) on investments | 35,843,239 | 36,480,301 | 78,332,611 | 17,296,853 | ||||||||||||
Net unrealized gain (loss) on investments | (42,126,160 | ) | 15,106,865 | (193,244,936 | ) | 171,521,312 | ||||||||||
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|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (3,325,203 | ) | 54,492,845 | (92,113,615 | ) | 192,631,526 | ||||||||||
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|
|
|
|
|
| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: (1) | ||||||||||||||||
Distributable earnings — Class 1 | (90,252 | ) | (16,133 | ) | (10,534 | ) | (3,107 | ) | ||||||||
Distributable earnings — Class 3 | (67,588,654 | ) | (37,100,272 | ) | (115,944,064 | ) | (41,633,047 | ) | ||||||||
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|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (67,678,906 | ) | (37,116,405 | ) | (115,954,598 | ) | (41,636,154 | ) | ||||||||
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|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from capital share transactions (Note 6) | 34,918,155 | 5,166,595 | 212,935,683 | 287,949,004 | ||||||||||||
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|
|
|
|
|
|
| |||||||||
TOTAL INCREASE (DECREASE) IN NET ASSETS | (36,085,954 | ) | 22,543,035 | 4,867,470 | 438,944,376 | |||||||||||
NET ASSETS: | ||||||||||||||||
Beginning of period | 281,315,812 | 258,772,777 | 1,654,635,782 | 1,215,691,406 | ||||||||||||
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|
|
|
|
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| |||||||||
End of period | $ | 245,229,858 | $ | 281,315,812 | $ | 1,659,503,252 | $ | 1,654,635,782 | ||||||||
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|
|
|
|
|
|
† | See Note 1 |
(1) | The prior year amounts have been restated to reflect the adoption of amendments to Rule6-09.3 of RegulationS-X. Below are the amounts as stated in the December 31, 2017 annual report. |
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||
Net investment income — Class 1 | $ | (1,915 | ) | $ | (877 | ) | ||||||||||
Net investment income — Class 3 | (4,254,146 | ) | (11,200,128 | ) | ||||||||||||
Net realized gain on securities — Class 1 | (14,218 | ) | (2,230 | ) | ||||||||||||
Net realized gain on securities — Class 3 | (32,846,126 | ) | (30,432,919 | ) | ||||||||||||
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|
|
| |||||||||||||
Total distributions to shareholders | $ | (37,116,405 | ) | $ | (41,636,154 | ) | ||||||||||
|
|
|
|
See Notes to Financial Statements
| ||
17 |
Table of Contents
SUNAMERICA SERIES TRUST
December 31, 2018
Note 1. Description of Business and Basis of Presentation
SunAmerica Series Trust (the “Trust”), organized as a Massachusetts business trust on September 11, 1992, is an open-end management investment company. The Trust is comprised of fifty-eight separate investment series, five of which are included in this report: SA American Funds® Asset Allocation Portfolio, SA American Funds® Global Growth Portfolio, SA American Funds® Growth Portfolio, SA American Funds® Growth-Income Portfolio and SA American Funds VCP Managed Allocation Portfolio, (collectively, the “Portfolios”). SunAmerica Asset Management, LLC (“SAAMCO” or the “Adviser”), an indirect wholly-owned subsidiary of American International Group, Inc., a Delaware corporation (“AIG”), serves as investment adviser for all Portfolios of the Trust.
Shares of the Trust are issued and redeemed only in connection with investments in and payments under variable annuity contracts and variable life policies. Shares of the Portfolios are held by separate accounts of American General Life Insurance Company, a Texas life insurer (“AGL”), The United States Life Insurance Company in The City of New York, a New York life insurer (“USL”) and The Variable Annuity Life Insurance Company, a Texas life insurer (“VALIC”). AGL and USL and VALIC are indirect wholly-owned subsidiaries of AIG. The life insurance companies listed above are collectively referred to as the “Life Companies.” All shares may be purchased or redeemed at net asset value without any sales or redemption charges.
SA American Funds® Asset Allocation Portfolio, SA American Funds® Global Growth Portfolio, SA American Funds® Growth Portfolio, SA American Funds® Growth-Income Portfolio and SA American Funds VCP Managed Allocation Portfolio operate as “Feeder Funds,” and invest all or substantially all of their assets in shares of an underlying mutual fund (“underlying fund” and/or “Master Fund”).
Class 1 shares and Class 3 shares of each Portfolio may be offered only in connection with certain variable contracts. Class 3 shares of a given Portfolio are identical in all respects to Class 1 shares of the same Portfolio, except that (i) each class may bear differing amounts of certain class-specific expenses; (ii) Class 3 shares are subject to service fees while Class 1 shares are not; and (iii) Class 3 shares have voting rights on matters that pertain to the Rule12b-1 plan adopted with respect to Class 3 shares. Class 3 shares of each Portfolio pay service fees at an annual rate of 0.25% of each class’s average daily net assets. The Board of Trustees may establish additional portfolios or classes in the future.
Each Master Fund is a portfolio offered by American Funds Insurance Series® (“AFIS” or “American Funds”), a registered open-end management investment company. Each Portfolio’s corresponding Master Fund is listed below:
Trust Feeder Funds | American Funds Master Funds | |
SA American Funds® Asset Allocation Portfolio | American Funds® Asset Allocation Fund | |
SA American Funds® Global Growth Portfolio | American Funds® Global Growth Fund | |
SA American Funds® Growth Portfolio | American Funds® Growth Fund | |
SA American Funds® Growth-Income Portfolio | American Funds® Growth-Income Fund | |
SA American Funds VCP Managed Allocation Portfolio | American Funds® Managed Risk Growth-Income Fund |
The underlying fund’s accounting policies are outlined in the underlying funds’ financial statements, available at U.S. Securities and Exchange Commission (“SEC”) Internet website at www.sec.gov, and should be read in conjunction with these financial statements.
Effective December 17, 2018, the SA American Fund VCP Managed Allocation Portfolio changed the master fund in which it invests all or substantially all of its assets to the Class P1 shares of the AFIS Managed Risk Growth-Income Fund, another portfolio offered by AFIS. In turn, the Master Managed Risk Growth-Income Fund pursues its investment objectives by investing in shares of two underlying funds, the AFIS — Growth-Income Fund and the AFIS — Bond Fund. In addition, on the same effective date, the Portfolio changed its name to SA American Funds VCP Managed Allocation Portfolio.
The investment goals for the Portfolios included in this report are as follows:
TheSA American Funds® Asset Allocation Portfolio seeks high total return (including income and capital gains) consistent with the preservation of capital over the long term. Its strategy is to invest all or substantially all of its assets in Class 1 shares of the Master Fund, the American Funds Insurance Series® Asset Allocation Fund (“the Master Asset Allocation Fund”), a portfolio offered by AFIS, a registered open-end investment company. In turn, the Master Asset Allocation Fund invests in a diversified portfolio of common stocks and other equity securities, bonds and other intermediate and long-term debt securities and money market instruments.
TheSA American Funds® Global Growth Portfolio seeks growth. Its strategy is to invest all or substantially all of its assets in Class 1 shares of the Master Fund, the American Funds Insurance Series® Global Growth Fund (“the Master Global Growth Fund”), a portfolio offered by AFIS, a registered open-end investment company. In turn, the Master Global Growth Fund invests primarily in common stocks and other securities of companies around the world that have the potential for growth.
| ||
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Table of Contents
TheSA American Funds® Growth Portfolio seeks growth. Its strategy is to invest all or substantially all of its assets in Class 1 shares of the Master Fund, the American Funds Insurance Series® Growth Fund (“the Master Growth Fund”), a portfolio offered by AFIS, a registered open-end investment company. In turn, the Master Growth Fund invests primarily in common stocks of companies that appear to offer superior opportunities for growth of capital.
TheSA American Funds® Growth-Income Portfolio seeks growth and income. Its strategy is to invest all or substantially all of its assets in Class 1 shares of the Master Fund, the American Funds Insurance Series® Growth-Income Fund (“the Master Growth-Income Fund”), a portfolio offered by AFIS, a registered open-end investment company. In turn, the Master Growth-Income Fund invests primarily in common stocks or other securities that demonstrate the potential for appreciation and/or dividends.
TheSA American Funds® VCP Managed Allocation Portfolio seeks long-term growth of capital and income while seeking to manage volatility and provide downside protection all or substantially all of its assets in Class P1 shares of the Master Fund, the American Funds Insurance Series® Managed Risk Growth-Income FundSM (“the Master Managed Risk Growth-Income Fund”), a portfolio offered by AFIS, a registered open-end investment company. In turn, the Master Managed Risk Growth-Income Fund invests in the shares of an underlying fund, the American Funds Growth-Income Fund and American Funds — Bond Fund (the “Underlying Funds”). The Underlying Funds invest in a diversified portfolio of common stocks and other equity securities, bonds and other intermediate and long term debt securities and money market instruments.
Indemnifications: The Trust’s organizational documents provide current and former officers and trustees with a limited indemnification against liabilities arising out of the performance of their duties to the Trust. In addition, pursuant to Indemnification Agreements between the Trust and each of the current (and certain former) trustees who is not an “interested person,” as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the “1940 Act”), of the Trust (collectively, the “Disinterested Trustees”), the Trust provides the Disinterested Trustees with a limited indemnification against liabilities arising out of the performance of their duties to the Trust, whether such liabilities are asserted during or after their service as trustees. In addition, in the normal course of business the Trust enters into contracts that contain the obligation to indemnify others. The Trust’s maximum exposure under these arrangements is unknown. Currently, however, the Trust expects the risk of loss to be remote.
Note 2. Significant Accounting Policies
The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates and those differences could be significant. The Portfolios are considered investment companies under GAAP and follow the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies consistently followed by the Trust and the Master Funds, in the preparation of their respective financial statements:
Security Valuation
In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Portfolios disclose the fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. In accordance with GAAP, fair value is defined as the price that the Portfolios would receive upon selling an asset or transferring a liability in a timely transaction to an independent third party in the principal or most advantageous market. GAAP establishes a three-tier hierarchy to provide more transparency around the inputs used to measure fair value and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tiers are as follows:
Level 1 — Unadjusted quoted prices in active markets for identical securities
Level 2 — Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, referenced indices, quoted prices in inactive markets, adjusted quoted prices in active markets, adjusted quoted prices on foreign equity securities that were adjusted in accordance with pricing procedures approved by the Board of Trustees (the “Board”), etc.)
Level 3 — Significant unobservable inputs (includes inputs that reflect the Portfolios’ own assumptions about the assumptions market participants would use in pricing the security, developed based on the best information available under the circumstances)
Changes in valuation techniques may result in transfers in or out of an investment’s assigned Level within the hierarchy. The methodology used for valuing investments is not necessarily an indication of the risk associated with investing in those investments and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to each security.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is recently issued and not yet established in the marketplace, the liquidity of
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19 |
Table of Contents
markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
The summary of the Portfolios’ assets and liabilities classified in the fair value hierarchy as of December 31, 2018, is reported on a schedule at the end of each Portfolio’s Portfolio of Investments.
The net asset value (“NAV”) of each Portfolio is determined based upon the NAV of its corresponding Master Fund.
Master Funds
Each Master Fund is a series of AFIS. All portfolio securities of funds managed by Capital Research and Management Company (“Capital Research”) are valued, and the NAV per share for each share class are determined, as follows:
The AFIS investment adviser values the AFIS investments at fair value as defined by U.S. GAAP. The net asset value of each share class of each AFIS fund is generally determined as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.
Methods and inputs — The AFIS investment adviser uses the following methods and inputs to establish the fair value of each fund’s assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.
Equity securities are generally valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market in which the security trades. The value of an underlying fund is based on its reported net asset value.
Fixed-income securities, including short-term securities, are generally valued at prices obtained from one or more pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the funds are authorized to invest. However, these classifications are not exclusive and any of the inputs may be used to value any other class of fixed-income security.
Fixed-income class | Examples of standard inputs | |
All | Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”) | |
Corporate bonds & notes; convertible securities | Standard inputs and underlying equity of the issuer | |
Bonds & notes of governments & government agencies | Standard inputs and interest rate volatilities | |
Mortgage-backed; asset-backed obligations | Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information | |
Municipal securities | Standard inputs and, for certain distressed securities, cash flows or liquidation values using a net present value calculation based on inputs that include, but are not limited to, financial statements and debt contracts |
When the AFIS investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be representative), fixed-income securities will be valued in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask prices are not available) or at prices for securities of comparable maturity, quality and type.
Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described for either equity or fixed-income securities, depending on which method is deemed most appropriate by the AFIS investment adviser. The Government Cash Management Fund held by the managed risk funds is managed to maintain a $1.00 net asset value per share. The net asset value of each share class of each managed risk fund is calculated based on the reported net asset values of the underlying funds in which each fund invests.
Exchange-traded options and futures are generally valued at the official closing price for options and official settlement price for futures of the exchange or market on which such instruments are traded, as of the close of business on the day such instruments are being valued. Forward currency contracts are valued at the mean of representative quoted bid and ask prices, generally based on prices supplied by one or more pricing vendors. Interest rate swaps and credit default swaps are generally valued by pricing vendors based on market inputs that include the index and term of index, reset frequency, payer/receiver, currency and pay frequency.
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Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the AFIS investment adviser are fair valued as determined in good faith under fair value guidelines adopted by authority of the AFIS board of trustees as further described. The AFIS investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The AFIS investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. In addition, the closing prices of equity securities and futures that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of each fund is determined. Fair valuations and valuations of investments and futures that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.
Processes and structure — The AFIS board of trustees has delegated authority to the AFIS investment adviser to make fair value determinations, subject to board oversight. The AFIS investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the AFIS investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees. The AFIS board and audit committee also regularly review reports that describe fair value determinations and methods.
The AFIS investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.
Securities Transactions, Investment Income, Expenses, Dividends and Distributions to Shareholders: Security transactions are recorded on a trade date basis. Interest income is accrued daily from settlement date except when collection is not expected. Realized gains and losses on the sale of investments are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date.
The Portfolios invest in Master Fund portfolios offered by American Funds including funds investing in fixed income securities. Distributions from income from the Master Funds, if any, are recorded to income on ex-dividend date. Distributions from net realized capital gains from the Master Funds, if any, are recorded to realized gains on ex-dividend date.
Expenses common to all Portfolios, not directly related to individual Portfolios are allocated among the Portfolios based upon relative net assets or other appropriate allocation methods. In all other respects, expenses are charged to each Portfolio as incurred on a specific identification basis.
The expenses included in the accompanying financial statements reflect the expenses of the Portfolios and do not include indirect expenses borne by each underlying Portfolio in connection with its investment in the underlying Portfolio.
Dividends from net investment income and capital gain distributions, if any, are paid annually. The Portfolios record dividends and distributions to their shareholders on the ex-dividend date.
The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts at fiscal year end based on their federal tax-basis treatment; temporary differences do not require reclassification. Net assets are not affected by these reclassifications.
Each Portfolio is considered a separate entity for tax purposes and intends to comply with the requirements of the Internal Revenue Code, as amended, applicable to regulated investment companies and distribute all of its taxable income, including any net capital gains on investments, to its shareholders. Each Portfolio also intends to distribute sufficient net investment income and net capital gains, if any, so that it will not be subject to excise tax on undistributed income and gains. Therefore, no federal income tax or excise tax provision is required.
The Portfolios recognize the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained, assuming examination by tax authorities. Management has analyzed each Portfolio’s tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years 2015 – 2017 or expected to be taken in each Portfolio’s 2018 tax return. The Portfolios are not aware of any tax provisions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months. The Portfolios file U.S. federal and certain state income tax returns. With few exceptions, the Portfolios are no longer subject to U.S. federal and state tax examinations by tax authorities for tax returns ending before 2015.
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New Accounting Pronouncements: In August 2018, the SEC adopted amendments to certain financial statement disclosure requirements of Regulation S-X to conform them to GAAP for investment companies. The final rule became effective on November 5, 2018. All required changes have been made in accordance with Regulation S-X.
In August 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018-13 “Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement”. The ASU eliminates, modifies, and adds disclosure requirements for fair value measurements and is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The ASU allows for early adoption of either the entire standard or only the provisions that eliminate or modify the requirements. Management has elected to early adopt the provisions that eliminate disclosure requirements and is still evaluating the impact of applying the rest of the ASU.
Note 3. Federal Income Taxes
The following details the tax basis of distributions as well as the components of distributable earnings. The tax basis components of distributable earnings differ from the amounts reflected in the Statement of Assets and Liabilities by temporary book/tax differences primarily arising from wash sales.
For the year ended December 31, 2018 | ||||||||||||||||||||
Distributable Earnings | Tax Distributions | |||||||||||||||||||
Portfolio | Ordinary Income | Long-term Gains/ Capital and Other Losses | Unrealized Appreciation (Depreciation) | Ordinary Income | Long-Term Capital Gains | |||||||||||||||
SA American Funds® Asset Allocation | $ | — | $ | 553,902 | $ | (32,228,393 | ) | $ | 20,798,886 | $ | 44,435,189 | |||||||||
SA American Funds® Global Growth | — | 3,059,828 | 5,143,764 | 4,571,473 | 80,586,343 | |||||||||||||||
SA American Funds® Growth | — | 1,646,364 | 5,066,362 | 3,095,423 | 96,453,403 | |||||||||||||||
SA American Funds® Growth-Income | — | 1,227,416 | 5,275,799 | 7,155,075 | 60,523,831 | |||||||||||||||
SA American Funds VCP Managed Allocation | — | 6,350,918 | (5,704,496 | ) | 26,612,070 | 89,342,528 |
For the year ended December 31, 2017 | ||||||||
Tax Distributions | ||||||||
Ordinary Income | Long-Term Capital Gains | |||||||
SA American Funds® Asset Allocation | $ | 3,445,287 | $ | 7,685,159 | ||||
SA American Funds® Global Growth | 3,933,813 | 41,858,634 | ||||||
SA American Funds® Growth | 1,522,081 | 37,422,431 | ||||||
SA American Funds® Growth-Income | 4,256,061 | 32,860,344 | ||||||
SA American Funds VCP Managed Allocation | 11,201,005 | 30,435,149 |
For the year ended December 31, 2018, the reclassifications arising from book/tax differences resulted in increases (decreases) that were primarily due to short-term capital gain distributions from underlying funds were as follows:
Portfolio | Accumulated Undistributed Net Investment Income (Loss) | Accumulated Undistributed Net Realized Gain (Loss) | Capital Paid-in | |||||||||
SA American Funds® Asset Allocation | $ | 2,421,722 | $ | (2,421,722 | ) | $ | — | |||||
SA American Funds® Global Growth | 1,679,432 | (1,679,432 | ) | — | ||||||||
SA American Funds® Growth | 1,141,813 | (1,141,813 | ) | — | ||||||||
SA American Funds® Growth-Income | 1,073,108 | (1,073,108 | ) | — | ||||||||
SA American Funds VCP Managed Allocation | 68,381 | (68,381 | ) | — |
The amounts of aggregate unrealized gain (loss) and the cost of investment securities for Federal tax purposes, including short-term securities and repurchase agreements, were as follows:
Portfolio | Aggregate Unrealized Gain | Aggregate Unrealized Loss | Net Unrealized Gain / (Loss) | Cost of Investments | ||||||||||||
SA American Funds® Asset Allocation | $ | — | $ | (32,228,393 | ) | $ | (32,228,393 | ) | $ | 822,988,941 | ||||||
SA American Funds® Global Growth | 6,882,030 | (1,738,266 | ) | 5,143,764 | 348,390,454 | |||||||||||
SA American Funds® Growth | 7,671,097 | (2,604,735 | ) | 5,066,362 | 300,523,687 | |||||||||||
SA American Funds® Growth-Income | 9,189,162 | (3,913,363 | ) | 5,275,799 | 239,982,765 | |||||||||||
SA American Funds VCP Managed Allocation | — | (5,704,496 | ) | (5,704,496 | ) | 1,665,090,951 |
On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was signed into law. Certain provisions of the Act were effective upon enactment with the remainder becoming effective for tax years beginning after December 31, 2017. All required changes have been made in accordance with the Act.
Note 4. Investment Advisory and Management Agreement, and Service Plan (12b-1 Plan)
Capital Research serves as investment adviser to the Master Funds. Capital Research, a wholly owned subsidiary of The Capital Group Companies, Inc., manages the investment fund and business affairs of the Master Funds. The Trust, on behalf of each Portfolio, entered
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into an Investment Advisory and Management Agreement (the “Agreement”) with SAAMCo to handle the Trust’s day-to-day affairs. The Agreement provides that SAAMCo shall manage the Trust’s investments and administer its business affairs; furnish offices, necessary facilities and equipment; provide clerical, bookkeeping and administrative services; and permit any of its officers or employees to serve, without compensation, as trustees or officers of the Trust, if duly elected to such positions. SAAMCo performs all investment advisory services for these Portfolios with the exception of portfolio management. The term “Assets,” as used in the following table, means the average daily net assets of the Portfolios.
The Trust pays SAAMCo a monthly fee calculated daily at the following annual percentages of each Portfolio’s Assets:
Portfolio | Management Fees | |||
SA American Funds® Asset Allocation | 0.85 | % | ||
SA American Funds® Global Growth | 0.95 | % | ||
SA American Funds® Growth | 0.85 | % | ||
SA American Funds® Growth-Income | 0.85 | % | ||
SA American Funds VCP Managed Allocation | 0.95 | % |
The Trust has entered into a contractual agreement with SAAMCo under which SAAMCo will waive 0.60%, 0.70%, 0.60%, 0.60%, and 0.70% for SA American Funds® Asset Allocation Portfolio, SA American Funds® Global Growth Portfolio, SA American Funds® Growth Portfolio, SA American Funds® Growth-Income Portfolio and SA American Funds VCP Managed Allocation Portfolio, respectively, of its advisory fee for such time as the Portfolios are operated as feeder funds, because during that time it will not be providing the portfolio management portion of the advisory and management services to be provided under its investment advisory and management agreement with the Trust. This fee waiver will continue as long as the Portfolios are part of a master-feeder fund structure unless the Board approves a change in or elimination of the waiver.
For the year ended December 31, 2018, SAAMCo has agreed to waive advisory fees as follows:
Portfolio | Amount | |||
SA American Funds® Asset Allocation | $ | 4,165,767 | ||
SA American Funds® Global Growth | 2,907,646 | |||
SA American Funds® Growth | 2,111,728 | |||
SA American Funds® Growth-Income | 1,660,685 | |||
SA American Funds VCP Managed Allocation | 12,073,325 |
SAAMCo has contractually agreed to waive fees and/or reimburse expenses of the following Portfolio until April 30, 2019; so that the annual operating expenses do not exceed the following percentage of the Portfolio’s average net assets. For purposes of the waived fees and/or reimbursed expense calculations, annual operating expenses shall not include extraordinary expenses (i.e. expenses that are unusual in nature and infrequent in occurrence such as litigation), or acquired fund fees and expenses, brokerage commissions and other transactional expenses relating to the purchase and sale of portfolio securities, interest, taxes and governmental fees, and other expenses not incurred in the ordinary course of the Portfolio’s business. This agreement may be modified or discontinued prior to April 30, 2019 only with the approval of the Board of Trustees of the Portfolio, including a majority of the Independent Trustees. This agreement will be renewed in terms of one year only if the Adviser agrees to extend the expense limitation.
Portfolio | Class 1 | Class 3 | ||||||
SA American Funds VCP Managed Allocation | 0.28 | % | 0.53 | % |
With the exception of advisory fee waivers, for the year ended December 31, 2018, pursuant to the contractual waivers/reimbursement expense referred to above, SAAMCo did not waive or reimburse any expenses.
With the exception of advisory fee waivers, any contractual waivers or reimbursements made by the Adviser are subject to recoupment from that Portfolio within the following two years after the occurrence of the waivers and/or reimbursements provided that the Portfolio is able to effect such payment to the Adviser and remain in compliance with the expense limitations in effect at the time the waivers and/or reimbursements were made. For the year ended December 31, 2018, no amount was repaid to the Adviser, and there is no remaining balance subject to recoupment.
The Trust has entered into a master Transfer Agency and Service Agreement with VALIC Retirement Services Company (VRSCO), a wholly-owned subsidiary of VALIC, which is an affiliate of the Adviser. Under the agreement, VRSCO provides services, which include the issuance and redemption of shares, payment of dividends between the Trust and their “institutional” shareholders and certain shareholder reporting services including confirmation of transactions, statements of account and tax reporting. The Trust, and certain other mutual funds advised by SAAMCo pay VRSCO on an annual basis, a fee in the aggregate amount of $150,000 for transfer agency services provided, pursuant to the agreement. Accordingly, for the year ended December 31, 2018, transfer agent fees were paid (see Statement of Operations) based on the aforementioned agreement.
Class 3 shares of each Portfolio are subject to Rule 12b-1 plans that provide for service fees payable at the annual rate 0.25% of the average daily net assets of Class 3 shares. The service fees are used to compensate the Life Companies for costs associated with the servicing of Class 3 shares, including the cost of reimbursing the Life Companies for expenditures made to financial intermediaries for providing services to contract holders who are the indirect beneficial owners of the Portfolios’ Class 3 shares. Accordingly, for the year ended December 31, 2018, service fees were paid (see Statement of Operations) based on the aforementioned rate.
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Note 5. Purchases and Sales of Investment Securities
The cost of purchases and proceeds from sales and maturities of long-term investments during the year ended December 31, 2018 were as follows:
Portfolio | Purchases of Portfolio Securities (excluding U.S. Government Securities) | Sales of Portfolio Securities (excluding U.S. Government Securities) | Purchases of U.S. Government Securities | Sales of U.S. Government Securities | ||||||||||||
SA American Funds® Asset Allocation | $ | 286,135,643 | $ | 4,664,759 | $ | — | $ | — | ||||||||
SA American Funds® Global Growth | 19,271,059 | 74,135,056 | — | — | ||||||||||||
SA American Funds® Growth | 12,747,290 | 62,348,620 | — | — | ||||||||||||
SA American Funds® Growth-Income | 9,889,130 | 44,274,709 | — | — | ||||||||||||
SA American Funds VCP Managed Allocation | 1,852,911,192 | 1,765,833,500 | — | — |
Note 6. Capital Share Transactions
Transactions in capital shares of each class of each Portfolio were as follows:
SA American Funds® Asset Allocation Portfolio | ||||||||||||||||||||||||||||||||
Class 1 | Class 3 | |||||||||||||||||||||||||||||||
For the year ended December 31, 2018 | For the year ended December 31, 2017 | For the year ended December 31, 2018 | For the year ended December 31, 2017 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 52,481 | $ | 780,275 | 5,574 | $ | 82,324 | 22,949,626 | $ | 340,660,811 | 18,442,623 | $ | 263,715,938 | ||||||||||||||||||||
Reinvested dividends | 5,231 | 69,708 | 194 | 2,813 | 4,888,668 | 65,164,367 | 769,720 | 11,127,633 | ||||||||||||||||||||||||
Shares redeemed | (7,602 | ) | (111,490 | ) | (3 | ) | (56 | ) | (3,786,337 | ) | (55,978,588 | ) | (2,962,605 | ) | (41,965,645 | ) | ||||||||||||||||
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Net increase (decrease) | 50,110 | $ | 738,493 | 5,765 | $ | 85,081 | 24,051,957 | $ | 349,846,590 | 16,249,738 | $ | 232,877,926 | ||||||||||||||||||||
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SA American Funds® Global Growth Portfolio | ||||||||||||||||||||||||||||||||
Class 1 | Class 3 | |||||||||||||||||||||||||||||||
For the year ended December 31, 2018 | For the year ended December 31, 2017 | For the year ended December 31, 2018 | For the year ended December 31, 2017 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | — | $ | — | — | $ | — | 2,635,695 | $ | 29,221,552 | 1,300,899 | $ | 16,561,311 | ||||||||||||||||||||
Reinvested dividends | 2,919 | 28,781 | 1,003 | 12,696 | 8,620,825 | 85,129,035 | 3,625,447 | 45,779,751 | ||||||||||||||||||||||||
Shares redeemed | — | — | — | (6,238,775 | ) | (81,853,282 | ) | (8,297,188 | ) | (106,452,332 | ) | |||||||||||||||||||||
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Net increase (decrease) | 2,919 | $ | 28,781 | 1,003 | $ | 12,696 | 5,017,745 | $ | 32,497,305 | (3,370,842 | ) | $ | (44,111,270 | ) | ||||||||||||||||||
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SA American Funds® Growth Portfolio | ||||||||||||||||||||||||||||||||
Class 1 | Class 3 | |||||||||||||||||||||||||||||||
For the year ended December 31, 2018 | For the year ended December 31, 2017 | For the year ended December 31, 2018 | For the year ended December 31, 2017 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 18,151 | $ | 256,449 | — | $ | — | 2,459,680 | $ | 30,429,416 | 1,678,023 | $ | 21,538,241 | ||||||||||||||||||||
Reinvested dividends | 10,706 | 109,469 | 1,124 | 14,029 | 9,600,058 | 99,439,357 | 3,127,346 | 38,930,483 | ||||||||||||||||||||||||
Shares redeemed | (32,725 | ) | (296,658 | ) | — | — | (5,731,612 | ) | (77,943,873 | ) | (5,931,545 | ) | (76,787,010 | ) | ||||||||||||||||||
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Net increase (decrease) | (3,868 | ) | $ | 69,260 | 1,124 | $ | 14,029 | 6,328,126 | $ | 51,924,900 | (1,126,176 | ) | $ | (16,318,286 | ) | |||||||||||||||||
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SA American Funds® Growth-Income Portfolio | ||||||||||||||||||||||||||||||||
Class 1 | Class 3 | |||||||||||||||||||||||||||||||
For the year ended December 31, 2018 | For the year ended December 31, 2017 | For the year ended December 31, 2018 | For the year ended December 31, 2017 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 18,101 | $ | 246,681 | — | $ | — | 1,941,502 | $ | 24,389,551 | 1,567,938 | $ | 20,491,708 | ||||||||||||||||||||
Reinvested dividends | 8,580 | 90,252 | 1,303 | 16,133 | 6,367,095 | 67,588,654 | 3,004,175 | 37,100,272 | ||||||||||||||||||||||||
Shares redeemed | (31,486 | ) | (296,070 | ) | — | — | (4,315,963 | ) | (57,100,913 | ) | (3,983,027 | ) | (52,441,518 | ) | ||||||||||||||||||
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Net increase (decrease) | (4,805 | ) | $ | 40,863 | 1,303 | $ | 16,133 | 3,992,634 | $ | 34,877,292 | 589,086 | $ | 5,150,462 | |||||||||||||||||||
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SA American Funds VCP Managed Allocation Portfolio | ||||||||||||||||||||||||||||||||
Class 1 | Class 3 | |||||||||||||||||||||||||||||||
For the year ended December 31, 2018 | For the year ended December 31, 2017 | For the year ended December 31, 2018 | For the year ended December 31, 2017 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 2,102 | $ | 30,066 | 424 | $ | 6,044 | 15,039,627 | $ | 215,370,662 | 21,295,344 | $ | 292,102,492 | ||||||||||||||||||||
Reinvested dividends | 821 | 10,534 | 221 | 3,107 | 9,065,032 | 115,944,064 | 2,971,397 | 41,633,047 | ||||||||||||||||||||||||
Shares redeemed | (50 | ) | (664 | ) | — | — | (8,573,779 | ) | (118,418,979 | ) | (3,296,948 | ) | (45,795,686 | ) | ||||||||||||||||||
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Net increase (decrease) | 2,873 | $ | 39,936 | 645 | $ | 9,151 | 15,530,880 | $ | 212,895,747 | 20,969,793 | $ | 287,939,853 | ||||||||||||||||||||
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Note 7. Line of Credit
The Trust has access to a $75 million committed unsecured line of credit and, along with certain other funds managed by the Adviser, a $50 million uncommitted unsecured line of credit. The committed and uncommitted lines of credit are renewable on an annual basis with State Street Bank and Trust Company (“State Street”), the Trust’s custodian. Interest is currently payable on the committed line of credit at the higher of the Federal Funds Rate (but not less than zero) plus 125 basis points or the One-Month London Interbank Offered Rate (but not less than zero) plus 125 basis points and State Street’s discretionary bid rate on the uncommitted line of credit. The Trust, on behalf of each of the Portfolios, has paid State Street for its own account, such Portfolio’s ratable portion of an upfront fee in an amount equal to $25,000 in the aggregate for the uncommitted line of credit made available by State Street to certain other funds managed by the Adviser, which are also party to the uncommitted line of credit. There is also a commitment fee of 25 basis points per annum on the daily unused portion of the committed line of credit. Borrowings under the line of credit will commence when the respective Portfolio’s cash shortfall exceeds $100,000. For the year ended December 31, 2018, the following Portfolios had borrowings:
Portfolio | Days Outstanding | Interest Charges | Average Debt Utilized | Weighted Average Interest | ||||||||||||
SA American Funds® Asset Allocation | 1 | $ | 11 | $ | 128,055 | 3.17 | % | |||||||||
SA American Funds® Global Growth | 2 | 61 | 307,096 | 3.55 | ||||||||||||
SA American Funds® Growth | 1 | 10 | 100,785 | 3.53 | ||||||||||||
SA American Funds® Growth-Income | 2 | 78 | 398,151 | 3.55 | ||||||||||||
SA American Funds VCP Managed Allocation | 1 | 30 | 345,415 | 3.17 |
At December 31, 2018, there were no borrowings outstanding.
Note 8. Transactions with Affiliates
At December 31, 2018, the following affiliates owned outstanding shares of the following Portfolios:
Holder | ||||||||||||
Portfolio | USL | AGL | VALIC | |||||||||
SA American Funds® Asset Allocation | 5.54 | % | 91.33 | % | 3.13 | % | ||||||
SA American Funds® Global Growth | 4.92 | % | 94.62 | % | 0.46 | % | ||||||
SA American Funds® Growth | 4.93 | % | 94.38 | % | 0.69 | % | ||||||
SA American Funds® Global-Income | 5.27 | % | 93.45 | % | 1.28 | % | ||||||
SA American Funds VCP Managed Allocation | 9.49 | % | 87.74 | % | 2.77 | % |
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SUNAMERICA SERIES TRUST
Selected data for a share of beneficial interest outstanding throughout each period
Period ended | Net Asset Value, beginning of period | Net investment income (loss)* | Net gain (loss) on investments (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Dividend from net realized gain on investments | Total Distributions | Net Asset Value, end of period | Total Return** | Net Assets, end of period (000’s) | Ratio of expenses to average net assets(1)(2) | Ratio of net investment income (loss) to average net assets(1)(2)(3) | Portfolio turnover | |||||||||||||||||||||||||||||||||||||||
SA American Funds® Asset Allocation Portfolio Class 1 |
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09/26/16#-12/31/16 | $ | 12.86 | $ | 0.18 | $ | 0.07 | $ | 0.25 | $ | — | $ | — | $ | — | $ | 13.11 | 1.94 | % | $ | 102 | 0.29 | %† | 5.35 | %† | 4 | % | ||||||||||||||||||||||||||
12/31/17 | 13.11 | 0.23 | 1.88 | 2.11 | (0.12 | ) | (0.25 | ) | (0.37 | ) | 14.85 | 16.10 | 201 | 0.28 | 1.64 | 1 | ||||||||||||||||||||||||||||||||||||
12/31/18 | 14.85 | 0.32 | (0.99 | ) | (0.67 | ) | (0.44 | ) | (0.80 | ) | (1.24 | ) | 12.94 | (4.58 | ) | 824 | 0.27 | 2.30 | 1 | |||||||||||||||||||||||||||||||||
SA American Funds® Asset Allocation Portfolio Class 3 |
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12/31/14 | 13.93 | 0.17 | 0.54 | 0.71 | (0.15 | ) | (0.27 | ) | (0.42 | ) | 14.22 | 5.05 | 168,828 | 0.55 | 1.20 | 11 | ||||||||||||||||||||||||||||||||||||
12/31/15 | 14.22 | 0.20 | (0.09 | ) | 0.11 | (0.20 | ) | (1.08 | ) | (1.28 | ) | 13.05 | 1.16 | 196,545 | 0.55 | 1.44 | 8 | |||||||||||||||||||||||||||||||||||
12/31/16 | 13.05 | 0.20 | 0.95 | 1.15 | (0.24 | ) | (0.86 | ) | (1.10 | ) | 13.10 | 9.09 | 272,006 | 0.54 | 1.52 | 4 | ||||||||||||||||||||||||||||||||||||
12/31/17 | 13.10 | 0.23 | 1.84 | 2.07 | (0.11 | ) | (0.25 | ) | (0.36 | ) | 14.81 | 15.84 | 548,335 | 0.53 | 1.69 | 1 | ||||||||||||||||||||||||||||||||||||
12/31/18 | 14.81 | 0.24 | (0.95 | ) | (0.71 | ) | (0.37 | ) | (0.80 | ) | (1.17 | ) | 12.93 | (4.86 | ) | 789,902 | 0.52 | 1.68 | 1 | |||||||||||||||||||||||||||||||||
SA American Funds® Global Growth Portfolio Class 1 |
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09/26/16#-12/31/16 | 11.64 | 0.09 | (0.58 | ) | (0.49 | ) | — | — | — | 11.15 | (4.21 | ) | 96 | 0.29 | † | 2.92 | † | 10 | ||||||||||||||||||||||||||||||||||
12/31/17 | 11.15 | 0.08 | 3.37 | 3.45 | (0.13 | ) | (1.34 | ) | (1.47 | ) | 13.13 | 31.51 | 126 | 0.28 | 0.64 | 1 | ||||||||||||||||||||||||||||||||||||
12/31/18 | 13.13 | 0.09 | (1.23 | ) | (1.14 | ) | (0.22 | ) | (2.62 | ) | (2.84 | ) | 9.15 | (9.12 | ) | 115 | 0.27 | 0.68 | 5 | |||||||||||||||||||||||||||||||||
SA American Funds® Global Growth Portfolio Class 3 |
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12/31/14 | 15.39 | 0.13 | 0.17 | 0.30 | (0.14 | ) | (0.51 | ) | (0.65 | ) | 15.04 | 1.97 | 458,076 | 0.53 | 0.84 | 12 | ||||||||||||||||||||||||||||||||||||
12/31/15 | 15.04 | 0.11 | 0.81 | 0.92 | (0.15 | ) | (2.52 | ) | (2.67 | ) | 13.29 | 6.68 | 422,275 | 0.53 | 0.70 | 12 | ||||||||||||||||||||||||||||||||||||
12/31/16 | 13.29 | 0.08 | 0.01 | 0.09 | (0.23 | ) | (2.00 | ) | (2.23 | ) | 11.15 | 0.37 | 411,747 | 0.53 | 0.62 | 10 | ||||||||||||||||||||||||||||||||||||
12/31/17 | 11.15 | 0.04 | 3.37 | 3.41 | (0.13 | ) | (1.34 | ) | (1.47 | ) | 13.09 | 31.05 | 439,414 | 0.53 | 0.33 | 1 | ||||||||||||||||||||||||||||||||||||
12/31/18 | 13.09 | 0.05 | (1.21 | ) | (1.16 | ) | (0.15 | ) | (2.62 | ) | (2.77 | ) | 9.16 | (9.28 | ) | 353,422 | 0.53 | 0.35 | 5 |
* | Calculated based on average shares outstanding. |
** | Total return is not annualized and does not reflect expenses that apply to the separate accounts of the Life Companies. If such expenses had been included, the total return would have been lower for each period presented. Total return does include expense reimbursements (recoupment). |
† | Annualized |
# | Commencement of operations. |
(1) | During the below stated periods, the investment adviser either waived fees or reimbursed expenses for the Portfolios or through recoupment provisions, recovered a portion of or all fees and expenses waived or reimbursed in the previous two fiscal years. If all fees and expenses had been incurred by the Portfolios, the ratio of expenses to average net assets and the ratio of net investment income (loss) to average net assets would have been as follows: |
Expenses | Net Investment Income ( Loss) | |||||||||||||||||||||||||||||||||||||||
Portfolio | 12/14 | 12/15 | 12/16 | 12/17 | 12/18 | 12/14 | 12/15 | 12/16 | 12/17 | 12/18 | ||||||||||||||||||||||||||||||
SA American Funds® Asset Allocation Class 1 | — | % | — | % | 0.89 | %† | 0.88 | % | 0.87 | % | — | % | — | % | 4.75 | %† | 1.04 | % | 1.70 | % | ||||||||||||||||||||
SA American Funds® Asset Allocation Class 3 | 1.15 | 1.15 | 1.14 | 1.13 | 1.12 | 0.60 | 0.84 | 0.92 | 1.09 | 1.08 | ||||||||||||||||||||||||||||||
SA American Funds® Global Growth Class 1 | — | — | 0.99 | † | 0.98 | 0.97 | — | — | 2.22 | † | (0.06 | ) | (0.02 | ) | ||||||||||||||||||||||||||
SA American Funds® Global Growth Class 3 | 1.23 | 1.23 | 1.23 | 1.23 | 1.23 | 0.14 | 0.00 | (0.08 | ) | (0.37 | ) | (0.35 | ) |
(2) | Does not include underlying fund expenses that the Portfolios bear indirectly. |
(3) | Recognition of net investment income by the Portfolios is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolios invest. |
See Notes to Financial Statements
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Table of Contents
SUNAMERICA SERIES TRUST
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout each period
Period ended | Net Asset Value, beginning of period | Net investment income (loss)* | Net gain (loss) on investments (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Dividend from net realized gain on investments | Total Distributions | Net Asset Value, end of period | Total Return** | Net Assets, end of period (000’s) | Ratio of expenses to average net assets(1)(2) | Ratio of net investment income (loss) to average net assets(1)(2)(3) | Portfolio turnover | |||||||||||||||||||||||||||||||||||||||
SA American Funds® Growth Portfolio Class 1 |
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09/26/16#-12/31/16 | $ | 11.24 | $ | 0.08 | $ | 0.23 | $ | 0.31 | $ | — | $ | — | $ | — | $ | 11.55 | 2.76 | % | $ | 103 | 0.30 | %† | 2.63 | %† | 4 | % | ||||||||||||||||||||||||||
12/31/17 | 11.55 | 0.06 | 3.12 | 3.18 | (0.07 | ) | (1.51 | ) | (1.58 | ) | 13.15 | 28.24 | 132 | 0.28 | 0.48 | 1 | ||||||||||||||||||||||||||||||||||||
12/31/18 | 13.15 | (0.32 | ) | 0.41 | 0.09 | (0.19 | ) | (3.82 | ) | (4.01 | ) | 9.23 | (0.40 | ) | 57 | 0.27 | (2.25 | ) | 4 | |||||||||||||||||||||||||||||||||
SA American Funds® Growth Portfolio Class 3 |
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12/31/14 | 14.04 | 0.13 | 1.02 | 1.15 | (0.09 | ) | (0.08 | ) | (0.17 | ) | 15.02 | 8.19 | 314,384 | 0.54 | 0.90 | 10 | ||||||||||||||||||||||||||||||||||||
12/31/15 | 15.02 | 0.05 | 0.86 | 0.91 | (0.14 | ) | (1.36 | ) | (1.50 | ) | 14.43 | 6.52 | 310,350 | 0.54 | 0.32 | 13 | ||||||||||||||||||||||||||||||||||||
12/31/16 | 14.43 | 0.06 | 1.06 | 1.12 | (0.05 | ) | (3.96 | ) | (4.01 | ) | 11.54 | 9.17 | 321,687 | 0.53 | 0.49 | 4 | ||||||||||||||||||||||||||||||||||||
12/31/17 | 11.54 | 0.03 | 3.12 | 3.15 | (0.06 | ) | (1.51 | ) | (1.57 | ) | 13.12 | 28.02 | 350,726 | 0.54 | 0.19 | 1 | ||||||||||||||||||||||||||||||||||||
12/31/18 | 13.12 | 0.02 | 0.04 | 0.06 | (0.12 | ) | (3.82 | ) | (3.94 | ) | 9.24 | (0.55 | ) | 305,503 | 0.53 | 0.13 | 4 | |||||||||||||||||||||||||||||||||||
SA American Funds® Growth-Income Portfolio Class 1 |
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09/26/16#-12/31/16 | 11.83 | 0.16 | 0.26 | 0.42 | — | — | — | 12.25 | 3.55 | 104 | 0.29 | † | 4.89 | † | 3 | |||||||||||||||||||||||||||||||||||||
12/31/17 | 12.25 | 0.18 | 2.47 | 2.65 | (0.23 | ) | (1.68 | ) | (1.91 | ) | 12.99 | 22.39 | 127 | 0.29 | 1.38 | 2 | ||||||||||||||||||||||||||||||||||||
12/31/18 | 12.99 | 0.06 | (0.17 | ) | (0.11 | ) | (0.41 | ) | (2.93 | ) | (3.34 | ) | 9.54 | (1.86 | ) | 47 | 0.28 | 0.45 | 4 | |||||||||||||||||||||||||||||||||
SA American Funds® Growth-Income Portfolio Class 3 |
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12/31/14 | 13.68 | 0.14 | 1.26 | 1.40 | (0.14 | ) | (0.12 | ) | (0.26 | ) | 14.82 | 10.28 | 263,319 | 0.54 | 0.99 | 10 | ||||||||||||||||||||||||||||||||||||
12/31/15 | 14.82 | 0.15 | (0.03 | ) | 0.12 | (0.15 | ) | (1.16 | ) | (1.31 | ) | 13.63 | 1.17 | 246,642 | 0.54 | 1.00 | 13 | |||||||||||||||||||||||||||||||||||
12/31/16 | 13.63 | 0.16 | 1.20 | 1.36 | (0.20 | ) | (2.55 | ) | (2.75 | ) | 12.24 | 11.16 | 258,669 | 0.54 | 1.19 | 3 | ||||||||||||||||||||||||||||||||||||
12/31/17 | 12.24 | 0.14 | 2.47 | 2.61 | (0.22 | ) | (1.68 | ) | (1.90 | ) | 12.95 | 22.08 | 281,189 | 0.54 | 1.06 | 2 | ||||||||||||||||||||||||||||||||||||
12/31/18 | 12.95 | 0.14 | (0.28 | ) | (0.14 | ) | (0.34 | ) | (2.93 | ) | (3.27 | ) | 9.54 | (2.05 | ) | 245,183 | 0.53 | 1.07 | 4 |
* | Calculated based on average shares outstanding. |
** | Total return is not annualized and does not reflect expenses that apply to the separate accounts of the Life Companies. If such expenses had been included, the total return would have been lower for each period presented. Total return does include expense reimbursements (recoupment). |
† | Annualized |
# | Commencement of operations. |
(1) | During the below stated periods, the investment adviser either waived fees or reimbursed expenses for the Portfolios or through recoupment provisions, recovered a portion of or all fees and expenses waived or reimbursed in the previous two fiscal years. If all fees and expenses had been incurred by the Portfolios, the ratio of expenses to average net assets and the ratio of net investment income (loss) to average net assets would have been as follows: |
Expenses | Net Investment Income ( Loss) | |||||||||||||||||||||||||||||||||||||||
Portfolio | 12/14 | 12/15 | 12/16 | 12/17 | 12/18 | 12/14 | 12/15 | 12/16 | 12/17 | 12/18 | ||||||||||||||||||||||||||||||
SA American Funds® Growth Class 1 | — | % | — | % | 0.90 | %† | 0.88 | % | 0.87 | % | — | % | — | % | 2.03 | %† | (0.12 | )% | (2.85 | )% | ||||||||||||||||||||
SA American Funds® Growth Class 3 | 1.14 | 1.14 | 1.13 | 1.14 | 1.13 | 0.30 | (0.28 | ) | (0.11 | ) | (0.41 | ) | (0.47 | ) | ||||||||||||||||||||||||||
SA American Funds® Growth-Income Class 1 | — | — | 0.89 | † | 0.89 | 0.88 | — | — | 4.29 | † | 0.78 | (0.15 | ) | |||||||||||||||||||||||||||
SA American Funds® Growth-Income Class 3 | 1.14 | 1.14 | 1.14 | 1.14 | 1.13 | 0.39 | 0.40 | 0.59 | 0.46 | 0.47 |
(2) | Does not include underlying fund expenses that the Portfolios bear indirectly. |
(3) | Recognition of net investment income by the Portfolios is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolios invest. |
See Notes to Financial Statements
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SUNAMERICA SERIES TRUST
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout each period
Period ended | Net Asset Value, beginning of period | Net investment income (loss)* | Net gain (loss) on investments (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Dividend from net realized gain on investments | Total Distributions | Net Asset Value, end of period | Total Return** | Net Assets, end of period (000’s) | Ratio of expenses to average net assets(1)(2) | Ratio of net investment income (loss) to average net assets(1)(2)(3) | Portfolio turnover | |||||||||||||||||||||||||||||||||||||||
SA American Funds VCP Managed Allocation Portfolio Class 1@ |
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09/26/16#-12/31/16 | $ | 12.66 | $ | 0.05 | $ | 0.16 | $ | 0.21 | $ | — | $ | — | $ | — | $ | 12.87 | 1.66 | % | $ | 102 | 0.28 | %† | 1.40 | %† | 2 | % | ||||||||||||||||||||||||||
12/31/17 | 12.87 | 0.07 | 1.82 | 1.89 | (0.11 | ) | (0.28 | ) | (0.39 | ) | 14.37 | 14.78 | 123 | 0.27 | 0.51 | 2 | ||||||||||||||||||||||||||||||||||||
12/31/18 | 14.37 | 0.22 | (0.92 | ) | (0.70 | ) | (0.28 | ) | (0.71 | ) | (0.99 | ) | 12.68 | (4.89 | ) | 145 | 0.27 | 1.56 | 103 | |||||||||||||||||||||||||||||||||
SA American Funds VCP Managed Allocation Portfolio Class 3@ |
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12/31/14 | 12.11 | (0.03 | ) | 0.36 | 0.33 | (0.05 | ) | (0.00 | ) | (0.05 | ) | 12.39 | 2.72 | 275,987 | 0.53 | (0.22 | ) | 0 | ||||||||||||||||||||||||||||||||||
12/31/15 | 12.39 | 0.19 | (0.36 | ) | (0.17 | ) | — | — | — | 12.22 | (1.37 | ) | 710,452 | 0.53 | 1.59 | 2 | ||||||||||||||||||||||||||||||||||||
12/31/16 | 12.22 | 0.14 | 0.72 | 0.86 | (0.09 | ) | (0.12 | ) | (0.21 | ) | 12.87 | 7.07 | 1,215,590 | 0.53 | 1.16 | 2 | ||||||||||||||||||||||||||||||||||||
12/31/17 | 12.87 | 0.04 | 1.80 | 1.84 | (0.10 | ) | (0.28 | ) | (0.38 | ) | 14.33 | 14.41 | 1,654,513 | 0.52 | 0.26 | 2 | ||||||||||||||||||||||||||||||||||||
12/31/18 | 14.33 | 0.19 | (0.93 | ) | (0.74 | ) | (0.21 | ) | (0.71 | ) | (0.92 | ) | 12.67 | (5.12 | ) | 1,659,358 | 0.52 | 1.32 | 103 |
* | Calculated based on average shares outstanding. |
** | Total return is not annualized and does not reflect expenses that apply to the separate accounts of the Life Companies. If such expenses had been included, the total return would have been lower for each period presented. Total return does include expense reimbursements (recoupment). |
† | Annualized |
# | Commencement of operations. |
@ | See Note 1 |
(1) | During the below stated periods, the investment adviser either waived fees or reimbursed expenses for the Portfolios or through recoupment provisions, recovered a portion of or all fees and expenses waived or reimbursed in the previous two fiscal years. If all fees and expenses had been incurred by the Portfolios, the ratio of expenses to average net assets and the ratio of net investment income (loss) to average net assets would have been as follows: |
Expenses | Net Investment Income ( Loss) | |||||||||||||||||||||||||||||||||||||||
Portfolio | 12/14 | 12/15 | 12/16 | 12/17 | 12/18 | 12/14 | 12/15 | 12/16 | 12/17 | 12/18 | ||||||||||||||||||||||||||||||
SA American Funds VCP Managed Allocation Class 1 | — | % | — | % | 0.98 | %† | 0.97 | % | 0.97 | % | — | % | — | % | 0.70 | %† | (0.19 | )% | 0.86 | % | ||||||||||||||||||||
SA American Funds VCP Managed Allocation Class 3 | 1.25 | 1.23 | 1.23 | 1.22 | 1.22 | (0.94 | ) | 0.88 | 0.46 | (0.44 | ) | 0.61 |
(2) | Does not include underlying fund expenses that the Portfolios bear indirectly. |
(3) | Recognition of net investment income by the Portfolios is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolios invest. |
See Notes to Financial Statements
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SUNAMERICA SERIES TRUST
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of SunAmerica Series Trust and Shareholders of SA American Funds® Asset Allocation Portfolio, SA American Funds® Global Growth Portfolio, SA American Funds® Growth-Income Portfolio, SA American Funds® Growth Portfolio and SA American Funds VCP Managed Allocation Portfolio (formerly SA American Funds VCP Managed Asset Allocation Portfolio)
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of SA American Funds® Asset Allocation Portfolio, SA American Funds® Global Growth Portfolio, SA American Funds® Growth-Income Portfolio, SA American Funds® Growth Portfolio and SA American Funds VCP Managed Allocation Portfolio (formerly SA American Funds VCP Managed Asset Allocation Portfolio) (constituting SunAmerica Series Trust, hereafter collectively referred to as the “Portfolios”) as of December 31, 2018, the related statements of operations for the year ended December 31, 2018, the statements of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Portfolios as of December 31, 2018, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended December 31, 2018 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Portfolios’ management. Our responsibility is to express an opinion on the Portfolios’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Portfolios in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the transfer agent. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
Houston, Texas
February 27, 2019
We have served as the auditor of one or more investment companies in the SunAmerica annuity family of funds (consisting of SunAmerica Series Trust, Seasons Series Trust and Anchor Series Trust) since at least 1986. We have not been able to determine the specific year we began serving as auditor.
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SUNAMERICA SERIES TRUST
APPROVAL OF ADVISORY AGREEMENT
December 31, 2018 (unaudited)
At a meeting held on October 10, 2018, the Board of Trustees (the “Board”), including the Trustees that are not interested persons of SunAmerica Series Trust (the “Trust”), as defined in the Investment Company Act of 1940, as amended (the “Independent Trustees”), approved with respect to the American Funds Asset Allocation SAST Portfolio, American Funds Growth SAST Portfolio, American Funds Global Growth SAST Portfolio, American Funds Growth-Income SAST Portfolio and VCP Managed Asset Allocation Portfolio (collectively, the “Portfolios”) the continuation of the Investment Management and Advisory Agreement between SunAmerica Asset Management, LLC (“SAAMCo” or the “Adviser”) and the Trust (the “Advisory Agreement”).
In connection with the approval of the Advisory Agreement, the Board received materials related to certain factors used in its consideration whether to renew or approve the Advisory Agreement. Those factors included:
(1) | the requirements of the Trust in the areas of investment supervisory and administrative services; |
(2) | the nature, extent and quality of the investment advisory, administrative, operational and compliance services provided by SAAMCo, including a review of the investment performance of the Portfolios; |
(3) | the size and structure of the investment advisory fee and any other material payments to the Adviser and, in connection therewith, a review of the costs of services provided and the profits realized by the Adviser and its affiliates from the relationship with the Trust; |
(4) | the expenses paid by each of the Portfolios, including their total operating expenses and any applicable expense limitation; |
(5) | the extent to which the Adviser realizes economies of scale and shares them with the Trust; and |
(6) | the organizational capability, resources, personnel and financial condition of the Adviser and its affiliates. |
In addition, the Board considered (a) the historical relationship between the Trust and SAAMCo; (b) the possibility that services of the type required by the Trust might be better obtained from other organizations; and (c) the conditions and trends prevailing in the economy, the securities markets and the investment company industry
The Independent Trustees were separately represented by counsel that is independent of SAAMCo in connection with their consideration of approval of the Advisory Agreement. The matters discussed below were also considered separately by the Independent Trustees in executive sessions during which their independent counsel provided guidance to the Independent Trustees.
The Board received information regarding the Trust’s advisory fees compared to advisory fee rates of a group of funds with similar investment strategies and/or objectives, as applicable, (the “Expense Group/Universe”), as selected and prepared by an independent third-party provider of investment company data. The Board also received performance data and expense information prepared by management.
Nature, Extent and Quality of Services.
The Board, including the Independent Trustees, considered the nature, quality and extent of services provided by SAAMCo. In making its evaluation, the Board considered that SAAMCo acts as adviser for each Portfolio and manages the daily business affairs of the Trust, subject to the Trustees’ oversight and control. It was also noted that SAAMCo’s advisory fees compensate SAAMCo for services such as monitoring Portfolio performance and other administrative, compliance and legal services.
The Board noted that SAAMCo is responsible for overseeing the performance of services by the Trust’s custodian, transfer agent and dividend disbursing agent. The Board also noted that SAAMCo is responsible for the financial, legal and accounting records required to be maintained by each Portfolio and for the administration of the Trust’s business affairs, including providing such office space, bookkeeping, accounting, clerical, secretarial and administrative services (exclusive of, and in addition to, any such service provided by any others retained by the Trust or any Portfolio) and such executive and other personnel as may be necessary for the operations of each Portfolio. The Board considered that SAAMCo monitors and reviews the activities of third-party service providers that may provide additional administrative services.
In addition, the Board considered the key personnel of SAAMCo that are involved in the investment management, administration, compliance and risk management activities with respect to the Portfolios. The Board also considered the compensation program for SAAMCo’s investment professionals.
The Board reviewed the qualifications, background and responsibilities of SAAMCo’s staff who is responsible for providing investment management services to the Portfolios and other key personnel of SAAMCo in addition to current and projected staffing levels and compensation practices.
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SUNAMERICA SERIES TRUST
APPROVAL OF ADVISORY AGREEMENT
December 31, 2018 (unaudited) (continued)
The Board considered SAAMCo’s reputation and long-standing relationship with the Portfolios and considered the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of types of mutual funds and shareholder services. The Board also considered the Trust’s relationship with affiliated life insurance companies that offer the Portfolios through variable annuity and variable life insurance products. The Board considered SAAMCo’s experience in providing management and investment advisory and administrative services to advisory clients. The Board also considered SAAMCo’s code of ethics and its risk management process, and that SAAMCo has developed internal procedures, adopted by the Board, for monitoring compliance with the investment objectives, policies and restrictions of the Portfolios as set forth in the Portfolios’ registration statement.
The Board also reviewed and considered SAAMCo’s compliance and regulatory history, including information about any litigation, regulatory actions or investigations that could impair its ability to serve as an adviser to the Portfolios. The Board considered SAAMCo’s risk assessment and risk management processes. The Board concluded that there was no information provided that would have a material adverse effect on SAAMCo’s ability to provide services to the Trust.
The Board concluded that it was satisfied with the nature, quality and extent of the services provided by or to be provided by SAAMCo and that there was a reasonable basis on which to conclude that they would provide high quality services to the Trust.
Portfolio Fees and Expenses; Investment Performance.
The Board, including the Independent Trustees, received and reviewed information regarding the Portfolios’ fees (actual or contractual management fees,non-management fees,and 12b-1 fees, if applicable), and expense ratios compared against such fees and expense ratios of the Expense Group/Universe for each Portfolio. Such fees and expense ratios were compared both before and after expense waivers, caps and reimbursements, if any.
To assist in analyzing the reasonableness of the advisory fee, the Board received a report prepared independently by Broadridge Financial Solutions, Inc. (“Broadridge”) as well as information provided by management. The Board also considered advisory fees received by the Adviser with respect to other mutual funds and accounts with similar investment strategies to the Portfolios. Based on the information from Broadridge, the Board reviewed detailed information about peer groups of comparable mutual funds based on various factors such as the type of fund (those underlying variable insurance products), comparable investment objectives and strategies, among other factors. Referred to herein are “Expense Groups” and “Performance Groups” that represent those peer groups of funds used to compare expenses and performance, respectively.
The performance information included annualized returns for the period since inception and theone-, three-,five-andten-year periods, as applicable, ended June 30, 2018 from Broadridge and performance information as of June 30, 2018 from management. On a quarterly basis, the Board monitors and reviews various materials presented and prepared by management, including but not limited to each Portfolio’s overall performance, performance relative to each Portfolio’s relevant benchmark and Morningstar and/or Broadridge peer groups, as applicable. The Board considered that management makes particular note of Portfolios that may require closer monitoring or potential corrective action by the Board.
As part of its review of the Portfolios’ fees and expenses and performance, the Board considered information, including but not limited to the following expense and performance information, provided by Broadridge and management in making its determinations. It was noted that actual advisory fees and total expenses were calculated as of each Portfolio’s most recent fiscal year end, which may vary among the Portfolio’s Expense Group/Universe.
The Boards considered that certain Portfolios pay advisory fees indirectly to Capital Research & Management Company (“Capital Research”) through their investment in the master funds. The Boards further considered the amount of such fees and the amount of the management fees paid to SAAMCo and determined that the amounts paid to SAAMCo by such Portfolios were reasonable in light of the services performed by SAAMCo.
• | SA American Funds® Asset Allocation Portfolio (master-feeder fund advised by Capital Research/SAAMCo). The Board noted that both actual management fees and total expenses were below the medians of its Expense Group. The Board considered that SAAMCo has contractually agreed to waive 0.60% of its investment advisory fee. |
The Board considered that the Portfolio outperformed its benchmark index for theone-, three-, five- andten-year periods. The Board further considered that the Portfolio performed above the medians of its Performance Group for the same periods.
• | SA American Funds® Global Growth Portfolio (master-feeder fund advised by Capital Research/SAAMCo). The Board considered that actual management fees and total expenses were slightly above the medians of its Expense Group. The Board considered that SAAMCo has contractually agreed to waive 0.70% of its investment advisory fee. |
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SUNAMERICA SERIES TRUST
APPROVAL OF ADVISORY AGREEMENT
December 31, 2018 (unaudited) (continued)
The Board considered that the Portfolio outperformed its benchmark index for the three- and five-year periods but performed below that index for theone-year period. The Board further considered that the Portfolio performed above the medians of its Performance Group for theone-, three-, five- andten-year periods. The Board took into account management’s discussion of the Master Fund’s performance.
• | SA American Funds® Growth-Income Portfolio (master-feeder fund advised by Capital Research/SAAMCo). The Board noted that both actual management fees and actual total expenses were below the medians of its Expense Group. The Board considered that SAAMCo has contractually agreed to waive 0.60% of its investment advisory fee. |
The Board considered that the Portfolio outperformed its benchmark index for theone-, three-, five andten-year periods. The Board also noted that the Portfolio performed above the medians of its Performance Group for the same periods.
• | SA American Funds® Growth Portfolio (master-feeder fund advised by Capital Research/SAAMCo). The Board noted that both actual management fees and total expenses were below the medians of its Expense Group. The Board considered that SAAMCo has contractually agreed to waive 0.60% of its investment advisory fee. |
The Board considered that the Portfolio performed above its benchmark index for the three-year period but below that index for theone-, five- andten-year periods. The Board further considered that the Portfolio performed above the median of its Performance Group for the three-year period but below the medians for theone-, five- andten-year periods. The Board took into account management’s discussion of the Master Fund’s performance.
• | SA American Funds® VCP Managed Asset Allocation Portfolio (master-feeder fund advised by Capital Research/SAAMCo). The Board noted that actual management fees were below the median of its Expense Group. The Board also noted that total expenses were above the median of its Expense Group. The Board further noted that SAAMCo has contractually agreed to waive 0.70% of its advisory fee and that there is an expense limitation of 0.28% and 0.53% on Class 1 and Class 3 shares, respectively. |
The Board considered that the Portfolio outperformed its benchmark index for theone- and three-year periods and slightly below the index for the five-year period. The Board also considered that the Portfolio performed at or above the medians of its Performance Group for theone-, three- and five-year periods.
Cost of Services & Benefits Derived.
With respect to indirect costs and benefits, the Board was informed, based on management’s judgment, that any indirect costs incurred by SAAMCo in connection with rendering investment advisory services to the Trust were inconsequential to the analysis of the adequacy of the advisory fees, and that any collateral benefits derived as a result of providing advisory services to the Trust did not impact the reasonableness of the advisory fee. The Board considered that SAAMCo is paid an administrative services fee of up to 0.04% of the average daily net asset value of the Trust’s Portfolios pursuant to an arrangement between SAAMCo and certain affiliated life insurance companies (the “Life Companies”). The Board considered that the Trust also pays VALIC Retirement Services Company, an affiliate of SAAMCo, a fee for the provision of recordkeeping and shareholder services to contract owners and participants.
In connection with benefits derived from the Trust, the Board considered that the Life Companies may benefit as a result of their direct ownership of the Portfolios’ shares, which amounts may be significant. It was noted that in calculating their corporate income tax liability as insurance companies, the Life Companies, as corporate mutual fund shareholders, may exclude a portion of the ordinary dividends paid by underlying U.S. equities in the Portfolios to the same extent the Portfolios receive certain dividends with respect to shares of stock issued by domestic corporations, subject to applicable tax laws and regulations. In addition, the Life Companies may also rely on foreign tax credits with respect to certain foreign securities held by applicable Portfolios. The Board considered that the Life Companies receive financial support from SAAMCo for distribution-related activities, including administrative, marketing and other servicing activities, including payments to help offset costs for marketing activities and training (including training of registered representatives of AIG Capital Services, Inc., an affiliate of SAAMCo) to support sales of the Portfolios, as well as occasional gifts, entertainment or other compensation as incentives. It was noted that such payments may be derivedfrom 12b-1 (service) fees that are deducted directly from the assets of the Portfolios or from investment management fees received by SAAMCo. In addition, the Board considered that, because shares of the Portfolios are offered as investment options through variable annuity or life contracts issued by the Life Companies (the “Variable Contracts”), the investment objectives, strategies and performance of the Portfolios may positively or negatively impact a Life Company’s ability to hedge and the related hedging costs associated with guarantees that the Life Company may provide as the issuer of the Variable Contracts.
The Board concluded that any benefits that SAAMCo and its affiliates could be expected to receive with regard to providing investment advisory and other services to the Portfolios were reasonable.
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SUNAMERICA SERIES TRUST
APPROVAL OF ADVISORY AGREEMENT
December 31, 2018 (unaudited) (continued)
Profitability and Economies of Scale.
The Board received information related to SAAMCo’s profitability as well as the profitability of certain affiliates with respect to the services they provide to the Trust’s Portfolios. The profitability analysis reflected the relationship between SAAMCo and American General Life Insurance Company (“AGL”) that provides that SAAMCo contributes the profits earned through its management of the Portfolios of the Trust to AGL. The Board also considered that SAAMCo has entered into an agreement with The United States Life Insurance Company in the City of New York (“U.S. Life”) wherein SAAMCo pays U.S. Life a fee to perform certain administrative services for the benefit of certain variable annuity contract owners. Pursuant to additional Administrative Services Agreements between SAAMCo and each of AGL and U.S. Life, SAAMCo pays a fee to each insurer and in return each insurer provides certain administrative, recordkeeping, accounting and similar such services to the Portfolios as they relate to the insurer’s participants owning interest in shares of the Trust. The Board further considered that certain SAAMCo affiliates (i.e., AGL, U.S. Life and The Variable Annuity Life Insurance Company) provide services pursuant to certain agreements with the Trust and the Portfolios’ Rule12b-1 Plans. The Board determined that the profitability to SAAMCo in connection with its relationship to the Trust was reasonable. In addition, the Board considered the Investment Management Profitability Analysis prepared by an independent information service, Broadridge, and noted that SAAMCo’s profitability was generally in the range of the profitability of companies contained in the report.
The Board also received and considered information regarding the ability of the Portfolios to achieve economies of scale. It was noted that the advisory fees of nearly all Portfolios contain breakpoints that will reduce the fees paid by a Portfolio as its assets increase. The Board also considered that SAAMCo has voluntarily agreed to waive fees in certain instances, which was noted earlier in the discussion of fees. It was noted that as a result of being part of a complex of mutual funds advised or administered by SAAMCo, the Trust is able to share common resources and may share certain expenses, which could result in a Portfolio experiencing lower expenses than it otherwise would achieve if the Trust were a stand-alone entity. The Board considered that management believed that the Portfolios’ existing fee schedules and the fee schedules for those Portfolios for which management proposed reductions or waivers reflect the economies of scale inherent in providing investment advice to a Portfolio in its particular asset category and asset size. The Board concluded that any potential economies of scale are currently being shared between the Trust and SAAMCo in an appropriate manner.
Terms of Advisory Agreement.
The Board, including the Independent Trustees, reviewed the terms of the Advisory Agreement including the duties and responsibilities undertaken by SAAMCo as discussed above. The Board considered that SAAMCo pays all of its own expenses in connection with the performance of its duties, as well as the salaries, fees and expenses of the officers of the Trust who are employees of SAAMCo.
Conclusions.
In reaching its decision to recommend the renewal of the Advisory Agreement, the Board did not identify any single factor as being controlling, but based its recommendation on each of the factors it considered and each Trustee attributes different weight to the various factors. Based upon the materials it reviewed, the representations made to it and the considerations described above, and as part of their deliberations, the Board, including the Independent Trustees, concluded that SAAMCo possesses the capability and resources to perform the duties required of it under the Advisory Agreement.
Further, based upon its review of the Advisory Agreement, the materials provided, and the considerations described above, the Board, including the Independent Trustees, concluded that: (1) the terms of the Advisory Agreement are reasonable, fair and in the best interest of the Portfolios and their shareholders, and (2) the advisory fee rates are fair and reasonable in light of the usual and customary charges made for services of the same nature and quality and the other factors considered.
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SUNAMERICA SERIES TRUST
TRUSTEES AND OFFICERS INFORMATION(unaudited)
The following table contains information regarding the Trustees and Officers that oversee operations of the Portfolios and other investment companies within the Fund complex.
Name, Address and Age† | Position Held | Term of | Principal Occupation(s) | Number of Portfolios in Fund Complex Overseen by Trustee(1) | Other Directorships | |||||||
Disinterested Trustee | ||||||||||||
Garrett F. Bouton Age: 74 | Trustee | 2007 – Present | Retired (2003-Present); Managing Director and CEO, Barclays Global Investors (1996-2003). | 77 | Chairman/Director, The LECG Group (consulting services)(2006-2010). | |||||||
Carl D. Covitz Age: 79 | Trustee | 2001 – Present | Owner and President, Landmark Capital, Inc. (1973-Present). | 77 | Director, Arden Realty, Inc. (real estate) (1995-2006). | |||||||
Jane Jelenko Age: 70 | Trustee | 2006 – Present | Retired Partner KPMG, LLP and Managing Director Bearingpoint, Inc. (formerly KPMG Consulting). (2003-Present). | 77 | Director, Countrywide Bank(2003-2008) and Director, Cathay General Bancorp and CathayBank (banking) (2012-Present). | |||||||
Gilbert T. Ray Age: 74 | Trustee | 2001 – Present | Retired Partner, O’Melveny & Myers LLP (law firm)(2000-Present). | 77 | Director, Advanced Auto Parts, Inc. (retail, auto and home supply stores) (2002-2016); Director, Watson, Wyatt Worldwide (services — management consulting services) (2000-2009); Director Dine Equity (services — restaurant) (2004-Present); Director Diamond Rock Hospitality (financial — real estate) (2005-Present); Director, Towers Watson & Co. (services — management consulting services) (2010-2016). | |||||||
Allan L. Sher Age: 87 | Trustee | 1997 – Present | Retired Brokerage Executive (1992-Present). | 77 | Director, Bowl America Inc.(1997-Present). | |||||||
Bruce G. Willison Age: 70 | Trustee and Chairman | 2001 – Present | Professor of Management, Anderson School at UCLA (1999-2011); Dean, Anderson School at UCLA (1999-2005); co-founder, Grandpoint Capital, Inc. (2009-2010). | 77 | Director, GrandPoint Bank (banking). (2011-Present); Director, Indy Mac Bancorp (banking)(2003-2008); Director, Move, Inc. (internet real estate site) (2003-Present); Director, Healthnet International, Inc. (business services) (2000-2016). | |||||||
Interested Trustee | ||||||||||||
Peter Harbeck (2) Age: 64 | Trustee | 2014 – Present | President (1995-Present), CEO (1997-Present) and Director, (1992-Present), SAAMCo; Director, AIG Capital Services, Inc. (“ACS”) (1993-Present); Chairman, President and CEO, Advisor Group, Inc., (2004-2016). | 150 | None |
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SUNAMERICA SERIES TRUST
TRUSTEES AND OFFICERS INFORMATION(unaudited) — (continued)
Name, Address and Age† | Position Held | Term of Office and Time Served(4) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee(1) | Other Directorships Held by Trustee(3) | |||||
Officers | ||||||||||
John T. Genoy Age: 50 | President | 2007 – Present | Chief Financial Officer, SAAMCo (2002-Present); Senior Vice President, SAAMCo(2004-Present); Chief Operating Officer, SAAMCo (2006-Present). | N/A | N/A | |||||
Kathleen D. Fuentes Age: 49 | Chief Legal Officer, Vice President, and Secretary | 2015 – Present | Vice President and Deputy General Counsel, SAAMCo(2004-Present). | N/A | N/A | |||||
Christopher C. Joe | Chief Compliance Officer | 2017-Present | Chief Compliance Officer, AIG Funds, Seasons Series Trust, SunAmerica Series Trust, VALIC Company I and VALIC Company II (2017-Present); Chief Compliance Officer, VALIC Retirement Services Company (2017-Present); Chief Compliance Officer, Invesco Powershares (2012-2017); Chief Compliance Officer, Invesco Investment Advisers, LLC (2010- 2013); U.S. Compliance Director, Invesco, Ltd (2006-2014); Deputy Chief Compliance Officer, Invesco Advisers, Inc. (2014-2015). | N/A | N/A | |||||
Gregory N. Bressler Age: 52 | Vice President and Assistant Secretary | 2005 – Present | Senior Vice President and General Counsel, SAAMCo(2005-Present). | N/A | N/A | |||||
Gregory R. Kingston Age 52 | Treasurer | 2014 – Present | Vice President, SAAMCo(2001-Present); Head of Mutual Fund Administration(2014-Present); Senior Vice President, SAAMCo (2014-Present). | N/A | N/A | |||||
Shawn Parry Age: 46 | Vice President and Assistant Treasurer | 2014 – Present | Assistant Vice President, SAAMCo (2005-2014); Vice President, SAAMCo (2014-Present). | N/A | N/A | |||||
Donna McManus Age: 57 | Vice President and Assistant Treasurer | 2014 – Present | Vice President, SAAMCo (2014-Present); Managing Director, BNY Mellon (2009-2014). | N/A | N/A | |||||
Matthew J. Hackethal Age: 47 | Anti-Money Laundering Compliance Officer | 2006 – Present | Acting Chief Compliance Officer (2016-2017); Chief Compliance Officer, SAAMCo (2006-Present) and Vice President, SAAMCo (2011 to Present). | N/A | N/A |
† | The business address for each Trustee and Officer is 21650 Oxnard Street, 10th Floor, Woodland Hills, CA 91367. |
(1) | The “Fund Complex” consists of all registered investment company portfolios for which SAAMCo serves as investment adviser or administrator. The “Fund Complex” includes the Trust (58 portfolios), the SunAmerica Equity Funds (2 funds), SunAmerica Income Funds (3 funds), SunAmerica Money Market Funds, Inc. (1 fund), SunAmerica Senior Floating Rate Fund, Inc. (1 fund), SunAmerica Series, Inc. (6 portfolios), Anchor Series Trust (5 portfolios), Seasons Series Trust (19 portfolios), SunAmerica Specialty Series (6 funds), VALIC Company I (34 portfolios), and VALIC Company II (15 funds). |
(2) | Interested Trustee, as defined within the 1940 Act, because he serves as President, CEO and Director of SAAMCo and Director of ACS. |
(3) | Directorships of companies required to report to the Securities and Exchange Commission under the Securities Exchange Act of 1934 (i.e. “Public Company”) registered under the 1940 Act. |
(4) | Trustees serve until their successors are duly elected and qualified. Each officer will hold office for an indefinite term until the date he or she resigns or retires or until his/her successor is duly elected and qualifies. |
Additional information concerning the Trustees and Officers is contained in the Statement of Additional Information and is available without charge by calling(800) 445-7862.
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SUNAMERICA SERIES TRUST
SHAREHOLDERS TAX INFORMATION(unaudited)
Certain tax information regarding the SunAmerica Series Trust is required to be provided to the shareholders based upon each Portfolio’s income and capital gain distributions for the taxable year ended December 31, 2018.
During the year ended December 31, 2018 the Portfolios paid the following dividends per share along with the percentage of ordinary income dividends that qualified for the dividends received deductions for corporations.
Total Dividends | Net Investment Income | Net Short-Term Capital Gains* | Net Long-Term Capital Gains* | Qualifying% for the 70% Dividends Received Deduction | ||||||||||||||||
SA American Funds® Asset Allocation Portfolio Class 1 | $ | 1.24 | $ | 0.44 | $ | — | $ | 0.80 | 64.47 | % | ||||||||||
SA American Funds® Asset Allocation Portfolio Class 3 | 1.17 | 0.37 | — | 0.80 | 64.47 | |||||||||||||||
SA American Funds® Global Growth Portfolio Class 1 | 2.84 | 0.22 | — | 2.62 | 96.41 | |||||||||||||||
SA American Funds® Global Growth Portfolio Class 3 | 2.77 | 0.15 | — | 2.62 | 96.41 | |||||||||||||||
SA American Funds® Growth Portfolio Class 1 | 4.01 | 0.19 | — | 3.82 | 100.00 | |||||||||||||||
SA American Funds® Growth Portfolio Class 3 | 3.94 | 0.12 | — | 3.82 | 100.00 | |||||||||||||||
SA American Funds® Growth-Income Portfolio Class 1 | 3.34 | 0.41 | — | 2.93 | 100.00 | |||||||||||||||
SA American Funds® Growth-Income Portfolio Class 3 | 3.27 | 0.34 | — | 2.93 | 100.00 | |||||||||||||||
SA American Funds VCP Managed Allocation Portfolio Class 1 | 0.99 | 0.28 | — | 0.71 | 100.00 | |||||||||||||||
SA American Funds VCP Managed Allocation Portfolio Class 3 | 0.92 | 0.21 | — | 0.71 | 100.00 |
* | Short-term capital gains are treated as ordinary income for tax purposes |
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COMPARISONS: PORTFOLIOS VS. INDEXES(unaudited)
As required by the Securities and Exchange Commission, the following graphs compare the performance of a $10,000 investment in the presented Feeder Portfolios of SunAmerica Series Trust (the “Trust”) to a $10,000 investment in a comparable securities index benchmark since the portfolio’s inception. Importantly, such indices represent “paper” portfolios and do not reflect the costs and expenses of actual investing. Following each graph is a discussion of portfolio performance and factors affecting performance over the year ended December 31, 2018.
The following graphs and tables show the performance of the Portfolios at the SunAmerica Series Trust Feeder Funds level and include all trust expenses but no insurance company expenses associated with the variable annuity or variable life policy and no insurance company contingent deferred sales charge. All dividends are assumed to be reinvested. No expenses are deducted from the performance of the indexes.
The SA American Funds portfolios (“Feeder Funds”) are a part of the Trust and currently do not buy individual securities directly, but instead invest all of their assets in the underlying funds (“Master Funds”) of the American Funds Insurance Series. Each Feeder Fund has the same investment goal and limitations as the underlying Master Fund. Investing in a Feeder Fund may result in higher fees and expenses than investing directly in a Master Fund as the Feeder Funds will bear their own portfolio expenses as well as their pro rata share of each Feeder Fund’s underlying Master Fund fees and expenses. Please see the product prospectus for more information regarding the master-feeder fund structure.
Market indices referenced are unmanaged. You cannot invest directly in an index.
Note: The performance data quoted represents past performance; past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance data quoted. Please visitwww.aig.com/Annuities for performance data current to the most recent month-end.
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American Funds
SA American Funds Asset Allocation Portfolio — Class 3
SA American Funds® Asset Allocation Portfolio |
| |||||||
Average Annual Total Returns as of 12/31/2018 |
| |||||||
Class 1* | Class 3* | |||||||
1-year | -4.58% | -4.86% | ||||||
5-Year | N/A | 5.02% | ||||||
10-Year | N/A | 9.80% | ||||||
Since Inception | 5.52% | 5.80% |
* | Inception date for Class 1: 09/26/16; Class 3: 09/01/06. |
1 | The S&P 500® Index tracks the performance of 500 stocks representing a sampling of the largest domestic stocks traded publicly in the United States. Because it is market-weighted, the index will reflect the changes in larger companies more heavily than those in smaller companies. |
2 | The Bloomberg Barclays U.S. Aggregate Bond Index is a broad, unmanaged index generally representative of intermediate-term government bonds, investment grade corporate debt securities and mortgage-backed securities. |
3 | The Blended Index is comprised of 60% S&P 500 Index and 40% Bloomberg Barclays U.S. Aggregate Bond Index. |
Note: The performance data quoted represents past performance; past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance data quoted. Please visitaig.com/annuities for performance data current to the most recent month-end.
TheSA American Funds Asset Allocation Portfolio — Class 3 (Feeder Fund), which is a mix of stocks and bonds, returned-4.86% for the twelve months ended December 31, 2018. The S&P 500® Index declined-4.38% over the same period, while the Bloomberg Barclays U.S. Aggregate Bond Index returned 0.01%. The Blended Index (60% S&P 500® Index and 40% Bloomberg Barclays U.S. Aggregate Bond Index) decreased-2.35%. TheAmerican Funds Asset Allocation Fund — Class 1 (Master Fund), which is a mix of stocks and bonds, returned-4.35% for the annual period.
U.S. equities declined for the first time since 2008. Concerns over trade conflicts, slowing global growth and high valuations contributed to persistent volatility. Energy and materials companies were further pressured by falling commodity prices. While growth-oriented stocks performed relatively better than defensive stocks, many companies experienced wild swings throughout the year. In a turbulent year, a fourth quarter rally helped bonds outperform other asset classes.
Investments in the health care sector, one of the Master Fund’s largest sector holdings, contributed to the Master Fund’s returns. Molina Healthcare, UnitedHealth Group and Express Scripts boosted results, as all three companies had double-digit returns, which were on the back of strong third-quarter earnings for UnitedHealth Group and Express Scripts. On the downside, energy stocks detracted from returns as oil prices slipped due to fears of growing U.S. output and weaker global demand. The Master Fund’s fixed income holdings were also a drag on returns due to curve positioning.
Past performance is no guarantee of future results.
Securities listed may or may not be a part of current Portfolio construction.
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American Funds
SA American Funds Global Growth Portfolio — Class 3
SA American Funds® Global Growth Portfolio |
| |||||||
Average Annual Total Returns as of 12/31/2018 |
| |||||||
Class 1* | Class 3* | |||||||
1-Year | -9.12% | -9.28% | ||||||
5-Year | N/A | 5.36% | ||||||
10-Year | N/A | 11.36% | ||||||
Since Inception | 6.15% | 6.78% |
* | Inception date for Class 1: 09/26/16; Class 3: 09/01/06. |
1 | The MSCI ACWI (net) Indexcaptures large and mid cap representation across 23 developed and 23 emerging markets countries. With 2,400 constituents, the index covers approximately 85% of the global investable equity opportunity set. The net index approximates the minimum possible dividend reinvestment and assumes that the dividend is reinvested after the deduction of withholding tax, applying the rate to nonresident individuals who do not benefit from double taxation treaties. |
Note: The performance data quoted represents past performance; past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance data quoted. Please visitaig.com/annuities for performance data current to the most recent month-end.
The SA American Funds Global Growth Portfolio — Class 3 (Feeder Fund) returned-9.28% for the twelve months ended December 31, 2018, compared with a-9.42% decrease for the MSCI ACWI (net) Index. The American Funds Global Growth Fund — Class 1 (Master Fund) returned-8.81% for the annual period.
Global stocks, as measured by the MSCI ACWI (net) Index, ended the year in negative territory hurt by slowing economic growth, increased volatility and higher interest rates in the United States. While ongoing turmoil over the United Kingdom’s departure from the European Union weighed on European stocks, a combination of a stronger U.S. dollar and heightened U.S.-China trade frictions impacted emerging markets equities. Cyclical stocks posted the biggest losses, underscored by double-digit declines in the financials, industrials and materials sectors.
An eclectic mix of financials and consumer discretionary investments boosted the Master Fund’s relative returns. Amazon reported strong third-quarter earnings that beat analyst estimates thanks to its cloud and advertising segments, and was the top contributor to relative returns. Investments in information technology were the biggest drag on relative results led by AAC Technologies Holdings, Tencent and Facebook, losing ground as a broad selloff continued in the formerly high-flying sector. On a geographic basis, stocks of companies domiciled in the U.S., Germany and India were additive to relative results, while stocks of companies based in the U.K., China and Brazil lagged.
Past performance is no guarantee of future results.
Securities listed may or may not be a part of current Portfolio construction.
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American Funds
SA American Funds Growth Portfolio — Class 3
SA American Funds® Growth Portfolio |
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Average Annual Total Returns as of 12/31/2018 |
| |||||||
Class 1* | Class 3* | |||||||
1-year | -0.40% | -0.55% | ||||||
5-Year | N/A | 9.88% | ||||||
10-Year | N/A | 14.38% | ||||||
Since Inception | 12.75% | 7.89% |
* | Inception date for Class 1: 09/26/16; Class 3: 09/01/06. |
1 | The S&P 500® Index tracks the performance of 500 stocks representing a sampling of the largest domestic stocks traded publicly in the United States. Because it is market-weighted, the index will reflect the changes in larger companies more heavily than those in smaller companies. |
Note: The performance data quoted represents past performance; past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance data quoted. Please visitaig.com/annuities for performance data current to the most recent month-end.
TheSA American Funds Growth Portfolio — Class 3 (Feeder Fund) returned-0.55% for the twelve months ended December 31, 2018, compared with a-4.38% decline in the S&P 500® Index. TheAmerican Funds Growth Fund — Class 1 (Master Fund) returned-0.01% for the annual period.
U.S. equities declined for the first calendar year since 2008. Concerns over trade conflicts, slowing global growth and high valuations contributed to persistent volatility. Energy and materials companies were further pressured by falling commodity prices. While growth-oriented stocks performed relatively better than defensive stocks, many companies experienced wild swings throughout the year.
Investments in the information technology and consumer discretionary sectors boosted the Master Fund’s returns. Among the Master Fund’s top contributors to returns (posting double-digit gains) was consumer discretionary company Amazon and information technology company ServiceNow. While Amazon reported strong third-quarter earnings that beat analyst estimates thanks to its cloud and advertising segments, ServiceNow benefited from increased demand for cloud services. Exposure to the energy sector detracted from results as oil prices plummeted on concerns of excess supply.
Past performance is no guarantee of future results.
Securities listed may or may not be a part of current Portfolio construction.
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American Funds
SA American Funds Growth-Income Portfolio — Class 3
SA American Funds® Growth-Income Portfolio |
| |||||||
Average Annual Total Returns as of 12/31/2018 |
| |||||||
Class 1* | Class 3* | |||||||
1-Year | -1.86% | -2.05% | ||||||
5-Year | N/A | 8.20% | ||||||
10-Year | N/A | 12.64% | ||||||
Since Inception | 10.11% | 6.98% |
* | Inception date for Class 1: 09/26/16; Class 3: 09/01/06. |
1 | The S&P 500® Index tracks the performance of 500 stocks representing a sampling of the largest domestic stocks traded publicly in the United States. Because it is market-weighted, the index will reflect the changes in larger companies more heavily than those in smaller companies. |
Note: The performance data quoted represents past performance; past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance data quoted. Please visitaig.com/annuities for performance data current to the most recent month-end.
TheSA American Funds Growth-Income Portfolio — Class 3 (Feeder Fund) returned-2.05% for the 12 months ended December 31, 2018, while the S&P 500® Index declined-4.38% over the same period. TheAmerican Funds Growth-Income Fund — Class 1 (Master Fund) returned-1.55% for the annual period.
U.S. equities declined for the first calendar year since 2008. Concerns over trade conflicts, slowing global growth and high valuations contributed to persistent volatility. Energy and materials companies were further pressured by falling commodity prices. While growth-oriented stocks performed relatively better than defensive stocks, many companies experienced wild swings throughout the year.
The Master Fund investments in the consumer discretionary sector contributed the most to returns. Among consumer discretionary companies, Amazon reported strong third-quarter earnings that beat analyst estimates thanks to its cloud and advertising segments. On the downside, investments in the energy sector, such as EOG Resources and Schlumberger, detracted from the Master Fund’s results as oil prices plummeted on concerns of a glut.
Past performance is no guarantee of future results.
Securities listed may or may not be a part of current Portfolio construction.
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SA American Funds VCP Managed Allocation Portfolio@ — Class 3
SA American Funds VCP Managed Allocation Portfolio |
| |||||||
Average Annual Total Returns as of 12/31/2018 |
| |||||||
Class 1* | Class 3* | |||||||
1-year | -4.89% | -5.12% | ||||||
5-Year | N/A | 3.32% | ||||||
Since Inception | 4.71% | 5.89% |
* | Inception date for Class 1: 09/26/16; Class 3: 10/15/12. |
1 | The S&P 500® Index tracks the performance of 500 stocks representing a sampling of the largest domestic stocks traded publicly in the United States. Because it is market-weighted, the index will reflect the changes in larger companies more heavily than those in smaller companies. |
2 | The Bloomberg Barclays U.S. Aggregate Bond Index is a broad, unmanaged index generally representative of intermediate-term government bonds, investment grade corporate debt securities and mortgage-backed securities. |
3 | The Blended Index is comprised of 60% S&P 500® Index and 40% Bloomberg Barclays U.S. Aggregate Bond Index. |
4 | Effective December 17, 2018, the Portfolio changed its index to S&P 500® Managed Risk Index - Moderate. The S&P 500® Managed Risk Index — Moderate is designed to simulate a dynamic protective portfolio that allocates between the underlying equity index and cash, based on realized volatilities of the underlying equity and bond indices, while maintaining a fixed allocation to the underlying bond index. The Portfolio changed its Index because the new benchmark is more consistent with the subadvisor’s investment strategy and style. |
Note: The performance data quoted represents past performance; past performance does not guarantee future results; the investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance data quoted. Please visitaig.com/annuities for performance data current to the most recent month-end.
TheSA American Funds VCP Managed Allocation Portfolio — Class 3 (Feeder Fund) (formerly, SA American Funds VCP Managed Asset Allocation Portfolio — Class 3) returned-5.12% for the twelve months ended December 31, 2018.
For the period starting January 1, 2018 to December 17, 2018 theSA American Funds VCP Managed Allocation Portfolio — Class 3 (Feeder Fund) (formerly, SA American Funds VCP Managed Asset Allocation Portfolio — Class 3) returned -4.78%. The S&P 500® Index declined-2.96% over the same period, while the Bloomberg Barclays U.S. Aggregate Bond Index declined -0.72%. A blend of the two indexes, the 60%/40% S&P® 500 Index/Bloomberg Barclays U.S. Aggregate Bond Index decreased -1.82%. TheAmerican Funds Managed Risk Asset Allocation Fund — Class P1 (Master Fund) declined -4.32% for the period.
The SA American Funds VCP Managed Asset Allocation Portfolio is a Feeder Fund investing in shares of American Funds Insurance Series Managed Risk Asset Allocation Fund (Master Fund). The Master Fund pursues its objective by investing in shares of American Funds Insurance Series Asset Allocation Fund while seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the Master Fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the Fund’s results can be expected to lag those of the Master Fund’s underlying fund.
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The underlying American Funds Insurance Series Asset Allocation Fund’s investments in the energy sector hindered results the most, while cash holdings and underlying investments in the industrials sector contributed the most to relative returns.
For the period starting December 18, 2018 to December 31, 2018 theSA American Funds VCP Managed Allocation Portfolio — Class 3 (Feeder Fund) (formerly, SA American Funds VCP Managed Asset Allocation Portfolio — Class 3) returned -0.35%. The S&P 500® Managed Risk Index — Moderate Index declined -0.66% over the same period. TheAmerican Funds Managed Risk Growth-Income Fund — Class P1 (Master Fund) declined -0.34% for the period.
The SA American Funds VCP Managed Allocation Portfolio is a Feeder Fund investing in shares of American Funds Insurance Series Managed Risk Growth-Income Fund (Master Fund). The Master Fund pursues its objective by investing in shares of American Funds Insurance Series Growth-Income Fund and American Funds Insurance Series Bond Fund while seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the Master Fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the Fund’s results can be expected to lag those of the Master Fund’s underlying fund.
The underlying American Funds Insurance Series Growth-Income Fund’s underlying investments in the information technology sector contributed the most to relative returns, while investments in the industrials sector hindered results the most. The underlying American Funds Insurance Series Bond Fund’s fixed income investments in the credit sector hindered results the most and more than offset any benefit from being long duration as rates fell.
@ | See Note 1 |
Past performance is no guarantee of future results.
Securities listed may or may not be a part of current Portfolio construction.
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SUNAMERICA SERIES TRUST
VOTING PROXIES ON TRUST PORTFOLIO SECURITIES
A description of the policies and procedures that the Trust uses to determine how to vote proxies related to securities held in the Trust‘s Portfolios which is available in the Trust‘s Statement of Additional Information, may be obtained without charge upon request, by calling(800) 445-SUN2. This information is also available from the EDGAR database on the U.S. Securities and Exchange Commission‘s website at http://www.sec.gov.
PROXY VOTING RECORD ON TRUST PORTFOLIO SECURITIES
Information regarding how the SunAmerica Series Trust Portfolios voted proxies relating to securities held in the Trust‘s Portfolios during the most recent twelve month period ended June 30 is available, once filed with the U.S. Securities and Exchange Commission, without charge, upon request, by calling(800) 445-SUN2 or on the U.S. Securities and Exchange Commission‘s website at http://www.sec.gov.
DISCLOSURE OF QUARTERLY PORTFOLIO HOLDINGS
The Trust is required to file its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission for its first and third fiscal quarters on FormN-Q. The Trust‘s FormsN-Q are available on the U.S. Securities and Exchange Commission‘s website at http://www.sec.gov. You can also review and obtain copies of the FormsN-Q at the U.S. Securities and Exchange Commission‘s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling1-800-SEC-0330).
This report is submitted solely for the general information of shareholders of the Trust. Distribution of this report to persons other than shareholders of the Trust is authorized only in connection with a currently effective prospectus, setting forth details of the Trust, which must precede or accompany this report.
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Annuity Service Center P.O. Box 15570 Amarillo, TX 79105-5570
CHANGE SERVICE REQUESTED |
THISREPORTISNOTAUTHORIZEDFORDISTRIBUTIONTOPROSPECTIVEPURCHASERSUNLESSACCOMPANIEDORPRECEDEDBYACURRENTPROSPECTUS.
R4397AR.12 (2/19)
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American Funds Insurance Series® Annual report for the year ended December 31, 2018
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American Funds Insurance Series, by Capital Group, is the underlying investment vehicle for many variable annuities and insurance products. For more than 85 years, Capital Group has invested with a long-term focus based on thorough research and attention to risk.
Investing for short periods makes losses more likely. For current information andmonth-end results, visit americanfunds.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries. Investing in small-capitalization stocks can involve greater risk than is customarily associated with investing in stocks of larger, more established companies. The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. High-yield bonds are subject to greater fluctuations in value and risk of loss of income and principal than investment-grade bonds. Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor’s, Moody’s and/or Fitch as an indication of an issuer’s creditworthiness. Futures may not provide an effective hedge of the underlying securities because changes in the prices of futures may not track those of the securities they are intended to hedge. In addition, the managed risk strategy may not effectively protect the funds from market declines and will limit the funds’ participation in market gains. The use of the managed risk strategy could cause the funds’ returns to lag those of the applicable underlying funds in certain rising market conditions. Refer to the funds’ prospectuses and the Risk Factors section of this report for more information on these and other risks associated with investing in the funds.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
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Global equity markets, pressured by rising interest rates and a slowing global economy, fell on an annual basis for the first time since 2015, as measured by the
9.42% decline in the MSCI ACWI (All Country World Index).1,2 Tighter monetary policy, potentially peaking earnings and a brewing trade war involving the U.S., China and Europe reverberated around the world, halting one of the longest-running bull markets in history.
Despite strong corporate earnings and economic growth boosted by tax cuts early in the year, a decline of 4.50% was recorded by the MSCI USA Index.1,3 The nation’s GDP is estimated to have grown at an annualized 3.4% in the third quarter with the U.S. unemployment rate remaining at 3.7% in November, the lowest level in nearly 50 years. However, a series of trade-related issues between the U.S. and China that elevated geopolitical tensions, combined with political turmoil and high valuation in the U.S., contributed to a decline in the fourth quarter that wiped out the gains of the previous three quarters. Meanwhile, the Federal Reserve raised the benchmark federal funds rate to a range of 2.25% to 2.50%. The Fed continued on its path to reduce the size of its balance sheet and raised rates by a quarter percentage point four times over the past 12 months. This added to investor unease by the time they got to the fourth increase.
In Europe, worries over trade, delays in reaching a separation agreement between the U.K. and the European
Union, and a general retreat in favor of U.S. equities hurt markets. The MSCI Europe Index1 fell 14.86% with Germany(-22.17%), Italy(-17.75%), France(-12.76%) and the U.K.(-14.15%) all registering double-digit losses. In an unexpected shift from the prior year, the European economy lurched to a near halt. Deteriorating trade relations also weighed on European stocks, given the region’s dependence on international trade. Adding to those concerns, the European Central Bank ended its bond-buying stimulus program in December, removing a degree of support for the economy. As business sentiment dropped, eurozone economic growth slowed to an annualized 0.6% in the third quarter, down from 2.3% at the end of 2017. Elsewhere among developed markets, Japanese equities declined 12.88% as the economy stumbled, contracting for the first time since 2015. Private consumption faltered and output declined, owing partly to natural disasters that hurt exports and tourism.
Emerging markets stocks also fell (the MSCI Emerging Markets Investable Market Index1,4 was down 15.05%), dragged down by China’s weakening economy, heightened U.S.-China trade frictions and a rally in the U.S. dollar. In China, selling intensified as the economy decelerated and its trade clash with the U.S. escalated. Chinese stocks(-18.74%) posted their worst annual return since 2011, as shares of their leading technology-related companies fell from lofty levels. Individual market economies
All market indexes referenced in this report are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. Country returns are based on MSCI indexes, which reflect reinvestment of distributions and dividends net of withholding taxes, except for the MSCI USA Index, which reflects dividends gross of withholding taxes.
1 | Source: MSCI. |
2 | The MSCI ACWI is a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, consisting of more than 40 developed and emerging market country indexes. Results reflect dividends net of withholding taxes. |
3 | The MSCI USA Index is a free float-adjusted, market capitalization-weighted index that is designed to measure the U.S. portion of the world market. Results reflect dividends gross of withholding taxes. |
4 | MSCI Emerging Markets Investable Market Index (IMI) is a free float-adjusted market capitalization-weighted index that is designed to measure results of the large-,mid-, and small-capitalization segments of more than 20 emerging equity markets. Results reflect dividends net of withholding taxes. |
American Funds Insurance Series 1
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— Brazil and Turkey most notably — were impacted by idiosyncratic political and economic developments.
In bond markets, U.S. corporate investment-grade securities (rated BBB/ Baa and above) declined 2.51% (as measured by the Bloomberg Barclays U.S. Corporate Investment Grade Index5,6), while U.S. high-yield corporate debt slipped 2.08% (as measured by the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index5,7). More broadly, the Bloomberg Barclays Global Aggregate Index5,8 was down 1.20%, while the Bloomberg Barclays U.S. Aggregate Index5,9 was virtually unchanged at 0.01%. The10-year Treasury yield, which stood at 2.40% on December 31, 2017, rose marginally to finish at 2.69%. The J.P. Morgan Emerging Markets Bond Index – Global10 lost 4.61%.
In currency markets, the U.S. dollar rose against most currencies. The euro(-4.80%), British pound(-5.85%) and Canadian dollar(-8.26%) all experienced headwinds from a stronger U.S. dollar. Although most currencies slipped, the Japanese yen was a rare gainer, as it rose
2.68% against the dollar.
Looking ahead
All over the globe, economies appear to be slowing down and equity markets are exhibiting volatility. The current environment is rife with uncertainty, from
trade-related disputes to geopolitical tensions to elevated debt levels. We will be following and analyzing each of these issues. But now that these uncertainties have been priced into markets, we can utilize these new lower valuations as we search for securities that are attractive on a longer-term basis. We’re careful by nature, and we know that after a period when everyone is very concerned, it is usually a good time to pick one’s head up and look around for bargains.
Our time-tested approach — based on extensive research, a long-term outlook and close attention to valuation — has served investors well over time. As always, we thank you for your continued support of our efforts and we look forward to reporting to you again in six months.
Sincerely,
Donald D. O’Neal
Co-President
Alan N. Berro
Co-President
February 12, 2019
5 | Source: Bloomberg Index Services Ltd. |
6 | The Bloomberg Barclays U.S. Corporate Investment Grade Index represents the universe of investment grade, publicly issued U.S. corporate and specified foreign debentures and secured notes that meet the specified maturity, liquidity and quality requirements. |
7 | The Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index covers the universe of fixed-rate,non-investment-grade debt. The index limits the maximum exposure of any one issuer to 2%. |
8 | The Bloomberg Barclays Global Aggregate Index represents the global investment-grade fixed income markets. |
9 | The Bloomberg Barclays U.S. Aggregate Index represents the U.S. investment-grade fixed-rate bond market. |
10 | The J.P. Morgan Emerging Markets Bond Index – Global tracks total returns for U.S. dollar-denominated debt instruments issued by emerging markets sovereign and quasi-sovereign entities, including Brady bonds, loans and Eurobonds. |
2 American Funds Insurance Series
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Summary investment portfolios
Summary investment portfolios are designed to streamline this report and help investors better focus on the funds’ principal holdings. Ultra-Short Bond Fund, Managed Risk Growth Fund, Managed Risk International Fund, Managed Risk Blue Chip Income and Growth Fund, Managed Risk Growth-Income Fund and Managed Risk Asset Allocation Fund show a complete listing of portfolio holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings for each fund in the series.
Unless otherwise indicated, American Funds Insurance Series investment results are for Class 1 shares (Class P1 shares for managed risk funds). Class 1A shares began operations on January 6, 2017. Class 2 shares began operations on April 30, 1997. Class 3 shares began operations on January 16, 2004. Class 4 shares began operations on December 14, 2012. Results encompassing periods prior to those dates assume a hypothetical investment in Class 1 shares and include the deduction of additional annual expenses (0.25% for Class 1A shares, 0.25% for Class 2 shares, 0.18% for Class 3 shares and 0.50% for Class 4 shares).
The variable annuities and life insurance contracts that use the series funds contain certain fees and expenses not reflected in this report. Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The series investment adviser waived a portion of its management fees for all existing funds from September 1, 2004, through December 31, 2008, for Global Growth and Income Fund from May 1, 2006, through December 31, 2008, for International Growth and Income Fund from November 18, 2008, through December 31, 2008, for U.S.Government/AAA-Rated Securities Fund from July 1, 2010, through December 31, 2010, and for Blue Chip Income and Growth Fund from February 1, 2014, through January 31, 2015.
For the managed risk funds, the investment adviser is currently waiving a portion of its management fee equal to 0.05% of the funds’ net assets. In addition, the investment adviser is currently reimbursing a portion of other expenses for Managed Risk International Fund and Managed Risk Growth-Income Fund. The waivers and reimbursements will be in effect through at least May 1, 2020, unless modified or terminated by the series board. After that time, the investment adviser may elect to extend, modify or terminate the reimbursements. The waivers may only be modified or terminated with the approval of the series board. Applicable fund results shown reflect the waivers and reimbursements, without which results would have been lower. See the Financial Highlights tables in this report for details.
The Managed Risk Growth Fund pursues its objective by investing in shares of American Funds Insurance Series — Growth FundSM and American Funds Insurance Series — Bond FundSM. The Managed Risk International Fund pursues its objective by investing in shares of American Funds Insurance Series — International FundSM and American Funds Insurance Series — Bond FundSM. The Managed Risk Blue Chip Income and Growth Fund pursues its objective by investing in shares of American Funds Insurance Series — Blue Chip Income and Growth FundSM and American Funds Insurance Series — U.S.Government/AAA-Rated Securities FundSM. The Managed Risk Growth-Income Fund pursues its objective by investing in shares of American Funds Insurance Series — Growth-Income FundSM and American Funds Insurance Series — Bond FundSM. The Managed Risk Asset Allocation Fund pursues its objective by investing in shares of American Funds Insurance Series — Asset Allocation FundSM. The funds seek to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the funds’ managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the funds’ results can be expected to lag those of the underlying fund.
Funds are listed in the report as follows: equity, balanced, fixed income and managed risk.
American Funds Insurance Series 3
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Global Growth Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information andmonth-end results, visit americanfunds.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
Global Growth Fund slipped 8.81% for the 12 months ended December 31, 2018, compared with a 9.42% decrease for the MSCI ACWI (All Country World Index),1 a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, consisting of more than 40 developed and emerging market country indexes.
Global stocks, as measured by the MSCI ACWI, ended the year in negative territory hurt by slowing economic growth, increased volatility and higher interest rates in the U.S. While ongoing turmoil over the U.K.’s departure from the European Union weighed on European stocks, a combination of a stronger U.S. dollar and heightened U.S.-China trade frictions impacted emerging markets equities. Cyclical stocks posted the biggest losses, underscored by double-digit declines in the financials, industrials and materials sectors.
An eclectic mix of financials and consumer discretionary investments boosted the fund’s relative returns. Amazon reported strong third-quarter earnings that beat analyst estimates thanks to its cloud and advertising segments, and was the top contributor to the fund’s relative returns. Investments in information technology were the biggest drag on relative results led by AAC Technologies Holdings, Tencent and Facebook, losing ground as a broad selloff continued in the formerly high-flying sector.
On a geographic basis, stocks of companies domiciled in the U.S., Germany and India were additive to relative results, while stocks of companies based in the U.K., China and Brazil lagged.
Despite market volatility, the fund’s portfolio managers are optimistic they will continue to find good companies globally that offer high-quality products, and whose values are not yet fully reflected in their share prices.
Country diversification | Percent of net assets |
The Americas | ||||
United States | 43.6 | % | ||
Other | 1.2 | |||
|
| |||
44.8 | ||||
|
| |||
Europe | ||||
United Kingdom | 6.8 | |||
Netherlands | 5.0 | |||
France | 4.4 | |||
Switzerland | 3.8 | |||
Germany | 1.8 | |||
Russian Federation | 1.3 | |||
Sweden | 1.1 | |||
Other | 2.8 | |||
|
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27.0 | ||||
|
|
Asia/Pacific Basin | ||||
China | 4.7 | % | ||
Japan | 4.4 | |||
Taiwan | 4.3 | |||
Hong Kong | 3.2 | |||
India | 1.9 | |||
Other | 2.4 | |||
|
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20.9 | ||||
|
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Other regions | ||||
South Africa | 1.7 | % | ||
|
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Short-term securities & other assets less liabilities | 5.6 | |||
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Total | 100.0 | % | ||
|
|
Largest equity securities | Percent of net assets |
Amazon | 6.24 | %�� | ||
TSMC | 3.82 | |||
Alphabet | 3.54 | |||
ASML | 3.32 | |||
Microsoft | 2.92 |
Visa | 2.74 | % | ||
Alibaba Group | 2.32 | |||
AIA Group | 2.26 | |||
Broadcom | 2.25 | |||
Airbus Group | 1.91 |
4 American Funds Insurance Series
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Global Growth Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment For periods ended December 31, 2018
1 year | 5 years | 10 years | Lifetime (since April 30, 1997) | Expense ratio | ||||||||||||||||
Class 1 | -8.81 | % | 5.92 | % | 11.96 | % | 9.16 | % | .55 | % | ||||||||||
Class 1A | -9.02 | 5.66 | 11.69 | 8.89 | .80 | |||||||||||||||
Class 2 | -9.04 | 5.65 | 11.69 | 8.89 | .80 | |||||||||||||||
Class 4 | -9.24 | 5.39 | 11.45 | 8.64 | 1.05 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: MSCI. The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
Where the fund’s assets were invested as of December 31, 2018 | Percent of net assets |
American Funds Insurance Series 5
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Global Small Capitalization Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information andmonth-end results, visit americanfunds.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
Global Small Capitalization Fund declined 10.31% for the 12 months ended December 31, 2018. Its benchmark, the MSCI All Country World Small Cap Index,1 a free float-adjusted market capitalization-weighted index that is designed to measure equity market results of smaller capitalization companies in both developed and emerging markets, fell 14.39%.
Global stocks, as measured by the MSCI ACWI, ended the year in negative territory hurt by slowing economic growth, increased volatility and higher interest rates in the U.S. While ongoing turmoil over the U.K.’s departure from the European Union weighed on European stocks, a combination of a stronger U.S. dollar and heightened U.S.-China trade frictions impacted emerging markets equities. Cyclical stocks posted the biggest losses, underscored by double-digit declines in the financials, industrials and materials sectors.
Fund holdings in the health care sector, which includes investments across multiplesub-segments from biotechnology and pharmaceuticals to life sciences tools and services, aided returns. Evolent Health contributed to the fund’s results as the benefits of value-based care gained support. However, the fund’s investments in consumer discretionary stocks, such as Tele Columbus and Melco International Development, hurt results amid market volatility and weak economic data from the Eurozone and China.
While investments in U.S. companies were additive to relative returns, investments in companies domiciled in Hong Kong detracted.
The fund’s portfolio managers continue to seek investment opportunities in undervalued companies that have the potential to revolutionize industries and benefit shareholders. Innovation at smaller health care companies, for example, helps facilitate breakthroughs and the biotechnology industry is an area of interest due to continuous improvements in drug research methods and approval processes. The fund also currently invests in nearly 300 companies diversified across geographies. Political uncertainty in both the U.S. and U.K. leads to some concerns about business confidence in the short term. As always, we maintain our commitment to investing for the long term and believe our rigorousbottom-up research into each potential equity investment can help achieve this goal.
Country diversification | Percent of net assets |
The Americas | ||||
United States | 42.4 | % | ||
Brazil | 1.5 | |||
Canada | 1.2 | |||
Other | .7 | |||
|
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45.8 | ||||
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Asia/Pacific Basin | ||||
India | 5.8 | |||
Japan | 5.5 | |||
China | 4.7 | |||
Hong Kong | 2.6 | |||
Philippines | 1.8 | |||
South Korea | 1.2 | |||
Thailand | 1.0 | |||
Taiwan | 1.0 | |||
Other | 1.1 | |||
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24.7 | ||||
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Europe | ||||
United Kingdom | 7.3 | |||
Germany | 2.2 | |||
Sweden | 2.0 | |||
Switzerland | 1.1 | % | ||
Italy | 1.1 | |||
Other | 4.9 | |||
|
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18.6 | ||||
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Short-term securities & other assets less liabilities | 10.9 | |||
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Total | 100.0 | % | ||
|
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Largest equity securities | Percent of net assets |
GW Pharmaceuticals | 2.19 | % | ||
Insulet | 1.87 | |||
Kotak Mahindra Bank | 1.54 | |||
Paycom | 1.44 | |||
Allakos | 1.27 |
Molina Healthcare | 1.21 | % | ||
Five Below | 1.18 | |||
International Container Terminal Services | 1.17 | |||
iRhythm | 1.17 | |||
Integra LifeSciences Holdings | 1.14 |
6 American Funds Insurance Series
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Global Small Capitalization Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment For periods ended December 31, 2018
1 year | 5 years | 10 years | Lifetime (since April 30, 1998) | Expense ratio | ||||||||||||||||
Class 1 | -10.31 | % | 3.57 | % | 11.32 | % | 8.73 | % | .74 | % | ||||||||||
Class 1A | -10.56 | 3.32 | 11.04 | 8.46 | .99 | |||||||||||||||
Class 2 | -10.55 | 3.32 | 11.04 | 8.46 | .99 | |||||||||||||||
Class 4 | -10.80 | 3.06 | 10.77 | 8.19 | 1.24 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: MSCI. The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
Where the fund’s assets were invested as of December 31, 2018 | Percent of net assets |
American Funds Insurance Series 7
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Growth Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information andmonth-end results, visit americanfunds.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
Growth Fund marginally lost 0.01% for the 12 months ended December 31, 2018, compared with a 4.38% decline in its benchmark index, Standard & Poor’s 500 Composite Index,1 a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.
U.S. equities declined for the first calendar year since 2008. Concerns over trade conflicts, slowing global growth and high valuations contributed to persistent volatility. Energy and materials companies were further pressured by falling commodity prices. While growth-oriented stocks performed relatively better than defensive stocks, many companies experienced wild swings throughout the year.
Investments in the information technology and consumer discretionary sectors boosted the fund’s returns. Among the fund’s top contributors to returns (posting double-digit gains) was consumer discretionary company Amazon and information technology company ServiceNow. While Amazon reported strong third-quarter earnings that beat analyst estimates thanks to its cloud and advertising segments, ServiceNow benefited from increased demand for cloud services. Exposure to the energy sector detracted from fund results as oil prices plummeted on concerns of excess supply.
Although U.S. economic growth remained strong with GDP growing at an annualized pace of 3.4% in the third quarter, the fund’s portfolio managers are keeping a close watch on the impact of interest rate hikes on economic activity and the outlook for corporate profit growth in the U.S. Portfolio managers continue to favor well-positioned, growth-oriented companies that are capable of generating free cash flow in myriad economic environments and remain optimistic that our global research will help us identify attractive long-term investment opportunities.
Largest equity securities | Percent of net assets |
Microsoft | 4.53 | % | ||
4.20 | ||||
Broadcom | 3.70 | |||
UnitedHealth Group | 3.59 | |||
Amazon | 3.40 |
Alphabet | 3.05 | % | ||
Netflix | 2.74 | |||
Tesla | 2.57 | |||
Regeneron Pharmaceuticals | 2.14 | |||
Intuitive Surgical | 1.92 |
8 American Funds Insurance Series
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Growth Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment For periods ended December 31, 2018
1 year | 5 years | 10 years | Lifetime (since February 8, 1984) | Expense ratio | ||||||||||||||||
Class 1 | –0.01 | % | 10.47 | % | 15.00 | % | 12.44 | % | .34 | % | ||||||||||
Class 1A | –0.26 | 10.20 | 14.72 | 12.16 | .59 | |||||||||||||||
Class 2 | –0.25 | 10.19 | 14.72 | 12.16 | .59 | |||||||||||||||
Class 3 | –0.18 | 10.26 | 14.80 | 12.24 | .52 | |||||||||||||||
Class 4 | –0.50 | 9.92 | 14.45 | 11.89 | .84 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: S&P Dow Jones Indices LLC. |
Where the fund’s assets were invested as of December 31, 2018 | Percent of net assets |
American Funds Insurance Series 9
Table of Contents
International Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information andmonth-end results, visit americanfunds.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
International Fund declined 12.94% for the 12 months ended December 31, 2018. That compares to the 14.20% decline of its benchmark, the MSCI ACWI (All Country World Index) ex USA,1 a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets (consisting of more than 40 developed and emerging market country indexes excluding the U.S.).
Global stocks, as measured by the MSCI ACWI, ended the year in negative territory hurt by slowing economic growth, increased volatility and higher interest rates in the U.S. While ongoing turmoil over the U.K.’s departure from the European Union weighed on European stocks, a combination of a stronger U.S. dollar and heightened U.S.-China trade frictions impacted emerging markets equities. Cyclical stocks posted the biggest losses, underscored by double-digit declines in the financials, industrials and materials sectors.
In the fund, stocks in the financials sector generated the highest relative returns. Within the sector, HDFC Bank reported profit growth in the second quarter and AIA Group reported strong earnings for the first half of the year. On the flip side, investments in consumer staples companies were a drag on results. Within the sector, British American Tobacco hindered results amid pressure from competition and regulation.
The fund’s portfolio managers continue to monitor key indicators in advanced countries — from wage growth and inflation dynamics to the impact of technology and demographics on productivity — as they seek the flexibility to pivot to areas of opportunity. Our focus on a company’s fundamental growth drivers and intrinsic worth is critical to helping us identify companies that we believe represent the best value over the long term.
Country diversification | Percent of net assets |
Asia/Pacific Basin | ||||
Japan | 13.1 | % | ||
China | 9.6 | |||
Hong Kong | 7.3 | |||
India | 7.0 | |||
South Korea | 3.7 | |||
Philippines | 1.1 | |||
Australia | 1.0 | |||
Other | 1.1 | |||
|
| |||
43.9 | ||||
|
| |||
Europe | ||||
United Kingdom | 11.5 | % | ||
France | 10.2 | |||
Switzerland | 5.1 | |||
Germany | 2.8 | |||
Spain | 2.4 | |||
Netherlands | 1.4 | |||
Ireland | 1.1 | |||
Other | 1.8 | |||
|
| |||
36.3 | ||||
|
|
The Americas | ||||
Canada | 2.9 | |||
Brazil | 2.0 | |||
United States | 1.7 | |||
Mexico | .4 | |||
|
| |||
7.0 | ||||
|
| |||
Other regions | ||||
Israel | 1.2 | % | ||
Other | .6 | |||
|
| |||
1.8 | ||||
|
| |||
Short-term securities & other assets less liabilities | 11.0 | |||
|
| |||
Total | 100.0 | % | ||
|
|
Largest equity securities | Percent of net assets |
AIA Group | 3.78 | % | ||
HDFC Bank | 3.21 | |||
Airbus | 3.12 | |||
Novartis | 3.11 | |||
Tencent | 2.22 |
Shire | 2.17 | % | ||
Samsung Electronics | 1.90 | |||
Pernod Ricard | 1.69 | |||
Alibaba Group | 1.68 | |||
Royal Dutch Shell | 1.53 |
10 American Funds Insurance Series
Table of Contents
International Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment For periods ended December 31, 2018
1 year | 5 years | 10 years | Lifetime (since May 1, 1990) | Expense ratio | ||||||||||||||||
Class 1 | -12.94 | % | 2.26 | % | 7.93 | % | 7.72 | % | .53 | % | ||||||||||
Class 1A | -13.11 | 2.02 | 7.67 | 7.45 | .78 | |||||||||||||||
Class 2 | -13.13 | 2.01 | 7.65 | 7.45 | .78 | |||||||||||||||
Class 3 | -13.10 | 2.07 | 7.73 | 7.53 | .71 | |||||||||||||||
Class 4 | -13.41 | 1.75 | 7.41 | 7.19 | 1.03 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: MSCI. The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
Where the fund’s assets were invested as of December 31, 2018 | Percent of net assets |
American Funds Insurance Series 11
Table of Contents
New World Fund®
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information andmonth-end results, visit americanfunds.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
New World Fund was down 13.83% for the 12 months ended December 31, 2018. Its benchmark index, the MSCI ACWI (All Country World Index),1 a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets (consisting of more than 40 developed and emerging market country indexes), declined 9.42%. The MSCI Emerging Markets Index,1 a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global emerging markets (consisting of more than 20 emerging market country indexes), decreased by 14.58%.
Global stocks, as measured by the MSCI ACWI, ended the year in negative territory hurt by slowing economic growth, increased volatility and higher interest rates in the U.S. While ongoing turmoil over the U.K.’s departure from the European Union weighed on European stocks, a combination of a stronger U.S. dollar and heightened U.S.-China trade frictions impacted emerging markets equities. In emerging markets, Russia was impacted by U.S. sanctions, while Argentina suffered from a currency crisis as the peso collapsed more than 45% against the greenback.
Investments in the energy sector were beneficial to the fund. Reliance Industries rose led by strong earnings growth from its petrochemical business. The company also benefited from continued expansion and success of its telecommunications network Jio. Among detractors, investments in the financials sector hurt results with Grupo Financiero Galicia hindering returns, despite reporting a rise in second-quarter profits from the same period in 2017. Investments in tobacco companies such as British American Tobacco were also a drag on results due to concerns about nicotine regulation in the U.S., as well as competition from vaping andheat-not-burn products.
At this point in the market cycle and amid increased volatility, selectivity and close attention to individual holdings are particularly important. The fund’s portfolio managers continue to pursue abottom-up approach to investing and continue to search for undervalued companies with solid foundations around the world.
Country diversification | Percent of net assets |
Asia/Pacific Basin | ||||
India | 13.0 | % | ||
China | 10.3 | |||
Japan | 4.8 | |||
Taiwan | 3.1 | |||
Hong Kong | 2.9 | |||
Other | 3.3 | |||
|
| |||
37.4 | ||||
|
| |||
The Americas | ||||
United States | 15.5 | |||
Brazil | 9.1 | |||
Canada | 1.3 | % | ||
Other | 2.6 | |||
|
| |||
28.5 | ||||
|
|
Europe | ||||
United Kingdom | 4.9 | |||
France | 2.3 | |||
Russian Federation | 2.1 | |||
Switzerland | 2.1 | |||
Germany | 1.3 | |||
Other | 2.3 | |||
|
| |||
15.0 | ||||
|
| |||
Other regions | ||||
Other | 2.0 | % | ||
|
| |||
Short-term securities & other assets less liabilities | 17.1 | |||
|
| |||
Total | 100.0 | % | ||
|
|
Largest equity securities | Percent of net assets |
Reliance Industries | 6.16 | % | ||
TSMC | 2.89 | |||
HDFC Bank | 2.71 | |||
Alphabet | 2.21 | |||
AIA Group | 1.79 |
Alibaba Group | 1.76 | % | ||
PagSeguro Digital | 1.75 | |||
Vale | 1.74 | |||
British American Tobacco | 1.62 | |||
B3 | 1.48 |
12 American Funds Insurance Series
Table of Contents
New World Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment For periods ended December 31, 2018
1 year | 5 years | 10 years | Lifetime (since June 17, 1999) | Expense ratio | ||||||||||||||||
Class 1 | -13.83 | % | 1.14 | % | 7.87 | % | 7.51 | % | .76 | % | ||||||||||
Class 1A | -14.02 | 0.89 | 7.61 | 7.24 | 1.01 | |||||||||||||||
Class 2 | -14.04 | 0.89 | 7.61 | 7.24 | 1.01 | |||||||||||||||
Class 4 | -14.25 | 0.63 | 7.35 | 6.98 | 1.26 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1Source: | MSCI. Results for MSCI indexes reflect dividends net of withholding taxes and reinvestment of distributions. |
Where the fund’s assets were invested as of December 31, 2018 | Percent of net assets |
American Funds Insurance Series 13
Table of Contents
Blue Chip Income and Growth Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information andmonth-end results, visit americanfunds.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
Blue Chip Income and Growth Fund lost 8.45% for the 12 months ended December 31, 2018, trailing its benchmark index, Standard & Poor’s 500 Composite Index,1 a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, which declined 4.38%.
U.S. equities declined for the first calendar year since 2008. Concerns over trade conflicts, slowing global growth and high valuations contributed to persistent volatility. Energy and materials companies were further pressured by falling commodity prices. While growth-oriented stocks performed relatively better than defensive stocks, many companies experienced wild swings throughout the year.
Over the fiscal year, stock selection in the materials sector helped marginally boost relative returns, while positions in health care and industrials lagged, as did holdings among the less-cyclical consumer staples sector. In particular, tobacco companies were hurt by concerns about nicotine regulation in the U.S., as well as competition from vaping andheat-not-burn products. The fund was also disadvantaged by its lower holding of select, U.S. growth stocks.
The fund’s portfolio managers are keeping a close watch on the U.S. economy. Portfolio managers continue to favor more stable, high-dividend-paying companies that are likely to hold up better in weak markets, while providing consistent income and remain optimistic that our global research will help us identify attractive long-term investment opportunities.
Largest equity securities | Percent of net assets |
AbbVie | 7.70 | % | ||
Abbott Laboratories | 5.19 | |||
Lowe’s | 3.58 | |||
Amgen | 3.43 | |||
Microsoft | 3.30 |
Intel | 3.22 | % | ||
EOG Resources | 2.95 | |||
Gilead Sciences | 2.93 | |||
Philip Morris International | 2.78 | |||
QUALCOMM | 2.72 |
14 American Funds Insurance Series
Table of Contents
Blue Chip Income and Growth Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment For periods ended December 31, 2018
1 year | 5 years | 10 years | Lifetime (since July 5, 2001) | Expense ratio | ||||||||||||||||
Class 1 | -8.45 | % | 7.55 | % | 12.12 | % | 5.91 | % | .41 | % | ||||||||||
Class 1A | -8.67 | 7.30 | 11.85 | 5.65 | .66 | |||||||||||||||
Class 2 | -8.66 | 7.28 | 11.86 | 5.64 | .66 | |||||||||||||||
Class 4 | -8.92 | 7.01 | 11.63 | 5.41 | .91 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008, and from February 1, 2014, through
January 31, 2015. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: S&P Dow Jones Indices LLC. |
Where the fund’s assets were invested as of December 31, 2018 | Percent of net assets |
American Funds Insurance Series 15
Table of Contents
Global Growth and Income Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information andmonth-end results, visit americanfunds.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
Global Growth and Income Fund declined 9.36% for the 12 months ended December 31, 2018, compared with a 9.42% decrease in its benchmark index, MSCI ACWI (All Country World Index),1 a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, consisting of more than 40 developed and emerging market country indexes.
Global stocks, as measured by the MSCI ACWI, ended the year in negative territory hurt by slowing economic growth, increased volatility and higher interest rates in the U.S. While ongoing turmoil over the U.K.’s departure from the European Union weighed on European stocks, a combination of a stronger U.S. dollar and heightened U.S.-China trade frictions impacted emerging markets equities. Cyclical stocks posted the biggest losses, underscored by double-digit declines in the financials, industrials and materials sectors.
Several sectors including health care contributed to the fund’s returns. Health care companies UnitedHealth Group and Centene rallied on solid earnings reports and were among the top contributors to results. On the downside, investments in information technology – representing the fund’s largest sector holding – were a drag on relative results led by PagSeguro and AAC Technologies Holdings, losing ground as a broad selloff continued in the formerly high-flying sector.
With quantitative easing programs ending or set to end and slower economic growth in the U.S. and Europe, the fund’s portfolio managers remain cautiously optimistic about prospects for the global economy. Portfolio managers continue to invest based on abottom-up approach to long-term investing and believe they can uncover promising companies with sustainable dividends and income.
Country diversification | Percent of net assets |
The Americas | ||||
United States | 37.5 | % | ||
Brazil | 6.0 | |||
Canada | 1.5 | |||
Other | .2 | |||
|
| |||
45.2 | ||||
|
| |||
Europe | ||||
France | 6.5 | |||
United Kingdom | 5.8 | |||
Switzerland | 3.7 | |||
Germany | 2.6 | |||
Denmark | 2.1 | |||
Netherlands | 2.1 | |||
Spain | 1.2 | |||
Italy | 1.0 | % | ||
Other | 1.6 | |||
|
| |||
26.6 | ||||
|
|
Asia/Pacific Basin | ||||
Japan | 6.8 | |||
Taiwan | 3.8 | |||
India | 3.6 | |||
China | 2.3 | |||
Hong Kong | 1.6 | |||
Australia | 1.3 | |||
Other | 2.2 | |||
|
| |||
21.6 | ||||
|
| |||
Other regions | ||||
Israel | .5 | % | ||
|
| |||
Short-term securities & other assets less liabilities | 6.1 | |||
|
| |||
Total | 100.0 | % | ||
|
|
Largest equity securities | Percent of net assets |
Nintendo | 4.24 | % | ||
TSMC | 3.85 | |||
UnitedHealth Group | 3.74 | |||
Airbus Group | 3.12 | |||
Reliance Industries | 2.83 |
Vale | 2.49 | % | ||
Microsoft | 2.33 | |||
Nestlé | 2.18 | |||
Alphabet | 2.04 | |||
Broadcom | 2.04 |
16 American Funds Insurance Series
Table of Contents
Global Growth and Income Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment For periods ended December 31, 2018
1 year | 5 years | 10 years | Lifetime (since May 1, 2006) | Expense ratio | ||||||||||||||||
Class 1 | -9.36 | % | 5.26 | % | 10.84 | % | 5.87 | % | .63 | % | ||||||||||
Class 1A | -9.62 | 5.03 | 10.59 | 5.62 | .88 | |||||||||||||||
Class 2 | -9.63 | 4.97 | 10.56 | 5.60 | .88 | |||||||||||||||
Class 4 | -9.89 | 4.71 | 10.31 | 5.36 | 1.13 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from May 1, 2006, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source MSCI. The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
Where the fund’s assets were invested as of December 31, 2018 | Percent of net assets |
American Funds Insurance Series 17
Table of Contents
Growth-Income Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information andmonth-end results, visit americanfunds.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
Growth-Income Fund lost 1.55% for the 12 months ended December 31, 2018. Standard & Poor’s 500 Composite Index,1 a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, declined 4.38%.
U.S. equities declined for the first calendar year since 2008. Concerns over trade conflicts, slowing global growth and high valuations contributed to persistent volatility. Energy and materials companies were further pressured by falling commodity prices. While growth-oriented stocks performed relatively better than defensive stocks, many companies experienced wild swings throughout the year.
Regarding the fund, investments in the consumer discretionary sector contributed the most to the fund’s relative returns. Among consumer discretionary companies, Amazon reported strong third-quarter earnings that beat analyst estimates thanks to its cloud and advertising segments. On the downside, investments in the energy sector, such as EOG Resources and Schlumberger, detracted from the fund’s results as oil prices plummeted on concerns of a glut.
Largest equity holdings | Percent of net assets |
Microsoft | 3.30 | % | ||
Alphabet | 2.32 | |||
AbbVie | 2.25 | |||
2.18 | ||||
UnitedHealth Group | 1.91 |
Amazon | 1.76 | % | ||
Broadcom | 1.69 | |||
JPMorgan Chase | 1.63 | |||
Intel | 1.56 | |||
Gilead Sciences | 1.49 |
18 American Funds Insurance Series
Table of Contents
Growth-Income Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment For periods ended December 31, 2018
1 year | 5 years | 10 years | Lifetime (since February 8, 1984) | Expense ratio | ||||||||||||||||
Class 1 | -1.55 | % | 8.79 | % | 13.26 | % | 11.06 | % | .28 | % | ||||||||||
Class 1A | -1.78 | 8.53 | 12.98 | 10.78 | .53 | |||||||||||||||
Class 2 | -1.79 | 8.51 | 12.98 | 10.78 | .53 | |||||||||||||||
Class 3 | -1.72 | 8.59 | 13.05 | 10.86 | .46 | |||||||||||||||
Class 4 | -2.05 | 8.24 | 12.71 | 10.51 | .78 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: S&P Dow Jones Indices LLC. |
Where the fund’s assets were invested as of December 31, 2018 | Percent of net assets |
American Funds Insurance Series 19
Table of Contents
International Growth and Income Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information andmonth-end results, visit americanfunds.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
International Growth and Income Fund declined 11.00% for the 12 months ended December 31, 2018, compared to the 14.20% decline in its benchmark index, the MSCI ACWI (All Country World Index) ex USA,1 a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets (consisting of more than 40 developed and emerging market country indexes excluding the U.S.).
Global stocks, as measured by the MSCI ACWI, ended the year in negative territory hurt by slowing economic growth, increased volatility and higher interest rates in the U.S. While ongoing turmoil over the U.K.’s departure from the European Union weighed on European stocks, a combination of a stronger U.S. dollar and heightened U.S.-China trade frictions impacted emerging markets equities. Cyclical stocks posted the biggest losses, underscored by double-digit declines in the financials, industrials and materials sectors.
An eclectic mix of stocks contributed to the fund’s relative returns led by companies in the industrials and utilities sectors. Danish energy group Ørsted recorded double-digit returns and was among the top contributors to the fund’s returns as the company reported strong third-quarter profits from operational wind farms. On the downside, investments in the consumer staples sector was a weak spot. British American Tobacco detracted from relative results amid pressure from competition and regulation.
The fund’s portfolio managers continue to monitor global geopolitics that may derail economic growth, and are optimistic that global research combined with the fund’s flexible mandate will help us identify attractive investment opportunities.
Country diversification | Percent of net assets |
Europe | ||||
United Kingdom | 20.4 | % | ||
France | 9.5 | |||
Switzerland | 5.3 | |||
Germany | 4.1 | |||
Spain | 3.1 | |||
Denmark | 2.2 | |||
Sweden | 1.9 | |||
Netherlands | 1.5 | |||
Russian Federation | 1.3 | |||
Norway | 1.0 | |||
Other | .7 | |||
|
| |||
51.0 | ||||
|
| |||
Asia/Pacific Basin | ||||
China | 7.4 | % | ||
Japan | 7.4 | |||
Hong Kong | 6.5 | |||
India | 4.0 | |||
South Korea | 3.0 | |||
Philippines | 1.1 | |||
Thailand | 1.0 | |||
Other | 1.5 | |||
|
| |||
31.9 | ||||
|
|
The Americas | ||||
Brazil | 3.1 | |||
Other | 1.7 | |||
|
| |||
4.8 | ||||
|
| |||
Other regions | ||||
Turkey | 1.8 | % | ||
Other | .8 | |||
|
| |||
2.6 | ||||
|
| |||
Short-term securities & other assets less liabilities | 9.7 | |||
|
| |||
Total | 100.0 | % | ||
|
|
Largest equity securities | Percent of net assets |
Royal Dutch Shell | 4.56 | % | ||
Shire | 4.04 | |||
Rio Tinto | 3.11 | |||
HDFC Bank | 2.79 | |||
Novartis | 2.72 |
British American Tobacco | 2.56 | % | ||
Sun Hung Kai Properties | 2.37 | |||
Ørsted | 2.20 | |||
CK Asset Holdings | 2.15 | |||
Zurich | 2.06 |
20 American Funds Insurance Series
Table of Contents
International Growth and Income Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment For periods ended December 31, 2018
1 year | 5 years | 10 years | Lifetime (since November 18, 2008) | Expense ratio | ||||||||||||||||
Class 1 | -11.00 | % | 0.83 | % | 7.19 | % | 8.05 | % | .66 | % | ||||||||||
Class 1A | -11.24 | 0.60 | 6.93 | 7.79 | .91 | |||||||||||||||
Class 2 | -11.23 | 0.58 | 6.92 | 7.77 | .91 | |||||||||||||||
Class 4 | -11.46 | 0.33 | 6.69 | 7.54 | 1.16 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from November 18, 2008, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019
(unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: MSCI. The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
Where the fund’s assets were invested as of December 31, 2018 | Percent of net assets |
American Funds Insurance Series 21
Table of Contents
Capital Income Builder®
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information andmonth-end results, visit americanfunds.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
Capital Income Builder, a mix of stocks and bonds, lost 6.77% for the 12 months ended December 31, 2018. During the same period, the MSCI ACWI (All Country World Index)1,a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets (consisting of more than 40 developed and emerging market country indexes), declined 9.42%. The Bloomberg Barclays U.S. Aggregate Index,2 which represents the U.S. investment-grade (rated BBB/Baa and above) fixed-rate bond market, was virtually unchanged and returned 0.01%. The index blend of 70%/30% MSCI
ACWI/Bloomberg Barclays U.S. Aggregate Index3 lost 6.48%. The Lipper Global Equity Income Funds Average4, a measure of similar funds, fell 9.41%.
U.S. equities declined for the first calendar year since 2008. Concerns over trade conflicts, slowing global growth and high valuations contributed to persistent volatility. Energy and materials companies were further pressured by falling commodity prices. While growth-oriented stocks performed relatively better than defensive stocks, many companies experienced wild swings throughout the year. In a turbulent year, a fourth quarter rally helped bonds outperform other asset classes.
In the equity portfolio, the best contributors to the fund in relative terms were the financials and real estate sectors. A mix of stocks such as CME Group and American Tower contributed to results on the back of strong third quarter earnings that beat analyst estimates. The fund’s fixed income portfolio was also additive to results and benefited from duration positioning.
On the downside, the consumer staples sector, which comprised the second-largest share of the fund’s equity holdings, detracted from returns. Tobacco firms Philip Morris International and British American Tobacco fell due to competition from next-generation smoking products, such as JUUL.
The current market environment is rife with uncertainty. Given that the U.S. is late in the economic cycle, the fund’s portfolio managers are paying close attention to companies’ leverage and are more sharply focused on monitoring balance sheets. They seek to avoid companies that take on debt to pay dividends, and are focused on identifying companies with strong business models and a commitment to paying and growing dividends over time. Higher interest rates should also allow portfolio managers to reinvest bond coupon payments into higher yielding securities, thereby generating more income from the bond portfolio.
Country diversification | Percent of net assets |
The Americas | ||||
United States | 56.1 | % | ||
Canada | 2.6 | |||
|
| |||
58.7 | ||||
|
| |||
Europe | ||||
United Kingdom | 12.4 | |||
France | 3.4 | |||
Switzerland | 2.9 | |||
Sweden | 2.0 | |||
Italy | 1.5 | |||
Netherlands | 1.0 | |||
Other | 2.7 | |||
|
| |||
25.9 | ||||
|
|
Asia/Pacific Basin | ||||
Hong Kong | 3.1 | % | ||
Taiwan | 2.3 | |||
Japan | 1.3 | |||
Singapore | 1.2 | |||
New Zealand | 1.0 | |||
Other | .4 | |||
|
| |||
9.3 | ||||
|
| |||
Short-term securities & other assets less liabilities | 6.1 | |||
|
| |||
Total | 100.0 | % | ||
|
|
22 American Funds Insurance Series
Table of Contents
Capital Income Builder
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment For periods ended December 31, 2018
1 year | Lifetime (since May 1, 2014) | Expense ratio | ||||||||||
Class 1 | -6.77 | % | 1.82 | % | .54 | % | ||||||
Class 1A | -7.01 | 1.57 | .79 | |||||||||
Class 2 | -7.08 | 1.68 | .79 | |||||||||
Class 4 | -7.25 | 1.31 | 1.04 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Expense ratios are as of the fund’s prospectus dated May 1, 2019 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
¹ | Source: MSCI. The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
2 | Source: Bloomberg Index Services Ltd. |
3 | Data sources: MSCI and Bloomberg Index Services Ltd. The 70%/30% MSCI ACWI/Bloomberg Barclays U.S. Aggregate Index blends the MSCI ACWI (All Country World Index) with the Bloomberg Barclays U.S. Aggregate Index by weighting their total returns at 70% and 30%, respectively. Its result assumes the blend is rebalanced monthly. |
4 | Source: Thomson Reuters Lipper. |
Where the fund’s assets were invested as of December 31, 2018 | Percent of net assets |
American Funds Insurance Series 23
Table of Contents
Asset Allocation Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information andmonth-end results, visit americanfunds.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
Asset Allocation Fund, which is a mix of stocks and bonds, fell 4.35% for the 12 months ended December 31, 2018. Standard & Poor’s 500 Composite Index,1 a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, declined 4.38% over the same period, while the Bloomberg Barclays U.S. Aggregate Index,2 which represents the U.S. investment-grade (rated BBB/Baa and above) fixed-rate bond market, returned 0.01%. A blend of the two indexes, the 60%/40% S&P 500 Index/Bloomberg Barclays U.S. Aggregate Index,3 slipped 2.35%.
U.S. equities declined for the first time since 2008. Concerns over trade conflicts, slowing global growth and high valuations contributed to persistent volatility. Energy and materials companies were further pressured by falling commodity prices. While growth-oriented stocks performed relatively better than defensive stocks, many companies experienced wild swings throughout the year. In a turbulent year, a fourth quarter rally helped bonds outperform other asset classes.
Investments in the health care sector – one of the fund’s largest sector holdings – contributed to the fund’s returns. Molina Healthcare, UnitedHealth Group and Express Scripts boosted results, as all three companies had double-digit returns, which were on the back of strong third-quarter earnings for UnitedHealth Group and Express Scripts. On the downside, energy stocks detracted from returns as oil prices slipped due to fears of growing U.S. output and weaker global demand. The fund’s fixed income holdings were also a drag on returns due to curve positioning.
The fund’s portfolio managers continue to evaluate the economic and market-sector implications of the current administration’s decisions regarding trade. The fund’s cash position allows portfolio managers to remain flexible and better navigate uncertainty by focusing on opportunities when stock prices are favorable.
Largest equity securities | Percent of net assets |
Microsoft | 2.88 | % | ||
TSMC | 2.26 | |||
Broadcom | 2.21 | |||
UnitedHealth Group | 2.19 | |||
Johnson & Johnson | 1.95 |
DowDuPont | 1.81 | % | ||
Boeing | 1.60 | |||
Philip Morris International | 1.58 | |||
Nestlé | 1.47 | |||
Cigna | 1.40 |
24 American Funds Insurance Series
Table of Contents
Asset Allocation Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment For periods ended December 31, 2018
1 year | 5 years | 10 years | Lifetime (since August 1,1989) | Expense ratio | ||||||||||||||||
Class 1 | -4.35 | % | 5.60 | % | 10.44 | % | 8.22 | % | .29 | % | ||||||||||
Class 1A | -4.58 | 5.35 | 10.17 | 7.95 | .54 | |||||||||||||||
Class 2 | -4.60 | 5.33 | 10.16 | 7.95 | .54 | |||||||||||||||
Class 3 | -4.49 | 5.41 | 10.24 | 8.03 | .47 | |||||||||||||||
Class 4 | -4.83 | 5.07 | 9.93 | 7.70 | .79 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: S&P Dow Jones Indices LLC. |
2 | Source: Bloomberg Index Services Ltd. |
3 | Data sources: S&P Dow Jones Indices LLC and Bloomberg Index Services Ltd. The 60%/40% S&P 500 Index/Bloomberg Barclays U.S. Aggregate Index blends the S&P 500 with the Bloomberg Barclays U.S. Aggregate Index by weighting their cumulative total returns at 60% and 40%, respectively. This assumes the blend is rebalanced monthly. |
Where the fund’s assets were invested as of December 31, 2018 | Percent of net assets |
American Funds Insurance Series 25
Table of Contents
Global Balanced Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information andmonth-end results, visit americanfunds.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
Global Balanced Fund declined 5.81% for the 12 months ended December 31, 2018. The MSCI ACWI (All Country World Index)1, a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets (consisting of more than 40 developed and emerging market country indexes), lost 9.42%, while the Bloomberg Barclays Global Aggregate Index,2 a measure of global investment-grade bonds (rated BBB/Baa and above), fell 1.20%. The 60%/40% MSCI ACWI/ Bloomberg Barclays Global Aggregate Index3, a blend of the two indexes, slipped 6.00%.
Global stocks, as measured by the MSCI ACWI, ended the year in negative territory hurt by slowing economic growth, increased volatility and higher interest rates in the U.S. While ongoing turmoil over the U.K.’s departure from the European Union weighed on European stocks, a combination of a stronger U.S. dollar and heightened U.S.-China trade frictions impacted emerging markets equities.
Investments in the health care sector boosted the fund’s returns led by companies such as U.S. health insurer Humana. The company’s shares hit new highs on the back of strong third-quarter earnings and amid a wider boost to the health insurance sector following U.S. congressionalmid-term elections.
On the flip side, investments in consumer staples companies hindered results. In particular, tobacco companies were hurt by concerns about nicotine regulation in the U.S. and increased competition. Fixed income investments also detracted from returns led by the fund’s exposure to emerging market debt.
While there is reason for caution in the global outlook, there are broad themes that offer the fund’s portfolio managers investment opportunities. Equity investments in health care and technology can provide exposure to innovations with significant growth potential. Within fixed income, portfolio managers see pockets of opportunities in emerging markets, such as Mexico and Poland, where selling in response to higher rates belies underlying strengths.
Percent of net assets | Percent of net assets |
Largest sectors in common stock holdings | ||||
Information technology | 11.3 | % | ||
Financials | 8.1 | |||
Health care | 7.5 | |||
Industrials | 6.8 | |||
Energy | 5.0 |
Largest fixed income holdings (by issuer) | ||||
U.S. Treasury | 12.5 | % | ||
Japanese Government | 4.3 | |||
Mexican Government | 1.2 | |||
Polish Government | 1.1 | |||
Fannie Mae | 1.1 |
Currency diversification | Percent of net assets |
Equity securities | Bonds & notes | Forward currency contracts | Short-term securities & other assets less liabilities | Total | ||||||||||||||||
U.S. dollars | 29.2 | % | 21.3 | % | .3 | % | 6.3 | % | 57.1 | % | ||||||||||
Euros | 7.4 | 3.6 | .4 | — | 11.4 | |||||||||||||||
Japanese yen | 2.8 | 4.3 | .7 | — | 7.8 | |||||||||||||||
British pounds | 6.3 | .7 | .7 | — | 7.7 | |||||||||||||||
Hong Kong dollars | 2.5 | — | — | — | 2.5 | |||||||||||||||
Swiss francs | 2.1 | — | — | — | 2.1 | |||||||||||||||
Danish kroner | 1.0 | .6 | — | — | 1.6 | |||||||||||||||
Taiwan new dollar | 1.5 | — | — | — | 1.5 | |||||||||||||||
Other currencies | 3.9 | 6.5 | (2.1 | ) | — | 8.3 | ||||||||||||||
|
| |||||||||||||||||||
100.0 | % | |||||||||||||||||||
|
|
Largest equity securities | Percent of net assets |
Nintendo | 1.55 | % | ||
ASML | 1.54 | |||
TSMC | 1.46 | |||
Merck | 1.39 | |||
Microsoft | 1.34 |
Boeing | 1.34 | % | ||
JPMorgan Chase | 1.29 | |||
Humana | 1.28 | |||
HSBC Holding | 1.22 | |||
PagSeguro | 1.13 |
26 American Funds Insurance Series
Table of Contents
Global Balanced Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment For periods ended December 31, 2018
1 year | 5 years | Lifetime (since May 2, 2011) | Expense ratio | |||||||||||||
Class 1 | -5.81 | 3.66 | % | 4.75 | % | .72 | % | |||||||||
Class 1A | -6.03 | 3.43 | 4.51 | .97 | ||||||||||||
Class 2 | -6.01 | 3.40 | 4.49 | .97 | ||||||||||||
Class 4 | -6.31 | 3.29 | 4.38 | 1.22 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Expense ratios are as of the fund’s prospectus dated May 1, 2019 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: MSCI. The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
2 | Source: Bloomberg Index Services Ltd. |
3 | Data sources: MSCI and Bloomberg Index Services Ltd. The 60%/40% MSCI ACWI/Barclays Global Aggregate Index blends the MSCI ACWI (All Country World Index) with the Bloomberg Barclays Global Aggregate Index by weighting their cumulative total returns at 60% and 40%, respectively. Its result assumes the blend is rebalanced monthly. |
Where the fund’s assets were invested as of December 31, 2018 | Percent of net assets |
American Funds Insurance Series 27
Table of Contents
Bond Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information andmonth-end results, visit americanfunds.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
Bond Fund slipped 0.45% for the 12 months ended December 31, 2018. In comparison, the fund’s benchmark, the Bloomberg Barclays U.S. Aggregate Index,1 which represents the U.S. investment-grade (rated BBB/Baa and above) fixed-rate bond market, was flat and returned 0.01%.
Rising yields made for mixed results across bond sectors as the10-year Treasury yield rose 29 basis points. The Federal Reserve hiked the federal funds target rate four times this year to a range of 2.25% to 2.50% on the back of a strong labor market and solid economic growth.
The fund’s exposure to higher-yielding securities contributed to results. Bond investments across a mix of issuers and sectors exposed the fund to idiosyncratic risks and an underweight position in U.S. Treasuries detracted from results.
On the whole, the U.S. economy appears to be in good shape and is expected to grow at a moderate pace. The Fed is well ahead of its peers on its path to monetary policy normalization that may help contribute to a more stable environment for interest rate hikes. The fund’s portfolio managers are optimistic about total returns against such a backdrop and for investing in a spectrum of U.S. fixed income securities.
Largest holdings (by issuer) | Percent of net assets |
U.S. Treasury | 28.9 | % | ||
Fannie Mae | 12.3 | |||
Freddie Mac | 5.5 | |||
Ginnie Mae | 4.8 | |||
Mexican Government | 2.6 |
Teva Pharmaceutical | 1.7 | % | ||
State of Illinois | 1.3 | |||
Portuguese Government | 1.3 | |||
Bank of America | 1.1 | |||
Japanese Government | 1.1 |
28 American Funds Insurance Series
Table of Contents
Bond Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment For periods ended December 31, 2018
1 year | 5 years | 10 years | Lifetime (since January 2, 1996) | Expense ratio | ||||||||||||||||
Class 1 | -0.45 | % | 2.52 | % | 4.16 | % | 4.51 | % | .38 | % | ||||||||||
Class 1A | -0.60 | 2.29 | 3.91 | 4.26 | .63 | |||||||||||||||
Class 2 | -0.71 | 2.27 | 3.90 | 4.25 | .63 | |||||||||||||||
Class 4 | -0.89 | 2.03 | 3.66 | 4.00 | .88 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: Bloomberg Index Services Ltd. |
Where the fund’s assets were invested as of December 31, 2018 | Percent of net assets |
American Funds Insurance Series 29
Table of Contents
Global Bond Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information andmonth-end results, visit americanfunds.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
Global Bond Fund slipped 1.14% for the 12 months ended December 31, 2018. This was in line with the fund’s benchmark, the Bloomberg Barclays Global Aggregate Index,1 which measures global investment-grade bonds (rated BBB/Baa and above) that declined 1.20%.
U.S. Treasury bonds rose modestly, boosted by safe-haven buying as volatile financial markets sent investors fleeing for cover. The positive gains, however, masked a more tumultuous year as rising U.S. interest rates jolted markets around the world. The U.S. dollar also strengthened in response to higher rates and quantitative tightening. Investment-grade and high-yield corporate bonds finished the year in negative territory, as did emerging markets debt. Meanwhile, the Federal Reserve hiked the federal funds target rate four times this year to a range of 2.25% to 2.50%.
Country allocation contributed the most to the fund’s relative returns, driven by above-benchmark investments in Polish, Indian and Brazilian debt. On the downside, duration positioning and currency exposure hampered returns. Emerging market currencies were particularly under pressure due to a stronger dollar, and investments in the Indian rupee hindered results.
As growth in the U.S. moderates, the fund’s portfolio managers seek to identify long-term investments around the world such as in emerging markets where corporate and high-yield debt may present opportunities. Given the fund’s core objective is to provide a high-level of total return over the long term, the fund’s portfolio managers maintain a cautious approach to investing in different sectors of the bond market, such as high-yield debt.
Percent of net assets |
Currency weighting (after hedging) by country | Non-U.S. government bonds by country |
United States2 | 47.5 | % | ||
Japan | 16.9 | |||
Eurozone3 | 15.7 | |||
United Kingdom | 5.0 | |||
Mexico | 3.6 | |||
Poland | 2.5 | |||
Denmark | 1.7 | |||
Other | 7.1 | |||
|
| |||
Total | 100.0 | % | ||
|
| |||
Eurozone3: | ||||
Germany | 2.7 | % | ||
Spain | 2.0 | |||
Italy | 1.4 | |||
Other | 2.0 | |||
|
| |||
8.1 | % | |||
Japan | 11.9 | |||
Poland | 3.8 | |||
Mexico | 3.5 | |||
India | 2.2 | |||
United Kingdom | 2.0 | |||
Brazil | 1.6 | |||
Romania | 1.6 | |||
Thailand | 1.3 | |||
Other | 11.7 | |||
|
| |||
Total | 47.7 | % | ||
|
|
Largest holdings (by issuer) | Percent of net assets |
U.S. Treasury | 18.2 | % | ||
Japanese Government | 11.9 | |||
Mexican Government | 3.9 | |||
Polish Government | 3.8 | |||
Nykredit Realkredit | 3.1 |
Fannie Mae | 2.6 | % | ||
German Government | 2.5 | |||
Indian Government | 2.0 | |||
Spanish Government | 2.0 | |||
Brazilian Government | 1.7 |
30 American Funds Insurance Series
Table of Contents
Global Bond Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment For periods ended December 31, 2018
1 year | 5 years | 10 years | Lifetime (since October 4, 2006) | Expense ratio | ||||||||||||||||
Class 1 | -1.14 | % | 1.31 | % | 3.04 | % | 3.75 | % | .57 | % | ||||||||||
Class 1A | -1.29 | 1.10 | 2.80 | 3.51 | .82 | |||||||||||||||
Class 24 | -1.33 | 1.04 | 2.78 | 3.49 | .82 | |||||||||||||||
Class 4 | -1.61 | 0.80 | 2.57 | 3.27 | 1.07 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from October 4, 2006, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: Bloomberg Index Services Ltd. |
2 | Includes U.S. dollar-denominated debt of other countries, totaling 13.7%. |
3 | Countries using the euro as a common currency; those represented in the fund’s portfolio are France, Germany, Greece, Ireland, Italy, Portugal and Spain. |
4 | Global Bond Fund Class 2 shares were first sold on November 6, 2006. Results prior to that date are hypothetical based on Class 1 share results adjusted for estimated additional annual expenses of 0.25%. |
Where the fund’s assets were invested as of December 31, 2018 | Percent of net assets |
American Funds Insurance Series 31
Table of Contents
High-Income Bond Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information andmonth-end results, visit americanfunds.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
High-Income Bond Fund declined 2.15% for the 12 months ended December 31, 2018. In comparison, the fund’s benchmark, the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index,1 which measuresnon-investment-grade bonds and limits the exposure of an issuer to 2%, fell 2.08%.
Rising yields made for mixed results across bond sectors as the10-year Treasury yield rose 29 basis points. The Federal Reserve hiked the federal funds target rate four times this year to a range of 2.25% to 2.50% on the back of a strong labor market and solid economic growth.
While the fund’s returns were in line with the benchmark, an allocation to select industries contributed to relative returns - an underweight position in consumer cyclicals and an overweight position in technology boosted results.
The fund’s portfolio managers continue to believe current fundamentals support a mildly constructive outlook for the high-yield market. While we are monitoring the Federal Reserve’s tightening monetary policy, the higher yields and relatively short duration of high-yield bonds should help mitigate any impact from rising rates.
Largest holdings (by issuer) | Percent of net assets |
Bausch Health Companies | 2.6 | % | ||
Tenet Healthcare | 1.9 | |||
Cheniere Energy | 1.9 | |||
Frontier Communications | 1.8 | |||
First Quantum Minerals | 1.8 |
iHeartMedia, Inc. | 1.6 | % | ||
Petsmart | 1.5 | |||
Cleveland-Cliffs | 1.4 | |||
CCO Holdings LLC and CCO Holdings Capital | 1.3 | |||
Gogo | 1.2 |
32 American Funds Insurance Series
Table of Contents
High-Income Bond Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment For periods ended December 31, 2018
1 year | 5 years | 10 years | Lifetime (since February 8, 1984) | Expense ratio | ||||||||||||||||
Class 1 | -2.15 | % | 3.01 | % | 8.79 | % | 8.55 | % | .50 | % | ||||||||||
Class 1A | -2.35 | 2.78 | 8.53 | 8.28 | .75 | |||||||||||||||
Class 2 | -2.34 | 2.77 | 8.51 | 8.28 | .75 | |||||||||||||||
Class 3 | -2.33 | 2.82 | 8.58 | 8.35 | .68 | |||||||||||||||
Class 4 | -2.64 | 2.50 | 8.30 | 8.02 | 1.00 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: Bloomberg Index Services Ltd. |
Where the fund’s assets were invested as of December 31, 2018 | Percent of net assets |
American Funds Insurance Series 33
Table of Contents
Mortgage Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information andmonth-end results, visit americanfunds.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
Mortgage Fund gained 0.58% for the 12 months ended December 31, 2018, while the Bloomberg Barclays U.S. Mortgage-Backed Securities Index,1 which covers the mortgage-backed pass-through securities of Ginnie Mae, Fannie Mae and Freddie Mac, rose 0.99%.
Rising yields made for mixed results across bond sectors as the10-year Treasury yield rose 29 basis points. The Federal Reserve hiked the federal funds target rate four times this year to a range of 2.25% to 2.50% on the back of a strong labor market and solid economic growth.
The fund’s allocation to Treasuries, Agency debentures, and high-quality liquid asset-backed securities contributed to relative results as agency mortgage-backed securities lagged some of the other sectors during the calendar year. Duration had little impact and on the downside the fund’s yield curve position detracted from results.
The fund’s portfolio managers remain focused on meeting the core objectives of the fund - providing current income and protecting capital. The fund’s relatively low allocation to agency mortgage-backed securities, combined with an interest rate stance that anticipates that the yield curve will steepen, are positions that the portfolio managers expect will contribute to relative results in the future as markets evolve. As the Fed continues to withdraw liquidity by divesting Treasuries and mortgage securities from its balance sheet, more attractive valuations for mortgage investments are expected to emerge.
Breakdown of mortgage-backed obligations | Percent of net assets |
30-year pass-throughs: | ||||
Freddie Mac | 6.3 | % | ||
Ginnie Mae | 21.5 | |||
Fannie Mae | 18.1 | |||
|
| |||
45.9 | % | |||
Other | 26.0 | |||
|
| |||
Total | 71.9 | % | ||
|
|
34 American Funds Insurance Series
Table of Contents
Mortgage Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment For periods ended December 31, 2018
1 year | 5 years | Lifetime (since May 2, 2011) | Expense ratio | |||||||||||||
Class 1 | 0.58 | % | 2.42 | % | 2.34 | % | .48 | % | ||||||||
Class 1A | 0.36 | 2.17 | 2.09 | .73 | ||||||||||||
Class 2 | 0.32 | 2.16 | 2.09 | .73 | ||||||||||||
Class 4 | 0.07 | 1.92 | 1.91 | .98 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Expense ratios are as of the fund’s prospectus dated May 1, 2019 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: Bloomberg Index Services Ltd. |
Where the fund’s assets were invested as of December 31, 2018 | Percent of net assets |
American Funds Insurance Series 35
Table of Contents
Ultra-Short Bond Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information andmonth-end results, visit americanfunds.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
Ultra-Short Bond Fund gained 1.58% for the 12 months ended December 31, 2018, compared with a 1.99% rise in the Bloomberg Barclays Short-Term Government/Corporate Index,1 which consists of investment-grade (rated BBB/Baa and above), fixed-rate, publicly placed, dollar-denominated andnon-convertible securities with remaining maturity from one up to (but not including) 12 months within either the government or corporate sector.
The fund’s returns were higher than in 2017 as the Federal Reserve continued on its path to reducing the size of its balance sheet, raising rates by a quarter percentage point four times over the past 12 months, to the current range of 2.25% to 2.50%. Given an increase in interest rates to reassure investors of persistent U.S. economic strength, the fund’s portfolio managers believe the fund has the potential to provide current income.
36 American Funds Insurance Series
Table of Contents
Ultra-Short Bond Fund
Average annual total returns based on a $1,000 investment For periods ended December 31, 2018
1 year | 5 years | 10 years | Lifetime (since February 8, 1984) | Expense ratio | ||||||||||||||||
Class 1 | 1.58 | % | 0.37 | % | 0.10 | % | 3.44 | % | .35 | % | ||||||||||
Class 1A | 1.58 | 0.23 | –0.10 | 3.19 | .60 | |||||||||||||||
Class 2 | 1.36 | 0.13 | –0.15 | 3.18 | .60 | |||||||||||||||
Class 3 | 1.38 | 0.18 | –0.09 | 3.25 | .53 | |||||||||||||||
Class 4 | 1.14 | –0.06 | –0.33 | 2.94 | .85 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: Bloomberg Index Services Ltd. |
Where the fund’s assets were invested as of December 31, 2018 | Percent of net assets |
Commercial paper | 69.8 | % | ||
U.S Treasury bills | 24.4 | |||
Federal agency discount notes | 5.9 | |||
Other assets less liabilities | (.1 | ) | ||
|
| |||
Total | 100.0 | % | ||
|
|
American Funds Insurance Series 37
Table of Contents
U.S.Government/AAA-Rated Securities Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information andmonth-end results, visit americanfunds.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
U.S.Government/AAA-Rated Securities Fund rose 0.91% for the 12 months ended December 31, 2018, while the Bloomberg Barclays U.S. Government/Mortgage-Backed Securities Index,1 which covers obligations issued by the U.S. Treasury and U.S. government agencies, increased by 0.93%.
Rising yields made for mixed results across bond sectors as the10-year Treasury yield rose 29 basis points. The Federal Reserve hiked the federal funds target rate four times this year to a range of 2.25% to 2.50% on the back of a strong labor market and solid economic growth.
During the period, curve positioning led by higher yields contributed to relative returns. On the downside, TIPS (Treasury inflation protected securities) detracted from relative returns as inflation expectations fell in the fourth quarter of 2018.
The fund strives to meet its objective of providing a high level of current income consistent with the preservation of capital. The fund’s portfolio managers have positioned the fund with the expectation that rate hikes in the near future will be at a gradual pace and believe this can lead to a steepening yield curve and higher inflation expectations.
Breakdown of mortgage-backed obligations | Percent of net assets |
30-year pass-throughs: | ||||
Fannie Mae | 12.3 | % | ||
Ginnie Mac | 4.7 | |||
Freddie Mac | 2.5 | |||
|
| |||
19.5 | % | |||
15-year pass-throughs | 2.3 | |||
Other | 6.8 | |||
|
| |||
Total | 28.6 | % | ||
|
|
38 American Funds Insurance Series
Table of Contents
U.S.Government/AAA-Rated Securities Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment For periods ended December 31, 2018
1 year | 5 years | 10 years | Lifetime (since December 2, 1985) | Expense ratio | ||||||||||||||||
Class 1 | 0.91 | % | 2.26 | % | 2.69 | % | 5.71 | % | .36 | % | ||||||||||
Class 1A | 0.70 | 2.04 | 2.45 | 5.45 | .61 | |||||||||||||||
Class 2 | 0.73 | 2.01 | 2.44 | 5.45 | .61 | |||||||||||||||
Class 3 | 0.71 | 2.07 | 2.50 | 5.52 | .54 | |||||||||||||||
Class 4 | 0.50 | 1.75 | 2.22 | 5.20 | .86 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008, and from July 1, 2010, through
December 31, 2010. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: Bloomberg Index Services Ltd. |
Where the fund’s assets were invested as of December 31, 2018 | Percent of net assets |
American Funds Insurance Series 39
Table of Contents
Managed Risk Growth Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information andmonth-end results, visit americanfunds.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
The fund slipped 0.04% for the 12 months ended December 31, 2018. Standard & Poor’s 500 Managed Risk Index — Moderate Aggressive1fell 2.51%. Standard & Poor’s 500 Composite Index,2 a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, lost 4.38%.
The fund pursues its objective by investing in shares of American Funds Insurance Series — Growth FundSM and American Funds Insurance Series — Bond FundSM while seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying Growth Fund.
The underlying Growth Fund’s investments in consumer discretionary added to returns, while investments in communication services detracted from the fund’s results.
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment For periods ended December 31, 2018
1 year | Lifetime (since May 1, 2013) | Gross expense ratio | Net expense ratio | |||||||||||||
Class P1 | –0.04 | % | 7.94 | % | .77 | % | .72 | % | ||||||||
Class P2 | –0.37 | 7.62 | 1.02 | .97 |
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: S&P Dow Jones Indices LLC. Standard & Poor’s Managed Risk Index Series is designed to simulate a dynamic protective portfolio that allocates between the underlying equity index and cash, based on realized volatilities of the underlying equity and bond indexes, while maintaining a fixed allocation to the underlying bond index. |
2 | Source: S&P Dow Jones Indices LLC. |
Milliman Financial Risk Management LLC serves as the subadviser with respect to the management of the fund’s managed risk strategy.
40 American Funds Insurance Series
Table of Contents
Managed Risk International Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information andmonth-end results, visit americanfunds.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
The fund declined 10.11% for the 12 months ended December 31, 2018, compared to the S&P EPAC Ex. Korea LargeMidCap Managed Risk Index — Moderate Aggressive,1 which fell 10.15%. The MSCI ACWI (All Country World Index) ex USA,2a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets (consisting of more than 40 developed and emerging market country indexes excluding the U.S.), decreased by 14.20%.
The fund pursues its objective by investing in shares of American Funds Insurance Series — International FundSM and American Funds Insurance Series — Bond FundSM while seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying International Fund.
The underlying International Fund’s investments in the financials sector added to returns, while investments in the consumer staples sector hindered the fund’s results.
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment For periods ended December 31, 2018
1 year | Lifetime (since May 1, 2013) | Gross expense ratio | Net expense ratio | |||||||||||||
Class P1 | –10.11 | % | 1.66 | % | .96 | % | .87 | % | ||||||||
Class P2 | –10.50 | 1.25 | 1.21 | 1.12 |
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: S&P Dow Jones Indices LLC. Standard & Poor’s Managed Risk Index Series is designed to simulate a dynamic protective portfolio that allocates between the underlying equity index and cash, based on realized volatilities of the underlying equity and bond indexes, while maintaining a fixed allocation to the underlying bond index. |
2 | Source: MSCI. The MSCI index result reflects reinvestment of distributions and dividends net of withholding taxes. |
Milliman Financial Risk Management LLC serves as the subadviser with respect to the management of the fund’s managed risk strategy.
American Funds Insurance Series 41
Table of Contents
Managed Risk Blue Chip Income and Growth Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information andmonth-end results, visit americanfunds.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
The fund lost 6.99% for the 12 months ended December 31, 2018, trailing the S&P 500 Managed Risk Index — Moderate,1which fell 2.13%. Standard & Poor’s 500 Composite Index,2 a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, decreased by 4.38%.
The fund pursues its objective by investing in shares of American Funds Insurance Series — Blue Chip Income and Growth FundSM and American Funds Insurance Series — U.S.Government/AAA-Rated Securities FundSM while seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying Blue Chip Income and Growth Fund.
The underlying Blue Chip Income and Growth Fund’s investments in consumer staples stocks detracted the most from the fund’s results.
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment For periods ended December 31, 2018
1 year | 5 years | Lifetime (since May 1, 2013) | Gross expense ratio | Net expense ratio | ||||||||||||||||
Class P1 | –6.99 | % | 4.28 | % | 5.89 | % | .82 | % | .77 | % | ||||||||||
Class P2 | –7.38 | 3.87 | 5.50 | 1.07 | 1.02 |
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: S&P Dow Jones Indices LLC. Standard & Poor’s Managed Risk Index Series is designed to simulate a dynamic protective portfolio that allocates between the underlying equity index and cash, based on realized volatilities of the underlying equity and bond indexes, while maintaining a fixed allocation to the underlying bond index. |
2 | Source: S&P Dow Jones Indices LLC. |
Milliman Financial Risk Management LLC serves as the subadviser with respect to the management of the fund’s managed risk strategy.
42 American Funds Insurance Series
Table of Contents
Managed Risk Growth-Income Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information andmonth-end results, visit americanfunds.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
The fund slipped 1.66% for the 12 months ended December 31, 2018, compared to the S&P 500 Managed Risk Index — Moderate,1 which declined 2.13%. Standard & Poor’s 500 Composite Index,2 a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, decreased by 4.38%.
The fund pursues its objective by investing in shares of American Funds Insurance Series — Growth-Income FundSM and American Funds Insurance Series — Bond FundSM while seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying Growth-Income Fund.
The underlying Growth-Income Fund’s investments in the consumer discretionary sector contributed the most to the fund’s relative returns, while investments in the information technology sector detracted the most from the fund’s relative results.
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment For periods ended December 31, 2018
1 year | 5 years | Lifetime (since May 1, 2013) | Gross expense ratio | Net expense ratio | ||||||||||||||||
Class P1 | –1.66 | % | 5.08 | % | 7.27 | % | .73 | % | .67 | % | ||||||||||
Class P2 | –1.97 | 4.73 | 6.93 | .98 | .92 |
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: S&P Dow Jones Indices LLC. Standard & Poor’s Managed Risk Index Series is designed to simulate a dynamic protective portfolio that allocates between the underlying equity index and cash, based on realized volatilities of the underlying equity and bond indexes, while maintaining a fixed allocation to the underlying bond index. |
2 | Source: S&P Dow Jones Indices LLC. |
Milliman Financial Risk Management LLC serves as the subadviser with respect to the management of the fund’s managed risk strategy.
American Funds Insurance Series 43
Table of Contents
Managed Risk Asset Allocation Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information andmonth-end results, visit americanfunds.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
The fund declined 4.63% for the 12 months ended December 31, 2018, trailing the S&P 500 Managed Risk Index — Moderate Conservative,1 which lost 1.88%. Standard & Poor’s 500 Composite Index,2 a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, fell 4.38%.
The fund pursues its objective by investing in shares of American Funds Insurance Series — Asset Allocation FundSM while seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying Asset Allocation Fund.
The fund’s underlying investments in the industrials sector contributed the most to relative returns, while investments in the energy sector hindered results the most.
44 American Funds Insurance Series
Table of Contents
Managed Risk Asset Allocation Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment For periods ended December 31, 2018
1 year | 5 years | Lifetime (since September 28, 2012) | Gross expense ratio | Net expense ratio | ||||||||
Class P1 | –4.63 | % | 3.86% | 6.45% | .69% | .64% | ||||||
Class P2 | –4.89 | 3.58 | 6.18 | .94 | .89 |
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: S&P Dow Jones Indices LLC. Standard & Poor’s Managed Risk Index Series is designed to simulate a dynamic protective portfolio that allocates between the underlying equity index and cash, based on realized volatilities of the underlying equity and bond indexes, while maintaining a fixed allocation to the underlying bond index. |
2 | Source: S&P Dow Jones Indices LLC. |
3 | Source: Bloomberg Index Services Ltd. |
Milliman Financial Risk Management LLC serves as the subadviser with respect to the management of the fund’s managed risk strategy.
American Funds Insurance Series 45
Table of Contents
Summary investment portfolioDecember 31, 2018
Common stocks 94.37%
Shares | Value (000) | |||||||
Information technology 24.34% |
| |||||||
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 27,188,000 | $ 197,997 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 335,000 | 12,365 | ||||||
ASML Holding NV | 648,442 | 101,904 | ||||||
ASML Holding NV (New York registered) | 517,300 | 80,502 | ||||||
Microsoft Corp. | 1,583,100 | 160,795 | ||||||
Visa Inc., Class A | 1,142,800 | 150,781 | ||||||
Broadcom Inc. | 487,050 | 123,847 | ||||||
Temenos AG1 | 637,000 | 76,403 | ||||||
Paycom Software, Inc.2 | 357,000 | 43,715 | ||||||
Amadeus IT Group SA, Class A,non-registered shares | 486,200 | 33,892 | ||||||
Adobe Inc.2 | 135,000 | 30,542 | ||||||
Other securities | 326,242 | |||||||
|
| |||||||
1,338,985 | ||||||||
|
| |||||||
Consumer discretionary 17.99% |
| |||||||
Amazon.com, Inc.2 | 228,600 | 343,350 | ||||||
Alibaba Group Holding Ltd. (ADR)2 | 931,050 | 127,619 | ||||||
NIKE, Inc., Class B | 562,500 | 41,704 | ||||||
Home Depot, Inc. | 236,800 | 40,687 | ||||||
Just Eat PLC2 | 5,292,000 | 39,581 | ||||||
Booking Holdings Inc.2 | 22,700 | 39,099 | ||||||
Ocado Group PLC2 | 3,115,000 | 31,366 | ||||||
Moncler SpA1 | 915,000 | 30,352 | ||||||
Other securities | 296,182 | |||||||
|
| |||||||
989,940 | ||||||||
|
| |||||||
Health care 12.51% |
| |||||||
UnitedHealth Group Inc. | 324,200 | 80,765 | ||||||
Merck & Co., Inc. | 886,000 | 67,699 | ||||||
Boston Scientific Corp.2 | 1,638,200 | 57,894 | ||||||
Elanco Animal Health Inc.2 | 1,799,658 | 56,743 | ||||||
AstraZeneca PLC | 721,300 | 53,995 | ||||||
Sartorius AG, nonvoting preferred,non-registered shares1 | 381,500 | 47,577 | ||||||
Mettler-Toledo International Inc.2 | 65,000 | 36,763 | ||||||
Cigna Corp. | 177,511 | 33,713 | ||||||
Hologic, Inc.2 | 800,000 | 32,880 | ||||||
Fisher & Paykel Healthcare Corp. Ltd. | 3,680,000 | 32,110 | ||||||
Other securities | 188,418 | |||||||
|
| |||||||
688,557 | ||||||||
|
| |||||||
Communication services 10.57% |
| |||||||
Alphabet Inc., Class A2 | 116,500 | 121,738 | ||||||
Alphabet Inc., Class C2 | 71,052 | 73,582 | ||||||
Nintendo Co., Ltd.1 | 345,600 | 92,022 | ||||||
Naspers Ltd., Class N | 379,000 | 76,189 | ||||||
Tencent Holdings Ltd. | 1,800,000 | 72,179 | ||||||
Facebook, Inc., Class A2 | 408,000 | 53,485 | ||||||
SoftBank Group Corp.1 | 776,000 | 51,643 | ||||||
Other securities | 40,753 | |||||||
|
| |||||||
581,591 | ||||||||
|
| |||||||
Financials 10.39% |
| |||||||
AIA Group Ltd. | 15,004,900 | 124,554 | ||||||
JPMorgan Chase & Co. | 853,600 | 83,328 | ||||||
Kotak Mahindra Bank Ltd. | 3,471,000 | 62,470 | ||||||
MarketAxess Holdings Inc. | 211,000 | 44,586 | ||||||
Société Générale | 1,234,350 | 39,345 | ||||||
Other securities | 217,484 | |||||||
|
| |||||||
571,767 | ||||||||
|
|
46 American Funds Insurance Series
Table of Contents
Global Growth Fund
Common stocks
Shares | Value (000) | |||||||
Consumer staples 6.94% | ||||||||
Nestlé SA1 | 739,650 | $60,038 | ||||||
Coca-Cola European Partners PLC | 1,194,500 | 54,768 | ||||||
British American Tobacco PLC | 1,710,800 | 54,514 | ||||||
Philip Morris International Inc. | 602,200 | 40,203 | ||||||
Other securities | 172,025 | |||||||
|
| |||||||
381,548 | ||||||||
|
| |||||||
Industrials 6.15% | ||||||||
Airbus SE,non-registered shares | 1,093,500 | 105,192 | ||||||
Other securities | 233,387 | |||||||
|
| |||||||
338,579 | ||||||||
|
| |||||||
Materials 2.82% | ||||||||
Sherwin-Williams Co. | 155,500 | 61,183 | ||||||
Other securities | 94,160 | |||||||
|
| |||||||
155,343 | ||||||||
|
| |||||||
Energy 2.66% | ||||||||
Royal Dutch Shell PLC, Class B | 1,042,000 | 31,078 | ||||||
Other securities | 115,155 | |||||||
|
| |||||||
146,233 | ||||||||
|
| |||||||
Total common stocks (cost: $3,929,871,000) | 5,192,543 | |||||||
|
|
Short-term securities 5.35%
Principal amount (000) | ||||||||
Federal Home Loan Bank 2.15%–2.29% due 1/2/2019–1/10/2019 | $ | 60,100 | 60,080 | |||||
Nestle Capital Corp. 2.68% due 3/19/20193 | 40,000 | 39,778 | ||||||
Toronto-Dominion Bank 2.65% due 2/20/20193 | 50,000 | 49,815 | ||||||
U.S. Treasury Bills 2.37% due 2/12/2019 | 50,000 | 49,868 | ||||||
Other securities | 94,832 | |||||||
|
| |||||||
Total short-term securities (cost: $294,370,000) | 294,373 | |||||||
|
| |||||||
Total investment securities 99.72% (cost: $4,224,241,000) | 5,486,916 | |||||||
Other assets less liabilities 0.28% | 15,237 | |||||||
|
| |||||||
Net assets 100.00% | $ | 5,502,153 | ||||||
|
|
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
1 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $1,042,869,000, which represented 18.95% of the net assets of the fund. This amount includes $1,012,346,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Security did not produce income during the last 12 months. |
3 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $168,168,000, which represented 3.06% of the net assets of the fund. |
Key to abbreviation
ADR = American Depositary Receipts
See notes to financial statements
American Funds Insurance Series 47
Table of Contents
Global Small Capitalization Fund
Summary investment portfolioDecember 31, 2018
Common stocks 88.97%
Shares | Value (000) | |||||||
Health care 21.25% | ||||||||
GW Pharmaceuticals PLC (ADR)1 | 823,718 | $80,222 | ||||||
Insulet Corp.1 | 860,355 | 68,243 | ||||||
Allakos Inc.1,2 | 886,580 | 46,341 | ||||||
Molina Healthcare, Inc.1 | 381,000 | 44,280 | ||||||
iRhythm Technologies, Inc.1 | 614,905 | 42,724 | ||||||
Integra LifeSciences Holdings Corp.1 | 926,365 | 41,779 | ||||||
Evolent Health, Inc., Class A1 | 1,545,000 | 30,823 | ||||||
Illumina, Inc.1 | 100,200 | 30,053 | ||||||
NuCana PLC (ADR)1,2,3 | 2,067,724 | 29,982 | ||||||
China Biologic Products Holdings, Inc.1,2 | 360,000 | 27,328 | ||||||
Haemonetics Corp.1 | 242,825 | 24,295 | ||||||
CONMED Corp. | 332,500 | 21,346 | ||||||
Other securities | 289,222 | |||||||
|
| |||||||
776,638 | ||||||||
|
| |||||||
Information technology 15.61% | ||||||||
Paycom Software, Inc.1 | 428,885 | 52,517 | ||||||
Mellanox Technologies, Ltd.1 | 389,200 | 35,954 | ||||||
Qorvo, Inc.1 | 510,300 | 30,991 | ||||||
Cree, Inc.1 | 711,507 | 30,435 | ||||||
HubSpot, Inc.1 | 229,100 | 28,805 | ||||||
Ceridian HCM Holding Inc.1,2 | 801,777 | 27,653 | ||||||
Other securities | 363,983 | |||||||
|
| |||||||
570,338 | ||||||||
|
| |||||||
Industrials 14.49% | ||||||||
International Container Terminal Services, Inc.4 | 22,581,620 | 42,947 | ||||||
Nihon M&A Center Inc.4 | 1,667,392 | 33,670 | ||||||
frontdoor, inc.1 | 903,000 | 24,029 | ||||||
Bravida Holding AB4 | 3,229,000 | 22,319 | ||||||
Other securities | 406,656 | |||||||
|
| |||||||
529,621 | ||||||||
|
| |||||||
Consumer discretionary 13.40% | ||||||||
Five Below, Inc.1 | 423,000 | 43,281 | ||||||
Melco International Development Ltd. | 15,579,000 | 31,753 | ||||||
Mattel, Inc.1,2 | 2,583,800 | 25,812 | ||||||
Domino’s Pizza, Inc. | 100,000 | 24,799 | ||||||
ServiceMaster Global Holdings, Inc.1 | 658,750 | 24,202 | ||||||
Cedar Fair, LP | 500,000 | 23,650 | ||||||
Hilton Grand Vacations Inc.1 | 851,000 | 22,458 | ||||||
Other securities | 293,641 | |||||||
|
| |||||||
489,596 | ||||||||
|
| |||||||
Financials 8.66% | ||||||||
Kotak Mahindra Bank Ltd. | 3,135,263 | 56,427 | ||||||
Essent Group Ltd.1 | 1,018,841 | 34,824 | ||||||
Trupanion, Inc.1,2 | 1,140,800 | 29,045 | ||||||
Cannae Holdings, Inc.1 | 1,625,000 | 27,820 | ||||||
Bharat Financial Inclusion Ltd.1 | 1,897,444 | 27,523 | ||||||
Other securities | 140,992 | |||||||
|
| |||||||
316,631 | ||||||||
|
| |||||||
Materials 3.90% | ||||||||
Lundin Mining Corp. | 6,820,000 | 28,175 | ||||||
Allegheny Technologies Inc.1 | 1,200,950 | 26,145 | ||||||
Other securities | 88,349 | |||||||
|
| |||||||
142,669 | ||||||||
|
| |||||||
48 American Funds Insurance Series
Table of Contents
Global Small Capitalization Fund
Common stocks
Shares | Value (000) | |||||||
Consumer staples 3.31% | ||||||||
Other securities | $ | 120,907 | ||||||
|
| |||||||
Communication services 2.54% | ||||||||
Entertainment One Ltd. | 5,114,389 | 23,246 | ||||||
Other securities | 69,377 | |||||||
|
| |||||||
92,623 | ||||||||
|
| |||||||
Energy 2.13% | ||||||||
Other securities | 77,770 | |||||||
|
| |||||||
Real estate 2.02% | ||||||||
WHA Corp. PCL4 | 229,577,250 | 30,221 | ||||||
MGM Growth Properties LLC REIT, Class A | 892,500 | 23,571 | ||||||
Other securities | 19,934 | |||||||
|
| |||||||
73,726 | ||||||||
|
| |||||||
Utilities 1.66% | ||||||||
ENN Energy Holdings Ltd. | 4,686,900 | 41,569 | ||||||
Other securities | 19,216 | |||||||
|
| |||||||
60,785 | ||||||||
|
| |||||||
Total common stocks(cost: $2,973,377,000) | 3,251,304 | |||||||
|
| |||||||
Bonds, notes & other debt instruments 0.13% | Principal amount (000) | |||||||
U.S. Treasury bonds & notes 0.13% | ||||||||
U.S. Treasury 0.13% | ||||||||
Other securities | 4,989 | |||||||
|
| |||||||
Total bonds, notes & other debt instruments (cost: $4,991,000) | 4,989 | |||||||
|
| |||||||
Short-term securities 12.25% | ||||||||
Commercial paper 8.31% | ||||||||
National Australia Bank Ltd. 2.34% due 1/16/20195 | $40,000 | 39,957 | ||||||
Sumitomo Mitsui Banking Corp. 2.57% due 2/15/20195 | 50,000 | 49,838 | ||||||
Canadian Imperial Bank of Commerce 2.56% due 1/15/20195 | 32,000 | 31,968 | ||||||
ExxonMobil Corp. 2.36% due 1/4/2019 | 50,000 | 49,987 | ||||||
Mizuho Bank, Ltd. 2.50% due 2/1/20195 | 62,400 | 62,261 | ||||||
United Overseas Bank Ltd. 2.71% due 3/4/20195 | 50,000 | 49,764 | ||||||
Other securities | 19,894 | |||||||
|
| |||||||
303,669 | ||||||||
|
| |||||||
Shares | ||||||||
Money market investments 1.49% | ||||||||
Fidelity Institutional Money Market Funds—Government Portfolio6 | 6,646 | 6,646 | ||||||
Goldman Sachs Financial Square Government Fund6 | 16,023 | 16,023 | ||||||
Invesco Short-Term Investments Trust—Government & Agency Portfolio6 | 29,254 | 29,254 | ||||||
Morgan Stanley Institutional Liquidity Funds—Government Portfolio6 | 2,513 | 2,513 | ||||||
|
| |||||||
54,436 | ||||||||
|
|
American Funds Insurance Series 49
Table of Contents
Global Small Capitalization Fund
Short-term securities (continued)
Principal amount (000) | Value (000) | |||||||
Bonds & notes of governments & government agencies outside the U.S. 1.00% | ||||||||
KfW 2.43% due 1/11/20195 | $ | 28,600 | $ | 28,579 | ||||
Other securities | 7,888 | |||||||
|
| |||||||
36,467 | ||||||||
|
| |||||||
Federal agency discount notes 0.82% | ||||||||
Federal Home Loan Bank 2.29% due 1/10/2019 | 30,000 | 29,984 | ||||||
|
| |||||||
U.S. Treasury bonds & notes 0.63% | ||||||||
U.S. Treasury Bills 2.35% due 2/7/2019 | 23,100 | 23,046 | ||||||
|
| |||||||
Total short-term securities (cost: $447,616,000) | 447,602 | |||||||
|
| |||||||
Total investment securities 101.35% (cost: $3,425,984,000) | 3,703,895 | |||||||
Other assets less liabilities (1.35)% | (49,381 | ) | ||||||
|
| |||||||
Net assets 100.00% | $ | 3,654,514 | ||||||
|
|
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. One security in “Other securities” (with a value of $16,560,000, an aggregate cost of $8,280,000, and which represented .45% of the net assets of the fund) was acquired on 5/1/2015 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject it to legal or contractual restrictions on resale.
Investments in affiliates
A company is an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings in that company represent 5% or more of the outstanding voting shares. The value of the fund’s holdings in affiliated companies is included in “Other securities” under the respective industry sectors in the summary investment portfolio. Further details on these holdings and related transactions during the year ended December 31, 2018, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized gain (000) | Net unrealized depreciation (000) | Dividend income (000) | Value of affiliates at 12/31/2018 (000) | |||||||||||||||||||||||||
Common stocks 0.82% | ||||||||||||||||||||||||||||||||
Health care 0.82% |
| |||||||||||||||||||||||||||||||
NuCana PLC (ADR)1,2 | 416,620 | 1,651,104 | — | 2,067,724 | $ | — | $ | (13,335 | ) | $ | — | $ | 29,982 | |||||||||||||||||||
Consumer discretionary 0.00% |
| |||||||||||||||||||||||||||||||
Hostelworld Group PLC7 | 6,212,000 | — | 6,212,000 | — | 2,632 | (6,656 | ) | 437 | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Total 0.82% | $ | 2,632 | $ | (19,991 | ) | $ | 437 | $ | 29,982 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
50 American Funds Insurance Series
Table of Contents
Global Small Capitalization Fund
1 | Security did not produce income during the last 12 months. |
2 | All or a portion of this security was on loan. The total value of all such securities, including those in “Other securities,” was $67,607,000, which represented 1.85% of the net assets of the fund. Refer to Note 5 for more information on securities lending. |
3 | Represents an affiliated company as defined under the Investment Company Act of 1940. |
4 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $729,211,000, which represented 19.95% of the net assets of the fund. This amount includes $697,427,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
5 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $309,041,000, which represented 8.46% of the net assets of the fund. |
6 | Security purchased with cash collateral from securities on loan. Refer to Note 5 for more information on securities lending. |
7 | Unaffiliated issuer at 12/31/2018. |
Key to abbreviation
ADR = American Depositary Receipts
See notes to financial statements
American Funds Insurance Series 51
Table of Contents
Summary investment portfolioDecember 31, 2018
Common stocks 91.48%
Shares | Value (000) | |||||||
Information technology 21.29% | ||||||||
Microsoft Corp. | 10,468,400 | $ | 1,063,275 | |||||
Broadcom Inc. | 3,414,000 | 868,112 | ||||||
ASML Holding NV (New York registered) | 1,278,400 | 198,944 | ||||||
ASML Holding NV | 985,000 | 154,794 | ||||||
Visa Inc., Class A | 2,650,400 | 349,694 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 31,814,000 | 231,687 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 2,419,592 | 89,307 | ||||||
ServiceNow, Inc.2 | 1,653,000 | 294,317 | ||||||
Intel Corp. | 4,769,400 | 223,828 | ||||||
Workday, Inc., Class A2 | 1,123,000 | 179,321 | ||||||
Samsung Electronics Co., Ltd.1 | 3,901,400 | 134,758 | ||||||
Paycom Software, Inc.2 | 1,028,500 | 125,940 | ||||||
RingCentral, Inc., Class A2 | 1,433,100 | 118,145 | ||||||
Other securities | 958,728 | |||||||
|
| |||||||
4,990,850 | ||||||||
|
| |||||||
Health care 16.77% | ||||||||
UnitedHealth Group Inc. | 3,377,000 | 841,278 | ||||||
Regeneron Pharmaceuticals, Inc.2 | 1,341,000 | 500,864 | ||||||
Intuitive Surgical, Inc.2 | 940,500 | 450,424 | ||||||
Humana Inc. | 1,056,200 | 302,580 | ||||||
Centene Corp.2 | 2,014,700 | 232,295 | ||||||
Vertex Pharmaceuticals Inc.2 | 1,400,900 | 232,143 | ||||||
Boston Scientific Corp.2 | 4,791,000 | 169,314 | ||||||
Cigna Corp. | 739,902 | 140,522 | ||||||
Thermo Fisher Scientific Inc. | 622,100 | 139,220 | ||||||
Other securities | 924,343 | |||||||
|
| |||||||
3,932,983 | ||||||||
|
| |||||||
Communication services 13.53% | ||||||||
Facebook, Inc., Class A2 | 7,518,400 | 985,587 | ||||||
Alphabet Inc., Class C2 | 532,700 | 551,670 | ||||||
Alphabet Inc., Class A2 | 157,500 | 164,581 | ||||||
Netflix, Inc.2 | 2,401,060 | 642,668 | ||||||
Charter Communications, Inc., Class A2 | 997,380 | 284,223 | ||||||
Comcast Corp., Class A | 7,616,400 | 259,339 | ||||||
Activision Blizzard, Inc. | 3,895,800 | 181,427 | ||||||
Other securities | 103,032 | |||||||
|
| |||||||
3,172,527 | ||||||||
|
| |||||||
Consumer discretionary 13.10% | ||||||||
Amazon.com, Inc.2 | 531,016 | 797,570 | ||||||
Tesla, Inc.2 | 1,813,000 | 603,366 | ||||||
Home Depot, Inc. | 2,568,237 | 441,274 | ||||||
NIKE, Inc., Class B | 2,479,800 | 183,852 | ||||||
Ulta Beauty, Inc.2 | 700,000 | 171,388 | ||||||
Other securities | 875,296 | |||||||
|
| |||||||
3,072,746 | ||||||||
|
| |||||||
Financials 9.72% | ||||||||
Wells Fargo & Co. | 7,294,754 | 336,142 | ||||||
Berkshire Hathaway Inc., Class A2 | 410 | 125,460 | ||||||
BlackRock, Inc. | 494,000 | 194,053 | ||||||
JPMorgan Chase & Co. | 1,683,000 | 164,294 | ||||||
PNC Financial Services Group, Inc. | 1,133,600 | 132,529 | ||||||
Intercontinental Exchange, Inc. | 1,699,900 | 128,054 | ||||||
Goldman Sachs Group, Inc. | 752,400 | 125,688 | ||||||
Legal & General Group PLC | 40,158,246 | 118,239 | ||||||
Other securities | 955,543 | |||||||
|
| |||||||
2,280,002 | ||||||||
|
|
52 American Funds Insurance Series
Table of Contents
Growth Fund
Common stocks
Shares | Value (000) | |||||||
Industrials 5.14% | ||||||||
TransDigm Group Inc.2 | 717,100 | $ | 243,857 | |||||
MTU Aero Engines AG1 | 751,103 | 136,234 | ||||||
Other securities | 824,453 | |||||||
|
| |||||||
1,204,544 | ||||||||
|
| |||||||
Energy 5.04% | ||||||||
Concho Resources Inc.2 | 2,421,560 | 248,912 | ||||||
EOG Resources, Inc. | 2,182,000 | 190,292 | ||||||
Diamondback Energy, Inc. | 1,189,000 | 110,220 | ||||||
Other securities | 632,511 | |||||||
|
| |||||||
1,181,935 | ||||||||
|
| |||||||
Materials 2.68% | ||||||||
Linde PLC | 705,000 | 110,008 | ||||||
Other securities | 519,044 | |||||||
|
| |||||||
629,052 | ||||||||
|
| |||||||
Consumer staples 2.22% | ||||||||
Costco Wholesale Corp. | 627,500 | 127,828 | ||||||
Other securities | 391,450 | |||||||
|
| |||||||
519,278 | ||||||||
|
| |||||||
Real estate 1.59% | ||||||||
Equinix, Inc. REIT | 433,500 | 152,835 | ||||||
Other securities | 218,914 | |||||||
|
| |||||||
371,749 | ||||||||
|
| |||||||
Utilities 0.40% | ||||||||
Other securities | 94,291 | |||||||
|
| |||||||
Total common stocks (cost: $14,970,485,000) | 21,449,957 | |||||||
|
| |||||||
Convertible stocks 0.06% | ||||||||
Consumer discretionary 0.06% | ||||||||
Other securities | 13,104 | |||||||
|
| |||||||
Total convertible stocks (cost: $10,650,000) | 13,104 | |||||||
|
|
Short-term securities 8.29%
Principal amount (000) | ||||||||
Federal Home Loan Bank 2.22%–2.39% due 1/7/2019–2/21/2019 | $728,800 | 727,650 | ||||||
U.S. Treasury Bills 2.16%–2.43% due 1/2/2019–5/2/2019 | 689,200 | 686,594 | ||||||
Other securities | 530,171 | |||||||
|
| |||||||
Total short-term securities (cost: $1,944,441,000) | 1,944,415 | |||||||
|
| |||||||
Total investment securities 99.83% (cost: $16,925,576,000) | 23,407,476 | |||||||
Other assets less liabilities 0.17% | 40,385 | |||||||
|
| |||||||
Net assets 100.00% | $ | 23,447,861 | ||||||
|
|
American Funds Insurance Series 53
Table of Contents
Growth Fund
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. Some securities in “Other securities” (with an aggregate value of $50,104,000, an aggregate cost of $47,650,000, and which represented .21% of the net assets of the fund) were acquired from 5/22/2015 to 12/21/2018 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject them to legal or contractual restrictions on resale. “Other securities“ also includes securities (with an aggregate value of $427,632,000, which represented 1.82% of the net assets of the fund) which were acquired in transactions exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933 and may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers.
1 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $819,772,000, which represented 3.50% of the net assets of the fund. This amount includes $719,983,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Security did not produce income during the last 12 months. |
Key to abbreviation
ADR = American Depositary Receipts
See notes to financial statements
54 American Funds Insurance Series
Table of Contents
Summary investment portfolioDecember 31, 2018
Common stocks 88.00%
Shares | Value (000) | |||||||
Financials 15.22% | ||||||||
AIA Group Ltd. | 40,985,700 | $340,217 | ||||||
HDFC Bank Ltd. | 7,804,100 | 237,169 | ||||||
HDFC Bank Ltd. (ADR) | 498,647 | 51,655 | ||||||
Kotak Mahindra Bank Ltd. | 6,186,048 | 111,334 | ||||||
Axis Bank Ltd.1 | 7,399,300 | 65,700 | ||||||
Axis Bank Ltd.1,2,3,4 | 3,222,055 | 26,034 | ||||||
Prudential PLC | 3,810,265 | 68,089 | ||||||
Credit Suisse Group AG2 | 5,523,789 | 60,403 | ||||||
Other securities | 411,019 | |||||||
|
| |||||||
1,371,620 | ||||||||
|
| |||||||
Industrials 13.93% | ||||||||
Airbus SE,non-registered shares | 2,926,849 | 281,555 | ||||||
Yamato Holdings Co., Ltd.2 | 4,239,395 | 116,573 | ||||||
Rolls-Royce Holdings PLC1 | 10,833,188 | 114,606 | ||||||
Adani Ports & Special Economic Zone Ltd. | 14,643,483 | 81,319 | ||||||
SMC Corp.2 | 266,100 | 80,325 | ||||||
Ryanair Holdings PLC (ADR)1 | 991,700 | 70,748 | ||||||
Melrose Industries PLC | 33,132,733 | 69,196 | ||||||
Safran SA | 549,000 | 66,298 | ||||||
Other securities | 374,728 | |||||||
|
| |||||||
1,255,348 | ||||||||
|
| |||||||
Health care 12.21% | ||||||||
Novartis AG2 | 3,279,000 | 280,111 | ||||||
Shire PLC | 3,360,150 | 195,726 | ||||||
Teva Pharmaceutical Industries Ltd. (ADR) | 7,166,598 | 110,509 | ||||||
Grifols, SA, Class B, preferred nonvoting,non-registered shares | 3,026,230 | 55,962 | ||||||
Grifols, SA, Class A,non-registered shares | 881,000 | 23,116 | ||||||
Grifols, SA, Class B (ADR) | 793,690 | 14,572 | ||||||
Fresenius SE & Co. KGaA2 | 1,819,000 | 88,503 | ||||||
Chugai Pharmaceutical Co., Ltd.2 | 1,434,500 | 83,302 | ||||||
Daiichi Sankyo Co., Ltd.2 | 2,160,000 | 69,011 | ||||||
Hikma Pharmaceuticals PLC | 2,761,980 | 60,410 | ||||||
Other securities | 118,954 | |||||||
|
| |||||||
1,100,176 | ||||||||
|
| |||||||
Consumer discretionary 10.25% | ||||||||
Alibaba Group Holding Ltd. (ADR)1 | 1,104,000 | 151,325 | ||||||
Galaxy Entertainment Group Ltd. | 18,284,000 | 116,282 | ||||||
Kering SA | 176,551 | 83,260 | ||||||
Hyundai Motor Co.2 | 682,393 | 72,333 | ||||||
Industria de Diseño Textil, SA | 2,566,027 | 65,710 | ||||||
Ryohin Keikaku Co., Ltd.2 | 248,400 | 59,976 | ||||||
Other securities | 374,282 | |||||||
|
| |||||||
923,168 | ||||||||
|
| |||||||
Consumer staples 6.67% | ||||||||
Pernod Ricard SA | 929,337 | 152,584 | ||||||
Nestlé SA2 | 1,003,500 | 81,454 | ||||||
Kirin Holdings Co., Ltd.2 | 3,139,000 | 65,793 | ||||||
British American Tobacco PLC | 1,862,200 | 59,339 | ||||||
Other securities | 242,250 | |||||||
|
| |||||||
601,420 | ||||||||
|
| |||||||
Communication services 6.52% | ||||||||
Tencent Holdings Ltd. | 4,992,087 | 200,181 | ||||||
SoftBank Group Corp.2 | 1,283,900 | 85,443 | ||||||
Nintendo Co., Ltd.2 | 216,239 | 57,577 | ||||||
Other securities | 243,972 | |||||||
|
| |||||||
587,173 | ||||||||
|
|
American Funds Insurance Series 55
Table of Contents
International Fund
Common stocks (continued)
Shares | Value (000) | |||||||
Information technology 5.65% | ||||||||
Samsung Electronics Co., Ltd.2 | 4,945,950 | $ | 170,838 | |||||
ASML Holding NV | 507,174 | 79,703 | ||||||
Other securities | 258,653 | |||||||
|
| |||||||
509,194 | ||||||||
|
| |||||||
Materials 5.65% | ||||||||
Asahi Kasei Corp.2 | 11,328,780 | 116,444 | ||||||
Vale SA, ordinary nominative (ADR) | 6,875,266 | 90,685 | ||||||
Vale SA, ordinary nominative | 102,481 | 1,348 | ||||||
Teck Resources Ltd., Class B | 3,152,000 | 67,856 | ||||||
Other securities | 232,548 | |||||||
|
| |||||||
508,881 | ||||||||
|
| |||||||
Utilities 5.31% | ||||||||
ENN Energy Holdings Ltd. | 14,004,000 | 124,204 | ||||||
China Gas Holdings Ltd. | 24,134,000 | 85,989 | ||||||
Ørsted AS2 | 1,235,208 | 82,426 | ||||||
Other securities | 185,495 | |||||||
|
| |||||||
478,114 | ||||||||
|
| |||||||
Energy 4.58% | ||||||||
Royal Dutch Shell PLC, Class B | 3,191,000 | 95,174 | ||||||
Royal Dutch Shell PLC, Class A | 1,440,256 | 42,360 | ||||||
Other securities | 274,769 | |||||||
|
| |||||||
412,303 | ||||||||
|
| |||||||
Real estate 2.01% | ||||||||
China Overseas Land & Investment Ltd. | 19,930,217 | 68,466 | ||||||
Other securities | 112,771 | |||||||
|
| |||||||
181,237 | ||||||||
|
| |||||||
Total common stocks (cost: $7,462,877,000) | 7,928,634 | |||||||
|
| |||||||
Rights & warrants 0.14% | ||||||||
Financials 0.07% | ||||||||
Axis Bank Ltd., warrants, expire 20191,2 | 2,466,000 | 6,664 | ||||||
Other securities | — | |||||||
|
| |||||||
6,664 | ||||||||
|
| |||||||
Real estate 0.07% | ||||||||
Other securities | 6,382 | |||||||
|
| |||||||
Total rights & warrants (cost: $13,714,000) | 13,046 | |||||||
|
| |||||||
Principal amount (000) | ||||||||
Bonds, notes & other debt instruments 0.87% | ||||||||
Corporate bonds & notes 0.50% | ||||||||
Other 0.50% | ||||||||
Other securities | 44,890 | |||||||
|
| |||||||
Total corporate bonds & notes | 44,890 | |||||||
|
| |||||||
Bonds & notes of governments & government agencies outside the U.S. 0.37% | ||||||||
Other securities | 33,018 | |||||||
|
| |||||||
Total bonds, notes & other debt instruments (cost: $70,215,000) | 77,908 | |||||||
|
|
56 American Funds Insurance Series
Table of Contents
International Fund
Short-term securities 10.84%
Principal amount (000) | Value (000) | |||||||
Canadian Imperial Bank of Commerce 2.31%–2.50% due 1/22/2019–1/25/20194 | $ | 100,000 | $ | 99,839 | ||||
Federal Home Loan Bank 2.15%–2.41% due 1/2/2019–3/21/2019 | 314,475 | 313,688 | ||||||
Mizuho Bank, Ltd. 2.61% due 2/25/20194 | 75,000 | 74,694 | ||||||
Siemens Capital Co. LLC 2.50% due 2/19/20194 | 55,000 | 54,808 | ||||||
U.S. Treasury Bill 2.38% due 2/19/2019 | 125,000 | 124,608 | ||||||
Other securities | 309,216 | |||||||
|
| |||||||
Total short-term securities (cost: $976,875,000) | 976,853 | |||||||
|
| |||||||
Total investment securities 99.85% (cost: $8,523,681,000) | 8,996,441 | |||||||
Other assets less liabilities 0.15% | 13,669 | |||||||
|
| |||||||
Net assets 100.00% | $ | 9,010,110 | ||||||
|
|
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
Forward currency contracts
Contract amount | Unrealized depreciation | |||||||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | at 12/31/2018 (000) | ||||||||||
USD 39,858 | INR 2,825,000 | Goldman Sachs | 1/17/2019 | $ | (525 | ) |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Security did not produce income during the last 12 months. |
2 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $2,613,221,000, which represented 29.00% of the net assets of the fund. This amount includes $2,569,796,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
3 | Acquired through a private placement transaction exempt from registration under the Securities Act of 1933. May be subject to legal or contractual restrictions on resale. Further details on this holding appear below. |
4 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $462,479,000, which represented 5.13% of the net assets of the fund. |
Private placement security | Acquisition date | Cost (000) | Value (000) | Percent of net | ||||||||
Axis Bank Ltd. | 11/14/2017 | $ | 17,232 | $ | 26,034 | .29% |
Key to abbreviations and symbol
ADR = American Depositary Receipts
INR = Indian rupees
USD/$ = U.S. dollars
See notes to financial statements
American Funds Insurance Series 57
Table of Contents
Summary investment portfolioDecember 31, 2018
Common stocks 79.74%
Shares | Value (000) | |||||||
Information technology 16.77% | ||||||||
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 9,901,000 | $ | 72,104 | |||||
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 400,000 | 14,764 | ||||||
PagSeguro Digital Ltd., Class A2 | 2,813,223 | 52,692 | ||||||
Broadcom Inc. | 167,150 | 42,503 | ||||||
Temenos AG1 | 204,800 | 24,564 | ||||||
Microsoft Corp. | 232,100 | 23,574 | ||||||
StoneCo Ltd., Class A2 | 1,275,126 | 23,513 | ||||||
Kingdee International Software Group Co. Ltd. | 22,463,000 | 19,851 | ||||||
Keyence Corp.1 | 38,300 | 19,434 | ||||||
EPAM Systems, Inc.2 | 167,200 | 19,397 | ||||||
Visa Inc., Class A | 132,000 | 17,416 | ||||||
Murata Manufacturing Co., Ltd.1 | 123,800 | 16,783 | ||||||
Other securities | 158,420 | |||||||
|
| |||||||
505,015 | ||||||||
|
| |||||||
Financials 10.94% | ||||||||
HDFC Bank Ltd. | 2,688,876 | 81,716 | ||||||
AIA Group Ltd. | 6,477,600 | 53,770 | ||||||
B3 SA - Brasil, Bolsa, Balcao | 6,435,200 | 44,515 | ||||||
IndusInd Bank Ltd. | 906,300 | 20,761 | ||||||
Shriram Transport Finance Co. Ltd. | 1,150,000 | 20,425 | ||||||
Sberbank of Russia PJSC (ADR) | 1,551,500 | 17,004 | ||||||
Other securities | 91,189 | |||||||
|
| |||||||
329,380 | ||||||||
|
| |||||||
Energy 9.73% | ||||||||
Reliance Industries Ltd. | 11,548,513 | 185,473 | ||||||
Royal Dutch Shell PLC, Class B | 1,284,000 | 38,296 | ||||||
Royal Dutch Shell PLC, Class A | 68,628 | 2,019 | ||||||
LUKOIL Oil Co. PJSC (ADR) | 303,000 | 21,658 | ||||||
Exxon Mobil Corp. | 32,000 | 2,182 | ||||||
Other securities | 43,261 | |||||||
|
| |||||||
292,889 | ||||||||
|
| |||||||
Consumer discretionary 9.40% | ||||||||
Alibaba Group Holding Ltd. (ADR)2 | 386,237 | 52,941 | ||||||
Sony Corp.1 | 767,000 | 37,102 | ||||||
General Motors Co. | 542,000 | 18,130 | ||||||
Other securities | 174,720 | |||||||
|
| |||||||
282,893 | ||||||||
|
| |||||||
Health care 8.35% | ||||||||
Yunnan Baiyao Group Co., Ltd., Class A1 | 2,730,912 | 29,419 | ||||||
BioMarin Pharmaceutical Inc.2 | 318,000 | 27,078 | ||||||
AstraZeneca PLC | 268,500 | 20,099 | ||||||
Other securities | 174,692 | |||||||
|
| |||||||
251,288 | ||||||||
|
| |||||||
Consumer staples 6.31% | ||||||||
British American Tobacco PLC | 1,529,000 | 48,722 | ||||||
JBS SA, ordinary nominative | 9,930,600 | 29,696 | ||||||
Nestlé SA1 | 258,196 | 20,958 | ||||||
Kweichow Moutai Co., Ltd., Class A1 | 225,899 | 19,388 | ||||||
Other securities | 71,102 | |||||||
|
| |||||||
189,866 | ||||||||
|
|
58 American Funds Insurance Series
Table of Contents
New World Fund
Common stocks (continued)
Shares | Value (000) | |||||||
Communication services 5.74% | ||||||||
Alphabet Inc., Class C2 | 47,300 | $ | 48,984 | |||||
Alphabet Inc., Class A2 | 16,900 | 17,660 | ||||||
Tencent Holdings Ltd. | 591,600 | 23,723 | ||||||
Facebook, Inc., Class A2 | 162,200 | 21,263 | ||||||
Other securities | 61,205 | |||||||
|
| |||||||
172,835 | ||||||||
|
| |||||||
Materials 5.59% | ||||||||
Vale SA, ordinary nominative | 3,595,086 | 47,307 | ||||||
Vale SA, ordinary nominative (ADR) | 395,000 | 5,210 | ||||||
First Quantum Minerals Ltd. | 3,305,000 | 26,727 | ||||||
Other securities | 89,219 | |||||||
|
| |||||||
168,463 | ||||||||
|
| |||||||
Industrials 4.49% | ||||||||
Azul SA, preference shares (ADR)2 | 866,446 | 23,992 | ||||||
Azul SA, preference shares2 | 838,500 | 7,788 | ||||||
Airbus SE,non-registered shares | 280,229 | 26,957 | ||||||
Nidec Corp.1 | 151,400 | 17,171 | ||||||
Other securities | 59,384 | |||||||
|
| |||||||
135,292 | ||||||||
|
| |||||||
Real estate 1.34% | ||||||||
American Tower Corp. REIT | 176,800 | 27,968 | ||||||
Other securities | 12,440 | |||||||
|
| |||||||
40,408 | ||||||||
|
| |||||||
Utilities 1.08% | ||||||||
Other securities | 32,453 | |||||||
|
| |||||||
Total common stocks (cost: $2,216,498,000) | 2,400,782 | |||||||
|
| |||||||
Rights & warrants 0.11% | ||||||||
Consumer staples 0.11% | ||||||||
Other securities | 3,502 | |||||||
|
| |||||||
Total rights & warrants (cost: $3,452,000) | 3,502 | |||||||
|
| |||||||
Principal amount (000) | ||||||||
Bonds, notes & other debt instruments 3.09% | ||||||||
Bonds & notes of governments & government agencies outside the U.S. 2.61% | ||||||||
Other securities | 78,507 | |||||||
|
| |||||||
Corporate bonds & notes 0.48% | ||||||||
Other 0.48% | ||||||||
Other securities | 14,360 | |||||||
|
| |||||||
Total corporate bonds & notes | 14,360 | |||||||
|
| |||||||
Total bonds, notes & other debt instruments (cost: $97,609,000) | 92,867 | |||||||
|
| |||||||
Short-term securities 16.68% | ||||||||
American Honda Finance Corp. 2.35% due 1/10/2019 | $ | 25,000 | 24,983 | |||||
ANZ New Zealand (International) Ltd. 2.72% due 3/13/20193 | 20,000 | 19,893 | ||||||
Bank of Nova Scotia 2.62% due 2/19/20193 | 50,000 | 49,820 | ||||||
Colgate-Palmolive Co. 2.39% due 1/14/20193 | 20,000 | 19,981 | ||||||
Commonwealth Bank of Australia 2.50% due 1/23/20193 | 49,600 | 49,522 | ||||||
ExxonMobil Corp. 2.38% due 1/8/2019 | 40,000 | 39,979 | ||||||
Federal Home Loan Bank 2.37% due 2/22/2019 | 95,500 | 95,169 | ||||||
Mizuho Bank, Ltd. 2.51% due 2/1/20193 | 69,800 | 69,645 |
American Funds Insurance Series 59
Table of Contents
New World Fund
Short-term securities (continued)
Principal amount (000) | Value (000) | |||||||
Swedbank AB 2.56% due 2/1/2019 | $ | 88,900 | $ | 88,705 | ||||
Toronto-Dominion Bank 2.39% due 1/7/20193 | 21,100 | 21,090 | ||||||
Other securities | 23,530 | |||||||
|
| |||||||
Total short-term securities (cost: $502,291,000) | 502,317 | |||||||
|
| |||||||
Total investment securities 99.62% (cost: $2,819,850,000) | 2,999,468 | |||||||
Other assets less liabilities 0.38% | 11,411 | |||||||
|
| |||||||
Net assets 100.00% | $ | 3,010,879 | ||||||
|
|
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
Forward currency contracts
Contract amount | Counterparty | Settlement date | Unrealized (depreciation) | |||||||||||||
Purchases (000) | Sales (000) | at 12/31/2018 (000) | ||||||||||||||
INR | 120,000 | USD | 1,673 | HSBC Bank | 1/10/2019 | $ | 44 | |||||||||
USD | 1,689 | INR | 120,000 | Citibank | 1/10/2019 | (28 | ) | |||||||||
EUR | 590 | USD | 672 | Morgan Stanley | 1/14/2019 | 5 | ||||||||||
USD | 674 | EUR | 590 | JPMorgan Chase | 1/14/2019 | (2 | ) | |||||||||
INR | 112,350 | USD | 1,565 | HSBC Bank | 1/15/2019 | 41 | ||||||||||
USD | 1,586 | INR | 112,350 | HSBC Bank | 1/15/2019 | (20 | ) | |||||||||
EUR | 385 | USD | 439 | Morgan Stanley | 1/18/2019 | 3 | ||||||||||
USD | 439 | EUR | 385 | HSBC Bank | 1/18/2019 | (3 | ) | |||||||||
USD | 406 | EUR | 320 | Citibank | 3/6/2019 | 37 | ||||||||||
EUR | 320 | USD | 366 | Morgan Stanley | 3/6/2019 | 2 | ||||||||||
USD | 531 | EUR | 415 | Goldman Sachs | 3/8/2019 | 53 | ||||||||||
USD | 323 | EUR | 255 | Goldman Sachs | 3/8/2019 | 29 | ||||||||||
EUR | 670 | USD | 767 | Morgan Stanley | 3/8/2019 | 5 | ||||||||||
USD | 1,397 | EUR | 1,100 | JPMorgan Chase | 3/15/2019 | 128 | ||||||||||
EUR | 1,100 | USD | 1,259 | Morgan Stanley | 3/15/2019 | 9 | ||||||||||
|
| |||||||||||||||
$ | 303 | |||||||||||||||
|
|
1 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $486,458,000, which represented 16.16% of the net assets of the fund. This amount includes $463,432,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Security did not produce income during the last 12 months. |
3 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $277,296,000, which represented 9.21% of the net assets of the fund. |
Key to abbreviations and symbol
ADR = American Depositary Receipts
EUR = Euros
INR = Indian rupees
USD/$ = U.S. dollars
See notes to financial statements
60 American Funds Insurance Series
Table of Contents
Blue Chip Income and Growth Fund
Summary investment portfolioDecember 31, 2018
Common stocks 94.94%
Shares | Value (000) | |||||||
Health care 25.24% | ||||||||
AbbVie Inc. | 6,711,500 | $ | 618,733 | |||||
Abbott Laboratories | 5,764,000 | 416,910 | ||||||
Amgen Inc. | 1,416,510 | 275,752 | ||||||
Gilead Sciences, Inc. | 3,761,212 | 235,264 | ||||||
Teva Pharmaceutical Industries Ltd. (ADR) | 10,833,800 | 167,057 | ||||||
Medtronic PLC | 900,000 | 81,864 | ||||||
UnitedHealth Group Inc. | 211,000 | 52,564 | ||||||
Thermo Fisher Scientific Inc. | 209,600 | 46,907 | ||||||
Other securities | 132,401 | |||||||
|
| |||||||
2,027,452 | ||||||||
|
| |||||||
Information technology 13.45% | ||||||||
Microsoft Corp. | 2,612,000 | 265,301 | ||||||
Intel Corp. | 5,515,000 | 258,819 | ||||||
QUALCOMM Inc. | 3,845,300 | 218,836 | ||||||
Broadcom Inc. | 385,000 | 97,898 | ||||||
Texas Instruments Inc. | 780,000 | 73,710 | ||||||
Mastercard Inc., Class A | 337,000 | 63,575 | ||||||
Apple Inc. | 400,000 | 63,096 | ||||||
Other securities | 39,281 | |||||||
|
| |||||||
1,080,516 | ||||||||
|
| |||||||
Consumer staples 12.67% | ||||||||
Philip Morris International Inc. | 3,349,900 | 223,639 | ||||||
Coca-Cola Co. | 3,558,000 | 168,471 | ||||||
Altria Group, Inc. | 2,872,800 | 141,888 | ||||||
Costco Wholesale Corp. | 591,255 | 120,444 | ||||||
British American Tobacco PLC (ADR) | 3,723,112 | 118,618 | ||||||
Kimberly-Clark Corp. | 500,000 | 56,970 | ||||||
Kellogg Co. | 792,000 | 45,152 | ||||||
PepsiCo, Inc. | 400,000 | 44,192 | ||||||
Other securities | 98,359 | |||||||
|
| |||||||
1,017,733 | ||||||||
|
| |||||||
Energy 9.44% | ||||||||
EOG Resources, Inc. | 2,713,800 | 236,671 | ||||||
Exxon Mobil Corp. | 2,699,800 | 184,099 | ||||||
Royal Dutch Shell PLC, Class B (ADR) | 1,737,000 | 104,116 | ||||||
Halliburton Co. | 2,844,730 | 75,613 | ||||||
Canadian Natural Resources, Ltd. | 2,673,000 | 64,499 | ||||||
Noble Energy, Inc. | 2,862,000 | 53,691 | ||||||
Other securities | 39,514 | |||||||
|
| |||||||
758,203 | ||||||||
|
| |||||||
Communication services 9.11% | ||||||||
Alphabet Inc., Class A1 | 184,550 | 192,847 | ||||||
Alphabet Inc., Class C1 | 20,500 | 21,230 | ||||||
Verizon Communications Inc. | 3,306,480 | 185,890 | ||||||
Facebook, Inc., Class A1 | 1,089,000 | 142,757 | ||||||
CBS Corp., Class B | 2,886,400 | 126,194 | ||||||
Viacom Inc., Class B | 2,435,136 | 62,583 | ||||||
|
| |||||||
731,501 | ||||||||
|
| |||||||
Industrials 8.56% | ||||||||
General Dynamics Corp. | 1,206,000 | 189,595 | ||||||
CSX Corp. | 2,726,000 | 169,366 | ||||||
Illinois Tool Works Inc. | 650,000 | 82,349 | ||||||
Union Pacific Corp. | 400,000 | 55,292 |
American Funds Insurance Series 61
Table of Contents
Blue Chip Income and Growth Fund
Common stocks (continued)
Shares | Value (000) | |||||||
Industrials (continued) | ||||||||
United Technologies Corp. | 500,000 | $ | 53,240 | |||||
Northrop Grumman Corp. | 174,300 | 42,686 | ||||||
Other securities | 94,989 | |||||||
|
| |||||||
687,517 | ||||||||
|
| |||||||
Consumer discretionary 8.11% | ||||||||
Lowe’s Companies, Inc. | 3,111,572 | 287,385 | ||||||
Marriott International, Inc., Class A | 952,500 | 103,403 | ||||||
McDonald’s Corp. | 500,000 | 88,785 | ||||||
General Motors Co. | 1,752,800 | 58,631 | ||||||
Other securities | 112,783 | |||||||
|
| |||||||
650,987 | ||||||||
|
| |||||||
Financials 4.89% | ||||||||
JPMorgan Chase & Co. | 1,579,000 | 154,142 | ||||||
Charles Schwab Corp. | 2,655,000 | 110,262 | ||||||
U.S. Bancorp | 1,000,000 | 45,700 | ||||||
Other securities | 82,299 | |||||||
|
| |||||||
392,403 | ||||||||
|
| |||||||
Materials 1.68% | ||||||||
Linde PLC | 665,700 | 103,876 | ||||||
Other securities | 31,028 | |||||||
|
| |||||||
134,904 | ||||||||
|
| |||||||
Other 1.79% | ||||||||
Other securities | 143,876 | |||||||
|
| |||||||
Total common stocks (cost: $6,925,880,000) | 7,625,092 | |||||||
|
| |||||||
Rights & warrants 0.05% | ||||||||
Financials 0.05% | ||||||||
Other securities | 3,520 | |||||||
|
| |||||||
Total rights & warrants (cost: $10,088,000) | 3,520 | |||||||
|
| |||||||
Principal amount (000) | ||||||||
Short-term securities 4.85% | ||||||||
Coca-Cola Co. 2.40% due 1/23/20192 | $ | 15,000 | 14,976 | |||||
Federal Home Loan Bank 2.33%–2.36% due 1/18/2019–2/14/2019 | 154,500 | 154,194 | ||||||
U.S. Treasury Bills 2.24%–2.38% due 1/2/2019–2/19/2019 | 99,300 | 99,160 | ||||||
Other securities | 121,091 | |||||||
|
| |||||||
Total short-term securities (cost: $389,429,000) | 389,421 | |||||||
|
| |||||||
Total investment securities 99.84% (cost: $7,325,397,000) | 8,018,033 | |||||||
Other assets less liabilities 0.16% | 13,239 | |||||||
|
| |||||||
Net assets 100.00% | $ | 8,031,272 | ||||||
|
|
62 American Funds Insurance Series
Table of Contents
Blue Chip Income and Growth Fund
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
1 | Security did not produce income during the last 12 months. |
2 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $54,948,000, which represented .68% of the net assets of the fund. |
Key to abbreviation
ADR = American Depositary Receipts
See notes to financial statements
American Funds Insurance Series 63
Table of Contents
Summary investment portfolioDecember 31, 2018
Common stocks 91.72%
Shares | Value (000) | |||||||
Information technology 15.54% |
| |||||||
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 9,589,800 | $69,838 | ||||||
Microsoft Corp. | 416,000 | 42,253 | ||||||
Broadcom Inc. | 145,500 | 36,998 | ||||||
Murata Manufacturing Co., Ltd.1 | 170,000 | 23,046 | ||||||
Apple Inc. | 119,000 | 18,771 | ||||||
PagSeguro Digital Ltd., Class A2 | 998,752 | 18,707 | ||||||
Tableau Software, Inc., Class A2 | 104,000 | 12,480 | ||||||
ASML Holding NV | 70,000 | 11,001 | ||||||
Halma PLC | 610,000 | 10,605 | ||||||
Other securities | 38,430 | |||||||
|
| |||||||
282,129 | ||||||||
|
| |||||||
Health care 11.07% |
| |||||||
UnitedHealth Group Inc. | 272,825 | 67,966 | ||||||
Merck & Co., Inc. | 282,000 | 21,548 | ||||||
Hologic, Inc.2 | 400,000 | 16,440 | ||||||
Novartis AG1 | 148,000 | 12,643 | ||||||
AstraZeneca PLC | 167,000 | 12,501 | ||||||
Boston Scientific Corp.2 | 351,000 | 12,404 | ||||||
Centene Corp.2 | 101,000 | 11,645 | ||||||
Other securities | 45,961 | |||||||
|
| |||||||
201,108 | ||||||||
|
| |||||||
Financials 10.25% |
| |||||||
AIA Group Ltd. | 3,005,000 | 24,944 | ||||||
CME Group Inc., Class A | 75,000 | 14,109 | ||||||
HDFC Bank Ltd. | 444,000 | 13,493 | ||||||
DBS Group Holdings Ltd. | 705,000 | 12,254 | ||||||
Blackstone Group LP | 355,000 | 10,583 | ||||||
Ping An Insurance (Group) Co. of China, Ltd., Class H | 1,195,000 | 10,553 | ||||||
Other securities | 100,183 | |||||||
|
| |||||||
186,119 | ||||||||
|
| |||||||
Communication services 10.13% |
| |||||||
Nintendo Co., Ltd.1 | 289,000 | 76,951 | ||||||
Alphabet Inc., Class A2 | 26,500 | 27,691 | ||||||
Alphabet Inc., Class C2 | 9,000 | 9,321 | ||||||
Vivendi SA | 715,200 | 17,438 | ||||||
Other securities | 52,538 | |||||||
|
| |||||||
183,939 | ||||||||
|
| |||||||
Industrials 9.89% |
| |||||||
Airbus SE,non-registered shares | 589,200 | 56,679 | ||||||
Boeing Co. | 97,400 | 31,411 | ||||||
Safran SA | 143,000 | 17,269 | ||||||
Lockheed Martin Corp. | 45,000 | 11,783 | ||||||
CCR SA, ordinary nominative | 4,025,000 | 11,631 | ||||||
Other securities | 50,746 | |||||||
|
| |||||||
179,519 | ||||||||
|
| |||||||
Consumer discretionary 9.55% |
| |||||||
Home Depot, Inc. | 146,000 | 25,086 | ||||||
LVMH Moët Hennessy-Louis Vuitton SE | 56,200 | 16,626 | ||||||
Carnival Corp., units | 319,000 | 15,727 | ||||||
Alibaba Group Holding Ltd. (ADR)2 | 93,500 | 12,816 | ||||||
Daimler AG1 | 222,000 | 11,680 | ||||||
Norwegian Cruise Line Holdings Ltd.2 | 275,000 | 11,657 | ||||||
Other securities | 79,751 | |||||||
|
| |||||||
173,343 | ||||||||
|
|
64 American Funds Insurance Series
Table of Contents
Global Growth and Income Fund
Common stocks (continued)
Shares | Value (000) | |||||||
Materials 6.53% | ||||||||
Vale SA, ordinary nominative | 2,925,000 | $ 38,489 | ||||||
Vale SA, ordinary nominative (ADR) | 505,000 | 6,661 | ||||||
Other securities | 73,399 | |||||||
|
| |||||||
118,549 | ||||||||
|
| |||||||
Energy 6.04% | ||||||||
Reliance Industries Ltd. | 3,195,148 | 51,315 | ||||||
Royal Dutch Shell PLC, Class B | 450,000 | 13,422 | ||||||
Galp Energia, SGPS, SA, Class B | 708,000 | 11,190 | ||||||
Other securities | 33,752 | |||||||
|
| |||||||
109,679 | ||||||||
|
| |||||||
Consumer staples 5.58% | ||||||||
Nestlé SA1 | 488,700 | 39,668 | ||||||
British American Tobacco PLC | 937,000 | 29,858 | ||||||
Other securities | 31,809 | |||||||
|
| |||||||
101,335 | ||||||||
|
| |||||||
Real estate 3.69% | ||||||||
MGM Growth Properties LLC REIT, Class A | 676,200 | 17,858 | ||||||
Gaming and Leisure Properties, Inc. REIT | 425,000 | 13,732 | ||||||
Other securities | 35,494 | |||||||
|
| |||||||
67,084 | ||||||||
|
| |||||||
Utilities 3.45% | ||||||||
Ørsted AS1 | 491,552 | 32,802 | ||||||
Enel SPA1 | 2,780,000 | 16,066 | ||||||
Other securities | 13,861 | |||||||
|
| |||||||
62,729 | ||||||||
|
| |||||||
Total common stocks (cost: $1,481,838,000) | 1,665,533 | |||||||
|
| |||||||
Bonds, notes & other debt instruments 2.17% | ||||||||
Principal amount (000) | ||||||||
Corporate bonds & notes 2.17% | ||||||||
Communication services 1.87% | ||||||||
Sprint Corp. 7.25% 2021 | $ | 33,000 | 33,858 | |||||
|
| |||||||
Health care 0.30% | ||||||||
Other securities | 5,526 | |||||||
|
| |||||||
Total bonds, notes & other debt instruments (cost: $38,299,000) | 39,384 | |||||||
|
| |||||||
Short-term securities 5.89% | ||||||||
BASF SE 2.50% due 1/11/20193 | 15,000 | 14,989 | ||||||
Federal Home Loan Bank 2.15%–2.38% due 1/2/2019–2/19/2019 | 57,200 | 57,104 | ||||||
KfW 2.51% due 2/13/20193 | 25,000 | 24,922 | ||||||
Other securities | 9,999 | |||||||
|
| |||||||
Total short-term securities (cost: $107,023,000) | 107,014 | |||||||
|
| |||||||
Total investment securities 99.78% (cost: $1,627,160,000) | 1,811,931 | |||||||
Other assets less liabilities 0.22% | 3,943 | |||||||
|
| |||||||
Net assets 100.00% | $ | 1,815,874 | ||||||
|
|
American Funds Insurance Series 65
Table of Contents
Global Growth and Income Fund
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
Forward currency contracts
Contract amount | Unrealized appreciation | |||||||||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | at 12/31/2018 (000) | ||||||||||||
USD 7,748 | AUD 10,500 | Citibank | 1/11/2019 | $ | 351 |
1 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $395,472,000, which represented 21.78% of the net assets of the fund. This amount includes $391,460,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Security did not produce income during the last 12 months. |
3 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $49,910,000, which represented 2.75% of the net assets of the fund. |
Key to abbreviations and symbol
AUD = Australian dollars
ADR = American Depositary Receipts
USD/$ = U.S. dollars
See notes to financial statements
66 American Funds Insurance Series
Table of Contents
Summary investment portfolioDecember 31, 2018
Common stocks 90.59%
Shares | Value (000) | |||||||
Health care 15.91% |
| |||||||
AbbVie Inc. | 7,288,241 | $ | 671,903 | |||||
UnitedHealth Group Inc. | 2,286,268 | 569,555 | ||||||
Gilead Sciences, Inc. | 7,114,800 | 445,031 | ||||||
Amgen Inc. | 2,283,200 | 444,470 | ||||||
Abbott Laboratories | 4,812,269 | 348,071 | ||||||
Merck & Co., Inc. | 3,714,380 | 283,816 | ||||||
Cigna Corp. | 1,277,418 | 242,607 | ||||||
Eli Lilly and Co. | 1,567,600 | 181,403 | ||||||
Other securities | 1,566,133 | |||||||
|
| |||||||
4,752,989 | ||||||||
|
| |||||||
Information technology 13.79% |
| |||||||
Microsoft Corp. | 9,710,500 | 986,297 | ||||||
Broadcom Inc. | 1,985,134 | 504,780 | ||||||
Intel Corp. | 9,945,900 | 466,761 | ||||||
Texas Instruments Inc. | 3,188,582 | 301,321 | ||||||
Accenture PLC, Class A | 1,490,900 | 210,232 | ||||||
QUALCOMM Inc. | 3,500,275 | 199,201 | ||||||
Other securities | 1,449,685 | |||||||
|
| |||||||
4,118,277 | ||||||||
|
| |||||||
Financials 11.01% |
| |||||||
JPMorgan Chase & Co. | 4,986,230 | 486,756 | ||||||
Bank of New York Mellon Corp. | 6,217,700 | 292,667 | ||||||
CME Group Inc., Class A | 1,464,600 | 275,521 | ||||||
Wells Fargo & Co. | 5,210,100 | 240,081 | ||||||
Intercontinental Exchange, Inc. | 3,183,555 | 239,817 | ||||||
Aon PLC, Class A | 1,214,800 | 176,583 | ||||||
Berkshire Hathaway Inc., Class B1 | 814,500 | 166,305 | ||||||
Other securities | 1,410,515 | |||||||
|
| |||||||
3,288,245 | ||||||||
|
| |||||||
Communication services 10.28% |
| |||||||
Alphabet Inc., Class C1 | 348,784 | 361,204 | ||||||
Alphabet Inc., Class A1 | 317,250 | 331,514 | ||||||
Facebook, Inc., Class A1 | 4,975,927 | 652,294 | ||||||
Netflix, Inc.1 | 1,266,777 | 339,066 | ||||||
Verizon Communications Inc. | 4,588,600 | 257,971 | ||||||
Twenty-First Century Fox, Inc., Class A | 4,796,000 | 230,784 | ||||||
Comcast Corp., Class A | 5,903,800 | 201,024 | ||||||
Other securities | 695,140 | |||||||
|
| |||||||
3,068,997 | ||||||||
|
| |||||||
Industrials 9.19% |
| |||||||
General Dynamics Corp. | 2,033,000 | 319,608 | ||||||
Airbus SE,non-registered shares | 2,559,564 | 246,223 | ||||||
BWX Technologies, Inc.2 | 5,290,948 | 202,273 | ||||||
Textron Inc. | 3,831,077 | 176,191 | ||||||
Other securities | 1,800,478 | |||||||
|
| |||||||
2,744,773 | ||||||||
|
| |||||||
Consumer staples 8.91% |
| |||||||
Coca-Cola Co. | 8,433,100 | 399,307 | ||||||
Philip Morris International Inc. | 3,686,270 | 246,095 | ||||||
British American Tobacco PLC | 6,830,460 | 217,653 | ||||||
British American Tobacco PLC (ADR) | 479,440 | 15,275 | ||||||
Pernod Ricard SA | 1,233,233 | 202,480 | ||||||
Other securities | 1,579,033 | |||||||
|
| |||||||
2,659,843 | ||||||||
|
|
American Funds Insurance Series 67
Table of Contents
Growth-Income Fund
Common stocks (continued)
Shares | Value (000) | |||||||
Energy 6.84% | ||||||||
Exxon Mobil Corp. | 5,277,700 | $ 359,886 | ||||||
Chevron Corp. | 2,725,900 | 296,551 | ||||||
EOG Resources, Inc. | 2,406,800 | 209,897 | ||||||
Enbridge Inc. (CAD denominated) | 5,120,559 | 159,071 | ||||||
Enbridge Inc. (CAD denominated)3 | 1,340,553 | 41,644 | ||||||
Other securities | 974,704 | |||||||
|
| |||||||
2,041,753 | ||||||||
|
| |||||||
Consumer discretionary 6.35% | ||||||||
Amazon.com, Inc.1 | 350,400 | 526,290 | ||||||
Lowe’s Companies, Inc. | 2,000,000 | 184,720 | ||||||
Other securities | 1,184,040 | |||||||
|
| |||||||
1,895,050 | ||||||||
|
| |||||||
Materials 4.69% | ||||||||
Celanese Corp. | 3,329,233 | 299,531 | ||||||
Vale SA, ordinary nominative (ADR) | 14,557,884 | 192,018 | ||||||
Vale SA, ordinary nominative | 3,570,848 | 46,988 | ||||||
DowDuPont Inc. | 3,404,500 | 182,073 | ||||||
Linde PLC | 1,152,000 | 179,758 | ||||||
International Flavors & Fragrances Inc. | 1,267,500 | 170,187 | ||||||
Other securities | 330,092 | |||||||
|
| |||||||
1,400,647 | ||||||||
|
| |||||||
Real estate 1.79% | ||||||||
Crown Castle International Corp. REIT | 1,827,000 | 198,467 | ||||||
Other securities | 337,258 | |||||||
|
| |||||||
535,725 | ||||||||
|
| |||||||
Utilities 1.68% | ||||||||
Sempra Energy | 1,840,000 | 199,070 | ||||||
Other securities | 303,746 | |||||||
|
| |||||||
502,816 | ||||||||
|
| |||||||
Mutual funds 0.15% | ||||||||
Other securities | 45,729 | |||||||
|
| |||||||
Total common stocks (cost: $22,571,835,000) | 27,054,844 | |||||||
|
| |||||||
Convertible stocks 0.13% | ||||||||
Real estate 0.13% | ||||||||
Other securities | 38,828 | |||||||
|
| |||||||
Total convertible stocks (cost: $39,390,000) | 38,828 | |||||||
|
| |||||||
Convertible bonds 0.09% | ||||||||
Principal (000) | ||||||||
Energy 0.09% | ||||||||
Other securities | 27,617 | |||||||
|
| |||||||
Total convertible bonds (cost: $43,359,000) | 27,617 | |||||||
|
| |||||||
Short-term securities 9.11% | ||||||||
Chevron Corp. 2.50% due 2/11/20193 | $ | 30,000 | 29,913 | |||||
Coca-Cola Co. 2.27% due 1/3/20193 | 20,000 | 19,996 | ||||||
ExxonMobil Corp. 2.46% due 2/5/2019 | 100,000 | 99,752 | ||||||
Federal Home Loan Bank 2.20%–2.41% due 1/4/2019–3/26/2019 | 1,219,600 | 1,215,496 | ||||||
General Dynamics Corp. 2.52% due 1/10/20193 | 45,000 | 44,970 |
68 American Funds Insurance Series
Table of Contents
Growth-Income Fund
Short-term securities
Principal amount (000) | Value (000) | |||||||
Merck & Co. Inc. 2.35%–2.50% due 1/29/2019–2/27/20193 | $ | 126,900 | $ | 126,512 | ||||
U.S. Treasury Bills 2.27%–2.43% due 1/17/2019–5/2/2019 | 672,600 | 669,783 | ||||||
Other securities | 513,291 | |||||||
|
| |||||||
Total short-term securities (cost: $2,719,773,000) | 2,719,713 | |||||||
|
| |||||||
Total investment securities 99.92% (cost: $25,374,357,000) | 29,841,002 | |||||||
Other assets less liabilities 0.08% | 23,133 | |||||||
|
| |||||||
Net assets 100.00% | $ | 29,864,135 | ||||||
|
|
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” includes securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities which were valued under fair value procedures was $1,082,559,000, which represented 3.62% of the net assets of the fund. This amount includes $974,212,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading.
Investments in affiliates
A company is an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings in that company represent 5% or more of the outstanding voting shares. The value of the fund’s affiliated-company holding is shown in the summary investment portfolio. Further details on this holding and related transactions during the year ended December 31, 2018, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized gain (000) | Net unrealized depreciation (000) | Dividend income (000) | Value of affiliate at 12/31/2018 (000) | |||||||||||||||||||||||||
Common stocks 0.68% | ||||||||||||||||||||||||||||||||
Industrials 0.68% | ||||||||||||||||||||||||||||||||
BWX Technologies, Inc. | 4,772,174 | 518,774 | — | 5,290,948 | $ | — | $ | (116,886 | ) | $ | 3,182 | $ | 202,273 |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Security did not produce income during the last 12 months. |
2 | Represents an affiliated company as defined under the Investment Company Act of 1940. |
3 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $706,416,000, which represented 2.37% of the net assets of the fund. |
Key to abbreviations
ADR = American Depositary Receipts
CAD = Canadian dollars
See notes to financial statements
American Funds Insurance Series 69
Table of Contents
International Growth and Income Fund
Summary investment portfolioDecember 31, 2018
Common stocks 89.17%
Shares | Value (000) | |||||||
Financials 18.67% | ||||||||
HDFC Bank Ltd. | 1,228,800 | $ | 37,344 | |||||
Zurich Insurance Group AG1 | 92,200 | 27,498 | ||||||
AIA Group Ltd. | 1,833,000 | 15,215 | ||||||
KB Financial Group Inc.1 | 356,500 | 14,918 | ||||||
Swedbank AB, Class A1 | 611,000 | 13,631 | ||||||
GT Capital Holdings, Inc.1 | 733,589 | 13,598 | ||||||
Itaú Unibanco Holding SA, preferred nominative (ADR) | 1,486,950 | 13,591 | ||||||
Prudential PLC | 738,000 | 13,188 | ||||||
Banco Santander, SA | 2,611,538 | 11,888 | ||||||
Sumitomo Mitsui Financial Group, Inc.1 | 308,000 | 10,218 | ||||||
Other securities | 78,569 | |||||||
|
| |||||||
249,658 | ||||||||
|
| |||||||
Health care 13.34% | ||||||||
Shire PLC | 927,000 | 53,997 | ||||||
Novartis AG1 | 426,145 | 36,404 | ||||||
Fresenius SE & Co. KGaA1 | 551,600 | 26,838 | ||||||
Daiichi Sankyo Co., Ltd.1 | 561,000 | 17,924 | ||||||
Teva Pharmaceutical Industries Ltd. (ADR) | 662,000 | 10,208 | ||||||
Other securities | 33,003 | |||||||
|
| |||||||
178,374 | ||||||||
|
| |||||||
Industrials 8.49% | ||||||||
Airbus SE,non-registered shares | 253,960 | 24,430 | ||||||
Shanghai International Airport Co., Ltd., Class A1 | 2,855,033 | 21,203 | ||||||
ASSA ABLOY AB, Class B1 | 681,100 | 12,151 | ||||||
Adani Ports & Special Economic Zone Ltd. | 2,008,779 | 11,155 | ||||||
Airports of Thailand PCL, foreign registered1 | 5,250,000 | 10,333 | ||||||
Other securities | 34,231 | |||||||
|
| |||||||
113,503 | ||||||||
|
| |||||||
Energy 7.09% | ||||||||
Royal Dutch Shell PLC, Class A | 1,933,691 | 56,872 | ||||||
Royal Dutch Shell PLC, Class B | 138,000 | 4,116 | ||||||
TOTAL SA | 399,350 | 21,130 | ||||||
Other securities | 12,695 | |||||||
|
| |||||||
94,813 | ||||||||
|
| |||||||
Materials 7.06% | ||||||||
Rio Tinto PLC | 874,100 | 41,557 | ||||||
Vale SA, ordinary nominative (ADR) | 1,386,000 | 18,281 | ||||||
Yara International ASA1 | 343,000 | 13,223 | ||||||
Other securities | 21,347 | |||||||
|
| |||||||
94,408 | ||||||||
|
| |||||||
Real estate 7.04% | ||||||||
Sun Hung Kai Properties Ltd. | 2,227,000 | 31,739 | ||||||
CK Asset Holdings Ltd. | 3,939,348 | 28,826 | ||||||
Daito Trust Construction Co., Ltd.1 | 95,500 | 13,077 | ||||||
China Resources Land Ltd. | 3,162,000 | 12,155 | ||||||
Other securities | 8,396 | |||||||
|
| |||||||
94,193 | ||||||||
|
| |||||||
Consumer staples 7.04% | ||||||||
British American Tobacco PLC | 1,075,402 | 34,268 | ||||||
Pernod Ricard SA | 128,650 | 21,123 | ||||||
Coca-Cola Icecek AS, Class C | 2,631,000 | 15,351 | ||||||
Imperial Brands PLC | 316,016 | 9,574 | ||||||
Other securities | 13,864 | |||||||
|
| |||||||
94,180 | ||||||||
|
|
70 American Funds Insurance Series
Table of Contents
International Growth and Income Fund
Common stocks
Shares | Value (000) | |||||||
Communication services 6.31% | ||||||||
Tencent Holdings Ltd. | 440,700 | $ | 17,672 | |||||
BT Group PLC | 4,859,461 | 14,748 | ||||||
Yandex NV, Class A2 | 470,000 | 12,855 | ||||||
Other securities | 39,178 | |||||||
|
| |||||||
84,453 | ||||||||
|
| |||||||
Utilities 6.08% | ||||||||
Ørsted AS1 | 441,200 | 29,441 | ||||||
ENN Energy Holdings Ltd. | 1,658,000 | 14,705 | ||||||
Naturgy Energy Group, SA | 400,000 | 10,202 | ||||||
Other securities | 26,923 | |||||||
|
| |||||||
81,271 | ||||||||
|
| |||||||
Consumer discretionary 4.49% | ||||||||
LVMH Moët Hennessy-Louis Vuitton SE | 48,000 | 14,200 | ||||||
EssilorLuxottica | 105,000 | 13,288 | ||||||
Other securities | 32,513 | |||||||
|
| |||||||
60,001 | ||||||||
|
| |||||||
Information technology 3.56% | ||||||||
Samsung Electronics Co., Ltd.1 | 417,500 | 14,421 | ||||||
Tokyo Electron Ltd.1 | 96,500 | 11,004 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 1,464,000 | 10,662 | ||||||
Other securities | 11,493 | |||||||
|
| |||||||
47,580 | ||||||||
|
| |||||||
Total common stocks (cost: $1,222,804,000) | 1,192,434 | |||||||
|
| |||||||
Bonds, notes & other debt instruments 1.14% | ||||||||
Principal amount (000) | ||||||||
Bonds & notes of governments & government agencies outside the U.S. 0.61% | ||||||||
Other securities | 8,169 | |||||||
|
| |||||||
Corporate bonds & notes 0.53% | ||||||||
Other 0.53% | ||||||||
Other securities | 7,102 | |||||||
|
| |||||||
Total corporate bonds & notes | 7,102 | |||||||
|
| |||||||
Total bonds, notes & other debt instruments(cost: $15,574,000) | 15,271 | |||||||
|
| |||||||
Short-term securities 9.40% | ||||||||
BASF SE 2.62% due 2/5/20193 | $ | 10,000 | 9,975 | |||||
Federal Home Loan Bank 2.22%-2.41% due 1/2/2019-3/21/2019 | 49,700 | 49,556 | ||||||
KfW 2.43% due 1/11/20193 | 23,200 | 23,183 | ||||||
L’Oréal USA, Inc. 2.50% due 1/16/20193 | 10,000 | 9,989 | ||||||
National Rural Utilities Cooperative Finance Corp. 2.50% due 2/6/2019 | 18,100 | 18,054 | ||||||
Siemens Capital Corp. 2.50% due 1/16/20193 | 15,000 | 14,984 | ||||||
|
| |||||||
Total short-term securities (cost: $125,744,000) | 125,741 | |||||||
|
| |||||||
Total investment securities 99.71% (cost: $1,364,122,000) | 1,333,446 | |||||||
Other assets less liabilities 0.29% | 3,812 | |||||||
|
| |||||||
Net assets 100.00% | $ | 1,337,258 | ||||||
|
|
American Funds Insurance Series 71
Table of Contents
International Growth and Income Fund
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
1 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $410,893,000, which represented 30.73% of the net assets of the fund. This entire amount relates to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Security did not produce income during the last 12 months. |
3 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $59,763,000, which represented 4.47% of the net assets of the fund. |
Key to abbreviation
ADR = American Depositary Receipts
See notes to financial statements
72 American Funds Insurance Series
Table of Contents
Summary investment portfolioDecember 31, 2018
Common stocks 68.05%
Shares | Value (000) | |||||||
Financials 10.16% | ||||||||
CME Group Inc., Class A | 73,016 | $ | 13,736 | |||||
Zurich Insurance Group AG1 | 23,867 | 7,118 | ||||||
Wells Fargo & Co. | 148,000 | 6,820 | ||||||
Sampo Oyj, Class A1 | 130,569 | 5,747 | ||||||
Svenska Handelsbanken AB, Class A1 | 475,408 | 5,274 | ||||||
DBS Group Holdings Ltd. | 293,600 | 5,103 | ||||||
Other securities | 24,783 | |||||||
|
| |||||||
68,581 | ||||||||
|
| |||||||
Consumer staples 9.24% | ||||||||
Philip Morris International Inc. | 145,220 | 9,695 | ||||||
Coca-Cola Co. | 177,700 | 8,414 | ||||||
Diageo PLC | 233,000 | 8,301 | ||||||
Altria Group, Inc. | 150,370 | 7,427 | ||||||
British American Tobacco PLC | 189,300 | 6,032 | ||||||
Nestlé SA1 | 69,277 | 5,623 | ||||||
Other securities | 16,929 | |||||||
|
| |||||||
62,421 | ||||||||
|
| |||||||
Information technology 8.94% | ||||||||
Broadcom Inc. | 47,700 | 12,129 | ||||||
Microsoft Corp. | 99,520 | 10,108 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 1,277,800 | 9,306 | ||||||
Intel Corp. | 176,700 | 8,292 | ||||||
QUALCOMM Inc. | 140,900 | 8,019 | ||||||
Other securities | 12,493 | |||||||
|
| |||||||
60,347 | ||||||||
|
| |||||||
Real estate 7.81% | ||||||||
Crown Castle International Corp. REIT | 118,400 | 12,862 | ||||||
American Tower Corp. REIT | 68,369 | 10,815 | ||||||
Link Real Estate Investment Trust REIT | 582,500 | 5,899 | ||||||
Other securities | 23,132 | |||||||
|
| |||||||
52,708 | ||||||||
|
| |||||||
Energy 6.62% | ||||||||
Enbridge Inc. (CAD denominated) | 335,970 | 10,437 | ||||||
Royal Dutch Shell PLC, Class B | 321,740 | 9,596 | ||||||
Royal Dutch Shell PLC, Class B (ADR) | 8,500 | 509 | ||||||
Royal Dutch Shell PLC, Class A | 101 | 3 | ||||||
Williams Companies, Inc. | 231,200 | 5,098 | ||||||
Chevron Corp. | 22,600 | 2,459 | ||||||
Other securities | 16,621 | |||||||
|
| |||||||
44,723 | ||||||||
|
| |||||||
Communication services 6.02% | ||||||||
Vodafone Group PLC | 5,377,800 | 10,481 | ||||||
Verizon Communications Inc. | 119,950 | 6,743 | ||||||
Koninklijke KPN NV | 2,175,375 | 6,381 | ||||||
HKT Trust and HKT Ltd., units | 3,699,240 | 5,329 | ||||||
Other securities | 11,749 | |||||||
|
| |||||||
40,683 | ||||||||
|
| |||||||
Health care 5.69% | ||||||||
AstraZeneca PLC | 105,100 | 7,867 | ||||||
AstraZeneca PLC (ADR) | 145,100 | 5,511 | ||||||
Johnson & Johnson | 60,200 | 7,769 | ||||||
Pfizer Inc. | 158,900 | 6,936 | ||||||
Other securities | 10,313 | |||||||
|
| |||||||
38,396 | ||||||||
|
|
American Funds Insurance Series 73
Table of Contents
Capital Income Builder
Common stocks (continued)
Shares | Value (000) | |||||||
Utilities 5.52% | ||||||||
Edison International | 135,100 | $ | 7,670 | |||||
Enel SPA1 | 1,284,246 | 7,422 | ||||||
SSE PLC | 477,689 | 6,585 | ||||||
Other securities | 15,588 | |||||||
|
| |||||||
37,265 | ||||||||
|
| |||||||
Consumer discretionary 3.52% | ||||||||
Las Vegas Sands Corp. | 154,300 | 8,031 | ||||||
Other securities | 15,747 | |||||||
|
| |||||||
23,778 | ||||||||
|
| |||||||
Industrials 3.12% | ||||||||
Airbus SE,non-registered shares | 73,714 | 7,091 | ||||||
Boeing Co. | 17,900 | 5,773 | ||||||
Other securities | 8,208 | |||||||
|
| |||||||
21,072 | ||||||||
|
| |||||||
Materials 1.41% | ||||||||
Other securities | 9,546 | |||||||
|
| |||||||
Total common stocks (cost: $480,374,000) | 459,520 | |||||||
|
| |||||||
Rights & warrants 0.00% | ||||||||
Energy 0.00% | ||||||||
Other securities | — | |||||||
|
| |||||||
Total rights & warrants (cost: $1,000) | — | |||||||
|
| |||||||
Convertible stocks 0.91% | ||||||||
Utilities 0.61% | ||||||||
Other securities | 4,128 | |||||||
|
| |||||||
Real estate 0.30% | ||||||||
Crown Castle International Corp. REIT, Series A, 6.875% convertible preferred 2020 | 1,900 | 1,999 | ||||||
|
| |||||||
Total convertible stocks (cost: $6,292,000) | 6,127 | |||||||
|
|
Bonds, notes & other debt instruments 24.91%
Principal (000) | ||||||||
U.S. Treasury bonds & notes 13.84% | ||||||||
U.S. Treasury 13.02% | ||||||||
U.S. Treasury 1.625% 2022 | $6,050 | 5,872 | ||||||
U.S. Treasury 2.00% 2022 | 15,000 | 14,741 | ||||||
U.S. Treasury 2.125% 2022 | 8,800 | 8,681 | ||||||
U.S. Treasury 2.00% 2025 | 13,200 | 12,729 | ||||||
U.S. Treasury 2.00% 2026 | 7,500 | 7,160 | ||||||
U.S. Treasury, principal only, 0% 2047 | 12,400 | 5,188 | ||||||
U.S. Treasury 1.75%-3.13% 2021-20482 | 33,658 | 33,580 | ||||||
|
| |||||||
87,951 | ||||||||
|
| |||||||
U.S. Treasury inflation-protected securities 0.82% | ||||||||
U.S. Treasury Inflation-Protected Security 0.625% 20233 | 5,599 | 5,512 | ||||||
|
| |||||||
Total U.S. Treasury bonds & notes | 93,463 | |||||||
|
|
74 American Funds Insurance Series
Table of Contents
Capital Income Builder
Bonds, notes & other debt instruments (continued)
Principal amount (000) | Value (000) | |||||||
Mortgage-backed obligations 6.96% | ||||||||
Federal agency mortgage-backed obligations 6.72% | ||||||||
Fannie Mae 4.00% 20474 | $ | 9,196 | $ | 9,385 | ||||
Fannie Mae 4.50% 20484,5 | 6,846 | 7,099 | ||||||
Fannie Mae 4.50% 20484 | 5,816 | 6,033 | ||||||
Fannie Mae 4.50% 20484 | 5,689 | 5,901 | ||||||
Fannie Mae 3.50%-4.00% 2046-20494,5 | 2,344 | 2,382 | ||||||
Government National Mortgage Assn. 4.30%-6.87% 2049-20634,5 | 7,553 | 7,817 | ||||||
Other securities | 6,759 | |||||||
|
| |||||||
45,376 | ||||||||
|
| |||||||
Collateralized mortgage-backed obligations (privately originated) 0.24% | ||||||||
Other securities | 1,582 | |||||||
|
| |||||||
Total mortgage-backed obligations | 46,958 | |||||||
|
| |||||||
Corporate bonds & notes 3.97% | ||||||||
Financials 0.98% | ||||||||
CME Group Inc. 4.15% 2048 | 100 | 102 | ||||||
Wells Fargo & Co. 3.55%-4.60% 2021-2023 | 600 | 606 | ||||||
Other securities | 5,886 | |||||||
|
| |||||||
6,594 | ||||||||
|
| |||||||
Utilities 0.83% | ||||||||
Enel Finance International SA 3.625% 20276 | 215 | 190 | ||||||
Southern California Edison Co. 4.65% 2043 | 100 | 101 | ||||||
Other securities | 5,297 | |||||||
|
| |||||||
5,588 | ||||||||
|
| |||||||
Health care 0.54% | ||||||||
AstraZeneca PLC 3.38%-3.50% 2023-2025 | 470 | 463 | ||||||
Other securities | 3,196 | |||||||
|
| |||||||
3,659 | ||||||||
|
| |||||||
Communication services 0.38% | ||||||||
Verizon Communications Inc. 4.329% 2028 | 312 | 314 | ||||||
Vodafone Group PLC 3.75%-5.25% 2024-2048 | 600 | 582 | ||||||
Other securities | 1,668 | |||||||
|
| |||||||
2,564 | ||||||||
|
| |||||||
Consumer staples 0.36% | ||||||||
Philip Morris International Inc. 2.63%-3.60% 2022-2023 | 273 | 265 | ||||||
Other securities | 2,203 | |||||||
|
| |||||||
2,468 | ||||||||
|
| |||||||
Energy 0.26% | ||||||||
Shell International Finance BV 3.50% 2023 | 100 | 101 | ||||||
Other securities | 1,629 | |||||||
|
| |||||||
1,730 | ||||||||
|
| |||||||
Information technology 0.04% | ||||||||
Broadcom Ltd. 3.50%-3.88% 2027-2028 | 328 | 291 | ||||||
|
| |||||||
Other 0.58% | ||||||||
Other securities | 3,923 | |||||||
|
| |||||||
Total corporate bonds & notes | 26,817 | |||||||
|
|
American Funds Insurance Series 75
Table of Contents
Capital Income Builder
Bonds, notes & other debt instruments (continued)
Principal amount (000) | Value (000) | |||||||
Asset-backed obligations 0.14% | ||||||||
Other securities | $ | 967 | ||||||
|
| |||||||
Total bonds, notes & other debt instruments (cost: $169,549,000) | 168,205 | |||||||
|
| |||||||
Short-term securities 6.79% | ||||||||
Chevron Corp. 2.39% due 1/28/20196 | $10,000 | 9,981 | ||||||
Federal Home Loan Bank 2.33%-2.38% due 1/18/2019-2/21/2019 | 22,200 | 22,140 | ||||||
National Rural Utilities Cooperative Finance Corp. 2.52% due 1/31/2019 | 9,600 | 9,579 | ||||||
Pfizer Inc. 2.31% due 1/15/20196 | 4,200 | 4,196 | ||||||
|
| |||||||
Total short-term securities (cost: $45,898,000) | 45,896 | |||||||
|
| |||||||
Total investment securities 100.66%(cost: $702,114,000) | 679,748 | |||||||
Other assets less liabilities (0.66)% | (4,468 | ) | ||||||
|
| |||||||
Net assets 100.00% | $ | 675,280 | ||||||
|
|
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount7 (000) | Value at 12/31/20188 (000) | Unrealized appreciation (depreciation) at 12/31/2018 (000) | ||||||||||||||||
90 Day Euro Dollar Futures | Long | 100 | December 2019 | $ | 25,000 | $ | 24,338 | $ | 151 | |||||||||||||
2 Year U.S. Treasury Note Futures | Long | 49 | April 2019 | 9,800 | 10,403 | 67 | ||||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 988 | April 2019 | 98,800 | 113,311 | 1,810 | ||||||||||||||||
10 Year Ultra U.S. Treasury Note Futures | Short | 473 | March 2019 | (47,300 | ) | (61,527 | ) | (1,820 | ) | |||||||||||||
20 Year U.S. Treasury Bond Futures | Long | 64 | March 2019 | 6,400 | 9,344 | 439 | ||||||||||||||||
30 Year Ultra U.S. Treasury Bond Futures | Short | 26 | March 2019 | (2,600 | ) | (4,177 | ) | (218 | ) | |||||||||||||
|
| |||||||||||||||||||||
$ | 429 | |||||||||||||||||||||
|
|
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $77,218,000, which represented 11.43% of the net assets of the fund. This amount includes $76,827,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | All or a portion of this security was pledged as collateral. The total value of pledged collateral was $284,000, which represented .04% of the net assets of the fund. |
3 | Index-linked bond whose principal amount moves with a government price index. |
4 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
5 | Purchased on a TBA basis. |
6 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $23,524,000, which represented 3.48% of the net assets of the fund. |
7 | Notional amount is calculated based on the number of contracts and notional contract size. |
8 | Value is calculated based on the notional amount and current market price. |
76 American Funds Insurance Series
Table of Contents
Capital Income Builder
Key to abbreviations
ADR = American Depositary Receipts
CAD = Canadian dollars
TBA =To-be-announced
See notes to financial statements
American Funds Insurance Series 77
Table of Contents
Summary investment portfolioDecember 31, 2018
Common stocks 58.94%
Shares | Value (000) | |||||||
Information technology 13.64% | ||||||||
Microsoft Corp. | 6,500,000 | $ | 660,205 | |||||
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 14,016,000 | 517,331 | ||||||
Broadcom Inc. | 1,995,000 | 507,289 | ||||||
VeriSign, Inc.1 | 2,000,000 | 296,580 | ||||||
ASML Holding NV (New York registered) | 1,865,000 | 290,231 | ||||||
Intel Corp. | 5,820,000 | 273,133 | ||||||
Intuit Inc. | 1,100,000 | 216,535 | ||||||
Visa Inc., Class A | 1,032,000 | 136,162 | ||||||
Other securities | 230,164 | |||||||
|
| |||||||
3,127,630 | ||||||||
|
| |||||||
Health care 11.11% | ||||||||
UnitedHealth Group Inc. | 2,016,300 | 502,301 | ||||||
Johnson & Johnson | 3,472,000 | 448,062 | ||||||
Cigna Corp. | 1,689,540 | 320,877 | ||||||
Humana Inc. | 965,000 | 276,453 | ||||||
AbbVie Inc. | 2,675,300 | 246,636 | ||||||
Merck & Co., Inc. | 2,420,300 | 184,935 | ||||||
Bluebird Bio, Inc.1 | 1,617,100 | 160,416 | ||||||
Other securities | 406,972 | |||||||
|
| |||||||
2,546,652 | ||||||||
|
| |||||||
Financials 9.49% | ||||||||
Chubb Ltd. | 2,450,000 | 316,491 | ||||||
Arch Capital Group Ltd.1 | 8,595,000 | 229,658 | ||||||
First Republic Bank | 2,580,000 | 224,202 | ||||||
Wells Fargo & Co. | 3,500,000 | 161,280 | ||||||
JPMorgan Chase & Co. | 1,600,000 | 156,192 | ||||||
Bank of America Corp. | 6,000,000 | 147,840 | ||||||
CME Group Inc., Class A | 738,200 | 138,870 | ||||||
Citigroup Inc. | 2,500,000 | 130,150 | ||||||
Other securities | 670,432 | |||||||
|
| |||||||
2,175,115 | ||||||||
|
| |||||||
Industrials 4.39% | ||||||||
Boeing Co. | 1,140,000 | 367,650 | ||||||
Northrop Grumman Corp. | 1,249,400 | 305,978 | ||||||
Lockheed Martin Corp. | 847,200 | 221,831 | ||||||
Other securities | 111,429 | |||||||
|
| |||||||
1,006,888 | ||||||||
|
| |||||||
Energy 4.17% | ||||||||
Noble Energy, Inc. | 10,500,000 | 196,980 | ||||||
Cenovus Energy Inc. | 27,000,000 | 189,862 | ||||||
Royal Dutch Shell PLC, Class B (ADR) | 2,745,000 | 164,535 | ||||||
Other securities | 404,961 | |||||||
|
| |||||||
956,338 | ||||||||
|
| |||||||
Consumer discretionary 3.94% | ||||||||
Home Depot, Inc. | 1,125,000 | 193,297 | ||||||
Amazon.com, Inc.1 | 103,000 | 154,703 | ||||||
General Motors Co. | 4,100,000 | 137,145 | ||||||
VF Corp. | 1,600,000 | 114,144 | ||||||
Other securities | 304,124 | |||||||
|
| |||||||
903,413 | ||||||||
|
|
78 American Funds Insurance Series
Table of Contents
Asset Allocation Fund
Common stocks
Shares | Value (000) | |||||||
Communication services 3.70% | ||||||||
Comcast Corp., Class A | 7,550,000 | $ | 257,077 | |||||
Facebook, Inc., Class A1 | 1,332,000 | 174,612 | ||||||
Verizon Communications Inc. | 2,040,000 | 114,689 | ||||||
Other securities | 301,633 | |||||||
|
| |||||||
848,011 | ||||||||
|
| |||||||
Consumer staples 3.52% | ||||||||
Philip Morris International Inc. | 5,430,000 | 362,507 | ||||||
Nestlé SA2 | 3,242,230 | 263,173 | ||||||
Nestlé SA (ADR) | 900,000 | 72,864 | ||||||
Other securities | 109,682 | |||||||
|
| |||||||
808,226 | ||||||||
|
| |||||||
Materials 3.23% | ||||||||
DowDuPont Inc. | 7,753,100 | 414,636 | ||||||
Other securities | 324,972 | |||||||
|
| |||||||
739,608 | ||||||||
|
| |||||||
Utilities 0.94% | ||||||||
CMS Energy Corp. | 2,284,700 | 113,435 | ||||||
Other securities | 102,464 | |||||||
|
| |||||||
215,899 | ||||||||
|
| |||||||
Real estate 0.81% | ||||||||
Other securities | 184,779 | |||||||
|
| |||||||
Total common stocks (cost: $10,995,856,000) | 13,512,559 | |||||||
|
| |||||||
Rights & warrants 0.00% | ||||||||
Other 0.00% | ||||||||
Other securities | 242 | |||||||
|
| |||||||
Total rights & warrants (cost: $70,000) | 242 | |||||||
|
| |||||||
Convertible stocks 0.03% | ||||||||
Industrials 0.03% | ||||||||
Other securities | 6,074 | |||||||
|
| |||||||
Total convertible stocks (cost: $4,800,000) | 6,074 | |||||||
|
|
Convertible bonds 0.00%
Principal amount (000) | ||||||||
Communication services 0.00% | ||||||||
Other securities | 1,272 | |||||||
|
| |||||||
Bonds, notes & other debt instruments 28.92% | ||||||||
U.S. Treasury bonds & notes 12.30% | ||||||||
U.S. Treasury 9.54% | ||||||||
U.S. Treasury 1.50% 2019 | $ 400,000 | 399,688 | ||||||
U.S. Treasury 1.25% 20203 | 298,117 | 293,842 | ||||||
U.S. Treasury 1.625% 2020 | 125,000 | 123,238 | ||||||
U.S. Treasury 2.25% 2027 | 126,075 | 122,452 | ||||||
U.S. Treasury 1.13%-4.75% 2019-20483 | 1,260,397 | 1,247,301 | ||||||
|
| |||||||
2,186,521 | ||||||||
|
|
American Funds Insurance Series 79
Table of Contents
Asset Allocation Fund
Bonds, notes & other debt instruments (continued)
Principal amount (000) | Value (000) | |||||||
U.S. Treasury bonds & notes (continued) | ||||||||
U.S. Treasury inflation-protected securities 2.76% | ||||||||
U.S. Treasury Inflation-Protected Security 0.625% 20244 | $ | 221,289 | $ | 217,968 | ||||
U.S. Treasury Inflation-Protected Security 1.375% 20443,4 | 139,180 | 144,107 | ||||||
U.S. Treasury Inflation-Protected Securities 0.13%-2.38% 2021-20474 | 283,125 | 271,873 | ||||||
|
| |||||||
633,948 | ||||||||
|
| |||||||
Total U.S. Treasury bonds & notes | 2,820,469 | |||||||
|
| |||||||
Corporate bonds & notes 9.97% | ||||||||
Energy 1.60% | ||||||||
Other securities | 367,218 | |||||||
|
| |||||||
Financials 1.56% | ||||||||
ACE INA Holdings Inc. 2.30%-4.35% 2020-2045 | 6,905 | 6,864 | ||||||
Other securities | 349,954 | |||||||
|
| |||||||
356,818 | ||||||||
|
| |||||||
Health care 1.52% | ||||||||
AbbVie Inc. 4.25%-4.88% 2028-2048 | 11,404 | 10,435 | ||||||
Cigna Corp. 3.40%-4.90% 2021-20485 | 18,585 | 18,521 | ||||||
Johnson & Johnson 2.45% 2026 | 5,285 | 4,970 | ||||||
Other securities | 315,654 | |||||||
|
| |||||||
349,580 | ||||||||
|
| |||||||
Communication services 1.07% | ||||||||
Comcast Corp. 2.35%-4.70% 2025-2048 | 24,439 | 24,085 | ||||||
NBCUniversal Enterprise, Inc. 1.974% 20195 | 100 | 100 | ||||||
Other securities | 220,154 | |||||||
|
| |||||||
244,339 | ||||||||
|
| |||||||
Materials 0.73% | ||||||||
Dow Chemical Co. 4.55% 20255 | 8,394 | 8,556 | ||||||
DowDuPont Inc. 4.21%-4.73% 2023-2028 | 16,125 | 16,632 | ||||||
Other securities | 142,841 | |||||||
|
| |||||||
168,029 | ||||||||
|
| |||||||
Industrials 0.63% | ||||||||
Lockheed Martin Corp. 2.50%-3.55% 2020-2026 | 10,050 | 9,962 | ||||||
Northrop Grumman Corp. 2.93%-3.25% 2025-2028 | 8,140 | 7,676 | ||||||
Other securities | 127,441 | |||||||
|
| |||||||
145,079 | ||||||||
|
| |||||||
Consumer staples 0.59% | ||||||||
Nestle Holdings, Inc. 3.50% 20255 | 4,500 | 4,526 | ||||||
Philip Morris International Inc. 1.88%-4.25% 2020-2044 | 15,405 | 14,816 | ||||||
Other securities | 116,177 | |||||||
|
| |||||||
135,519 | ||||||||
|
| |||||||
Information technology 0.29% | ||||||||
Broadcom Ltd. 3.00%-3.63% 2022-2028 | 6,277 | 5,582 | ||||||
Microsoft Corp. 4.10%-4.20% 2035-2037 | 7,000 | 7,268 | ||||||
Other securities | 52,778 | |||||||
|
| |||||||
65,628 | ||||||||
|
| |||||||
Other 1.98% | ||||||||
Other securities | 454,358 | |||||||
|
| |||||||
Total corporate bonds & notes | 2,286,568 | |||||||
|
|
80 American Funds Insurance Series
Table of Contents
Asset Allocation Fund
Bonds, notes & other debt instruments (continued)
Principal amount (000) | Value (000) | |||||||
Mortgage-backed obligations 5.75% | ||||||||
Federal agency mortgage-backed obligations 5.59% | ||||||||
Fannie Mae 0%-7.50% 2021-20496,7,8 | $ | 576,633 | $ | 585,310 | ||||
Freddie Mac 3.00%-6.50% 2037-20496,8 | 309,698 | 312,698 | ||||||
Other securities | 383,453 | |||||||
|
| |||||||
1,281,461 | ||||||||
|
| |||||||
Other 0.16% | ||||||||
Other securities | 37,382 | |||||||
|
| |||||||
Total mortgage-backed obligations | 1,318,843 | |||||||
|
| |||||||
Federal agency bonds & notes 0.07% | ||||||||
Fannie Mae 1.88%-2.00% 2022-2026 | 16,000 | 15,031 | ||||||
|
| |||||||
Other 0.83% | ||||||||
Other securities | 190,115 | |||||||
|
| |||||||
Total bonds, notes & other debt instruments (cost: $6,771,429,000) | 6,631,026 | |||||||
|
| |||||||
Short-term securities 13.60% | ||||||||
Federal Home Loan Bank 2.13%-2.41% due 1/2/2019-3/15/2019 | 1,506,150 | 1,501,682 | ||||||
Merck & Co. Inc. 2.37%-2.50% due 1/23/2019-2/27/20195 | 149,000 | 148,526 | ||||||
U.S. Treasury Bills 2.12%-2.38% due 1/15/2019-3/7/2019 | 660,200 | 658,327 | ||||||
United Parcel Service Inc. 2.34%-2.40% due 1/14/2019-1/22/20195 | 175,000 | 174,804 | ||||||
Other securities | 633,289 | |||||||
|
| |||||||
Total short-term securities(cost: $3,116,790,000) | 3,116,628 | |||||||
|
| |||||||
Total investment securities 101.49% (cost: $20,890,335,000) | 23,267,801 | |||||||
Other assets less liabilities (1.49)% | (342,350 | ) | ||||||
|
| |||||||
Net assets 100.00% | $ | 22,925,451 | ||||||
|
|
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities“ also includes loan participations and assignments, which may be subject to legal or contractual restrictions on resale. The total value of all such loans was $43,203,000, which represented .19% of the net assets of the fund. Some securities in “Other securities” (with an aggregate value of $30,904,000, an aggregate cost of $36,241,000, and which represented .13% of the net assets of the fund) were acquired from 9/26/2013 to 11/16/2018 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject them to legal or contractual restrictions on resale.
American Funds Insurance Series 81
Table of Contents
Asset Allocation Fund
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount9 (000) | Value at 12/31/201810 (000) | Unrealized appreciation (depreciation) at 12/31/2018 (000) | ||||||||||||||
2 Year U.S. Treasury Note Futures | Long | 2,898 | April 2019 | $ | 579,600 | $ | 615,282 | $ | 2,012 | |||||||||||
5 Year U.S. Treasury Note Futures | Long | 1,317 | April 2019 | 131,700 | 151,043 | 2,659 | ||||||||||||||
10 Year U.S. Treasury Note Futures | Long | 817 | March 2019 | 81,700 | 99,687 | 1,364 | ||||||||||||||
10 Year Ultra U.S. Treasury Note Futures | Short | 211 | March 2019 | (21,100 | ) | (27,447 | ) | (874 | ) | |||||||||||
|
| |||||||||||||||||||
$ | 5,161 | |||||||||||||||||||
|
|
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2018 (000) | Upfront payments/ receipts (000) | Unrealized depreciation at 12/31/2018 (000) | ||||||||||||||||
1.6365% | 3-monthUSD-LIBOR | 10/16/2019 | $ | 124,000 | $ | (1,066 | ) | $ | — | $ | (1,066 | ) | ||||||||||
U.S. EFFR | 2.4435% | 12/20/2023 | 17,844 | (137 | ) | — | (137 | ) | ||||||||||||||
U.S. EFFR | 2.45375% | 12/20/2023 | 159,848 | (1,304 | ) | — | (1,304 | ) | ||||||||||||||
U.S. EFFR | 2.4225% | 12/24/2023 | 73,206 | (490 | ) | — | (490 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.945% | 10/16/2044 | 28,000 | (560 | ) | — | (560 | ) | ||||||||||||||
|
|
|
| |||||||||||||||||||
$ | — | $ | (3,557 | ) | ||||||||||||||||||
|
|
|
|
82 American Funds Insurance Series
Table of Contents
Asset Allocation Fund
Investments in affiliates
A company is an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings in that company represent 5% or more of the outstanding voting shares. The value of the fund’s holdings in affiliated companies is included in “Other securities” under the respective industry sectors in the summary investment portfolio. Further details on these holdings and related transactions during the year ended December 31, 2018, appear below.
Beginning shares or principal amount | Additions | Reductions | Ending shares or principal amount | Net realized gain (000) | Net unrealized depreciation (000) | Dividend or interest income (000) | Value of affiliates at 12/31/2018 (000) | |||||||||||||||||||||||||
Common stocks 0.59% | ||||||||||||||||||||||||||||||||
Energy 0.14% | ||||||||||||||||||||||||||||||||
Weatherford International PLC1 | 56,000,000 | 4,000,000 | — | 60,000,000 | $ | — | $ | (210,215 | ) | $ | — | $ | 33,540 | |||||||||||||||||||
Consumer discretionary 0.45% | ||||||||||||||||||||||||||||||||
Dillard’s, Inc., Class A (USA)11 | 807,618 | 892,382 | — | 1,700,000 | — | (9,607 | ) | 562 | 102,527 | |||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total common stocks | 136,067 | |||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Bonds, notes & other debt instruments 0.08% | ||||||||||||||||||||||||||||||||
Energy 0.08% | ||||||||||||||||||||||||||||||||
Weatherford International PLC 4.50% 2022 | $ | 2,670,000 | $ | 3,695,000 | — | $ | 6,365,000 | — | (1,890 | ) | 340 | 3,755 | ||||||||||||||||||||
Weatherford International PLC 8.25% 2023 | $ | 5,500,000 | $ | 300,000 | — | $ | 5,800,000 | — | (2,350 | ) | 484 | 3,523 | ||||||||||||||||||||
Weatherford International PLC 9.875% 2024 | — | $ | 1,000,000 | — | $ | 1,000,000 | — | (391 | ) | 86 | 620 | |||||||||||||||||||||
Weatherford International PLC 9.875% 20255 | — | $ | 2,550,000 | — | $ | 2,550,000 | — | (973 | ) | 214 | 1,562 | |||||||||||||||||||||
Weatherford International PLC 6.50% 2036 | $ | 7,595,000 | — | — | $ | 7,595,000 | — | (2,323 | ) | 519 | 3,987 | |||||||||||||||||||||
Weatherford International PLC 6.75% 2040 | $ | 7,825,000 | — | — | $ | 7,825,000 | — | (2,412 | ) | 553 | 4,069 | |||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
17,516 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Total 0.67% | $ | — | $ | (230,161 | ) | $ | 2,758 | $ | 153,583 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Security did not produce income during the last 12 months. |
2 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $396,462,000, which represented 1.73% of the net assets of the fund. This amount includes $369,780,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
3 | All or a portion of this security was pledged as collateral. The total value of pledged collateral was $10,162,000, which represented .04% of the net assets of the fund. |
4 | Index-linked bond whose principal amount moves with a government price index. |
5 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $1,612,443,000, which represented 7.03% of the net assets of the fund. |
6 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
7 | Coupon rate may change periodically. |
8 | Purchased on a TBA basis. |
9 | Notional amount is calculated based on the number of contracts and notional contract size. |
10 | Value is calculated based on the notional amount and current market price. |
11 | This security was an unaffiliated issuer in its initial period of acquisition at 12/31/2017; it was not publicly disclosed. |
Key to abbreviations and symbol
ADR = American Depositary Receipts
EFFR = Effective Federal Funds Rate
LIBOR = London Interbank Offered Rate
TBA =To-be-announced
USD/$ = U.S. dollars
See notes to financial statements
American Funds Insurance Series 83
Table of Contents
Summary investment portfolioDecember 31, 2018
Common stocks 56.65%
Shares | Value (000) | |||||||
Information technology 11.31% | ||||||||
ASML Holding NV | 35,800 | $ | 5,626 | |||||
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 732,000 | 5,331 | ||||||
Microsoft Corp. | 48,500 | 4,926 | ||||||
PagSeguro Digital Ltd., Class A2 | 220,528 | 4,130 | ||||||
Broadcom Inc. | 15,150 | 3,852 | ||||||
Temenos AG1 | 25,000 | 2,999 | ||||||
Keyence Corp.1 | 4,400 | 2,233 | ||||||
Intel Corp. | 44,000 | 2,065 | ||||||
Other securities | 10,273 | |||||||
|
| |||||||
41,435 | ||||||||
|
| |||||||
Financials 8.12% | ||||||||
JPMorgan Chase & Co. | 48,270 | 4,712 | ||||||
HSBC Holdings PLC (GBP denominated) | 539,633 | 4,449 | ||||||
Berkshire Hathaway Inc., Class A2 | 12 | 3,672 | ||||||
B3 SA-Brasil, Bolsa, Balcao | 376,000 | 2,601 | ||||||
HDFC Bank Ltd. (ADR) | 21,605 | 2,238 | ||||||
Credicorp Ltd. | 10,050 | 2,228 | ||||||
Wells Fargo & Co. | 47,900 | 2,207 | ||||||
AIA Group Ltd. | 250,000 | 2,075 | ||||||
Other securities | 5,545 | |||||||
|
| |||||||
29,727 | ||||||||
|
| |||||||
Health care 7.49% | ||||||||
Merck & Co., Inc. | 66,870 | 5,110 | ||||||
Humana Inc. | 16,330 | 4,678 | ||||||
UnitedHealth Group Inc. | 8,985 | 2,238 | ||||||
Other securities | 15,420 | |||||||
|
| |||||||
27,446 | ||||||||
|
| |||||||
Industrials 6.81% | ||||||||
Boeing Co. | 15,250 | 4,918 | ||||||
Edenred SA | 65,000 | 2,391 | ||||||
Other securities | 17,629 | |||||||
|
| |||||||
24,938 | ||||||||
|
| |||||||
Energy 4.95% | ||||||||
ConocoPhillips | 56,006 | 3,492 | ||||||
Royal Dutch Shell PLC, Class B | 114,200 | 3,406 | ||||||
LUKOIL Oil Co. PJSC (ADR) | 39,800 | 2,845 | ||||||
Enbridge Inc. (CAD denominated) | 62,117 | 1,929 | ||||||
Enbridge Inc. (CAD denominated)3 | 16,157 | 502 | ||||||
TOTAL SA | 45,200 | 2,391 | ||||||
Other securities | 3,564 | |||||||
|
| |||||||
18,129 | ||||||||
|
| |||||||
Consumer staples 4.85% | ||||||||
Nestlé SA1 | 45,300 | 3,677 | ||||||
Philip Morris International Inc. | 50,800 | 3,391 | ||||||
British American Tobacco PLC | 78,900 | 2,514 | ||||||
Coca-Cola European Partners PLC | 48,000 | 2,201 | ||||||
Other securities | 5,994 | |||||||
|
| |||||||
17,777 | ||||||||
|
| |||||||
Consumer discretionary 4.05% | ||||||||
Amazon.com, Inc.2 | 2,500 | 3,755 | ||||||
Ocado Group PLC2 | 259,500 | 2,613 | ||||||
Other securities | 8,465 | |||||||
|
| |||||||
14,833 | ||||||||
|
|
84 American Funds Insurance Series
Table of Contents
Global Balanced Fund
Common stocks (continued)
Shares | Value (000) | |||||||
Materials 3.54% | ||||||||
DowDuPont Inc. | 40,738 | $ | 2,179 | |||||
Linde PLC1 | 13,706 | 2,176 | ||||||
Randgold Resources Ltd.1 | 25,000 | 2,068 | ||||||
Other securities | 6,530 | |||||||
|
| |||||||
12,953 | ||||||||
|
| |||||||
Communication services 2.21% | ||||||||
Nintendo Co., Ltd.1 | 21,300 | 5,671 | ||||||
Other securities | 2,412 | |||||||
|
| |||||||
8,083 | ||||||||
|
| |||||||
Real estate 1.91% | ||||||||
Link Real Estate Investment Trust REIT | 211,697 | 2,144 | ||||||
Other securities | 4,838 | |||||||
|
| |||||||
6,982 | ||||||||
|
| |||||||
Utilities 1.41% | ||||||||
Ørsted AS1 | 33,800 | 2,255 | ||||||
ENN Energy Holdings Ltd. | 232,000 | 2,058 | ||||||
Other securities | 839 | |||||||
|
| |||||||
5,152 | ||||||||
|
| |||||||
Total common stocks (cost: $181,317,000) | 207,455 | |||||||
|
| |||||||
Bonds, notes & other debt instruments 36.97% | ||||||||
Principal amount (000) | ||||||||
Bonds & notes of governments & government agencies outside the U.S. 16.15% | ||||||||
Canada 1.00%-2.25% 2022-2025 | C$ | 2,000 | 1,484 | |||||
Japan, Series 395, 0.10% 2020 | ¥ | 251,100 | 2,301 | |||||
Japan, Series 346, 0.10% 2027 | 380,450 | 3,529 | ||||||
Japan 0.10%-1.70% 2020-20464 | 1,018,875 | 9,836 | ||||||
Poland (Republic of) 3.25%-5.75% 2020-2025 | PLN | 14,140 | 4,068 | |||||
United Mexican States 5.75%-10.00% 2020-2042 | MXN | 63,500 | 2,995 | |||||
United Mexican States 4.15%-4.60% 2027-2046 | $ | 600 | 565 | |||||
Other securities | 34,368 | |||||||
|
| |||||||
59,146 | ||||||||
|
| |||||||
U.S. Treasury bonds & notes 12.50% | ||||||||
U.S. Treasury 10.13% | ||||||||
U.S. Treasury 2.875% 2021 | 2,250 | 2,276 | ||||||
U.S. Treasury 1.625% 2022 | 2,850 | 2,766 | ||||||
U.S. Treasury 2.875% 2023 | 2,250 | 2,288 | ||||||
U.S. Treasury 2.25% 2027 | 2,800 | 2,711 | ||||||
U.S. Treasury 2.875% 20285 | 2,170 | 2,205 | ||||||
U.S. Treasury 1.00%-3.13% 2019-20465 | 25,142 | 24,843 | ||||||
|
| |||||||
37,089 | ||||||||
|
| |||||||
U.S. Treasury inflation-protected securities 2.37% | ||||||||
U.S. Treasury Inflation-Protected Securities 0.13%-2.38% 2022-20444 | 8,962 | 8,681 | ||||||
|
| |||||||
Total U.S. Treasury bonds & notes | 45,770 | |||||||
|
| |||||||
Corporate bonds & notes 6.43% | ||||||||
Financials 1.61% | ||||||||
Banco Nacional de Comercio Exterior SNC 3.80% 2026 | 200 | 191 | ||||||
Berkshire Hathaway Inc. 3.00% 2022 | 75 | 75 | ||||||
HSBC Holdings PLC 3.375% 2024 (5 year EURO Mid Swap + 1.95% on 1/10/2019)6 | € | 100 | 115 | |||||
HSBC Holdings PLC 3.03%–4.29% 2023–20266 | $ | 650 | 633 |
American Funds Insurance Series 85
Table of Contents
Global Balanced Fund
Bonds, notes & other debt instruments (continued)
Principal amount (000) | Value (000) | |||||||
Corporate bonds & notes (continued) | ||||||||
Financials (continued) | ||||||||
JPMorgan Chase & Co. 2.55%-6.75% 2021-20496 | $ | 389 | $ | 387 | ||||
JPMorgan Chase Bank NA(3-monthUSD-LIBOR + 0.34%) 2.848% 20217 | 300 | 297 | ||||||
Other securities | 4,193 | |||||||
|
| |||||||
5,891 | ||||||||
|
| |||||||
Utilities 0.98% | ||||||||
Sierra Pacific Power Co., General and Refunding Mortgage Notes, Series T, 3.375% 2023 | 72 | 72 | ||||||
Other securities | 3,539 | |||||||
|
| |||||||
3,611 | ||||||||
|
| |||||||
Health care 0.92% | ||||||||
Humana Inc. 3.15% 2022 | 100 | 98 | ||||||
Other securities | 3,277 | |||||||
|
| |||||||
3,375 | ||||||||
|
| |||||||
Consumer discretionary 0.56% | ||||||||
Amazon.com, Inc. 2.80%-3.15% 2024-2027 | 220 | 213 | ||||||
Other securities | 1,826 | |||||||
|
| |||||||
2,039 | ||||||||
|
| |||||||
Energy 0.53% | ||||||||
Petróleos Mexicanos 7.47% 2026 | MXN | 4,000 | 150 | |||||
Petróleos Mexicanos 6.35%-6.50% 2027-2048 | $ | 487 | 408 | |||||
Shell International Finance BV 3.50% 2023 | 330 | 334 | ||||||
Other securities | 1,035 | |||||||
|
| |||||||
1,927 | ||||||||
|
| |||||||
Information technology 0.31% | ||||||||
Broadcom Ltd. 3.875% 2027 | 190 | 171 | ||||||
Microsoft Corp. 2.40%-3.30% 2026-2027 | 652 | 630 | ||||||
Other securities | 338 | |||||||
|
| |||||||
1,139 | ||||||||
|
| |||||||
Other 1.52% | ||||||||
Other securities | 5,550 | |||||||
|
| |||||||
Total corporate bonds & notes | 23,532 | |||||||
|
| |||||||
Mortgage-backed obligations 1.89% | ||||||||
Federal agency mortgage-backed obligations 1.18% | ||||||||
Fannie Mae 4.00%-4.50% 2041-20498,9 | 3,775 | 3,871 | ||||||
Other securities | 474 | |||||||
|
| |||||||
4,345 | ||||||||
|
| |||||||
Other 0.71% | ||||||||
Other securities | 2,591 | |||||||
|
| |||||||
Total mortgage-backed obligations | 6,936 | |||||||
|
| |||||||
Total bonds, notes & other debt instruments (cost: $138,335,000) | 135,384 | |||||||
|
|
86 American Funds Insurance Series
Table of Contents
Global Balanced Fund
Short-term securities 6.99%
Principal amount (000) | Value (000) | |||||||
Canada Bill 2.32% due 1/3/2019 | $ | 6,000 | $ | 6,000 | ||||
Federal Home Loan Bank 2.15%–2.39% due 1/2/2019–1/22/2019 | 9,600 | 9,592 | ||||||
National Rural Utilities Cooperative Finance Corp. 2.55% due 1/14/2019 | 5,000 | 4,995 | ||||||
U.S. Treasury Bills 2.28% due 1/15/2019 | 5,000 | 4,996 | ||||||
|
| |||||||
Total short-term securities (cost: $25,583,000) | 25,583 | |||||||
|
| |||||||
Total investment securities 100.61% (cost: $345,235,000) | 368,422 | |||||||
Other assets less liabilities (0.61)% | (2,233 | ) | ||||||
|
| |||||||
Net assets 100.00% | $ | 366,189 | ||||||
|
|
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount10 (000) | Value at 12/31/201811 (000) | Unrealized appreciation at 12/31/2018 (000) | ||||||||||||||||||
2 Year U.S. Treasury Note Futures | Long | 6 | April 2019 | $ | 1,200 | $ | 1,274 | $ | 6 | |||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 97 | April 2019 | 9,700 | 11,124 | 116 | ||||||||||||||||||
10 Year Ultra U.S. Treasury Note Futures | Long | 9 | March 2019 | 900 | 1,171 | 38 | ||||||||||||||||||
10 Year U.S. Treasury Note Futures | Long | 7 | March 2019 | 700 | 854 | 20 | ||||||||||||||||||
|
| |||||||||||||||||||||||
$ | 180 | |||||||||||||||||||||||
|
|
Forward currency contracts
Contract amount | Unrealized (depreciation) appreciation | |||||||||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | at 12/31/2018 (000) | ||||||||||||
US | D500 | MYR | 2,100 | JPMorgan Chase | 1/4/2019 | $ | (8 | ) | ||||||||
USD | 482 | THB | 15,900 | HSBC Bank | 1/8/2019 | (6 | ) | |||||||||
USD | 1,367 | EUR | 1,200 | Citibank | 1/8/2019 | (9 | ) | |||||||||
JPY | 57,806 | EUR | 450 | HSBC Bank | 1/9/2019 | 12 | ||||||||||
JPY | 42,300 | USD | 374 | Citibank | 1/9/2019 | 12 | ||||||||||
EUR | 534 | USD | 606 | Goldman Sachs | 1/9/2019 | 6 | ||||||||||
USD | 354 | JPY | 40,000 | Bank of New York Mellon | 1/9/2019 | (11 | ) | |||||||||
USD | 513 | BRL | 2,000 | Citibank | 1/10/2019 | (3 | ) | |||||||||
USD | 350 | INR | 24,900 | Citibank | 1/10/2019 | (6 | ) | |||||||||
JPY | 9,730 | USD | 86 | JPMorgan Chase | 1/11/2019 | 3 | ||||||||||
JPY | 9,730 | USD | 86 | Goldman Sachs | 1/11/2019 | 3 | ||||||||||
USD | 162 | ILS | 600 | Goldman Sachs | 1/11/2019 | 1 | ||||||||||
USD | 497 | PLN | 1,870 | JPMorgan Chase | 1/11/2019 | (3 | ) | |||||||||
USD | 172 | JPY | 19,459 | Goldman Sachs | 1/11/2019 | (6 | ) | |||||||||
USD | 356 | INR | 25,000 | Citibank | 1/14/2019 | (1 | ) | |||||||||
USD | 378 | MYR | 1,580 | JPMorgan Chase | 1/14/2019 | (4 | ) | |||||||||
USD | 692 | INR | 49,000 | HSBC Bank | 1/15/2019 | (9 | ) | |||||||||
JPY | 116,594 | USD | 1,033 | JPMorgan Chase | 1/17/2019 | 32 | ||||||||||
USD | 871 | CAD | 1,165 | Citibank | 1/17/2019 | 17 | ||||||||||
EUR | 938 | USD | 1,068 | Goldman Sachs | 1/17/2019 | 9 | ||||||||||
KRW | 900,000 | USD | 802 | JPMorgan Chase | 1/17/2019 | 5 | ||||||||||
USD | 259 | THB | 8,500 | Bank of America, N.A. | 1/17/2019 | (2 | ) |
American Funds Insurance Series 87
Table of Contents
Global Balanced Fund
Forward currency contracts(continued)
Contract amount | Unrealized (depreciation) appreciation | |||||||||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | at 12/31/2018 (000) | ||||||||||||
USD | 796 | KRW | 900,000 | Morgan Stanley | 1/17/2019 | $ | (11 | ) | ||||||||
USD | 740 | JPY | 83,520 | Citibank | 1/17/2019 | (23 | ) | |||||||||
JPY | 110,281 | EUR | 860 | Goldman Sachs | 1/18/2019 | 21 | ||||||||||
USD | 520 | AUD | 725 | JPMorgan Chase | 1/18/2019 | 10 | ||||||||||
USD | 113 | CAD | 150 | Goldman Sachs | 1/18/2019 | 4 | ||||||||||
KRW | 532,100 | USD | 475 | HSBC Bank | 1/18/2019 | 2 | ||||||||||
GBP | 190 | USD | 243 | Citibank | 1/18/2019 | (1 | ) | |||||||||
USD | 474 | KRW | 532,100 | Goldman Sachs | 1/18/2019 | (3 | ) | |||||||||
USD | 116 | INR | 8,300 | Citibank | 1/22/2019 | (3 | ) | |||||||||
USD | 588 | BRL | 2,300 | JPMorgan Chase | 1/22/2019 | (5 | ) | |||||||||
GBP | 1,476 | USD | 1,871 | Citibank | 1/24/2019 | 13 | ||||||||||
EUR | 1,565 | USD | 1,787 | JPMorgan Chase | 1/24/2019 | 10 | ||||||||||
GBP | 270 | EUR | 300 | Bank of America, N.A. | 1/24/2019 | — | 12 | |||||||||
NOK | 2,700 | USD | 316 | Bank of New York Mellon | 1/24/2019 | (3 | ) | |||||||||
USD | 699 | AUD | 970 | UBS AG | 1/25/2019 | 15 | ||||||||||
USD | 462 | INR | 32,718 | JPMorgan Chase | 1/25/2019 | (6 | ) | |||||||||
EUR | 717 | USD | 812 | HSBC Bank | 1/28/2019 | 11 | ||||||||||
EUR | 400 | USD | 459 | HSBC Bank | 1/28/2019 | 1 | ||||||||||
NOK | 3,054 | USD | 351 | UBS AG | 1/29/2019 | 3 | ||||||||||
USD | 143 | MXN | 2,900 | HSBC Bank | 1/29/2019 | (3 | ) | |||||||||
JPY | 85,000 | USD | 754 | JPMorgan Chase | 2/13/2019 | 24 | ||||||||||
USD | 504 | CNH | 3,500 | JPMorgan Chase | 2/28/2019 | (6 | ) | |||||||||
USD | 62 | BRL | 250 | HSBC Bank | 12/20/2019 | — | 12 | |||||||||
|
| |||||||||||||||
$ | 82 | |||||||||||||||
|
|
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2018 (000) | Upfront payments/ receipts (000) | Unrealized (depreciation) appreciation at 12/31/2018 (000) | ||||||||||||||||
U.S. EFFR | 2.521% | 5/1/2019 | $ | 153,000 | $ | (19 | ) | $ | — | $ | (19 | ) | ||||||||||
(0.0385)% | EONIA | 12/4/2021 | € | 4,300 | 12 | — | 12 | |||||||||||||||
(0.0405)% | EONIA | 12/4/2021 | 4,400 | 12 | — | 12 | ||||||||||||||||
|
| |||||||||||||||||||||
$ | — | $ | 5 | |||||||||||||||||||
|
|
88 American Funds Insurance Series
Table of Contents
Global Balanced Fund
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $42,136,000, which represented 11.51% of the net assets of the fund. This amount includes $40,068,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Security did not produce income during the last 12 months. |
3 | Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $10,661,000, which represented 2.91% of the net assets of the fund. |
4 | Index-linked bond whose principal amount moves with a government price index. |
5 | All or a portion of this security was pledged as collateral. The total value of pledged collateral was $154,000, which represented .04% of the net assets of the fund. |
6 | Step bond; coupon rate may change at a later date. |
7 | Coupon rate may change periodically. |
8 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
9 | Purchased on a TBA basis. |
10 | Notional amount is calculated based on the number of contracts and notional contract size. |
11 | Value is calculated based on the notional amount and current market price. |
12 | Amount less than one thousand. |
Key to abbreviations and symbols
ADR = American Depositary Receipts
AUD = Australian dollars
BRL = Brazilian reais
CAD/C$ = Canadian dollars
CNH = Chinese yuan renminbi
EFFR = Effective Federal Funds Rate
EONIA = Euro Overnight Index Average
EUR/€ = Euros
GBP = British pounds
ILS = Israeli shekels
INR = Indian rupees
JPY/¥ = Japanese yen
KRW = South Korean won
LIBOR = London Interbank Offered Rate
MXN = Mexican pesos
MYR = Malaysian ringgits
NOK = Norwegian kroner
PLN = Polish zloty
TBA =To-be-announced
THB = Thai baht
USD/$ = U.S. dollars
See notes to financial statements
American Funds Insurance Series 89
Table of Contents
Summary investment portfolioDecember 31, 2018
Bonds, notes & other debt instruments 98.44%
Principal (000) | Value (000) | |||||||
Corporate bonds & notes 36.57% | ||||||||
Financials 10.49% | ||||||||
Bank of America Corp. 2.82%-4.27% 2023-20291 | $ | 111,866 | $ | 108,914 | ||||
General Motors Financial Co. 4.20% 2021 | 12,600 | 12,602 | ||||||
Intesa Sanpaolo SpA 5.017% 20242 | 70,790 | 64,129 | ||||||
Morgan Stanley 2.50%-3.88% 2021-20291,3 | 103,230 | 100,523 | ||||||
Other securities | 747,734 | |||||||
|
| |||||||
1,033,902 | ||||||||
|
| |||||||
Health care 6.53% | ||||||||
Teva Pharmaceutical Finance Co. BV 2.80% 2023 | 77,814 | 67,082 | ||||||
Teva Pharmaceutical Finance Co. BV 2.20%-6.75% 2021-2046 | 133,539 | 103,666 | ||||||
Other securities | 472,682 | |||||||
|
| |||||||
643,430 | ||||||||
|
| |||||||
Energy 5.02% | ||||||||
Petróleos Mexicanos 7.47% 2026 | MXN | 295,000 | 11,075 | |||||
Petróleos Mexicanos 4.63%-6.75% 2022-2048 | $ | 65,035 | 57,055 | |||||
Other securities | 426,114 | |||||||
|
| |||||||
494,244 | ||||||||
|
| |||||||
Utilities 3.49% | ||||||||
Other securities | 344,262 | |||||||
|
| |||||||
Consumer discretionary 3.03% | ||||||||
General Motors Co. 4.35%-5.95% 2025-2049 | 20,265 | 18,401 | ||||||
General Motors Financial Co. 3.15%-3.95% 2020-2024 | 71,039 | 67,851 | ||||||
Other securities | 212,152 | |||||||
|
| |||||||
298,404 | ||||||||
|
| |||||||
Consumer staples 2.82% | ||||||||
Other securities | 277,569 | |||||||
|
| |||||||
Communication services 2.07% | ||||||||
Other securities | 204,443 | |||||||
|
| |||||||
Industrials 1.04% | ||||||||
Other securities | 102,117 | |||||||
|
| |||||||
Other 2.08% | ||||||||
Other securities | 205,279 | |||||||
|
| |||||||
Total corporate bonds & notes | 3,603,650 | |||||||
|
| |||||||
U.S. Treasury bonds & notes 28.94% | ||||||||
U.S. Treasury 23.96% | ||||||||
U.S. Treasury 2.25% 2023 | 110,600 | 109,231 | ||||||
U.S. Treasury 2.50% 2023 | 57,200 | 57,218 | ||||||
U.S. Treasury 2.625% 2023 | 297,846 | 299,451 | ||||||
U.S. Treasury 2.75% 2023 | 173,600 | 175,425 | ||||||
U.S. Treasury 2.125% 20244 | 250,100 | 245,361 | ||||||
U.S. Treasury 2.125% 20244 | 72,100 | 70,548 | ||||||
U.S. Treasury 2.125% 2024 | 72,100 | 70,475 | ||||||
U.S. Treasury 2.25% 2024 | 65,000 | 64,175 | ||||||
U.S. Treasury 2.625% 2025 | 76,884 | 77,076 | ||||||
U.S. Treasury 2.75% 2025 | 132,000 | 133,361 | ||||||
U.S. Treasury 2.875% 2025 | 162,218 | 165,056 | ||||||
U.S. Treasury 2.875% 2025 | 96,200 | 97,906 | ||||||
U.S. Treasury 2.25% 2027 | 120,200 | 116,223 |
90 American Funds Insurance Series
Table of Contents
Bond Fund
Bonds, notes & other debt instruments
Principal amount (000) | Value (000) | |||||||
U.S. Treasury 2.25% 2027 | $ | 73,175 | $ | 71,072 | ||||
U.S. Treasury 3.125% 2028 | 125,656 | 130,492 | ||||||
U.S. Treasury 3.00% 20484 | 72,499 | 72,268 | ||||||
U.S. Treasury 3.125% 20484 | 85,768 | 87,519 | ||||||
U.S. Treasury 3.375% 20484 | 105,392 | 112,851 | ||||||
U.S. Treasury 2.38%-8.75% 2020-2045 | 195,161 | 206,044 | ||||||
|
| |||||||
2,361,752 | ||||||||
|
| |||||||
U.S. Treasury inflation-protected securities 4.98% | ||||||||
U.S. Treasury Inflation-Protected Security 0.625% 20235 | 50,902 | 50,107 | ||||||
U.S. Treasury Inflation-Protected Security 0.375% 20255 | 54,409 | 52,483 | ||||||
U.S. Treasury Inflation-Protected Security 0.375% 20275 | 155,061 | 147,380 | ||||||
U.S. Treasury Inflation-Protected Security 0.50% 20285 | 128,145 | 122,360 | ||||||
U.S. Treasury Inflation-Protected Security 0.75% 20285 | 71,633 | 70,160 | ||||||
U.S. Treasury Inflation-Protected Securities 0.88%-1.00% 2047-20484,5 | 57,402 | 48,055 | ||||||
|
| |||||||
490,545 | ||||||||
|
| |||||||
Total U.S. Treasury bonds & notes | 2,852,297 | |||||||
|
| |||||||
Mortgage-backed obligations 22.67% | ||||||||
Federal agency mortgage-backed obligations 22.65% | ||||||||
Fannie Mae 3.50% 20476 | 94,234 | 94,300 | ||||||
Fannie Mae 3.50% 20476 | 65,315 | 65,360 | ||||||
Fannie Mae 3.50% 20496,7 | 538,377 | 538,494 | ||||||
Fannie Mae 4.00% 20496,7 | 225,210 | 229,666 | ||||||
Fannie Mae 4.50% 20496,7 | 98,000 | 101,542 | ||||||
Fannie Mae 3.00%-9.19% 2023-20493,6 | 170,534 | 172,675 | ||||||
Freddie Mac 3.50% 20476 | 111,522 | 111,566 | ||||||
Freddie Mac 3.50% 20476 | 61,286 | 61,335 | ||||||
Freddie Mac 4.00% 20486 | 63,344 | 64,620 | ||||||
Freddie Mac 4.00% 20486 | 58,724 | 59,906 | ||||||
Freddie Mac 4.00% 20486 | 50,769 | 51,791 | ||||||
Freddie Mac 3.00%-5.50% 2033-20486 | 186,165 | 186,978 | ||||||
Government National Mortgage Assn. 4.00% 20496,7 | 78,661 | 80,560 | ||||||
Government National Mortgage Assn. 4.00% 20496,7 | 69,539 | 71,158 | ||||||
Government National Mortgage Assn. 4.50% 20496,7 | 117,450 | 121,553 | ||||||
Government National Mortgage Assn. 5.00% 20496,7 | 168,137 | 174,944 | ||||||
Government National Mortgage Assn. 5.00% 20496,7 | 23,839 | 24,782 | ||||||
Other securities | 21,002 | |||||||
|
| |||||||
2,232,232 | ||||||||
|
| |||||||
Other 0.02% | ||||||||
Other securities | 1,863 | |||||||
|
| |||||||
Total mortgage-backed obligations | 2,234,095 | |||||||
|
| |||||||
Bonds & notes of governments & government agencies outside the U.S. 6.22% | ||||||||
Italy (Republic of) 0.95% 2023 | € | 45,000 | 50,312 | |||||
Italy (Republic of) 2.00% 2028 | 21,000 | 23,045 | ||||||
Japan, Series 20, 0.10% 20255 | ¥ | 11,430,000 | 107,256 | |||||
Portuguese Republic 5.125% 2024 | $ | 89,175 | 93,569 | |||||
Portuguese Republic 4.10%-5.65% 2024-2045 | € | 20,375 | 29,237 | |||||
United Mexican States, Series M, 6.50% 2021 | MXN | 3,132,700 | 152,312 | |||||
United Mexican States 3.60% 2025 | $ | 11,500 | 10,994 | |||||
United Mexican States, Series M, 5.75% 2026 | MXN | 527,500 | 22,701 | |||||
Other securities | 123,316 | |||||||
|
| |||||||
612,742 | ||||||||
|
| |||||||
Asset-backed obligations 2.00% | ||||||||
Other securities | 197,268 | |||||||
|
|
American Funds Insurance Series 91
Table of Contents
Bond Fund
Bonds, notes & other debt instruments (continued)
Principal amount (000) | Value (000) | |||||||||
Municipals 1.93% | ||||||||||
Illinois 1.64% | ||||||||||
G.O. Bonds, Pension Funding Series 2003, 4.95% 2023 | $ | 27,060 | $ | 27,489 | ||||||
G.O. Bonds, Pension Funding Series 2003, 5.10% 20336 | 86,885 | 82,973 | ||||||||
G.O. Bonds, Pension Funding Series 2013, 5.877% 2019 | 400 | 402 | ||||||||
G.O. Bonds, Series2013-B, 3.65% 2020 | 1,825 | 1,826 | ||||||||
G.O. Bonds, Series2013-B, 4.11% 2022 | 750 | 748 | ||||||||
G.O. Bonds, Series2013-B, 4.31% 2023 | 2,125 | 2,101 | ||||||||
G.O. Bonds, Taxable Build America Bonds, Series2010-2, 5.65% 2020 | 250 | 256 | ||||||||
G.O. Bonds, Taxable Build America Bonds, Series2010-2, 5.85% 2022 | 2,370 | 2,487 | ||||||||
G.O. Bonds, Taxable Build America Bonds, Series2010-2, 5.95% 2023 | 3,210 | 3,376 | ||||||||
G.O. Bonds, Taxable Build America Bonds, Series2010-3, 5.547% 2019 | 335 | 337 | ||||||||
G.O. Bonds, Taxable Build America Bonds, Series2010-3, 5.727% 2020 | 2,400 | 2,462 | ||||||||
G.O. Bonds, Taxable Build America Bonds, Series2010-5, 6.20% 20216 | 5,838 | 6,050 | ||||||||
Other securities | 31,113 | |||||||||
|
| |||||||||
161,620 | ||||||||||
|
| |||||||||
Other 0.29% | ||||||||||
Other securities | 28,321 | |||||||||
|
| |||||||||
Total municipals | 189,941 | |||||||||
|
| |||||||||
Federal agency bonds & notes 0.11% | ||||||||||
Fannie Mae 2.125% 2026 | 11,910 | 11,395 | ||||||||
|
| |||||||||
Total bonds, notes & other debt instruments (cost: $9,812,916,000) | 9,701,388 | |||||||||
|
| |||||||||
Common stocks 0.01% | ||||||||||
Shares | ||||||||||
Other 0.01% | ||||||||||
Other securities | 422 | |||||||||
|
| |||||||||
Total common stocks (cost: $1,854,000) | 422 | |||||||||
|
| |||||||||
Rights & warrants 0.00% | ||||||||||
Energy 0.00% | ||||||||||
Other securities | 67 | |||||||||
Total rights & warrants (cost: $18,000) | 67 | |||||||||
|
| |||||||||
Short-term securities 12.62% | ||||||||||
Principal amount (000) | ||||||||||
Chevron Corp. 2.49% due 2/4/20192 | $ | 75,000 | 74,819 | |||||||
Fannie Mae 2.23% due 1/2/2019 | 3,200 | 3,199 | ||||||||
Federal Home Loan Bank 2.23%-2.39% due 1/11/2019-3/6/2019 | 483,800 | 482,671 | ||||||||
Italian Treasury Bill 0.53% due 8/14/2019 | € | 46,400 | 53,030 | |||||||
Merck & Co. Inc. 2.38% due 1/25/2019-1/29/20192 | $ | 80,000 | 79,849 | |||||||
U.S. Treasury Bills 2.19%-2.44% due 1/17/2019-5/16/2019 | 366,500 | 364,843 | ||||||||
Wal-Mart Stores, Inc. 2.46%-2.49% due 1/7/2019-1/14/20192 | 64,800 | 64,756 | ||||||||
Other securities | 120,466 | |||||||||
|
| |||||||||
Total short-term securities(cost: $1,244,163,000) | 1,243,633 | |||||||||
|
| |||||||||
Total investment securities 111.07%(cost: $11,058,951,000) | 10,945,510 | |||||||||
Other assets less liabilities (11.07)% | (1,090,823 | ) | ||||||||
|
| |||||||||
Net assets 100.00% | $ | 9,854,687 | ||||||||
|
|
92 American Funds Insurance Series
Table of Contents
Bond Fund
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” includes securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities which were valued under fair value procedures was $1,591,000, which represented .02% of the net assets of the fund. “Other securities” also includes loan participations and assignments, which may be subject to legal or contractual restrictions on resale. The total value of all such loans was $1,243,000, which represented .01% of the net assets of the fund.
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount8 (000) | Value at 12/31/20189 (000) | Unrealized appreciation (depreciation) at 12/31/2018 (000) | ||||||||||||||||||
2 Year U.S. Treasury Note Futures | Long | 3,076 | April 2019 | $ | 615,200 | $ | 653,073 | $ | 2,119 | |||||||||||||||
5 Year Euro-Bobl Futures | Short | 2,022 | March 2019 | € | (202,200) | (307,010 | ) | (813 | ) | |||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 10,571 | April 2019 | $ | 1,057,100 | 1,212,362 | 17,566 | |||||||||||||||||
10 Year Euro-Bund Futures | Short | 715 | March 2019 | € | (71,500) | (133,974 | ) | (934 | ) | |||||||||||||||
10 Year U.S. Treasury Note Futures | Long | 579 | March 2019 | $ | 57,900 | 70,647 | 1,495 | |||||||||||||||||
10 Year Ultra U.S. Treasury Note Futures | Short | 171 | March 2019 | (17,100 | ) | (22,243 | ) | (666 | ) | |||||||||||||||
30 Year Euro-Buxl Futures | Long | 268 | March 2019 | € | 26,800 | 55,462 | 1,118 | |||||||||||||||||
30 Year Ultra U.S. Treasury Bond Futures | Short | 33 | March 2019 | $ | (3,300) | (5,302 | ) | (277 | ) | |||||||||||||||
|
| |||||||||||||||||||||||
$19,608 | ||||||||||||||||||||||||
|
|
Forward currency contracts
Contract amount | Counterparty | Settlement date | Unrealized (depreciation) appreciation | |||||||||||||
Purchases (000) | Sales (000) | at 12/31/2018 (000) | ||||||||||||||
USD | 25,523 | EUR | 22,400 | Citibank | 1/8/2019 | $ | (159) | |||||||||
USD | 12,784 | JPY | 1,445,000 | Bank of America, N.A. | 1/11/2019 | (412 | ) | |||||||||
USD | 60,130 | MXN | 1,220,000 | Citibank | 1/11/2019 | (1,853 | ) | |||||||||
KRW | 44,456,000 | USD | 39,480 | JPMorgan Chase | 1/14/2019 | 380 | ||||||||||
USD | 40,106 | KRW | 44,456,000 | Morgan Stanley | 1/14/2019 | 247 | ||||||||||
USD | 53,016 | EUR | 46,600 | HSBC Bank | 1/17/2019 | (456 | ) | |||||||||
USD | 117,705 | MXN | 2,400,000 | Morgan Stanley | 1/17/2019 | (4,095 | ) | |||||||||
JPY | 13,203,300 | USD | 117,462 | Goldman Sachs | 1/18/2019 | 3,183 | ||||||||||
EUR | 34,400 | USD | 39,182 | Citibank | 1/18/2019 | 294 | ||||||||||
CNH | 273,100 | USD | 39,613 | Citibank | 1/18/2019 | 149 | ||||||||||
USD | 39,868 | CNH | 273,100 | HSBC Bank | 1/18/2019 | 107 | ||||||||||
USD | 439 | EUR | 385 | HSBC Bank | 1/18/2019 | (3 | ) | |||||||||
USD | 39,223 | EUR | 34,400 | HSBC Bank | 1/18/2019 | (253 | ) | |||||||||
USD | 39,249 | JPY | 4,444,800 | Citibank | 1/18/2019 | (1,365 | ) | |||||||||
USD | 78,055 | JPY | 8,758,500 | HSBC Bank | 1/18/2019 | (1,976 | ) | |||||||||
USD | 5,622 | EUR | 4,925 | JPMorgan Chase | 1/24/2019 | (33 | ) | |||||||||
USD | 12,492 | MXN | 252,000 | Citibank | 1/24/2019 | (281 | ) | |||||||||
USD | 124,696 | EUR | 109,250 | HSBC Bank | 1/24/2019 | (743 | ) | |||||||||
USD | 64,722 | JPY | 7,300,000 | Morgan Stanley | 1/24/2019 | (2,013 | ) | |||||||||
USD | 30,599 | JPY | 3,430,000 | Goldman Sachs | 1/29/2019 | (770 | ) | |||||||||
USD | 54,526 | EUR | 46,000 | Bank of America, N.A. | 8/14/2019 | 781 | ||||||||||
|
| |||||||||||||||
$ | (9,271 | ) | ||||||||||||||
|
|
American Funds Insurance Series 93
Table of Contents
Bond Fund
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2018 (000) | Upfront payments/ receipts (000) | Unrealized (depreciation) appreciation at 12/31/2018 (000) | ||||||||||||||||
1.6915% | 3-monthUSD-LIBOR | 6/3/2020 | $ | 1,600 | $ | (23 | ) | $ | — | $ | (23 | ) | ||||||||||
3-monthUSD-LIBOR | 1.975% | 4/27/2022 | 15,000 | 288 | — | 288 | ||||||||||||||||
U.S. EFFR | 2.4435% | 12/20/2023 | 5,508 | (42 | ) | — | (42 | ) | ||||||||||||||
U.S. EFFR | 2.45375% | 12/20/2023 | 49,336 | (403 | ) | — | (403 | ) | ||||||||||||||
U.S. EFFR | 2.4225% | 12/24/2023 | 22,594 | (151 | ) | — | (152 | ) | ||||||||||||||
6-month EURIBOR | 0.9852% | 10/17/2024 | € | 25,000 | (1,119 | ) | — | (1,119 | ) | |||||||||||||
3-monthUSD-LIBOR | 2.438% | 11/19/2024 | $ | 750 | 6 | — | 6 | |||||||||||||||
3-monthUSD-LIBOR | 2.0475% | 3/23/2025 | 450 | 14 | — | 14 | ||||||||||||||||
3-monthUSD-LIBOR | 2.3175% | 5/8/2025 | 1,500 | 25 | — | 25 | ||||||||||||||||
3-monthUSD-LIBOR | 2.339% | 5/13/2025 | 375 | 6 | — | 6 | ||||||||||||||||
3-monthUSD-LIBOR | 2.351% | 5/15/2025 | 590 | 9 | — | 9 | ||||||||||||||||
3-monthUSD-LIBOR | 2.287% | 5/20/2025 | 500 | 9 | — | 9 | ||||||||||||||||
3-monthUSD-LIBOR | 2.227% | 5/28/2025 | 260 | 6 | — | 6 | ||||||||||||||||
3-monthUSD-LIBOR | 2.2125% | 5/29/2025 | 465 | 11 | — | 11 | ||||||||||||||||
3-monthUSD-LIBOR | 2.451% | 6/5/2025 | 650 | 6 | — | 6 | ||||||||||||||||
3-monthUSD-LIBOR | 2.46% | 6/10/2025 | 2,536 | 22 | — | 22 | ||||||||||||||||
3-monthUSD-LIBOR | 2.455% | 6/24/2025 | 235 | 2 | — | 2 | ||||||||||||||||
3-monthUSD-LIBOR | 2.397% | 7/13/2025 | 900 | 11 | — | 11 | ||||||||||||||||
3-monthUSD-LIBOR | 2.535% | 7/15/2025 | 800 | 4 | — | 4 | ||||||||||||||||
3-monthUSD-LIBOR | 2.4615% | 7/22/2025 | 1,300 | 12 | — | 12 | ||||||||||||||||
3-monthUSD-LIBOR | 2.312% | 7/29/2025 | 1,000 | 18 | — | 18 | ||||||||||||||||
3-monthUSD-LIBOR | 2.331% | 7/30/2025 | 435 | 7 | — | 7 | ||||||||||||||||
3-monthUSD-LIBOR | 2.228% | 9/4/2025 | 12,000 | 285 | — | 285 | ||||||||||||||||
6-monthJPY-LIBOR | 0.0875% | 3/10/2026 | ¥ | 11,100,000 | (92 | ) | — | (92 | ) | |||||||||||||
3-monthUSD-LIBOR | 1.595% | 5/12/2026 | $ | 8,500 | 593 | — | 593 | |||||||||||||||
3-monthUSD-LIBOR | 1.592% | 5/12/2026 | 4,000 | 280 | — | 280 | ||||||||||||||||
3.0865% | 3-monthUSD-LIBOR | 8/18/2034 | 2,250 | 80 | — | 80 | ||||||||||||||||
2.844% | 3-monthUSD-LIBOR | 6/11/2035 | 3,250 | 11 | — | 11 | ||||||||||||||||
2.773% | 3-monthUSD-LIBOR | 7/13/2035 | 500 | (3 | ) | — | (3 | ) | ||||||||||||||
2.589% | 3-monthUSD-LIBOR | 9/4/2035 | 3,100 | (98 | ) | — | (98 | ) | ||||||||||||||
2.377% | 3-monthUSD-LIBOR | 4/29/2045 | 1,910 | (169 | ) | — | (169 | ) | ||||||||||||||
6-monthJPY-LIBOR | 0.58295% | 3/23/2046 | ¥ | 2,000,000 | 518 | — | 518 | |||||||||||||||
0.64355% | 6-monthJPY-LIBOR | 4/27/2046 | 2,000,000 | (237 | ) | — | (237 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.1155% | 5/13/2046 | $ | 2,400 | 342 | — | 342 | |||||||||||||||
|
| |||||||||||||||||||||
$ | — | $ | 227 | |||||||||||||||||||
|
|
94 American Funds Insurance Series
Table of Contents
Bond Fund
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Step bond; coupon rate may change at a later date. |
2 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $1,180,984,000, which represented 11.98% of the net assets of the fund. |
3 | Coupon rate may change periodically. |
4 | All or a portion of this security was pledged as collateral. The total value of pledged collateral was $25,155,000, which represented .26% of the net assets of the fund. |
5 | Index-linked bond whose principal amount moves with a government price index. |
6 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
7 | Purchased on a TBA basis. |
8 | Notional amount is calculated based on the number of contracts and notional contract size. |
9 | Value is calculated based on the notional amount and current market price. |
Key to abbreviations and symbols
CNH = Chinese yuan renminbi
EFFR = Effective Federal Funds Rate
EUR/€ = Euros
EURIBOR = Euro Interbank Offered Rate
G.O. = General Obligation
JPY/¥ = Japanese yen
KRW = South Korean won
LIBOR = London Interbank Offered Rate
MXN = Mexican pesos
TBA =To-be-announced
USD/$ = U.S. dollars
See notes to financial statements
American Funds Insurance Series 95
Table of Contents
Summary investment portfolioDecember 31, 2018
Bonds, notes & other debt instruments 92.18%
Principal amount (000) | Value (000) | |||||||
Japanese yen 11.88% | ||||||||
Japan, Series 395, 0.10% 2020 | ¥ | 5,380,000 | $ | 49,306 | ||||
Japan, Series 19, 0.10% 20241 | 2,428,632 | 22,734 | ||||||
Japan, Series 18, 0.10% 20241 | 1,958,856 | 18,301 | ||||||
Japan, Series 21, 0.10% 20261 | 989,420 | 9,329 | ||||||
Japan, Series 346, 0.10% 2027 | 3,125,000 | 28,990 | ||||||
Japan, Series 116, 2.20% 2030 | 1,735,000 | 19,560 | ||||||
Japan, Series 145, 1.70% 2033 | 2,210,000 | 24,308 | ||||||
Japan 0.10%-2.30% 2020-20481 | 7,835,970 | 75,509 | ||||||
|
| |||||||
248,037 | ||||||||
|
| |||||||
Euros 11.27% | ||||||||
Canada 3.50% 2020 | € | 2,500 | 2,983 | |||||
Germany (Federal Republic of) 0.50% 2027 | 12,360 | 14,640 | ||||||
Germany (Federal Republic of) 0.50% 2028 | 11,000 | 12,976 | ||||||
Germany (Federal Republic of) 1.25% 20482 | 8,750 | 11,016 | ||||||
Germany (Federal Republic of) 1.75%-6.25% 2024-2046 | 9,670 | 14,363 | ||||||
Ireland (Republic of) 0.90% 2028 | 8,090 | 9,275 | ||||||
Italy (Republic of) 1.35% 2022 | 12,950 | 14,891 | ||||||
Italy (Republic of) 2.05%-4.75% 2023-2027 | 12,730 | 15,089 | ||||||
Romania 2.88%-3.88% 2029-2038 | 12,150 | 13,170 | ||||||
Spain (Kingdom of) 1.45% 2027 | 18,230 | 21,194 | ||||||
Spain (Kingdom of) 1.50% 2027 | 10,350 | 12,131 | ||||||
Spain (Kingdom of) 2.70%-2.90% 2046-2048 | 7,145 | 8,415 | ||||||
Other securities | 85,261 | |||||||
|
| |||||||
235,404 | ||||||||
|
| |||||||
Mexican pesos 3.57% | ||||||||
Petróleos Mexicanos 7.47% 2026 | MXN | 59,000 | 2,215 | |||||
United Mexican States, Series M, 8.00% 2023 | 301,000 | 14,960 | ||||||
United Mexican States, Series M, 5.75% 2026 | 611,500 | 26,316 | ||||||
United Mexican States 6.50%-10.00% 2020-2042 | 618,500 | 30,947 | ||||||
|
| |||||||
74,438 | ||||||||
|
| |||||||
Polish zloty 3.51% | ||||||||
Poland (Republic of), Series 1021, 5.75% 2021 | PLN | 101,030 | 29,970 | |||||
Poland (Republic of), Series 0922, 5.75% 2022 | 34,600 | 10,513 | ||||||
Poland (Republic of), Series 0725, 3.25% 2025 | 34,750 | 9,721 | ||||||
Poland (Republic of) 1.50%-5.25% 2020-2023 | 82,090 | 23,109 | ||||||
|
| |||||||
73,313 | ||||||||
|
| |||||||
Danish kroner 3.15% | ||||||||
Nykredit Realkredit AS, Series 01E, 1.50% 20373 | DKr | 107,828 | 16,675 | |||||
Nykredit Realkredit AS, Series 01E, 1.50% 20403 | 284,656 | 43,453 | ||||||
Nykredit Realkredit AS 2.00%-2.50% 2037-20473 | 35,015 | 5,605 | ||||||
|
| |||||||
65,733 | ||||||||
|
| |||||||
Indian rupees 2.19% | ||||||||
India (Republic of) 8.83% 2023 | INR | 884,200 | 13,507 | |||||
India (Republic of) 6.79%-7.88% 2021-2030 | 2,013,270 | 28,514 | ||||||
Other securities | 3,779 | |||||||
|
| |||||||
45,800 | ||||||||
|
| |||||||
British pounds 2.08% | ||||||||
United Kingdom 3.25% 2044 | £ | 6,500 | 10,597 | |||||
United Kingdom 1.25%-4.25% 2022-2047 | 22,535 | 30,170 | ||||||
Other securities | 2,609 | |||||||
|
| |||||||
43,376 | ||||||||
|
|
96 American Funds Insurance Series
Table of Contents
Global Bond Fund
Bonds, notes & other debt instruments
Principal amount (000) | Value (000) | |||||||
Brazilian reais 1.58% | ||||||||
Brazil (Federative Republic of) 0% 2021 | BRL | 14,000 | $ | 3,000 | ||||
Brazil (Federative Republic of) 0% 2022 | 75,000 | 14,641 | ||||||
Brazil (Federative Republic of) 10.00% 2025 | 57,090 | 15,395 | ||||||
|
| |||||||
33,036 | ||||||||
|
| |||||||
Thai baht 1.30% | ||||||||
Thailand (Kingdom of) 2.125% 2026 | THB | 317,750 | 9,552 | |||||
Thailand (Kingdom of) 1.88%-3.85% 2022-2032 | 363,200 | 11,440 | ||||||
Other securities | 6,237 | |||||||
|
| |||||||
27,229 | ||||||||
|
| |||||||
Israeli shekels 0.88% | ||||||||
Israel (State of) 5.50% 2042 | ILS | 29,300 | 10,802 | |||||
Other securities | 7,518 | |||||||
|
| |||||||
18,320 | ||||||||
|
| |||||||
Chilean pesos 0.73% | ||||||||
Chile (Banco Central de) 4.00% 2023 | CLP | 6,765,000 | 9,796 | |||||
Other securities | 5,378 | |||||||
|
| |||||||
15,174 | ||||||||
|
| |||||||
Malaysian ringgits 0.72% | ||||||||
Malaysia (Federation of), Series 0310, 4.498% 2030 | MYR | 42,250 | 10,327 | |||||
Other securities | 4,802 | |||||||
|
| |||||||
15,129 | ||||||||
|
| |||||||
Romanian leu 0.69% | ||||||||
Romania 2.30%-5.95% 2020-2022 | RON | 59,100 | 14,495 | |||||
|
| |||||||
Canadian dollars 0.48% | ||||||||
Canada 1.00%-2.25% 2022-2025 | C$ | 10,500 | 7,808 | |||||
Other securities | 2,231 | |||||||
|
| |||||||
10,039 | ||||||||
|
| |||||||
U.S. dollars 43.81% | ||||||||
Banco Nacional de Comercio Exterior SNC 3.80% 2026 (UST Yield Curve Rate T Note Constant Maturity 5 year + 3.00% on 8/11/2021)4,5 | $ | 880 | 843 | |||||
Fannie Mae 3.50% 20493,6 | 15,500 | 15,503 | ||||||
Fannie Mae 4.00% 20493,6 | 17,329 | 17,672 | ||||||
Fannie Mae 4.50% 20493,6 | 13,050 | 13,522 | ||||||
Fannie Mae 2.18%-4.00% 2022-20483 | 8,034 | 8,110 | ||||||
Petrobras Global Finance Co. 5.30%-6.13% 2022-2025 | 2,307 | 2,256 | ||||||
Petróleos Mexicanos 6.35%-6.50% 2027-2048 | 3,602 | 3,264 | ||||||
Poland (Republic of) 3.25%-4.00% 2024-2026 | 5,570 | 5,508 | ||||||
Romania 5.125% 20485 | 6,200 | 5,991 | ||||||
U.S. Treasury 1.875% 20242 | 9,400 | 9,076 | ||||||
U.S. Treasury 2.75% 2025 | 10,140 | 10,244 | ||||||
U.S. Treasury 2.00% 20262 | 33,560 | 32,039 | ||||||
U.S. Treasury 2.25% 2027 | 27,700 | 26,783 | ||||||
U.S. Treasury 2.75% 20282 | 62,500 | 62,881 | ||||||
U.S. Treasury 2.875% 2028 | 43,500 | 44,217 | ||||||
U.S. Treasury 2.875% 2028 | 19,850 | 20,171 | ||||||
U.S. Treasury 2.75% 20472 | 17,800 | 16,872 | ||||||
U.S. Treasury 3.00% 20482 | 23,800 | 23,724 | ||||||
U.S. Treasury 3.00% 2048 | 10,600 | 10,559 | ||||||
U.S. Treasury 2.13%-2.88% 2020-2025 | 36,730 | 36,781 | ||||||
U.S. Treasury Inflation-Protected Security 0.625% 20241 | 27,337 | 26,927 | ||||||
U.S. Treasury Inflation-Protected Security 0.25% 20251 | 11,851 | 11,349 | ||||||
U.S. Treasury Inflation-Protected Security 0.625% 20261 | 10,323 | 10,059 |
American Funds Insurance Series 97
Table of Contents
Global Bond Fund
Bonds, notes & other debt instruments (continued)
Principal amount (000) | Value (000) | |||||||
U.S. dollars (continued) | ||||||||
U.S. Treasury Inflation-Protected Securities 0.13%-2.38% 2023-20461,2 | $ | 39,818 | $ | 38,799 | ||||
United Mexican States 4.15% 2027 | 1,910 | 1,850 | ||||||
Other securities | 459,714 | |||||||
|
| |||||||
914,714 | ||||||||
|
| |||||||
Other 4.34% | ||||||||
Other securities | 90,558 | |||||||
|
| |||||||
Total bonds, notes & other debt instruments (cost: $1,967,091,000) | 1,924,795 | |||||||
|
| |||||||
Convertible bonds 0.00% | ||||||||
U.S. dollars 0.00% | ||||||||
Other securities | 100 | |||||||
|
| |||||||
Total convertible bonds(cost: $110,000) | 100 | |||||||
|
| |||||||
Convertible stocks 0.05% | ||||||||
Shares | ||||||||
U.S. dollars 0.05% | ||||||||
Other securities | 1,033 | |||||||
|
| |||||||
Total convertible stocks(cost: $816,000) | 1,033 | |||||||
|
| |||||||
Common stocks 0.05% | ||||||||
Swiss francs 0.01% | ||||||||
Other securities | 283 | |||||||
|
| |||||||
U.S. dollars 0.04% | ||||||||
Other securities | 752 | |||||||
|
| |||||||
Total common stocks(cost: $3,196,000) | 1,035 | |||||||
|
| |||||||
Rights & warrants 0.00% | ||||||||
U.S. dollars 0.00% | ||||||||
Other securities | 41 | |||||||
|
| |||||||
Total rights & warrants(cost: $11,000) | 41 | |||||||
|
| |||||||
Short-term securities 9.42% | ||||||||
Principal amount (000) | ||||||||
Bank of New York Mellon Corp. 2.30% due 1/2/2019 | $ | 17,600 | 17,598 | |||||
Canada Bill 2.32% due 1/3/2019 | 20,000 | 19,996 | ||||||
Federal Home Loan Bank 2.29% due 1/10/2019 | 10,000 | 9,995 | ||||||
Japanese Treasury Discount Bill (0.14)% due 5/20/2019 | ¥ | 11,900,000 | 108,639 | |||||
Québec (Province of) 2.52% due 1/22/20195 | $ | 15,000 | 14,978 | |||||
Other securities | 25,382 | |||||||
|
| |||||||
Total short-term securities (cost: $195,904,000) | 196,588 | |||||||
|
| |||||||
Total investment securities 101.70% (cost: $2,167,128,000) | 2,123,592 | |||||||
Other assets less liabilities (1.70)% | (35,575 | ) | ||||||
|
| |||||||
Net assets 100.00% | $ | 2,088,017 | ||||||
|
|
98 American Funds Insurance Series
Table of Contents
Global Bond Fund
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” includes securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities which were valued under fair value procedures was $2,483,000, which represented .12% of the net assets of the fund. This amount includes $283,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. “Other securities“ also includes loan participations and assignments, which may be subject to legal or contractual restrictions on resale. The total value of all such loans was $3,706,000, which represented .18% of the net assets of the fund. Some securities in “Other securities” (with an aggregate value of $2,768,000, an aggregate cost of $2,711,000, and which represented .13% of the net assets of the fund) were acquired from 8/31/2015 to 11/16/2018 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject them to legal or contractual restrictions on resale.
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount7 (000) | Value at 12/31/20188 (000) | Unrealized (depreciation) appreciation at 12/31/2018 (000) | ||||||||||||||||||
90 Day Euro Dollar Futures | Short | 224 | September 2019 | $ | (56,000 | ) | $ | (54,510 | ) | $ | (171 | ) | ||||||||||||
5 Year U.S. Treasury Note Futures | Long | 2,309 | April 2019 | 230,900 | 264,813 | 3,348 | ||||||||||||||||||
10 Year Euro-Bund Futures | Long | 149 | March 2019 | € | 14,900 | 27,919 | 193 | |||||||||||||||||
10 Year Ultra U.S. Treasury Note Futures | Long | 232 | March 2019 | $ | 23,200 | 30,178 | 972 | |||||||||||||||||
10 Year U.S. Treasury Note Futures | Long | 175 | March 2019 | 17,500 | 21,353 | 493 | ||||||||||||||||||
30 Year Euro-Buxl Futures | Long | 54 | March 2019 | € | 5,400 | 11,175 | 225 | |||||||||||||||||
30 Year Ultra U.S. Treasury Bond Futures | Short | 94 | March 2019 | $ | (9,400 | ) | (15,102 | ) | (789 | ) | ||||||||||||||
|
| |||||||||||||||||||||||
$ | 4,271 | |||||||||||||||||||||||
|
|
Forward currency contracts
Contract amount | Unrealized (depreciation) at 12/31/2018 (000) | |||||||||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | |||||||||||||
USD | 1,415 | EUR | 1,235 | Morgan Stanley | 1/4/2019 | $ | (1 | ) | ||||||||
GBP | 5,400 | USD | 6,935 | Citibank | 1/4/2019 | (51 | ) | |||||||||
USD | 5,236 | MYR | 22,000 | JPMorgan Chase | 1/4/2019 | (87 | ) | |||||||||
EUR | 23,161 | DKK | 172,900 | Morgan Stanley | 1/7/2019 | 3 | ||||||||||
USD | 8,200 | CNH | 57,000 | Citibank | 1/7/2019 | (100 | ) | |||||||||
USD | 8,990 | ILS | 33,250 | Bank of America, N.A. | 1/8/2019 | 92 | ||||||||||
EUR | 6,815 | USD | 7,765 | Citibank | 1/8/2019 | 48 | ||||||||||
USD | 11,166 | EUR | 9,800 | Citibank | 1/8/2019 | (69 | ) | |||||||||
USD | 7,414 | THB | 244,600 | HSBC Bank | 1/8/2019 | (98 | ) | |||||||||
JPY | 1,402,472 | USD | 12,401 | Citibank | 1/9/2019 | 405 | ||||||||||
JPY | 898,800 | USD | 7,932 | HSBC Bank | 1/9/2019 | 274 | ||||||||||
JPY | 616,594 | EUR | 4,800 | HSBC Bank | 1/9/2019 | 126 | ||||||||||
EUR | 10,070 | USD | 11,427 | Goldman Sachs | 1/9/2019 | 120 | ||||||||||
GBP | 2,900 | USD | 3,707 | Goldman Sachs | 1/9/2019 | (9 | ) | |||||||||
NOK | 32,228 | DKK | 24,600 | Citibank | 1/9/2019 | (49 | ) | |||||||||
USD | 3,560 | JPY | 400,000 | Morgan Stanley | 1/9/2019 | (92 | ) | |||||||||
USD | 3,479 | JPY | 392,473 | JPMorgan Chase | 1/9/2019 | (105 | ) | |||||||||
USD | 3,933 | JPY | 445,000 | Bank of New York Mellon | 1/9/2019 | (131 | ) | |||||||||
USD | 8,751 | JPY | 988,000 | Bank of New York Mellon | 1/9/2019 | (270 | ) | |||||||||
USD | 8,438 | BRL | 32,900 | Citibank | 1/10/2019 | (44 | ) | |||||||||
USD | 7,107 | INR | 504,900 | Citibank | 1/10/2019 | (116 | ) | |||||||||
JPY | 652,169 | USD | 5,766 | JPMorgan Chase | 1/11/2019 | 190 | ||||||||||
JPY | 652,169 | USD | 5,766 | Goldman Sachs | 1/11/2019 | 190 | ||||||||||
USD | 5,171 | CAD | 6,810 | Bank of America, N.A. | 1/11/2019 | 181 | ||||||||||
JPY | 429,000 | USD | 3,818 | HSBC Bank | 1/11/2019 | 100 | ||||||||||
EUR | 4,100 | USD | 4,676 | Bank of America, N.A. | 1/11/2019 | 26 |
American Funds Insurance Series 99
Table of Contents
Global Bond Fund
Forward currency contracts(continued)
Contract amount | Unrealized (depreciation) appreciation at 12/31/2018 | |||||||||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | |||||||||||||
USD | 2,787 | ILS | 10,350 | Goldman Sachs | 1/11/2019 | $ | 17 | |||||||||
EUR | 3,810 | USD | 4,362 | Citibank | 1/11/2019 | 7 | ||||||||||
USD | 1,439 | CNH | 10,000 | Bank of America, N.A. | 1/11/2019 | (17 | ) | |||||||||
USD | 5,584 | PLN | 21,020 | JPMorgan Chase | 1/11/2019 | (34 | ) | |||||||||
USD | 9,031 | EUR | 7,910 | HSBC Bank | 1/11/2019 | (40 | ) | |||||||||
NOK | 34,715 | USD | 4,070 | HSBC Bank | 1/11/2019 | (53 | ) | |||||||||
USD | 2,787 | JPY | 314,337 | JPMorgan Chase | 1/11/2019 | (84 | ) | |||||||||
USD | 6,138 | JPY | 693,000 | Morgan Stanley | 1/11/2019 | (191 | ) | |||||||||
USD | 6,420 | JPY | 726,000 | Goldman Sachs | 1/11/2019 | (210 | ) | |||||||||
USD | 11,983 | INR | 852,700 | HSBC Bank | 1/11/2019 | (215 | ) | |||||||||
USD | 7,733 | COP | 24,598,000 | Goldman Sachs | 1/14/2019 | 164 | ||||||||||
EUR | 14,620 | USD | 16,744 | Citibank | 1/14/2019 | 27 | ||||||||||
DKK | 49,300 | USD | 7,562 | Morgan Stanley | 1/14/2019 | 13 | ||||||||||
COP | 24,598,000 | USD | 7,574 | Citibank | 1/14/2019 | (5 | ) | |||||||||
GBP | 3,000 | USD | 3,842 | Bank of America, N.A. | 1/14/2019 | (15 | ) | |||||||||
USD | 5,446 | EUR | 4,765 | JPMorgan Chase | 1/14/2019 | (20 | ) | |||||||||
USD | 7,641 | INR | 536,000 | Citibank | 1/14/2019 | (24 | ) | |||||||||
USD | 3,515 | MYR | 14,700 | JPMorgan Chase | 1/14/2019 | (42 | ) | |||||||||
USD | 7,492 | DKK | 49,300 | HSBC Bank | 1/14/2019 | (83 | ) | |||||||||
JPY | 925,000 | AUD | 11,424 | Morgan Stanley | 1/15/2019 | 401 | ||||||||||
USD | 7,602 | CLP | 5,210,800 | Goldman Sachs | 1/15/2019 | 91 | ||||||||||
USD | 2,613 | INR | 185,000 | Goldman Sachs | 1/15/2019 | (32 | ) | |||||||||
USD | 2,612 | INR | 185,000 | Citibank | 1/15/2019 | (34 | ) | |||||||||
CLP | 5,210,800 | USD | 7,816 | HSBC Bank | 1/15/2019 | (305 | ) | |||||||||
JPY | 2,838,652 | USD | 25,158 | Goldman Sachs | 1/17/2019 | 778 | ||||||||||
JPY | 2,613,753 | USD | 23,167 | JPMorgan Chase | 1/17/2019 | 715 | ||||||||||
EUR | 29,522 | USD | 33,592 | Goldman Sachs | 1/17/2019 | 283 | ||||||||||
KRW | 10,400,000 | USD | 9,265 | JPMorgan Chase | 1/17/2019 | 61 | ||||||||||
USD | 365 | JPY | 41,240 | Morgan Stanley | 1/17/2019 | (11 | ) | |||||||||
USD | 2,369 | THB | 77,700 | Bank of America, N.A. | 1/17/2019 | (18 | ) | |||||||||
USD | 9,204 | KRW | 10,400,000 | Morgan Stanley | 1/17/2019 | (122 | ) | |||||||||
USD | 23,182 | JPY | 2,613,753 | JPMorgan Chase | 1/17/2019 | (699 | ) | |||||||||
USD | 22,776 | AUD | 31,600 | JPMorgan Chase | 1/18/2019 | 510 | ||||||||||
JPY | 1,061,774 | EUR | 8,280 | Goldman Sachs | 1/18/2019 | 200 | ||||||||||
USD | 3,805 | AUD | 5,300 | JPMorgan Chase | 1/18/2019 | 71 | ||||||||||
KRW | 8,289,700 | USD | 7,397 | HSBC Bank | 1/18/2019 | 37 | ||||||||||
GBP | 2,890 | USD | 3,693 | Citibank | 1/18/2019 | (6 | ) | |||||||||
USD | 7,381 | KRW | 8,289,700 | Goldman Sachs | 1/18/2019 | (53 | ) | |||||||||
AUD | 31,600 | USD | 23,270 | Citibank | 1/18/2019 | (1,004 | ) | |||||||||
USD | 7,968 | ZAR | 114,700 | Citibank | 1/22/2019 | 18 | ||||||||||
USD | 2,044 | BRL | 8,000 | JPMorgan Chase | 1/22/2019 | (18 | ) | |||||||||
USD | 4,171 | INR | 299,650 | Citibank | 1/22/2019 | (110 | ) | |||||||||
TRY | 13,100 | USD | 1,928 | Citibank | 1/24/2019 | 512 | ||||||||||
GBP | 19,649 | USD | 24,901 | Citibank | 1/24/2019 | 175 | ||||||||||
GBP | 6,123 | USD | 7,757 | HSBC Bank | 1/24/2019 | 57 | ||||||||||
GBP | 4,430 | EUR | 4,917 | Bank of America, N.A. | 1/24/2019 | 8 | ||||||||||
EUR | 13,105 | PLN | 56,400 | HSBC Bank | 1/24/2019 | (30 | ) | |||||||||
NOK | 37,200 | USD | 4,352 | Bank of New York Mellon | 1/24/2019 | (45 | ) | |||||||||
USD | 2,192 | TRY | 13,100 | Morgan Stanley | 1/24/2019 | (248 | ) | |||||||||
USD | 9,370 | AUD | 13,010 | UBS AG | 1/25/2019 | 202 | ||||||||||
USD | 2,300 | INR | 163,000 | JPMorgan Chase | 1/25/2019 | (28 | ) | |||||||||
EUR | 12,479 | USD | 14,143 | HSBC Bank | 1/28/2019 | 190 | ||||||||||
EUR | 6,600 | USD | 7,570 | HSBC Bank | 1/28/2019 | 11 | ||||||||||
GBP | 2,580 | USD | 3,267 | HSBC Bank | 1/29/2019 | 27 | ||||||||||
USD | 6,286 | CNH | 44,000 | JPMorgan Chase | 1/31/2019 | (119 | ) | |||||||||
JPY | 964,000 | USD | 8,549 | JPMorgan Chase | 2/13/2019 | 277 | ||||||||||
USD | 5,553 | CNH | 38,600 | JPMorgan Chase | 2/28/2019 | (66 | ) |
100 American Funds Insurance Series
Table of Contents
Global Bond Fund
Contract amount | Unrealized (depreciation) appreciation at 12/31/2018 | |||||||||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | |||||||||||||
USD | 5,778 | BRL | 19,300 | Citibank | 3/11/2019 | $ | 824 | |||||||||
BRL | 19,300 | USD | 5,077 | JPMorgan Chase | 3/11/2019 | (123 | ) | |||||||||
USD | 16,793 | BRL | 56,500 | JPMorgan Chase | 3/15/2019 | 2,296 | ||||||||||
BRL | 28,900 | USD | 7,207 | Citibank | 3/15/2019 | 208 | ||||||||||
USD | 1,143 | EUR | 900 | JPMorgan Chase | 3/15/2019 | 105 | ||||||||||
BRL | 27,600 | USD | 7,227 | JPMorgan Chase | 3/15/2019 | (145 | ) | |||||||||
USD | 3,620 | BRL | 14,200 | JPMorgan Chase | 3/18/2019 | (23 | ) | |||||||||
USD | 947 | EUR | 745 | Goldman Sachs | 4/12/2019 | 85 | ||||||||||
USD | 4,015 | BRL | 15,125 | Morgan Stanley | 4/30/2019 | 148 | ||||||||||
JPY | 4,675,000 | USD | 41,886 | JPMorgan Chase | 5/20/2019 | 1,270 | ||||||||||
USD | 110,652 | JPY | 11,900,000 | Citibank | 5/20/2019 | 801 | ||||||||||
JPY | 445,496 | USD | 3,988 | Citibank | 5/20/2019 | 124 | ||||||||||
USD | 2,780 | BRL | 11,000 | Morgan Stanley | 12/16/2019 | 20 | ||||||||||
USD | 10,781 | BRL | 43,200 | Citibank | 12/18/2019 | (58 | ) | |||||||||
USD | 2,365 | BRL | 9,500 | HSBC Bank | 12/20/2019 | (18 | ) | |||||||||
|
| |||||||||||||||
$ | 6,918 | |||||||||||||||
|
|
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2018 (000) | Upfront payments/ receipts (000) | Unrealized (depreciation) appreciation at 12/31/2018 (000) | ||||||||||||||||
U.S. EFFR | 2.521% | 5/1/2019 | $ | 2,284,000 | $ | (284 | ) | $ | — | $ | (284 | ) | ||||||||||
(0.025)% | EONIA | 12/3/2021 | € | 48,000 | 152 | — | 152 | |||||||||||||||
(0.0385)% | EONIA | 12/4/2021 | 64,600 | 183 | — | 183 | ||||||||||||||||
|
|
|
| |||||||||||||||||||
$ | — | $ | 51 | |||||||||||||||||||
|
|
|
|
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Index-linked bond whose principal amount moves with a government price index. |
2 | All or a portion of this security was pledged as collateral. The total value of pledged collateral was $4,216,000, which represented .20% of the net assets of the fund. |
3 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
4 | Step bond; coupon rate may change at a later date. |
5 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $188,658,000, which represented 9.04% of the net assets of the fund. |
6 | Purchased on a TBA basis. |
7 | Notional amount is calculated based on the number of contracts and notional contract size. |
8 | Value is calculated based on the notional amount and current market price. |
American Funds Insurance Series 101
Table of Contents
Global Bond Fund
Key to abbreviations and symbols
ADR = American Depositary Receipts
AUD/A$ = Australian dollars
BRL = Brazilian reais
CAD/C$ = Canadian dollars
CDI = CREST Depository Interest
CHF = Swiss francs
CLP = Chilean pesos
CNH = Chinese yuan renminbi
DKr = Danish kroner
EFFR = Effective Federal Funds Rate
EONIA = Euro Overnight Index Average
EUR/€ = Euros
EURIBOR = Euro Interbank Offered Rate
GBP/£ = British pounds
ILS = Israeli shekels
INR = Indian rupees
JPY/¥ = Japanese yen
KRW = South Korean won
LIBOR = London Interbank Offered Rate
MXN = Mexican pesos
MYR = Malaysian ringgits
NOK/NKr = Norwegian kroner
PEN = Peruvian nuevos soles
PLN = Polish zloty
TBA =To-be-announced
THB = Thai baht
USD/$ = U.S. dollars
ZAR = South African rand
See notes to financial statements
102 American Funds Insurance Series
Table of Contents
Summary investment portfolioDecember 31, 2018
Bonds, notes & other debt instruments 94.82%
Principal amount (000) | Value (000) | |||||||
Corporate bonds & notes 94.56% | ||||||||
Communication services 15.62% | ||||||||
Cablevision Systems Corp. 6.75% 2021 | $ | 5,025 | $ | 5,163 | ||||
CCO Holdings LLC and CCO Holdings Capital Corp. 5.75% 20261 | 6,450 | 6,337 | ||||||
CCO Holdings LLC and CCO Holdings Capital Corp. 4.00%-5.88% 2023-20281 | 10,400 | 9,816 | ||||||
CenturyLink, Inc. 6.75% 2023 | 7,100 | 6,860 | ||||||
Clear Channel Worldwide Holdings, Inc. 7.625% 2020 | 18,500 | 18,107 | ||||||
Frontier Communications Corp. 10.50% 2022 | 9,440 | 6,608 | ||||||
Frontier Communications Corp. 11.00% 2025 | 16,975 | 10,651 | ||||||
Frontier Communications Corp. 7.13%-9.25% 2019-20261 | 5,750 | 4,886 | ||||||
Gogo Inc. 12.50% 20221 | 13,925 | 14,943 | ||||||
iHeartCommunications, Inc. 9.00% 20192 | 1,025 | 692 | ||||||
Intelsat Jackson Holding Co. 8.50% 20241 | 6,625 | 6,459 | ||||||
Meredith Corp. 6.875% 20261 | 9,015 | 8,835 | ||||||
Sprint Corp. 11.50% 2021 | 7,130 | 8,110 | ||||||
Sprint Corp. 6.88%-8.75% 2021-2032 | 6,820 | 6,822 | ||||||
Other securities | 73,784 | |||||||
|
| |||||||
188,073 | ||||||||
|
| |||||||
Energy 14.89% | ||||||||
Blackstone CQP Holdco LP 6.00% 20211,3 | 1,600 | 1,610 | ||||||
Blackstone CQP Holdco LP 6.50% 20211,3 | 17,430 | 17,561 | ||||||
Cheniere Energy Partners, LP 5.25% 2025 | 950 | 889 | ||||||
Cheniere Energy, Inc. 5.88%-7.00% 2024-2025 | 3,175 | 3,262 | ||||||
CONSOL Energy Inc. 5.875% 2022 | 9,824 | 9,456 | ||||||
Teekay Corp. 8.50% 2020 | 10,418 | 9,988 | ||||||
Other securities | 136,552 | |||||||
|
| |||||||
179,318 | ||||||||
|
| |||||||
Health care 14.79% | ||||||||
HCA Inc. 4.50%-7.50% 2020-2047 | 14,665 | 14,358 | ||||||
Kinetic Concepts, Inc. 12.50% 20211 | 7,628 | 8,200 | ||||||
Molina Healthcare, Inc. 5.375% 2022 | 11,060 | 10,714 | ||||||
Molina Healthcare, Inc. 4.875% 20251 | 2,919 | 2,675 | ||||||
Rotech Healthcare Inc., Term Loan,(3-monthUSD-LIBOR + 11.00%) 13.34% 2023 (100% PIK)4,5,6,7,8,9 | 7,398 | 6,730 | ||||||
Tenet Healthcare Corp. 4.375% 2021 | 5,755 | 5,597 | ||||||
Tenet Healthcare Corp. 4.50%-8.13% 2020-2024 | 18,222 | 17,882 | ||||||
Valeant Pharmaceuticals International, Inc. 5.875% 20231 | 10,610 | 9,854 | ||||||
Valeant Pharmaceuticals International, Inc. 6.125% 20251 | 11,130 | 9,739 | ||||||
Valeant Pharmaceuticals International, Inc. 9.25% 20261 | 6,210 | 6,226 | ||||||
Valeant Pharmaceuticals International, Inc. 5.63%-9.00% 2021-20251 | 3,465 | 3,445 | ||||||
Valeant Pharmaceuticals International, Inc., Term Loan B,(3-monthUSD-LIBOR + 3.00%) 5.379% 20254,5,6 | 1,612 | 1,548 | ||||||
Other securities | 81,103 | |||||||
|
| |||||||
178,071 | ||||||||
|
| |||||||
Materials 12.38% | ||||||||
Cleveland-Cliffs Inc. 4.875% 20241 | 5,500 | 5,129 | ||||||
Cleveland-Cliffs Inc. 5.75% 2025 | 13,250 | 11,958 | ||||||
First Quantum Minerals Ltd. 7.50% 20251 | 10,200 | 8,453 | ||||||
First Quantum Minerals Ltd. 6.50%-7.25% 2021-20261 | 15,470 | 13,639 | ||||||
Freeport-McMoRan Inc. 3.55% 2022 | 5,315 | 5,043 | ||||||
Platform Specialty Products Corp. 5.875% 20251 | 6,435 | 6,049 | ||||||
Ryerson Inc. 11.00% 20221 | 7,186 | 7,258 | ||||||
Other securities | 91,478 | |||||||
|
| |||||||
149,007 | ||||||||
|
|
American Funds Insurance Series 103
Table of Contents
High-Income Bond Fund
Bonds, notes & other debt instruments (continued)
Principal amount (000) | Value (000) | |||||||
Corporate bonds & notes (continued) | ||||||||
Industrials 9.44% | ||||||||
Builders FirstSource, Inc. 5.625% 20241 | $ | 8,310 | $ | 7,739 | ||||
DAE Aviation Holdings, Inc. 10.00% 20231 | 7,790 | 8,335 | ||||||
Deck Chassis Acquisition Inc. 10.00% 20231 | 6,615 | 6,383 | ||||||
Hertz Global Holdings Inc. 7.625% 20221 | 5,669 | 5,357 | ||||||
Other securities | 85,897 | |||||||
|
| |||||||
113,711 | ||||||||
|
| |||||||
Consumer discretionary 9.33% | ||||||||
Cirsa Gaming Corporation SA 7.875% 20231 | 5,860 | 5,827 | ||||||
Petsmart, Inc. 5.875% 20251 | 15,240 | 11,087 | ||||||
Petsmart, Inc. 7.13%-8.88% 2023-20251 | 12,275 | 7,200 | ||||||
Sally Holdings LLC and Sally Capital Inc. 5.625% 2025 | 6,555 | 6,055 | ||||||
Six Flags Entertainment Corp. 4.875% 20241 | 5,475 | 5,174 | ||||||
Sotheby’s 4.875% 20251 | 5,795 | 5,273 | ||||||
Uber Technologies, Inc. 8.00% 20261 | 6,950 | 6,724 | ||||||
Other securities | 64,953 | |||||||
|
| |||||||
112,293 | ||||||||
|
| |||||||
Information technology 7.37% | ||||||||
Almonde Inc., Term Loan,(3-monthUSD-LIBOR + 7.25%) 10.053% 20254,5,6 | 7,150 | 6,605 | ||||||
Camelot Finance SA 7.875% 20241 | 7,405 | 7,200 | ||||||
Genesys Telecommunications Laboratories, Inc. 10.00% 20241 | 4,895 | 5,140 | ||||||
Infor Software 7.125% 20211,7 | 6,935 | 6,779 | ||||||
Kronos Inc., Term Loan B,(3-monthUSD-LIBOR + 8.25%) 9.25% 20244,5,6 | 8,645 | 8,563 | ||||||
Unisys Corp. 10.75% 20221 | 6,600 | 7,252 | ||||||
Other securities | 47,146 | |||||||
|
| |||||||
88,685 | ||||||||
|
| |||||||
Financials 3.48% | ||||||||
Compass Diversified Holdings 8.00% 20261 | 5,710 | 5,664 | ||||||
FS Energy and Power Fund 7.50% 20231 | 5,765 | 5,491 | ||||||
HUB International Ltd. 7.00% 20261 | 6,155 | 5,601 | ||||||
Other securities | 25,142 | |||||||
|
| |||||||
41,898 | ||||||||
|
| |||||||
Utilities 3.00% | ||||||||
Other securities | 36,139 | |||||||
|
| |||||||
Consumer staples 2.17% | ||||||||
B&G Foods, Inc. 5.25% 2025 | 5,758 | 5,377 | ||||||
Other securities | 20,705 | |||||||
|
| |||||||
26,082 | ||||||||
|
| |||||||
Real estate 2.09% | ||||||||
Howard Hughes Corp. 5.375% 20251 | 6,520 | 6,161 | ||||||
Other securities | 18,979 | |||||||
|
| |||||||
25,140 | ||||||||
|
| |||||||
Total corporate bonds & notes | 1,138,417 | |||||||
|
| |||||||
Other bonds & notes 0.26% | ||||||||
Other securities | 3,083 | |||||||
|
| |||||||
Total bonds, notes & other debt instruments (cost: $1,229,811,000) | 1,141,500 | |||||||
|
|
104 American Funds Insurance Series
Table of Contents
High-Income Bond Fund
Convertible bonds 0.45%
Principal amount (000) | Value (000) | |||||||
Communication services 0.23% | ||||||||
Gogo Inc., convertible notes, 6.00% 20221 | $ | 2,140 | $ | 1,958 | ||||
Other securities | 818 | |||||||
|
| |||||||
2,776 | ||||||||
|
| |||||||
Other 0.22% | ||||||||
Other securities | 2,662 | |||||||
|
| |||||||
Total convertible bonds (cost: $6,098,000) | ||||||||
5,438 | ||||||||
|
| |||||||
Convertible stocks 0.54% | ||||||||
Shares | ||||||||
Industrials 0.49% | ||||||||
Associated Materials, LLC, 14.00% convertible preferred 20208,9 | 4,850 | 5,892 | ||||||
|
| |||||||
Utilities 0.05% | ||||||||
Other securities | 629 | |||||||
|
| |||||||
Total convertible stocks (cost: $5,288,000) | 6,521 | |||||||
|
| |||||||
Common stocks 1.03% | ||||||||
Communication services 0.01% | ||||||||
Frontier Communications Corp. | 13,333 | 32 | ||||||
Other securities | 86 | |||||||
|
| |||||||
118 | ||||||||
|
| |||||||
Other 1.02% | ||||||||
Other securities | 12,265 | |||||||
|
| |||||||
Total common stocks (cost: $16,871,000) | 12,383 | |||||||
|
| |||||||
Rights & warrants 0.02% | ||||||||
Energy 0.02% | ||||||||
Other securities | 256 | |||||||
|
| |||||||
Total rights & warrants (cost: $71,000) | 256 | |||||||
|
| |||||||
Short-term securities 1.40% | ||||||||
Principal amount (000) | ||||||||
ADP Tax Services, Inc. 2.38% due 1/2/20191 | $ | 6,800 | 6,799 | |||||
Apple Inc. 2.33% due 1/9/20191 | 10,000 | 9,994 | ||||||
|
| |||||||
Total short-term securities (cost: $16,795,000) | 16,793 | |||||||
|
| |||||||
Total investment securities 98.26% (cost: $1,274,934,000) | 1,182,891 | |||||||
Other assets less liabilities 1.74% | 21,008 | |||||||
|
| |||||||
Net assets 100.00% | $ | 1,203,899 | ||||||
|
|
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities“ also includes securities which were pledged as collateral. The total value of pledged collateral was $1,233,000, which represented 0.10% of the net assets of the fund.
American Funds Insurance Series 105
Table of Contents
High-Income Bond Fund
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2018 (000) | Upfront payments/ receipts (000) | Unrealized (depreciation) appreciation at 12/31/2018 (000) | ||||||||||||||||
3-monthUSD-LIBOR | 2.772% | 2/28/2025 | $ | 7,200 | $ | (71 | ) | $ | — | $ | (71 | ) | ||||||||||
3-monthUSD-LIBOR | 2.2825% | 4/13/2027 | 5,300 | 149 | — | 149 | ||||||||||||||||
2.2865% | 3-monthUSD-LIBOR | 10/2/2027 | 10,100 | (309 | ) | — | (309 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.6475% | 1/25/2028 | 2,500 | 7 | — | 7 | ||||||||||||||||
|
|
|
| |||||||||||||||||||
$ | — | $ | (224 | ) | ||||||||||||||||||
|
|
|
| |||||||||||||||||||
Credit default swaps | ||||||||||||||||||||||
Centrally cleared credit default swaps on credit indices — buy protection |
| |||||||||||||||||||||
Receive | Pay/ Payment frequency | Expiration date | Notional (000) | Value at 12/31/2018 (000) | Upfront payments (000) | Unrealized appreciation at 12/31/2018 (000) | ||||||||||||||||
CDX.NA.HY.31 | 5.00%/Quarterly | 12/20/2023 | $ | 24,200 | $ | (482 | ) | $ | (1,706 | ) | $ | 1,224 | ||||||||||
CDX.NA.IG.31 | 1.00%/Quarterly | 12/20/2023 | 34,525 | (192 | ) | (512 | ) | 320 | ||||||||||||||
|
|
|
| |||||||||||||||||||
$ | (2,218 | ) | $ | 1,544 | ||||||||||||||||||
|
|
|
|
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $681,560,000, which represented 56.61% of the net assets of the fund. |
2 | Scheduled interest and/or principal payment was not received. |
3 | Acquired through a private placement transaction exempt from registration under the Securities Act of 1933. May be subject to legal or contractual restrictions on resale. Further details on these holdings appear below. |
4 | Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans, including those in “Other securities,” was $76,517,000, which represented 6.36% of the net assets of the fund. |
5 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
6 | Coupon rate may change periodically. |
7 | Payment in kind; the issuer has the option of paying additional securities in lieu of cash. Most recent payment was 100% cash unless otherwise noted. |
8 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $30,796,000, which represented 2.56% of the net assets of the fund. This amount includes $3,926,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
9 | Value determined using significant unobservable inputs. |
Private placement securities | Acquisition date(s) | Cost (000) | Value (000) | Percent of net assets | ||||||||||||
Blackstone CQP Holdco LP 6.50% 2021 | 3/6/2017-2/5/2018 | $ | 17,430 | $ | 17,561 | 1.46 | % | |||||||||
Blackstone CQP Holdco LP 6.00% 2021 | 8/9/2017 | 1,600 | 1,610 | .13 | ||||||||||||
Other securities | 12/13/2012-11/16/2018 | 5,683 | 3,671 | .31 | ||||||||||||
|
|
|
|
|
| |||||||||||
Total private placement securities | $ | 24,713 | $ | 22,842 | 1.90 | % | ||||||||||
|
|
|
|
|
|
Key to abbreviations and symbol
LIBOR = London Interbank Offered Rate
USD/$ = U.S. dollars
See notes to financial statements
106 American Funds Insurance Series
Table of Contents
Summary investment portfolioDecember 31, 2018
Bonds, notes & other debt instruments 95.20%
Principal amount (000) | Value (000) | |||||||
Mortgage-backed obligations 71.87% | ||||||||
Federal agency mortgage-backed obligations 68.28% | ||||||||
Fannie Mae 4.00% 20471 | $ | 7,103 | $ | 7,249 | ||||
Fannie Mae 4.00% 20471 | 4,751 | 4,848 | ||||||
Fannie Mae 4.50% 20481 | 14,594 | 15,132 | ||||||
Fannie Mae 4.50% 20481 | 7,755 | 8,044 | ||||||
Fannie Mae 4.50% 20481 | 4,339 | 4,501 | ||||||
Fannie Mae 4.50% 20481,2 | 1,663 | 1,724 | ||||||
Fannie Mae 3.50% 20491,2 | 3,200 | 3,201 | ||||||
Fannie Mae 4.00% 20491,2 | 5,163 | 5,265 | ||||||
Fannie Mae 4.00%-5.00% 2036-20481 | 2,455 | 2,517 | ||||||
Freddie Mac 4.00% 20361 | 5,020 | 5,180 | ||||||
Freddie Mac 3.203% 20451,3 | 2,217 | 2,234 | ||||||
Freddie Mac 3.00% 20461 | 7,155 | 7,036 | ||||||
Freddie Mac 4.00% 20481 | 1,857 | 1,895 | ||||||
Freddie Mac 4.00% 20481 | 1,842 | 1,880 | ||||||
Freddie Mac 2.60%-5.00% 2020-20361 | 5,086 | 5,209 | ||||||
Freddie Mac, Series K031, Class A2, Multi Family, 3.30% 20231 | 4,722 | 4,795 | ||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series2017-2, Class HA, 2.50% 20561 | 1,671 | 1,642 | ||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series2017-2, Class MA, 3.00% 20561 | 1,588 | 1,533 | ||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series2017-4, Class HT, 2.50% 20571,3 | 12,143 | 11,833 | ||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series2018-2, Class MT, 3.50% 20571 | 10,978 | 10,862 | ||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series2017-4, Class MT, 3.50% 20571 | 7,496 | 7,448 | ||||||
Freddie Mac Seasoned Loan Structured Transaction, Series2018-2, Class A1, 3.50% 20281,3 | 7,830 | 7,698 | ||||||
Freddie Mac Seasoned Loan Structured Transaction, Series2018-1, Class A1, 3.50% 20281 | 2,101 | 2,093 | ||||||
Government National Mortgage Assn. 5.50% 20401 | 1,797 | 1,900 | ||||||
Government National Mortgage Assn. 3.50% 20431 | 2,015 | 2,042 | ||||||
Government National Mortgage Assn. 4.25% 20441 | 1,724 | 1,796 | ||||||
Government National Mortgage Assn. 4.00% 20491,2 | 6,200 | 6,350 | ||||||
Government National Mortgage Assn. 4.50% 20491,2 | 34,750 | 35,964 | ||||||
Government National Mortgage Assn. 5.00% 20491,2 | 2,627 | 2,734 | ||||||
Government National Mortgage Assn. 3.50%-6.50% 2034-20661,2 | 17,870 | 18,265 | ||||||
Vendee Mortgage Trust, Series2011-2, Class V, 3.75% 20281 | 4,166 | 4,131 | ||||||
Vendee Mortgage Trust, Series2010-1, Class DA, 4.25% 20351 | 478 | 484 | ||||||
Other securities | 1,324 | |||||||
|
| |||||||
198,809 | ||||||||
|
| |||||||
Collateralized mortgage-backed obligations (privately originated) 3.59% | ||||||||
Finance of America Structured Securities Trust, Series2018-HB1, Class A, 3.375% 20281,3,4 | 2,287 | 2,293 | ||||||
Other securities | 8,168 | |||||||
|
| |||||||
10,461 | ||||||||
|
| |||||||
Total mortgage-backed obligations | 209,270 | |||||||
|
| |||||||
U.S. Treasury bonds & notes 10.99% | ||||||||
U.S. Treasury 6.63% | ||||||||
U.S. Treasury 2.00% 2022 | 2,400 | 2,359 | ||||||
U.S. Treasury 1.75% 2023 | 3,500 | 3,393 | ||||||
U.S. Treasury 2.875% 2023 | 4,350 | 4,423 | ||||||
U.S. Treasury 2.50% 2024 | 2,500 | 2,496 | ||||||
U.S. Treasury 3.00% 20485 | 5,000 | 4,981 | ||||||
U.S. Treasury 1.50%-2.75% 2020-2023 | 1,668 | 1,650 | ||||||
|
| |||||||
19,302 | ||||||||
|
|
American Funds Insurance Series 107
Table of Contents
Mortgage Fund
Bonds, notes & other debt instruments (continued)
Principal amount (000) | Value (000) | |||||||
U.S. Treasury bonds & notes (continued) | ||||||||
U.S. Treasury inflation-protected securities 4.36% | ||||||||
U.S. Treasury Inflation-Protected Security 0.625% 20236 | $ | 6,108 | $ | 6,013 | ||||
U.S. Treasury Inflation-Protected Security 2.125% 20416 | 127 | 150 | ||||||
U.S. Treasury Inflation-Protected Security 0.75% 20425,6 | 7,201 | 6,547 | ||||||
|
| |||||||
12,710 | ||||||||
|
| |||||||
Total U.S. Treasury bonds & notes | 32,012 | |||||||
|
| |||||||
Federal agency bonds & notes 6.35% | ||||||||
Fannie Mae 2.00% 2022 | 5,800 | 5,716 | ||||||
Federal Home Loan Bank 1.38%-1.88% 2021 | 13,000 | 12,767 | ||||||
|
| |||||||
18,483 | ||||||||
|
| |||||||
Asset-backed obligations 5.96% | ||||||||
Hertz Vehicle Financing LLC, Rental Car Asset-Backed Notes, Series2015-1, Class A, 2.73% 20211,4 | 1,823 | 1,808 | ||||||
SLM Private Credit Student Loan Trust, Series2010-1, Class A,(1-monthUSD-LIBOR + 0.40%) 2.906% 20251,3 | 2,629 | 2,573 | ||||||
Other securities | 12,959 | |||||||
|
| |||||||
17,340 | ||||||||
|
| |||||||
Corporate bonds & notes 0.03% | ||||||||
Financials 0.03% | ||||||||
Other securities | 80 | |||||||
|
| |||||||
Total bonds, notes & other debt instruments (cost: $278,182,000) | 277,185 | |||||||
|
| |||||||
Short-term securities 22.86% | ||||||||
ADP Tax Services, Inc. 2.38% due 1/2/20194 | 8,700 | 8,699 | ||||||
Emerson Electric Co. 2.37% due 1/4/20194 | 3,300 | 3,299 | ||||||
ExxonMobil Corp. 2.43% due 1/10/2019 | 5,000 | 4,997 | ||||||
Federal Home Loan Bank 2.23%-2.27% due 1/4/2019-1/11/2019 | 15,000 | 14,993 | ||||||
Kimberly-Clark Corp. 2.47% due 1/11/20194 | 2,100 | 2,098 | ||||||
Mizuho Bank, Ltd. 2.42% due 1/4/20194 | 10,000 | 9,997 | ||||||
National Rural Utilities Cooperative Finance Corp. 2.50% due 1/8/2019 | 11,000 | 10,994 | ||||||
Paccar Financial Corp. 2.50% due 1/29/2019 | 2,600 | 2,595 | ||||||
Pfizer Inc. 2.43% due 1/10/20194 | 5,100 | 5,097 | ||||||
Québec (Province of) 2.53% due 1/22/20194 | 3,800 | 3,794 | ||||||
|
| |||||||
Total short-term securities (cost: $66,566,000) | 66,563 | |||||||
|
| |||||||
Total investment securities 118.06% (cost: $344,748,000) | 343,748 | |||||||
Other assets less liabilities (18.06)% | (52,573 | ) | ||||||
|
| |||||||
Net assets 100.00% | $ | 291,175 | ||||||
|
|
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” includes securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities which were valued under fair value procedures was $2,863,000, which represented .98% of the net assets of the fund.
108 American Funds Insurance Series
Table of Contents
Mortgage Fund
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount7 (000) | Value at 12/31/20188 (000) | Unrealized appreciation at 12/31/2018 (000) | ||||||||||||||||||
90 Day Euro Dollar Futures | Long | 108 | December 2019 | $ | 27,000 | $ | 26,285 | $ | 163 | |||||||||||||||
2 Year U.S. Treasury Note Futures | Long | 374 | April 2019 | 74,800 | 79,405 | 188 | ||||||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 464 | April 2019 | 46,400 | 53,215 | 741 | ||||||||||||||||||
10 Year Ultra U.S. Treasury Note Futures | Long | 102 | March 2019 | 10,200 | 13,268 | 427 | ||||||||||||||||||
20 Year U.S. Treasury Bond Futures | Long | 56 | March 2019 | 5,600 | 8,176 | 338 | ||||||||||||||||||
30 Year Ultra U.S. Treasury Bond Futures | Long | 5 | March 2019 | 500 | 803 | 42 | ||||||||||||||||||
|
| |||||||||||||||||||||||
$ | 1,899 | |||||||||||||||||||||||
|
|
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2018 (000) | Upfront payments/ receipts (000) | Unrealized appreciation (depreciation) at 12/31/2018 (000) | ||||||||||||||||||
2.5215% | U.S. EFFR | 8/29/2020 | $ | 16,490 | $ | 47 | $ | — | $ | 47 | ||||||||||||||
3-monthUSD-LIBOR | 2.806% | 8/29/2020 | 300 | (1 | ) | — | (1 | ) | ||||||||||||||||
2.622% | U.S. EFFR | 9/14/2020 | 7,500 | 34 | — | 34 | ||||||||||||||||||
2.729% | U.S. EFFR | 10/22/2020 | 22,900 | 152 | — | 152 | ||||||||||||||||||
2.4825% | U.S. EFFR | 12/26/2020 | 41,000 | 104 | — | 104 | ||||||||||||||||||
3-monthUSD-LIBOR | 1.217% | 9/22/2021 | 11,500 | 421 | — | 421 | ||||||||||||||||||
3-monthUSD-LIBOR | 1.225% | 9/22/2021 | 11,500 | 418 | — | 418 | ||||||||||||||||||
3-monthUSD-LIBOR | 1.2796% | 10/11/2021 | 14,500 | 513 | — | 513 | ||||||||||||||||||
2.0135% | 3-month USD-LIBOR | 10/20/2021 | 30,000 | (473 | ) | — | (473 | ) | ||||||||||||||||
2.012% | 3-monthUSD-LIBOR | 10/4/2022 | 9,000 | (182 | ) | — | (182 | ) | ||||||||||||||||
2.00% | 3-monthUSD-LIBOR | 10/5/2022 | 41,500 | (857 | ) | — | (856 | ) | ||||||||||||||||
2.1045% | 3-monthUSD-LIBOR | 10/31/2022 | 4,000 | (68 | ) | — | (68 | ) | ||||||||||||||||
3-monthUSD-LIBOR | 2.2835% | 1/5/2023 | 36,000 | 398 | — | 398 | ||||||||||||||||||
3-monthUSD-LIBOR | 2.24% | 12/5/2026 | 10,500 | 310 | — | 310 | ||||||||||||||||||
3-monthUSD-LIBOR | 2.27% | 12/5/2026 | 8,500 | 232 | — | 232 | ||||||||||||||||||
3-monthUSD-LIBOR | 3.206% | 7/31/2044 | 1,000 | (69 | ) | — | (69 | ) | ||||||||||||||||
3-monthUSD-LIBOR | 3.238% | 8/8/2044 | 2,000 | (150 | ) | — | (150 | ) | ||||||||||||||||
3-monthUSD-LIBOR | 3.2265% | 9/25/2044 | 3,000 | (219 | ) | — | (219 | ) | ||||||||||||||||
U.S. EFFR | 2.145% | 11/9/2047 | 2,200 | 167 | — | 167 | ||||||||||||||||||
U.S. EFFR | 2.153% | 11/10/2047 | 2,200 | 163 | — | 163 | ||||||||||||||||||
U.S. EFFR | 2.155% | 11/10/2047 | 1,280 | 95 | — | 95 | ||||||||||||||||||
U.S. EFFR | 2.17% | 11/13/2047 | 2,320 | 164 | — | 164 | ||||||||||||||||||
U.S. EFFR | 2.5635% | 2/12/2048 | 4,528 | (49 | ) | — | (49 | ) | ||||||||||||||||
2.98% | 3-monthUSD-LIBOR | 3/15/2048 | 300 | 9 | — | 9 | ||||||||||||||||||
2.9625% | 3-monthUSD-LIBOR | 3/15/2048 | 300 | 8 | — | 8 | ||||||||||||||||||
U.S. EFFR | 2.4615% | 3/15/2048 | 300 | 3 | — | 3 | ||||||||||||||||||
U.S. EFFR | 2.485% | 3/15/2048 | 300 | 2 | — | 2 | ||||||||||||||||||
U.S. EFFR | 2.425% | 3/16/2048 | 600 | 11 | — | 11 | ||||||||||||||||||
2.917% | 3-monthUSD-LIBOR | 3/16/2048 | 600 | 10 | — | 10 | ||||||||||||||||||
|
|
|
| |||||||||||||||||||||
$ | — | $ | 1,194 | |||||||||||||||||||||
|
|
|
|
American Funds Insurance Series 109
Table of Contents
Mortgage Fund
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
2 | Purchased on a TBA basis. |
3 | Coupon rate may change periodically. |
4 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $52,359,000, which represented 17.98% of the net assets of the fund. |
5 | All or a portion of this security was pledged as collateral. The total value of pledged collateral was $2,758,000, which represented .95% of the net assets of the fund. |
6 | Index-linked bond whose principal amount moves with a government price index. |
7 | Notional amount is calculated based on the number of contracts and notional contract size. |
8 | Value is calculated based on the notional amount and current market price. |
Key to abbreviations and symbol
EFFR = Effective Federal Funds Rate
LIBOR = London Interbank Offered Rate
TBA =To-be-announced
USD/$ = U.S. dollars
See notes to financial statements
110 American Funds Insurance Series
Table of Contents
Investment portfolioDecember 31, 2018
Short-term securities 100.11%
Principal amount (000) | Value (000) | |||||||
Commercial paper 69.84% | ||||||||
3M Co. 2.40% due 1/7/20191 | $ | 10,000 | $ | 9,996 | ||||
Alberta (Province of) 2.48% due 1/22/20191 | 10,000 | 9,985 | ||||||
Apple Inc. 2.45% due 2/5/20191 | 10,000 | 9,975 | ||||||
Bank of New York Mellon Corp. 2.34% due 1/22/2019 | 8,000 | 7,988 | ||||||
BASF SE 2.56% due 2/1/20191 | 8,750 | 8,730 | ||||||
CHARTA, LLC 2.85% due 3/26/20191 | 8,022 | 7,968 | ||||||
Coca-Cola Co. 2.30% due 1/4/20191 | 10,000 | 9,997 | ||||||
Emerson Electric Co. 2.52% due 1/17/20191 | 10,000 | 9,989 | ||||||
IBM Credit LLC 2.47% due 1/22/20191 | 10,000 | 9,985 | ||||||
Intel Corp. 2.40% due 1/10/20191 | 7,000 | 6,995 | ||||||
John Deere Capital Corp. 2.40% due 1/16/20191 | 10,000 | 9,989 | ||||||
KfW 2.46% due 1/18/20191 | 8,400 | 8,390 | ||||||
Merck & Co. Inc. 2.50% due 2/27/20191 | 10,000 | 9,960 | ||||||
Mizuho Bank, Ltd. 2.48% due 1/15/20191 | 10,000 | 9,990 | ||||||
National Australia Bank Ltd. 2.65% due 2/25/20191 | 10,000 | 9,959 | ||||||
National Rural Utilities Cooperative Finance Corp. 2.40% due 1/4/2019 | 6,000 | 5,998 | ||||||
Nordea Bank AB 2.77% due 3/18/20191 | 10,000 | 9,942 | ||||||
Paccar Financial Corp. 2.39% due 1/2/2019 | 8,000 | 7,999 | ||||||
Pfizer Inc. 2.28% due 1/14/20191 | 7,400 | 7,393 | ||||||
Procter & Gamble Co. 2.30% due 1/14/20191 | 10,000 | 9,991 | ||||||
Siemens Capital Corp. 2.50% due 1/16/20191 | 4,700 | 4,695 | ||||||
Simon Property Group, LP 2.51% due 1/14/20191 | 8,100 | 8,092 | ||||||
United Overseas Bank Ltd. 2.55% due 1/8/20191 | 5,000 | 4,997 | ||||||
United Parcel Service Inc. 2.34% due 1/22/20191 | 5,000 | 4,993 | ||||||
Wal-Mart Stores, Inc. 2.37% due 1/7/20191 | 10,000 | 9,995 | ||||||
|
| |||||||
213,991 | ||||||||
|
| |||||||
U.S. Treasury bonds & notes 24.41% | ||||||||
U.S. Treasury Bills 2.23%-2.38% due 1/8/2019-2/19/2019 | 74,900 | 74,797 | ||||||
|
| |||||||
Federal agency discount notes 5.86% | ||||||||
Fannie Mae 2.29% due 1/23/2019 | 3,000 | 2,996 | ||||||
Federal Home Loan Bank 2.38% due 2/8/2019 | 15,000 | 14,962 | ||||||
|
| |||||||
17,958 | ||||||||
|
| |||||||
Total short-term securities(cost: $306,754,000) | 306,746 | |||||||
|
| |||||||
Total investment securities 100.11%(cost: $306,754,000) | 306,746 | |||||||
Other assets less liabilities (0.11)% | (342 | ) | ||||||
|
| |||||||
Net assets 100.00% | $ | 306,404 | ||||||
|
|
1 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $192,006,000, which represented 62.66% of the net assets of the fund. |
See notes to financial statements
American Funds Insurance Series 111
Table of Contents
U.S.Government/AAA-Rated Securities Fund
Summary investment portfolioDecember 31, 2018
Bonds, notes & other debt instruments 97.30%
Principal amount (000) | Value (000) | |||||||
U.S. Treasury bonds & notes 47.72% | ||||||||
U.S. Treasury 39.27% | ||||||||
U.S. Treasury 2.25% 2020 | $ | 29,900 | $ | 29,789 | ||||
U.S. Treasury 2.50% 2020 | 78,000 | 77,950 | ||||||
U.S. Treasury 1.125% 2021 | 31,950 | 30,853 | ||||||
U.S. Treasury 1.75% 20211 | 33,540 | 32,877 | ||||||
U.S. Treasury 2.00% 2021 | 46,300 | 45,692 | ||||||
U.S. Treasury 2.125% 2021 | 23,450 | 23,241 | ||||||
U.S. Treasury 2.25% 2021 | 23,580 | 23,459 | ||||||
U.S. Treasury 1.75% 2022 | 174,300 | 170,261 | ||||||
U.S. Treasury 1.875% 2022 | 63,000 | 61,823 | ||||||
U.S. Treasury 1.875% 2022 | 25,000 | 24,496 | ||||||
U.S. Treasury 2.00% 2022 | 69,500 | 68,300 | ||||||
U.S. Treasury 2.125% 20231 | 64,095 | 62,954 | ||||||
U.S. Treasury 2.50% 2023 | 49,894 | 49,910 | ||||||
U.S. Treasury 2.625% 2023 | 31,000 | 31,170 | ||||||
U.S. Treasury 2.875% 2023 | 43,000 | 43,721 | ||||||
U.S. Treasury 2.875% 2023 | 22,500 | 22,896 | ||||||
U.S. Treasury 2.125% 2024 | 55,975 | 54,713 | ||||||
U.S. Treasury 2.50% 2024 | 44,000 | 43,931 | ||||||
U.S. Treasury 2.75% 2025 | 38,000 | 38,392 | ||||||
U.S. Treasury 2.875% 2025 | 25,000 | 25,434 | ||||||
U.S. Treasury 1.38%-2.88% 2020-2028 | 167,015 | 165,047 | ||||||
|
| |||||||
1,126,909 | ||||||||
|
| |||||||
U.S. Treasury inflation-protected securities 8.45% | ||||||||
U.S. Treasury Inflation-Protected Security 0.625% 20232 | 36,140 | 35,576 | ||||||
U.S. Treasury Inflation-Protected Security 0.75% 20282 | 39,288 | 38,480 | ||||||
U.S. Treasury Inflation-Protected Security 1.375% 20441,2 | 46,878 | 48,537 | ||||||
U.S. Treasury Inflation-Protected Security 1.00% 20481,2 | 43,513 | 33,238 | ||||||
U.S. Treasury Inflation-Protected Securities 0.14%-2.13% 2022-20471,2 | 92,250 | 86,670 | ||||||
|
| |||||||
242,501 | ||||||||
|
| |||||||
Total U.S. Treasury bonds & notes | 1,369,410 | |||||||
|
| |||||||
Mortgage-backed obligations 28.63% | ||||||||
Federal agency mortgage-backed obligations 28.63% | ||||||||
Fannie Mae 4.00% 20343,4 | 40,000 | 40,933 | ||||||
Fannie Mae 3.00% 20363 | 26,454 | 26,207 | ||||||
Fannie Mae 4.00% 20473 | 31,328 | 31,969 | ||||||
Fannie Mae 4.50% 20483,4 | 44,012 | 45,636 | ||||||
Fannie Mae 4.50% 20483 | 42,653 | 44,240 | ||||||
Fannie Mae 3.50% 20493,4 | 69,981 | 69,997 | ||||||
Fannie Mae 0%-9.19% 2022-20493,4,5 | 142,780 | 144,922 | ||||||
Freddie Mac 3.50% 20333 | 25,000 | 25,333 | ||||||
Freddie Mac 0%-5.50% 2020-20493,4,5 | 77,993 | 79,500 | ||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series2018-2, Class MT, 3.50% 20573 | 42,088 | 41,644 | ||||||
Freddie Mac Seasoned Loan Structured Transaction, Series2018-2, Class A1, 3.50% 20283,5 | 45,026 | 44,268 | ||||||
Government National Mortgage Assn. 3.50% 20493,4 | 25,000 | 25,172 | ||||||
Government National Mortgage Assn. 4.00% 20493,4 | 40,200 | 41,171 | ||||||
Government National Mortgage Assn. 4.50% 20493,4 | 34,075 | 35,265 | ||||||
Government National Mortgage Assn. 3.00%-6.64% 2034-20653,4,5 | 46,756 | 48,654 | ||||||
Other securities | 76,482 | |||||||
|
| |||||||
821,393 | ||||||||
|
| |||||||
Federal agency bonds & notes 20.95% | ||||||||
Fannie Mae 1.25%-7.13% 2019-2030 | 85,400 | 87,260 | ||||||
Federal Home Loan Bank 3.25%-5.50% 2023-2036 | 30,315 | 31,296 | ||||||
Freddie Mac 2.38%-3.75% 2019-2021 | 112,750 | 112,469 | ||||||
Private Export Funding Corp. 1.45%-3.55% 2019-2024 | 28,840 | 28,957 | ||||||
Tennessee Valley Authority 2.88%-5.88% 2021-2060 | 47,305 | 49,048 |
112 American Funds Insurance Series
Table of Contents
U.S.Government/AAA-Rated Securities Fund
Bonds, notes & other debt instruments
Principal amount (000) | Value (000) | |||||||
U.S. Department of Housing and Urban Development 1.98%-3.70% 2020-2034 | $ | 73,632 | $ | 73,777 | ||||
United States Agency for International Development, Iraq (State of), 2.149% 2022 | 6,670 | 6,566 | ||||||
United States Agency for International Development, Jordan (Kingdom of) 1.95%-3.00% 2019-2025 | 194,000 | 193,524 | ||||||
United States Agency for International Development, Morocco (Kingdom of) 7.55% 20263 | 3,328 | 3,838 | ||||||
United States Agency for International Development, Tunisia (Kingdom of) 1.416% 2021 | 3,000 | 2,907 | ||||||
United States Agency for International Development, Ukraine 1.47%-1.84% 2019-2021 | 5,855 | 5,712 | ||||||
Other securities | 5,720 | |||||||
|
| |||||||
601,074 | ||||||||
|
| |||||||
Total bonds, notes & other debt instruments (cost: $2,805,986,000) | 2,791,877 | |||||||
|
| |||||||
Short-term securities 11.11% | ||||||||
Apple Inc. 2.36% due 1/23/20196 | 25,000 | 24,960 | ||||||
Bank of New York Mellon Corp. 2.34% due 1/22/2019 | 50,000 | 49,924 | ||||||
Chevron Corp. 2.38%-2.49% due 1/9/2019-2/4/20196 | 51,900 | 51,815 | ||||||
National Rural Utilities Cooperative Finance Corp. 2.50% due 2/5/2019 | 60,000 | 59,850 | ||||||
Procter & Gamble Co. 2.50% due 2/7/20196 | 25,000 | 24,933 | ||||||
Tennessee Valley Authority 2.31% due 1/15/2019 | 38,000 | 37,966 | ||||||
Wal-Mart Stores, Inc. 2.42% due 1/15/20196 | 40,000 | 39,959 | ||||||
Other securities | 29,420 | |||||||
|
| |||||||
Total short-term securities(cost: $318,855,000) | 318,827 | |||||||
|
| |||||||
Total investment securities108.41% (cost: $3,124,841,000) | 3,110,704 | |||||||
Other assets less liabilities (8.41)% | (241,401 | ) | ||||||
|
| |||||||
Net assets 100.00% | $ | 2,869,303 | ||||||
|
|
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount7 (000) | Value at 12/31/20188 (000) | Unrealized appreciation (depreciation) at 12/31/2018 (000) | ||||||||||||||||||
90 Day Euro Dollar Futures | Long | 623 | December 2019 | $ | 155,750 | $ | 151,623 | $ | 941 | |||||||||||||||
90 Day Euro Dollar Futures | Long | 316 | December 2021 | 79,000 | 77,029 | 431 | ||||||||||||||||||
2 Year U.S. Treasury Note Futures | Long | 3,850 | April 2019 | 770,000 | 817,403 | 4,332 | ||||||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 11,518 | April 2019 | 1,151,800 | 1,320,970 | 20,231 | ||||||||||||||||||
10 Year U.S. Treasury Note Futures | Long | 2,675 | March 2019 | 267,500 | 326,392 | 4,968 | ||||||||||||||||||
10 Year Ultra U.S. Treasury Note Futures | Short | 1,050 | March 2019 | (105,000 | ) | (136,582 | ) | (3,030 | ) | |||||||||||||||
20 Year U.S. Treasury Bond Futures | Long | 108 | March 2019 | 10,800 | 15,768 | 118 | ||||||||||||||||||
30 Year Ultra U.S. Treasury Bond Futures | Short | 172 | March 2019 | (17,200 | ) | (27,633 | ) | (541 | ) | |||||||||||||||
|
| |||||||||||||||||||||||
$ | 27,450 | |||||||||||||||||||||||
|
|
American Funds Insurance Series 113
Table of Contents
U.S.Government/AAA-Rated Securities Fund
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2018 (000) | Upfront payments/ receipts (000) | Unrealized appreciation (depreciation) at 12/31/2018 (000) | ||||||||||||||||
2.40625% | U.S. EFFR | 3/20/2019 | $ | 3,420,000 | $ | 9 | $ | — | $ | 9 | ||||||||||||
2.426% | U.S. EFFR | 5/1/2019 | 1,625,200 | 24 | — | 24 | ||||||||||||||||
2.414% | U.S. EFFR | 5/1/2019 | 2,374,800 | 1 | — | 1 | ||||||||||||||||
2.782% | U.S. EFFR | 9/18/2019 | 884,184 | 438 | — | 438 | ||||||||||||||||
U.S. EFFR | 2.405% | 1/29/2020 | 1,463,000 | (67 | ) | — | (67 | ) | ||||||||||||||
U.S. EFFR | 2.403% | 1/29/2020 | 2,027,000 | (88 | ) | — | (88 | ) | ||||||||||||||
1.997% | U.S. EFFR | 2/13/2020 | 60,900 | (257 | ) | — | (257 | ) | ||||||||||||||
1.989% | U.S. EFFR | 2/13/2020 | 61,000 | (263 | ) | — | (263 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.761% | 4/27/2020 | 100,000 | (63 | ) | — | (63 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.8025% | 8/15/2020 | 101,840 | (194 | ) | — | (194 | ) | ||||||||||||||
2.5045% | U.S. EFFR | 8/29/2020 | 133,910 | 344 | — | 344 | ||||||||||||||||
2.5215% | U.S. EFFR | 8/29/2020 | 98,090 | 279 | — | 279 | ||||||||||||||||
3-monthUSD-LIBOR | 2.806% | 8/29/2020 | 34,300 | (68 | ) | — | (68 | ) | ||||||||||||||
2.48% | U.S. EFFR | 12/20/2020 | 82,528 | 200 | — | 200 | ||||||||||||||||
2.4825% | U.S. EFFR | 12/26/2020 | 665,000 | 1,684 | — | 1,684 | ||||||||||||||||
3-monthUSD-LIBOR | 1.217% | 9/22/2021 | 60,000 | 2,195 | — | 2,195 | ||||||||||||||||
3-monthUSD-LIBOR | 1.225% | 9/22/2021 | 60,000 | 2,182 | — | 2,182 | ||||||||||||||||
3-monthUSD-LIBOR | 1.2255% | 9/23/2021 | 5,000 | 182 | — | 182 | ||||||||||||||||
3-monthUSD-LIBOR | 1.9665% | 2/2/2022 | 50,000 | 921 | — | 921 | ||||||||||||||||
3-monthUSD-LIBOR | 2.2175% | 3/17/2022 | 52,000 | 592 | — | 592 | ||||||||||||||||
3-monthUSD-LIBOR | 1.8675% | 4/19/2022 | 70,000 | 1,577 | — | 1,577 | ||||||||||||||||
3-monthUSD-LIBOR | 1.75918% | 4/29/2022 | 58,000 | 1,514 | — | 1,514 | ||||||||||||||||
2.5775% | U.S. EFFR | 7/16/2022 | 181,639 | 671 | — | 671 | ||||||||||||||||
3-monthUSD-LIBOR | 1.948% | 7/28/2022 | 20,000 | 427 | — | 427 | ||||||||||||||||
2.80% | 3-month USD-LIBOR | 9/2/2022 | 280,000 | 1,670 | — | 1,670 | ||||||||||||||||
2.75% | 3-monthUSD-LIBOR | 9/2/2022 | 280,000 | 1,408 | — | 1,408 | ||||||||||||||||
2.009% | 3-monthUSD-LIBOR | 10/4/2022 | 50,000 | (1,017 | ) | — | (1,017 | ) | ||||||||||||||
2.08934% | 3-monthUSD-LIBOR | 11/17/2022 | 40,700 | (723 | ) | — | (723 | ) | ||||||||||||||
2.2025% | 3-monthUSD-LIBOR | 12/4/2022 | 20,000 | (276 | ) | — | (276 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.2455% | 12/21/2022 | 25,000 | 310 | — | 310 | ||||||||||||||||
2.27403% | 3-monthUSD-LIBOR | 12/29/2022 | 60,000 | (683 | ) | — | (683 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.6778% | 2/12/2023 | 51,000 | (213 | ) | — | (213 | ) | ||||||||||||||
2.7435% | 3-monthUSD-LIBOR | 2/16/2023 | 41,000 | 278 | — | 278 | ||||||||||||||||
3-monthUSD-LIBOR | 2.8655% | 4/23/2023 | 55,000 | (668 | ) | — | (668 | ) | ||||||||||||||
2.5815% | U.S. EFFR | 5/25/2023 | 80,000 | 1,099 | — | 1,099 | ||||||||||||||||
2.9075% | 3-monthUSD-LIBOR | 9/7/2023 | 50,000 | 734 | — | 734 | ||||||||||||||||
3-monthUSD-LIBOR | 3.09009% | 10/31/2023 | 46,320 | (1,095 | ) | — | (1,095 | ) | ||||||||||||||
3-monthUSD-LIBOR | 3.0965% | 10/31/2023 | 46,055 | (1,102 | ) | — | (1,102 | ) | ||||||||||||||
U.S. EFFR | 2.4435% | 12/20/2023 | 7,589 | (58 | ) | — | (58 | ) | ||||||||||||||
U.S. EFFR | 2.45375% | 12/20/2023 | 67,985 | (555 | ) | — | (555 | ) | ||||||||||||||
U.S. EFFR | 2.4325% | 12/21/2023 | 24,000 | (172 | ) | — | (172 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.0815% | 2/10/2024 | 28,700 | 683 | — | 683 | ||||||||||||||||
3-monthUSD-LIBOR | 2.0955% | 2/10/2024 | 14,300 | 331 | — | 331 | ||||||||||||||||
3-monthUSD-LIBOR | 2.3875% | 3/17/2024 | 160,700 | 1,520 | — | 1,520 | ||||||||||||||||
3-monthUSD-LIBOR | 2.12813% | 10/3/2024 | 65,000 | 1,617 | — | 1,617 | ||||||||||||||||
3-monthUSD-LIBOR | 2.4595% | 1/12/2025 | 26,400 | 203 | — | 203 | ||||||||||||||||
3-monthUSD-LIBOR | 2.588% | 1/26/2025 | 15,600 | 7 | — | 7 | ||||||||||||||||
2.8775% | 3-monthUSD-LIBOR | 3/23/2025 | 29,800 | 473 | — | 473 | ||||||||||||||||
3-monthUSD-LIBOR | 2.24% | 12/5/2026 | 55,100 | 1,625 | — | 1,625 | ||||||||||||||||
3-monthUSD-LIBOR | 2.27% | 12/5/2026 | 44,900 | 1,227 | — | 1,227 | ||||||||||||||||
2.579% | 3-monthUSD-LIBOR | 3/14/2027 | 53,000 | (306 | ) | — | (306 | ) | ||||||||||||||
2.333% | 3-monthUSD-LIBOR | 3/29/2027 | 42,000 | (1,020 | ) | — | (1,020 | ) | ||||||||||||||
2.91% | 3-monthUSD-LIBOR | 2/1/2028 | 16,000 | 84 | — | 84 | ||||||||||||||||
2.908% | 3-monthUSD-LIBOR | 2/1/2028 | 16,000 | 83 | — | 83 | ||||||||||||||||
2.925% | 3-monthUSD-LIBOR | 2/1/2028 | 12,800 | 75 | — | 75 | ||||||||||||||||
2.92% | 3-monthUSD-LIBOR | 2/2/2028 | 12,200 | 69 | — | 69 |
114 American Funds Insurance Series
Table of Contents
U.S.Government/AAA-Rated Securities Fund
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2018 (000) | Upfront payments/ receipts (000) | Unrealized appreciation (depreciation) at 12/31/2018 (000) | ||||||||||||||||
U.S. EFFR | 2.5065% | 3/22/2028 | $ | 8,700 | $ | (92 | ) | $ | — | $ | (92 | ) | ||||||||||
U.S. EFFR | 2.535% | 3/23/2028 | 6,700 | (87 | ) | — | (87 | ) | ||||||||||||||
U.S. EFFR | 2.471% | 3/27/2028 | 8,100 | (62 | ) | — | (62 | ) | ||||||||||||||
U.S. EFFR | 2.4575% | 3/29/2028 | 9,638 | (62 | ) | — | (62 | ) | ||||||||||||||
U.S. EFFR | 2.424% | 3/30/2028 | 8,160 | (30 | ) | — | (30 | ) | ||||||||||||||
U.S. EFFR | 2.412% | 4/5/2028 | 3,702 | (10 | ) | — | (10 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.97125% | 9/2/2030 | 62,000 | (1,081 | ) | — | (1,081 | ) | ||||||||||||||
3-monthUSD-LIBOR | 3.005% | 9/2/2030 | 62,000 | (1,259 | ) | — | (1,259 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.9625% | 2/1/2038 | 9,800 | 30 | — | 30 | ||||||||||||||||
3-monthUSD-LIBOR | 2.963% | 2/1/2038 | 9,800 | 30 | — | 30 | ||||||||||||||||
3-monthUSD-LIBOR | 2.986% | 2/1/2038 | 7,800 | 11 | — | 11 | ||||||||||||||||
3-monthUSD-LIBOR | 2.967% | 2/2/2038 | 7,600 | 21 | — | 21 | ||||||||||||||||
3-monthUSD-LIBOR | 3.34% | 6/27/2044 | 10,000 | (937 | ) | — | (937 | ) | ||||||||||||||
3-monthUSD-LIBOR | 3.206% | 7/31/2044 | 16,000 | (1,108 | ) | — | (1,108 | ) | ||||||||||||||
3-monthUSD-LIBOR | 3.238% | 8/8/2044 | 16,000 | (1,201 | ) | — | (1,201 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.7045% | 1/2/2045 | 12,000 | 310 | — | 310 | ||||||||||||||||
3-monthUSD-LIBOR | 2.5055% | 1/9/2045 | 11,000 | 700 | — | 700 | ||||||||||||||||
3-monthUSD-LIBOR | 2.4945% | 1/9/2045 | 2,000 | 131 | — | 131 | ||||||||||||||||
3-monthUSD-LIBOR | 2.52822% | 11/23/2045 | 4,390 | 266 | — | 266 | ||||||||||||||||
U.S. EFFR | 2.166% | 10/23/2047 | 10,000 | 714 | — | 714 | ||||||||||||||||
U.S. EFFR | 2.145% | 11/9/2047 | 15,400 | 1,169 | — | 1,169 | ||||||||||||||||
U.S. EFFR | 2.153% | 11/10/2047 | 15,300 | 1,137 | — | 1,137 | ||||||||||||||||
U.S. EFFR | 2.155% | 11/10/2047 | 8,640 | 638 | — | 638 | ||||||||||||||||
U.S. EFFR | 2.17% | 11/13/2047 | 15,660 | 1,109 | — | 1,109 | ||||||||||||||||
U.S. EFFR | 2.5635% | 2/12/2048 | 33,204 | (358 | ) | — | (358 | ) | ||||||||||||||
U.S. EFFR | 2.4615% | 3/15/2048 | 2,000 | 20 | — | 20 | ||||||||||||||||
U.S. EFFR | 2.485% | 3/15/2048 | 2,000 | 11 | — | 11 | ||||||||||||||||
U.S. EFFR | 2.425% | 3/16/2048 | 4,100 | 73 | — | 73 | ||||||||||||||||
U.S. EFFR | 2.505% | 3/22/2048 | 4,300 | 5 | — | 5 | ||||||||||||||||
U.S. EFFR | 2.51375% | 3/22/2048 | 4,700 | (3 | ) | — | (3 | ) | ||||||||||||||
U.S. EFFR | 2.625% | 5/25/2048 | 18,000 | (435 | ) | — | (435 | ) | ||||||||||||||
U.S. EFFR | 2.445% | 6/4/2048 | 6,700 | 90 | — | 90 | ||||||||||||||||
U.S. EFFR | 2.52% | 8/24/2048 | 4,500 | (9 | ) | — | (9 | ) | ||||||||||||||
3.236% | 3-month USD-LIBOR | 10/31/2048 | 10,650 | 896 | — | 896 | ||||||||||||||||
3.22859% | 3-monthUSD-LIBOR | 10/31/2048 | 10,645 | 879 | — | 879 | ||||||||||||||||
|
|
|
| |||||||||||||||||||
$ | — | $ | 19,354 | |||||||||||||||||||
|
|
|
|
American Funds Insurance Series 115
Table of Contents
U.S.Government/AAA-Rated Securities Fund
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | All or a portion of this security was pledged as collateral. The total value of pledged collateral was $36,486,000, which represented 1.27% of the net assets of the fund. |
2 | Index-linked bond whose principal amount moves with a government price index. |
3 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
4 | Purchased on a TBA basis. |
5 | Coupon rate may change periodically. |
6 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $151,166,000, which represented 5.27% of the net assets of the fund. |
7 | Notional amount is calculated based on the number of contracts and notional contract size. |
8 | Value is calculated based on the notional amount and current market price. |
Key to abbreviations and symbol
EFFR = Effective Federal Funds Rate
LIBOR = London Interbank Offered Rate
TBA =To-be-announced
USD/$ = U.S. dollars
See notes to financial statements
116 American Funds Insurance Series
Table of Contents
Investment portfolioDecember 31, 2018
Shares | Value (000) | |||||||
Growth funds 80.77% | ||||||||
American Funds Insurance Series – Growth Fund, Class 1 | 3,963,500 | $ | 277,286 | |||||
|
| |||||||
Total growth funds (cost: $279,168,000) | 277,286 | |||||||
|
| |||||||
Fixed income funds 15.59% | ||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 5,110,855 | 53,511 | ||||||
|
| |||||||
Total fixed income funds (cost: $55,321,000) | 53,511 | |||||||
|
| |||||||
Short-term securities 1.50% | ||||||||
Government Cash Management Fund | 5,144,216 | 5,144 | ||||||
|
| |||||||
Total short-term securities (cost: $5,144,000) | 5,144 | |||||||
|
| |||||||
Total investment securities97.86% (cost: $339,633,000) | 335,941 | |||||||
Other assets less liabilities 2.14% | 7,332 | |||||||
|
| |||||||
Net assets100.00% | $ | 343,273 | ||||||
|
|
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount1 (000) | Value at 12/31/20182 (000) | Unrealized appreciation (depreciation) at 12/31/2018 (000) | ||||||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 1,474 | March 2019 | $ | 147,400 | $ | 169,049 | $ | 1,914 | |||||||||||||||
FTSE 100 Index Contracts | Short | 33 | March 2019 | £ | — | 3 | (2,801 | ) | 18 | |||||||||||||||
Euro Stoxx 50 Index Contracts | Short | 131 | March 2019 | € | (1 | ) | (4,464 | ) | 86 | |||||||||||||||
Nikkei 225 Index Contracts | Short | 1 | March 2019 | ¥ | (1 | ) | (182 | ) | 10 | |||||||||||||||
S&P Mid 400E-mini Index Contracts | Short | 7 | March 2019 | $ | (1 | ) | (1,164 | ) | 49 | |||||||||||||||
Mini MSCI Emerging Market Index Contracts | Short | 123 | March 2019 | (6 | ) | (5,946 | ) | 37 | ||||||||||||||||
Russell 2000 Mini Index Contracts | Short | 229 | March 2019 | (12 | ) | (15,446 | ) | 629 | ||||||||||||||||
S&P 500E-mini Index Contracts | Short | 895 | March 2019 | (45 | ) | (112,108 | ) | 3,193 | ||||||||||||||||
British Pound Currency Contracts | Short | 36 | March 2019 | (2,250 | ) | (2,878 | ) | (18 | ) | |||||||||||||||
Euro Currency Contracts | Short | 33 | March 2019 | (4,125 | ) | (4,753 | ) | (20 | ) | |||||||||||||||
Japanese Yen Currency Contracts | Short | 2 | March 2019 | (25,000 | ) | (229 | ) | (7 | ) | |||||||||||||||
|
| |||||||||||||||||||||||
$ | 5,891 | |||||||||||||||||||||||
|
|
American Funds Insurance Series 117
Table of Contents
Managed Risk Growth Fund
Investments in affiliates
These holdings are affiliates of the fund under the Investment Company Act of 1940 since they are controlled by the same board of trustees as the series. Further details on these holdings and related transactions during the year ended December 31, 2018, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized gain (loss) (000) | Net unrealized depreciation (000) | Dividend income (000) | Value of affiliates at 12/31/2018 (000) | |||||||||||||||||||||||||
Growth funds 80.77% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series - Growth Fund, Class 1 | 2,960,791 | 1,174,907 | 172,198 | 3,963,500 | $ | 2,267 | $ | (31,537 | ) | $ | 1,939 | $ | 277,286 | |||||||||||||||||||
Fixed income funds 15.59% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series - Bond Fund, Class 1 | 4,022,202 | 1,831,995 | 743,342 | 5,110,855 | (255 | ) | (1,309 | ) | 1,401 | 53,511 | ||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Total 96.36% | $ | 2,012 | $ | (32,846 | ) | $ | 3,340 | $ | 330,797 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
1 | Notional amount is calculated based on the number of contracts and notional contract size. |
2 | Value is calculated based on the notional amount and current market price. |
3 | Amount less than one thousand. |
Key to symbols
£ = British pounds
€ = Euros
¥ = Japanese yen
See notes to financial statements
118 American Funds Insurance Series
Table of Contents
Managed Risk International Fund
Investment portfolioDecember 31, 2018
Shares | Value (000) | |||||||
Growth funds 79.58% | ||||||||
American Funds Insurance Series – International Fund, Class 1 | 6,802,836 | $ | 120,138 | |||||
|
| |||||||
Total growth funds (cost: $126,861,000) | 120,138 | |||||||
|
| |||||||
Fixed income funds 15.00% | ||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 2,162,908 | 22,646 | ||||||
|
| |||||||
Total fixed income funds (cost: $23,477,000) | 22,646 | |||||||
|
| |||||||
Short-term securities 3.43% | ||||||||
Government Cash Management Fund | 5,178,097 | 5,178 | ||||||
|
| |||||||
Total short-term securities (cost: $5,178,000) | 5,178 | |||||||
|
| |||||||
Total investment securities98.01% (cost: $155,516,000) | 147,962 | |||||||
Other assets less liabilities 1.99% | 2,997 | |||||||
|
| |||||||
Net assets100.00% | $ | 150,959 | ||||||
|
|
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount1 (000) | Value at 12/31/20182 (000) | Unrealized appreciation (depreciation) at 12/31/2018 (000) | ||||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 472 | March 2019 | $ | 47,200 | $ | 54,133 | $ | 615 | |||||||||||||
S&P 500E-mini Index Contracts | Short | 3 | March 2019 | — | 3 | (376 | ) | 23 | ||||||||||||||
FTSE 100 Index Contracts | Short | 55 | March 2019 | £ | (1 | ) | (4,668 | ) | 65 | |||||||||||||
Russell 2000 Mini Index Contracts | Short | 13 | March 2019 | $ | (1 | ) | (877 | ) | 44 | |||||||||||||
Euro Stoxx 50 Index Contracts | Short | 353 | March 2019 | € | (4 | ) | (12,028 | ) | 268 | |||||||||||||
Mini MSCI Emerging Market Index Contracts | Short | 323 | March 2019 | $ | (16 | ) | (15,614 | ) | 186 | |||||||||||||
Nikkei 225 Index Contracts | Short | 37 | March 2019 | ¥ | (37 | ) | (6,751 | ) | 296 | |||||||||||||
British Pound Currency Contracts | Short | 60 | March 2019 | $ | (3,750 | ) | (4,796 | ) | (35 | ) | ||||||||||||
Euro Currency Contracts | Short | 88 | March 2019 | (11,000 | ) | (12,675 | ) | (61 | ) | |||||||||||||
Japanese Yen Currency Contracts | Short | 61 | March 2019 | (762,500 | ) | (6,993 | ) | (182 | ) | |||||||||||||
|
| |||||||||||||||||||||
$ | 1,219 | |||||||||||||||||||||
|
|
American Funds Insurance Series 119
Table of Contents
Managed Risk International Fund
Investments in affiliates
These holdings are affiliates of the fund under the Investment Company Act of 1940 since they are controlled by the same board of trustees as the series. Further details on these holdings and related transactions during the year ended December 31, 2018, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized gain (loss) (000) | Net unrealized depreciation (000) | Dividend income (000) | Value of affiliates at 12/31/2018 (000) | |||||||||||||||||||||||||
Growth funds 79.58% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – International Fund, Class 1 | 5,479,657 | 1,623,392 | 300,213 | 6,802,836 | $ | 360 | $ | (25,996 | ) | $ | 2,591 | $ | 120,138 | |||||||||||||||||||
Fixed income funds 15.00% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 2,063,150 | 605,333 | 505,575 | 2,162,908 | (190 | ) | (574 | ) | 611 | 22,646 | ||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Total 94.58% | $ | 170 | $ | (26,570 | ) | $ | 3,202 | $ | 142,784 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
1 | Notional amount is calculated based on the number of contracts and notional contract size. |
2 | Value is calculated based on the notional amount and current market price. |
3 | Amount less than one thousand. |
Key to symbols
£ = British pounds
€ = Euros
¥ = Japanese yen
See notes to financial statements
120 American Funds Insurance Series
Table of Contents
Managed Risk Blue Chip Income and Growth Fund
Investment portfolioDecember 31, 2018
Shares | Value (000) | |||||||
Growth-and-income funds 80.54% | ||||||||
American Funds Insurance Series – Blue Chip Income and Growth Fund, Class 1 | 21,901,978 | $ | 271,146 | |||||
|
| |||||||
Totalgrowth-and-income funds (cost: $294,629,000) | 271,146 | |||||||
|
| |||||||
Fixed income funds 15.90% | ||||||||
American Funds Insurance Series – U.S.Government/AAA-Rated Securities Fund, Class 1 | 4,484,388 | 53,544 | ||||||
|
| |||||||
Total fixed income funds (cost: $54,558,000) | 53,544 | |||||||
|
| |||||||
Short-term securities 1.37% | ||||||||
Government Cash Management Fund | 4,613,010 | 4,613 | ||||||
|
| |||||||
Total short-term securities (cost: $4,613,000) | 4,613 | |||||||
|
| |||||||
Total investment securities97.81% (cost: $353,800,000) | 329,303 | |||||||
Other assets less liabilities 2.19% | 7,366 | |||||||
|
| |||||||
Net assets 100.00% | $ | 336,669 | ||||||
|
|
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount1 (000) | Value at 12/31/20182 (000) | Unrealized appreciation (depreciation) at 12/31/2018 (000) | ||||||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 1,512 | March 2019 | $ | 151,200 | $ | 173,408 | $ | 1,865 | |||||||||||||||
FTSE 100 Index Contracts | Short | 24 | March 2019 | £ | — | 3 | (2,037 | ) | 10 | |||||||||||||||
S&P Mid 400E-mini Index Contracts | Short | 4 | March 2019 | $ | — | 3 | (665 | ) | 18 | |||||||||||||||
Euro Stoxx 50 Index Contracts | Short | 117 | March 2019 | € | (1 | ) | (3,987 | ) | 74 | |||||||||||||||
Mini MSCI Emerging Market Index Contracts | Short | 42 | March 2019 | $ | (2 | ) | (2,030 | ) | 13 | |||||||||||||||
Russell 2000 Mini Index Contracts | Short | 34 | March 2019 | (2 | ) | (2,293 | ) | 81 | ||||||||||||||||
S&P 500E-mini Index Contracts | Short | 1,088 | March 2019 | (54 | ) | (136,283 | ) | 3,750 | ||||||||||||||||
British Pound Currency Contracts | Short | 27 | March 2019 | (1,688 | ) | (2,158 | ) | (13 | ) | |||||||||||||||
Euro Currency Contracts | Short | 29 | March 2019 | (3,625 | ) | (4,177 | ) | (17 | ) | |||||||||||||||
|
| |||||||||||||||||||||||
$ | 5,781 | |||||||||||||||||||||||
|
|
American Funds Insurance Series 121
Table of Contents
Managed Risk Blue Chip Income and Growth Fund
Investments in affiliates
These holdings are affiliates of the fund under the Investment Company Act of 1940 since they are controlled by the same board of trustees as the series. Further details on these holdings and related transactions during the year ended December 31, 2018, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized gain (loss) (000) | Net unrealized depreciation (000) | Dividend income (000) | Value of affiliates at 12/31/2018 (000) | |||||||||||||||||||||||||
Growth-and-income funds 80.54% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – Blue Chip Income and Growth Fund, Class 1 | 19,699,331 | 4,153,608 | 1,950,961 | 21,901,978 | $ | 4,481 | $ | (54,782 | ) | $ | 6,179 | $ | 271,146 | |||||||||||||||||||
Fixed income funds 15.90% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – U.S.Government/AAA-Rated Securities Fund, Class 1 | 4,530,491 | 736,682 | 782,785 | 4,484,388 | (273 | ) | (347 | ) | 1,085 | 53,544 | ||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Total 96.44% | $ | 4,208 | $ | (55,129 | ) | $ | 7,264 | $ | 324,690 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
1 | Notional amount is calculated based on the number of contracts and notional contract size. |
2 | Value is calculated based on the notional amount and current market price. |
3 | Amount less than one thousand. |
Key to symbols
£ = British pounds
€ = Euros
¥ = Japanese yen
See notes to financial statements
122 American Funds Insurance Series
Table of Contents
Managed Risk Growth-Income Fund
Investment portfolioDecember 31, 2018
Shares | Value (000) | |||||||
Growth-and-income funds 79.46% | ||||||||
American Funds Insurance Series – Growth-Income Fund, Class 1 | 33,123,343 | $ | 1,503,469 | |||||
|
| |||||||
Totalgrowth-and-income funds (cost: $1,522,773,000) | 1,503,469 | |||||||
|
| |||||||
Fixed income funds 14.91% | ||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 26,945,898 | 282,124 | ||||||
|
| |||||||
Total fixed income funds (cost: $281,542,000) | 282,124 | |||||||
|
| |||||||
Short-term securities 3.54% | ||||||||
Government Cash Management Fund | 66,924,852 | 66,925 | ||||||
|
| |||||||
Total short-term securities (cost: $66,925,000) | 66,925 | |||||||
|
| |||||||
Options purchased 0.46% | ||||||||
Options purchased* | 8,674 | |||||||
|
| |||||||
Total options purchased (cost: $7,663,000) | 8,674 | |||||||
|
| |||||||
Total investment securities 98.37% (cost: $1,878,903,000) | 1,861,192 | |||||||
Other assets less liabilities 1.63% | 30,910 | |||||||
|
| |||||||
Net assets 100.00% | $ | 1,892,102 | ||||||
|
|
*Options purchased
Put | ||||||||||||||||||||
Description | Number of contracts | Notional amount (000) | Exercise price | Expiration date | Value at 12/31/2018 (000) | |||||||||||||||
S&P 500 Index | 4,360 | $ | 1,092,987 | $ | 1,850.00 | 6/21/2019 | $ | 6,178 | ||||||||||||
S&P 500 Index | 811 | 203,306 | 2,000.00 | 6/21/2019 | 2,064 | |||||||||||||||
S&P 500 Index | 138 | 34,595 | 2,050.00 | 6/21/2019 | 432 | |||||||||||||||
|
| |||||||||||||||||||
$ | 8,674 | |||||||||||||||||||
|
|
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount1 (000) | Value at 12/31/20182 (000) | Unrealized appreciation (depreciation) at 12/31/2018 (000) | ||||||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 7,323 | March 2019 | $ | 732,300 | $ | 839,857 | $ | 6,919 | |||||||||||||||
FTSE 100 Index Contracts | Short | 272 | March 2019 | £ | (3 | ) | (23,086 | ) | (39 | ) | ||||||||||||||
S&P Mid 400E-mini Index Contracts | Short | 50 | March 2019 | $ | (5 | ) | (8,311 | ) | 127 | |||||||||||||||
Euro Stoxx 50 Index Contracts | Short | 1,107 | March 2019 | € | (11 | ) | (37,721 | ) | 466 | |||||||||||||||
Russell 2000 Mini Index Contracts | Short | 430 | March 2019 | $ | (21 | ) | (29,003 | ) | 435 | |||||||||||||||
Mini MSCI Emerging Market Index Contracts | Short | 532 | March 2019 | (27 | ) | (25,717 | ) | (62 | ) | |||||||||||||||
Nikkei 225 Index Contracts | Short | 27 | March 2019 | ¥ | (27 | ) | (4,927 | ) | 180 | |||||||||||||||
S&P 500E-mini Index Contracts | Short | 3,478 | March 2019 | $ | (174 | ) | (435,654 | ) | 2,778 | |||||||||||||||
British Pound Currency Contracts | Short | 298 | March 2019 | (18,625 | ) | (23,821 | ) | (167 | ) | |||||||||||||||
Euro Currency Contracts | Short | 268 | March 2019 | (33,500 | ) | (38,600 | ) | (222 | ) | |||||||||||||||
Japanese Yen Currency Contracts | Short | 45 | March 2019 | (562,500 | ) | (5,159 | ) | (108 | ) | |||||||||||||||
|
| |||||||||||||||||||||||
$ | 10,307 | |||||||||||||||||||||||
|
|
American Funds Insurance Series 123
Table of Contents
Managed Risk Growth-Income Fund
Investments in affiliates
These holdings are affiliates of the fund under the Investment Company Act of 1940 since they are controlled by the same board of trustees as the series. Further details on these holdings and related transactions during the year ended December 31, 2018, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized loss (000) | Net unrealized (depreciation) appreciation (000) | Dividend income (000) | Value of affiliates at 12/31/2018 (000) | |||||||||||||||||||||||||
Growth-and-income funds 79.46% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series - Growth-Income Fund, Class 1 | 3,331,787 | 30,474,528 | 682,972 | 33,123,343 | $ | (1,765 | ) | $ | (33,463 | ) | $ | 3,205 | $ | 1,503,469 | ||||||||||||||||||
Fixed income funds 14.91% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series - Bond Fund, Class 1 | 2,916,097 | 25,446,042 | 1,416,241 | 26,945,898 | (614 | ) | 951 | 958 | 282,124 | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Total 94.37% | $ | (2,379 | ) | $ | (32,512 | ) | $ | 4,163 | $ | 1,785,593 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
1 | Notional amount is calculated based on the number of contracts and notional contract size. |
2 | Value is calculated based on the notional amount and current market price. |
Key to symbols
£ = British pounds
€ = Euros
¥ = Japanese yen
See notes to financial statements
124 American Funds Insurance Series
Table of Contents
Managed Risk Asset Allocation Fund
Investment portfolioDecember 31, 2018
Shares | Value (000) | |||||||
Asset allocation funds 96.69% | ||||||||
American Funds Insurance Series – Asset Allocation Fund, Class 1 | 115,468,223 | $ | 2,458,318 | |||||
|
| |||||||
Total asset allocation funds (cost: $2,512,141,000) | 2,458,318 | |||||||
|
| |||||||
Short-term securities 1.91% | ||||||||
Government Cash Management Fund | 48,607,102 | 48,607 | ||||||
|
| |||||||
Total short-term securities (cost: $48,607,000) | 48,607 | |||||||
|
| |||||||
Total investment securities 98.60% (cost: $2,560,748,000) | 2,506,925 | |||||||
Other assets less liabilities 1.40% | 35,572 | |||||||
|
| |||||||
Net assets 100.00% | $ | 2,542,497 | ||||||
|
|
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount1 (000) | Value at 12/31/20182 (000) | Unrealized appreciation (depreciation) at 12/31/2018 (000) | ||||||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 7,806 | March 2019 | $ | 780,600 | $ | 895,251 | $ | 8,348 | |||||||||||||||
FTSE 100 Index Contracts | Short | 120 | March 2019 | £ | (1 | ) | (10,185 | ) | 46 | |||||||||||||||
S&P Mid 400E-mini Index Contracts | Short | 33 | March 2019 | $ | (3 | ) | (5,485 | ) | 146 | |||||||||||||||
Euro Stoxx 50 Index Contracts | Short | 671 | March 2019 | € | (7 | ) | (22,864 | ) | 375 | |||||||||||||||
Nikkei 225 Index Contracts | Short | 7 | March 2019 | ¥ | (7 | ) | (1,277 | ) | 49 | |||||||||||||||
Russell 2000 Mini Index Contracts | Short | 895 | March 2019 | $ | (45 | ) | (60,368 | ) | 1,608 | |||||||||||||||
Mini MSCI Emerging Market Index Contracts | Short | 1,027 | March 2019 | (51 | ) | (49,645 | ) | 184 | ||||||||||||||||
S&P 500E-mini Index Contracts | Short | 4,514 | March 2019 | (226 | ) | (565,424 | ) | 14,749 | ||||||||||||||||
British Pound Currency Contracts | Short | 131 | March 2019 | (8,188 | ) | (10,472 | ) | (63 | ) | |||||||||||||||
Euro Currency Contracts | Short | 165 | March 2019 | (20,625 | ) | (23,765 | ) | (88 | ) | |||||||||||||||
Japanese Yen Currency Contracts | Short | 12 | March 2019 | (150,000 | ) | (1,376 | ) | (31 | ) | |||||||||||||||
|
| |||||||||||||||||||||||
$ | 25,323 | |||||||||||||||||||||||
|
|
Investment in affiliates
This holding is an affiliate of the fund under the Investment Company Act of 1940 since it is controlled by the same board of trustees as the series. Further details on this holding and related transactions during the year ended December 31, 2018, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized loss (000) | Net unrealized depreciation (000) | Dividend income (000) | Value of affiliate at 12/31/2018 (000) | |||||||||||||||||||||||||
Asset allocation funds 96.69% |
| |||||||||||||||||||||||||||||||
American Funds Insurance Series - Asset Allocation Fund, Class 1 | 178,833,494 | 22,204,494 | 85,569,765 | 115,468,223 | $ | (39,223 | ) | $ | (392,470 | ) | $ | 80,687 | $ | 2,458,318 |
1 | Notional amount is calculated based on the number of contracts and notional contract size. |
2 | Value is calculated based on the notional amount and current market price. |
Key to symbols
£ = British pounds
€ = Euros
¥ = Japanese yen
See notes to financial statements
American Funds Insurance Series 125
Table of Contents
Statements of assets and liabilitiesat December 31, 2018
Global Growth Fund | Global Small Capitalization Fund | Growth Fund | International Fund | New World Fund | ||||||||||||||||
Assets: | ||||||||||||||||||||
Investment securities, at value: | ||||||||||||||||||||
Unaffiliated issuers | $ | 5,486,916 | $ | 3,673,913 | $ | 23,407,476 | $ | 8,996,441 | $ | 2,999,468 | ||||||||||
Affiliated issuers | — | 29,982 | — | — | — | |||||||||||||||
Cash | 178 | 156 | 1,343 | 131 | 4,433 | |||||||||||||||
Cash pledged for securities on loan | — | 6,049 | — | — | — | |||||||||||||||
Cash pledged for forward currency contracts | — | — | — | 330 | — | |||||||||||||||
Cash denominated in currencies other than U.S. dollars | 1 | 80 | — | 1,626 | 712 | |||||||||||||||
Unrealized appreciation on open forward currency contracts | — | — | — | — | 356 | |||||||||||||||
Receivables for: | ||||||||||||||||||||
Sales of investments | 319 | 3,233 | 21,198 | 1,944 | 4,847 | |||||||||||||||
Sales of fund’s shares | 28,743 | 5,568 | 49,254 | 16,453 | 1,400 | |||||||||||||||
Dividends and interest | 8,330 | 3,564 | 13,574 | 16,015 | 5,498 | |||||||||||||||
Variation margin on futures contracts | — | — | — | — | — | |||||||||||||||
Variation margin on swap contracts | — | — | — | — | — | |||||||||||||||
Securities lending income | — | 160 | — | — | — | |||||||||||||||
Other | 378 | 124 | 2 | 136 | 7 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
5,524,865 | 3,722,829 | 23,492,847 | 9,033,076 | 3,016,721 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities: | ||||||||||||||||||||
Collateral for securities on loan | — | 60,486 | — | — | — | |||||||||||||||
Unrealized depreciation on open forward currency contracts | — | — | — | 525 | 53 | |||||||||||||||
Payables for: | ||||||||||||||||||||
Purchases of investments | 16,115 | 3,150 | 21,907 | 6,618 | 808 | |||||||||||||||
Repurchases of fund’s shares | 2,128 | 605 | 11,254 | 4,966 | 1,595 | |||||||||||||||
Investment advisory services | 2,473 | 2,214 | 6,602 | 3,815 | 1,833 | |||||||||||||||
Insurance administrative fees | 163 | 95 | 706 | 193 | 293 | |||||||||||||||
Services provided by related parties | 810 | 506 | 3,421 | 970 | 302 | |||||||||||||||
Trustees’ deferred compensation | 72 | 48 | 503 | 213 | 32 | |||||||||||||||
Variation margin on futures contracts | — | — | — | — | — | |||||||||||||||
Variation margin on swap contracts | — | — | — | — | — | |||||||||||||||
Non-U.S. taxes | 853 | 931 | 515 | 5,462 | 793 | |||||||||||||||
Other | 98 | 280 | 78 | 204 | 133 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
22,712 | 68,315 | 44,986 | 22,966 | 5,842 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net assets at December 31, 2018 | $ | 5,502,153 | $ | 3,654,514 | $ | 23,447,861 | $ | 9,010,110 | $ | 3,010,879 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net assets consist of: | ||||||||||||||||||||
Capital paid in on shares of beneficial interest | $ | 3,889,612 | $ | 3,067,044 | $ | 14,176,248 | $ | 8,331,112 | $ | 2,702,017 | ||||||||||
Total distributable earnings (accumulated loss) | 1,612,541 | 587,470 | 9,271,613 | 678,998 | 308,862 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net assets at December 31, 2018 | $ | 5,502,153 | $ | 3,654,514 | $ | 23,447,861 | $ | 9,010,110 | $ | 3,010,879 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Investment securities, at cost: | ||||||||||||||||||||
Unaffiliated issuers | $ | 4,224,241 | $ | 3,380,162 | $ | 16,925,576 | $ | 8,523,681 | $ | 2,819,850 | ||||||||||
Affiliated issuers | — | 45,822 | — | — | — | |||||||||||||||
Cash denominated in currencies other than U.S. dollars, at cost | 1 | 86 | — | 1,620 | 711 |
See end of statements of assets and liabilities for footnote.
See notes to financial statements
126 American Funds Insurance Series
Table of Contents
(dollars in thousands) | ||||||||||||||||||||||||||||||||||
Blue Chip Income and Growth Fund | Global Growth and Income Fund | Growth- Income Fund | International Growth and Income Fund | Capital Income Builder | Asset Allocation Fund | Global Balanced Fund | Bond Fund | Global Bond Fund | ||||||||||||||||||||||||||
$ | 8,018,033 | $ | 1,811,931 | $ | 29,638,729 | $ | 1,333,446 | $ | 679,748 | $ | 23,114,218 | $ | 368,422 | $ | 10,945,510 | $ | 2,123,592 | |||||||||||||||||
— | — | 202,273 | — | — | 153,583 | — | — | — | ||||||||||||||||||||||||||
1,442 | 226 | 5,392 | 131 | 493 | 3,965 | 111 | 5,730 | 633 | ||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
— | — | 1 | 162 | 116 | 840 | 7 | 6,114 | 964 | ||||||||||||||||||||||||||
— | 351 | — | — | — | — | 214 | 5,141 | 12,488 | ||||||||||||||||||||||||||
— | — | 50,544 | — | 425 | 103,114 | 81 | 766,356 | 3,468 | ||||||||||||||||||||||||||
4,453 | 597 | 41,007 | 127 | 1,890 | 10,186 | 175 | 2,561 | 30 | ||||||||||||||||||||||||||
14,855 | 4,749 | 41,209 | 5,240 | 2,673 | 66,435 | 1,558 | 63,965 | 17,559 | ||||||||||||||||||||||||||
— | — | — | — | 286 | 1,056 | 32 | 3,526 | 755 | ||||||||||||||||||||||||||
— | — | — | — | — | 83 | 4 | 94 | 49 | ||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
— | 25 | — | 31 | 3 | 313 | 18 | 377 | 53 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
8,038,783 | 1,817,879 | 29,979,155 | 1,339,137 | 685,634 | 23,453,793 | 370,622 | 11,799,374 | 2,159,591 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
— | — | — | — | — | — | 132 | 14,412 | 5,570 | ||||||||||||||||||||||||||
— | — | 75,910 | 112 | 9,280 | 506,077 | 3,803 | 1,901,710 | 56,897 | ||||||||||||||||||||||||||
3,583 | 545 | 27,805 | 301 | 228 | 11,216 | 134 | 23,576 | 7,155 | ||||||||||||||||||||||||||
2,735 | 940 | 6,567 | 701 | 283 | 5,477 | 206 | 3,023 | 948 | ||||||||||||||||||||||||||
231 | 61 | 588 | 46 | 225 | 2,313 | 44 | 225 | 25 | ||||||||||||||||||||||||||
766 | 301 | 3,070 | 76 | 80 | 1,980 | 57 | 918 | 247 | ||||||||||||||||||||||||||
80 | 23 | 576 | 9 | 3 | 258 | 2 | 116 | 24 | ||||||||||||||||||||||||||
— | — | — | — | 237 | 99 | — | 351 | 145 | ||||||||||||||||||||||||||
— | — | — | — | — | 756 | 1 | 356 | 7 | ||||||||||||||||||||||||||
100 | 87 | 407 | 592 | 12 | 126 | 48 | — | 453 | ||||||||||||||||||||||||||
16 | 48 | 97 | 42 | 6 | 40 | 6 | — | 103 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
7,511 | 2,005 | 115,020 | 1,879 | 10,354 | 528,342 | 4,433 | 1,944,687 | 71,574 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
$ | 8,031,272 | $ | 1,815,874 | $ | 29,864,135 | $ | 1,337,258 | $ | 675,280 | $ | 22,925,451 | $ | 366,189 | $ | 9,854,687 | $ | 2,088,017 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
$ | 6,594,985 | $ | 1,523,636 | $ | 21,925,796 | $ | 1,347,787 | $ | 710,885 | $ | 19,064,550 | $ | 341,847 | $ | 10,077,153 | $ | 2,124,152 | |||||||||||||||||
1,436,287 | 292,238 | 7,938,339 | (10,529 | ) | (35,605 | ) | 3,860,901 | 24,342 | (222,466 | ) | (36,135 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
$ | 8,031,272 | $ | 1,815,874 | $ | 29,864,135 | $ | 1,337,258 | $ | 675,280 | $ | 22,925,451 | $ | 366,189 | $ | 9,854,687 | $ | 2,088,017 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
$ | 7,325,397 | $ | 1,627,160 | $ | 25,100,577 | $ | 1,364,122 | $ | 702,114 | $ | 20,304,078 | $ | 345,235 | $ | 11,058,951 | $ | 2,167,128 | |||||||||||||||||
— | — | 273,780 | — | — | 586,257 | — | — | — | ||||||||||||||||||||||||||
— | — | 1 | 159 | 116 | 840 | 7 | 6,229 | 961 |
American Funds Insurance Series 127
Table of Contents
Statements of assets and liabilitiesat December 31, 2018
High- Income Bond Fund | Mortgage Fund | Ultra-Short Bond Fund | U.S. Government/ AAA-Rated Securities Fund | Managed Risk Growth Fund | ||||||||||||||||
Assets: | ||||||||||||||||||||
Investment securities, at value: | ||||||||||||||||||||
Unaffiliated issuers | $ | 1,182,891 | $ | 343,748 | $ | 306,746 | $ | 3,110,704 | $ | 5,144 | ||||||||||
Affiliated issuers | — | — | — | — | 330,797 | |||||||||||||||
Cash | 840 | 383 | 80 | 3,850 | — | |||||||||||||||
Cash pledged for futures contracts | — | — | — | — | 8,181 | |||||||||||||||
Cash denominated in currencies other than U.S. dollars | — | * | — | — | — | — | ||||||||||||||
Receivables for: | ||||||||||||||||||||
Sales of investments | 2,745 | 460 | — | 45,521 | — | |||||||||||||||
Sales of fund’s shares | 77 | 204 | 48 | 642 | 596 | |||||||||||||||
Dividends and interest | 21,205 | 877 | — | 11,543 | 22 | |||||||||||||||
Variation margin on futures contracts | — | 249 | — | 4,583 | 394 | |||||||||||||||
Variation margin on swap contracts | 40 | 170 | — | 2,783 | — | |||||||||||||||
Other | 168 | 2 | — | 28 | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
1,207,966 | 346,093 | 306,874 | 3,179,654 | 345,134 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities: | ||||||||||||||||||||
Payables for: | ||||||||||||||||||||
Purchases of investments | 1,934 | 54,109 | — | 295,152 | 563 | |||||||||||||||
Repurchases of fund’s shares | 1,312 | 356 | 301 | 8,565 | 3 | |||||||||||||||
Investment advisory services | 498 | 105 | 82 | 830 | 29 | |||||||||||||||
Insurance administrative fees | 22 | 13 | 10 | 49 | 215 | |||||||||||||||
Services provided by related parties | 163 | 19 | 59 | 328 | 71 | |||||||||||||||
Trustees’ deferred compensation | 50 | 3 | 18 | 60 | 1 | |||||||||||||||
Variation margin on futures contracts | — | — | — | 594 | 979 | |||||||||||||||
Variation margin on swap contracts | 87 | 313 | — | 4,772 | — | |||||||||||||||
Other | 1 | — | — | 1 | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
4,067 | 54,918 | 470 | 310,351 | 1,861 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net assets at December 31, 2018 | $ | 1,203,899 | $ | 291,175 | $ | 306,404 | $ | 2,869,303 | $ | 343,273 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net assets consist of: | ||||||||||||||||||||
Capital paid in on shares of beneficial interest | $ | 1,464,474 | $ | 295,903 | $ | 305,431 | $ | 2,910,880 | $ | 326,588 | ||||||||||
Total distributable earnings (accumulated loss) | (260,575 | ) | (4,728 | ) | 973 | (41,577 | ) | 16,685 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net assets at December 31, 2018 | $ | 1,203,899 | $ | 291,175 | $ | 306,404 | $ | 2,869,303 | $ | 343,273 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Investment securities, at cost: | ||||||||||||||||||||
Unaffiliated issuers | $ | 1,274,934 | $ | 344,748 | $ | 306,754 | $ | 3,124,841 | $ | 5,144 | ||||||||||
Affiliated issuers | — | — | — | — | 334,489 | |||||||||||||||
Cash denominated in currencies other than U.S. dollars, at cost | — | * | — | — | — | — |
See end of statements of assets and liabilities for footnote.
See notes to financial statements
128 American Funds Insurance Series
Table of Contents
(dollars in thousands) | ||||||||||||||||
Managed Risk International Fund | Managed Risk Blue Chip Income and Growth Fund | Managed Risk Growth- Income Fund | Managed Risk Asset Allocation Fund | |||||||||||||
$ | 5,178 | $ | 4,613 | $ | 75,599 | $ | 48,607 | |||||||||
142,784 | 324,690 | 1,785,593 | 2,458,318 | |||||||||||||
— | — | — | — | |||||||||||||
3,017 | 8,327 | 34,515 | 41,388 | |||||||||||||
— | — | — | — | |||||||||||||
— | — | 27,293 | 374 | |||||||||||||
190 | 386 | 339 | 336 | |||||||||||||
10 | 22 | 67 | 305 | |||||||||||||
182 | 389 | 1,951 | 2,143 | |||||||||||||
— | — | — | — | |||||||||||||
— | — | — | — | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
151,361 | 338,427 | 1,925,357 | 2,551,471 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
174 | 364 | — | — | |||||||||||||
6 | 3 | 29,069 | 729 | |||||||||||||
13 | 29 | 84 | 298 | |||||||||||||
96 | 214 | 308 | 2,570 | |||||||||||||
31 | 70 | 48 | 538 | |||||||||||||
1 | 2 | 1 | 23 | |||||||||||||
81 | 1,076 | 3,745 | 4,816 | |||||||||||||
— | — | — | — | |||||||||||||
— | — | — | — | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
402 | 1,758 | 33,255 | 8,974 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 150,959 | $ | 336,669 | $ | 1,892,102 | $ | 2,542,497 | |||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 157,470 | $ | 340,198 | $ | 1,895,504 | $ | 2,426,171 | |||||||||
(6,511 | ) | (3,529 | ) | (3,402 | ) | 116,326 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 150,959 | $ | 336,669 | $ | 1,892,102 | $ | 2,542,497 | |||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 5,178 | $ | 4,613 | $ | 74,588 | $ | 48,607 | |||||||||
150,338 | 349,187 | 1,804,315 | 2,512,141 | |||||||||||||
— | — | — | — |
American Funds Insurance Series 129
Table of Contents
Statements of assets and liabilitiesat December 31, 2018
Global Growth Fund | Global Small Capitalization Fund | Growth Fund | International Fund | New World Fund | ||||||||||||||||
Shares of beneficial interest issued and outstanding (no stated par value) — unlimited shares authorized | ||||||||||||||||||||
Class 1: | ||||||||||||||||||||
Net assets | $ | 1,942,639 | $ | 1,452,476 | $ | 8,474,126 | $ | 4,811,429 | $ | 1,701,716 | ||||||||||
Shares outstanding | 75,457 | 66,791 | 121,126 | 272,408 | 81,098 | |||||||||||||||
Net asset value per share | $ | 25.74 | $ | 21.75 | $ | 69.96 | $ | 17.66 | $ | 20.98 | ||||||||||
Class 1A: | ||||||||||||||||||||
Net assets | $ | 4,778 | $ | 353 | $ | 9,862 | $ | 4,936 | $ | 2,363 | ||||||||||
Shares outstanding | 186 | 16 | 141 | 280 | 113 | |||||||||||||||
Net asset value per share | $ | 25.69 | $ | 21.71 | $ | 69.77 | $ | 17.62 | $ | 20.92 | ||||||||||
Class 2: | ||||||||||||||||||||
Net assets | $ | 3,306,059 | $ | 2,055,787 | $ | 13,700,966 | $ | 3,875,242 | $ | 843,316 | ||||||||||
Shares outstanding | 129,626 | 97,154 | 197,204 | 220,231 | 40,558 | |||||||||||||||
Net asset value per share | $ | 25.50 | $ | 21.16 | $ | 69.48 | $ | 17.60 | $ | 20.79 | ||||||||||
Class 3: | ||||||||||||||||||||
Net assets | $ | 187,003 | $ | 23,753 | ||||||||||||||||
Shares outstanding | | Not applicable | | | Not applicable | | 2,655 | 1,342 | | Not applicable | | |||||||||
Net asset value per share | $ | 70.44 | $ | 17.70 | ||||||||||||||||
Class 4: | ||||||||||||||||||||
Net assets | $ | 248,677 | $ | 145,898 | $ | 1,075,904 | $ | 294,750 | $ | 463,484 | ||||||||||
Shares outstanding | 9,795 | 6,855 | 15,676 | 16,935 | 22,375 | |||||||||||||||
Net asset value per share | $ | 25.39 | $ | 21.28 | $ | 68.64 | $ | 17.40 | $ | 20.71 | ||||||||||
High- Income Bond Fund | Mortgage Fund | Ultra-Short Bond Fund | U.S. Government/ AAA-Rated Securities Fund | Managed Risk Growth Fund | ||||||||||||||||
Shares of beneficial interest issued and outstanding (no stated par value) — unlimited shares authorized | ||||||||||||||||||||
Class 1: | ||||||||||||||||||||
Net assets | $ | 501,284 | $ | 209,329 | $ | 36,869 | $ | 1,445,275 | ||||||||||||
Shares outstanding | 53,676 | 20,330 | 3,259 | 121,022 | | Not applicable | | |||||||||||||
Net asset value per share | $ | 9.34 | $ | 10.30 | $ | 11.31 | $ | 11.94 | ||||||||||||
Class 1A: | ||||||||||||||||||||
Net assets | $ | 644 | $ | 739 | $ | 10 | $ | 1,510 | ||||||||||||
Shares outstanding | 69 | 72 | 1 | 127 | | Not applicable | | |||||||||||||
Net asset value per share | $ | 9.33 | $ | 10.28 | $ | 11.31 | $ | 11.93 | ||||||||||||
Class 2: | ||||||||||||||||||||
Net assets | $ | 661,317 | $ | 56,871 | $ | 247,022 | $ | 1,322,968 | ||||||||||||
Shares outstanding | 71,992 | 5,534 | 22,403 | 111,891 | | Not applicable | | |||||||||||||
Net asset value per share | $ | 9.19 | $ | 10.28 | $ | 11.03 | $ | 11.82 | ||||||||||||
Class 3: | ||||||||||||||||||||
Net assets | $ | 9,485 | $ | 4,516 | $ | 8,900 | ||||||||||||||
Shares outstanding | 1,011 | | Not applicable | | 405 | 743 | | Not applicable | | |||||||||||
Net asset value per share | $ | 9.38 | $ | 11.14 | $ | 11.97 | ||||||||||||||
Class 4: | ||||||||||||||||||||
Net assets | $ | 31,169 | $ | 24,236 | $ | 17,987 | $ | 90,650 | ||||||||||||
Shares outstanding | 3,129 | 2,379 | 1,613 | 7,659 | | Not applicable | | |||||||||||||
Net asset value per share | $ | 9.96 | $ | 10.19 | $ | 11.15 | $ | 11.84 | ||||||||||||
Class P1: | ||||||||||||||||||||
Net assets | $ | 2,850 | ||||||||||||||||||
Shares outstanding | | Not applicable | | | Not applicable | | | Not applicable | | | Not applicable | | 232 | |||||||
Net asset value per share | $ | 12.30 | ||||||||||||||||||
Class P2: | ||||||||||||||||||||
Net assets | $ | 340,423 | ||||||||||||||||||
Shares outstanding | | Not applicable | | | Not applicable | | | Not applicable | | | Not applicable | | 27,883 | |||||||
Net asset value per share | $ | 12.21 |
* | Amount less than one thousand. |
See notes to financial statements
130 American Funds Insurance Series
Table of Contents
(dollars and shares in thousands, exceptper-share amounts) | ||||||||||||||||||||||||||||||||||
Blue Chip | Global | International | ||||||||||||||||||||||||||||||||
Income and | Growth | Growth- | Growth | Capital | Asset | Global | Global | |||||||||||||||||||||||||||
Growth | and Income | Income | and Income | Income | Allocation | Balanced | Bond | Bond | ||||||||||||||||||||||||||
Fund | Fund | Fund | Fund | Builder | Fund | Fund | Fund | Fund | ||||||||||||||||||||||||||
$ | 4,809,964 | $ | 492,281 | $ | 16,782,983 | $ | 1,034,317 | $ | 316,763 | $ | 14,626,696 | $ | 109,776 | $ | 5,961,685 | $ | 1,015,292 | |||||||||||||||||
388,433 | 37,818 | 369,768 | 67,397 | 33,820 | 686,976 | 9,410 | 569,176 | 88,889 | ||||||||||||||||||||||||||
$ | 12.38 | $ | 13.02 | $ | 45.39 | $ | 15.35 | $ | 9.37 | $ | 21.29 | $ | 11.67 | $ | 10.47 | $ | 11.42 | |||||||||||||||||
$ | 3,162 | $ | 927 | $ | 6,733 | $ | 1,749 | $ | 2,686 | $ | 6,982 | $ | 2,007 | $ | 3,284 | $ | 400 | |||||||||||||||||
256 | 72 | 149 | 114 | 287 | 328 | 172 | 314 | 35 | ||||||||||||||||||||||||||
$ | 12.35 | $ | 13.00 | $ | 45.28 | $ | 15.33 | $ | 9.36 | $ | 21.26 | $ | 11.65 | $ | 10.45 | $ | 11.41 | |||||||||||||||||
$ | 2,850,294 | $ | 1,227,787 | $ | 12,035,441 | $ | 230,035 | $ | 3,719 | $ | 4,667,683 | $ | 184,786 | $ | 3,523,963 | $ | 1,032,370 | |||||||||||||||||
232,925 | 94,484 | 268,073 | 15,034 | 397 | 221,412 | 15,865 | 340,694 | 91,060 | ||||||||||||||||||||||||||
$ | 12.24 | $ | 12.99 | $ | 44.90 | $ | 15.30 | $ | 9.36 | $ | 21.08 | $ | 11.65 | $ | 10.34 | $ | 11.34 | |||||||||||||||||
$ | 140,465 | $ | 29,682 | |||||||||||||||||||||||||||||||
| Not applicable | | | Not applicable | | 3,089 | | Not applicable | | | Not applicable | | 1,392 | | Not applicable | | | Not applicable | | | Not applicable | | ||||||||||||
$ | 45.47 | $ | 21.32 | |||||||||||||||||||||||||||||||
$ | 367,852 | $ | 94,879 | $ | 898,513 | $ | 71,157 | $ | 352,112 | $ | 3,594,408 | $ | 69,620 | $ | 365,755 | $ | 39,955 | |||||||||||||||||
30,177 | 7,405 | 20,203 | 4,675 | 37,666 | 171,230 | 6,029 | 35,411 | 3,554 | ||||||||||||||||||||||||||
$ | 12.19 | $ | 12.81 | $ | 44.47 | $ | 15.22 | $ | 9.35 | $ | 20.99 | $ | 11.55 | $ | 10.33 | $ | 11.24 | |||||||||||||||||
Managed | Managed | Managed | ||||||||||||||||||||||||||||||||
Managed | Risk Blue | Risk | Risk | |||||||||||||||||||||||||||||||
Risk | Chip Income | Growth- | Asset | |||||||||||||||||||||||||||||||
International | and Growth | Income | Allocation | |||||||||||||||||||||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||||||||||||||||||||
| Not applicable | | | Not applicable | | | Not applicable | | | Not applicable | | |||||||||||||||||||||||
| Not applicable | | | Not applicable | | | Not applicable | | | Not applicable | | |||||||||||||||||||||||
| Not applicable | | | Not applicable | | | Not applicable | | | Not applicable | | |||||||||||||||||||||||
| Not applicable | | | Not applicable | | | Not applicable | | | Not applicable | | |||||||||||||||||||||||
| Not applicable | | | Not applicable | | | Not applicable | | | Not applicable | | |||||||||||||||||||||||
$ | 379 | $ | 492 | $ | 1,661,806 | $ | 1,596 | |||||||||||||||||||||||||||
39 | 44 | 141,701 | 130 | |||||||||||||||||||||||||||||||
$ | 9.82 | $ | 11.28 | $ | 11.73 | $ | 12.23 | |||||||||||||||||||||||||||
$ | 150,580 | $ | 336,177 | $ | 230,296 | $ | 2,540,901 | |||||||||||||||||||||||||||
15,421 | 29,981 | 19,726 | 207,856 | |||||||||||||||||||||||||||||||
$ | 9.76 | $ | 11.21 | $ | 11.67 | $ | 12.22 |
American Funds Insurance Series 131
Table of Contents
Statements of operationsfor the year ended December 31, 2018
Global Growth Fund | Global Small Capitalization Fund | Growth Fund | International Fund | New World Fund | ||||||||||||||||
Investment income: | ||||||||||||||||||||
Income (net ofnon-U.S. taxes*): | ||||||||||||||||||||
Dividends | $ | 89,435 | $ | 40,551 | $ | 266,249 | $ | 188,307 | $ | 47,131 | ||||||||||
Interest | 6,142 | 7,378 | 28,788 | 23,999 | 16,421 | |||||||||||||||
Securities lending income | — | 730 | — | — | — | |||||||||||||||
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95,577 | 48,659 | 295,037 | 212,306 | 63,552 | ||||||||||||||||
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|
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| |||||||||||
Fees and expenses*: | ||||||||||||||||||||
Investment advisory services | 32,234 | 29,438 | 83,065 | 48,247 | 23,782 | |||||||||||||||
Distribution services | 10,330 | 6,459 | 42,560 | 11,764 | 3,589 | |||||||||||||||
Insurance administrative services | 633 | 367 | 2,750 | 790 | 1,164 | |||||||||||||||
Transfer agent services | 1 | — | † | 3 | 1 | — | † | |||||||||||||
Administrative services | 624 | 423 | 2,573 | 981 | 339 | |||||||||||||||
Reports to shareholders | 218 | 136 | 900 | 342 | 127 | |||||||||||||||
Registration statement and prospectus | 47 | 88 | 197 | 66 | 29 | |||||||||||||||
Trustees’ compensation | 37 | 25 | 150 | 58 | 20 | |||||||||||||||
Auditing and legal | 76 | 65 | 80 | 102 | 72 | |||||||||||||||
Custodian | 964 | 643 | 502 | 1,867 | 1,253 | |||||||||||||||
Other | 137 | 228 | 252 | 202 | 342 | |||||||||||||||
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|
| |||||||||||
Total fees and expenses before waivers | 45,301 | 37,872 | 133,032 | 64,420 | 30,717 | |||||||||||||||
Less waivers of fees and expenses: | ||||||||||||||||||||
Investment advisory services waivers | — | — | — | — | — | |||||||||||||||
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Total waivers of fees and expenses | — | — | — | — | — | |||||||||||||||
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| |||||||||||
Total fees and expenses after waivers | 45,301 | 37,872 | 133,032 | 64,420 | 30,717 | |||||||||||||||
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| |||||||||||
Net investment income | 50,276 | 10,787 | 162,005 | 147,886 | 32,835 | |||||||||||||||
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| |||||||||||
Net realized gain (loss) and unrealized (depreciation) appreciation: | ||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Unaffiliated issuers | 344,211 | 244,684 | 2,850,252 | 248,667 | 125,246 | |||||||||||||||
Affiliated issuers | — | 2,632 | — | — | — | |||||||||||||||
Futures contracts | — | — | — | — | — | |||||||||||||||
Forward currency contracts | (21 | ) | 94 | — | 1,317 | 649 | ||||||||||||||
Swap contracts | — | — | — | — | — | |||||||||||||||
Currency transactions | (648 | ) | (349 | ) | (1,358 | ) | (2,744 | ) | 308 | |||||||||||
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| �� |
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| ||||||||||
343,542 | 247,061 | 2,848,894 | 247,240 | 126,203 | ||||||||||||||||
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| |||||||||||
Net unrealized (depreciation) appreciation on: | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Unaffiliated issuers | (919,949 | ) | (654,311 | ) | (2,970,971 | ) | (1,741,395 | ) | (647,695 | ) | ||||||||||
Affiliated issuers | — | (19,991 | ) | — | — | — | ||||||||||||||
Futures contracts | — | — | — | — | — | |||||||||||||||
Forward currency contracts | (15 | ) | 1,103 | — | (170 | ) | 626 | |||||||||||||
Swap contracts | — | — | — | — | — | |||||||||||||||
Currency translations | 288 | 41 | (119 | ) | (189 | ) | 36 | |||||||||||||
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|
| |||||||||||
(919,676 | ) | (673,158 | ) | (2,971,090 | ) | (1,741,754 | ) | (647,033 | ) | |||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||
Net realized gain (loss) and unrealized (depreciation) appreciation | (576,134 | ) | (426,097 | ) | (122,196 | ) | (1,494,514 | ) | (520,830 | ) | ||||||||||
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Net (decrease) increase in net assets resulting from operations | $ | (525,858 | ) | $ | (415,310 | ) | $ | 39,809 | $ | (1,346,628 | ) | $ | (487,995 | ) | ||||||
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See end of statements of operations for footnotes.
See notes to financial statements
132 American Funds Insurance Series
Table of Contents
(dollars in thousands) | ||||||||||||||||||||||||||||||||||
Blue Chip Income and Growth Fund | Global Growth and Income Fund | Growth- Income Fund | International Growth and Income Fund | Capital Income Builder | Asset Allocation Fund | Global Balanced Fund | Bond Fund | Global Bond Fund | ||||||||||||||||||||||||||
$ | 225,462 | $ | 47,619 | $ | 561,216 | $ | 42,953 | $ | 18,229 | $ | 330,664 | $ | 5,923 | $ | — | $ | — | |||||||||||||||||
5,328 | 5,256 | 43,954 | 4,649 | 5,121 | 270,199 | 3,763 | 319,829 | 71,425 | ||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
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| |||||||||||||||||
230,790 | 52,875 | 605,170 | 47,602 | 23,350 | 600,863 | 9,686 | 319,829 | 71,425 | ||||||||||||||||||||||||||
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| |||||||||||||||||
35,312 | 12,167 | 81,100 | 8,812 | 3,229 | 68,775 | 2,520 | 37,656 | 12,085 | ||||||||||||||||||||||||||
9,118 | 3,848 | 36,914 | 840 | 885 | 22,505 | 680 | 10,220 | 2,901 | ||||||||||||||||||||||||||
794 | 233 | 2,300 | 183 | 884 | 9,354 | 167 | 835 | 97 | ||||||||||||||||||||||||||
1 | — | † | 4 | — | † | — | † | 3 | — | † | 1 | — | † | |||||||||||||||||||||
909 | 205 | 3,139 | 146 | 65 | 2,590 | 38 | 1,037 | 228 | ||||||||||||||||||||||||||
239 | 47 | 1,105 | 23 | 10 | 837 | 6 | 320 | 58 | ||||||||||||||||||||||||||
28 | 9 | 202 | 19 | 21 | 400 | 11 | 61 | 10 | ||||||||||||||||||||||||||
53 | 12 | 182 | 8 | 3 | 150 | 2 | 61 | 13 | ||||||||||||||||||||||||||
49 | 62 | 79 | 60 | 51 | 76 | 59 | 60 | 51 | ||||||||||||||||||||||||||
269 | 349 | 894 | 391 | 43 | 362 | 42 | 277 | 386 | ||||||||||||||||||||||||||
126 | 86 | 232 | 44 | 62 | 188 | 56 | 214 | 162 | ||||||||||||||||||||||||||
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| |||||||||||||||||
46,898 | 17,018 | 126,151 | 10,526 | 5,253 | 105,240 | 3,581 | 50,742 | 15,991 | ||||||||||||||||||||||||||
— | — | — | 1 | 23 | — | — | — | — | ||||||||||||||||||||||||||
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— | — | — | 1 | 23 | — | — | — | — | ||||||||||||||||||||||||||
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46,898 | 17,018 | 126,151 | 10,525 | 5,230 | 105,240 | 3,581 | 50,742 | 15,991 | ||||||||||||||||||||||||||
183,892 | 35,857 | 479,019 | 37,077 | 18,120 | 495,623 | 6,105 | 269,087 | 55,434 | ||||||||||||||||||||||||||
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| |||||||||||||||||
687,346 | 100,225 | 3,359,804 | 19,373 | (12,976 | ) | 1,252,346 | 4,175 | (159,911 | ) | 1,326 | ||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
— | — | — | — | 242 | 677 | 23 | (38,790 | ) | (3,980 | ) | ||||||||||||||||||||||||
— | (72 | ) | — | — | — | — | (541 | ) | 14,487 | (6,955 | ) | |||||||||||||||||||||||
— | — | — | — | — | (2,209 | ) | (5 | ) | 16,367 | (44 | ) | |||||||||||||||||||||||
38 | (281 | ) | (2,288 | ) | 273 | (169 | ) | 85 | (76 | ) | (565 | ) | (2,076 | ) | ||||||||||||||||||||
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687,384 | 99,872 | 3,357,516 | 19,646 | (12,903 | ) | 1,250,899 | 3,576 | (168,412 | ) | (11,729 | ) | |||||||||||||||||||||||
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(1,602,181 | ) | (325,794 | ) | (4,115,868 | ) | (222,546 | ) | (54,286 | ) | (2,657,935 | ) | (34,350 | ) | (164,246 | ) | (82,168 | ) | |||||||||||||||||
— | — | (116,886 | ) | — | — | (230,161 | ) | — | — | — | ||||||||||||||||||||||||
— | — | — | — | 429 | 5,914 | 180 | 23,764 | 4,630 | ||||||||||||||||||||||||||
— | 351 | — | — | — | — | 207 | (16,813 | ) | 6,258 | |||||||||||||||||||||||||
— | — | — | — | — | 2,691 | 5 | (7,301 | ) | 1,530 | |||||||||||||||||||||||||
(41 | ) | (87 | ) | (237 | ) | (23 | ) | (10 | ) | (72 | ) | 1 | (246 | ) | (258 | ) | ||||||||||||||||||
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(1,602,222 | ) | (325,530 | ) | (4,232,991 | ) | (222,569 | ) | (53,867 | ) | (2,879,563 | ) | (33,957 | ) | (164,842 | ) | (70,008 | ) | |||||||||||||||||
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(914,838 | ) | (225,658 | ) | (875,475 | ) | (202,923 | ) | (66,770 | ) | (1,628,664 | ) | (30,381 | ) | (333,254 | ) | (81,737 | ) | |||||||||||||||||
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$ | (730,946 | ) | $ | (189,801 | ) | $ | (396,456 | ) | $ | (165,846 | ) | $ | (48,650 | ) | $ | (1,133,041 | ) | $ | (24,276 | ) | $ | (64,167 | ) | $ | (26,303 | ) | ||||||||
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American Funds Insurance Series 133
Table of Contents
Statements of operationsfor the year ended December 31, 2018
High- Income Bond Fund | Mortgage Fund | Ultra-Short Bond Fund | U.S. Government/ AAA-Rated Securities Fund | Managed Risk Growth Fund | ||||||||||||||||
Investment income: | ||||||||||||||||||||
Income (net ofnon-U.S. taxes*): | ||||||||||||||||||||
Dividends | $ | — | $ | — | $ | — | $ | — | $ | 3,341 | ||||||||||
Interest | 93,699 | 7,928 | 5,763 | 71,451 | 216 | |||||||||||||||
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93,699 | 7,928 | 5,763 | 71,451 | 3,557 | ||||||||||||||||
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| |||||||||||
Fees and expenses*: | ||||||||||||||||||||
Investment advisory services | 6,485 | 1,361 | 947 | 10,160 | 486 | |||||||||||||||
Distribution services | 1,953 | 191 | 643 | 3,706 | 803 | |||||||||||||||
Insurance administrative services | 86 | 42 | 37 | 171 | 809 | |||||||||||||||
Transfer agent services | — | † | — | † | — | † | — | † | — | † | ||||||||||
Administrative services | 137 | 32 | 30 | 300 | — | |||||||||||||||
Accounting and administrative services | — | — | — | — | 43 | |||||||||||||||
Reports to shareholders | 33 | 5 | 6 | 65 | 5 | |||||||||||||||
Registration statement and prospectus | 9 | 2 | 3 | 15 | 7 | |||||||||||||||
Trustees’ compensation | 8 | 2 | 2 | 18 | 2 | |||||||||||||||
Auditing and legal | 49 | 44 | 42 | 46 | 23 | |||||||||||||||
Custodian | 32 | 35 | 1 | 56 | 9 | |||||||||||||||
Other | 95 | 66 | 16 | 129 | 23 | |||||||||||||||
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| |||||||||||
Total fees and expenses before waivers | 8,887 | 1,780 | 1,727 | 14,666 | 2,210 | |||||||||||||||
Less waivers of fees and expenses: | ||||||||||||||||||||
Investment advisory services waivers | — | — | — | — | 162 | |||||||||||||||
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Total waivers of fees and expenses | — | — | — | — | 162 | |||||||||||||||
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Total fees and expenses after waivers | 8,887 | 1,780 | 1,727 | 14,666 | 2,048 | |||||||||||||||
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| |||||||||||
Net investment income | 84,812 | 6,148 | 4,036 | 56,785 | 1,509 | |||||||||||||||
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| |||||||||||
Net realized gain (loss) and unrealized (depreciation) appreciation: | ||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Unaffiliated issuers | (24,151 | ) | (3,538 | ) | — | (39,630 | ) | — | ||||||||||||
Affiliated issuers | — | — | — | — | 2,012 | |||||||||||||||
Futures contracts | 2 | (4,529 | ) | — | (45,333 | ) | (5,288 | ) | ||||||||||||
Swap contracts | (390 | ) | 449 | — | (1,752 | ) | — | |||||||||||||
Currency transactions | (5 | ) | — | — | — | 7 | ||||||||||||||
Capital gain distributions received from affiliated issuers | — | — | — | — | 24,732 | |||||||||||||||
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(24,544 | ) | (7,618 | ) | — | (86,715 | ) | 21,463 | |||||||||||||
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Net unrealized (depreciation) appreciation on: | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Unaffiliated issuers | (87,512 | ) | (1,970 | ) | 33 | (13,160 | ) | — | ||||||||||||
Affiliated issuers | — | — | — | — | (32,846 | ) | ||||||||||||||
Futures contracts | — | 2,531 | — | 34,895 | 5,929 | |||||||||||||||
Swap contracts | 1,317 | 1,980 | — | 27,782 | — | |||||||||||||||
Currency translations | (1 | ) | — | — | — | — | ||||||||||||||
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(86,196 | ) | 2,541 | 33 | 49,517 | (26,917 | ) | ||||||||||||||
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Net realized gain (loss) and unrealized (depreciation) appreciation | (110,740 | ) | (5,077 | ) | 33 | (37,198 | ) | (5,454 | ) | |||||||||||
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Net (decrease) increase in net assets resulting from operations | $ | (25,928 | ) | $ | 1,071 | $ | 4,069 | $ | 19,587 | $ | (3,945 | ) | ||||||||
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* | Additional information related tonon-U.S. taxes, class-specific fees and expenses and affiliated income is included in the notes to financial statements. |
† | Amount less than one thousand. |
See notes to financial statements
134 American Funds Insurance Series
Table of Contents
(dollars in thousands) | ||||||||||||||
Managed Risk International Fund | Managed Risk Blue Chip Income and Growth Fund | Managed Risk Growth- Income Fund | Managed Risk Asset Allocation Fund | |||||||||||
$ | 3,202 | $ | 7,264 | $ | 4,163 | $ | 80,686 | |||||||
112 | 246 | 195 | 2,846 | |||||||||||
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| |||||||
3,314 | 7,510 | 4,358 | 83,532 | |||||||||||
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| |||||||
234 | 530 | 439 | 6,609 | |||||||||||
389 | 883 | 564 | 6,862 | |||||||||||
389 | 883 | 731 | 11,015 | |||||||||||
— | † | — | † | — | † | — | † | |||||||
— | — | — | — | |||||||||||
40 | 43 | 42 | 114 | |||||||||||
3 | 6 | 4 | 73 | |||||||||||
5 | 7 | 5 | 70 | |||||||||||
1 | 2 | 1 | 26 | |||||||||||
23 | 23 | 33 | 28 | |||||||||||
9 | 9 | 9 | 9 | |||||||||||
(18 | ) | 25 | (9 | ) | (1,637 | ) | ||||||||
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1,075 | 2,411 | 1,819 | 23,169 | |||||||||||
78 | 177 | 146 | 2,203 | |||||||||||
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| |||||||
78 | 177 | 146 | 2,203 | |||||||||||
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| |||||||
997 | 2,234 | 1,673 | 20,966 | |||||||||||
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2,317 | 5,276 | 2,685 | 62,566 | |||||||||||
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| |||||||
— | — | — | — | |||||||||||
170 | 4,208 | (2,379 | ) | (39,223 | ) | |||||||||
(301 | ) | (7,698 | ) | (3,064 | ) | (49,333 | ) | |||||||
— | — | — | — | |||||||||||
(4 | ) | 7 | — | † | 62 | |||||||||
5,857 | 21,501 | 12,396 | 185,909 | |||||||||||
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| |||||||
5,722 | 18,018 | 6,953 | 97,415 | |||||||||||
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| |||||||
— | — | 1,011 | — | |||||||||||
(26,570 | ) | (55,129 | ) | (32,512 | ) | (392,470 | ) | |||||||
1,238 | 5,830 | 10,335 | 25,915 | |||||||||||
— | — | — | — | |||||||||||
— | — | — | — | |||||||||||
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| |||||||
(25,332 | ) | (49,299 | ) | (21,166 | ) | (366,555 | ) | |||||||
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| |||||||
(19,610 | ) | (31,281 | ) | (14,213 | ) | (269,140 | ) | |||||||
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| |||||||
$ | (17,293 | ) | $ | (26,005 | ) | $ | (11,528 | ) | $ | (206,574 | ) | |||
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American Funds Insurance Series 135
Table of Contents
Statements of changes in net assets
Global Growth Fund | Global Small Capitalization Fund | Growth Fund | ||||||||||||||||||||||
Year ended December 31 | Year ended December 31 | Year ended December 31 | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 50,276 | $ | 44,912 | $ | 10,787 | $ | 15,312 | $ | 162,005 | $ | 136,774 | ||||||||||||
Net realized gain (loss) | 343,542 | 433,191 | 247,061 | 207,903 | 2,848,894 | 2,561,073 | ||||||||||||||||||
Net unrealized (depreciation) appreciation | (919,676 | ) | 1,102,516 | (673,158 | ) | 731,086 | (2,971,090 | ) | 3,159,797 | |||||||||||||||
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| |||||||||||||
Net (decrease) increase in net assets resulting from operations | (525,858 | ) | 1,580,619 | (415,310 | ) | 954,301 | 39,809 | 5,857,644 | ||||||||||||||||
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Distributions paid to shareholders* | (474,814 | ) | (196,135 | ) | (2,648,515 | ) | ||||||||||||||||||
Dividends from net investment income | (42,742 | ) | (21,019 | ) | (136,164 | ) | ||||||||||||||||||
Distributions from net realized gain on investments | (174,096 | ) | — | (2,251,429 | ) | |||||||||||||||||||
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Total dividends and distributions paid to shareholders | (216,838 | ) | (21,019 | ) | (2,387,593 | ) | ||||||||||||||||||
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Net capital share transactions | 267,749 | (335,425 | ) | (49,079 | ) | (495,098 | ) | 1,071,109 | (34,343 | ) | ||||||||||||||
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| |||||||||||||
Total (decrease) increase in net assets | (732,923 | ) | 1,028,356 | (660,524 | ) | 438,184 | (1,537,597 | ) | 3,435,708 | |||||||||||||||
Net assets: | ||||||||||||||||||||||||
Beginning of year | 6,235,076 | 5,206,720 | 4,315,038 | 3,876,854 | 24,985,458 | 21,549,750 | ||||||||||||||||||
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End of year | $ | 5,502,153 | $ | 6,235,076 | $ | 3,654,514 | $ | 4,315,038 | $ | 23,447,861 | $ | 24,985,458 | ||||||||||||
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International Growth | ||||||||||||||||||||||||
and Income Fund | Capital Income Builder | Asset Allocation Fund | ||||||||||||||||||||||
Year ended December 31 | Year ended December 31 | Year ended December 31 | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 37,077 | $ | 35,259 | $ | 18,120 | $ | 14,607 | $ | 495,623 | $ | 419,292 | ||||||||||||
Net realized gain (loss) | 19,646 | 5,636 | (12,903 | ) | 8,964 | 1,250,899 | 1,243,464 | |||||||||||||||||
Net unrealized (depreciation) appreciation | (222,569 | ) | 242,768 | (53,867 | ) | 35,709 | (2,879,563 | ) | 1,880,231 | |||||||||||||||
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Net (decrease) increase in net assets resulting from operations | (165,846 | ) | 283,663 | (48,650 | ) | 59,280 | (1,133,041 | ) | 3,542,987 | |||||||||||||||
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Distributions paid to shareholders* | (35,982 | ) | (20,515 | ) | (1,587,775 | ) | ||||||||||||||||||
Dividends from net investment income | (32,772 | ) | (14,010 | ) | (405,124 | ) | ||||||||||||||||||
Distributions from net realized gain on investments | — | — | (1,069,604 | ) | ||||||||||||||||||||
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Total dividends and distributions paid to shareholders | (32,772 | ) | (14,010 | ) | (1,474,728 | ) | ||||||||||||||||||
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| |||||||||||||||||||
Net capital share transactions | 77,119 | 109,624 | 149,988 | 137,152 | (13,827 | ) | 2,543,934 | |||||||||||||||||
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| |||||||||||||
Total (decrease) increase in net assets | (124,709 | ) | 360,515 | 80,823 | 182,422 | (2,734,643 | ) | 4,612,193 | ||||||||||||||||
Net assets: | ||||||||||||||||||||||||
Beginning of year | 1,461,967 | 1,101,452 | 594,457 | 412,035 | 25,660,094 | 21,047,901 | ||||||||||||||||||
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End of year | $ | 1,337,258 | $ | 1,461,967 | $ | 675,280 | $ | 594,457 | $ | 22,925,451 | $ | 25,660,094 | ||||||||||||
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See end of statements of changes in net assets for footnote.
See notes to financial statements
136 American Funds Insurance Series
Table of Contents
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
International Fund | New World Fund | Blue Chip Income and Growth Fund | Global Growth and Income Fund | Growth-Income Fund | ||||||||||||||||||||||||||||||||||
Year ended December 31 | Year ended December 31 | Year ended December 31 | Year ended December 31 | Year ended December 31 | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||
$ | 147,886 | $ | 105,868 | $ | 32,835 | $ | 32,918 | $ | 183,892 | $ | 195,270 | $ | 35,857 | $ | 44,369 | $ | 479,019 | $ | 445,666 | |||||||||||||||||||
247,240 | 438,684 | 126,203 | 236,990 | 687,384 | 686,720 | 99,872 | 151,286 | 3,357,516 | 2,102,617 | |||||||||||||||||||||||||||||
(1,741,754) | 1,850,536 | (647,033 | ) | 567,588 | (1,602,222 | ) | 550,461 | (325,530 | ) | 281,638 | (4,232,991 | ) | 3,222,646 | |||||||||||||||||||||||||
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(1,346,628) | 2,395,088 | (487,995 | ) | 837,496 | (730,946 | ) | 1,432,451 | (189,801 | ) | 477,293 | (396,456 | ) | 5,770,929 | |||||||||||||||||||||||||
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(646,470) | (126,412 | ) | (883,615 | ) | (186,991 | ) | (2,606,909 | ) | ||||||||||||||||||||||||||||||
(124,236 | ) | (34,131 | ) | (188,626 | ) | (42,795 | ) | (435,451 | ) | |||||||||||||||||||||||||||||
(100,924 | ) | — | (328,660 | ) | (33,692 | ) | (1,807,557 | ) | ||||||||||||||||||||||||||||||
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(225,160 | ) | (34,131 | ) | (517,286 | ) | (76,487 | ) | (2,243,008 | ) | |||||||||||||||||||||||||||||
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1,245,386 | 133,019 | 92,573 | (164,517 | ) | 265,984 | (178,554 | ) | 90,220 | (289,969 | ) | 2,175,138 | 1,071,251 | ||||||||||||||||||||||||||
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(747,712) | 2,302,947 | (521,834 | ) | 638,848 | (1,348,577 | ) | 736,611 | (286,572 | ) | 110,837 | (828,227 | ) | 4,599,172 | |||||||||||||||||||||||||
9,757,822 | 7,454,875 | 3,532,713 | 2,893,865 | 9,379,849 | 8,643,238 | 2,102,446 | 1,991,609 | 30,692,362 | 26,093,190 | |||||||||||||||||||||||||||||
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$ | 9,010,110 | $ | 9,757,822 | $ | 3,010,879 | $ | 3,532,713 | $ | 8,031,272 | $ | 9,379,849 | $ | 1,815,874 | $ | 2,102,446 | $ | 29,864,135 | $ | 30,692,362 | |||||||||||||||||||
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Global Balanced Fund | Bond Fund | Global Bond Fund | High-Income Bond Fund | Mortgage Fund | ||||||||||||||||||||||||||||||||||
Year ended December 31 | Year ended December 31 | Year ended December 31 | Year ended December 31 | Year ended December 31 | ||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||
$ | 6,105 | $ | 4,343 | $ | 269,087 | $ | 226,928 | $ | 55,434 | $ | 53,646 | $ | 84,812 | $ | 96,458 | $ | 6,148 | $ | 5,003 | |||||||||||||||||||
3,576 | 9,276 | (168,412 | ) | (10,510 | ) | (11,729 | ) | (26,825 | ) | (24,544 | ) | 24,442 | (7,618 | ) | 408 | |||||||||||||||||||||||
(33,957) | 38,239 | (164,842 | ) | 193,041 | (70,008 | ) | 132,187 | (86,196 | ) | (3,823 | ) | 2,541 | (431 | ) | ||||||||||||||||||||||||
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(24,276) | 51,858 | (64,167 | ) | 409,459 | (26,303 | ) | 159,008 | (25,928 | ) | 117,077 | 1,071 | 4,980 | ||||||||||||||||||||||||||
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(9,700) | (267,421 | ) | (56,130 | ) | (79,933 | ) | (6,505 | ) | ||||||||||||||||||||||||||||||
(3,252 | ) | (220,546 | ) | (11,164 | ) | (98,414 | ) | (5,571 | ) | |||||||||||||||||||||||||||||
(10,070 | ) | (157,395 | ) | (14,449 | ) | — | (2,214 | ) | ||||||||||||||||||||||||||||||
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(13,322 | ) | (377,941 | ) | (25,613 | ) | (98,414 | ) | (7,785 | ) | |||||||||||||||||||||||||||||
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46,266 | 63,483 | (511,419 | ) | (223,341 | ) | (297,128 | ) | 85,999 | (144,120 | ) | (346,424 | ) | (43,561 | ) | 2,570 | |||||||||||||||||||||||
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12,290 | 102,019 | (843,007 | ) | (191,823 | ) | (379,561 | ) | 219,394 | (249,981 | ) | (327,761 | ) | (48,995 | ) | (235 | ) | ||||||||||||||||||||||
353,899 | 251,880 | 10,697,694 | 10,889,517 | 2,467,578 | 2,248,184 | 1,453,880 | 1,781,641 | 340,170 | 340,405 | |||||||||||||||||||||||||||||
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$ | 366,189 | $ | 353,899 | $ | 9,854,687 | $ | 10,697,694 | $ | 2,088,017 | $ | 2,467,578 | $ | 1,203,899 | $ | 1,453,880 | $ | 291,175 | $ | 340,170 | |||||||||||||||||||
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American Funds Insurance Series 137
Table of Contents
Statements of changes in net assets
Ultra-Short Bond Fund | U.S. Government/ AAA-Rated Securities Fund | Managed Risk Growth Fund | ||||||||||||||||||||||
Year ended December 31 | Year ended December 31 | Year ended December 31 | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 4,036 | $ | 1,388 | $ | 56,785 | $ | 46,503 | $ | 1,509 | $ | 859 | ||||||||||||
Net realized gain (loss) | — | 9 | (86,715 | ) | 11,669 | 21,463 | 19,268 | |||||||||||||||||
Net unrealized (depreciation) appreciation | 33 | (64 | ) | 49,517 | (6,874 | ) | (26,917 | ) | 35,360 | |||||||||||||||
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| |||||||||||||
Net (decrease) increase in net assets resulting from operations | 4,069 | 1,333 | 19,587 | 51,298 | (3,945 | ) | 55,487 | |||||||||||||||||
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Distributions paid to shareholders* | (3,517 | ) | (55,819 | ) | (21,941 | ) | ||||||||||||||||||
Dividends from net investment income | (906 | ) | (43,993 | ) | (734 | ) | ||||||||||||||||||
Distributions from net realized gain on investments | — | — | (4,142 | ) | ||||||||||||||||||||
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| |||||||||||||||||||
Total dividends and distributions paid to shareholders | (906 | ) | (43,993 | ) | (4,876 | ) | ||||||||||||||||||
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| |||||||||||||||||||
Net capital share transactions | 1,047 | (46,638 | ) | (197,780 | ) | 58,286 | 81,200 | 36,220 | ||||||||||||||||
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|
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| |||||||||||||
Total (decrease) increase in net assets | 1,599 | (46,211 | ) | (234,012 | ) | 65,591 | 55,314 | 86,831 | ||||||||||||||||
Net assets: | ||||||||||||||||||||||||
Beginning of year | 304,805 | 351,016 | 3,103,315 | 3,037,724 | 287,959 | 201,128 | ||||||||||||||||||
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End of year | $ | 306,404 | $ | 304,805 | $ | 2,869,303 | $ | 3,103,315 | $ | 343,273 | $ | 287,959 | ||||||||||||
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* | Current year amounts reflect current presentation under new accounting standards. |
See notes to financial statements
138 American Funds Insurance Series
Table of Contents
(dollars in thousands) | ||||||||||||||||||||||||||||||
Managed Risk International Fund | Managed Risk Blue Chip Income and Growth Fund | Managed Risk Growth-Income Fund | Managed Risk Asset Allocation Fund | |||||||||||||||||||||||||||
Year ended December 31 | Year ended December 31 | Year ended December 31 | Year ended December 31 | |||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||
$ | 2,317 | $ | 1,283 | $ | 5,276 | $ | 5,049 | $ | 2,685 | $ | 2,028 | $ | 62,566 | $ | 50,782 | |||||||||||||||
5,722 | 248 | 18,018 | 12,835 | 6,953 | 8,283 | 97,415 | 177,329 | |||||||||||||||||||||||
(25,332 | ) | 28,741 | (49,299 | ) | 30,876 | (21,166 | ) | 24,060 | (366,555 | ) | 329,033 | |||||||||||||||||||
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(17,293 | ) | 30,272 | (26,005 | ) | 48,760 | (11,528 | ) | 34,371 | (206,574 | ) | 557,144 | |||||||||||||||||||
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(3,428 | ) | (23,525 | ) | (12,352 | ) | (242,968 | ) | |||||||||||||||||||||||
(900 | ) | (5,161 | ) | (1,867 | ) | (31,722 | ) | |||||||||||||||||||||||
(1,403 | ) | (5,568 | ) | (7,726 | ) | (38,742 | ) | |||||||||||||||||||||||
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(2,303 | ) | (10,729 | ) | (9,593 | ) | (70,464 | ) | |||||||||||||||||||||||
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23,257 | 22,849 | 19,295 | 37,657 | 1,707,014 | 23,434 | (1,462,371 | ) | 408,750 | ||||||||||||||||||||||
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| |||||||||||||||
2,536 | 50,818 | (30,235 | ) | 75,688 | 1,683,134 | 48,212 | (1,911,913 | ) | 895,430 | |||||||||||||||||||||
148,423 | 97,605 | 366,904 | 291,216 | 208,968 | 160,756 | 4,454,410 | 3,558,980 | |||||||||||||||||||||||
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$ | 150,959 | $ | 148,423 | $ | 336,669 | $ | 366,904 | $ | 1,892,102 | $ | 208,968 | $ | 2,542,497 | $ | 4,454,410 | |||||||||||||||
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American Funds Insurance Series 139
Table of Contents
Notes to financial statements
1. Organization
American Funds Insurance Series (the “series”) is registered under the Investment Company Act of 1940 as anopen-end, diversified management investment company with 28 different funds (the “funds”). Twenty-three funds in the series are covered in this report. The other five funds in the series, American Funds Insurance Series - Portfolio Series, are covered in a separate report. The assets of each fund are segregated, with each fund accounted for separately. Capital Research and Management Company (“CRMC”) is the series’ investment adviser. Milliman Financial Risk Management LLC (“Milliman FRM”) is the subadviser for the risk management strategy for eight of the funds (the “managed risk funds”), five of which are covered in this report.
The managed risk funds covered in this report are Managed Risk Growth Fund, Managed Risk International Fund, Managed Risk Blue Chip Income and Growth Fund, Managed Risk Growth-Income Fund and Managed Risk Asset Allocation Fund. The managed risk funds invest in other funds within the series (the “underlying funds”) and employ Milliman FRM to implement the risk management strategy, which consists of using hedging instruments — primarily short positions on exchange-traded futures contracts — to attempt to stabilize the volatility of the funds around target volatility levels and reduce the downside exposure of the funds during periods of significant market declines.
In 2009, shareholders approved the reorganization of the series from a Massachusetts business trust to a Delaware statutory trust. The series reserved the right to delay implementing the reorganization and has elected to do so.
The investment objectives for each fund covered in this report are as follows:
Global Growth Fund — Seeks to provide long-term growth of capital.
Global Small Capitalization Fund — Seeks to provide long-term growth of capital.
Growth Fund — Seeks to provide growth of capital.
International Fund — Seeks to provide long-term growth of capital.
New World Fund — Seeks long-term capital appreciation.
Blue Chip Income and Growth Fund — Seeks to produce income exceeding the average yield on U.S. stocks generally and to provide an opportunity for growth of principal consistent with sound common stock investing.
Global Growth and Income Fund — Seeks to provide long-term growth of capital while providing current income.
Growth-Income Fund — Seeks to achieve long-term growth of capital and income.
International Growth and Income Fund — Seeks to provide long-term growth of capital while providing current income.
Capital Income Builder — Seeks to provide a level of current income that exceeds the average yield on U.S. stocks generally and to provide a growing stream of income over the years. Secondarily, seeks to provide growth of capital.
Asset Allocation Fund— Seeks to provide high total return consistent with preservation of capital over the long term.
Global Balanced Fund — Seeks the balanced accomplishment of three objectives: long-term growth of capital, conservation of principal and current income.
Bond Fund — Seeks to provide as high a level of current income as is consistent with the preservation of capital.
Global Bond Fund — Seeks to provide, over the long term, a high level of total return consistent with prudent investment management.
High-Income Bond Fund — Seeks to provide a high level of current income and, secondarily, capital appreciation.
Mortgage Fund — Seeks to provide current income and preservation of capital.
140 American Funds Insurance Series
Table of Contents
Ultra-Short Bond Fund — Seeks to provide current income, consistent with the maturity and quality standards applicable to the fund, and preservation of capital and liquidity.
U.S.Government/AAA-Rated Securities Fund — Seeks to provide a high level of current income consistent with preservation of capital.
Managed Risk Growth Fund — Seeks to provide growth of capital while seeking to manage volatility and provide downside protection.
Managed Risk International Fund — Seeks to provide long-term growth of capital while seeking to manage volatility and provide downside protection.
Managed Risk Blue Chip Income and Growth Fund — Seeks to produce income exceeding the average yield on U.S. stocks generally and to provide an opportunity for growth of principal consistent with sound common stock investing, in each case while seeking to manage volatility and provide downside protection.
Managed Risk Growth-Income Fund — Seeks to achieve long-term growth of capital and income while seeking to manage volatility and provide downside protection.
Managed Risk Asset Allocation Fund — Seeks to provide high total return consistent with preservation of capital over the long term while seeking to manage volatility and provide downside protection.
Each fund in the series, except the managed risk funds, offers either four or five share classes (Classes 1, 1A, 2, 3 or 4); the managed risk funds offer two share classes (Classes P1 and P2). Holders of all share classes of each fund have equal pro rata rights to assets, dividends and liquidation proceeds of each fund held. Each share class of each fund has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses (“class-specific fees and expenses”), primarily due to different arrangements for certain distribution expenses. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of differentper-share dividends by each class of each fund.
2. Significant accounting policies
Each fund is an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. Each fund’s financial statements have been prepared to comply with U.S. generally accepted accounting principles (“U.S. GAAP”). These principles require the series’ investment adviser to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Subsequent events, if any, have been evaluated through the date of issuance in the preparation of the financial statements. The funds follow the significant accounting policies described in this section, as well as the valuation policies described in the next section on valuation.
Security transactions and related investment income — Security transactions are recorded by the funds as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. In the event a security is purchased with a delayed payment date, the funds will segregate liquid assets sufficient to meet their payment obligations. Dividend income is recognized on theex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.
Fees and expenses — The fees and expenses of the underlying funds held by the managed risk funds are not included in the fees and expenses reported for each of the managed risk funds; however, they are indirectly reflected in the valuation of each of the underlying funds. These fees are included in the net effective expense ratios that are provided as additional information in the financial highlights tables.
Class allocations — Income, fees and expenses (other than class-specific fees and expenses) and realized and unrealized gains and losses are allocated daily among the various share classes of each fund based on their relative net assets. Class-specific fees and expenses, such as distribution expenses, are accrued daily and charged directly to the respective share class of each fund.
Distributions paid to shareholders — Income dividends and capital gain distributions are recorded on each fund’sex-dividend date.
American Funds Insurance Series 141
Table of Contents
Currency translation — Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates supplied by one or more pricing vendors on the valuation date. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions. The effects of changes in exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments in the funds’ statements of operations. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in currencies other than U.S. dollars are disclosed separately.
3. Valuation
CRMC, the series’ investment adviser, values the funds’ investments at fair value as defined by U.S. GAAP. The net asset value of each share class of each fund is generally determined as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.
Methods and inputs — The series’ investment adviser uses the following methods and inputs to establish the fair value of each fund’s assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.
Equity securities are generally valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market on which the security trades. The value of an underlying fund is based on its reported net asset value.
Fixed-income securities, including short-term securities, are generally valued at prices obtained from one or more pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the funds are authorized to invest. However, these classifications are not exclusive and any of the inputs may be used to value any other class of fixed-income security.
Fixed-income class | Examples of standard inputs | |
All | Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”) | |
Corporate bonds & notes; convertible securities | Standard inputs and underlying equity of the issuer | |
Bonds & notes of governments & government agencies | Standard inputs and interest rate volatilities | |
Mortgage-backed; asset-backed obligations | Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information | |
Municipal securities | Standard inputs and, for certain distressed securities, cash flows or liquidation values using a net present value calculation based on inputs that include, but are not limited to, financial statements and debt contracts |
When the series’ investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be representative), fixed-income securities will be valued in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask prices are not available) or at prices for securities of comparable maturity, quality and type.
142 American Funds Insurance Series
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Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described for either equity or fixed-income securities, depending on which method is deemed most appropriate by the series’ investment adviser. The Government Cash Management Fund held by the managed risk funds is managed to maintain a $1.00 net asset value per share. The net asset value of each share class of each managed risk fund is calculated based on the reported net asset values of the underlying funds in which each fund invests.
Exchange-traded options and futures are generally valued at the official closing price for options and official settlement price for futures of the exchange or market on which such instruments are traded, as of the close of business on the day such instruments are being valued. Forward currency contracts are valued at the mean of representative quoted bid and ask prices, generally based on prices supplied by one or more pricing vendors. Interest rate swaps and credit default swaps are generally valued by pricing vendors based on market inputs that include the index and term of index, reset frequency, payer/receiver, currency and pay frequency.
Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the series’ investment adviser are fair valued as determined in good faith under fair value guidelines adopted by authority of the series’ board of trustees as further described. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. In addition, the closing prices of equity securities and futures that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of each fund is determined. Fair valuations and valuations of investments and futures that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.
Processes and structure — The series’ board of trustees has delegated authority to the series’ investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees. The series’ board and audit committee also regularly review reports that describe fair value determinations and methods.
The series’ investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.
Classifications— The series’ investment adviser classifies the funds’ assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities.
American Funds Insurance Series 143
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The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following tables present the funds’ valuation levels as of December 31, 2018 (dollars in thousands):
Global Growth Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 943,486 | $ | 395,499 | $ | — | $ | 1,338,985 | ||||||||
Consumer discretionary | 902,718 | 87,222 | — | 989,940 | ||||||||||||
Health care | 582,877 | 105,680 | — | 688,557 | ||||||||||||
Communication services | 437,926 | 143,665 | — | 581,591 | ||||||||||||
Financials | 518,235 | 53,532 | — | 571,767 | ||||||||||||
Consumer staples | 294,556 | 86,992 | — | 381,548 | ||||||||||||
Industrials | 209,141 | 129,438 | — | 338,579 | ||||||||||||
Materials | 114,502 | 40,841 | — | 155,343 | ||||||||||||
Energy | 146,233 | — | — | 146,233 | ||||||||||||
Short-term securities | — | 294,373 | — | 294,373 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 4,149,674 | $ | 1,337,242 | $ | — | $ | 5,486,916 | ||||||||
|
|
|
|
|
|
|
|
Global Small Capitalization Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Health care | $ | 727,659 | $ | 48,979 | $ | — | $ | 776,638 | ||||||||
Information technology | 452,675 | 117,663 | — | 570,338 | ||||||||||||
Industrials | 267,672 | 261,949 | — | 529,621 | ||||||||||||
Consumer discretionary | 404,803 | 84,793 | — | 489,596 | ||||||||||||
Financials | 277,316 | 39,228 | 87 | 316,631 | ||||||||||||
Materials | 113,426 | 29,243 | — | 142,669 | ||||||||||||
Consumer staples | 64,850 | 56,057 | — | 120,907 | ||||||||||||
Communication services | 71,742 | 20,881 | — | 92,623 | ||||||||||||
Energy | 45,304 | 15,906 | 16,560 | 77,770 | ||||||||||||
Real estate | 35,861 | 37,865 | — | 73,726 | ||||||||||||
Utilities | 60,785 | — | — | 60,785 | ||||||||||||
Bonds, notes & other debt instruments | — | 4,989 | — | 4,989 | ||||||||||||
Short-term securities | 54,436 | 393,166 | — | 447,602 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 2,576,529 | $ | 1,110,719 | $ | 16,647 | $ | 3,703,895 | ||||||||
|
|
|
|
|
|
|
|
Growth Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 4,465,985 | $ | 524,865 | $ | — | $ | 4,990,850 | ||||||||
Health care | 3,895,983 | — | 37,000 | 3,932,983 | ||||||||||||
Communication services | 3,172,527 | — | — | 3,172,527 | ||||||||||||
Consumer discretionary | 3,047,437 | 25,309 | — | 3,072,746 | ||||||||||||
Financials | 2,280,002 | — | — | 2,280,002 | ||||||||||||
Industrials | 1,068,310 | 136,234 | — | 1,204,544 | ||||||||||||
Energy | 1,181,935 | — | — | 1,181,935 | ||||||||||||
Materials | 545,792 | 83,260 | — | 629,052 | ||||||||||||
Consumer staples | 519,278 | — | — | 519,278 | ||||||||||||
Real estate | 371,749 | — | — | 371,749 | ||||||||||||
Utilities | 94,291 | — | — | 94,291 | ||||||||||||
Convertible stocks | — | — | 13,104 | 13,104 | ||||||||||||
Short-term securities | — | 1,944,415 | — | 1,944,415 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 20,643,289 | $ | 2,714,083 | $ | 50,104 | $ | 23,407,476 | ||||||||
|
|
|
|
|
|
|
|
144 American Funds Insurance Series
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International Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Financials | $ | 1,182,886 | $ | 188,734 | $ | — | $ | 1,371,620 | ||||||||
Industrials | 801,285 | 454,063 | — | 1,255,348 | ||||||||||||
Health care | 460,295 | 639,881 | — | 1,100,176 | ||||||||||||
Consumer discretionary | 702,613 | 220,555 | — | 923,168 | ||||||||||||
Consumer staples | 375,070 | 226,350 | — | 601,420 | ||||||||||||
Communication services | 369,938 | 217,235 | — | 587,173 | ||||||||||||
Information technology | 184,960 | 324,234 | — | 509,194 | ||||||||||||
Materials | 343,320 | 165,561 | — | 508,881 | ||||||||||||
Utilities | 376,043 | 102,071 | — | 478,114 | ||||||||||||
Energy | 395,858 | 16,445 | — | 412,303 | ||||||||||||
Real estate | 136,191 | 45,046 | — | 181,237 | ||||||||||||
Rights & warrants | — | 13,046 | — | 13,046 | ||||||||||||
Bonds, notes & other debt instruments | — | 77,908 | — | 77,908 | ||||||||||||
Short-term securities | — | 976,853 | — | 976,853 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 5,328,459 | $ | 3,667,982 | $ | — | $ | 8,996,441 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | $ | — | $ | (525 | ) | $ | — | $ | (525 | ) | ||||||
|
|
|
|
|
|
|
|
* | Forward currency contracts are not included in the investment portfolio. |
New World Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 326,284 | $ | 178,731 | $ | — | $ | 505,015 | ||||||||
Financials | 305,640 | 23,740 | — | 329,380 | ||||||||||||
Energy | 292,889 | — | — | 292,889 | ||||||||||||
Consumer discretionary | 218,235 | 64,658 | — | 282,893 | ||||||||||||
Health care | 175,401 | 75,887 | — | 251,288 | ||||||||||||
Consumer staples | 119,696 | 70,170 | — | 189,866 | ||||||||||||
Communication services | 167,031 | 5,804 | — | 172,835 | ||||||||||||
Materials | 154,547 | 13,916 | — | 168,463 | ||||||||||||
Industrials | 94,592 | 40,700 | — | 135,292 | ||||||||||||
Real estate | 31,058 | 9,324 | 26 | 40,408 | ||||||||||||
Utilities | 32,453 | — | — | 32,453 | ||||||||||||
Rights & warrants | — | 3,502 | — | 3,502 | ||||||||||||
Bonds, notes & other debt instruments | — | 92,867 | — | 92,867 | ||||||||||||
Short-term securities | — | 502,317 | — | 502,317 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1,917,826 | $ | 1,081,616 | $ | 26 | $ | 2,999,468 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on open forward currency contracts | $ | — | $ | 356 | $ | — | $ | 356 | ||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | — | (53 | ) | — | (53 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | 303 | $ | — | $ | 303 | ||||||||
|
|
|
|
|
|
|
|
* | Forward currency contracts are not included in the investment portfolio. |
American Funds Insurance Series 145
Table of Contents
Blue Chip Income and Growth Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Health care | $ | 2,027,452 | $ | — | $ | — | $ | 2,027,452 | ||||||||
Information technology | 1,080,516 | — | — | 1,080,516 | ||||||||||||
Consumer staples | 1,017,733 | — | — | 1,017,733 | ||||||||||||
Energy | 758,203 | — | — | 758,203 | ||||||||||||
Communication services | 731,501 | — | — | 731,501 | ||||||||||||
Industrials | 687,517 | — | — | 687,517 | ||||||||||||
Consumer discretionary | 650,987 | — | — | 650,987 | ||||||||||||
Financials | 392,403 | — | — | 392,403 | ||||||||||||
Materials | 134,904 | — | — | 134,904 | ||||||||||||
Other | 143,876 | — | — | 143,876 | ||||||||||||
Rights & warrants | 3,520 | — | — | 3,520 | ||||||||||||
Short-term securities | — | 389,421 | — | 389,421 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 7,628,612 | $ | 389,421 | $ | — | $ | 8,018,033 | ||||||||
|
|
|
|
|
|
|
|
Global Growth and Income Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 182,049 | $ | 100,080 | $ | — | $ | 282,129 | ||||||||
Health care | 185,566 | 15,542 | — | 201,108 | ||||||||||||
Financials | 175,070 | 11,049 | — | 186,119 | ||||||||||||
Communication services | 83,225 | 100,714 | — | 183,939 | ||||||||||||
Industrials | 162,543 | 16,976 | — | 179,519 | ||||||||||||
Consumer discretionary | 138,158 | 35,185 | — | 173,343 | ||||||||||||
Materials | 104,115 | 14,434 | — | 118,549 | ||||||||||||
Energy | 109,679 | — | — | 109,679 | ||||||||||||
Consumer staples | 61,667 | 39,668 | — | 101,335 | ||||||||||||
Real estate | 54,128 | 12,956 | — | 67,084 | ||||||||||||
Utilities | 13,861 | 48,868 | — | 62,729 | ||||||||||||
Bonds, notes & other debt instruments | — | 39,384 | — | 39,384 | ||||||||||||
Short-term securities | — | 107,014 | — | 107,014 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1,270,061 | $ | 541,870 | $ | — | $ | 1,811,931 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on open forward currency contracts | $ | — | $ | 351 | $ | — | $ | 351 | ||||||||
|
|
|
|
|
|
|
|
* | Forward currency contracts are not included in the investment portfolio. |
146 American Funds Insurance Series
Table of Contents
Growth-Income Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Health care | $ | 4,572,074 | $ | 180,915 | $ | — | $ | 4,752,989 | ||||||||
Information technology | 4,016,946 | 101,331 | — | 4,118,277 | ||||||||||||
Financials | 3,123,284 | 164,961 | — | 3,288,245 | ||||||||||||
Communication services | 3,068,997 | — | — | 3,068,997 | ||||||||||||
Industrials | 2,744,773 | — | — | 2,744,773 | ||||||||||||
Consumer staples | 2,202,506 | 457,337 | — | 2,659,843 | ||||||||||||
Energy | 2,041,753 | — | — | 2,041,753 | ||||||||||||
Consumer discretionary | 1,778,690 | 116,360 | — | 1,895,050 | ||||||||||||
Materials | 1,394,285 | 6,362 | — | 1,400,647 | ||||||||||||
Real estate | 535,725 | — | — | 535,725 | ||||||||||||
Utilities | 447,523 | 55,293 | — | 502,816 | ||||||||||||
Mutual funds | 45,729 | — | — | 45,729 | ||||||||||||
Convertible stocks | 38,828 | — | — | 38,828 | ||||||||||||
Convertible bonds | — | 27,617 | — | 27,617 | ||||||||||||
Short-term securities | — | 2,719,713 | — | 2,719,713 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 26,011,113 | $ | 3,829,889 | $ | — | $ | 29,841,002 | ||||||||
|
|
|
|
|
|
|
|
International Growth and Income Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Financials | $ | 141,167 | $ | 108,491 | $ | — | $ | 249,658 | ||||||||
Health care | 77,210 | 101,164 | — | 178,374 | ||||||||||||
Industrials | 56,914 | 56,589 | — | 113,503 | ||||||||||||
Energy | 94,813 | — | — | 94,813 | ||||||||||||
Materials | 81,185 | 13,223 | — | 94,408 | ||||||||||||
Real estate | 81,116 | 13,077 | — | 94,193 | ||||||||||||
Consumer staples | 87,620 | 6,560 | — | 94,180 | ||||||||||||
Communication services | 49,598 | 34,855 | — | 84,453 | ||||||||||||
Utilities | 45,795 | 35,476 | — | 81,271 | ||||||||||||
Consumer discretionary | 54,630 | 5,371 | — | 60,001 | ||||||||||||
Information technology | 11,493 | 36,087 | — | 47,580 | ||||||||||||
Bonds, notes & other debt instruments | — | 15,271 | — | 15,271 | ||||||||||||
Short-term securities | — | 125,741 | — | 125,741 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 781,541 | $ | 551,905 | $ | — | $ | 1,333,446 | ||||||||
|
|
|
|
|
|
|
|
American Funds Insurance Series 147
Table of Contents
Capital Income Builder
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Financials | $ | 43,071 | $ | 25,510 | $ | — | $ | 68,581 | ||||||||
Consumer staples | 52,008 | 10,413 | — | 62,421 | ||||||||||||
Information technology | 44,754 | 15,593 | — | 60,347 | ||||||||||||
Real estate | 51,257 | 1,451 | — | 52,708 | ||||||||||||
Energy | 44,723 | — | — | 44,723 | ||||||||||||
Communication services | 32,340 | 8,343 | — | 40,683 | ||||||||||||
Health care | 36,507 | 1,889 | — | 38,396 | ||||||||||||
Utilities | 29,843 | 7,422 | — | 37,265 | ||||||||||||
Consumer discretionary | 23,778 | — | — | 23,778 | ||||||||||||
Industrials | 19,005 | 2,067 | — | 21,072 | ||||||||||||
Materials | 5,407 | 4,139 | — | 9,546 | ||||||||||||
Convertible stocks | 6,127 | — | — | 6,127 | ||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
U.S. Treasury bonds & notes | — | 93,463 | — | 93,463 | ||||||||||||
Mortgage-backed obligations | — | 46,958 | — | 46,958 | ||||||||||||
Corporate bonds & notes | — | 26,817 | — | 26,817 | ||||||||||||
Asset-backed obligations | — | 967 | — | 967 | ||||||||||||
Short-term securities | — | 45,896 | — | 45,896 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 388,820 | $ | 290,928 | $ | — | $ | 679,748 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 2,467 | $ | — | $ | — | $ | 2,467 | ||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (2,038 | ) | — | — | (2,038 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 429 | $ | — | $ | — | $ | 429 | ||||||||
|
|
|
|
|
|
|
|
* | Futures contracts are not included in the investment portfolio. |
148 American Funds Insurance Series
Table of Contents
Asset Allocation Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 3,092,137 | $ | 35,434 | $ | 59 | $ | 3,127,630 | ||||||||
Health care | 2,518,947 | 26,969 | 736 | 2,546,652 | ||||||||||||
Financials | 2,175,115 | — | — | 2,175,115 | ||||||||||||
Industrials | 1,002,104 | 4,784 | — | 1,006,888 | ||||||||||||
Energy | 953,558 | 2,780 | �� | 956,338 | ||||||||||||
Consumer discretionary | 861,048 | 42,365 | — | 903,413 | ||||||||||||
Communication services | 847,896 | 115 | — | 848,011 | ||||||||||||
Consumer staples | 545,053 | 263,173 | — | 808,226 | ||||||||||||
Materials | 739,608 | — | — | 739,608 | ||||||||||||
Utilities | 215,899 | — | — | 215,899 | ||||||||||||
Real estate | 184,779 | — | — | 184,779 | ||||||||||||
Rights & warrants | — | — | 242 | 242 | ||||||||||||
Convertible stocks | — | — | 6,074 | 6,074 | ||||||||||||
Convertible bonds | — | 1,272 | — | 1,272 | ||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
U.S. Treasury bonds & notes | — | 2,820,469 | — | 2,820,469 | ||||||||||||
Corporate bonds & notes | — | 2,275,813 | 10,755 | 2,286,568 | ||||||||||||
Mortgage-backed obligations | — | 1,318,843 | — | 1,318,843 | ||||||||||||
Federal agency bonds & notes | — | 15,031 | — | 15,031 | ||||||||||||
Other | — | 190,115 | — | 190,115 | ||||||||||||
Short-term securities | — | 3,116,628 | — | 3,116,628 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 13,136,144 | $ | 10,113,791 | $ | 17,866 | $ | 23,267,801 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 6,035 | $ | — | $ | — | $ | 6,035 | ||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (874 | ) | — | — | (874 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | — | (3,557 | ) | — | (3,557 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 5,161 | $ | (3,557 | ) | $ | — | $ | 1,604 | |||||||
|
|
|
|
|
|
|
|
* | Futures contracts and interest rate swaps are not included in the investment portfolio. |
American Funds Insurance Series 149
Table of Contents
Global Balanced Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 29,939 | $ | 11,496 | $ | — | $ | 41,435 | ||||||||
Financials | 26,524 | 3,203 | — | 29,727 | ||||||||||||
Health care | 23,425 | 4,021 | — | 27,446 | ||||||||||||
Industrials | 19,589 | 5,349 | — | 24,938 | ||||||||||||
Energy | 18,129 | — | — | 18,129 | ||||||||||||
Consumer staples | 14,100 | 3,677 | — | 17,777 | ||||||||||||
Consumer discretionary | 13,799 | 1,034 | — | 14,833 | ||||||||||||
Materials | 8,709 | 4,244 | — | 12,953 | ||||||||||||
Communication services | 2,053 | 6,030 | — | 8,083 | ||||||||||||
Real estate | 6,155 | 827 | — | 6,982 | ||||||||||||
Utilities | 2,897 | 2,255 | — | 5,152 | ||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
Bonds & notes of governments & government agencies outside the U.S. | — | 59,146 | — | 59,146 | ||||||||||||
U.S. Treasury bonds & notes | — | 45,770 | — | 45,770 | ||||||||||||
Corporate bonds & notes | — | 23,532 | — | 23,532 | ||||||||||||
Mortgage-backed obligations | — | 6,936 | — | 6,936 | ||||||||||||
Short-term securities | — | 25,583 | — | 25,583 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 165,319 | $ | 203,103 | $ | — | $ | 368,422 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 180 | $ | — | $ | — | $ | 180 | ||||||||
Unrealized appreciation on open forward currency contracts | — | 214 | — | 214 | ||||||||||||
Unrealized appreciation on interest rate swaps | — | 24 | — | 24 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | — | (132 | ) | — | (132 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | — | (19 | ) | — | (19 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 180 | $ | 87 | $ | — | $ | 267 | ||||||||
|
|
|
|
|
|
|
|
* | Futures contracts, forward currency contracts and interest rate swaps are not included in the investment portfolio. |
Bond Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
Corporate bonds & notes | $ | — | $ | 3,603,650 | $ | — | $ | 3,603,650 | ||||||||
U.S. Treasury bonds & notes | — | 2,852,297 | — | 2,852,297 | ||||||||||||
Mortgage-backed obligations | — | 2,234,095 | — | 2,234,095 | ||||||||||||
Bonds & notes of governments & government agencies outside the U.S. | — | 612,742 | — | 612,742 | ||||||||||||
Asset-backed obligations | — | 197,268 | — | 197,268 | ||||||||||||
Municipals | — | 189,941 | — | 189,941 | ||||||||||||
Federal agency bonds & notes | — | 11,395 | — | 11,395 | ||||||||||||
Common stocks | — | 396 | 26 | 422 | ||||||||||||
Rights & warrants | — | — | 67 | 67 | ||||||||||||
Short-term securities | — | 1,243,633 | — | 1,243,633 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | 10,945,417 | $ | 93 | $ | 10,945,510 | ||||||||
|
|
|
|
|
|
|
|
150 American Funds Insurance Series
Table of Contents
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 22,298 | $ | — | $ | — | $ | 22,298 | ||||||||
Unrealized appreciation on open forward currency contracts | — | 5,141 | — | 5,141 | ||||||||||||
Unrealized appreciation on interest rate swaps | — | 2,565 | — | 2,565 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (2,690 | ) | — | — | (2,690 | ) | ||||||||||
Unrealized depreciation on open forward currency contracts | — | (14,412 | ) | — | (14,412 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | — | (2,338 | ) | — | (2,338 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 19,608 | $ | (9,044 | ) | $ | — | $ | 10,564 | |||||||
|
|
|
|
|
|
|
|
* | Futures contracts, forward currency contracts and interest rate swaps are not included in the investment portfolio. |
Global Bond Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
Japanese yen | $ | — | $ | 248,037 | $ | — | $ | 248,037 | ||||||||
Euros | — | 235,404 | — | 235,404 | ||||||||||||
Mexican pesos | — | 74,438 | — | 74,438 | ||||||||||||
Polish zloty | — | 73,313 | — | 73,313 | ||||||||||||
Danish kroner | — | 65,733 | — | 65,733 | ||||||||||||
Indian rupees | — | 45,800 | — | 45,800 | ||||||||||||
British pounds | — | 43,376 | — | 43,376 | ||||||||||||
Brazilian reais | — | 33,036 | — | 33,036 | ||||||||||||
Thai baht | — | 27,229 | — | 27,229 | ||||||||||||
Israeli shekels | — | 18,320 | — | 18,320 | ||||||||||||
Chilean pesos | — | 15,174 | — | 15,174 | ||||||||||||
Malaysian ringgits | — | 15,129 | — | 15,129 | ||||||||||||
Romanian leu | — | 14,495 | — | 14,495 | ||||||||||||
Canadian dollars | — | 10,039 | — | 10,039 | ||||||||||||
U.S. dollars | — | 914,227 | 487 | 914,714 | ||||||||||||
Other | — | 90,558 | — | 90,558 | ||||||||||||
Convertible bonds | — | 100 | — | 100 | ||||||||||||
Convertible stocks | — | — | 1,033 | 1,033 | ||||||||||||
Common stocks | 113 | 913 | 9 | 1,035 | ||||||||||||
Rights & warrants | — | — | 41 | 41 | ||||||||||||
Short-term securities | — | 196,588 | — | 196,588 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 113 | $ | 2,121,909 | $ | 1,570 | $ | 2,123,592 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 5,231 | $ | — | $ | — | $ | 5,231 | ||||||||
Unrealized appreciation on open forward currency contracts | — | 12,488 | — | 12,488 | ||||||||||||
Unrealized appreciation on interest rate swaps | — | 335 | — | 335 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (960 | ) | — | — | (960 | ) | ||||||||||
Unrealized depreciation on open forward currency contracts | — | (5,570 | ) | — | (5,570 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | — | (284 | ) | — | (284 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 4,271 | $ | 6,969 | $ | — | $ | 11,240 | ||||||||
|
|
|
|
|
|
|
|
* | Futures contracts, forward currency contracts and interest rate swaps are not included in the investment portfolio. |
American Funds Insurance Series 151
Table of Contents
High-Income Bond Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
Corporate bonds & notes | $ | — | $ | 1,129,425 | $ | 8,992 | $ | 1,138,417 | ||||||||
Other | — | 3,083 | — | 3,083 | ||||||||||||
Convertible bonds | — | 5,438 | — | 5,438 | ||||||||||||
Convertible stocks | 629 | — | 5,892 | 6,521 | ||||||||||||
Common stocks | 1,642 | 8,344 | 2,397 | 12,383 | ||||||||||||
Rights & warrants | — | — | 256 | 256 | ||||||||||||
Short-term securities | — | 16,793 | — | 16,793 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 2,271 | $ | 1,163,083 | $ | 17,537 | $ | 1,182,891 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other investments1 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on interest rate swaps | $ | — | $ | 156 | $ | — | $ | 156 | ||||||||
Unrealized appreciation on credit default swaps | — | 1,544 | — | 1,544 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on interest rate swaps | — | (380 | ) | — | (380 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | 1,320 | $ | — | $ | 1,320 | ||||||||
|
|
|
|
|
|
|
|
1 | Interest rate swaps and credit default swaps are not included in the investment portfolio. |
The following table reconciles the valuation of the fund’s Level 3 investment securities and related transactions for the year ended December 31, 2018 (dollars in thousands):
Beginning value at 1/1/2018 | Transfers into Level 32 | Purchases | Sales | Net realized gain3 | Unrealized appreciation3 | Transfers out of Level 32 | Ending value at 12/31/2018 | |||||||||||||||||||||||||
Investment securities | $ | 23,741 | $ | — | $ | 17,504 | $ | (34,559 | ) | $ | 6,060 | $ | 9,202 | $ | (4,411 | ) | $ | 17,537 | ||||||||||||||
Net unrealized appreciation during the period on Level 3 investment securities held at December 31, 2018 |
| $ | 1,603 |
2 | Transfers into or out of Level 3 are based on the beginning market value of the quarter in which they occurred. |
3 | Net realized gain and unrealized appreciation are included in the related amounts on investments in the statement of operations. |
152 American Funds Insurance Series
Table of Contents
Unobservable inputs — Valuation of the fund’s Level 3 securities is based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The following table provides additional information used by the fund’s investment adviser to fair value the fund’s Level 3 securities (dollars in thousands):
Value at 12/31/2018 | Valuation techniques | Unobservable inputs | Range | Weighted | Impact to | |||||||||
Bonds, notes & other debt instruments | $ | 8,992 | Yield analysis | Yield to maturity risk premium | 0-400 bps | 299 bps | Decrease | |||||||
Convertible securities | 5,892 | Market comparables | EBITDA multiple | 8.9x | 8.9x | Increase | ||||||||
Common stocks | 2,397 | Recent market information | Market comparables | 25% | 25% | Decrease | ||||||||
Enterprise value | Revenue multiple | 1.3x | 1.3x | Increase | ||||||||||
Expected proceeds | Discount to reflect timing of receipt and amount of proceeds | 50% | 50% | Decrease | ||||||||||
Black-Scholes | Implied volatility | 30% | 30% | Increase | ||||||||||
Rights & warrants | 256 | Recent market information | Quoted price | N/A | N/A | N/A | ||||||||
|
| |||||||||||||
$ | 17,537 | |||||||||||||
|
|
* | This column represents the directional change in fair value of the Level 3 securities that would result in an increase from the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these inputs in isolation could result in significantly higher or lower fair value measurements. |
Key to abbreviation
EBITDA = Earnings before income taxes, depreciation and amortization
Mortgage Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
Mortgage-backed obligations | $ | — | $ | 209,270 | $ | — | $ | 209,270 | ||||||||
U.S. Treasury bonds & notes | — | 32,012 | — | 32,012 | ||||||||||||
Federal agency bonds & notes | — | 18,483 | — | 18,483 | ||||||||||||
Asset-backed obligations | — | 17,340 | — | 17,340 | ||||||||||||
Corporate bonds & notes | — | — | 80 | 80 | ||||||||||||
Short-term securities | — | 66,563 | — | 66,563 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | 343,668 | $ | 80 | $ | 343,748 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 1,899 | $ | — | $ | — | $ | 1,899 | ||||||||
Unrealized appreciation on interest rate swaps | — | 3,261 | — | 3,261 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on interest rate swaps | — | (2,067 | ) | — | (2,067 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1,899 | $ | 1,194 | $ | — | $ | 3,093 | ||||||||
|
|
|
|
|
|
|
|
* | Futures contracts and interest rate swaps are not included in the investment portfolio. |
Ultra-Short Bond Fund
At December 31, 2018, all of the fund’s investment securities were classified as Level 2.
American Funds Insurance Series 153
Table of Contents
U.S.Government/AAA-Rated Securities Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
U.S. Treasury bonds & notes | $ | — | $ | 1,369,410 | $ | — | $ | 1,369,410 | ||||||||
Mortgage-backed obligations | — | 821,393 | — | 821,393 | ||||||||||||
Federal agency bonds & notes | — | 601,074 | — | 601,074 | ||||||||||||
Short-term securities | — | 318,827 | — | 318,827 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | 3,110,704 | $ | — | $ | 3,110,704 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 31,021 | $ | — | $ | — | $ | 31,021 | ||||||||
Unrealized appreciation on interest rate swaps | — | 34,976 | — | 34,976 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (3,571 | ) | — | — | (3,571 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | — | (15,622 | ) | — | (15,622 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 27,450 | $ | 19,354 | $ | — | $ | 46,804 | ||||||||
|
|
|
|
|
|
|
|
* | Futures contracts and interest rate swaps are not included in the investment portfolio. |
Managed Risk Growth Fund
At December 31, 2018, all of the fund’s investments were classified as Level 1.
Managed Risk International Fund
At December 31, 2018, all of the fund’s investments were classified as Level 1.
Managed Risk Blue Chip Income and Growth Fund
At December 31, 2018, all of the fund’s investments were classified as Level 1.
Managed Risk Growth-Income Fund
At December 31, 2018, all of the fund’s investments were classified as Level 1.
Managed Risk Asset Allocation Fund
At December 31, 2018, all of the fund’s investments were classified as Level 1.
4. Risk factors
Investing in the funds may involve certain risks including, but not limited to, those described below.
Market conditions — The prices of, and the income generated by, the common stocks, bonds and other securities held by a fund may decline — sometimes rapidly or unpredictably — due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.
Issuer risks — The prices of, and the income generated by, securities held by a fund may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation against the issuer, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.
Investing in growth-oriented stocks — Growth-oriented common stocks and other equity-type securities (such as preferred stocks, convertible preferred stocks and convertible bonds) may involve larger price swings and greater potential for loss than other types of investments. These risks may be even greater in the case of smaller capitalization stocks.
154 American Funds Insurance Series
Table of Contents
Investing in income-oriented stocks — The value of a fund’s securities and income provided by a fund may be reduced by changes in the dividend policies of, and the capital resources available for dividend payments at, the companies in which the fund invests.
Investing in small companies — Investing in smaller companies may pose additional risks. For example, it is often more difficult to value or dispose of small company stocks and more difficult to obtain information about smaller companies than about larger companies. Furthermore, smaller companies often have limited product lines, operating histories, markets and/or financial resources, may be dependent on one or a few key persons for management, and can be more susceptible to losses. Moreover, the prices of their stocks may be more volatile than stocks of larger, more established companies, particularly during times of market turmoil.
Investing outside the U.S. — Securities of issuers domiciled outside the U.S., or with significant operations or revenues outside the U.S., may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as nationalization, currency blockage or the imposition of price controls or punitive taxes, each of which could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the U.S. Investments outside the U.S. may also be subject to different accounting practices and different regulatory, legal and reporting standards and practices, and may be more difficult to value, than those in the U.S. In addition, the value of investments outside the U.S. may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by the fund. The risks of investing outside the U.S. may be heightened in connection with investments in emerging markets.
Investing in developing countries — Investing in countries with developing economies and/or markets may involve risks in addition to and greater than those generally associated with investing in developed countries. For instance, emerging market countries may have less developed legal and accounting systems than those in developed countries. The governments of these countries may be less stable and more likely to impose capital controls, nationalize a company or industry, place restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, and/or impose punitive taxes that could adversely affect the prices of securities. In addition, the economies of these countries may be dependent on relatively few industries that are more susceptible to local and global changes. Securities markets in these countries can also be relatively small and have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid, and may be more difficult to value, than securities issued in countries with more developed economies and/or markets. Less certainty with respect to security valuations may lead to additional challenges and risks in calculating the fund’s net asset value. Additionally, emerging markets are more likely to experience problems with the clearing and settling of trades and the holding of securities by banks, agents and depositories that are less established than those in developed countries.
Investing in emerging markets — Investing in emerging markets may involve risks in addition to and greater than those generally associated with investing in the securities markets of developed countries. For instance, emerging market countries may have less developed legal and accounting systems than those in developed countries. The governments of these countries may be less stable and more likely to impose capital controls, nationalize a company or industry, place restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, and/or impose punitive taxes that could adversely affect the prices of securities. In addition, the economies of these countries may be dependent on relatively few industries that are more susceptible to local and global changes. Securities markets in these countries can also be relatively small and have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid, and may be more difficult to value, than securities issued in countries with more developed economies and/or markets. Less certainty with respect to security valuations may lead to additional challenges and risks in calculating a fund’s net asset value. Additionally, emerging markets are more likely to experience problems with the clearing and settling of trades and the holding of securities by banks, agents and depositories that are less established than those in developed countries.
Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by a fund may be affected by changing interest rates and by changes in the effective maturities and credit ratings of these securities.
Rising interest rates will generally cause the prices of bonds and other debt securities to fall. A general rise in interest rates may cause investors to sell debt securities on a large scale, which could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from a fund. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in a fund failing to recoup the full amount of its initial investment and having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.
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Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer or guarantor will weaken or be perceived to be weaker, and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. A downgrade or default affecting any of a fund’s securities could cause the value of a fund’s shares to decrease. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which a fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The funds’ investment adviser relies on its own credit analysts to research issuers and issues in seeking to assess credit and default risks.
Investing in lower rated debt instruments — Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to investments in junk bonds.
Investing in derivatives — The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional securities, such as stocks and bonds. Changes in the value of a derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a derivative instrument may expose a fund to losses in excess of its initial investment. Derivatives may be difficult to value, difficult for a fund to buy or sell at an opportune time or price and difficult to terminate or otherwise offset. A fund’s use of derivatives may result in losses to the fund, and investing in derivatives may reduce a fund’s returns and increase a fund’s price volatility. A fund’s counterparty to a derivative transaction (including, if applicable, the fund’s clearing broker, the derivatives exchange or the clearinghouse) may be unable or unwilling to honor its financial obligations in respect of the transaction.
Currency — The prices of, and the income generated by, most debt securities held by a fund may also be affected by changes in relative currency values. If the U.S. dollar appreciates against foreign currencies, the value in U.S. dollars of a fund’s securities denominated in such currencies would generally fall and vice versa. U.S. dollar-denominated securities of foreign issuers may also be affected by changes in relative currency values.
Investing in mortgage-related and other asset-backed securities — Mortgage-related securities, such as mortgage-backed securities, and other asset-backed securities, include debt obligations that represent interests in pools of mortgages or other income-bearing assets, such as consumer loans or receivables. Such securities often involve risks that are different from or more acute than the risks associated with investing in other types of debt securities. Mortgage-backed and other asset-backed securities are subject to changes in the payment patterns of borrowers of the underlying debt, potentially increasing the volatility of the securities and a fund’s net asset value. When interest rates fall, borrowers are more likely to refinance or prepay their debt before its stated maturity. This may result in a fund having to reinvest the proceeds in lower yielding securities, effectively reducing a fund’s income. Conversely, if interest rates rise and borrowers repay their debt more slowly than expected, the time in which the mortgage-backed and other asset-backed securities are paid off could be extended, reducing a fund’s cash available for reinvestment in higher yielding securities. Mortgage-backed securities are also subject to the risk that underlying borrowers will be unable to meet their obligations and the value of property that secures the mortgages may decline in value and be insufficient, upon foreclosure, to repay the associated loans. Investments in asset-backed securities are subject to similar risks.
Investing in future delivery contracts — A fund may enter into contracts, such asto-be-announced contracts and mortgage dollar rolls, that involve a fund selling mortgage-related securities and simultaneously contracting to repurchase similar securities for delivery at a future date at a predetermined price. This can increase a fund’s market exposure, and the market price of the securities that the fund contracts to repurchase could drop below their purchase price. While a fund can preserve and generate capital through the use of such contracts by, for example, realizing the difference between the sale price and the future purchase price, the income generated by the fund may be reduced by engaging in such transactions. In addition, these transactions may increase the turnover rate of a fund.
Investing in inflation linked bonds — The values of inflation linked bonds generally fluctuate in response to changes in real interest rates — i.e., rates of interest after factoring in inflation. A rise in real interest rates may cause the prices of inflation linked securities to fall, while a decline in real interest rates may cause the prices to increase. Inflation linked bonds may experience greater losses than other debt securities with similar durations when real interest rates rise faster than nominal interest rates. There can be no assurance that the value of an inflation linked security will be directly correlated to changes in interest rates; for example, if interest rates rise for reasons other than inflation, the increase may not be reflected in the security’s inflation measure.
Investing in inflation linked bonds may also reduce a fund’s distributable income during periods of deflation. If prices for goods and services decline throughout the economy, the principal and income on inflation linked securities may decline and result in losses to a fund.
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Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates and the credit rating of the U.S. government. Securities issued by government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.
Investing in repurchase agreements — Upon entering into a repurchase agreement, a fund purchases a security from a bank or broker-dealer, which simultaneously commits to repurchase the security within a specified time at the fund’s cost with interest. The security purchased by the fund constitutes collateral for the seller’s repurchase obligation. If the party agreeing to repurchase should default, the fund may seek to sell the security it holds as collateral. The fund may incur a loss if the value of the collateral securing the repurchase obligation falls below the repurchase price. The fund may also incur disposition costs and encounter procedural delays in connection with liquidating the collateral.
Interest rate risk — The values and liquidity of the securities held by a fund may be affected by changing interest rates. For example, the values of these securities may decline when interest rates rise and increase when interest rates fall. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities. A fund may invest in variable and floating rate securities. When a fund holds variable or floating rate securities, a decrease in market interest rates will adversely affect the income received from such securities and the net asset value of a fund’s shares. Although the values of such securities are generally less sensitive to interest rate changes than those of other debt securities, the value of variable and floating rate securities may decline if their interest rates do not rise as quickly, or as much, as market interest rates. Conversely, floating rate securities will not generally increase in value if interest rates decline. During periods of extremely low short-term interest rates, a fund may not be able to maintain a positive yield and, given the current low interest rate environment, risks associated with rising rates are currently heightened.
Credit and liquidity support — Changes in the credit quality of banks and financial institutions providing credit and liquidity support features with respect to securities held by a fund could cause the values of these securities to decline.
Asset allocation — A fund’s percentage allocation to equity securities, debt securities and money market instruments could cause the fund to underperform relative to relevant benchmarks and other funds with similar investment objectives.
Nondiversification risk — As nondiversified funds, certain funds have the ability to invest a larger percentage of their assets in the securities of a smaller number of issuers than diversified funds. Although the funds do not intend to limit their investments to the securities of a small number of issuers, if they were to do so, poor performance by a single large holding could adversely impact the funds’ investment results more than if the funds were invested in a larger number of issuers.
Liquidity risk — Certain fund holdings may be or become difficult or impossible to sell, particularly during times of market turmoil. Illiquidity may result from the lack of an active market for a holding, legal or contractual restrictions on resale, or the reduced number and capacity of market participants to make a market in such holding. Market prices for less liquid or illiquid holdings may be volatile, and reduced liquidity may have an adverse impact on the market price of such holdings. Additionally, the sale of less liquid or illiquid holdings may involve substantial delays (including delays in settlement) and additional costs and the fund may be unable to sell such holdings when necessary to meet its liquidity needs or may be forced to sell at a loss.
Management — The investment adviser to the funds actively manages the funds’ investments. Consequently, the funds are subject to the risk that the methods and analyses, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and may not produce the desired results. This could cause the funds to lose value or their investment results to lag relevant benchmarks or other funds with similar objectives.
Investing in the managed risk funds may involve additional risks including, but not limited to, those described below.
Fund structure — The managed risk funds invest in underlying funds and incur expenses related to those underlying funds. In addition, investors in the managed risk funds will incur fees to pay for certain expenses related to the operations of the managed risk funds. An investor holding the underlying fund directly would incur lower overall expenses but would not receive the benefit of the managed risk strategy.
Management — The managed risk funds are subject to the risk that the managed risk strategy or the methods employed by the subadviser in implementing the managed risk strategy may not produce the desired results. This could cause the managed risk funds to lose value or their investment results to lag relevant benchmarks or other funds with similar objectives.
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Underlying fund risks — Because the managed risk funds’ investments consist of investments in underlying funds, the managed risk funds’ risks are directly related to the risks of the respective underlying fund in which each managed fund invests. For this reason, it is important to understand the risks associated with investing both in the managed risk fund and in each of the underlying funds.
Investing in options and futures contracts — In addition to the risks generally associated with investing in derivative instruments, options and futures contracts are subject to the creditworthiness of the clearing organizations, exchanges and, in the case of futures, futures commission merchants with which a fund transacts. Additionally, although futures require only a small initial investment in the form of a deposit of initial margin, the amount of a potential loss on a futures contract could greatly exceed the initial amount invested. While both options and futures contracts are generally liquid instruments, under certain market conditions, options and futures may be deemed to be illiquid. For example, a fund may be temporarily prohibited from closing out its position in an options or futures contract if intraday price change limits or limits on trading volume imposed by the applicable exchange are triggered. If a fund is unable to close out a position on an options or futures contract, the fund would remain subject to the risk of adverse price movements until the fund is able to close out the position in question. The ability of a fund to successfully utilize options and futures contracts may depend in part upon the ability of the fund’s investment adviser or subadviser to accurately forecast interest rates and other economic factors and to assess and predict the impact of such economic factors on the options and futures in which the fund invests. If the investment adviser or subadviser incorrectly forecasts economic developments or incorrectly predicts the impact of such developments on the options and futures in which it invests, a fund could be exposed to the risk of loss. Whereas the risk of loss on a put option purchased by the fund is limited to the initial cost of the option, the amount of a potential loss on a futures contract could greatly exceed the relatively small initial amount invested in entering the futures position.
Hedging — There may be imperfect or even negative correlation between the prices of the options and futures contracts in which a fund invests and the prices of the underlying securities or indexes which the fund seeks to hedge. For example, options and futures contracts may not provide an effective hedge because changes in options and futures contract prices may not track those of the underlying securities or indexes they are intended to hedge. In addition, there are significant differences between the securities market, on the one hand, and the options and futures markets, on the other, that could result in an imperfect correlation between the markets, causing a given hedge not to achieve its objectives. The degree of imperfection of correlation depends on circumstances such as variations in speculative market demand for options and futures, including technical influences in options and futures trading, and differences between the financial instruments being hedged and the instruments underlying the standard contracts available for trading. A decision as to whether, when and how to hedge involves the exercise of skill and judgment, and even a well-conceived hedge may be unsuccessful to some degree because of market behavior or unexpected interest rate trends. In addition, the fund’s investment in exchange-traded options and futures and their resulting costs could limit the fund’s gains in rising markets relative to those of the underlying funds, or to those of unhedged funds in general.
Short positions — A fund may suffer losses from short positions in futures contracts. Losses from short positions in futures contracts occur when the underlying index increases in value. As the underlying index increases in value, the holder of the short position in the corresponding futures contract is required to pay the difference in value of the futures contract resulting from the increase in the index on a daily basis. Losses from a short position in an index futures contract could potentially be very large if the value of the underlying index rises dramatically in a short period of time.
5. Certain investment techniques
Securities lending — One of the funds has entered into securities lending transactions in which the fund earns income by lending investment securities to brokers, dealers or other institutions. Each transaction involves three parties: the fund, acting as the lender of the securities, a borrower, and a lending agent that acts as an intermediary.
Securities lending transactions are entered into by the fund under the securities lending agreement with the lending agent. The lending agent facilitates the exchange of securities between the lender and the borrower, generally provides protection from borrower default, marks to market the value of collateral daily, secures additional collateral from the borrower if it falls below preset terms, and may reinvest the collateral on behalf of the fund according to agreed parameters. The lending agent has indemnified the fund against losses resulting from borrower default. Although risk is mitigated by the collateral and indemnification, the fund could experience a delay in recovering its securities and a potential loss of income or value if the borrower fails to return the securities, collateral investments decline in value or the lending agent fails to perform.
The borrower is required to post highly liquid assets, such as cash or U.S. government securities, as collateral for the loan in an amount at least equal to the value of the securities loaned. Investments made with cash collateral are recognized as assets in the fund’s investment portfolio. The same amount is recorded as a liability in the fund’s statement of assets and liabilities. While securities are on loan, the fund will continue to receive the equivalent of the interest, dividends or other distributions paid by the issuer, as well as a
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portion of the interest on the investment of the collateral. Additionally, although the fund does not have the right to vote on securities while they are on loan, the fund has a right to consent on corporate actions and a right to recall loaned securities to vote on proposals affecting them. The borrower is obligated to return the loaned security at the conclusion of the loan or, during the pendency of the loan, on demand from the fund.
As of December 31, 2018, the total value of securities on loan was $67,607,000, and the total value of collateral received was $72,379,000. Collateral received included cash of $60,486,000 andnon-cash U.S. Government securities of $11,893,000. Investment securities purchased from cash collateral of $54,436,000 are disclosed in the summary investment portfolio as short-term securities. Securities received as collateral, if any, are not recognized as fund assets. The contractual maturity of collateral received under the securities lending agreement is classified as overnight and continuous.
Index-linked bonds — Some of the funds have invested in index-linked bonds, which are fixed-income securities whose principal value is periodically adjusted to a government price index. Over the life of an index-linked bond, interest is paid on the adjusted principal value. Increases or decreases in the principal value of index-linked bonds are recorded as interest income in the fund’s statement of operations.
Mortgage dollar rolls — Some of the funds have entered into mortgage dollar roll transactions in which the fund sells a mortgage-backed security to a counterparty and simultaneously enters into an agreement with the same counterparty to buy back a similar security on a specific future date at a predetermined price. Mortgage dollar rolls are accounted for as purchase and sale transactions, which may increase the funds’ portfolio turnover rates.
Loan transactions — Some of the funds have entered into loan transactions in which the fund acquires a loan either through an agent, by assignment from another holder, or as a participation interest in another holder’s portion of a loan. The loan is often administered by a financial institution that acts as agent for the holders of the loan, and the fund may be required to receive approval from the agent and/or borrower prior to the sale of the investment. The loan’s interest rate and maturity date may change based on the terms of the loan, including potential early payments of principal.
Short-term securities — The managed risk funds hold shares of the Government Cash Management Fund, a cash management vehicle offered by the Bank of New York Mellon (“BNY Mellon”), the funds’ custodian bank. The Government Cash Management Fund is managed by the Dreyfus Corporation.
Options contracts — The Managed Risk Growth-Income Fund has entered into options contracts, which give the holder of the option, in return for a premium payment, the right to buy from (in the case of a call) or sell to (in the case of a put) the writer of the option, the security underlying the option (or the cash value of the index underlying the option) at a specified price. As part of its managed risk strategy, the Managed Risk Growth-Income Fund will at times purchase put options on equity indexes in standardized contracts traded on foreign or domestic securities exchanges, boards of trade, or similar entities. By purchasing a put option on an equity index, the fund obtains the right (but not the obligation) to sell the cash value of the index underlying the option at a specified exercise price, and in return for this right, the fund pays the current market price, or the option premium, for the option.
The fund may terminate its position in a put option by allowing the option to expire or by exercising the option. If the option is allowed to expire, the fund will lose the entire premium. If the option is exercised, the fund completes the sale of the underlying instrument (or delivers the cash value of the index underlying the option) at the exercise price. The fund may also terminate a put option position by entering into opposingclose-out transactions in advance of the option expiration date.
Premiums paid on options purchased, as well as the daily fluctuation in market value, are included in investment securities in the fund’s statement of assets and liabilities. Realized gains or losses are recorded at the time the option contract is closed or expires. Net realized gains or losses and net unrealized appreciation or depreciation from options contracts are recorded in the fund’s statement of operations.
Futures contracts — Some of the funds have entered into futures contracts, which provide for the future sale by one party and purchase by another party of a specified amount of a specific financial instrument for a specified price, date, time and place designated at the time the contract is made. Futures contracts are used to strategically manage the fund’s interest rate sensitivity by increasing or decreasing the duration of the fund or a portion of the fund’s portfolio. For the managed risk funds, futures contracts are used to strategically manage portfolio volatility and downside equity risk.
Upon entering into futures contracts, and to maintain the fund’s open positions in futures contracts, the fund is required to deposit with a futures broker, or FCM, in a segregated account in the name of the FCM an amount of cash, U.S. government securities or other liquid securities, known as initial margin. The margin required for a particular futures contract is set by the exchange on which the contract is
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traded to serve as collateral, and may be significantly modified from time to time by the exchange during the term of the contract. Securities deposited as initial margin, if any, are disclosed in the investment portfolio and cash deposited as initial margin, if any, is reflected as restricted cash pledged for futures contracts in the fund’s statement of assets and liabilities.
On a daily basis, each fund pays or receives variation margin based on the increase or decrease in the value of the futures contracts and records variation margin on futures contracts in each fund’s statement of assets and liabilities. In addition, each fund segregates liquid assets equivalent to the fund’s outstanding obligations under the contract in excess of the initial margin and variation margin, if any. Futures contracts may involve a risk of loss in excess of the variation margin shown on each fund’s statement of assets and liabilities. Each fund records realized gains or losses at the time the futures contract is closed or expires. Net realized gains or losses and net unrealized appreciation or depreciation from futures contracts are recorded in each fund’s statement of operations.
Forward currency contracts — Some of the funds have entered into forward currency contracts, which represent agreements to exchange currencies on specific future dates at predetermined rates. The series’ investment adviser uses forward currency contracts to manage the fund’s exposure to changes in exchange rates. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from possible movements in exchange rates.
On a daily basis, the series’ investment adviser values forward currency contracts based on the applicable exchange rates and records unrealized appreciation or depreciation for open forward currency contracts in each fund’s statement of assets and liabilities. Realized gains or losses are recorded at the time the forward contract is closed or offset by another contract with the same broker for the same settlement date and currency. Closed forward currency contracts that have not reached their settlement date are included in the respective receivables or payables for closed forward currency contracts in each fund’s statement of assets and liabilities. Net realized gains or losses from closed forward currency contracts and net unrealized appreciation or depreciation from open forward currency contracts are recorded in each fund’s statement of operations.
Interest rate swaps — Some of the funds have entered into interest rate swaps, which are agreements to exchange one stream of future interest payments for another based on a specified notional amount. Typically, interest rate swaps exchange a fixed interest rate for a payment that floats relative to a benchmark or vice versa. The series’ investment adviser uses interest rate swaps to manage the interest rate sensitivity of the fund by increasing or decreasing the duration of the fund or a portion of the fund’s portfolio. Risks may arise as a result of the series’ investment adviser incorrectly anticipating changes in interest rates, increased volatility, reduced liquidity and the potential inability of counterparties to meet the terms of their agreements.
Upon entering into an interest rate swap contract, the fund is required to deposit cash, U.S. government securities or other liquid securities, which is known as initial margin. Generally, the initial margin required for a particular interest rate swap is set and held as collateral by the clearinghouse on which the contract is cleared. The amount of initial margin required may be significantly modified from time to time by the clearinghouse during the term of the contract.
On a daily basis, the series’ investment adviser records daily interest accruals related to the exchange of future payments as a receivable and payable in each fund’s statement of assets and liabilities. Each fund also pays or receives a variation margin based on the increase or decrease in the value of the interest rate swaps, including accrued interest, and records variation margin on interest rate swaps in each fund’s statement of assets and liabilities. Each fund records realized gains and losses on both the net accrued interest and any gain or loss recognized at the time the interest rate swap is closed or expires. Net realized gains or losses, as well as any net unrealized appreciation or depreciation, from interest rate swaps are recorded in each fund’s statement of operations.
Credit default swap indices — Some of the funds have entered into centrally cleared credit default swap agreements on credit indices (“CDSI”) that involve one party (the protection buyer) making a stream of payments to another party (the protection seller) in exchange for the right to receive a specified return upon the occurrence of a credit event, such as a default or restructuring, with respect to any of the underlying issuers (reference obligations) in the referenced index. The series’ investment adviser uses credit default swaps to assume exposure to a diversified portfolio of credits or to hedge against existing credit risks.
CDSI are portfolios of credit instruments or exposures designed to be representative of some part of the credit market, such as the high-yield or investment-grade credit market. CDSI are generally traded using standardized terms, including a fixed spread and standard maturity dates, and reference all the names in the index. If there is a credit event, it is settled based on that name’s weight in the index. The composition of the underlying issuers or obligations within a particular index may change periodically, usually every six months. A specified credit event may affect all or individual underlying reference obligations included in the index, and will be settled based upon the relative weighting of the affected obligation(s) within the index. The value of each CDSI can be used as a measure of the current payment/performance risk of the CDSI and represents the likelihood of an expected liability or profit should the notional amount of the CDSI be closed or sold as of the period end. An increasing value, as compared to the notional amount of the CDSI, represents a deterioration of the referenced indices’ credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement. When a fund provides sell protection, its maximum exposure is the notional amount of the credit default swap agreement.
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Upon entering into a centrally cleared CDSI contract, the fund is required to deposit with a derivatives clearing member (“DCM”) in a segregated account in the name of the DCM an amount of cash, U.S. government securities or other liquid securities, which is known as initial margin. Generally, the initial margin required for a particular credit default swap is set and held as collateral by the clearinghouse on which the contract is cleared. The amount of initial margin required may be significantly modified from time to time by the clearinghouse during the term of the contract. Securities deposited as initial margin are designated on the investment portfolio.
On a daily basis, interest accruals related to the exchange of future payments are recorded as a receivable and payable in each fund’s statement of assets and liabilities. Each fund also pays or receives a variation margin based on the increase or decrease in the value of the centrally cleared swaps, and records variation margin in each fund’s statement of assets and liabilities. Each fund records realized gains and losses on both the net accrued interest and any gain or loss recognized at the time the swap is closed or expires. Net realized gains or losses, as well as any net unrealized appreciation or depreciation, from credit default swaps are recorded in each fund’s statement of operations.
The following table presents the averagemonth-end notional amounts of options purchased, futures contracts, forward currency contracts, interest rate swaps and credit default swaps while held for each fund (dollars in thousands):
Forward | Interest | Credit | ||||||||||||||||||
Options | Futures | currency | rate | default | ||||||||||||||||
purchased | contracts | contracts | swaps | swaps | ||||||||||||||||
Global Growth Fund | Not applicable | Not applicable | $ | 6,220 | * | Not applicable | Not applicable | |||||||||||||
Global Small Capitalization Fund | Not applicable | Not applicable | 93,340 | * | Not applicable | Not applicable | ||||||||||||||
International Fund | Not applicable | Not applicable | 35,647 | Not applicable | Not applicable | |||||||||||||||
New World Fund | Not applicable | Not applicable | 15,738 | Not applicable | Not applicable | |||||||||||||||
Global Growth and Income Fund | Not applicable | Not applicable | 7,640 | Not applicable | Not applicable | |||||||||||||||
Capital Income Builder | Not applicable | $ | 188,467 | Not applicable | Not applicable | Not applicable | ||||||||||||||
Asset Allocation Fund | Not applicable | 375,571 | Not applicable | $ | 2,197,665 | Not applicable | ||||||||||||||
Global Balanced Fund | Not applicable | 6,967 | 24,260 | 86,959 | Not applicable | |||||||||||||||
Bond Fund | Not applicable | 2,619,856 | 581,133 | 3,448,366 | $ | 48,409 | * | |||||||||||||
Global Bond Fund | Not applicable | 197,591 | 772,080 | 823,223 | Not applicable | |||||||||||||||
High-Income Bond Fund | Not applicable | 9,800 | * | Not applicable | 46,142 | 84,946 | ||||||||||||||
Mortgage Fund | Not applicable | 153,475 | Not applicable | 366,044 | Not applicable | |||||||||||||||
U.S.Government/AAA-Rated Securities Fund | Not applicable | 2,838,731 | Not applicable | 8,956,391 | Not applicable | |||||||||||||||
Managed Risk Growth Fund | Not applicable | 57,567 | Not applicable | Not applicable | Not applicable | |||||||||||||||
Managed Risk International Fund | Not applicable | 174,691 | Not applicable | Not applicable | Not applicable | |||||||||||||||
Managed Risk Blue Chip Income and Growth Fund | Not applicable | 47,916 | Not applicable | Not applicable | Not applicable | |||||||||||||||
Managed Risk Growth-Income Fund | $ | 777,368 | 138,587 | Not applicable | Not applicable | Not applicable | ||||||||||||||
Managed Risk Asset Allocation Fund | Not applicable | 399,717 | Not applicable | Not applicable | Not applicable |
* | No contracts were held at the end of the reporting period; amount represents the averagemonth-end notional amount of contracts while they were held. |
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The following tables present the financial statement impacts resulting from the funds’ use of options, futures contracts, forward currency contracts, interest rate swaps and/or credit default swaps as of, or for the year ended, December 31, 2018 (dollars in thousands):
Global Growth Fund
Net realized loss | Net unrealized depreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Forward currency | Currency | Net realized loss on forward currency contracts | $ | (21 | ) | Net unrealized depreciation on forward currency contracts | $ | (15 | ) |
Global Small Capitalization Fund
Net realized gain | Net unrealized appreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Forward currency | Currency | Net realized gain on forward currency contracts | $ | 94 | Net unrealized appreciation on forward currency contracts | $ | 1,103 |
International Fund
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and | Value | Location on statement of assets and | Value | |||||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | $ | — | Unrealized depreciation on open forward currency contracts | $ | 525 | |||||||
Net realized gain | Net unrealized depreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Forward currency | Currency | Net realized gain on forward currency contracts | $ | 1,317 | Net unrealized depreciation on forward currency contracts | $ | (170 | ) |
New World Fund
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | $ | 356 | Unrealized depreciation on open forward currency contracts | $ | 53 | |||||||
Net realized gain | Net unrealized appreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Forward currency | Currency | Net realized gain on forward currency contracts | $ | 649 | Net unrealized appreciation on forward currency contracts | $ | 626 |
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Global Growth and Income Fund
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | $ | 351 | Unrealized depreciation on open forward currency contracts | $ | — | |||||||
Net realized loss | Net unrealized appreciation |
| ||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Forward currency | Currency | Net realized loss on forward currency contracts | $ | (72 | ) | Net unrealized appreciation on forward currency contracts | $ | 351 |
Capital Income Builder
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||
Futures | Interest | Unrealized appreciation1 | $ | 2,467 | Unrealized depreciation1 | $ | 2,038 | |||||||
Net realized gain | Net unrealized appreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Interest | Net realized gain on futures contracts | $ | 242 | Net unrealized appreciation on futures contracts | $ | 429 |
Asset Allocation Fund
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and | Value | Location on statement of assets and | Value | |||||||||
Futures | Interest | Unrealized appreciation1 | $ | 6,035 | Unrealized depreciation1 | $ | 874 | |||||||
Swaps | Interest | Unrealized appreciation1 | — | Unrealized depreciation1 | 3,557 | |||||||||
|
|
|
| |||||||||||
$ | 6,035 | $ | 4,431 | |||||||||||
|
|
|
| |||||||||||
Net realized gain (loss) | Net unrealized appreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Interest | Net realized gain on futures contracts | $ | 677 | Net unrealized appreciation on futures contracts | $ | 5,914 | |||||||
Swaps | Interest | Net realized loss on swap contracts | (2,209 | ) | Net unrealized appreciation on swap contracts | 2,691 | ||||||||
|
|
|
| |||||||||||
$ | (1,532 | ) | $ | 8,605 | ||||||||||
|
|
|
|
See end of tables for footnotes.
American Funds Insurance Series 163
Table of Contents
Global Balanced Fund
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||
Futures | Interest | Unrealized appreciation1 | $ | 180 | Unrealized depreciation1 | $ | — | |||||||
Forward currency | Currency | Unrealized appreciation on open | 214 | Unrealized depreciation on open | 132 | |||||||||
Swaps | Interest | forward currency contracts Unrealized appreciation1 | 24 | forward currency contracts Unrealized depreciation1 | 19 | |||||||||
|
|
|
| |||||||||||
$ | 418 | $ | 151 | |||||||||||
|
|
|
| |||||||||||
Net realized gain (loss) | Net unrealized appreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Interest | Net realized gain on futures contracts | $ | 23 | Net unrealized appreciation on futures contracts | $ | 180 | |||||||
Forward currency | Currency | Net realized loss on forward currency contracts | (541 | ) | Net unrealized appreciation on forward currency contracts | 207 | ||||||||
Swaps | Interest | Net realized loss on swap contracts | (5 | ) | Net unrealized appreciation on swap contracts | 5 | ||||||||
|
|
|
| |||||||||||
$ | (523 | ) | $ | 392 | ||||||||||
|
|
|
|
Bond Fund
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and | Value | Location on statement of assets and | Value | |||||||||
Futures | Interest | Unrealized appreciation1 | $ | 22,298 | Unrealized depreciation1 | $ | 2,690 | |||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | 5,141 | Unrealized depreciation on open forward currency contracts | 14,412 | |||||||||
Swaps | Interest | Unrealized appreciation1 | 2,565 | Unrealized depreciation1 | 2,338 | |||||||||
|
|
|
| |||||||||||
$ | 30,004 | $ | 19,440 | |||||||||||
|
|
|
| |||||||||||
Net realized (loss) gain | Net unrealized appreciation (depreciation) | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Interest | Net realized loss on futures contracts | $ | (38,790 | ) | Net unrealized appreciation on futures contracts | $ | 23,764 | ||||||
Forward currency | Currency | Net realized gain on forward currency contracts | 14,487 | Net unrealized depreciation on forward currency contracts | (16,813 | ) | ||||||||
Swaps | Interest | Net realized gain on swap contracts | 16,325 | Net unrealized depreciation on swap contracts | (7,485 | ) | ||||||||
Swaps | Credit | Net realized gain on swap contracts | 42 | Net unrealized appreciation on swap contracts | 184 | |||||||||
|
|
|
| |||||||||||
$ | (7,936 | ) | $ | (350 | ) | |||||||||
|
|
|
|
164 American Funds Insurance Series
Table of Contents
Global Bond Fund
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and | Value | Location on statement of assets and | Value | |||||||||
Futures | Interest | Unrealized appreciation1 | $ | 5,231 | Unrealized depreciation1 | $ | 960 | |||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | 12,488 | Unrealized depreciation on open forward currency contracts | 5,570 | |||||||||
Swaps | Interest | Unrealized appreciation1 | 335 | Unrealized depreciation1 | 284 | |||||||||
|
|
|
| |||||||||||
$ | 18,054 | $ | 6,814 | |||||||||||
|
|
|
| |||||||||||
Net realized loss | Net unrealized appreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Interest | Net realized loss on futures contracts | $ | (3,980 | ) | Net unrealized appreciation on futures contracts | $ | 4,630 | ||||||
Forward currency | Currency | Net realized loss on forward currency contracts | (6,955 | ) | Net unrealized appreciation on forward currency contracts | 6,258 | ||||||||
Swaps | Interest | Net realized loss on swap contracts | (44 | ) | Net unrealized appreciation on swap contracts | 1,530 | ||||||||
|
|
|
| |||||||||||
$ | (10,979 | ) | $ | 12,418 | ||||||||||
|
|
|
|
High-Income Bond Fund
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and | Value | Location on statement of assets and | Value | |||||||||
Swaps | Interest | Unrealized appreciation1 | $ | 156 | Unrealized depreciation1 | $ | 380 | |||||||
Swaps | Credit | Unrealized appreciation1 | 1,544 | Unrealized depreciation1 | — | |||||||||
|
|
|
| |||||||||||
$ | 1,700 | $ | 380 | |||||||||||
|
|
|
| |||||||||||
Net realized gain (loss) | Net unrealized appreciation (depreciation) | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Interest | Net realized gain on futures contracts | $ | 2 | Net unrealized appreciation on futures contracts | $ | — | |||||||
Swaps | Interest | Net realized gain on swap contracts | 743 | Net unrealized depreciation on swap contracts | (646 | ) | ||||||||
Swaps | Credit | Net realized loss on swap contracts | (1,133 | ) | Net unrealized appreciation on swap contracts | 1,963 | ||||||||
|
|
|
| |||||||||||
$ | (388 | ) | $ | 1,317 | ||||||||||
|
|
|
|
Mortgage Fund
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and | Value | Location on statement of assets and | Value | |||||||||
Futures | Interest | Unrealized appreciation1 | $ | 1,899 | Unrealized depreciation1 | $ | — | |||||||
Swaps | Interest | Unrealized appreciation1 | 3,261 | Unrealized depreciation1 | 2,067 | |||||||||
|
|
|
| |||||||||||
$ | 5,160 | $ | 2,067 | |||||||||||
|
|
|
| |||||||||||
See end of tables for footnotes.
American Funds Insurance Series 165
Table of Contents
Net realized (loss) gain | Net unrealized appreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Interest | Net realized loss on futures contracts | $ | (4,529 | ) | Net unrealized appreciation on futures contracts | $ | 2,531 | ||||||
Swaps | Interest | Net realized gain on swap contracts | 449 | Net unrealized appreciation on swap contracts | 1,980 | |||||||||
|
|
|
| |||||||||||
$ | (4,080 | ) | $ | 4,511 | ||||||||||
|
|
|
|
U.S. Government/AAA-Rated Securities Fund
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and | Value | Location on statement of assets and | Value | |||||||||
Futures | Interest | Unrealized appreciation1 | $ | 31,021 | Unrealized depreciation1 | $ | 3,571 | |||||||
Swaps | Interest | Unrealized appreciation1 | 34,976 | Unrealized depreciation1 | 15,622 | |||||||||
|
|
|
| |||||||||||
$ | 65,997 | $ | 19,193 | |||||||||||
|
|
|
| |||||||||||
Net realized loss | Net unrealized appreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Interest | Net realized loss on futures contracts | $ | (45,333 | ) | Net unrealized appreciation on futures contracts | $ | 34,895 | ||||||
Swaps | Interest | Net realized loss on swap contracts | (1,752 | ) | Net unrealized appreciation on swap contracts | 27,782 | ||||||||
|
|
|
| |||||||||||
$ | (47,085 | ) | $ | 62,677 | ||||||||||
|
|
|
|
Managed Risk Growth Fund
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and | Value | Location on statement of assets and | Value | |||||||||
Futures | Currency | Unrealized appreciation1 | $ | — | Unrealized depreciation1 | $ | 45 | |||||||
Futures | Equity | Unrealized appreciation1 | 4,022 | Unrealized depreciation1 | — | |||||||||
Futures | Interest | Unrealized appreciation1 | 1,914 | Unrealized depreciation1 | — | |||||||||
|
|
|
| |||||||||||
$ | 5,936 | $ | 45 | |||||||||||
|
|
|
| |||||||||||
Net realized gain (loss) | Net unrealized (depreciation) appreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Currency | Net realized gain on futures contracts | $ | 118 | Net unrealized depreciation on futures contracts | $ | (45 | ) | ||||||
Futures | Equity | Net realized loss on futures contracts | (4,716 | ) | Net unrealized appreciation on futures contracts | 4,022 | ||||||||
Futures | Interest | Net realized loss on futures contracts | (690 | ) | Net unrealized appreciation on futures contracts | 1,952 | ||||||||
|
|
|
| |||||||||||
$ | (5,288 | ) | $ | 5,929 | ||||||||||
|
|
|
|
166 American Funds Insurance Series
Table of Contents
Managed Risk International Fund
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and | Value | Location on statement of assets and | Value | |||||||||
Futures | Currency | Unrealized appreciation1 | $ | — | Unrealized depreciation1 | $ | 278 | |||||||
Futures | Equity | Unrealized appreciation1 | 882 | Unrealized depreciation1 | — | |||||||||
Futures | Interest | Unrealized appreciation1 | 615 | Unrealized depreciation1 | — | |||||||||
|
|
|
| |||||||||||
$ | 1,497 | $ | 278 | |||||||||||
|
|
|
| |||||||||||
Net realized gain (loss) | Net unrealized (depreciation) appreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Currency | Net realized gain on futures contracts | $ | 356 | Net unrealized depreciation on futures contracts | $ | (278 | ) | ||||||
Futures | Equity | Net realized loss on futures contracts | (600 | ) | Net unrealized appreciation on futures contracts | $ | 882 | |||||||
Futures | Interest | Net realized loss on futures contracts | (57 | ) | Net unrealized appreciation on futures contracts | 634 | ||||||||
|
|
|
| |||||||||||
$ | (301 | ) | $ | 1,238 | ||||||||||
|
|
|
| |||||||||||
Managed Risk Blue Chip Income and Growth Fund
|
| |||||||||||||
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and | Value | Location on statement of assets and | Value | |||||||||
Futures | Currency | Unrealized appreciation1 | $ | — | Unrealized depreciation1 | $ | 30 | |||||||
Futures | Equity | Unrealized appreciation1 | 3,946 | Unrealized depreciation1 | — | |||||||||
Futures | Interest | Unrealized appreciation1 | 1,865 | Unrealized depreciation1 | — | |||||||||
|
|
|
| |||||||||||
$ | 5,811 | $ | 30 | |||||||||||
|
|
|
| |||||||||||
Net realized gain (loss) | Net unrealized (depreciation) appreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Currency | Net realized gain on futures contracts | $ | 115 | Net unrealized depreciation on futures contracts | $ | (30 | ) | ||||||
Futures | Equity | Net realized loss on futures contracts | (6,778 | ) | Net unrealized appreciation on futures contracts | $ | 3,946 | |||||||
Futures | Interest | Net realized loss on futures contracts | (1,035 | ) | Net unrealized appreciation on futures contracts | 1,914 | ||||||||
|
|
|
| |||||||||||
$ | (7,698 | ) | $ | 5,830 | ||||||||||
|
|
|
|
See end of tables for footnotes.
American Funds Insurance Series 167
Table of Contents
Managed Risk Growth-Income Fund
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and | Value | Location on statement of assets and | Value | |||||||||
Options purchased | Equity | Investment securities from unaffiliated issuers2 | $ | 8,674 | Investment securities from unaffiliated issuers2 | $ | — | |||||||
Futures | Currency | Unrealized appreciation1 | — | Unrealized depreciation1 | 497 | |||||||||
Futures | Equity | Unrealized appreciation1 | 3,986 | Unrealized depreciation1 | 101 | |||||||||
Futures | Interest | Unrealized appreciation1 | 6,919 | Unrealized depreciation1 | $ | — | ||||||||
|
|
|
| |||||||||||
$ | 19,579 | $ | 598 | |||||||||||
|
|
|
| |||||||||||
Net realized gain (loss) | Net unrealized appreciation (depreciation) | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Options purchased | Equity | Net realized gain on options contracts3 | $ | — | Net unrealized appreciation on options contracts4 | $ | 1,011 | |||||||
Futures | Currency | Net realized gain on futures contracts | $ | 28 | Net unrealized depreciation on futures contracts | (497 | ) | |||||||
Futures | Equity | Net realized loss on futures contracts | (2,611 | ) | Net unrealized appreciation on futures contracts | $ | 3,885 | |||||||
Futures | Interest | Net realized loss on futures contracts | (481 | ) | Net unrealized appreciation on futures contracts | 6,947 | ||||||||
|
|
|
| |||||||||||
$ | (3,064 | ) | $ | 11,346 | ||||||||||
|
|
|
| |||||||||||
Managed Risk Asset Allocation Fund
|
| |||||||||||||
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and | Value | Location on statement of assets and | Value | |||||||||
Futures | Currency | Unrealized appreciation1 | $ | — | Unrealized depreciation1 | $ | 182 | |||||||
Futures | Equity | Unrealized appreciation1 | 17,157 | Unrealized depreciation1 | — | |||||||||
Futures | Interest | Unrealized appreciation1 | 8,348 | Unrealized depreciation1 | — | |||||||||
|
|
|
| |||||||||||
$ | 25,505 | $ | 182 | |||||||||||
|
|
|
| |||||||||||
Net realized gain (loss) | Net unrealized (depreciation) appreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Currency | Net realized gain on futures contracts | $ | 420 | Net unrealized depreciation on futures contracts | $ | (182 | ) | ||||||
Futures | Equity | Net realized loss on futures contracts | (43,889 | ) | Net unrealized appreciation on futures contracts | $ | 8,940 | |||||||
Futures | Interest | Net realized loss on futures contracts | (5,864 | ) | Net unrealized appreciation on futures contracts | 17,157 | ||||||||
|
|
|
| |||||||||||
$ | (49,333 | ) | $ | 25,915 | ||||||||||
|
|
|
|
1 | Includes cumulative appreciation/depreciation on futures contracts, interest rate swaps and credit default swaps as reported in the applicable table following each fund’s investment portfolio. Only current day’s variation margin is reported within the statements of assets and liabilities. |
2 | Includes options purchased as reported in the fund’s investment portfolio. |
3 | Options purchased are included in net realized gain (loss) on unaffiliated investments. |
4 | Options purchased are included in net unrealized (depreciation) appreciation on unaffiliated investments. |
168 American Funds Insurance Series
Table of Contents
Collateral — Some funds participate in a collateral program that calls for the funds to either receive or pledge highly liquid assets, such as cash or U.S. government securities, as collateral due to securities lending and/or their use of futures contracts, forward currency contracts, interest rate swaps, credit default swaps and/or future delivery contracts. For securities lending, each participating fund receives collateral in exchange for lending investment securities. The purpose of the collateral is to cover potential losses that could occur in the event that the borrower cannot meet its contractual obligation. The lending agent may reinvest collateral from securities lending transactions according to agreed parameters. For futures contracts, interest rate swaps and credit default swaps, the program calls for each participating fund to pledge collateral for initial and variation margin by contract. For forward currency contracts, the program calls for each participating fund to either receive or pledge collateral based on the net gain or loss on unsettled forward currency contracts by counterparty. For future delivery contracts, the program calls for each participating fund to either receive or pledge collateral based on the net gain or loss on unsettled contracts by certain counterparties. The purpose of the collateral is to cover potential losses that could occur in the event that either party cannot meet its contractual obligation.Non-cash collateral pledged by each participating fund, if any, is disclosed in each fund’s investment portfolio, and cash collateral pledged by each participating fund, if any, is held in a segregated account with the fund’s custodian, which is reflected as pledged cash in each fund’s statement of assets and liabilities.
Rights of offset — Funds that hold forward currency contracts have enforceable master netting agreements with certain counterparties, where amounts payable by each party to the other in the same currency (with the same settlement date and with the same counter-party) are settled net of each party’s payment obligation. If an early termination date occurs under these agreements following an event of default or termination event, all obligations of each party to its counterparty are settled net through a single payment in a single currency(“close-out netting“). For financial reporting purposes, the funds do not offset financial assets and financial liabilities that are subject to these master netting arrangements in the statements of assets and liabilities.
The following tables present each fund’s forward currency contracts by counterparty that are subject to master netting agreements but that are not offset in the funds’ statements of assets and liabilities. The net amount column shows the impact of offsetting on the funds’ statement of assets and liabilities as of December 31, 2018, ifclose-out netting was exercised (dollars in thousands):
International Fund
Gross amounts not offset in the statement of assets and liabilities and subject to a master netting agreement | ||||||||||||||||||||
Counterparty | Gross amounts recognized in the statement of assets and liabilities | Available to offset | Non-cash collateral* | Cash collateral | Net amount | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Goldman Sachs | $ | 525 | $ | — | $ | — | $ | (330 | ) | $ | 195 |
New World Fund
Gross amounts not offset in the statement of assets and liabilities and subject to a master netting agreement | ||||||||||||||||||||
Counterparty | Gross amounts recognized in the statement of assets and liabilities | Available to offset | Non-cash collateral* | Cash collateral | Net amount | |||||||||||||||
Assets: | ||||||||||||||||||||
Citibank | $ | 37 | $ | (28 | ) | $ | — | $ | — | $ | 9 | |||||||||
Goldman Sachs | 82 | — | — | (82 | ) | — | ||||||||||||||
HSBC Bank | 85 | (23 | ) | — | — | 62 | ||||||||||||||
JPMorgan Chase | 128 | (2 | ) | (126 | ) | — | — | |||||||||||||
Morgan Stanley | 24 | — | — | — | 24 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 356 | $ | (53 | ) | $ | (126 | ) | $ | (82 | ) | $ | 95 | |||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities: | ||||||||||||||||||||
Citibank | $ | 28 | $ | (28 | ) | $ | — | $ | — | $ | — | |||||||||
HSBC Bank | 23 | (23 | ) | — | — | — | ||||||||||||||
JPMorgan Chase | 2 | (2 | ) | — | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 53 | $ | (53 | ) | $ | — | $ | — | $ | — | |||||||||
|
|
|
|
|
|
|
|
|
|
See end of tables for footnote.
American Funds Insurance Series 169
Table of Contents
Global Growth and Income Fund
Gross amounts not offset in the statement of assets and liabilities and subject to a master netting agreement | ||||||||||||||||||||
Counterparty | Gross amounts recognized in the statement of assets and liabilities | Available to offset | Non-cash collateral* | Cash collateral | Net amount | |||||||||||||||
Assets: | ||||||||||||||||||||
Citibank | $ | 351 | $ | — | $ | — | $ | (280 | ) | $ | 71 |
Global Balanced Fund
Gross amounts not offset in the statement of assets and liabilities and subject to a master netting agreement | ||||||||||||||||||||
Counterparty | Gross amounts recognized in the statement of assets and liabilities | Available to offset | Non-cash collateral* | Cash collateral | Net amount | |||||||||||||||
Assets: | ||||||||||||||||||||
Citibank | $ | 42 | $ | (42 | ) | $ | — | $ | — | $ | — | |||||||||
Goldman Sachs | 44 | (9 | ) | — | — | 35 | ||||||||||||||
HSBC Bank | 26 | (18 | ) | — | — | 8 | ||||||||||||||
JPMorgan Chase | 84 | (32 | ) | — | — | 52 | ||||||||||||||
UBS AG | 18 | — | — | — | 18 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 214 | $ | (101 | ) | $ | — | $ | — | $ | 113 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities: | ||||||||||||||||||||
Bank of America, N.A. | $ | 2 | $ | — | $ | — | $ | — | $ | 2 | ||||||||||
Bank of New York Mellon | 14 | — | — | — | 14 | |||||||||||||||
Citibank | 46 | (42 | ) | — | — | 4 | ||||||||||||||
Goldman Sachs | 9 | (9 | ) | — | — | — | ||||||||||||||
HSBC Bank | 18 | (18 | ) | — | — | — | ||||||||||||||
JPMorgan Chase | 32 | (32 | ) | — | — | — | ||||||||||||||
Morgan Stanley | 11 | — | — | — | 11 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 132 | $ | (101 | ) | $ | — | $ | — | $ | 31 | |||||||||
|
|
|
|
|
|
|
|
|
|
Bond Fund
Gross amounts not offset in the statement of assets and liabilities and subject to a master netting agreement | ||||||||||||||||||||
Counterparty | Gross amounts recognized in the statement of assets and liabilities | Available to offset | Non-cash collateral* | Cash collateral | Net amount | |||||||||||||||
Assets: | ||||||||||||||||||||
Bank of America, N.A. | $ | 781 | $ | (412 | ) | $ | (369 | ) | $ | — | $ | — | ||||||||
Citibank | 443 | (443 | ) | — | — | — | ||||||||||||||
Goldman Sachs | 3,183 | (770 | ) | — | (1,460 | ) | 953 | |||||||||||||
HSBC Bank | 107 | (107 | ) | — | — | — | ||||||||||||||
JPMorgan Chase | 380 | (33 | ) | — | — | 347 | ||||||||||||||
Morgan Stanley | 247 | (247 | ) | — | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 5,141 | $ | (2,012 | ) | $ | (369 | ) | $ | (1,460 | ) | $ | 1,300 | |||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities: | ||||||||||||||||||||
Bank of America, N.A. | $ | 412 | $ | (412 | ) | $ | — | $ | — | $ | — | |||||||||
Citibank | 3,658 | (443 | ) | (2,831 | ) | — | 384 | |||||||||||||
Goldman Sachs | 770 | (770 | ) | — | — | — | ||||||||||||||
HSBC Bank | 3,431 | (107 | ) | (1,748 | ) | — | 1,576 | |||||||||||||
JPMorgan Chase | 33 | (33 | ) | — | — | — | ||||||||||||||
Morgan Stanley | 6,108 | (247 | ) | (4,788 | ) | — | 1,073 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 14,412 | $ | (2,012 | ) | $ | (9,367 | ) | $ | — | $ | 3,033 | ||||||||
|
|
|
|
|
|
|
|
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170 American Funds Insurance Series
Table of Contents
Global Bond Fund
Gross amounts not offset in the statement of assets and liabilities and subject to a master netting agreement | ||||||||||||||||||||
Counterparty | Gross amounts recognized in the statement of assets and liabilities | Available to offset | Non-cash collateral* | Cash collateral | Net amount | |||||||||||||||
Assets: | ||||||||||||||||||||
Bank of America, N.A. | $ | 307 | $ | (50 | ) | $ | (257 | ) | $ | — | $ | — | ||||||||
Citibank | 3,149 | (1,670 | ) | — | (1,479 | ) | — | |||||||||||||
Goldman Sachs | 1,928 | (304 | ) | — | (1,370 | ) | 254 | |||||||||||||
HSBC Bank | 822 | (822 | ) | — | — | — | ||||||||||||||
JPMorgan Chase | 5,495 | (1,593 | ) | (3,646 | ) | — | 256 | |||||||||||||
Morgan Stanley | 585 | (585 | ) | — | — | — | ||||||||||||||
UBS AG | 202 | — | — | — | 202 | |||||||||||||||
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Total | $ | 12,488 | $ | (5,024 | ) | $ | (3,903 | ) | $ | (2,849 | ) | $ | 712 | |||||||
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Liabilities: | ||||||||||||||||||||
Bank of America, N.A. | $ | 50 | $ | (50 | ) | $ | — | $ | — | $ | — | |||||||||
Bank of New York Mellon | 446 | — | (319 | ) | — | 127 | ||||||||||||||
Citibank | 1,670 | (1,670 | ) | — | — | — | ||||||||||||||
Goldman Sachs | 304 | (304 | ) | — | — | — | ||||||||||||||
HSBC Bank | 842 | (822 | ) | (20 | ) | — | — | |||||||||||||
JPMorgan Chase | 1,593 | (1,593 | ) | — | — | — | ||||||||||||||
Morgan Stanley | 665 | (585 | ) | — | — | 80 | ||||||||||||||
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Total | $ | 5,570 | $ | (5,024 | ) | $ | (339 | ) | $ | — | $ | 207 | ||||||||
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* | Non-cash collateral is shown on a settlement basis. |
6. Taxation and distributions
Federal income taxation — Each fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The funds are not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.
As of and during the period ended December 31, 2018, none of the funds had a liability for any unrecognized tax benefits. Each fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in their respective statements of operations. During the period, none of the funds incurred any significant interest or penalties.
Each fund’s tax returns are not subject to examination by federal, state and, if applicable,non-U.S. tax authorities after the expiration of each jurisdiction’s statute of limitations, which is generally three years after the date of filing but can be extended in certain jurisdictions.
Non-U.S. taxation — Dividend and interest income, if any, are recorded net ofnon-U.S. taxes paid. The funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. As a result of rulings from European courts, the funds filed for additional reclaims related to prior years. These reclaims are recorded when the amount is known and there are no significant uncertainties on collectability. Gains realized by the funds on the sale of securities in certain countries, if any, may be subject tonon-U.S. taxes. If applicable, the funds record an estimated deferred tax liability based on unrealized gains to provide for potentialnon-U.S. taxes payable upon the sale of these securities.
Distributions — Distributions paid to shareholders are based on each fund’s net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to different treatment for items such as currency gains and losses; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; unrealized appreciation of certain investments in securities outside the U.S.; deferred expenses; cost of investments sold; paydowns on fixed-income securities; net capital losses;non-U.S. taxes on capital gains, amortization of premiums and discounts and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the funds for financial reporting purposes.
American Funds Insurance Series 171
Table of Contents
Additional tax basis disclosures for each fund as of December 31, 2018, were as follows (dollars in thousands):
Global Growth Fund | Global Small Capitalization Fund | Growth Fund | International Fund | New World Fund | Blue Chip Income and Growth Fund | |||||||||||||||||||
Undistributed ordinary income | $ | 8,660 | $ | 49,672 | $ | 198,816 | $ | 15,101 | $ | 6,466 | $ | 36,690 | ||||||||||||
Undistributed long-term capital gains | 343,497 | 226,394 | 2,617,605 | 244,466 | 127,685 | 688,634 | ||||||||||||||||||
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Gross unrealized appreciation on investments | 1,604,496 | 696,725 | 7,325,355 | 1,447,585 | 450,625 | 1,466,280 | ||||||||||||||||||
Gross unrealized depreciation on investments | (343,672 | ) | (384,458 | ) | (869,582 | ) | (1,024,206 | ) | (275,197 | ) | (755,225 | ) | ||||||||||||
Net unrealized (depreciation) appreciation on investments | 1,260,824 | 312,267 | 6,455,773 | 423,379 | 175,428 | 711,055 | ||||||||||||||||||
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Cost of investments | 4,226,092 | 3,337,191 | 16,951,703 | 8,572,537 | 2,824,343 | 7,306,978 | ||||||||||||||||||
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Reclassification from (to) total distributable earnings/accumulated loss to (from) capital paid in on shares of beneficial interest | — | — | — | (1 | ) | — | — | |||||||||||||||||
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Global Growth and Income Fund | Growth- Income Fund | International Growth and Income Fund | Capital Income Builder | Asset Allocation Fund | Global Balanced Fund | |||||||||||||||||||
Undistributed ordinary income | $ | 6,636 | $ | 252,809 | $ | 21,126 | $ | 1,595 | $ | 110,523 | $ | 541 | ||||||||||||
Undistributed long-term capital gains | 100,790 | 3,204,751 | — | — | 1,278,077 | 353 | ||||||||||||||||||
Capital loss carryforward* | — | — | — | (13,776 | ) | — | — | |||||||||||||||||
Capital loss carryforward utilized | — | — | 4,708 | — | — | — | ||||||||||||||||||
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Gross unrealized appreciation on investments | 301,662 | 6,581,607 | 116,642 | 32,592 | 4,196,275 | 44,069 | ||||||||||||||||||
Gross unrealized depreciation on investments | (116,841 | ) | (2,100,241 | ) | (148,050 | ) | (55,480 | ) | (1,720,590 | ) | (20,622 | ) | ||||||||||||
Net unrealized (depreciation) appreciation on investments | 184,821 | 4,481,366 | (31,408 | ) | (22,888 | ) | 2,475,685 | 23,447 | ||||||||||||||||
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Cost of investments | 1,627,461 | 25,359,635 | 1,364,854 | 703,065 | 20,793,720 | 345,242 | ||||||||||||||||||
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Reclassification from (to) total distributable earnings/accumulated loss to (from) capital paid in on shares of beneficial interest | — | (1 | ) | — | — | — | — | |||||||||||||||||
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Bond Fund | Global Bond Fund | High-Income Bond Fund | Mortgage Fund | Ultra-Short Bond Fund | U.S. Government/ AAA-Rated Securities Fund | |||||||||||||||||||
Undistributed ordinary income | $ | 56,980 | $ | 15,875 | $ | 15,462 | $ | 1,266 | $ | 999 | $ | 11,344 | ||||||||||||
Capital loss carryforward* | (159,206 | ) | (3,784 | ) | (160,099 | ) | (6,175 | ) | — | (52,033 | ) | |||||||||||||
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Gross unrealized appreciation on investments | 101,569 | 34,171 | — | 4,698 | 6 | 51,575 | ||||||||||||||||||
Gross unrealized depreciation on investments | (219,353 | ) | (80,326 | ) | (114,581 | ) | (4,505 | ) | (14 | ) | (47,613 | ) | ||||||||||||
Net unrealized (depreciation) appreciation on investments | (117,784 | ) | (46,155 | ) | (114,581 | ) | 193 | (8 | ) | 3,962 | ||||||||||||||
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Cost of investments | 11,073,859 | 2,180,987 | 1,301,010 | 346,647 | 306,754 | 3,153,546 | ||||||||||||||||||
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Reclassification from (to) total distributable earnings/accumulated loss to (from) capital paid in on shares of beneficial interest | — | (1 | ) | — | — | — | — | |||||||||||||||||
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172 American Funds Insurance Series
Table of Contents
Managed Risk Growth Fund | Managed Risk International Fund | Managed Risk Blue Chip Income and Growth Fund | Managed Risk Growth- Income Fund | Managed Risk Asset Allocation Fund | ||||||||||||||||
Undistributed ordinary income | $ | 2,543 | $ | 2,983 | $ | 5,577 | $ | 6,359 | $ | 62,616 | ||||||||||
Undistributed long-term capital gains | 26,579 | 4,809 | 17,833 | 16,511 | 115,113 | |||||||||||||||
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Gross unrealized appreciation on investments | 10 | 297 | — | 884 | 49 | |||||||||||||||
Gross unrealized depreciation on investments | (12,447 | ) | (14,600 | ) | (26,939 | ) | (27,155 | ) | (61,453 | ) | ||||||||||
Net unrealized (depreciation) appreciation on investments | (12,437 | ) | (14,303 | ) | (26,939 | ) | (26,271 | ) | (61,404 | ) | ||||||||||
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Cost of investments | 354,269 | 163,484 | 362,023 | 1,897,770 | 2,593,652 | |||||||||||||||
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* | Capital loss carryforwards will be used to offset any capital gains realized by the fund in future years. The fund will not make distributions from capital gains while a capital loss carryforward remains. |
Distributions paid by each fund were characterized for tax purposes as follows (dollars in thousands):
Global Growth Fund
Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 28,611 | $ | 134,884 | $ | 163,495 | $ | 16,830 | $ | 55,298 | $ | 72,128 | ||||||||||||
Class 1A* | 47 | 273 | 320 | 15 | 16 | 31 | ||||||||||||||||||
Class 2 | 41,238 | 251,323 | 292,561 | 24,835 | 114,893 | 139,728 | ||||||||||||||||||
Class 4 | 2,414 | 16,024 | 18,438 | 1,062 | 3,889 | 4,951 | ||||||||||||||||||
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Total | $ | 72,310 | $ | 402,504 | $ | 474,814 | $ | 42,742 | $ | 174,096 | $ | 216,838 | ||||||||||||
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Global Small Capitalization Fund
Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 21,329 | $ | 55,968 | $ | 77,297 | $ | 10,151 | $ | — | $ | 10,151 | ||||||||||||
Class 1A* | 4 | 12 | 16 | 1 | — | 1 | ||||||||||||||||||
Class 2 | 26,294 | 86,037 | 112,331 | 10,597 | — | 10,597 | ||||||||||||||||||
Class 4 | 1,456 | 5,035 | 6,491 | 270 | — | 270 | ||||||||||||||||||
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Total | $ | 49,083 | $ | 147,052 | $ | 196,135 | $ | 21,019 | $ | — | $ | 21,019 | ||||||||||||
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Growth Fund
Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 88,940 | $ | 792,865 | $ | 881,805 | $ | 75,247 | $ | 713,987 | $ | 789,234 | ||||||||||||
Class 1A* | 76 | 634 | 710 | 15 | 63 | 78 | ||||||||||||||||||
Class 2 | 117,331 | 1,515,757 | 1,633,088 | 110,909 | 1,409,266 | 1,520,175 | ||||||||||||||||||
Class 3 | 1,723 | 20,248 | 21,971 | 1,601 | 18,484 | 20,085 | ||||||||||||||||||
Class 4 | 6,414 | 104,527 | 110,941 | 4,893 | 53,128 | 58,021 | ||||||||||||||||||
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Total | $ | 214,484 | $ | 2,434,031 | $ | 2,648,515 | $ | 192,665 | $ | 2,194,928 | $ | 2,387,593 | ||||||||||||
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See end of tables for footnotes.
American Funds Insurance Series 173
Table of Contents
International Fund
Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 174,418 | $ | 165,915 | $ | 340,333 | $ | 70,384 | $ | 49,783 | $ | 120,167 | ||||||||||||
Class 1A* | 156 | 140 | 296 | 17 | 3 | 20 | ||||||||||||||||||
Class 2 | 136,977 | 146,986 | 283,963 | 53,513 | 46,642 | 100,155 | ||||||||||||||||||
Class 3 | 887 | 970 | 1,857 | 396 | 331 | 727 | ||||||||||||||||||
Class 4 | 9,465 | 10,556 | 20,021 | 3,025 | 1,066 | 4,091 | ||||||||||||||||||
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Total | $ | 321,903 | $ | 324,567 | $ | 646,470 | $ | 127,335 | $ | 97,825 | $ | 225,160 | ||||||||||||
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New World Fund
Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 21,450 | $ | 54,023 | $ | 75,473 | $ | 21,960 | $ | — | $ | 21,960 | ||||||||||||
Class 1A* | 24 | 50 | 74 | 6 | — | 6 | ||||||||||||||||||
Class 2 | 8,194 | 26,593 | 34,787 | 9,149 | — | 9,149 | ||||||||||||||||||
Class 4 | 3,419 | 12,659 | 16,078 | 3,016 | — | 3,016 | ||||||||||||||||||
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Total | $ | 33,087 | $ | 93,325 | $ | 126,412 | $ | 34,131 | $ | — | $ | 34,131 | ||||||||||||
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Blue Chip Income and Growth Fund
Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 232,769 | $ | 299,947 | $ | 532,716 | $ | 140,306 | $ | 170,748 | $ | 311,054 | ||||||||||||
Class 1A* | 120 | 135 | 255 | 12 | 5 | 17 | ||||||||||||||||||
Class 2 | 134,358 | 186,318 | 320,676 | 82,680 | 113,013 | 195,693 | ||||||||||||||||||
Class 4 | 13,348 | 16,620 | 29,968 | 4,917 | 5,605 | 10,522 | ||||||||||||||||||
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Total | $ | 380,595 | $ | 503,020 | $ | 883,615 | $ | 227,915 | $ | 289,371 | $ | 517,286 | ||||||||||||
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Global Growth and Income Fund
Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 16,289 | $ | 31,541 | $ | 47,830 | $ | 10,516 | $ | 7,109 | $ | 17,625 | ||||||||||||
Class 1A* | 28 | 53 | 81 | 2 | — | 2 | ||||||||||||||||||
Class 2 | 40,436 | 90,173 | 130,609 | 30,799 | 26,178 | 56,977 | ||||||||||||||||||
Class 4 | 2,682 | 5,789 | 8,471 | 1,478 | 405 | 1,883 | ||||||||||||||||||
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Total | $ | 59,435 | $ | 127,556 | $ | 186,991 | $ | 42,795 | $ | 33,692 | $ | 76,487 | ||||||||||||
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174 American Funds Insurance Series
Table of Contents
Growth-Income Fund
Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 341,172 | $ | 1,049,641 | $ | 1,390,813 | $ | 250,221 | $ | 884,958 | $ | 1,135,179 | ||||||||||||
Class 1A* | 124 | 344 | 468 | 24 | 16 | 40 | ||||||||||||||||||
Class 2 | 241,470 | 886,942 | 1,128,412 | 195,450 | 853,292 | 1,048,742 | ||||||||||||||||||
Class 3 | 2,907 | 10,337 | 13,244 | 2,421 | 10,140 | 12,561 | ||||||||||||||||||
Class 4 | 15,471 | 58,501 | 73,972 | 9,973 | 36,513 | 46,486 | ||||||||||||||||||
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Total | $ | 601,144 | $ | 2,005,765 | $ | 2,606,909 | $ | 458,089 | $ | 1,784,919 | $ | 2,243,008 | ||||||||||||
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International Growth and Income Fund
Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 28,476 | $ | — | $ | 28,476 | $ | 25,860 | $ | — | $ | 25,860 | ||||||||||||
Class 1A* | 44 | — | 44 | 14 | — | 14 | ||||||||||||||||||
Class 2 | 5,865 | — | 5,865 | 5,714 | — | 5,714 | ||||||||||||||||||
Class 4 | 1,597 | — | 1,597 | 1,184 | — | 1,184 | ||||||||||||||||||
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Total | $ | 35,982 | $ | — | $ | 35,982 | $ | 32,772 | $ | — | $ | 32,772 | ||||||||||||
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Capital Income Builder
Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 9,421 | $ | 617 | $ | 10,038 | $ | 6,303 | $ | — | $ | 6,303 | ||||||||||||
Class 1A* | 66 | 3 | 69 | 8 | — | 8 | ||||||||||||||||||
Class 2 | 90 | 6 | 96 | 23 | — | 23 | ||||||||||||||||||
Class 4 | 9,550 | 762 | 10,312 | 7,676 | — | 7,676 | ||||||||||||||||||
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Total | $ | 19,127 | $ | 1,388 | $ | 20,515 | $ | 14,010 | $ | — | $ | 14,010 | ||||||||||||
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Asset Allocation Fund
Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 386,982 | $ | 666,856 | $ | 1,053,838 | $ | 287,347 | $ | 666,425 | $ | 953,772 | ||||||||||||
Class 1A* | 147 | 263 | 410 | 50 | 70 | 120 | ||||||||||||||||||
Class 2 | 103,332 | 210,133 | 313,465 | 84,847 | 241,077 | 325,924 | ||||||||||||||||||
Class 3 | 686 | 1,413 | 2,099 | 601 | 1,646 | 2,247 | ||||||||||||||||||
Class 4 | 69,096 | 148,867 | 217,963 | 47,458 | 145,207 | 192,665 | ||||||||||||||||||
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Total | $ | 560,243 | $ | 1,027,532 | $ | 1,587,775 | $ | 420,303 | $ | 1,054,425 | $ | 1,474,728 | ||||||||||||
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See end of tables for footnotes.
American Funds Insurance Series 175
Table of Contents
Global Balanced Fund
Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 1,808 | $ | 1,346 | $ | 3,154 | $ | 1,298 | $ | 2,309 | $ | 3,607 | ||||||||||||
Class 1A* | 30 | 25 | 55 | 3 | 5 | 8 | ||||||||||||||||||
Class 2 | 2,555 | 2,290 | 4,845 | 2,516 | 5,414 | 7,930 | ||||||||||||||||||
Class 4 | 804 | 842 | 1,646 | 582 | 1,195 | 1,777 | ||||||||||||||||||
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Total | $ | 5,197 | $ | 4,503 | $ | 9,700 | $ | 4,399 | $ | 8,923 | $ | 13,322 | ||||||||||||
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Bond Fund
Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 156,337 | $ | 8,915 | $ | 165,252 | $ | 211,473 | $ | 25,594 | $ | 237,067 | ||||||||||||
Class 1A* | 76 | 4 | 80 | 19 | 1 | 20 | ||||||||||||||||||
Class 2 | 88,266 | 5,217 | 93,483 | 119,175 | 15,280 | 134,455 | ||||||||||||||||||
Class 4 | 8,153 | 453 | 8,606 | 5,958 | 441 | 6,399 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 252,832 | $ | 14,589 | $ | 267,421 | $ | 336,625 | $ | 41,316 | $ | 377,941 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Global Bond Fund
Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 25,210 | $ | 3,256 | $ | 28,466 | $ | 14,181 | $ | 103 | $ | 14,284 | ||||||||||||
Class 1A* | 9 | 1 | 10 | — | † | — | † | — | † | |||||||||||||||
Class 2 | 23,308 | 3,412 | 26,720 | 11,033 | 99 | 11,132 | ||||||||||||||||||
Class 4 | 816 | 118 | 934 | 196 | 1 | 197 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 49,343 | $ | 6,787 | $ | 56,130 | $ | 25,410 | $ | 203 | $ | 25,613 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
High-Income Bond Fund
Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 34,114 | $ | — | $ | 34,114 | $ | 43,976 | $ | — | $ | 43,976 | ||||||||||||
Class 1A* | 40 | — | 40 | 12 | — | 12 | ||||||||||||||||||
Class 2 | 43,382 | — | 43,382 | 51,640 | — | 51,640 | ||||||||||||||||||
Class 3 | 664 | — | 664 | 805 | — | 805 | ||||||||||||||||||
Class 4 | 1,733 | — | 1,733 | 1,981 | — | 1,981 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 79,933 | $ | — | $ | 79,933 | $ | 98,414 | $ | — | $ | 98,414 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Fund
Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 4,938 | $ | — | $ | 4,938 | $ | 5,106 | $ | 1,186 | $ | 6,292 | ||||||||||||
Class 1A* | 15 | — | 15 | 2 | — | † | 2 | |||||||||||||||||
Class 2 | 1,128 | — | 1,128 | 1,025 | 262 | 1,287 | ||||||||||||||||||
Class 4 | 424 | — | 424 | 165 | 39 | 204 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 6,505 | $ | — | $ | 6,505 | $ | 6,298 | $ | 1,487 | $ | 7,785 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
176 American Funds Insurance Series
Table of Contents
Ultra-Short Bond Fund
Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 561 | $ | — | $ | 561 | $ | 184 | $ | — | $ | 184 | ||||||||||||
Class 1A* | — | — | — | — | — | — | ||||||||||||||||||
Class 2 | 2,762 | — | 2,762 | 697 | — | 697 | ||||||||||||||||||
Class 3 | 41 | — | 41 | 15 | — | 15 | ||||||||||||||||||
Class 4 | 153 | — | 153 | 10 | — | 10 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 3,517 | $ | — | $ | 3,517 | $ | 906 | $ | — | $ | 906 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
U.S.Government/AAA-Rated Securities Fund
Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 29,881 | $ | — | $ | 29,881 | $ | 23,690 | $ | — | $ | 23,690 | ||||||||||||
Class 1A* | 29 | — | 29 | 1 | — | 1 | ||||||||||||||||||
Class 2 | 24,431 | — | 24,431 | 19,498 | — | 19,498 | ||||||||||||||||||
Class 3 | 165 | — | 165 | 141 | — | 141 | ||||||||||||||||||
Class 4 | 1,313 | — | 1,313 | 663 | — | 663 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 55,819 | $ | — | $ | 55,819 | $ | 43,993 | $ | — | $ | 43,993 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Managed Risk Growth Fund
Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class P1 | $ | 14 | $ | 135 | $ | 149 | $ | 7 | $ | 22 | $ | 29 | ||||||||||||
Class P2 | 1,397 | 20,395 | 21,792 | 727 | 4,120 | 4,847 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 1,411 | $ | 20,530 | $ | 21,941 | $ | 734 | $ | 4,142 | $ | 4,876 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Managed Risk International Fund
Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class P1 | $ | 8 | $ | 1 | $ | 9 | $ | 1 | $ | 1 | $ | 2 | ||||||||||||
Class P2 | 2,681 | 738 | 3,419 | 899 | 1,402 | 2,301 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 2,689 | $ | 739 | $ | 3,428 | $ | 900 | $ | 1,403 | $ | 2,303 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Managed Risk Blue Chip Income and Growth Fund
Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class P1 | $ | 15 | $ | 7 | $ | 22 | $ | 4 | $ | 3 | $ | 7 | ||||||||||||
Class P2 | 11,391 | 12,112 | 23,503 | 5,157 | 5,565 | 10,722 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 11,406 | $ | 12,119 | $ | 23,525 | $ | 5,161 | $ | 5,568 | $ | 10,729 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
See end of tables for footnotes.
American Funds Insurance Series 177
Table of Contents
Managed Risk Growth-Income Fund
Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class P1 | $ | 42 | $ | 122 | $ | 164 | $ | 19 | $ | 73 | $ | 92 | ||||||||||||
Class P2 | 2,374 | 9,814 | 12,188 | 1,848 | 7,653 | 9,501 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 2,416 | $ | 9,936 | $ | 12,352 | $ | 1,867 | $ | 7,726 | $ | 9,593 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Managed Risk Asset Allocation Fund
Year ended December 31, 2018 | Year ended December 31, 2017 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class P1 | $ | 31,787 | $ | 66,960 | $ | 98,747 | $ | 11,453 | $ | 13,811 | $ | 25,264 | ||||||||||||
Class P2 | 36,816 | 107,405 | 144,221 | 20,269 | 24,931 | 45,200 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 68,603 | $ | 174,365 | $ | 242,968 | $ | 31,722 | $ | 38,742 | $ | 70,464 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
* | Class 1A shares began investment operations on January 6, 2017. |
† | Amount less than one thousand. |
178 American Funds Insurance Series
Table of Contents
7. Fees and transactions
CRMC, the series’ investment adviser, is the parent company of American Funds Distributors,® Inc. (“AFD”), the distributor of the series’ shares, and American Funds Service Company® (“AFS”), the series’ transfer agent. CRMC, AFD and AFS are considered related parties to the series.
Investment advisory services — The series has an investment advisory and service agreement with CRMC that provides for monthly fees accrued daily. These fees are based on annual rates that generally decrease as net asset levels increase. CRMC receives investment advisory fees from the underlying funds held by the managed risk funds. These fees are included in the net effective expense ratios that are provided as additional information in the financial highlights tables. Subadvisory fees for the managed risk funds are paid by CRMC to Milliman FRM. The managed risk funds are not responsible for paying any subadvisory fees.
Investment advisory services waivers — On December 4, 2017, the series board of trustees approved amended agreements effective February 1, 2018, decreasing the annual rate to 0.580% on daily net assets in excess of $4 billion for New World Fund, decreasing the annual rate to 0.350% on daily net assets in excess of $10.5 billion for Blue Chip Income and Growth Fund, and decreasing the annual rate to 0.320% on daily net assets in excess of $13 billion for Bond Fund. During the year ended December 31, 2018, CRMC voluntarily reduced the investment advisory services fees to a proposed rate of 0.500% on daily net assets in excess of $1.5 billion for International Growth and Income Fund and a proposed rate of 0.450% and 0.410% on daily net assets in excess of $600 million and $1 billion, respectively, for Capital Income Builder. CRMC is also waiving a portion of its investment advisory services fees for each of the managed risk funds. Investment advisory services fees are presented in each fund’s statement of operations gross of the waivers from CRMC. For the year ended December 31, 2018, total investment advisory services fees waived by CRMC were $2,789,000.
The range of rates, net asset levels and the current annualized rates of average daily net assets for each fund before and after any investment advisory services waivers (if applicable), are as follows:
Rates | Net asset level (in billions) | For the 2018, | For the year 2018, | |||||||||||||||||||||
Fund | Beginning with | Ending with | Up to | In excess of | before waiver | after waiver | ||||||||||||||||||
Global Growth Fund | .690 | % | .460 | % | $ | .6 | $ | 5.0 | .516 | % | .516 | % | ||||||||||||
Global Small Capitalization Fund | .800 | .635 | .6 | 5.0 | .696 | .696 | ||||||||||||||||||
Growth Fund | .500 | .280 | .6 | 34.0 | .323 | .323 | ||||||||||||||||||
International Fund | .690 | .430 | .5 | 21.0 | .492 | .492 | ||||||||||||||||||
New World Fund | .850 | .580 | .5 | 4.0 | .701 | .701 | ||||||||||||||||||
Blue Chip Income and Growth Fund | .500 | .350 | .6 | 10.5 | .389 | .389 | ||||||||||||||||||
Global Growth and Income Fund | .690 | .480 | .6 | 3.0 | .593 | .593 | ||||||||||||||||||
Growth-Income Fund | .500 | .219 | .6 | 34.0 | .258 | .258 | ||||||||||||||||||
International Growth and Income Fund | .690 | .530 | .5 | 1.0 | .606 | .606 | ||||||||||||||||||
Capital Income Builder | .500 | all | .500 | .496 | ||||||||||||||||||||
Asset Allocation Fund | .500 | .240 | .6 | 21.0 | .266 | .266 | ||||||||||||||||||
Global Balanced Fund | .660 | .510 | .5 | 1.0 | .660 | .660 | ||||||||||||||||||
Bond Fund | .480 | .320 | .6 | 13.0 | .363 | .363 | ||||||||||||||||||
Global Bond Fund | .570 | .450 | 1.0 | 3.0 | .531 | .531 | ||||||||||||||||||
High-Income Bond Fund | .500 | .420 | .6 | 2.0 | .472 | .472 | ||||||||||||||||||
Mortgage Fund | .420 | .290 | .6 | 3.0 | .420 | .420 | ||||||||||||||||||
Ultra-Short Bond Fund | .320 | .270 | 1.0 | 2.0 | .320 | .320 | ||||||||||||||||||
U.S.Government/AAA-Rated Securities Fund | .420 | .290 | .6 | 3.0 | .339 | .339 | ||||||||||||||||||
Managed Risk Growth Fund | .150 | all | .150 | .100 | ||||||||||||||||||||
Managed Risk International Fund | .150 | all | .150 | .100 | ||||||||||||||||||||
Managed Risk Blue Chip Income and Growth Fund | .150 | all | .150 | .100 | ||||||||||||||||||||
Managed Risk Growth-Income Fund | .150 | all | .150 | .100 | ||||||||||||||||||||
Managed Risk Asset Allocation Fund | .150 | all | .150 | .100 |
American Funds Insurance Series 179
Table of Contents
Distribution services — The series has plans of distribution for all share classes except Class 1. Under the plans, the board of trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares. The plans provide for payments to pay service fees to firms that have entered into agreements with the series. These payments, based on an annualized percentage of average daily net assets, range from 0.18% to 0.50% as noted in the table below. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans.
Share class | Currently approved limits | Plan limits | ||||||
Class 1A | 0.00 | % | 0.25 | % | ||||
Class 2 | 0.25 | 0.25 | ||||||
Class 3 | 0.18 | 0.18 | ||||||
Class 4 | 0.25 | 0.25 | ||||||
Class P1 | 0.00 | 0.25 | ||||||
Class P2 | 0.25 | 0.50 |
Insurance administrative services — The series has an insurance administrative services plan for Class 1A, 4, P1 and P2 shares. Under the plan, these share classes pay 0.25% of each insurance company’s respective average daily net assets in each share class to compensate the insurance companies for services provided to their separate accounts and contractholders for which the shares of the fund are beneficially owned as underlying investments of such contractholders’ annuities. These services include, but are not limited to, maintenance, shareholder communications and transactional services. The insurance companies are not related parties to the series.
Transfer agent services — The series has a shareholder services agreement with AFS under which the funds compensate AFS for providing transfer agent services to all of the funds’ share classes. These services include recordkeeping, shareholder communications and transaction processing. In addition, the managed risk funds reimburse AFS for amounts paid to third parties for performing transfer agent services on behalf of fund shareholders.
Administrative services — The series has an administrative services agreement with CRMC under which each fund compensates CRMC for providing administrative services to all of the funds’ share classes except Class P1 and P2 shares. Administrative services are provided by CRMC to help assist third parties providingnon-distribution services to fund shareholders. These services include providing in depth information on each fund and market developments that impact fund investors. Administrative services also include, but are not limited to, coordinating, monitoring and overseeing third parties that provide services to fund shareholders. The agreement between the series and CRMC provides each fund, other than the managed risk funds, the ability to charge an administrative services fee of 0.05% of average daily net assets for all share classes. Currently all share classes pay an annual fee of 0.01% of average daily net assets (which could be increased as noted above). For the managed risk funds, CRMC receives administrative services fees of 0.01% of average daily net assets from Class 1 shares of the underlying funds for administrative services provided to the series.
Accounting and administrative services — The managed risk funds have a subadministration agreement with BNY Mellon under which the fund compensates BNY Mellon for providing accounting and administrative services to each of the managed risk funds’ share classes. These services include, but are not limited to, fund accounting (including calculation of net asset value), financial reporting and tax services. BNY Mellon is not a related party to the managed risk funds.
Class-specific expenses under the agreements described above were as follows (dollars in thousands):
Global Growth Fund |
| |||||||||||
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 211 | ||||||||
Class 1A | $ | — | $ | 10 | — | * | ||||||
Class 2 | 9,707 | Not applicable | 388 | |||||||||
Class 4 | 623 | 623 | 25 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 10,330 | $ | 633 | $ | 624 | ||||||
|
|
|
|
|
|
Global Small Capitalization Fund |
| |||||||||||
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 164 | ||||||||
Class 1A | $ | — | $ | 1 | — | * | ||||||
Class 2 | 6,093 | Not applicable | 244 | |||||||||
Class 4 | 366 | 366 | 15 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 6,459 | $ | 367 | $ | 423 | ||||||
|
|
|
|
|
|
180 American Funds Insurance Series
Table of Contents
Growth Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 864 | ||||||||
Class 1A | $ | — | $ | 17 | 1 | |||||||
Class 2 | 39,441 | Not applicable | 1,578 | |||||||||
Class 3 | 386 | Not applicable | 21 | |||||||||
Class 4 | 2,733 | 2,733 | 109 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 42,560 | $ | 2,750 | $ | 2,573 | ||||||
|
|
|
|
|
|
New World Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 196 | ||||||||
Class 1A | $ | — | $ | 4 | — | * | ||||||
Class 2 | 2,430 | Not applicable | 97 | |||||||||
Class 4 | 1,159 | 1,160 | 46 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 3,589 | $ | 1,164 | $ | 339 | ||||||
|
|
|
|
|
|
Global Growth and Income Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 51 | ||||||||
Class 1A | $ | — | $ | 2 | — | * | ||||||
Class 2 | 3,617 | Not applicable | 145 | |||||||||
Class 4 | 231 | 231 | 9 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 3,848 | $ | 233 | $ | 205 | ||||||
|
|
|
|
|
|
International Growth and Income Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 112 | ||||||||
Class 1A | $ | — | $ | 5 | — | * | ||||||
Class 2 | 662 | Not applicable | 27 | |||||||||
Class 4 | 178 | 178 | 7 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 840 | $ | 183 | $ | 146 | ||||||
|
|
|
|
|
|
International Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 510 | ||||||||
Class 1A | $ | — | $ | 10 | — | * | ||||||
Class 2 | 10,932 | Not applicable | 437 | |||||||||
Class 3 | 52 | Not applicable | 3 | |||||||||
Class 4 | 780 | 780 | 31 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 11,764 | $ | 790 | $ | 981 | ||||||
|
|
|
|
|
|
Blue Chip Income and Growth Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 544 | ||||||||
Class 1A | $ | — | $ | 6 | — | * | ||||||
Class 2 | 8,330 | Not applicable | 333 | |||||||||
Class 4 | 788 | 788 | 32 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 9,118 | $ | 794 | $ | 909 | ||||||
|
|
|
|
|
|
Growth-Income Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 1,657 | ||||||||
Class 1A | $ | — | $ | 13 | 1 | |||||||
Class 2 | 34,335 | Not applicable | 1,373 | |||||||||
Class 3 | 292 | Not applicable | 16 | |||||||||
Class 4 | 2,287 | 2,287 | 92 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 36,914 | $ | 2,300 | $ | 3,139 | ||||||
|
|
|
|
|
|
Capital Income Builder
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 29 | ||||||||
Class 1A | $ | — | $ | 6 | — | * | ||||||
Class 2 | 7 | Not applicable | 1 | |||||||||
Class 4 | 878 | 878 | 35 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 885 | $ | 884 | $ | 65 | ||||||
|
|
|
|
|
|
See end of tables for footnotes.
American Funds Insurance Series 181
Table of Contents
Asset Allocation Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 1,688 | ||||||||
Class 1A | $ | — | $ | 15 | 1 | |||||||
Class 2 | 13,103 | Not applicable | 524 | |||||||||
Class 3 | 63 | Not applicable | 3 | |||||||||
Class 4 | 9,339 | 9,339 | 374 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 22,505 | $ | 9,354 | $ | 2,590 | ||||||
|
|
|
|
|
|
Bond Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 628 | ||||||||
Class 1A | $ | — | $ | 6 | — | * | ||||||
Class 2 | 9,391 | Not applicable | 376 | |||||||||
Class 4 | 829 | 829 | 33 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 10,220 | $ | 835 | $ | 1,037 | ||||||
|
|
|
|
|
|
High-Income Bond Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 59 | ||||||||
Class 1A | $ | — | $ | 1 | — | * | ||||||
Class 2 | 1,847 | Not applicable | 74 | |||||||||
Class 3 | 21 | Not applicable | 1 | |||||||||
Class 4 | 85 | 85 | 3 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 1,953 | $ | 86 | $ | 137 | ||||||
|
|
|
|
|
|
Ultra-Short Bond Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 4 | ||||||||
Class 1A | $ | — | $ | — | — | * | ||||||
Class 2 | 599 | Not applicable | 24 | |||||||||
Class 3 | 7 | Not applicable | — | * | ||||||||
Class 4 | 37 | 37 | 2 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 643 | $ | 37 | $ | 30 | ||||||
|
|
|
|
|
|
Global Balanced Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 11 | ||||||||
Class 1A | $ | — | $ | 3 | — | * | ||||||
Class 2 | 516 | Not applicable | 21 | |||||||||
Class 4 | 164 | 164 | 6 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 680 | $ | 167 | $ | 38 | ||||||
|
|
|
|
|
|
Global Bond Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 112 | ||||||||
Class 1A | $ | — | $ | 1 | — | * | ||||||
Class 2 | 2,805 | Not applicable | 112 | |||||||||
Class 4 | 96 | 96 | 4 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 2,901 | $ | 97 | $ | 228 | ||||||
|
|
|
|
|
|
Mortgage Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 25 | ||||||||
Class 1A | $ | — | $ | 1 | — | * | ||||||
Class 2 | 151 | Not applicable | 6 | |||||||||
Class 4 | 40 | 41 | 1 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 191 | $ | 42 | $ | 32 | ||||||
|
|
|
|
|
|
U.S.Government/AAA-Rated Securities Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 151 | ||||||||
Class 1A | $ | — | $ | 2 | — | * | ||||||
Class 2 | 3,520 | Not applicable | 141 | |||||||||
Class 3 | 17 | Not applicable | 1 | |||||||||
Class 4 | 169 | 169 | 7 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 3,706 | $ | 171 | $ | 300 | ||||||
|
|
|
|
|
|
182 American Funds Insurance Series
Table of Contents
Managed Risk Growth Fund
Share class | Distribution services | Insurance administrative services | ||||||
Class P1 | Not applicable | $ | 6 | |||||
Class P2 | $ | 803 | 803 | |||||
|
|
|
| |||||
Total class-specific expenses | $ | 803 | $ | 809 | ||||
|
|
|
|
Managed Risk Blue Chip Income and Growth Fund
Share class | Distribution services | Insurance administrative services | ||||||
Class P1 | Not applicable | $ | — | * | ||||
Class P2 | $ | 883 | 883 | |||||
|
|
|
| |||||
Total class-specific expenses | $ | 883 | $ | 883 | ||||
|
|
|
|
Managed Risk Asset Allocation Fund
Share class | Distribution services | Insurance administrative services | ||||||
Class P1 | Not applicable | $ | 4,153 | |||||
Class P2 | $ | 6,862 | 6,862 | |||||
|
|
|
| |||||
Total class-specific expenses | $ | 6,862 | $ | 11,015 | ||||
|
|
|
|
Managed Risk International Fund
Share class | Distribution services | Insurance administrative services | ||||||
Class P1 | Not applicable | $ | — | * | ||||
Class P2 | $ | 389 | 389 | |||||
|
|
|
| |||||
Total class-specific expenses | $ | 389 | $ | 389 | ||||
|
|
|
|
Managed Risk Growth-Income Fund
Share class | Distribution services | Insurance administrative services | ||||||
Class P1 | Not applicable | $ | 167 | |||||
Class P2 | $ | 564 | 564 | |||||
|
|
|
| |||||
Total class-specific expenses | $ | 564 | $ | 731 | ||||
|
|
|
|
* | Amount less than one thousand. |
American Funds Insurance Series 183
Table of Contents
Trustees’ deferred compensation — Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the funds, are treated as if invested in one or more of the American Funds. These amounts represent general, unsecured liabilities of the funds and vary according to the total returns of the selected funds. Trustees’ compensation, shown on the accompanying financial statements, reflects current fees (either paid in cash or deferred) and a net increase in the value of the deferred amounts as follows (dollars in thousands):
Fund | Current fees | Increase in value of deferred amounts | Total trustees’ compensation | |||||||||
Global Growth Fund | $ | 36 | $ | 1 | $ | 37 | ||||||
Global Small Capitalization Fund | 24 | 1 | 25 | |||||||||
Growth Fund | 145 | 5 | 150 | |||||||||
International Fund | 56 | 2 | 58 | |||||||||
New World Fund | 19 | 1 | 20 | |||||||||
Blue Chip Income and Growth Fund | 51 | 2 | 53 | |||||||||
Global Growth and Income Fund | 12 | — | * | 12 | ||||||||
Growth-Income Fund | 176 | 6 | 182 | |||||||||
International Growth and Income Fund | 8 | — | * | 8 | ||||||||
Capital Income Builder | 3 | — | * | 3 | ||||||||
Asset Allocation Fund | 146 | 4 | 150 | |||||||||
Global Balanced Fund | 2 | — | * | 2 | ||||||||
Bond Fund | 59 | 2 | 61 | |||||||||
Global Bond Fund | 13 | — | * | 13 | ||||||||
High-Income Bond Fund | 8 | — | * | 8 | ||||||||
Mortgage Fund | 2 | — | * | 2 | ||||||||
Ultra-Short Bond Fund | 2 | — | * | 2 | ||||||||
U.S.Government/AAA-Rated Securities Fund | 17 | 1 | 18 | |||||||||
Managed Risk Growth Fund | 2 | — | * | 2 | ||||||||
Managed Risk International Fund | 1 | — | * | 1 | ||||||||
Managed Risk Blue Chip Income and Growth Fund | 2 | — | * | 2 | ||||||||
Managed Risk Growth-Income Fund | 1 | — | * | 1 | ||||||||
Managed Risk Asset Allocation Fund | 25 | 1 | 26 |
* | Amount less than one thousand. |
Affiliated officers and trustees — Officers and certain trustees of the series are or may be considered to be affiliated with CRMC, AFD and AFS. No affiliated officers or trustees received any compensation directly from any fund in the series.
Other expenses— The amounts of $(18,000), $(9,000) and $(1,637,000) for other expenses for Managed Risk International Fund, Managed Risk Growth-Income Fund and Managed Risk Asset Allocation Fund, respectively, are due to over accruals of prior year expenses.
Security transactions with related funds — The funds may purchase from, or sell securities to, other CRMC-managed funds (or funds managed by certain affiliates of CRMC) under procedures adopted by the fund’s board of trustees. The funds involved in such transactions are considered related by virtue of having a common investment adviser (or affiliated investment advisers), common trustees and/or common officers. When such transactions occur, each transaction is executed at the current market price of the security and no brokerage commissions or fees are paid in accordance with Rule17a-7 of the 1940 Act.
184 American Funds Insurance Series
Table of Contents
The following table presents purchase and sale transactions between each fund and related funds as of December 31, 2018 (dollars in thousands):
Fund | Purchases | Sales | ||||||
Global Growth Fund | $ | 34,488 | $ | 66,699 | ||||
Global Small Capitalization Fund | 27,363 | 116,375 | ||||||
Growth Fund | 477,334 | 479,509 | ||||||
International Fund | 147,908 | 108,039 | ||||||
New World Fund | 33,742 | 113,253 | ||||||
Blue Chip Income and Growth Fund | 110,841 | 190,265 | ||||||
Global Growth and Income Fund | 19,946 | 54,312 | ||||||
Growth-Income Fund | 391,036 | 317,478 | ||||||
International Growth and Income Fund | 32,881 | 5,821 | ||||||
Capital Income Builder | 8,337 | 2,999 | ||||||
Asset Allocation Fund | 168,410 | 394,146 | ||||||
Global Balanced Fund | 3,988 | 1,162 | ||||||
Bond Fund | 45,398 | 583,734 | ||||||
Global Bond Fund | 4,043 | 9,876 | ||||||
High-Income Bond Fund | 22,019 | 22,312 | ||||||
Mortgage Fund | — | — | ||||||
Ultra-Short Bond Fund | — | — | ||||||
U.S.Government/AAA-Rated Securities Fund | — | — | ||||||
Managed Risk Growth Fund | — | — | ||||||
Managed Risk International Fund | — | — | ||||||
Managed Risk Blue Chip Income and Growth Fund | — | — | ||||||
Managed Risk Growth-Income Fund | — | — | ||||||
Managed Risk Asset Allocation Fund | — | — |
8. Committed line of credit
Global Small Capitalization Fund, New World Fund and High-Income Bond Fund participate with other funds managed by CRMC in a $1.5 billion credit facility (the “line of credit”) to be utilized for temporary purposes to fund shareholder redemptions. Each fund has agreed to pay commitment fees on itspro-rata portion of the line of credit, which are reflected in other expenses in each fund’s statement of operations. None of the funds borrowed on this line of credit at any time during the year ended December 31, 2018.
9. Capital share transactions
Capital share transactions in the funds were as follows (dollars and shares in thousands):
Global Growth Fund
Sales1 | Reinvestments of distributions | Repurchases1 | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 318,393 | 10,738 | $ | 163,496 | 5,459 | $ | (199,573 | ) | (6,616 | ) | $ | 282,316 | 9,581 | ||||||||||||||||||
Class 1A | 4,760 | 162 | 320 | 11 | (1,942 | ) | (64 | ) | 3,138 | 109 | ||||||||||||||||||||||
Class 2 | 71,745 | 2,511 | 292,561 | 9,830 | (465,838 | ) | (15,407 | ) | (101,532 | ) | (3,066 | ) | ||||||||||||||||||||
Class 4 | 94,068 | 3,163 | 18,437 | 622 | (28,678 | ) | (983 | ) | 83,827 | 2,802 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 488,966 | 16,574 | $ | 474,814 | 15,922 | $ | (696,031 | ) | (23,070 | ) | $ | 267,749 | 9,426 | ||||||||||||||||||
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|
|
|
|
|
|
|
| |||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 202,598 | 7,210 | $ | 72,128 | 2,554 | $ | (331,323 | ) | (11,655 | ) | $ | (56,597 | ) | (1,891 | ) | ||||||||||||||||
Class 1A2 | 2,333 | 80 | 31 | 1 | (125 | ) | (4 | ) | 2,239 | 77 | ||||||||||||||||||||||
Class 2 | 55,435 | 2,042 | 139,728 | 5,015 | (563,057 | ) | (20,391 | ) | (367,894 | ) | (13,334 | ) | ||||||||||||||||||||
Class 4 | 92,931 | 3,271 | 4,951 | 178 | (11,055 | ) | (400 | ) | 86,827 | 3,049 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 353,297 | 12,603 | $ | 216,838 | 7,748 | $ | (905,560 | ) | (32,450 | ) | $ | (335,425 | ) | (12,099 | ) | ||||||||||||||||
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|
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|
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|
|
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|
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|
|
|
|
|
See end of tables for footnotes.
American Funds Insurance Series 185
Table of Contents
Global Small Capitalization Fund
Sales1 | Reinvestments of distributions | Repurchases1 | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 138,128 | 5,551 | $ | 76,990 | 2,920 | $ | (160,148 | ) | (6,253 | ) | $ | 54,970 | 2,218 | ||||||||||||||||||
Class 1A | 318 | 12 | 16 | 1 | (110 | ) | (5 | ) | 224 | 8 | ||||||||||||||||||||||
Class 2 | 47,093 | 2,015 | 112,331 | 4,349 | (309,646 | ) | (12,397 | ) | (150,222 | ) | (6,033 | ) | ||||||||||||||||||||
Class 4 | 56,525 | 2,282 | 6,491 | 249 | (17,067 | ) | (693 | ) | 45,949 | 1,838 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 242,064 | 9,860 | $ | 195,828 | 7,519 | $ | (486,971 | ) | (19,348 | ) | $ | (49,079 | ) | (1,969 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 128,448 | 5,651 | $ | 10,108 | 429 | $ | (396,272 | ) | (17,174 | ) | $ | (257,716 | ) | (11,094 | ) | ||||||||||||||||
Class 1A2 | 169 | 8 | 1 | — | 3 | — | 3 | — | 3 | 170 | 8 | |||||||||||||||||||||
Class 2 | 27,876 | 1,267 | 10,597 | 472 | (343,593 | ) | (15,314 | ) | (305,120 | ) | (13,575 | ) | ||||||||||||||||||||
Class 4 | 73,197 | 3,126 | 270 | 12 | (5,899 | ) | (258 | ) | 67,568 | 2,880 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 229,690 | 10,052 | $ | 20,976 | 913 | $ | (745,764 | ) | (32,746 | ) | $ | (495,098 | ) | (21,781 | ) | ||||||||||||||||
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| |||||||||||||||||
Growth Fund |
| |||||||||||||||||||||||||||||||
Sales1 | Reinvestments of distributions | Repurchases1 | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 1,574,676 | 19,928 | $ | 879,237 | 11,221 | $ | (1,126,624 | ) | (14,082 | ) | $ | 1,327,289 | 17,067 | ||||||||||||||||||
Class 1A | 8,204 | 103 | 710 | 9 | (563 | ) | (7 | ) | 8,351 | 105 | ||||||||||||||||||||||
Class 2 | 292,909 | 3,756 | 1,633,088 | 20,970 | (2,436,432 | ) | (30,703 | ) | (510,435 | ) | (5,977 | ) | ||||||||||||||||||||
Class 3 | 1,809 | 22 | 21,971 | 279 | (27,844 | ) | (348 | ) | (4,064 | ) | (47 | ) | ||||||||||||||||||||
Class 4 | 274,892 | 3,534 | 110,941 | 1,441 | (135,865 | ) | (1,758 | ) | 249,968 | 3,217 | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 2,152,490 | 27,343 | $ | 2,645,947 | 33,920 | $ | (3,727,328 | ) | (46,898 | ) | $ | 1,071,109 | 14,365 | ||||||||||||||||||
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| |||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 505,734 | 6,906 | $ | 786,807 | 11,094 | $ | (1,258,545 | ) | (16,930 | ) | $ | 33,996 | 1,070 | ||||||||||||||||||
Class 1A2 | 2,708 | 36 | 78 | 1 | (94 | ) | (1 | ) | 2,692 | 36 | ||||||||||||||||||||||
Class 2 | 206,092 | 2,819 | 1,520,175 | 21,621 | (2,205,078 | ) | (30,135 | ) | (478,811 | ) | (5,695 | ) | ||||||||||||||||||||
Class 3 | 468 | 6 | 20,085 | 282 | (21,851 | ) | (295 | ) | (1,298 | ) | (7 | ) | ||||||||||||||||||||
Class 4 | 407,312 | 5,509 | 58,020 | 832 | (56,254 | ) | (776 | ) | 409,078 | 5,565 | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 1,122,314 | 15,276 | $ | 2,385,165 | 33,830 | $ | (3,541,822 | ) | (48,137 | ) | $ | (34,343) | 969 | ||||||||||||||||||
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186 American Funds Insurance Series
Table of Contents
International Fund
Sales1 | Reinvestments of distributions | Repurchases1 | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 987,191 | 47,885 | $ | 339,738 | 16,682 | $ | (479,241) | (23,102 | ) | $ | 847,688 | 41,465 | |||||||||||||||||||
Class 1A | 4,302 | 204 | 296 | 14 | (269 | ) | (14 | ) | 4,329 | 204 | ||||||||||||||||||||||
Class 2 | 481,518 | 22,952 | 283,963 | 13,909 | (441,465 | ) | (21,109 | ) | 324,016 | 15,752 | ||||||||||||||||||||||
Class 3 | 506 | 23 | 1,857 | 91 | (4,389 | ) | (209 | ) | (2,026 | ) | (95 | ) | ||||||||||||||||||||
Class 4 | 96,985 | 4,701 | 20,021 | 990 | (45,627 | ) | (2,234 | ) | 71,379 | 3,457 | ||||||||||||||||||||||
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|
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|
|
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|
|
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|
|
|
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|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 1,570,502 | 75,765 | $ | 645,875 | 31,686 | $ | (970,991) | (46,668 | ) | $ | 1,245,386 | 60,783 | |||||||||||||||||||
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| |||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 760,186 | 38,348 | $ | 119,937 | 5,881 | $ | (613,463) | (30,471 | ) | $ | 266,660 | 13,758 | |||||||||||||||||||
Class 1A2 | 1,638 | 80 | 20 | 1 | (119 | ) | (5 | ) | 1,539 | 76 | ||||||||||||||||||||||
Class 2 | 174,876 | 8,941 | 100,155 | 4,954 | (605,647 | ) | (30,845 | ) | (330,616 | ) | (16,950 | ) | ||||||||||||||||||||
Class 3 | 274 | 13 | 726 | 36 | (3,886 | ) | (197 | ) | (2,886 | ) | (148 | ) | ||||||||||||||||||||
Class 4 | 209,217 | 10,089 | 4,092 | 200 | (14,987 | ) | (752 | ) | 198,322 | 9,537 | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 1,146,191 | 57,471 | $ | 224,930 | 11,072 | $ | (1,238,102 | ) | (62,270 | ) | $ | 133,019 | 6,273 | ||||||||||||||||||
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New World Fund |
| |||||||||||||||||||||||||||||||
Sales1 | Reinvestments of distributions | Repurchases1 | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 169,684 | 6,947 | $ | 75,282 | 3,139 | $ | (240,756 | ) | (10,008 | ) | $ | 4,210 | 78 | ||||||||||||||||||
Class 1A | 2,616 | 108 | 73 | 3 | (572 | ) | (24 | ) | 2,117 | 87 | ||||||||||||||||||||||
Class 2 | 70,536 | 2,954 | 34,787 | 1,456 | (144,167 | ) | (5,934 | ) | (38,844 | ) | (1,524 | ) | ||||||||||||||||||||
Class 4 | 140,212 | 5,922 | 16,079 | 674 | (31,201 | ) | (1,315 | ) | 125,090 | 5,281 | ||||||||||||||||||||||
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|
|
|
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| |||||||||||||||||
Total net increase (decrease) | $ | 383,048 | 15,931 | $ | 126,221 | 5,272 | $ | (416,696 | ) | (17,281 | ) | $ | 92,573 | 3,922 | ||||||||||||||||||
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Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 280,518 | 12,105 | $ | 21,909 | 893 | $ | (475,480 | ) | (20,394 | ) | $ | (173,053 | ) | (7,396 | ) | ||||||||||||||||
Class 1A2 | 629 | 27 | 6 | — | 3 | (13 | ) | (1 | ) | 622 | 26 | |||||||||||||||||||||
Class 2 | 143,361 | 6,559 | 9,149 | 376 | (254,737 | ) | (11,445 | ) | (102,227 | ) | (4,510 | ) | ||||||||||||||||||||
Class 4 | 127,556 | 5,560 | 3,016 | 124 | (20,431 | ) | (895 | ) | 110,141 | 4,789 | ||||||||||||||||||||||
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| |||||||||||||||||
Total net increase (decrease) | $ | 552,064 | 24,251 | $ | 34,080 | 1,393 | $ | (750,661 | ) | (32,735 | ) | $ | (164,517 | ) | (7,091 | ) | ||||||||||||||||
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See end of tables for footnotes.
American Funds Insurance Series 187
Table of Contents
Blue Chip Income and Growth Fund
Sales1 | Reinvestments of distributions | Repurchases1 | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 189,059 | 13,527 | $ | 528,528 | 38,135 | $ | (524,399 | ) | (36,270 | ) | $ | 193,188 | 15,392 | ||||||||||||||||||
Class 1A | 2,957 | 203 | 254 | 19 | (106 | ) | (8 | ) | 3,105 | 214 | ||||||||||||||||||||||
Class 2 | 34,615 | 2,528 | 320,676 | 23,381 | (472,476 | ) | (32,985 | ) | (117,185 | ) | (7,076 | ) | ||||||||||||||||||||
Class 4 | 190,787 | 13,641 | 29,968 | 2,200 | (33,879 | ) | (2,399 | ) | 186,876 | 13,442 | ||||||||||||||||||||||
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Total net increase (decrease) | $ | 417,418 | 29,899 | $ | 879,426 | 63,735 | $ | (1,030,860 | ) | (71,662 | ) | $ | 265,984 | 21,972 | ||||||||||||||||||
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|
|
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 458,480 | 32,688 | $ | 309,238 | 21,989 | $ | (834,928 | ) | (58,499 | ) | $ | (67,210 | ) | (3,822 | ) | ||||||||||||||||
Class 1A2 | 593 | 42 | 17 | 1 | (15 | ) | (1 | ) | 595 | 42 | ||||||||||||||||||||||
Class 2 | 34,639 | 2,502 | 195,693 | 14,095 | (439,009 | ) | (31,376 | ) | (208,677 | ) | (14,779 | ) | ||||||||||||||||||||
Class 4 | 129,429 | 9,259 | 10,522 | 756 | (43,213 | ) | (3,132 | ) | 96,738 | 6,883 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 623,141 | 44,491 | $ | 515,470 | 36,841 | $ | (1,317,165 | ) | (93,008 | ) | $ | (178,554 | ) | (11,676 | ) | ||||||||||||||||
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|
| |||||||||||||||||
Global Growth and Income Fund |
| |||||||||||||||||||||||||||||||
Sales1 | Reinvestments of distributions | Repurchases1 | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 105,981 | 7,092 | $ | 45,562 | 3,107 | $ | (46,619 | ) | (3,060 | ) | $ | 104,924 | 7,139 | ||||||||||||||||||
Class 1A | 951 | 60 | 81 | 6 | (40 | ) | (2 | ) | 992 | 64 | ||||||||||||||||||||||
Class 2 | 27,421 | 1,842 | 130,608 | 8,898 | (208,022 | ) | (13,672 | ) | (49,993 | ) | (2,932 | ) | ||||||||||||||||||||
Class 4 | 42,459 | 2,827 | 8,471 | 586 | (16,633 | ) | (1,102 | ) | 34,297 | 2,311 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 176,812 | 11,821 | $ | 184,722 | 12,597 | $ | (271,314 | ) | (17,836 | ) | $ | 90,220 | 6,582 | ||||||||||||||||||
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| |||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 133,943 | 8,899 | $ | 16,607 | 1,095 | $ | (345,498 | ) | (23,190 | ) | $ | (194,948 | ) | (13,196 | ) | ||||||||||||||||
Class 1A2 | 125 | 8 | 3 | — | 3 | (3 | ) | — | 3 | 125 | 8 | |||||||||||||||||||||
Class 2 | 25,134 | 1,709 | 56,976 | 3,780 | (236,596 | ) | (16,119 | ) | (154,486 | ) | (10,630 | ) | ||||||||||||||||||||
Class 4 | 63,660 | 4,175 | 1,883 | 123 | (6,203 | ) | (417 | ) | 59,340 | 3,881 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 222,862 | 14,791 | $ | 75,469 | 4,998 | $ | (588,300 | ) | (39,726 | ) | $ | (289,969 | ) | (19,937 | ) | ||||||||||||||||
|
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|
|
|
|
|
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|
| |||||||||||||||||
Growth-Income Fund |
| |||||||||||||||||||||||||||||||
Sales1 | Reinvestments of distributions | Repurchases1 | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 2,594,038 | 53,950 | $ | 1,388,000 | 27,742 | $ | (1,325,537 | ) | (25,872 | ) | $ | 2,656,501 | 55,820 | ||||||||||||||||||
Class 1A | 5,817 | 114 | 467 | 10 | (933 | ) | (18 | ) | 5,351 | 106 | ||||||||||||||||||||||
Class 2 | 128,833 | 2,587 | 1,128,412 | 22,770 | (1,901,203 | ) | (37,514 | ) | (643,958 | ) | (12,157 | ) | ||||||||||||||||||||
Class 3 | 1,014 | 20 | 13,244 | 264 | (26,871 | ) | (525 | ) | (12,613 | ) | (241 | ) | ||||||||||||||||||||
Class 4 | 193,427 | 3,881 | 73,971 | 1,507 | (97,541 | ) | (1,958 | ) | 169,857 | 3,430 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 2,923,129 | 60,552 | $ | 2,604,094 | 52,293 | $ | (3,352,085 | ) | (65,887 | ) | $ | 2,175,138 | 46,958 | ||||||||||||||||||
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|
|
| |||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 1,521,886 | 32,100 | $ | 1,132,034 | 24,392 | $ | (1,241,004 | ) | (26,012 | ) | $ | 1,412,916 | 30,480 | ||||||||||||||||||
Class 1A2 | 2,070 | 43 | 40 | 1 | (24 | ) | (1 | ) | 2,086 | 43 | ||||||||||||||||||||||
Class 2 | 120,223 | 2,558 | 1,048,742 | 22,899 | (1,761,342 | ) | (37,375 | ) | (592,377 | ) | (11,918 | ) | ||||||||||||||||||||
Class 3 | 473 | 10 | 12,561 | 271 | (21,746 | ) | (457 | ) | (8,712 | ) | (176 | ) | ||||||||||||||||||||
Class 4 | 267,835 | 5,641 | 46,486 | 1,020 | (56,983 | ) | (1,217 | ) | 257,338 | 5,444 | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 1,912,487 | 40,352 | $ | 2,239,863 | 48,583 | $ | (3,081,099 | ) | (65,062 | ) | $ | 1,071,251 | 23,873 | ||||||||||||||||||
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|
188 American Funds Insurance Series
Table of Contents
International Growth and Income Fund
Sales1 | Reinvestments of distributions | Repurchases1 | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | �� | Amount | Shares | Amount | Shares | Amount | Shares | |||||||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 102,396 | 5,829 | $ | 28,476 | 1,796 | $ | (62,238 | ) | (3,472 | ) | $ | 68,634 | 4,153 | ||||||||||||||||||
Class 1A | 276 | 16 | 44 | 3 | (453 | ) | (27 | ) | (133 | ) | (8 | ) | ||||||||||||||||||||
Class 2 | 13,046 | 753 | 5,865 | 371 | (28,666 | ) | (1,702 | ) | (9,755 | ) | (578 | ) | ||||||||||||||||||||
Class 4 | 29,607 | 1,717 | 1,597 | 101 | (12,831 | ) | (752 | ) | 18,373 | 1,066 | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 145,325 | 8,315 | $ | 35,982 | 2,271 | $ | (104,188 | ) | (5,953 | ) | $ | 77,119 | 4,633 | ||||||||||||||||||
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| |||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 186,307 | 11,140 | $ | 25,860 | 1,487 | $ | (101,536 | ) | (6,072 | ) | $ | 110,631 | 6,555 | ||||||||||||||||||
Class 1A2 | 2,100 | 121 | 14 | 1 | (1 | ) | — | 3 | 2,113 | 122 | ||||||||||||||||||||||
Class 2 | 8,391 | 510 | 5,714 | 329 | (34,542 | ) | (2,118 | ) | (20,437 | ) | (1,279 | ) | ||||||||||||||||||||
Class 4 | 19,465 | 1,164 | 1,184 | 69 | (3,332 | ) | (202 | ) | 17,317 | 1,031 | ||||||||||||||||||||||
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|
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 216,263 | 12,935 | $ | 32,772 | 1,886 | $ | (139,411 | ) | (8,392 | ) | $ | 109,624 | 6,429 | ||||||||||||||||||
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| |||||||||||||||||
Capital Income Builder |
| |||||||||||||||||||||||||||||||
Sales1 | Reinvestments of distributions | Repurchases1 | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 96,466 | 9,624 | $ | 10,037 | 1,010 | $ | (12,240 | ) | (1,241 | ) | $ | 94,263 | 9,393 | ||||||||||||||||||
Class 1A | 2,709 | 270 | 70 | 7 | (761 | ) | (77 | ) | 2,018 | 200 | ||||||||||||||||||||||
Class 2 | 2,658 | 264 | 96 | 10 | (180 | ) | (18 | ) | 2,574 | 256 | ||||||||||||||||||||||
Class 4 | 66,457 | 6,627 | 10,312 | 1,037 | (25,636 | ) | (2,556 | ) | 51,133 | 5,108 | ||||||||||||||||||||||
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|
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 168,290 | 16,785 | $ | 20,515 | 2,064 | $ | (38,817 | ) | (3,892 | ) | $ | 149,988 | 14,957 | ||||||||||||||||||
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| |||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 84,130 | 8,355 | $ | 6,303 | 622 | $ | (9,923 | ) | (984 | ) | $ | 80,510 | 7,993 | ||||||||||||||||||
Class 1A2 | 1,245 | 122 | 8 | 1 | (365 | ) | (36 | ) | 888 | 87 | ||||||||||||||||||||||
Class 2 | 1,371 | 136 | 23 | 2 | (122 | ) | (12 | ) | 1,272 | 126 | ||||||||||||||||||||||
Class 4 | 66,028 | 6,590 | 7,676 | 760 | (19,222 | ) | (1,922 | ) | 54,482 | 5,428 | ||||||||||||||||||||||
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|
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|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 152,774 | 15,203 | $ | 14,010 | 1,385 | $ | (29,632 | ) | (2,954 | ) | $ | 137,152 | 13,634 | ||||||||||||||||||
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|
See end of tables for footnotes.
American Funds Insurance Series 189
Table of Contents
Asset Allocation Fund
Sales1 | Reinvestments of distributions | Repurchases1 | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 1,402,434 | 60,588 | $ | 1,053,838 | 46,034 | $ | (2,607,246 | ) | (117,896 | ) | $ | (150,974 | ) | (11,274 | ) | ||||||||||||||||
Class 1A | 3,797 | 162 | 411 | 18 | (678 | ) | (30 | ) | 3,530 | 150 | ||||||||||||||||||||||
Class 2 | 89,621 | 3,865 | 313,464 | 13,808 | (682,422 | ) | (29,567 | ) | (279,337 | ) | (11,894 | ) | ||||||||||||||||||||
Class 3 | 897 | 38 | 2,098 | 91 | (7,614 | ) | (325 | ) | (4,619 | ) | (196 | ) | ||||||||||||||||||||
Class 4 | 380,567 | 16,509 | 217,964 | 9,642 | (180,958 | ) | (7,998 | ) | 417,573 | 18,153 | ||||||||||||||||||||||
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|
|
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|
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|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 1,877,316 | 81,162 | $ | 1,587,775 | 69,593 | $ | (3,478,918 | ) | (155,816 | ) | $ | (13,827 | ) | (5,061 | ) | ||||||||||||||||
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| |||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 1,929,702 | 84,102 | $ | 953,771 | 41,982 | $ | (641,572 | ) | (27,828 | ) | $ | 2,241,901 | 98,256 | ||||||||||||||||||
Class 1A2 | 4,261 | 184 | 121 | 5 | (253 | ) | (11 | ) | 4,129 | 178 | ||||||||||||||||||||||
Class 2 | 109,962 | 4,876 | 325,924 | 14,513 | (579,020 | ) | (25,433 | ) | (143,134 | ) | (6,044 | ) | ||||||||||||||||||||
Class 3 | 1,400 | 61 | 2,246 | 99 | (4,469 | ) | (195 | ) | (823 | ) | (35 | ) | ||||||||||||||||||||
Class 4 | 408,549 | 18,017 | 192,666 | 8,617 | (159,354 | ) | (7,104 | ) | 441,861 | 19,530 | ||||||||||||||||||||||
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|
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|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 2,453,874 | 107,240 | $ | 1,474,728 | 65,216 | $ | (1,384,668 | ) | (60,571 | ) | $ | 2,543,934 | 111,885 | ||||||||||||||||||
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|
| |||||||||||||||||
Global Balanced Fund |
| |||||||||||||||||||||||||||||||
Sales1 | Reinvestments of distributions | Repurchases1 | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 24,581 | 1,901 | $ | 3,154 | 265 | $ | (847 | ) | (66 | ) | $ | 26,888 | 2,100 | ||||||||||||||||||
Class 1A | 2,209 | 171 | 56 | 5 | (292 | ) | (24 | ) | 1,973 | 152 | ||||||||||||||||||||||
Class 2 | 11,812 | 914 | 4,844 | 408 | (24,153 | ) | (1,905 | ) | (7,497 | ) | (583 | ) | ||||||||||||||||||||
Class 4 | 35,652 | 2,821 | 1,646 | 140 | (12,396 | ) | (987 | ) | 24,902 | 1,974 | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 74,254 | 5,807 | $ | 9,700 | 818 | $ | (37,688 | ) | (2,982 | ) | $ | 46,266 | 3,643 | ||||||||||||||||||
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| |||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 22,241 | 1,783 | $ | 3,607 | 285 | $ | (6,039 | ) | (501 | ) | $ | 19,809 | 1,567 | ||||||||||||||||||
Class 1A2 | 244 | 19 | 9 | 1 | — | 3 | — | 3 | 253 | 20 | ||||||||||||||||||||||
Class 2 | 16,382 | 1,346 | 7,928 | 628 | (20,169 | ) | (1,671 | ) | 4,141 | 303 | ||||||||||||||||||||||
Class 4 | 39,763 | 3,218 | 1,778 | 142 | (2,261 | ) | (182 | ) | 39,280 | 3,178 | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 78,630 | 6,366 | $ | 13,322 | 1,056 | $ | (28,469 | ) | (2,354 | ) | $ | 63,483 | 5,068 | ||||||||||||||||||
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| |||||||||||||||||
Bond Fund |
| |||||||||||||||||||||||||||||||
Sales1 | Reinvestments of distributions | Repurchases1 | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 856,250 | 80,879 | $ | 164,110 | 15,776 | $ | (1,296,873 | ) | (122,086 | ) | $ | (276,513 | ) | (25,431 | ) | ||||||||||||||||
Class 1A | 2,864 | 271 | 80 | 8 | (674 | ) | (64 | ) | 2,270 | 215 | ||||||||||||||||||||||
Class 2 | 107,831 | 10,281 | 93,483 | 9,101 | (518,189 | ) | (49,721 | ) | (316,875 | ) | (30,339 | ) | ||||||||||||||||||||
Class 4 | 118,851 | 11,386 | 8,606 | 839 | (47,758 | ) | (4,587 | ) | 79,699 | 7,638 | ||||||||||||||||||||||
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|
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|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 1,085,796 | 102,817 | $ | 266,279 | 25,724 | $ | (1,863,494 | ) | (176,458 | ) | $ | (511,419 | ) | (47,917 | ) | ||||||||||||||||
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| |||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 967,669 | 88,718 | $ | 235,240 | 21,678 | $ | (1,624,503 | ) | (147,887 | ) | $ | (421,594 | ) | (37,491 | ) | ||||||||||||||||
Class 1A2 | 1,338 | 122 | 21 | 2 | (272 | ) | (25 | ) | 1,087 | 99 | ||||||||||||||||||||||
Class 2 | 138,965 | 12,898 | 134,455 | 12,545 | (273,010 | ) | (25,301 | ) | 410 | 142 | ||||||||||||||||||||||
Class 4 | 212,848 | 19,725 | 6,398 | 597 | (22,490 | ) | (2,080 | ) | 196,756 | 18,242 | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 1,320,820 | 121,463 | $ | 376,114 | 34,822 | $ | (1,920,275 | ) | (175,293 | ) | $ | (223,341 | ) | (19,008 | ) | ||||||||||||||||
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190 American Funds Insurance Series
Table of Contents
Global Bond Fund
Sales1 | Reinvestments of distributions | Repurchases1 | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 126,990 | 10,666 | $ | 28,466 | 2,515 | $ | (375,280 | ) | (31,456 | ) | $ | (219,824 | ) | (18,275 | ) | ||||||||||||||||
Class 1A | 575 | 49 | 10 | 1 | (241 | ) | (21 | ) | 344 | 29 | ||||||||||||||||||||||
Class 2 | 41,190 | 3,507 | 26,720 | 2,377 | (156,625 | ) | (13,571 | ) | (88,715 | ) | (7,687 | ) | ||||||||||||||||||||
Class 4 | 28,055 | 2,394 | 934 | 84 | (17,922 | ) | (1,548 | ) | 11,067 | 930 | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 196,810 | 16,616 | $ | 56,130 | 4,977 | $ | (550,068 | ) | (46,596 | ) | $ | (297,128 | ) | (25,003 | ) | ||||||||||||||||
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| |||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 177,200 | 15,155 | $ | 14,284 | 1,210 | $ | (100,697 | ) | (8,588 | ) | $ | 90,787 | 7,777 | ||||||||||||||||||
Class 1A2 | 74 | 6 | — | 3 | — | 3 | — | 3 | — | 3 | 74 | 6 | ||||||||||||||||||||
Class 2 | 45,841 | 3,978 | 11,132 | 952 | (79,734 | ) | (6,868 | ) | (22,761 | ) | (1,938 | ) | ||||||||||||||||||||
Class 4 | 20,651 | 1,777 | 197 | 17 | (2,949 | ) | (255 | ) | 17,899 | 1,539 | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 243,766 | 20,916 | $ | 25,613 | 2,179 | $ | (183,380 | ) | (15,711 | ) | $ | 85,999 | 7,384 | ||||||||||||||||||
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| �� | |||||||||||||||||
High-Income Bond Fund |
| |||||||||||||||||||||||||||||||
Sales1 | Reinvestments of distributions | Repurchases1 | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 15,126 | 1,484 | $ | 34,114 | 3,526 | $ | (136,193 | ) | (13,306 | ) | $ | (86,953) | (8,296 | ) | |||||||||||||||||
Class 1A | 621 | 61 | 40 | 5 | (365 | ) | (36 | ) | 296 | 30 | ||||||||||||||||||||||
Class 2 | 12,354 | 1,231 | 43,383 | 4,563 | (111,276 | ) | (11,157 | ) | (55,539 | ) | (5,363 | ) | ||||||||||||||||||||
Class 3 | 1,837 | 179 | 664 | 68 | (4,223 | ) | (418 | ) | (1,722 | ) | (171 | ) | ||||||||||||||||||||
Class 4 | 51,449 | 4,747 | 1,733 | 168 | (53,384 | ) | (4,942 | ) | (202 | ) | (27 | ) | ||||||||||||||||||||
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| |||||||||||||||||
Total net increase (decrease) | $ | 81,387 | 7,702 | $ | 79,934 | 8,330 | $ | (305,441 | ) | (29,859 | ) | $ | (144,120 | ) | (13,827 | ) | ||||||||||||||||
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| |||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 43,584 | 4,162 | $ | 43,816 | 4,273 | $ | (422,269 | ) | (39,685 | ) | $ | (334,869 | ) | (31,250 | ) | ||||||||||||||||
Class 1A2 | 400 | 39 | 12 | 1 | (7 | ) | (1 | ) | 405 | 39 | ||||||||||||||||||||||
Class 2 | 15,931 | 1,540 | 51,640 | 5,121 | (92,969 | ) | (8,946 | ) | (25,398 | ) | (2,285 | ) | ||||||||||||||||||||
Class 3 | 397 | 38 | 805 | 78 | (1,921 | ) | (181 | ) | (719 | ) | (65 | ) | ||||||||||||||||||||
Class 4 | 84,996 | 7,657 | 1,981 | 182 | (72,820 | ) | (6,577 | ) | 14,157 | 1,262 | ||||||||||||||||||||||
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|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 145,308 | 13,436 | $ | 98,254 | 9,655 | $ | (589,986 | ) | (55,390 | ) | $ | (346,424 | ) | (32,299 | ) | ||||||||||||||||
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See end of tables for footnotes.
American Funds Insurance Series 191
Table of Contents
Mortgage Fund
Sales1 | Reinvestments of distributions | Repurchases1 | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 17,819 | 1,730 | $ | 4,658 | 457 | $ | (74,088 | ) | (7,185 | ) | $ | (51,611 | ) | (4,998 | ) | ||||||||||||||||
Class 1A | 732 | 71 | 15 | 2 | (111 | ) | (11 | ) | 636 | 62 | ||||||||||||||||||||||
Class 2 | 4,682 | 456 | 1,128 | 111 | (10,509 | ) | (1,023 | ) | (4,699 | ) | (456 | ) | ||||||||||||||||||||
Class 4 | 14,315 | 1,403 | 424 | 41 | (2,626 | ) | (257 | ) | 12,113 | 1,187 | ||||||||||||||||||||||
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|
| |||||||||||||||||
Total net increase (decrease) | $ | 37,548 | 3,660 | $ | 6,225 | 611 | $ | (87,334 | ) | (8,476 | ) | $ | (43,561 | ) | (4,205 | ) | ||||||||||||||||
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Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 52,151 | 4,904 | $ | 5,982 | 566 | $ | (59,926 | ) | (5,621 | ) | $ | (1,793 | ) | (151 | ) | ||||||||||||||||
Class 1A2 | 109 | 10 | 2 | — | 3 | (6 | ) | — | 3 | 105 | 10 | |||||||||||||||||||||
Class 2 | 7,132 | 672 | 1,287 | 122 | (8,011 | ) | (755 | ) | 408 | 39 | ||||||||||||||||||||||
Class 4 | 8,522 | 808 | 204 | 20 | (4,876 | ) | (462 | ) | 3,850 | 366 | ||||||||||||||||||||||
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| |||||||||||||||||
Total net increase (decrease) | $ | 67,914 | 6,394 | $ | 7,475 | 708 | $ | (72,819 | ) | (6,838 | ) | $ | 2,570 | 264 | ||||||||||||||||||
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| |||||||||||||||||
Ultra-Short Bond Fund | ||||||||||||||||||||||||||||||||
Sales1 | Reinvestments of distributions | Repurchases1 | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 25,371 | 2,233 | $ | 561 | 50 | $ | (26,198 | ) | (2,310 | ) | $ | (266 | ) | (27 | ) | ||||||||||||||||
Class 1A | — | — | — | 3 | — | 3 | — | — | — | 3 | — | 3 | ||||||||||||||||||||
Class 2 | 103,165 | 9,332 | 2,762 | 250 | (107,692 | ) | (9,741 | ) | (1,765 | ) | (159 | ) | ||||||||||||||||||||
Class 3 | 4,222 | 378 | 42 | 4 | (3,944 | ) | (353 | ) | 320 | 29 | ||||||||||||||||||||||
Class 4 | 16,908 | 1,513 | 153 | 14 | (14,303 | ) | (1,281 | ) | 2,758 | 246 | ||||||||||||||||||||||
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| |||||||||||||||||
Total net increase (decrease) | $ | 149,666 | 13,456 | $ | 3,518 | 318 | $ | (152,137 | ) | (13,685 | ) | $ | 1,047 | 89 | ||||||||||||||||||
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Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 14,832 | 1,312 | $ | 184 | 16 | $ | (15,478 | ) | (1,371 | ) | $ | (462 | ) | (43 | ) | ||||||||||||||||
Class 1A2 | 10 | 1 | — | 3 | — | 3 | — | — | 10 | 1 | ||||||||||||||||||||||
Class 2 | 62,145 | 5,646 | 697 | 63 | (111,628 | ) | (10,146 | ) | (48,786 | ) | (4,437 | ) | ||||||||||||||||||||
Class 3 | 1,448 | 130 | 15 | 2 | (1,233 | ) | (111 | ) | 230 | 21 | ||||||||||||||||||||||
Class 4 | 16,767 | 1,507 | 10 | 1 | (14,407 | ) | (1,294 | ) | 2,370 | 214 | ||||||||||||||||||||||
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| |||||||||||||||||
Total net increase (decrease) | $ | 95,202 | 8,596 | $ | 906 | 82 | $ | (142,746 | ) | (12,922 | ) | $ | (46,638 | ) | (4,244 | ) | ||||||||||||||||
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192 American Funds Insurance Series
Table of Contents
U.S.Government/AAA-Rated Securities Fund
Sales1 | Reinvestments of distributions | Repurchases1 | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 67,360 | 5,655 | $ | 29,446 | 2,499 | $ | (191,451 | ) | (16,111 | ) | $ | (94,645 | ) | (7,957 | ) | ||||||||||||||||
Class 1A | 1,389 | 118 | 28 | 2 | (214 | ) | (18 | ) | 1,203 | 102 | ||||||||||||||||||||||
Class 2 | 43,398 | 3,680 | 24,431 | 2,094 | (200,280 | ) | (17,045 | ) | (132,451 | ) | (11,271 | ) | ||||||||||||||||||||
Class 3 | 628 | 53 | 165 | 14 | (1,997 | ) | (168 | ) | (1,204 | ) | (101 | ) | ||||||||||||||||||||
Class 4 | 45,391 | 3,857 | 1,313 | 113 | (17,387 | ) | (1,474 | ) | 29,317 | 2,496 | ||||||||||||||||||||||
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| |||||||||||||||||
Total net increase (decrease) | $ | 158,166 | 13,363 | $ | 55,383 | 4,722 | $ | (411,329 | ) | (34,816 | ) | $ | (197,780 | ) | (16,731 | ) | ||||||||||||||||
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Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 291,253 | 23,702 | $ | 23,401 | 1,927 | $ | (226,514 | ) | (18,425 | ) | $ | 88,140 | 7,204 | ||||||||||||||||||
Class 1A2 | 1,016 | 83 | 2 | — | 3 | (714 | ) | (58 | ) | 304 | 25 | |||||||||||||||||||||
Class 2 | 49,410 | 4,091 | 19,498 | 1,621 | (103,407 | ) | (8,550 | ) | (34,499 | ) | (2,838 | ) | ||||||||||||||||||||
Class 3 | 1,050 | 86 | 141 | 12 | (1,501 | ) | (123 | ) | (310 | ) | (25 | ) | ||||||||||||||||||||
Class 4 | 27,872 | 2,299 | 663 | 55 | (23,884 | ) | (1,976 | ) | 4,651 | 378 | ||||||||||||||||||||||
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| |||||||||||||||||
Total net increase (decrease) | $ | 370,601 | 30,261 | $ | 43,705 | 3,615 | $ | (356,020 | ) | (29,132 | ) | $ | 58,286 | 4,744 | ||||||||||||||||||
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| |||||||||||||||||
Managed Risk Growth Fund |
| |||||||||||||||||||||||||||||||
Sales1 | Reinvestment of distributions | Repurchases1 | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 1,861 | 140 | $ | 150 | 11 | $ | (596 | ) | (45 | ) | $ | 1,415 | 106 | ||||||||||||||||||
Class P2 | 79,190 | 6,025 | 21,792 | 1,658 | (21,197 | ) | (1,594 | ) | 79,785 | 6,089 | ||||||||||||||||||||||
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| |||||||||||||||||
Total net increase (decrease) | $ | 81,051 | 6,165 | $ | 21,942 | 1,669 | $ | (21,793 | ) | (1,639 | ) | $ | 81,200 | 6,195 | ||||||||||||||||||
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| |||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 836 | 70 | $ | 29 | 2 | $ | (230 | ) | (19 | ) | $ | 635 | 53 | ||||||||||||||||||
Class P2 | 46,748 | 3,893 | 4,847 | 408 | (16,010 | ) | (1,330 | ) | 35,585 | 2,971 | ||||||||||||||||||||||
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| |||||||||||||||||
Total net increase (decrease) | $ | 47,584 | 3,963 | $ | 4,876 | 410 | $ | (16,240 | ) | (1,349 | ) | $ | 36,220 | 3,024 | ||||||||||||||||||
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| |||||||||||||||||
Managed Risk International Fund |
| |||||||||||||||||||||||||||||||
Sales1 | Reinvestments of distributions | Repurchases1 | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 321 | 30 | $ | 9 | 1 | $ | (44 | ) | (4 | ) | $ | 286 | 27 | ||||||||||||||||||
Class P2 | 33,085 | 3,040 | 3,419 | 323 | (13,533 | ) | (1,240 | ) | 22,971 | 2,123 | ||||||||||||||||||||||
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| |||||||||||||||||
Total net increase (decrease) | $ | 33,406 | 3,070 | $ | 3,428 | 324 | $ | (13,577 | ) | (1,244 | ) | $ | 23,257 | 2,150 | ||||||||||||||||||
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| |||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 130 | 14 | $ | 2 | — | 3 | $ | (166 | ) | (17 | ) | $ | (34 | ) | (3 | ) | |||||||||||||||
Class P2 | 30,462 | 3,002 | 2,301 | 230 | (9,880 | ) | (967 | ) | 22,883 | 2,265 | ||||||||||||||||||||||
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|
| |||||||||||||||||
Total net increase (decrease) | $ | 30,592 | 3,016 | $ | 2,303 | 230 | $ | (10,046 | ) | (984 | ) | $ | 22,849 | 2,262 | ||||||||||||||||||
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See end of tables for footnotes.
American Funds Insurance Series 193
Table of Contents
Managed Risk Blue Chip Income and Growth Fund
Sales1 | Reinvestments of distributions | Repurchases1 | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 358 | 29 | $ | 22 | 2 | $ | (43 | ) | (4 | ) | $ | 337 | 27 | ||||||||||||||||||
Class P2 | 31,213 | 2,567 | 23,504 | 1,964 | (35,759 | ) | (2,843 | ) | 18,958 | 1,688 | ||||||||||||||||||||||
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| |||||||||||||||||
Total net increase (decrease) | $ | 31,571 | 2,596 | $ | 23,526 | 1,966 | $ | (35,802 | ) | (2,847 | ) | $ | 19,295 | 1,715 | ||||||||||||||||||
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| |||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 59 | 5 | $ | 7 | 1 | $ | (136 | ) | (11 | ) | $ | (70 | ) | (5 | ) | ||||||||||||||||
Class P2 | 83,072 | 6,949 | 10,722 | 898 | (56,067 | ) | (4,624 | ) | 37,727 | 3,223 | ||||||||||||||||||||||
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| |||||||||||||||||
Total net increase (decrease) | $ | 83,131 | 6,954 | $ | 10,729 | 899 | $ | (56,203 | ) | (4,635 | ) | $ | 37,657 | 3,218 | ||||||||||||||||||
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| |||||||||||||||||
Managed Risk Growth-Income Fund |
| |||||||||||||||||||||||||||||||
Sales1 | Reinvestments of distributions | Repurchases1 | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 1,696,532 | 144,131 | $ | 164 | 13 | $ | (30,979 | ) | (2,639 | ) | $ | 1,665,717 | 141,505 | ||||||||||||||||||
Class P2 | 45,914 | 3,658 | 12,188 | 977 | (16,805 | ) | (1,320 | ) | 41,297 | 3,315 | ||||||||||||||||||||||
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|
| |||||||||||||||||
Total net increase (decrease) | $ | 1,742,446 | 147,789 | $ | 12,352 | 990 | $ | (47,784 | ) | (3,959 | ) | $ | 1,707,014 | 144,820 | ||||||||||||||||||
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Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 1,093 | 92 | $ | 92 | 8 | $ | (154 | ) | (13 | ) | $ | 1,031 | 87 | ||||||||||||||||||
Class P2 | 27,997 | 2,382 | 9,501 | 835 | (15,095 | ) | (1,278 | ) | 22,403 | 1,939 | ||||||||||||||||||||||
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|
| |||||||||||||||||
Total net increase (decrease) | $ | 29,090 | 2,474 | $ | 9,593 | 843 | $ | (15,249 | ) | (1,291 | ) | $ | 23,434 | 2,026 | ||||||||||||||||||
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| |||||||||||||||||
Managed Risk Asset Allocation Fund |
| |||||||||||||||||||||||||||||||
Sales1 | Reinvestments of distributions | Repurchases1 | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 158,125 | 11,883 | $ | 98,747 | 7,599 | $ | (1,735,518 | ) | (141,232 | ) | $ | (1,478,646 | ) | (121,750 | ) | ||||||||||||||||
Class P2 | 122,897 | 9,265 | 144,221 | 11,089 | (250,843 | ) | (19,040 | ) | 16,275 | 1,314 | ||||||||||||||||||||||
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|
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|
| |||||||||||||||||
Total net increase (decrease) | $ | 281,022 | 21,148 | $ | 242,968 | 18,688 | $ | (1,986,361 | ) | (160,272 | ) | $ | (1,462,371 | ) | (120,436 | ) | ||||||||||||||||
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Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 264,545 | 20,631 | $ | 25,264 | 1,986 | $ | (25,397 | ) | (1,973 | ) | $ | 264,412 | 20,644 | ||||||||||||||||||
Class P2 | 253,137 | 19,936 | 45,200 | 3,559 | (153,999 | ) | (11,957 | ) | 144,338 | 11,538 | ||||||||||||||||||||||
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|
| |||||||||||||||||
Total net increase (decrease) | $ | 517,682 | 40,567 | $ | 70,464 | 5,545 | $ | (179,396 | ) | (13,930 | ) | $ | 408,750 | 32,182 | ||||||||||||||||||
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|
1 | Includes exchanges between share classes of the fund. |
2 | Class 1A shares began investment operations on January 6, 2017. |
3 | Amount less than one thousand. |
194 American Funds Insurance Series
Table of Contents
10. Investment transactions and other disclosures
The following tables present additional information for each of the funds for the year ended December 31, 2018 (dollars in thousands):
Global Growth Fund | Global Small Capitalization Fund | Growth Fund | International Fund | New World Fund | Blue Chip Income and Growth Fund | |||||||||||||||||||
Purchases of investment securities* | $ | 1,467,874 | $ | 1,662,024 | $ | 8,417,701 | $ | 3,211,601 | $ | 1,739,953 | $ | 4,319,816 | ||||||||||||
Sales of investment securities* | 1,724,252 | 2,030,293 | 9,996,481 | 2,598,799 | 2,109,957 | 4,791,714 | ||||||||||||||||||
Non-U.S. taxes (refunded) paid on interest income | — | — | — | — | 43 | — | ||||||||||||||||||
Non-U.S. taxes (refunded) paid on realized gains | — | 12 | — | (45 | ) | 112 | — | |||||||||||||||||
Non-U.S. taxes provided on unrealized gains | 746 | 931 | — | 3,872 | 684 | — | ||||||||||||||||||
Dividend income from affiliated issuers | — | 437 | — | — | — | — | ||||||||||||||||||
Global Growth and Income Fund | Growth- Income Fund | International Growth and Income Fund | Capital Income Builder | Asset Allocation Fund | Global Balanced Fund | |||||||||||||||||||
Purchases of investment securities* | $ | 956,577 | $ | 11,487,304 | $ | 556,700 | $ | 605,766 | $ | 18,403,385 | $ | 204,201 | ||||||||||||
Sales of investment securities* | 1,040,568 | 12,435,378 | 512,739 | 476,357 | 19,811,470 | 172,949 | ||||||||||||||||||
Non-U.S. taxes (refunded) paid on interest income | — | — | (8 | ) | — | — | 17 | |||||||||||||||||
Non-U.S. taxes (refunded) paid on realized gains | 3 | — | 6 | — | — | 23 | ||||||||||||||||||
Non-U.S. taxes provided on unrealized gains | — | — | 271 | — | 126 | 27 | ||||||||||||||||||
Dividend income from affiliated issuers | — | 3,182 | — | — | 562 | — | ||||||||||||||||||
Interest income from affiliated issuers | — | — | — | — | 2,196 | — | ||||||||||||||||||
Bond Fund | Global Bond Fund | High- Income Bond Fund | Mortgage Fund | Ultra-Short Bond Fund | U.S. Government/ AAA-Rated Securities Fund | |||||||||||||||||||
Purchases of investment securities* | $ | 44,757,939 | $ | 2,355,671 | $ | 880,471 | $ | 2,407,428 | $ | — | $ | 11,220,878 | ||||||||||||
Sales of investment securities* | 45,098,034 | 2,481,042 | 976,663 | 2,426,692 | — | 11,103,888 | ||||||||||||||||||
Non-U.S. taxes (refunded) paid on interest income | 7 | 396 | (2 | ) | — | — | — | |||||||||||||||||
Non-U.S. taxes (refunded) paid on realized gains | (196 | ) | 578 | — | — | — | — | |||||||||||||||||
Non-U.S. taxes provided on unrealized gains | — | 368 | — | — | — | — |
Managed Risk Growth Fund | Managed Risk International Fund | Managed Risk Blue Chip Income and Growth Fund | Managed Risk Growth- Income Fund | Managed Risk Asset Allocation Fund | ||||||||||||||||
Purchases of investment securities* | $ | 109,572 | $ | 39,805 | $ | 64,381 | $ | 1,669,137 | $ | 504,021 | ||||||||||
Sales of investment securities* | 21,960 | 11,908 | 38,201 | 47,528 | 1,854,151 | |||||||||||||||
Dividend income from affiliated issuers | 3,340 | 3,202 | 7,264 | 4,163 | 80,687 |
* | Excludes short-term securities and U.S. government obligations, if any. |
11. Ownership concentration
At December 31, 2018, American Funds Insurance Series — Portfolio Series Managed Risk Growth and Income Portfolio held 36% and 11% of the outstanding shares of Capital Income Builder and Global Growth and Income Fund, respectively. In addition, American Funds Insurance Series — Portfolio Series Managed Risk Global Allocation Portfolio and Managed Risk Asset Allocation Fund held 22% and 11% of the outstanding shares of Global Balanced Fund and Asset Allocation Fund, respectively.
American Funds Insurance Series 195
Table of Contents
Financial highlights
(Loss) income from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net (losses) gains on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
Global Growth Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | $ | 30.51 | $ | .29 | $ | (2.65 | ) | $ | (2.36 | ) | $ | (.28 | ) | $ | (2.13 | ) | $ | (2.41 | ) | $ | 25.74 | (8.81 | )% | $ | 1,942 | .55 | % | .98 | % | |||||||||||||||||||
12/31/2017 | 24.05 | .26 | 7.30 | 7.56 | (.26 | ) | (.84 | ) | (1.10 | ) | 30.51 | 31.80 | 2,010 | .55 | .94 | |||||||||||||||||||||||||||||||||
12/31/2016 | 26.39 | .25 | (.14 | ) | .11 | (.29 | ) | (2.16 | ) | (2.45 | ) | 24.05 | .87 | 1,630 | .56 | 1.00 | ||||||||||||||||||||||||||||||||
12/31/2015 | 27.48 | .25 | 1.80 | 2.05 | (.35 | ) | (2.79 | ) | (3.14 | ) | 26.39 | 7.24 | 1,626 | .55 | .90 | |||||||||||||||||||||||||||||||||
12/31/2014 | 30.11 | .31 | 2 | .40 | .71 | (.40 | ) | (2.94 | ) | (3.34 | ) | 27.48 | 2.52 | 1,558 | .55 | 1.08 | 2 | |||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 30.46 | .23 | (2.66 | ) | (2.43 | ) | (.21 | ) | (2.13 | ) | (2.34 | ) | 25.69 | (9.02 | ) | 5 | .80 | .77 | ||||||||||||||||||||||||||||||
12/31/20173,4 | 24.50 | .11 | 6.94 | 7.05 | (.25 | ) | (.84 | ) | (1.09 | ) | 30.46 | 29.13 | 5 | 2 | .80 | 6 | .39 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 30.24 | .22 | (2.63 | ) | (2.41 | ) | (.20 | ) | (2.13 | ) | (2.33 | ) | 25.50 | (9.04 | ) | 3,306 | .80 | .73 | ||||||||||||||||||||||||||||||
12/31/2017 | 23.85 | .19 | 7.23 | 7.42 | (.19 | ) | (.84 | ) | (1.03 | ) | 30.24 | 31.47 | 4,012 | .80 | .69 | |||||||||||||||||||||||||||||||||
12/31/2016 | 26.19 | .18 | (.14 | ) | .04 | (.22 | ) | (2.16 | ) | (2.38 | ) | 23.85 | .62 | 3,483 | .81 | .76 | ||||||||||||||||||||||||||||||||
12/31/2015 | 27.30 | .18 | 1.78 | 1.96 | (.28 | ) | (2.79 | ) | (3.07 | ) | 26.19 | 6.94 | 3,817 | .80 | .66 | |||||||||||||||||||||||||||||||||
12/31/2014 | 29.92 | .24 | 2 | .41 | .65 | (.33 | ) | (2.94 | ) | (3.27 | ) | 27.30 | 2.31 | 3,992 | .80 | .85 | 2 | |||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 30.13 | .14 | (2.60 | ) | (2.46 | ) | (.15 | ) | (2.13 | ) | (2.28 | ) | 25.39 | (9.24 | ) | 249 | 1.05 | .47 | ||||||||||||||||||||||||||||||
12/31/2017 | 23.81 | .10 | 7.22 | 7.32 | (.16 | ) | (.84 | ) | (1.00 | ) | 30.13 | 31.11 | 211 | 1.05 | .37 | |||||||||||||||||||||||||||||||||
12/31/2016 | 26.16 | .12 | (.14 | ) | (.02 | ) | (.17 | ) | (2.16 | ) | (2.33 | ) | 23.81 | .37 | 94 | 1.06 | .50 | |||||||||||||||||||||||||||||||
12/31/2015 | 27.34 | .09 | 1.81 | 1.90 | (.29 | ) | (2.79 | ) | (3.08 | ) | 26.16 | 6.69 | 91 | 1.05 | .34 | |||||||||||||||||||||||||||||||||
12/31/2014 | 30.07 | .07 | 2 | .50 | .57 | (.36 | ) | (2.94 | ) | (3.30 | ) | 27.34 | 2.01 | 19 | 1.05 | .26 | 2 | |||||||||||||||||||||||||||||||
Global Small Capitalization Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | $ | 25.38 | $ | .11 | $ | (2.51 | ) | $ | (2.40 | ) | $ | (.09 | ) | $ | (1.14 | ) | $ | (1.23 | ) | $ | 21.75 | (10.31 | )% | $ | 1,453 | .73 | % | .42 | % | |||||||||||||||||||
12/31/2017 | 20.24 | .12 | 5.17 | 5.29 | (.15 | ) | — | (.15 | ) | 25.38 | 26.22 | 1,639 | .73 | .54 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 24.41 | .12 | .17 | .29 | (.11 | ) | (4.35 | ) | (4.46 | ) | 20.24 | 2.35 | 1,532 | .74 | .57 | |||||||||||||||||||||||||||||||||
12/31/2015 | 26.09 | .04 | .36 | .40 | — | (2.08 | ) | (2.08 | ) | 24.41 | .50 | 1,706 | .73 | .15 | ||||||||||||||||||||||||||||||||||
12/31/2014 | 25.69 | .09 | .52 | .61 | (.09 | ) | (.12 | ) | (.21 | ) | 26.09 | 2.36 | 1,411 | .74 | .34 | |||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 25.36 | .05 | (2.52 | ) | (2.47 | ) | (.04 | ) | (1.14 | ) | (1.18 | ) | 21.71 | (10.56 | ) | — | 7 | �� | .98 | .21 | ||||||||||||||||||||||||||||
12/31/20173,4 | 20.70 | .08 | 4.71 | 4.79 | (.13 | ) | — | (.13 | ) | 25.36 | 23.19 | 5 | — | 7 | .96 | 6 | .35 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 24.72 | .04 | (2.44 | ) | (2.40 | ) | (.02 | ) | (1.14 | ) | (1.16 | ) | 21.16 | (10.55 | ) | 2,056 | .98 | .17 | ||||||||||||||||||||||||||||||
12/31/2017 | 19.72 | .06 | 5.04 | 5.10 | (.10 | ) | — | (.10 | ) | 24.72 | 25.89 | 2,551 | .98 | .27 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 23.90 | .07 | .15 | .22 | (.05 | ) | (4.35 | ) | (4.40 | ) | 19.72 | 2.10 | 2,303 | .99 | .31 | |||||||||||||||||||||||||||||||||
12/31/2015 | 25.64 | (.03 | ) | .37 | .34 | — | (2.08 | ) | (2.08 | ) | 23.90 | .27 | 2,492 | .98 | (.10 | ) | ||||||||||||||||||||||||||||||||
12/31/2014 | 25.25 | .03 | .51 | .54 | (.03 | ) | (.12 | ) | (.15 | ) | 25.64 | 2.12 | 2,738 | .99 | .10 | |||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 24.91 | (.02 | ) | (2.46 | ) | (2.48 | ) | (.01 | ) | (1.14 | ) | (1.15 | ) | 21.28 | (10.80 | ) | 146 | 1.24 | (.08 | ) | ||||||||||||||||||||||||||||
12/31/2017 | 19.91 | — | 8 | 5.09 | 5.09 | (.09 | ) | — | (.09 | ) | 24.91 | 25.62 | 125 | 1.23 | — | 9 | ||||||||||||||||||||||||||||||||
12/31/2016 | 24.11 | .01 | .16 | .17 | (.02 | ) | (4.35 | ) | (4.37 | ) | 19.91 | 1.85 | 42 | 1.24 | .03 | |||||||||||||||||||||||||||||||||
12/31/2015 | 25.92 | (.10 | ) | .37 | .27 | — | (2.08 | ) | (2.08 | ) | 24.11 | (.02 | ) | 34 | 1.23 | (.37 | ) | |||||||||||||||||||||||||||||||
12/31/2014 | 25.57 | (.05 | ) | .54 | .49 | (.02 | ) | (.12 | ) | (.14 | ) | 25.92 | 1.88 | 12 | 1.24 | (.17 | ) |
196 American Funds Insurance Series
Table of Contents
(Loss) income from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net (losses) gains on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of to average | ||||||||||||||||||||||||||||||||||||
Growth Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | $ | 77.85 | $ | .64 | $ | .25 | $ | .89 | $ | (.54 | ) | $ | (8.24 | ) | $ | (8.78 | ) | $ | 69.96 | (.01 | )% | $ | 8,474 | .34 | % | .81 | % | |||||||||||||||||||||
12/31/2017 | 67.29 | .55 | 17.89 | 18.44 | (.55 | ) | (7.33 | ) | (7.88 | ) | 77.85 | 28.62 | 8,100 | .35 | .75 | |||||||||||||||||||||||||||||||||
12/31/2016 | 68.02 | .67 | 5.40 | 6.07 | (.67 | ) | (6.13 | ) | (6.80 | ) | 67.29 | 9.77 | 6,931 | .35 | 1.03 | |||||||||||||||||||||||||||||||||
12/31/2015 | 80.15 | .64 | 5.08 | 5.72 | (.61 | ) | (17.24 | ) | (17.85 | ) | 68.02 | 7.12 | 6,796 | .35 | .87 | |||||||||||||||||||||||||||||||||
12/31/2014 | 78.54 | .88 | 2 | 5.79 | 6.67 | (1.16 | ) | (3.90 | ) | (5.06 | ) | 80.15 | 8.78 | 7,118 | .35 | 1.12 | 2 | |||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 77.74 | .47 | .24 | .71 | (.44 | ) | (8.24 | ) | (8.68 | ) | 69.77 | (.26 | ) | 10 | .59 | .60 | ||||||||||||||||||||||||||||||||
12/31/20173,4 | 68.84 | .35 | 16.38 | 16.73 | (.50 | ) | (7.33 | ) | (7.83 | ) | 77.74 | 25.47 | 5 | 3 | .59 | 6 | .47 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 77.35 | .44 | .27 | .71 | (.34 | ) | (8.24 | ) | (8.58 | ) | 69.48 | (.25 | ) | 13,701 | .59 | .55 | ||||||||||||||||||||||||||||||||
12/31/2017 | 66.92 | .37 | 17.76 | 18.13 | (.37 | ) | (7.33 | ) | (7.70 | ) | 77.35 | 28.28 | 15,716 | .60 | .50 | |||||||||||||||||||||||||||||||||
12/31/2016 | 67.69 | .51 | 5.36 | 5.87 | (.51 | ) | (6.13 | ) | (6.64 | ) | 66.92 | 9.49 | 13,978 | .60 | .78 | |||||||||||||||||||||||||||||||||
12/31/2015 | 79.84 | .46 | 5.06 | 5.52 | (.43 | ) | (17.24 | ) | (17.67 | ) | 67.69 | 6.86 | 14,414 | .60 | .62 | |||||||||||||||||||||||||||||||||
12/31/2014 | 77.94 | .68 | 2 | 5.75 | 6.43 | (.63 | ) | (3.90 | ) | (4.53 | ) | 79.84 | 8.51 | 15,413 | .60 | .87 | 2 | |||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 78.32 | .50 | .26 | .76 | (.40 | ) | (8.24 | ) | (8.64 | ) | 70.44 | (.18 | ) | 187 | .52 | .62 | ||||||||||||||||||||||||||||||||
12/31/2017 | 67.67 | .42 | 17.98 | 18.40 | (.42 | ) | (7.33 | ) | (7.75 | ) | 78.32 | 28.39 | 212 | .53 | .57 | |||||||||||||||||||||||||||||||||
12/31/2016 | 68.37 | .56 | 5.42 | 5.98 | (.55 | ) | (6.13 | ) | (6.68 | ) | 67.67 | 9.56 | 183 | .53 | .85 | |||||||||||||||||||||||||||||||||
12/31/2015 | 80.47 | .51 | 5.11 | 5.62 | (.48 | ) | (17.24 | ) | (17.72 | ) | 68.37 | 6.92 | 194 | .53 | .69 | |||||||||||||||||||||||||||||||||
12/31/2014 | 78.62 | .74 | 2 | 5.79 | 6.53 | (.78 | ) | (3.90 | ) | (4.68 | ) | 80.47 | 8.58 | 208 | .53 | .94 | 2 | |||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 76.56 | .24 | .28 | .52 | (.20 | ) | (8.24 | ) | (8.44 | ) | 68.64 | (.50 | ) | 1,076 | .84 | .31 | ||||||||||||||||||||||||||||||||
12/31/2017 | 66.41 | .18 | 17.61 | 17.79 | (.31 | ) | (7.33 | ) | (7.64 | ) | 76.56 | 27.99 | 954 | .85 | .25 | |||||||||||||||||||||||||||||||||
12/31/2016 | 67.26 | .34 | 5.32 | 5.66 | (.38 | ) | (6.13 | ) | (6.51 | ) | 66.41 | 9.22 | 458 | .85 | .53 | |||||||||||||||||||||||||||||||||
12/31/2015 | 79.74 | .29 | 5.02 | 5.31 | (.55 | ) | (17.24 | ) | (17.79 | ) | 67.26 | 6.59 | 394 | .85 | .42 | |||||||||||||||||||||||||||||||||
12/31/2014 | 78.32 | .37 | 2 | 5.87 | 6.24 | (.92 | ) | (3.90 | ) | (4.82 | ) | 79.74 | 8.25 | 24 | .85 | .47 | 2 |
See end of tables for footnotes.
American Funds Insurance Series 197
Table of Contents
Financial highlights (continued)
(Loss) income from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net (losses) gains on | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
International Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | $ | 21.71 | $ | .34 | $ | (2.97 | ) | $ | (2.63 | ) | $ | (.40 | ) | $ | (1.02 | ) | $ | (1.42 | ) | $ | 17.66 | (12.94 | )% | $ | 4,811 | .53 | % | 1.62 | % | |||||||||||||||||||
12/31/2017 | 16.82 | .26 | 5.16 | 5.42 | (.30 | ) | (.23 | ) | (.53 | ) | 21.71 | 32.46 | 5,014 | .53 | 1.33 | |||||||||||||||||||||||||||||||||
12/31/2016 | 18.08 | .27 | .30 | .57 | (.28 | ) | (1.55 | ) | (1.83 | ) | 16.82 | 3.78 | 3,652 | .54 | 1.57 | |||||||||||||||||||||||||||||||||
12/31/2015 | 20.35 | .29 | (1.03 | ) | (.74 | ) | (.35 | ) | (1.18 | ) | (1.53 | ) | 18.08 | (4.25 | ) | 3,427 | .54 | 1.41 | ||||||||||||||||||||||||||||||
12/31/2014 | 21.22 | .30 | (.81 | ) | (.51 | ) | (.36 | ) | — | (.36 | ) | 20.35 | (2.41 | ) | 3,282 | .54 | 1.43 | |||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 21.67 | .27 | (2.93 | ) | (2.66 | ) | (.37 | ) | (1.02 | ) | (1.39 | ) | 17.62 | (13.11 | ) | 5 | .78 | 1.32 | ||||||||||||||||||||||||||||||
12/31/20173,4 | 17.17 | .09 | 4.93 | 5.02 | (.29 | ) | (.23 | ) | (.52 | ) | 21.67 | 29.46 | 5 | 2 | .77 | 6 | .43 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 21.63 | .29 | (2.95 | ) | (2.66 | ) | (.35 | ) | (1.02 | ) | (1.37 | ) | 17.60 | (13.13 | ) | 3,875 | .78 | 1.40 | ||||||||||||||||||||||||||||||
12/31/2017 | 16.76 | .22 | 5.13 | 5.35 | (.25 | ) | (.23 | ) | (.48 | ) | 21.63 | 32.14 | 4,422 | .78 | 1.10 | |||||||||||||||||||||||||||||||||
12/31/2016 | 18.02 | .23 | .30 | .53 | (.24 | ) | (1.55 | ) | (1.79 | ) | 16.76 | 3.53 | 3,710 | .79 | 1.35 | |||||||||||||||||||||||||||||||||
12/31/2015 | 20.29 | .24 | (1.03 | ) | (.79 | ) | (.30 | ) | (1.18 | ) | (1.48 | ) | 18.02 | (4.53 | ) | 3,978 | .79 | 1.17 | ||||||||||||||||||||||||||||||
12/31/2014 | 21.15 | .25 | (.81 | ) | (.56 | ) | (.30 | ) | — | (.30 | ) | 20.29 | (2.65 | ) | 4,374 | .79 | 1.19 | |||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 21.75 | .31 | (2.98 | ) | (2.67 | ) | (.36 | ) | (1.02 | ) | (1.38 | ) | 17.70 | (13.10 | ) | 24 | .71 | 1.48 | ||||||||||||||||||||||||||||||
12/31/2017 | 16.85 | .23 | 5.17 | 5.40 | (.27 | ) | (.23 | ) | (.50 | ) | 21.75 | 32.23 | 31 | .71 | 1.17 | |||||||||||||||||||||||||||||||||
12/31/2016 | 18.11 | .24 | .30 | .54 | (.25 | ) | (1.55 | ) | (1.80 | ) | 16.85 | 3.57 | 27 | .72 | 1.42 | |||||||||||||||||||||||||||||||||
12/31/2015 | 20.38 | .25 | (1.03 | ) | (.78 | ) | (.31 | ) | (1.18 | ) | (1.49 | ) | 18.11 | (4.44 | ) | 32 | .72 | 1.24 | ||||||||||||||||||||||||||||||
12/31/2014 | 21.24 | .27 | (.82 | ) | (.55 | ) | (.31 | ) | — | (.31 | ) | 20.38 | (2.56 | ) | 38 | .72 | 1.28 | |||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 21.42 | .23 | (2.93 | ) | (2.70 | ) | (.30 | ) | (1.02 | ) | (1.32 | ) | 17.40 | (13.41 | ) | 295 | 1.03 | 1.13 | ||||||||||||||||||||||||||||||
12/31/2017 | 16.64 | .11 | 5.16 | 5.27 | (.26 | ) | (.23 | ) | (.49 | ) | 21.42 | 31.89 | 289 | 1.03 | .55 | |||||||||||||||||||||||||||||||||
12/31/2016 | 17.93 | .18 | .29 | .47 | (.21 | ) | (1.55 | ) | (1.76 | ) | 16.64 | 3.21 | 66 | 1.04 | 1.03 | |||||||||||||||||||||||||||||||||
12/31/2015 | 20.23 | .17 | (1.00 | ) | (.83 | ) | (.29 | ) | (1.18 | ) | (1.47 | ) | 17.93 | (4.75 | ) | 46 | 1.04 | .88 | ||||||||||||||||||||||||||||||
12/31/2014 | 21.16 | .07 | (.68 | ) | (.61 | ) | (.32 | ) | — | (.32 | ) | 20.23 | (2.88 | ) | 18 | 1.04 | .31 | |||||||||||||||||||||||||||||||
New World Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | $ | 25.30 | $ | .27 | $ | (3.65 | ) | $ | (3.38 | ) | $ | (.27 | ) | $ | (.67 | ) | $ | (.94 | ) | $ | 20.98 | (13.83 | )% | $ | 1,702 | .77 | % | 1.11 | % | |||||||||||||||||||
12/31/2017 | 19.72 | .26 | 5.59 | 5.85 | (.27 | ) | — | (.27 | ) | 25.30 | 29.73 | 2,050 | .77 | 1.14 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 18.87 | .24 | .81 | 1.05 | (.20 | ) | — | (.20 | ) | 19.72 | 5.59 | 1,743 | .78 | 1.25 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 20.72 | .19 | (.71 | ) | (.52 | ) | (.17 | ) | (1.16 | ) | (1.33 | ) | 18.87 | (2.96 | ) | 1,562 | .79 | .92 | ||||||||||||||||||||||||||||||
12/31/2014 | 25.08 | .29 | 2 | (1.92 | ) | (1.63 | ) | (.29 | ) | (2.44 | ) | (2.73 | ) | 20.72 | (7.63 | ) | 1,433 | .78 | 1.23 | 2 | ||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 25.25 | .21 | (3.64 | ) | (3.43 | ) | (.23 | ) | (.67 | ) | (.90 | ) | 20.92 | (14.02 | ) | 2 | 1.02 | .91 | ||||||||||||||||||||||||||||||
12/31/20173,4 | 20.14 | .13 | 5.24 | 5.37 | (.26 | ) | — | (.26 | ) | 25.25 | 26.72 | 5 | 1 | 1.00 | 6 | .53 | 6 | |||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 25.07 | .20 | (3.61 | ) | (3.41 | ) | (.20 | ) | (.67 | ) | (.87 | ) | 20.79 | (14.04 | ) | 843 | 1.02 | .85 | ||||||||||||||||||||||||||||||
12/31/2017 | 19.54 | .20 | 5.55 | 5.75 | (.22 | ) | — | (.22 | ) | 25.07 | 29.44 | 1,055 | 1.02 | .89 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 18.71 | .19 | .79 | .98 | (.15 | ) | — | (.15 | ) | 19.54 | 5.26 | 911 | 1.03 | 1.00 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 20.54 | .14 | (.69 | ) | (.55 | ) | (.12 | ) | (1.16 | ) | (1.28 | ) | 18.71 | (3.14 | ) | 961 | 1.04 | .68 | ||||||||||||||||||||||||||||||
12/31/2014 | 24.88 | .24 | 2 | (1.91 | ) | (1.67 | ) | (.23 | ) | (2.44 | ) | (2.67 | ) | 20.54 | (7.87 | ) | 1,084 | 1.03 | 1.01 | 2 | ||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 24.99 | .14 | (3.59 | ) | (3.45 | ) | (.16 | ) | (.67 | ) | (.83 | ) | 20.71 | (14.25 | ) | 464 | 1.27 | .61 | ||||||||||||||||||||||||||||||
12/31/2017 | 19.51 | .14 | 5.52 | 5.66 | (.18 | ) | — | (.18 | ) | 24.99 | 29.06 | 427 | 1.27 | .61 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 18.69 | .14 | .80 | .94 | (.12 | ) | — | (.12 | ) | 19.51 | 5.04 | 240 | 1.28 | .75 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 20.56 | .08 | (.68 | ) | (.60 | ) | (.11 | ) | (1.16 | ) | (1.27 | ) | 18.69 | (3.37 | ) | 171 | 1.29 | .39 | ||||||||||||||||||||||||||||||
12/31/2014 | 24.99 | .09 | 2 | (1.83 | ) | (1.74 | ) | (.25 | ) | (2.44 | ) | (2.69 | ) | 20.56 | (8.13 | ) | 64 | 1.28 | .40 | 2 |
198 American Funds Insurance Series
Table of Contents
(Loss) income from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net (losses) gains on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
Blue Chip Income and Growth Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | $ | 14.96 | $ | .31 | $ | (1.44 | ) | $ | (1.13 | ) | $ | (.31 | ) | $ | (1.14 | ) | $ | (1.45 | ) | $ | 12.38 | (8.45 | )% | $ | 4,810 | .41 | % | 2.13 | % | |||||||||||||||||||
12/31/2017 | 13.53 | .32 | 1.96 | 2.28 | (.32 | ) | (.53 | ) | (.85 | ) | 14.96 | 17.30 | 5,581 | .41 | 2.27 | |||||||||||||||||||||||||||||||||
12/31/2016 | 12.62 | .31 | 1.97 | 2.28 | (.29 | ) | (1.08 | ) | (1.37 | ) | 13.53 | 19.06 | 5,099 | .41 | 2.39 | |||||||||||||||||||||||||||||||||
12/31/2015 | 14.69 | .31 | (.64 | ) | (.33 | ) | (.29 | ) | (1.45 | ) | (1.74 | ) | 12.62 | (2.72 | ) | 3,638 | .41 | 2.23 | ||||||||||||||||||||||||||||||
12/31/2014 | 13.12 | .46 | 2 | 1.59 | 2.05 | (.48 | ) | — | (.48 | ) | 14.69 | 15.69 | 3,542 | .42 | 3.31 | 2 | ||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 14.94 | .26 | (1.42 | ) | (1.16 | ) | (.29 | ) | (1.14 | ) | (1.43 | ) | 12.35 | (8.67 | ) | 3 | .66 | 1.84 | ||||||||||||||||||||||||||||||
12/31/20173,4 | 13.75 | .28 | 1.75 | 2.03 | (.31 | ) | (.53 | ) | (.84 | ) | 14.94 | 15.21 | 5 | 1 | .65 | 6 | 2.01 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 14.80 | .27 | (1.42 | ) | (1.15 | ) | (.27 | ) | (1.14 | ) | (1.41 | ) | 12.24 | (8.66 | ) | 2,850 | .66 | 1.88 | ||||||||||||||||||||||||||||||
12/31/2017 | 13.39 | .28 | 1.94 | 2.22 | (.28 | ) | (.53 | ) | (.81 | ) | 14.80 | 17.04 | 3,551 | .66 | 2.02 | |||||||||||||||||||||||||||||||||
12/31/2016 | 12.51 | .28 | 1.94 | 2.22 | (.26 | ) | (1.08 | ) | (1.34 | ) | 13.39 | 18.70 | 3,412 | .66 | 2.16 | |||||||||||||||||||||||||||||||||
12/31/2015 | 14.57 | .27 | (.62 | ) | (.35 | ) | (.26 | ) | (1.45 | ) | (1.71 | ) | 12.51 | (2.93 | ) | 3,228 | .66 | 1.97 | ||||||||||||||||||||||||||||||
12/31/2014 | 13.02 | .44 | 2 | 1.55 | 1.99 | (.44 | ) | — | (.44 | ) | 14.57 | 15.36 | 3,722 | .67 | 3.14 | 2 | ||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 14.77 | .23 | (1.42 | ) | (1.19 | ) | (.25 | ) | (1.14 | ) | (1.39 | ) | 12.19 | (8.92 | ) | 368 | .91 | 1.62 | ||||||||||||||||||||||||||||||
12/31/2017 | 13.39 | .25 | 1.93 | 2.18 | (.27 | ) | (.53 | ) | (.80 | ) | 14.77 | 16.70 | 247 | .91 | 1.76 | |||||||||||||||||||||||||||||||||
12/31/2016 | 12.53 | .24 | 1.96 | 2.20 | (.26 | ) | (1.08 | ) | (1.34 | ) | 13.39 | 18.49 | 132 | .91 | 1.81 | |||||||||||||||||||||||||||||||||
12/31/2015 | 14.63 | .24 | (.63 | ) | (.39 | ) | (.26 | ) | (1.45 | ) | (1.71 | ) | 12.53 | (3.21 | ) | 32 | .91 | 1.75 | ||||||||||||||||||||||||||||||
12/31/2014 | 13.12 | .34 | 2 | 1.63 | 1.97 | (.46 | ) | — | (.46 | ) | 14.63 | 15.13 | 9 | .92 | 2.33 | 2 | ||||||||||||||||||||||||||||||||
Global Growth and Income Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | $ | 15.81 | $ | .29 | $ | (1.62 | ) | $ | (1.33 | ) | $ | (.28 | ) | $ | (1.18 | ) | $ | (1.46 | ) | $ | 13.02 | (9.36 | )% | $ | 492 | .63 | % | 1.94 | % | |||||||||||||||||||
12/31/2017 | 13.02 | .35 | 3.06 | 3.41 | (.36 | ) | (.26 | ) | (.62 | ) | 15.81 | 26.40 | 485 | .63 | 2.43 | |||||||||||||||||||||||||||||||||
12/31/2016 | 12.35 | .28 | .66 | .94 | (.27 | ) | — | (.27 | ) | 13.02 | 7.61 | 571 | .63 | 2.18 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 12.78 | .36 | (.50 | ) | (.14 | ) | (.29 | ) | — | (.29 | ) | 12.35 | (1.14 | ) | 293 | .64 | 2.79 | |||||||||||||||||||||||||||||||
12/31/2014 | 12.53 | .43 | 2 | .31 | .74 | (.49 | ) | — | (.49 | ) | 12.78 | 6.00 | 200 | .63 | 3.34 | 2 | ||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 15.81 | .26 | (1.63 | ) | (1.37 | ) | (.26 | ) | (1.18 | ) | (1.44 | ) | 13.00 | (9.62 | ) | 1 | .88 | 1.74 | ||||||||||||||||||||||||||||||
12/31/20173,4 | 13.21 | .18 | 3.03 | 3.21 | (.35 | ) | (.26 | ) | (.61 | ) | 15.81 | 24.54 | 5 | — | 7 | .84 | 6 | 1.20 | 6 | |||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 15.78 | .26 | (1.63 | ) | (1.37 | ) | (.24 | ) | (1.18 | ) | (1.42 | ) | 12.99 | (9.63 | ) | 1,228 | .88 | 1.70 | ||||||||||||||||||||||||||||||
12/31/2017 | 13.00 | .31 | 3.05 | 3.36 | (.32 | ) | (.26 | ) | (.58 | ) | 15.78 | 26.06 | 1,538 | .88 | 2.11 | |||||||||||||||||||||||||||||||||
12/31/2016 | 12.33 | .25 | .65 | .90 | (.23 | ) | — | (.23 | ) | 13.00 | 7.34 | 1,405 | .88 | 1.98 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 12.75 | .22 | (.39 | ) | (.17 | ) | (.25 | ) | — | (.25 | ) | 12.33 | (1.34 | ) | 1,479 | .89 | 1.73 | |||||||||||||||||||||||||||||||
12/31/2014 | 12.51 | .41 | 2 | .29 | .70 | (.46 | ) | — | (.46 | ) | 12.75 | 5.64 | 1,685 | .88 | 3.22 | 2 | ||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 15.60 | .21 | (1.60 | ) | (1.39 | ) | (.22 | ) | (1.18 | ) | (1.40 | ) | 12.81 | (9.89 | ) | 95 | 1.13 | 1.43 | ||||||||||||||||||||||||||||||
12/31/2017 | 12.89 | .22 | 3.08 | 3.30 | (.33 | ) | (.26 | ) | (.59 | ) | 15.60 | 25.83 | 79 | 1.14 | 1.49 | |||||||||||||||||||||||||||||||||
12/31/2016 | 12.26 | .21 | .65 | .86 | (.23 | ) | — | (.23 | ) | 12.89 | 7.04 | 16 | 1.13 | 1.63 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 12.71 | .17 | (.37 | ) | (.20 | ) | (.25 | ) | — | (.25 | ) | 12.26 | (1.60 | ) | 5 | 1.14 | 1.32 | |||||||||||||||||||||||||||||||
12/31/2014 | 12.50 | .30 | 2 | .37 | .67 | (.46 | ) | — | (.46 | ) | 12.71 | 5.41 | 1 | 1.13 | 2.30 | 2 |
See end of tables for footnotes.
American Funds Insurance Series 199
Table of Contents
Financial highlights (continued)
(Loss) income from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net (losses) securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
Growth-Income Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | $ | 50.22 | $ | .84 | $ | (1.25 | ) | $ | (.41 | ) | $ | (.84 | ) | $ | (3.58 | ) | $ | (4.42 | ) | $ | 45.39 | (1.55 | )% | $ | 16,783 | .28 | % | 1.65 | % | |||||||||||||||||||
12/31/2017 | 44.41 | .81 | 8.89 | 9.70 | (.78 | ) | (3.11 | ) | (3.89 | ) | 50.22 | 22.68 | 15,765 | .28 | 1.69 | |||||||||||||||||||||||||||||||||
12/31/2016 | 45.40 | .79 | 4.09 | 4.88 | (.75 | ) | (5.12 | ) | (5.87 | ) | 44.41 | 11.80 | 12,588 | .29 | 1.79 | |||||||||||||||||||||||||||||||||
12/31/2015 | 52.76 | .79 | .37 | 1.16 | (.75 | ) | (7.77 | ) | (8.52 | ) | 45.40 | 1.72 | 10,747 | .29 | 1.59 | |||||||||||||||||||||||||||||||||
12/31/2014 | 50.72 | .81 | 4.57 | 5.38 | (.80 | ) | (2.54 | ) | (3.34 | ) | 52.76 | 10.91 | 10,812 | .29 | 1.56 | |||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 50.15 | .72 | (1.25 | ) | (.53 | ) | (.76 | ) | (3.58 | ) | (4.34 | ) | 45.28 | (1.78 | ) | 7 | .53 | 1.43 | ||||||||||||||||||||||||||||||
12/31/20173,4 | 45.39 | .67 | 7.96 | 8.63 | (.76 | ) | (3.11 | ) | (3.87 | ) | 50.15 | 19.83 | 5 | 2 | .52 | 6 | 1.41 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 49.71 | .71 | (1.23 | ) | (.52 | ) | (.71 | ) | (3.58 | ) | (4.29 | ) | 44.90 | (1.79 | ) | 12,035 | .53 | 1.40 | ||||||||||||||||||||||||||||||
12/31/2017 | 44.00 | .68 | 8.80 | 9.48 | (.66 | ) | (3.11 | ) | (3.77 | ) | 49.71 | 22.38 | 13,930 | .53 | 1.45 | |||||||||||||||||||||||||||||||||
12/31/2016 | 45.04 | .67 | 4.05 | 4.72 | (.64 | ) | (5.12 | ) | (5.76 | ) | 44.00 | 11.51 | 12,854 | .54 | 1.54 | |||||||||||||||||||||||||||||||||
12/31/2015 | 52.41 | .66 | .37 | 1.03 | (.63 | ) | (7.77 | ) | (8.40 | ) | 45.04 | 1.45 | 12,895 | .54 | 1.34 | |||||||||||||||||||||||||||||||||
12/31/2014 | 50.40 | .67 | 4.55 | 5.22 | (.67 | ) | (2.54 | ) | (3.21 | ) | 52.41 | 10.63 | 14,337 | .54 | 1.31 | |||||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 50.29 | .75 | (1.25 | ) | (.50 | ) | (.74 | ) | (3.58 | ) | (4.32 | ) | 45.47 | (1.72 | ) | 140 | .46 | 1.47 | ||||||||||||||||||||||||||||||
12/31/2017 | 44.47 | .72 | 8.90 | 9.62 | (.69 | ) | (3.11 | ) | (3.80 | ) | 50.29 | 22.47 | 168 | .46 | 1.52 | |||||||||||||||||||||||||||||||||
12/31/2016 | 45.46 | .71 | 4.09 | 4.80 | (.67 | ) | (5.12 | ) | (5.79 | ) | 44.47 | 11.59 | 156 | .47 | 1.61 | |||||||||||||||||||||||||||||||||
12/31/2015 | 52.82 | .70 | .37 | 1.07 | (.66 | ) | (7.77 | ) | (8.43 | ) | 45.46 | 1.53 | 161 | .47 | 1.41 | |||||||||||||||||||||||||||||||||
12/31/2014 | 50.77 | .71 | 4.59 | 5.30 | (.71 | ) | (2.54 | ) | (3.25 | ) | 52.82 | 10.71 | 185 | .47 | 1.38 | |||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 49.31 | .58 | (1.23 | ) | (.65 | ) | (.61 | ) | (3.58 | ) | (4.19 | ) | 44.47 | (2.05 | ) | 899 | .78 | 1.15 | ||||||||||||||||||||||||||||||
12/31/2017 | 43.73 | .56 | 8.73 | 9.29 | (.60 | ) | (3.11 | ) | (3.71 | ) | 49.31 | 22.08 | 827 | .78 | 1.19 | |||||||||||||||||||||||||||||||||
12/31/2016 | 44.82 | .56 | 4.02 | 4.58 | (.55 | ) | (5.12 | ) | (5.67 | ) | 43.73 | 11.25 | 495 | .79 | 1.29 | |||||||||||||||||||||||||||||||||
12/31/2015 | 52.39 | .58 | .33 | .91 | (.71 | ) | (7.77 | ) | (8.48 | ) | 44.82 | 1.21 | 410 | .79 | 1.25 | |||||||||||||||||||||||||||||||||
12/31/2014 | 50.56 | .58 | 4.51 | 5.09 | (.72 | ) | (2.54 | ) | (3.26 | ) | 52.39 | 10.34 | 30 | .79 | 1.11 | |||||||||||||||||||||||||||||||||
International Growth and Income Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | $ | 17.72 | $ | .45 | $ | (2.39 | ) | $ | (1.94 | ) | $ | (.43 | ) | $ | — | $ | (.43 | ) | $ | 15.35 | (11.00 | )% | $ | 1,034 | .65 | % | 2.62 | % | ||||||||||||||||||||
12/31/2017 | 14.48 | .46 | 3.20 | 3.66 | (.42 | ) | | — | | (.42 | ) | 17.72 | 25.31 | 1,121 | .66 | 2.75 | ||||||||||||||||||||||||||||||||
12/31/2016 | 14.72 | .43 | (.19 | ) | .24 | (.42 | ) | (.06 | ) | (.48 | ) | 14.48 | 1.71 | 820 | .68 | 2.93 | ||||||||||||||||||||||||||||||||
12/31/2015 | 16.27 | .42 | (1.25 | ) | (.83 | ) | (.38 | ) | (.34 | ) | (.72 | ) | 14.72 | (5.34 | ) | 707 | .68 | 2.60 | ||||||||||||||||||||||||||||||
12/31/2014 | 17.48 | .58 | 2 | (1.09 | ) | (.51 | ) | (.53 | ) | (.17 | ) | (.70 | ) | 16.27 | (2.93 | ) | 740 | .68 | 3.32 | 2 | ||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 17.70 | .41 | (2.39 | ) | (1.98 | ) | (.39 | ) | — | (.39 | ) | 15.33 | (11.24 | ) | 2 | .90 | 2.35 | |||||||||||||||||||||||||||||||
12/31/20173,4 | 14.69 | .34 | 3.08 | 3.42 | (.41 | ) | — | (.41 | ) | 17.70 | 23.36 | 5 | 2 | .91 | 6 | 1.99 | 6 | |||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 17.66 | .41 | (2.38 | ) | (1.97 | ) | (.39 | ) | — | (.39 | ) | 15.30 | (11.23 | ) | 230 | .90 | 2.38 | |||||||||||||||||||||||||||||||
12/31/2017 | 14.43 | .43 | 3.17 | 3.60 | (.37 | ) | — | (.37 | ) | 17.66 | 25.03 | 276 | .91 | 2.60 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 14.68 | .40 | (.21 | ) | .19 | (.38 | ) | (.06 | ) | (.44 | ) | 14.43 | 1.44 | 244 | .93 | 2.72 | ||||||||||||||||||||||||||||||||
12/31/2015 | 16.22 | .38 | (1.24 | ) | (.86 | ) | (.34 | ) | (.34 | ) | (.68 | ) | 14.68 | (5.60 | ) | 254 | .93 | 2.32 | ||||||||||||||||||||||||||||||
12/31/2014 | 17.43 | .56 | 2 | (1.10 | ) | (.54 | ) | (.50 | ) | (.17 | ) | (.67 | ) | 16.22 | (3.15 | ) | 248 | .93 | 3.21 | 2 | ||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 17.58 | .36 | (2.36 | ) | (2.00 | ) | (.36 | ) | — | (.36 | ) | 15.22 | (11.46 | ) | 71 | 1.15 | 2.10 | |||||||||||||||||||||||||||||||
12/31/2017 | 14.38 | .37 | 3.18 | 3.55 | (.35 | ) | — | (.35 | ) | 17.58 | 24.72 | 63 | 1.16 | 2.24 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 14.63 | .36 | (.19 | ) | .17 | (.36 | ) | (.06 | ) | (.42 | ) | 14.38 | 1.18 | 37 | 1.18 | 2.43 | ||||||||||||||||||||||||||||||||
12/31/2015 | 16.19 | .33 | (1.23 | ) | (.90 | ) | (.32 | ) | (.34 | ) | (.66 | ) | 14.63 | (5.82 | ) | 32 | 1.18 | 2.02 | ||||||||||||||||||||||||||||||
12/31/2014 | 17.45 | .26 | 2 | (.85 | ) | (.59 | ) | (.50 | ) | (.17 | ) | (.67 | ) | 16.19 | (3.39 | ) | 20 | 1.18 | 1.52 | 2 |
200 American Funds Insurance Series
Table of Contents
(Loss) income from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net (losses) securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
Capital Income Builder |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | $ | 10.40 | $ | .31 | $ | (1.00 | ) | $ | (.69 | ) | $ | (.32 | ) | $ | (.02 | ) | $ | (.34 | ) | $ | 9.37 | (6.77 | )% | $ | 317 | .54 | % | 3.08 | % | |||||||||||||||||||
12/31/2017 | 9.46 | .32 | .93 | 1.25 | (.31 | ) | — | (.31 | ) | 10.40 | 13.29 | 254 | .54 | 3.21 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 9.40 | .32 | .07 | .39 | (.33 | ) | — | (.33 | ) | 9.46 | 4.17 | 156 | .54 | 3.39 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 9.81 | .28 | (.40 | ) | (.12 | ) | (.29 | ) | — | (.29 | ) | 9.40 | (1.23 | ) | 80 | .56 | 2.88 | |||||||||||||||||||||||||||||||
12/31/20143,10 | 10.00 | .19 | (.18 | ) | .01 | (.19 | ) | (.01 | ) | (.20 | ) | 9.81 | .12 | 5 | 20 | .56 | 6 | 2.87 | 6 | |||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 10.39 | .28 | (.99 | ) | (.71 | ) | (.30 | ) | (.02 | ) | (.32 | ) | 9.36 | (7.01 | ) | 2 | .79 | 2.82 | ||||||||||||||||||||||||||||||
12/31/20173,4 | 9.57 | .27 | .84 | 1.11 | (.29 | ) | — | (.29 | ) | 10.39 | 11.72 | 5 | 1 | .79 | 6 | 2.63 | 6 | |||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 10.40 | .28 | (1.00 | ) | (.72 | ) | (.30 | ) | (.02 | ) | (.32 | ) | 9.36 | (7.08 | ) | 4 | .79 | 2.83 | ||||||||||||||||||||||||||||||
12/31/2017 | 9.46 | .29 | .93 | 1.22 | (.28 | ) | — | (.28 | ) | 10.40 | 13.04 | 1 | .79 | 2.82 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 9.40 | .27 | .11 | .38 | (.32 | ) | — | (.32 | ) | 9.46 | 4.08 | — | 7 | .80 | 2.82 | |||||||||||||||||||||||||||||||||
12/31/2015 | 9.81 | .31 | (.43 | ) | (.12 | ) | (.29 | ) | — | (.29 | ) | 9.40 | (1.23 | )11 | — | 7 | .46 | 11 | 3.12 | 11 | ||||||||||||||||||||||||||||
12/31/20143,10 | 10.00 | .20 | (.19 | ) | .01 | (.19 | ) | (.01 | ) | (.20 | ) | 9.81 | .12 | 5,11 | — | 7 | .47 | 6,11 | 2.94 | 6,11 | ||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 10.38 | .26 | (1.00 | ) | (.74 | ) | (.27 | ) | (.02 | ) | (.29 | ) | 9.35 | (7.25 | ) | 352 | 1.04 | 2.58 | ||||||||||||||||||||||||||||||
12/31/2017 | 9.45 | .27 | .92 | 1.19 | (.26 | ) | — | (.26 | ) | 10.38 | 12.65 | 338 | 1.04 | 2.72 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 9.38 | .27 | .08 | .35 | (.28 | ) | — | (.28 | ) | 9.45 | 3.78 | 256 | 1.04 | 2.88 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 9.80 | .25 | (.42 | ) | (.17 | ) | (.25 | ) | — | (.25 | ) | 9.38 | (1.79 | ) | 157 | 1.05 | 2.55 | |||||||||||||||||||||||||||||||
12/31/20143,10 | 10.00 | .14 | (.16 | ) | (.02 | ) | (.17 | ) | (.01 | ) | (.18 | ) | 9.80 | (.21 | )5 | 55 | 1.06 | 6 | 2.08 | 6 | ||||||||||||||||||||||||||||
Asset Allocation Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | $ | 23.71 | $ | .48 | $ | (1.43 | ) | $ | (.95 | ) | $ | (.44 | ) | $ | (1.03 | ) | $ | (1.47 | ) | $ | 21.29 | (4.35 | )% | $ | 14,627 | .28 | % | 2.04 | % | |||||||||||||||||||
12/31/2017 | 21.68 | .44 | 3.06 | 3.50 | (.41 | ) | (1.06 | ) | (1.47 | ) | 23.71 | 16.51 | 16,556 | .29 | 1.90 | |||||||||||||||||||||||||||||||||
12/31/2016 | 20.62 | .42 | 1.54 | 1.96 | (.39 | ) | (.51 | ) | (.90 | ) | 21.68 | 9.69 | 13,008 | .29 | 1.97 | |||||||||||||||||||||||||||||||||
12/31/2015 | 22.23 | .40 | (.02 | ) | .38 | (.40 | ) | (1.59 | ) | (1.99 | ) | 20.62 | 1.64 | 10,913 | .29 | 1.85 | ||||||||||||||||||||||||||||||||
12/31/2014 | 22.49 | .44 | .81 | 1.25 | (.39 | ) | (1.12 | ) | (1.51 | ) | 22.23 | 5.66 | 11,997 | .30 | 1.95 | |||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 23.69 | .42 | (1.42 | ) | (1.00 | ) | (.40 | ) | (1.03 | ) | (1.43 | ) | 21.26 | (4.58 | ) | 7 | .53 | 1.82 | ||||||||||||||||||||||||||||||
12/31/20173,4 | 21.97 | .39 | 2.78 | 3.17 | (.39 | ) | (1.06 | ) | (1.45 | ) | 23.69 | 14.78 | 5 | 4 | .53 | 6 | 1.69 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 23.49 | .41 | (1.41 | ) | (1.00 | ) | (.38 | ) | (1.03 | ) | (1.41 | ) | 21.08 | (4.60 | ) | 4,668 | .53 | 1.78 | ||||||||||||||||||||||||||||||
12/31/2017 | 21.49 | .37 | 3.04 | 3.41 | (.35 | ) | (1.06 | ) | (1.41 | ) | 23.49 | 16.23 | 5,480 | .54 | 1.64 | |||||||||||||||||||||||||||||||||
12/31/2016 | 20.45 | .36 | 1.53 | 1.89 | (.34 | ) | (.51 | ) | (.85 | ) | 21.49 | 9.41 | 5,144 | .54 | 1.72 | |||||||||||||||||||||||||||||||||
12/31/2015 | 22.06 | .34 | (.01 | ) | .33 | (.35 | ) | (1.59 | ) | (1.94 | ) | 20.45 | 1.40 | 5,008 | .54 | 1.60 | ||||||||||||||||||||||||||||||||
12/31/2014 | 22.33 | .37 | .81 | 1.18 | (.33 | ) | (1.12 | ) | (1.45 | ) | 22.06 | 5.40 | 5,494 | .55 | 1.69 | |||||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 23.73 | .43 | (1.41 | ) | (.98 | ) | (.40 | ) | (1.03 | ) | (1.43 | ) | 21.32 | (4.49 | ) | 29 | .46 | 1.85 | ||||||||||||||||||||||||||||||
12/31/2017 | 21.70 | .39 | 3.07 | 3.46 | (.37 | ) | (1.06 | ) | (1.43 | ) | 23.73 | 16.29 | 38 | .47 | 1.72 | |||||||||||||||||||||||||||||||||
12/31/2016 | 20.64 | .38 | 1.54 | 1.92 | (.35 | ) | (.51 | ) | (.86 | ) | 21.70 | 9.49 | 35 | .47 | 1.79 | |||||||||||||||||||||||||||||||||
12/31/2015 | 22.25 | .36 | (.02 | ) | .34 | (.36 | ) | (1.59 | ) | (1.95 | ) | 20.64 | 1.46 | 36 | .47 | 1.67 | ||||||||||||||||||||||||||||||||
12/31/2014 | 22.51 | .39 | .81 | 1.20 | (.34 | ) | (1.12 | ) | (1.46 | ) | 22.25 | 5.47 | 40 | .48 | 1.76 | |||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 23.40 | .35 | (1.40 | ) | (1.05 | ) | (.33 | ) | (1.03 | ) | (1.36 | ) | 20.99 | (4.83 | ) | 3,594 | .78 | 1.54 | ||||||||||||||||||||||||||||||
12/31/2017 | 21.43 | .32 | 3.02 | 3.34 | (.31 | ) | (1.06 | ) | (1.37 | ) | 23.40 | 15.91 | 3,582 | .79 | 1.40 | |||||||||||||||||||||||||||||||||
12/31/2016 | 20.40 | .31 | 1.53 | 1.84 | (.30 | ) | (.51 | ) | (.81 | ) | 21.43 | 9.16 | 2,861 | .79 | 1.47 | |||||||||||||||||||||||||||||||||
12/31/2015 | 22.11 | .30 | (.02 | ) | .28 | (.40 | ) | (1.59 | ) | (1.99 | ) | 20.40 | 1.14 | 2,414 | .79 | 1.45 | ||||||||||||||||||||||||||||||||
12/31/2014 | 22.46 | .34 | .79 | 1.13 | (.36 | ) | (1.12 | ) | (1.48 | ) | 22.11 | 5.16 | 32 | .80 | 1.55 |
See end of tables for footnotes.
American Funds Insurance Series 201
Table of Contents
Financial highlights (continued)
(Loss) income from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net (losses) securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
Global Balanced Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | $ | 12.75 | $ | .23 | $ | (.96 | ) | $ | (.73 | ) | $ | (.20 | ) | $ | (.15 | ) | $ | (.35 | ) | $ | 11.67 | (5.81 | )% | $ | 110 | .72 | % | 1.82 | % | |||||||||||||||||||
12/31/2017 | 11.08 | .21 | 1.99 | 2.20 | (.15 | ) | (.38 | ) | (.53 | ) | 12.75 | 19.91 | 93 | .72 | 1.68 | |||||||||||||||||||||||||||||||||
12/31/2016 | 10.74 | .19 | .32 | .51 | (.17 | ) | — | (.17 | ) | 11.08 | 4.73 | 64 | .72 | 1.73 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 11.11 | .20 | (.28 | ) | (.08 | ) | (.14 | ) | (.15 | ) | (.29 | ) | 10.74 | (.69 | ) | 47 | .72 | 1.80 | ||||||||||||||||||||||||||||||
12/31/2014 | 11.37 | .25 | 2 | (.03 | ) | .22 | (.18 | ) | (.30 | ) | (.48 | ) | 11.11 | 1.87 | 37 | .71 | 2.14 | 2 | ||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 12.74 | .18 | (.94 | ) | (.76 | ) | (.18 | ) | (.15 | ) | (.33 | ) | 11.65 | (6.03 | ) | 2 | .98 | 1.44 | ||||||||||||||||||||||||||||||
12/31/20173,4 | 11.18 | .16 | 1.92 | 2.08 | (.14 | ) | (.38 | ) | (.52 | ) | 12.74 | 18.71 | 5 | — | 7 | .94 | 6 | 1.27 | 6 | |||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 12.72 | .20 | (.96 | ) | (.76 | ) | (.16 | ) | (.15 | ) | (.31 | ) | 11.65 | (6.01 | ) | 185 | .97 | 1.57 | ||||||||||||||||||||||||||||||
12/31/2017 | 11.06 | .18 | 1.98 | 2.16 | (.12 | ) | (.38 | ) | (.50 | ) | 12.72 | 19.57 | 210 | .96 | 1.43 | |||||||||||||||||||||||||||||||||
12/31/2016 | 10.72 | .16 | .32 | .48 | (.14 | ) | — | (.14 | ) | 11.06 | 4.48 | 178 | .97 | 1.48 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 11.09 | .18 | (.28 | ) | (.10 | ) | (.12 | ) | (.15 | ) | (.27 | ) | 10.72 | (.95 | ) | 171 | .97 | 1.60 | ||||||||||||||||||||||||||||||
12/31/2014 | 11.35 | .22 | 2 | (.03 | ) | .19 | (.15 | ) | (.30 | ) | (.45 | ) | 11.09 | 1.63 | 179 | .96 | 1.88 | 2 | ||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 12.63 | .17 | (.96 | ) | (.79 | ) | (.14 | ) | (.15 | ) | (.29 | ) | 11.55 | (6.31 | ) | 69 | 1.22 | 1.34 | ||||||||||||||||||||||||||||||
12/31/2017 | 11.00 | .13 | 1.99 | 2.12 | (.11 | ) | (.38 | ) | (.49 | ) | 12.63 | 19.38 | 51 | 1.22 | 1.07 | |||||||||||||||||||||||||||||||||
12/31/2016 | 10.69 | .12 | .33 | .45 | (.14 | ) | — | (.14 | ) | 11.00 | 4.21 | 10 | 1.24 | 1.12 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 11.09 | .06 | (.17 | ) | (.11 | ) | (.14 | ) | (.15 | ) | (.29 | ) | 10.69 | (1.00 | ) | 1 | 1.34 | .58 | ||||||||||||||||||||||||||||||
12/31/2014 | 11.35 | .24 | 2 | (.02 | ) | .22 | (.18 | ) | (.30 | ) | (.48 | ) | 11.09 | 1.88 | 11 | — | 7 | .67 | 11 | 2.07 | 2,11 | |||||||||||||||||||||||||||
Bond Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | $ | 10.82 | $ | .29 | $ | (.35 | ) | $ | (.06 | ) | $ | (.28 | ) | $ | (.01 | ) | $ | (.29 | ) | $ | 10.47 | (.45 | )% | $ | 5,962 | .38 | % | 2.70 | % | |||||||||||||||||||
12/31/2017 | 10.80 | .24 | .18 | .42 | (.24 | ) | (.16 | ) | (.40 | ) | 10.82 | 3.88 | 6,434 | .38 | 2.19 | |||||||||||||||||||||||||||||||||
12/31/2016 | 10.70 | .21 | .14 | .35 | (.21 | ) | (.04 | ) | (.25 | ) | 10.80 | 3.27 | 6,829 | .38 | 1.91 | |||||||||||||||||||||||||||||||||
12/31/2015 | 11.08 | .22 | (.17 | ) | .05 | (.21 | ) | (.22 | ) | (.43 | ) | 10.70 | .45 | 5,731 | .38 | 1.95 | ||||||||||||||||||||||||||||||||
12/31/2014 | 10.73 | .23 | .37 | .60 | (.25 | ) | — | 8 | (.25 | ) | 11.08 | 5.59 | 4,977 | .39 | 2.03 | |||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 10.80 | .26 | (.33 | ) | (.07 | ) | (.27 | ) | (.01 | ) | (.28 | ) | 10.45 | (.60 | ) | 3 | .63 | 2.50 | ||||||||||||||||||||||||||||||
12/31/20173,4 | 10.82 | .22 | .15 | .37 | (.23 | ) | (.16 | ) | (.39 | ) | 10.80 | 3.46 | 5 | 1 | .62 | 6 | 2.01 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 10.69 | .26 | (.34 | ) | (.08 | ) | (.26 | ) | (.01 | ) | (.27 | ) | 10.34 | (.71 | ) | 3,524 | .63 | 2.45 | ||||||||||||||||||||||||||||||
12/31/2017 | 10.67 | .21 | .18 | .39 | (.21 | ) | (.16 | ) | (.37 | ) | 10.69 | 3.67 | 3,966 | .63 | 1.94 | |||||||||||||||||||||||||||||||||
12/31/2016 | 10.58 | .18 | .13 | .31 | (.18 | ) | (.04 | ) | (.22 | ) | 10.67 | 2.95 | 3,959 | .63 | 1.65 | |||||||||||||||||||||||||||||||||
12/31/2015 | 10.95 | .18 | (.15 | ) | .03 | (.18 | ) | (.22 | ) | (.40 | ) | 10.58 | .28 | 4,135 | .63 | 1.69 | ||||||||||||||||||||||||||||||||
12/31/2014 | 10.61 | .20 | .36 | .56 | (.22 | ) | — | 8 | (.22 | ) | 10.95 | 5.28 | 4,565 | .64 | 1.79 | |||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 10.68 | .23 | (.33 | ) | (.10 | ) | (.24 | ) | (.01 | ) | (.25 | ) | 10.33 | (.89 | ) | 366 | .88 | 2.22 | ||||||||||||||||||||||||||||||
12/31/2017 | 10.70 | .19 | .16 | .35 | (.21 | ) | (.16 | ) | (.37 | ) | 10.68 | 3.29 | 297 | .88 | 1.72 | |||||||||||||||||||||||||||||||||
12/31/2016 | 10.61 | .15 | .15 | .30 | (.17 | ) | (.04 | ) | (.21 | ) | 10.70 | 2.80 | 102 | .88 | 1.41 | |||||||||||||||||||||||||||||||||
12/31/2015 | 11.01 | .16 | (.16 | ) | — | (.18 | ) | (.22 | ) | (.40 | ) | 10.61 | (.08 | ) | 59 | .88 | 1.47 | |||||||||||||||||||||||||||||||
12/31/2014 | 10.69 | .16 | .39 | .55 | (.23 | ) | — | 8 | (.23 | ) | 11.01 | 5.15 | 29 | .89 | 1.43 |
202 American Funds Insurance Series
Table of Contents
(Loss) income from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net (losses) securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
Global Bond Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | $ | 11.88 | $ | .30 | $ | (.44 | ) | $ | (.14 | ) | $ | (.28 | ) | $ | (.04 | ) | $ | (.32 | ) | $ | 11.42 | (1.14 | )% | $ | 1,015 | .57 | % | 2.56 | % | |||||||||||||||||||
12/31/2017 | 11.22 | .28 | .52 | .80 | (.07 | ) | (.07 | ) | (.14 | ) | 11.88 | 7.11 | 1,273 | .56 | 2.37 | |||||||||||||||||||||||||||||||||
12/31/2016 | 11.01 | .26 | .06 | .32 | (.09 | ) | (.02 | ) | (.11 | ) | 11.22 | 2.92 | 1,115 | .57 | 2.26 | |||||||||||||||||||||||||||||||||
12/31/2015 | 11.77 | .27 | (.71 | ) | (.44 | ) | (.01 | ) | (.31 | ) | (.32 | ) | 11.01 | (3.75 | ) | 1,032 | .57 | 2.34 | ||||||||||||||||||||||||||||||
12/31/2014 | 11.88 | .29 | (.08 | ) | .21 | (.21 | ) | (.11 | ) | (.32 | ) | 11.77 | 1.71 | 1,194 | .57 | 2.35 | ||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 11.87 | .27 | (.43 | ) | (.16 | ) | (.26 | ) | (.04 | ) | (.30 | ) | 11.41 | (1.29 | ) | 1 | .82 | 2.36 | ||||||||||||||||||||||||||||||
12/31/20173,4 | 11.22 | .26 | .52 | .78 | (.06 | ) | (.07 | ) | (.13 | ) | 11.87 | 7.00 | 5 | — | 7 | .72 | 6 | 2.27 | 6 | |||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 11.79 | .27 | (.43 | ) | (.16 | ) | (.25 | ) | (.04 | ) | (.29 | ) | 11.34 | (1.33 | ) | 1,032 | .82 | 2.32 | ||||||||||||||||||||||||||||||
12/31/2017 | 11.14 | .25 | .51 | .76 | (.04 | ) | (.07 | ) | (.11 | ) | 11.79 | 6.86 | 1,164 | .81 | 2.12 | |||||||||||||||||||||||||||||||||
12/31/2016 | 10.93 | .23 | .07 | .30 | (.07 | ) | (.02 | ) | (.09 | ) | 11.14 | 2.71 | 1,121 | .82 | 2.01 | |||||||||||||||||||||||||||||||||
12/31/2015 | 11.72 | .24 | (.71 | ) | (.47 | ) | (.01 | ) | (.31 | ) | (.32 | ) | 10.93 | (4.07 | ) | 1,208 | .82 | 2.09 | ||||||||||||||||||||||||||||||
12/31/2014 | 11.81 | .26 | (.09 | ) | .17 | (.15 | ) | (.11 | ) | (.26 | ) | 11.72 | 1.39 | 1,386 | .82 | 2.11 | ||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 11.70 | .24 | (.43 | ) | (.19 | ) | (.23 | ) | (.04 | ) | (.27 | ) | 11.24 | (1.61 | ) | 40 | 1.07 | 2.09 | ||||||||||||||||||||||||||||||
12/31/2017 | 11.08 | .22 | .51 | .73 | (.04 | ) | (.07 | ) | (.11 | ) | 11.70 | 6.63 | 31 | 1.06 | 1.89 | |||||||||||||||||||||||||||||||||
12/31/2016 | 10.89 | .20 | .06 | .26 | (.05 | ) | (.02 | ) | (.07 | ) | 11.08 | 2.42 | 12 | 1.07 | 1.76 | |||||||||||||||||||||||||||||||||
12/31/2015 | 11.70 | .21 | (.71 | ) | (.50 | ) | — | 8 | (.31 | ) | (.31 | ) | 10.89 | (4.27 | ) | 6 | 1.07 | 1.86 | ||||||||||||||||||||||||||||||
12/31/2014 | 11.87 | .20 | (.05 | ) | .15 | (.21 | ) | (.11 | ) | (.32 | ) | 11.70 | 1.16 | 4 | 1.09 | 1.66 | ||||||||||||||||||||||||||||||||
High-Income Bond Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | $ | 10.19 | $ | .64 | $ | (.84 | ) | $ | (.20 | ) | $ | (.65 | ) | $ | — | $ | (.65 | ) | $ | 9.34 | (2.15 | )% | $ | 501 | .50 | % | 6.32 | % | ||||||||||||||||||||
12/31/2017 | 10.18 | .63 | .10 | .73 | (.72 | ) | — | (.72 | ) | 10.19 | 7.25 | 632 | .49 | 5.98 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 9.19 | .61 | 1.02 | 1.63 | (.64 | ) | — | (.64 | ) | 10.18 | 17.83 | 949 | .49 | 6.18 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 10.54 | .64 | (1.36 | ) | (.72 | ) | (.63 | ) | — | (.63 | ) | 9.19 | (6.94 | ) | 1,017 | .48 | 6.12 | |||||||||||||||||||||||||||||||
12/31/2014 | 11.13 | .67 | (.59 | ) | .08 | (.67 | ) | — | (.67 | ) | 10.54 | .80 | 1,017 | .48 | 5.90 | |||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 10.18 | .62 | (.84 | ) | (.22 | ) | (.63 | ) | — | (.63 | ) | 9.33 | (2.35 | ) | 1 | .75 | 6.11 | |||||||||||||||||||||||||||||||
12/31/20173,4 | 10.28 | .60 | .02 | .62 | (.72 | ) | — | (.72 | ) | 10.18 | 6.02 | 5 | — | 7 | .72 | 6 | 5.74 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 10.03 | .61 | (.83 | ) | (.22 | ) | (.62 | ) | — | (.62 | ) | 9.19 | (2.34 | ) | 661 | .75 | 6.07 | |||||||||||||||||||||||||||||||
12/31/2017 | 10.04 | .59 | .10 | .69 | (.70 | ) | — | (.70 | ) | 10.03 | 6.89 | 776 | .74 | 5.72 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 9.06 | .58 | 1.01 | 1.59 | (.61 | ) | — | (.61 | ) | 10.04 | 17.69 | 799 | .74 | 5.92 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 10.41 | .60 | (1.35 | ) | (.75 | ) | (.60 | ) | — | (.60 | ) | 9.06 | (7.30 | ) | 765 | .73 | 5.85 | |||||||||||||||||||||||||||||||
12/31/2014 | 10.99 | .63 | (.57 | ) | .06 | (.64 | ) | — | (.64 | ) | 10.41 | .63 | 929 | .73 | 5.67 | |||||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 10.23 | .63 | (.85 | ) | (.22 | ) | (.63 | ) | — | (.63 | ) | 9.38 | (2.33 | ) | 10 | .68 | 6.14 | |||||||||||||||||||||||||||||||
12/31/2017 | 10.22 | .61 | .10 | .71 | (.70 | ) | — | (.70 | ) | 10.23 | 7.02 | 12 | .67 | 5.79 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 9.22 | .59 | 1.03 | 1.62 | (.62 | ) | — | (.62 | ) | 10.22 | 17.68 | 13 | .67 | 5.99 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 10.57 | .62 | (1.37 | ) | (.75 | ) | (.60 | ) | — | (.60 | ) | 9.22 | (7.13 | ) | 12 | .66 | 5.91 | |||||||||||||||||||||||||||||||
12/31/2014 | 11.16 | .65 | (.59 | ) | .06 | (.65 | ) | — | (.65 | ) | 10.57 | .59 | 16 | .66 | 5.74 | |||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 10.82 | .63 | (.90 | ) | (.27 | ) | (.59 | ) | — | (.59 | ) | 9.96 | (2.64 | ) | 31 | 1.00 | 5.83 | |||||||||||||||||||||||||||||||
12/31/2017 | 10.79 | .61 | .10 | .71 | (.68 | ) | — | (.68 | ) | 10.82 | 6.63 | 34 | .99 | 5.46 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 9.73 | .60 | 1.07 | 1.67 | (.61 | ) | — | (.61 | ) | 10.79 | 17.29 | 21 | .99 | 5.55 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 11.05 | .62 | (1.43 | ) | (.81 | ) | (.51 | ) | — | (.51 | ) | 9.73 | (7.42 | ) | 1 | .98 | 5.51 | |||||||||||||||||||||||||||||||
12/31/2014 | 11.12 | .63 | (.59 | ) | .04 | (.11 | ) | — | (.11 | ) | 11.05 | .35 | — | 7 | .98 | 5.49 |
See end of tables for footnotes.
American Funds Insurance Series 203
Table of Contents
Financial highlights (continued)
(Loss) income from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net (losses) gains on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
Mortgage Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | $ | 10.47 | $ | .20 | $ | (.14 | ) | $ | .06 | $ | (.23 | ) | $ | — | $ | (.23 | ) | $ | 10.30 | .58 | % | $ | 209 | .48 | % | 1.97 | % | |||||||||||||||||||||
12/31/2017 | 10.56 | .16 | — | 8 | .16 | (.18 | ) | (.07 | ) | (.25 | ) | 10.47 | 1.47 | 265 | .47 | 1.52 | ||||||||||||||||||||||||||||||||
12/31/2016 | 10.61 | .15 | .11 | .26 | (.20 | ) | (.11 | ) | (.31 | ) | 10.56 | 2.50 | 269 | .46 | 1.39 | |||||||||||||||||||||||||||||||||
12/31/2015 | 10.70 | .10 | .13 | .23 | (.18 | ) | (.14 | ) | (.32 | ) | 10.61 | 2.09 | 272 | .45 | .89 | |||||||||||||||||||||||||||||||||
12/31/2014 | 10.23 | .12 | .45 | .57 | (.10 | ) | — | (.10 | ) | 10.70 | 5.54 | 292 | .45 | 1.12 | ||||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 10.46 | .18 | (.14 | ) | .04 | (.22 | ) | — | (.22 | ) | 10.28 | .36 | 1 | .73 | 1.77 | |||||||||||||||||||||||||||||||||
12/31/20173,4 | 10.55 | .14 | — | 8 | .14 | (.16 | ) | (.07 | ) | (.23 | ) | 10.46 | 1.31 | 5 | — | 7 | .70 | 6 | 1.38 | 6 | ||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 10.45 | .18 | (.15 | ) | .03 | (.20 | ) | — | (.20 | ) | 10.28 | .32 | 57 | .73 | 1.72 | |||||||||||||||||||||||||||||||||
12/31/2017 | 10.54 | .14 | (.01 | ) | .13 | (.15 | ) | (.07 | ) | (.22 | ) | 10.45 | 1.22 | 63 | .72 | 1.27 | ||||||||||||||||||||||||||||||||
12/31/2016 | 10.59 | .12 | .12 | .24 | (.18 | ) | (.11 | ) | (.29 | ) | 10.54 | 2.25 | 63 | .71 | 1.14 | |||||||||||||||||||||||||||||||||
12/31/2015 | 10.68 | .07 | .13 | .20 | (.15 | ) | (.14 | ) | (.29 | ) | 10.59 | 1.86 | 59 | .70 | .65 | |||||||||||||||||||||||||||||||||
12/31/2014 | 10.22 | .10 | .44 | .54 | (.08 | ) | — | (.08 | ) | 10.68 | 5.23 | 52 | .70 | .91 | ||||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 10.38 | .15 | (.15 | ) | — | 8 | (.19 | ) | — | (.19 | ) | 10.19 | .07 | 24 | .98 | 1.49 | ||||||||||||||||||||||||||||||||
12/31/2017 | 10.48 | .11 | — | 8 | .11 | (.14 | ) | (.07 | ) | (.21 | ) | 10.38 | .97 | 12 | .97 | 1.03 | ||||||||||||||||||||||||||||||||
12/31/2016 | 10.52 | .09 | .12 | .21 | (.14 | ) | (.11 | ) | (.25 | ) | 10.48 | 2.01 | 8 | .96 | .86 | |||||||||||||||||||||||||||||||||
12/31/2015 | 10.65 | .04 | .14 | .18 | (.17 | ) | (.14 | ) | (.31 | ) | 10.52 | 1.62 | 11 | .97 | .37 | |||||||||||||||||||||||||||||||||
12/31/2014 | 10.23 | .05 | .46 | .51 | (.09 | ) | — | (.09 | ) | 10.65 | 4.98 | 1 | .94 | .47 | ||||||||||||||||||||||||||||||||||
Ultra-Short Bond Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | $ | 11.29 | $ | .18 | $ | — | 8 | $ | .18 | $ | (.16 | ) | $ | — | $ | (.16 | ) | $ | 11.31 | 1.58 | % | $ | 37 | .35 | % | 1.60 | % | |||||||||||||||||||||
12/31/2017 | 11.27 | .08 | (.01 | ) | .07 | (.05 | ) | — | (.05 | ) | 11.29 | .66 | 37 | .35 | .68 | |||||||||||||||||||||||||||||||||
12/31/201612 | 11.26 | .01 | — | 8 | .01 | — | — | — | 11.27 | .09 | 37 | .35 | .11 | |||||||||||||||||||||||||||||||||||
12/31/2015 | 11.28 | (.03 | ) | .01 | (.02 | ) | — | — | — | 11.26 | (.18 | ) | 39 | .34 | (.24 | ) | ||||||||||||||||||||||||||||||||
12/31/2014 | 11.31 | (.03 | ) | — | (.03 | ) | — | — | — | 11.28 | (.27 | ) | 49 | .34 | (.26 | ) | ||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 11.29 | .18 | — | 8 | .18 | (.16 | ) | — | (.16 | ) | 11.31 | 1.58 | 11 | — | 7 | .35 | 11 | 1.60 | 11 | |||||||||||||||||||||||||||||
12/31/20173,4 | 11.27 | .08 | — | 8 | .08 | (.06 | ) | — | (.06 | ) | 11.29 | .67 | 5,11 | — | 7 | .34 | 6,11 | .69 | 6,11 | |||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 11.01 | .15 | — | 8 | .15 | (.13 | ) | — | (.13 | ) | 11.03 | 1.36 | 247 | .60 | 1.34 | |||||||||||||||||||||||||||||||||
12/31/2017 | 10.99 | .05 | — | 8 | .05 | (.03 | ) | — | (.03 | ) | 11.01 | .46 | 249 | .60 | .42 | |||||||||||||||||||||||||||||||||
12/31/201612 | 11.01 | (.02 | ) | — | 8 | (.02 | ) | — | — | — | 10.99 | (.18 | ) | 297 | .60 | (.14 | ) | |||||||||||||||||||||||||||||||
12/31/2015 | 11.06 | (.05 | ) | — | 8 | (.05 | ) | — | — | — | 11.01 | (.45 | ) | 302 | .59 | (.49 | ) | |||||||||||||||||||||||||||||||
12/31/2014 | 11.12 | (.06 | ) | — | (.06 | ) | — | — | — | 11.06 | (.54 | ) | 331 | .59 | (.51 | ) | ||||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 11.12 | .16 | (.01 | ) | .15 | (.13 | ) | — | (.13 | ) | 11.14 | 1.38 | 4 | .53 | 1.42 | |||||||||||||||||||||||||||||||||
12/31/2017 | 11.10 | .06 | — | 8 | .06 | (.04 | ) | — | (.04 | ) | 11.12 | .54 | 4 | .53 | .50 | |||||||||||||||||||||||||||||||||
12/31/201612 | 11.11 | (.01 | ) | — | 8 | (.01 | ) | — | — | — | 11.10 | (.09 | ) | 4 | .53 | (.08 | ) | |||||||||||||||||||||||||||||||
12/31/2015 | 11.16 | (.05 | ) | — | 8 | (.05 | ) | — | — | — | 11.11 | (.45 | ) | 6 | .52 | (.42 | ) | |||||||||||||||||||||||||||||||
12/31/2014 | 11.21 | (.05 | ) | — | (.05 | ) | — | — | — | 11.16 | (.45 | ) | 8 | .52 | (.44 | ) | ||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 11.13 | .12 | .01 | .13 | (.11 | ) | — | (.11 | ) | 11.15 | 1.14 | 18 | .86 | 1.11 | ||||||||||||||||||||||||||||||||||
12/31/2017 | 11.12 | .02 | — | 8 | .02 | (.01 | ) | — | (.01 | ) | 11.13 | .16 | 15 | .85 | .19 | |||||||||||||||||||||||||||||||||
12/31/201612 | 11.17 | (.04 | ) | (.01 | ) | (.05 | ) | — | — | — | 11.12 | (.45 | ) | 13 | .85 | (.40 | ) | |||||||||||||||||||||||||||||||
12/31/2015 | 11.25 | (.08 | ) | — | 8 | (.08 | ) | — | — | — | 11.17 | (.71 | ) | 16 | .85 | (.74 | ) | |||||||||||||||||||||||||||||||
12/31/2014 | 11.30 | (.09 | ) | .04 | (.05 | ) | — | — | — | 11.25 | (.44 | ) | 7 | .84 | (.77 | ) |
204 American Funds Insurance Series
Table of Contents
(Loss) income from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net (losses) gains on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
U.S.Government/AAA-Rated Securities Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | $ | 12.08 | $ | .24 | $ | (.13 | ) | $ | .11 | $ | (.25 | ) | $ | — | $ | (.25 | ) | $ | 11.94 | .91 | % | $ | 1,445 | .36 | % | 2.02 | % | |||||||||||||||||||||
12/31/2017 | 12.05 | .21 | .01 | .22 | (.19 | ) | — | (.19 | ) | 12.08 | 1.83 | 1,558 | .36 | 1.68 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 12.31 | .16 | .03 | .19 | (.20 | ) | (.25 | ) | (.45 | ) | 12.05 | 1.44 | 1,467 | .36 | 1.31 | |||||||||||||||||||||||||||||||||
12/31/2015 | 12.40 | .13 | .09 | .22 | (.21 | ) | (.10 | ) | (.31 | ) | 12.31 | 1.93 | 1,426 | .35 | 1.02 | |||||||||||||||||||||||||||||||||
12/31/2014 | 11.94 | .15 | .48 | .63 | (.17 | ) | — | (.17 | ) | 12.40 | 5.24 | 1,723 | .35 | 1.24 | ||||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 12.08 | .22 | (.14 | ) | .08 | (.23 | ) | — | (.23 | ) | 11.93 | .70 | 1 | .61 | 1.82 | |||||||||||||||||||||||||||||||||
12/31/20173,4 | 12.05 | .18 | .03 | .21 | (.18 | ) | — | (.18 | ) | 12.08 | 1.73 | 5 | — | 7 | .58 | 6 | 1.53 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 11.96 | .21 | (.14 | ) | .07 | (.21 | ) | — | (.21 | ) | 11.82 | .73 | 1,323 | .61 | 1.77 | |||||||||||||||||||||||||||||||||
12/31/2017 | 11.93 | .17 | .02 | .19 | (.16 | ) | — | (.16 | ) | 11.96 | 1.59 | 1,473 | .61 | 1.43 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 12.20 | .13 | .02 | .15 | (.17 | ) | (.25 | ) | (.42 | ) | 11.93 | 1.19 | 1,503 | .61 | 1.05 | |||||||||||||||||||||||||||||||||
12/31/2015 | 12.29 | .10 | .09 | .19 | (.18 | ) | (.10 | ) | (.28 | ) | 12.20 | 1.59 | 1,579 | .60 | .79 | |||||||||||||||||||||||||||||||||
12/31/2014 | 11.83 | .12 | .47 | .59 | (.13 | ) | — | (.13 | ) | 12.29 | 5.01 | 1,717 | .60 | 1.00 | ||||||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 12.11 | .22 | (.14 | ) | .08 | (.22 | ) | — | (.22 | ) | 11.97 | .71 | 9 | .54 | 1.84 | |||||||||||||||||||||||||||||||||
12/31/2017 | 12.07 | .18 | .03 | .21 | (.17 | ) | — | (.17 | ) | 12.11 | 1.72 | 10 | .54 | 1.50 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 12.34 | .14 | .02 | .16 | (.18 | ) | (.25 | ) | (.43 | ) | 12.07 | 1.24 | 11 | .54 | 1.12 | |||||||||||||||||||||||||||||||||
12/31/2015 | 12.43 | .11 | .09 | .20 | (.19 | ) | (.10 | ) | (.29 | ) | 12.34 | 1.64 | 11 | .53 | .85 | |||||||||||||||||||||||||||||||||
12/31/2014 | 11.96 | .13 | .48 | .61 | (.14 | ) | — | (.14 | ) | 12.43 | 5.11 | 13 | .53 | 1.08 | ||||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 11.98 | .18 | (.12 | ) | .06 | (.20 | ) | — | (.20 | ) | 11.84 | .50 | 91 | .86 | 1.53 | |||||||||||||||||||||||||||||||||
12/31/2017 | 11.96 | .14 | .01 | .15 | (.13 | ) | — | (.13 | ) | 11.98 | 1.28 | 62 | .86 | 1.18 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 12.22 | .10 | .03 | .13 | (.14 | ) | (.25 | ) | (.39 | ) | 11.96 | .99 | 57 | .86 | .82 | |||||||||||||||||||||||||||||||||
12/31/2015 | 12.34 | .07 | .08 | .15 | (.17 | ) | (.10 | ) | (.27 | ) | 12.22 | 1.29 | 46 | .85 | .56 | |||||||||||||||||||||||||||||||||
12/31/2014 | 11.93 | .06 | .51 | .57 | (.16 | ) | — | (.16 | ) | 12.34 | 4.76 | 21 | .85 | .50 |
See end of tables for footnotes.
American Funds Insurance Series 205
Table of Contents
Financial highlights (continued)
Income from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return13 | Net assets, end of period (in millions) | Ratio of expenses to average net assets reimburse- ments | Ratio of expenses to average net assets after waivers/ reimburse- ments13 | Net ratio13,14 | Ratio to average net assets13 | ||||||||||||||||||||||||||||||||||||||||||
Managed Risk Growth Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | $ | 13.22 | $ | .11 | $ | (.04 | ) | $ | .07 | $ | (.10 | ) | $ | (.89 | ) | $ | (.99 | ) | $ | 12.30 | (.04 | )%11 | $ | 3 | .42 | %11 | .37 | %11 | .71 | %11 | .82 | %11 | ||||||||||||||||||||||||
12/31/2017 | 10.71 | .08 | 2.70 | 2.78 | (.07 | ) | (.20 | ) | (.27 | ) | 13.22 | 26.23 | 11 | 2 | .42 | 11 | .36 | 11 | .70 | 11 | .69 | 11 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 11.49 | .08 | .20 | .28 | (.05 | ) | (1.01 | ) | (1.06 | ) | 10.71 | 2.89 | 11 | 1 | .50 | 11 | .34 | 11 | .68 | 11 | .79 | 11 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 11.37 | .09 | .03 | .12 | — | — | — | 11.49 | 1.06 | 11 | — | 7 | .53 | 11 | .29 | 11 | .63 | 11 | .80 | 11 | ||||||||||||||||||||||||||||||||||||
12/31/2014 | 11.43 | .31 | (.06 | ) | .25 | (.12 | ) | (.19 | ) | (.31 | ) | 11.37 | 2.18 | 11 | — | 7 | .50 | 11 | .32 | 11 | .65 | 11 | 2.71 | 11 | ||||||||||||||||||||||||||||||||
Class P2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 13.14 | .06 | (.04 | ) | .02 | (.06 | ) | (.89 | ) | (.95 | ) | 12.21 | (.37 | ) | 340 | .68 | .63 | .97 | .46 | |||||||||||||||||||||||||||||||||||||
12/31/2017 | 10.64 | .04 | 2.70 | 2.74 | (.04 | ) | (.20 | ) | (.24 | ) | 13.14 | 25.99 | 286 | .69 | .63 | .97 | .34 | |||||||||||||||||||||||||||||||||||||||
12/31/2016 | 11.43 | .05 | .19 | .24 | (.02 | ) | (1.01 | ) | (1.03 | ) | 10.64 | 2.52 | 200 | .79 | .63 | .97 | .43 | |||||||||||||||||||||||||||||||||||||||
12/31/2015 | 11.35 | .04 | .04 | .08 | — | — | — | 11.43 | .71 | 146 | .89 | .66 | 1.00 | .31 | ||||||||||||||||||||||||||||||||||||||||||
12/31/2014 | 11.43 | .12 | .08 | .20 | (.09 | ) | (.19 | ) | (.28 | ) | 11.35 | 1.77 | 79 | .87 | .69 | 1.02 | 1.01 | |||||||||||||||||||||||||||||||||||||||
Managed Risk International Fund |
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Class P1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | $ | 11.25 | $ | .32 | $ | (1.44 | ) | $ | (1.12 | ) | $ | (.26 | ) | $ | (.05 | ) | $ | (.31 | ) | $ | 9.82 | (10.11 | )%11 | $ | — | 7 | .33 | %11 | .28 | %11 | .77 | %11 | 3.02 | %11 | ||||||||||||||||||||||
12/31/2017 | 8.89 | .11 | 2.47 | 2.58 | (.10 | ) | (.12 | ) | (.22 | ) | 11.25 | 29.28 | 11 | — | 7 | .28 | 11 | .20 | 11 | .69 | 11 | 1.13 | 11 | |||||||||||||||||||||||||||||||||
12/31/2016 | 9.48 | .10 | (.35 | ) | (.25 | ) | (.12 | ) | (.22 | ) | (.34 | ) | 8.89 | (2.59 | )11 | — | 7 | .39 | 11 | .23 | 11 | .74 | 11 | 1.15 | 11 | |||||||||||||||||||||||||||||||
12/31/2015 | 10.10 | .18 | (.80 | ) | (.62 | ) | — | 8 | — | — | 8 | 9.48 | (6.12 | )11 | — | 7 | .45 | 11 | .21 | 11 | .72 | 11 | 1.75 | 11 | ||||||||||||||||||||||||||||||||
12/31/2014 | 10.82 | .14 | (.71 | ) | (.57 | ) | (.15 | ) | — | (.15 | ) | 10.10 | (5.31 | )11 | — | 7 | .50 | 11 | .25 | 11 | .76 | 11 | 1.33 | 11 | ||||||||||||||||||||||||||||||||
Class P2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 11.15 | .16 | (1.32 | ) | (1.16 | ) | (.18 | ) | (.05 | ) | (.23 | ) | 9.76 | (10.50 | ) | 151 | .69 | .64 | 1.13 | 1.49 | ||||||||||||||||||||||||||||||||||||
12/31/2017 | 8.83 | .11 | 2.41 | 2.52 | (.08 | ) | (.12 | ) | (.20 | ) | 11.15 | 28.69 | 148 | .71 | .63 | 1.12 | 1.03 | |||||||||||||||||||||||||||||||||||||||
12/31/2016 | 9.43 | .09 | (.38 | ) | (.29 | ) | (.09 | ) | (.22 | ) | (.31 | ) | 8.83 | (3.05 | ) | 97 | .79 | .63 | 1.14 | .97 | ||||||||||||||||||||||||||||||||||||
12/31/2015 | 10.09 | .13 | (.79 | ) | (.66 | ) | — | 8 | — | — | 8 | 9.43 | (6.52 | ) | 83 | .90 | .66 | 1.17 | 1.30 | |||||||||||||||||||||||||||||||||||||
12/31/2014 | 10.82 | .16 | (.77 | ) | (.61 | ) | (.12 | ) | — | (.12 | ) | 10.09 | (5.68 | ) | 46 | .91 | .67 | 1.18 | 1.51 | |||||||||||||||||||||||||||||||||||||
Managed Risk Blue Chip Income and Growth Fund |
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Class P1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | $ | 13.04 | $ | .40 | $ | (1.27 | ) | $ | (.87 | ) | $ | (.45 | ) | $ | (.44 | ) | $ | (.89 | ) | $ | 11.28 | (6.99 | )%11 | $ | — | 7 | .33 | %11 | .28 | %11 | .67 | %11 | 3.21 | %11 | ||||||||||||||||||||||
12/31/2017 | 11.67 | .19 | 1.59 | 1.78 | (.22 | ) | (.19 | ) | (.41 | ) | 13.04 | 15.48 | 11 | — | 7 | .30 | 11 | .25 | 11 | .64 | 11 | 1.59 | 11 | |||||||||||||||||||||||||||||||||
12/31/2016 | 10.80 | .20 | 1.25 | 1.45 | (.21 | ) | (.37 | ) | (.58 | ) | 11.67 | 13.77 | 11 | — | 7 | .43 | 11 | .27 | 11 | .67 | 11 | 1.83 | 11 | |||||||||||||||||||||||||||||||||
12/31/2015 | 11.70 | .19 | (1.02 | ) | (.83 | ) | (.07 | ) | — | (.07 | ) | 10.80 | (7.07 | )11 | — | 7 | .50 | 11 | .27 | 11 | .66 | 11 | 1.64 | 11 | ||||||||||||||||||||||||||||||||
12/31/2014 | 11.05 | .40 | .55 | .95 | (.30 | ) | — | (.30 | ) | 11.70 | 8.58 | 11 | — | 7 | .50 | 11 | .31 | 11 | .70 | 11 | 3.43 | 11 | ||||||||||||||||||||||||||||||||||
Class P2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 12.96 | .19 | (1.10 | ) | (.91 | ) | (.40 | ) | (.44 | ) | (.84 | ) | 11.21 | (7.38 | ) | 336 | .68 | .63 | 1.02 | 1.49 | ||||||||||||||||||||||||||||||||||||
12/31/2017 | 11.61 | .17 | 1.55 | 1.72 | (.18 | ) | (.19 | ) | (.37 | ) | 12.96 | 15.03 | 367 | .68 | .63 | 1.02 | 1.43 | |||||||||||||||||||||||||||||||||||||||
12/31/2016 | 10.76 | .23 | 1.18 | 1.41 | (.19 | ) | (.37 | ) | (.56 | ) | 11.61 | 13.39 | 291 | .79 | .63 | 1.03 | 2.04 | |||||||||||||||||||||||||||||||||||||||
12/31/2015 | 11.67 | .18 | (1.05 | ) | (.87 | ) | (.04 | ) | — | (.04 | ) | 10.76 | (7.43 | ) | 137 | .89 | .66 | 1.05 | 1.57 | |||||||||||||||||||||||||||||||||||||
12/31/2014 | 11.05 | .50 | .40 | .90 | (.28 | ) | — | (.28 | ) | 11.67 | 8.10 | 98 | .88 | .69 | 1.08 | 4.27 | ||||||||||||||||||||||||||||||||||||||||
Managed Risk Growth-Income Fund |
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Class P1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | $ | 12.66 | $ | (.02 | ) | $ | (.15 | ) | $ | (.17 | ) | $ | (.19 | ) | $ | (.57 | ) | $ | (.76 | ) | $ | 11.73 | (1.66 | )%11 | $ | 1,662 | .40 | %11 | .35 | %11 | .64 | %11 | (.20 | )%11 | ||||||||||||||||||||||
12/31/2017 | 11.07 | .19 | 2.03 | 2.22 | (.13 | ) | (.50 | ) | (.63 | ) | 12.66 | 20.64 | 11 | 2 | .44 | 11 | .37 | 11 | .66 | 11 | 1.61 | 11 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 11.25 | .16 | .52 | .68 | (.16 | ) | (.70 | ) | (.86 | ) | 11.07 | 6.49 | 11 | 1 | .52 | 11 | .36 | 11 | .64 | 11 | 1.46 | 11 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 11.67 | .25 | (.63 | ) | (.38 | ) | (.04 | ) | — | (.04 | ) | 11.25 | (3.27 | )11 | 1 | .56 | 11 | .31 | 11 | .59 | 11 | 2.17 | 11 | |||||||||||||||||||||||||||||||||
12/31/2014 | 11.50 | .35 | .21 | .56 | (.14 | ) | (.25 | ) | (.39 | ) | 11.67 | 4.85 | 11 | — | 7 | .45 | 11 | .25 | 11 | .52 | 11 | 2.94 | 11 | |||||||||||||||||||||||||||||||||
Class P2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 12.58 | .16 | (.36 | ) | (.20 | ) | (.14 | ) | (.57 | ) | (.71 | ) | 11.67 | (1.97 | ) | 230 | .69 | .64 | .93 | 1.25 | ||||||||||||||||||||||||||||||||||||
12/31/2017 | 11.02 | .13 | 2.05 | 2.18 | (.12 | ) | (.50 | ) | (.62 | ) | 12.58 | 20.40 | 206 | .70 | .63 | .92 | 1.08 | |||||||||||||||||||||||||||||||||||||||
12/31/2016 | 11.22 | .12 | .52 | .64 | (.14 | ) | (.70 | ) | (.84 | ) | 11.02 | 6.08 | 160 | .79 | .63 | .91 | 1.13 | |||||||||||||||||||||||||||||||||||||||
12/31/2015 | 11.65 | .12 | (.54 | ) | (.42 | ) | (.01 | ) | — | (.01 | ) | 11.22 | (3.64 | ) | 122 | .89 | .66 | .94 | 1.04 | |||||||||||||||||||||||||||||||||||||
12/31/2014 | 11.50 | .16 | .35 | .51 | (.11 | ) | (.25 | ) | (.36 | ) | 11.65 | 4.42 | 76 | .87 | .69 | .96 | 1.38 |
206 American Funds Insurance Series
Table of Contents
Income from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return13 | Net assets, end of period (in millions) | Ratio of expenses to average net assets reimburse- ments | Ratio of expenses to average net assets after waivers/ reimburse- ments13 | Net ratio13,14 | Ratio to average net assets13 | ||||||||||||||||||||||||||||||||||||||||||
Managed Risk Asset Allocation Fund |
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Class P1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | $ | 13.59 | $ | .22 | $ | (.80 | ) | $ | (.58 | ) | $ | (.25 | ) | $ | (.53 | ) | $ | (.78 | ) | $ | 12.23 | (4.63 | )% | $ | 2 | .37 | % | .32 | % | .59 | % | 1.67 | % | |||||||||||||||||||||||
12/31/2017 | 12.02 | .19 | 1.60 | 1.79 | (.10 | ) | (.12 | ) | (.22 | ) | 13.59 | 15.06 | 1,656 | .43 | .38 | .66 | 1.45 | |||||||||||||||||||||||||||||||||||||||
12/31/2016 | 11.72 | .19 | .67 | .86 | (.19 | ) | (.37 | ) | (.56 | ) | 12.02 | 7.57 | 1,217 | .43 | .38 | .66 | 1.65 | |||||||||||||||||||||||||||||||||||||||
12/31/2015 | 12.29 | .25 | (.34 | ) | (.09 | ) | (.22 | ) | (.26 | ) | (.48 | ) | 11.72 | (.83 | ) | 712 | .54 | .40 | .68 | 2.06 | ||||||||||||||||||||||||||||||||||||
12/31/2014 | 11.93 | .13 | .26 | .39 | (.03 | ) | — | (.03 | ) | 12.29 | 3.24 | 277 | .53 | .48 | .76 | 1.04 | ||||||||||||||||||||||||||||||||||||||||
Class P2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2018 | 13.55 | .17 | (.79 | ) | (.62 | ) | (.18 | ) | (.53 | ) | (.71 | ) | 12.22 | (4.89 | ) | 2,541 | .62 | .57 | .84 | 1.27 | ||||||||||||||||||||||||||||||||||||
12/31/2017 | 12.01 | .15 | 1.61 | 1.76 | (.10 | ) | (.12 | ) | (.22 | ) | 13.55 | 14.80 | 2,798 | .68 | .63 | .91 | 1.13 | |||||||||||||||||||||||||||||||||||||||
12/31/2016 | 11.71 | .14 | .69 | .83 | (.16 | ) | (.37 | ) | (.53 | ) | 12.01 | 7.27 | 2,342 | .68 | .63 | .91 | 1.20 | |||||||||||||||||||||||||||||||||||||||
12/31/2015 | 12.27 | .14 | (.26 | ) | (.12 | ) | (.18 | ) | (.26 | ) | (.44 | ) | 11.71 | (1.07 | ) | 1,953 | .79 | .66 | .94 | 1.16 | ||||||||||||||||||||||||||||||||||||
12/31/2014 | 11.93 | .16 | .19 | .35 | (.01 | ) | — | (.01 | ) | 12.27 | 2.91 | 1,780 | .79 | .73 | 1.01 | 1.33 |
See end of tables for footnotes.
American Funds Insurance Series 207
Table of Contents
Portfolio turnover rate for all share classes excluding mortgage dollar roll transactions15 | Year ended December 31 | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||
Capital Income Builder | 42 | % | 59 | % | 41 | % | 38 | % | 24 | % | ||||||||||
Asset Allocation Fund | 34 | 39 | 43 | 28 | 42 | |||||||||||||||
Global Balanced Fund | 30 | 28 | 43 | 36 | 40 | |||||||||||||||
Bond Fund | 98 | 153 | 108 | 141 | 121 | |||||||||||||||
Global Bond Fund | 78 | 74 | 70 | 88 | 134 | |||||||||||||||
Mortgage Fund | 60 | 98 | 113 | 138 | 108 | |||||||||||||||
U.S.Government/AAA-Rated Securities Fund | 76 | 120 | 273 | 352 | 88 | |||||||||||||||
Portfolio turnover rate for all share classes including mortgage dollar roll transactions, if applicable15 | Year ended December 31 | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||
Global Growth Fund | 25 | % | 31 | % | 27 | % | 29 | % | 22 | % | ||||||||||
Global Small Capitalization Fund | 43 | 33 | 40 | 36 | 28 | |||||||||||||||
Growth Fund | 35 | 24 | 26 | 20 | 29 | |||||||||||||||
International Fund | 29 | 29 | 31 | 37 | 18 | |||||||||||||||
New World Fund | 58 | 56 | 32 | 39 | 36 | |||||||||||||||
Blue Chip Income and Growth Fund | 49 | 34 | 30 | 26 | 37 | |||||||||||||||
Global Growth and Income Fund | 49 | 41 | 57 | 37 | 28 | |||||||||||||||
Growth-Income Fund | 39 | 27 | 27 | 25 | 25 | |||||||||||||||
International Growth and Income Fund | 38 | 51 | 32 | 35 | 34 | |||||||||||||||
Capital Income Builder Fund | 98 | 88 | 53 | 128 | 35 | 5,10 | ||||||||||||||
Asset Allocation Fund | 86 | 85 | 83 | 76 | 88 | |||||||||||||||
Global Balanced Fund | 51 | 41 | 65 | 76 | 73 | |||||||||||||||
Bond Fund | 514 | 502 | 375 | 434 | 365 | |||||||||||||||
Global Bond Fund | 125 | 105 | 154 | 159 | 200 | |||||||||||||||
High-Income Bond Fund | 67 | 78 | 89 | 66 | 54 | |||||||||||||||
Mortgage Fund | 811 | 680 | 713 | 1103 | 790 | |||||||||||||||
U.S.Government/AAA-Rated Securities Fund | 446 | 551 | 539 | 901 | 387 | |||||||||||||||
Ultra-Short Bond Fund | — | 16 | — | 16 | — | 12,16 | N/A | N/A | ||||||||||||
Managed Risk Growth Fund | 7 | 25 | 15 | 16 | 22 | |||||||||||||||
Managed Risk International Fund | 8 | 25 | 26 | 15 | 22 | |||||||||||||||
Managed Risk Blue Chip Income and Growth Fund | 11 | 32 | 9 | 20 | 22 | |||||||||||||||
Managed Risk Growth-Income Fund | 14 | 26 | 14 | 11 | 28 | |||||||||||||||
Managed Risk Asset Allocation Fund | 12 | 1 | 3 | 3 | 3 |
1 | Based on average shares outstanding. |
2 | For the year ended December 31, 2014, reflects the impact of a corporate action event that resulted in aone-time increase to net investment income. If the corporate action event had not occurred, the net investment income per share and ratio of net income to average net assets would have been lower for all share classes. |
3 | Based on operations for a period that is less than a full year. |
4 | Class 1A shares began investment operations on January 6, 2017. |
5 | Not annualized. |
6 | Annualized. |
7 | Amount less than $1 million. |
8 | Amount less than $.01. |
9 | Amount less than .01%. |
10 | For the period May 1, 2014, commencement of operations, through December 31, 2014. |
11 | All or a significant portion of assets in this class consisted of seed capital invested by CRMC and/or its affiliates. Certain fees (including, where applicable, fees for distribution services) are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower. |
12 | On May 1, 2016, the fund converted from a cash fund to an ultra-short-term bond fund and changed its name from Cash Management Fund to Ultra-Short Bond Fund. |
13 | This column reflects the impact of certain waivers/reimbursements by CRMC. CRMC waived a portion of investment advisory services and reimbursed a portion of miscellaneous fees and expenses for the managed risk funds. |
14 | This column reflects the net effective expense ratios for each fund and class, which are unaudited. These ratios include each class’s expense ratio combined with the weighted average net expense ratio of the underlying funds for the periods presented. See expense example for further information regarding fees and expenses. |
15 | Refer to Note 5 for further information on mortgage dollar rolls. |
16 | Amount is either less than 1% or there is no turnover. |
See notes to financial statements
208 American Funds Insurance Series
Table of Contents
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of American Funds Insurance Series and Shareholders of Global Growth Fund, Global Small Capitalization Fund, Growth Fund, International Fund, New World Fund®, Blue Chip Income and Growth Fund, Global Growth and Income Fund, Growth-Income Fund, International Growth and Income Fund, Capital Income Builder®, Asset Allocation Fund, Global Balanced Fund, Bond Fund, Global Bond Fund, High-Income Bond Fund, Mortgage Fund, Ultra-Short Bond Fund, U.S.Government/AAA-Rated Securities Fund, Managed Risk Growth Fund, Managed Risk International Fund, Managed Risk Blue Chip Income and Growth Fund, Managed Risk Growth-Income Fund and Managed Risk Asset Allocation Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including summary investment portfolios of Global Growth Fund, Global Small Capitalization Fund, Growth Fund, International Fund, New World Fund®, Blue Chip Income and Growth Fund, Global Growth and Income Fund, Growth-Income Fund, International Growth and Income Fund, Capital Income Builder®, Asset Allocation Fund, Global Balanced Fund, Bond Fund, Global Bond Fund, High-Income Bond Fund, Mortgage Fund and U.S.Government/AAA-Rated Securities Fund and investment portfolios of Ultra-Short Bond Fund, Managed Risk Growth Fund, Managed Risk International Fund, Managed Risk Blue Chip Income and Growth Fund, Managed Risk Growth-Income Fund and Managed Risk Asset Allocation Fund, (twenty-three of the funds constituting American Funds Insurance Series, hereafter collectively referred to as the “Funds”) as of December 31, 2018, the related statements of operations for the year ended December 31, 2018, the statements of changes in net assets for each of the two years in the period ended December 31, 2018, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2018, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended December 31, 2018 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018 by correspondence with the custodians, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
Los Angeles, California
February 12, 2019
We have served as the auditor of one or more investment companies in The Capital Group Companies Investment Company Complex since 1934.
American Funds Insurance Series 209
Table of Contents
Expense example | unaudited |
The funds in American Funds Insurance Series serve as the underlying investment vehicle for various insurance products. As an owner of an insurance contract that invests in one of the funds in the series, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service(12b-1) fees, and other expenses. Additional fees are charged by the insurance companies related to the various benefits they provide. This example is intended to help you understand your ongoing costs (in dollars) of investing in the underlying funds so you can compare these costs with the ongoing costs of investing in other mutual funds that serve a similar function in other annuity products. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entiresix-month period (July 1, 2018, through December 31, 2018).
Actual expenses:
The first line of each share class in the table on the following pages provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading titled “Expenses paid during period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes:
The second line of each share class in the table on the following pages provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.
Notes:
Additional fees are charged by the insurance companies related to the various benefits they provide. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.
Note that the expenses shown in the table on the following pages are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the second line of each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
210 American Funds Insurance Series
Table of Contents
Beginning account value 7/1/2018 | Ending account value 12/31/2018 | Expenses paid during period1 | Annualized expense ratio | |||||||||||||
Global Growth Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 883.81 | $ | 2.66 | .56 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,022.38 | 2.85 | .56 | ||||||||||||
Class 1A — actual return | 1,000.00 | 882.71 | 3.84 | .81 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,021.12 | 4.13 | .81 | ||||||||||||
Class 2 — actual return | 1,000.00 | 882.86 | 3.84 | .81 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,021.12 | 4.13 | .81 | ||||||||||||
Class 4 — actual return | 1,000.00 | 881.92 | 5.03 | 1.06 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,019.86 | 5.40 | 1.06 | ||||||||||||
Global Small Capitalization Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 857.65 | $ | 3.46 | .74 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,021.48 | 3.77 | .74 | ||||||||||||
Class 1A — actual return | 1,000.00 | 856.00 | 4.58 | .98 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,020.27 | 4.99 | .98 | ||||||||||||
Class 2 — actual return | 1,000.00 | 856.32 | 4.63 | .99 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,020.21 | 5.04 | .99 | ||||||||||||
Class 4 — actual return | 1,000.00 | 854.97 | 5.80 | 1.24 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,018.95 | 6.31 | 1.24 | ||||||||||||
Growth Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 909.41 | $ | 1.64 | .34 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,023.49 | 1.73 | .34 | ||||||||||||
Class 1A — actual return | 1,000.00 | 908.27 | 2.84 | .59 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,022.23 | 3.01 | .59 | ||||||||||||
Class 2 — actual return | 1,000.00 | 908.31 | 2.84 | .59 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,022.23 | 3.01 | .59 | ||||||||||||
Class 3 — actual return | 1,000.00 | 908.54 | 2.50 | .52 | ||||||||||||
Class 3 — assumed 5% return | 1,000.00 | 1,022.58 | 2.65 | .52 | ||||||||||||
Class 4 — actual return | 1,000.00 | 907.21 | 4.04 | .84 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,020.97 | 4.28 | .84 | ||||||||||||
International Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 870.74 | $ | 2.50 | .53 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,022.53 | 2.70 | .53 | ||||||||||||
Class 1A — actual return | 1,000.00 | 870.06 | 3.68 | .78 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,021.27 | 3.97 | .78 | ||||||||||||
Class 2 — actual return | 1,000.00 | 870.02 | 3.68 | .78 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,021.27 | 3.97 | .78 | ||||||||||||
Class 3 — actual return | 1,000.00 | 869.83 | 3.35 | .71 | ||||||||||||
Class 3 — assumed 5% return | 1,000.00 | 1,021.63 | 3.62 | .71 | ||||||||||||
Class 4 — actual return | 1,000.00 | 868.31 | 4.85 | 1.03 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,020.01 | 5.24 | 1.03 | ||||||||||||
New World Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 896.60 | $ | 3.73 | .78 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,021.27 | 3.97 | .78 | ||||||||||||
Class 1A — actual return | 1,000.00 | 895.48 | 4.92 | 1.03 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,020.01 | 5.24 | 1.03 | ||||||||||||
Class 2 — actual return | 1,000.00 | 895.53 | 4.92 | 1.03 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,020.01 | 5.24 | 1.03 | ||||||||||||
Class 4 — actual return | 1,000.00 | 894.44 | 6.11 | 1.28 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,018.75 | 6.51 | 1.28 |
See end of tables for footnotes.
American Funds Insurance Series 211
Table of Contents
Beginning account value 7/1/2018 | Ending account value 12/31/2018 | Expenses paid during period1 | Annualized expense ratio | |||||||||||||
Blue Chip Income and Growth Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 911.16 | $ | 1.98 | .41 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,023.14 | 2.09 | .41 | ||||||||||||
Class 1A — actual return | 1,000.00 | 910.38 | 3.18 | .66 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,021.88 | 3.36 | .66 | ||||||||||||
Class 2 — actual return | 1,000.00 | 910.78 | 3.18 | .66 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,021.88 | 3.36 | .66 | ||||||||||||
Class 4 — actual return | 1,000.00 | 909.57 | 4.38 | .91 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,020.62 | 4.63 | .91 | ||||||||||||
Global Growth and Income Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 913.67 | $ | 3.09 | .64 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,021.98 | 3.26 | .64 | ||||||||||||
Class 1A — actual return | 1,000.00 | 912.85 | 4.29 | .89 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,020.72 | 4.53 | .89 | ||||||||||||
Class 2 — actual return | 1,000.00 | 911.89 | 4.29 | .89 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,020.72 | 4.53 | .89 | ||||||||||||
Class 4 — actual return | 1,000.00 | 911.37 | 5.49 | 1.14 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,019.46 | 5.80 | 1.14 | ||||||||||||
Growth-Income Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 923.69 | $ | 1.36 | .28 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,023.79 | 1.43 | .28 | ||||||||||||
Class 1A — actual return | 1,000.00 | 922.58 | 2.57 | .53 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,022.53 | 2.70 | .53 | ||||||||||||
Class 2 — actual return | 1,000.00 | 922.65 | 2.57 | .53 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,022.53 | 2.70 | .53 | ||||||||||||
Class 3 — actual return | 1,000.00 | 922.81 | 2.23 | .46 | ||||||||||||
Class 3 — assumed 5% return | 1,000.00 | 1,022.89 | 2.35 | .46 | ||||||||||||
Class 4 — actual return | 1,000.00 | 921.20 | 3.78 | .78 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,021.27 | 3.97 | .78 | ||||||||||||
International Growth and Income Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 906.95 | $ | 3.17 | .66 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,021.88 | 3.36 | .66 | ||||||||||||
Class 1A — actual return | 1,000.00 | 905.76 | 4.37 | .91 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,020.62 | 4.63 | .91 | ||||||||||||
Class 2 — actual return | 1,000.00 | 905.61 | 4.37 | .91 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,020.62 | 4.63 | .91 | ||||||||||||
Class 4 — actual return | 1,000.00 | 904.62 | 5.57 | 1.16 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,019.36 | 5.90 | 1.16 | ||||||||||||
Capital Income Builder | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 952.39 | $ | 2.71 | .55 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,022.43 | 2.80 | .55 | ||||||||||||
Class 1A — actual return | 1,000.00 | 951.11 | 3.89 | .79 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,021.22 | 4.02 | .79 | ||||||||||||
Class 2 — actual return | 1,000.00 | 951.20 | 3.93 | .80 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,021.17 | 4.08 | .80 | ||||||||||||
Class 4 — actual return | 1,000.00 | 949.90 | 5.11 | 1.04 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,019.96 | 5.30 | 1.04 |
212 American Funds Insurance Series
Table of Contents
Beginning account value 7/1/2018 | Ending account value 12/31/2018 | Expenses paid during period1 | Annualized expense ratio | |||||||||||||
Asset Allocation Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 945.68 | $ | 1.37 | .28 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,023.79 | 1.43 | .28 | ||||||||||||
Class 1A — actual return | 1,000.00 | 944.75 | 2.60 | .53 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,022.53 | 2.70 | .53 | ||||||||||||
Class 2 — actual return | 1,000.00 | 944.68 | 2.60 | .53 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,022.53 | 2.70 | .53 | ||||||||||||
Class 3 — actual return | 1,000.00 | 944.92 | 2.26 | .46 | ||||||||||||
Class 3 — assumed 5% return | 1,000.00 | 1,022.89 | 2.35 | .46 | ||||||||||||
Class 4 — actual return | 1,000.00 | 943.52 | 3.82 | .78 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,021.27 | 3.97 | .78 | ||||||||||||
Global Balanced Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 946.36 | $ | 3.58 | .73 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,021.53 | 3.72 | .73 | ||||||||||||
Class 1A — actual return | 1,000.00 | 944.87 | 4.80 | .98 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,020.27 | 4.99 | .98 | ||||||||||||
Class 2 — actual return | 1,000.00 | 945.15 | 4.80 | .98 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,020.27 | 4.99 | .98 | ||||||||||||
Class 4 — actual return | 1,000.00 | 943.60 | 6.03 | 1.23 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,019.00 | 6.26 | 1.23 | ||||||||||||
Bond Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,013.36 | $ | 1.98 | .39 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,023.24 | 1.99 | .39 | ||||||||||||
Class 1A — actual return | 1,000.00 | 1,012.94 | 3.20 | .63 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,022.03 | 3.21 | .63 | ||||||||||||
Class 2 — actual return | 1,000.00 | 1,012.27 | 3.25 | .64 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,021.98 | 3.26 | .64 | ||||||||||||
Class 4 — actual return | 1,000.00 | 1,010.76 | 4.51 | .89 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,020.72 | 4.53 | .89 | ||||||||||||
Global Bond Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,004.05 | $ | 2.93 | .58 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,022.28 | 2.96 | .58 | ||||||||||||
Class 1A — actual return | 1,000.00 | 1,002.59 | 4.14 | .82 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,021.07 | 4.18 | .82 | ||||||||||||
Class 2 — actual return | 1,000.00 | 1,002.66 | 4.19 | .83 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,021.02 | 4.23 | .83 | ||||||||||||
Class 4 — actual return | 1,000.00 | 1,001.01 | 5.45 | 1.08 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,019.76 | 5.50 | 1.08 |
See end of tables for footnotes.
American Funds Insurance Series 213
Table of Contents
Beginning account value 7/1/2018 | Ending account value 12/31/2018 | Expenses paid during period1 | Annualized expense ratio | |||||||||||||
High-Income Bond Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 973.84 | $ | 2.54 | .51 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,022.63 | 2.60 | .51 | ||||||||||||
Class 1A — actual return | 1,000.00 | 972.85 | 3.73 | .75 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,021.42 | 3.82 | .75 | ||||||||||||
Class 2 — actual return | 1,000.00 | 973.23 | 3.78 | .76 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,021.37 | 3.87 | .76 | ||||||||||||
Class 3 — actual return | 1,000.00 | 973.26 | 3.43 | .69 | ||||||||||||
Class 3 — assumed 5% return | 1,000.00 | 1,021.73 | 3.52 | .69 | ||||||||||||
Class 4 — actual return | 1,000.00 | 970.96 | 5.02 | 1.01 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,020.11 | 5.14 | 1.01 | ||||||||||||
Mortgage Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,018.13 | $ | 2.54 | .50 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,022.68 | 2.55 | .50 | ||||||||||||
Class 1A — actual return | 1,000.00 | 1,016.98 | 3.81 | .75 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,021.42 | 3.82 | .75 | ||||||||||||
Class 2 — actual return | 1,000.00 | 1,015.95 | 3.81 | .75 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,021.42 | 3.82 | .75 | ||||||||||||
Class 4 — actual return | 1,000.00 | 1,014.64 | 5.13 | 1.01 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,020.11 | 5.14 | 1.01 | ||||||||||||
Ultra-Short Bond Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,009.21 | $ | 1.92 | .38 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,023.29 | 1.94 | .38 | ||||||||||||
Class 1A — actual return | 1,000.00 | 1,009.23 | 1.87 | .37 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,023.34 | 1.89 | .37 | ||||||||||||
Class 2 — actual return | 1,000.00 | 1,008.25 | 3.14 | .62 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,022.08 | 3.16 | .62 | ||||||||||||
Class 3 — actual return | 1,000.00 | 1,007.42 | 2.78 | .55 | ||||||||||||
Class 3 — assumed 5% return | 1,000.00 | 1,022.43 | 2.80 | .55 | ||||||||||||
Class 4 — actual return | 1,000.00 | 1,006.62 | 4.40 | .87 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,020.82 | 4.43 | .87 | ||||||||||||
U.S.Government/AAA-Rated Securities Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,020.09 | $ | 1.83 | .36 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,023.39 | 1.84 | .36 | ||||||||||||
Class 1A — actual return | 1,000.00 | 1,019.74 | 3.11 | .61 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,022.13 | 3.11 | .61 | ||||||||||||
Class 2 — actual return | 1,000.00 | 1,019.76 | 3.11 | .61 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,022.13 | 3.11 | .61 | ||||||||||||
Class 3 — actual return | 1,000.00 | 1,019.28 | 2.75 | .54 | ||||||||||||
Class 3 — assumed 5% return | 1,000.00 | 1,022.48 | 2.75 | .54 | ||||||||||||
Class 4 — actual return | 1,000.00 | 1,018.62 | 4.38 | .86 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,020.87 | 4.38 | .86 |
214 American Funds Insurance Series
Table of Contents
Beginning account value 7/1/2018 | Ending account value 12/31/2018 | Expenses paid during period1,2 | Annualized expense ratio2 | Effective expenses paid during period3 | Effective annualized expense ratio4 | |||||||||||||||||||
Managed Risk Growth Fund |
| |||||||||||||||||||||||
Class P1 — actual return | $ | 1,000.00 | $ | 948.34 | $ | 1.92 | .39 | % | $ | 3.49 | .71 | % | ||||||||||||
Class P1 — assumed 5% return | 1,000.00 | 1,023.24 | 1.99 | .39 | 3.62 | .71 | ||||||||||||||||||
Class P2 — actual return | 1,000.00 | 946.51 | 3.19 | .65 | 4.76 | .97 | ||||||||||||||||||
Class P2 — assumed 5% return | 1,000.00 | 1,021.93 | 3.31 | .65 | 4.94 | .97 | ||||||||||||||||||
Managed Risk International Fund |
| |||||||||||||||||||||||
Class P1 — actual return | $ | 1,000.00 | $ | 903.38 | $ | 1.54 | .32 | % | $ | 3.69 | .77 | % | ||||||||||||
Class P1 — assumed 5% return | 1,000.00 | 1,023.59 | 1.63 | .32 | 3.92 | .77 | ||||||||||||||||||
Class P2 — actual return | 1,000.00 | 901.89 | 3.16 | .66 | 5.42 | 1.13 | ||||||||||||||||||
Class P2 — assumed 5% return | 1,000.00 | 1,021.88 | 3.36 | .66 | 5.75 | 1.13 | ||||||||||||||||||
Managed Risk Blue Chip Income and Growth Fund |
| |||||||||||||||||||||||
Class P1 — actual return | $ | 1,000.00 | $ | 947.22 | $ | 1.52 | .31 | % | $ | 3.29 | .67 | % | ||||||||||||
Class P1 — assumed 5% return | 1,000.00 | 1,023.64 | 1.58 | .31 | 3.41 | .67 | ||||||||||||||||||
Class P2 — actual return | 1,000.00 | 945.53 | 3.14 | .64 | 5.00 | 1.02 | ||||||||||||||||||
Class P2 — assumed 5% return | 1,000.00 | 1,021.98 | 3.26 | .64 | 5.19 | 1.02 | ||||||||||||||||||
Managed Risk Growth-Income Fund |
| |||||||||||||||||||||||
Class P1 — actual return | $ | 1,000.00 | $ | 950.38 | $ | 1.72 | .35 | % | $ | 3.15 | .64 | % | ||||||||||||
Class P1 — assumed 5% return | 1,000.00 | 1,023.44 | 1.79 | .35 | 3.26 | .64 | ||||||||||||||||||
Class P2 — actual return | 1,000.00 | 948.19 | 3.19 | .65 | 4.57 | .93 | ||||||||||||||||||
Class P2 — assumed 5% return | 1,000.00 | 1,021.93 | 3.31 | .65 | 4.74 | .93 | ||||||||||||||||||
Managed Risk Asset Allocation Fund |
| |||||||||||||||||||||||
Class P1 — actual return | $ | 1,000.00 | $ | 955.05 | $ | 1.38 | .28 | % | $ | 2.91 | .59 | % | ||||||||||||
Class P1 — assumed 5% return | 1,000.00 | 1,023.79 | 1.43 | .28 | 3.01 | .59 | ||||||||||||||||||
Class P2 — actual return | 1,000.00 | 953.49 | 2.66 | .54 | 4.14 | .84 | ||||||||||||||||||
Class P2 — assumed 5% return | 1,000.00 | 1,022.48 | 2.75 | .54 | 4.28 | .84 |
1 | The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 365 (to reflect theone-half year period). |
2 | The “expenses paid during period” and “annualized expense ratio” do not include the expenses of the underlying funds in which each fund invests. |
3 | The “effective expenses paid during period” are equal to the “effective annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 365 (to reflect the period). |
4 | The “effective annualized expense ratio” reflects the net annualized expense ratio of the class plus the class’spro-rata share of the weighted average expense ratio of the underlying funds in which it invests. |
American Funds Insurance Series 215
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216 American Funds Insurance Series
Table of Contents
Board of trustees and other officers
Independent trustees1
Name and year of birth | Year first | Principal occupation(s) during past five years | Number of | Other directorships3 held by trustee | ||||
William H. Baribault, 1945 | 2009 | CEO and President, Richard Nixon Foundation; Chairman of the Board and CEO, Oakwood Enterprises (private investment and consulting) | 81 | General Finance Corporation | ||||
James G. Ellis, 1947 | 2010 | Dean and Professor of Marketing, Marshall School of Business, University of Southern California | 91 | Mercury General Corporation | ||||
Nariman Farvardin, 1956 | 2018 | President, Stevens Institute of Technology | 78 | None | ||||
Mary Davis Holt, 1950 | 2015–2016 2017 | Principal, Mary Davis Holt Enterprises, LLC (leadership development consulting); former Partner, Flynn Heath Holt Leadership, LLC (leadership consulting); former COO, Time Life Inc. (1993–2003) | 78 | None | ||||
R. Clark Hooper,1946 | 2010 | Private investor | 81 | None | ||||
Merit E. Janow, 1958 | 2007 | Dean and Professor, Columbia University, School of International and Public Affairs | 80 | Mastercard Incorporated; Trimble Inc. | ||||
Laurel B. Mitchell, PhD, 1955 | 2010 | Chair, California Jump$tart Coalition for Personal Financial Literacy; Part-time faculty, Pomona College; former Distinguished Professor of Accounting, University of Redlands; former Director, Accounting Program, University of Redlands | 78 | None | ||||
Margaret Spellings, 1957 Chairman of the Board (Independent andNon-Executive) | 2010 | President, The University of North Carolina; former President, George W. Bush Foundation | 82 | None | ||||
Alexandra Trower, 1964 | 2018 | Executive Vice President, Global Communications and Corporate Officer, The Estée Lauder Companies | 77 | None |
Leonard R. Fuller and Frank M. Sanchez retired from the board on December 31, 2018. The trustees thank Mr. Fuller and Mr. Sanchez for their dedication and service to the fund.
Interested trustee4,5
Name, year of birth and position with series | Year first trustee or officer | Principal occupation(s) during past five years | Number of | Other directorships3 | ||||
Donald D. O’Neal, 1960 Co-President | 1998 | Partner — Capital International Investors, Capital Research and Management Company; Director, Capital Research and Management Company | 31 | None | ||||
Michael C. Gitlin, 1970 | 2019 | Partner — Capital Fixed Income Investors, Capital Research and Management Company; Director, The Capital Group Companies, Inc.;6served as Head of Fixed Income at a large investment management firm prior to joining Capital Research and Management Company in 2015 | 77 | None |
The series statement of additional information includes further details about the series trustees and is available without charge upon request by calling American Funds Service Company at (800)421-4225 or by visiting the American Funds website at americanfunds.com. The address for all trustees and officers of the series is 333 South Hope Street, Los Angeles, CA 90071, Attention: Secretary.
American Funds Insurance Series 217
Table of Contents
Board of trustees and other officers (continued)
Other officers5
Name, year of birth and position with series | Year first elected an officer of the series2 | Principal occupation(s) during past five years and positions held with affiliated entities or the principal | ||
Alan N. Berro, 1960 Co-President | 1998 | Partner — Capital World Investors, Capital Research and Management Company; Director, Capital Research and Management Company | ||
Maria Manotok Pathria, 1974 Executive Vice President | 2012 | Senior Vice President and Senior Counsel — Fund Business Management Group, Capital Research and Management Company; Director, Capital Guardian Trust Company6 | ||
John H. Smet, 1956 Senior Vice President | 1994 | Partner — Capital Fixed Income Investors, Capital Research and Management Company; Director, Capital Research and Management Company | ||
Martin Jacobs,1962 Vice President | 2016 | Partner — Capital World Investors, Capital Research and Management Company | ||
Carl M. Kawaja,1964 Vice President | 2008 | Partner — Capital World Investors, Capital Research and Management Company; Director, The Capital Group Companies, Inc.6 | ||
Sung Lee,1966 Vice President | 2008 | Partner — Capital Research Global Investors, Capital International, Inc.6 | ||
S. Keiko McKibben, 1969 Vice President | 2010 | Partner — Capital Research Global Investors, Capital Research and Management Company | ||
Renaud H. Samyn,1974 Vice President | 2010 | Partner — Capital Research Global Investors, Capital International, Inc.6 | ||
Dylan Yolles,1969 Vice President | 2012 | Partner — Capital International Investors, Capital Research and Management Company | ||
Steven I. Koszalka,1964 Secretary | 2003 | Vice President — Fund Business Management Group, Capital Research and Management Company | ||
Gregory F. Niland, 1971 Treasurer | 2008 | Vice President — Investment Operations, Capital Research and Management Company | ||
Susan K. Countess,1966 Assistant Secretary | 2014 | Associate — Fund Business Management Group, Capital Research and Management Company | ||
Brian C. Janssen,1972 Assistant Treasurer | 2015 | Vice President — Investment Operations, Capital Research and Management Company | ||
Dori Laskin, 1951 Assistant Treasurer | 2010 | Vice President — Investment Operations, Capital Research and Management Company |
1 | The term independent trustee refers to a trustee who is not an “interested person” of the series within the meaning of the Investment Company Act of 1940. |
2 | Trustees and officers of the series serve until their resignation, removal or retirement. |
3 | This includes all directorships/trusteeships (other than those in the American Funds or other funds managed by Capital Research and Management Company or its affiliates) that are held by each trustee as a trustee or director of a public company or a registered investment company. |
4 | The term interested trustee refers to a trustee who is an “interested person” within the meaning of the Investment Company Act of 1940, on the basis of their affiliation with the series’ investment adviser, Capital Research and Management Company, or affiliated entities (including the series’ principal underwriter). |
5 | All of the trustees and/or officers listed, with the exception of Martin Jacobs, S. Keiko McKibben and Renaud H. Samyn, are officers and/or directors/trustees of one or more of the other funds for which Capital Research and Management Company serves as investment adviser. |
6 | Company affiliated with Capital Research and Management Company. |
218 American Funds Insurance Series
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Results of special meeting of shareholders
Held November 28, 2018
Shares outstanding (all classes) on August 31, 2018 (record date)
6,347,216,058
Total shares voting on November 28, 2018
4,343,768,464 (68.4% of shares outstanding)
The proposal: to elect board members:
Votes for | Percent of shares voting for | Votes withheld | Percent of shares withheld | |||||||||||||
William H. Baribault | 4,208,852,644 | 96.9 | % | 134,915,821 | 3.1 | % | ||||||||||
James G. Ellis | 4,216,149,993 | 97.1 | 127,618,471 | 2.9 | ||||||||||||
Nariman Farvardin | 4,218,959,298 | 97.1 | 124,809,166 | 2.9 | ||||||||||||
Michael C. Gitlin | 4,222,232,502 | 97.2 | 121,535,962 | 2.8 | ||||||||||||
Mary Davis Holt | 4,224,279,601 | 97.2 | 119,488,863 | 2.8 | ||||||||||||
R. Clark Hooper | 4,216,559,229 | 97.1 | 127,209,235 | 2.9 | ||||||||||||
Merit E. Janow | 4,220,194,031 | 97.2 | 123,574,433 | 2.8 | ||||||||||||
Laurel B. Mitchell | 4,224,436,631 | 97.3 | 119,331,833 | 2.7 | ||||||||||||
Donald D. O’Neal | 4,220,647,956 | 97.2 | 123,120,508 | 2.8 | ||||||||||||
Margaret Spellings | 4,219,675,934 | 97.1 | 124,092,530 | 2.9 | ||||||||||||
Alexandra Trower | 4,225,223,365 | 97.3 | 118,545,099 | 2.7 |
American Funds Insurance Series 219
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Offices of the series and of the investment adviser
Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406
6455 Irvine Center Drive
Irvine, CA 92618-4518
Investment subadviser
Milliman Financial Risk Management LLC
(Managed Risk Funds only)
71 South Wacker Drive, 31st Floor
Chicago, IL 60606
Custodians of assets
State Street Bank and Trust Company
One Lincoln Street
Boston, MA 02111
Bank of New York Mellon
(Managed Risk Funds only)
One Wall Street
New York, NY 10286
Counsel
Morgan, Lewis & Bockius LLP
One Federal Street
Boston, MA 02110-1726
Independent registered public accounting firm
PricewaterhouseCoopers LLP
601 South Figueroa Street
Los Angeles, CA 90017-3874
220 American Funds Insurance Series
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Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the series prospectuses and summary prospectuses, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at (800)421-4225 or visit the American Funds website at americanfunds.com. Fund shares offered through American Funds Distributors, Inc.
“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on the American Funds website or upon request by calling AFS. The series files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on the American Funds website.
Complete December 31, 2018, portfolios of American Funds Insurance Series’ investments are available free of charge by calling AFS or visiting the SEC website (where they are part of FormN-CSR).
American Funds Insurance Series files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on FormN-Q. This filing is available free of charge on the SEC website. Additionally, the list of portfolio holdings is available by calling AFS.
This report is for the information of American Funds Insurance Series investors, but it also may be used as sales literature when preceded or accompanied by the current prospectuses or summary prospectuses for American Funds Insurance Series and the prospectus for the applicable insurance contract, which give details about charges, expenses, investment objectives and operating policies of the series. If used as sales material after March 31, 2019, this report must be accompanied by a statistical update for the most recently completed calendar quarter.
Fund attribution data was produced using FactSet, a third-party software system, based on daily portfolios. Securities in their initial period of acquisition may not be included in this analysis. The analysis includes equity investments only and excludes forward contracts and fixed income investments, if applicable. It does not account forbuy-and-sell transactions that might have occurred intraday. As a result, average portfolio weight percentages are approximate, and the actual average portfolio weight percentages might be higher or lower. Data elements, such as pricing, income, market cap, etc., were provided by FactSet. The indexes provided for attribution are based on FactSet’s methodology. The indexes are broad-based market benchmarks and may not be used by Capital Group® as the sole comparative index for the funds. Capital Group believes the software and information from FactSet to be reliable. However, Capital Group cannot be responsible for inaccuracies, incomplete information or updating of information by FactSet.
Futures may not provide an effective hedge of the underlying securities because changes in the prices of futures may not track those of the securities they are intended to hedge. In addition, the managed risk strategy may not effectively protect the fund from market declines and will limit the fund’s participation in market gains. The use of the managed risk strategy could cause the fund’s return to lag that of the underlying fund in certain market conditions.
Bloomberg® is a trademark and service mark of Bloomberg Finance L.P. (collectively with its affiliates, “Bloomberg”). Barclays® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approve or endorse this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. This report, and any product, index or fund referred to herein, is not sponsored, endorsed or promoted in any way by J.P. Morgan or any of its affiliates who provide no warranties whatsoever, express or implied, and shall have no liability to any prospective investor in connection with this report. J.P. Morgan disclaimer: http://www.jpmorgan.com/pages/jpmorgan/ib/girg. MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products. The S&P 500 is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group. Copyright© 2019 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.
Printed on paper containing 10% post-consumer waste |
© 2019 Capital Group. All rights reserved.
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The Capital Advantage®
Since 1931, Capital Group, home of American Funds, has helped investors pursue long-term investment success. Our consistent approach — in combination with The Capital SystemSM — has resulted in a superior long-term track record for American Funds Insurance Series®.
Aligned with investor success | The Capital System | Superior long-term track record | ||
We base our decisions on a long-term perspective, which we believe aligns our goals with the interests of our clients. American Funds Insurance Series portfolio managers average 26 years of investment experience, including 21 years at our company, reflecting a career commitment to our long-term approach.1 | The Capital System combines individual accountability with teamwork. Funds using The Capital System are divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. An extensive global research effort is the backbone of our system. | American Funds Insurance Series equity funds have beaten their Lipper peer indexes in 91% of 10-year periods and 100% of 20-year periods. Fixed income funds have beaten their Lipper indexes in 65% of 10-year periods and 81% of 20-year periods.2 Fund management fees have been among the lowest in the industry.3 |
1 | Portfolio manager experience as of the American Funds Insurance Series prospectus dated May 1, 2018, as supplemented January 1, 2019. |
2 | Based on Class 1 share results for rolling periods through December 31, 2018. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date. The comparable Lipper indexes are: Global Funds Index (Global Growth Fund), Growth Funds Index (Growth Fund), International Funds Index (International Fund), Emerging Markets Funds Index (New World Fund), Growth & Income Funds Index (Blue Chip Income and Growth Fund, Growth-Income Fund), Balanced Portfolio Funds Index (Asset Allocation Fund), Core Bond Funds Index (Bond Fund), High Yield Funds Index (High-Income Bond Fund) and General U.S. Government Funds Index (U.S.Government/AAA-Rated Securities Fund). The Lipper GlobalSmall-/Mid-Cap Funds Average was used for Global Small Capitalization Fund. |
3 | Based on management fees for the20-year period ended December 31, 2018, versus comparable Lipper categories, excluding funds of funds. |
All Capital Group trademarks referenced are registered trademarks owned by The Capital Group Companies, Inc. or an affiliated company. All other company and product names mentioned are the trademarks or registered trademarks of their respective companies. |
Lit. No.INGEARX-998-0219P Litho in USA RCG/RRD/8074-S66544
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Item 2. Code of Ethics.
SunAmerica Series Trust (“the registrant”) has adopted a Code of Ethics applicable to its Principal Executive and Principal Accounting Officers pursuant to Section 406 of the Sarbanes-Oxley Act of 2002 (the “Code”). During the fiscal year ended December 31, 2018, there were no reportable waivers or implicit waivers to a provision of the Code that applies to the registrant’s Principal Executive and Principal Accounting Officers (the “Covered Officers”).
Item 3. Audit Committee Financial Expert.
The registrant’s Board of Trustees has determined that Allan Sher, Garrett Bouton and Jane Jelenko each qualify as audit committee financial experts, as defined in Item 3(b) of Form N-CSR. Mr. Sher, Mr. Bouton and Ms. Jelenko are considered “independent” for purposes of Item 3(a)(2) of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
(a)-(d) | Aggregate fees billed to the registrant for the last two fiscal years for services rendered by the registrant’s principal accountant were as follows: |
2017 | 2018 | |||||||
(a) Audit Fees | $ | 101,963 | $ | 105,019 | ||||
(b) Audit-Related Fees | $ | 0 | $ | 0 | ||||
(c) Tax Fees | $ | 34,365 | $ | 60,895 | ||||
(d) All Other Fees | $ | 0 | $ | 0 |
Audit Fees include amounts related to the audit of the registrant’s annual financial statements and services normally provided by the principal accountant in connection with statutory and regulatory filings. Tax Fees principally include tax compliance, tax advice, tax planning and preparation of tax returns.
Aggregate fees billed to the investment adviser and Adviser Affiliates (as defined below in Item 4 (e)) that are required to bepre-approved pursuant to paragraph (c)(7)(ii) ofRule 2-01 ofRegulation S-X for the last two fiscal years for services rendered by the registrant’s principal accountant were as follows:
2017 | 2018 | |||||||
(b) Audit-Related Fees | $ | 0 | $ | 0 | ||||
(c) Tax Fees | $ | 0 | $ | 0 | ||||
(d) All Other Fees | $ | 390,644 | $ | 328,928 |
(e) | (1) The registrant’s audit committeepre-approves all audit services provided by the registrant’s principal accountant for the registrant and allnon-audit services provided by the registrant’s principal accountant for the registrant, its investment adviser and any entity controlling, controlled by, or under common control with the investment adviser (“Adviser Affiliates”) that provides ongoing services to the registrant, if the engagement by the investment adviser or Adviser Affiliates relates directly to the operations and financial reporting of the registrant. The audit committee has not presently established anypre-approval policies and procedures that permit thepre-approval of the above services other than by the full audit committee. Certain de minimis exceptions are allowed fornon-audit services in accordance with Rule 2-01(c)(7)(i)(C) ofRegulation S-X as set forth in the registrant’s audit committee minutes. |
(2) No services included in(b)-(d) above in connection with fees billed to the registrant or the investment adviser or Adviser Affiliates were approved pursuant to paragraph (c)(7)(i)(C) of Rule2-01 ofRegulation S-X.
(f) | Not applicable. |
(g) | The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant’s principal accountant fornon-audit services rendered to the registrant, its investment adviser, and Adviser Affiliates that provides ongoing services to the registrant for 2017 and 2018 were $461,694 and $452,746, respectively. |
(h) | Non-audit services rendered to the registrant’s investment adviser and any Adviser Affiliates that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X were considered by the registrant’s audit committee as to whether they were compatible with maintaining the principal accountant’s independence. |
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
Included in Item 1 to the Form.
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Item 7. Disclosure of Proxy Voting Policies and Procedures forClosed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers ofClosed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities byClosed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees that were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) ofRegulation S-K (17 CFR 229.407) (as required by item 22(b)(15)) of Schedule 14A (17 CFR 240.14a-101), or this Item 10.
Item 11. Controls and Procedures.
(a) An evaluation was performed within 90 days of the filing of this report, under the supervision and with the participation of the registrant’s management, including the President and Treasurer, of the effectiveness of the design and operation of the registrant’s disclosure controls and procedures (as defined under Rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c))). Based on that evaluation, the registrant’s management, including the President and Treasurer, concluded that the registrant’s disclosure controls and procedures are effective.
(b) There was no change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d))) that occurred during the registrant’s last fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
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Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable. |
Item 13. Exhibits.
(a) | (1) Code of Ethics applicable to its Principal Executive and Principal Accounting Officers pursuant to Section 406 of the Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.406.Code of Ethics. |
(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.
(3) Not applicable.
(b) | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) and Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.906.CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
SunAmerica Series Trust | ||
By: | /s/ John T. Genoy | |
John T. Genoy | ||
President |
Date: March 8, 2019
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ John T. Genoy | |
John T. Genoy | ||
President |
Date: March 8, 2019
By: | /s/ Gregory R. Kingston | |
Gregory R. Kingston | ||
Treasurer |
Date: March 8, 2019