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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, 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, 2019
Table of Contents
Item 1. Reports to Stockholders
This filing is on behalf of five of the sixty 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, 2019
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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, 2019.
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
EXPENSE EXAMPLE December 31, 2019 |
(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. The 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, 2019 and held until December 31, 2019. 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, 2019”, to estimate the expenses you paid on your account during this period. The “Expenses Paid During the Six Months Ended December 31, 2019” 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, 2019” 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, 2019” 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, 2019” 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, 2019 |
(unaudited)
Actual | Hypothetical | |||||||||||||||||||||||||||
Portfolio | Beginning Account Value at July 1, 2019 | Ending Account Value Using Actual Return at December 31, 2019 | Expenses Paid During the Six Months Ended December 31, 2019* | Beginning Account Value at July 1, 2019 | Ending Account Value Using a Hypothetical 5% Assumed Return at December 31, 2019 | Expenses Paid During the Six Months Ended December 31, 2019* | Annualized Expense Ratio* | |||||||||||||||||||||
SA American Funds Asset Allocation | ||||||||||||||||||||||||||||
Class 1 #@ | $ | 1,000.00 | $ | 1,082.51 | $ | 1.42 | $ | 1,000.00 | $ | 1,023.84 | $ | 1.38 | 0.27 | % | ||||||||||||||
Class 3 #@ | $ | 1,000.00 | $ | 1,081.14 | $ | 2.73 | $ | 1,000.00 | $ | 1,022.58 | $ | 2.65 | 0.52 | % | ||||||||||||||
SA American Funds Global Growth | ||||||||||||||||||||||||||||
Class 1 #@ | $ | 1,000.00 | $ | 1,115.08 | $ | 1.49 | $ | 1,000.00 | $ | 1,023.79 | $ | 1.43 | 0.28 | % | ||||||||||||||
Class 3 #@ | $ | 1,000.00 | $ | 1,114.47 | $ | 2.82 | $ | 1,000.00 | $ | 1,022.53 | $ | 2.70 | 0.53 | % | ||||||||||||||
SA American Funds Growth | ||||||||||||||||||||||||||||
Class 1 #@ | $ | 1,000.00 | $ | 1,121.58 | $ | 1.50 | $ | 1,000.00 | $ | 1,023.79 | $ | 1.43 | 0.28 | % | ||||||||||||||
Class 3 #@ | $ | 1,000.00 | $ | 1,119.72 | $ | 2.83 | $ | 1,000.00 | $ | 1,022.53 | $ | 2.70 | 0.53 | % | ||||||||||||||
SA American Funds Growth-Income | ||||||||||||||||||||||||||||
Class 1 #@ | $ | 1,000.00 | $ | 1,087.31 | $ | 1.53 | $ | 1,000.00 | $ | 1,023.74 | $ | 1.48 | 0.29 | % | ||||||||||||||
Class 3 #@ | $ | 1,000.00 | $ | 1,085.66 | $ | 2.84 | $ | 1,000.00 | $ | 1,022.48 | $ | 2.75 | 0.54 | % | ||||||||||||||
SA American Funds VCP Managed Allocation | ||||||||||||||||||||||||||||
Class 1 #@ | $ | 1,000.00 | $ | 1,068.47 | $ | 1.41 | $ | 1,000.00 | $ | 1,023.84 | $ | 1.38 | 0.27 | % | ||||||||||||||
Class 3 #@ | $ | 1,000.00 | $ | 1,066.95 | $ | 2.71 | $ | 1,000.00 | $ | 1,022.58 | $ | 2.65 | 0.52 | % |
* | 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, 2019” 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, 2019” 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, 2019” 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, 2019 — (unaudited)
Industry Allocation*
Asset Allocation Investment Companies | 100.1 | % | ||
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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, 2019
Shares | Value (Note 2) | |||||||
REGISTERED INVESTMENT COMPANIES — 100.1% | ||||||||
Asset Allocation Investment Companies — 100.1% | ||||||||
American Funds Insurance Series® — Asset Allocation Fund, Class 1 | 48,910,520 | $ | 1,176,298,009 | |||||
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TOTAL INVESTMENTS | 100.1 | % | 1,176,298,009 | |||||
Liabilities in excess of other assets | (0.1 | ) | (595,940 | ) | ||||
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NET ASSETS | 100.0 | % | $ | 1,175,702,069 | ||||
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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, 2019 (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 | $ | 1,176,298,009 | $ | — | $ | — | $ | 1,176,298,009 | ||||||||
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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, 2019 — (unaudited)
Industry Allocation*
International Equity Investment Companies | 100.1 | % | ||
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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, 2019
Shares | Value (Note 2) | |||||||
REGISTERED INVESTMENT COMPANIES — 100.1% | ||||||||
International Equity Investment Companies — 100.1% | ||||||||
American Funds Insurance Series® — Global Growth Fund, Class 1 | 12,009,320 | $ | 391,143,565 | |||||
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TOTAL INVESTMENTS | 100.1 | % | 391,143,565 | |||||
Liabilities in excess of other assets | (0.1 | ) | (243,875 | ) | ||||
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NET ASSETS | 100.0 | % | $ | 390,899,690 | ||||
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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, 2019 (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 | $ | 391,143,565 | $ | — | $ | — | $ | 391,143,565 | ||||||||
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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, 2019 — (unaudited)
Industry Allocation*
Domestic Equity Investment Companies | 100.1 | % | ||
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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, 2019
Shares | Value (Note 2) | |||||||
REGISTERED INVESTMENT COMPANIES — 100.1% | ||||||||
Domestic Equity Investment Companies — 100.1% | ||||||||
American Funds Insurance Series® — Growth Fund, Class 1 | 4,656,720 | $ | 378,218,791 | |||||
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TOTAL INVESTMENTS | 100.1 | % | 378,218,791 | |||||
Liabilities in excess of other assets | (0.1 | ) | (236,077 | ) | ||||
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NET ASSETS | 100.0 | % | $ | 377,982,714 | ||||
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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, 2019 (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 | $ | 378,218,791 | $ | — | $ | — | $ | 378,218,791 | ||||||||
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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, 2019 — (unaudited)
Industry Allocation*
Domestic Equity Investment Companies | 100.1 | % | ||
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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, 2019
Shares | Value (Note 2) | |||||||
REGISTERED INVESTMENT COMPANIES — 100.1% | ||||||||
Domestic Equity Investment Companies — 100.1% | ||||||||
American Funds Insurance Series® — Growth-Income Fund, Class 1 | 5,639,993 | $ | 286,004,046 | |||||
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TOTAL INVESTMENTS | 100.1 | % | 286,004,046 | |||||
Liabilities in excess of other assets | (0.1 | ) | (185,966 | ) | ||||
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NET ASSETS | 100.0 | % | $ | 285,818,080 | ||||
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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, 2019 (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 | $ | 286,004,046 | $ | — | $ | — | $ | 286,004,046 | ||||||||
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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, 2019 — (unaudited)
Industry Allocation*
Asset Allocation Investment Companies | 100.1 | % | ||
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* | Calculated as a percentage of net assets. |
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SunAmerica Series Trust SA American Funds VCP Managed Allocation Portfolio
PORTFOLIO OF INVESTMENTS — December 31, 2019
Shares | Value (Note 2) | |||||||
REGISTERED INVESTMENT COMPANIES — 100.1% | ||||||||
Asset Allocation Investment Companies — 100.1% | ||||||||
American Funds Insurance Series® — Managed Risk Growth-Income Fund, Class P1 | 144,146,713 | $ | 1,983,458,771 | |||||
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TOTAL INVESTMENTS | 100.1 | % | 1,983,458,771 | |||||
Liabilities in excess of other assets | (0.1 | ) | (1,005,031 | ) | ||||
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NET ASSETS | 100.0 | % | $ | 1,982,453,740 | ||||
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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, 2019 (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 | $ | 1,983,458,771 | $ | — | $ | — | $ | 1,983,458,771 | ||||||||
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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, 2019
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)* | $ | 1,176,298,009 | $ | 391,143,565 | $ | 378,218,791 | $ | 286,004,046 | $ | 1,983,458,771 | ||||||||||
Receivable for: | ||||||||||||||||||||
Fund shares sold | 321,410 | — | — | — | — | |||||||||||||||
Investments sold | 1,340,342 | 18,356,788 | 12,519,276 | 3,289,900 | 22,424,326 | |||||||||||||||
Prepaid expenses and other assets | 7,104 | 5,788 | 5,649 | 5,453 | 9,412 | |||||||||||||||
Due from investment adviser for expense reimbursements/fee waivers | 587,391 | 239,113 | 195,309 | 144,774 | 1,175,295 | |||||||||||||||
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Total assets | 1,178,554,256 | 409,745,254 | 390,939,025 | 289,444,173 | 2,007,067,804 | |||||||||||||||
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LIABILITIES: | ||||||||||||||||||||
Payable for: | ||||||||||||||||||||
Fund shares redeemed | 1,661,752 | 18,356,788 | 12,519,276 | 3,289,900 | 22,424,326 | |||||||||||||||
Investment advisory and management fees | 832,137 | 324,511 | 276,687 | 205,097 | 1,595,043 | |||||||||||||||
Service fees | 243,846 | 85,350 | 81,347 | 60,294 | 419,698 | |||||||||||||||
Transfer agent fees | 244 | 240 | 327 | 327 | 221 | |||||||||||||||
Trustees’ fees and expenses | 2,851 | 2,267 | 1,750 | 1,476 | 8,721 | |||||||||||||||
Other accrued expenses | 111,357 | 76,408 | 76,924 | 68,999 | 166,055 | |||||||||||||||
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Total liabilities | 2,852,187 | 18,845,564 | 12,956,311 | 3,626,093 | 24,614,064 | |||||||||||||||
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NET ASSETS | $ | 1,175,702,069 | $ | 390,899,690 | $ | 377,982,714 | $ | 285,818,080 | $ | 1,982,453,740 | ||||||||||
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NET ASSETS REPRESENTED BY: | ||||||||||||||||||||
Paid-in capital | 1,096,039,981 | 314,449,748 | 281,597,859 | 219,776,828 | 1,699,929,146 | |||||||||||||||
Total accumulated earnings (loss) | 79,662,088 | 76,449,942 | 96,384,855 | 66,041,252 | 282,524,594 | |||||||||||||||
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NET ASSETS | $ | 1,175,702,069 | $ | 390,899,690 | $ | 377,982,714 | $ | 285,818,080 | $ | 1,982,453,740 | ||||||||||
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Class 1 (unlimited shares authorized): | ||||||||||||||||||||
Net assets | $ | 4,319,839 | $ | 246,308 | $ | 160,066 | $ | 158,707 | $ | 130,014 | ||||||||||
Shares of beneficial interest issued and outstanding | 293,612 | 22,515 | 13,333 | 13,252 | 8,778 | |||||||||||||||
Net asset value, offering and redemption price per share | $ | 14.71 | $ | 10.94 | $ | 12.01 | $ | 11.98 | $ | 14.81 | ||||||||||
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Class 3 (unlimited shares authorized): | ||||||||||||||||||||
Net assets | $ | 1,171,382,230 | $ | 390,653,382 | $ | 377,822,648 | $ | 285,659,373 | $ | 1,982,323,726 | ||||||||||
Shares of beneficial interest issued and outstanding | 79,715,775 | 35,689,159 | 31,511,840 | 23,927,440 | 134,010,742 | |||||||||||||||
Net asset value, offering and redemption price per share | $ | 14.69 | $ | 10.95 | $ | 11.99 | $ | 11.94 | $ | 14.79 | ||||||||||
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*Cost | ||||||||||||||||||||
Investment securities (unaffiliated) | $ | 1,096,521,577 | $ | 321,534,840 | $ | 330,093,886 | $ | 255,278,974 | $ | 1,705,545,397 | ||||||||||
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See Notes To Financial Statements
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SUNAMERICA SERIES TRUST
For the Year Ended December 31, 2019
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) | $ | 22,953,148 | $ | 5,074,576 | $ | 3,489,120 | $ | 5,092,352 | $ | 11,708,265 | ||||||||||
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Total investment income | 22,953,148 | 5,074,576 | 3,489,120 | 5,092,352 | 11,708,265 | |||||||||||||||
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EXPENSES: | ||||||||||||||||||||
Investment advisory and management fees | 8,333,273 | 3,637,280 | 2,911,565 | 2,255,347 | 17,534,253 | |||||||||||||||
Service fees | 2,444,805 | 956,772 | 856,150 | 663,108 | 4,613,743 | |||||||||||||||
Transfer agent fees | 847 | 1,011 | 1,084 | 1,084 | 850 | |||||||||||||||
Custodian and accounting fees | 13,120 | 13,145 | 13,098 | 13,133 | 13,091 | |||||||||||||||
Reports to shareholders | 109,331 | 56,030 | 53,434 | 44,724 | 327,709 | |||||||||||||||
Audit and tax fees | 27,871 | 27,871 | 27,871 | 27,871 | 27,871 | |||||||||||||||
Legal fees | 13,236 | 9,520 | 8,764 | 8,608 | 69,046 | |||||||||||||||
Trustees’ fees and expenses | 22,582 | 9,705 | 8,380 | 6,617 | 45,033 | |||||||||||||||
Interest expense | — | 13 | — | — | — | |||||||||||||||
Other expenses | 37,428 | 34,640 | 37,407 | 31,290 | 52,306 | |||||||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||
Total expenses before fee waivers and expense reimbursements | 11,002,493 | 4,745,987 | 3,917,753 | 3,051,782 | 22,683,902 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4) | (5,882,310 | ) | (2,680,101 | ) | (2,055,222 | ) | (1,592,010 | ) | (12,919,976 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net expenses | 5,120,183 | 2,065,886 | 1,862,531 | 1,459,772 | 9,763,926 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income (loss) | 17,832,965 | 3,008,690 | 1,626,589 | 3,632,580 | 1,944,339 | |||||||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||||||||||||||
Net realized gain (loss) on investments (unaffiliated) | 4,797,358 | 28,003,531 | 14,373,720 | 9,553,708 | 8,150,638 | |||||||||||||||
Net realized gain (loss) from capital gain distributions received from underlying funds (unaffliated) | 48,400,769 | 20,945,691 | 34,864,375 | 26,043,256 | 17,303,904 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized gain (loss) on investments | 53,198,127 | 48,949,222 | 49,238,095 | 35,596,964 | 25,454,542 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net change in unrealized appreciation (depreciation) on investments (unaffiliated) | 110,621,498 | 62,726,695 | 40,453,808 | 21,535,910 | 283,553,888 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized and unrealized gain (loss) on investments | 163,819,625 | 111,675,917 | 89,691,903 | 57,132,874 | 309,008,430 | |||||||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 181,652,590 | $ | 114,684,607 | $ | 91,318,492 | $ | 60,765,454 | $ | 310,952,769 | ||||||||||
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|
|
|
|
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, 2019 | For the year ended December 31, 2018 | For the year ended December 31, 2019 | For the year ended December 31, 2018 | For the year ended December 31, 2019 | For the year ended December 31, 2018 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 17,832,965 | $ | 11,643,804 | $ | 3,008,690 | $ | 1,455,010 | $ | 1,626,589 | $ | 467,374 | ||||||||||||
Net realized gain (loss) on investments | 53,198,127 | 30,615,854 | 48,949,222 | 53,389,320 | 49,238,095 | 52,835,224 | ||||||||||||||||||
Net unrealized gain (loss) on investments | 110,621,498 | (85,420,834 | ) | 62,726,695 | (88,215,937 | ) | 40,453,808 | (51,046,007 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) in net assets resulting from operations | 181,652,590 | (43,161,176 | ) | 114,684,607 | (33,371,607 | ) | 91,318,492 | 2,256,591 | ||||||||||||||||
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| |||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||||||||||
Distributable earnings — Class 1 | (271,331 | ) | (69,708 | ) | (25,901 | ) | (28,781 | ) | (315 | ) | (109,469 | ) | ||||||||||||
Distributable earnings — Class 3 | (70,044,680 | ) | (65,164,367 | ) | (46,412,353 | ) | (85,129,035 | ) | (1,646,049 | ) | (99,439,357 | ) | ||||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (70,316,011 | ) | (65,234,075 | ) | (46,438,254 | ) | (85,157,816 | ) | (1,646,364 | ) | (99,548,826 | ) | ||||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions (Note 6) | 273,639,381 | 350,585,083 | (30,883,101 | ) | 32,526,086 | (17,249,591 | ) | 51,994,160 | ||||||||||||||||
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|
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|
|
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|
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|
| |||||||||||||
TOTAL INCREASE (DECREASE) IN NET ASSETS | 384,975,960 | 242,189,832 | 37,363,252 | (86,003,337 | ) | 72,422,537 | (45,298,075 | ) | ||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||
Beginning of period | 790,726,109 | 548,536,277 | 353,536,438 | 439,539,775 | 305,560,177 | 350,858,252 | ||||||||||||||||||
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| |||||||||||||
End of period | $ | 1,175,702,069 | $ | 790,726,109 | $ | 390,899,690 | $ | 353,536,438 | $ | 377,982,714 | $ | 305,560,177 | ||||||||||||
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|
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|
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, 2019 | For the year ended December 31, 2018 | For the year ended December 31, 2019 | For the year ended December 31, 2018 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 3,632,580 | $ | 2,957,718 | $ | 1,944,339 | $ | 22,798,710 | ||||||||
Net realized gain (loss) on investments | 35,596,964 | 35,843,239 | 25,454,542 | 78,332,611 | ||||||||||||
Net unrealized gain (loss) on investments | 21,535,910 | (42,126,160 | ) | 283,553,888 | (193,244,936 | ) | ||||||||||
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|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 60,765,454 | (3,325,203 | ) | 310,952,769 | (92,113,615 | ) | ||||||||||
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| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||
Distributable earnings — Class 1 | (566 | ) | (90,252 | ) | (4,391 | ) | (10,534 | ) | ||||||||
Distributable earnings — Class 3 | (1,226,850 | ) | (67,588,654 | ) | (29,070,206 | ) | (115,944,064 | ) | ||||||||
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|
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| |||||||||
Total distributions to shareholders | (1,227,416 | ) | (67,678,906 | ) | (29,074,597 | ) | (115,954,598 | ) | ||||||||
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|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from capital share transactions (Note 6) | (18,949,816 | ) | 34,918,155 | 41,072,316 | 212,935,683 | |||||||||||
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|
|
|
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|
|
| |||||||||
TOTAL INCREASE (DECREASE) IN NET ASSETS | 40,588,222 | (36,085,954 | ) | 322,950,488 | 4,867,470 | |||||||||||
NET ASSETS: | ||||||||||||||||
Beginning of period | 245,229,858 | 281,315,812 | 1,659,503,252 | 1,654,635,782 | ||||||||||||
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| |||||||||
End of period | $ | 285,818,080 | $ | 245,229,858 | $ | 1,982,453,740 | $ | 1,659,503,252 | ||||||||
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See Notes to Financial Statements
| ||
17 |
Table of Contents
SUNAMERICA SERIES TRUST
December 31, 2019
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 sixty 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.
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.
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.
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Table of Contents
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 capital growth 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 Fund (“the Master Managed Risk 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 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 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.
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Table of Contents
The summary of the Portfolios’ assets and liabilities classified in the fair value hierarchy as of December 31, 2019, 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 Capital Group Central Cash Fund (“CCF”) is valued based upon a floating net asset value, which fluctuates with changes in the value of CCF’s portfolio securities. The underlying securities are valued based on the policies and procedures in CCF’s statement of additional information. 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 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
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Table of Contents
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 2016 – 2018 or expected to be taken in each Portfolio’s 2019 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 2016.
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LIBOR Risk: A fund’s investments, payment obligations and financing terms may be based on floating rates, such as London Interbank Offer Rate (“LIBOR”), Euro Interbank Offered Rate and other similar types of reference rates (each, a “Reference Rate”). On July 27, 2017, the Chief Executive of the UK Financial Conduct Authority (“FCA”), which regulates LIBOR, announced that the FCA will no longer persuade nor require banks to submit rates for the calculation of LIBOR and certain other Reference Rates after 2021. Such announcement indicates that the continuation of LIBOR and other Reference Rates on the current basis cannot and will not be guaranteed after 2021. This announcement and any additional regulatory or market changes may have an adverse impact on a fund or its investments.
In advance of 2021, regulators and market participants will work together to identify or develop successor Reference Rates. Additionally, prior to 2021, it is expected that market participants will focus on the transition mechanisms by which the Reference Rates in existing contracts or instruments may be amended, whether through market wide protocols, fallback contractual provisions, bespoke negotiations or amendments or otherwise. Nonetheless, the termination of certain Reference Rates presents risks to a fund. At this time, it is not possible to completely identify or predict the effect of any such changes, any establishment of alternative Reference Rates or any other reforms to Reference Rates that may be enacted in the UK or elsewhere. The elimination of a Reference Rate or any other changes or reforms to the determination or supervision of Reference Rates could have an adverse impact on the market for or value of any securities or payments linked to those Reference Rates and other financial obligations held by a fund or on its overall financial condition or results of operations. In addition, any substitute Reference Rate and any pricing adjustments imposed by a regulator or by counterparties or otherwise may adversely affect a fund’s performance and/or NAV.
New Accounting Pronouncements: 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, 2019 | ||||||||||||||||||||
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 | $ | — | $ | 1,072,215 | $ | 78,589,873 | $ | 17,853,138 | $ | 52,462,873 | ||||||||||
SA American Funds Global Growth | — | 7,111,946 | 69,337,999 | 3,008,690 | 43,429,564 | |||||||||||||||
SA American Funds Growth | 3,420,192 | 46,079,877 | 46,884,785 | — | 1,646,364 | |||||||||||||||
SA American Funds Growth-Income | 4,770,252 | 33,645,660 | 27,625,341 | — | 1,227,416 | |||||||||||||||
SA American Funds VCP Managed Allocation | 4,675,202 | — | 277,849,392 | 4,948,518 | 24,126,079 |
For the year ended December 31, 2018 | ||||||||
Tax Distributions | ||||||||
Ordinary Income | Long-Term Capital Gains | |||||||
SA American Funds Asset Allocation | $ | 20,798,886 | $ | 44,435,189 | ||||
SA American Funds Global Growth | 4,572,755 | 80,585,061 | ||||||
SA American Funds Growth | 3,095,423 | 96,453,403 | ||||||
SA American Funds Growth-Income | 7,155,075 | 60,523,831 | ||||||
SA American Funds VCP Managed Allocation | 26,680,451 | 89,274,147 |
As of December 31, 2019, there were no open capital loss carryforward amounts.
For the year ended December 31, 2019, the reclassifications arising from book/tax differences resulted in increases (decreases) that were primarily due to short-term capital gain distributions received were as follows:
Portfolio | Accumulated Undistributed Net Investment Income (Loss) | Accumulated Undistributed Net Realized Gain (Loss) | Capital Paid-in | |||||||||
SA American Funds Asset Allocation | $ | 20,173 | $ | (20,173 | ) | $ | — | |||||
SA American Funds Global Growth | (9,651 | ) | 9,651 | — | ||||||||
SA American Funds Growth | 1,793,603 | (1,793,603 | ) | — | ||||||||
SA American Funds Growth-Income | 1,137,672 | (1,137,672 | ) | — | ||||||||
SA American Funds VCP Managed Allocation | 2,945,372 | (2,945,372 | ) | — |
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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 | $ | 79,776,432 | $ | (1,186,559 | ) | $ | 78,589,873 | $ | 1,097,708,136 | |||||||
SA American Funds Global Growth | 69,608,725 | (270,726 | ) | 69,337,999 | 321,805,566 | |||||||||||
SA American Funds Growth | 48,124,905 | (1,240,120 | ) | 46,884,785 | 331,334,006 | |||||||||||
SA American Funds Growth-Income | 30,725,072 | (3,099,731 | ) | 27,625,341 | 258,378,705 | |||||||||||
SA American Funds VCP Managed Allocation | 277,913,374 | (63,982 | ) | 277,849,392 | 1,705,609,379 |
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 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, 2019, SAAMCo has agreed to waive advisory fees as follows:
Portfolio | Amount | |||
SA American Funds Asset Allocation | $ | 5,882,310 | ||
SA American Funds Global Growth | 2,680,101 | |||
SA American Funds Growth | 2,055,222 | |||
SA American Funds Growth-Income | 1,592,010 | |||
SA American Funds VCP Managed Allocation | 12,919,976 |
SAAMCo has contractually agreed to waive fees and/or reimburse expenses of the following Portfolio until April 30, 2020; 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, 2020 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, 2019, 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, 2019, no amounts were repaid to the Adviser, and there are no remaining balances subject to recoupment.
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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, 2019, 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, 2019, service fees were paid (see Statement of Operations) based on the aforementioned rate.
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, 2019 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 | $ | 214,495,971 | $ | 15,731,283 | $ | — | $ | — | ||||||||
SA American Funds Global Growth | 4,901,675 | 84,042,820 | — | — | ||||||||||||
SA American Funds Growth | 22,964,145 | 43,516,426 | — | — | ||||||||||||
SA American Funds Growth-Income | 10,882,195 | 32,361,940 | — | — | ||||||||||||
SA American Funds VCP Managed Allocation | 85,599,702 | 82,244,080 | — | — |
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, 2019 | For the year ended December 31, 2018 | For the year ended December 31, 2019 | For the year ended December 31, 2018 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 222,934 | $ | 3,239,870 | 52,481 | $ | 780,275 | 16,498,719 | $ | 237,438,124 | 22,949,626 | $ | 340,660,811 | ||||||||||||||||||||
Reinvested dividends | 18,522 | 271,331 | 5,231 | 69,708 | 4,784,758 | 70,044,680 | 4,888,668 | 65,164,367 | ||||||||||||||||||||||||
Shares redeemed | (11,495 | ) | (169,328 | ) | (7,602 | ) | (111,490 | ) | (2,637,839 | ) | (37,185,296 | ) | (3,786,337 | ) | (55,978,588 | ) | ||||||||||||||||
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Net increase (decrease) | 229,961 | $ | 3,341,873 | 50,110 | $ | 738,493 | 18,645,638 | $ | 270,297,508 | 24,051,957 | $ | 349,846,590 | ||||||||||||||||||||
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SA American Funds Global Growth Portfolio | ||||||||||||||||||||||||||||||||
Class 1 | Class 3 | |||||||||||||||||||||||||||||||
For the year ended December 31, 2019 | For the year ended December 31, 2018 | For the year ended December 31, 2019 | For the year ended December 31, 2018 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 7,893 | $ | 87,976 | — | $ | — | 874,642 | $ | 9,388,124 | 2,635,695 | $ | 29,221,552 | ||||||||||||||||||||
Reinvested dividends | 2,390 | 25,901 | 2,919 | 28,781 | 4,278,941 | 46,412,353 | 8,620,825 | 85,129,035 | ||||||||||||||||||||||||
Shares redeemed | (283 | ) | (3,101 | ) | — | — | (8,051,947 | ) | (86,794,354 | ) | (6,238,775 | ) | (81,853,282 | ) | ||||||||||||||||||
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Net increase (decrease) | 10,000 | $ | 110,776 | 2,919 | $ | 28,781 | (2,898,364 | ) | $ | (30,993,877 | ) | 5,017,745 | $ | 32,497,305 | ||||||||||||||||||
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SA American Funds Growth Portfolio | ||||||||||||||||||||||||||||||||
Class 1 | Class 3 | |||||||||||||||||||||||||||||||
For the year ended December 31, 2019 | For the year ended December 31, 2018 | For the year ended December 31, 2019 | For the year ended December 31, 2018 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 8,767 | $ | 100,063 | 18,151 | $ | 256,449 | 3,015,269 | $ | 32,193,311 | 2,459,680 | $ | 30,429,416 | ||||||||||||||||||||
Reinvested dividends | 30 | 315 | 10,706 | 109,469 | 156,469 | 1,646,049 | 9,600,058 | 99,439,357 | ||||||||||||||||||||||||
Shares redeemed | (1,616 | ) | (19,369 | ) | (32,725 | ) | (296,658 | ) | (4,728,043 | ) | (51,169,960 | ) | (5,731,612 | ) | (77,943,873 | ) | ||||||||||||||||
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Net increase (decrease) | 7,181 | $ | 81,009 | (3,868 | ) | $ | 69,260 | (1,556,305 | ) | $ | (17,330,600 | ) | 6,328,126 | $ | 51,924,900 | |||||||||||||||||
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Table of Contents
SA American Funds Growth-Income Portfolio | ||||||||||||||||||||||||||||||||
Class 1 | Class 3 | |||||||||||||||||||||||||||||||
For the year ended December 31, 2019 | For the year ended December 31, 2018 | For the year ended December 31, 2019 | For the year ended December 31, 2018 | |||||||||||||||||||||||||||||
Shares | �� | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||
Shares sold | 8,378 | $ | 94,666 | 18,101 | $ | 246,681 | 1,718,711 | $ | 18,733,207 | 1,941,502 | $ | 24,389,551 | ||||||||||||||||||||
Reinvested dividends | 52 | 566 | 8,580 | 90,252 | 113,808 | 1,226,850 | 6,367,095 | 67,588,654 | ||||||||||||||||||||||||
Shares redeemed | (129 | ) | (1,517 | ) | (31,486 | ) | (296,070 | ) | (3,611,355 | ) | (39,003,588 | ) | (4,315,963 | ) | (57,100,913 | ) | ||||||||||||||||
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Net increase (decrease) | 8,301 | $ | 93,715 | (4,805 | ) | $ | 40,863 | (1,778,836 | ) | $ | (19,043,531 | ) | 3,992,634 | $ | 34,877,292 | |||||||||||||||||
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SA American Funds VCP Managed Allocation Portfolio | ||||||||||||||||||||||||||||||||
Class 1 | Class 3 | |||||||||||||||||||||||||||||||
For the year ended December 31, 2019 | For the year ended December 31, 2018 | For the year ended December 31, 2019 | For the year ended December 31, 2018 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 6,181 | $ | 85,928 | 2,102 | $ | 30,066 | 8,554,243 | $ | 117,397,960 | 15,039,627 | $ | 215,370,662 | ||||||||||||||||||||
Reinvested dividends | 301 | 4,391 | 821 | 10,534 | 2,003,304 | 29,070,206 | 9,065,032 | 115,944,064 | ||||||||||||||||||||||||
Shares redeemed | (9,123 | ) | (135,373 | ) | (50 | ) | (664 | ) | (7,526,249 | ) | (105,350,796 | ) | (8,573,779 | ) | (118,418,979 | ) | ||||||||||||||||
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Net increase (decrease) | (2,641 | ) | $ | (45,054 | ) | 2,873 | $ | 39,936 | 3,031,298 | $ | 41,117,370 | 15,530,880 | $ | 212,895,747 | ||||||||||||||||||
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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.
Portfolio | Days Outstanding | Interest Charges | Average Debt Utilized | Weighted Average Interest | ||||||||||||
SA American Funds Global Growth | 1 | $ | 13 | $ | 150,000 | 3.10 | % |
Note 8. Transactions with Affiliates
At December 31, 2019, the following affiliates owned outstanding shares of the following Portfolios:
Holder | ||||||||||||
Portfolio | USL | AGL | VALIC | |||||||||
SA American Funds Asset Allocation | 6.46 | % | 89.73 | % | 3.81 | % | ||||||
SA American Funds Global Growth | 4.87 | % | 94.50 | % | 0.63 | % | ||||||
SA American Funds Growth | 4.80 | % | 93.87 | % | 1.33 | % | ||||||
SA American Funds Global-Income | 5.67 | % | 92.62 | % | 1.71 | % | ||||||
SA American Funds VCP Managed Allocation | 9.80 | % | 87.01 | % | 3.19 | % |
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Table of Contents
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 | |||||||||||||||||||||||||||||||||
12/31/19 | 12.94 | 0.43 | 2.31 | 2.74 | (0.27 | ) | (0.70 | ) | (0.97 | ) | 14.71 | 21.22 | 4,320 | 0.27 | 3.05 | 2 | ||||||||||||||||||||||||||||||||||||
SA American Funds Asset Allocation Portfolio Class 3 |
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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 | |||||||||||||||||||||||||||||||||
12/31/19 | 12.93 | 0.26 | 2.44 | 2.70 | (0.24 | ) | (0.70 | ) | (0.94 | ) | 14.69 | 20.91 | 1,171,382 | 0.52 | 1.82 | 2 | ||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
12/31/19 | 9.15 | 0.14 | 3.07 | 3.21 | (0.12 | ) | (1.30 | ) | (1.42 | ) | 10.94 | 35.27 | 246 | 0.29 | 1.34 | 1 | ||||||||||||||||||||||||||||||||||||
SA American Funds Global Growth Portfolio Class 3 |
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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 | |||||||||||||||||||||||||||||||||
12/31/19 | 9.16 | 0.09 | 3.09 | 3.18 | (0.09 | ) | (1.30 | ) | (1.39 | ) | 10.95 | 34.93 | 390,653 | 0.54 | 0.79 | 1 |
* | 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) | Net of the following expense reimbursements, waivers and (recoupments) (based on average assets): |
Portfolio | 12/15 | 12/16 | 12/17 | 12/18 | 12/19 | |||||||||||||||
SA American Funds Asset Allocation Class 1 | — | % | 0.60 | %† | 0.60 | % | 0.60 | % | 0.60 | % | ||||||||||
SA American Funds Asset Allocation Class 3 | 0.60 | 0.60 | 0.60 | 0.60 | 0.60 | |||||||||||||||
SA American Funds Global Growth Class 1 | — | 0.70 | † | 0.70 | 0.70 | 0.70 | ||||||||||||||
SA American Funds Global Growth Class 3 | 0.70 | 0.70 | 0.70 | 0.70 | 0.70 |
(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 Growth Portfolio Class 1 |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
12/31/19 | 9.23 | 0.13 | 2.70 | 2.83 | — | (0.05 | ) | (0.05 | ) | 12.01 | 30.75 | 160 | 0.29 | 1.22 | 7 | |||||||||||||||||||||||||||||||||||||
SA American Funds Growth Portfolio Class 3 |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||
12/31/19 | 9.24 | 0.05 | 2.75 | 2.80 | — | (0.05 | ) | (0.05 | ) | 11.99 | 30.39 | 377,823 | 0.54 | 0.47 | 7 | |||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
12/31/19 | 9.54 | 0.21 | 2.28 | 2.49 | — | (0.05 | ) | (0.05 | ) | 11.98 | 26.17 | 159 | 0.31 | 2.06 | 4 | |||||||||||||||||||||||||||||||||||||
SA American Funds Growth-Income Portfolio Class 3 |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
12/31/19 | 9.54 | 0.15 | 2.30 | 2.45 | — | (0.05 | ) | (0.05 | ) | 11.94 | 25.75 | 285,659 | 0.55 | 1.37 | 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) | Net of the following expense reimbursements, waivers and (recoupments) (based on average assets): |
Portfolio | 12/15 | 12/16 | 12/17 | 12/18 | 12/19 | |||||||||||||||
SA American Funds Growth Class 1 | — | % | 0.60 | %† | 0.60 | % | 0.60 | % | 0.60 | % | ||||||||||
SA American Funds Growth Class 3 | 0.60 | 0.60 | 0.60 | 0.60 | 0.60 | |||||||||||||||
SA American Funds Growth-Income Class 1 | — | 0.60 | † | 0.60 | 0.60 | 0.60 | ||||||||||||||
SA American Funds Growth-Income Class 3 | 0.60 | 0.60 | 0.60 | 0.60 | 0.60 |
(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 |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
12/31/19 | 12.68 | 0.06 | 2.32 | 2.38 | (0.07 | ) | (0.18 | ) | (0.25 | ) | 14.81 | 18.81 | 130 | 0.28 | 0.42 | 4 | ||||||||||||||||||||||||||||||||||||
SA American Funds VCP Managed Allocation Portfolio Class 3 |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
12/31/19 | 12.67 | 0.01 | 2.33 | 2.34 | (0.04 | ) | (0.18 | ) | (0.22 | ) | 14.79 | 18.48 | 1,982,324 | 0.53 | 0.11 | 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) | Net of the following expense reimbursements, waivers and (recoupments) (based on average net assets): |
Portfolio | 12/15 | 12/16 | 12/17 | 12/18 | 12/19 | |||||||||||||||
SA American Funds VCP Managed Allocation Class 1 | — | % | 0.70 | %† | 0.70 | % | 0.70 | % | 0.70 | % | ||||||||||
SA American Funds VCP Managed Allocation Class 3 | 0.70 | 0.70 | 0.70 | 0.70 | 0.70 |
(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
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 (constituting SunAmerica Series Trust, hereafter collectively referred to as the “Portfolios”) as of December 31, 2019, the related statements of operations for the year ended December 31, 2019, the statements of changes in net assets for each of the two years in the period ended December 31, 2019, 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, 2019, 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, 2019 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, 2019 by correspondence with the transfer agent. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
Houston, Texas
February 26, 2020
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, 2019 (unaudited)
At a meeting held on October 3, 2019, 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, 2019 (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, 2019 from Broadridge and performance information as of June 30, 2019 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 the five- andten-year periods but performed below that index for theone- and three-year periods. The Board further considered that the Portfolio performed at the medians of its Performance Group for the five- andten-year periods but below the medians for theone- and three-year periods. The Board took into account management’s discussion of the Master Fund’s performance.
• | SA American Funds® Global Growth Portfolio (master-feeder fund advised by Capital Research/SAAMCo). The Board considered that actual management fees were slightly above and total expenses were below 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, 2019 (unaudited) (continued)
The Board considered that the Portfolio outperformed its benchmark index for the five- andten-year periods but performed below that index for theone- and three-year periods. The Board further considered that the Portfolio performed above the medians of its Performance Group for the three-, five- andten-year periods but below the median for theone-year period. 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 the three-, five- andten-year periods but below that index for theone-year period. The Board also noted that the Portfolio performed above the medians of its Performance Group for the three- and five-year periods, at the median for theten-year period and below the median for theone-year period. The Board took into account management’s discussion of the Master Fund’s performance.
• | 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 below its benchmark index for theone-, three-, five- andten-year periods. The Board further considered that the Portfolio performed below the medians of its Performance Group for the same 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 the five-year period and below the index for theone- and three-year periods. The Board also considered that the Portfolio performed 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.
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SUNAMERICA SERIES TRUST
APPROVAL OF ADVISORY AGREEMENT
December 31, 2019 (unaudited) (continued)
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.
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 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: 75 | Trustee | 2007 – Present | Retired (2003-Present); Managing Director and CEO, Barclays Global Investors (1996-2003). | 79 | Chairman/Director, The LECG Group (consulting services)(2006-2010). | |||||||
Carl D. Covitz Age: 80 | Trustee | 2001 – Present | Owner and President, Landmark Capital, Inc. (1973-Present). | 79 | Director, Arden Realty, Inc. (real estate) (1995-2006). | |||||||
Jane Jelenko Age: 71 | Trustee | 2006 – Present | Retired Partner KPMG, LLP and Managing Director Bearingpoint, Inc. (formerly KPMG Consulting). (2003-Present). | 79 | Director, Countrywide Bank(2003-2008) and Director, Cathay General Bancorp and CathayBank (banking) (2012-Present). | |||||||
Gilbert T. Ray Age: 75 | Trustee | 2001 – Present | Retired Partner, O’Melveny & Myers LLP (law firm)(2000-Present). | 79 | 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: 88 | Trustee | 1997 – Present | Retired Brokerage Executive (1992-Present). | 79 | Director, Bowl America Inc.(1997-Present). | |||||||
Bruce G. Willison Age: 71 | 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). | 79 | 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 | ||||||||||||
Sharon French (2) Age: 54 | Trustee | 2019 – present | President and CEO of SunAmerica (since 2019); Vice President of AIG (since 2019); Executive Vice President and Head of Beta Solutions, OppenheimerFunds (2016-2019); President, F-Squared Capital, LLC (financial services) (2013-2015). | 79 | None |
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SUNAMERICA SERIES TRUST
TRUSTEES AND OFFICERS INFORMATION(unaudited) — (continued)
Name 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: 51 | 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: 50 | 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: 53 | Vice President and Assistant Secretary | 2005 – Present | Senior Vice President and General Counsel, SAAMCo(2005-Present). | N/A | N/A | |||||
Gregory R. Kingston Age 53 | Treasurer | 2014 – Present | Vice President, SAAMCo(2001-Present); Head of Mutual Fund Administration(2014-Present) | N/A | N/A | |||||
Shawn Parry Age: 47 | 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: 58 | 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: 48 | 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 (60 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 Investment Company Act of 1940, because she serves as President and CEO of SunAmerica. |
(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, 2019.
During the year ended December 31, 2019 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 Dividends Received Deduction | ||||||||||||||||
SA American Funds Asset Allocation Portfolio Class 1 | $ | 0.97 | $ | 0.27 | $ | — | $ | 0.70 | 63.73 | % | ||||||||||
SA American Funds Asset Allocation Portfolio Class 3 | 0.94 | 0.24 | — | 0.70 | 63.73 | |||||||||||||||
SA American Funds Global Growth Portfolio Class 1 | 1.42 | 0.12 | — | 1.30 | 69.11 | |||||||||||||||
SA American Funds Global Growth Portfolio Class 3 | 1.39 | 0.09 | — | 1.30 | 69.11 | |||||||||||||||
SA American Funds Growth Portfolio Class 1 | 0.05 | — | — | 0.05 | — | |||||||||||||||
SA American Funds Growth Portfolio Class 3 | 0.05 | — | — | 0.05 | — | |||||||||||||||
SA American Funds Growth-Income Portfolio Class 1 | 0.05 | — | — | 0.05 | — | |||||||||||||||
SA American Funds Growth-Income Portfolio Class 3 | 0.05 | — | — | 0.05 | — | |||||||||||||||
SA American Funds VCP Managed Allocation Portfolio Class 1 | 0.25 | 0.07 | — | 0.18 | 100.00 | |||||||||||||||
SA American Funds VCP Managed Allocation Portfolio Class 3 | 0.22 | 0.04 | — | 0.18 | 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, 2019.
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 |
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Average Annual Total Returns as of 12/31/2019 |
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Class 1* | Class 3* | |||||||
1-year | 21.22% | 20.91% | ||||||
5-year | N/A | 8.02% | ||||||
10-year | N/A | 9.57% | ||||||
Since Inception | 10.09% | 6.86% |
* | 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 20.91% for the twelve months ended December 31, 2019. The S&P 500® Index increased 31.49% over the same period, while the Bloomberg Barclays U.S. Aggregate Bond Index returned 8.72%. The Blended Index (60% S&P 500® Index and 40% Bloomberg Barclays U.S. Aggregate Bond Index) increased 22.18%. TheAmerican Funds Asset Allocation Fund — Class 1 (Master Fund), which is a mix of stocks and bonds, returned 21.54% for the annual period.
U.S. equities had their strongest annual gains since 2013, ending the year near all-time highs. Stocks rose steadily, posting gains in 10 of 12 months. The U.S. trade war with China occasionally caused volatility, but the resilient U.S. economy and the Federal Reserve’s return to accommodative policies helped steer markets higher. Information technology companies posted the highest returns, with a gain of nearly 48% in aggregate. Outside the United States, European stocks advanced despite signs of slowing economic growth, a near-recession in Germany and Brexit-related uncertainty in the United Kingdom that remained unresolved until the very last month of the year. Emerging markets stocks advanced, overcoming bouts of volatility tied to global trade tensions, China’s economic slowdown and a strong U.S. dollar.
Investments in the financials sector, one of the Master Fund’s largest sector holdings, contributed to the Master Fund’s relative returns. Within financials, Arch Capital Group, Berkshire Hathaway and Apollo boosted results, as all three companies had at least double-digit returns that outpaced the general market. On the downside, health care stock AbbVie detracted from relative returns as its best-selling drug Humira faced generic competition. The Master Fund’s fixed income investments somewhat detracted from relative returns due to duration positioning and security selection.
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 |
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Average Annual Total Returns as of 12/31/2019 |
| |||||||
Class 1* | Class 3* | |||||||
1-year | 35.27% | 34.93% | ||||||
5-year | N/A | 11.43% | ||||||
10-year | N/A | 10.81% | ||||||
Since Inception | 14.33% | 8.67% |
* | 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 26 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.
TheSA American Funds Global Growth Portfolio — Class 3 (Feeder Fund) returned 34.93% for the twelve months ended December 31, 2019, compared with a 26.60% return for the MSCI ACWI (net) Index. TheAmerican Funds Global Growth Fund — Class 1 (Master Fund) returned 35.61% for the annual period.
Global stocks generated the best returns in a decade, boosted by aggressive central bank stimulus measures and easing trade tensions toward the end of the year. U.S. stocks soared to near record highs in December as the United States and China agreed to a limited trade war truce with the aim of avoiding the imposition of new tariffs and other protectionist measures. Information technology stocks posted the highest returns with a gain of nearly 48% in aggregate. Outside the United States, European stocks advanced despite signs of slowing economic growth, a near-recession in Germany and Brexit-related uncertainty in the United Kingdom that remained unresolved until the very last month of the year. Emerging markets stocks advanced, overcoming bouts of volatility tied to global trade tensions, China’s economic slowdown and a strong U.S. dollar.
The Master Fund’s overweight position to the top performing information technology sector as well as individual stock selection in that sector boosted the Master Fund’s returns compared with the MSCI ACWI (net) index. The Master Fund’s relative weightings in ASML and TSMC benefitted the Master Fund as both outpaced the wider market and were among the top contributors to the Master Fund’s relative returns. Consumer discretionary stock Alibaba Group also helped the Master Fund’s relative returns, as its returns outpaced the market. The biggest drag on relative results was Apple, a stock the Master Fund did not own, as it proved to be one of the strongest performers for the year. On a geographic basis, stocks of companies domiciled in the Netherlands and Taiwan were additive to results, while stocks of companies based in the Philippines and Belgium 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 12/31/2019 |
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Class 1* | Class 3* | |||||||
1-year | 30.75% | 30.39% | ||||||
5-year | N/A | 14.06% | ||||||
10-year | N/A | 13.65% | ||||||
Since Inception | 17.98% | 9.44% |
* | 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 30.39% for the twelve months ended December 31, 2019, compared with a 31.49% increase in the S&P 500® Index. TheAmerican Funds Growth Fund — Class 1 (Master Fund) returned 31.11% for the annual period.
U.S. equities had their strongest annual gains since 2013, ending the year near all-time highs. Stocks rose steadily, posting gains in 10 of 12 months. The U.S. trade war with China occasionally caused volatility, but the resilient U.S. economy and the Federal Reserve’s return to accommodative policies helped steer markets higher. Information technology companies posted the highest returns, with a gain of nearly 48% in aggregate. Outside the United States, European stocks advanced despite signs of slowing economic growth, a near-recession in Germany and Brexit-related uncertainty in the United Kingdom that remained unresolved until the very last month of the year. Emerging markets stocks advanced, overcoming bouts of volatility tied to global trade tensions, China’s economic slowdown and a strong U.S. dollar.
Companies in the communication services sector contributed to relative results, led by Facebook, which was boosted by strong user and revenue growth. Investments in the consumer discretionary and health care sectors detracted from the Master Fund’s relative results. The Master Fund’s top detractor to relative returns was information technology company Apple. The Master Fund had a significantly lower investment in Apple compared to the S&P 500® Index and Apple proved to be one of the top performers for the year.
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 |
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Average Annual Total Returns as of 12/31/2019 |
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Class 1* | Class 3* | |||||||
1-year | 26.17% | 25.75% | ||||||
5-year | N/A | 11.08% | ||||||
10-year | N/A | 12.19% | ||||||
Since Inception | 14.79% | 8.28% |
* | 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 25.75% for the 12 months ended December 31, 2019, while the S&P 500® Index increased 31.49% over the same period. TheAmerican Funds Growth-Income Fund — Class 1 (Master Fund) returned 26.46% for annual period.
U.S. equities had their strongest annual gains since 2013, ending the year near all-time highs. Stocks rose steadily, posting gains in 10 of 12 months. The U.S. trade war with China occasionally caused volatility, but the resilient U.S. economy and the Federal Reserve’s return to accommodative policies helped steer markets higher. Information technology companies posted the highest returns, with a gain of nearly 48% in aggregate. Outside the United States, European stocks advanced despite signs of slowing economic growth, a near-recession in Germany and Brexit-related uncertainty in the United Kingdom that remained unresolved until the very last month of the year. Emerging markets stocks advanced, overcoming bouts of volatility tied to global trade tensions, China’s economic slowdown and a strong U.S. dollar.
The Master Fund’s investments in the industrials sector contributed the most to the relative returns. Among industrials, aircraft component manufacturer TransDigm Group added the most to the Master Fund’s relative results. On the downside, the Master Fund’s underweight position in information technology stocks, a sector that performed strongly over the period, weighed on relative returns. In particular, the Master Fund’s underweight position in Apple hindered sector results the most as Apple shares outperformed the broader market over the period.
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 |
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Average Annual Total Returns as of 12/31/2019 |
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Class 1* | Class 3* | |||||||
1-year | 18.81% | 18.48% | ||||||
5-year | N/A | 6.32% | ||||||
10-year | N/A | N/A | ||||||
Since Inception | 8.84% | 7.55% |
* | Inception date for Class 1: 09/26/16; Class 3: 10/15/12. |
1 | 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. |
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) returned 18.48% for the twelve months ended December 31, 2019. The S&P 500® Managed Risk Index — Moderate increased 19.34% over the same period. TheAmerican Funds Managed Risk Growth-Income Fund — Class P1 (Master Fund) returned 19.14% 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 Master 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 investments in industrials added to relative returns, while investments in materials detracted from relative results. At the security level within the materials sector, a top detractor from relative results included Vale in the metals and mining industry.
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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 the first and third quarters of each fiscal year on Form N-PORT. The Trust’s Forms N-PORT are available on the U.S. Securities and Exchange Commission’s website at http://www.sec.gov.
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
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THISREPORTISNOTAUTHORIZEDFORDISTRIBUTIONTOPROSPECTIVEPURCHASERSUNLESSACCOMPANIEDORPRECEDEDBYACURRENTPROSPECTUS.
R4397AR.13 (2/20)
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American Funds Insurance Series, by Capital Group, is the underlying investment vehicle for many variable annuities and insurance products. For nearly 90 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 capitalgroup.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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Fellow investors:
Global stocks generated the bestone-year returns in a decade as measured by the 26.60% gain in the MSCI ACWI (All Country World Index)1,2 boosted by aggressive central bank stimulus measures and easing trade tensions toward the end of the year. These returns were assisted by a low starting point for 2019, after sharp market declines in the last quarter of 2018. Information technology companies posted the highest returns, with a gain of nearly 48% (as measured by the MSCI World Index). The sector was driven by strong growth from U.S. tech giants such as Apple, Microsoft and Facebook. The next best sector, industrials, rose 28% amid an improving outlook for trade activity and global economic growth.
U.S. equities had their strongest annual gains since 2013, ending the year nearall-time highs, with an increase of 31.64% recorded by the MSCI USA Index1,3. The current economic expansion became the longest in U.S. history, surpassing the10-year boom from the 1990s. For the first 11 months of the year, average hourly earnings topped at least 3% annualized growth. In November, the unemployment rate fell to 3.5%, matching its lowest level in 50 years. The robust labor market supported consumer spending, more than offsetting weaker business sentiment and manufacturing. The U.S. trade war with China occasionally caused volatility, but the resilient U.S. economy and the Federal Reserve’s return to accommodative policies helped steer
markets higher. The central bank cut its policy rate three times in 2019 amid concerns over slowing economic growth, which perhaps helped prevent further slowing. In addition, potential bubbles like We Work and certain billion-dollar tech “unicorns” were deflated without broad damage to the rest of the market.
European stocks rallied despite signs of slowing economic growth, a near-recession in Germany and Brexit-related uncertainty in the U.K. that remained unresolved until the very last month of the year. Boosted by easy monetary policy, European investors cheered aggressive interest rate cuts by the European Central Bank. The MSCI Europe Index1,4 gained 23.77% for the year. The progress of U.S.-China trade negotiations heavily influenced European markets throughout the year as share prices moved sharply higher or lower on the tenor of trade-related headlines. Germany’s auto industry was particularly hard hit. With Europe’s economy highly dependent on global trade, the announcement of a “phase one” trade deal between the U.S. and China in December helped to bolster investor sentiment heading into the new year. Elsewhere among developed markets, the Japanese economy expanded modestly through the first three quarters of 2019 despite a manufacturing slowdown driven largely by the U.S.-China trade dispute. The MSCI Japan Index1,5 rose 19.61% over the year.
All market returns 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. Source: MSCI.
1 | Source: MSCI. |
2 | The MSCI ACWI is a freefloat-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. |
3 | The MSCI USA Index is a freefloat-adjusted, market capitalization-weighted index that is designed to measure the U.S. portion of the world market. |
4 | MSCI Europe Index is a freefloat-adjusted market capitalization-weighted index that is designed to measure results of more than 10 developed equity markets in Europe. Results reflect dividends net of withholding taxes. |
American Funds Insurance Series 1
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Emerging markets stocks advanced, overcoming bouts of volatility tied to global trade tensions, China’s economic slowdown and a strong U.S. dollar. Growth stocks outpaced more defensive parts of the market, led by the information technology and consumer discretionary sectors. Overall, the MSCI Emerging Markets Investable Market Index1,6 gained 17.64% for the year. Chinese stocks rose despite slower growth and trade tensions with the U.S. Indian equities lagged most other emerging markets while Brazilian stocks posted their best annual return since 2016.
Bonds advanced as central banks around the world cut interest rates in an attempt to blunt concerns about a slowing economy. The Fed paused rate hikes for the first half of the year and cut three times in the second half and the federal funds rate ended the year between 1.50% and 1.75%. Credit saw very sizable returns, with the Bloomberg Barclays U.S. Corporate Investment Grade Index7,8 and the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index7,9 gaining 14.54% and 14.32%, respectively. More broadly, the Bloomberg Barclays Global Aggregate Index7,10 was up 6.84%, while the Bloomberg Barclays U.S.
Aggregate Index7,11 advanced 8.72%. The J.P. Morgan Emerging Markets Bond Index7,12 – Global gained 14.42%.
In foreign exchange markets, the U.S. dollar rose nearly 2% against the euro while declining 1% against the yen. Meanwhile, the British pound ended the year with a historic rally after U.K. voters gave the Conservative Party a strong majority in Parliament, increasing the likelihood that the U.K. will be able to begin the Brexit process and leave the European Union.
Looking ahead
The current environment is rife with uncertainty, from trade-related disputes to geopolitical tensions to an upcoming U.S. presidential election. We will be following and analyzing each of these issues closely. In this environment, it would be reasonable to expect some volatility. Valuation measures are also giving mixed signals – some look high, some look just fine. So, we will continue to focus on individual securities and bring our research and judgment to bear. With our long-term approach, we welcome opportunities to see past short-term trends and invest our shareholder’s money for the long run.
Our time-tested process — 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 11, 2020
5 | MSCI Japan Index is a freefloat-adjusted market capitalization-weighted index that is designed to measure the equity market results of Japan. |
6 | MSCI Emerging Markets Investable Market Index (IMI) is a freefloat-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. |
7 | Source: Bloomberg Index Services Ltd. |
8 | 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. |
9 | Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index covers the universe offixed-rate,non-investment-grade debt. The index limits the maximum exposure of any one issuer to 2%. |
10 | Bloomberg Barclays Global Aggregate Index represents the global investment-grade fixed income markets. |
11 | Bloomberg Barclays U.S. Aggregate Index represents the U.S. investment-gradefixed-rate bond market. |
12 | JP 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. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information.
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. The waivers and reimbursement will be in effect through at least May 1, 2021, unless modified or terminated by the series board. After that time, the investment adviser may elect to extend, modify or terminate the reimbursement. The waivers may only be modified or terminated with the approval of the series board. Applicable fund results shown reflect the waivers and reimbursement, 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 Fund.SM 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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information andmonth-end results, visit capitalgroup.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 rose 35.61% for the 12 months ended December 31, 2019, compared with a 26.60% increase for the MSCI ACWI (All Country World Index),1 a freefloat-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 generated the best returns in a decade, boosted by aggressive central bank stimulus measures and easing trade tensions toward the end of the year. U.S. stocks soared to near record highs in December as the U.S. and China agreed to a limited trade war truce with the aim of avoiding the imposition of new tariffs and other protectionist measures. Information technology stocks posted the highest returns with a gain of nearly 48% in aggregate. Outside the U.S., European stocks advanced despite signs of slowing economic growth, a near-recession in Germany and Brexit-related uncertainty in the U.K. that remained unresolved until the very last month of the year. Emerging markets stocks advanced, overcoming bouts of volatility tied to global trade tensions, China’s economic slowdown and a strong U.S. dollar.
The fund’s higher-than-index position relative to the top performing information technology sector as well as individual stock selection in that sector boosted the fund’s returns compared with the index. The fund’s relative weightings in ASML and TSMC benefitted the fund as both outpaced the wider market and were among the top contributors to the fund’s relative returns. Consumer discretionary stock Alibaba Group also helped the fund’s relative returns, as its returns outpaced the market.
The biggest drag on relative results was Apple — a stock the fund didn’t own — as it proved to be one of the strongest performers for the year.
On a geographic basis, stocks of companies domiciled in the Netherlands and Taiwan were additive to results, while stocks of companies based in the Philippines and Belgium lagged.
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 | 45.0 | %�� | ||
Other | 1.7 | |||
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| |||
46.7 | ||||
|
| |||
Europe | ||||
Netherlands | 7.6 | |||
United Kingdom | 6.6 | |||
France | 5.8 | |||
Switzerland | 4.0 | |||
Germany | 2.3 | |||
Russian Federation | 1.4 | |||
Denmark | 1.2 | % | ||
Sweden | 1.0 | |||
Other | 1.9 | |||
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| |||
31.8 | ||||
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|
Asia/Pacific Basin | ||||
China | 4.8 | |||
Taiwan | 4.7 | |||
Hong Kong | 3.0 | |||
Japan | 2.7 | |||
India | 1.9 | |||
Other | 2.2 | |||
|
| |||
19.3 | ||||
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Other regions | ||||
Other | .7 | % | ||
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| |||
Short-term securities & other assets less liabilities | 1.5 | |||
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Total | 100.0 | % | ||
|
|
Largest equity securities2 | Percent of net assets |
ASML | 5.06 | % | ||
Amazon | 4.72 | |||
TSMC | 4.71 | |||
Microsoft | 4.64 | |||
Alphabet | 3.67 |
Visa | 3.16 | % | ||
Alibaba Group | 2.68 | |||
Airbus | 2.36 | |||
Broadcom | 2.26 | |||
AIA Group | 2.04 |
4 American Funds Insurance Series
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Global Growth Fund
How a hypothetical $10,000 investment has grown
Total returns based on a $1,000 investment For periods ended December 31, 20193
1 year | 5 years | 10 years | Lifetime (since April 30, 1997) | Expense ratio | ||||||||||||||||
Class 1 | 35.61 | % | 12.01 | % | 11.40 | % | 10.21 | % | .57 | % | ||||||||||
Class 1A | 35.22 | 11.74 | 11.13 | 9.94 | .82 | |||||||||||||||
Class 2 | 35.28 | 11.72 | 11.12 | 9.94 | .82 | |||||||||||||||
Class 4 | 34.87 | 11.44 | 10.89 | 9.68 | 1.07 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are as of the fund’s prospectus dated May 1, 2020 (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 | The information shown does not include cash and cash equivalents, which includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
3 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of December 31, 2019 | 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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information andmonth-end results, visit capitalgroup.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 increased 31.84% for the 12 months ended December 31, 2019. Its benchmark, the MSCI All Country World Small Cap Index,1 a freefloat-adjusted market capitalization-weighted index designed to measure equity market results of smaller capitalization companies in both developed and emerging markets, gained 24.65%.
U.S. equities had their strongest annual gains since 2013, ending the year nearall-time highs. Stocks rose steadily, posting gains in 10 of 12 months. The U.S. trade war with China occasionally caused volatility, but the resilient U.S. economy and the Federal Reserve’s return to accommodative policies helped steer markets higher. Information technology companies posted the highest returns, with a gain of nearly 48% in aggregate. Outside the U.S., European stocks advanced despite signs of slowing economic growth, a near-recession in Germany and Brexit-related uncertainty in the U.K. that remained unresolved until the very last month of the year. Emerging markets stocks advanced, overcoming bouts of volatility tied to global trade tensions, China’s economic slowdown and a strong U.S. dollar.
Fund holdings in the information technology sector contributed the most to relative returns. Information technology stock Paycom widely outpaced the broader market and was among the fund’s top contributors over the period. However, the fund’s holdings of health care companies NuCana and Evolent Health detracted from returns.
While investments in U.S. companies were additive to returns, investments in companies domiciled in the U.K. detracted.
The fund’s portfolio managers continue to seek investment opportunities in undervalued companies that have the potential to change industries and benefit shareholders. They believe rigorousbottom-up research into each potential equity investment can help achieve this goal. The fund currently holds nearly 300 companies diversified across geographies and industries. As always, we maintain our commitment to investing for the long term.
Country diversification | Percent of net assets |
The Americas | ||||
United States | 42.9 | % | ||
Brazil | 3.9 | |||
Canada | 2.2 | |||
Other | .7 | |||
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49.7 | ||||
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Asia/Pacific Basin | ||||
India | 5.9 | |||
Japan | 5.4 | |||
China | 5.2 | |||
Hong Kong | 1.9 | |||
Philippines | 1.7 | |||
Australia | 1.4 | % | ||
Taiwan | 1.1 | |||
Other | .7 | |||
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23.3 | ||||
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Europe | ||||
United Kingdom | 6.7 | |||
Germany | 3.6 | |||
Italy | 3.1 | |||
Netherlands | 2.6 | |||
Sweden | 1.7 | |||
Switzerland | 1.4 | |||
Other | 3.5 | % | ||
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22.6 | ||||
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Other regions | ||||
Other | .3 | |||
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Short-term securities & other assets less liabilities | 4.1 | |||
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Total | 100.0 | % | ||
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Largest equity securities2 | Percent of net assets |
Insulet | 3.02 | % | ||
GW Pharmaceuticals | 1.86 | |||
Notre Dame Intermédica Participações | 1.55 | |||
Haemonetics | 1.54 | |||
Allakos | 1.41 |
CONMED | 1.41 | % | ||
frontdoor | 1.39 | |||
International Container Terminal Services | 1.32 | |||
Cannae Holdings | 1.31 | |||
Nihon M&A Center | 1.28 |
6 American Funds Insurance Series
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Global Small Capitalization Fund
How a hypothetical $10,000 investment has grown
Total returns based on a $1,000 investment For periods ended December 31, 20193
1 year | 5 years | 10 years | Lifetime (since April 30, 1998) | Expense ratio | ||||||||||||||||
Class 1 | 31.84 | % | 8.95 | % | 9.07 | % | 9.70 | % | .76 | % | ||||||||||
Class 1A | 31.56 | 8.70 | 8.81 | 9.43 | 1.01 | |||||||||||||||
Class 2 | 31.52 | 8.68 | 8.80 | 9.43 | 1.01 | |||||||||||||||
Class 4 | 31.24 | 8.41 | 8.54 | 9.16 | 1.26 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are as of the fund’s prospectus dated May 1, 2020 (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 | The information shown does not include cash and cash equivalents, which includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
3 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of December 31, 2019 | Percent of net assets |
American Funds Insurance Series 7
Table of Contents
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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information andmonth-end results, visit capitalgroup.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
Growth Fund gained 31.11% for the 12 months ended December 31, 2019, compared with a 31.49% increase 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 had their strongest annual gains since 2013, ending the year nearall-time highs. Stocks rose steadily, posting gains in 10 of 12 months. The U.S. trade war with China occasionally caused volatility, but the resilient U.S. economy and the Federal Reserve’s return to accommodative policies helped steer markets higher. Information technology companies posted the highest returns, with a gain of nearly 48% in aggregate. Outside the U.S., European stocks advanced despite signs of slowing economic growth, a near-recession in Germany and Brexit-related uncertainty in the U.K. that remained unresolved until the very last month of the year. Emerging markets stocks advanced, overcoming bouts of volatility tied to global trade tensions, China’s economic slowdown and a strong U.S. dollar.
Companies in the communication services sector contributed to relative results, led by Facebook, which was boosted by strong user and revenue growth. Investments in the consumer discretionary and health care sectors detracted from the fund’s relative results. The fund’s top detractor to relative returns was information technology company Apple. The fund had a significantly lower investment in Apple compared to the index and Apple proved to be one of the top performers for the year.
Although U.S. economic growth remained solid, the fund’s portfolio managers are keeping a close watch on near-term economic indicators, such as wage growth, monetary policy and trade relations. Portfolio managers continue to favor well-positioned, growth-oriented companies that are capable of generating free cash flow in myriad near-term economic environments and remain optimistic that our global research will help us identify attractive long-term investment opportunities.
Largest equity securities2 | Percent of net assets |
Microsoft | 5.80 | % | ||
5.46 | ||||
Netflix | 3.70 | |||
Amazon | 3.62 | |||
Alphabet | 3.33 |
UnitedHealth Group | 3.30 | % | ||
Tesla | 2.80 | |||
Broadcom | 2.70 | |||
ASML | 2.24 | |||
Intuitive Surgical | 2.18 |
8 American Funds Insurance Series
Table of Contents
Growth Fund
How a hypothetical $10,000 investment has grown
Total returns based on a $1,000 investment For periods ended December 31, 20193
1 year | 5 years | 10 years | Lifetime (since February 8, 1984) | Expense ratio | ||||||||||||||||
Class 1 | 31.11 | % | 14.67 | % | 14.27 | % | 12.92 | % | .36 | % | ||||||||||
Class 1A | 30.79 | 14.39 | 13.99 | 12.64 | .61 | |||||||||||||||
Class 2 | 30.77 | 14.38 | 13.98 | 12.64 | .61 | |||||||||||||||
Class 3 | 30.86 | 14.46 | 14.06 | 12.72 | .54 | |||||||||||||||
Class 4 | 30.44 | 14.10 | 13.72 | 12.37 | .86 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are as of the fund’s prospectus dated May 1, 2020 (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 | The information shown does not include cash and cash equivalents, which includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
3 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of December 31, 2019 | 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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information andmonth-end results, visit capitalgroup.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
International Fund gained 23.21% for the 12 months ended December 31, 2019. Its benchmark, the MSCI ACWI (All Country World Index) ex USA,1 a freefloat-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.), increased 21.51%.
Global stocks generated the best returns in a decade, boosted by aggressive central bank stimulus measures and easing trade tensions toward the end of the year. U.S. stocks soared to near record highs in December as the U.S. and China agreed to a limited trade war truce with the aim of avoiding the imposition of new tariffs and other protectionist measures. Information technology stocks posted the highest returns with a gain of nearly 48% in aggregate. Outside the U.S., European stocks advanced despite signs of slowing economic growth, a near-recession in Germany and Brexit-related uncertainty in the U.K. that remained unresolved until the very last month of the year. Emerging markets stocks advanced, overcoming bouts of volatility tied to global trade tensions, China’s economic slowdown and a strong U.S. dollar.
Investments in the communication services and financials sectors boosted relative returns with Amsterdam-based Altice Europe among the top contributors thanks to better than expected growth. One of the biggest detractors to relative returns was health-care sector stock Teva Pharmaceutical, whose stock price suffered amid continued opioid litigation.
The fund’s portfolio managers continue to monitor volatility and potential headwinds brought about by political and trade uncertainty. Given how late it may be in the current bull market, they seek opportunities in particular within those regions, countries and sectors less affected by these global headlines. Their focus on a company’s fundamental growth drivers and intrinsic worth is critical to helping them identify investments that they believe represent the best value over the long term.
Country diversification | Percent of net assets |
Asia/Pacific Basin | ||||
Japan | 16.2 | % | ||
China | 12.1 | |||
India | 8.7 | |||
Hong Kong | 7.2 | |||
South Korea | 2.8 | |||
Australia | 1.3 | |||
Taiwan | 1.1 | |||
Philippines | 1.0 | |||
Other | 1.2 | |||
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| |||
51.6 | ||||
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| |||
Europe | ||||
France | 9.5 | |||
United Kingdom | 6.7 | |||
Switzerland | 5.1 | |||
Germany | 4.4 | % | ||
Netherlands | 3.5 | |||
Spain | 2.6 | |||
Other | 2.1 | |||
|
| |||
33.9 | ||||
|
|
The Americas | ||||
Brazil | 4.0 | |||
Canada | 2.1 | |||
United States | 1.5 | |||
Other | .4 | |||
|
| |||
8.0 | ||||
|
| |||
Other regions | ||||
Other | 1.2 | % | ||
|
| |||
Short-term securities & other assets less liabilities | 5.3 | |||
|
| |||
Total | 100.0 | % | ||
|
|
Largest equity securities | Percent of net assets |
AIA Group | 4.28 | % | ||
Airbus Group | 3.97 | |||
Alibaba Group Holding | 3.44 | |||
HDFC Bank | 3.36 | |||
Novartis | 2.47 |
Vale | 2.03 | % | ||
ASML | 2.02 | |||
Kotak Mahindra Bank | 1.90 | |||
Grifols | 1.81 | |||
SoftBank | 1.80 |
10 American Funds Insurance Series
Table of Contents
International Fund
How a hypothetical $10,000 investment has grown
Total returns based on a $1,000 investment For periods ended December 31, 20193
1 year | 5 years | 10 years | Lifetime (since May 1, 1990) | Expense ratio | ||||||||||||||||
Class 1 | 23.21 | % | 7.14 | % | 6.29 | % | 8.21 | % | .55 | % | ||||||||||
Class 1A | 22.90 | 6.89 | 6.04 | 7.94 | .80 | |||||||||||||||
Class 2 | 22.88 | 6.87 | 6.03 | 7.94 | .80 | |||||||||||||||
Class 3 | 23.05 | 6.95 | 6.10 | 8.02 | .73 | |||||||||||||||
Class 4 | 22.67 | 6.61 | 5.79 | 7.68 | 1.05 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are as of the fund’s prospectus dated May 1, 2020 (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 | The information shown does not include cash and cash equivalents, which includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
3 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of December 31, 2019 | 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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information andmonth-end results, visit capitalgroup.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 up 29.47% for the 12 months ended December 31, 2019. Its benchmark index, the MSCI ACWI (All Country World Index),1 a freefloat-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), was up 26.60%. The MSCI Emerging Markets (EM) Index,1 a freefloat-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), increased by 18.42%.
Global stocks generated the best returns in a decade, boosted by aggressive central bank stimulus measures and easing trade tensions toward the end of the year. U.S. stocks soared to near record highs in December as the U.S. and China agreed to a limited trade war truce with the aim of avoiding the imposition of new tariffs and other protectionist measures. Technology stocks posted the highest returns with a gain of nearly 48% in aggregate. Outside the U.S., European stocks advanced despite signs of slowing economic growth, a near-recession in Germany and Brexit-related uncertainty in the U.K. that remained unresolved until the very last month of the year. Emerging markets stocks advanced, overcoming bouts of volatility tied to global trade tensions, China’s economic slowdown and a strong U.S. dollar.
The fund’s relative returns outpaced emerging markets in general. Investments in the information technology and financial sectors were beneficial to the fund. Payment processing company PagSeguro contributed to relative returns as its stock price rose on the back of strong revenue growth. Among detractors, the fund’s lower investment in Apple compared with the MSCI ACWI hurt relative results as it outpaced the overall market.
The fund’s portfolio managers continue to pursue abottom-up approach to investing and search for undervalued companies with solid foundations around the world, as well as stocks that are domestically focused and more insulated from geopolitical events given increased volatility at this point in the market cycle.
Country diversification | Percent of net assets |
Asia/Pacific Basin | ||||
India | 13.4 | % | ||
China | 8.6 | |||
Taiwan | 4.0 | |||
Japan | 3.8 | |||
Hong Kong | 2.8 | |||
Australia | 2.1 | |||
Other | 2.4 | |||
|
| |||
37.1 | ||||
|
| |||
The Americas | ||||
United States | 22.6 | |||
Brazil | 12.4 | |||
Canada | 1.0 | % | ||
Other | 1.0 | |||
|
| |||
37.0 | ||||
|
|
Europe | ||||
United Kingdom | 4.0 | |||
France | 2.8 | |||
Russian Federation | 2.5 | |||
Germany | 2.2 | |||
Switzerland | 2.1 | |||
Other | 3.8 | |||
|
| |||
17.4 | ||||
|
| |||
Other regions | ||||
Other | 2.0 | % | ||
|
| |||
Short-term securities & other assets less liabilities | 6.5 | |||
|
| |||
Total | 100.0 | % | ||
|
| |||
Largest equity securities2 | Percent of net assets |
Reliance Industries | 6.52 | % | ||
TSMC | 3.16 | |||
PagSeguro | 2.65 | |||
Microsoft | 2.26 | |||
HDFC Bank | 2.09 |
StoneCo | 1.89 | % | ||
Kotak Mahindra Bank | 1.85 | |||
Vale | 1.71 | |||
B3 | 1.59 | |||
Kweichow Moutai | 1.51 |
12 American Funds Insurance Series
Table of Contents
New World Fund
How a hypothetical $10,000 investment has grown
Total returns based on a $1,000 investment For periods ended December 31, 20193
1 year | 5 years | 10 years | Lifetime (since June 17, 1999) | Gross expense ratio | Net expense ratio | |||||||||||||||||||
Class 1 | 29.47 | % | 8.20 | % | 6.30 | % | 8.49 | % | .77 | % | .59 | % | ||||||||||||
Class 1A | 29.11 | 7.93 | 6.04 | 8.22 | 1.02 | .84 | ||||||||||||||||||
Class 2 | 29.15 | 7.94 | 6.03 | 8.22 | 1.02 | .84 | ||||||||||||||||||
Class 4 | 28.82 | 7.67 | 5.78 | 7.95 | 1.27 | 1.09 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The investment adviser intends to waive a portion of its management fees beginning May 1, 2020. This waiver will be in effect through at least May 1, 2021. The waiver may only be modified or terminated with the approval of the fund’s board. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are as of the fund’s prospectus dated May 1, 2020 (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. Results for MSCI indexes reflect dividends net of withholding taxes and reinvestment of distributions. |
2 | The information shown does not include cash and cash equivalents, which includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
3 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of December 31, 2019 | 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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information andmonth-end results, visit capitalgroup.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 gained 21.66% for the 12 months ended December 31, 2019, trailing the 31.49% rise 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 had their strongest annual gains since 2013, ending the year nearall-time highs. Stocks rose steadily, posting gains in 10 of 12 months. The U.S. trade war with China occasionally caused volatility, but the resilient U.S. economy and the Federal Reserve’s return to accommodative policies helped steer markets higher. Information technology companies posted the highest returns, with a gain of nearly 48% in aggregate. Outside the U.S., European stocks advanced despite signs of slowing economic growth, a near-recession in Germany and Brexit-related uncertainty in the U.K. that remained unresolved until the very last month of the year. Emerging markets stocks advanced, overcoming bouts of volatility tied to global trade tensions, China’s economic slowdown and a strong U.S. dollar.
Certain investments in health care helped the fund’s results relative to the index. Among the fund’s top contributors to relative returns within health care was UnitedHealth Group, as it consistently surpassed earnings estimates each quarter throughout the year. Another top contributor was QUALCOMM, where an improved relationship with Apple and the prospect of a 5G wireless network bolstered both earnings prospects and the company’s valuation.
Other holdings in the health care sector hindered relative returns. Investments in pharmaceutical companies, such as AbbVie and Teva Pharmaceutical, hurt results relative to the index. Overall, this proved to be a relatively disappointing year for the fund, but we continue to believe the focus on dividend-paying stocks will pay off over the long term.
Nearer term, the fund’s portfolio managers are aware that the market is keeping a close watch on U.S. monetary policy, our trade relationships and the current shape of the yield curve and their implications on the U.S. economy. Portfolio managers continue to favor well-managed, high-quality companies that are capable of paying dividends in myriad economic environments. We remain optimistic that this focus, supported by our global research, will help us to identify attractive long-term investment opportunities.
Largest equity securities2 | Percent of net assets |
Abbott Laboratories | 4.93 | % | ||
Microsoft | 4.19 | |||
Exxon Mobil | 3.67 | |||
UnitedHealth Group | 3.60 | |||
AbbVie | 3.44 |
Amgen | 3.10 | % | ||
2.96 | ||||
EOG Resources | 2.90 | |||
CSX | 2.83 | |||
Philip Morris International | 2.75 |
14 American Funds Insurance Series
Table of Contents
Blue Chip Income and Growth Fund
How a hypothetical $10,000 investment has grown
Total returns based on a $1,000 investment For periods ended December 31, 20194
1 year | 5 years | 10 years | Lifetime (since July 5, 2001) | Expense ratio | ||||||||||||||||
Class 1 | 21.66 | % | 8.63 | % | 11.54 | % | 6.71 | % | .43 | % | ||||||||||
Class 1A | 21.35 | 8.38 | 11.27 | 6.44 | .68 | |||||||||||||||
Class 2 | 21.38 | 8.38 | 11.27 | 6.44 | .68 | |||||||||||||||
Class 4 | 21.03 | 8.09 | 11.04 | 6.20 | .93 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are as of the fund’s prospectus dated May 1, 2020 (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 | The information shown does not include cash and cash equivalents, which includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
3 | Source: Refinitiv Lipper. Lipper averages reflect the current composition of all eligible mutual funds (all share classes) within a given category. Lipper categories are dynamic and averages may have few funds, especially over longer periods. To see the number of funds included in the Lipper category for each fund’s lifetime, please see the Quarterly Statistical Update, available on our website. |
4 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of December 31, 2019 | 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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information andmonth-end results, visit capitalgroup.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 advanced 31.39% for the 12 months ended December 31, 2019, compared with a 26.60% increase in its benchmark index, MSCI ACWI (All Country World Index),1a freefloat-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 generated the best returns in a decade, boosted by aggressive central bank stimulus measures and easing trade tensions toward the end of the year. U.S. stocks soared to near record highs in December as the U.S. and China agreed to a limited trade war truce with the aim of avoiding the imposition of new tariffs and other protectionist measures. Technology stocks posted the highest returns with a gain of nearly 48% in aggregate. Outside the U.S., European stocks advanced despite signs of slowing economic growth, a near-recession in Germany and Brexit-related uncertainty in the U.K. that remained unresolved until the very last month of the year. Emerging markets stocks advanced, overcoming bouts of volatility tied to global trade tensions, China’s economic slowdown and a strong U.S. dollar.
The fund’s relative performance benefited from specific stock selection, particularly within the industrials and energy sectors. Industrial company Airbus rallied on positive tail winds from strong global demand, and likely benefited from Boeing’s troubles with its 737MAX. On the downside, some investments in the materials sector hindered relative returns. In particular, Brazil’s Vale was a top relative detractor.
On a country basis, holdings in Japan and France contributed the most to relative returns, and holdings in the U.S. and Canada were a drag on returns (the former due to a lower-than-index position).
The fund’s portfolio managers recognize that we are experiencing a slowdown in global economic growth. With dovish monetary strategy back under consideration in the U.S. and Europe, the fund’s managers remain cautiously optimistic about the prospects for the global economy and are monitoring the potential impact on global growth. Portfolio managers continue to invest based on abottom-up approach to long-term investing and believe they can uncover promising companies with strong positions in their industries, sustainable growth and income opportunities globally – including emerging markets.
Country diversification | Percent of net assets |
The Americas | ||||
United States | 35.5 | % | ||
Brazil | 6.9 | |||
Canada | 2.0 | |||
Other | .2 | |||
|
| |||
44.6 | ||||
|
| |||
Europe | ||||
France | 7.1 | |||
Germany | 4.8 | |||
United Kingdom | 4.3 | |||
Switzerland | 2.7 | |||
Russian Federation | 2.6 | |||
Netherlands | 2.1 | |||
Denmark | 1.7 | |||
Italy | 1.4 | % | ||
Ireland | 1.2 | |||
Other | 1.7 | |||
|
| |||
29.6 | ||||
|
|
Asia/Pacific Basin | ||||
Japan | 6.9 | |||
Taiwan | 4.5 | |||
India | 4.0 | |||
Australia | 3.5 | |||
China | 1.9 | |||
Hong Kong | 1.5 | |||
Other | 1.9 | |||
|
| |||
24.2 | ||||
|
| |||
Other regions | ||||
Other | .2 | % | ||
|
| |||
Short-term securities & other assets less liabilities | 1.4 | |||
|
| |||
Total | 100.0 | % | ||
|
|
Largest equity securities | Percent of net assets |
TSMC | 4.48 | % | ||
Nintendo | 4.45 | |||
Airbus Group | 4.28 | |||
Reliance Industries | 2.70 | |||
Microsoft | 2.07 |
E.ON | 1.82 | % | ||
Alphabet | 1.81 | |||
PagSeguro | 1.80 | |||
Broadcom | 1.79 | |||
CCR | 1.69 |
16 American Funds Insurance Series
Table of Contents
Global Growth and Income Fund
How a hypothetical $10,000 investment has grown
Total returns based on a $1,000 investment For periods ended December 31, 20193
1 year | 5 years | 10 years | Lifetime (since May 1, 2006) | Expense ratio | ||||||||||||||||
Class 1 | 31.39 | % | 9.88 | % | 10.13 | % | 7.56 | % | .66 | % | ||||||||||
Class 1A | 31.04 | 9.64 | 9.87 | 7.30 | .91 | |||||||||||||||
Class 2 | 31.14 | 9.61 | 9.86 | 7.29 | .91 | |||||||||||||||
Class 4 | 30.73 | 9.32 | 9.60 | 7.04 | 1.16 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are as of the fund’s prospectus dated May 1, 2020 (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 | The information shown does not include cash and cash equivalents, which includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
3 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of December 31, 2019 | 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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information andmonth-end results, visit capitalgroup.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 gained 26.46% for the 12 months ended December 31, 2019. Standard & Poor’s 500 Composite Index,1 a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, rose 31.49%.
U.S. equities had their strongest annual gains since 2013, ending the year nearall-time highs. Stocks rose steadily, posting gains in 10 of 12 months. The U.S. trade war with China occasionally caused volatility, but the resilient U.S. economy and the Federal Reserve’s return to accommodative policies helped steer markets higher. Information technology companies posted the highest returns, with a gain of nearly 48% in aggregate. Outside the U.S., European stocks advanced despite signs of slowing economic growth, a near-recession in Germany and Brexit-related uncertainty in the U.K. that remained unresolved until the very last month of the year. Emerging markets stocks advanced, overcoming bouts of volatility tied to global trade tensions, China’s economic slowdown and a strong U.S. dollar.
Regarding the fund, investments in the industrials sector contributed the most to the fund’s relative returns. Among industrials, aircraft component manufacturer TransDigm Group added the most to the fund’s relative results. On the downside, the fund’s lower-than-index position in information technology stocks, a sector that performed strongly over the period, weighed on relative returns. In particular, the fund’s lower-than-index investment in Apple hindered sector results the most as Apple shares outperformed the broader market over the period.
The fund’s portfolio managers continue to look for compelling investment opportunities, buying stocks they believe represent the best value over the long term.
Largest equity securities2 | Percent of net assets |
Microsoft | 4.14 | % | ||
3.89 | ||||
UnitedHealth Group | 2.56 | |||
Netflix | 2.11 | |||
Alphabet | 2.02 |
Broadcom | 2.00 | % | ||
Abbott Laboratories | 1.64 | |||
JPMorgan Chase | 1.55 | |||
Amazon | 1.52 | |||
Amgen | 1.34 |
18 American Funds Insurance Series
Table of Contents
Growth-Income Fund
How a hypothetical $10,000 investment has grown
Total returns based on a $1,000 investment For periods ended December 31, 20193
1 year | 5 years | 10 years | Lifetime (since February 8, 1984) | Expense ratio | ||||||||||||||||
Class 1 | 26.46 | % | 11.68 | % | 12.81 | % | 11.46 | % | .30 | % | ||||||||||
Class 1A | 26.14 | 11.42 | 12.54 | 11.18 | .55 | |||||||||||||||
Class 2 | 26.14 | 11.40 | 12.53 | 11.18 | .55 | |||||||||||||||
Class 3 | 26.24 | 11.48 | 12.61 | 11.26 | .48 | |||||||||||||||
Class 4 | 25.86 | 11.12 | 12.26 | 10.91 | .80 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are as of the fund’s prospectus dated May 1, 2020 (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 | The information shown does not include cash and cash equivalents, which includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
3 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of December 31, 2019 | 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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information andmonth-end results, visit capitalgroup.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 gained 23.06% for the 12 months ended December 31, 2019, compared to the 21.51% increase in its benchmark index, the MSCI ACWI (All Country World Index) ex USA,1 a freefloat-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 generated the best returns in a decade, boosted by aggressive central bank stimulus measures and easing trade tensions toward the end of the year. U.S. stocks soared to near record highs in December as the U.S. and China agreed to a limited trade war truce with the aim of avoiding the imposition of new tariffs and other protectionist measures. Technology stocks posted the highest returns with a gain of nearly 48% in aggregate. Outside the U.S., European stocks advanced despite signs of slowing economic growth, a near-recession in Germany and Brexit-related uncertainty in the U.K. that remained unresolved until the very last month of the year. Emerging markets stocks advanced, overcoming bouts of volatility tied to global trade tensions, China’s economic slowdown and a strong U.S. dollar.
The top contributors to the fund’s relative returns were the consumer discretionary and utilities sectors due in part to good stock selection. Luckin Coffee was the top contributor to the fund’s relative returns as it benefited from strong growth in the Chinese retail coffee market. Health care stock Daiichi Sankyo also contributed strong relative returns.
On the downside, investments in the energy and real estate sectors detracted from the fund’s relative returns. Among energy stocks, Royal Dutch Shell was one of the fund’s biggest drags on returns as a result of lower oil prices and market volatility.
The fund’s portfolio managers follow signs of some economic weakness in Europe and parts of emerging markets, as well as a number of geopolitical uncertainties, with an aim to preserve value in any potential market correction while being in a position to take advantage of buying opportunities, should they present themselves later in the year.
Country diversification | Percent of net assets |
Europe | ||||
United Kingdom | 12.1 | % | ||
France | 9.5 | |||
Switzerland | 5.9 | |||
Germany | 3.5 | |||
Netherlands | 3.0 | |||
Spain | 3.0 | |||
Russian Federation | 2.5 | |||
Sweden | 1.1 | |||
Other | 1.9 | |||
|
| |||
42.5 | ||||
|
| |||
Asia/Pacific Basin | ||||
Japan | 14.0 | |||
China | 9.7 | |||
Hong Kong | 6.5 | |||
India | 3.6 | |||
Singapore | 2.3 | % | ||
Taiwan | 2.1 | |||
South Korea | 1.0 | |||
Other | 2.5 | |||
|
| |||
41.7 | ||||
|
|
The Americas | ||||
Brazil | 3.3 | |||
Canada | 1.6 | |||
Mexico | .3 | |||
|
| |||
5.2 | ||||
|
| |||
Other regions | ||||
Turkey | 1.8 | |||
Israel | .4 | |||
|
| |||
2.2 | ||||
|
| |||
Short-term securities & other assets less liabilities | 8.4 | % | ||
|
| |||
Total | 100.0 | % | ||
|
| |||
Largest equity securities | Percent of net assets |
Royal Dutch Shell | 4.53 | % | ||
Novartis | 3.18 | |||
HDFC Bank | 2.92 | |||
Rio Tinto | 2.61 | |||
Luckin Coffee | 2.59 |
Zurich | 2.52 | % | ||
E.ON | 2.49 | |||
Daiichi Sankyo | 2.47 | |||
Airbus Group | 2.11 | |||
Sun Hung Kai Properties | 2.11 |
20 American Funds Insurance Series
Table of Contents
International Growth and Income Fund
How a hypothetical $10,000 investment has grown
Total returns based on a $1,000 investment For periods ended December 31, 20193
1 year | 5 years | 10 years | Lifetime (since November 18, 2008) | Expense ratio | ||||||||||||||||
Class 1 | 23.06 | % | 5.73 | % | 5.79 | % | 9.32 | % | .67 | % | ||||||||||
Class 1A | 22.76 | 5.49 | 5.53 | 9.06 | .92 | |||||||||||||||
Class 2 | 22.76 | 5.46 | 5.52 | 9.04 | .92 | |||||||||||||||
Class 4 | 22.47 | 5.20 | 5.30 | 8.81 | 1.17 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are as of the fund’s prospectus dated May 1, 2020 (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 | The information shown does not include cash and cash equivalents, which includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
3 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of December 31, 2019 | 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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information andmonth-end results, visit capitalgroup.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, which invests in a mix of stocks and bonds, gained 18.16% for the 12 months ended December 31, 2019. During the same period, the MSCI ACWI (All Country World Index)1, freefloat-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), gained 26.60%. The Bloomberg Barclays U.S. Aggregate Index2, which represents the U.S. investment-grade (rated BBB/ Baa and above)fixed-rate bond market, gained 8.72%. The index blend of 70%/30% MSCI ACWI/Bloomberg Barclays U.S. Aggregate Index3gained 21.21%. The Lipper Global Equity Income Funds Average4, a measure of similar funds, was up 21.01%.
U.S. equities had their strongest annual gains since 2013, ending the year nearall-time highs. Stocks rose steadily, posting gains in 10 of 12 months. The U.S. trade war with China occasionally caused volatility, but the resilient U.S. economy and the Federal Reserve’s return to accommodative policies helped steer markets higher. Information technology companies posted the highest returns, with a gain of nearly 48% in aggregate. Outside the U.S., European stocks advanced despite signs of slowing economic growth, a near-recession in Germany and Brexit-related uncertainty in the U.K. that remained unresolved until the very last month of the year. Emerging markets stocks advanced, overcoming bouts of volatility tied to global trade tensions, China’s economic slowdown and a strong U.S. dollar.
In the equity portfolio, the top contributors in relative terms were the utilities and consumer discretionary sectors. American Tower added the most to the fund’s relative returns as it notched higher returns than the general market.
On the downside, the information technology sector, which comprised the second-largest share of the fund’s equity holdings, detracted from returns. The fund’s top detractor to relative returns was information technology company Apple. The fund had a significantly lower investment in Apple compared to the index and Apple proved to be one of the top performers for the year. The fund’s fixed income portfolio was a drag on relative results.
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 | 52.8 | % | ||
Canada | 2.5 | |||
|
| |||
55.3 | ||||
|
| |||
Europe | ||||
United Kingdom | 12.4 | |||
France | 3.3 | |||
Switzerland | 2.9 | |||
Italy | 1.6 | |||
Sweden | 1.2 | |||
Denmark | 1.1 | |||
Netherlands | 1.0 | % | ||
Other | 1.4 | |||
|
| |||
24.9 | ||||
|
|
Asia/Pacific Basin | ||||
Hong Kong | 4.0 | |||
Taiwan | 2.6 | |||
Japan | 2.3 | |||
China | 1.6 | |||
Other | .8 | |||
|
| |||
11.3 | ||||
|
| |||
Short-term securities & other assets less liabilities | 8.5 | % | ||
|
| |||
Total | 100.0 | % | ||
|
|
22 American Funds Insurance Series
Table of Contents
Capital Income Builder
How a hypothetical $10,000 investment has grown
Total returns based on a $1,000 investment For periods ended December 31, 20195
Lifetime | Gross | Net | ||||||||||||||||||
1 year | 5 years | (since May 1, 2014) | expense ratio | expense ratio | ||||||||||||||||
Class 1 | 18.16 | % | 5.13 | % | 4.53 | % | .54 | % | .28 | % | ||||||||||
Class 1A | 17.90 | 4.87 | 4.28 | .79 | .53 | |||||||||||||||
Class 2 | 17.89 | 4.94 | 4.37 | .79 | .53 | |||||||||||||||
Class 4 | 17.62 | 4.61 | 4.01 | 1.04 | .78 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The investment adviser intends to waive a portion of its management fees beginning May 1, 2020. This waiver will be in effect through at least May 1, 2021. The waiver may only be modified or terminated with the approval of the fund’s board. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are as of the fund’s prospectus dated May 1, 2020 (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: Refinitiv Lipper. Lipper averages reflect the current composition of all eligible mutual funds (all share classes) within a given category. Lipper categories are dynamic and averages may have few funds, especially over longer periods. To see the number of funds included in the Lipper category for each fund’s lifetime, please see the Quarterly Statistical Update, available on our website. |
5 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of December 31, 2019 | 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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information andmonth-end results, visit capitalgroup.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, gained 21.54% for the 12 months ended December 31, 2019. Standard & Poor’s 500 Composite Index1, a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, was up 31.49% over the same period, while the Bloomberg Barclays U.S. Aggregate Index2, which represents the U.S. investment-grade (rated BBB/Baa and above)fixed-rate bond market, returned 8.72%. A blend of the two indexes, the 60%/40% S&P 500 Index/Bloomberg Barclays U.S. Aggregate Index3, gained 22.18%. Effective May 1, 2020, the fund has elected to use the 60%/40% S&P 500 Index/Bloomberg Barclays U.S. Aggregate Index as its primary benchmark, because it comes closest to reflecting its investment universe and best measures its long-term results and portfolio managers’ success over time.
U.S. equities had their strongest annual gains since 2013, ending the year nearall-time highs. Stocks rose steadily, posting gains in 10 of 12 months. The U.S. trade war with China occasionally caused volatility, but the resilient U.S. economy and the Federal Reserve’s return to accommodative policies helped steer markets higher. Information technology companies posted the highest returns, with a gain of nearly 48% in aggregate. Outside the U.S., European stocks advanced despite signs of slowing economic growth, a near-recession in Germany and Brexit-related uncertainty in the U.K. that remained unresolved until the very last month of the year. Emerging markets stocks advanced, overcoming bouts of volatility tied to global trade tensions, China’s economic slowdown and a strong U.S. dollar.
Investments in the financials sector – one of the fund’s largest sector holdings – contributed to the fund’s relative returns. Within financials, Arch Capital Group, Berkshire Hathaway and Apollo boosted results, as all three companies had at least double-digit returns that outpaced the general market. On the downside, health care stock AbbVie detracted from relative returns as its best-selling drug Humira faced generic competition. The fund’s fixed income investments somewhat detracted from relative returns due to duration positioning and security selection.
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 securities4 | Percent of net assets |
Microsoft | 3.96 | % | ||
Broadcom | 2.42 | |||
UnitedHealth Group | 2.16 | |||
ASML | 2.09 | |||
Philip Morris International | 1.94 |
Northrop Grumman | 1.82 | % | ||
Johnson & Johnson | 1.70 | |||
Humana | 1.69 | |||
Boeing | 1.68 | |||
Charter Communications | 1.67 |
24 American Funds Insurance Series
Table of Contents
Asset Allocation Fund
How a hypothetical $10,000 investment has grown
Total returns based on a $1,000 investment For periods ended December 31, 20195
1 year | 5 years | 10 years | Lifetime (since August 1, 1989) | Expense ratio | ||||||||||||||||
Class 1 | 21.54 | % | 8.59 | % | 10.19 | % | 8.63 | % | .31 | % | ||||||||||
Class 1A | 21.19 | 8.33 | 9.92 | 8.36 | .56 | |||||||||||||||
Class 2 | 21.23 | 8.32 | 9.92 | 8.36 | .56 | |||||||||||||||
Class 3 | 21.30 | 8.40 | 10.00 | 8.44 | .49 | |||||||||||||||
Class 4 | 20.92 | 8.05 | 9.69 | 8.11 | .81 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are as of the fund’s prospectus dated May 1, 2020 (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 | Sources: Bloomberg Index Services Ltd. and S&P Dow Jones Indices LLC. Blends the S&P 500 with the Bloomberg Barclays U.S. Aggregate Index by weighting their total returns at 60% and 40%, respectively. Results assume the blend is rebalanced monthly. |
4 | The information shown does not include cash and cash equivalents, which includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
5 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of December 31, 2019 | 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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information andmonth-end results, visit capitalgroup.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 gained 20.79% for the 12 months ended December 31, 2019. The MSCI ACWI (All Country World Index),1 a freefloat-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), increased by 26.60%, while the Bloomberg Barclays Global Aggregate Index,2 a measure of global investment-grade bonds (rated BBB/Baa and above), increased 6.84%. The 60%/40% MSCI ACWI/Bloomberg Barclays Global Aggregate Index,3 a blend of the two indexes, gained 18.55%.
Global stocks generated the best returns in a decade, boosted by aggressive central bank stimulus measures and easing trade tensions toward the end of the year. U.S. stocks soared near record highs in December as the U.S. and China agreed to a limited trade war truce. Outside the U.S., European stocks advanced despite signs of slowing economic growth, a near-recession in Germany and Brexit-related uncertainty in the U.K. that remained unresolved until the very last month of the year. Emerging markets stocks advanced, overcoming bouts of volatility tied to global trade tensions.
The fund’s higher-than-index position relative to the top performing information technology sector as well as individual stock selection in that sector boosted the fund’s returns compared with the index. The fund’s fixed income investments also helped relative returns. On the downside, investments in tobacco company Altria detracted from the fund’s relative returns as its share price dipped lower than the broader market.
The fund’s portfolio managers exercise caution and continue to monitor cross-border trade discussions that could lead to further tensions on the one hand and central bank activity on the other, which could result in lower rates. Rate reductions could help mitigate some of the negative economic impacts of a reduction in global trade. Portfolio managers continue to stay the course of focusing on global research andstock-by-stock,bottom-up analysis.
Percent of net assets | Percent of net assets |
Largest sectors in common stock holdings | ||||
Information technology | 13.8 | % | ||
Health care | 11.0 | |||
Financials | 9.5 | |||
Consumer staples | 9.0 | |||
Industrials | 7.4 |
Largest fixed income holdings (by issuer)4 | ||||
U.S. Treasury | 11.7 | % | ||
Japanese Government | 4.0 | |||
Fannie Mae | .8 | |||
Italian Government | .8 | |||
Greek Government | .7 |
Currency diversification | Percent of net assets |
Equity securities | Bonds & notes | Forward currency contracts | Short-term securities & other assets less liabilities | Total | ||||||||||||||||
U.S. dollars | 32.6 | % | 18.5 | % | (1.0 | )% | 3.2 | % | 53.3 | % | ||||||||||
Euros | 8.6 | 3.8 | 1.4 | — | 13.8 | |||||||||||||||
British pounds | 7.3 | .3 | .8 | .1 | 8.5 | |||||||||||||||
Japanese yen | 2.8 | 4.4 | — | — | 7.2 | |||||||||||||||
Swiss francs | 4.4 | — | — | — | 4.4 | |||||||||||||||
New Taiwan dollars | 2.2 | — | — | — | 2.2 | |||||||||||||||
Hong Kong dollars | 2.0 | — | — | — | 2.0 | |||||||||||||||
Danish krone | 1.3 | .2 | — | — | 1.5 | |||||||||||||||
Canadian dollars | .6 | .3 | — | .3 | 1.2 | |||||||||||||||
Brazilian Real | 1.1 | .2 | (.2 | ) | — | 1.1 | ||||||||||||||
Other currencies | 1.3 | 4.5 | (1.0 | ) | — | 4.8 | ||||||||||||||
|
| |||||||||||||||||||
100.0 | % | |||||||||||||||||||
|
|
Largest equity securities4 | Percent of net assets |
Merck | 2.42 | % | ||||||
ASML | 2.35 | |||||||
AstraZeneca | 2.34 | |||||||
TSMC | 2.18 | |||||||
Broadcom | 1.94 |
Microsoft | 1.79 | % | ||
Nestlé | 1.59 | |||
British American Tobacco | 1.52 | |||
Altria | 1.40 | |||
JPMorgan Chase | 1.40 |
26 American Funds Insurance Series
Table of Contents
Global Balanced Fund
How a hypothetical $10,000 investment has grown
Total returns based on a $1,000 investment For periods ended December 31, 20195
1 year | 5 years | Lifetime (since May 2, 2011) | Expense ratio | |||||||||||||
Class 1 | 20.79 | % | 7.25 | % | 6.49 | % | .73 | % | ||||||||
Class 1A | 20.54 | 7.02 | 6.24 | .98 | ||||||||||||
Class 2 | 20.44 | 6.97 | 6.21 | .98 | ||||||||||||
Class 4 | 20.21 | 6.76 | 6.09 | 1.23 |
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, 2020 (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 results reflect 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/Bloomberg 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. |
4 | The information shown includes affiliates of the same issuer when applicable. It does not include cash and cash equivalents or shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
5 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of December 31, 2019 | 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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information andmonth-end results, visit capitalgroup.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
Bond Fund gained 9.70% for the 12 months ended December 31, 2019. In comparison, the fund’s benchmark, the Bloomberg Barclays U.S. Aggregate Index1, which represents the U.S. investment-grade (rated BBB/Baa and above)fixed-rate bond market, returned 8.72%.
The Federal Reserve began the year by pausing its rate hike campaign in response to market turbulence at the end of 2018. It then began to cut the federal funds rate over the summer. It reduced the rate three times to end the year with the target in a range of1.50%-1.75%.
Security selection within agency mortgage backed pass-through securities was the primary detractor from relative results over the period. On the positive side, the fund benefitted from active duration management as interest rates declined over the period. Sector selection was also a positive factor asout-of-benchmark investments in Treasury Inflation Protected Securities (TIPS), investment grade corporate bonds, high yield, and emerging markets all helped results.
With the current economic expansion now more than 10 years old, it is the longest in thepost-war period. While we expect the expansion to continue in 2020, late cycle economies may be susceptible to risks or idiosyncratic problems throwing them off balance. For that reason, we feel strongly that a core bond fund like Bond Fund should remain conservatively positioned with a long-term focus. Managers remain committed to pursuing all four roles of fixed income: income, diversification from equities, capital preservation and inflation protection. We aim to manage a fund that will help to provide stability for your portfolio in any market environment.
Largest holdings (by issuer)2 | Percent of net assets |
U.S. Treasury | 28.74 | % | ||
Fannie Mae | 14.84 | |||
Freddie Mac | 10.61 | |||
Ginnie Mae | 3.84 | |||
UMBS | 2.73 |
Teva Pharmaceutical | 1.92 | % | ||
State of Illinois | 1.52 | |||
Broadcom | 1.31 | |||
Southern California Edison | 1.02 | |||
Japanese Government | 1.02 |
28 American Funds Insurance Series
Table of Contents
Bond Fund
How a hypothetical $10,000 investment has grown
Total returns based on a $1,000 investment For periods ended December 31, 20193
1 year | 5 years | 10 years | Lifetime (since January 2, 1996) | Expense ratio | ||||||||||||||||
Class 1 | 9.70 | % | 3.31 | % | 3.87 | % | 4.72 | % | .40 | % | ||||||||||
Class 1A | 9.36 | 3.06 | 3.62 | 4.46 | .65 | |||||||||||||||
Class 2 | 9.36 | 3.05 | 3.60 | 4.46 | .65 | |||||||||||||||
Class 4 | 9.08 | 2.78 | 3.36 | 4.21 | .90 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are as of the fund’s prospectus dated May 1, 2020 (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 | The information shown includes affiliates of the same issuer when applicable. It does not include cash and cash equivalents or shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
3 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of December 31, 2019 | 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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information andmonth-end results, visit capitalgroup.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 gained 8.08% for the 12 months ended December 31, 2019. This outpaced the fund’s benchmark, the Bloomberg Barclays Global Aggregate Index1, which measures global investment-grade bonds (rated BBB/Baa and above) and increased 6.84%.
Government bonds advanced as central banks around the world cut interest rates in an attempt to blunt the negative effects of a trade war. After raising rates in 2018, the U.S. Federal Reserve abruptly changed course and cut rates three times in 2019. Many other central banks followed the same path, while the European Central Bank took rates further into negative territory. The Treasury curve ultimately steepened after some flattening amid declining yields. Credit saw very sizable returns, with investment-grade and high-yield bonds gaining more than 14%. U.S. corporate spreads tightened sharply, by 60 basis points, to end at 93 basis points on an option-adjusted basis. The federal funds rate ended the year between 1.50% and 1.75%.
Sector/industry allocation helped results relative to the market index, as did careful security selection and the fund’s chosen exposure to countries. Investments in government bonds from Greece and Mexico were the largest individual contributors to relative results while Argentine government bonds were among the larger individual detractors.
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 | 42.7 | % | ||
Eurozone3 | 20.7 | |||
Japan | 15.8 | |||
United Kingdom | 4.9 | |||
Canada | 2.2 | |||
China | 2.2 | |||
Malaysia | 1.6 | |||
Denmark | 1.4 | |||
India | 1.2 | |||
Australia | 1.0 | |||
Other | 6.3 | |||
|
| |||
Total | 100.0 | % | ||
|
| |||
Japan | 12.4 | % | ||
Eurozone3: | ||||
Italy | 4.2 | |||
Greece | 3.9 | |||
Germany | 1.3 | |||
France | 1.1 | |||
Other | 1.6 | |||
|
| |||
12.1 | ||||
China | 3.3 | |||
India | 1.8 | |||
Malaysia | 1.8 | |||
Brazil | 1.6 | |||
South Africa | 1.5 | |||
Romania | 1.5 | |||
Canada | 1.4 | |||
Mexico | 1.4 | |||
United Kingdom | 1.3 | |||
Israel | 1.2 | |||
Norway | 1.2 | |||
Other | 9.7 | |||
Total | 52.2 | % | ||
Largest holdings (by issuer)4 | Percent of net assets |
U.S. Treasury | 13.81 | % | ||
Japanese Government | 12.38 | |||
Greek Government | 4.25 | |||
Italian Government | 4.24 | |||
Fannie Mae | 2.93 |
Canadian Government | 2.29 | % | ||
Freddie Mac | 2.21 | |||
Chinese Government | 1.97 | |||
Malaysian Government | 1.83 | |||
China Development Bank | 1.72 |
30 American Funds Insurance Series
Table of Contents
Global Bond Fund
How a hypothetical $10,000 investment has grown
Total returns based on a $1,000 investment For periods ended December 31, 20196
1 year | 5 years | 10 years | Lifetime (since October 4, 2006) | Gross expense ratio | Net expense ratio | |||||||||||||||||||
Class 1 | 8.08 | % | 2.54 | % | 2.85 | % | 4.07 | % | .59 | % | .50 | % | ||||||||||||
Class 1A | 7.75 | 2.33 | 2.61 | 3.82 | .84 | .75 | ||||||||||||||||||
Class 27 | 7.77 | 2.29 | 2.59 | 3.81 | .84 | .75 | ||||||||||||||||||
Class 4 | 7.54 | 2.04 | 2.38 | 3.58 | 1.09 | 1.00 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The investment adviser intends to waive a portion of its management fees beginning May 1, 2020. This waiver will be in effect through at least May 1, 2021. The waiver may only be modified or terminated with the approval of the fund’s board. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are as of the fund’s prospectus dated May 1, 2020 (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 10.9%. |
3 | Countries using the euro as a common currency; those represented in the fund’s portfolio are France, Germany, Greece, Italy, Luxembourg, Portugal, the Netherlands and Spain. |
4 | The information shown includes affiliates of the same issuer when applicable. It does not include cash and cash equivalents or shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
5 | Source: Refinitiv Lipper. Lipper averages reflect the current composition of all eligible mutual funds (all share classes) within a given category. Lipper categories are dynamic and averages may have few funds, especially over longer periods. To see the number of funds included in the Lipper category for each fund’s lifetime, please see the Quarterly Statistical Update, available on our website. |
6 | Periods greater than one year are annualized. |
7 | 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, 2019 | 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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information andmonth-end results, visit capitalgroup.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 gained 12.85% for the 12 months ended December 31, 2019. In comparison, the fund’s benchmark, the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index,1 which measuresfixed-ratenon-investment-grade bonds and limits the exposure of an issuer to 2% was up 14.32%.
Bond returns were strong during the period. The Federal Reserve maintained its target rate for the first half of the year, but then reduced the target rate three times in the second half. The federal funds rate ended the year between 1.50% and 1.75%. The Treasury curve ultimately steepened after some flattening amid declining yields.
The fund’s portfolio managers continue to believe current fundamentals support a mildly constructive outlook for the high yield market. We continue to monitor global central bank monetary policy actions, and believe that the higher yields and relatively short duration of high yield bonds should help mitigate any impact should rates begin to rise from current levels.
Largest holdings (by issuer)2 | Percent of net assets |
Valeant Pharmaceuticals International | 2.54 | % | ||
First Quantum Minerals | 2.42 | |||
Petsmart | 2.19 | |||
Teva Pharmaceutical | 1.90 | |||
Centene | 1.86 |
Cleveland-Cliffs | 1.65 | % | ||
Tenet Healthcare | 1.53 | |||
Sprint Nextel | 1.39 | |||
Endo International | 1.39 | |||
CCO Holdings LLC and CCO Holdings Capital | 1.37 |
32 American Funds Insurance Series
Table of Contents
High-Income Bond Fund
How a hypothetical $10,000 investment has grown
Total returns based on a $1,000 investment For periods ended December 31, 20193
1 year | 5 years | 10 years | Lifetime (since February 8, 1984) | Expense ratio | ||||||||||||||||
Class 1 | 12.85 | % | 5.36 | % | 6.51 | % | 8.67 | % | .51 | % | ||||||||||
Class 1A | 12.61 | 5.13 | 6.26 | 8.40 | .76 | |||||||||||||||
Class 2 | 12.55 | 5.09 | 6.25 | 8.40 | .76 | |||||||||||||||
Class 3 | 12.70 | 5.18 | 6.32 | 8.47 | .69 | |||||||||||||||
Class 4 | 12.27 | 4.82 | 6.03 | 8.14 | 1.01 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are as of the fund’s prospectus dated May 1, 2020 (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 | The information shown includes affiliates of the same issuer when applicable. It does not include cash and cash equivalents or shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
3 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of December 31, 2019 | 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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information andmonth-end results, visit capitalgroup.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 5.30% for the 12 months ended December 31, 2019, 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 6.35%.
Bond returns were strong. The Federal Reserve paused rate hikes for the first half of the year and cut three times in the second half. The federal funds target rate ended the year between 1.50% and 1.75%. The Treasury curve ultimately steepened after some flattening amid declining yields.
Sector and security selection detracted from relative results, including holdings in U.S. Treasuries and interest rate swaps.
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 MBS Pass-Through 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. More attractive valuations for mortgage investments are expected to emerge going forward amid a transition from our extended period of extremely low volatility to a more normal period of economic and asset price uncertainty.
34 American Funds Insurance Series
Table of Contents
Mortgage Fund
How a hypothetical $10,000 investment has grown
Total returns based on a $1,000 investment For periods ended December 31, 20192
1 year | 5 years | Lifetime (since May 2, 2011) | Gross expense ratio | Net expense ratio | ||||||||||||||||
Class 1 | 5.30 | % | 2.38 | % | 2.68 | % | .48 | % | .30 | % | ||||||||||
Class 1A | 5.09 | 2.14 | 2.43 | .73 | .55 | |||||||||||||||
Class 2 | 5.04 | 2.12 | 2.43 | .73 | .55 | |||||||||||||||
Class 4 | 4.80 | 1.88 | 2.24 | .98 | .80 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The investment adviser intends to waive a portion of its management fees beginning May 1, 2020. This waiver will be in effect through at least May 1, 2021. The waiver may only be modified or terminated with the approval of the fund’s board. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are as of the fund’s prospectus dated May 1, 2020 (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 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of December 31, 2019 | 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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information andmonth-end results, visit capitalgroup.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 1.92% for the 12 months ended December 31, 2019, compared with a 2.69% rise in the Bloomberg Barclays Short-Term Government/Corporate Index1, 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. With a focus on capital preservation and liquidity, the fund continues to be managed in a relatively conservative manner compared to the above-described index.
The fund’s returns were higher than in 2018 even as the Federal Reserve paused rate hikes for the first half of the year and cut three times in the second half. The federal funds rate ended the year between 1.50% and 1.75%. The Treasury curve ultimately steepened after some flattening amid declining yields. Assuming the current interest rate environment and solid U.S. economic conditions persist, the fund has the potential to continue to provide income.
36 American Funds Insurance Series
Table of Contents
Ultra-Short Bond Fund
Total returns based on a $1,000 investment For periods ended December 31, 20192
1 year | 5 years | 10 years | Lifetime (since February 8, 1984) | Expense ratio | ||||||||||||||||
Class 1 | 1.92 | % | 0.81 | % | 0.30 | % | 3.39 | % | .37 | % | ||||||||||
Class 1A | 1.92 | 0.71 | 0.12 | 3.16 | .62 | |||||||||||||||
Class��2 | 1.62 | 0.56 | 0.05 | 3.14 | .62 | |||||||||||||||
Class 3 | 1.76 | 0.62 | 0.12 | 3.21 | .55 | |||||||||||||||
Class 4 | 1.40 | 0.30 | -0.13 | 2.90 | .87 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are as of the fund’s prospectus dated May 1, 2020 (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 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of December 31, 2019 | Percent of net assets |
Commercial paper | 71.7 | % | ||
Federal agency discount notes | 14.7 | |||
Bonds & notes of governments & government agencies outside the U.S. | 10.0 | |||
U.S. Treasury bills | 3.5 | |||
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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information andmonth-end results, visit capitalgroup.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 5.69% for the 12 months ended December 31, 2019, 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 6.63%.
Bond returns were strong during the period. The Federal Reserve maintained its target rate for the first half of the year, but then reduced the target rate three times in the second half. The federal funds rate ended the year between 1.50% and 1.75%. The Treasury curve ultimately steepened after some flattening amid declining yields.
During the period, the fund’s interest rate positioning detracted from relative returns, including investments in interest rate swaps.
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 are unlikely as the Federal Reserve wants to extend the economic expansion and to also raise inflation closer to its stated “strong commitment” to a symmetric target of 2%. We believe this stance by the Federal Reserve can lead to a steepening yield curve and potentially higher inflation expectations.
38 American Funds Insurance Series
Table of Contents
U.S.Government/AAA-Rated Securities Fund
How a hypothetical $10,000 investment has grown
Total returns based on a $1,000 investment For periods ended December 31, 20192
1 year | 5 years | 10 years | Lifetime (since December 2, 1985) | Expense ratio | ||||||||||||||||
Class 1 | 5.69 | % | 2.35 | % | 2.97 | % | 5.71 | % | .38 | % | ||||||||||
Class 1A | 5.42 | 2.13 | 2.74 | 5.45 | .63 | |||||||||||||||
Class 2 | 5.31 | 2.07 | 2.72 | 5.45 | .63 | |||||||||||||||
Class 3 | 5.49 | 2.15 | 2.79 | 5.52 | .56 | |||||||||||||||
Class 4 | 5.14 | 1.83 | 2.51 | 5.20 | .88 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are as of the fund’s prospectus dated May 1, 2020 (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 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of December 31, 2019 | 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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information andmonth-end results, visit capitalgroup.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
The fund gained 22.01% for the 12 months ended December 31, 2019. S&P 500 Managed Risk Index — Moderate Aggressive1 was up 20.47%. Standard & Poor’s 500 Composite Index2, a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, increased 31.49%.
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 fund.
The underlying Growth Fund’s investments in communication services added to relative returns, while investments in consumer discretionary detracted from the fund’s relative results.
How a hypothetical $10,000 investment has grown
Total returns based on a $1,000 investment For periods ended December 31, 20193
1 year | 5 years | Lifetime (since May 1, 2013) | Gross expense ratio | Net expense ratio | ||||||||||||||||
Class P1 | 22.01 | % | 9.87 | % | 9.94 | % | .79 | % | .74 | % | ||||||||||
Class P2 | 21.74 | 9.55 | 9.62 | 1.04 | .99 |
The investment adviser is currently waiving a portion of its management fee. This waiver will be in effect through at least May 1, 2021. The waiver may only be modified or terminated with the approval of the fund’s board. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are restated to reflect current fees and are as of the fund’s prospectus dated May 1, 2020 (unaudited).
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 | Periods greater than one year are annualized. |
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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information andmonth-end results, visit capitalgroup.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
The fund gained 17.91% for the 12 months ended December 31, 2019, compared to the S&P EPAC Ex. Korea LargeMidCap Managed Risk Index — Moderate Aggressive1, which increased 18.78%. The MSCI ACWI (All Country World Index) ex USA2 increased by 21.51%.
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 fund.
The underlying International Fund’s security selection and a lower-than-index position in the communication services sector added to relative returns, while stock selection in the materials sector detracted from relative results.
How a hypothetical $10,000 investment has grown
Total returns based on a $1,000 investment For periods ended December 31, 20193
1 year | 5 years | Lifetime (since May 1, 2013) | Gross expense ratio | Net expense ratio | ||||||||||||||||
Class P1 | 17.91 | % | 4.62 | % | 3.94 | % | .97 | % | .89 | % | ||||||||||
Class P2 | 17.64 | 4.19 | 3.55 | 1.22 | 1.14 |
The investment adviser is currently waiving a portion of its management fee. This waiver will be in effect through at least May 1, 2021. The waiver may only be modified or terminated with the approval of the fund’s board. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are restated to reflect current fees and are as of the fund’s prospectus dated May 1, 2020 (unaudited).
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. |
3 | Periods greater than one year are annualized. |
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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information andmonth-end results, visit capitalgroup.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
The fund gained 14.14% for the 12 months ended December 31, 2019. S&P 500 Managed Risk Index — Moderate1 was up 19.14%. Standard & Poor’s 500 Composite Index2, a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, increased 31.49%.
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 fund.
The underlying Blue Chip Income and Growth Fund’s investments in the real estate sector added to relative returns, while investments in health care detracted from the fund’s relative results.
How a hypothetical $10,000 investment has grown
Total returns based on a $1,000 investment For periods ended December 31, 20193
1 year | 5 years | Lifetime (since May 1, 2013) | Gross expense ratio | Net expense ratio | ||||||||||||||||
Class P1 | 14.14 | % | 5.33 | % | 7.09 | % | .84 | % | .79 | % | ||||||||||
Class P2 | 13.88 | 4.96 | 6.72 | 1.09 | 1.04 |
The investment adviser is currently waiving a portion of its management fee. This waiver will be in effect through at least May 1, 2021. The waiver may only be modified or terminated with the approval of the fund’s board. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are restated to reflect current fees and are as of the fund’s prospectus dated May 1, 2020 (unaudited).
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 | Periods greater than one year are annualized. |
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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information andmonth-end results, visit capitalgroup.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
The fund gained 19.14% for the 12 months ended December 31, 2019. S&P 500 Managed Risk Index — Moderate1 was up 19.14%. Standard & Poor’s 500 Composite Index2, a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, increased 31.49%.
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 fund.
The underlying Growth-Income Fund’s investments in industrials added to relative returns, while investments in materials detracted from the fund’s relative results. At the security level within the materials sector, a top detractor from relative results included Vale in the metals and mining industry.
How a hypothetical $10,000 investment has grown
Total returns based on a $1,000 investment For periods ended December 31, 20193
1 year | 5 years | Lifetime (since May 1, 2013) | Gross expense ratio | Net expense ratio | ||||||||||||||||
Class P1 | 19.14 | % | 7.80 | % | 8.97 | % | .73 | % | .68 | % | ||||||||||
Class P2 | 18.84 | 7.47 | 8.63 | .98 | .93 |
The investment adviser is currently waiving a portion of its management fee. This waiver will be in effect through at least May 1, 2021. The waiver may only be modified or terminated with the approval of the fund’s board. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are restated to reflect current fees and are as of the fund’s prospectus dated May 1, 2020 (unaudited).
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 | Periods greater than one year are annualized. |
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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information andmonth-end results, visit capitalgroup.com/afis. For information about your insurance contract andmonth-end results, go to the website of the company that issued your contract.
The fund gained 18.25% for the 12 months ended December 31, 2019. S&P 500 Managed Risk Index — Moderate Conservative1 was up 18.05%. Standard & Poor’s 500 Composite Index2, a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, increased 31.49%.
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 fund.
The underlying Asset Allocation Fund’s investments in the financials sector added to relative returns, while investments in health care detracted from the fund’s relative results.
44 American Funds Insurance Series
Table of Contents
Managed Risk Asset Allocation Fund
How a hypothetical $10,000 investment has grown
Total returns based on a $1,000 investment For periods ended December 31, 20194
1 year | 5 years | Lifetime (since September 28, 2012) | Gross expense ratio | Net expense ratio | ||||||||||||||||
Class P1 | 18.25 | % | 6.72 | % | 8.00 | % | .71 | % | .66 | % | ||||||||||
Class P2 | 17.98 | 6.45 | 7.73 | .96 | .91 |
The investment adviser is currently waiving a portion of its management fee. This waiver will be in effect through at least May 1, 2021. The waiver may only be modified or terminated with the approval of the fund’s board. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are restated to reflect current fees and are as of the fund’s prospectus dated May 1, 2020 (unaudited).
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. |
4 | Periods greater than one year are annualized. |
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, 2019
Common stocks 96.83%
Shares | Value (000) | |||||||
Information technology 29.11% |
| |||||||
ASML Holding NV1 | 648,442 | $193,113 | ||||||
ASML Holding NV (New York registered) | 510,500 | 151,077 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 27,188,000 | 301,093 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 335,000 | 19,463 | ||||||
Microsoft Corp. | 1,999,800 | 315,368 | ||||||
Visa Inc., Class A | 1,142,800 | 214,732 | ||||||
Broadcom Inc. | 487,050 | 153,918 | ||||||
Temenos AG1 | 637,000 | 100,711 | ||||||
Paycom Software, Inc.2 | 357,000 | 94,519 | ||||||
SimCorp AS1 | 425,000 | 48,292 | ||||||
Adyen NV1,2 | 56,700 | 46,656 | ||||||
PagSeguro Digital Ltd., Class A2 | 1,340,900 | 45,805 | ||||||
Adobe Inc.2 | 135,000 | 44,524 | ||||||
Amphenol Corp., Class A | 373,500 | 40,424 | ||||||
Other securities | 209,884 | |||||||
|
| |||||||
1,979,579 | ||||||||
|
| |||||||
Consumer discretionary 17.93% |
| |||||||
Amazon.com, Inc.2 | 173,800 | 321,155 | ||||||
Alibaba Group Holding Ltd.1,2 | 6,844,000 | 181,984 | ||||||
Takeaway.com NV1,2 | 740,000 | 68,355 | ||||||
Just Eat PLC1,2 | 5,292,000 | 58,725 | ||||||
Ocado Group PLC1,2 | 3,115,000 | 52,890 | ||||||
Naspers Ltd., Class N1 | 277,000 | 45,276 | ||||||
Moncler SpA1 | 915,000 | 41,155 | ||||||
NIKE, Inc., Class B | 370,500 | 37,535 | ||||||
Other securities | 412,427 | |||||||
|
| |||||||
1,219,502 | ||||||||
|
| |||||||
Health care 10.91% |
| |||||||
UnitedHealth Group Inc. | 324,200 | 95,308 | ||||||
AstraZeneca PLC1 | 721,300 | 72,165 | ||||||
Merck & Co., Inc. | 775,600 | 70,541 | ||||||
Boston Scientific Corp.2 | 1,373,700 | 62,119 | ||||||
Pfizer Inc. | 1,424,000 | 55,792 | ||||||
DexCom, Inc.2 | 253,000 | 55,341 | ||||||
Fisher & Paykel Healthcare Corp. Ltd.1 | 3,680,000 | 55,222 | ||||||
Mettler-Toledo International Inc.2 | 65,000 | 51,563 | ||||||
Other securities | 224,092 | |||||||
|
| |||||||
742,143 | ||||||||
|
| |||||||
Financials 10.30% |
| |||||||
AIA Group Ltd.1 | 13,206,300 | 138,952 | ||||||
Kotak Mahindra Bank Ltd.1 | 3,917,000 | 92,383 | ||||||
JPMorgan Chase & Co. | 614,600 | 85,675 | ||||||
MarketAxess Holdings Inc. | 211,000 | 79,992 | ||||||
Tradeweb Markets Inc., Class A | 1,501,303 | 69,586 | ||||||
Other securities | 233,882 | |||||||
|
| |||||||
700,470 | ||||||||
|
| |||||||
Consumer staples 8.12% |
| |||||||
British American Tobacco PLC1 | 2,970,800 | 126,572 | ||||||
Nestlé SA1 | 739,650 | 80,131 | ||||||
Philip Morris International Inc. | 919,500 | 78,240 | ||||||
Altria Group, Inc. | 1,125,000 | 56,149 | ||||||
Keurig Dr Pepper Inc. | 1,624,000 | 47,015 | ||||||
Other securities | 163,686 | |||||||
|
| |||||||
551,793 | ||||||||
|
|
46 American Funds Insurance Series
Table of Contents
Global Growth Fund
Common stocks
Shares | Value (000) | |||||||
Communication services 7.87% |
| |||||||
Alphabet Inc., Class A2 | 115,600 | $ 154,833 | ||||||
Alphabet Inc., Class C2 | 71,052 | 94,998 | ||||||
Tencent Holdings Ltd.1 | 2,230,000 | 107,572 | ||||||
Facebook, Inc., Class A2 | 421,640 | 86,542 | ||||||
Nintendo Co., Ltd.1 | 137,400 | 55,461 | ||||||
Other securities | 35,926 | |||||||
|
| |||||||
535,332 | ||||||||
|
| |||||||
Industrials 7.76% |
| |||||||
Airbus SE,non-registered shares1 | 1,093,500 | 160,436 | ||||||
MTU Aero Engines AG1 | 167,000 | 47,688 | ||||||
Geberit AG1 | 65,000 | 36,490 | ||||||
Other securities | 282,712 | |||||||
|
| |||||||
527,326 | ||||||||
|
| |||||||
Materials 2.73% |
| |||||||
Sherwin-Williams Co. | 155,500 | 90,740 | ||||||
Other securities | 95,059 | |||||||
|
| |||||||
185,799 | ||||||||
|
| |||||||
Energy 2.02% |
| |||||||
Reliance Industries Ltd.1 | 1,795,200 | 38,132 | ||||||
Other securities | 99,232 | |||||||
|
| |||||||
137,364 | ||||||||
|
| |||||||
Utilities 0.08% |
| |||||||
Other securities | 5,646 | |||||||
|
| |||||||
Total common stocks (cost: $3,768,489,000) | 6,584,954 | |||||||
|
| |||||||
Preferred securities 1.66% | ||||||||
Health care 1.20% | ||||||||
Sartorius AG, nonvoting preferred,non-registered shares1 | 381,500 | 81,675 | ||||||
|
| |||||||
Information technology 0.46% | ||||||||
Other securities | 30,909 | |||||||
|
| |||||||
Total preferred securities (cost: $43,479,000) | 112,584 | |||||||
|
| |||||||
Short-term securities 2.01% | ||||||||
Money market investments 2.01% | ||||||||
Capital Group Central Cash Fund 1.73%3 | 1,371,403 | 137,140 | ||||||
|
| |||||||
Total short-term securities (cost: $136,878,000) | 137,140 | |||||||
|
| |||||||
Total investment securities 100.50% (cost: $3,948,846,000) | 6,834,678 | |||||||
Other assets less liabilities (0.50)% | (34,231 | ) | ||||||
|
| |||||||
Net assets 100.00% | $ | 6,800,447 | ||||||
|
|
American Funds Insurance Series 47
Table of Contents
Global 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 | 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 $3,312,961,000, which represented 48.72% of the net assets of the fund. This amount includes $3,300,466,000 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 | Rate represents theseven-day yield at 12/31/2019. |
Key to abbreviation
ADR = American Depositary Receipts
See notes to financial statements.
48 American Funds Insurance Series
Table of Contents
Global Small Capitalization Fund
Summary investment portfolioDecember 31, 2019
Common stocks 94.84%
Shares | Value (000) | |||||||
Health care 22.15% | ||||||||
Insulet Corp.1 | 815,300 | $ | 139,579 | |||||
GWPharmaceuticals PLC (ADR)1 | 823,718 | 86,128 | ||||||
Notre Dame Intermédica Participações SA | 4,228,500 | 71,742 | ||||||
Haemonetics Corp.1 | 619,200 | 71,146 | ||||||
Allakos Inc.1,2 | 683,880 | 65,215 | ||||||
CONMED Corp. | 581,200 | 64,996 | ||||||
Integra LifeSciences Holdings Corp.1 | 906,825 | 52,850 | ||||||
Mani, Inc.3 | 1,632,529 | 46,675 | ||||||
Cortexyme, Inc.1,2 | 695,324 | 39,035 | ||||||
iRhythm Technologies, Inc.1 | 515,500 | 35,100 | ||||||
PRA Health Sciences, Inc.1 | 306,100 | 34,023 | ||||||
New Frontier Health Corp., Class A1,3,4 | 2,680,000 | 26,666 | ||||||
Other securities | 290,189 | |||||||
|
| |||||||
1,023,344 | ||||||||
|
| |||||||
Information technology 18.84% | ||||||||
Cree, Inc.1 | 1,199,900 | 55,375 | ||||||
Ceridian HCM Holding Inc.1 | 799,400 | 54,263 | ||||||
Net One Systems Co., Ltd.3 | 1,556,965 | 40,002 | ||||||
Network International Holdings PLC1,3 | 4,570,562 | 38,792 | ||||||
Avast PLC3 | 5,839,000 | 35,104 | ||||||
Alteryx, Inc., Class A1 | 340,000 | 34,024 | ||||||
SimCorp AS3 | 297,250 | 33,776 | ||||||
Bechtle AG,non-registered shares3 | 226,305 | 31,756 | ||||||
Carel Industries SpA2,3 | 1,947,251 | 30,292 | ||||||
Qorvo, Inc.1 | 241,800 | 28,104 | ||||||
Appfolio, Inc., Class A1 | 251,270 | 27,627 | ||||||
Other securities | 461,432 | |||||||
|
| |||||||
870,547 | ||||||||
|
| |||||||
Industrials 14.87% | ||||||||
International Container Terminal Services, Inc.3 | 23,981,620 | 60,824 | ||||||
Nihon M&A Center Inc.3 | 1,710,692 | 59,090 | ||||||
VARTA AG,non-registered shares1,3 | 280,402 | 38,232 | ||||||
Meggitt PLC3 | 3,321,300 | 28,942 | ||||||
Tomra Systems ASA3 | 857,587 | 27,197 | ||||||
Marel hf.,non-registered shares (ISK denominated)3 | 4,899,903 | 24,908 | ||||||
Marel hf.,non-registered shares (EUR denominated)1,3 | 333,333 | 1,705 | ||||||
Other securities | 445,981 | |||||||
|
| |||||||
686,879 | ||||||||
|
| |||||||
Consumer discretionary 14.63% | ||||||||
frontdoor, inc.1 | 1,355,200 | 64,264 | ||||||
Luckin Coffee Inc., Class A (ADR)1,2 | 1,472,220 | 57,947 | ||||||
Helen of Troy Ltd.1 | 283,000 | 50,881 | ||||||
Mattel, Inc.1,2 | 3,338,800 | 45,241 | ||||||
Wyndham Hotels & Resorts, Inc. | 631,500 | 39,664 | ||||||
Five Below, Inc.1 | 305,000 | 38,997 | ||||||
Melco International Development Ltd.3 | 12,619,000 | 35,517 | ||||||
GVC Holdings PLC3 | 2,934,000 | 34,409 | ||||||
Thor Industries, Inc. | 446,000 | 33,133 | ||||||
Other securities | 275,830 | |||||||
|
| |||||||
675,883 | ||||||||
|
|
American Funds Insurance Series 49
Table of Contents
Global Small Capitalization Fund
Common stocks (continued)
Shares | Value (000) | |||||||
Financials 7.69% | ||||||||
Cannae Holdings, Inc.1 | 1,625,000 | $ 60,434 | ||||||
Kotak Mahindra Bank Ltd.3 | 2,448,225 | 57,742 | ||||||
Essent Group Ltd. | 750,841 | 39,036 | ||||||
Trupanion, Inc.1,2 | 973,800 | 36,479 | ||||||
IndusInd Bank Ltd.3 | 1,579,646 | 33,434 | ||||||
Other securities | 128,424 | |||||||
|
| |||||||
355,549 | ||||||||
|
| |||||||
Real estate 3.98% | ||||||||
Altus Group Ltd. | 932,800 | 27,268 | ||||||
MGM Growth Properties LLC REIT, Class A | 864,500 | 26,773 | ||||||
Embassy Office Parks REIT3 | 4,509,000 | 26,767 | ||||||
Other securities | 102,925 | |||||||
|
| |||||||
183,733 | ||||||||
|
| |||||||
Materials 3.89% | ||||||||
Allegheny Technologies Inc.1 | 1,413,900 | 29,211 | ||||||
Other securities | 150,334 | |||||||
|
| |||||||
179,545 | ||||||||
|
| |||||||
Communication services 3.16% | ||||||||
Altice Europe NV, Class A1,3 | 4,363,000 | 28,195 | ||||||
Other securities | 117,732 | |||||||
|
| |||||||
145,927 | ||||||||
|
| |||||||
Consumer staples 2.66% | ||||||||
Other securities | 123,044 | |||||||
|
| |||||||
Energy 1.58% | ||||||||
Other securities | 73,080 | |||||||
|
| |||||||
Utilities 1.39% | ||||||||
ENN Energy Holdings Ltd.3 | 4,262,900 | 46,609 | ||||||
Other securities | 17,485 | |||||||
|
| |||||||
64,094 | ||||||||
|
| |||||||
Total common stocks(cost: $3,225,972,000) | 4,381,625 | |||||||
|
| |||||||
Preferred securities 1.02% | ||||||||
Other 1.02% | ||||||||
Other securities | 47,209 | |||||||
|
| |||||||
Total preferred securities(cost: $36,660,000) | 47,209 | |||||||
|
| |||||||
Rights & warrants 0.00% | ||||||||
Health care 0.00% | ||||||||
Other securities | 53 | |||||||
|
| |||||||
Total rights & warrants(cost: $0) | 53 | |||||||
|
|
50 American Funds Insurance Series
Table of Contents
Global Small Capitalization Fund
Short-term securities 6.03%
Shares | Value (000) | |||||||
Money market investments 6.03% | ||||||||
Capital Group Central Cash Fund 1.73%5 | 1,926,005 | $ | 192,600 | |||||
Fidelity Institutional Money Market Funds—Government Portfolio 1.49%5,6 | 11,671,469 | 11,672 | ||||||
Goldman Sachs Financial Square Government Fund 1.50%5,6 | 9,901,092 | 9,901 | ||||||
Invesco—Short-term Investments Trust—Government & Agency Portfolio 1.50%5,6 | 13,138,720 | 13,139 | ||||||
Morgan Stanley Institutional Liquidity Funds—Government Portfolio 1.51%5,6 | 51,521,183 | 51,521 | ||||||
|
| |||||||
278,833 | ||||||||
|
| |||||||
Total short-term securities (cost: $278,593,000) | 278,833 | |||||||
|
| |||||||
Total investment securities 101.89% (cost: $3,541,225,000) | 4,707,720 | |||||||
Other assets less liabilities (1.89)% | (87,447 | ) | ||||||
|
| |||||||
Net assets 100.00% | $ | 4,620,273 | ||||||
|
|
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 $44,058,000, an aggregate cost of $37,986,000, and which represented .95% of the net assets of the fund) were acquired from 5/1/2015 to 12/26/2019 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject them 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 represent 5% or more of the outstanding voting shares of that company. The value of the fund’s affiliated-company holding is included in “Other securities” under the respective industry sector in the summary investment portfolio. Further details on this holding and related transactions during the year ended December 31, 2019, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized gain (000) | Net unrealized depreciation (000) | Dividend income (000) | Value of affiliates at 12/31/2019 (000) | |||||||||||||||||||||||||
Common stocks 0.28% | ||||||||||||||||||||||||||||||||
Health care 0.28% |
| |||||||||||||||||||||||||||||||
NuCana PLC (ADR)1,2 | 2,067,724 | 15,980 | — | 2,083,704 | $ | — | $ | (17,366 | ) | $ | — | $ | 12,711 |
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 $102,111,000, which represented 2.21% of the net assets of the fund. Refer to Note 5 for more information on securities lending. |
3 | 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 $1,960,603,000, which represented 42.43% of the net assets of the fund. This amount includes $1,889,826,000 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. |
4 | Acquired in a transaction exempt from registration under 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 $41,018,000, which represented .89% of the net assets of the fund. |
5 | Rate represents theseven-day yield at 12/31/2019. |
6 | Security purchased with cash collateral from securities on loan. Refer to Note 5 for more information on securities lending. |
Key to abbreviations
ADR = American Depositary Receipts
EUR = Euros
ISK = Icelandic kronor
See notes to financial statements.
American Funds Insurance Series 51
Table of Contents
Summary investment portfolioDecember 31, 2019
Common stocks 96.25%
Shares | Value (000) | |||||||
Information technology 25.15% | ||||||||
Microsoft Corp. | 10,468,400 | $1,650,867 | ||||||
Broadcom Inc. | 2,430,100 | 767,960 | ||||||
ASML Holding NV (New York registered) | 1,161,800 | 343,823 | ||||||
ASML Holding NV1 | 985,000 | 293,343 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 30,792,000 | 341,005 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 2,419,592 | 140,578 | ||||||
Visa Inc., Class A | 2,256,600 | 424,015 | ||||||
RingCentral, Inc., Class A2 | 1,557,200 | 262,653 | ||||||
ServiceNow, Inc.2 | 921,500 | 260,158 | ||||||
Intel Corp. | 4,013,000 | 240,178 | ||||||
Autodesk, Inc.2 | 1,096,000 | 201,072 | ||||||
Fiserv, Inc.2 | 1,573,600 | 181,955 | ||||||
Workday, Inc., Class A2 | 987,000 | 162,312 | ||||||
Mastercard Inc., Class A | 538,000 | 160,641 | ||||||
Other securities | 1,729,830 | |||||||
|
| |||||||
7,160,390 | ||||||||
|
| |||||||
Communication services 18.20% | ||||||||
Facebook, Inc., Class A2 | 7,578,400 | 1,555,467 | ||||||
Netflix, Inc.2 | 3,251,160 | 1,051,978 | ||||||
Alphabet Inc., Class C2 | 552,300 | 738,436 | ||||||
Alphabet Inc., Class A2 | 157,500 | 210,954 | ||||||
Charter Communications, Inc., Class A2 | 946,280 | 459,021 | ||||||
T-Mobile US, Inc.2 | 4,885,000 | 383,082 | ||||||
Activision Blizzard, Inc. | 6,317,500 | 375,386 | ||||||
Comcast Corp., Class A | 5,135,900 | 230,961 | ||||||
Other securities | 175,162 | |||||||
|
| |||||||
5,180,447 | ||||||||
|
| |||||||
Health care 16.70% | ||||||||
UnitedHealth Group Inc. | 3,190,800 | 938,031 | ||||||
Intuitive Surgical, Inc.2 | 1,049,100 | 620,176 | ||||||
Regeneron Pharmaceuticals, Inc.2 | 1,341,000 | 503,519 | ||||||
Humana Inc. | 1,269,500 | 465,297 | ||||||
Vertex Pharmaceuticals Inc.2 | 1,434,579 | 314,101 | ||||||
Boston Scientific Corp.2 | 5,085,000 | 229,944 | ||||||
Centene Corp.2 | 3,484,800 | 219,089 | ||||||
Thermo Fisher Scientific Inc. | 534,500 | 173,643 | ||||||
Cigna Corp. | 739,902 | 151,303 | ||||||
Seattle Genetics, Inc.2 | 1,248,154 | 142,614 | ||||||
Other securities | 995,508 | |||||||
|
| |||||||
4,753,225 | ||||||||
|
| |||||||
Consumer discretionary 11.29% | ||||||||
Amazon.com, Inc.2 | 557,016 | 1,029,276 | ||||||
Tesla, Inc.2 | 1,908,500 | 798,383 | ||||||
Home Depot, Inc. | 1,206,000 | 263,366 | ||||||
Other securities | 1,122,701 | |||||||
|
| |||||||
3,213,726 | ||||||||
|
| |||||||
Financials 8.49% | ||||||||
Goldman Sachs Group, Inc. | 1,052,400 | 241,978 | ||||||
JPMorgan Chase & Co. | 1,343,000 | 187,214 | ||||||
Wells Fargo & Co. | 3,011,800 | 162,035 | ||||||
Legal & General Group PLC1 | 40,158,246 | 161,788 | ||||||
First Republic Bank | 1,376,000 | 161,611 | ||||||
PNC Financial Services Group, Inc. | 919,800 | 146,828 | ||||||
Bank of America Corp. | 4,015,000 | 141,408 | ||||||
Intercontinental Exchange, Inc. | 1,490,900 | 137,983 | ||||||
Other securities | 1,075,635 | |||||||
|
| |||||||
2,416,480 | ||||||||
|
|
52 American Funds Insurance Series
Table of Contents
Growth Fund
Common stocks
Shares | Value (000) | |||||||
Industrials 6.44% | ||||||||
TransDigm Group Inc. | 689,000 | $ | 385,840 | |||||
MTU Aero Engines AG1 | 1,034,033 | 295,275 | ||||||
CSX Corp. | 1,882,200 | 136,196 | ||||||
Airbus SE,non-registered shares1 | 920,327 | 135,028 | ||||||
Other securities | 882,578 | |||||||
|
| |||||||
1,834,917 | ||||||||
|
| |||||||
Materials 2.83% | ||||||||
Other securities | 806,455 | |||||||
|
| |||||||
Consumer staples 2.72% | ||||||||
Altria Group, Inc. | 3,140,182 | 156,727 | ||||||
Costco Wholesale Corp. | 522,900 | 153,691 | ||||||
Kerry Group PLC, Class A1 | 1,100,000 | 136,951 | ||||||
Other securities | 326,896 | |||||||
|
| |||||||
774,265 | ||||||||
|
| |||||||
Energy 2.45% | ||||||||
Other securities | 698,230 | |||||||
|
| |||||||
Real estate 1.71% | ||||||||
Equinix, Inc. REIT | 440,100 | 256,887 | ||||||
Other securities | 229,970 | |||||||
|
| |||||||
486,857 | ||||||||
|
| |||||||
Utilities 0.27% | ||||||||
Other securities | 77,731 | |||||||
|
| |||||||
Total common stocks (cost: $14,882,833,000) | 27,402,723 | |||||||
|
| |||||||
Convertible bonds 0.09% | Principal amount (000) | |||||||
Consumer staples 0.09% | ||||||||
Other securities | 25,000 | |||||||
|
| |||||||
Total convertible bonds (cost: $25,000,000) | 25,000 | |||||||
|
| |||||||
Short-term securities 3.87% | Shares | |||||||
Money market investments 3.87% | ||||||||
Capital Group Central Cash Fund 1.73%3 | 11,024,924 | 1,102,492 | ||||||
|
| |||||||
Total short-term securities (cost: $1,102,383,000) | 1,102,492 | |||||||
|
| |||||||
Total investment securities 100.21% (cost: $16,010,216,000) | 28,530,215 | |||||||
Other assets less liabilities (0.21)% | (60,556 | ) | ||||||
|
| |||||||
Net assets 100.00% | $ | 28,469,659 | ||||||
|
|
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. One security in “Other securities” (with a value of $38,849,000, an aggregate cost of $37,000,000, and which represented .14% of the net assets of the fund) was acquired on 12/21/2018 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject it to legal or contractual restrictions on resale.
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 $2,186,070,000, which represented 7.68% of the net assets of the fund. This amount includes $2,122,221,000 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 | Rate represents theseven-day yield at 12/31/2019. |
Key to abbreviation
ADR = American Depositary Receipts
See notes to financial statements.
54 American Funds Insurance Series
Table of Contents
Summary investment portfolioDecember 31, 2019
Common stocks 92.87%
Shares | Value (000) | |||||||
Financials 16.40% | ||||||||
AIA Group Ltd.1 | 40,985,700 | $431,237 | ||||||
HDFC Bank Ltd.1 | 17,086,200 | 304,509 | ||||||
HDFC Bank Ltd. (ADR) | 531,294 | 33,668 | ||||||
Kotak Mahindra Bank Ltd.1 | 8,121,048 | 191,537 | ||||||
Axis Bank Ltd.1 | 7,270,300 | 75,310 | ||||||
Axis Bank Ltd.1,2 | 3,222,055 | 34,069 | ||||||
BNP Paribas SA1 | 1,722,058 | 102,509 | ||||||
Ping An Insurance (Group) Co. of China, Ltd., Class H1 | 6,867,600 | 81,355 | ||||||
Other securities | 398,032 | |||||||
|
| |||||||
1,652,226 | ||||||||
|
| |||||||
Consumer discretionary 13.95% | ||||||||
Alibaba Group Holding Ltd. (ADR)3 | 1,635,100 | 346,805 | ||||||
Sony Corp.1 | 2,051,700 | 139,653 | ||||||
MercadoLibre, Inc.3 | 190,000 | 108,669 | ||||||
Meituan Dianping, Class B1,3 | 7,500,347 | 98,223 | ||||||
Kering SA1 | 139,238 | 91,726 | ||||||
Galaxy Entertainment Group Ltd.1 | 11,306,000 | 83,334 | ||||||
Ryohin Keikaku Co., Ltd.1 | 3,319,000 | 77,413 | ||||||
Other securities | 460,340 | |||||||
|
| |||||||
1,406,163 | ||||||||
|
| |||||||
Industrials 13.85% | ||||||||
Airbus SE,non-registered shares1 | 2,723,949 | 399,652 | ||||||
Recruit Holdings Co., Ltd.1 | 3,871,300 | 145,678 | ||||||
Melrose Industries PLC1 | 37,984,233 | 121,412 | ||||||
Safran SA1 | 523,100 | 81,088 | ||||||
Rheinmetall AG1 | 639,400 | 73,528 | ||||||
Rolls-Royce Holdings PLC1,3 | 8,080,688 | 73,172 | ||||||
Knorr-Bremse AG,non-registered shares1 | 703,099 | 71,566 | ||||||
Komatsu Ltd.1 | 2,880,500 | 69,061 | ||||||
Other securities | 360,594 | |||||||
|
| |||||||
1,395,751 | ||||||||
|
| |||||||
Health care 12.43% | ||||||||
Novartis AG1 | 2,624,133 | 248,617 | ||||||
Daiichi Sankyo Co., Ltd.1 | 2,160,000 | 142,631 | ||||||
Chugai Pharmaceutical Co., Ltd.1 | 1,243,500 | 114,531 | ||||||
Takeda Pharmaceutical Co. Ltd.1 | 2,859,865 | 113,302 | ||||||
Grifols, SA, Class A,non-registered shares1 | 2,656,981 | 93,813 | ||||||
Grifols, SA, Class B (ADR) | 793,690 | 18,485 | ||||||
Alcon Inc.1,3 | 1,903,239 | 107,818 | ||||||
Fresenius SE & Co. KGaA1 | 1,819,000 | 102,675 | ||||||
Teva Pharmaceutical Industries Ltd. (ADR)3 | 7,216,598 | 70,723 | ||||||
Other securities | 239,573 | |||||||
|
| |||||||
1,252,168 | ||||||||
|
| |||||||
Information technology 7.24% | ||||||||
ASML Holding NV1 | 682,174 | 203,158 | ||||||
Samsung Electronics Co., Ltd.1 | 3,702,250 | 178,390 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 6,183,000 | 68,474 | ||||||
Other securities | 279,537 | |||||||
|
| |||||||
729,559 | ||||||||
|
| |||||||
Materials 6.73% | ||||||||
Vale SA, ordinary nominative (ADR) | 15,349,717 | 202,616 | ||||||
Vale SA, ordinary nominative | 102,481 | 1,358 | ||||||
Asahi Kasei Corp.1 | 12,779,780 | 143,397 | ||||||
Other securities | 330,520 | |||||||
|
| |||||||
677,891 | ||||||||
|
|
American Funds Insurance Series 55
Table of Contents
International Fund
Common stocks (continued)
Shares | Value (000) | |||||||
Consumer staples 6.72% | ||||||||
Pernod Ricard SA1 | 785,326 | $ 140,578 | ||||||
Nestlé SA1 | 1,142,100 | 123,731 | ||||||
Kirin Holdings Co., Ltd.1 | 4,041,800 | 88,154 | ||||||
KOSÉ Corp.1 | 458,100 | 66,954 | ||||||
Other securities | 257,726 | |||||||
|
| |||||||
677,143 | ||||||||
|
| |||||||
Communication services 4.91% | ||||||||
SoftBank Group Corp.1 | 4,168,200 | 181,469 | ||||||
Tencent Holdings Ltd.1 | 2,555,987 | 123,297 | ||||||
Altice Europe NV, Class A1,3 | 13,236,760 | 85,540 | ||||||
Other securities | 104,327 | |||||||
|
| |||||||
494,633 | ||||||||
|
| |||||||
Energy 4.86% | ||||||||
Reliance Industries Ltd.1 | 5,591,364 | 118,767 | ||||||
Royal Dutch Shell PLC, Class B1 | 2,148,307 | 64,014 | ||||||
Oil Search Ltd.1 | 13,449,600 | 68,611 | ||||||
Other securities | 238,598 | |||||||
|
| |||||||
489,990 | ||||||||
|
| |||||||
Utilities 3.56% | ||||||||
ENN Energy Holdings Ltd.1 | 14,004,000 | 153,115 | ||||||
China Gas Holdings Ltd.1 | 24,134,000 | 90,467 | ||||||
E.ON SE1 | 7,101,000 | 75,944 | ||||||
Other securities | 39,455 | |||||||
|
| |||||||
358,981 | ||||||||
|
| |||||||
Real estate 2.22% | ||||||||
China Overseas Land & Investment Ltd.1 | 23,746,000 | 92,741 | ||||||
Other securities | 130,568 | |||||||
223,309 | ||||||||
|
| |||||||
Total common stocks (cost: $6,922,555,000) | 9,357,814 | |||||||
|
| |||||||
Preferred securities 1.20% | ||||||||
Health care 0.70% | ||||||||
Grifols, SA, Class B, nonvoting preferred,non-registered shares1 | 3,026,230 | 70,526 | ||||||
|
| |||||||
Financials 0.50% | ||||||||
Other securities | 50,234 | |||||||
|
| |||||||
Total preferred securities (cost: $99,792,000) | 120,760 | |||||||
|
| |||||||
Rights & warrants 0.23% | ||||||||
Health care 0.23% | ||||||||
Other securities | 22,939 | |||||||
|
| |||||||
Total rights & warrants (cost: $13,238,000) | 22,939 | |||||||
|
| |||||||
Principal amount (000) | ||||||||
Bonds, notes & other debt instruments 0.44% | ||||||||
Corporate bonds & notes 0.33% | ||||||||
Other 0.33% | ||||||||
Other securities | 33,135 | |||||||
|
| |||||||
56 American Funds Insurance Series
Table of Contents
International Fund
Principal amount (000) | Value (000) | |||||||
Bonds, notes & other debt instruments | ||||||||
Bonds & notes of governments outside the U.S. 0.11% | ||||||||
Bonds & notes of governments & government agencies outside the U.S. 0.11% | ||||||||
Other securities | $ | 11,194 | ||||||
|
| |||||||
Total bonds, notes & other debt instruments (cost: $38,713,000) | 44,329 | |||||||
|
| |||||||
Shares | ||||||||
Short-term securities 5.41% | ||||||||
Money market investments 5.41% | ||||||||
Capital Group Central Cash Fund 1.73%4 | 5,444,569 | 544,457 | ||||||
|
| |||||||
Total short-term securities (cost: $544,206,000) | 544,457 | |||||||
|
| |||||||
Total investment securities 100.15% (cost: $7,618,504,000) | 10,090,299 | |||||||
Other assets less liabilities (0.15)% | (14,868 | ) | ||||||
|
| |||||||
Net assets 100.00% | $ | 10,075,431 | ||||||
|
|
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 (with an aggregate value of $49,827,000, which represented .49% of the net assets of the fund) which were acquired in transactions exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers.
Forward currency contracts
Contract amount | Unrealized depreciation | |||||||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | at 12/31/2019 (000) | ||||||||||
USD 17,024 | GBP 12,948 | Barclays Bank PLC | 1/9/2020 | $ | (131 | ) |
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 $8,247,137,000, which represented 81.85% of the net assets of the fund. This amount includes $8,199,688,000 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 | 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. |
3 | Security did not produce income during the last 12 months. |
4 | Rate represents theseven-day yield at 12/31/2019. |
Private placement security | Acquisition date | Cost (000) | Value (000) | Percent of net | ||||||||
Axis Bank Ltd. | 11/14/2017 | $ | 17,232 | $ | 34,069 | .34% |
Key to abbreviations and symbol
ADR = American Depositary Receipts
GBP = British pounds
USD/$ = U.S. dollars
See notes to financial statements.
American Funds Insurance Series 57
Table of Contents
Summary investment portfolioDecember 31, 2019
Common stocks 88.36%
Shares | Value (000) | |||||||
Information technology 23.02% | ||||||||
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 9,405,000 | $ | 104,155 | |||||
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 250,000 | 14,525 | ||||||
PagSeguro Digital Ltd., Class A2 | 2,921,023 | 99,782 | ||||||
Microsoft Corp. | 538,524 | 84,925 | ||||||
StoneCo Ltd., Class A2 | 1,780,826 | 71,037 | ||||||
Keyence Corp.1 | 140,000 | 49,553 | ||||||
Broadcom Inc. | 156,350 | 49,410 | ||||||
Visa Inc., Class A | 223,400 | 41,977 | ||||||
PayPal Holdings, Inc.2 | 353,000 | 38,184 | ||||||
EPAM Systems, Inc.2 | 158,100 | 33,543 | ||||||
Adobe Inc.2 | 100,400 | 33,113 | ||||||
Largan Precision Co., Ltd.1 | 181,000 | 30,243 | ||||||
Autodesk, Inc.2 | 146,100 | 26,804 | ||||||
Mastercard Inc., Class A | 79,800 | 23,827 | ||||||
Halma PLC1 | 843,000 | 23,666 | ||||||
Other securities | 140,773 | |||||||
|
| |||||||
865,517 | ||||||||
|
| |||||||
Financials 13.11% | ||||||||
HDFC Bank Ltd.1 | 4,410,200 | 78,598 | ||||||
Kotak Mahindra Bank Ltd.1 | 2,942,900 | 69,409 | ||||||
B3 SA - Brasil, Bolsa, Balcao | 5,593,400 | 59,748 | ||||||
AIA Group Ltd.1 | 5,316,600 | 55,939 | ||||||
Sberbank of Russia PJSC (ADR)1 | 1,371,100 | 22,560 | ||||||
Sberbank of Russia PJSC (ADR) | 682,500 | 11,193 | ||||||
HDFC Life Insurance Co. Ltd.1 | 3,387,520 | 29,718 | ||||||
XP Inc., Class A2 | 725,900 | 27,962 | ||||||
Bank Central Asia Tbk PT1 | 9,869,000 | 23,709 | ||||||
Other securities | 114,102 | |||||||
|
| |||||||
492,938 | ||||||||
|
| |||||||
Energy 9.90% | ||||||||
Reliance Industries Ltd.1 | 11,548,513 | 245,304 | ||||||
Royal Dutch Shell PLC, Class B1 | 1,126,400 | 33,564 | ||||||
Petróleo Brasileiro SA (Petrobras), ordinary nominative (ADR) | 1,429,000 | 22,778 | ||||||
Other securities | 70,542 | |||||||
|
| |||||||
372,188 | ||||||||
|
| |||||||
Health care 9.15% | ||||||||
Notre Dame Intermédica Participações SA | 2,800,868 | 47,520 | ||||||
BioMarin Pharmaceutical Inc.2 | 389,600 | 32,941 | ||||||
Carl Zeiss Meditec AG,non-registered shares1 | 216,552 | 27,619 | ||||||
AstraZeneca PLC1 | 269,800 | 26,993 | ||||||
Yunnan Baiyao Group Co., Ltd., Class A1 | 2,000,000 | 25,699 | ||||||
Abbott Laboratories | 263,000 | 22,844 | ||||||
Illumina, Inc.2 | 67,000 | 22,227 | ||||||
Other securities | 138,229 | |||||||
|
| |||||||
344,072 | ||||||||
|
| |||||||
Materials 8.32% | ||||||||
Vale SA, ordinary nominative | 2,881,660 | 38,182 | ||||||
Vale SA, ordinary nominative (ADR) | 1,976,000 | 26,083 | ||||||
Freeport-McMoRan Inc. | 3,945,000 | 51,758 | ||||||
Fortescue Metals Group Ltd.1 | 4,618,395 | 34,809 | ||||||
UPM-Kymmene Oyj1 | 894,000 | 30,984 | ||||||
First Quantum Minerals Ltd. | 2,305,000 | 23,377 | ||||||
Other securities | 107,595 | |||||||
|
| |||||||
312,788 | ||||||||
|
|
58 American Funds Insurance Series
Table of Contents
New World Fund
Common stocks
Shares | Value (000) | |||||||
Consumer discretionary 7.02% | ||||||||
Alibaba Group Holding Ltd.1,2 | 1,355,096 | $ | 36,032 | |||||
Alibaba Group Holding Ltd. (ADR)2 | 30,300 | 6,427 | ||||||
Melco Resorts & Entertainment Ltd. (ADR) | 931,500 | 22,514 | ||||||
Marriott International, Inc., Class A | 144,800 | 21,927 | ||||||
Other securities | 177,095 | |||||||
|
| |||||||
263,995 | ||||||||
|
| |||||||
Communication services 5.88% | ||||||||
Facebook, Inc., Class A2 | 268,000 | 55,007 | ||||||
Alphabet Inc., Class C2 | 23,220 | 31,046 | ||||||
Alphabet Inc., Class A2 | 10,000 | 13,394 | ||||||
Other securities | 121,865 | |||||||
|
| |||||||
221,312 | ||||||||
|
| |||||||
Consumer staples 5.58% | ||||||||
Kweichow Moutai Co., Ltd., Class A1 | 334,161 | 56,813 | ||||||
Nestlé SA1 | 333,296 | 36,108 | ||||||
Treasury Wine Estates Ltd.1 | 2,885,454 | 32,974 | ||||||
Other securities | 83,858 | |||||||
|
| |||||||
209,753 | ||||||||
|
| |||||||
Industrials 4.40% | ||||||||
Airbus SE,non-registered shares1 | 276,729 | 40,601 | ||||||
Shanghai International Airport Co., Ltd., Class A1 | 2,014,760 | 22,791 | ||||||
Nidec Corp.1 | 165,000 | 22,540 | ||||||
Other securities | 79,556 | |||||||
|
| |||||||
165,488 | ||||||||
|
| |||||||
Real estate 1.09% | ||||||||
Other securities | 41,216 | |||||||
|
| |||||||
Utilities 0.89% | ||||||||
Other securities | 33,336 | |||||||
|
| |||||||
Total common stocks (cost: $2,372,140,000) | 3,322,603 | |||||||
|
| |||||||
Preferred securities 1.90% | ||||||||
Industrials 0.65% | ||||||||
Azul SA, preferred nominative (ADR)2 | 433,223 | 18,542 | ||||||
Azul SA, preferred nominative2 | 419,250 | 6,074 | ||||||
|
| |||||||
24,616 | ||||||||
|
| |||||||
Other 1.25% | ||||||||
Other securities | 46,788 | |||||||
|
| |||||||
Total preferred securities (cost: $50,498,000) | 71,404 | |||||||
|
| |||||||
Rights & warrants 0.70% | ||||||||
Other 0.70% | ||||||||
Other securities | 26,479 | |||||||
|
| |||||||
Total rights & warrants (cost: $15,629,000) | 26,479 | |||||||
|
| |||||||
Principal amount (000) | ||||||||
Bonds, notes & other debt instruments 2.57% | ||||||||
Bonds & notes of governments & government agencies outside the U.S. 2.35% | ||||||||
Other securities | 88,624 | |||||||
|
|
American Funds Insurance Series 59
Table of Contents
New World Fund
Bonds, notes & other debt instruments (continued)
Principal amount (000) | Value (000) | |||||||
Corporate bonds & notes 0.22% | ||||||||
Other 0.22% | ||||||||
Other securities | $ | 8,190 | ||||||
Total corporate bonds & notes | 8,190 | |||||||
|
| |||||||
Total bonds, notes & other debt instruments (cost: $92,583,000) | 96,814 | |||||||
|
| |||||||
Short-term securities 6.56% | Shares | |||||||
Money market investments 6.35% | ||||||||
Capital Group Central Cash Fund 1.73%3 | 2,386,731 | 238,673 | ||||||
|
| |||||||
Principal amount (000) | ||||||||
Other short-term securities 0.21% | ||||||||
Other securities | 7,930 | |||||||
|
| |||||||
Total short-term securities (cost: $251,630,000) | 246,603 | |||||||
|
| |||||||
Total investment securities 100.09% (cost: $2,782,480,000) | 3,763,903 | |||||||
Other assets less liabilities (0.09)% | (3,492 | ) | ||||||
|
| |||||||
Net assets 100.00% | $ | 3,760,411 | ||||||
|
|
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 (with an aggregate value of $61,434,000, which represented 1.63% of the net assets of the fund) which were acquired in transactions exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. “Other securities“ also includes securities on loan. The total value of securities on loan was $2,679,000, which represented .07% of the net assets of the fund. Refer to Note 5 for more information on securities lending.
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 $1,928,580,000, which represented 51.29% of the net assets of the fund. This amount includes $1,899,554,000 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 | Rate represents theseven-day yield at 12/31/2019. |
Key to abbreviation
ADR = American Depositary Receipts
See notes to financial statements.
60 American Funds Insurance Series
Table of Contents
Blue Chip Income and Growth Fund
Summary investment portfolioDecember 31, 2019
Common stocks 96.37%
Shares | Value (000) | |||||||
Health care 21.60% |
| |||||||
Abbott Laboratories | 5,266,500 | $ 457,448 | ||||||
UnitedHealth Group Inc. | 1,137,000 | 334,255 | ||||||
AbbVie Inc. | 3,603,660 | 319,068 | ||||||
Amgen Inc. | 1,194,510 | 287,961 | ||||||
Gilead Sciences, Inc. | 2,845,712 | 184,914 | ||||||
Teva Pharmaceutical Industries Ltd. (ADR)1 | 10,333,800 | 101,271 | ||||||
Humana Inc. | 259,000 | 94,929 | ||||||
Medtronic PLC | 700,000 | 79,415 | ||||||
Other securities | 146,171 | |||||||
|
| |||||||
2,005,432 | ||||||||
|
| |||||||
Information technology 15.66% |
| |||||||
Microsoft Corp. | 2,469,200 | 389,393 | ||||||
QUALCOMM Inc. | 2,846,800 | 251,173 | ||||||
Broadcom Inc. | 575,100 | 181,743 | ||||||
Apple Inc. | 400,000 | 117,460 | ||||||
Mastercard Inc., Class A | 337,000 | 100,625 | ||||||
Intel Corp. | 1,680,000 | 100,548 | ||||||
Texas Instruments Inc. | 780,000 | 100,066 | ||||||
Accenture PLC, Class A | 400,000 | 84,228 | ||||||
Automatic Data Processing, Inc. | 338,500 | 57,715 | ||||||
Other securities | 70,326 | |||||||
|
| |||||||
1,453,277 | ||||||||
|
| |||||||
Energy 13.73% |
| |||||||
Exxon Mobil Corp. | 4,883,200 | 340,750 | ||||||
EOG Resources, Inc. | 3,208,800 | 268,769 | ||||||
Diamondback Energy, Inc. | 1,320,033 | 122,578 | ||||||
Schlumberger Ltd. | 2,602,000 | 104,600 | ||||||
Baker Hughes Co., Class A | 3,942,000 | 101,034 | ||||||
Concho Resources Inc. | 859,500 | 75,266 | ||||||
TC Energy Corp. | 1,350,000 | 71,969 | ||||||
Royal Dutch Shell PLC, Class B (ADR) | 1,134,000 | 68,006 | ||||||
Other securities | 121,236 | |||||||
|
| |||||||
1,274,208 | ||||||||
|
| |||||||
Consumer staples 10.82% |
| |||||||
Philip Morris International Inc. | 3,005,600 | 255,747 | ||||||
British American Tobacco PLC (ADR) | 4,935,830 | 209,575 | ||||||
Constellation Brands, Inc., Class A | 793,100 | 150,491 | ||||||
Costco Wholesale Corp. | 273,000 | 80,240 | ||||||
Coca-Cola Co. | 1,387,000 | 76,770 | ||||||
Altria Group, Inc. | 1,500,000 | 74,865 | ||||||
Other securities | 156,377 | |||||||
|
| |||||||
1,004,065 | ||||||||
|
| |||||||
Industrials 9.91% |
| |||||||
CSX Corp. | 3,628,500 | 262,558 | ||||||
General Dynamics Corp. | 1,421,634 | 250,705 | ||||||
Illinois Tool Works Inc. | 650,000 | 116,760 | ||||||
Airbus Group SE (ADR) | 2,639,000 | 96,983 | ||||||
United Technologies Corp. | 500,000 | 74,880 | ||||||
Union Pacific Corp. | 400,000 | 72,316 | ||||||
Other securities | 45,917 | |||||||
|
| |||||||
920,119 | ||||||||
|
|
American Funds Insurance Series 61
Table of Contents
Blue Chip Income and Growth Fund
Common stocks (continued)
Shares | Value (000) | |||||||
Communication services 6.88% | ||||||||
Facebook, Inc., Class A1 | 1,339,800 | $ 274,994 | ||||||
Alphabet Inc., Class A1 | 103,775 | 138,995 | ||||||
Alphabet Inc., Class C1 | 3,000 | 4,011 | ||||||
Verizon Communications Inc. | 1,604,500 | 98,516 | ||||||
Comcast Corp., Class A | 1,970,000 | 88,591 | ||||||
Other securities | 33,749 | |||||||
|
| |||||||
638,856 | ||||||||
|
| |||||||
Financials 5.12% | ||||||||
JPMorgan Chase & Co. | 1,309,000 | 182,475 | ||||||
Wells Fargo & Co. | 1,500,000 | 80,700 | ||||||
U.S. Bancorp | 1,000,000 | 59,290 | ||||||
Other securities | 152,813 | |||||||
|
| |||||||
475,278 | ||||||||
|
| |||||||
Consumer discretionary 4.87% | ||||||||
Lowe’s Cos., Inc. | 1,314,975 | 157,481 | ||||||
McDonald’s Corp. | 500,000 | 98,805 | ||||||
Other securities | 196,078 | |||||||
|
| |||||||
452,364 | ||||||||
|
| |||||||
Utilities 3.10% | ||||||||
Public Service Enterprise Group Inc. | 2,594,000 | 153,176 | ||||||
American Electric Power Co., Inc. | 600,000 | 56,706 | ||||||
Other securities | 78,146 | |||||||
|
| |||||||
288,028 | ||||||||
|
| |||||||
Real estate 2.35% | ||||||||
Other securities | 217,896 | |||||||
|
| |||||||
Materials 2.33% | ||||||||
Linde PLC | 884,700 | 188,353 | ||||||
Other securities | 27,638 | |||||||
|
| |||||||
215,991 | ||||||||
|
| |||||||
Total common stocks (cost: $6,823,043,000) | 8,945,514 | |||||||
|
| |||||||
Rights & warrants 0.14% | ||||||||
Financials 0.14% | ||||||||
Other securities | 13,179 | |||||||
|
| |||||||
Total rights & warrants (cost: $19,905,000) | 13,179 | |||||||
|
| |||||||
Convertible stocks 0.06% | ||||||||
Health care 0.06% | ||||||||
Other securities | 5,777 | |||||||
|
| |||||||
Total convertible stocks (cost: $4,979,000) | 5,777 | |||||||
|
|
62 American Funds Insurance Series
Table of Contents
Blue Chip Income and Growth Fund
Short-term securities 3.37%
Shares | Value (000) | |||||||
Money market investments 3.37% | ||||||||
Capital Group Central Cash Fund 1.73%2 | 3,124,623 | $ | 312,462 | |||||
|
| |||||||
Total short-term securities (cost: $312,432,000) | 312,462 | |||||||
|
| |||||||
Total investment securities 99.94% (cost: $7,160,359,000) | 9,276,932 | |||||||
Other assets less liabilities 0.06% | 5,429 | |||||||
|
| |||||||
Net assets 100.00% | $ | 9,282,361 | ||||||
|
|
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 | Rate represents theseven-day yield at 12/31/2019. |
Key to abbreviation
ADR = American Depositary Receipts
See notes to financial statements.
American Funds Insurance Series 63
Table of Contents
Summary investment portfolioDecember 31, 2019
Common stocks 96.65%
Shares | Value (000) | |||||||
Information technology 15.69% | ||||||||
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 8,650,800 | $ | 95,803 | |||||
Microsoft Corp. | 281,000 | 44,314 | ||||||
PagSeguro Digital Ltd., Class A2 | 1,128,752 | 38,558 | ||||||
Broadcom Inc. | 121,200 | 38,302 | ||||||
Apple Inc. | 112,390 | 33,003 | ||||||
ASML Holding NV1 | 70,000 | 20,847 | ||||||
Other securities | 64,750 | |||||||
|
| |||||||
335,577 | ||||||||
|
| |||||||
Industrials 12.59% | ||||||||
Airbus SE,non-registered shares1 | 623,200 | 91,434 | ||||||
CCR SA, ordinary nominative | 7,680,800 | 36,240 | ||||||
Lockheed Martin Corp. | 66,000 | 25,699 | ||||||
Safran SA1 | 123,500 | 19,144 | ||||||
Rheinmetall AG1 | 151,500 | 17,422 | ||||||
Boeing Co. | 49,400 | 16,093 | ||||||
Other securities | 63,201 | |||||||
|
| |||||||
269,233 | ||||||||
|
| |||||||
Financials 11.87% | ||||||||
Sberbank of Russia PJSC (ADR)1 | 1,710,000 | 28,136 | ||||||
AIA Group Ltd.1 | 2,503,000 | 26,336 | ||||||
HDFC Bank Ltd.1 | 1,288,000 | 22,955 | ||||||
Toronto-Dominion Bank (CAD denominated) | 300,700 | 16,865 | ||||||
DBS Group Holdings Ltd.1 | 803,000 | 15,478 | ||||||
Ping An Insurance (Group) Co. of China, Ltd., Class H1 | 1,195,000 | 14,156 | ||||||
CME Group Inc., Class A | 70,000 | 14,050 | ||||||
Sony Financial Holdings Inc.1 | 550,000 | 13,165 | ||||||
Other securities | 102,601 | |||||||
|
| |||||||
253,742 | ||||||||
|
| |||||||
Consumer discretionary 9.58% | ||||||||
LVMH Moët Hennessy-Louis Vuitton SE1 | 56,200 | 26,174 | ||||||
Home Depot, Inc. | 75,500 | 16,488 | ||||||
Norwegian Cruise Line Holdings Ltd.2 | 275,000 | 16,063 | ||||||
Flutter Entertainment PLC1 | 124,000 | 15,143 | ||||||
Alibaba Group Holding Ltd.1,2 | 558,400 | 14,848 | ||||||
Other securities | 116,164 | |||||||
|
| |||||||
204,880 | ||||||||
|
| |||||||
Health care 9.36% | ||||||||
UnitedHealth Group Inc. | 86,300 | 25,370 | ||||||
AstraZeneca PLC1 | 167,000 | 16,708 | ||||||
Boston Scientific Corp.2 | 351,000 | 15,872 | ||||||
Merck & Co., Inc. | 169,850 | 15,448 | ||||||
Abbott Laboratories | 171,000 | 14,853 | ||||||
Novartis AG1 | 148,000 | 14,022 | ||||||
Fleury SA, ordinary nominative | 1,750,000 | 13,281 | ||||||
Other securities | 84,510 | |||||||
|
| |||||||
200,064 | ||||||||
|
| |||||||
Communication services 8.45% | ||||||||
Nintendo Co., Ltd.1 | 235,700 | 95,140 | ||||||
Alphabet Inc., Class A2 | 21,800 | 29,199 | ||||||
Alphabet Inc., Class C2 | 7,000 | 9,359 | ||||||
Comcast Corp., Class A | 296,000 | 13,311 | ||||||
Other securities | 33,697 | |||||||
|
| |||||||
180,706 | ||||||||
|
|
64 American Funds Insurance Series
Table of Contents
Global Growth and Income Fund
Common stocks
Shares | Value (000) | |||||||
Materials 7.57% | ||||||||
Fortescue Metals Group Ltd.1 | 4,763,816 | $ | 35,905 | |||||
Freeport-McMoRan Inc. | 2,499,000 | 32,787 | ||||||
Vale SA, ordinary nominative | 2,220,000 | 29,415 | ||||||
Koninklijke DSM NV1 | 109,000 | 14,228 | ||||||
Other securities | 49,629 | |||||||
|
| |||||||
161,964 | ||||||||
|
| |||||||
Energy 6.53% | ||||||||
Reliance Industries Ltd.1 | 2,714,148 | 57,652 | ||||||
Gazprom PJSC (ADR)1 | 3,431,000 | 28,254 | ||||||
Other securities | 53,777 | |||||||
|
| |||||||
139,683 | ||||||||
|
| |||||||
Utilities 5.79% | ||||||||
E.ON SE1 | 3,644,000 | 38,972 | ||||||
Ørsted AS1 | 345,482 | 35,794 | ||||||
Enel SpA1 | 3,539,000 | 28,154 | ||||||
Other securities | 20,931 | |||||||
|
| |||||||
123,851 | ||||||||
|
| |||||||
Real estate 5.19% | ||||||||
MGM Growth Properties LLC REIT, Class A | 1,101,200 | 34,104 | ||||||
Gaming and Leisure Properties, Inc. REIT | 425,000 | 18,296 | ||||||
Alexandria Real Estate Equities, Inc. REIT | 103,000 | 16,643 | ||||||
Other securities | 42,014 | |||||||
|
| |||||||
111,057 | ||||||||
|
| |||||||
Consumer staples 4.03% | ||||||||
Nestlé SA1 | 324,275 | 35,131 | ||||||
Other securities | 50,996 | |||||||
|
| |||||||
86,127 | ||||||||
|
| |||||||
Total common stocks(cost: $1,433,746,000) | 2,066,884 | |||||||
|
| |||||||
Preferred securities 0.37% | ||||||||
Financials 0.37% | ||||||||
Other securities | 7,892 | |||||||
|
| |||||||
Total preferred securities (cost: $6,929,000) | 7,892 | |||||||
|
| |||||||
Bonds, notes & other debt instruments 1.63% | ||||||||
Principal (000) | ||||||||
Corporate bonds & notes 1.63% | ||||||||
Communication services 1.63% | ||||||||
Sprint Corp. 7.25% 2021 | $ | 33,000 | 34,957 | |||||
|
| |||||||
Total bonds, notes & other debt instruments (cost: $32,020,000) | 34,957 | |||||||
|
| |||||||
Short-term securities 1.34%
| ||||||||
Shares | ||||||||
Money market investments 1.34% | ||||||||
Capital Group Central Cash Fund 1.73%3 | 285,611 | 28,561 | ||||||
|
| |||||||
Total short-term securities (cost: $28,489,000) | 28,561 | |||||||
|
| |||||||
Total investment securities 99.99% (cost: $1,501,184,000) | 2,138,294 | |||||||
Other assets less liabilities 0.01% | 189 | |||||||
|
| |||||||
Net assets 100.00% | $ | 2,138,483 | ||||||
|
|
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 depreciation | |||||||||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | at 12/31/2019 (000) | ||||||||||||
USD 7,235 | AUD 10,500 | Citibank | 1/17/2020 | $ | (137 | ) |
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 $1,146,095,000, which represented 53.59% of the net assets of the fund. This entire amount relates to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Security did not produce income during the last 12 months. |
3 | Rate represents theseven-day yield at 12/31/2019. |
Key to abbreviations and symbol
ADR = American Depositary Receipts
AUD = Australian dollars
CAD = Canadian dollars
USD/$ = U.S. dollars
See notes to financial statements.
66 American Funds Insurance Series
Table of Contents
Summary investment portfolioDecember 31, 2019
Common stocks 94.10%
Shares | Value (000) | |||||||
Health care 16.21% |
| |||||||
UnitedHealth Group Inc. | 3,133,668 | $ | 921,236 | |||||
Abbott Laboratories | 6,789,069 | 589,698 | ||||||
Amgen Inc. | 2,000,500 | 482,261 | ||||||
Gilead Sciences, Inc. | 6,917,600 | 449,506 | ||||||
Eli Lilly and Co. | 2,892,600 | 380,174 | ||||||
Merck & Co., Inc. | 3,338,880 | 303,671 | ||||||
Cigna Corp. | 1,327,418 | 271,444 | ||||||
AstraZeneca PLC1 | 1,643,500 | 164,430 | ||||||
AstraZeneca PLC (ADR) | 1,228,600 | 61,258 | ||||||
Other securities | 2,215,742 | |||||||
|
| |||||||
5,839,420 | ||||||||
|
| |||||||
Information technology 15.04% |
| |||||||
Microsoft Corp. | 9,454,500 | 1,490,975 | ||||||
Broadcom Inc. | 2,152,434 | 680,212 | ||||||
Intel Corp. | 6,651,600 | 398,098 | ||||||
Texas Instruments Inc. | 2,127,082 | 272,883 | ||||||
Accenture PLC, Class A | 1,067,900 | 224,868 | ||||||
Visa Inc., Class A | 1,160,200 | 218,002 | ||||||
Mastercard Inc., Class A | 710,000 | 211,999 | ||||||
Other securities | 1,923,211 | |||||||
|
| |||||||
5,420,248 | ||||||||
|
| |||||||
Communication services 12.02% |
| |||||||
Facebook, Inc., Class A2 | 6,826,100 | 1,401,057 | ||||||
Netflix, Inc.2 | 2,352,425 | 761,174 | ||||||
Alphabet Inc., Class C2 | 296,784 | 396,806 | ||||||
Alphabet Inc., Class A2 | 247,980 | 332,142 | ||||||
Comcast Corp., Class A | 6,693,400 | 301,002 | ||||||
Charter Communications, Inc., Class A2 | 438,369 | 212,644 | ||||||
Verizon Communications Inc. | 3,379,400 | 207,495 | ||||||
Other securities | 719,670 | |||||||
|
| |||||||
4,331,990 | ||||||||
|
| |||||||
Financials 10.86% |
| |||||||
JPMorgan Chase & Co. | 4,005,030 | 558,301 | ||||||
CME Group Inc., Class A | 1,642,100 | 329,602 | ||||||
Intercontinental Exchange, Inc. | 3,183,555 | 294,638 | ||||||
Willis Towers Watson PLC | 1,314,000 | 265,349 | ||||||
Aon PLC, Class A | 1,214,800 | 253,031 | ||||||
Nasdaq, Inc. | 2,129,600 | 228,080 | ||||||
Bank of New York Mellon Corp. | 4,159,300 | 209,338 | ||||||
Other securities | 1,773,710 | |||||||
|
| |||||||
3,912,049 | ||||||||
|
| |||||||
Industrials 10.57% |
| |||||||
Airbus SE,non-registered shares1 | 2,904,564 | 426,151 | ||||||
BWX Technologies, Inc.3 | 5,414,670 | 336,143 | ||||||
TransDigm Group Inc. | 578,800 | 324,128 | ||||||
Northrop Grumman Corp. | 733,200 | 252,199 | ||||||
General Dynamics Corp. | 1,381,600 | 243,645 | ||||||
Equifax Inc. | 1,386,600 | 194,290 | ||||||
Other securities | 2,031,239 | |||||||
|
| |||||||
3,807,795 | ||||||||
|
|
American Funds Insurance Series 67
Table of Contents
Growth-Income Fund
Common stocks (continued)
Shares | Value (000) | |||||||
Consumer staples 7.10% | ||||||||
Coca-Cola Co. | 7,316,100 | $ | 404,946 | |||||
British American Tobacco PLC1 | 8,069,260 | 343,793 | ||||||
British American Tobacco PLC (ADR) | 479,440 | 20,357 | ||||||
Keurig Dr Pepper Inc. | 7,241,735 | 209,648 | ||||||
Carlsberg A/S, Class B1 | 1,390,224 | 207,388 | ||||||
Other securities | 1,372,011 | |||||||
|
| |||||||
2,558,143 | ||||||||
|
| |||||||
Energy 6.94% | ||||||||
Exxon Mobil Corp. | 6,274,200 | 437,814 | ||||||
EOG Resources, Inc. | 3,943,800 | 330,333 | ||||||
Chevron Corp. | 2,485,800 | 299,564 | ||||||
Enbridge Inc. (CAD denominated) | 7,486,412 | 297,658 | ||||||
Canadian Natural Resources, Ltd. (CAD denominated) | 8,803,800 | 284,748 | ||||||
Other securities | 849,638 | |||||||
|
| |||||||
2,499,755 | ||||||||
|
| |||||||
Consumer discretionary 5.06% | ||||||||
Amazon.com, Inc.2 | 297,400 | 549,548 | ||||||
Other securities | 1,274,385 | |||||||
|
| |||||||
1,823,933 | ||||||||
|
| |||||||
Materials 4.83% | ||||||||
Celanese Corp. | 3,243,233 | 399,307 | ||||||
Linde PLC | 1,152,000 | 245,261 | ||||||
Other securities | 1,096,901 | |||||||
|
| |||||||
1,741,469 | ||||||||
|
| |||||||
Real estate 2.97% | ||||||||
Equinix, Inc. REIT | 533,800 | 311,579 | ||||||
Crown Castle International Corp. REIT | 2,071,500 | 294,464 | ||||||
Other securities | 462,520 | |||||||
|
| |||||||
1,068,563 | ||||||||
|
| |||||||
Utilities 2.45% | ||||||||
Sempra Energy | 1,784,000 | 270,241 | ||||||
Other securities | 610,705 | |||||||
|
| |||||||
880,946 | ||||||||
|
| |||||||
Mutual funds 0.05% | ||||||||
Other securities | 16,337 | |||||||
|
| |||||||
Total common stocks (cost: $23,281,968,000) | 33,900,648 | |||||||
|
| |||||||
Convertible stocks 0.51% | ||||||||
Real estate 0.24% | ||||||||
Crown Castle International Corp. REIT, Series A, convertible preferred, 6.875% 2020 | 67,900 | 87,030 | ||||||
|
| |||||||
Health care 0.16% | ||||||||
Other securities | 58,952 | |||||||
|
| |||||||
Information technology 0.11% | ||||||||
Broadcom Inc., Series A, cumulative convertible preferred, 8.00% 2022 | 32,900 | 38,755 | ||||||
|
| |||||||
Total convertible stocks(cost: $162,141,000) | 184,737 | |||||||
|
|
68 American Funds Insurance Series
Table of Contents
Growth-Income Fund
Bonds, notes & other debt instruments 0.02%
Principal amount (000) | Value (000) | |||||||
Corporate bonds & notes 0.02% | ||||||||
Energy 0.02% | ||||||||
Other securities | $ | 5,722 | ||||||
|
| |||||||
Total bonds, notes & other debt instruments (cost: $5,266,000) | 5,722 | |||||||
|
| |||||||
Shares | ||||||||
Short-term securities 5.39% | ||||||||
Money market investments 5.39% | ||||||||
Capital Group Central Cash Fund 1.73%4 | 19,405,997 | 1,940,600 | ||||||
|
| |||||||
Total short-term securities (cost: $1,939,508,000) | 1,940,600 | |||||||
|
| |||||||
Total investment securities 100.02% (cost: $25,388,883,000) | 36,031,707 | |||||||
Other assets less liabilities (0.02)% | (5,441 | ) | ||||||
|
| |||||||
Net assets 100.00% | $ | 36,026,266 | ||||||
|
|
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 a security (with a value of $5,722,000, which represented .02% of the net assets of the fund) which was acquired in transactions exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers.
Investments in affiliates
A company is an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings represent 5% or more of the outstanding voting shares of that company. 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, 2019, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized loss (000) | Net unrealized appreciation (000) | Dividend income (000) | Value of affiliates at 12/31/2019 (000) | |||||||||||||||||||||||||
Common stocks 0.93% | ||||||||||||||||||||||||||||||||
Industrials 0.93% | ||||||||||||||||||||||||||||||||
BWX Technologies, Inc. | 5,290,948 | 489,900 | 366,178 | 5,414,670 | $ | (1,021 | ) | $ | 128,124 | $ | 3,592 | $ | 336,143 |
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 $3,637,561,000, which represented 10.10% of the net assets of the fund. This amount includes $3,621,224,000 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 | Represents an affiliated company as defined under the Investment Company Act of 1940. |
4 | Rate represents theseven-day yield at 12/31/2019. |
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, 2019
Common stocks 88.41%
Shares | Value (000) | |||||||
Financials 16.74% |
| |||||||
HDFC Bank Ltd.1 | 2,457,600 | $ | 43,799 | |||||
Zurich Insurance Group AG1 | 92,200 | 37,815 | ||||||
AIA Group Ltd.1 | 2,338,600 | 24,606 | ||||||
Banco Santander, SA1 | 4,834,538 | 20,413 | ||||||
ING Groep NV1 | 1,367,000 | 16,429 | ||||||
Sony Financial Holdings Inc.1 | 660,400 | 15,808 | ||||||
Prudential PLC1 | 738,000 | 14,200 | ||||||
Bank Rakyat Indonesia (Persero) Tbk PT1 | 43,843,000 | 13,837 | ||||||
DBS Group Holdings Ltd.1 | 558,000 | 10,756 | ||||||
Haci Ömer Sabanci Holding AS1 | 6,520,900 | 10,463 | ||||||
Other securities | 43,052 | |||||||
|
| |||||||
251,178 | ||||||||
|
| |||||||
Industrials 10.95% |
| |||||||
Airbus SE,non-registered shares1 | 216,160 | 31,715 | ||||||
Shanghai International Airport Co., Ltd., Class A1 | 2,590,033 | 29,298 | ||||||
ASSA ABLOY AB, Class B1 | 681,100 | 15,916 | ||||||
Komatsu Ltd.1 | 629,600 | 15,095 | ||||||
Airports of Thailand PCL, foreign registered1 | 5,250,000 | 12,974 | ||||||
SMC Corp.1 | 23,300 | 10,651 | ||||||
Adani Ports & Special Economic Zone Ltd.1 | 1,975,327 | 10,135 | ||||||
Other securities | 38,511 | |||||||
|
| |||||||
164,295 | ||||||||
|
| |||||||
Consumer discretionary 10.51% |
| |||||||
Luckin Coffee Inc., Class A (ADR)2 | 987,340 | 38,862 | ||||||
Sony Corp.1 | 430,000 | 29,269 | ||||||
LVMH Moët Hennessy-Louis Vuitton SE1 | 48,000 | 22,355 | ||||||
Kering SA1 | 29,000 | 19,104 | ||||||
Galaxy Entertainment Group Ltd.1 | 2,365,000 | 17,432 | ||||||
Alibaba Group Holding Ltd. (ADR)2 | 79,100 | 16,777 | ||||||
Other securities | 13,788 | |||||||
|
| |||||||
157,587 | ||||||||
|
| |||||||
Health care 9.46% |
| |||||||
Novartis AG1 | 502,545 | 47,612 | ||||||
Daiichi Sankyo Co., Ltd.1 | 561,000 | 37,044 | ||||||
Takeda Pharmaceutical Co. Ltd.1 | 518,353 | 20,536 | ||||||
Fresenius SE & Co. KGaA1 | 275,800 | 15,568 | ||||||
Other securities | 21,085 | |||||||
|
| |||||||
141,845 | ||||||||
|
| |||||||
Energy 7.44% |
| |||||||
Royal Dutch Shell PLC, Class A (GBP denominated)1 | 2,147,691 | 63,839 | ||||||
Royal Dutch Shell PLC, Class B1 | 138,000 | 4,112 | ||||||
TOTAL SA1 | 404,534 | 22,356 | ||||||
Canadian Natural Resources, Ltd. (CAD denominated) | 272,500 | 8,814 | ||||||
Canadian Natural Resources, Ltd. | 92,000 | 2,976 | ||||||
Other securities | 9,504 | |||||||
|
| |||||||
111,601 | ||||||||
|
| |||||||
Utilities 6.31% |
| |||||||
E.ON SE1 | 3,488,000 | 37,304 | ||||||
ENN Energy Holdings Ltd.1 | 1,658,000 | 18,128 | ||||||
Other securities | 39,281 | |||||||
|
| |||||||
94,713 | ||||||||
|
|
70 American Funds Insurance Series
Table of Contents
International Growth and Income Fund
Common stocks
Shares | Value (000) | |||||||
Materials 6.11% | ||||||||
Rio Tinto PLC1 | 658,800 | $ | 39,144 | |||||
Kansai Paint Co., Ltd.1 | 512,000 | 12,514 | ||||||
Air Liquide SA,non-registered shares1 | 79,200 | 11,256 | ||||||
Other securities | 28,698 | |||||||
|
| |||||||
91,612 | ||||||||
|
| |||||||
Information technology 5.64% | ||||||||
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 2,804,000 | 31,053 | ||||||
Tokyo Electron Ltd.1 | 96,500 | 21,206 | ||||||
ASML Holding NV1 | 47,800 | 14,235 | ||||||
Samsung Electronics Co., Ltd.1 | 259,000 | 12,480 | ||||||
Other securities | 5,577 | |||||||
|
| |||||||
84,551 | ||||||||
|
| |||||||
Consumer staples 5.21% | ||||||||
British American Tobacco PLC1 | 548,402 | 23,365 | ||||||
Pernod Ricard SA1 | 128,650 | 23,029 | ||||||
Coca-Cola Icecek AS, Class C1 | 2,631,000 | 17,131 | ||||||
Other securities | 14,657 | |||||||
|
| |||||||
78,182 | ||||||||
|
| |||||||
Communication services 5.15% | ||||||||
Singapore Telecommunications Ltd.1 | 9,429,449 | 23,646 | ||||||
SoftBank Group Corp.1 | 487,600 | 21,229 | ||||||
Yandex NV, Class A2 | 470,000 | 20,440 | ||||||
Other securities | 12,003 | |||||||
|
| |||||||
77,318 | ||||||||
|
| |||||||
Real estate 4.89% | ||||||||
Sun Hung Kai Properties Ltd.1 | 2,061,500 | 31,622 | ||||||
CK Asset Holdings Ltd.1 | 2,626,000 | 19,032 | ||||||
China Overseas Land & Investment Ltd.1 | 3,944,000 | 15,403 | ||||||
Other securities | 7,322 | |||||||
|
| |||||||
73,379 | ||||||||
|
| |||||||
Total common stocks (cost: $1,069,560,000) | 1,326,261 | |||||||
|
| |||||||
Preferred securities 2.10% | ||||||||
Financials 1.83% | ||||||||
Itaú Unibanco Holding SA, preferred nominative (ADR) | 2,993,550 | 27,391 | ||||||
|
| |||||||
Energy 0.27% | ||||||||
Other securities | 4,072 | |||||||
|
| |||||||
Total preferred securities (cost: $26,377,000) | 31,463 | |||||||
|
| |||||||
Bonds, notes & other debt instruments 1.12% | ||||||||
Principal amount (000) | ||||||||
Bonds & notes of governments & government agencies outside the U.S. 0.58% | ||||||||
Other securities | 8,743 | |||||||
|
| |||||||
Corporate bonds & notes 0.54% | ||||||||
Other 0.54% | ||||||||
Other securities | 8,076 | |||||||
|
| |||||||
Total bonds, notes & other debt instruments (cost: $15,646,000) | 16,819 | |||||||
|
|
American Funds Insurance Series 71
Table of Contents
International Growth and Income Fund
Short-term securities 8.54%
Shares | Value (000) | |||||||
Money market investments 8.54% | ||||||||
Capital Group Central Cash Fund 1.73%3 | 1,280,263 | $ | 128,026 | |||||
|
| |||||||
Total short-term securities(cost: $127,980,000) | 128,026 | |||||||
|
| |||||||
Total investment securities 100.17% (cost: $1,239,563,000) | 1,502,569 | |||||||
Other assets less liabilities (0.17)% | (2,483 | ) | ||||||
|
| |||||||
Net assets 100.00% | $ | 1,500,086 | ||||||
|
|
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 a security (with a value of $1,931,000, which represented .13% of the net assets of the fund) which was acquired in transactions exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers.
Forward currency contracts
Contract amount | Unrealized depreciation | |||||||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | at 12/31/2019 (000) | ||||||||||
USD | 1,609 | GBP | 1,223 | Bank of America | 1/9/2020 | $ | (11 | ) |
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 $1,211,171,000, which represented 80.74% of the net assets of the fund. This entire amount relates to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Security did not produce income during the last 12 months. |
3 | Rate represents theseven-day yield at 12/31/2019. |
Key to abbreviations and symbol
ADR = American Depositary Receipts
CAD = Canadian dollars
GBP = British pounds
USD/$ = U.S. dollars
See notes to financial statements.
72 American Funds Insurance Series
Table of Contents
Summary investment portfolioDecember 31, 2019
Common stocks 68.57%
Shares | Value (000) | |||||||
Consumer staples 10.33% | ||||||||
Philip Morris International Inc. | 188,220 | $ | 16,016 | |||||
British American Tobacco PLC1 | 307,500 | 13,101 | ||||||
Diageo PLC1 | 303,200 | 12,777 | ||||||
Coca-Cola Co. | 225,000 | 12,454 | ||||||
Carlsberg A/S, Class B1 | 72,426 | 10,804 | ||||||
Altria Group, Inc. | 205,470 | 10,255 | ||||||
Nestlé SA1 | 69,277 | 7,505 | ||||||
Imperial Brands PLC1 | 291,600 | 7,225 | ||||||
Other securities | 13,015 | |||||||
|
| |||||||
103,152 | ||||||||
|
| |||||||
Information technology 9.62% | ||||||||
Microsoft Corp. | 119,020 | 18,769 | ||||||
Broadcom Inc. | 51,500 | 16,275 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 1,366,800 | 15,137 | ||||||
Intel Corp. | 221,100 | 13,233 | ||||||
QUALCOMM Inc. | 123,400 | 10,888 | ||||||
Other securities | 21,730 | |||||||
|
| |||||||
96,032 | ||||||||
|
| |||||||
Financials 8.43% | ||||||||
CME Group Inc., Class A | 66,166 | 13,281 | ||||||
Zurich Insurance Group AG1 | 31,098 | 12,755 | ||||||
JPMorgan Chase & Co. | 72,900 | 10,162 | ||||||
Truist Financial Corp. | 152,006 | 8,561 | ||||||
Sampo Oyj, Class A1 | 153,061 | 6,678 | ||||||
Swedbank AB, Class A1 | 419,333 | 6,254 | ||||||
Other securities | 26,516 | |||||||
|
| |||||||
84,207 | ||||||||
|
| |||||||
Real estate 7.88% | ||||||||
American Tower Corp. REIT | 81,369 | 18,700 | ||||||
Crown Castle International Corp. REIT | 130,300 | 18,522 | ||||||
Link Real Estate Investment Trust REIT1 | 848,000 | 9,003 | ||||||
CK Asset Holdings Ltd.1 | 971,500 | 7,041 | ||||||
Other securities | 25,386 | |||||||
|
| |||||||
78,652 | ||||||||
|
| |||||||
Energy 6.06% | ||||||||
Royal Dutch Shell PLC, Class B1 | 661,840 | 19,721 | ||||||
Royal Dutch Shell PLC, Class B (ADR) | 8,500 | 510 | ||||||
Royal Dutch Shell PLC, Class A (GBP denominated)1 | 101 | 3 | ||||||
Enbridge Inc. (CAD denominated) | 458,570 | 18,233 | ||||||
Chevron Corp. | 57,700 | 6,953 | ||||||
Other securities | 15,110 | |||||||
|
| |||||||
60,530 | ||||||||
|
| |||||||
Health care 5.32% | ||||||||
AstraZeneca PLC1 | 123,900 | 12,396 | ||||||
AstraZeneca PLC (ADR) | 145,100 | 7,235 | ||||||
GlaxoSmithKline PLC1 | 541,100 | 12,730 | ||||||
Pfizer Inc. | 207,500 | 8,130 | ||||||
Other securities | 12,654 | |||||||
|
| |||||||
53,145 | ||||||||
|
| |||||||
Communication services 4.89% | ||||||||
Vodafone Group PLC1 | 6,536,800 | 12,690 | ||||||
Koninklijke KPN NV1 | 2,808,662 | 8,299 | ||||||
Nippon Telegraph and Telephone Corp.1 | 263,000 | 6,662 | ||||||
Other securities | 21,142 | |||||||
|
| |||||||
48,793 | ||||||||
|
|
American Funds Insurance Series 73
Table of Contents
Capital Income Builder
Common stocks (continued)
Shares | Value (000) | |||||||
Utilities 4.80% | ||||||||
Enel SpA1 | 2,008,308 | $ | 15,977 | |||||
Edison International | 159,800 | 12,050 | ||||||
SSE PLC1 | 339,756 | 6,510 | ||||||
Other securities | 13,413 | |||||||
|
| |||||||
47,950 | ||||||||
|
| |||||||
Industrials 4.52% | ||||||||
Airbus SE,non-registered shares1 | 92,765 | 13,610 | ||||||
Boeing Co. | 21,750 | 7,085 | ||||||
BOC Aviation Ltd.1 | 646,700 | 6,570 | ||||||
Other securities | 17,891 | |||||||
|
| |||||||
45,156 | ||||||||
|
| |||||||
Consumer discretionary 4.07% | ||||||||
Las Vegas Sands Corp. | 195,000 | 13,463 | ||||||
Sands China Ltd.1 | 1,782,000 | 9,556 | ||||||
Other securities | 17,667 | |||||||
|
| |||||||
40,686 | ||||||||
|
| |||||||
Materials 2.65% | ||||||||
Dow Inc. | 164,133 | 8,983 | ||||||
Other securities | 17,517 | |||||||
|
| |||||||
26,500 | ||||||||
|
| |||||||
Total common stocks (cost: $597,003,000) | 684,803 | |||||||
|
| |||||||
Rights & warrants 0.00% | ||||||||
Energy 0.00% | ||||||||
Other securities | — | 2 | ||||||
|
| |||||||
Total rights & warrants (cost: $1,000) | — | 2 | ||||||
|
| |||||||
Convertible stocks 1.61% | ||||||||
Utilities 0.74% | ||||||||
Sempra Energy, Series A, convertible preferred, 6.00% 2021 | 61,600 | 7,393 | ||||||
|
| |||||||
Information technology 0.46% | ||||||||
Broadcom Inc., Series A, cumulative convertible preferred, 8.00% 2022 | 3,900 | 4,594 | ||||||
|
| |||||||
Real estate 0.41% | ||||||||
Crown Castle International Corp. REIT, Series A, convertible preferred, 6.875% 2020 | 3,150 | 4,038 | ||||||
|
| |||||||
Total convertible stocks(cost: $13,498,000) | 16,025 | |||||||
|
| |||||||
Bonds, notes & other debt instruments 21.35%
| ||||||||
Principal amount (000) | ||||||||
U.S. Treasury bonds & notes 10.37% | ||||||||
U.S. Treasury 9.79% | ||||||||
U.S. Treasury 1.75% 2020 | $ | 8,000 | 8,008 | |||||
U.S. Treasury 2.00% 20223 | 15,000 | 15,159 | ||||||
U.S. Treasury 2.125% 2022 | 8,800 | 8,931 | ||||||
U.S. Treasury 2.00% 2025 | 13,200 | 13,384 | ||||||
U.S. Treasury 1.875% 2026 | 6,300 | 6,331 | ||||||
U.S. Treasury 2.00% 2026 | 7,500 | 7,588 | ||||||
U.S. Treasury 0%-3.13% 2021-20493 | 40,841 | 38,435 | ||||||
|
| |||||||
97,836 | ||||||||
|
|
74 American Funds Insurance Series
Table of Contents
Capital Income Builder
Bonds, notes & other debt instruments
Principal amount | Value (000) | |||||||
U.S. Treasury inflation-protected securities 0.58% | ||||||||
U.S. Treasury Inflation-Protected Securities 0.50%-0.63% 2023-20284 | $ | 5,698 | $ | 5,788 | ||||
|
| |||||||
Total U.S. Treasury bonds & notes | 103,624 | |||||||
|
| |||||||
Corporate bonds & notes 4.87% | ||||||||
Utilities 0.85% | ||||||||
Edison International 3.55%-5.75% 2024-2028 | 865 | 903 | ||||||
Southern California Edison Co. 3.60%-4.13% 2028-2048 | 694 | 720 | ||||||
Other securities | 6,900 | |||||||
|
| |||||||
8,523 | ||||||||
|
| |||||||
Consumer staples 0.69% | ||||||||
Altria Group, Inc. 5.95% 2049 | 327 | 396 | ||||||
British American Tobacco PLC 3.22%-4.76% 2026-2049 | 1,190 | 1,211 | ||||||
Philip Morris International Inc. 3.375% 2029 | 450 | 472 | ||||||
Other securities | 4,829 | |||||||
|
| |||||||
6,908 | ||||||||
|
| |||||||
Financials 0.68% | ||||||||
JPMorgan Chase & Co. 2.739% 2030(USD-SOFR + 1.51% on 10/15/2029)5 | 246 | 246 | ||||||
Other securities | 6,580 | |||||||
|
| |||||||
6,826 | ||||||||
|
| |||||||
Information technology 0.65% | ||||||||
Broadcom Inc. 4.75% 20296 | 490 | 536 | ||||||
Broadcom Ltd. 3.875% 2027 | 370 | 384 | ||||||
Microsoft Corp. 1.55%-2.40% 2021-2022 | 1,505 | 1,519 | ||||||
Other securities | 4,008 | |||||||
|
| |||||||
6,447 | ||||||||
|
| |||||||
Health care 0.53% | ||||||||
AstraZeneca PLC 3.375% 2025 | 200 | 212 | ||||||
Other securities | 5,106 | |||||||
|
| |||||||
5,318 | ||||||||
|
| |||||||
Energy 0.41% | ||||||||
Enbridge Energy Partners, LP 7.375% 2045 | 73 | 109 | ||||||
Shell International Finance BV 2.00% 2024 | 420 | 419 | ||||||
Other securities | 3,548 | |||||||
|
| |||||||
4,076 | ||||||||
|
| |||||||
Communication services 0.30% | ||||||||
Vodafone Group PLC 4.25% 2050 | 75 | 79 | ||||||
Other securities | 2,904 | |||||||
|
| |||||||
2,983 | ||||||||
|
| |||||||
Other 0.76% | ||||||||
Other securities | 7,557 | |||||||
|
| |||||||
Total corporate bonds & notes | 48,638 | |||||||
|
| |||||||
Mortgage-backed obligations 4.64% | ||||||||
Federal agency mortgage-backed obligations 4.13% | ||||||||
Freddie Mac 3.01%-3.50% 2045-20497,8 | 13,624 | 13,995 | ||||||
Other securities | 27,245 | |||||||
|
| |||||||
41,240 | ||||||||
|
|
American Funds Insurance Series 75
Table of Contents
Capital Income Builder
Bonds, notes & other debt instruments (continued)
Principal amount (000) | Value (000) | |||||||
Mortgage-backed obligations (continued) | ||||||||
Collateralized mortgage-backed obligations (privately originated) 0.51% | ||||||||
Other securities | $ | 5,082 | ||||||
|
| |||||||
Total mortgage-backed obligations | 46,322 | |||||||
|
| |||||||
Asset-backed obligations 1.43% | ||||||||
Ford Credit Auto Owner Trust, Series2015-1, Class A, 2.12% 20266,7 | $ | 6,959 | 6,959 | |||||
Other securities | 7,310 | |||||||
|
| |||||||
Total asset-backed obligations | 14,269 | |||||||
|
| |||||||
Municipals 0.04% | ||||||||
Other securities | 415 | |||||||
|
| |||||||
Total bonds, notes & other debt instruments (cost: $208,835,000) | 213,268 | |||||||
|
| |||||||
Short-term securities 7.66%
| ||||||||
Shares | ||||||||
Money market investments 7.66% | ||||||||
Capital Group Central Cash Fund 1.73%9 | 765,198 | 76,520 | ||||||
|
| |||||||
Total short-term securities(cost: $76,393,000) | 76,520 | |||||||
|
| |||||||
Total investment securities 99.19%(cost: $895,730,000) | 990,616 | |||||||
Other assets less liabilities 0.81% | 8,100 | |||||||
|
| |||||||
Net assets 100.00% | $ | 998,716 | ||||||
|
|
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 12/31/201911 (000) | Unrealized (depreciation) appreciation at 12/31/2019 (000) | ||||||||||||||
2 Year U.S. Treasury Note Futures | Long | 422 | April 2020 | $ | 84,400 | $ | 90,941 | $ | (41 | ) | ||||||||||
5 Year U.S. Treasury Note Futures | Short | 50 | April 2020 | (5,000 | ) | (5,930 | ) | 27 | ||||||||||||
10 Year U.S. Treasury Note Futures | Long | 37 | March 2020 | 3,700 | 4,752 | (40 | ) | |||||||||||||
10 Year Ultra U.S. Treasury Note Futures | Short | 6 | March 2020 | (600 | ) | (844 | ) | 10 | ||||||||||||
20 Year U.S. Treasury Bond Futures | Long | 49 | March 2020 | 4,900 | 7,639 | (162 | ) | |||||||||||||
30 Year Ultra U.S. Treasury Bond Futures | Long | 23 | March 2020 | 2,300 | 4,178 | (125 | ) | |||||||||||||
|
| |||||||||||||||||||
$ | (331 | ) | ||||||||||||||||||
|
|
76 American Funds Insurance Series
Table of Contents
Capital Income Builder
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2019 (000) | Upfront payments/ receipts (000) | Unrealized appreciation (depreciation) at 12/31/2019 (000) | ||||||||||||||||
2.197% | U.S. EFFR | 4/15/2021 | $ | 31,000 | $ | 253 | $ | — | $ | 253 | ||||||||||||
1.6325% | U.S. EFFR | 7/18/2021 | 40,000 | 75 | — | 75 | ||||||||||||||||
1.3615% | U.S. EFFR | 11/1/2021 | 23,500 | (36 | ) | — | (36 | ) | ||||||||||||||
1.281% | U.S. EFFR | 11/4/2021 | 23,500 | (70 | ) | — | (70 | ) | ||||||||||||||
U.S. EFFR | 1.335% | 11/26/2021 | 38,000 | 77 | — | 77 | ||||||||||||||||
2.21875% | U.S. EFFR | 3/14/2024 | 9,000 | 271 | — | 271 | ||||||||||||||||
U.S. EFFR | 1.485% | 10/23/2029 | 5,000 | 76 | — | 76 | ||||||||||||||||
U.S. EFFR | 1.4869% | 10/23/2029 | 4,600 | 69 | — | 69 | ||||||||||||||||
U.S. EFFR | 1.453% | 10/24/2029 | 5,800 | 105 | — | 105 | ||||||||||||||||
U.S. EFFR | 1.4741% | 10/24/2029 | 5,800 | 94 | — | 94 | ||||||||||||||||
U.S. EFFR | 1.4495% | 10/24/2029 | 4,200 | 78 | — | 78 | ||||||||||||||||
U.S. EFFR | 1.446% | 10/24/2029 | 600 | 11 | — | 11 | ||||||||||||||||
1.419% | U.S. EFFR | 11/26/2029 | 8,000 | (174 | ) | — | (174 | ) | ||||||||||||||
|
|
|
| |||||||||||||||||||
$ | — | $ | 829 | |||||||||||||||||||
|
|
|
|
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 $345,473,000, which represented 34.59% of the net assets of the fund. This amount includes $345,261,000 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 | Amount less than one thousand. |
3 | All or a portion of this security was pledged as collateral. The total value of pledged collateral was $1,180,000, which represented .12% of the net assets of the fund. |
4 | Index-linked bond whose principal amount moves with a government price index. |
5 | Step bond; coupon rate may change at a later date. |
6 | 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 $21,329,000, which represented 2.14% of the net assets of the fund. |
7 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
8 | Coupon rate may change periodically. Reference rate and spread are as of the most recent information available. Some coupon rates are determined by the issuer or agent based on current market conditions; therefore, the reference rate and spread are not available. |
9 | Rate represents theseven-day yield at 12/31/2019. |
10 | Notional amount is calculated based on the number of contracts and notional contract size. |
11 | Value is calculated based on the notional amount and current market price. |
Key to abbreviations and symbol
ADR = American Depositary Receipts
CAD = Canadian dollars
EFFR = Effective Federal Funds Rate
GBP = British pounds
SOFR = Secured Overnight Financing Rate
USD/$ = U.S. dollars
See notes to financial statements.
American Funds Insurance Series 77
Table of Contents
Summary investment portfolioDecember 31, 2019
Common stocks 64.44%
Shares | Value (000) | |||||||
Information technology 15.65% | ||||||||
Microsoft Corp. | 6,891,900 | $ | 1,086,852 | |||||
Broadcom Inc. | 2,097,200 | 662,757 | ||||||
ASML Holding NV (New York registered) | 1,865,000 | 551,928 | ||||||
ASML Holding NV1 | 70,000 | 20,847 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 6,806,700 | 395,469 | ||||||
MKS Instruments, Inc.2 | 2,800,000 | 308,028 | ||||||
VeriSign, Inc.3 | 1,400,000 | 269,752 | ||||||
Intel Corp. | 3,500,000 | 209,475 | ||||||
Visa Inc., Class A | 1,032,000 | 193,913 | ||||||
Dell Technologies Inc., Class C3 | 3,387,100 | 174,063 | ||||||
Mastercard Inc., Class A | 451,000 | 134,664 | ||||||
Other securities | 284,508 | |||||||
|
| |||||||
4,292,256 | ||||||||
|
| |||||||
Financials 11.02% | ||||||||
First Republic Bank | 3,380,000 | 396,981 | ||||||
Chubb Ltd. | 2,375,000 | 369,693 | ||||||
Arch Capital Group Ltd.3 | 7,331,500 | 314,448 | ||||||
JPMorgan Chase & Co. | 1,600,000 | 223,040 | ||||||
Bank of America Corp. | 6,000,000 | 211,320 | ||||||
Capital One Financial Corp. | 2,000,000 | 205,820 | ||||||
Citigroup Inc. | 2,500,000 | 199,725 | ||||||
CME Group Inc., Class A | 977,200 | 196,144 | ||||||
Apollo Global Management, Inc., Class A | 3,090,000 | 147,424 | ||||||
Other securities | 758,031 | |||||||
|
| |||||||
3,022,626 | ||||||||
|
| |||||||
Health care 10.65% | ||||||||
UnitedHealth Group Inc. | 2,016,300 | 592,752 | ||||||
Johnson & Johnson | 3,200,000 | 466,784 | ||||||
Humana Inc. | 1,265,000 | 463,648 | ||||||
Abbott Laboratories | 3,000,000 | 260,580 | ||||||
Cigna Corp. | 1,250,000 | 255,612 | ||||||
Merck & Co., Inc. | 2,420,300 | 220,126 | ||||||
Other securities | 660,419 | |||||||
|
| |||||||
2,919,921 | ||||||||
|
| |||||||
Industrials 5.90% | ||||||||
Northrop Grumman Corp. | 1,449,400 | 498,550 | ||||||
Boeing Co. | 1,417,300 | 461,700 | ||||||
Lockheed Martin Corp. | 847,200 | 329,883 | ||||||
CSX Corp. | 1,875,000 | 135,675 | ||||||
Other securities | 191,830 | |||||||
|
| |||||||
1,617,638 | ||||||||
|
| |||||||
Consumer discretionary 4.89% | ||||||||
Home Depot, Inc. | 1,188,000 | 259,435 | ||||||
Amazon.com, Inc.3 | 103,000 | 190,328 | ||||||
Suzuki Motor Corp.1 | 4,500,000 | 188,490 | ||||||
Aramark | 4,300,000 | 186,620 | ||||||
General Motors Co. | 4,100,000 | 150,060 | ||||||
VF Corp. | 1,400,000 | 139,524 | ||||||
Kontoor Brands, Inc.2 | 3,250,000 | 136,467 | ||||||
Other securities | 90,610 | |||||||
|
| |||||||
1,341,534 | ||||||||
|
|
78 American Funds Insurance Series
Table of Contents
Asset Allocation Fund
Common stocks
Shares | Value (000) | |||||||
Communication services 4.32% | ||||||||
Charter Communications, Inc., Class A3 | 942,126 | $ | 457,006 | |||||
Alphabet Inc., Class C3 | 133,600 | 178,626 | ||||||
Alphabet Inc., Class A3 | 111,200 | 148,940 | ||||||
Facebook, Inc., Class A3 | 1,077,100 | 221,075 | ||||||
Other securities | 178,690 | |||||||
|
| |||||||
1,184,337 | ||||||||
|
| |||||||
Consumer staples 4.20% | ||||||||
Philip Morris International Inc. | 6,243,000 | 531,217 | ||||||
Nestlé SA1 | 3,006,689 | 325,734 | ||||||
Nestlé SA (ADR) | 900,000 | 97,434 | ||||||
Altria Group, Inc. | 3,200,000 | 159,712 | ||||||
Other securities | 37,280 | |||||||
|
| |||||||
1,151,377 | ||||||||
|
| |||||||
Energy 3.76% | ||||||||
Noble Energy, Inc. | 13,500,000 | 335,340 | ||||||
Cenovus Energy Inc. (CAD denominated) | 29,000,000 | 294,790 | ||||||
Royal Dutch Shell PLC, Class B (ADR) | 2,745,000 | 164,618 | ||||||
Other securities | 234,790 | |||||||
|
| |||||||
1,029,538 | ||||||||
|
| |||||||
Materials 2.55% | ||||||||
Dow Inc. | 5,416,666 | 296,454 | ||||||
Other securities | 401,213 | |||||||
|
| |||||||
697,667 | ||||||||
|
| |||||||
Real estate 0.87% | ||||||||
Other securities | 238,213 | |||||||
|
| |||||||
Utilities 0.63% | ||||||||
CMS Energy Corp. | 2,284,700 | 143,570 | ||||||
Other securities | 29,351 | |||||||
|
| |||||||
172,921 | ||||||||
|
| |||||||
Total common stocks(cost: $11,151,198,000) | 17,668,028 | |||||||
|
| |||||||
Rights & warrants 0.00% | ||||||||
Other 0.00% | ||||||||
Other securities | 1,070 | |||||||
|
| |||||||
Total rights & warrants(cost: $3,366,000) | 1,070 | |||||||
|
| |||||||
Convertible stocks 0.52% | ||||||||
Information technology 0.26% | ||||||||
Broadcom Inc., Series A, cumulative convertible preferred, 8.00% 20224 | 60,000 | 70,678 | ||||||
|
| |||||||
Other 0.26% | ||||||||
Other securities | 72,133 | |||||||
|
| |||||||
Total convertible stocks(cost: $126,588,000) | 142,811 | |||||||
|
| |||||||
Convertible bonds 0.00%
| ||||||||
Principal amount (000) | ||||||||
Communication services 0.00% | ||||||||
Other securities | 127 | |||||||
|
| |||||||
Total convertible bonds(cost: $101,000) | 127 | |||||||
|
| |||||||
American Funds Insurance Series 79
Table of Contents
Asset Allocation Fund
Bonds, notes & other debt instruments 29.78%
Principal amount (000) | Value (000) | |||||||
U.S. Treasury bonds & notes 11.77% | ||||||||
U.S. Treasury 9.68% | ||||||||
U.S. Treasury 2.50% 2021 | $ | 200,000 | $ | 201,868 | ||||
U.S. Treasury 1.75% 2024 | 155,150 | 155,659 | ||||||
U.S. Treasury 2.50% 20245 | 225,000 | 232,461 | ||||||
U.S. Treasury 1.13%-3.00% 2020-20495 | 2,040,982 | 2,063,170 | ||||||
|
| |||||||
2,653,158 | ||||||||
|
| |||||||
U.S. Treasury inflation-protected securities 2.09% | ||||||||
U.S. Treasury Inflation-Protected Securities 0.13%-1.38% 2024-20495,6 | 545,525 | 573,509 | ||||||
|
| |||||||
Total U.S. Treasury bonds & notes | 3,226,667 | |||||||
|
| |||||||
Corporate bonds & notes 10.36% | ||||||||
Health care 1.67% | ||||||||
UnitedHealth Group Inc. 2.38%-4.45% 2024-2048 | 14,455 | 16,075 | ||||||
Other securities | 441,912 | |||||||
|
| |||||||
457,987 | ||||||||
|
| |||||||
Financials 1.52% | ||||||||
ACE INA Holdings Inc. 2.30%-4.35% 2020-2045 | 7,405 | 7,765 | ||||||
Other securities | 410,159 | |||||||
|
| |||||||
417,924 | ||||||||
|
| |||||||
Energy 1.34% | ||||||||
Cenovus Energy Inc. 3.80%-5.40% 2023-2047 | 11,635 | 12,381 | ||||||
Noble Energy, Inc. 3.25%-4.95% 2028-2047 | 9,438 | 9,703 | ||||||
Other securities | 344,613 | |||||||
|
| |||||||
366,697 | ||||||||
|
| |||||||
Communication services 1.07% | ||||||||
Alphabet Inc. 1.998% 2026 | 3,000 | 2,984 | ||||||
CCO Holdings LLC and CCO Holdings Capital Corp. 4.50%-6.48% 2023-20507 | 37,855 | 41,961 | ||||||
Other securities | 248,604 | |||||||
|
| |||||||
293,549 | ||||||||
|
| |||||||
Industrials 0.82% | ||||||||
Boeing Co. 2.70%-3.90% 2022-2049 | 17,781 | 18,552 | ||||||
Lockheed Martin Corp. 2.50%-3.55% 2020-2026 | 10,935 | 11,243 | ||||||
Northrop Grumman Corp. 2.55%-3.25% 2022-2028 | 16,052 | 16,535 | ||||||
Other securities | 179,446 | |||||||
|
| |||||||
225,776 | ||||||||
|
| |||||||
Consumer discretionary 0.72% | ||||||||
Home Depot, Inc. 2.95%-4.50% 2028-2048 | 14,113 | 15,332 | ||||||
Other securities | 180,639 | |||||||
|
| |||||||
195,971 | ||||||||
|
| |||||||
Consumer staples 0.64% | ||||||||
Nestlé Holdings, Inc. 3.35% 20237 | 750 | 785 | ||||||
Philip Morris International Inc. 1.88%-3.38% 2020-2029 | 12,186 | 12,513 | ||||||
Other securities | 162,290 | |||||||
|
| |||||||
175,588 | ||||||||
|
| |||||||
Information technology 0.47% | ||||||||
Broadcom Inc. 3.13%-4.75% 2022-20297 | 26,670 | 28,598 | ||||||
Broadcom Ltd. 3.50%-3.88% 2024-2028 | 7,524 | 7,700 | ||||||
Microsoft Corp. 1.55%-4.25% 2021-2047 | 20,985 | 22,758 | ||||||
Other securities | 71,003 | |||||||
|
| |||||||
130,059 | ||||||||
|
|
80 American Funds Insurance Series
Table of Contents
Asset Allocation Fund
Bonds, notes & other debt instruments
Principal amount (000) | Value (000) | |||||||
Other 2.11% | ||||||||
Other securities | $ | 577,127 | ||||||
|
| |||||||
Total corporate bonds & notes | 2,840,678 | |||||||
|
| |||||||
Mortgage-backed obligations 6.93% | ||||||||
Federal agency mortgage-backed obligations 6.68% | ||||||||
Fannie Mae 0%-7.50% 2021-20508,9 | $ | 628,513 | 649,074 | |||||
Freddie Mac 2.45%-5.42% 2023-20498,9 | 289,392 | 299,107 | ||||||
Government National Mortgage Assn. 3.50%-4.50% 2048-20508,10 | 535,819 | 556,289 | ||||||
Other securities | 327,651 | |||||||
|
| |||||||
1,832,121 | ||||||||
|
| |||||||
Other 0.25% | ||||||||
Other securities | 68,092 | |||||||
|
| |||||||
Total mortgage-backed obligations | 1,900,213 | |||||||
|
| |||||||
Federal agency bonds & notes 0.05% | ||||||||
Fannie Mae 1.875% 2026 | 13,000 | 12,974 | ||||||
|
| |||||||
Other 0.67% | ||||||||
Other securities | 186,876 | |||||||
|
| |||||||
Total bonds, notes & other debt instruments (cost: $8,000,047,000) | 8,167,408 | |||||||
|
| |||||||
Short-term securities 5.80%
| ||||||||
Shares | ||||||||
Money market investments 5.80% | ||||||||
Capital Group Central Cash Fund 1.73%11 | 15,848,444 | 1,584,844 | ||||||
Fidelity Institutional Money Market Funds—Government Portfolio 1.49%11,12 | 997,009 | 997 | ||||||
Goldman Sachs Financial Square Government Fund 1.50%11,12 | 960,737 | 961 | ||||||
Morgan Stanley Institutional Liquidity Funds—Government Portfolio 1.51%11,12 | 2,634,650 | 2,635 | ||||||
|
| |||||||
1,589,437 | ||||||||
|
| |||||||
Total short-term securities (cost: $1,588,867,000) | 1,589,437 | |||||||
|
| |||||||
Total investment securities100.54% (cost: $20,870,167,000) | 27,568,881 | |||||||
Other assets less liabilities (0.54)% | (149,226 | ) | ||||||
|
| |||||||
Net assets 100.00% | $ | 27,419,655 | ||||||
|
|
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 $40,104,000, which represented .15% of the net assets of the fund. Some securities in “Other securities” (with an aggregate value of $4,194,000, an aggregate cost of $9,168,000, and which represented .02% of the net assets of the fund) were acquired from 9/26/2013 to 9/4/2018 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 amount13 (000) | Value at 12/31/201914 (000) | Unrealized (depreciation) appreciation at 12/31/2019 (000) | ||||||||||||||||
2 Year U.S. Treasury Note Futures | Long | 5,773 | April 2020 | $ | 1,154,600 | $ | 1,244,082 | $ | (625 | ) | ||||||||||||
5 Year U.S. Treasury Note Futures | Long | 5,836 | April 2020 | 583,600 | 692,204 | (2,360 | ) | |||||||||||||||
10 Year U.S. Treasury Note Futures | Short | 214 | March 2020 | (21,400 | ) | (27,482 | ) | 290 | ||||||||||||||
10 Year Ultra U.S. Treasury Note Futures | Short | 836 | March 2020 | (83,600 | ) | (117,628 | ) | 1,420 | ||||||||||||||
30 Year Ultra U.S. Treasury Bond Futures | Long | 291 | March 2020 | 29,100 | 52,862 | (1,687 | ) | |||||||||||||||
|
| |||||||||||||||||||||
$ | (2,962 | ) | ||||||||||||||||||||
|
|
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2019 (000) | Upfront payments/ receipts (000) | Unrealized (depreciation) appreciation at 12/31/2019 (000) | ||||||||||||||||
3-monthUSD-LIBOR | 2.18075% | 3/29/2024 | $ | 26,400 | $ | (518 | ) | $ | — | $ | (518 | ) | ||||||||||
3-monthUSD-LIBOR | 2.194% | 3/29/2024 | 101,900 | (2,056 | ) | — | (2,056 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.21875% | 3/29/2024 | 107,250 | (2,273 | ) | — | (2,273 | ) | ||||||||||||||
3-monthUSD-LIBOR | 1.5615% | 11/27/2024 | 130,000 | 1,035 | — | 1,035 | ||||||||||||||||
|
|
|
| |||||||||||||||||||
$ | — | $ | (3,812 | ) | ||||||||||||||||||
|
|
|
|
Investments in affiliates
A company is an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings represent 5% or more of the outstanding voting shares of that company. The value of the fund’s affiliated-company holdings is either shown in the summary investment portfolio or included in the value of “Other securities” under the respective industry sectors. Further details on these holdings and related transactions during the year ended December 31, 2019, appear below.
Beginning shares or principal amount | Additions | Reductions | Ending shares or principal amount | Net realized loss (000) | Net unrealized appreciation (000) | Dividend or interest income (000) | Value of affiliates at 12/31/2019 (000) | |||||||||||||||||||||||||
Common stocks 1.62% | ||||||||||||||||||||||||||||||||
Information technology 1.12% | ||||||||||||||||||||||||||||||||
MKS Instruments, Inc. | — | 2,800,000 | — | 2,800,000 | $ | — | $ | 70,752 | $ | 1,510 | $ | 308,028 | ||||||||||||||||||||
Consumer discretionary 0.50% | ||||||||||||||||||||||||||||||||
Kontoor Brands, Inc. | — | 3,250,000 | — | 3,250,000 | — | 45,066 | 3,548 | 136,467 | ||||||||||||||||||||||||
Dillard’s, Inc., Class A (USA)15 | 1,700,000 | — | 1,700,000 | — | (5,248 | ) | 7,584 | 340 | — | |||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
136,467 | ||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Energy 0.00% | ||||||||||||||||||||||||||||||||
Weatherford International PLC3,15 | 60,000,000 | — | 60,000,000 | — | (446,158 | ) | 415,322 | — | — | |||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total common stocks | 444,495 | |||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Bonds, notes & other debt instruments 0.00% | ||||||||||||||||||||||||||||||||
Energy 0.00% | ||||||||||||||||||||||||||||||||
Weatherford International LLC 9.875% 202515,16 | — | $ | 2,550,000 | $ | 2,550,000 | — | (1,906 | ) | — | 108 | — | |||||||||||||||||||||
Weatherford International PLC 4.50% 202215,16 | $ | 6,365,000 | — | $ | 6,365,000 | — | (4,097 | ) | 1,849 | 198 | — | |||||||||||||||||||||
Weatherford International PLC 8.25% 202315,16 | $ | 5,800,000 | — | $ | 5,800,000 | — | (4,441 | ) | 2,224 | 243 | — | |||||||||||||||||||||
Weatherford International PLC 9.875% | ||||||||||||||||||||||||||||||||
202415,16 | $ | 1,000,000 | — | $ | 1,000,000 | — | (778 | ) | 391 | 49 | — | |||||||||||||||||||||
Weatherford International PLC 9.875% 20257,15$2,550,000 | — | $ | 2,550,000 | — | — | 973 | 19 | — |
82 American Funds Insurance Series
Table of Contents
Asset Allocation Fund
Beginning shares or principal amount | Additions | Reductions | Ending shares or principal amount | Net realized loss (000) | Net unrealized appreciation (000) | Dividend or interest income (000) | Value of affiliates at 12/31/2019 (000) | |||||||||||||||||||||||||
Weatherford International PLC 6.50% 203615,16 | $ | 7,595,000 | — | $ | 7,595,000 | — | $ | (4,703 | ) | $ | 2,519 | $ | 249 | $ | — | |||||||||||||||||
Weatherford International PLC 6.75% 204015,16 | $ | 7,825,000 | — | $ | 7,825,000 | — | (3,983 | ) | 1,811 | 270 | — | |||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
— | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Total 1.62% | $ | (471,314 | ) | $ | 548,491 | $ | 6,534 | $ | 444,495 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
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 $923,930,000, which represented 3.37% of the net assets of the fund. This amount includes $906,137,000 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 | Represents an affiliated company as defined under the Investment Company Act of 1940. |
3 | Security did not produce income during the last 12 months. |
4 | All or a portion of this security was on loan. The total value of all such securities, including those in “Other securities,“ was $5,211,000, which represented .02% of the net assets of the fund. Refer to Note 5 for more information on securities lending. |
5 | All or a portion of this security was pledged as collateral. The total value of pledged collateral was $15,999,000, which represented .06% of the net assets of the fund. |
6 | Index-linked bond whose principal amount moves with a government price index. |
7 | 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 $975,763,000, which represented 3.56% of the net assets of the fund. |
8 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
9 | Coupon rate may change periodically. Reference rate and spread are as of the most recent information available. Some coupon rates are determined by the issuer or agent based on current market conditions; therefore, the reference rate and spread are not available. |
10 | Purchased on a TBA basis. |
11 | Rate represents theseven-day yield at 12/31/2019. |
12 | Security purchased with cash collateral from securities on loan. Refer to Note 5 for more information on securities lending. |
13 | Notional amount is calculated based on the number of contracts and notional contract size. |
14 | Value is calculated based on the notional amount and current market price. |
15 | Unaffiliated issuer at 12/31/2019. |
16 | Scheduled interest and/or principal payment was not received. |
Key to abbreviations and symbol
ADR = American Depositary Receipts
CAD = Canadian dollars
LIBOR = London Interbank Offered Rate
TBA =To-be-announced
USD/$ = U.S. dollars
See notes to financial statements.
American Funds Insurance Series 83
Table of Contents
Summary investment portfolioDecember 31, 2019
Common stocks 64.17%
Shares | Value (000) | |||||||
Information technology 13.78% | ||||||||
ASML Holding NV1 | 34,500 | $ | 10,275 | |||||
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 860,000 | 9,524 | ||||||
Broadcom Inc. | 26,895 | 8,500 | ||||||
Microsoft Corp. | 49,620 | 7,825 | ||||||
PagSeguro Digital Ltd., Class A2 | 154,528 | 5,279 | ||||||
Temenos AG1 | 18,000 | 2,846 | ||||||
Visa Inc., Class A | 14,600 | 2,743 | ||||||
Tokyo Electron Ltd.1 | 11,800 | 2,593 | ||||||
Other securities | 10,638 | |||||||
|
| |||||||
60,223 | ||||||||
|
| |||||||
Health care 11.01% | ||||||||
Merck & Co., Inc. | 116,325 | 10,580 | ||||||
AstraZeneca PLC1 | 102,050 | 10,210 | ||||||
Humana Inc. | 16,330 | 5,985 | ||||||
Coloplast A/S, Class B1 | 23,150 | 2,878 | ||||||
Mettler-Toledo International Inc.2 | 3,500 | 2,776 | ||||||
Other securities | 15,696 | |||||||
|
| |||||||
48,125 | ||||||||
|
| |||||||
Financials 9.46% | ||||||||
JPMorgan Chase & Co. | 43,800 | 6,106 | ||||||
Zurich Insurance Group AG1 | 13,940 | 5,717 | ||||||
Sberbank of Russia PJSC (ADR)1 | 331,000 | 5,446 | ||||||
Berkshire Hathaway Inc., Class A2 | 16 | 5,434 | ||||||
AIA Group Ltd.1 | 426,000 | 4,482 | ||||||
B3 SA-Brasil, Bolsa, Balcao | 376,000 | 4,016 | ||||||
BlackRock, Inc. | 5,730 | 2,881 | ||||||
Other securities | 7,260 | |||||||
|
| |||||||
41,342 | ||||||||
|
| |||||||
Consumer staples 8.98% | ||||||||
Nestlé SA1 | 64,100 | 6,944 | ||||||
British American Tobacco PLC1 | 156,300 | 6,659 | ||||||
Altria Group, Inc. | 122,500 | 6,114 | ||||||
Philip Morris International Inc. | 59,300 | 5,046 | ||||||
Anheuser-Busch InBev SA/NV1 | 47,200 | 3,871 | ||||||
Keurig Dr Pepper Inc. | 106,000 | 3,069 | ||||||
Other securities | 7,540 | |||||||
|
| |||||||
39,243 | ||||||||
|
| |||||||
Industrials 7.38% | ||||||||
Boeing Co. | 12,700 | 4,137 | ||||||
Edenred SA1 | 66,528 | 3,442 | ||||||
MTU Aero Engines AG1 | 9,800 | 2,798 | ||||||
Other securities | 21,883 | |||||||
|
| |||||||
32,260 | ||||||||
|
| |||||||
Consumer discretionary 4.48% | ||||||||
Home Depot, Inc. | 21,275 | 4,646 | ||||||
General Motors Co. | 110,500 | 4,044 | ||||||
Alibaba Group Holding Ltd.1,2 | 109,600 | 2,915 | ||||||
LVMH Moët Hennessy-Louis Vuitton SE1 | 5,765 | 2,685 | ||||||
Other securities | 5,264 | |||||||
|
| |||||||
19,554 | ||||||||
|
| |||||||
Materials 2.71% | ||||||||
Givaudan SA1 | 815 | 2,551 | ||||||
Other securities | 9,273 | |||||||
|
| |||||||
11,824 | ||||||||
|
|
84 American Funds Insurance Series
Table of Contents
Global Balanced Fund
Common stocks
Shares | Value (000) | |||||||
Real estate 2.39% | ||||||||
Crown Castle International Corp. REIT | 23,940 | $ | 3,403 | |||||
Gaming and Leisure Properties, Inc. REIT | 59,720 | 2,571 | ||||||
Other securities | 4,444 | |||||||
|
| |||||||
10,418 | ||||||||
|
| |||||||
Communication services 1.65% | ||||||||
Alphabet Inc., Class C2 | 3,579 | 4,785 | ||||||
Other securities | 2,422 | |||||||
|
| |||||||
7,207 | ||||||||
|
| |||||||
Energy 1.64% | ||||||||
Canadian Natural Resources, Ltd. (CAD denominated) | 89,000 | 2,878 | ||||||
Other securities | 4,303 | |||||||
|
| |||||||
7,181 | ||||||||
|
| |||||||
Utilities 0.69% | ||||||||
Ørsted AS1 | 29,100 | 3,015 | ||||||
|
| |||||||
Total common stocks (cost: $202,304,000) | 280,392 | |||||||
|
| |||||||
Bonds, notes & other debt instruments 32.18% | ||||||||
Principal amount (000) | ||||||||
Bonds & notes of governments & government agencies outside the U.S. 13.76% | ||||||||
Japan, Series 346, 0.10% 2027 | ¥ | 304,250 | 2,842 | |||||
Japan, Series 356, 0.10% 2029 | 420,000 | 3,911 | ||||||
Japan 0.10%-1.70% 2020-20443 | 1,089,927 | 10,551 | ||||||
Other securities | 42,821 | |||||||
|
| |||||||
60,125 | ||||||||
|
| |||||||
U.S. Treasury bonds & notes 11.68% | ||||||||
U.S. Treasury 9.42% | ||||||||
U.S. Treasury 2.25% 2021 | $ | 5,000 | 5,043 | |||||
U.S. Treasury 1.625% 20224 | 2,850 | 2,851 | ||||||
U.S. Treasury 2.25% 2024 | 3,055 | 3,129 | ||||||
U.S. Treasury 2.25% 2027 | 2,800 | 2,880 | ||||||
U.S. Treasury 1.13%-3.13% 2020-20484 | 26,442 | 27,242 | ||||||
|
| |||||||
41,145 | ||||||||
|
| |||||||
U.S. Treasury inflation-protected securities 2.26% | ||||||||
U.S. Treasury Inflation-Protected Security 0.875% 20293 | 4,306 | 4,575 | ||||||
U.S. Treasury Inflation-Protected Security 1.00% 20493,4 | 2,301 | 2,561 | ||||||
U.S. Treasury Inflation-Protected Securities 0.13%-1.38% 2022-20443,4 | 2,643 | 2,761 | ||||||
|
| |||||||
9,897 | ||||||||
|
| |||||||
Total U.S. Treasury bonds & notes | 51,042 | |||||||
|
| |||||||
Corporate bonds & notes 4.82% | ||||||||
Financials 1.07% | ||||||||
JPMorgan Chase & Co. 2.55%-3.25% 2021-2023 | 254 | 259 | ||||||
JPMorgan Chase & Co., Series S, junior subordinated, | 135 | 153 | ||||||
JPMorgan Chase Bank NA(3-monthUSD-LIBOR + 0.34%) 2.276% 20216 | 300 | 300 | ||||||
Other securities | 3,955 | |||||||
|
| |||||||
4,667 | ||||||||
|
| |||||||
Health care 0.68% | ||||||||
AstraZeneca PLC 2.38%-3.50% 2022-2023 | 260 | 268 | ||||||
Humana Inc. 3.15% 2022 | 100 | 103 | ||||||
Other securities | 2,621 | |||||||
|
| |||||||
2,992 | ||||||||
|
|
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) | ||||||||
Consumer staples 0.53% | ||||||||
Altria Group, Inc. 2.63%-5.80% 2020-2039 | $ | 225 | $ | 247 | ||||
Altria Group, Inc. 1.00%-2.20% 2023-2027 | € | 380 | 447 | |||||
British American Tobacco PLC 2.79%-4.76% 2024-2049 | $ | 455 | 462 | |||||
Philip Morris International Inc. 2.00%-2.63% 2020-2022 | 70 | 70 | ||||||
Reynolds American Inc. 4.00%-4.45% 2022-2025 | 120 | 129 | ||||||
Other securities | 951 | |||||||
|
| |||||||
2,306 | ||||||||
|
| |||||||
Information technology 0.25% | ||||||||
Broadcom Ltd. 3.875% 2027 | 190 | 198 | ||||||
Microsoft Corp. 2.40%-3.30% 2026-2027 | 577 | 600 | ||||||
Other securities | 297 | |||||||
|
| |||||||
1,095 | ||||||||
|
| |||||||
Other 2.29% | ||||||||
Other securities | 10,014 | |||||||
|
| |||||||
Total corporate bonds & notes | 21,074 | |||||||
|
| |||||||
Mortgage-backed obligations 1.92% | ||||||||
Federal agency mortgage-backed obligations 1.63% | ||||||||
Other securities | 7,162 | |||||||
|
| |||||||
Other mortgage-backed securities 0.29% | ||||||||
Other securities | 1,205 | |||||||
|
| |||||||
Total mortgage-backed obligations | 8,367 | |||||||
|
| |||||||
Total bonds, notes & other debt instruments (cost: $136,525,000) | 140,608 | |||||||
|
| |||||||
Short-term securities 3.41% | ||||||||
Other short-term securities 2.77% | ||||||||
Alberta (Province of) 1.77% due 1/8/20207 | 5,750 | 5,748 | ||||||
Toronto-Dominion Bank 1.91% due 1/22/20207 | 4,250 | 4,245 | ||||||
Other securities | 2,102 | |||||||
|
| |||||||
12,095 | ||||||||
|
| |||||||
Shares | ||||||||
Money market investments 0.64% | ||||||||
Capital Group Central Cash Fund 1.73%8 | 28,249 | 2,825 | ||||||
|
| |||||||
Total short-term securities (cost: $14,874,000) | 14,920 | |||||||
|
| |||||||
Total investment securities 99.76% (cost: $353,703,000) | 435,920 | |||||||
Other assets less liabilities 0.24% | 1,030 | |||||||
|
| |||||||
Net assets 100.00% | $ | 436,950 | ||||||
|
|
86 American Funds Insurance Series
Table of Contents
Global Balanced 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.
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount9 (000) | Value at 12/31/201910 (000) | Unrealized depreciation at 12/31/2019 (000) | ||||||||||||||||||
2 Year U.S. Treasury Note Futures | Long | 53 | April 2020 | $ | 10,600 | $ | 11,421 | $ | (7 | ) | ||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 21 | April 2020 | 2,100 | 2,491 | (9 | ) | |||||||||||||||||
|
| |||||||||||||||||||||||
$ | (16 | ) | ||||||||||||||||||||||
|
|
Forward currency contracts
Contract amount | Unrealized appreciation | |||||||||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | at 12/31/2019 (000) | ||||||||||||
EUR | 375 | USD | 417 | Standard Chartered Bank | 1/6/2020 | $ | 4 | |||||||||
USD | 857 | ILS | 2,960 | JPMorgan Chase | 1/6/2020 | — | 11 | |||||||||
USD | 257 | ZAR | 3,800 | Citibank | 1/6/2020 | (14 | ) | |||||||||
USD | 636 | JPY | 69,000 | UBS AG | 1/7/2020 | 1 | ||||||||||
USD | 173 | ILS | 600 | UBS AG | 1/7/2020 | (1 | ) | |||||||||
JPY | 90,700 | USD | 838 | JPMorgan Chase | 1/7/2020 | (3 | ) | |||||||||
CZK | 11,700 | EUR | 458 | Goldman Sachs | 1/8/2020 | 2 | ||||||||||
USD | 113 | CNH | 800 | HSBC Bank | 1/8/2020 | (2 | ) | |||||||||
CLP | 875,800 | USD | 1,101 | Morgan Stanley | 1/9/2020 | 64 | ||||||||||
EUR | 300 | USD | 335 | Citibank | 1/9/2020 | 2 | ||||||||||
USD | 334 | EUR | 300 | Morgan Stanley | 1/9/2020 | (3 | ) | |||||||||
USD | 123 | CLP | 98,800 | Bank of America | 1/9/2020 | (8 | ) | |||||||||
USD | 143 | CLP | 114,114 | Citibank | 1/9/2020 | (9 | ) | |||||||||
USD | 344 | CLP | 275,886 | Citibank | 1/9/2020 | (24 | ) | |||||||||
USD | 569 | BRL | 2,396 | Goldman Sachs | 1/9/2020 | (26 | ) | |||||||||
USD | 474 | CLP | 387,000 | HSBC Bank | 1/9/2020 | (41 | ) | |||||||||
USD | 107 | INR | 7,675 | JPMorgan Chase | 1/10/2020 | (1 | ) | |||||||||
EUR | 1,540 | USD | 1,710 | HSBC Bank | 1/13/2020 | 19 | ||||||||||
GBP | 526 | USD | 693 | Bank of America | 1/13/2020 | 4 | ||||||||||
USD | 335 | EUR | 300 | Citibank | 1/13/2020 | (2 | ) | |||||||||
USD | 525 | THB | 15,900 | Standard Chartered Bank | 1/13/2020 | (6 | ) | |||||||||
USD | 564 | JPY | 61,000 | Bank of New York Mellon | 1/14/2020 | 2 | ||||||||||
JPY | 61,000 | USD | 560 | Bank of New York Mellon | 1/14/2020 | 1 | ||||||||||
EUR | 217 | USD | 242 | Bank of New York Mellon | 1/15/2020 | 1 | ||||||||||
GBP | 200 | USD | 264 | JPMorgan Chase | 1/15/2020 | 1 | ||||||||||
KRW | 175,200 | USD | 151 | Standard Chartered Bank | 1/15/2020 | 1 | ||||||||||
GBP | 730 | EUR | 864 | Goldman Sachs | 1/15/2020 | (3 | ) | |||||||||
ILS | 2,600 | USD | 745 | Bank of America | 1/16/2020 | 9 | ||||||||||
GBP | 900 | USD | 1,185 | HSBC Bank | 1/16/2020 | 8 | ||||||||||
CAD | 10 | USD | 8 | JPMorgan Chase | 1/16/2020 | — | 11 | |||||||||
USD | 517 | MXN | 9,900 | Citibank | 1/16/2020 | (6 | ) | |||||||||
EUR | 1,456 | NOK | 14,752 | Bank of America | 1/16/2020 | (45 | ) | |||||||||
EUR | 700 | USD | 783 | Bank of America | 1/17/2020 | 3 | ||||||||||
EUR | 410 | USD | 459 | Citibank | 1/17/2020 | 2 | ||||||||||
EUR | 400 | USD | 448 | Standard Chartered Bank | 1/17/2020 | 1 | ||||||||||
AUD | 1,450 | USD | 1,000 | Citibank | 1/21/2020 | 18 | ||||||||||
USD | 55 | JPY | 6,000 | UBS AG | 1/21/2020 | — | 11 | |||||||||
GBP | 370 | USD | 495 | Standard Chartered Bank | 1/21/2020 | (4 | ) | |||||||||
EUR | 155 | USD | 173 | Citibank | 1/23/2020 | 1 |
American Funds Insurance Series 87
Table of Contents
Global Balanced Fund
Forward currency contracts(continued)
Contract amount | Unrealized appreciation | |||||||||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | at 12/31/2019 (000) | ||||||||||||
USD | 250 | INR | 17,800 | HSBC Bank | 1/23/2020 | $ | 1 | |||||||||
USD | 290 | MXN | 5,515 | UBS AG | 1/23/2020 | — | 11 | |||||||||
USD | 235 | CNH | 1,645 | JPMorgan Chase | 1/23/2020 | (1 | ) | |||||||||
EUR | 1,804 | USD | 2,011 | Standard Chartered Bank | 1/27/2020 | 16 | ||||||||||
USD | 117 | INR | 8,300 | Standard Chartered Bank | 1/27/2020 | — | 11 | |||||||||
USD | 73 | BRL | 300 | JPMorgan Chase | 1/27/2020 | (1 | ) | |||||||||
CNH | 4,000 | USD | 565 | Standard Chartered Bank | 2/10/2020 | 9 | ||||||||||
CNH | 1,550 | USD | 220 | Standard Chartered Bank | 2/10/2020 | 3 | ||||||||||
USD | 284 | CNH | 2,000 | HSBC Bank | 2/10/2020 | (4 | ) | |||||||||
USD | 1,456 | CNH | 10,410 | Standard Chartered Bank | 2/10/2020 | (38 | ) | |||||||||
USD | 510 | MXN | 10,100 | JPMorgan Chase | 3/4/2020 | (19 | ) | |||||||||
USD | 365 | JPY | 39,400 | Bank of New York Mellon | 6/15/2020 | (1 | ) | |||||||||
USD | 212 | BR | L900 | JPMorgan Chase | 7/1/2020 | (10 | ) | |||||||||
|
| |||||||||||||||
$ | (99 | ) | ||||||||||||||
|
|
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2019 (000) | Upfront payments/ receipts (000) | Unrealized (depreciation) appreciation at 12/31/2019 (000) | ||||||||||||||||
(0.0955)% | 6-month EURIBOR | 7/22/2024 | € | 4,400 | $ | (11 | ) | $ | — | $ | (11 | ) | ||||||||||
6-monthHUF-BUBOR | 1.39% | 11/11/2029 | HUF | 161,000 | 8 | — | 8 | |||||||||||||||
6-monthPLN-WIBOR | 1.90% | 11/12/2029 | PLN | 2,100 | (2 | ) | — | (2 | ) | |||||||||||||
6-monthPLN-WIBOR | 1.88% | 11/20/2029 | 2,120 | (1 | ) | — | (1 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.0105% | 12/18/2049 | $ | 215 | 4 | — | 4 | |||||||||||||||
|
|
|
| |||||||||||||||||||
$ | — | $ | (2 | ) | ||||||||||||||||||
|
|
|
|
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 $134,619,000, which represented 30.81% 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 | Index-linked bond whose principal amount moves with a government price index. |
4 | All or a portion of this security was pledged as collateral. The total value of pledged collateral was $133,000, which represented .03% of the net assets of the fund. |
5 | Step bond; coupon rate may change at a later date. |
6 | Coupon rate may change periodically. Reference rate and spread are as of the most recent information available. Some coupon rates are determined by the issuer or agent based on current market conditions; therefore, the reference rate and spread are not available. |
7 | 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 $18,373,000, which represented 4.20% of the net assets of the fund. |
8 | Rate represents theseven-day yield at 12/31/2019. |
9 | Notional amount is calculated based on the number of contracts and notional contract size. |
10 | Value is calculated based on the notional amount and current market price. |
11 | Amount less than one thousand. |
88 American Funds Insurance Series
Table of Contents
Global Balanced Fund
Key to abbreviations and symbols
ADR = American Depositary Receipts
AUD = Australian dollars
BRL = Brazilian reais
BUBOR = Budapest Interbank Offered Rate
CAD = Canadian dollars
CLP = Chilean pesos
CNH = Chinese yuan renminbi
CZK = Czech korunas
EUR/€ = Euros
EURIBOR = Euro Interbank Offered Rate
GBP = British pounds
HUF = Hungarian forints
ILS = Israeli shekels
INR = Indian rupees
JPY/¥ = Japanese yen
KRW = South Korean won
LIBOR = London Interbank Offered Rate
MXN = Mexican pesos
NOK = Norwegian kroner
PLN = Polish zloty
THB = Thai baht
USD/$ = U.S. dollars
WIBOR = Warsaw Interbank Offer Rate
ZAR = South African rand
See notes to financial statements.
American Funds Insurance Series 89
Table of Contents
Summary investment portfolioDecember 31, 2019
Bonds, notes & other debt instruments 97.76%
Principal amount (000) | Value (000) | |||||||
Mortgage-backed obligations 31.88% | ||||||||
Federal agency mortgage-backed obligations 31.62% | ||||||||
Fannie Mae Pool #AJ9355 3.00% 20271 | $ | 125 | $ | 128 | ||||
Fannie Mae Pool #MA3827 2.50% 20341 | 162,370 | 163,798 | ||||||
Fannie Mae Pool #MA3764 2.50% 20341 | 70,404 | 71,022 | ||||||
Fannie Mae Pool #BM5632 3.00% 20471 | 73,142 | 74,824 | ||||||
Fannie Mae Pool #CA0858 3.50% 20471 | 58,233 | 60,512 | ||||||
Fannie Mae Pool #MA3495 4.00% 20481 | 74,668 | 77,777 | ||||||
Fannie Mae Pool #MA3803 3.50% 20491 | 103,395 | 106,391 | ||||||
Fannie Mae Pool #MA3775 3.50% 20491 | 61,937 | 63,696 | ||||||
Fannie Mae Pool #MA3905 3.00% 20501 | 270,650 | 274,433 | ||||||
Fannie Mae 2.50%-9.16% 2023-20581,2 | 599,696 | 623,075 | ||||||
Freddie Mac 3.50% 20471 | 95,958 | 99,954 | ||||||
Freddie Mac 3.50% 20471 | 53,152 | 55,281 | ||||||
Freddie Mac Pool #G08799 3.00% 20481 | 56,530 | 57,578 | ||||||
Freddie Mac Pool #SD8010 3.00% 20491 | 74,000 | 75,069 | ||||||
Freddie Mac Pool #SD7509 3.00% 20491 | 60,137 | 61,702 | ||||||
Freddie Mac Pool #SD8011 3.50% 20491 | 126,986 | 130,515 | ||||||
Freddie Mac 0%-5.50% 2021-20491 | 615,958 | 639,781 | ||||||
Government National Mortgage Assn. 3.50% 20501,3 | 77,460 | 79,824 | ||||||
Government National Mortgage Assn. Pool #MA5817 4.00% 20491 | 83,163 | 86,151 | ||||||
Government National Mortgage Assn. Pool #MA5878 5.00% 20491 | 104,318 | 109,869 | ||||||
Government National Mortgage Assn. 4.00%-5.00% 2049-20501,3 | 123,889 | 129,464 | ||||||
Uniform Mortgage-Backed Security 3.00% 20351,3 | 275,708 | 282,323 | ||||||
Uniform Mortgage-Backed Securities 3.00%-4.50% 2035-20501,3 | 5,537 | 5,750 | ||||||
Other securities | 7,317 | |||||||
|
| |||||||
3,336,234 | ||||||||
|
| |||||||
Other 0.26% | ||||||||
Other securities | 27,735 | |||||||
|
| |||||||
Total mortgage-backed obligations | 3,363,969 | |||||||
|
| |||||||
Corporate bonds & notes 29.59% | ||||||||
Financials 6.30% | ||||||||
Intesa Sanpaolo SpA 5.017% 20244 | 67,843 | 71,278 | ||||||
Intesa Sanpaolo SpA 3.38%-5.71% 2023-20284 | 33,400 | 34,861 | ||||||
Other securities | 558,756 | |||||||
|
| |||||||
664,895 | ||||||||
|
| |||||||
Health care 5.18% | ||||||||
Teva Pharmaceutical Finance Co. BV 2.80% 2023 | 86,064 | 80,004 | ||||||
Teva Pharmaceutical Finance Co. BV 2.20%-6.75% 2021-2046 | 141,821 | 122,608 | ||||||
Other securities | 343,751 | |||||||
|
| |||||||
546,363 | ||||||||
|
| |||||||
Energy 4.46% | ||||||||
Petróleos Mexicanos 6.50%-6.88% 2026-2027 | 73,343 | 79,670 | ||||||
Other securities | 390,604 | |||||||
|
| |||||||
470,274 | ||||||||
|
| |||||||
Utilities 3.58% | ||||||||
Edison International 3.13%-5.75% 2022-2028 | 11,700 | 12,239 | ||||||
Southern California Edison Co. 2.85%-6.05% 2021-2048 | 87,298 | 95,762 | ||||||
Other securities | 269,642 | |||||||
|
| |||||||
377,643 | ||||||||
|
| |||||||
Consumer discretionary 3.54% | ||||||||
Other securities | 373,697 | |||||||
|
|
90 American Funds Insurance Series
Table of Contents
Bond Fund
Bonds, notes & other debt instruments
Principal amount (000) | Value (000) | |||||||
Consumer staples 2.33% | ||||||||
Other securities | $ | 246,148 | ||||||
|
| |||||||
Information technology 1.59% | ||||||||
Broadcom Inc. 4.25% 20264 | $ | 41,375 | 43,995 | |||||
Broadcom Inc. 4.75% 20294 | 61,009 | 66,768 | ||||||
Broadcom Ltd. 3.00%-3.88% 2022-2027 | 26,822 | 27,566 | ||||||
Other securities | 28,982 | |||||||
|
| |||||||
167,311 | ||||||||
|
| |||||||
Industrials 1.18% | ||||||||
Other securities | 124,948 | |||||||
|
| |||||||
Other 1.43% | ||||||||
Other securities | 151,141 | |||||||
|
| |||||||
Total corporate bonds & notes | 3,122,420 | |||||||
|
| |||||||
U.S. Treasury bonds & notes 28.74% | ||||||||
U.S. Treasury 24.36% | ||||||||
U.S. Treasury 1.625% 2022 | 70,000 | 70,022 | ||||||
U.S. Treasury 2.50% 2023 | 57,200 | 58,775 | ||||||
U.S. Treasury 2.625% 2023 | 70,000 | 72,625 | ||||||
U.S. Treasury 2.75% 2023 | 173,600 | 179,831 | ||||||
U.S. Treasury 1.50% 2024 | 75,423 | 74,802 | ||||||
U.S. Treasury 2.125% 2024 | 72,100 | 73,554 | ||||||
U.S. Treasury 2.125% 20245 | 72,100 | 73,520 | ||||||
U.S. Treasury 2.25% 2024 | 65,000 | 66,521 | ||||||
U.S. Treasury 2.75% 2025 | 132,000 | 138,843 | ||||||
U.S. Treasury 2.875% 20255 | 96,200 | 102,032 | ||||||
U.S. Treasury 2.875% 2025 | 72,100 | 76,361 | ||||||
U.S. Treasury 1.375% 2026 | 150,000 | 145,940 | ||||||
U.S. Treasury 1.625% 2026 | 75,000 | 74,118 | ||||||
U.S. Treasury 2.25% 2026 | 146,369 | 150,433 | ||||||
U.S. Treasury 2.375% 2026 | 67,586 | 69,975 | ||||||
U.S. Treasury 2.25% 20275 | 120,200 | 123,645 | ||||||
U.S. Treasury 2.25% 20275 | 72,100 | 74,148 | ||||||
U.S. Treasury 2.875% 2028 | 72,100 | 77,679 | ||||||
U.S. Treasury 1.75% 2029 | 69,308 | 68,252 | ||||||
U.S. Treasury 2.25% 20495 | 364,471 | 353,646 | ||||||
U.S. Treasury 3.00% 20495 | 182,915 | 206,346 | ||||||
U.S. Treasury 1.63%-8.75% 2020-20495 | 227,943 | 239,298 | ||||||
|
| |||||||
2,570,366 | ||||||||
|
| |||||||
U.S. Treasury inflation-protected securities 4.38% | ||||||||
U.S. Treasury Inflation-Protected Security 0.125% 20246 | 25,074 | 25,235 | ||||||
U.S. Treasury Inflation-Protected Security 0.375% 20256 | 55,368 | 56,544 | ||||||
U.S. Treasury Inflation-Protected Security 0.375% 20275,6 | 105,195 | 107,342 | ||||||
U.S. Treasury Inflation-Protected Security 0.50% 20285,6 | 130,403 | 133,824 | ||||||
U.S. Treasury Inflation-Protected Security 1.00% 20496 | 124,504 | 138,576 | ||||||
|
| |||||||
461,521 | ||||||||
|
| |||||||
Total U.S. Treasury bonds & notes | 3,031,887 | |||||||
|
| |||||||
Bonds & notes of governments & government agencies outside the U.S. 3.03% | ||||||||
Italy (Republic of) 0.95% 2023 | € | 45,000 | 51,635 | |||||
Japan, Series 20, 0.10% 20256 | ¥ | 11,475,000 | 107,563 | |||||
United Mexican States, Series M, 5.75% 2026 | MXN | 527,500 | 26,459 | |||||
Other securities | 134,251 | |||||||
|
| |||||||
319,908 | ||||||||
|
|
American Funds Insurance Series 91
Table of Contents
Bond Fund
Bonds, notes & other debt instruments (continued)
Principal amount (000) | Value (000) | |||||||
Asset-backed obligations 2.26% | ||||||||
Other securities | $ | 238,376 | ||||||
|
| |||||||
Municipals 2.14% | ||||||||
Illinois 1.91% | ||||||||
G.O. Bonds, Pension Funding, Series 2003, 4.95% 2023 | $ | 27,639 | 28,850 | |||||
G.O. Bonds, Pension Funding, Series 2003, 5.10% 2033 | 106,125 | 114,494 | ||||||
G.O. Bonds, Series2013-B, 3.65% 2020 | 1,825 | 1,831 | ||||||
G.O. Bonds, Series2013-B, 4.11% 2022 | 750 | 762 | ||||||
G.O. Bonds, Series2013-B, 4.31% 2023 | 2,125 | 2,167 | ||||||
G.O. Bonds, Taxable Build America Bonds, Series2010-2, 5.65% 2020 | 250 | 251 | ||||||
G.O. Bonds, Taxable Build America Bonds, Series2010-2, 5.85% 2022 | 2,370 | 2,504 | ||||||
G.O. Bonds, Taxable Build America Bonds, Series2010-2, 5.95% 2023 | 3,210 | 3,447 | ||||||
G.O. Bonds, Taxable Build America Bonds, Series2010-3, 5.727% 2020 | 2,400 | 2,419 | ||||||
G.O. Bonds, Taxable Build America Bonds, Series2010-5, 6.20% 2021 | 3,892 | 4,034 | ||||||
Other securities | 41,384 | |||||||
|
| |||||||
202,143 | ||||||||
|
| |||||||
Other 0.23% | ||||||||
Other securities | 24,014 | |||||||
|
| |||||||
Total municipals | 226,157 | |||||||
|
| |||||||
Federal agency bonds & notes 0.12% | ||||||||
Fannie Mae 2.125% 2026 | 11,910 | 12,086 | ||||||
|
| |||||||
Total bonds, notes & other debt instruments (cost: $9,994,467,000) | 10,314,803 | |||||||
|
| |||||||
Common stocks 0.00% | ||||||||
Shares | ||||||||
Other 0.00% | ||||||||
Other securities | 144 | |||||||
|
| |||||||
Total common stocks (cost: $605,000) | 144 | |||||||
|
| |||||||
Rights & warrants 0.00% | ||||||||
Energy 0.00% | ||||||||
Other securities | 3 | |||||||
|
| |||||||
Total rights & warrants (cost: $18,000) | 3 | |||||||
|
| |||||||
Short-term securities 5.71% | ||||||||
Money market investments 5.71% | ||||||||
Capital Group Central Cash Fund 1.73%7 | 6,024,511 | 602,451 | ||||||
|
| |||||||
Total short-term securities (cost: $602,341,000) | 602,451 | |||||||
|
| |||||||
Total investment securities 103.47% (cost: $10,597,431,000) | 10,917,401 | |||||||
Other assets less liabilities (3.47)% | (366,241 | ) | ||||||
|
| |||||||
Net assets 100.00% | $ | 10,551,160 | ||||||
|
|
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 that were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities that were valued under fair value procedures was $3,541,000, which represented .03% 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 $87,000, which represented less than .01% of the net assets of the fund.
92 American Funds Insurance Series
Table of Contents
Bond Fund
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount8 (000) | Value at 12/31/20199 (000) | Unrealized (depreciation) appreciation at 12/31/2019 (000) | ||||||||||||||||
2 Year U.S. Treasury Note Futures | Long | 9,081 | April 2020 | $ | 1,816,200 | $ | 1,956,956 | $ | (375 | ) | ||||||||||||
5 Year Euro-Bobl Futures | Short | 1,633 | March 2020 | € | (163,300) | (244,775 | ) | 804 | ||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 11,307 | April 2020 | $ | 1,130,700 | 1,341,116 | (5,279 | ) | ||||||||||||||
10 Year Euro-Bund Futures | Short | 532 | March 2020 | € | (53,200) | (101,739 | ) | 972 | ||||||||||||||
10 Year U.S. Treasury Note Futures | Short | 489 | March 2020 | $ | (48,900) | (62,798 | ) | 663 | ||||||||||||||
10 Year Ultra U.S. Treasury Note Futures | Short | 3,335 | March 2020 | (333,500) | (469,245 | ) | 5,934 | |||||||||||||||
30 Year Euro-Buxl Futures | Long | 272 | March 2020 | € | 27,200 | 60,526 | (1,684 | ) | ||||||||||||||
30 Year Ultra U.S. Treasury Bond Futures | Long | 924 | March 2020 | $ | 92,400 | 167,850 | (5,114 | ) | ||||||||||||||
|
| |||||||||||||||||||||
$(4,079) | ||||||||||||||||||||||
|
|
Forward currency contracts
Contract amount | Counterparty | Settlement date | Unrealized appreciation (depreciation) | |||||||||||||
Purchases (000) | Sales (000) | at 12/31/2019 (000) | ||||||||||||||
EUR | 69,777 | USD | 77,714 | Citibank | 1/6/2020 | $ | 584 | |||||||||
EUR | 3,926 | USD | 4,371 | Bank of New York Mellon | 1/6/2020 | 35 | ||||||||||
USD | 81,563 | EUR | 73,700 | Morgan Stanley | 1/6/2020 | (1,137 | ) | |||||||||
USD | 38,670 | MXN | 755,000 | Barclays Bank PLC | 1/7/2020 | (1,224 | ) | |||||||||
KRW | 96,758,000 | USD | 82,788 | Citibank | 1/9/2020 | 899 | ||||||||||
KRW | 96,758,000 | USD | 82,809 | JPMorgan Chase | 1/9/2020 | 878 | ||||||||||
USD | 104 | MXN | 2,000 | Barclays Bank PLC | 1/13/2020 | (2 | ) | |||||||||
USD | 121,292 | EUR | 109,250 | HSBC Bank | 1/13/2020 | (1,355 | ) | |||||||||
USD | 99,139 | JPY | 10,730,000 | Citibank | 1/14/2020 | 306 | ||||||||||
USD | 13,351 | JPY | 1,445,000 | Goldman Sachs | 1/15/2020 | 41 | ||||||||||
USD | 51,458 | EUR | 46,000 | Morgan Stanley | 1/23/2020 | (216 | ) | |||||||||
|
| |||||||||||||||
$ | (1,191 | ) | ||||||||||||||
|
|
American Funds Insurance Series 93
Table of Contents
Bond Fund
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2019 (000) | Upfront payments/ receipts (000) | Unrealized (depreciation) appreciation at 12/31/2019 (000) | ||||||||||||||||
1.355% | U.S. EFFR | 10/24/2021 | $ | 95,600 | $ | (160 | ) | $ | — | $ | (160 | ) | ||||||||||
1.339% | U.S. EFFR | 10/24/2021 | 173,700 | (341 | ) | — | (341 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.18075% | 3/29/2024 | 31,600 | (621 | ) | — | (621 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.194% | 3/29/2024 | 31,900 | (644 | ) | — | (644 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.21875% | 3/29/2024 | 33,500 | (710 | ) | — | (710 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.3105% | 5/3/2024 | 275,590 | (7,009 | ) | — | (7,009 | ) | ||||||||||||||
6-month EURIBOR | 0.9852% | 10/17/2024 | € | 25,000 | (1,512 | ) | — | (1,512 | ) | |||||||||||||
3-monthUSD-LIBOR | 1.556% | 11/27/2024 | $ | 148,600 | 1,222 | — | 1,222 | |||||||||||||||
3-monthUSD-LIBOR | 1.561% | 11/27/2024 | 148,600 | 1,187 | — | 1,187 | ||||||||||||||||
3-monthUSD-LIBOR | 1.554% | 11/27/2024 | 126,300 | 1,051 | — | 1,051 | ||||||||||||||||
3-monthUSD-LIBOR | 1.5335% | 11/29/2024 | 148,500 | 1,373 | — | 1,373 | ||||||||||||||||
6-monthJPY-LIBOR | 0.0875% | 3/10/2026 | ¥ | 11,100,000 | (228 | ) | — | (228 | ) | |||||||||||||
6-monthJPY-LIBOR | 0.58295% | 3/23/2046 | 2,000,000 | (760 | ) | — | (760 | ) | ||||||||||||||
0.64355% | 6-monthJPY-LIBOR | 4/27/2046 | 2,000,000 | 1,046 | — | 1,046 | ||||||||||||||||
|
|
|
| |||||||||||||||||||
$ | — | $ | (6,106 | ) | ||||||||||||||||||
|
|
|
|
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 | Coupon rate may change periodically. Reference rate and spread are as of the most recent information available. Some coupon rates are determined by the issuer or agent based on current market conditions; therefore, the reference rate and spread are not available. |
3 | Purchased on a TBA basis. |
4 | 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 $1,120,890,000, which represented 10.62% 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 $40,365,000, which represented .38% of the net assets of the fund. |
6 | Index-linked bond whose principal amount moves with a government price index. |
7 | Rate represents theseven-day yield at 12/31/2019. |
8 | Notional amount is calculated based on the number of contracts and notional contract size. |
9 | Value is calculated based on the notional amount and current market price. |
Key to abbreviations and symbols
EFFR = Effective Federal Funds Rate
EUR/€ = Euros
EURIBOR = Euro Interbank Offered Rate
G.O. = General Obligation
JPY/¥ = Japanese yen
KRW = South Korean won
LIBOR = London Interbank Offered Rate
MXN = Mexican pesos
TBA =To-be-announced
USD/$ = U.S. dollars
See notes to financial statements.
94 American Funds Insurance Series
Table of Contents
Summary investment portfolioDecember 31, 2019
Bonds, notes & other debt instruments 93.61%
Principal amount (000) | Value (000) | |||||||
Euros 17.85% | ||||||||
Canada 3.50% 2020 | € | 2,500 | $ | 2,807 | ||||
China (People’s Republic of) 0.125% 2026 | 1,400 | 1,565 | ||||||
French Republic O.A.T. 0.50% 2029 | 14,440 | 16,845 | ||||||
French Republic O.A.T. 0%-2.00% 2029-2048 | 6,215 | 7,390 | ||||||
Germany (Federal Republic of) 0% 2029 | 12,440 | 14,209 | ||||||
Germany (Federal Republic of) 0.10%-1.25% 2026-20481 | 9,753 | 12,574 | ||||||
Greece (Hellenic Republic of) 3.45% 2024 | 11,275 | 14,205 | ||||||
Greece (Hellenic Republic of) 3.75% 2028 | 12,204 | 16,210 | ||||||
Greece (Hellenic Republic of) 3.875% 2029 | 24,005 | 32,521 | ||||||
Greece (Hellenic Republic of) 3.38%-4.20% 2025-2042 | 14,304 | 19,355 | ||||||
Israel (State of) 1.50%-1.50% 2027-2029 | 1,500 | 1,834 | ||||||
Italy (Republic of) 0.10% 20231 | 22,007 | 25,004 | ||||||
Italy (Republic of) 2.80% 2028 | 32,938 | 41,841 | ||||||
Italy (Republic of) 3.00% 2029 | 7,440 | 9,620 | ||||||
Italy (Republic of) 1.35%-3.85% 2022-2049 | 10,995 | 13,803 | ||||||
Portuguese Republic 2.875% 2025 | 7,625 | 9,934 | ||||||
Romania 4.625% 2049 | 12,905 | 17,913 | ||||||
Romania 2.88%-4.63% 2029-2049 | 11,085 | 14,042 | ||||||
Serbia (Republic of) 1.50% 2029 | 9,729 | 11,127 | ||||||
Spain (Kingdom of) 1.45% 2027 | 8,975 | 10,990 | ||||||
State Grid Europe Development (2014) PLC 1.50% 2022 | 194 | 224 | ||||||
State Grid Overseas Investment Ltd. 1.25%-2.13% 2022-2030 | 1,406 | 1,646 | ||||||
Other securities | 84,217 | |||||||
|
| |||||||
379,876 | ||||||||
|
| |||||||
Japanese yen 13.35% | ||||||||
Export-Import Bank of India 0.59% 2022 | ¥ | 400,000 | 3,667 | |||||
Japan, Series 19, 0.10% 20241 | 2,438,212 | 22,821 | ||||||
Japan, Series 18, 0.10% 20241 | 1,966,375 | 18,378 | ||||||
Japan, Series 346, 0.10% 2027 | 3,125,000 | 29,185 | ||||||
Japan, Series 23, 0.10% 20281 | 2,001,246 | 18,953 | ||||||
Japan, Series 356, 0.10% 2029 | 6,560,000 | 61,085 | ||||||
Japan, Series 24, 0.10% 20291 | 1,614,981 | 15,294 | ||||||
Japan, Series 116, 2.20% 2030 | 1,735,000 | 19,571 | ||||||
Japan, Series 145, 1.70% 2033 | 2,210,000 | 24,705 | ||||||
Japan, Series 42, 1.70% 2044 | 911,900 | 11,047 | ||||||
Japan 0.10%-2.30% 2025-20481 | 4,244,123 | 42,504 | ||||||
United Mexican States 0.62%-0.70% 2021-2022 | 700,000 | 6,468 | ||||||
Other securities | 10,438 | |||||||
|
| |||||||
284,116 | ||||||||
|
| |||||||
Chinese yuan renminbi 3.25% | ||||||||
China (People’s Republic of), Series 1906, 3.29% 2029 | CNY | 49,600 | 7,199 | |||||
China (People’s Republic of), Series 1910, 3.86% 2049 | 172,240 | 25,394 | ||||||
China Development Bank Corp., Series 1905, 3.48% 2029 | 203,200 | 28,709 | ||||||
China Development Bank Corp. 4.04%-4.15% 2025-2028 | 53,900 | 7,966 | ||||||
|
| |||||||
69,268 | ||||||||
|
| |||||||
Malaysian ringgits 1.83% | ||||||||
Malaysia (Federation of), Series 0319, 3.478% 2024 | MYR | 61,900 | 15,312 | |||||
Malaysia (Federation of), Series 0418, 4.893% 2038 | 61,226 | 17,060 | ||||||
Malaysia (Federation of) 4.06%-4.92% 2024-2048 | 24,420 | 6,472 | ||||||
|
| |||||||
38,844 | ||||||||
|
| |||||||
Indian rupees 1.66% | ||||||||
India (Republic of) 6.79%-8.83% 2023-2029 | INR | 2,171,550 | 31,489 | |||||
Other securities | 3,807 | |||||||
|
| |||||||
35,296 | ||||||||
|
|
American Funds Insurance Series 95
Table of Contents
Global Bond Fund
Bonds, notes & other debt instruments (continued)
Principal amount (000) | Value (000) | |||||||
Brazilian reais 1.58% | ||||||||
Brazil (Federative Republic of) 0% 2020 | BRL | 91,700 | $ | 22,329 | ||||
Brazil (Federative Republic of) 0%-10.00% 2020-2025 | 43,700 | 11,304 | ||||||
|
| |||||||
33,633 | ||||||||
|
| |||||||
South African rand 1.46% | ||||||||
South Africa (Republic of), SeriesR-214, 6.50% 2041 | ZAR | 168,450 | 8,383 | |||||
South Africa (Republic of), SeriesR-2044, 8.75% 2044 | 192,925 | 12,121 | ||||||
South Africa (Republic of), SeriesR-2048, 8.75% 2048 | 167,350 | 10,554 | ||||||
|
| |||||||
31,058 | ||||||||
|
| |||||||
Danish kroner 1.45% | ||||||||
Nykredit Realkredit AS, Series 01E, 1.50% 20402 | DKr | 134,552 | 20,876 | |||||
Nykredit Realkredit AS 1.50%-2.50% 2037-20472 | 64,600 | 10,069 | ||||||
|
| |||||||
30,945 | ||||||||
|
| |||||||
British pounds 1.37% | ||||||||
United Kingdom 1.50%-4.25% 2023-2047 | £ | 17,380 | 27,482 | |||||
Other securities | 1,731 | |||||||
|
| |||||||
29,213 | ||||||||
|
| |||||||
Canadian dollars 1.29% | ||||||||
Canada 2.25% 2025 | C$ | 29,450 | 23,346 | |||||
Canada 1.00%-2.75% 2022-2048 | 4,550 | 4,093 | ||||||
|
| |||||||
27,439 | ||||||||
|
| |||||||
Mexican pesos 1.26% | ||||||||
Petróleos Mexicanos 7.19%-7.47% 2024-2026 | MXN | 99,000 | 4,619 | |||||
United Mexican States, Series M, 7.50% 2027 | 291,520 | 16,028 | ||||||
United Mexican States, Series M20, 8.50% 2029 | 106,000 | 6,244 | ||||||
|
| |||||||
26,891 | ||||||||
|
| |||||||
Norwegian kroner 1.16% | ||||||||
Norway (Kingdom of) 3.75% 2021 | NKr | 111,851 | 13,170 | |||||
Norway (Kingdom of) 2.00% 2023 | 99,579 | 11,570 | ||||||
|
| |||||||
24,740 | ||||||||
|
| |||||||
Israeli shekels 1.11% | ||||||||
Israel (State of) 2.00% 2027 | ILS | 42,900 | 13,547 | |||||
Israel (State of) 5.50% 2042 | 20,200 | 10,041 | ||||||
|
| |||||||
23,588 | ||||||||
|
| |||||||
Polish zloty 0.82% | ||||||||
Poland (Republic of), Series 0922, 5.75% 2022 | PLN | 36,700 | 10,733 | |||||
Poland (Republic of) 2.75%-5.75% 2021-2029 | 24,080 | 6,804 | ||||||
|
| |||||||
17,537 | ||||||||
|
| |||||||
U.S. dollars 41.38% | ||||||||
Electricité de France SA 4.875% 20383 | $ | 795 | 934 | |||||
Fannie Mae Pool #MA3692 3.50% 20492 | 21,336 | 21,926 | ||||||
Fannie Mae Pool #MA3776 4.00% 20492 | 9,182 | 9,583 | ||||||
Fannie Mae 2.18%-4.00% 2022-20492 | 29,820 | 30,981 | ||||||
Freddie Mac Pool #ZT1545 4.00% 20482 | 21,875 | 22,779 | ||||||
Freddie Mac 0%-4.00% 2030-20492,4 | 23,510 | 24,327 | ||||||
Government National Mortgage Assn. Pool #MA5987 4.50% 20492 | 9,195 | 9,643 | ||||||
Petróleos Mexicanos 6.35% 2048 | 927 | 898 | ||||||
Poland (Republic of) 3.25%-4.00% 2024-2026 | 5,570 | 5,932 | ||||||
South Africa (Republic of) 5.50% 2020 | 1,900 | 1,913 | ||||||
State Grid Overseas Investment Ltd. 3.50% 20273 | 5,600 | 5,865 | ||||||
Statoil ASA 3.70%-4.25% 2024-2041 | 2,950 | 3,235 | ||||||
U.S. Treasury 1.50% 20245 | 38,920 | 38,608 | ||||||
U.S. Treasury 2.75% 2025 | 10,140 | 10,683 |
96 American Funds Insurance Series
Table of Contents
Global Bond Fund
Bonds, notes & other debt instruments
Principal amount (000) | Value (000) | |||||||
U.S. Treasury 2.875% 20285 | $ | 19,850 | $ | 21,358 | ||||
U.S. Treasury 1.625% 2029 | 12,500 | 12,176 | ||||||
U.S. Treasury 3.00% 20485 | 8,325 | 9,378 | ||||||
U.S. Treasury 1.50%-3.00% 2020-20495 | 54,050 | 56,040 | ||||||
U.S. Treasury Inflation-Protected Security 0.25% 20291,5 | 13,782 | 13,935 | ||||||
U.S. Treasury Inflation-Protected Security 0.875% 20291,5 | 78,843 | 83,772 | ||||||
U.S. Treasury Inflation-Protected Security 1.00% 20491,5 | 29,605 | 32,951 | ||||||
U.S. Treasury Inflation-Protected Securities 0.38%-1.38% 2025-20441,5 | 13,875 | 15,113 | ||||||
Other securities | 448,836 | |||||||
|
| |||||||
880,866 | ||||||||
|
| |||||||
Other 2.79% | ||||||||
Other securities | 59,257 | |||||||
|
| |||||||
Total bonds, notes & other debt instruments (cost: $1,932,196,000) | 1,992,567 | |||||||
|
| |||||||
Convertible bonds 0.00% | ||||||||
U.S. dollars 0.00% | ||||||||
Other securities | 10 | |||||||
|
| |||||||
Total convertible bonds(cost: $8,000) | 10 | |||||||
|
| |||||||
Convertible stocks 0.04% | ||||||||
Shares | ||||||||
U.S. dollars 0.04% | ||||||||
Other securities | 847 | |||||||
|
| |||||||
Total convertible stocks(cost: $816,000) | 847 | |||||||
|
| |||||||
Common stocks 0.05% | ||||||||
U.S. dollars 0.05% | ||||||||
Other securities | 1,142 | |||||||
|
| |||||||
Total common stocks(cost: $2,504,000) | 1,142 | |||||||
|
| |||||||
Rights & warrants 0.01% | ||||||||
U.S. dollars 0.01% | ||||||||
Other securities | 130 | |||||||
|
| |||||||
Total rights & warrants(cost: $427,000) | 130 | |||||||
|
| |||||||
Short-term securities 5.83% | ||||||||
Money market investments 3.65% | ||||||||
Capital Group Central Cash Fund 1.73%6 | 777,446 | 77,745 | ||||||
|
|
American Funds Insurance Series 97
Table of Contents
Global Bond Fund
Short-term securities (continued)
Principal amount (000) | Value (000) | |||||||
Other short-term securities 2.18% | ||||||||
Canadian Treasury Bills 1.67%-1.68% due 9/17/2020-10/15/2020 | C$ | 24,270 | $ | 18,446 | ||||
Greek Treasury Bills (0.03)% due 6/5/2020 | € | 7,275 | 8,167 | |||||
Other securities | 19,839 | |||||||
|
| |||||||
46,452 | ||||||||
|
| |||||||
Total short-term securities (cost: $125,174,000) | 124,197 | |||||||
|
| |||||||
Total investment securities 99.54%(cost: $2,061,125,000) | 2,118,893 | |||||||
Other assets less liabilities 0.46% | 9,751 | |||||||
|
| |||||||
Net assets 100.00% | $ | 2,128,644 | ||||||
|
|
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 that were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities that were valued under fair value procedures was $2,425,000, which represented .11% 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 $3,927,000, which represented .18% of the net assets of the fund. One security in “Other securities” (with a value of $27,000, an aggregate cost of $116,000, and which represented less than .01% of the net assets of the fund) was acquired on 8/31/2018 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject it to legal or contractual restrictions on resale.
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount7 (000) | Value at 12/31/20198 (000) | Unrealized (depreciation) appreciation at 12/31/2019 (000) | ||||||||||||||||||
2 Year U.S. Treasury Note Futures | Long | 410 | April 2020 | $ | 82,000 | $ | 88,355 | $ | (46 | ) | ||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 922 | April 2020 | 92,200 | 109,358 | (407 | ) | |||||||||||||||||
10 Year Euro-Bund Futures | Short | 92 | March 2020 | € | (9,200 | ) | (17,594 | ) | 76 | |||||||||||||||
10 Year U.S. Treasury Note Futures | Long | 165 | March 2020 | $ | 16,500 | 21,189 | (197 | ) | ||||||||||||||||
20 Year U.S. Treasury Bond Futures | Long | 37 | March 2020 | 3,700 | 5,768 | (129 | ) | |||||||||||||||||
30 Year Euro-Buxl Futures | Long | 42 | March 2020 | € | 4,200 | 9,346 | (260 | ) | ||||||||||||||||
30 Year Ultra U.S. Treasury Bond Futures | Short | 28 | March 2020 | $ | (2,800 | ) | (5,086 | ) | 158 | |||||||||||||||
|
| |||||||||||||||||||||||
$ | (805 | ) | ||||||||||||||||||||||
|
|
Forward currency contracts
Contract amount | Unrealized appreciation (depreciation) | |||||||||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | at 12/31/2019 (000) | ||||||||||||
AUD | 10,600 | USD | 7,267 | Goldman Sachs | 1/6/2020 | $ | 173 | |||||||||
EUR | 2,575 | USD | 2,859 | JPMorgan Chase | 1/6/2020 | 31 | ||||||||||
EUR | 2,800 | USD | 3,113 | Standard Chartered Bank | 1/6/2020 | 29 | ||||||||||
THB | 20 | USD | 1 | JPMorgan Chase | 1/6/2020 | — | 9 | |||||||||
USD | 11,342 | ILS | 39,170 | JPMorgan Chase | 1/6/2020 | (4 | ) | |||||||||
USD | 3,598 | ZAR | 53,200 | Citibank | 1/6/2020 | (198 | ) | |||||||||
USD | 10,597 | JPY | 1,149,000 | UBS AG | 1/7/2020 | 18 | ||||||||||
USD | 592 | ZAR | 8,780 | Morgan Stanley | 1/7/2020 | (35 | ) | |||||||||
JPY | 1,496,000 | USD | 13,823 | JPMorgan Chase | 1/7/2020 | (48 | ) | |||||||||
USD | 2,740 | MXN | 54,000 | Goldman Sachs | 1/7/2020 | (113 | ) | |||||||||
USD | 10,625 | EUR | 9,610 | HSBC Bank | 1/7/2020 | (159 | ) |
98 American Funds Insurance Series
Table of Contents
Global Bond Fund
Forward currency contracts (continued)
Contract amount | Unrealized appreciation (depreciation) | |||||||||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | at 12/31/2019 (000) | ||||||||||||
USD | 5,087 | ZAR | 74,900 | Bank of America | 1/7/2020 | $ | (256 | ) | ||||||||
USD | 5,533 | ZAR | 82,000 | JPMorgan Chase | 1/7/2020 | (317 | ) | |||||||||
EUR | 6,400 | USD | 7,142 | Citibank | 1/8/2020 | 41 | ||||||||||
CZK | 165,000 | EUR | 6,461 | Goldman Sachs | 1/8/2020 | 28 | ||||||||||
USD | 11,470 | JPY | 1,244,630 | UBS AG | 1/8/2020 | 10 | ||||||||||
USD | 1,516 | CNH | 10,700 | HSBC Bank | 1/8/2020 | (21 | ) | |||||||||
USD | 7,105 | EUR | 6,400 | Goldman Sachs | 1/8/2020 | (77 | ) | |||||||||
CLP | 12,189,000 | USD | 15,324 | Morgan Stanley | 1/9/2020 | 888 | ||||||||||
AUD | 5,850 | USD | 3,994 | Citibank | 1/9/2020 | 112 | ||||||||||
EUR | 6,815 | USD | 7,578 | Morgan Stanley | 1/9/2020 | 71 | ||||||||||
GBP | 2,800 | USD | 3,683 | Bank of America | 1/9/2020 | 27 | ||||||||||
USD | 7,142 | EUR | 6,400 | Citibank | 1/9/2020 | (41 | ) | |||||||||
USD | 1,225 | CLP | 982,000 | Bank of America | 1/9/2020 | (82 | ) | |||||||||
USD | 2,071 | CLP | 1,654,653 | Citibank | 1/9/2020 | (130 | ) | |||||||||
USD | 7,386 | BRL | 31,080 | Goldman Sachs | 1/9/2020 | (338 | ) | |||||||||
USD | 4,981 | CLP | 4,000,347 | Citibank | 1/9/2020 | (340 | ) | |||||||||
USD | 6,794 | CLP | 5,552,000 | HSBC Bank | 1/9/2020 | (591 | ) | |||||||||
USD | 1,522 | INR | 109,575 | �� | JPMorgan Chase | 1/10/2020 | (12 | ) | ||||||||
EUR | 7,100 | USD | 7,883 | HSBC Bank | 1/13/2020 | 88 | ||||||||||
GBP | 7,659 | USD | 10,086 | Bank of America | 1/13/2020 | 63 | ||||||||||
USD | 829 | EUR | 745 | Standard Chartered Bank | 1/13/2020 | (8 | ) | |||||||||
USD | 4,717 | EUR | 4,249 | HSBC Bank | 1/13/2020 | (53 | ) | |||||||||
EUR | 9,079 | USD | 10,137 | Bank of New York Mellon | 1/15/2020 | 56 | ||||||||||
KRW | 10,058,500 | USD | 8,651 | Standard Chartered Bank | 1/15/2020 | 50 | ||||||||||
GBP | 15,670 | EUR | 18,547 | Goldman Sachs | 1/15/2020 | (59 | ) | |||||||||
CLP | 10,219,000 | USD | 13,139 | Goldman Sachs | 1/16/2020 | 454 | ||||||||||
GBP | 18,640 | USD | 24,544 | HSBC Bank | 1/16/2020 | 159 | ||||||||||
ILS | 12,500 | USD | 3,581 | Bank of America | 1/16/2020 | 42 | ||||||||||
JPY | 1,900,496 | USD | 17,468 | Citibank | 1/16/2020 | 40 | ||||||||||
CHF | 1,000 | USD | 1,019 | Citibank | 1/16/2020 | 15 | ||||||||||
CAD | 880 | USD | 668 | JPMorgan Chase | 1/16/2020 | 10 | ||||||||||
USD | 818 | INR | 58,300 | Standard Chartered Bank | 1/16/2020 | 2 | ||||||||||
USD | 7,771 | CLP | 5,841,270 | Goldman Sachs | 1/16/2020 | 1 | ||||||||||
USD | 9,358 | ILS | 32,500 | UBS AG | 1/16/2020 | (61 | ) | |||||||||
USD | 7,864 | MXN | 150,700 | Citibank | 1/16/2020 | (87 | ) | |||||||||
EUR | 21,331 | NOK | 216,090 | Bank of America | 1/16/2020 | (664 | ) | |||||||||
JPY | 2,842,160 | USD | 26,002 | Barclays Bank PLC | 1/17/2020 | 181 | ||||||||||
EUR | 7,460 | USD | 8,345 | Bank of America | 1/17/2020 | 32 | ||||||||||
EUR | 6,190 | USD | 6,925 | Citibank | 1/17/2020 | 26 | ||||||||||
EUR | 3,200 | USD | 3,582 | Standard Chartered Bank | 1/17/2020 | 11 | ||||||||||
USD | 20,818 | EUR | 18,600 | Morgan Stanley | 1/17/2020 | (68 | ) | |||||||||
AUD | 21,200 | USD | 14,619 | Citibank | 1/21/2020 | 266 | ||||||||||
MXN | 172,760 | USD | 9,081 | Standard Chartered Bank | 1/21/2020 | 26 | ||||||||||
JPY | 398,400 | USD | 3,649 | UBS AG | 1/21/2020 | 22 | ||||||||||
USD | 9,099 | MXN | 172,760 | UBS AG | 1/21/2020 | (8 | ) | |||||||||
USD | 4,856 | MYR | 20,120 | HSBC Bank | 1/21/2020 | (59 | ) | |||||||||
GBP | 5,460 | USD | 7,302 | Standard Chartered Bank | 1/21/2020 | (65 | ) | |||||||||
EUR | 23,977 | USD | 26,822 | Citibank | 1/23/2020 | 113 | ||||||||||
JPY | 1,354,660 | USD | 12,395 | Goldman Sachs | 1/23/2020 | 89 | ||||||||||
USD | 3,582 | INR | 254,800 | HSBC Bank | 1/23/2020 | 20 | ||||||||||
USD | 3,158 | MXN | 59,979 | UBS AG | 1/23/2020 | (2 | ) | |||||||||
USD | 3,400 | CNH | 23,800 | JPMorgan Chase | 1/23/2020 | (18 | ) | |||||||||
USD | 4,756 | CNH | 33,330 | UBS AG | 1/23/2020 | (30 | ) | |||||||||
USD | 33,503 | EUR | 29,950 | Morgan Stanley | 1/23/2020 | (141 | ) | |||||||||
USD | 1,658 | COP | 5,509,000 | Citibank | 1/24/2020 | (16 | ) | |||||||||
USD | 7,324 | AUD | 10,670 | Citibank | 1/24/2020 | (169 | ) | |||||||||
EUR | 25,135 | USD | 28,021 | Standard Chartered Bank | 1/27/2020 | 221 |
American Funds Insurance Series 99
Table of Contents
Global Bond Fund
Forward currency contracts(continued)
Contract amount | Unrealized appreciation (depreciation) | |||||||||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | at 12/31/2019 (000) | ||||||||||||
USD | 4,205 | INR | 299,650 | Standard Chartered Bank | 1/27/2020 | $ | 19 | |||||||||
USD | 514 | BRL | 2,100 | JPMorgan Chase | 1/27/2020 | (7 | ) | |||||||||
USD | 5,822 | EUR | 5,220 | JPMorgan Chase | 1/27/2020 | (44 | ) | |||||||||
EUR | 5,010 | USD | 5,594 | Standard Chartered Bank | 1/30/2020 | 36 | ||||||||||
CNH | 60,800 | USD | 8,591 | Standard Chartered Bank | 2/10/2020 | 135 | ||||||||||
CNH | 18,800 | USD | 2,668 | Standard Chartered Bank | 2/10/2020 | 30 | ||||||||||
USD | 3,927 | CNH | 27,700 | HSBC Bank | 2/10/2020 | (48 | ) | |||||||||
USD | 19,976 | CNH | 142,790 | Standard Chartered Bank | 2/10/2020 | (517 | ) | |||||||||
USD | 7,131 | MXN | 141,260 | JPMorgan Chase | 3/4/2020 | (269 | ) | |||||||||
EUR | 27,760 | USD | 31,090 | HSBC Bank | 3/17/2020 | 200 | ||||||||||
USD | 4,553 | EUR | 3,940 | Bank of America | 3/26/2020 | 109 | ||||||||||
EUR | 2,580 | USD | 2,888 | HSBC Bank | 3/26/2020 | 22 | ||||||||||
USD | 393 | EUR | 340 | JPMorgan Chase | 3/26/2020 | 10 | ||||||||||
USD | 2,937 | BRL | 12,100 | JPMorgan Chase | 4/1/2020 | (59 | ) | |||||||||
USD | 21,630 | BRL | 91,700 | Citibank | 7/1/2020 | (972 | ) | |||||||||
|
| |||||||||||||||
$ | (2,210 | ) | ||||||||||||||
|
|
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2019 (000) | Upfront payments/ receipts (000) | Unrealized (depreciation) appreciation at 12/31/2019 (000) | ||||||||||||||||
(0.0955)% | 6-month EURIBOR | 7/22/2024 | € | 64,700 | $ | (156 | ) | $ | — | $ | (156 | ) | ||||||||||
(0.356)% | 6-month EURIBOR | 8/9/2024 | 60,000 | (511 | ) | — | (511 | ) | ||||||||||||||
6-monthHUF-BUBOR | 1.39% | 11/11/2029 | HUF | 2,335,000 | 106 | — | 106 | |||||||||||||||
6-monthPLN-WIBOR | 1.90% | 11/12/2029 | PLN | 30,800 | (26 | ) | — | (26 | ) | |||||||||||||
6-monthPLN-WIBOR | 1.88% | 11/20/2029 | 30,710 | (11 | ) | — | (11 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.0105% | 12/18/2049 | $ | 3,125 | 59 | — | 59 | |||||||||||||||
|
|
|
| |||||||||||||||||||
$ | — | $ | (539 | ) | ||||||||||||||||||
|
|
|
|
Credit default swaps
Centrally cleared credit default swaps on credit indices — sell protection
Receive/ Payment frequency | Pay | Expiration date | Notional (000) | Value at 12/31/2019 (000) | Upfront receipts (000) | Unrealized appreciation at 12/31/2019 (000) | ||||||||||||||||
1.00%/Quarterly | CDX.NA.IG.33 | 12/20/2024 | $ | 130,250 | $ | 3,377 | $ | 2,646 | $ | 731 |
100 American Funds Insurance Series
Table of Contents
Global 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 | Index-linked bond whose principal amount moves with a government price index. |
2 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
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 $185,840,000, which represented 8.73% of the net assets of the fund. |
4 | Coupon rate may change periodically. Reference rate and spread are as of the most recent information available. Some coupon rates are determined by the issuer or agent based on current market conditions; therefore, the reference rate and spread are not available. |
5 | All or a portion of this security was pledged as collateral. The total value of pledged collateral was $9,498,000, which represented .45% of the net assets of the fund. |
6 | Rate represents theseven-day yield at 12/31/2019. |
7 | Notional amount is calculated based on the number of contracts and notional contract size. |
8 | Value is calculated based on the notional amount and current market price. |
9 | Amount less than one thousand. |
Key to abbreviations and symbols
AUD = Australian dollars |
BRL = Brazilian reais |
BUBOR = Budapest Interbank Offered Rate |
CAD/C$ = Canadian dollars |
CHF = Swiss francs |
CLP = Chilean pesos |
CNH/CNY = Chinese yuan renminbi |
COP = Colombian pesos |
CZK = Czech korunas |
DKr = Danish kroner |
EUR/€ = Euros |
EURIBOR = Euro Interbank Offered Rate |
GBP/£ = British pounds |
HUF = Hungarian forints |
ILS = Israeli shekels |
INR = Indian rupees |
JPY/¥ = Japanese yen |
KRW = South Korean won |
MXN = Mexican pesos |
MYR = Malaysian ringgits |
NOK/NKr = Norwegian kroner |
PLN = Polish zloty |
THB = Thai baht |
WIBOR = Warsaw Interbank Offer Rate |
ZAR = South African rand |
See notes to financial statements.
American Funds Insurance Series 101
Table of Contents
Summary investment portfolioDecember 31, 2019
Bonds, notes & other debt instruments 92.80%
Principal amount (000) | Value (000) | |||||||
Corporate bonds & notes 92.80% | ||||||||
Communication services 16.19% | ||||||||
Cablevision Systems Corp. 6.75% 2021 | $ | 5,025 | $ | 5,419 | ||||
CCO Holdings LLC and CCO Holdings Capital Corp. 5.75% 20261 | 6,450 | 6,817 | ||||||
CCO Holdings LLC and CCO Holdings Capital Corp. 4.00%-5.88% 2023-20301 | 10,165 | 10,491 | ||||||
CenturyLink, Inc. 6.75% 2023 | 7,100 | 7,940 | ||||||
CenturyLink, Inc. 5.13%-7.50% 2022-20261 | 3,875 | 4,037 | ||||||
Embarq Corp. 7.995% 2036 | 1,275 | 1,351 | ||||||
Frontier Communications Corp. 11.00% 2025 | 16,070 | 7,834 | ||||||
Frontier Communications Corp. 8.00%-10.50% 2020-20271 | 12,790 | 9,411 | ||||||
Gogo Inc. 9.875% 20241 | 14,750 | 15,610 | ||||||
Intelsat Jackson Holding Co. 8.50% 20241 | 6,100 | 5,569 | ||||||
Level 3 Communications, Inc. 3.875% 20291 | 1,450 | 1,464 | ||||||
MDC Partners Inc. 6.50% 20241 | 9,510 | 8,630 | ||||||
Qwest Capital Funding, Inc. 6.875% 2028 | 1,100 | 1,087 | ||||||
Sprint Corp. 6.875% 2028 | 5,395 | 5,823 | ||||||
Sprint Corp. 7.13%-11.50% 2021-2032 | 10,350 | 11,813 | ||||||
Univision Communications Inc. 5.125% 20231 | 6,200 | 6,200 | ||||||
Other securities | 95,517 | |||||||
|
| |||||||
205,013 | ||||||||
|
| |||||||
Health care 15.42% | ||||||||
Bausch Health Cos. Inc. 5.00%-7.00% 2028-20301 | 6,955 | 7,296 | ||||||
Centene Corp. 4.625% 20291 | 6,985 | 7,374 | ||||||
Centene Corp. 4.25%-6.13% 2022-20271 | 15,605 | 16,182 | ||||||
Endo International PLC 5.75%-6.00% 2022-20251,2 | 15,759 | 11,863 | ||||||
Kinetic Concepts, Inc. 12.50% 20211 | 6,573 | 6,781 | ||||||
Mallinckrodt PLC 4.875% 20201 | 11,135 | 8,610 | ||||||
Molina Healthcare, Inc. 5.375% 2022 | 10,235 | 10,898 | ||||||
Molina Healthcare, Inc. 4.875% 20251 | 1,744 | 1,797 | ||||||
Par Pharmaceutical Cos. Inc. 7.50% 20271 | 5,755 | 5,741 | ||||||
Rotech Healthcare Inc., Term Loan,(3-monthUSD-LIBOR + 11.00%) 13.31% 2023 (100% PIK)3,4,5,6,7 | 5,665 | 5,721 | ||||||
Tenet Healthcare Corp. 4.875% 20261 | 9,600 | 10,067 | ||||||
Tenet Healthcare Corp. 4.63%-8.13% 2022-20271 | 8,717 | 9,359 | ||||||
Teva Pharmaceutical Finance Co. BV 2.80% 2023 | 6,891 | 6,406 | ||||||
Teva Pharmaceutical Finance Co. BV 6.00% 2024 | 8,192 | 8,307 | ||||||
Teva Pharmaceutical Finance Co. BV 2.20%-7.13% 2021-20281 | 8,526 | 8,079 | ||||||
Valeant Pharmaceuticals International, Inc. 6.125% 20251 | 12,430 | 12,869 | ||||||
Valeant Pharmaceuticals International, Inc. 9.25% 20261 | 4,670 | 5,373 | ||||||
Valeant Pharmaceuticals International, Inc. 5.88%-9.00% 2023-20271 | 6,235 | 6,642 | ||||||
Other securities | 45,896 | |||||||
|
| |||||||
195,261 | ||||||||
|
| |||||||
Materials 12.07% | ||||||||
Cleveland-Cliffs Inc. 4.875% 20241 | 5,375 | 5,505 | ||||||
Cleveland-Cliffs Inc. 5.75% 2025 | 6,831 | 6,758 | ||||||
Cleveland-Cliffs Inc. 5.875% 20271 | 8,285 | 7,969 | ||||||
First Quantum Minerals Ltd. 7.25% 20231 | 8,150 | 8,455 | ||||||
First Quantum Minerals Ltd. 7.50% 20251 | 11,100 | 11,373 | ||||||
First Quantum Minerals Ltd. 6.875% 20261 | 5,075 | 5,148 | ||||||
First Quantum Minerals Ltd. 6.50%-7.25% 2021-20241 | 5,665 | 5,696 | ||||||
LSB Industries, Inc. 9.625% 20231 | 5,010 | 5,159 | ||||||
Ryerson Inc. 11.00% 20221 | 5,191 | 5,489 | ||||||
Venator Materials Corp. 5.75% 20251 | 6,535 | 6,045 | ||||||
Other securities | 85,249 | |||||||
|
| |||||||
152,846 | ||||||||
|
|
102 American Funds Insurance Series
Table of Contents
High-Income Bond Fund
Bonds, notes & other debt instruments (continued)
Principal (000) | Value (000) | |||||||
Corporate bonds & notes (continued) | ||||||||
Energy 10.52% | ||||||||
CONSOL Energy Inc. 5.875% 2022 | $ | 7,366 | $ | 7,390 | ||||
Weatherford International PLC 11.00% 20241 | 6,660 | 7,218 | ||||||
Other securities | 118,661 | |||||||
|
| |||||||
133,269 | ||||||||
|
| |||||||
Consumer discretionary 9.69% | ||||||||
PetSmart, Inc. 7.125% 20231 | 10,565 | 10,380 | ||||||
PetSmart, Inc. 5.875% 20251 | 8,093 | 8,265 | ||||||
PetSmart, Inc. 8.875% 20251 | 9,205 | 9,113 | ||||||
Scientific Games Corp. 8.25% 20261 | 5,130 | 5,665 | ||||||
Staples, Inc. 7.50% 20261 | 8,100 | 8,419 | ||||||
Other securities | 80,879 | |||||||
|
| |||||||
122,721 | ||||||||
|
| |||||||
Industrials 8.71% | ||||||||
Builders FirstSource, Inc. 5.625% 20241 | 5,958 | 6,209 | ||||||
Dun & Bradstreet Corp. 10.25% 20271 | 5,303 | 6,108 | ||||||
FXI Holdings, Inc. 12.25% 20261 | 5,155 | 5,377 | ||||||
LSC Communications, Inc. 8.75% 20231 | 9,510 | 5,163 | ||||||
Other securities | 87,400 | |||||||
|
| |||||||
110,257 | ||||||||
|
| |||||||
Information technology 6.29% | ||||||||
Almonde Inc., Term Loan,(3-monthUSD-LIBOR + 7.25%) 9.446% 20255,7 | 5,370 | 5,263 | ||||||
Genesys Telecommunications Laboratories, Inc. 10.00% 20241 | 7,370 | 7,984 | ||||||
Infor (US), Inc. 6.50% 2022 | 5,400 | 5,491 | ||||||
Kronos Inc., Term Loan B,(3-monthUSD-LIBOR + 8.25%) 10.159% 20245,7 | 8,645 | 8,883 | ||||||
Unisys Corp. 10.75% 20221 | 6,600 | 7,113 | ||||||
Other securities | 44,854 | |||||||
|
| |||||||
79,588 | ||||||||
|
| |||||||
Financials 5.68% | ||||||||
Compass Diversified Holdings 8.00% 20261 | 5,260 | 5,709 | ||||||
FS Energy and Power Fund 7.50% 20231 | 7,115 | 7,308 | ||||||
Other securities | 58,955 | |||||||
|
| |||||||
71,972 | ||||||||
|
| |||||||
Utilities 2.96% | ||||||||
Talen Energy Corp. 10.50% 20261 | 5,425 | 5,173 | ||||||
Other securities | 32,249 | |||||||
|
| |||||||
37,422 | ||||||||
|
| |||||||
Real estate 2.64% | ||||||||
Howard Hughes Corp. 5.375% 20251 | 6,070 | 6,343 | ||||||
Other securities | 27,139 | |||||||
|
| |||||||
33,482 | ||||||||
|
| |||||||
Consumer staples 2.63% | ||||||||
Other securities | 33,285 | |||||||
|
| |||||||
Total corporate bonds & notes | 1,175,116 | |||||||
|
| |||||||
Municipals 0.00% | ||||||||
Other securities | 5 | |||||||
|
| |||||||
Total bonds, notes & other debt instruments (cost: $1,171,836,000) | 1,175,121 | |||||||
|
|
American Funds Insurance Series 103
Table of Contents
High-Income Bond Fund
Convertible bonds 0.37%
Principal amount (000) | Value (000) | |||||||
Communication services 0.22% | ||||||||
Gogo Inc., convertible notes, 6.00% 2022 | $ | 797 | $ | 1,001 | ||||
Other securities | 1,784 | |||||||
|
| |||||||
2,785 | ||||||||
|
| |||||||
Health care 0.10% | ||||||||
Teva Pharmaceutical Finance Co. BV, Series C, convertible bonds, 0.25% 2026 | 1,375 | 1,310 | ||||||
|
| |||||||
Materials 0.05% | ||||||||
Cleveland-Cliffs Inc., convertible notes, 1.50% 2025 | 500 | 599 | ||||||
|
| |||||||
Total convertible bonds(cost: $4,531,000) | 4,694 | |||||||
|
| |||||||
Convertible stocks 0.63% | ||||||||
Shares | ||||||||
Other 0.63% | ||||||||
Other securities | 8,057 | |||||||
|
| |||||||
Total convertible stocks (cost: $7,673,000) | 8,057 | |||||||
|
| |||||||
Preferred securities 0.17% | ||||||||
Consumer discretionary 0.17% | ||||||||
Other securities | 2,187 | |||||||
|
| |||||||
Total preferred securities (cost: $1,656,000) | 2,187 | |||||||
|
| |||||||
Common stocks 1.11% | ||||||||
Communication services 0.03% | ||||||||
Frontier Communications Corp.8 | 13,333 | 12 | ||||||
Other securities | 384 | |||||||
|
| |||||||
396 | ||||||||
|
| |||||||
Other 1.08% | ||||||||
Other securities | 13,639 | |||||||
|
| |||||||
Total common stocks (cost: $19,328,000) | 14,035 | |||||||
|
| |||||||
Rights & warrants 0.06% | ||||||||
Energy 0.06% | ||||||||
Other securities | 711 | |||||||
|
| |||||||
Total rights & warrants (cost: $2,287,000) | 711 | |||||||
|
| |||||||
Short-term securities 3.09% | ||||||||
Money market investments 3.09% | ||||||||
Capital Group Central Cash Fund 1.73%9 | 391,124 | 39,112 | ||||||
|
| |||||||
Total short-term securities (cost: $38,979,000) | 39,112 | |||||||
|
| |||||||
Total investment securities 98.23% (cost: $1,246,290,000) | 1,243,917 | |||||||
Other assets less liabilities 1.77% | 22,376 | |||||||
|
| |||||||
Net assets 100.00% | $ | 1,266,293 | ||||||
|
|
104 American Funds Insurance Series
Table of Contents
High-Income 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. Some securities in “Other securities” (with an aggregate value of $5,152,000, an aggregate cost of $5,650,000, and which represented .41% of the net assets of the fund) were acquired from 9/26/2013 to 8/31/2018 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 amount10 (000) | Value at 12/31/201911 (000) | Unrealized (depreciation) appreciation at 12/31/2019 (000) | ||||||||||||||||
2 Year U.S. Treasury Note Futures | Long | 295 | April 2020 | $ | 59,000 | $ | 63,572 | $ | (33 | ) | ||||||||||||
10 Year Ultra U.S. Treasury Note Futures | Short | 113 | March 2020 | (11,300 | ) | (15,899 | ) | 192 | ||||||||||||||
|
| |||||||||||||||||||||
$ | 159 | |||||||||||||||||||||
|
|
Swap contracts
Credit default swaps
Centrally cleared credit default swaps on credit indices — buy protection
Receive | Pay/ Payment frequency | Expiration date | Notional (000) | Value at 12/31/2019 (000) | Upfront payments (000) | Unrealized depreciation at 12/31/2019 (000) | ||||||||||||||||
CDX.NA.IG.33 | 1.00%/Quarterly | 12/20/2024 | $ | 41,200 | $ | (1,068 | ) | $ | (970 | ) | $ | (98 | ) | |||||||||
CDX.NA.HY.33 | 5.00%/Quarterly | 12/20/2024 | 53,680 | (5,171 | ) | (3,691 | ) | (1,480 | ) | |||||||||||||
|
|
|
| |||||||||||||||||||
$ | (4,661 | ) | $ | (1,578 | ) | |||||||||||||||||
|
|
|
|
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 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 $792,983,000, which represented 62.62% of the net assets of the fund. |
2 | Step bond; coupon rate may change at a later date. |
3 | 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 $23,174,000, which represented 1.83% of the net assets of the fund. |
4 | Value determined using significant unobservable inputs. |
5 | 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 $64,996,000, which represented 5.13% of the net assets of the fund. |
6 | Payment in kind; the issuer has the option of paying additional securities in lieu of cash. Most recent payment was 100% cash unless otherwise noted. |
7 | Coupon rate may change periodically. Reference rate and spread are as of the most recent information available. Some coupon rates are determined by the issuer or agent based on current market conditions; therefore, the reference rate and spread are not available. |
8 | Security did not produce income during the last 12 months. |
9 | Rate represents theseven-day yield at 12/31/2019. |
10 | Notional amount is calculated based on the number of contracts and notional contract size. |
11 | Value is calculated based on the notional amount and current market price. |
Key to abbreviations and symbol
LIBOR = London Interbank Offered Rate
USD/$ = U.S. dollars
See notes to financial statements.
American Funds Insurance Series 105
Table of Contents
Summary investment portfolioDecember 31, 2019
Bonds, notes & other debt instruments 81.04%
Principal amount (000) | Value (000) | |||||||
Mortgage-backed obligations 63.38% | ||||||||
Federal agency mortgage-backed obligations 59.31% | ||||||||
Fannie Mae Pool #AL3803 3.00% 20281 | $ | 13 | $ | 13 | ||||
Fannie Mae Pool #BJ9590 3.00% 20341 | 1,855 | 1,901 | ||||||
Fannie Mae Pool #BM4488 3.435% 20481,2 | 1,690 | 1,730 | ||||||
Fannie Mae Pool #MA3692 3.50% 20491 | 3,160 | 3,247 | ||||||
Fannie Mae Pool #CA4566 3.50% 20491 | 2,992 | 3,077 | ||||||
Fannie Mae Pool #FM0020 3.50% 20491 | 1,296 | 1,336 | ||||||
Fannie Mae 3.00%-5.00% 2026-20491,2 | 3,840 | 3,958 | ||||||
Freddie Mac 4.00% 20361 | 4,219 | 4,497 | ||||||
Freddie Mac Pool #SB8002 3.00% 20341 | 1,750 | 1,794 | ||||||
Freddie Mac Pool #SB8027 3.00% 20351 | 1,278 | 1,313 | ||||||
Freddie Mac Pool #760014 3.486% 20451,2 | 1,595 | 1,627 | ||||||
Freddie Mac Pool #SD8005 3.50% 20491 | 4,462 | 4,585 | ||||||
Freddie Mac Pool #SD8001 3.50% 20491 | 3,325 | 3,417 | ||||||
Freddie Mac, Series K031, Class A2, Multi Family, 3.30% 20231 | 4,722 | 4,908 | ||||||
Freddie Mac, Series K032, Class A2, Multi Family, 3.31% 20231 | 1,250 | 1,301 | ||||||
Freddie Mac 2.60%-5.00% 2020-20491,2 | 5,214 | 5,423 | ||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series2017-2, Class HA, 3.00% 20561,3 | 1,490 | 1,515 | ||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series2017-2, Class MA, 3.00% 20561 | 1,437 | 1,464 | ||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series2017-4, Class HT, 3.25% 20571,3 | 10,713 | 11,041 | ||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series2018-2, Class MT, 3.50% 20571 | 9,853 | 10,390 | ||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series2017-4, Class MT, 3.50% 20571 | 6,803 | 7,063 | ||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series2019-4, Class MA, 3.00% 20591 | 3,737 | 3,808 | ||||||
Freddie Mac Seasoned Loan Structured Transaction Trust, Series2019-3, Class A1C, 2.75% 20291 | 9,962 | 10,100 | ||||||
Freddie Mac Seasoned Loan Structured Transaction Trust, Series2018-2, Class A1, 3.50% 20281 | 6,847 | 7,090 | ||||||
Freddie Mac Seasoned Loan Structured Transaction Trust, Series2018-1, Class A1, 3.50% 20281 | 1,873 | 1,934 | ||||||
Government National Mortgage Assn. 5.50% 20401 | 1,469 | 1,640 | ||||||
Government National Mortgage Assn. 3.50% 20431 | 1,887 | 1,973 | ||||||
Government National Mortgage Assn. 3.50% 20431 | 1,535 | 1,605 | ||||||
Government National Mortgage Assn. 3.50% 20431 | 1,214 | 1,275 | ||||||
Government National Mortgage Assn. 4.25% 20441 | 1,574 | 1,682 | ||||||
Government National Mortgage Assn. 4.50% 20491 | 16,600 | 17,345 | ||||||
Government National Mortgage Assn. 4.00% 20501,4 | 4,760 | 4,927 | ||||||
Government National Mortgage Assn. 4.50% 20501,4 | 2,639 | 2,759 | ||||||
Government National Mortgage Assn. Pool #MA5877 4.50% 20491 | 1,727 | 1,804 | ||||||
Government National Mortgage Assn. 3.50%-6.50% 2034-20661 | 16,007 | 16,733 | ||||||
Uniform Mortgage-Backed Security 3.00% 20351,4 | 15,493 | 15,864 | ||||||
Uniform Mortgage-Backed Security 3.00% 20351,4 | 17 | 17 | ||||||
Uniform Mortgage-Backed Security 4.50% 20501,4 | 3,000 | 3,159 | ||||||
Vendee Mortgage Trust, Series2011-2, Class V, 3.75% 20281 | 3,774 | 3,806 | ||||||
Vendee Mortgage Trust, Series2010-1, Class DA, 4.25% 20351 | 292 | 298 | ||||||
Other securities | 1,252 | |||||||
|
| |||||||
174,671 | ||||||||
|
| |||||||
Collateralized mortgage-backed obligations (privately originated) 4.07% | ||||||||
Finance of America HECM Buyout, Series2019-AB1, Class A, 2.656% 20491,5,6 | 1,271 | 1,270 | ||||||
Other securities | 10,709 | |||||||
|
| |||||||
11,979 | ||||||||
|
| |||||||
Total mortgage-backed obligations | 186,650 | |||||||
|
|
106 American Funds Insurance Series
Table of Contents
Mortgage Fund
Bonds, notes & other debt instruments (continued)
Principal (000) | Value (000) | |||||||
U.S. Treasury bonds & notes 9.65% | ||||||||
U.S. Treasury 4.86% | ||||||||
U.S. Treasury 2.00% 2022 | $ | 2,400 | $ | 2,425 | ||||
U.S. Treasury 1.75% 2023 | 3,500 | 3,513 | ||||||
U.S. Treasury 2.875% 2023 | 4,350 | 4,547 | ||||||
U.S. Treasury 2.50% 2024 | 2,500 | 2,588 | ||||||
U.S. Treasury 2.13%-2.75% 2022-2023 | 1,224 | 1,247 | ||||||
|
| |||||||
14,320 | ||||||||
|
| |||||||
U.S. Treasury inflation-protected securities 4.79% | ||||||||
U.S. Treasury Inflation-Protected Security 0.625% 20237 | 6,216 | 6,315 | ||||||
U.S. Treasury Inflation-Protected Security 2.125% 20417 | 129 | 170 | ||||||
U.S. Treasury Inflation-Protected Security 0.75% 20427,8 | 7,328 | 7,629 | ||||||
|
| |||||||
14,114 | ||||||||
|
| |||||||
Total U.S. Treasury bonds & notes | 28,434 | |||||||
|
| |||||||
Federal agency bonds & notes 6.42% | ||||||||
Fannie Mae 2.00% 2022 | 5,800 | 5,849 | ||||||
Federal Home Loan Bank 1.375% 2021 | 3,000 | 2,992 | ||||||
Federal Home Loan Bank 1.875% 2021 | 10,000 | 10,055 | ||||||
|
| |||||||
18,896 | ||||||||
|
| |||||||
Asset-backed obligations 1.59% | ||||||||
Hertz Vehicle Financing LLC, Rental Car Asset-Backed Notes, Series2015-1, Class A, 2.73% 20211,6 | 1,823 | 1,825 | ||||||
Other securities | 2,856 | |||||||
|
| |||||||
4,681 | ||||||||
|
| |||||||
Total bonds, notes & other debt instruments (cost: $234,202,000) | 238,661 | |||||||
|
| |||||||
Short-term securities 13.90% | ||||||||
Federal agency discount notes 13.05% | ||||||||
Fannie Mae 1.50%-1.55% due 1/22/2020-1/23/2020 | 12,500 | 12,489 | ||||||
Federal Farm Credit Banks 1.57% due 1/30/2020 | 8,000 | 7,990 | ||||||
Federal Home Loan Bank 1.55%-1.59% due 1/3/2020-2/18/2020 | 13,000 | 12,988 | ||||||
Freddie Mac 1.64% due 3/18/2020 | 5,000 | 4,984 | ||||||
|
| |||||||
38,451 | ||||||||
|
| |||||||
Commercial paper 0.85% | ||||||||
Starbird Funding Corp. 1.58% due 1/2/20206 | 2,500 | 2,500 | ||||||
|
| |||||||
Total short-term securities (cost: $40,948,000) | 40,951 | |||||||
|
| |||||||
Total investment securities 94.94% (cost: $275,150,000) | 279,612 | |||||||
Other assets less liabilities 5.06% | 14,898 | |||||||
|
| |||||||
Net assets 100.00% | $ | 294,510 | ||||||
|
|
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.
American Funds Insurance Series 107
Table of Contents
Mortgage Fund
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount9 (000) | Value at 12/31/201910 (000) | Unrealized depreciation at 12/31/2019 (000) | ||||||||||||||||||
2 Year U.S. Treasury Note Futures | Long | 425 | April 2020 | $ | 85,000 | $ | 91,588 | $ | (49 | ) | ||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 427 | April 2020 | 42,700 | 50,646 | (176 | ) | |||||||||||||||||
10 Year Ultra U.S. Treasury Note Futures | Long | 126 | March 2020 | 12,600 | 17,729 | (213 | ) | |||||||||||||||||
10 Year U.S. Treasury Note Futures | Long | 79 | March 2020 | 7,900 | 10,145 | (95 | ) | |||||||||||||||||
20 Year U.S. Treasury Bond Futures | Long | 56 | March 2020 | 5,600 | 8,731 | (186 | ) | |||||||||||||||||
30 Year Ultra U.S. Treasury Bond Futures | Long | 5 | March 2020 | 500 | 908 | (27 | ) | |||||||||||||||||
|
| |||||||||||||||||||||||
$ | (746 | ) | ||||||||||||||||||||||
|
|
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2019 (000) | Upfront payments/ receipts (000) | Unrealized (depreciation) appreciation at 12/31/2019 (000) | ||||||||||||||||
1.553% | U.S. EFFR | 1/29/2020 | $ | 102,700 | $ | — | 11 | $ | — | $ | — | 11 | ||||||||||
1.5365% | U.S. EFFR | 1/29/2020 | 81,500 | (1 | ) | — | (1 | ) | ||||||||||||||
1.535% | U.S. EFFR | 1/29/2020 | 85,500 | (1 | ) | — | (1 | ) | ||||||||||||||
1.531% | U.S. EFFR | 3/18/2020 | 95,000 | (4 | ) | — | (4 | ) | ||||||||||||||
1.515% | U.S. EFFR | 3/18/2020 | 86,100 | (6 | ) | — | (6 | ) | ||||||||||||||
1.5155% | U.S. EFFR | 3/18/2020 | 182,000 | (12 | ) | — | (12 | ) | ||||||||||||||
1.5135% | U.S. EFFR | 3/18/2020 | 181,900 | (13 | ) | — | (13 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.806% | 8/29/2020 | 300 | (2 | ) | — | (2 | ) | ||||||||||||||
1.4555% | U.S. EFFR | 12/10/2020 | 16,900 | (10 | ) | — | (10 | ) | ||||||||||||||
1.454% | U.S. EFFR | 12/10/2020 | 20,100 | (12 | ) | — | (12 | ) | ||||||||||||||
1.487% | U.S. EFFR | 12/16/2020 | 18,375 | (5 | ) | — | (5 | ) | ||||||||||||||
1.491% | U.S. EFFR | 12/16/2020 | 18,625 | (5 | ) | — | (5 | ) | ||||||||||||||
1.34% | U.S. EFFR | 10/18/2021 | 21,000 | (42 | ) | — | (42 | ) | ||||||||||||||
2.0135% | 3-month USD-LIBOR | 10/20/2021 | 30,000 | 171 | — | 171 | ||||||||||||||||
1.3615% | U.S. EFFR | 11/1/2021 | 29,500 | (45 | ) | — | (45 | ) | ||||||||||||||
1.281% | U.S. EFFR | 11/4/2021 | 29,500 | (88 | ) | — | (88 | ) | ||||||||||||||
U.S. EFFR | 1.335% | 11/26/2021 | 30,000 | 61 | — | 61 | ||||||||||||||||
2.012% | 3-month USD-LIBOR | 10/4/2022 | 9,000 | 82 | — | 82 | ||||||||||||||||
2.00% | 3-month USD-LIBOR | 10/5/2022 | 41,500 | 364 | — | 364 | ||||||||||||||||
2.1045% | 3-month USD-LIBOR | 10/31/2022 | 4,000 | 48 | — | 48 | ||||||||||||||||
3-monthUSD-LIBOR | 2.2835% | 1/5/2023 | 36,000 | (640 | ) | — | (640 | ) | ||||||||||||||
2.21875% | U.S. EFFR | 3/14/2024 | 9,000 | 271 | — | 271 | ||||||||||||||||
3-monthUSD-LIBOR | 2.322% | 5/2/2024 | 10,100 | (262 | ) | — | (262 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.325% | 5/2/2024 | 23,300 | (606 | ) | — | (606 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.24% | 12/5/2026 | 10,500 | (313 | ) | — | (313 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.05% | 7/18/2029 | 6,000 | (92 | ) | — | (92 | ) | ||||||||||||||
U.S. EFFR | 1.485% | 10/23/2029 | 2,100 | 32 | — | 32 | ||||||||||||||||
U.S. EFFR | 1.4869% | 10/23/2029 | 1,900 | 29 | — | 29 | ||||||||||||||||
U.S. EFFR | 1.453% | 10/24/2029 | 2,500 | 45 | — | 45 | ||||||||||||||||
U.S. EFFR | 1.4741% | 10/24/2029 | 2,500 | 41 | — | 41 | ||||||||||||||||
U.S. EFFR | 1.4495% | 10/24/2029 | 1,800 | 33 | — | 33 | ||||||||||||||||
U.S. EFFR | 1.446% | 10/24/2029 | 200 | 4 | — | 4 | ||||||||||||||||
1.419% | U.S. EFFR | 11/26/2029 | 6,000 | (130 | ) | — | (130 | ) | ||||||||||||||
3-monthUSD-LIBOR | 3.206% | 7/31/2044 | 1,000 | (222 | ) | — | (222 | ) | ||||||||||||||
3-monthUSD-LIBOR | 3.238% | 8/8/2044 | 2,000 | (457 | ) | — | (457 | ) | ||||||||||||||
3-monthUSD-LIBOR | 3.2265% | 9/25/2044 | 3,000 | (682 | ) | — | (682 | ) | ||||||||||||||
U.S. EFFR | 2.155% | 11/10/2047 | 1,280 | (86 | ) | — | (86 | ) | ||||||||||||||
U.S. EFFR | 2.5635% | 2/12/2048 | 4,528 | (714 | ) | — | (714 | ) | ||||||||||||||
2.98% | 3-month USD-LIBOR | 3/15/2048 | 300 | 59 | — | 59 |
108 American Funds Insurance Series
Table of Contents
Mortgage Fund
Receive | Pay | Expiration | Notional (000) | Value at 12/31/2019 (000) | Upfront payments/ receipts (000) | Unrealized (depreciation) appreciation at 12/31/2019 (000) | ||||||||||||||||
2.9625% | 3-monthUSD-LIBOR | 3/15/2048 | $ | 300 | $ | 57 | $ | — | $ | 57 | ||||||||||||
2.917% | 3-month USD-LIBOR | 3/16/2048 | 600 | 109 | — | 109 | ||||||||||||||||
3-monthUSD-LIBOR | 1.934% | 12/12/2049 | 2,200 | 80 | — | 80 | ||||||||||||||||
3-monthUSD-LIBOR | 1.935% | 12/17/2049 | 2,480 | 90 | — | 90 | ||||||||||||||||
3-monthUSD-LIBOR | 2.007% | 12/19/2049 | 900 | 18 | — | 18 | ||||||||||||||||
3-monthUSD-LIBOR | 2.045% | 12/27/2049 | 2,200 | 24 | — | 24 | ||||||||||||||||
|
|
|
| |||||||||||||||||||
$ | — | $ | (2,832 | ) | ||||||||||||||||||
|
|
|
|
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 | Coupon rate may change periodically. Reference rate and spread are as of the most recent information available. Some coupon rates are determined by the issuer or agent based on current market conditions; therefore, the reference rate and spread are not available. |
3 | Step bond; coupon rate may change at a later date. |
4 | Purchased on a TBA basis. |
5 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of the security was $1,270,000, which represented .43% of the net assets of the fund. |
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 $17,782,000, which represented 6.04% of the net assets of the fund. |
7 | Index-linked bond whose principal amount moves with a government price index. |
8 | All or a portion of this security was pledged as collateral. The total value of pledged collateral was $4,195,000, which represented 1.42% of the net assets of the fund. |
9 | Notional amount is calculated based on the number of contracts and notional contract size. |
10 | Value is calculated based on the notional amount and current market price. |
11 | Amount less than one thousand. |
Key to abbreviations and symbol
EFFR = Effective Federal Funds Rate
LIBOR = London Interbank Offered Rate
TBA =To-be-announced
USD/$ = U.S. dollars
See notes to financial statements.
American Funds Insurance Series 109
Table of Contents
Investment portfolioDecember 31, 2019
Short-term securities 99.86%
Principal amount (000) | Value (000) | |||||||
Commercial paper 71.65% | ||||||||
Alberta (Province of) 1.78% due 1/8/20201 | $ | 9,000 | $ | 8,997 | ||||
American Honda Finance Corp. 1.84% due 1/6/2020 | 11,000 | 10,997 | ||||||
BMW U.S. Capital LLC 1.61% due 1/8/20201 | 7,000 | 6,997 | ||||||
Chariot Funding, LLC 2.00% due 1/7/20201 | 9,300 | 9,297 | ||||||
CHARTA, LLC 1.78% due 1/16/20201 | 10,000 | 9,992 | ||||||
Eli Lilly and Co. 1.66% due 1/6/20201 | 10,000 | 9,997 | ||||||
ExxonMobil Corp. 1.65% due 2/18/2020 | 10,000 | 9,977 | ||||||
Henkel of America, Inc. 1.75% due 2/4/20201 | 7,000 | 6,989 | ||||||
LVMH Moët Hennessy Louis Vuitton Inc. 1.70% due 2/13/20201 | 10,000 | 9,980 | ||||||
National Rural Utilities Cooperative Finance Corp. 1.72% due 1/13/2020 | 8,100 | 8,095 | ||||||
Nederlandse Waterschapsbank N.V. 1.84% due 3/18/20201 | 10,000 | 9,961 | ||||||
New York Life Capital Corp. 1.60% due 2/12/20201 | 10,000 | 9,980 | ||||||
NRW.BANK 1.90% due 1/21/20201 | 9,000 | 8,991 | ||||||
OMERS Finance Trust 1.87% due 1/22/20201 | 10,000 | 9,990 | ||||||
Oversea-Chinese Banking Corp. Ltd. 1.87% due 1/24/20201 | 10,800 | 10,787 | ||||||
Pfizer Inc. 2.04% due 1/23/20201 | 11,700 | 11,688 | ||||||
Simon Property Group, LP 1.70% due 1/13/20201 | 8,100 | 8,095 | ||||||
ST Engineering North America, Inc. 1.87% due 1/21/20201 | 2,000 | 1,998 | ||||||
Starbird Funding Corp. 1.58% due 1/2/20201 | 6,000 | 6,000 | ||||||
United Overseas Bank Ltd. 1.83% due 2/25/20201 | 10,000 | 9,974 | ||||||
United Parcel Service Inc. 1.62% due 1/13/20201 | 10,200 | 10,195 | ||||||
Victory Receivables Corp. 1.82% due 2/3/20201 | 10,000 | 9,983 | ||||||
Walt Disney Co. 1.69% due 2/26/20201 | 5,000 | 4,986 | ||||||
|
| |||||||
203,946 | ||||||||
|
| |||||||
Federal agency discount notes 14.73% | ||||||||
Fannie Mae 1.53% due 1/10/2020 | 10,000 | 9,996 | ||||||
Federal Farm Credit Banks 1.55% due 3/4/2020 | 7,000 | 6,981 | ||||||
Federal Home Loan Bank 1.57% due 1/31/2020 | 15,000 | 14,982 | ||||||
Freddie Mac 1.55% due 3/10/2020 | 10,000 | 9,971 | ||||||
|
| |||||||
41,930 | ||||||||
|
| |||||||
Bonds & notes of governments & government agencies outside the U.S. 9.97% | ||||||||
CPPIB Capital Inc. 1.82% due 1/24/2020 | 10,000 | 9,989 | ||||||
Ontario (Province of) 1.74% due 2/3/2020 | 7,400 | 7,389 | ||||||
Québec (Province of) 1.85% due 1/16/20201 | 11,000 | 10,992 | ||||||
|
| |||||||
28,370 | ||||||||
|
| |||||||
U.S. Treasury bonds & notes 3.51% | ||||||||
U.S. Treasury Bill 1.50% due 2/11/2020 | 10,000 | 9,983 | ||||||
|
| |||||||
Total short-term securities(cost: $284,222,000) | 284,229 | |||||||
|
| |||||||
Total investment securities 99.86%(cost: $284,222,000) | 284,229 | |||||||
Other assets less liabilities 0.14% | 401 | |||||||
|
| |||||||
Net assets 100.00% | $ | 284,630 | ||||||
|
|
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 $185,869,000, which represented 65.30% of the net assets of the fund. |
See notes to financial statements.
110 American Funds Insurance Series
Table of Contents
U.S.Government/AAA-Rated Securities Fund
Summary investment portfolioDecember 31, 2019
Bonds, notes & other debt instruments 96.81%
Principal amount (000) | Value (000) | |||||||
U.S. Treasury bonds & notes 51.15% | ||||||||
U.S. Treasury 43.49% | ||||||||
U.S. Treasury 1.75% 20211 | $ | 33,540 | $ | 33,641 | ||||
U.S. Treasury(3-month U.S. Treasury Bill Yield + 0.30%) 1.826% 20212 | 51,589 | 51,671 | ||||||
U.S. Treasury 2.00% 2021 | 46,300 | 46,669 | ||||||
U.S. Treasury 2.125% 2021 | 23,450 | 23,661 | ||||||
U.S. Treasury 2.25% 2021 | 23,580 | 23,820 | ||||||
U.S. Treasury 1.75% 2022 | 174,300 | 174,930 | ||||||
U.S. Treasury 1.875% 2022 | 63,000 | 63,391 | ||||||
U.S. Treasury 1.875% 2022 | 25,000 | 25,170 | ||||||
U.S. Treasury 1.875% 2022 | 23,000 | 23,167 | ||||||
U.S. Treasury 2.00% 2022 | 69,500 | 70,238 | ||||||
U.S. Treasury 2.125% 20231 | 57,739 | 58,782 | ||||||
U.S. Treasury 2.875% 2023 | 43,000 | 44,952 | ||||||
U.S. Treasury 2.875% 2023 | 22,500 | 23,538 | ||||||
U.S. Treasury 1.50% 2024 | 47,000 | 46,623 | ||||||
U.S. Treasury 2.00% 2024 | 30,050 | 30,469 | ||||||
U.S. Treasury 2.125% 20241 | 31,975 | 32,620 | ||||||
U.S. Treasury 2.50% 2024 | 44,000 | 45,540 | ||||||
U.S. Treasury 2.75% 2025 | 38,000 | 39,970 | ||||||
U.S. Treasury 1.625% 2026 | 77,000 | 76,037 | ||||||
U.S. Treasury 1.875% 2026 | 86,000 | 86,393 | ||||||
U.S. Treasury 1.75% 2029 | 35,000 | 34,467 | ||||||
U.S. Treasury 2.25% 20491 | 25,700 | 24,937 | ||||||
U.S. Treasury 2.875% 20491 | 26,000 | 28,663 | ||||||
U.S. Treasury 1.50%-2.88% 2021-20491 | 148,885 | 150,278 | ||||||
|
| |||||||
1,259,627 | ||||||||
|
| |||||||
U.S. Treasury inflation-protected securities 7.66% | ||||||||
U.S. Treasury Inflation-Protected Security 0.625% 20233 | 36,777 | 37,362 | ||||||
U.S. Treasury Inflation-Protected Security 0.125% 20243 | 72,013 | 72,476 | ||||||
U.S. Treasury Inflation-Protected Security 0.25% 20253 | 24,054 | 24,283 | ||||||
U.S. Treasury Inflation-Protected Security 0.75% 20421,3 | 22,423 | 23,344 | ||||||
U.S. Treasury Inflation-Protected Securities 0.13%-2.13% 2022-20493 | 61,709 | 64,292 | ||||||
|
| |||||||
221,757 | ||||||||
|
| |||||||
Total U.S. Treasury bonds & notes | 1,481,384 | |||||||
|
| |||||||
Mortgage-backed obligations 27.67% | ||||||||
Federal agency mortgage-backed obligations 27.67% | ||||||||
Fannie Mae Pool #BH2597 4.00% 20474 | 25,092 | 26,390 | ||||||
Fannie Mae Pool #MA3775 3.50% 20494 | 44,907 | 46,182 | ||||||
Fannie Mae 0%-9.16% 2022-20492,4 | 75,935 | 79,030 | ||||||
Freddie Mac Pool #SD8001 3.50% 20494 | 90,895 | 93,422 | ||||||
Freddie Mac Pool #SD8005 3.50% 20494 | 34,320 | 35,264 | ||||||
Freddie Mac 0%-5.50% 2020-20492,4 | 79,149 | 81,942 | ||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series2018-2, Class MT, 3.50% 20574 | 37,774 | 39,835 | ||||||
Freddie Mac Seasoned Loan Structured Transaction Trust, Series2018-2, Class A1, 3.50% 20284 | 39,374 | 40,773 | ||||||
Government National Mortgage Assn. 3.50% 20504,5 | 40,000 | 41,221 | ||||||
Government National Mortgage Assn. 4.00% 20504,5 | 30,870 | 31,952 | ||||||
Government National Mortgage Assn. 2.26%-6.64% 2034-20652,4,5 | 81,733 | 85,971 | ||||||
Uniform Mortgage-Backed Security 3.00% 20354,5 | 76,804 | 78,695 | ||||||
Uniform Mortgage-Backed Security 3.00% 20354,5 | 28,225 | 28,903 | ||||||
Uniform Mortgage-Backed Security 4.50% 20504,5 | 16 | 17 | ||||||
Other securities | 91,827 | |||||||
|
| |||||||
801,424 | ||||||||
|
|
American Funds Insurance Series 111
Table of Contents
U.S.Government/AAA-Rated Securities Fund
Bonds, notes & other debt instruments (continued)
Principal (000) | Value (000) | |||||||
Federal agency bonds & notes 17.99% | ||||||||
Fannie Mae 2.75% 2021 | $ | 26,500 | $ | 26,938 | ||||
Fannie Mae 2.875% 2023 | 36,000 | 37,533 | ||||||
Fannie Mae 1.25%-7.13% 2021-2030 | 6,900 | 8,673 | ||||||
Federal Home Loan Bank 3.25%-5.50% 2023-2036 | 30,315 | 32,747 | ||||||
Freddie Mac 2.375% 2021 | 40,000 | 40,340 | ||||||
Private Export Funding Corp. 3.266% 20216 | 34,000 | 34,994 | ||||||
Private Export Funding Corp. 2.25%-3.55% 2020-2024 | 11,340 | 11,768 | ||||||
Tennessee Valley Authority, Series A, 3.875% 2021 | 32,975 | 33,756 | ||||||
Tennessee Valley Authority 2.88%-5.88% 2027-2060 | 14,330 | 16,251 | ||||||
U.S. Agency for International Development, Iraq (State of) 2.149% 2022 | 6,670 | 6,749 | ||||||
U.S. Agency for International Development, Jordan (Kingdom of) 2.503% 2020 | 88,000 | 88,693 | ||||||
U.S. Agency for International Development, Jordan (Kingdom of) 2.578% 2022 | 43,000 | 43,884 | ||||||
U.S. Agency for International Development, Jordan (Kingdom of) 3.00% 2025 | 43,250 | 45,794 | ||||||
U.S. Agency for International Development, Morocco (Kingdom of) 7.55% 2026 | 3,010 | 3,549 | ||||||
U.S. Agency for International Development, Tunisia (Kingdom of) 1.416% 2021 | 3,000 | 2,990 | ||||||
U.S. Agency for International Development, Ukraine 1.471% 2021 | 4,410 | 4,397 | ||||||
U.S. Department of Housing and Urban Development 1.98%-3.70% 2020-2034 | 73,632 | 76,567 | ||||||
Other securities | 5,422 | |||||||
|
| |||||||
521,045 | ||||||||
|
| |||||||
Total bonds, notes & other debt instruments (cost: $2,765,266,000) | 2,803,853 | |||||||
|
| |||||||
Short-term securities 8.05% | ||||||||
Commercial paper 7.88% | ||||||||
Bank of New York Co., Inc. 1.60% due 1/2/2020 | 26,700 | 26,698 | ||||||
Exxon Mobil Corp. 1.62% due 2/3/2020 | 50,000 | 49,923 | ||||||
Pfizer Inc. 1.67% due 1/16/20206 | 64,800 | 64,755 | ||||||
Starbird Funding Corp. 1.58% due 1/2/20206 | 28,100 | 28,098 | ||||||
Toronto-Dominion Bank 1.70% due 1/7/20206 | 50,000 | 49,983 | ||||||
Other securities | 8,695 | |||||||
|
| |||||||
228,152 | ||||||||
|
| |||||||
Federal agency discount notes 0.17% | ||||||||
Other securities | 4,994 | |||||||
|
| |||||||
Total short-term securities (cost: $233,152,000) | 233,146 | |||||||
|
| |||||||
Total investment securities104.86% (cost: $2,998,418,000) | 3,036,999 | |||||||
Other assets less liabilities (4.86)% | (140,665 | ) | ||||||
|
| |||||||
Net assets 100.00% | $ | 2,896,334 | ||||||
|
|
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.
112 American Funds Insurance Series
Table of Contents
U.S.Government/AAA-Rated Securities Fund
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount7 (000) | Value at 12/31/20198 (000) | Unrealized (depreciation) appreciation at 12/31/2019 (000) | ||||||||||||||||
30 Day Federal Funds Futures | Long | 451 | January 2020 | $ | 187,932 | $ | 185,014 | $ | (118 | ) | ||||||||||||
90 Day Euro Dollar Futures | Long | 565 | March 2020 | 141,250 | 138,799 | 543 | ||||||||||||||||
2 Year U.S. Treasury Note Futures | Long | 4,270 | April 2020 | 854,000 | 920,185 | 90 | ||||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 6,935 | April 2020 | 693,500 | 822,556 | (3,396 | ) | |||||||||||||||
10 Year U.S. Treasury Note Futures | Long | 1,481 | March 2020 | 148,100 | 190,193 | (1,498 | ) | |||||||||||||||
10 Year Ultra U.S. Treasury Note Futures | Short | 32 | March 2020 | (3,200 | ) | (4,502 | ) | 54 | ||||||||||||||
20 Year U.S. Treasury Bond Futures | Long | 219 | March 2020 | 21,900 | 34,144 | (596 | ) | |||||||||||||||
30 Year Ultra U.S. Treasury Bond Futures | Long | 569 | March 2020 | 56,900 | 103,362 | (3,027 | ) | |||||||||||||||
|
| |||||||||||||||||||||
$ | (7,948 | ) | ||||||||||||||||||||
|
|
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2019 (000) | Upfront payments/ receipts (000) | Unrealized appreciation (depreciation) at 12/31/2019 (000) | ||||||||||||||||
1.553% | U.S. EFFR | 1/29/2020 | $ | 1,624,100 | $ | 1 | $ | — | $ | 1 | ||||||||||||
1.5365% | U.S. EFFR | 1/29/2020 | 1,288,300 | (16 | ) | — | (16 | ) | ||||||||||||||
1.535% | U.S. EFFR | 1/29/2020 | 1,351,500 | (18 | ) | — | (18 | ) | ||||||||||||||
1.531% | U.S. EFFR | 3/18/2020 | 741,200 | (33 | ) | — | (33 | ) | ||||||||||||||
1.515% | U.S. EFFR | 3/18/2020 | 671,100 | (45 | ) | — | (45 | ) | ||||||||||||||
1.5155% | U.S. EFFR | 3/18/2020 | 1,419,000 | (93 | ) | — | (93 | ) | ||||||||||||||
1.5135% | U.S. EFFR | 3/18/2020 | 1,418,700 | (97 | ) | — | (97 | ) | ||||||||||||||
1.5435% | U.S. EFFR | 4/29/2020 | 770,000 | (9 | ) | — | (9 | ) | ||||||||||||||
1.535% | U.S. EFFR | 4/29/2020 | 1,187,700 | (25 | ) | — | (25 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.806% | 8/29/2020 | 34,300 | (223 | ) | — | (223 | ) | ||||||||||||||
1.4555% | U.S. EFFR | 12/10/2020 | 129,200 | (77 | ) | — | (77 | ) | ||||||||||||||
1.454% | U.S. EFFR | 12/10/2020 | 152,800 | (94 | ) | — | (94 | ) | ||||||||||||||
1.4995% | U.S. EFFR | 12/20/2020 | 283,000 | (43 | ) | — | (43 | ) | ||||||||||||||
2.197% | U.S. EFFR | 4/15/2021 | 174,000 | 1,418 | — | 1,418 | ||||||||||||||||
1.605% | U.S. EFFR | 6/20/2021 | 116,816 | 124 | — | 124 | ||||||||||||||||
1.6325% | U.S. EFFR | 7/18/2021 | 243,000 | 453 | — | 453 | ||||||||||||||||
1.34% | U.S. EFFR | 10/18/2021 | 50,000 | (99 | ) | — | (99 | ) | ||||||||||||||
1.355% | U.S. EFFR | 10/24/2021 | 34,100 | (57 | ) | — | (57 | ) | ||||||||||||||
1.339% | U.S. EFFR | 10/24/2021 | 62,000 | (122 | ) | — | (122 | ) | ||||||||||||||
1.3065% | U.S. EFFR | 10/25/2021 | 83,800 | (213 | ) | — | (213 | ) | ||||||||||||||
1.39% | U.S. EFFR | 10/31/2021 | 116,000 | (116 | ) | — | (116 | ) | ||||||||||||||
1.3615% | U.S. EFFR | 11/1/2021 | 252,400 | (383 | ) | — | (383 | ) | ||||||||||||||
1.281% | U.S. EFFR | 11/4/2021 | 252,700 | (756 | ) | — | (756 | ) | ||||||||||||||
1.411% | U.S. EFFR | 11/7/2021 | 56,875 | (35 | ) | — | (35 | ) | ||||||||||||||
1.3925% | U.S. EFFR | 11/7/2021 | 56,875 | (54 | ) | — | (54 | ) | ||||||||||||||
U.S. EFFR | 1.335% | 11/26/2021 | 222,000 | 451 | — | 451 | ||||||||||||||||
1.433% | U.S. EFFR | 12/16/2021 | 137,600 | (21 | ) | — | (21 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.2175% | 3/17/2022 | 52,000 | (612 | ) | — | (612 | ) | ||||||||||||||
2.197% | U.S. EFFR | 4/18/2022 | 47,400 | 768 | — | 768 | ||||||||||||||||
3-monthUSD-LIBOR | 1.75918% | 4/29/2022 | 58,000 | (111 | ) | — | (111 | ) | ||||||||||||||
1.8475% | 3-monthUSD-LIBOR | 7/11/2022 | 34,900 | 150 | — | 150 | ||||||||||||||||
2.5775% | U.S. EFFR | 7/16/2022 | 181,639 | 2,107 | — | 2,107 | ||||||||||||||||
3-monthUSD-LIBOR | 1.948% | 7/28/2022 | 20,000 | (139 | ) | — | (139 | ) | ||||||||||||||
2.80% | 3-monthUSD-LIBOR | 9/2/2022 | 280,000 | 6,379 | — | 6,379 | ||||||||||||||||
2.75% | 3-monthUSD-LIBOR | 9/2/2022 | 280,000 | 6,107 | — | 6,107 | ||||||||||||||||
2.009% | 3-monthUSD-LIBOR | 10/4/2022 | 50,000 | 450 | — | 450 |
American Funds Insurance Series 113
Table of Contents
U.S.Government/AAA-Rated Securities Fund
Swap contracts(continued)
Interest rate swaps (continued)
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2019 (000) | Upfront payments/ receipts (000) | Unrealized appreciation (depreciation) at 12/31/2019 (000) | ||||||||||||||||
3-monthUSD-LIBOR | 2.0815% | 2/10/2024 | $ | 28,700 | $ | (441 | ) | $ | — | $ | (441 | ) | ||||||||||
2.21875% | U.S. EFFR | 3/14/2024 | 54,000 | 1,627 | — | 1,627 | ||||||||||||||||
3-monthUSD-LIBOR | 2.21079% | 3/27/2024 | 48,318 | (1,010 | ) | — | (1,010 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.33% | 5/2/2024 | 48,460 | (1,272 | ) | — | (1,272 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.588% | 1/26/2025 | 15,600 | (647 | ) | — | (647 | ) | ||||||||||||||
3-monthUSD-LIBOR | 1.867% | 7/11/2025 | 49,400 | (84 | ) | — | (84 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.27% | 12/5/2026 | 44,900 | (1,426 | ) | — | (1,426 | ) | ||||||||||||||
2.91% | 3-monthUSD-LIBOR | 2/1/2028 | 16,000 | 723 | — | 723 | ||||||||||||||||
2.908% | 3-monthUSD-LIBOR | 2/1/2028 | 16,000 | 721 | — | 721 | ||||||||||||||||
2.925% | 3-monthUSD-LIBOR | 2/1/2028 | 12,800 | 587 | — | 587 | ||||||||||||||||
2.92% | 3-monthUSD-LIBOR | 2/2/2028 | 12,200 | 556 | — | 556 | ||||||||||||||||
U.S. EFFR | 2.5065% | 3/22/2028 | 8,700 | (610 | ) | — | (610 | ) | ||||||||||||||
U.S. EFFR | 2.535% | 3/23/2028 | 6,700 | (484 | ) | — | (484 | ) | ||||||||||||||
U.S. EFFR | 2.471% | 3/27/2028 | 8,100 | (546 | ) | — | (546 | ) | ||||||||||||||
U.S. EFFR | 2.4575% | 3/29/2028 | 9,638 | (639 | ) | — | (639 | ) | ||||||||||||||
U.S. EFFR | 2.424% | 3/30/2028 | 8,160 | (520 | ) | — | (520 | ) | ||||||||||||||
U.S. EFFR | 2.412% | 4/5/2028 | 3,702 | (233 | ) | — | (233 | ) | ||||||||||||||
3-monthUSD-LIBOR | 1.9675% | 6/21/2029 | 50,700 | (418 | ) | — | (418 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.05% | 7/18/2029 | 41,000 | (629 | ) | — | (629 | ) | ||||||||||||||
3-monthUSD-LIBOR | 1.995% | 7/19/2029 | 25,400 | (266 | ) | — | (266 | ) | ||||||||||||||
U.S. EFFR | 1.485% | 10/23/2029 | 16,000 | 244 | — | 244 | ||||||||||||||||
U.S. EFFR | 1.4869% | 10/23/2029 | 14,600 | 220 | — | 220 | ||||||||||||||||
U.S. EFFR | 1.453% | 10/24/2029 | 18,500 | 336 | — | 336 | ||||||||||||||||
U.S. EFFR | 1.4741% | 10/24/2029 | 18,500 | 300 | — | 300 | ||||||||||||||||
U.S. EFFR | 1.4495% | 10/24/2029 | 13,600 | 251 | — | 251 | ||||||||||||||||
U.S. EFFR | 1.446% | 10/24/2029 | 1,800 | 34 | — | 34 | ||||||||||||||||
1.419% | U.S. EFFR | 11/26/2029 | 47,000 | (1,021 | ) | — | (1,021 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.97125% | 9/2/2030 | 62,000 | (5,923 | ) | — | (5,923 | ) | ||||||||||||||
3-monthUSD-LIBOR | 3.005% | 9/2/2030 | 62,000 | (6,114 | ) | — | (6,114 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.986% | 2/1/2038 | 7,800 | (449 | ) | — | (449 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.9625% | 2/1/2038 | 9,800 | (545 | ) | — | (545 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.963% | 2/1/2038 | 9,800 | (546 | ) | — | (546 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.967% | 2/2/2038 | 7,600 | (426 | ) | — | (426 | ) | ||||||||||||||
3-monthUSD-LIBOR | 3.34% | 6/27/2044 | 10,000 | (2,481 | ) | — | (2,481 | ) | ||||||||||||||
3-monthUSD-LIBOR | 3.206% | 7/31/2044 | 16,000 | (3,559 | ) | — | (3,559 | ) | ||||||||||||||
3-monthUSD-LIBOR | 3.238% | 8/8/2044 | 16,000 | (3,659 | ) | — | (3,659 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.7045% | 1/2/2045 | 12,000 | (1,489 | ) | — | (1,489 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.4945% | 1/9/2045 | 2,000 | (164 | ) | — | (164 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.5055% | 1/9/2045 | 11,000 | (925 | ) | — | (925 | ) | ||||||||||||||
3-monthUSD-LIBOR | 2.52822% | 11/23/2045 | 4,390 | (398 | ) | — | (398 | ) | ||||||||||||||
U.S. EFFR | 2.155% | 11/10/2047 | 8,640 | (580 | ) | — | (580 | ) | ||||||||||||||
U.S. EFFR | 2.5635% | 2/12/2048 | 33,204 | (5,234 | ) | — | (5,234 | ) | ||||||||||||||
3-monthUSD-LIBOR | 1.934% | 12/12/2049 | 19,300 | 704 | — | 704 | ||||||||||||||||
3-monthUSD-LIBOR | 1.935% | 12/17/2049 | 17,280 | 627 | — | 627 | ||||||||||||||||
3-monthUSD-LIBOR | 2.007% | 12/19/2049 | 21,500 | 423 | — | 423 | ||||||||||||||||
3-monthUSD-LIBOR | 2.045% | 12/27/2049 | 15,100 | 166 | — | 166 | ||||||||||||||||
|
|
|
| |||||||||||||||||||
$ | — | $ | (20,302 | ) | ||||||||||||||||||
|
|
|
|
114 American Funds Insurance Series
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 $46,115,000, which represented 1.59% of the net assets of the fund. |
2 | Coupon rate may change periodically. Reference rate and spread are as of the most recent information available. Some coupon rates are determined by the issuer or agent based on current market conditions; therefore, the reference rate and spread are not available. |
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 was $177,830,000, which represented 6.14% of the net assets of the fund. |
7 | Notional amount is calculated based on the number of contracts and notional contract size. |
8 | Value is calculated based on the notional amount and current market price. |
Key to abbreviations and symbol
EFFR = Effective Federal Funds Rate
LIBOR = London Interbank Offered Rate
TBA =To-be-announced
USD/$ = U.S. dollars
See notes to financial statements.
American Funds Insurance Series 115
Table of Contents
Managed Risk Growth Fund
Investment portfolioDecember 31, 2019
Shares | Value (000) | |||||||
Growth funds 81.52% | ||||||||
American Funds Insurance Series – Growth Fund, Class 1 | 4,413,020 | $ | 358,426 | |||||
|
| |||||||
Total growth funds (cost: $314,327,000) | 358,426 | |||||||
|
| |||||||
Fixed income funds 15.17% | ||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 5,970,036 | 66,685 | ||||||
|
| |||||||
Total fixed income funds (cost: $64,788,000) | 66,685 | |||||||
|
| |||||||
Short-term securities 3.38% | ||||||||
Government Cash Management Fund 1.51%1 | 14,836,148 | 14,836 | ||||||
|
| |||||||
Total short-term securities (cost: $14,836,000) | 14,836 | |||||||
|
| |||||||
Total investment securities 100.07% (cost: $393,951,000) | 439,947 | |||||||
Other assets less liabilities (0.07)% | (297 | ) | ||||||
|
| |||||||
Net assets 100.00% | $ | 439,650 | ||||||
|
|
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount2 (000) | Value at 12/31/20193 (000) | Unrealized depreciation at 12/31/2019 (000) | ||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 142 | March 2020 | $ | 14,200 | $ | 16,843 | $ | (61 | ) |
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, 2019, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized gain (loss) (000) | Net unrealized appreciation (000) | Dividend income (000) | Value of affiliates at 12/31/2019 (000) | |||||||||||||||||||||||||
Growth funds 81.52% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series - Growth Fund, Class 1 | 3,963,500 | 841,360 | 391,840 | 4,413,020 | $ | 3,636 | $ | 45,980 | $ | 3,243 | $ | 358,426 | ||||||||||||||||||||
Fixed income funds 15.17% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series - Bond Fund, Class 1 | 5,110,855 | 1,716,104 | 856,923 | 5,970,036 | (16 | ) | 3,708 | 1,763 | 66,685 | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Total 96.69% | $ | 3,620 | $ | 49,688 | $ | 5,006 | $ | 425,111 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
1 | Rate represents theseven-day yield at 12/31/2019. |
2 | Notional amount is calculated based on the number of contracts and notional contract size. |
3 | Value is calculated based on the notional amount and current market price. |
See notes to financial statements.
116 American Funds Insurance Series
Table of Contents
Managed Risk International Fund
Investment portfolioDecember 31, 2019
Shares | Value (000) | |||||||
Growth funds 80.75% | ||||||||
American Funds Insurance Series – International Fund, Class 1 | 6,417,163 | $ | 133,862 | |||||
|
| |||||||
Total growth funds (cost: $119,729,000) | 133,862 | |||||||
|
| |||||||
Fixed income funds 14.76% | ||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 2,190,172 | 24,465 | ||||||
|
| |||||||
Total fixed income funds (cost: $23,789,000) | 24,465 | |||||||
|
| |||||||
Short-term securities 4.55% | ||||||||
Government Cash Management Fund 1.51%1 | 7,541,294 | 7,541 | ||||||
|
| |||||||
Total short-term securities (cost: $7,541,000) | 7,541 | |||||||
|
| |||||||
Total investment securities 100.06% (cost: $151,059,000) | 165,868 | |||||||
Other assets less liabilities (0.06)% | (99 | ) | ||||||
|
| |||||||
Net assets 100.00% | $ | 165,769 | ||||||
|
|
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount2 (000) | Value at 12/31/20193 (000) | Unrealized depreciation at 12/31/2019 (000) | ||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 72 | March 2020 | $ | 7,200 | $ | 8,540 | $ | (30 | ) |
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, 2019, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized gain (000) | Net unrealized appreciation (000) | Dividend income (000) | Value of affiliates at 12/31/2019 (000) | |||||||||||||||||||||||||
Growth funds 80.75% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – International Fund, Class 1 | 6,802,836 | 422,276 | 807,949 | 6,417,163 | $ | 553 | $ | 20,856 | $ | 2,158 | $ | 133,862 | ||||||||||||||||||||
Fixed income funds 14.76% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 2,162,908 | 382,186 | 354,922 | 2,190,172 | 64 | 1,507 | 667 | 24,465 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Total 95.51% | $ | 617 | $ | 22,363 | $ | 2,825 | $ | 158,327 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
1 | Rate represents theseven-day yield at 12/31/2019. |
2 | Notional amount is calculated based on the number of contracts and notional contract size. |
3 | Value is calculated based on the notional amount and current market price. |
See notes to financial statements.
American Funds Insurance Series 117
Table of Contents
Managed Risk Blue Chip Income and Growth Fund
Investment portfolioDecember 31, 2019
Shares | Value (000) | |||||||
Growth-and-income funds 81.97% | ||||||||
American Funds Insurance Series – Blue Chip Income and Growth Fund, Class 1 | 22,089,727 | $ | 299,536 | |||||
|
| |||||||
Totalgrowth-and-income funds (cost: $295,807,000) | 299,536 | |||||||
|
| |||||||
Fixed income funds 14.64% | ||||||||
American Funds Insurance Series – U.S.Government/AAA-Rated Securities Fund, Class 1 | 4,337,434 | 53,524 | ||||||
|
| |||||||
Total fixed income funds (cost: $52,792,000) | 53,524 | |||||||
|
| |||||||
Short-term securities 3.45% | ||||||||
Government Cash Management Fund 1.51%1 | 12,608,727 | 12,609 | ||||||
|
| |||||||
Total short-term securities (cost: $12,609,000) | 12,609 | |||||||
|
| |||||||
Total investment securities 100.06% (cost: $361,208,000) | 365,669 | |||||||
Other assets less liabilities (0.06)% | (234 | ) | ||||||
|
| |||||||
Net assets 100.00% | $ | 365,435 | ||||||
|
|
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount2 (000) | Value at 12/31/20193 (000) | Unrealized depreciation at 12/31/2019 (000) | ||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 121 | March 2020 | $ | 12,100 | $ | 14,352 | $ | (52 | ) |
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, 2019, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized gain (000) | Net unrealized appreciation (000) | Dividend income (000) | Value of affiliates at 12/31/2019 (000) | |||||||||||||||||||||||||
Growth-and-income funds 81.97% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – Blue Chip Income and Growth Fund, Class 1 | 21,901,978 | 2,725,657 | 2,537,908 | 22,089,727 | $ | 139 | $ | 27,211 | $ | 6,403 | $ | 299,536 | ||||||||||||||||||||
Fixed income funds 14.64% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – U.S.Government/AAA-Rated Securities Fund, Class 1 | 4,484,388 | 702,066 | 849,020 | 4,337,434 | 30 | 1,747 | 1,181 | 53,524 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Total 96.61% | $ | 169 | $ | 28,958 | $ | 7,584 | $ | 353,060 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
1 | Rate represents theseven-day yield at 12/31/2019. |
2 | Notional amount is calculated based on the number of contracts and notional contract size. |
3 | Value is calculated based on the notional amount and current market price. |
See notes to financial statements.
118 American Funds Insurance Series
Table of Contents
Managed Risk Growth-Income Fund
Investment portfolioDecember 31, 2019
Shares | Value (000) | |||||||
Growth-and-income funds 81.15% | ||||||||
American Funds Insurance Series – Growth-Income Fund, Class 1 | 36,320,774 | $ | 1,841,827 | |||||
|
| |||||||
Totalgrowth-and-income funds (cost: $1,679,355,000) | 1,841,827 | |||||||
|
| |||||||
Fixed income funds 14.86% | ||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 30,186,789 | 337,186 | ||||||
|
| |||||||
Total fixed income funds (cost: $317,192,000) | 337,186 | |||||||
|
| |||||||
Short-term securities 3.81% | ||||||||
Government Cash Management Fund 1.51%1 | 86,525,815 | 86,526 | ||||||
|
| |||||||
Total short-term securities (cost: $86,526,000) | 86,526 | |||||||
|
| |||||||
Options purchased 0.19% | ||||||||
Options purchased* | 4,322 | |||||||
|
| |||||||
Total options purchased (cost: $14,443,000) | 4,322 | |||||||
|
| |||||||
Total investment securities 100.01% (cost: $2,097,516,000) | 2,269,861 | |||||||
Other assets less liabilities (0.01)% | (137 | ) | ||||||
|
| |||||||
Net assets 100.00% | $ | 2,269,724 | ||||||
|
|
*Options purchased
Put | ||||||||||||||||||||
Description | Number of contracts | Notional amount (000) | Exercise price | Expiration date | Value at 12/31/2019 (000) | |||||||||||||||
S&P 500 Index | 110 | $ | 355 | $ | 2,050.00 | 3/20/2020 | $ | 8 | ||||||||||||
S&P 500 Index | 2,720 | 8,788 | 2,100.00 | 3/20/2020 | 231 | |||||||||||||||
S&P 500 Index | 1,200 | 3,877 | 2,150.00 | 3/20/2020 | 144 | |||||||||||||||
S&P 500 Index | 50 | 162 | 2,175.00 | 3/20/2020 | 5 | |||||||||||||||
S&P 500 Index | 715 | 2,310 | 2,200.00 | 3/20/2020 | 82 | |||||||||||||||
S&P 500 Index | 135 | 436 | 2,225.00 | 3/20/2020 | 17 | |||||||||||||||
S&P 500 Index | 170 | 549 | 2,250.00 | 3/20/2020 | 25 | |||||||||||||||
S&P 500 Index | 95 | 307 | 2,225.00 | 6/19/2020 | 50 | |||||||||||||||
S&P 500 Index | 250 | 808 | 2,250.00 | 6/19/2020 | 148 | |||||||||||||||
S&P 500 Index | 130 | 420 | 2,275.00 | 6/19/2020 | 92 | |||||||||||||||
S&P 500 Index | 3,520 | 11,372 | 2,325.00 | 6/19/2020 | 3,041 | |||||||||||||||
S&P 500 Index | 160 | 517 | 2,350.00 | 6/19/2020 | 130 | |||||||||||||||
S&P 500 Index | 180 | 582 | 2,375.00 | 6/19/2020 | 160 | |||||||||||||||
S&P 500 Index | 70 | 226 | 2,400.00 | 6/19/2020 | 78 | |||||||||||||||
S&P 500 Index | 65 | 210 | 2,450.00 | 6/19/2020 | 86 | |||||||||||||||
S&P 500 Index | 15 | 48 | 2,325.00 | 9/18/2020 | 25 | |||||||||||||||
|
| |||||||||||||||||||
$ | 4,322 | |||||||||||||||||||
|
|
American Funds Insurance Series 119
Table of Contents
Managed Risk Growth-Income Fund
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount2 (000) | Value at 12/31/20193 (000) | Unrealized (depreciation) appreciation at 12/31/2019 (000) | ||||||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 876 | March 2020 | $ | 87,600 | $ | 103,902 | $ | (375 | ) | ||||||||||||||
S&P 500E-mini Index Contracts | Long | 380 | March 2020 | 19 | 61,391 | 1,045 | ||||||||||||||||||
|
| |||||||||||||||||||||||
$ | 670 | |||||||||||||||||||||||
|
|
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, 2019, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized gain (000) | Net unrealized appreciation (000) | Dividend income (000) | Value of affiliates at 12/31/2019 (000) | |||||||||||||||||||||||||
Growth-and-income funds 81.15% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series - Growth-Income Fund, Class 1 | 33,123,343 | 5,204,328 | 2,006,897 | 36,320,774 | $ | 10,843 | $ | 181,776 | $ | 32,844 | $ | 1,841,827 | ||||||||||||||||||||
Fixed income funds 14.86% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series - Bond Fund, Class 1 | 26,945,898 | 5,339,384 | 2,098,493 | 30,186,789 | 551 | 19,412 | 9,121 | 337,186 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Total 96.01% | $ | 11,394 | $ | 201,188 | $ | 41,965 | $ | 2,179,013 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
1 | Rate represents theseven-day yield at 12/31/2019. |
2 | Notional amount is calculated based on the number of contracts and notional contract size. |
3 | Value is calculated based on the notional amount and current market price. |
See notes to financial statements.
120 American Funds Insurance Series
Table of Contents
Managed Risk Asset Allocation Fund
Investment portfolioDecember 31, 2019
Shares | Value (000) | |||||||
Asset allocation funds 95.49% | ||||||||
American Funds Insurance Series – Asset Allocation Fund, Class 1 | 112,462,863 | $ | 2,704,731 | |||||
|
| |||||||
Total asset allocation funds (cost: $2,461,096,000) | 2,704,731 | |||||||
|
| |||||||
Short-term securities 4.57% | ||||||||
Government Cash Management Fund 1.51%1 | 129,388,605 | 129,389 | ||||||
|
| |||||||
Total short-term securities (cost: $129,389,000) | 129,389 | |||||||
|
| |||||||
Total investment securities 100.06% (cost: $2,590,485,000) | 2,834,120 | |||||||
Other assets less liabilities (0.06)% | (1,616 | ) | ||||||
|
| |||||||
Net assets 100.00% | $ | 2,832,504 | ||||||
|
|
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount2 (000) | Value at 12/31/20193 (000) | Unrealized depreciation at 12/31/2019 (000) | ||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 1,222 | March 2020 | $ | 122,200 | $ | 144,941 | $ | (525 | ) |
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, 2019, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized gain (000) | Net unrealized appreciation (000) | Dividend income (000) | Value of affiliates at 12/31/2019 (000) | |||||||||||||||||||||||||
Asset allocation funds 95.49% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series - Asset Allocation Fund, Class 1 | 115,468,223 | 9,622,390 | 12,627,750 | 112,462,863 | $ | 18,556 | $ | 297,458 | $ | 55,061 | $ | 2,704,731 |
1 | Rate represents theseven-day yield at 12/31/2019. |
2 | Notional amount is calculated based on the number of contracts and notional contract size. |
3 | Value is calculated based on the notional amount and current market price. |
See notes to financial statements.
American Funds Insurance Series 121
Table of Contents
Statements of assets and liabilitiesat December 31, 2019
Global Growth Fund | Global Small Capitalization Fund | Growth Fund | International Fund | New World Fund | ||||||||||||||||
Assets: | ||||||||||||||||||||
Investment securities, at value: | ||||||||||||||||||||
Unaffiliated issuers | $ | 6,834,678 | $ | 4,695,009 | $ | 28,530,215 | $ | 10,090,299 | $ | 3,763,903 | ||||||||||
Affiliated issuers | — | 12,711 | — | — | — | |||||||||||||||
Cash | 77 | 984 | 961 | 1,558 | 5,500 | |||||||||||||||
Cash collateral received for securities on loan | — | 9,581 | — | — | — | |||||||||||||||
Cash denominated in currencies other than U.S. dollars | 187 | 5,130 | 822 | 3,548 | 730 | |||||||||||||||
Unrealized appreciation on open forward currency contracts | — | — | — | — | — | |||||||||||||||
Receivables for: | ||||||||||||||||||||
Sales of investments | — | 2,285 | 7,836 | 2,831 | 261 | |||||||||||||||
Sales of fund’s shares | 2,516 | 3,547 | 5,850 | 1,503 | 1,370 | |||||||||||||||
Dividends and interest | 12,553 | 3,331 | 40,016 | 17,475 | 6,799 | |||||||||||||||
Closed forward currency contracts | — | — | — | — | — | |||||||||||||||
Variation margin on futures contracts | — | — | — | — | — | |||||||||||||||
Variation margin on swap contracts | — | — | — | — | — | |||||||||||||||
Securities lending income | — | 384 | — | — | 9 | |||||||||||||||
Other | 468 | 226 | 53 | 96 | 1,978 | |||||||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||
6,850,479 | 4,733,188 | 28,585,753 | 10,117,310 | 3,780,550 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities: | ||||||||||||||||||||
Collateral for securities on loan | — | 95,814 | — | — | — | |||||||||||||||
Unrealized depreciation on open forward currency contracts | — | — | — | 131 | — | |||||||||||||||
Payables for: | ||||||||||||||||||||
Purchases of investments | 218 | 2,571 | 19,404 | 1,808 | 841 | |||||||||||||||
Repurchases of fund’s shares | 40,573 | 4,821 | 82,386 | 18,480 | 3,083 | |||||||||||||||
Investment advisory services | 2,924 | 2,682 | 7,647 | 4,148 | 2,180 | |||||||||||||||
Insurance administrative fees | 226 | 121 | 897 | 230 | 382 | |||||||||||||||
Services provided by related parties | 1,061 | 653 | 4,372 | 1,231 | 429 | |||||||||||||||
Trustees’ deferred compensation | 77 | 52 | 497 | 207 | 36 | |||||||||||||||
Closed forward currency contracts | — | — | — | — | — | |||||||||||||||
Variation margin on futures contracts | — | — | — | — | — | |||||||||||||||
Variation margin on swap contracts | — | — | — | — | — | |||||||||||||||
Non-U.S. taxes | 4,857 | 6,103 | 811 | 15,406 | 13,045 | |||||||||||||||
Other | 96 | 98 | 80 | 238 | 143 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
50,032 | 112,915 | 116,094 | 41,879 | 20,139 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net assets at December 31, 2019 | $ | 6,800,447 | $ | 4,620,273 | $ | 28,469,659 | �� | $ | 10,075,431 | $ | 3,760,411 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net assets consist of: | ||||||||||||||||||||
Capital paid in on shares of beneficial interest | $ | 3,735,844 | $ | 3,169,995 | $ | 15,151,170 | $ | 7,794,312 | $ | 2,756,659 | ||||||||||
Total distributable earnings | 3,064,603 | 1,450,278 | 13,318,489 | 2,281,119 | 1,003,752 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net assets at December 31, 2019 | $ | 6,800,447 | $ | 4,620,273 | $ | 28,469,659 | $ | 10,075,431 | $ | 3,760,411 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Investment securities on loan, at value | $ | — | $ | 102,111 | $ | — | $ | — | $ | 2,679 | ||||||||||
Investment securities, at cost: | ||||||||||||||||||||
Unaffiliated issuers | 3,948,846 | 3,495,309 | 16,010,216 | 7,618,504 | 2,782,480 | |||||||||||||||
Affiliated issuers | — | 45,916 | — | — | — | |||||||||||||||
Cash denominated in currencies other than U.S. dollars, at cost | 186 | 5,130 | 822 | 3,531 | 745 |
See end of statements of assets and liabilities for footnote.
See notes to financial statements.
122 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 | ||||||||||||||||||||||||||
$ | 9,276,932 | $ | 2,138,294 | $ | 35,695,564 | $ | 1,502,569 | $ | 990,616 | $ | 27,124,386 | $ | 435,920 | $ | 10,917,401 | $ | 2,118,893 | |||||||||||||||||
— | — | 336,143 | — | — | 444,495 | — | — | — | ||||||||||||||||||||||||||
199 | 226 | 2,015 | 48 | 114 | 5,535 | 62 | 7,258 | 459 | ||||||||||||||||||||||||||
— | — | — | — | — | 510 | — | — | — | ||||||||||||||||||||||||||
170 | 299 | 180 | 427 | 278 | 1,146 | 3 | 64 | 94 | ||||||||||||||||||||||||||
— | — | — | — | — | — | 173 | 2,743 | 3,976 | ||||||||||||||||||||||||||
— | 112 | 88 | 131 | 22,405 | 213,442 | 1 | 669,867 | 18,110 | ||||||||||||||||||||||||||
1,708 | 662 | 5,285 | 300 | 1,104 | 9,829 | 140 | 7,295 | 2,121 | ||||||||||||||||||||||||||
15,592 | 5,398 | 71,629 | 4,137 | 3,549 | 83,460 | 1,682 | 63,827 | 18,545 | ||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | 53 | ||||||||||||||||||||||||||
— | — | — | — | 22 | 437 | 2 | 2,378 | 167 | ||||||||||||||||||||||||||
— | — | — | — | 97 | 292 | 13 | 948 | 200 | ||||||||||||||||||||||||||
— | — | — | — | — | 126 | — | — | — | ||||||||||||||||||||||||||
10 | 393 | 394 | 40 | 22 | 160 | 32 | 61 | 162 | ||||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
9,294,611 | 2,145,384 | 36,111,298 | 1,507,652 | 1,018,207 | 27,883,818 | 438,028 | 11,671,842 | 2,162,780 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
— | — | — | — | — | 5,103 | — | — | — | ||||||||||||||||||||||||||
— | 137 | — | 11 | — | — | 272 | 3,934 | 6,186 | ||||||||||||||||||||||||||
509 | 44 | 12,801 | 184 | 18,310 | 434,944 | 264 | 1,108,141 | 25,517 | ||||||||||||||||||||||||||
7,089 | 2,594 | 57,734 | 6,267 | 235 | 11,152 | 104 | 1,500 | 294 | ||||||||||||||||||||||||||
3,021 | 1,056 | 7,672 | 755 | 397 | 6,088 | 242 | 3,237 | 954 | ||||||||||||||||||||||||||
365 | 86 | 724 | 60 | 275 | 2,677 | 57 | 303 | 30 | ||||||||||||||||||||||||||
1,007 | 369 | 4,017 | 111 | 118 | 2,703 | 73 | 1,126 | 276 | ||||||||||||||||||||||||||
91 | 24 | 579 | 12 | 4 | 284 | 3 | 125 | 26 | ||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | 66 | ||||||||||||||||||||||||||
— | — | — | — | 48 | 473 | 1 | 2,265 | 196 | ||||||||||||||||||||||||||
— | — | — | — | 56 | 17 | 7 | 51 | 218 | ||||||||||||||||||||||||||
164 | 2,545 | 1,411 | 112 | 38 | 586 | 49 | — | 273 | ||||||||||||||||||||||||||
4 | 46 | 94 | 54 | 10 | 136 | 6 | — | 100 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
12,250 | 6,901 | 85,032 | 7,566 | 19,491 | 464,163 | 1,078 | 1,120,682 | 34,136 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
| |||||||||||||||||
$ | 9,282,361 | $ | 2,138,483 | $ | 36,026,266 | $ | 1,500,086 | $ | 998,716 | $ | 27,419,655 | $ | 436,950 | $ | 10,551,160 | $ | 2,128,644 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
$ | 7,024,809 | $ | 1,446,699 | $ | 24,318,085 | $ | 1,269,718 | $ | 924,094 | $ | 20,498,664 | $ | 354,288 | $ | 10,126,847 | $ | 2,039,155 | |||||||||||||||||
2,257,552 | 691,784 | 11,708,181 | 230,368 | 74,622 | 6,920,991 | 82,662 | 424,313 | 89,489 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
$ | 9,282,361 | $ | 2,138,483 | $ | 36,026,266 | $ | 1,500,086 | $ | 998,716 | $ | 27,419,655 | $ | 436,950 | $ | 10,551,160 | $ | 2,128,644 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
$ | — | $ | — | $ | — | $ | — | $ | — | $ | 5,211 | $ | — | $ | — | $ | — | |||||||||||||||||
7,160,359 | 1,501,184 | 25,109,357 | 1,239,563 | 895,730 | 20,541,489 | 353,703 | 10,597,431 | 2,061,125 | ||||||||||||||||||||||||||
— | — | 279,526 | — | — | 328,678 | — | — | — | ||||||||||||||||||||||||||
170 | 298 | 180 | 426 | 278 | 1,146 | 3 | 64 | 94 |
American Funds Insurance Series 123
Table of Contents
Statements of assets and liabilitiesat December 31, 2019
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 | $ | 1,243,917 | $ | 279,612 | $ | 284,229 | $ | 3,036,999 | $ | 14,836 | ||||||||||
Affiliated issuers | — | — | — | — | 425,111 | |||||||||||||||
Cash | 726 | 262 | 109 | 2,199 | 99 | |||||||||||||||
Cash collateral pledged for futures contracts | 154 | — | — | — | — | |||||||||||||||
Cash collateral pledged for swap contracts | 2,100 | — | — | — | — | |||||||||||||||
Cash denominated in currencies other than U.S. dollars | — | * | — | — | — | — | ||||||||||||||
Receivables for: | ||||||||||||||||||||
Sales of investments | 2,727 | 83,408 | — | 298,428 | 447 | |||||||||||||||
Sales of fund’s shares | 209 | 235 | 696 | 1,934 | 32 | |||||||||||||||
Dividends and interest | 20,007 | 732 | — | 10,545 | 21 | |||||||||||||||
Variation margin on futures contracts | 33 | 20 | — | 217 | — | |||||||||||||||
Variation margin on swap contracts | 41 | 329 | — | 3,682 | — | |||||||||||||||
Other | 3 | 1 | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
1,269,917 | 364,599 | 285,034 | 3,354,004 | 440,546 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities: | ||||||||||||||||||||
Payables for: | ||||||||||||||||||||
Purchases of investments | 2,150 | 69,602 | — | 453,440 | 29 | |||||||||||||||
Repurchases of fund’s shares | 686 | 164 | 234 | 637 | 472 | |||||||||||||||
Investment advisory services | 506 | 105 | 78 | 835 | 37 | |||||||||||||||
Insurance administrative fees | 38 | 17 | 14 | 78 | 264 | |||||||||||||||
Services provided by related parties | 188 | 25 | 62 | 386 | 89 | |||||||||||||||
Trustees’ deferred compensation | 46 | 3 | 16 | 58 | 2 | |||||||||||||||
Variation margin on futures contracts | — | 65 | — | 1,058 | — | |||||||||||||||
Variation margin on swap contracts | 9 | 108 | — | 1,177 | 3 | |||||||||||||||
Other | 1 | — | — | 1 | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
3,624 | 70,089 | 404 | 457,670 | 896 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net assets at December 31, 2019 | $ | 1,266,293 | $ | 294,510 | $ | 284,630 | $ | 2,896,334 | $ | 439,650 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net assets consist of: | ||||||||||||||||||||
Capital paid in on shares of beneficial interest | $ | 1,456,035 | $ | 291,684 | $ | 283,903 | $ | 2,843,203 | $ | 375,936 | ||||||||||
Total (accumulated loss) distributable earnings | (189,742 | ) | 2,826 | 727 | 53,131 | 63,714 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net assets at December 31, 2019 | $ | 1,266,293 | $ | 294,510 | $ | 284,630 | $ | 2,896,334 | $ | 439,650 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Investment securities on loan, at value | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Investment securities, at cost: | ||||||||||||||||||||
Unaffiliated issuers | 1,246,290 | 275,150 | 284,222 | 2,998,418 | 14,836 | |||||||||||||||
Affiliated issuers | — | — | — | — | 379,115 | |||||||||||||||
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.
124 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 | |||||||||||||
$ | 7,541 | $ | 12,609 | $ | 90,848 | $ | 129,389 | |||||||||
158,327 | 353,060 | 2,179,013 | 2,704,731 | |||||||||||||
50 | 85 | 2,356 | 856 | |||||||||||||
— | — | — | — | |||||||||||||
— | — | — | — | |||||||||||||
— | — | — | — | |||||||||||||
134 | 89 | 21,241 | 649 | |||||||||||||
3 | — | 1,026 | 590 | |||||||||||||
10 | 18 | 117 | 178 | |||||||||||||
— | — | — | — | |||||||||||||
— | — | 126 | — | |||||||||||||
— | — | — | — | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
166,065 | 365,861 | 2,294,727 | 2,836,393 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
— | — | 754 | — | |||||||||||||
144 | 94 | 22,617 | 1,273 | |||||||||||||
14 | 31 | 192 | 238 | |||||||||||||
101 | 221 | 1,376 | 1,735 | |||||||||||||
34 | 75 | 58 | 588 | |||||||||||||
1 | 2 | 6 | 26 | |||||||||||||
— | — | — | — | |||||||||||||
2 | 3 | — | 29 | |||||||||||||
— | — | — | — | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
296 | 426 | 25,003 | 3,889 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 165,769 | $ | 365,435 | $ | 2,269,724 | $ | 2,832,504 | |||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 154,345 | $ | 346,751 | $ | 1,940,147 | $ | 2,449,900 | |||||||||
11,424 | 18,684 | 329,577 | 382,604 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 165,769 | $ | 365,435 | $ | 2,269,724 | �� | $ | 2,832,504 | ||||||||
|
|
|
|
|
|
|
| |||||||||
$ | — | $ | — | $ | — | $ | — | |||||||||
7,541 | 12,609 | 100,969 | 129,389 | |||||||||||||
143,518 | 348,599 | 1,996,547 | 2,461,096 | |||||||||||||
— | — | — | — |
American Funds Insurance Series 125
Table of Contents
Statements of assets and liabilitiesat December 31, 2019
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 | $ | 2,515,595 | $ | 2,050,138 | $ | 10,840,676 | $ | 5,353,248 | $ | 2,128,928 | ||||||||||
Shares outstanding | 77,246 | 76,500 | 133,471 | 256,566 | 82,393 | |||||||||||||||
Net asset value per share | $ | 32.57 | $ | 26.80 | $ | 81.22 | $ | 20.86 | $ | 25.84 | ||||||||||
Class 1A: | ||||||||||||||||||||
Net assets | $ | 7,914 | $ | 575 | $ | 18,051 | $ | 7,041 | $ | 4,461 | ||||||||||
Shares outstanding | 244 | 22 | 223 | 339 | 173 | |||||||||||||||
Net asset value per share | $ | 32.47 | $ | 26.74 | $ | 80.92 | $ | 20.80 | $ | 25.74 | ||||||||||
Class 2: | ||||||||||||||||||||
Net assets | $ | 3,894,942 | $ | 2,363,250 | $ | 15,884,538 | $ | 4,310,970 | $ | 981,055 | ||||||||||
Shares outstanding | 120,828 | 90,815 | 197,149 | 207,441 | 38,339 | |||||||||||||||
Net asset value per share | $ | 32.24 | $ | 26.02 | $ | 80.57 | $ | 20.78 | $ | 25.59 | ||||||||||
Class 3: | ||||||||||||||||||||
Net assets | $ | 213,515 | $ | 24,708 | ||||||||||||||||
Shares outstanding | | Not applicable | | | Not applicable | | 2,609 | 1,181 | | Not applicable | | |||||||||
Net asset value per share | $ | 81.84 | $ | 20.92 | ||||||||||||||||
Class 4: | ||||||||||||||||||||
Net assets | $ | 381,996 | $ | 206,310 | $ | 1,512,879 | $ | 379,464 | $ | 645,967 | ||||||||||
Shares outstanding | 11,917 | 7,887 | 19,051 | 18,478 | 25,360 | |||||||||||||||
Net asset value per share | $ | 32.05 | $ | 26.16 | $ | 79.41 | $ | 20.54 | $ | 25.47 | ||||||||||
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 | $ | 524,749 | $ | 210,225 | $ | 29,304 | $ | 1,418,254 | ||||||||||||
Shares outstanding | 53,157 | 19,906 | 2,592 | 114,937 | | Not applicable | | |||||||||||||
Net asset value per share | $ | 9.87 | $ | 10.56 | $ | 11.30 | $ | 12.34 | ||||||||||||
Class 1A: | ||||||||||||||||||||
Net assets | $ | 726 | $ | 493 | $ | 10 | $ | 2,474 | ||||||||||||
Shares outstanding | 74 | 47 | 1 | 201 | | Not applicable | | |||||||||||||
Net asset value per share | $ | 9.86 | $ | 10.55 | $ | 11.30 | $ | 12.32 | ||||||||||||
Class 2: | ||||||||||||||||||||
Net assets | $ | 667,518 | $ | 56,269 | $ | 230,044 | $ | 1,343,065 | ||||||||||||
Shares outstanding | 68,819 | 5,338 | 20,889 | 109,962 | | Not applicable | | |||||||||||||
Net asset value per share | $ | 9.70 | $ | 10.54 | $ | 11.01 | $ | 12.21 | ||||||||||||
Class 3: | ||||||||||||||||||||
Net assets | $ | 9,941 | $ | 3,187 | $ | 8,818 | ||||||||||||||
Shares outstanding | 1,002 | | Not applicable | | 286 | 713 | | Not applicable | | |||||||||||
Net asset value per share | $ | 9.92 | $ | 11.13 | $ | 12.37 | ||||||||||||||
Class 4: | ||||||||||||||||||||
Net assets | $ | 63,359 | $ | 27,523 | $ | 22,085 | $ | 123,723 | ||||||||||||
Shares outstanding | 5,997 | 2,637 | 1,984 | 10,128 | | Not applicable | | |||||||||||||
Net asset value per share | $ | 10.56 | $ | 10.44 | $ | 11.13 | $ | 12.22 | ||||||||||||
Class P1: | ||||||||||||||||||||
Net assets | $ | 5,745 | ||||||||||||||||||
Shares outstanding | | Not applicable | | | Not applicable | | | Not applicable | | | Not applicable | | 417 | |||||||
Net asset value per share | $ | 13.78 | ||||||||||||||||||
Class P2: | ||||||||||||||||||||
Net assets | $ | 433,905 | ||||||||||||||||||
Shares outstanding | | Not applicable | | | Not applicable | | | Not applicable | | | Not applicable | | 31,656 | |||||||
Net asset value per share | $ | 13.71 |
* | Amount less than one thousand. |
See notes to financial statements.
126 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 | ||||||||||||||||||||||||||
$ | 5,558,836 | $ | 624,992 | $ | 21,056,972 | $ | 1,140,298 | $ | 533,359 | $ | 17,729,567 | $ | 133,417 | $ | 6,481,599 | $ | 1,077,241 | |||||||||||||||||
409,812 | 39,269 | 415,250 | 62,738 | 49,708 | 737,257 | 9,877 | 580,461 | 88,893 | ||||||||||||||||||||||||||
$ | 13.56 | $ | 15.92 | $ | 50.71 | $ | 18.18 | $ | 10.73 | $ | 24.05 | $ | 13.51 | $ | 11.17 | $ | 12.12 | |||||||||||||||||
$ | 9,073 | $ | 1,904 | $ | 10,901 | $ | 2,475 | $ | 5,710 | $ | 10,719 | $ | 2,284 | $ | 6,646 | $ | 456 | |||||||||||||||||
671 | 120 | 215 | 137 | 533 | 447 | 169 | 598 | 38 | ||||||||||||||||||||||||||
$ | 13.51 | $ | 15.88 | $ | 50.54 | $ | 18.15 | $ | 10.72 | $ | 23.99 | $ | 13.49 | $ | 11.13 | $ | 12.10 | |||||||||||||||||
$ | 3,092,785 | $ | 1,366,688 | $ | 13,585,491 | $ | 256,730 | $ | 5,567 | $ | 5,153,699 | $ | 207,099 | $ | 3,561,089 | $ | 1,001,945 | |||||||||||||||||
231,052 | 86,034 | 271,274 | 14,170 | 519 | 216,630 | 15,358 | 323,062 | 83,303 | ||||||||||||||||||||||||||
$ | 13.39 | $ | 15.89 | $ | 50.08 | $ | 18.12 | $ | 10.72 | $ | 23.79 | $ | 13.48 | $ | 11.02 | $ | 12.03 | |||||||||||||||||
$ | 156,432 | $ | 32,567 | |||||||||||||||||||||||||||||||
| Not applicable | | | Not applicable | | 3,079 | | Not applicable | | | Not applicable | | 1,352 | | Not applicable | | | Not applicable | | | Not applicable | | ||||||||||||
$ | 50.81 | $ | 24.08 | |||||||||||||||||||||||||||||||
$ | 621,667 | $ | 144,899 | $ | 1,216,470 | $ | 100,583 | $ | 454,080 | $ | 4,493,103 | $ | 94,150 | $ | 501,826 | $ | 49,002 | |||||||||||||||||
46,696 | 9,268 | 24,567 | 5,586 | 42,408 | 189,815 | 7,048 | 45,627 | 4,112 | ||||||||||||||||||||||||||
$ | 13.31 | $ | 15.63 | $ | 49.52 | $ | 18.01 | $ | 10.71 | $ | 23.67 | $ | 13.36 | $ | 11.00 | $ | 11.92 | |||||||||||||||||
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 | | |||||||||||||||||||||||
$ | 683 | $ | 805 | $ | 1,987,005 | $ | 2,174 | |||||||||||||||||||||||||||
62 | 67 | 144,442 | 157 | |||||||||||||||||||||||||||||||
$ | 11.01 | $ | 12.01 | $ | 13.76 | $ | 13.81 | |||||||||||||||||||||||||||
$ | 165,086 | $ | 364,630 | $ | 282,719 | $ | 2,830,330 | |||||||||||||||||||||||||||
15,122 | 30,625 | 20,645 | 210,242 | |||||||||||||||||||||||||||||||
$ | 10.92 | $ | 11.91 | $ | 13.69 | $ | 13.46 |
American Funds Insurance Series 127
Table of Contents
Statements of operationsfor the year ended December 31, 2019
Global Growth Fund | Global Small Capitalization Fund | Growth Fund | International Fund | New World Fund | ||||||||||||||||
Investment income: | ||||||||||||||||||||
Income (net ofnon-U.S. taxes*): | ||||||||||||||||||||
Dividends | $ | 100,513 | $ | 44,813 | $ | 367,210 | $ | 188,002 | $ | 50,154 | ||||||||||
Interest | 1,513 | 1,993 | 10,907 | 12,319 | 15,536 | |||||||||||||||
Securities lending income | — | 5,572 | — | — | 9 | |||||||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||
102,026 | 52,378 | 378,117 | 200,321 | 65,699 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Fees and expenses*: | ||||||||||||||||||||
Investment advisory services | 32,238 | 29,892 | 84,702 | 47,450 | 23,766 | |||||||||||||||
Distribution services | 9,991 | 6,096 | 41,091 | 11,232 | 3,708 | |||||||||||||||
Insurance administrative services | 810 | 445 | 3,298 | 867 | 1,405 | |||||||||||||||
Transfer agent services | 1 | 1 | 3 | 1 | — | † | ||||||||||||||
Administrative services | 1,268 | 873 | 5,329 | 1,937 | 689 | |||||||||||||||
Reports to shareholders | 218 | 163 | 948 | 351 | 132 | |||||||||||||||
Registration statement and prospectus | 159 | 142 | 557 | 292 | 117 | |||||||||||||||
Trustees’ compensation | 42 | 28 | 175 | 64 | 23 | |||||||||||||||
Auditing and legal | 78 | 102 | 72 | 94 | 98 | |||||||||||||||
Custodian | 869 | 796 | 492 | 1,634 | 933 | |||||||||||||||
Other | 20 | 110 | 140 | 92 | 96 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total fees and expenses before waivers/reimbursements | 45,694 | 38,648 | 136,807 | 64,014 | 30,967 | |||||||||||||||
Less waivers/reimbursements of fees and expenses: | ||||||||||||||||||||
Investment advisory services waivers | — | — | — | — | — | |||||||||||||||
Miscellaneous fee reimbursements | — | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total waivers/reimbursements of fees and expenses | — | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total fees and expenses after waivers/reimbursements | 45,694 | 38,648 | 136,807 | 64,014 | 30,967 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income | 56,332 | 13,730 | 241,310 | 136,307 | 34,732 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized gain (loss) and unrealized appreciation (depreciation): | ||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Unaffiliated issuers | 194,169 | 251,392 | 746,022 | (125,118 | ) | 33,329 | ||||||||||||||
Affiliated issuers | — | — | — | — | — | |||||||||||||||
Futures contracts | — | — | — | — | — | |||||||||||||||
Forward currency contracts | — | — | — | (981 | ) | 303 | ||||||||||||||
Swap contracts | — | — | — | — | — | |||||||||||||||
Currency transactions | (251 | ) | (122 | ) | (486 | ) | (1,893 | ) | (681 | ) | ||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||
193,918 | 251,270 | 745,536 | (127,992 | ) | 32,951 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Unaffiliated issuers | 1,619,656 | 899,816 | 6,038,099 | 1,988,055 | 789,738 | |||||||||||||||
Affiliated issuers | — | (17,366 | ) | — | — | — | ||||||||||||||
Futures contracts | — | — | — | — | — | |||||||||||||||
Forward currency contracts | — | — | — | 394 | (303 | ) | ||||||||||||||
Swap contracts | — | — | — | — | — | |||||||||||||||
Currency translations | 91 | 109 | 133 | (22 | ) | 1,965 | ||||||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||
1,619,747 | 882,559 | 6,038,232 | 1,988,427 | 791,400 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized gain (loss) and unrealized appreciation (depreciation) | 1,813,665 | 1,133,829 | 6,783,768 | 1,860,435 | 824,351 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase in net assets resulting from operations | $ | 1,869,997 | $ | 1,147,559 | $ | 7,025,078 | $ | 1,996,742 | $ | 859,083 | ||||||||||
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|
|
|
|
|
|
|
|
|
See end of statements of operations for footnotes.
See notes to financial statements.
128 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 | ||||||||||||||||||||||||||
$ | 234,613 | $ | 51,517 | $ | 766,259 | $ | 45,191 | $ | 25,475 | $ | 375,876 | $ | 6,913 | $ | 16,529 | $ | 1,213 | |||||||||||||||||
1,841 | 3,480 | 16,017 | 2,742 | 5,377 | 258,983 | 3,712 | 306,813 | 66,060 | ||||||||||||||||||||||||||
— | — | — | — | — | 126 | — | — | — | ||||||||||||||||||||||||||
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|
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|
|
| |||||||||||||||||
236,454 | 54,997 | 782,276 | 47,933 | 30,852 | 634,985 | 10,625 | 323,342 | 67,273 | ||||||||||||||||||||||||||
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|
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|
|
| |||||||||||||||||
34,092 | 11,970 | 85,788 | 8,588 | 4,075 | 67,563 | 2,697 | 37,299 | 11,276 | ||||||||||||||||||||||||||
8,746 | 3,618 | 35,549 | 821 | 1,026 | 22,631 | 700 | 9,950 | 2,662 | ||||||||||||||||||||||||||
1,255 | 304 | 2,707 | 218 | 1,025 | 10,170 | 211 | 1,084 | 114 | ||||||||||||||||||||||||||
1 | — | † | 4 | — | † | — | † | 3 | — | † | 1 | — | † | |||||||||||||||||||||
1,765 | 408 | 6,796 | 284 | 174 | 5,173 | 83 | 2,083 | 426 | ||||||||||||||||||||||||||
355 | 60 | 1,336 | 27 | 17 | 1,018 | 7 | 286 | 68 | ||||||||||||||||||||||||||
157 | 65 | 509 | 38 | 44 | 331 | 19 | 225 | 64 | ||||||||||||||||||||||||||
59 | 13 | 221 | 9 | 6 | 170 | 3 | 68 | 14 | ||||||||||||||||||||||||||
47 | 55 | 89 | 80 | 51 | 74 | 57 | 56 | 52 | ||||||||||||||||||||||||||
237 | 443 | 598 | 330 | 77 | 257 | 64 | 211 | 404 | ||||||||||||||||||||||||||
39 | 22 | 124 | 8 | 5 | 55 | 7 | 56 | 35 | ||||||||||||||||||||||||||
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| |||||||||||||||||
46,753 | 16,958 | 133,721 | 10,403 | 6,500 | 107,445 | 3,848 | 51,319 | 15,115 | ||||||||||||||||||||||||||
— | — | — | — | 24 | — | — | — | — | ||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
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| |||||||||||||||||
— | — | — | — | 24 | — | — | — | — | ||||||||||||||||||||||||||
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| |||||||||||||||||
46,753 | 16,958 | 133,721 | 10,403 | 6,476 | 107,445 | 3,848 | 51,319 | 15,115 | ||||||||||||||||||||||||||
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| |||||||||||||||||
189,701 | 38,039 | 648,555 | 37,530 | 24,376 | 527,540 | 6,777 | 272,023 | 52,158 | ||||||||||||||||||||||||||
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| |||||||||||||||||
85,832 | 51,401 | 903,747 | (35,910 | ) | (7,360 | ) | 488,583 | 9,817 | 195,373 | 11,564 | ||||||||||||||||||||||||
— | — | (1,021 | ) | — | — | (471,314 | ) | — | — | — | ||||||||||||||||||||||||
— | — | — | — | (501 | ) | 22,485 | 557 | 72,397 | 13,348 | |||||||||||||||||||||||||
— | 579 | — | (14 | ) | — | — | (440 | ) | 58 | (2,623 | ) | |||||||||||||||||||||||
— | — | — | — | 985 | (18,948 | ) | 31 | (25,282 | ) | 1,525 | ||||||||||||||||||||||||
(3 | ) | (143 | ) | (250 | ) | (1,100 | ) | (2 | ) | 103 | (139 | ) | 786 | (2,149 | ) | |||||||||||||||||||
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|
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| |||||||||||||||||
85,829 | 51,837 | 902,476 | (37,024 | ) | (6,878 | ) | 20,909 | 9,826 | 243,332 | 21,665 | ||||||||||||||||||||||||
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|
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|
|
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|
|
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|
|
| |||||||||||||||||
1,423,937 | 449,977 | 6,047,455 | 293,943 | 117,252 | 3,772,779 | 59,030 | 433,411 | 101,447 | ||||||||||||||||||||||||||
— | — | 128,124 | — | — | 548,491 | — | — | — | ||||||||||||||||||||||||||
— | — | — | — | (760 | ) | (8,123 | ) | (196 | ) | (23,687 | ) | (5,076 | ) | |||||||||||||||||||||
— | (488 | ) | — | (12 | ) | — | — | (181 | ) | 8,081 | (9,128 | ) | ||||||||||||||||||||||
— | — | — | — | 829 | (255 | ) | (7 | ) | (6,333 | ) | 141 | |||||||||||||||||||||||
23 | 379 | 406 | 8 | 22 | 86 | 17 | 153 | 173 | ||||||||||||||||||||||||||
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|
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|
| |||||||||||||||||
1,423,960 | 449,868 | 6,175,985 | 293,939 | 117,343 | 4,312,978 | 58,663 | 411,625 | 87,557 | ||||||||||||||||||||||||||
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| |||||||||||||||||
1,509,789 | 501,705 | 7,078,461 | 256,915 | 110,465 | 4,333,887 | 68,489 | 654,957 | 109,222 | ||||||||||||||||||||||||||
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| |||||||||||||||||
$ | 1,699,490 | $ | 539,744 | $ | 7,727,016 | $ | 294,445 | $ | 134,841 | $ | 4,861,427 | $ | 75,266 | $ | 926,980 | $ | 161,380 | |||||||||||||||||
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American Funds Insurance Series 129
Table of Contents
Statements of operationsfor the year ended December 31, 2019
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 | $ | 994 | $ | — | $ | — | $ | — | † | $ | 5,338 | |||||||||
Interest | 90,296 | 7,989 | 6,571 | 70,374 | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
91,290 | 7,989 | 6,571 | 70,374 | 5,338 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Fees and expenses*: | ||||||||||||||||||||
Investment advisory services | 6,009 | 1,231 | 925 | 9,824 | 590 | |||||||||||||||
Distribution services | 1,855 | 202 | 640 | 3,611 | 974 | |||||||||||||||
Insurance administrative services | 143 | 60 | 51 | 276 | 984 | |||||||||||||||
Transfer agent services | — | † | — | † | — | † | — | † | — | † | ||||||||||
Administrative services | 253 | 59 | 58 | 582 | — | |||||||||||||||
Accounting and administrative services | — | — | — | — | 54 | |||||||||||||||
Reports to shareholders | 28 | 5 | 7 | 63 | 8 | |||||||||||||||
Registration statement and prospectus | 34 | 15 | 10 | 55 | 21 | |||||||||||||||
Trustees’ compensation | 8 | 2 | 1 | 20 | 2 | |||||||||||||||
Auditing and legal | 50 | 45 | 43 | 46 | 15 | |||||||||||||||
Custodian | 17 | 21 | 1 | 37 | 11 | |||||||||||||||
Other | 32 | 3 | 2 | 8 | 3 | |||||||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||
Total fees and expenses before waivers/reimbursements | 8,429 | 1,643 | 1,738 | 14,522 | 2,662 | |||||||||||||||
Less waivers/reimbursements of fees and expenses: | ||||||||||||||||||||
Investment advisory services waivers | — | — | — | — | 197 | |||||||||||||||
Miscellaneous fee reimbursements | — | — | — | — | 13 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total waivers/reimbursements of fees and expenses | — | — | — | — | 210 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total fees and expenses after waivers/reimbursements | 8,429 | 1,643 | 1,738 | 14,522 | 2,452 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income | 82,861 | 6,346 | 4,833 | 55,852 | 2,886 | |||||||||||||||
|
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|
|
|
|
|
|
|
| |||||||||||
Net realized gain (loss) and unrealized appreciation (depreciation): | ||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Unaffiliated issuers | (18,671 | ) | 2,660 | (1 | ) | 43,914 | — | |||||||||||||
Affiliated issuers | — | — | — | — | 3,620 | |||||||||||||||
Futures contracts | (236 | ) | 6,233 | — | 85,989 | (5,811 | ) | |||||||||||||
Swap contracts | (986 | ) | 1,047 | — | (7,749 | ) | — | |||||||||||||
Currency transactions | — | † | — | — | — | † | 30 | |||||||||||||
Capital gain distributions received from affiliated issuers | — | — | — | — | 32,790 | |||||||||||||||
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| |||||||||||
(19,893 | ) | 9,940 | (1 | ) | 122,154 | 30,629 | ||||||||||||||
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| |||||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Unaffiliated issuers | 89,670 | 5,462 | 15 | 52,718 | — | |||||||||||||||
Affiliated issuers | — | — | — | — | 49,688 | |||||||||||||||
Futures contracts | 159 | (2,645 | ) | — | (35,398 | ) | (5,952 | ) | ||||||||||||
Swap contracts | (2,898 | ) | (4,026 | ) | — | (39,656 | ) | — | ||||||||||||
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86,931 | (1,209 | ) | 15 | (22,336 | ) | 43,736 | ||||||||||||||
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Net realized gain (loss) and unrealized appreciation (depreciation) | 67,038 | 8,731 | 14 | 99,818 | 74,365 | |||||||||||||||
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| |||||||||||
Net increase in net assets resulting from operations | $ | 149,899 | $ | 15,077 | $ | 4,847 | $ | 155,670 | $ | 77,251 | ||||||||||
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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.
130 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 | |||||||||||
$ | 2,945 | $ | 7,880 | $ | 43,834 | $ | 57,102 | |||||||
— | — | — | — | |||||||||||
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2,945 | 7,880 | 43,834 | 57,102 | |||||||||||
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| |||||||
239 | 527 | 3,162 | 4,046 | |||||||||||
398 | 877 | 647 | 6,739 | |||||||||||
399 | 878 | 5,270 | 6,744 | |||||||||||
— | † | — | † | — | † | — | † | |||||||
— | — | — | — | |||||||||||
50 | 53 | 80 | 110 | |||||||||||
4 | 7 | 30 | 49 | |||||||||||
12 | 17 | 223 | 49 | |||||||||||
1 | 2 | 12 | 21 | |||||||||||
15 | 15 | 16 | 18 | |||||||||||
11 | 11 | 12 | 11 | |||||||||||
3 | 3 | 3 | 11 | |||||||||||
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| |||||||
1,132 | 2,390 | 9,455 | 17,798 | |||||||||||
80 | 176 | 1,054 | 1,349 | |||||||||||
47 | 14 | — | — | |||||||||||
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127 | 190 | 1,054 | 1,349 | |||||||||||
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1,005 | 2,200 | 8,401 | 16,449 | |||||||||||
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1,940 | 5,680 | 35,433 | 40,653 | |||||||||||
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| |||||||
— | — | (21,805 | ) | — | ||||||||||
617 | 169 | 11,394 | 18,556 | |||||||||||
(1,246 | ) | (5,543 | ) | (7,635 | ) | (17,863 | ) | |||||||
— | — | — | — | |||||||||||
(4 | ) | 26 | 114 | 117 | ||||||||||
3,310 | 22,171 | 167,499 | 131,016 | |||||||||||
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| |||||||
2,677 | 16,823 | 149,567 | 131,826 | |||||||||||
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| |||||||
— | — | (11,132 | ) | — | ||||||||||
22,363 | 28,958 | 201,188 | 297,458 | |||||||||||
(1,249 | ) | (5,833 | ) | (9,637 | ) | (25,848 | ) | |||||||
— | — | — | — | |||||||||||
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| |||||||
21,114 | 23,125 | 180,419 | 271,610 | |||||||||||
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| |||||||
23,791 | 39,948 | 329,986 | 403,436 | |||||||||||
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| |||||||
$ | 25,731 | $ | 45,628 | $ | 365,419 | $ | 444,089 | |||||||
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American Funds Insurance Series 131
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, | ||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 56,332 | $ | 50,276 | $ | 13,730 | $ | 10,787 | $ | 241,310 | $ | 162,005 | ||||||||||||
Net realized gain (loss) | 193,918 | 343,542 | 251,270 | 247,061 | 745,536 | 2,848,894 | ||||||||||||||||||
Net unrealized appreciation (depreciation) | 1,619,747 | (919,676 | ) | 882,559 | (673,158 | ) | 6,038,232 | (2,971,090 | ) | |||||||||||||||
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| |||||||||||||
Net increase (decrease) in net assets resulting from operations | 1,869,997 | (525,858 | ) | 1,147,559 | (415,310 | ) | 7,025,078 | 39,809 | ||||||||||||||||
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Distributions paid to shareholders | (417,934 | ) | (474,814 | ) | (284,752 | ) | (196,135 | ) | (2,978,202 | ) | (2,648,515 | ) | ||||||||||||
Net capital share transactions | (153,769 | ) | 267,749 | 102,952 | (49,079 | ) | 974,922 | 1,071,109 | ||||||||||||||||
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| |||||||||||||
Total increase (decrease) in net assets | 1,298,294 | (732,923 | ) | 965,759 | (660,524 | ) | 5,021,798 | (1,537,597 | ) | |||||||||||||||
Net assets: | ||||||||||||||||||||||||
Beginning of year | 5,502,153 | 6,235,076 | 3,654,514 | 4,315,038 | 23,447,861 | 24,985,458 | ||||||||||||||||||
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End of year | $ | 6,800,447 | $ | 5,502,153 | $ | 4,620,273 | $ | 3,654,514 | $ | 28,469,659 | $ | 23,447,861 | ||||||||||||
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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, | ||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 37,530 | $ | 37,077 | $ | 24,376 | $ | 18,120 | $ | 527,540 | $ | 495,623 | ||||||||||||
Net realized gain (loss) | (37,024 | ) | 19,646 | (6,878 | ) | (12,903 | ) | 20,909 | 1,250,899 | |||||||||||||||
Net unrealized appreciation (depreciation) | 293,939 | (222,569 | ) | 117,343 | (53,867 | ) | 4,312,978 | (2,879,563 | ) | |||||||||||||||
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|
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|
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| |||||||||||||
Net increase (decrease) in net assets resulting from operations | 294,445 | (165,846 | ) | 134,841 | (48,650 | ) | 4,861,427 | (1,133,041 | ) | |||||||||||||||
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Distributions paid to shareholders | (53,548 | ) | (35,982 | ) | (24,614 | ) | (20,515 | ) | (1,801,337 | ) | (1,587,775 | ) | ||||||||||||
Net capital share transactions | (78,069 | ) | 77,119 | 213,209 | 149,988 | 1,434,114 | (13,827 | ) | ||||||||||||||||
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| |||||||||||||
Total increase (decrease) in net assets | 162,828 | (124,709 | ) | 323,436 | 80,823 | 4,494,204 | (2,734,643 | ) | ||||||||||||||||
Net assets: | ||||||||||||||||||||||||
Beginning of year | 1,337,258 | 1,461,967 | 675,280 | 594,457 | 22,925,451 | 25,660,094 | ||||||||||||||||||
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End of year | $ | 1,500,086 | $ | 1,337,258 | $ | 998,716 | $ | 675,280 | $ | 27,419,655 | $ | 22,925,451 | ||||||||||||
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See end of statements of changes in net assets for footnote.
See notes to financial statements.
132 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, | ||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||
$ | 136,307 | $ | 147,886 | $ | 34,732 | $ | 32,835 | $ | 189,701 | $ | 183,892 | $ | 38,039 | $ | 35,857 | $ | 648,555 | $ | 479,019 | |||||||||||||||||||
(127,992) | 247,240 | 32,951 | 126,203 | 85,829 | 687,384 | 51,837 | 99,872 | 902,476 | 3,357,516 | |||||||||||||||||||||||||||||
1,988,427 | (1,741,754 | ) | 791,400 | (647,033 | ) | 1,423,960 | (1,602,222 | ) | 449,868 | (325,530 | ) | 6,175,985 | (4,232,991 | ) | ||||||||||||||||||||||||
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| |||||||||||||||||||
1,996,742 | (1,346,628 | ) | 859,083 | (487,995 | ) | 1,699,490 | (730,946 | ) | 539,744 | (189,801 | ) | 7,727,016 | (396,456 | ) | ||||||||||||||||||||||||
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(394,620) | (646,470 | ) | (164,192 | ) | (126,412 | ) | (878,225 | ) | (883,615 | ) | (140,198 | ) | (186,991 | ) | (3,957,175 | ) | (2,606,909 | ) | ||||||||||||||||||||
(536,801) | 1,245,386 | 54,641 | 92,573 | 429,824 | 265,984 | (76,937 | ) | 90,220 | 2,392,290 | 2,175,138 | ||||||||||||||||||||||||||||
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1,065,321 | (747,712 | ) | 749,532 | (521,834 | ) | 1,251,089 | (1,348,577 | ) | 322,609 | (286,572 | ) | 6,162,131 | (828,227 | ) | ||||||||||||||||||||||||
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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$ | 10,075,431 | $ | 9,010,110 | $ | 3,760,411 | $ | 3,010,879 | $ | 9,282,361 | $ | 8,031,272 | $ | 2,138,483 | $ | 1,815,874 | $ | 36,026,266 | $ | 29,864,135 | |||||||||||||||||||
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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, | ||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||
$ | 6,777 | $ | 6,105 | $ | 272,023 | $ | 269,087 | $ | 52,158 | $ | 55,434 | $ | 82,861 | $ | 84,812 | $ | 6,346 | $ | 6,148 | |||||||||||||||||||
9,826 | 3,576 | 243,332 | (168,412 | ) | 21,665 | (11,729 | ) | (19,893 | ) | (24,544 | ) | 9,940 | (7,618 | ) | ||||||||||||||||||||||||
58,663 | (33,957 | ) | 411,625 | (164,842 | ) | 87,557 | (70,008 | ) | 86,931 | (86,196 | ) | (1,209 | ) | 2,541 | ||||||||||||||||||||||||
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| |||||||||||||||||||
75,266 | (24,276 | ) | 926,980 | (64,167 | ) | 161,380 | (26,303 | ) | 149,899 | (25,928 | ) | 15,077 | 1,071 | |||||||||||||||||||||||||
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| |||||||||||||||||||
(16,934) | (9,700 | ) | (280,200 | ) | (267,421 | ) | (35,756 | ) | (56,130 | ) | (79,066 | ) | (79,933 | ) | (7,525 | ) | (6,505 | ) | ||||||||||||||||||||
12,429 | 46,266 | 49,693 | (511,419 | ) | (84,997 | ) | (297,128 | ) | (8,439 | ) | (144,120 | ) | (4,217 | ) | (43,561 | ) | ||||||||||||||||||||||
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| |||||||||||||||||||
70,761 | 12,290 | 696,473 | (843,007 | ) | 40,627 | (379,561 | ) | 62,394 | (249,981 | ) | 3,335 | (48,995 | ) | |||||||||||||||||||||||||
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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$ | 436,950 | $ | 366,189 | $ | 10,551,160 | $ | 9,854,687 | $ | 2,128,644 | $ | 2,088,017 | $ | 1,266,293 | $ | 1,203,899 | $ | 294,510 | $ | 291,175 | |||||||||||||||||||
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American Funds Insurance Series 133
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, | ||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 4,833 | $ | 4,036 | $ | 55,852 | $ | 56,785 | $ | 2,886 | $ | 1,509 | ||||||||||||
Net realized gain (loss) | (1 | ) | — | 122,154 | (86,715 | ) | 30,629 | 21,463 | ||||||||||||||||
Net unrealized appreciation (depreciation) | 15 | 33 | (22,336 | ) | 49,517 | 43,736 | (26,917 | ) | ||||||||||||||||
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| |||||||||||||
Net increase (decrease) in net assets resulting from operations | 4,847 | 4,069 | 155,670 | 19,587 | 77,251 | (3,945 | ) | |||||||||||||||||
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Distributions paid to shareholders | (5,093 | ) | (3,517 | ) | (60,961 | ) | (55,819 | ) | (30,222 | ) | (21,941 | ) | ||||||||||||
Net capital share transactions | (21,528 | ) | 1,047 | (67,678 | ) | (197,780 | ) | 49,348 | 81,200 | |||||||||||||||
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| |||||||||||||
Total increase (decrease) in net assets | (21,774 | ) | 1,599 | 27,031 | (234,012 | ) | 96,377 | 55,314 | ||||||||||||||||
Net assets: | ||||||||||||||||||||||||
Beginning of year | 306,404 | 304,805 | 2,869,303 | 3,103,315 | 343,273 | 287,959 | ||||||||||||||||||
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End of year | $ | 284,630 | $ | 306,404 | $ | 2,896,334 | $ | 2,869,303 | $ | 439,650 | $ | 343,273 | ||||||||||||
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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 | |||||||||||||||||||||||||||
Year ended December 31, | Year ended December 31, | Year ended December 31, | Year ended December 31, | |||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||
$ | 1,940 | $ | 2,317 | $ | 5,680 | $ | 5,276 | $ | 35,433 | $ | 2,685 | $ | 40,653 | $ | 62,566 | |||||||||||||||
2,677 | 5,722 | 16,823 | 18,018 | 149,567 | 6,953 | 131,826 | 97,415 | |||||||||||||||||||||||
21,114 | (25,332 | ) | 23,125 | (49,299 | ) | 180,419 | (21,166 | ) | 271,610 | (366,555 | ) | |||||||||||||||||||
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| |||||||||||||||
25,731 | (17,293 | ) | 45,628 | (26,005 | ) | 365,419 | (11,528 | ) | 444,089 | (206,574 | ) | |||||||||||||||||||
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| |||||||||||||||
(7,796 | ) | (3,428 | ) | (23,415 | ) | (23,525 | ) | (32,440 | ) | (12,352 | ) | (177,811 | ) | (242,968 | ) | |||||||||||||||
(3,125 | ) | 23,257 | 6,553 | 19,295 | 44,643 | 1,707,014 | 23,729 | (1,462,371 | ) | |||||||||||||||||||||
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| |||||||||||||||
14,810 | 2,536 | 28,766 | (30,235 | ) | 377,622 | 1,683,134 | 290,007 | (1,911,913 | ) | |||||||||||||||||||||
150,959 | 148,423 | 336,669 | 366,904 | 1,892,102 | 208,968 | 2,542,497 | 4,454,410 | |||||||||||||||||||||||
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$ | 165,769 | $ | 150,959 | $ | 365,435 | $ | 336,669 | $ | 2,269,724 | $ | 1,892,102 | $ | 2,832,504 | $ | 2,542,497 | |||||||||||||||
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American Funds Insurance Series 135
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 34 different funds (“the funds”), including 23 funds in the series covered in this report. The other 11 funds in the series are covered in separate reports. Six funds in the series are covered in the American Funds Insurance Series - Target Date Series report and five funds in the series are covered in the American Funds Insurance Series - Portfolio Series 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.
Shareholders approved a proposal to reorganize 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 — To provide long-term growth of capital.
Global Small Capitalization Fund — To provide long-term growth of capital.
Growth Fund — To provide growth of capital.
International Fund — To provide long-term growth of capital.
New World Fund — To provide long-term capital appreciation.
Blue Chip Income and Growth Fund — 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 — To provide long-term growth of capital while providing current income.
Growth-Income Fund — To achieve long-term growth of capital and income.
International Growth and Income Fund — To provide long-term growth of capital while providing current income.
Capital Income Builder — The two primary objectives are (1) to provide a level of current income that exceeds the average yield on U.S. stocks generally and (2) to provide a growing stream of income over the years. The secondary objective is to provide growth of capital.
Asset Allocation Fund — To provide high total return (including income and capital gains) 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 — To provide as high a level of current income as is consistent with the preservation of capital.
Global Bond Fund — To provide, over the long term, a high level of total return consistent with prudent investment management.
High-Income Bond Fund — The primary objective is to provide a high level of current income. The secondary objective is capital appreciation.
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Mortgage Fund — To provide current income and preservation of capital.
Ultra-Short Bond Fund — 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 — To provide a high level of current income consistent with preservation of capital.
Managed Risk Growth Fund — To provide growth of capital while seeking to manage volatility and provide downside protection.
Managed Risk International Fund — To provide long-term growth of capital while seeking to manage volatility and provide downside protection.
Managed Risk Blue Chip Income and Growth Fund — 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 — To achieve long-term growth of capital and income while seeking to manage volatility and provide downside protection.
Managed Risk Asset Allocation Fund — To provide high total return (including income and capital gains) 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.
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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.
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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 Capital Group Central Cash Fund (“CCF”) is valued based upon a floating net asset value, which fluctuates with changes in the value of CCF’s portfolio securities. The underlying securities are valued based on the policies and procedures in CCF’s statement of additional information. 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.
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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, 2019 (dollars in thousands):
Global Growth Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 1,185,255 | $ | 794,324 | $ | — | $ | 1,979,579 | ||||||||
Consumer discretionary | 474,696 | 744,806 | — | 1,219,502 | ||||||||||||
Health care | 527,781 | 214,362 | — | 742,143 | ||||||||||||
Financials | 302,133 | 398,337 | — | 700,470 | ||||||||||||
Consumer staples | 291,919 | 259,874 | — | 551,793 | ||||||||||||
Communication services | 372,299 | 163,033 | — | 535,332 | ||||||||||||
Industrials | 73,839 | 453,487 | — | 527,326 | ||||||||||||
Materials | 144,609 | 41,190 | — | 185,799 | ||||||||||||
Energy | 12,046 | 125,318 | — | 137,364 | ||||||||||||
Utilities | — | 5,646 | — | 5,646 | ||||||||||||
Preferred securities | — | 112,584 | — | 112,584 | ||||||||||||
Short-term securities | 137,140 | — | — | 137,140 | ||||||||||||
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| |||||||||
Total | $ | 3,521,717 | $ | 3,312,961 | $ | — | $ | 6,834,678 | ||||||||
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Global Small Capitalization Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Health care | $ | 832,166 | $ | 191,178 | $ | — | $ | 1,023,344 | ||||||||
Information technology | 472,972 | 397,575 | — | 870,547 | ||||||||||||
Industrials | 128,020 | 558,859 | — | 686,879 | ||||||||||||
Consumer discretionary | 450,887 | 224,996 | — | 675,883 | ||||||||||||
Financials | 194,307 | 161,242 | — | 355,549 | ||||||||||||
Real estate | 121,286 | 62,447 | — | 183,733 | ||||||||||||
Materials | 98,936 | 80,609 | — | 179,545 | ||||||||||||
Communication services | 56,064 | 89,863 | — | 145,927 | ||||||||||||
Consumer staples | 46,475 | 76,569 | — | 123,044 | ||||||||||||
Energy | 32,183 | 26,545 | 14,352 | 73,080 | ||||||||||||
Utilities | 17,485 | 46,609 | — | 64,094 | ||||||||||||
Preferred securities | 17,503 | — | 29,706 | 47,209 | ||||||||||||
Rights & warrants | — | 53 | — | 53 | ||||||||||||
Short-term securities | 278,833 | — | — | 278,833 | ||||||||||||
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Total | $ | 2,747,117 | $ | 1,916,545 | $ | 44,058 | $ | 4,707,720 | ||||||||
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Growth Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 6,232,866 | $ | 927,524 | $ | — | $ | 7,160,390 | ||||||||
Communication services | 5,180,447 | — | — | 5,180,447 | ||||||||||||
Health care | 4,685,272 | 29,104 | 38,849 | 4,753,225 | ||||||||||||
Consumer discretionary | 3,070,193 | 143,533 | — | 3,213,726 | ||||||||||||
Financials | 2,245,437 | 171,043 | — | 2,416,480 | ||||||||||||
Industrials | 1,283,561 | 551,356 | — | 1,834,917 | ||||||||||||
Materials | 758,550 | 47,905 | — | 806,455 | ||||||||||||
Consumer staples | 522,509 | 251,756 | — | 774,265 | ||||||||||||
Energy | 698,230 | — | — | 698,230 | ||||||||||||
Real estate | 486,857 | — | — | 486,857 | ||||||||||||
Utilities | 77,731 | — | — | 77,731 | ||||||||||||
Convertible bonds | — | — | 25,000 | 25,000 | ||||||||||||
Short-term securities | 1,102,492 | — | — | 1,102,492 | ||||||||||||
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Total | $ | 26,344,145 | $ | 2,122,221 | $ | 63,849 | $ | 28,530,215 | ||||||||
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International Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Financials | $ | 63,111 | $ | 1,589,115 | $ | — | $ | 1,652,226 | ||||||||
Consumer discretionary | 549,505 | 856,658 | — | 1,406,163 | ||||||||||||
Industrials | 31,330 | 1,364,421 | — | 1,395,751 | ||||||||||||
Health care | 89,208 | 1,162,960 | — | 1,252,168 | ||||||||||||
Information technology | 47,551 | 682,008 | — | 729,559 | ||||||||||||
Materials | 297,118 | 380,773 | — | 677,891 | ||||||||||||
Consumer staples | 22,274 | 654,869 | — | 677,143 | ||||||||||||
Communication services | 12,395 | 482,238 | — | 494,633 | ||||||||||||
Energy | 91,650 | 398,340 | — | 489,990 | ||||||||||||
Utilities | — | 358,981 | — | 358,981 | ||||||||||||
Real estate | — | 223,309 | — | 223,309 | ||||||||||||
Preferred securities | 50,234 | 70,526 | — | 120,760 | ||||||||||||
Rights & warrants | — | 22,939 | — | 22,939 | ||||||||||||
Bonds, notes & other debt instruments | — | 44,329 | — | 44,329 | ||||||||||||
Short-term securities | 544,457 | — | — | 544,457 | ||||||||||||
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Total | $ | 1,798,833 | $ | 8,291,466 | $ | — | $ | 10,090,299 | ||||||||
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Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | $ | — | $ | (131 | ) | $ | — | $ | (131 | ) | ||||||
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* | Forward currency contracts are not included in the investment portfolio. |
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New World Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 585,583 | $ | 279,934 | $ | — | $ | 865,517 | ||||||||
Financials | 118,563 | 374,375 | — | 492,938 | ||||||||||||
Energy | 41,325 | 330,863 | — | 372,188 | ||||||||||||
Health care | 186,827 | 157,245 | — | 344,072 | ||||||||||||
Materials | 161,739 | 151,049 | — | 312,788 | ||||||||||||
Consumer discretionary | 111,867 | 152,128 | — | 263,995 | ||||||||||||
Communication services | 181,968 | 39,344 | — | 221,312 | ||||||||||||
Consumer staples | 10,237 | 199,516 | — | 209,753 | ||||||||||||
Industrials | 13,319 | 152,169 | — | 165,488 | ||||||||||||
Real estate | 20,109 | 21,107 | — | 41,216 | ||||||||||||
Utilities | 17,612 | 15,724 | — | 33,336 | ||||||||||||
Preferred securities | 42,757 | 28,620 | 27 | 71,404 | ||||||||||||
Rights & warrants | — | 26,479 | — | 26,479 | ||||||||||||
Bonds, notes & other debt instruments | — | 96,814 | — | 96,814 | ||||||||||||
Short-term securities | 238,673 | 7,930 | — | 246,603 | ||||||||||||
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Total | $ | 1,730,579 | $ | 2,033,297 | $ | 27 | $ | 3,763,903 | ||||||||
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Blue Chip Income and Growth Fund
At December 31, 2019, all of the fund’s investment securities were classified as Level 1.
Global Growth and Income Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 177,115 | $ | 158,462 | $ | — | $ | 335,577 | ||||||||
Industrials | 116,335 | 152,898 | — | 269,233 | ||||||||||||
Financials | 87,217 | 166,525 | — | 253,742 | ||||||||||||
Consumer discretionary | 90,534 | 114,346 | — | 204,880 | ||||||||||||
Health care | 137,436 | 62,628 | — | 200,064 | ||||||||||||
Communication services | 72,048 | 108,658 | — | 180,706 | ||||||||||||
Materials | 82,829 | 79,135 | — | 161,964 | ||||||||||||
Energy | 25,886 | 113,797 | — | 139,683 | ||||||||||||
Utilities | 13,510 | 110,341 | — | 123,851 | ||||||||||||
Real estate | 95,121 | 15,936 | — | 111,057 | ||||||||||||
Consumer staples | 22,758 | 63,369 | — | 86,127 | ||||||||||||
Preferred securities | 7,892 | — | — | 7,892 | ||||||||||||
Bonds, notes & other debt instruments | — | 34,957 | — | 34,957 | ||||||||||||
Short-term securities | 28,561 | — | — | 28,561 | ||||||||||||
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Total | $ | 957,242 | $ | 1,181,052 | $ | — | $ | 2,138,294 | ||||||||
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Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | $ | — | $ | (137 | ) | $ | — | $ | (137 | ) | ||||||
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* | Forward currency contracts are not included in the investment portfolio. |
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Growth-Income Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Health care | $ | 5,175,002 | $ | 664,418 | $ | — | $ | 5,839,420 | ||||||||
Information technology | 5,204,952 | 215,296 | — | 5,420,248 | ||||||||||||
Communication services | 4,182,848 | 149,142 | — | 4,331,990 | ||||||||||||
Financials | 3,510,960 | 401,089 | — | 3,912,049 | ||||||||||||
Industrials | 3,108,920 | 698,875 | — | 3,807,795 | ||||||||||||
Consumer staples | 1,541,333 | 1,016,810 | — | 2,558,143 | ||||||||||||
Energy | 2,399,987 | 99,768 | — | 2,499,755 | ||||||||||||
Consumer discretionary | 1,775,002 | 48,931 | — | 1,823,933 | ||||||||||||
Materials | 1,577,903 | 163,566 | — | 1,741,469 | ||||||||||||
Real estate | 1,068,563 | — | — | 1,068,563 | ||||||||||||
Utilities | 717,617 | 163,329 | — | 880,946 | ||||||||||||
Mutual funds | — | 16,337 | — | 16,337 | ||||||||||||
Convertible stocks | 184,737 | — | — | 184,737 | ||||||||||||
Bonds, notes & other debt instruments | — | 5,722 | — | 5,722 | ||||||||||||
Short-term securities | 1,940,600 | — | — | 1,940,600 | ||||||||||||
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Total | $ | 32,388,424 | $ | 3,643,283 | $ | — | $ | 36,031,707 | ||||||||
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International Growth and Income Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Financials | $ | 4,550 | $ | 246,628 | $ | — | $ | 251,178 | ||||||||
Industrials | — | 164,295 | — | 164,295 | ||||||||||||
Consumer discretionary | 55,639 | 101,948 | — | 157,587 | ||||||||||||
Health care | 6,488 | 135,357 | — | 141,845 | ||||||||||||
Energy | 21,294 | 90,307 | — | 111,601 | ||||||||||||
Utilities | — | 94,713 | — | 94,713 | ||||||||||||
Materials | 6,679 | 84,933 | — | 91,612 | ||||||||||||
Information technology | — | 84,551 | — | 84,551 | ||||||||||||
Consumer staples | — | 78,182 | — | 78,182 | ||||||||||||
Communication services | 20,440 | 56,878 | — | 77,318 | ||||||||||||
Real estate | — | 73,379 | — | 73,379 | ||||||||||||
Preferred securities | 31,463 | — | — | 31,463 | ||||||||||||
Bonds, notes & other debt instruments | — | 16,819 | — | 16,819 | ||||||||||||
Short-term securities | 128,026 | — | — | 128,026 | ||||||||||||
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Total | $ | 274,579 | $ | 1,227,990 | $ | — | $ | 1,502,569 | ||||||||
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Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | $ | — | $ | (11 | ) | $ | — | $ | (11 | ) | ||||||
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|
|
|
|
* | Forward currency contracts are not included in the investment portfolio. |
American Funds Insurance Series 143
Table of Contents
Capital Income Builder
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Consumer staples | $ | 38,725 | $ | 64,427 | $ | — | $ | 103,152 | ||||||||
Information technology | 66,952 | 29,080 | — | 96,032 | ||||||||||||
Financials | 45,772 | 38,435 | — | 84,207 | ||||||||||||
Real estate | 47,566 | 31,086 | — | 78,652 | ||||||||||||
Energy | 40,806 | 19,724 | — | 60,530 | ||||||||||||
Health care | 23,819 | 29,326 | — | 53,145 | ||||||||||||
Communication services | 4,574 | 44,219 | — | 48,793 | ||||||||||||
Utilities | 14,681 | 33,269 | — | 47,950 | ||||||||||||
Industrials | 17,339 | 27,817 | — | 45,156 | ||||||||||||
Consumer discretionary | 21,286 | 19,400 | — | 40,686 | ||||||||||||
Materials | 18,022 | 8,478 | — | 26,500 | ||||||||||||
Rights & warrants | — | — | * | — | — | * | ||||||||||
Convertible stocks | 16,025 | — | — | 16,025 | ||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
U.S. Treasury bonds & notes | — | 103,624 | — | 103,624 | ||||||||||||
Corporate bonds & notes | — | 48,638 | — | 48,638 | ||||||||||||
Mortgage-backed obligations | — | 46,322 | — | 46,322 | ||||||||||||
Asset-backed obligations | — | 14,269 | — | 14,269 | ||||||||||||
Municipals | — | 415 | — | 415 | ||||||||||||
Short-term securities | 76,520 | — | — | 76,520 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 432,087 | $ | 558,529 | $ | — | $ | 990,616 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other investments† | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 37 | $ | — | $ | — | $ | 37 | ||||||||
Unrealized appreciation on interest rate swaps | — | 1,109 | — | 1,109 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (368 | ) | — | — | (368 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | — | (280 | ) | — | (280 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | (331 | ) | $ | 829 | $ | — | $ | 498 | |||||||
|
|
|
|
|
|
|
|
* | Amount less than one thousand. |
† | Futures contracts and interest rate swaps are not included in the investment portfolio. |
144 American Funds Insurance Series
Table of Contents
Asset Allocation Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 4,271,389 | $ | 20,847 | $ | 20 | $ | 4,292,256 | ||||||||
Financials | 2,943,889 | 78,737 | — | 3,022,626 | ||||||||||||
Health care | 2,830,970 | 85,268 | 3,683 | 2,919,921 | ||||||||||||
Industrials | 1,502,299 | 115,339 | — | 1,617,638 | ||||||||||||
Consumer discretionary | 1,098,602 | 242,932 | — | 1,341,534 | ||||||||||||
Communication services | 1,184,337 | — | — | 1,184,337 | ||||||||||||
Consumer staples | 788,363 | 363,014 | — | 1,151,377 | ||||||||||||
Energy | 1,028,032 | 1,506 | — | 1,029,538 | ||||||||||||
Materials | 697,667 | — | — | 697,667 | ||||||||||||
Real estate | 238,213 | — | — | 238,213 | ||||||||||||
Utilities | 172,921 | — | — | 172,921 | ||||||||||||
Rights & warrants | — | — | 1,070 | 1,070 | ||||||||||||
Convertible stocks | 137,828 | — | 4,983 | 142,811 | ||||||||||||
Convertible bonds | — | 127 | — | 127 | ||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
U.S. Treasury bonds & notes | — | 3,226,667 | — | 3,226,667 | ||||||||||||
Corporate bonds & notes | — | 2,834,147 | 6,531 | 2,840,678 | ||||||||||||
Mortgage-backed obligations | — | 1,900,213 | — | 1,900,213 | ||||||||||||
Federal agency bonds & notes | — | 12,974 | — | 12,974 | ||||||||||||
Other | — | 186,876 | — | 186,876 | ||||||||||||
Short-term securities | 1,589,437 | — | — | 1,589,437 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 18,483,947 | $ | 9,068,647 | $ | 16,287 | $ | 27,568,881 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 1,710 | $ | — | $ | — | $ | 1,710 | ||||||||
Unrealized appreciation on interest rate swaps | — | 1,035 | — | 1,035 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (4,672 | ) | — | — | (4,672 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | — | (4,847 | ) | — | (4,847 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | (2,962 | ) | $ | (3,812 | ) | $ | — | $ | (6,774 | ) | |||||
|
|
|
|
|
|
|
|
* | Futures contracts and interest rate swaps are not included in the investment portfolio. |
American Funds Insurance Series 145
Table of Contents
Global Balanced Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 30,609 | $ | 29,614 | $ | — | $ | 60,223 | ||||||||
Health care | 26,812 | 21,313 | — | 48,125 | ||||||||||||
Financials | 22,318 | 19,024 | — | 41,342 | ||||||||||||
Consumer staples | 20,634 | 18,609 | — | 39,243 | ||||||||||||
Industrials | 11,263 | 20,997 | — | 32,260 | ||||||||||||
Consumer discretionary | 12,095 | 7,459 | — | 19,554 | ||||||||||||
Materials | 2,530 | 9,294 | — | 11,824 | ||||||||||||
Real estate | 10,418 | — | — | 10,418 | ||||||||||||
Communication services | 4,785 | 2,422 | — | 7,207 | ||||||||||||
Energy | 4,309 | 2,872 | — | 7,181 | ||||||||||||
Utilities | — | 3,015 | — | 3,015 | ||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
Bonds & notes of governments & government agencies outside the U.S. | — | 60,125 | — | 60,125 | ||||||||||||
U.S. Treasury bonds & notes | — | 51,042 | — | 51,042 | ||||||||||||
Corporate bonds & notes | — | 21,074 | — | 21,074 | ||||||||||||
Mortgage-backed obligations | — | 8,367 | — | 8,367 | ||||||||||||
Short-term securities | 2,825 | 12,095 | — | 14,920 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 148,598 | $ | 287,322 | $ | — | $ | 435,920 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on open forward currency contracts | $ | — | $ | 173 | $ | — | $ | 173 | ||||||||
Unrealized appreciation on interest rate swaps | — | 12 | — | 12 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (16 | ) | — | — | (16 | ) | ||||||||||
Unrealized depreciation on open forward currency contracts | — | (272 | ) | — | (272 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | — | (14 | ) | — | (14 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | (16 | ) | $ | (101 | ) | $ | — | $ | (117 | ) | |||||
|
|
|
|
|
|
|
|
* | 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: | ||||||||||||||||
Mortgage-backed obligations | $ | — | $ | 3,363,969 | $ | — | $ | 3,363,969 | ||||||||
Corporate bonds & notes | — | 3,122,420 | — | 3,122,420 | ||||||||||||
U.S. Treasury bonds & notes | — | 3,031,887 | — | 3,031,887 | ||||||||||||
Bonds & notes of governments & government agencies outside the U.S. | — | 319,908 | — | 319,908 | ||||||||||||
Asset-backed obligations | — | 238,376 | — | 238,376 | ||||||||||||
Municipals | — | 226,157 | — | 226,157 | ||||||||||||
Federal agency bonds & notes | — | 12,086 | — | 12,086 | ||||||||||||
Common stocks | — | 135 | 9 | 144 | ||||||||||||
Rights & warrants | — | 1 | 2 | 3 | ||||||||||||
Short-term securities | 602,451 | — | — | 602,451 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 602,451 | $ | 10,314,939 | $ | 11 | $ | 10,917,401 | ||||||||
|
|
|
|
|
|
|
|
146 American Funds Insurance Series
Table of Contents
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 8,373 | $ | — | $ | — | $ | 8,373 | ||||||||
Unrealized appreciation on open forward currency contracts | — | 2,743 | — | 2,743 | ||||||||||||
Unrealized appreciation on interest rate swaps | — | 5,879 | — | 5,879 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (12,452 | ) | — | — | (12,452 | ) | ||||||||||
Unrealized depreciation on open forward currency contracts | — | (3,934 | ) | — | (3,934 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | — | (11,985 | ) | — | (11,985 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | (4,079 | ) | $ | (7,297 | ) | $ | — | $ | (11,376 | ) | |||||
|
|
|
|
|
|
|
|
* | 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: | ||||||||||||||||
Euros | $ | — | $ | 379,876 | $ | — | $ | 379,876 | ||||||||
Japanese yen | — | 284,116 | — | 284,116 | ||||||||||||
Chinese yuan renminbi | — | 69,268 | — | 69,268 | ||||||||||||
Malaysian ringgits | — | 38,844 | — | 38,844 | ||||||||||||
Indian rupees | — | 35,296 | — | 35,296 | ||||||||||||
Brazilian reais | — | 33,633 | — | 33,633 | ||||||||||||
South African rand | — | 31,058 | — | 31,058 | ||||||||||||
Danish kroner | — | 30,945 | — | 30,945 | ||||||||||||
British pounds | — | 29,213 | — | 29,213 | ||||||||||||
Canadian dollars | — | 27,439 | — | 27,439 | ||||||||||||
Mexican pesos | — | 26,891 | — | 26,891 | ||||||||||||
Norwegian kroner | — | 24,740 | — | 24,740 | ||||||||||||
Israeli shekels | — | 23,588 | — | 23,588 | ||||||||||||
Polish zloty | — | 17,537 | — | 17,537 | ||||||||||||
U.S. dollars | — | 879,679 | 1,187 | 880,866 | ||||||||||||
Other | — | 59,257 | — | 59,257 | ||||||||||||
Convertible bonds | — | 10 | — | 10 | ||||||||||||
Convertible stocks | — | — | 847 | 847 | ||||||||||||
Common stocks | 881 | 258 | 3 | 1,142 | ||||||||||||
Rights & warrants | — | — | 130 | 130 | ||||||||||||
Short-term securities | 77,745 | 46,452 | — | 124,197 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 78,626 | $ | 2,038,100 | $ | 2,167 | $ | 2,118,893 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 234 | $ | — | $ | — | $ | 234 | ||||||||
Unrealized appreciation on open forward currency contracts | — | 3,976 | — | 3,976 | ||||||||||||
Unrealized appreciation on interest rate swaps | — | 165 | — | 165 | ||||||||||||
Unrealized appreciation on credit default swaps | — | 731 | — | 731 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (1,039 | ) | — | — | (1,039 | ) | ||||||||||
Unrealized depreciation on open forward currency contracts | — | (6,186 | ) | — | (6,186 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | — | (704 | ) | — | (704 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | (805 | ) | $ | (2,018 | ) | $ | — | $ | (2,823 | ) | |||||
|
|
|
|
|
|
|
|
* | Futures contracts, forward currency contracts, interest rate swaps and credit default swaps are not included in the investment portfolio. |
American Funds Insurance Series 147
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 | $ | — | $ | 1,165,929 | $ | 9,187 | $ | 1,175,116 | ||||||||
Municipals | — | 5 | — | 5 | ||||||||||||
Convertible bonds | — | 4,694 | — | 4,694 | ||||||||||||
Convertible stocks | 3,223 | — | 4,834 | 8,057 | ||||||||||||
Preferred securities | — | 2,187 | — | 2,187 | ||||||||||||
Common stocks | 7,454 | 1,635 | 4,946 | 14,035 | ||||||||||||
Rights & warrants | — | 3 | 708 | 711 | ||||||||||||
Short-term securities | 39,112 | — | — | 39,112 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 49,789 | $ | 1,174,453 | $ | 19,675 | $ | 1,243,917 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other investments1 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 192 | $ | — | $ | — | $ | 192 | ||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (33 | ) | — | — | (33 | ) | ||||||||||
Unrealized depreciation on credit default swaps | — | (1,578 | ) | — | (1,578 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 159 | $ | (1,578 | ) | $ | — | $ | (1,419 | ) | ||||||
|
|
|
|
|
|
|
|
1 | Futures contracts 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, 2019 (dollars in thousands):
Beginning value at 1/1/2019 | Transfers into Level 32 | Purchases | Sales | Net realized gain3 | Unrealized depreciation3 | Transfers out of Level 32 | Ending value at 12/31/2019 | |||||||||||||||||||||||||
Investment securities | $ | 17,537 | $ | — | $ | 10,278 | $ | (5,076 | ) | $ | 6 | $ | (3,050 | ) | $ | (20 | ) | $ | 19,675 | |||||||||||||
Net unrealized depreciation during the period on Level 3 investment securities held at December 31, 2019 |
| $ | (3,075 | ) |
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 depreciation are included in the related amounts on investments in the statement of operations. |
148 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 12/31/2019 | Valuation techniques | Unobservable inputs | Range | Weighted | Impact to | |||||||||
Bonds, notes & other debt instruments | $ | 9,187 | Yield analysis | Yield to maturity risk premium | N/A | N/A | Decrease | |||||||
Redemption value | N/A | N/A | N/A | N/A | ||||||||||
Market comparable security | N/A | N/A | N/A | N/A | ||||||||||
Convertible stocks | 4,834 | Multiple of revenue | Revenue multiple | 0.85x | 0.85x | Increase | ||||||||
Common stocks | 4,946 | Market comparable companies | EBITDA multiple | 4.8x | 4.8x | Increase | ||||||||
Discount for lack of marketability | 20% | 20% | Decrease | |||||||||||
Multiple of revenue | Revenue multiple | 1.4x | 1.4x | Increase | ||||||||||
Expected proceeds | Discount to reflect timing of receipt and amount of proceeds | 50% | 50% | Decrease | ||||||||||
Rights & warrants | 708 | Black-Scholes | Implied volatility | 30% | 30% | Increase | ||||||||
Market comparables | $ per acre | $4.5K | $4.5K | Increase | ||||||||||
$ per thousand barrels of oil equivalent per day | $25K | $25K | Increase | |||||||||||
|
| |||||||||||||
$ | 19,675 | |||||||||||||
|
|
* | 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 | $ | — | $ | 186,650 | $ | — | $ | 186,650 | ||||||||
U.S. Treasury bonds & notes | — | 28,434 | — | 28,434 | ||||||||||||
Federal agency bonds & notes | — | 18,896 | — | 18,896 | ||||||||||||
Asset-backed obligations | — | 4,681 | — | 4,681 | ||||||||||||
Short-term securities | — | 40,951 | — | 40,951 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | 279,612 | $ | — | $ | 279,612 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on interest rate swaps | $ | — | $ | 1,618 | $ | — | $ | 1,618 | ||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (746 | ) | — | — | (746 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | — | (4,450 | ) | — | (4,450 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | (746 | ) | $ | (2,832 | ) | $ | — | $ | (3,578 | ) | |||||
|
|
|
|
|
|
|
|
* | Futures contracts and interest rate swaps are not included in the investment portfolio. |
Ultra-Short Bond Fund
At December 31, 2019, all of the fund’s investment securities were classified as Level 2.
American Funds Insurance Series 149
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 | $ | — | $ | 1,481,384 | $ | — | $ | 1,481,384 | ||||||||
Mortgage-backed obligations | — | 801,424 | — | 801,424 | ||||||||||||
Federal agency bonds & notes | — | 521,045 | — | 521,045 | ||||||||||||
Short-term securities | — | 233,146 | — | 233,146 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | — | $ | 3,036,999 | $ | — | $ | 3,036,999 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 687 | $ | — | $ | — | $ | 687 | ||||||||
Unrealized appreciation on interest rate swaps | — | 25,927 | — | 25,927 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (8,635 | ) | — | — | (8,635 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | — | (46,229 | ) | — | (46,229 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | (7,948 | ) | $ | (20,302 | ) | $ | — | $ | (28,250 | ) | |||||
|
|
|
|
|
|
|
|
* | Futures contracts and interest rate swaps are not included in the investment portfolio. |
Managed Risk Growth Fund
At December 31, 2019, all of the fund’s investments were classified as Level 1.
Managed Risk International Fund
At December 31, 2019, all of the fund’s investments were classified as Level 1.
Managed Risk Blue Chip Income and Growth Fund
At December 31, 2019, all of the fund’s investments were classified as Level 1.
Managed Risk Growth-Income Fund
At December 31, 2019, all of the fund’s investments were classified as Level 1.
Managed Risk Asset Allocation Fund
At December 31, 2019, 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 related to 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 stocks — Investing in stocks may involve larger price swings and greater potential for loss than other types of investments. As a result, the value of a fund may be subject to sharp declines in value. Income provided by a fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the fund invests. These risks may be even greater in the case of smaller capitalization stocks.
150 American Funds Insurance Series
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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.
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
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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 fund’s 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, or even impossible, 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. In certain cases, the fund may be hindered or delayed in exercising remedies against or closing out derivative instruments with a counterparty, which may result additional losses.
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.
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.
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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 may become difficult or impossible to sell, particularly during times of market turmoil. Liquidity may be impacted by 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. Additionally, in accordance with an exemption under the Investment Company Act of 1940, as amended, the investment adviser considers only proprietary funds when selecting underlying investment options and allocations. This means that the fund’s investment adviser did not, nor does it expect to, consider any unaffiliated funds as underlying investment options for the fund. This strategy could raise certain conflicts of interest when choosing underlying investments for the fund, including the selection of funds that result in greater compensation to the adviser or funds with relatively lower historical investment results. The investment adviser has policies and procedures designed to mitigate material conflicts of interest that may arise in connection with its management of the fund.
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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.
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 risk 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 — 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 — Some of the funds have entered into securities lending transactions in which the funds earn 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.
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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 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.
The following table presents the value of the securities on loan, the type and value of collateral received and the value of the investment securities purchased, if any, from the cash collateral received by each fund (dollars in thousands):
Collateral type | ||||||||||||||||
Fund | Value of securities on loan | Cash | U.S. government securities | Value of investment securities purchased | ||||||||||||
Global Small Capitalization Fund | $ | 102,111 | $ | 95,814 | $ | 11,588 | $ | 86,233 | ||||||||
New World Fund | 2,679 | — | 2,733 | — | ||||||||||||
Asset Allocation Fund | 5,211 | 5,103 | 232 | 4,593 |
Investment securities purchased from cash collateral 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.
Unfunded commitments — High-Income Bond Fund has participated in transactions that involve unfunded commitments, which may obligate the fund to purchase new or additional bonds if certain contingencies are met. As of December 31, 2019, the maximum exposure of unfunded loan commitments for High-Income Bond Fund was $131,000, which would represent 0.01% of the net assets of the fund should such commitments become due.
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.
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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, known as a futures commission merchant (“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 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 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
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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.
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 contracts purchased, futures contracts, forward currency contracts, interest rate swaps and credit default swaps while held for each fund (dollars in thousands):
Options | Forward | Interest | Credit | |||||||||||||||||
contracts | Futures | currency | rate | default | ||||||||||||||||
purchased | contracts | contracts | swaps | swaps | ||||||||||||||||
International Fund | Not applicable | Not applicable | $ | 79,279 | Not applicable | Not applicable | ||||||||||||||
New World Fund | Not applicable | Not applicable | 5,048 | * | Not applicable | Not applicable | ||||||||||||||
Global Growth and Income Fund | Not applicable | Not applicable | 7,314 | Not applicable | Not applicable | |||||||||||||||
International Growth and Income Fund | Not applicable | Not applicable | 1,564 | Not applicable | Not applicable | |||||||||||||||
Capital Income Builder | Not applicable | $ | 117,725 | Not applicable | $ | 229,667 | Not applicable | |||||||||||||
Asset Allocation Fund | Not applicable | 2,471,967 | Not applicable | 503,101 | Not applicable | |||||||||||||||
Global Balanced Fund | Not applicable | 11,883 | 23,258 | 29,983 | Not applicable | |||||||||||||||
Bond Fund | Not applicable | 4,367,285 | 671,642 | 1,344,692 | Not applicable | |||||||||||||||
Global Bond Fund | Not applicable | 470,248 | 678,676 | 532,130 | $ | 130,250 | ||||||||||||||
High-Income Bond Fund | Not applicable | 75,400 | Not applicable | 31,175 | * | 61,207 | ||||||||||||||
Mortgage Fund | Not applicable | 158,792 | Not applicable | 587,735 | Not applicable | |||||||||||||||
U.S.Government/AAA-Rated Securities Fund | Not applicable | 2,472,410 | Not applicable | 13,841,522 | Not applicable | |||||||||||||||
Managed Risk Growth Fund | Not applicable | 27,364 | Not applicable | Not applicable | Not applicable | |||||||||||||||
Managed Risk International Fund | Not applicable | 46,121 | Not applicable | Not applicable | Not applicable | |||||||||||||||
Managed Risk Blue Chip Income and Growth Fund | Not applicable | 23,146 | Not applicable | Not applicable | Not applicable | |||||||||||||||
Managed Risk Growth-Income Fund | $ | 29,328 | 130,576 | Not applicable | Not applicable | Not applicable | ||||||||||||||
Managed Risk Asset Allocation Fund | Not applicable | 139,336 | 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. |
American Funds Insurance Series 157
Table of Contents
The following tables identify the location and fair value amounts on the funds’ statements of assets and liabilities and the effect on the funds’ statements of operations 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, 2019 (dollars in thousands):
International 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 | $ | — | Unrealized depreciation on open forward currency contracts | $ | 131 | |||||||
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 | $ | (981 | ) | Net unrealized appreciation on forward currency contracts | $ | 394 |
New World Fund
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 | $ | 303 | Net unrealized depreciation on forward currency contracts | $ | (303 | ) |
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 | $ | — | Unrealized depreciation on open forward currency contracts | $ | 137 | |||||||
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 | $ | 579 | Net unrealized depreciation on forward currency contracts | $ | (488 | ) |
International 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 | $ | — | Unrealized depreciation on open forward currency contracts | $ | 11 |
158 American Funds Insurance Series
Table of Contents
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 | $ | (14 | ) | Net unrealized depreciation on forward currency contracts | $ | (12 | ) |
Capital Income Builder
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and | Value | Location on statement of assets and | Value | |||||||||
Futures | Interest | Unrealized appreciation1 | $ | 37 | Unrealized depreciation1 | $ | 368 | |||||||
Swap | Interest | Unrealized appreciation1 | 1,109 | Unrealized depreciation1 | 280 | |||||||||
|
|
|
| |||||||||||
$ | 1,146 | $ | 648 | |||||||||||
|
|
|
| |||||||||||
Net realized (loss) gain | Net unrealized (depreciation) appreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Interest | Net realized loss on futures contracts | $ | (501 | ) | Net unrealized depreciation on futures contracts | $ | (760 | ) | |||||
Swap | Interest | Net realized gain on swap contracts | 985 | Net unrealized appreciation on swap contracts | 829 | |||||||||
|
|
|
| |||||||||||
$ | 484 | $ | 69 | |||||||||||
|
|
|
|
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 | $ | 1,710 | Unrealized depreciation1 | $ | 4,672 | |||||||
Swap | Interest | Unrealized appreciation1 | 1,035 | Unrealized depreciation1 | 4,847 | |||||||||
|
|
|
| |||||||||||
$ | 2,745 | $ | 9,519 | |||||||||||
|
|
|
| |||||||||||
Net realized gain (loss) | Net unrealized depreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Interest | Net realized gain on futures contracts | $ | 22,485 | Net unrealized depreciation on futures contracts | $ | (8,123 | ) | ||||||
Swap | Interest | Net realized loss on swap contracts | (18,948 | ) | Net unrealized depreciation on swap contracts | (255 | ) | |||||||
|
|
|
| |||||||||||
$ | 3,537 | $ | (8,378 | ) | ||||||||||
|
|
|
|
See end of tables for footnotes.
American Funds Insurance Series 159
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 | $ | — | Unrealized depreciation1 | $ | 16 | |||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | 173 | Unrealized depreciation on open forward currency contracts | 272 | |||||||||
Swap | Interest | Unrealized appreciation1 | 12 | Unrealized depreciation1 | 14 | |||||||||
|
|
|
| |||||||||||
$ | 185 | $ | 302 | |||||||||||
|
|
|
| |||||||||||
Net realized gain (loss) | Net unrealized depreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Interest | Net realized gain on futures contracts | $ | 557 | Net unrealized depreciation on futures contracts | $ | (196 | ) | ||||||
Forward currency | Currency | Net realized loss on forward currency contracts | (440 | ) | Net unrealized depreciation on forward currency contracts | (181 | ) | |||||||
Swap | Interest | Net realized gain on swap contracts | 31 | Net unrealized depreciation on swap contracts | (7 | ) | ||||||||
|
|
|
| |||||||||||
$ | 148 | $ | (384 | ) | ||||||||||
|
|
|
|
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 | $ | 8,373 | Unrealized depreciation1 | $ | 12,452 | |||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | 2,743 | Unrealized depreciation on open forward currency contracts | 3,934 | |||||||||
Swap | Interest | Unrealized appreciation1 | 5,879 | Unrealized depreciation1 | 11,985 | |||||||||
|
|
|
| |||||||||||
$ | 16,995 | $ | 28,371 | |||||||||||
|
|
|
| |||||||||||
Net realized gain (loss) | Net unrealized (depreciation) appreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Interest | Net realized gain on futures contracts | $ | 72,397 | Net unrealized depreciation on futures contracts | $ | (23,687 | ) | ||||||
Forward currency | Currency | Net realized gain on forward currency contracts | 58 | Net unrealized appreciation on forward currency contracts | 8,081 | |||||||||
Swap | Interest | Net realized loss on swap contracts | (24,940 | ) | Net unrealized depreciation on swap contracts | (6,333 | ) | |||||||
Swap | Credit | Net realized loss on swap contracts | (342 | ) | Net unrealized appreciation on swap contracts | — | ||||||||
|
|
|
| |||||||||||
$ | 47,173 | $ | (21,939 | ) | ||||||||||
|
|
|
|
160 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 | $ | 234 | Unrealized depreciation1 | $ | 1,039 | |||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | 3,976 | Unrealized depreciation on open forward currency contracts | 6,186 | |||||||||
Forward currency | Currency | Receivables for closed forward currency contracts | 53 | Payables for closed forward currency contracts | 66 | |||||||||
Swap | Interest | Unrealized appreciation1 | 165 | Unrealized depreciation1 | 704 | |||||||||
Swap | Credit | Unrealized appreciation1 | 731 | Unrealized depreciation1 | — | |||||||||
|
|
|
| |||||||||||
$ | 5,159 | $ | 7,995 | |||||||||||
|
|
|
| |||||||||||
Net realized gain (loss) | Net unrealized (depreciation) appreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Interest | Net realized gain on futures contracts | $ | 13,348 | Net unrealized depreciation on futures contracts | $ | (5,076 | ) | ||||||
Forward currency | Currency | Net realized loss on forward currency contracts | (2,623 | ) | Net unrealized depreciation on forward currency contracts | (9,128 | ) | |||||||
Swap | Interest | Net realized gain on swap contracts | 1,160 | Net unrealized depreciation on swap contracts | (590 | ) | ||||||||
Swap | Credit | Net realized gain on swap contracts | 365 | Net unrealized appreciation on swap contracts | 731 | |||||||||
|
|
|
| |||||||||||
$ | 12,250 | $ | (14,063 | ) | ||||||||||
|
|
|
|
High-Income 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 | $ | 192 | Unrealized depreciation1 | $ | 33 | |||||||
Swap | Credit | Unrealized appreciation1 | — | Unrealized depreciation1 | 1,578 | |||||||||
|
|
|
| |||||||||||
$ | 192 | $ | 1,611 | |||||||||||
|
|
|
| |||||||||||
Net realized loss | 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 | $ | (236 | ) | Net unrealized appreciation on futures contracts | $ | 159 | ||||||
Swap | Interest | Net realized loss on swap contracts | (268 | ) | Net unrealized appreciation on swap contracts | 224 | ||||||||
Swap | Credit | Net realized loss on swap contracts | (718 | ) | Net unrealized depreciation on swap contracts | (3,122 | ) | |||||||
|
|
|
| |||||||||||
$ | (1,222 | ) | $ | (2,739 | ) | |||||||||
|
|
|
|
See end of tables for footnotes.
American Funds Insurance Series 161
Table of Contents
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 | $ | — | Unrealized depreciation1 | $ | 746 | |||||||
Swap | Interest | Unrealized appreciation1 | 1,618 | Unrealized depreciation1 | 4,450 | |||||||||
|
|
|
| |||||||||||
$ | 1,618 | $ | 5,196 | |||||||||||
|
|
|
| |||||||||||
Net realized gain | Net unrealized depreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Interest | Net realized gain on futures contracts | $ | 6,233 | Net unrealized depreciation on futures contracts | $ | (2,645 | ) | ||||||
Swap | Interest | Net realized gain on swap | 1,047 | Net unrealized depreciation on swap contracts | (4,026 | ) | ||||||||
|
|
|
| |||||||||||
$ | 7,280 | $ | (6,671 | ) | ||||||||||
|
|
|
|
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 | $ | 687 | Unrealized depreciation1 | $ | 8,635 | |||||||
Swap | Interest | Unrealized appreciation1 | 25,927 | Unrealized depreciation1 | 46,229 | |||||||||
|
|
|
| |||||||||||
$ | 26,614 | $ | 54,864 | |||||||||||
|
|
|
| |||||||||||
Net realized gain (loss) | Net unrealized depreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Interest | Net realized gain on futures contracts | $ | 85,989 | Net unrealized depreciation on futures contracts | $ | (35,398 | ) | ||||||
Swap | Interest | Net realized loss on swap | (7,749 | ) | Net unrealized depreciation on swap contracts | (39,656 | ) | |||||||
|
|
|
| |||||||||||
$ | 78,240 | $ | (75,054 | ) | ||||||||||
|
|
|
|
Managed Risk Growth 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 | $ | — | Unrealized depreciation1 | $ | 61 |
162 American Funds Insurance Series
Table of Contents
Net realized (loss) gain | Net unrealized appreciation (depreciation) | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Currency | Net realized loss on futures contracts | $ | (111 | ) | Net unrealized appreciation on futures contracts | $ | 45 | ||||||
Futures | Equity | Net realized loss on futures contracts | (7,821 | ) | Net unrealized depreciation on futures contracts | (4,022 | ) | |||||||
Futures | Interest | Net realized gain on futures contracts | 2,121 | Net unrealized depreciation on futures contracts | (1,975 | ) | ||||||||
|
|
|
| |||||||||||
$ | (5,811 | ) | $ | (5,952 | ) | |||||||||
|
|
|
|
Managed Risk International Fund
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and | Value | Location on statement of assets and | Value | |||||||||
Futures | Interest | Unrealized appreciation1 | $ | — | Unrealized depreciation1 | $ | 30 | |||||||
Net realized (loss) gain | Net unrealized appreciation (depreciation) | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Currency | Net realized loss on futures contracts | $ | (228 | ) | Net unrealized appreciation on futures contracts | $ | 278 | ||||||
Futures | Equity | Net realized loss on futures contracts | (1,772 | ) | Net unrealized depreciation on futures contracts | (882 | ) | |||||||
Futures | Interest | Net realized gain on futures contracts | 754 | Net unrealized depreciation on futures contracts | (645 | ) | ||||||||
|
|
|
| |||||||||||
$ | (1,246 | ) | $ | (1,249 | ) | |||||||||
|
|
|
|
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 | Interest | Unrealized appreciation1 | $ | — | Unrealized depreciation1 | $ | 52 | |||||||
Net realized (loss) gain | Net unrealized appreciation (depreciation) | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Currency | Net realized loss on futures contracts | $ | (51 | ) | Net unrealized appreciation on futures contracts | $ | 30 | ||||||
Futures | Equity | Net realized loss on futures contracts | (7,602 | ) | Net unrealized depreciation on futures contracts | (3,946 | ) | |||||||
Futures | Interest | Net realized gain on futures contracts | 2,110 | Net unrealized depreciation on futures contracts | (1,917 | ) | ||||||||
|
|
|
| |||||||||||
$ | (5,543 | ) | $ | (5,833 | ) | |||||||||
|
|
|
|
See end of tables for footnotes.
American Funds Insurance Series 163
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 | Equity | Investment securities from unaffiliated issuers2 | $ | 4,322 | Investment securities from unaffiliated issuers2 | $ | — | |||||||
Futures | Equity | Unrealized appreciation1 | 1,045 | Unrealized depreciation1 | — | |||||||||
Futures | Interest | Unrealized appreciation1 | — | Unrealized depreciation1 | 375 | |||||||||
|
|
|
| |||||||||||
$ | 5,367 | $ | 375 | |||||||||||
|
|
|
| |||||||||||
Net realized (loss) gain | Net unrealized (depreciation) appreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Options purchased | Equity | Net realized loss on options purchased contracts3 | $ | (21,805 | ) | Net unrealized depreciation on options purchased contracts4 | $ | (11,132 | ) | |||||
Futures | Currency | Net realized loss on futures contracts | (698 | ) | Net unrealized appreciation on futures contracts | 497 | ||||||||
Futures | Equity | Net realized loss on futures contracts | (15,325 | ) | Net unrealized depreciation on futures contracts | (2,840 | ) | |||||||
Futures | Interest | Net realized gain on futures contracts | 8,388 | Net unrealized depreciation on futures contracts | (7,294 | ) | ||||||||
|
|
|
| |||||||||||
$ | (29,440 | ) | $ | (20,769 | ) | |||||||||
|
|
|
| |||||||||||
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 | Interest | Unrealized appreciation1 | $ | — | Unrealized depreciation1 | $ | 525 | |||||||
Net realized (loss) gain | Net unrealized appreciation (depreciation) | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Currency | Net realized loss on futures contracts | $ | (252 | ) | Net unrealized appreciation on futures contracts | $ | 182 | ||||||
Futures | Equity | Net realized loss on futures contracts | (27,273 | ) | Net unrealized depreciation on futures contracts | (17,157 | ) | |||||||
Futures | Interest | Net realized gain on futures contracts | 9,662 | Net unrealized depreciation on futures contracts | (8,873 | ) | ||||||||
|
|
|
| |||||||||||
$ | (17,863 | ) | $ | (25,848 | ) | |||||||||
|
|
|
|
1 | Includes cumulative appreciation/depreciation on futures contracts, interest rate swaps and/or 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 appreciation (depreciation) on unaffiliated investments. |
164 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 counterparty) 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, 2019, 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: | ||||||||||||||||||||
Barclays Bank PLC | $ | 131 | $ | — | $ | — | $ | — | $ | 131 |
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 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Citibank | $ | 137 | $ | — | $ | — | $ | — | $ | 137 |
International 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 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Bank of America | $ | 11 | $ | — | $ | — | $ | — | $ | 11 |
See end of tables for footnote.
American Funds Insurance Series 165
Table of Contents
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: | ||||||||||||||||||||
Bank of America | $ | 16 | $ | (16 | ) | $ | — | $ | — | $ | — | |||||||||
Bank of New York Mellon | 4 | (1 | ) | — | — | 3 | ||||||||||||||
Citibank | 23 | (23 | ) | — | — | — | ||||||||||||||
Goldman Sachs | 2 | (2 | ) | — | — | — | ||||||||||||||
HSBC Bank | 28 | (28 | ) | — | — | — | ||||||||||||||
JPMorgan Chase | 1 | (1 | ) | — | — | — | ||||||||||||||
Morgan Stanley | 64 | (3 | ) | — | — | 61 | ||||||||||||||
Standard Chartered Bank | 34 | (34 | ) | — | — | — | ||||||||||||||
UBS AG | 1 | (1 | ) | — | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 173 | $ | (109 | ) | $ | — | $ | — | $ | 64 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities: | ||||||||||||||||||||
Bank of America | $ | 53 | $ | (16 | ) | $ | — | $ | — | $ | 37 | |||||||||
Bank of New York Mellon | 1 | (1 | ) | — | — | — | ||||||||||||||
Citibank | 55 | (23 | ) | — | — | 32 | ||||||||||||||
Goldman Sachs | 29 | (2 | ) | — | — | 27 | ||||||||||||||
HSBC Bank | 47 | (28 | ) | — | — | 19 | ||||||||||||||
JPMorgan Chase | 35 | (1 | ) | — | — | 34 | ||||||||||||||
Morgan Stanley | 3 | (3 | ) | — | — | — | ||||||||||||||
Standard Chartered Bank | 48 | (34 | ) | — | — | 14 | ||||||||||||||
UBS AG | 1 | (1 | ) | — | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 272 | $ | (109 | ) | $ | — | $ | — | $ | 163 | |||||||||
|
|
|
|
|
|
|
|
|
|
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 New York Mellon | $ | 35 | $ | — | $ | — | $ | — | $ | 35 | ||||||||||
Citibank | 1,789 | — | — | (1,789 | ) | — | ||||||||||||||
Goldman Sachs | 41 | — | — | — | 41 | |||||||||||||||
JPMorgan Chase | 878 | — | (825 | ) | — | 53 | ||||||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 2,743 | $ | — | $ | (825 | ) | $ | (1,789 | ) | $ | 129 | ||||||||
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|
|
|
|
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|
|
| |||||||||||
Liabilities: | ||||||||||||||||||||
Barclays Bank PLC | $ | 1,226 | $ | — | $ | (1,226 | ) | $ | — | $ | — | |||||||||
HSBC Bank | 1,355 | — | (1,186 | ) | — | 169 | ||||||||||||||
Morgan Stanley | 1,353 | — | (1,156 | ) | — | 197 | ||||||||||||||
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|
|
|
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|
|
| |||||||||||
Total | $ | 3,934 | $ | — | $ | (3,568 | ) | $ | — | $ | 366 | |||||||||
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166 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 | $ | 273 | $ | (273 | ) | $ | — | $ | — | $ | — | |||||||||
Bank of New York Mellon | 56 | — | — | — | 56 | |||||||||||||||
Barclays Bank PLC | 181 | — | — | — | 181 | |||||||||||||||
Citibank | 613 | (613 | ) | — | — | — | ||||||||||||||
Goldman Sachs | 745 | (587 | ) | — | — | 158 | ||||||||||||||
HSBC Bank | 489 | (489 | ) | — | — | — | ||||||||||||||
JPMorgan Chase | 104 | (104 | ) | — | — | — | ||||||||||||||
Morgan Stanley | 959 | (244 | ) | — | (715 | ) | — | |||||||||||||
Standard Chartered Bank | 559 | (559 | ) | — | — | — | ||||||||||||||
UBS AG | 50 | (50 | ) | — | — | — | ||||||||||||||
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| |||||||||||
Total | $ | 4,029 | $ | (2,919 | ) | $ | — | $ | (715 | ) | $ | 395 | ||||||||
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| |||||||||||
Liabilities: | ||||||||||||||||||||
Bank of America | $ | 1,002 | $ | (273 | ) | $ | (729 | ) | $ | — | $ | — | ||||||||
Citibank | 2,019 | (613 | ) | (1,406 | ) | — | — | |||||||||||||
Goldman Sachs | 587 | (587 | ) | — | — | — | ||||||||||||||
HSBC Bank | 931 | (489 | ) | (442 | ) | — | — | |||||||||||||
JPMorgan Chase | 778 | (104 | ) | (548 | ) | — | 126 | |||||||||||||
Morgan Stanley | 244 | (244 | ) | — | — | — | ||||||||||||||
Standard Chartered Bank | 590 | (559 | ) | (31 | ) | — | — | |||||||||||||
UBS AG | 101 | (50 | ) | — | — | 51 | ||||||||||||||
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|
|
|
|
|
|
| |||||||||||
Total | $ | 6,252 | $ | (2,919 | ) | $ | (3,156 | ) | $ | — | $ | 177 | ||||||||
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* | 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, 2019, 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.
American Funds Insurance Series 167
Table of Contents
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.
Additional tax basis disclosures for each fund as of December 31, 2019, 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 | $ | 13,148 | $ | 11,186 | $ | 76,916 | $ | 19,253 | $ | 25,462 | $ | 37,136 | ||||||||||||
Undistributed long-term capital gains | 194,055 | 273,289 | 738,170 | — | 16,027 | 104,256 | ||||||||||||||||||
Capital loss carryforward* | — | — | — | (149,822 | ) | — | — | |||||||||||||||||
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Gross unrealized appreciation on investments | 2,976,734 | 1,338,057 | 12,680,487 | 2,723,168 | 1,025,046 | 2,435,492 | ||||||||||||||||||
Gross unrealized depreciation on investments | (115,480 | ) | (165,363 | ) | (176,640 | ) | (296,533 | ) | (51,959 | ) | (319,251 | ) | ||||||||||||
Net unrealized appreciation on investments | 2,861,254 | 1,172,694 | 12,503,847 | 2,426,635 | 973,087 | 2,116,241 | ||||||||||||||||||
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| |||||||||||||
Cost of investments | 3,973,424 | 3,535,026 | 16,026,368 | 7,663,533 | 2,790,816 | 7,160,691 | ||||||||||||||||||
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| |||||||||||||
Reclassification from (to) total distributable earnings/accumulated loss to (from) capital paid in on shares of beneficial interest | 1 | (1 | ) | — | 1 | 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 | $ | 6,550 | $ | 238,333 | $ | 3,236 | $ | 1,926 | $ | 118,751 | $ | 17 | ||||||||||||
Undistributed long-term capital gains | 51,450 | 820,299 | — | — | 123,690 | 1,437 | ||||||||||||||||||
Capital loss carryforward* | — | — | (35,828 | ) | (19,754 | ) | — | — | ||||||||||||||||
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| |||||||||||||
Gross unrealized appreciation on investments | 657,067 | 11,402,210 | 307,883 | 119,069 | 7,134,453 | 85,707 | ||||||||||||||||||
Gross unrealized depreciation on investments | (21,291 | ) | (751,877 | ) | (44,941 | ) | (23,709 | ) | (431,268 | ) | (4,511 | ) | ||||||||||||
Net unrealized appreciation on investments | 635,776 | 10,650,333 | 262,942 | 95,360 | 6,703,185 | 81,196 | ||||||||||||||||||
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|
|
|
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|
|
|
|
|
|
| |||||||||||||
Cost of investments | 1,502,381 | 25,381,374 | 1,239,616 | 895,754 | 20,858,922 | 354,608 | ||||||||||||||||||
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|
| |||||||||||||
Reclassification from (to) total distributable earnings/accumulated loss to (from) capital paid in on shares of beneficial interest | — | (1 | ) | — | — | — | 12 | |||||||||||||||||
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168 American Funds Insurance Series
Table of Contents
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 | $ | 101,879 | $ | 31,468 | $ | 12,900 | $ | 1,209 | $ | 737 | $ | 33,112 | ||||||||||||
Undistributed long-term capital gains | 42,007 | 8,412 | — | 390 | — | 16,400 | ||||||||||||||||||
Capital loss carryforward* | — | — | (190,113 | ) | — | (1 | ) | — | ||||||||||||||||
Capital loss carryforward utilized | 159,206 | 3,784 | — | 6,175 | — | 52,033 | ||||||||||||||||||
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|
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|
| |||||||||||||
Gross unrealized appreciation on investments | 359,213 | 92,798 | 49,688 | 6,927 | 12 | 78,457 | ||||||||||||||||||
Gross unrealized depreciation on investments | (49,858 | ) | (37,745 | ) | (61,045 | ) | (5,296 | ) | (5 | ) | (60,713 | ) | ||||||||||||
Net unrealized appreciation (depreciation) on investments | 309,355 | 55,053 | (11,357 | ) | 1,631 | 7 | 17,744 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Cost of investments | 10,596,670 | 2,058,371 | 1,258,516 | 274,404 | 284,222 | 2,991,005 | ||||||||||||||||||
|
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|
|
|
|
|
|
|
|
| |||||||||||||
Reclassification from (to) total distributable earnings/accumulated loss to (from) capital paid in on shares of beneficial interest | 1 | — | — | (2 | ) | — | 1 | |||||||||||||||||
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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 | $ | 3,505 | $ | 1,934 | $ | 5,703 | $ | 33,307 | $ | 40,690 | ||||||||||
Undistributed long-term capital gains | 21,766 | 1,312 | 10,865 | 118,369 | 105,973 | |||||||||||||||
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|
|
|
|
|
| |||||||||||
Gross unrealized appreciation on investments | 46,058 | 14,843 | 4,513 | 192,587 | 244,160 | |||||||||||||||
Gross unrealized depreciation on investments | (7,615 | ) | (6,664 | ) | (2,398 | ) | (14,687 | ) | (8,220 | ) | ||||||||||
Net unrealized appreciation on investments | 38,443 | 8,179 | 2,115 | 177,900 | 235,940 | |||||||||||||||
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|
|
|
|
|
|
|
| |||||||||||
Cost of investments | 401,443 | 157,659 | 363,502 | 2,092,631 | 2,597,655 | |||||||||||||||
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|
* | Capital loss carryforwards will be used to offset any capital gains realized by the funds in future years. The funds 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, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 31,022 | $ | 121,251 | $ | 152,273 | $ | 28,611 | $ | 134,884 | $ | 163,495 | ||||||||||||
Class 1A | 82 | 367 | 449 | 47 | 273 | 320 | ||||||||||||||||||
Class 2 | 40,119 | 204,481 | 244,600 | 41,238 | 251,323 | 292,561 | ||||||||||||||||||
Class 4 | 3,204 | 17,408 | 20,612 | 2,414 | 16,024 | 18,438 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 74,427 | $ | 343,507 | $ | 417,934 | $ | 72,310 | $ | 402,504 | $ | 474,814 | ||||||||||||
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See end of tables for footnote.
American Funds Insurance Series 169
Table of Contents
Global Small Capitalization Fund
Year ended December 31, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 28,009 | $ | 97,912 | $ | 125,921 | $ | 21,329 | $ | 55,968 | $ | 77,297 | ||||||||||||
Class 1A | 6 | 23 | 29 | 4 | 12 | 16 | ||||||||||||||||||
Class 2 | 28,406 | 119,280 | 147,686 | 26,294 | 86,037 | 112,331 | ||||||||||||||||||
Class 4 | 1,932 | 9,184 | 11,116 | 1,456 | 5,035 | 6,491 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 58,353 | $ | 226,399 | $ | 284,752 | $ | 49,083 | $ | 147,052 | $ | 196,135 | ||||||||||||
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Growth Fund
Year ended December 31, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 150,838 | $ | 964,757 | $ | 1,115,595 | $ | 88,940 | $ | 792,865 | $ | 881,805 | ||||||||||||
Class 1A | 193 | 1,290 | 1,483 | 76 | 634 | 710 | ||||||||||||||||||
Class 2 | 192,058 | 1,500,212 | 1,692,270 | 117,331 | 1,515,757 | 1,633,088 | ||||||||||||||||||
Class 3 | 2,713 | 20,442 | 23,155 | 1,723 | 20,248 | 21,971 | ||||||||||||||||||
Class 4 | 14,770 | 130,929 | 145,699 | 6,414 | 104,527 | 110,941 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 360,572 | $ | 2,617,630 | $ | 2,978,202 | $ | 214,484 | $ | 2,434,031 | $ | 2,648,515 | ||||||||||||
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International Fund
Year ended December 31, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 85,943 | $ | 130,060 | $ | 216,003 | $ | 174,418 | $ | 165,915 | $ | 340,333 | ||||||||||||
Class 1A | 95 | 141 | 236 | 156 | 140 | 296 | ||||||||||||||||||
Class 2 | 59,246 | 104,778 | 164,024 | 136,977 | 146,986 | 283,963 | ||||||||||||||||||
Class 3 | 354 | 637 | 991 | 887 | 970 | 1,857 | ||||||||||||||||||
Class 4 | 4,496 | 8,870 | 13,366 | 9,465 | 10,556 | 20,021 | ||||||||||||||||||
|
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|
|
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|
|
|
|
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|
| |||||||||||||
Total | $ | 150,134 | $ | 244,486 | $ | 394,620 | $ | 321,903 | $ | 324,567 | $ | 646,470 | ||||||||||||
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|
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|
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New World Fund
Year ended December 31, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 23,315 | $ | 71,500 | $ | 94,815 | $ | 21,450 | $ | 54,023 | $ | 75,473 | ||||||||||||
Class 1A | 39 | 132 | 171 | 24 | 50 | 74 | ||||||||||||||||||
Class 2 | 8,693 | 34,958 | 43,651 | 8,194 | 26,593 | 34,787 | ||||||||||||||||||
Class 4 | 4,452 | 21,103 | 25,555 | 3,419 | 12,659 | 16,078 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 36,499 | $ | 127,693 | $ | 164,192 | $ | 33,087 | $ | 93,325 | $ | 126,412 | ||||||||||||
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170 American Funds Insurance Series
Table of Contents
Blue Chip Income and Growth Fund
Year ended December 31, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 118,657 | $ | 410,713 | $ | 529,370 | $ | 232,769 | $ | 299,947 | $ | 532,716 | ||||||||||||
Class 1A | 163 | 435 | 598 | 120 | 135 | 255 | ||||||||||||||||||
Class 2 | 60,118 | 238,793 | 298,911 | 134,358 | 186,318 | 320,676 | ||||||||||||||||||
Class 4 | 10,646 | 38,700 | 49,346 | 13,348 | 16,620 | 29,968 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 189,584 | $ | 688,641 | $ | 878,225 | $ | 380,595 | $ | 503,020 | $ | 883,615 | ||||||||||||
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Global Growth and Income Fund
Year ended December 31, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 12,475 | $ | 27,971 | $ | 40,446 | $ | 16,289 | $ | 31,541 | $ | 47,830 | ||||||||||||
Class 1A | 33 | 66 | 99 | 28 | 53 | 81 | ||||||||||||||||||
Class 2 | 24,591 | 66,794 | 91,385 | 40,436 | 90,173 | 130,609 | ||||||||||||||||||
Class 4 | 2,298 | 5,970 | 8,268 | 2,682 | 5,789 | 8,471 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 39,397 | $ | 100,801 | $ | 140,198 | $ | 59,435 | $ | 127,556 | $ | 186,991 | ||||||||||||
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Growth-Income Fund
Year ended December 31, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 455,391 | $ | 1,825,184 | $ | 2,280,575 | $ | 341,172 | $ | 1,049,641 | $ | 1,390,813 | ||||||||||||
Class 1A | 206 | 825 | 1,031 | 124 | 344 | 468 | ||||||||||||||||||
Class 2 | 272,097 | 1,260,360 | 1,532,457 | 241,470 | 886,942 | 1,128,412 | ||||||||||||||||||
Class 3 | 3,204 | 14,500 | 17,704 | 2,907 | 10,337 | 13,244 | ||||||||||||||||||
Class 4 | 21,474 | 103,934 | 125,408 | 15,471 | 58,501 | 73,972 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 752,372 | $ | 3,204,803 | $ | 3,957,175 | $ | 601,144 | $ | 2,005,765 | $ | 2,606,909 | ||||||||||||
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International Growth and Income Fund
Year ended December 31, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 41,626 | $ | — | $ | 41,626 | $ | 28,476 | $ | — | $ | 28,476 | ||||||||||||
Class 1A | 84 | — | 84 | 44 | — | 44 | ||||||||||||||||||
Class 2 | 8,726 | — | 8,726 | 5,865 | — | 5,865 | ||||||||||||||||||
Class 4 | 3,112 | — | 3,112 | 1,597 | — | 1,597 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 53,548 | $ | — | $ | 53,548 | $ | 35,982 | $ | — | $ | 35,982 | ||||||||||||
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|
See end of tables for footnote.
American Funds Insurance Series 171
Table of Contents
Capital Income Builder
Year ended December 31, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 13,476 | $ | — | $ | 13,476 | $ | 9,421 | $ | 617 | $ | 10,038 | ||||||||||||
Class 1A | 126 | — | 126 | 66 | 3 | 69 | ||||||||||||||||||
Class 2 | 137 | — | 137 | 90 | 6 | 96 | ||||||||||||||||||
Class 4 | 10,875 | — | 10,875 | 9,550 | 762 | 10,312 | ||||||||||||||||||
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|
|
|
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|
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|
| |||||||||||||
Total | $ | 24,614 | $ | — | $ | 24,614 | $ | 19,127 | $ | 1,388 | $ | 20,515 | ||||||||||||
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Asset Allocation Fund
Year ended December 31, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 356,589 | $ | 816,841 | $ | 1,173,430 | $ | 386,982 | $ | 666,856 | $ | 1,053,838 | ||||||||||||
Class 1A | 189 | 416 | 605 | 147 | 263 | 410 | ||||||||||||||||||
Class 2 | 94,178 | 253,101 | 347,279 | 103,332 | 210,133 | 313,465 | ||||||||||||||||||
Class 3 | 608 | 1,581 | 2,189 | 686 | 1,413 | 2,099 | ||||||||||||||||||
Class 4 | 71,682 | 206,152 | 277,834 | 69,096 | 148,867 | 217,963 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 523,246 | $ | 1,278,091 | $ | 1,801,337 | $ | 560,243 | $ | 1,027,532 | $ | 1,587,775 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Global Balanced Fund
Year ended December 31, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 1,912 | $ | 3,479 | $ | 5,391 | $ | 1,808 | $ | 1,346 | $ | 3,154 | ||||||||||||
Class 1A | 28 | 61 | 89 | 30 | 25 | 55 | ||||||||||||||||||
Class 2 | 2,521 | 5,487 | 8,008 | 2,555 | 2,290 | 4,845 | ||||||||||||||||||
Class 4 | 954 | 2,492 | 3,446 | 804 | 842 | 1,646 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 5,415 | $ | 11,519 | $ | 16,934 | $ | 5,197 | $ | 4,503 | $ | 9,700 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Bond Fund
Year ended December 31, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 177,855 | $ | — | $ | 177,855 | $ | 156,337 | $ | 8,915 | $ | 165,252 | ||||||||||||
Class 1A | 165 | — | 165 | 76 | 4 | 80 | ||||||||||||||||||
Class 2 | 90,796 | — | 90,796 | 88,266 | 5,217 | 93,483 | ||||||||||||||||||
Class 4 | 11,384 | — | 11,384 | 8,153 | 453 | 8,606 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 280,200 | $ | — | $ | 280,200 | $ | 252,832 | $ | 14,589 | $ | 267,421 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Global Bond Fund
Year ended December 31, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 19,173 | $ | — | $ | 19,173 | $ | 25,210 | $ | 3,256 | $ | 28,466 | ||||||||||||
Class 1A | 7 | — | 7 | 9 | 1 | 10 | ||||||||||||||||||
Class 2 | 15,927 | — | 15,927 | 23,308 | 3,412 | 26,720 | ||||||||||||||||||
Class 4 | 649 | — | 649 | 816 | 118 | 934 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 35,756 | $ | — | $ | 35,756 | $ | 49,343 | $ | 6,787 | $ | 56,130 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
172 American Funds Insurance Series
Table of Contents
High-Income Bond Fund
Year ended December 31, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 33,304 | $ | — | $ | 33,304 | $ | 34,114 | $ | — | $ | 34,114 | ||||||||||||
Class 1A | 45 | — | 45 | 40 | — | 40 | ||||||||||||||||||
Class 2 | 41,753 | — | 41,753 | 43,382 | — | 43,382 | ||||||||||||||||||
Class 3 | 611 | — | 611 | 664 | — | 664 | ||||||||||||||||||
Class 4 | 3,353 | — | 3,353 | 1,733 | — | 1,733 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 79,066 | $ | — | $ | 79,066 | $ | 79,933 | $ | — | $ | 79,933 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Fund
Year ended December 31, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 5,573 | $ | — | $ | 5,573 | $ | 4,938 | $ | — | $ | 4,938 | ||||||||||||
Class 1A | 12 | — | 12 | 15 | — | 15 | ||||||||||||||||||
Class 2 | 1,355 | — | 1,355 | 1,128 | — | 1,128 | ||||||||||||||||||
Class 4 | 585 | — | 585 | 424 | — | 424 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 7,525 | $ | — | $ | 7,525 | $ | 6,505 | $ | — | $ | 6,505 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Ultra-Short Bond Fund
Year ended December 31, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 604 | $ | — | $ | 604 | $ | 561 | $ | — | $ | 561 | ||||||||||||
Class 1A | — | * | — | — | * | — | — | — | ||||||||||||||||
Class 2 | 4,088 | — | 4,088 | 2,762 | — | 2,762 | ||||||||||||||||||
Class 3 | 59 | — | 59 | 41 | — | 41 | ||||||||||||||||||
Class 4 | 342 | — | 342 | 153 | — | 153 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 5,093 | $ | — | $ | 5,093 | $ | 3,517 | $ | — | $ | 3,517 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
U.S.Government/AAA-Rated Securities Fund
Year ended December 31, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class 1 | $ | 31,700 | $ | — | $ | 31,700 | $ | 29,881 | $ | — | $ | 29,881 | ||||||||||||
Class 1A | 50 | — | 50 | 29 | — | 29 | ||||||||||||||||||
Class 2 | 26,790 | — | 26,790 | 24,431 | — | 24,431 | ||||||||||||||||||
Class 3 | 180 | — | 180 | 165 | — | 165 | ||||||||||||||||||
Class 4 | 2,241 | — | 2,241 | 1,313 | — | 1,313 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 60,961 | $ | — | $ | 60,961 | $ | 55,819 | $ | — | $ | 55,819 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
See end of tables for footnote.
American Funds Insurance Series 173
Table of Contents
Managed Risk Growth Fund
Year ended December 31, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class P1 | $ | 61 | $ | 256 | $ | 317 | $ | 14 | $ | 135 | $ | 149 | ||||||||||||
Class P2 | 3,581 | 26,324 | 29,905 | 1,397 | 20,395 | 21,792 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 3,642 | $ | 26,580 | $ | 30,222 | $ | 1,411 | $ | 20,530 | $ | 21,941 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Managed Risk International Fund
Year ended December 31, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class P1 | $ | 11 | $ | 16 | $ | 27 | $ | 8 | $ | 1 | $ | 9 | ||||||||||||
Class P2 | 2,974 | 4,795 | 7,769 | 2,681 | 738 | 3,419 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 2,985 | $ | 4,811 | $ | 7,796 | $ | 2,689 | $ | 739 | $ | 3,428 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Managed Risk Blue Chip Income and Growth Fund
Year ended December 31, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class P1 | $ | 13 | $ | 40 | $ | 53 | $ | 15 | $ | 7 | $ | 22 | ||||||||||||
Class P2 | 5,566 | 17,796 | 23,362 | 11,391 | 12,112 | 23,503 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 5,579 | $ | 17,836 | $ | 23,415 | $ | 11,406 | $ | 12,119 | $ | 23,525 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Managed Risk Growth-Income Fund
Year ended December 31, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class P1 | $ | 14,564 | $ | 14,505 | $ | 29,069 | $ | 42 | $ | 122 | $ | 164 | ||||||||||||
Class P2 | 1,352 | 2,019 | 3,371 | 2,374 | 9,814 | 12,188 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 15,916 | $ | 16,524 | $ | 32,440 | $ | 2,416 | $ | 9,936 | $ | 12,352 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Managed Risk Asset Allocation Fund
Year ended December 31, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class P1 | $ | 5 | $ | 65 | $ | 70 | $ | 31,787 | $ | 66,960 | $ | 98,747 | ||||||||||||
Class P2 | 62,691 | 115,050 | 177,741 | 36,816 | 107,405 | 144,221 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 62,696 | $ | 115,115 | $ | 177,811 | $ | 68,603 | $ | 174,365 | $ | 242,968 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
* | Amount less than one thousand. |
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.
174 American Funds Insurance Series
Table of Contents
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 March 4, 2019, the series board of trustees approved amended agreements effective May 1, 2019, decreasing the annual rate to 0.500% on daily net assets in excess of $1.5 billion for International Growth and Income Fund, and decreasing the annual rate to 0.410% on daily net assets in excess of $1 billion for Capital Income Builder. CRMC voluntarily reduced the investment advisory services fees to the approved rates in advance of the effective date. 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, 2019, total investment advisory services fees waived by CRMC were $2,880,000.
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 year ended December 31, 2019, | For the year ended December 31, 2019, | |||||||||||||||||||||
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 | .322 | .322 | ||||||||||||||||||
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 | .390 | .390 | ||||||||||||||||||
Global Growth and Income Fund | .690 | .480 | .6 | 3.0 | .595 | .595 | ||||||||||||||||||
Growth-Income Fund | .500 | .219 | .6 | 34.0 | .256 | .256 | ||||||||||||||||||
International Growth and Income Fund | .690 | .500 | .5 | 1.5 | .608 | .608 | ||||||||||||||||||
Capital Income Builder | .500 | .410 | .6 | 1.0 | .489 | .486 | ||||||||||||||||||
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 | .364 | .364 | ||||||||||||||||||
Global Bond Fund | .570 | .450 | 1.0 | 3.0 | .533 | .533 | ||||||||||||||||||
High-Income Bond Fund | .500 | .420 | .6 | 2.0 | .475 | .475 | ||||||||||||||||||
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 | .340 | .340 | ||||||||||||||||||
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 |
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 |
American Funds Insurance Series 175
Table of Contents
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 and its affiliates 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 investments. Administrative services also include, but are not limited to, coordinating, monitoring and overseeing third parties that provide services to fund shareholders. The agreement provides each fund, other than the managed risk funds, the ability to charge an administrative services fee at the annual rate of 0.05% of daily net assets attributable to each share class. Prior to July 1, 2019, all share classes of each fund, other than the managed-risk funds, paid CRMC an administrative services fee at the annual rate of 0.01% of daily net assets. The series board of trustees authorized the funds, other than the managed risk funds, to pay CRMC effective July 1, 2019, an administrative services fee at the annual rate of 0.03% of the daily net assets of each share class for CRMC’s provision of administrative services. For the managed risk funds, CRMC receives administrative services fees at an annual rate of 0.03% of 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 | $ | 458 | ||||||||
Class 1A | $ | — | $ | 17 | 2 | |||||||
Class 2 | 9,198 | Not applicable | 742 | |||||||||
Class 4 | 793 | 793 | 66 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 9,991 | $ | 810 | $ | 1,268 | ||||||
|
|
|
|
|
|
Growth Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 1,999 | ||||||||
Class 1A | $ | — | $ | 35 | 3 | |||||||
Class 2 | 37,459 | Not applicable | 3,017 | |||||||||
Class 3 | 369 | Not applicable | 41 | |||||||||
Class 4 | 3,263 | 3,263 | 269 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 41,091 | $ | 3,298 | $ | 5,329 | ||||||
|
|
|
|
|
|
Global Small Capitalization Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 382 | ||||||||
Class 1A | $ | — | $ | 1 | — | * | ||||||
Class 2 | 5,652 | Not applicable | 454 | |||||||||
Class 4 | 444 | 444 | 37 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 6,096 | $ | 445 | $ | 873 | ||||||
|
|
|
|
|
|
International Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 1,031 | ||||||||
Class 1A | $ | — | $ | 15 | 1 | |||||||
Class 2 | 10,335 | Not applicable | 830 | |||||||||
Class 3 | 45 | Not applicable | 5 | |||||||||
Class 4 | 852 | 852 | 70 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 11,232 | $ | 867 | $ | 1,937 | ||||||
|
|
|
|
|
|
176 American Funds Insurance Series
Table of Contents
New World Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 386 | ||||||||
Class 1A | $ | — | $ | 9 | 1 | |||||||
Class 2 | 2,312 | Not applicable | 187 | |||||||||
Class 4 | 1,396 | 1,396 | 115 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 3,708 | $ | 1,405 | $ | 689 | ||||||
|
|
|
|
|
|
Global Growth and Income Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 115 | ||||||||
Class 1A | $ | — | $ | 4 | 1 | |||||||
Class 2 | 3,318 | Not applicable | 267 | |||||||||
Class 4 | 300 | 300 | 25 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 3,618 | $ | 304 | $ | 408 | ||||||
|
|
|
|
|
|
International Growth and Income Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 217 | ||||||||
Class 1A | $ | — | $ | 5 | — | * | ||||||
Class 2 | 608 | Not applicable | 49 | |||||||||
Class 4 | 213 | 213 | 18 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 821 | $ | 218 | $ | 284 | ||||||
|
|
|
|
|
|
Asset Allocation Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 3,332 | ||||||||
Class 1A | $ | — | $ | 22 | 2 | |||||||
Class 2 | 12,426 | Not applicable | 1,002 | |||||||||
Class 3 | 57 | Not applicable | 6 | |||||||||
Class 4 | 10,148 | 10,148 | 831 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 22,631 | $ | 10,170 | $ | 5,173 | ||||||
|
|
|
|
|
|
Blue Chip Income and Growth Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 1,058 | ||||||||
Class 1A | $ | — | $ | 16 | 1 | |||||||
Class 2 | 7,507 | Not applicable | 601 | |||||||||
Class 4 | 1,239 | 1,239 | 105 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 8,746 | $ | 1,255 | $ | 1,765 | ||||||
|
|
|
|
|
|
Growth-Income Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 3,919 | ||||||||
Class 1A | $ | — | $ | 22 | 2 | |||||||
Class 2 | 32,591 | Not applicable | 2,624 | |||||||||
Class 3 | 273 | Not applicable | 30 | |||||||||
Class 4 | 2,685 | 2,685 | 221 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 35,549 | $ | 2,707 | $ | 6,796 | ||||||
|
|
|
|
|
|
Capital Income Builder
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 89 | ||||||||
Class 1A | $ | — | $ | 11 | 1 | |||||||
Class 2 | 12 | Not applicable | 1 | |||||||||
Class 4 | 1,014 | 1,014 | 83 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 1,026 | $ | 1,025 | $ | 174 | ||||||
|
|
|
|
|
|
Global Balanced Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 26 | ||||||||
Class 1A | $ | — | $ | 5 | — | * | ||||||
Class 2 | 495 | Not applicable | 40 | |||||||||
Class 4 | 205 | 206 | 17 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 700 | $ | 211 | $ | 83 | ||||||
|
|
|
|
|
|
See end of tables for footnote.
American Funds Insurance Series 177
Table of Contents
Bond Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 1,277 | ||||||||
Class 1A | $ | — | $ | 12 | 1 | |||||||
Class 2 | 8,877 | Not applicable | 715 | |||||||||
Class 4 | 1,073 | 1,072 | 90 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 9,950 | $ | 1,084 | $ | 2,083 | ||||||
|
|
|
|
|
|
High-Income Bond Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 104 | ||||||||
Class 1A | $ | — | $ | 2 | — | * | ||||||
Class 2 | 1,696 | Not applicable | 135 | |||||||||
Class 3 | 18 | Not applicable | 2 | |||||||||
Class 4 | 141 | 141 | 12 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 1,855 | $ | 143 | $ | 253 | ||||||
|
|
|
|
|
|
Ultra-Short Bond Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 6 | ||||||||
Class 1A | $ | — | $ | — | * | — | * | |||||
Class 2 | 583 | Not applicable | 47 | |||||||||
Class 3 | 6 | Not applicable | 1 | |||||||||
Class 4 | 51 | 51 | 4 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 640 | $ | 51 | $ | 58 | ||||||
|
|
|
|
|
|
Managed Risk Growth Fund
Share class | Distribution services | Insurance administrative services | ||||||
Class P1 | Not applicable | $ | 10 | |||||
Class P2 | $ | 974 | 974 | |||||
|
|
|
| |||||
Total class-specific expenses | $ | 974 | $ | 984 | ||||
|
|
|
|
Managed Risk Blue Chip Income and Growth Fund
Share class | Distribution services | Insurance administrative services | ||||||
Class P1 | Not applicable | $ | 1 | |||||
Class P2 | $ | 877 | 877 | |||||
|
|
|
| |||||
Total class-specific expenses | $ | 877 | $ | 878 | ||||
|
|
|
|
Global Bond Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 212 | ||||||||
Class 1A | $ | — | $ | 1 | — | * | ||||||
Class 2 | 2,549 | Not applicable | 204 | |||||||||
Class 4 | 113 | 113 | 10 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 2,662 | $ | 114 | $ | 426 | ||||||
|
|
|
|
|
|
Mortgage Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 42 | ||||||||
Class 1A | $ | — | $ | 1 | — | * | ||||||
Class 2 | 143 | Not applicable | 12 | |||||||||
Class 4 | 59 | 59 | 5 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 202 | $ | 60 | $ | 59 | ||||||
|
|
|
|
|
|
U.S.Government/AAA-Rated Securities Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 288 | ||||||||
Class 1A | $ | — | $ | 5 | — | * | ||||||
Class 2 | 3,325 | Not applicable | 269 | |||||||||
Class 3 | 16 | Not applicable | 2 | |||||||||
Class 4 | 270 | 271 | 23 | |||||||||
|
|
|
|
|
| |||||||
Total class-specific expenses | $ | 3,611 | $ | 276 | $ | 582 | ||||||
|
|
|
|
|
|
Managed Risk International Fund
Share class | Distribution services | Insurance administrative services | ||||||
Class P1 | Not applicable | $ | 1 | |||||
Class P2 | $ | 398 | 398 | |||||
|
|
|
| |||||
Total class-specific expenses | $ | 398 | $ | 399 | ||||
|
|
|
|
Managed Risk Growth-Income Fund
Share class | Distribution services | Insurance administrative services | ||||||
Class P1 | Not applicable | $ | 4,623 | |||||
Class P2 | $ | 647 | 647 | |||||
|
|
|
| |||||
Total class-specific expenses | $ | 647 | $ | 5,270 | ||||
|
|
|
|
178 American Funds Insurance Series
Table of Contents
Managed Risk Asset Allocation Fund
Share class | Distribution services | Insurance administrative services | ||||||
Class P1 | Not applicable | $ | 5 | |||||
Class P2 | $ | 6,739 | 6,739 | |||||
|
|
|
| |||||
Total class-specific expenses | $ | 6,739 | $ | 6,744 | ||||
|
|
|
|
* | Amount less than one thousand. |
Miscellaneous fee reimbursements — CRMC has agreed to reimburse a portion of miscellaneous fees and expenses of Managed Risk Growth Fund, Managed Risk International Fund and Managed Risk Blue Chip Income and Growth Fund. Miscellaneous expenses exclude investment advisory services and distribution services fees. These reimbursements may be adjusted or discontinued by CRMC, subject to any restrictions in the series’ prospectus. For the year ended December 31, 2019, total fees and expenses reimbursed by CRMC were $74,000. Fees and expenses in each fund’s statement of operations are presented gross of any reimbursements from CRMC.
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 | $ | 31 | $ | 11 | $ | 42 | ||||||
Global Small Capitalization Fund | 21 | 7 | 28 | |||||||||
Growth Fund | 130 | 45 | 175 | |||||||||
International Fund | 48 | 16 | 64 | |||||||||
New World Fund | 17 | 6 | 23 | |||||||||
Blue Chip Income and Growth Fund | 44 | 15 | 59 | |||||||||
Global Growth and Income Fund | 10 | 3 | 13 | |||||||||
Growth-Income Fund | 164 | 57 | 221 | |||||||||
International Growth and Income Fund | 7 | 2 | 9 | |||||||||
Capital Income Builder | 4 | 2 | 6 | |||||||||
Asset Allocation Fund | 127 | 43 | 170 | |||||||||
Global Balanced Fund | 2 | 1 | 3 | |||||||||
Bond Fund | 51 | 17 | 68 | |||||||||
Global Bond Fund | 11 | 3 | 14 | |||||||||
High-Income Bond Fund | 6 | 2 | 8 | |||||||||
Mortgage Fund | 1 | 1 | 2 | |||||||||
Ultra-Short Bond Fund | 1 | — | * | 1 | ||||||||
U.S.Government/AAA-Rated Securities Fund | 15 | 5 | 20 | |||||||||
Managed Risk Growth Fund | 1 | 1 | 2 | |||||||||
Managed Risk International Fund | 1 | — | * | 1 | ||||||||
Managed Risk Blue Chip Income and Growth Fund | 1 | 1 | 2 | |||||||||
Managed Risk Growth-Income Fund | 8 | 4 | 12 | |||||||||
Managed Risk Asset Allocation Fund | 16 | 5 | 21 |
* | 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.
Investment in CCF — Some of the funds hold shares of CCF, an institutional prime money market fund managed by CRMC. CCF invests in high-quality, short-term money market instruments. CCF is used as the primary investment vehicle for each fund’s short-term investments. CCF shares are only available for purchase by CRMC, its affiliates, and other funds managed by CRMC. CCF shares are not available to the public. CRMC does not receive an investment advisory services fee from CCF.
American Funds Insurance Series 179
Table of Contents
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.
The following table presents purchase and sale transactions between each fund and related funds as of December 31, 2019 (dollars in thousands):
Fund | Purchases | Sales | Net realized gain (loss) | |||||||||
Global Growth Fund | $ | 24,083 | $ | 81,665 | $ | 14,006 | ||||||
Global Small Capitalization Fund | 36,878 | 122,208 | 33,693 | |||||||||
Growth Fund | 268,036 | 905,939 | 9,860 | |||||||||
International Fund | 81,543 | 407,486 | 47,090 | |||||||||
New World Fund | 13,140 | 16,223 | 457 | |||||||||
Blue Chip Income and Growth Fund | 99,516 | 104,771 | 10,930 | |||||||||
Global Growth and Income Fund | 14,247 | 26,182 | 572 | |||||||||
Growth-Income Fund | 200,557 | 806,347 | (8,638 | ) | ||||||||
International Growth and Income Fund | 10,521 | 12,522 | (737 | ) | ||||||||
Capital Income Builder | 27,947 | 2,175 | (137 | ) | ||||||||
Asset Allocation Fund | 404,052 | 977,305 | (21,921 | ) | ||||||||
Global Balanced Fund | 1,871 | 906 | (25 | ) | ||||||||
Bond Fund | 51,636 | 102,897 | (719 | ) | ||||||||
Global Bond Fund | 4,273 | 1,394 | (2 | ) | ||||||||
High-Income Bond Fund | 4,365 | 9,431 | (2,079 | ) |
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, 2019.
9. Capital share transactions
Capital share transactions in the funds were as follows (dollars and shares in thousands):
Global Growth Fund
Sales* | Reinvestments of distributions | Repurchases* | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 230,089 | 7,777 | $ | 152,273 | 5,192 | $ | (333,318 | ) | (11,180 | ) | $ | 49,044 | 1,789 | ||||||||||||||||||
Class 1A | 1,744 | 62 | 449 | 15 | (572 | ) | (19 | ) | 1,621 | 58 | ||||||||||||||||||||||
Class 2 | 44,842 | 1,552 | 244,600 | 8,453 | (555,704 | ) | (18,803 | ) | (266,262 | ) | (8,798 | ) | ||||||||||||||||||||
Class 4 | 70,615 | 2,415 | 20,612 | 716 | (29,399 | ) | (1,009 | ) | 61,828 | 2,122 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 347,290 | 11,806 | $ | 417,934 | 14,376 | $ | (918,993 | ) | (31,011 | ) | $ | (153,769 | ) | (4,829 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
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 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
180 American Funds Insurance Series
Table of Contents
Global Small Capitalization Fund
Sales* | Reinvestments of distributions | Repurchases* | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 337,817 | 13,612 | $ | 125,498 | 5,216 | $ | (226,381 | ) | (9,119 | ) | $ | 236,934 | 9,709 | ||||||||||||||||||
Class 1A | 196 | 8 | 28 | 2 | (96 | ) | (4 | ) | 128 | 6 | ||||||||||||||||||||||
Class 2 | 21,553 | 917 | 147,687 | 6,340 | (327,909 | ) | (13,596 | ) | (158,669 | ) | (6,339 | ) | ||||||||||||||||||||
Class 4 | 35,449 | 1,468 | 11,115 | 475 | (22,005 | ) | (911 | ) | 24,559 | 1,032 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 395,015 | 16,005 | $ | 284,328 | 12,033 | $ | (576,391 | ) | (23,630 | ) | $ | 102,952 | 4,408 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
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 | ) | ||||||||||||||||
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Growth Fund |
| |||||||||||||||||||||||||||||||
Sales* | Reinvestments of distributions | Repurchases* | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 896,700 | 11,839 | $ | 1,112,851 | 15,532 | $ | (1,155,174 | ) | (15,026 | ) | $ | 854,377 | 12,345 | ||||||||||||||||||
Class 1A | 6,106 | 81 | 1,482 | 21 | (1,574 | ) | (20 | ) | 6,014 | 82 | ||||||||||||||||||||||
Class 2 | 294,401 | 3,907 | 1,692,272 | 23,866 | (2,108,133 | ) | (27,828 | ) | (121,460 | ) | (55 | ) | ||||||||||||||||||||
Class 3 | 1,763 | 23 | 23,154 | 321 | (29,706 | ) | (390 | ) | (4,789 | ) | (46 | ) | ||||||||||||||||||||
Class 4 | 227,023 | 3,055 | 145,699 | 2,087 | (131,942 | ) | (1,767 | ) | 240,780 | 3,375 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 1,425,993 | 18,905 | $ | 2,975,458 | 41,827 | $ | (3,426,529 | ) | (45,031 | ) | $ | 974,922 | 15,701 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
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 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 2,152,490 | 27,343 | $ | 2,645,947 | 33,920 | $ | (3,727,328 | ) | (46,898 | ) | $ | 1,071,109 | 14,365 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See end of tables for footnotes.
American Funds Insurance Series 181
Table of Contents
International Fund
Sales* | Reinvestments of distributions | Repurchases* | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 171,233 | 8,812 | $ | 215,640 | 10,988 | $ | (699,395 | ) | (35,642 | ) | $ | (312,522 | ) | (15,842 | ) | ||||||||||||||||
Class 1A | 2,060 | 106 | 236 | 12 | (1,174 | ) | (59 | ) | 1,122 | 59 | ||||||||||||||||||||||
Class 2 | 175,514 | 9,064 | 164,024 | 8,407 | (591,706 | ) | (30,261 | ) | (252,168 | ) | (12,790 | ) | ||||||||||||||||||||
Class 3 | 238 | 13 | 991 | 50 | (4,348 | ) | (224 | ) | (3,119 | ) | (161 | ) | ||||||||||||||||||||
Class 4 | 60,129 | 3,112 | 13,366 | 694 | (43,609 | ) | (2,263 | ) | 29,886 | 1,543 | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 409,174 | 21,107 | $ | 394,257 | 20,151 | $ | (1,340,232 | ) | (68,449 | ) | $ | (536,801 | ) | (27,191 | ) | ||||||||||||||||
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|
|
|
|
|
|
|
|
|
| |||||||||||||||||
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 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
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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|
|
|
|
New World Fund
Sales* | Reinvestments of distributions | Repurchases* | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 149,338 | 6,057 | $ | 94,601 | 3,981 | $ | (207,841 | ) | (8,743 | ) | $ | 36,098 | 1,295 | ||||||||||||||||||
Class 1A | 1,685 | 70 | 171 | 7 | (408 | ) | (17 | ) | 1,448 | 60 | ||||||||||||||||||||||
Class 2 | 68,793 | 2,911 | 43,651 | 1,861 | (165,106 | ) | (6,991 | ) | (52,662 | ) | (2,219 | ) | ||||||||||||||||||||
Class 4 | 83,946 | 3,576 | 25,555 | 1,096 | (39,744 | ) | (1,687 | ) | 69,757 | 2,985 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 303,762 | 12,614 | $ | 163,978 | 6,945 | $ | (413,099 | ) | (17,438 | ) | $ | 54,641 | 2,121 | ||||||||||||||||||
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| |||||||||||||||||
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 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 383,048 | 15,931 | $ | 126,221 | 5,272 | $ | (416,696 | ) | (17,281 | ) | $ | 92,573 | 3,922 | ||||||||||||||||||
|
|
|
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|
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|
|
|
|
|
|
|
|
Blue Chip Income and Growth Fund
Sales* | Reinvestments of distributions | Repurchases* | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 213,624 | 16,737 | $ | 525,212 | 41,913 | $ | (484,978 | ) | (37,271 | ) | $ | 253,858 | 21,379 | ||||||||||||||||||
Class 1A | 5,177 | 403 | 598 | 47 | (451 | ) | (35 | ) | 5,324 | 415 | ||||||||||||||||||||||
Class 2 | 28,815 | 2,244 | 298,911 | 24,211 | (366,595 | ) | (28,328 | ) | (38,869 | ) | (1,873 | ) | ||||||||||||||||||||
Class 4 | 198,327 | 15,485 | 49,345 | 4,013 | (38,161 | ) | (2,979 | ) | 209,511 | 16,519 | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 445,943 | 34,869 | $ | 874,066 | 70,184 | $ | (890,185 | ) | (68,613 | ) | $ | 429,824 | 36,440 | ||||||||||||||||||
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|
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|
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|
|
| |||||||||||||||||
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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182 American Funds Insurance Series
Table of Contents
Global Growth and Income Fund
Sales* | Reinvestments of distributions | Repurchases* | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 43,801 | 2,986 | $ | 38,762 | 2,639 | $ | (61,157 | ) | (4,174 | ) | $ | 21,406 | 1,451 | ||||||||||||||||||
Class 1A | 809 | 55 | 100 | 7 | (205 | ) | (14 | ) | 704 | 48 | ||||||||||||||||||||||
Class 2 | 15,277 | 1,057 | 91,385 | 6,251 | (232,647 | ) | (15,758 | ) | (125,985 | ) | (8,450 | ) | ||||||||||||||||||||
Class 4 | 34,845 | 2,405 | 8,268 | 574 | (16,175 | ) | (1,116 | ) | 26,938 | 1,863 | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 94,732 | 6,503 | $ | 138,515 | 9,471 | $ | (310,184 | ) | (21,062 | ) | $ | (76,937 | ) | (5,088 | ) | ||||||||||||||||
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| |||||||||||||||||
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 | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 176,812 | 11,821 | $ | 184,722 | 12,597 | $ | (271,314 | ) | (17,836 | ) | $ | 90,220 | 6,582 | ||||||||||||||||||
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|
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|
|
Growth-Income Fund
Sales* | Reinvestments of distributions | Repurchases* | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 1,061,581 | 21,810 | $ | 2,276,758 | 48,690 | $ | (1,229,398 | ) | (25,018 | ) | $ | 2,108,941 | 45,482 | ||||||||||||||||||
Class 1A | 3,121 | 63 | 1,031 | 22 | (929 | ) | (19 | ) | 3,223 | 66 | ||||||||||||||||||||||
Class 2 | 173,237 | 3,593 | 1,532,457 | 33,240 | (1,626,668 | ) | (33,632 | ) | 79,026 | 3,201 | ||||||||||||||||||||||
Class 3 | 2,080 | 42 | 17,705 | 379 | (21,190 | ) | (431 | ) | (1,405 | ) | (10 | ) | ||||||||||||||||||||
Class 4 | 180,857 | 3,787 | 125,407 | 2,752 | (103,759 | ) | (2,175 | ) | 202,505 | 4,364 | ||||||||||||||||||||||
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|
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|
| |||||||||||||||||
Total net increase (decrease) | $ | 1,420,876 | 29,295 | $ | 3,953,358 | 85,083 | $ | (2,981,944 | ) | (61,275 | ) | $ | 2,392,290 | 53,103 | ||||||||||||||||||
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| |||||||||||||||||
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 | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
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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|
See end of tables for footnotes.
American Funds Insurance Series 183
Table of Contents
International Growth and Income Fund
Sales* | Reinvestments of distributions | Repurchases* | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 9,331 | 555 | $ | 41,626 | 2,406 | $ | (130,370 | ) | (7,620 | ) | $ | (79,413 | ) | (4,659 | ) | ||||||||||||||||
Class 1A | 364 | 22 | 83 | 5 | (75 | ) | (4 | ) | 372 | 23 | ||||||||||||||||||||||
Class 2 | 14,448 | 831 | 8,726 | 507 | (37,612 | ) | (2,202 | ) | (14,438 | ) | (864 | ) | ||||||||||||||||||||
Class 4 | 20,154 | 1,195 | 3,113 | 182 | (7,857 | ) | (466 | ) | 15,410 | 911 | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 44,297 | 2,603 | $ | 53,548 | 3,100 | $ | (175,914 | ) | (10,292 | ) | $ | (78,069 | ) | (4,589 | ) | ||||||||||||||||
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| |||||||||||||||||
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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|
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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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|
Capital Income Builder
Sales* | Reinvestments of distributions | Repurchases* | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 160,592 | 15,806 | $ | 13,476 | 1,322 | $ | (12,510 | ) | (1,240 | ) | $ | 161,558 | 15,888 | ||||||||||||||||||
Class 1A | 2,709 | 268 | 126 | 12 | (345 | ) | (34 | ) | 2,490 | 246 | ||||||||||||||||||||||
Class 2 | 1,661 | 165 | 137 | 13 | (567 | ) | (56 | ) | 1,231 | 122 | ||||||||||||||||||||||
Class 4 | 66,462 | 6,575 | 10,875 | 1,070 | (29,407 | ) | (2,903 | ) | 47,930 | 4,742 | ||||||||||||||||||||||
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|
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 231,424 | 22,814 | $ | 24,614 | 2,417 | $ | (42,829 | ) | (4,233 | ) | $ | 213,209 | 20,998 | ||||||||||||||||||
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| |||||||||||||||||
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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|
|
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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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|
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|
|
Asset Allocation Fund
Sales* | Reinvestments of distributions | Repurchases* | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2019 |
| |||||||||||||||||||||||||||||||
Class 1 | $ | 1,081,611 | 47,062 | $ | 1,173,430 | 52,076 | $ | (1,121,605 | ) | (48,857 | ) | $ | 1,133,436 | 50,281 | ||||||||||||||||||
Class 1A | 2,765 | 122 | 605 | 27 | (689 | ) | (30 | ) | 2,681 | 119 | ||||||||||||||||||||||
Class 2 | 111,154 | 4,871 | 347,279 | 15,613 | (575,603 | ) | (25,266 | ) | (117,170 | ) | (4,782 | ) | ||||||||||||||||||||
Class 3 | 991 | 43 | 2,189 | 97 | (4,150 | ) | (180 | ) | (970 | ) | (40 | ) | ||||||||||||||||||||
Class 4 | 356,681 | 15,732 | 277,834 | 12,559 | (218,378 | ) | (9,706 | ) | 416,137 | 18,585 | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 1,553,202 | 67,830 | $ | 1,801,337 | 80,372 | $ | (1,920,425 | ) | (84,039 | ) | $ | 1,434,114 | 64,163 | ||||||||||||||||||
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| |||||||||||||||||
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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|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
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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184 American Funds Insurance Series
Table of Contents
Global Balanced Fund
Sales* | Reinvestments of distributions | Repurchases* | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 10,073 | 777 | $ | 5,390 | 408 | $ | (9,768 | ) | (718 | ) | $ | 5,695 | 467 | ||||||||||||||||||
Class 1A | 111 | 9 | 89 | 7 | (237 | ) | (19 | ) | (37 | ) | (3 | ) | ||||||||||||||||||||
Class 2 | 7,858 | 607 | 8,009 | 608 | (22,255 | ) | (1,722 | ) | (6,388 | ) | (507 | ) | ||||||||||||||||||||
Class 4 | 15,727 | 1,225 | 3,446 | 264 | (6,014 | ) | (470 | ) | 13,159 | 1,019 | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 33,769 | 2,618 | $ | 16,934 | 1,287 | $ | (38,274 | ) | (2,929 | ) | $ | 12,429 | 976 | ||||||||||||||||||
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| |||||||||||||||||
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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|
|
Bond Fund
Sales* | Reinvestments of distributions | Repurchases* | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 562,508 | 51,468 | $ | 176,372 | 15,842 | $ | (614,303 | ) | (56,025 | ) | $ | 124,577 | 11,285 | ||||||||||||||||||
Class 1A | 3,719 | 336 | 165 | 15 | (744 | ) | (67 | ) | 3,140 | 284 | ||||||||||||||||||||||
Class 2 | 133,036 | 12,239 | 90,797 | 8,262 | (413,489 | ) | (38,133 | ) | (189,656 | ) | (17,632 | ) | ||||||||||||||||||||
Class 4 | 149,767 | 13,753 | 11,384 | 1,037 | (49,519 | ) | (4,574 | ) | 111,632 | 10,216 | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 849,030 | 77,796 | $ | 278,718 | 25,156 | $ | (1,078,055 | ) | (98,799 | ) | $ | 49,693 | 4,153 | ||||||||||||||||||
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| |||||||||||||||||
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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|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
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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|
Global Bond Fund
Sales* | Reinvestments of distributions | Repurchases* | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 94,035 | 7,945 | $ | 19,056 | 1,588 | $ | (113,011 | ) | (9,529 | ) | $ | 80 | 4 | ||||||||||||||||||
Class 1A | 84 | 7 | 7 | 1 | (59 | ) | (5 | ) | 32 | 3 | ||||||||||||||||||||||
Class 2 | 33,181 | 2,816 | 15,927 | 1,338 | (140,715 | ) | (11,911 | ) | (91,607 | ) | (7,757 | ) | ||||||||||||||||||||
Class 4 | 13,230 | 1,132 | 649 | 55 | (7,381 | ) | (629 | ) | 6,498 | 558 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 140,530 | 11,900 | $ | 35,639 | 2,982 | $ | (261,166 | ) | (22,074 | ) | $ | (84,997 | ) | (7,192 | ) | ||||||||||||||||
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|
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| |||||||||||||||||
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 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 196,810 | 16,616 | $ | 56,130 | 4,977 | $ | (550,068 | ) | (46,596 | ) | $ | (297,128 | ) | (25,003 | ) | ||||||||||||||||
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See end of tables for footnotes.
American Funds Insurance Series 185
Table of Contents
High-Income Bond Fund
Sales* | Reinvestments of distributions | Repurchases* | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 9,412 | 933 | $ | 33,027 | 3,374 | $ | (48,250 | ) | (4,826 | ) | $ | (5,811 | ) | (519 | ) | ||||||||||||||||
Class 1A | 353 | 35 | 45 | 5 | (350 | ) | (35 | ) | 48 | 5 | ||||||||||||||||||||||
Class 2 | 10,165 | 1,039 | 41,753 | 4,340 | (84,344 | ) | (8,552 | ) | (32,426 | ) | (3,173 | ) | ||||||||||||||||||||
Class 3 | 613 | 61 | 611 | 62 | (1,328 | ) | (132 | ) | (104 | ) | (9 | ) | ||||||||||||||||||||
Class 4 | 64,302 | 6,070 | 3,353 | 321 | (37,801 | ) | (3,523 | ) | 29,854 | 2,868 | ||||||||||||||||||||||
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|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 84,845 | 8,138 | $ | 78,789 | 8,102 | $ | (172,073 | ) | (17,068 | ) | $ | (8,439 | ) | (828 | ) | ||||||||||||||||
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| |||||||||||||||||
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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Mortgage Fund
Sales* | Reinvestments of distributions | Repurchases* | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 31,595 | 3,007 | $ | 5,573 | 528 | $ | (41,843 | ) | (3,959 | ) | $ | (4,675 | ) | (424 | ) | ||||||||||||||||
Class 1A | 166 | 16 | 12 | 1 | (444 | ) | (42 | ) | (266 | ) | (25 | ) | ||||||||||||||||||||
Class 2 | 4,351 | 413 | 1,355 | 129 | (7,802 | ) | (738 | ) | (2,096 | ) | (196 | ) | ||||||||||||||||||||
Class 4 | 11,996 | 1,146 | 585 | 56 | (9,761 | ) | (944 | ) | 2,820 | 258 | ||||||||||||||||||||||
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|
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|
| |||||||||||||||||
Total net increase (decrease) | $ | 48,108 | 4,582 | $ | 7,525 | 714 | $ | (59,850 | ) | (5,683 | ) | $ | (4,217 | ) | (387 | ) | ||||||||||||||||
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| |||||||||||||||||
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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|
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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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186 American Funds Insurance Series
Table of Contents
Ultra-Short Bond Fund
Sales* | Reinvestments of distributions | Repurchases* | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 9,753 | 856 | $ | 604 | 53 | $ | (17,930 | ) | (1,576 | ) | $ | (7,573 | ) | (667 | ) | ||||||||||||||||
Class 1A | — | — | — | † | — | † | — | — | — | † | — | † | ||||||||||||||||||||
Class 2 | 85,259 | 7,676 | 4,088 | 371 | (106,127 | ) | (9,561 | ) | (16,780 | ) | (1,514 | ) | ||||||||||||||||||||
Class 3 | 714 | 64 | 59 | 5 | (2,101 | ) | (188 | ) | (1,328 | ) | (119 | ) | ||||||||||||||||||||
Class 4 | 21,513 | 1,920 | 342 | 31 | (17,702 | ) | (1,580 | ) | 4,153 | 371 | ||||||||||||||||||||||
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|
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|
| |||||||||||||||||
Total net increase (decrease) | $ | 117,239 | 10,516 | $ | 5,093 | 460 | $ | (143,860 | ) | (12,905 | ) | $ | (21,528 | ) | (1,929 | ) | ||||||||||||||||
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| |||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 25,371 | 2,233 | $ | 561 | 50 | $ | (26,198 | ) | (2,310 | ) | $ | (266 | ) | (27 | ) | ||||||||||||||||
Class 1A | — | — | — | † | — | † | — | — | — | † | — | † | ||||||||||||||||||||
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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|
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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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U.S.Government/AAA-Rated Securities Fund
Sales* | Reinvestments of distributions | Repurchases* | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 63,401 | 5,184 | $ | 31,462 | 2,550 | $ | (170,411 | ) | (13,819 | ) | $ | (75,548 | ) | (6,085 | ) | ||||||||||||||||
Class 1A | 1,348 | 110 | 50 | 4 | (488 | ) | (40 | ) | 910 | 74 | ||||||||||||||||||||||
Class 2 | 105,457 | 8,638 | 26,789 | 2,193 | (155,177 | ) | (12,760 | ) | (22,931 | ) | (1,929 | ) | ||||||||||||||||||||
Class 3 | 975 | 79 | 180 | 15 | (1,521 | ) | (124 | ) | (366 | ) | (30 | ) | ||||||||||||||||||||
Class 4 | 69,032 | 5,652 | 2,241 | 183 | (41,016 | ) | (3,366 | ) | 30,257 | 2,469 | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 240,213 | 19,663 | $ | 60,722 | 4,945 | $ | (368,613 | ) | (30,109 | ) | $ | (67,678 | ) | (5,501 | ) | ||||||||||||||||
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| |||||||||||||||||
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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|
Managed Risk Growth Fund
Sales* | Reinvestments of distributions | Repurchases* | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 2,619 | 201 | $ | 317 | 25 | $ | (523 | ) | (41 | ) | $ | 2,413 | 185 | ||||||||||||||||||
Class P2 | 47,485 | 3,690 | 29,905 | 2,419 | (30,455 | ) | (2,336 | ) | 46,935 | 3,773 | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 50,104 | 3,891 | $ | 30,222 | 2,444 | $ | (30,978 | ) | (2,377 | ) | $ | 49,348 | 3,958 | ||||||||||||||||||
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| |||||||||||||||||
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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See end of tables for footnotes.
American Funds Insurance Series 187
Table of Contents
Managed Risk International Fund
Sales* | Reinvestments of distributions | Repurchases* | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 357 | 34 | $ | 27 | 3 | $ | (140 | ) | (14 | ) | $ | 244 | 23 | ||||||||||||||||||
Class P2 | 7,251 | 702 | 7,769 | 772 | (18,389 | ) | (1,773 | ) | (3,369 | ) | (299 | ) | ||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 7,608 | 736 | $ | 7,796 | 775 | $ | (18,529 | ) | (1,787 | ) | $ | (3,125 | ) | (276 | ) | ||||||||||||||||
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| |||||||||||||||||
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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|
|
|
|
Managed Risk Blue Chip Income and Growth Fund
Sales* | Reinvestments of distributions | Repurchases* | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 547 | 46 | $ | 53 | 5 | $ | (313 | ) | (28 | ) | $ | 287 | 23 | ||||||||||||||||||
Class P2 | 16,518 | 1,448 | 23,362 | 2,128 | (33,614 | ) | (2,932 | ) | 6,266 | 644 | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 17,065 | 1,494 | $ | 23,415 | 2,133 | $ | (33,927 | ) | (2,960 | ) | $ | 6,553 | 667 | ||||||||||||||||||
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|
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| |||||||||||||||||
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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|
Managed Risk Growth-Income Fund
Sales* | Reinvestments of distributions | Repurchases* | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 86,511 | 6,809 | $ | 29,069 | 2,244 | $ | (82,465 | ) | (6,312 | ) | $ | 33,115 | 2,741 | ||||||||||||||||||
Class P2 | 28,190 | 2,218 | 3,371 | 263 | (20,033 | ) | (1,562 | ) | 11,528 | 919 | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 114,701 | 9,027 | $ | 32,440 | 2,507 | $ | (102,498 | ) | (7,874 | ) | $ | 44,643 | 3,660 | ||||||||||||||||||
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|
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|
| |||||||||||||||||
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 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
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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|
188 American Funds Insurance Series
Table of Contents
Managed Risk Asset Allocation Fund
Sales* | Reinvestments of distributions | Repurchases* | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 626 | 47 | $ | 70 | 5 | $ | (334 | ) | (25 | ) | $ | 362 | 27 | ||||||||||||||||||
Class P2 | 106,039 | 8,229 | 177,741 | 14,380 | (260,413 | ) | (20,223 | ) | 23,367 | 2,386 | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total net increase (decrease) | $ | 106,665 | 8,276 | $ | 177,811 | 14,385 | $ | (260,747 | ) | (20,248 | ) | $ | 23,729 | 2,413 | ||||||||||||||||||
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|
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|
| |||||||||||||||||
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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* | Includes exchanges between share classes of the fund. |
† | Amount less than one thousand. |
American Funds Insurance Series 189
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, 2019 (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* | $ | 849,859 | $ | 2,016,867 | $ | 5,239,850 | $ | 2,829,700 | $ | 1,380,037 | $ | 3,114,494 | ||||||||||||
Sales of investment securities* | 1,161,452 | 1,978,561 | 6,056,342 | 2,959,294 | 1,201,958 | 3,287,588 | ||||||||||||||||||
Non-U.S. taxes paid on dividend income | 6,906 | 2,961 | 8,895 | 15,544 | 3,090 | 740 | ||||||||||||||||||
Non-U.S. taxes (refunded) paid on interest income | — | 9 | — | — | 24 | — | ||||||||||||||||||
Non-U.S. taxes (refunded) paid on realized gains | — | — | — | 2 | 95 | — | ||||||||||||||||||
Non-U.S. taxes provided on unrealized gains | 4,247 | 7,065 | — | 14,853 | 12,751 | — | ||||||||||||||||||
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* | $ | 566,776 | $ | 8,540,898 | $ | 367,762 | $ | 617,629 | $ | 16,313,978 | $ | 256,445 | ||||||||||||
Sales of investment securities* | 665,217 | 8,266,596 | 406,434 | 454,046 | 15,144,557 | 250,980 | ||||||||||||||||||
Non-U.S. taxes paid on dividend income | 3,365 | 11,677 | 3,815 | 1,062 | 7,745 | 315 | ||||||||||||||||||
Non-U.S. taxes (refunded) paid on interest income | — | (1 | ) | — | — | — | 17 | |||||||||||||||||
Non-U.S. taxes (refunded) paid on realized gains | — | 515 | 152 | — | — | 8 | ||||||||||||||||||
Non-U.S. taxes provided on unrealized gains | 2,362 | 600 | 10 | — | 104 | 27 | ||||||||||||||||||
Dividend income from affiliated issuers | — | 3,592 | — | — | 5,398 | — | ||||||||||||||||||
Interest income from affiliated issuers | — | — | — | — | 1,136 | — | ||||||||||||||||||
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* | $ | 31,591,809 | $ | 2,815,896 | $ | 692,973 | $ | 924,220 | $ | — | $ | 5,774,305 | ||||||||||||
Sales of investment securities* | 33,147,847 | 2,894,376 | 734,772 | 1,047,226 | 74,850 | 6,141,505 | ||||||||||||||||||
Non-U.S. taxes (refunded) paid on interest income | (6 | ) | 416 | — | — | — | — | |||||||||||||||||
Non-U.S. taxes (refunded) paid on realized gains | (2 | ) | 369 | — | — | — | — | |||||||||||||||||
Non-U.S. taxes provided on unrealized gains | — | 225 | — | — | — | — |
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* | $ | 80,311 | $ | 12,427 | $ | 42,893 | $ | 303,447 | $ | 217,416 | ||||||||||
Sales of investment securities* | 39,304 | 19,864 | 43,650 | 122,609 | 287,016 | |||||||||||||||
Dividend income from affiliated issuers | 5,006 | 2,825 | 7,584 | 41,965 | 55,061 |
* | Excludes short-term securities and U.S. government obligations, if any. |
190 American Funds Insurance Series
Table of Contents
11. Ownership concentration
At December 31, 2019, American Funds Insurance Series — Portfolio Series Managed Risk Growth and Income Portfolio held 33% and 12% 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 held 24% of the outstanding shares of Global Balanced Fund.
American Funds Insurance Series 191
Table of Contents
Financial highlights
Income (loss) 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 return | Net assets, end of period (in millions) | Ratio of expenses to average net assets2 | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
Global Growth Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | $ | 25.74 | $ | .32 | $ | 8.60 | $ | 8.92 | $ | (.41 | ) | $ | (1.68 | ) | $ | (2.09 | ) | $ | 32.57 | 35.61 | % | $ | 2,515 | .56 | % | 1.07 | % | |||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 25.69 | .25 | 8.55 | 8.80 | (.34 | ) | (1.68 | ) | (2.02 | ) | 32.47 | 35.22 | 8 | .81 | .83 | |||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 25.50 | .24 | 8.51 | 8.75 | (.33 | ) | (1.68 | ) | (2.01 | ) | 32.24 | 35.28 | 3,895 | .81 | .83 | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 25.39 | .17 | 8.45 | 8.62 | (.28 | ) | (1.68 | ) | (1.96 | ) | 32.05 | 34.87 | 382 | 1.06 | .57 | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
Global Small Capitalization Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | $ | 21.75 | $ | .12 | $ | 6.61 | $ | 6.73 | $ | (.10 | ) | $ | (1.58 | ) | $ | (1.68 | ) | $ | 26.80 | 31.84 | % | $ | 2,050 | .75 | % | .48 | % | |||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 21.71 | .05 | 6.61 | 6.66 | (.05 | ) | (1.58 | ) | (1.63 | ) | 26.74 | 31.56 | 1 | .99 | .22 | |||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 21.16 | .05 | 6.43 | 6.48 | (.04 | ) | (1.58 | ) | (1.62 | ) | 26.02 | 31.52 | 2,363 | 1.00 | .22 | |||||||||||||||||||||||||||||||||
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 | ) | ||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 21.28 | (.01 | ) | 6.47 | 6.46 | — | 8 | (1.58 | ) | (1.58 | ) | 26.16 | 31.24 | 206 | 1.25 | (.04 | ) | |||||||||||||||||||||||||||||||
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 | ) |
192 American Funds Insurance Series
Table of Contents
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on | Total from investment operations | Dividends (from net | Distributions (from capital | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, (in millions) | Ratio of expenses to average net assets2 | Ratio of to average | ||||||||||||||||||||||||||||||||||||
Growth Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | $ | 69.96 | $ | .83 | $ | 19.63 | $ | 20.46 | $ | (.76 | ) | $ | (8.44 | ) | $ | (9.20 | ) | $ | 81.22 | 31.11 | % | $ | 10,841 | .35 | % | 1.09 | % | |||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 69.77 | .65 | 19.55 | 20.20 | (.61 | ) | (8.44 | ) | (9.05 | ) | 80.92 | 30.79 | 18 | .60 | .85 | |||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 69.48 | .63 | 19.47 | 20.10 | (.57 | ) | (8.44 | ) | (9.01 | ) | 80.57 | 30.77 | 15,885 | .60 | .83 | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 70.44 | .69 | 19.77 | 20.46 | (.62 | ) | (8.44 | ) | (9.06 | ) | 81.84 | 30.86 | 213 | .53 | .90 | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 68.64 | .44 | 19.19 | 19.63 | (.42 | ) | (8.44 | ) | (8.86 | ) | 79.41 | 30.44 | 1,513 | .85 | .59 | |||||||||||||||||||||||||||||||||
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 |
See end of tables for footnotes.
American Funds Insurance Series 193
Table of Contents
Financial highlights (continued)
Income (loss) 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 return | Net assets, end of period (in millions) | Ratio of expenses to average net assets2 | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
International Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | $ | 17.66 | $ | .30 | $ | 3.74 | $ | 4.04 | $ | (.34 | ) | $ | (.50 | ) | $ | (.84 | ) | $ | 20.86 | 23.21 | % | $ | 5,353 | .54 | % | 1.54 | % | |||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 17.62 | .25 | 3.72 | 3.97 | (.29 | ) | (.50 | ) | (.79 | ) | 20.80 | 22.90 | 7 | .79 | 1.27 | |||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 17.60 | .25 | 3.72 | 3.97 | (.29 | ) | (.50 | ) | (.79 | ) | 20.78 | 22.88 | 4,311 | .79 | 1.29 | |||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 17.70 | .27 | 3.75 | 4.02 | (.30 | ) | (.50 | ) | (.80 | ) | 20.92 | 23.05 | 25 | .72 | 1.37 | |||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 17.40 | .20 | 3.69 | 3.89 | (.25 | ) | (.50 | ) | (.75 | ) | 20.54 | 22.67 | 379 | 1.04 | 1.03 | |||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
New World Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | $ | 20.98 | $ | .28 | $ | 5.79 | $ | 6.07 | $ | (.29 | ) | $ | (.92 | ) | $ | (1.21 | ) | $ | 25.84 | 29.47 | % | $ | 2,129 | .76 | % | 1.18 | % | |||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 20.92 | .22 | 5.76 | 5.98 | (.24 | ) | (.92 | ) | (1.16 | ) | 25.74 | 29.11 | 4 | 1.01 | .92 | |||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 20.79 | .22 | 5.73 | 5.95 | (.23 | ) | (.92 | ) | (1.15 | ) | 25.59 | 29.15 | 981 | 1.01 | .93 | |||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 20.71 | .16 | 5.70 | 5.86 | (.18 | ) | (.92 | ) | (1.10 | ) | 25.47 | 28.82 | 646 | 1.26 | .67 | |||||||||||||||||||||||||||||||||
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 |
194 American Funds Insurance Series
Table of Contents
Income (loss) 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 return | Net assets, end of period (in millions) | Ratio of expenses to average net assets2 | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
Blue Chip Income and Growth Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | $ | 12.38 | $ | .30 | $ | 2.25 | $ | 2.55 | $ | (.30 | ) | $ | (1.07 | ) | $ | (1.37 | ) | $ | 13.56 | 21.66 | % | $ | 5,559 | .42 | % | 2.28 | % | |||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 12.35 | .26 | 2.24 | 2.50 | (.27 | ) | (1.07 | ) | (1.34 | ) | 13.51 | 21.35 | 9 | .67 | 2.03 | |||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 12.24 | .26 | 2.22 | 2.48 | (.26 | ) | (1.07 | ) | (1.33 | ) | 13.39 | 21.38 | 3,093 | .67 | 2.03 | |||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 12.19 | .23 | 2.20 | 2.43 | (.24 | ) | (1.07 | ) | (1.31 | ) | 13.31 | 21.03 | 621 | .92 | 1.78 | |||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Global Growth and Income Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | $ | 13.02 | $ | .31 | $ | 3.67 | $ | 3.98 | $ | (.32 | ) | $ | (.76 | ) | $ | (1.08 | ) | $ | 15.92 | 31.39 | % | $ | 625 | .65 | % | 2.08 | % | |||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 13.00 | .26 | 3.68 | 3.94 | (.30 | ) | (.76 | ) | (1.06 | ) | 15.88 | 31.04 | 2 | .90 | 1.77 | |||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 12.99 | .27 | 3.68 | 3.95 | (.29 | ) | (.76 | ) | (1.05 | ) | 15.89 | 31.14 | 1,366 | .90 | 1.84 | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 12.81 | .23 | 3.61 | 3.84 | (.26 | ) | (.76 | ) | (1.02 | ) | 15.63 | 30.73 | 145 | 1.15 | 1.56 | |||||||||||||||||||||||||||||||||
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 |
See end of tables for footnotes.
American Funds Insurance Series 195
Table of Contents
Financial highlights (continued)
Income (loss) 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 return | Net assets, end of period (in millions) | Ratio of expenses to average net assets2 | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
Growth-Income Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | $ | 45.39 | $ | 1.00 | $ | 10.40 | $ | 11.40 | $ | (.92 | ) | $ | (5.16 | ) | $ | (6.08 | ) | $ | 50.71 | 26.46 | % | $ | 21,057 | .29 | % | 2.05 | % | |||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 45.28 | .89 | 10.36 | 11.25 | (.83 | ) | (5.16 | ) | (5.99 | ) | 50.54 | 26.14 | 11 | .54 | 1.82 | |||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 44.90 | .87 | 10.27 | 11.14 | (.80 | ) | (5.16 | ) | (5.96 | ) | 50.08 | 26.14 | 13,586 | .53 | 1.80 | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 45.47 | .91 | 10.43 | 11.34 | (.84 | ) | (5.16 | ) | (6.00 | ) | 50.81 | 26.24 | 156 | .46 | 1.87 | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 44.47 | .74 | 10.18 | 10.92 | (.71 | ) | (5.16 | ) | (5.87 | ) | 49.52 | 25.86 | 1,216 | .79 | 1.56 | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
International Growth and Income Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | $ | 15.35 | $ | .46 | $ | 3.03 | $ | 3.49 | $ | (.47 | ) | $ | (.19 | ) | $ | (.66 | ) | $ | 18.18 | 23.06 | % | $ | 1,140 | .66 | % | 2.73 | % | |||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 15.33 | .41 | 3.04 | 3.45 | (.44 | ) | (.19 | ) | (.63 | ) | 18.15 | 22.76 | 2 | .91 | 2.41 | |||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 15.30 | .42 | 3.02 | 3.44 | (.43 | ) | (.19 | ) | (.62 | ) | 18.12 | 22.76 | 257 | .91 | 2.49 | |||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 15.22 | .37 | 3.01 | 3.38 | (.40 | ) | (.19 | ) | (.59 | ) | 18.01 | 22.47 | 101 | 1.16 | 2.18 | |||||||||||||||||||||||||||||||||
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 |
196 American Funds Insurance Series
Table of Contents
Income (loss) 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 return | Net assets, end of period (in millions) | Ratio of expenses to average net assets2 | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
Capital Income Builder |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | $ | 9.37 | $ | .32 | $ | 1.36 | $ | 1.68 | $ | (.32 | ) | $ | — | $ | (.32 | ) | $ | 10.73 | 18.16 | % | $ | 533 | .53 | % | 3.17 | % | ||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 9.36 | .29 | 1.37 | 1.66 | (.30 | ) | — | (.30 | ) | 10.72 | 17.90 | 6 | .78 | 2.84 | ||||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 9.36 | .30 | 1.35 | 1.65 | (.29 | ) | — | (.29 | ) | 10.72 | 17.89 | 6 | .78 | 2.91 | ||||||||||||||||||||||||||||||||||
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 | )10 | — | 7 | .46 | 10 | 3.12 | 10 | ||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 9.35 | .27 | 1.36 | 1.63 | (.27 | ) | — | (.27 | ) | 10.71 | 17.62 | 454 | 1.03 | 2.68 | ||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
Asset Allocation Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | $ | 21.29 | $ | .51 | $ | 3.94 | $ | 4.45 | $ | (.50 | ) | $ | (1.19 | ) | $ | (1.69 | ) | $ | 24.05 | 21.54 | % | $ | 17,730 | .29 | % | 2.21 | % | |||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 21.26 | .45 | 3.92 | 4.37 | (.45 | ) | (1.19 | ) | (1.64 | ) | 23.99 | 21.19 | 11 | .54 | 1.95 | |||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 21.08 | .45 | 3.89 | 4.34 | (.44 | ) | (1.19 | ) | (1.63 | ) | 23.79 | 21.23 | 5,154 | .54 | 1.96 | |||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 21.32 | .47 | 3.93 | 4.40 | (.45 | ) | (1.19 | ) | (1.64 | ) | 24.08 | 21.30 | 32 | .47 | 2.02 | |||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 20.99 | .39 | 3.87 | 4.26 | (.39 | ) | (1.19 | ) | (1.58 | ) | 23.67 | 20.92 | 4,493 | .79 | 1.71 | |||||||||||||||||||||||||||||||||
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 |
See end of tables for footnotes.
American Funds Insurance Series 197
Table of Contents
Financial highlights (continued)
Income (loss) 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 return | Net assets, end of period (in millions) | Ratio of expenses to average net assets2 | Ratio of to average | ||||||||||||||||||||||||||||||||||||
Global Balanced Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | $ | 11.67 | $ | .24 | $ | 2.17 | $ | 2.41 | $ | (.20 | ) | $ | (.37 | ) | $ | (.57 | ) | $ | 13.51 | 20.79 | % | $ | 134 | .72 | % | 1.88 | % | |||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 11.65 | .21 | 2.17 | 2.38 | (.17 | ) | (.37 | ) | (.54 | ) | 13.49 | 20.54 | 2 | .97 | 1.63 | |||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 11.65 | .21 | 2.16 | 2.37 | (.17 | ) | (.37 | ) | (.54 | ) | 13.48 | 20.44 | 207 | .97 | 1.64 | |||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 11.55 | .18 | 2.14 | 2.32 | (.14 | ) | (.37 | ) | (.51 | ) | 13.36 | 20.21 | 94 | 1.22 | 1.37 | |||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Bond Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | $ | 10.47 | $ | .30 | $ | .71 | $ | 1.01 | $ | (.31 | ) | $ | — | $ | (.31 | ) | $ | 11.17 | 9.70 | % | $ | 6,481 | .39 | % | 2.76 | % | ||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 10.45 | .27 | .71 | .98 | (.30 | ) | — | (.30 | ) | 11.13 | 9.36 | 7 | .64 | 2.48 | ||||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 10.34 | .27 | .70 | .97 | (.29 | ) | — | (.29 | ) | 11.02 | 9.36 | 3,561 | .64 | 2.51 | ||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 10.33 | .24 | .70 | .94 | (.27 | ) | — | (.27 | ) | 11.00 | 9.08 | 502 | .89 | 2.25 | ||||||||||||||||||||||||||||||||||
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 |
198 American Funds Insurance Series
Table of Contents
Income (loss) 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 return | Net assets, end of period (in millions) | Ratio of expenses to average net assets2 | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
Global Bond Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | $ | 11.42 | $ | .31 | $ | .61 | $ | .92 | $ | (.22 | ) | $ | — | $ | (.22 | ) | $ | 12.12 | 8.08 | % | $ | 1,077 | .58 | % | 2.60 | % | ||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 11.41 | .28 | .60 | .88 | (.19 | ) | — | (.19 | ) | 12.10 | 7.75 | 1 | .83 | 2.35 | ||||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 11.34 | .28 | .60 | .88 | (.19 | ) | — | (.19 | ) | 12.03 | 7.77 | 1,002 | .83 | 2.35 | ||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 11.24 | .24 | .60 | .84 | (.16 | ) | — | (.16 | ) | 11.92 | 7.54 | 49 | 1.08 | 2.09 | ||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
High-Income Bond Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | $ | 9.34 | $ | .67 | $ | .52 | $ | 1.19 | $ | (.66 | ) | $ | — | $ | (.66 | ) | $ | 9.87 | 12.85 | % | $ | 525 | .51 | % | 6.71 | % | ||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 9.33 | .65 | .51 | 1.16 | (.63 | ) | — | (.63 | ) | 9.86 | 12.61 | 1 | .75 | 6.47 | ||||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 9.19 | .64 | .50 | 1.14 | (.63 | ) | — | (.63 | ) | 9.70 | 12.55 | 667 | .76 | 6.45 | ||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 9.38 | .66 | .52 | 1.18 | (.64 | ) | — | (.64 | ) | 9.92 | 12.70 | 10 | .69 | 6.52 | ||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 9.96 | .67 | .54 | 1.21 | (.61 | ) | — | (.61 | ) | 10.56 | 12.27 | 63 | 1.01 | 6.21 | ||||||||||||||||||||||||||||||||||
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 |
See end of tables for footnotes.
American Funds Insurance Series 199
Table of Contents
Financial highlights (continued)
Income (loss) 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 return | Net assets, end of period (in millions) | Ratio of expenses to average net assets2 | Ratio of to average | ||||||||||||||||||||||||||||||||||||
Mortgage Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | $ | 10.30 | $ | .24 | $ | .30 | $ | .54 | $ | (.28 | ) | $ | — | $ | (.28 | ) | $ | 10.56 | 5.30 | % | $ | 210 | .47 | % | 2.26 | % | ||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 10.28 | .22 | .30 | .52 | (.25 | ) | — | (.25 | ) | 10.55 | 5.09 | 1 | .71 | 2.04 | ||||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 10.28 | .21 | .31 | .52 | (.26 | ) | — | (.26 | ) | 10.54 | 5.04 | 56 | .72 | 2.01 | ||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 10.19 | .18 | .31 | .49 | (.24 | ) | — | (.24 | ) | 10.44 | 4.80 | 28 | .97 | 1.71 | ||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
Ultra-Short Bond Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | $ | 11.31 | $ | .22 | $ | — | 8 | $ | .22 | $ | (.23 | ) | $ | — | $ | (.23 | ) | $ | 11.30 | 1.92 | % | $ | 30 | .36 | % | 1.92 | % | |||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
12/31/201611 | 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 | ) | ||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 11.31 | .22 | — | 8 | .22 | (.23 | ) | — | (.23 | ) | 11.30 | 1.92 | 10 | — | 7 | .37 | 10 | 1.90 | 10 | |||||||||||||||||||||||||||||
12/31/2018 | 11.29 | .18 | — | 8 | .18 | (.16 | ) | — | (.16 | ) | 11.31 | 1.58 | 10 | — | 7 | .35 | 10 | 1.60 | 10 | |||||||||||||||||||||||||||||
12/31/20173,4 | 11.27 | .08 | — | 8 | .08 | (.06 | ) | — | (.06 | ) | 11.29 | .67 | 5,10 | — | 7 | .34 | 6,10 | .69 | 6,10 | |||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 11.03 | .18 | — | 8 | .18 | (.20 | ) | — | (.20 | ) | 11.01 | 1.62 | 230 | .61 | 1.66 | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
12/31/201611 | 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 | ) | |||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 11.14 | .20 | — | 8 | .20 | (.21 | ) | — | (.21 | ) | 11.13 | 1.76 | 3 | .54 | 1.74 | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
12/31/201611 | 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 | ) | |||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 11.15 | .16 | — | 8 | .16 | (.18 | ) | — | (.18 | ) | 11.13 | 1.40 | 22 | .86 | 1.40 | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
12/31/201611 | 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 | ) |
200 American Funds Insurance Series
Table of Contents
Income (loss) 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 return | Net assets, end of period (in millions) | Ratio of expenses to average net assets2 | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
U.S.Government/AAA-Rated Securities Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | $ | 11.94 | $ | .25 | $ | .43 | $ | .68 | $ | (.28 | ) | $ | — | $ | (.28 | ) | $ | 12.34 | 5.69 | % | $ | 1,418 | .37 | % | 2.07 | % | ||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 11.93 | .22 | .43 | .65 | (.26 | ) | — | (.26 | ) | 12.32 | 5.42 | 2 | .62 | 1.82 | ||||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 11.82 | .22 | .42 | .64 | (.25 | ) | — | (.25 | ) | 12.21 | 5.31 | 1,343 | .62 | 1.82 | ||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 11.97 | .23 | .43 | .66 | (.26 | ) | — | (.26 | ) | 12.37 | 5.49 | 9 | .55 | 1.88 | ||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 11.84 | .19 | .42 | .61 | (.23 | ) | — | (.23 | ) | 12.22 | 5.14 | 124 | .87 | 1.56 | ||||||||||||||||||||||||||||||||||
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 |
See end of tables for footnotes.
American Funds Insurance Series 201
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 return12 | Net assets, end of period (in millions) | Ratio of expenses to average net assets before waivers/ reimburse- ments | Ratio of expenses to average net assets after waivers/ reimburse- ments12 | Net effective expense ratio12,13 | Ratio of net income to average net assets12 | ||||||||||||||||||||||||||||||||||||||||||
Managed Risk Growth Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | $ | 12.30 | $ | .15 | $ | 2.44 | $ | 2.59 | $ | (.19 | ) | $ | (.92 | ) | $ | (1.11 | ) | $ | 13.78 | 22.01 | % | $ | 6 | .42 | % | .37 | % | .73 | % | 1.19 | % | |||||||||||||||||||||||||
12/31/2018 | 13.22 | .11 | (.04 | ) | .07 | (.10 | ) | (.89 | ) | (.99 | ) | 12.30 | (.04 | )10 | 3 | .42 | 10 | .37 | 10 | .71 | 10 | .82 | 10 | |||||||||||||||||||||||||||||||||
12/31/2017 | 10.71 | .08 | 2.70 | 2.78 | (.07 | ) | (.20 | ) | (.27 | ) | 13.22 | 26.23 | 10 | 2 | .42 | 10 | .36 | 10 | .70 | 10 | .69 | 10 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 11.49 | .08 | .20 | .28 | (.05 | ) | (1.01 | ) | (1.06 | ) | 10.71 | 2.89 | 10 | 1 | .50 | 10 | .34 | 10 | .68 | 10 | .79 | 10 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 11.37 | .09 | .03 | .12 | — | — | — | 11.49 | 1.06 | 10 | — | 7 | .53 | 10 | .29 | 10 | .63 | 10 | .80 | 10 | ||||||||||||||||||||||||||||||||||||
Class P2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 12.21 | .09 | 2.45 | 2.54 | (.12 | ) | (.92 | ) | (1.04 | ) | 13.71 | 21.74 | 434 | .68 | .63 | .99 | .73 | |||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||
Managed Risk International Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | $ | 9.82 | $ | .17 | $ | 1.54 | $ | 1.71 | $ | (.20 | ) | $ | (.32 | ) | $ | (.52 | ) | $ | 11.01 | 17.91 | %10 | $ | 1 | .41 | %10 | .33 | %10 | .84 | %10 | 1.64 | %10 | |||||||||||||||||||||||||
12/31/2018 | 11.25 | .32 | (1.44 | ) | (1.12 | ) | (.26 | ) | (.05 | ) | (.31 | ) | 9.82 | (10.11 | )10 | — | 7 | .33 | 10 | .28 | 10 | .77 | 10 | 3.02 | 10 | |||||||||||||||||||||||||||||||
12/31/2017 | 8.89 | .11 | 2.47 | 2.58 | (.10 | ) | (.12 | ) | (.22 | ) | 11.25 | 29.28 | 10 | — | 7 | .28 | 10 | .20 | 10 | .69 | 10 | 1.13 | 10 | |||||||||||||||||||||||||||||||||
12/31/2016 | 9.48 | .10 | (.35 | ) | (.25 | ) | (.12 | ) | (.22 | ) | (.34 | ) | 8.89 | (2.59 | )10 | — | 7 | .39 | 10 | .23 | 10 | .74 | 10 | 1.15 | 10 | |||||||||||||||||||||||||||||||
12/31/2015 | 10.10 | .18 | (.80 | ) | (.62 | ) | — | 8 | — | — | 8 | 9.48 | (6.12 | )10 | — | 7 | .45 | 10 | .21 | 10 | .72 | 10 | 1.75 | 10 | ||||||||||||||||||||||||||||||||
Class P2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 9.76 | .13 | 1.55 | 1.68 | (.20 | ) | (.32 | ) | (.52 | ) | 10.92 | 17.64 | 165 | .71 | .63 | 1.14 | 1.21 | |||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Managed Risk Blue Chip Income and Growth Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | $ | 11.28 | $ | .25 | $ | 1.28 | $ | 1.53 | $ | (.20 | ) | $ | (.60 | ) | $ | (.80 | ) | $ | 12.01 | 14.14 | %10 | $ | 1 | .38 | %10 | .33 | %10 | .74 | %10 | 2.14 | %10 | |||||||||||||||||||||||||
12/31/2018 | 13.04 | .40 | (1.27 | ) | (.87 | ) | (.45 | ) | (.44 | ) | (.89 | ) | 11.28 | (6.99 | )10 | — | 7 | .33 | 10 | .28 | 10 | .67 | 10 | 3.21 | 10 | |||||||||||||||||||||||||||||||
12/31/2017 | 11.67 | .19 | 1.59 | 1.78 | (.22 | ) | (.19 | ) | (.41 | ) | 13.04 | 15.48 | 10 | — | 7 | .30 | 10 | .25 | 10 | .64 | 10 | 1.59 | 10 | |||||||||||||||||||||||||||||||||
12/31/2016 | 10.80 | .20 | 1.25 | 1.45 | (.21 | ) | (.37 | ) | (.58 | ) | 11.67 | 13.77 | 10 | — | 7 | .43 | 10 | .27 | 10 | .67 | 10 | 1.83 | 10 | |||||||||||||||||||||||||||||||||
12/31/2015 | 11.70 | .19 | (1.02 | ) | (.83 | ) | (.07 | ) | — | (.07 | ) | 10.80 | (7.07 | )10 | — | 7 | .50 | 10 | .27 | 10 | .66 | 10 | 1.64 | 10 | ||||||||||||||||||||||||||||||||
Class P2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 11.21 | .18 | 1.31 | 1.49 | (.19 | ) | (.60 | ) | (.79 | ) | 11.91 | 13.88 | 365 | .68 | .63 | 1.04 | 1.62 | |||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Managed Risk Growth-Income Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | $ | 11.73 | $ | .22 | $ | 2.01 | $ | 2.23 | $ | (.10 | ) | $ | (.10 | ) | $ | (.20 | ) | $ | 13.76 | 19.14 | % | $ | 1,987 | .42 | % | .37 | % | .67 | % | 1.71 | % | |||||||||||||||||||||||||
12/31/2018 | 12.66 | (.02 | ) | (.15 | ) | (.17 | ) | (.19 | ) | (.57 | ) | (.76 | ) | 11.73 | (1.66 | ) | 1,662 | .40 | .35 | .64 | (.20 | ) | ||||||||||||||||||||||||||||||||||
12/31/2017 | 11.07 | .19 | 2.03 | 2.22 | (.13 | ) | (.50 | ) | (.63 | ) | 12.66 | 20.64 | 10 | 2 | .44 | 10 | .37 | 10 | .66 | 10 | 1.61 | 10 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 11.25 | .16 | .52 | .68 | (.16 | ) | (.70 | ) | (.86 | ) | 11.07 | 6.49 | 10 | 1 | .52 | 10 | .36 | 10 | .64 | 10 | 1.46 | 10 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 11.67 | .25 | (.63 | ) | (.38 | ) | (.04 | ) | — | (.04 | ) | 11.25 | (3.27 | )10 | 1 | .56 | 10 | .31 | 10 | .59 | 10 | 2.17 | 10 | |||||||||||||||||||||||||||||||||
Class P2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 11.67 | .19 | 2.00 | 2.19 | (.07 | ) | (.10 | ) | (.17 | ) | 13.69 | 18.84 | 283 | .67 | .62 | .92 | 1.47 | |||||||||||||||||||||||||||||||||||||||
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 |
202 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 return12 | Net assets, end of period (in millions) | Ratio of expenses to average net assets before waivers/ reimburse- ments | Ratio of expenses to average net assets after waivers/ reimburse- ments12 | Net effective expense ratio12,13 | Ratio of net income | ||||||||||||||||||||||||||||||||||||||||||
Managed Risk Asset Allocation Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | $ | 12.23 | $ | .26 | $ | 1.92 | $ | 2.18 | $ | (.03 | ) | $ | (.57 | ) | $ | (.60 | ) | $ | 13.81 | 18.25 | % | $ | 2 | .41 | % | .36 | % | .65 | % | 2.01 | % | |||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||
Class P2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2019 | 12.22 | .19 | 1.93 | 2.12 | (.31 | ) | (.57 | ) | (.88 | ) | 13.46 | 17.98 | 2,830 | .66 | .61 | .90 | 1.51 | |||||||||||||||||||||||||||||||||||||||
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 |
See end of tables for footnotes.
American Funds Insurance Series 203
Table of Contents
Portfolio turnover rate for all share classes excluding mortgage dollar roll transactions14,15 | Period ended December 31, | |||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
Capital Income Builder | 44 | % | 42 | % | 59 | % | 41 | % | 38 | % | ||||||||||
Asset Allocation Fund | 47 | 34 | 39 | 43 | 28 | |||||||||||||||
Global Balanced Fund | 60 | 30 | 28 | 43 | 36 | |||||||||||||||
Bond Fund | 146 | 98 | 153 | 108 | 141 | |||||||||||||||
Global Bond Fund | 110 | 78 | 74 | 70 | 88 | |||||||||||||||
Mortgage Fund | 84 | 60 | 98 | 113 | 138 | |||||||||||||||
U.S.Government/AAA-Rated Securities Fund | 103 | 76 | 120 | 273 | 352 | |||||||||||||||
Portfolio turnover rate for all share classes including mortgage dollar roll14,15 | Period ended December 31, | |||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
Global Growth Fund | 14 | % | 25 | % | 31 | % | 27 | % | 29 | % | ||||||||||
Global Small Capitalization Fund | 50 | 43 | 33 | 40 | 36 | |||||||||||||||
Growth Fund | 21 | 35 | 24 | 26 | 20 | |||||||||||||||
International Fund | 32 | 29 | 29 | 31 | 37 | |||||||||||||||
New World Fund | 38 | 58 | 56 | 32 | 39 | |||||||||||||||
Blue Chip Income and Growth Fund | 37 | 49 | 34 | 30 | 26 | |||||||||||||||
Global Growth and Income Fund | 29 | 49 | 41 | 57 | 37 | |||||||||||||||
Growth-Income Fund | 27 | 39 | 27 | 27 | 25 | |||||||||||||||
International Growth and Income Fund | 28 | 38 | 51 | 32 | 35 | |||||||||||||||
Capital Income Builder Fund | 72 | 98 | 88 | 53 | 128 | |||||||||||||||
Asset Allocation Fund | 79 | 86 | 85 | 83 | 76 | |||||||||||||||
Global Balanced Fund | 74 | 51 | 41 | 65 | 76 | |||||||||||||||
Bond Fund | 373 | 514 | 502 | 375 | 434 | |||||||||||||||
Global Bond Fund | 159 | 125 | 105 | 154 | 159 | |||||||||||||||
High-Income Bond Fund | 58 | 67 | 78 | 89 | 66 | |||||||||||||||
Mortgage Fund | 350 | 811 | 680 | 713 | 1103 | |||||||||||||||
U.S.Government/AAA-Rated Securities Fund | 277 | 446 | 551 | 539 | 901 | |||||||||||||||
Ultra-Short Bond Fund | — | 16 | — | 16 | — | 16 | — | 11,16 | N/A | |||||||||||
Managed Risk Growth Fund | 10 | 7 | 25 | 15 | 16 | |||||||||||||||
Managed Risk International Fund | 8 | 8 | 25 | 26 | 15 | |||||||||||||||
Managed Risk Blue Chip Income and Growth Fund | 13 | 11 | 32 | 9 | 20 | |||||||||||||||
Managed Risk Growth-Income Fund | 6 | 14 | 26 | 14 | 11 | |||||||||||||||
Managed Risk Asset Allocation Fund | 8 | 12 | 1 | 3 | 3 |
1 | Based on average shares outstanding. |
2 | Ratios do not include expenses of any Central Funds. The fund indirectly bears its proportionate share of the expenses of any Central Funds, if applicable. |
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 | 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. |
11 | 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. |
12 | 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. |
13 | 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. |
14 | Refer to Note 5 for further information on mortgage dollar rolls. |
15 | Rates do not include the fund’s portfolio activity with respect to any Central Funds, if applicable. |
16 | Amount is either less than 1% or there is no turnover. |
See notes to financial statements.
204 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, 2019, the related statements of operations for the year ended December 31, 2019, the statements of changes in net assets for each of the two years in the period ended December 31, 2019, 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, 2019, 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, 2019 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, 2019 by correspondence with the custodians, transfer agent and brokers; when replies were not received from the transfer agent and 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 11, 2020
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 205
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, 2019, through December 31, 2019).
Actual expenses:
The first line of each share class in the tables 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 tables 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 tables 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.
206 American Funds Insurance Series
Table of Contents
Beginning account value 7/1/2019 | Ending account value 12/31/2019 | Expenses paid during period1 | Annualized expense ratio | |||||||||||||
Global Growth Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,116.96 | $ | 3.04 | .57 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,022.33 | 2.91 | .57 | ||||||||||||
Class 1A — actual return | 1,000.00 | 1,115.38 | 4.37 | .82 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,021.07 | 4.18 | .82 | ||||||||||||
Class 2 — actual return | 1,000.00 | 1,115.67 | 4.37 | .82 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,021.07 | 4.18 | .82 | ||||||||||||
Class 4 — actual return | 1,000.00 | 1,113.99 | 5.70 | 1.07 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,019.81 | 5.45 | 1.07 | ||||||||||||
Global Small Capitalization Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,095.88 | $ | 4.01 | .76 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,021.37 | 3.87 | .76 | ||||||||||||
Class 1A — actual return | 1,000.00 | 1,094.41 | 5.28 | 1.00 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,020.16 | 5.09 | 1.00 | ||||||||||||
Class 2 — actual return | 1,000.00 | 1,094.51 | 5.33 | 1.01 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,020.11 | 5.14 | 1.01 | ||||||||||||
Class 4 — actual return | 1,000.00 | 1,093.20 | 6.65 | 1.26 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,018.85 | 6.41 | 1.26 | ||||||||||||
Growth Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,122.54 | $ | 1.93 | .36 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,023.39 | 1.84 | .36 | ||||||||||||
Class 1A — actual return | 1,000.00 | 1,121.15 | 3.26 | .61 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,022.13 | 3.11 | .61 | ||||||||||||
Class 2 — actual return | 1,000.00 | 1,121.13 | 3.26 | .61 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,022.13 | 3.11 | .61 | ||||||||||||
Class 3 — actual return | 1,000.00 | 1,121.54 | 2.89 | .54 | ||||||||||||
Class 3 — assumed 5% return | 1,000.00 | 1,022.48 | 2.75 | .54 | ||||||||||||
Class 4 — actual return | 1,000.00 | 1,119.60 | 4.59 | .86 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,020.87 | 4.38 | .86 | ||||||||||||
International Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,071.97 | $ | 2.87 | .55 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,022.43 | 2.80 | .55 | ||||||||||||
Class 1A — actual return | 1,000.00 | 1,070.89 | 4.18 | .80 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,021.17 | 4.08 | .80 | ||||||||||||
Class 2 — actual return | 1,000.00 | 1,070.65 | 4.18 | .80 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,021.17 | 4.08 | .80 | ||||||||||||
Class 3 — actual return | 1,000.00 | 1,071.19 | 3.81 | .73 | ||||||||||||
Class 3 — assumed 5% return | 1,000.00 | 1,021.53 | 3.72 | .73 | ||||||||||||
Class 4 — actual return | 1,000.00 | 1,069.66 | 5.48 | 1.05 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,019.91 | 5.35 | 1.05 | ||||||||||||
New World Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,085.93 | $ | 4.05 | .77 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,021.32 | 3.92 | .77 | ||||||||||||
Class 1A — actual return | 1,000.00 | 1,084.04 | 5.36 | 1.02 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,020.06 | 5.19 | 1.02 | ||||||||||||
Class 2 — actual return | 1,000.00 | 1,084.63 | 5.36 | 1.02 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,020.06 | 5.19 | 1.02 | ||||||||||||
Class 4 — actual return | 1,000.00 | 1,082.83 | 6.67 | 1.27 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,018.80 | 6.46 | 1.27 |
See end of tables for footnotes.
American Funds Insurance Series 207
Table of Contents
Beginning account value 7/1/2019 | Ending account value 12/31/2019 | Expenses paid during period1 | Annualized expense ratio | |||||||||||||
Blue Chip Income and Growth Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,094.67 | $ | 2.27 | .43 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,023.04 | 2.19 | .43 | ||||||||||||
Class 1A — actual return | 1,000.00 | 1,094.36 | 3.59 | .68 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,021.78 | 3.47 | .68 | ||||||||||||
Class 2 — actual return | 1,000.00 | 1,094.61 | 3.59 | .68 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,021.78 | 3.47 | .68 | ||||||||||||
Class 4 — actual return | 1,000.00 | 1,092.10 | 4.90 | .93 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,020.52 | 4.74 | .93 | ||||||||||||
Global Growth and Income Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,099.74 | $ | 3.49 | .66 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,021.88 | 3.36 | .66 | ||||||||||||
Class 1A — actual return | 1,000.00 | 1,098.34 | 4.81 | .91 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,020.62 | 4.63 | .91 | ||||||||||||
Class 2 — actual return | 1,000.00 | 1,098.41 | 4.81 | .91 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,020.62 | 4.63 | .91 | ||||||||||||
Class 4 — actual return | 1,000.00 | 1,096.37 | 6.13 | 1.16 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,019.36 | 5.90 | 1.16 | ||||||||||||
Growth-Income Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,088.69 | $ | 1.53 | .29 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,023.74 | 1.48 | .29 | ||||||||||||
Class 1A — actual return | 1,000.00 | 1,087.42 | 2.84 | .54 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,022.48 | 2.75 | .54 | ||||||||||||
Class 2 — actual return | 1,000.00 | 1,087.19 | 2.84 | .54 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,022.48 | 2.75 | .54 | ||||||||||||
Class 3 — actual return | 1,000.00 | 1,087.79 | 2.47 | .47 | ||||||||||||
Class 3 — assumed 5% return | 1,000.00 | 1,022.84 | 2.40 | .47 | ||||||||||||
Class 4 — actual return | 1,000.00 | 1,085.97 | 4.15 | .79 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,021.22 | 4.02 | .79 | ||||||||||||
International Growth and Income Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,071.75 | $ | 3.50 | .67 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,021.83 | 3.41 | .67 | ||||||||||||
Class 1A — actual return | 1,000.00 | 1,069.92 | 4.80 | .92 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,020.57 | 4.69 | .92 | ||||||||||||
Class 2 — actual return | 1,000.00 | 1,069.79 | 4.80 | .92 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,020.57 | 4.69 | .92 | ||||||||||||
Class 4 — actual return | 1,000.00 | 1,068.59 | 6.10 | 1.17 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,019.31 | 5.96 | 1.17 | ||||||||||||
Capital Income Builder | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,073.57 | $ | 2.82 | .54 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,022.48 | 2.75 | .54 | ||||||||||||
Class 1A — actual return | 1,000.00 | 1,072.29 | 4.13 | .79 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,021.22 | 4.02 | .79 | ||||||||||||
Class 2 — actual return | 1,000.00 | 1,071.26 | 4.12 | .79 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,021.22 | 4.02 | .79 | ||||||||||||
Class 4 — actual return | 1,000.00 | 1,071.03 | 5.43 | 1.04 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,019.96 | 5.30 | 1.04 |
208 American Funds Insurance Series
Table of Contents
Beginning account value 7/1/2019 | Ending account value 12/31/2019 | Expenses paid during period1 | Annualized expense ratio | |||||||||||||
Asset Allocation Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,084.13 | $ | 1.58 | .30 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,023.69 | 1.53 | .30 | ||||||||||||
Class 1A — actual return | 1,000.00 | 1,082.52 | 2.89 | .55 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,022.43 | 2.80 | .55 | ||||||||||||
Class 2 — actual return | 1,000.00 | 1,082.42 | 2.89 | .55 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,022.43 | 2.80 | .55 | ||||||||||||
Class 3 — actual return | 1,000.00 | 1,082.90 | 2.52 | .48 | ||||||||||||
Class 3 — assumed 5% return | 1,000.00 | 1,022.79 | 2.45 | .48 | ||||||||||||
Class 4 — actual return | 1,000.00 | 1,080.99 | 4.20 | .80 | ||||||||||||
Class��4 — assumed 5% return | 1,000.00 | 1,021.17 | 4.08 | .80 | ||||||||||||
Global Balanced Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,068.79 | $ | 3.86 | .74 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,021.48 | 3.77 | .74 | ||||||||||||
Class 1A — actual return | 1,000.00 | 1,067.15 | 5.11 | .98 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,020.27 | 4.99 | .98 | ||||||||||||
Class 2 — actual return | 1,000.00 | 1,067.14 | 5.16 | .99 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,020.21 | 5.04 | .99 | ||||||||||||
Class 4 — actual return | 1,000.00 | 1,065.63 | 6.46 | 1.24 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,018.95 | 6.31 | 1.24 | ||||||||||||
Bond Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,027.08 | $ | 2.04 | .40 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,023.19 | 2.04 | .40 | ||||||||||||
Class 1A — actual return | 1,000.00 | 1,025.83 | 3.32 | .65 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,021.93 | 3.31 | .65 | ||||||||||||
Class 2 — actual return | 1,000.00 | 1,025.29 | 3.32 | .65 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,021.93 | 3.31 | .65 | ||||||||||||
Class 4 — actual return | 1,000.00 | 1,023.86 | 4.59 | .90 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,020.67 | 4.58 | .90 | ||||||||||||
Global Bond Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,013.93 | $ | 2.99 | .59 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,022.23 | 3.01 | .59 | ||||||||||||
Class 1A — actual return | 1,000.00 | 1,012.09 | 4.26 | .84 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,020.97 | 4.28 | .84 | ||||||||||||
Class 2 — actual return | 1,000.00 | 1,012.71 | 4.26 | .84 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,020.97 | 4.28 | .84 | ||||||||||||
Class 4 — actual return | 1,000.00 | 1,011.15 | 5.53 | 1.09 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,019.71 | 5.55 | 1.09 | ||||||||||||
High-Income Bond Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,027.67 | $ | 2.66 | .52 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,022.58 | 2.65 | .52 | ||||||||||||
Class 1A — actual return | 1,000.00 | 1,026.78 | 3.93 | .77 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,021.32 | 3.92 | .77 | ||||||||||||
Class 2 — actual return | 1,000.00 | 1,025.96 | 3.93 | .77 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,021.32 | 3.92 | .77 | ||||||||||||
Class 3 — actual return | 1,000.00 | 1,027.04 | 3.58 | .70 | ||||||||||||
Class 3 — assumed 5% return | 1,000.00 | 1,021.68 | 3.57 | .70 | ||||||||||||
Class 4 — actual return | 1,000.00 | 1,024.88 | 5.21 | 1.02 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,020.06 | 5.19 | 1.02 |
See end of tables for footnotes.
American Funds Insurance Series 209
Table of Contents
Beginning account value 7/1/2019 | Ending account value 12/31/2019 | Expenses paid during period1 | Annualized expense ratio | |||||||||||||
Mortgage Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,010.94 | $ | 2.48 | .49 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,022.74 | 2.50 | .49 | ||||||||||||
Class 1A — actual return | 1,000.00 | 1,010.25 | 3.75 | .74 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,021.48 | 3.77 | .74 | ||||||||||||
Class 2 — actual return | 1,000.00 | 1,009.74 | 3.75 | .74 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,021.48 | 3.77 | .74 | ||||||||||||
Class 4 — actual return | 1,000.00 | 1,008.46 | 5.01 | .99 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,020.21 | 5.04 | .99 | ||||||||||||
Ultra-Short Bond Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,008.13 | $ | 1.92 | .38 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,023.29 | 1.94 | .38 | ||||||||||||
Class 1A — actual return | 1,000.00 | 1,008.13 | 2.08 | .41 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,023.14 | 2.09 | .41 | ||||||||||||
Class 2 — actual return | 1,000.00 | 1,007.15 | 3.19 | .63 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,022.03 | 3.21 | .63 | ||||||||||||
Class 3 — actual return | 1,000.00 | 1,007.58 | 2.88 | .57 | ||||||||||||
Class 3 — assumed 5% return | 1,000.00 | 1,022.33 | 2.91 | .57 | ||||||||||||
Class 4 — actual return | 1,000.00 | 1,006.17 | 4.45 | .88 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,020.77 | 4.48 | .88 | ||||||||||||
U.S.Government/AAA-Rated Securities Fund | ||||||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,009.49 | $ | 1.92 | .38 | % | ||||||||
Class 1 — assumed 5% return | 1,000.00 | 1,023.29 | 1.94 | .38 | ||||||||||||
Class 1A — actual return | 1,000.00 | 1,008.69 | 3.19 | .63 | ||||||||||||
Class 1A — assumed 5% return | 1,000.00 | 1,022.03 | 3.21 | .63 | ||||||||||||
Class 2 — actual return | 1,000.00 | 1,008.33 | 3.19 | .63 | ||||||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,022.03 | 3.21 | .63 | ||||||||||||
Class 3 — actual return | 1,000.00 | 1,008.76 | 2.84 | .56 | ||||||||||||
Class 3 — assumed 5% return | 1,000.00 | 1,022.38 | 2.85 | .56 | ||||||||||||
Class 4 — actual return | 1,000.00 | 1,007.70 | 4.45 | .88 | ||||||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,020.77 | 4.48 | .88 |
210 American Funds Insurance Series
Table of Contents
Beginning account value 7/1/2019 | Ending account value 12/31/2019 | 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 | $ | 1,093.69 | $ | 2.01 | .38 | % | $ | 3.85 | .73 | % | ||||||||||||
Class P1 — assumed 5% return | 1,000.00 | 1,023.29 | 1.94 | .38 | 3.72 | .73 | ||||||||||||||||||
Class P2 — actual return | 1,000.00 | 1,092.56 | 3.32 | .63 | 5.22 | .99 | ||||||||||||||||||
Class P2 — assumed 5% return | 1,000.00 | 1,022.03 | 3.21 | .63 | 5.04 | .99 | ||||||||||||||||||
Managed Risk International Fund |
| |||||||||||||||||||||||
Class P1 — actual return | $ | 1,000.00 | $ | 1,059.67 | $ | 1.71 | .33 | % | $ | 4.36 | .84 | % | ||||||||||||
Class P1 — assumed 5% return | 1,000.00 | 1,023.54 | 1.68 | .33 | 4.28 | .84 | ||||||||||||||||||
Class P2 — actual return | 1,000.00 | 1,058.14 | 3.32 | .64 | 5.91 | 1.14 | ||||||||||||||||||
Class P2 — assumed 5% return | 1,000.00 | 1,021.98 | 3.26 | .64 | 5.80 | 1.14 | ||||||||||||||||||
Managed Risk Blue Chip Income and Growth Fund |
| |||||||||||||||||||||||
Class P1 — actual return | $ | 1,000.00 | $ | 1,070.42 | $ | 1.77 | .34 | % | $ | 3.86 | .74 | % | ||||||||||||
Class P1 — assumed 5% return | 1,000.00 | 1,023.49 | 1.73 | .34 | 3.77 | .74 | ||||||||||||||||||
Class P2 — actual return | 1,000.00 | 1,069.12 | 3.34 | .64 | 5.42 | 1.04 | ||||||||||||||||||
Class P2 — assumed 5% return | 1,000.00 | 1,021.98 | 3.26 | .64 | 5.30 | 1.04 | ||||||||||||||||||
Managed Risk Growth-Income Fund |
| |||||||||||||||||||||||
Class P1 — actual return | $ | 1,000.00 | $ | 1,069.78 | $ | 1.88 | .36 | % | $ | 3.50 | .67 | % | ||||||||||||
Class P1 — assumed 5% return | 1,000.00 | 1,023.39 | 1.84 | .36 | 3.41 | .67 | ||||||||||||||||||
Class P2 — actual return | 1,000.00 | 1,068.16 | 3.18 | .61 | 4.80 | .92 | ||||||||||||||||||
Class P2 — assumed 5% return | 1,000.00 | 1,022.13 | 3.11 | .61 | 4.69 | .92 | ||||||||||||||||||
Managed Risk Asset Allocation Fund |
| |||||||||||||||||||||||
Class P1 — actual return | $ | 1,000.00 | $ | 1,077.11 | $ | 1.88 | .36 | % | $ | 3.40 | .65 | % | ||||||||||||
Class P1 — assumed 5% return | 1,000.00 | 1,023.39 | 1.84 | .36 | 3.31 | .65 | ||||||||||||||||||
Class P2 — actual return | 1,000.00 | 1,075.10 | 3.19 | .61 | 4.71 | .90 | ||||||||||||||||||
Class P2 — assumed 5% return | 1,000.00 | 1,022.13 | 3.11 | .61 | 4.58 | .90 |
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. |
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Liquidity Risk Management Program
The series has adopted a liquidity risk management program (the “program”). The series’ board has designated Capital Research and Management Company (“CRMC”) as the administrator of the program. Personnel of CRMC or its affiliates conduct theday-to-day operation of the program pursuant to policies and procedures administered by the Capital Group Liquidity Risk Management Committee.
Under the program, CRMC manages each fund’s liquidity risk, which is the risk that the fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the fund. This risk is managed by monitoring the degree of liquidity of each fund’s investments, limiting the amount of each fund’s illiquid investments, and utilizing various risk management tools and facilities available to each fund for meeting shareholder redemptions, among other means. CRMC’s process of determining the degree of liquidity of each fund’s investments is supported by one or more third-party liquidity assessment vendors.
The series’ board reviewed a report prepared by CRMC regarding the operation and effectiveness of the program for the period December 1, 2018, through September 30, 2019. No significant liquidity events impacting any of the funds were noted in the report. In addition, CRMC provided its assessment that the program had been effective in managing each fund’s liquidity risk.
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American Funds Insurance Series 221
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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 | ||||
William H. Baribault, 1945 | 2009 | Chairman of the Board and CEO, Oakwood Advisors (private investment and consulting); former CEO and President, Richard Nixon Foundation | 89 | General Finance Corporation | ||||
James G. Ellis, 1947 | 2010 | Professor of Marketing and former Dean, Marshall School of Business, University of Southern California | 99 | Mercury General Corporation | ||||
Nariman Farvardin, 1956 | 2018 | President, Stevens Institute of Technology | 86 | 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) | 86 | None | ||||
R. Clark Hooper, 1946 | 2010 | Private investor | 89 | None | ||||
Merit E. Janow,1958 | 2007 | Dean and Professor, Columbia University, School of International and Public Affairs | 88 | Mastercard Incorporated; Trimble Inc. | ||||
Margaret Spellings, 1957 Chairman of the Board (Independent andNon-Executive) | 2010 | CEO, Texas 2036; former President, Margaret Spellings & Company (public policy and strategic consulting); former President, The University of North Carolina; former President, George W. Bush Foundation | 90 | None | ||||
Alexandra Trower, 1964 | 2018 | Executive Vice President, Global Communications and Corporate Officer, The Estée Lauder Companies | 85 | None |
Interested trustees4,5
Name, year of birth and | Year first | Principal occupation(s) during past five years | Number of | Other directorships3 | ||||
Donald D. O’Neal, 1960Co-President | 1998 | Partner — Capital International Investors, Capital Research and Management Company; Partner — Capital International Investors, Capital Bank and Trust Company;6Director, Capital Research and Management Company | 35 | None | ||||
Michael C. Gitlin, 1970 | 2019 | Vice Chairman and Director, Capital Research and Management Company; 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 | 85 | 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 Capital Group website at capitalgroup.com. The address for all trustees and officers of the series is 333 South Hope Street, Los Angeles, CA 90071, Attention: Secretary.
222 American Funds Insurance Series
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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; Partner — Capital World Investors, Capital Bank and Trust Company;6Director, The Capital Group Companies, Inc.6 | ||
Maria Manotok, 1974 Executive Vice President | 2012 | Senior Vice President and Senior Counsel — Fund Business Management Group, Capital Research and Management Company; Senior Vice President, Senior Counsel and Director, Capital International, Inc.;6 Director, Capital Group Investment Management Limited6 | ||
John H. Smet, 1956 Senior Vice President | 1994 | Partner — Capital Fixed Income Investors, Capital Research and Management Company | ||
Martin Jacobs,1962 Vice President | 2016 | Partner — Capital Research Global Investors, Capital Research and Management Company | ||
Carl M. Kawaja, 1964 Vice President | 2008 | Partner — Capital World Investors, Capital Research and Management Company; Chairman and Director, Capital Research and Management Company; Partner — Capital World Investors, Capital Bank and Trust Company;6Director, The Capital Group Companies, Inc.6 | ||
Sung Lee, 1966 Vice President | 2008 | Partner — Capital Research Global Investors, Capital International, Inc.6 | ||
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 | ||
Sandra Chuon,1972 Assistant Treasurer | 2019 | Assistant Vice President — Investment Operations, Capital Research and Management Company | ||
Brian C. Janssen,1972 Assistant Treasurer | 2015 | 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, 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. |
American Funds Insurance Series 223
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Office of the series
333 South Hope Street
Los Angeles, CA 90071-1406
Investment adviser
Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406
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
224 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 Capital Group website at capitalgroup.com.
“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on the Capital Group 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 Capital Group website.
Complete December 31, 2019, 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 FormNPORT-P. 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, 2020, 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.
American Funds Distributors, Inc., member FINRA.
© 2020 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 superior outcomes.
Aligned with investor success | The Capital System | American Funds Insurance Series superior outcomes | ||
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 28 years of investment experience, including 23 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 comparable Lipper indexes in 90% of10-year periods and 100% of20-year periods.2Our fixed income funds have helped investors achieve diversification through attention to correlation between bonds and equities.3We strive to keep management fees competitive. Over the past 20 years, most funds’ fees have been below industry averages.4 |
1 | Portfolio manager experience as of the American Funds Insurance Series prospectus dated May 1, 2020. |
2 | Based on Class 1 share results for rolling periods through December 31, 2019. Periods covered are the shorter of the fund’s lifetime or since the inception date of the comparable Lipper index or average. The comparable Lipper indexes are: Global Funds Index (Global Growth Fund, Global Growth and Income 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) and Balanced Funds Index (Asset Allocation Fund). The Lipper GlobalSmall-/Mid-Cap Funds Average was used for Global Small Capitalization Fund. Lipper source: Refinitiv Lipper. There have been periods when the fund has lagged the index. |
3 | Based on Class 1 share results as of December 31, 2019. Four of our five fixed income funds showed a three-year correlation below 0.1. Standard & Poor’s 500 Composite Index was used as an equity market proxy. Correlation based on monthly total returns. Correlation is a statistical measure of how two securities move in relation to each other. A correlation ranges from –1 to 1. A positive correlation close to 1 implies that as one security moves, either up or down, the other security will move in “lockstep,” in the same direction. A negative correlation close to –1 indicates that the securities have moved in the opposite direction. |
4 | Based on management fees for the20-year period ended December 31, 2019, versus comparable Lipper categories, excluding funds of funds. |
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies. |
Lit. No.INGEARX-998-0220P
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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, 2019, 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”). During the fiscal year ended December 31, 2019, however, the Code has been amended to reflect changes to the titles of 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: |
2018 | 2019 | |||||||
(a) Audit Fees | $ | 105,019 | $ | 108,167 | ||||
(b) Audit-Related Fees | $ | 0 | $ | 0 | ||||
(c) Tax Fees | $ | 60,895 | $ | 52,197 | ||||
(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:
2018 | 2019 | |||||||
(b) Audit-Related Fees | $ | 0 | $ | 0 | ||||
(c) Tax Fees | $ | 0 | $ | 0 | ||||
(d) All Other Fees | $ | 328,928 | $ | 87,316 |
(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 2018 and 2019 were $452,746 and $149,215, 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 most recent fiscal-half year 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.
(4) 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 9, 2020
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 9, 2020
By: | /s/ Gregory R. Kingston | |
Gregory R. Kingston | ||
Treasurer |
Date: March 9, 2020