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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-07238
SUNAMERICA SERIES TRUST
(Exact name of registrant as specified in charter)
21650 Oxnard Street, Woodland Hills, CA 93167
(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: June 30, 2020
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
Dear SunAmerica Series Trust Investor
We are pleased to present the SunAmerica Series Trust semiannual 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 June 30, 2020.
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, are not a deposit or obligation of any bank, and are 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 June 30, 2020 |
(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 January 1, 2020 and held until June 30, 2020. 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 June 30, 2020”, to estimate the expenses you paid on your account during this period. The “Expenses Paid During the Six Months Ended June 30, 2020” 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 June 30, 2020” 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 June 30, 2020” 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 June 30, 2020” 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) June 30, 2020 |
(unaudited)
Actual | Hypothetical | |||||||||||||||||||||||||||
Portfolio | Beginning Account Value at January 1, 2020 | Ending Account Value Using Actual Return at June 30, 2020 | Expenses Paid During the Six Months Ended June 30, 2020* | Beginning Account Value at January 1, 2020 | Ending Account Value Using a Hypothetical 5% Assumed Return at June 30, 2020 | Expenses Paid During the Six Months Ended June 30, 2020* | Annualized Expense Ratio* | |||||||||||||||||||||
SA American Funds Asset Allocation | ||||||||||||||||||||||||||||
Class 1 #@ | $ | 1,000.00 | $984.36 | $ | 1.33 | $ | 1,000.00 | $ | 1,023.52 | $ | 1.36 | 0.27 | % | |||||||||||||||
Class 3 #@ | $ | 1,000.00 | $982.98 | $ | 2.56 | $ | 1,000.00 | $ | 1,022.28 | $ | 2.61 | 0.52 | % | |||||||||||||||
SA American Funds Global Growth | ||||||||||||||||||||||||||||
Class 1 #@ | $ | 1,000.00 | $1,040.22 | $ | 1.42 | $ | 1,000.00 | $ | 1,023.47 | $ | 1.41 | 0.28 | % | |||||||||||||||
Class 3 #@ | $ | 1,000.00 | $1,039.27 | $ | 2.69 | $ | 1,000.00 | $ | 1,022.23 | $ | 2.66 | 0.53 | % | |||||||||||||||
SA American Funds Growth | ||||||||||||||||||||||||||||
Class 1 #@ | $ | 1,000.00 | $1,119.07 | $ | 1.48 | $ | 1,000.00 | $ | 1,023.47 | $ | 1.41 | 0.28 | % | |||||||||||||||
Class 3 #@ | $ | 1,000.00 | $1,118.43 | $ | 2.79 | $ | 1,000.00 | $ | 1,022.23 | $ | 2.66 | 0.53 | % | |||||||||||||||
SA American Funds Growth-Income | ||||||||||||||||||||||||||||
Class 1 #@ | $ | 1,000.00 | $962.44 | $ | 1.41 | $ | 1,000.00 | $ | 1,023.42 | $ | 1.46 | 0.29 | % | |||||||||||||||
Class 3 #@ | $ | 1,000.00 | $961.47 | $ | 2.63 | $ | 1,000.00 | $ | 1,022.18 | $ | 2.72 | 0.54 | % | |||||||||||||||
SA American Funds VCP Managed Allocation | ||||||||||||||||||||||||||||
Class 1 #@ | $ | 1,000.00 | $1,005.40 | $ | 1.35 | $ | 1,000.00 | $ | 1,023.52 | $ | 1.36 | 0.27 | % | |||||||||||||||
Class 3 #@ | $ | 1,000.00 | $1,004.06 | $ | 2.59 | $ | 1,000.00 | $ | 1,022.28 | $ | 2.61 | 0.52 | % |
* | Expenses are equal to the Portfolio’s annualized expense ratio multiplied by the average account value over the period, multiplied by 182 days divided by 366 (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 June 30, 2020” 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 June 30, 2020” 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 June 30, 2020” 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 — June 30, 2020 — (unaudited)
Industry Allocation*
Asset Allocation Investment Companies | 100.0 | % | ||
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* | Calculated as a percentage of net assets. |
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SunAmerica Series Trust SA American Funds Asset Allocation Portfolio
PORTFOLIO OF INVESTMENTS — June 30, 2020 — (unaudited)
Shares | Value (Note 2) | |||||||
REGISTERED INVESTMENT COMPANIES — 100.0% | ||||||||
Asset Allocation Investment Companies — 100.0% | ||||||||
American Funds Insurance Series® — Asset Allocation Fund, Class 1 | 52,001,303 | $ | 1,220,990,593 | |||||
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TOTAL INVESTMENTS | 100.0 | % | 1,220,990,593 | |||||
Liabilities in excess of other assets | (0.0 | ) | (500,459 | ) | ||||
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NET ASSETS | 100.0 | % | $ | 1,220,490,134 | ||||
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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 June 30, 2020 (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 | $ | 1,220,990,593 | $ | — | $ | — | $ | 1,220,990,593 | ||||||||
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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 — June 30, 2020 — (unaudited)
Industry Allocation*
International Equity Investment Companies | 104.8 | % | ||
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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 — June 30, 2020 — (unaudited)
Shares | Value (Note 2) | |||||||
REGISTERED INVESTMENT COMPANIES — 104.8% | ||||||||
International Equity Investment Companies — 104.8% | ||||||||
American Funds Insurance Series® — Global Growth Fund, Class 1 | 11,654,173 | $ | 383,538,848 | |||||
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TOTAL INVESTMENTS | 104.8 | % | 383,538,848 | |||||
Liabilities in excess of other assets | (4.8 | ) | (17,605,124 | ) | ||||
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NET ASSETS | 100.0 | % | $ | 365,933,724 | ||||
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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 June 30, 2020 (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 | $ | 383,538,848 | $ | — | $ | — | $ | 383,538,848 | ||||||||
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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 — June 30, 2020 — (unaudited)
Industry Allocation*
Domestic Equity Investment Companies | 104.6 | % | ||
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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 — June 30, 2020 — (unaudited)
Shares | Value (Note 2) | |||||||
REGISTERED INVESTMENT COMPANIES — 104.6% | ||||||||
Domestic Equity Investment Companies — 104.6% | ||||||||
American Funds Insurance Series ® — Growth Fund, Class 1 | 4,802,149 | $ | 425,470,422 | |||||
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TOTAL INVESTMENTS | 104.6 | % | 425,470,422 | |||||
Liabilities in excess of other assets | (4.6 | ) | (18,729,419 | ) | ||||
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NET ASSETS | 100.0 | % | $ | 406,741,003 | ||||
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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 June 30, 2020 (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 | $ | 425,470,422 | $ | — | $ | — | $ | 425,470,422 | ||||||||
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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 — June 30, 2020 — (unaudited)
Industry Allocation*
Domestic Equity Investment Companies | 101.2 | % | ||
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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 — June 30, 2020 — (unaudited)
Shares | Value (Note 2) | |||||||
REGISTERED INVESTMENT COMPANIES — 101.2% | ||||||||
Domestic Equity Investment Companies — 101.2% | ||||||||
American Funds Insurance Series® — Growth-Income Fund, Class 1 | 5,897,971 | $ | 279,563,821 | |||||
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TOTAL INVESTMENTS | 101.2 | % | 279,563,821 | |||||
Liabilities in excess of other assets | (1.2 | ) | (3,376,635 | ) | ||||
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NET ASSETS | 100.0 | % | $ | 276,187,186 | ||||
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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 June 30, 2020 (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 | $ | 279,563,821 | $ | — | $ | — | $ | 279,563,821 | ||||||||
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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 — June 30, 2020 — (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 — June 30, 2020 — (unaudited)
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 | 149,988,957 | $ | 1,933,357,650 | |||||
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TOTAL INVESTMENTS | 100.1 | % | 1,933,357,650 | |||||
Liabilities in excess of other assets | (0.1 | ) | (2,078,983 | ) | ||||
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NET ASSETS | 100.0 | % | $ | 1,931,278,667 | ||||
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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 June 30, 2020 (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 | $ | 1,933,357,650 | $ | — | $ | — | $ | 1,933,357,650 | ||||||||
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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
June 30, 2020 — (unaudited)
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)* | $ | 1,220,990,593 | $ | 383,538,848 | $ | 425,470,422 | $ | 279,563,821 | $ | 1,933,357,650 | ||||||||||
Receivable for: | ||||||||||||||||||||
Fund shares sold | 105,113 | — | — | — | — | |||||||||||||||
Prepaid expenses and other assets | 9,336 | 8,020 | 7,881 | 7,685 | 11,644 | |||||||||||||||
Due from investment adviser for expense reimbursements/fee waivers | 596,530 | 217,579 | 205,007 | 137,209 | 1,110,908 | |||||||||||||||
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Total assets | 1,221,701,572 | 383,764,447 | 425,683,310 | 279,708,715 | 1,934,480,202 | |||||||||||||||
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LIABILITIES: | ||||||||||||||||||||
Payable for: | ||||||||||||||||||||
Fund shares redeemed | 1,653 | 17,380,105 | 18,483,910 | 3,195,246 | 1,082,007 | |||||||||||||||
Investment advisory and management fees | 845,084 | 295,287 | 290,426 | 194,379 | 1,507,661 | |||||||||||||||
Service fees | 247,414 | 77,646 | 85,331 | 57,101 | 396,711 | |||||||||||||||
Transfer agent fees | 307 | 139 | 348 | 348 | 200 | |||||||||||||||
Trustees’ fees and expenses | — | 2,470 | 1,210 | 1,368 | 6,731 | |||||||||||||||
Other accrued expenses | 116,980 | 75,076 | 81,082 | 73,087 | 208,225 | |||||||||||||||
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Total liabilities | 1,211,438 | 17,830,723 | 18,942,307 | 3,521,529 | 3,201,535 | |||||||||||||||
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NET ASSETS | $ | 1,220,490,134 | $ | 365,933,724 | $ | 406,741,003 | $ | 276,187,186 | $ | 1,931,278,667 | ||||||||||
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NET ASSETS REPRESENTED BY: | ||||||||||||||||||||
Paid-in capital | 1,160,478,060 | 276,276,531 | 266,475,947 | 220,276,579 | 1,645,594,711 | |||||||||||||||
Total accumulated earnings (loss) | 60,012,074 | 89,657,193 | 140,265,056 | 55,910,607 | 285,683,956 | |||||||||||||||
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NET ASSETS | $ | 1,220,490,134 | $ | 365,933,724 | $ | 406,741,003 | $ | 276,187,186 | $ | 1,931,278,667 | ||||||||||
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Class 1 (unlimited shares authorized): | ||||||||||||||||||||
Net assets | $ | 5,566,837 | $ | 297,580 | $ | 426,390 | $ | 337,732 | $ | 234,377 | ||||||||||
Shares of beneficial interest issued and outstanding | 384,523 | 26,138 | 31,724 | 29,299 | 15,743 | |||||||||||||||
Net asset value, offering and redemption price per share | $ | 14.48 | $ | 11.38 | $ | 13.44 | $ | 11.53 | $ | 14.89 | ||||||||||
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Class 3 (unlimited shares authorized): | ||||||||||||||||||||
Net assets | $ | 1,214,923,297 | $ | 365,636,144 | $ | 406,314,613 | $ | 275,849,454 | $ | 1,931,044,290 | ||||||||||
Shares of beneficial interest issued and outstanding | 84,126,868 | 32,135,627 | 30,310,013 | 24,036,997 | 130,024,552 | |||||||||||||||
Net asset value, offering and redemption price per share | $ | 14.44 | $ | 11.38 | $ | 13.41 | $ | 11.48 | $ | 14.85 | ||||||||||
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*Cost | ||||||||||||||||||||
Investment securities (unaffiliated) | $ | 1,172,829,530 | $ | 313,666,189 | $ | 347,278,347 | $ | 270,306,566 | $ | 1,787,974,523 | ||||||||||
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See Notes To Financial Statements
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SUNAMERICA SERIES TRUST
For the Six Months Ended June 30, 2020 — (unaudited)
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) | $ | 5,666,130 | $ | 845,025 | $ | 1,171,359 | $ | 1,241,122 | $ | 29,059,142 | ||||||||||
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Total investment income | 5,666,130 | 845,025 | 1,171,359 | 1,241,122 | 29,059,142 | |||||||||||||||
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EXPENSES: | ||||||||||||||||||||
Investment advisory and management fees | 4,878,420 | 1,713,262 | 1,610,244 | 1,125,232 | 9,055,570 | |||||||||||||||
Service fees | 1,428,832 | 450,535 | 473,202 | 330,609 | 2,382,866 | |||||||||||||||
Transfer agent fees | 422 | 504 | 541 | 541 | 424 | |||||||||||||||
Custodian and accounting fees | 5,837 | 5,838 | 5,836 | 5,837 | 5,836 | |||||||||||||||
Reports to shareholders | 51,079 | 20,045 | 17,753 | 13,757 | 98,456 | |||||||||||||||
Audit and tax fees | 13,861 | 13,861 | 13,861 | 13,861 | 13,861 | |||||||||||||||
Legal fees | 6,348 | 4,531 | 3,632 | 3,632 | 7,238 | |||||||||||||||
Trustees’ fees and expenses | 11,260 | 4,839 | 4,179 | 3,300 | 22,455 | |||||||||||||||
Other expenses | 11,308 | 11,749 | 11,046 | 12,077 | 16,933 | |||||||||||||||
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Total expenses before fee waivers and expense reimbursements | 6,407,367 | 2,225,164 | 2,140,294 | 1,508,846 | 11,603,639 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net (fees waived and expenses reimbursed)/recouped by investment adviser (Note 4) | (3,443,591 | ) | (1,262,404 | ) | (1,136,643 | ) | (794,282 | ) | (6,672,526 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net expenses | 2,963,776 | 962,760 | 1,003,651 | 714,564 | 4,931,113 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net investment income (loss) | 2,702,354 | (117,735 | ) | 167,708 | 526,558 | 24,128,029 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||||||||||||||
Net realized gain (loss) on investments (unaffiliated) | 3,632,603 | 2,173,279 | 3,441,167 | 3,383,307 | 8,635,075 | |||||||||||||||
Net realized gain (loss) from capital gain distributions received from underlying funds (unaffiliated) | 5,630,398 | 10,887,773 | 10,204,156 | 7,427,307 | 102,926,505 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized gain (loss) on investments | 9,263,001 | 13,061,052 | 13,645,323 | 10,810,614 | 111,561,580 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net change in unrealized appreciation (depreciation) on investments (unaffiliated) | (31,615,369 | ) | 263,934 | 30,067,170 | (21,467,817 | ) | (132,530,247 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized and unrealized gain (loss) on investments | (22,352,368 | ) | 13,324,986 | 43,712,493 | (10,657,203 | ) | (20,968,667 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (19,650,014 | ) | $ | 13,207,251 | $ | 43,880,201 | $ | (10,130,645 | ) | $ | 3,159,362 | ||||||||
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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 six months ended June 30, 2020 (unaudited) | For the year ended December 31, 2019 | For the six months ended June 30, 2020 (unaudited) | For the year ended December 31, 2019 | For the six months ended June 30, 2020 (unaudited) | For the year ended December 31, 2019 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 2,702,354 | $ | 17,832,965 | $ | (117,735 | ) | $ | 3,008,690 | $ | 167,708 | $ | 1,626,589 | |||||||||||
Net realized gain (loss) on investments | 9,263,001 | 53,198,127 | 13,061,052 | 48,949,222 | 13,645,323 | 49,238,095 | ||||||||||||||||||
Net unrealized gain (loss) on investments | (31,615,369 | ) | 110,621,498 | 263,934 | 62,726,695 | 30,067,170 | 40,453,808 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) in net assets resulting from operations | (19,650,014 | ) | 181,652,590 | 13,207,251 | 114,684,607 | 43,880,201 | 91,318,492 | |||||||||||||||||
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| |||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||||||||||
Distributable earnings — Class 1 | — | (271,331 | ) | — | (25,901 | ) | — | (315 | ) | |||||||||||||||
Distributable earnings — Class 3 | — | (70,044,680 | ) | — | (46,412,353 | ) | — | (1,646,049 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | — | (70,316,011 | ) | — | (46,438,254 | ) | — | (1,646,364 | ) | |||||||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions (Note 6) | 64,438,079 | 273,639,381 | (38,173,217 | ) | (30,883,101 | ) | (15,121,912 | ) | (17,249,591 | ) | ||||||||||||||
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|
|
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|
|
| |||||||||||||
TOTAL INCREASE (DECREASE) IN NET ASSETS | 44,788,065 | 384,975,960 | (24,965,966 | ) | 37,363,252 | 28,758,289 | 72,422,537 | |||||||||||||||||
NET ASSETS: | ||||||||||||||||||||||||
Beginning 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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| |||||||||||||
End of period | $ | 1,220,490,134 | $ | 1,175,702,069 | $ | 365,933,724 | $ | 390,899,690 | $ | 406,741,003 | $ | 377,982,714 | ||||||||||||
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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 six months ended June 30, 2020 (unaudited) | For the year ended December 31, 2019 | For the six months ended June 30, 2020 (unaudited) | For the year ended December 31, 2019 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 526,558 | $ | 3,632,580 | $ | 24,128,029 | $ | 1,944,339 | ||||||||
Net realized gain (loss) on investments | 10,810,614 | 35,596,964 | 111,561,580 | 25,454,542 | ||||||||||||
Net unrealized gain (loss) on investments | (21,467,817 | ) | 21,535,910 | (132,530,247 | ) | 283,553,888 | ||||||||||
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|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (10,130,645 | ) | 60,765,454 | 3,159,362 | 310,952,769 | |||||||||||
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| |||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||
Distributable earnings — Class 1 | — | (566 | ) | — | (4,391 | ) | ||||||||||
Distributable earnings — Class 3 | — | (1,226,850 | ) | — | (29,070,206 | ) | ||||||||||
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| |||||||||
Total distributions to shareholders | — | �� | (1,227,416 | ) | — | (29,074,597 | ) | |||||||||
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|
| |||||||||
Net increase (decrease) in net assets resulting from capital share transactions (Note 6) | 499,751 | (18,949,816 | ) | (54,334,435 | ) | 41,072,316 | ||||||||||
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|
|
|
|
|
| |||||||||
TOTAL INCREASE (DECREASE) IN NET ASSETS | (9,630,894 | ) | 40,588,222 | (51,175,073 | ) | 322,950,488 | ||||||||||
NET ASSETS: | ||||||||||||||||
Beginning of period | 285,818,080 | 245,229,858 | 1,982,453,740 | 1,659,503,252 | ||||||||||||
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| |||||||||
End of period | $ | 276,187,186 | $ | 285,818,080 | $ | 1,931,278,667 | $ | 1,982,453,740 | ||||||||
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See Notes to Financial Statements
| ||
17 |
Table of Contents
SUNAMERICA SERIES TRUST
June 30, 2020 — (unaudited)
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 Rule 12b-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:
The SA 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.
The SA 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.
The SA 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.
| ||
18 |
Table of Contents
The SA 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.
The SA American Funds VCP Managed Allocation Portfolio seeks long-term capital growth and income while seeking to manage volatility and provide downside protection. It invests 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 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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19 |
Table of Contents
The summary of the Portfolios’ assets and liabilities classified in the fair value hierarchy as of June 30, 2020, 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 Capital Group Central Cash Fund (“CCF”), a fund within the Capital Group Central Fund Series (“Central Funds”), 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 State Street Institutional U.S. Government Money Market Fund held by the managed risk funds is managed to maintain a $1.00 net asset value per share. The net asset value of each share class of each managed risk fund is calculated based on the reported net asset values of the underlying funds in which each fund invests.
Exchange-traded options and futures are generally valued at the official closing price for options and official settlement price for futures of the exchange or market on which such instruments are traded, as of the close of business on the day such instruments are being valued. Forward currency contracts are valued at the mean of representative quoted bid and ask prices, generally based on prices supplied by one or more pricing vendors. Interest rate swaps and credit default swaps are generally valued by pricing vendors based on market inputs that include the index and term of index, reset frequency, payer/receiver, currency and pay frequency.
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Table of Contents
Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the AFIS investment adviser are fair valued as determined in good faith under fair value guidelines adopted by authority of the AFIS board of trustees as further described. The AFIS investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The AFIS investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. In addition, the closing prices of equity securities and futures that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of each fund is determined. Fair valuations and valuations of investments and futures that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.
Processes and structure — The AFIS board of trustees has delegated authority to the AFIS investment adviser to make fair value determinations, subject to board oversight. The AFIS investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the AFIS investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees. The AFIS board and audit committee also regularly review reports that describe fair value determinations and methods.
The AFIS investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.
Securities Transactions, Investment Income, Expenses, Dividends and Distributions to Shareholders: Security transactions are recorded on a trade date basis. Interest income is accrued daily from settlement date except when collection is not expected. Realized gains and losses on the sale of investments are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date.
The Portfolios invest in Master Fund portfolios offered by American Funds including funds investing in fixed income securities. Distributions from income from the Master Funds, if any, are recorded to income on ex-dividend date. Distributions from net realized capital gains from the Master Funds, if any, are recorded to realized gains on ex-dividend date.
Expenses common to all Portfolios, not directly related to individual Portfolios are allocated among the Portfolios based upon relative net assets or other appropriate allocation methods. In all other respects, expenses are charged to each Portfolio as incurred on a specific identification basis.
The expenses included in the accompanying financial statements reflect the expenses of the Portfolios and do not include indirect expenses borne by each underlying Portfolio in connection with its investment in the underlying Portfolio.
Dividends from net investment income and capital gain distributions, if any, are paid annually. The Portfolios record dividends and distributions to their shareholders on the ex-dividend date.
The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts at fiscal year end based on their federal tax-basis treatment; temporary differences do not require reclassification. Net assets are not affected by these reclassifications.
Each Portfolio is considered a separate entity for tax purposes and intends to comply with the requirements of the Internal Revenue Code, as amended, applicable to regulated investment companies and distribute all of its taxable income, including any net capital gains on investments, to its shareholders. Each Portfolio also intends to distribute sufficient net investment income and net capital gains, if any, so that it will not be subject to excise tax on undistributed income and gains. Therefore, no federal income tax or excise tax provision is required.
The Portfolios recognize the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained, assuming examination by tax authorities. Management has analyzed each Portfolio’s tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years 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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Table of Contents
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. Adoption of the ASU had no material impact on the Portfolios.
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 |
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 | $ | 48,161,063 | $ | (1,186,559 | ) | $ | 46,974,504 | $ | 1,174,016,089 | |||||||
SA American Funds Global Growth | 69,872,659 | (270,726 | ) | 69,601,933 | 313,936,915 | |||||||||||
SA American Funds Growth | 78,192,075 | (1,240,120 | ) | 76,951,955 | 348,518,467 | |||||||||||
SA American Funds Growth-Income | 9,257,255 | (3,099,731 | ) | 6,157,524 | 273,406,297 | |||||||||||
SA American Funds VCP Managed Allocation | 145,383,127 | (63,982 | ) | 145,319,145 | 1,788,038,505 |
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.
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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 six months ended June 30, 2020, SAAMCo has agreed to waive advisory fees as follows:
Portfolio | Amount | |||
SA American Funds Asset Allocation | $ | 3,443,591 | ||
SA American Funds Global Growth | 1,262,404 | |||
SA American Funds Growth | 1,136,643 | |||
SA American Funds Growth-Income | 794,282 | |||
SA American Funds VCP Managed Allocation | 6,672,526 |
SAAMCo has contractually agreed to waive fees and/or reimburse expenses of the following Portfolio until April 30, 2021; 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, 2021 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 six months ended June 30, 2020, 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 six months ended June 30, 2020, no amounts were repaid to the Adviser, and there are no remaining balances subject to recoupment.
The Trust has entered into a master Transfer Agency and Service Agreement with VALIC Retirement Services Company (VRSCO), a wholly-owned subsidiary of VALIC, which is an affiliate of the Adviser. Under the agreement, VRSCO provides services, which include the issuance and redemption of shares, payment of dividends between the Trust and their “institutional” shareholders and certain shareholder reporting services including confirmation of transactions, statements of account and tax reporting. The Trust, and certain other mutual funds advised by SAAMCo pay VRSCO on an annual basis, a fee in the aggregate amount of $150,000 for transfer agency services provided, pursuant to the agreement. Accordingly, for the six months ended June 30, 2020, 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 six months ended June 30, 2020, service fees were paid (see Statement of Operations) based on the aforementioned rate.
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Note 5. Purchases and Sales of Investment Securities
The cost of purchases and proceeds from sales and maturities of long-term investments during the six months ended June 30, 2020 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 | $ | 77,697,133 | $ | 16,318,311 | $ | — | $ | — | ||||||||
SA American Funds Global Growth | 2,026,613 | 23,801,343 | — | — | ||||||||||||
SA American Funds Growth | 17,713,235 | 15,345,456 | — | — | ||||||||||||
SA American Funds Growth-Income | 13,902,204 | 10,926,347 | — | — | ||||||||||||
SA American Funds VCP Managed Allocation | 31,035,558 | 89,227,155 | — | — |
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 six months ended June 30, 2020 (unaudited) | For the year ended December 31, 2019 | For the six months ended June 30, 2020 (unaudited) | For the year ended December 31, 2019 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 97,334 | $ | 1,285,365 | 222,934 | $ | 3,239,870 | 5,619,069 | $ | 79,370,728 | 16,498,719 | $ | 237,438,124 | ||||||||||||||||||||
Reinvested dividends | — | — | 18,522 | 271,331 | — | — | 4,784,758 | 70,044,680 | ||||||||||||||||||||||||
Shares redeemed | (6,423 | ) | (88,851 | ) | (11,495 | ) | (169,328 | ) | (1,207,976 | ) | (16,129,163 | ) | (2,637,839 | ) | (37,185,296 | ) | ||||||||||||||||
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Net increase (decrease) | 90,911 | $ | 1,196,514 | 229,961 | $ | 3,341,873 | 4,411,093 | $ | 63,241,565 | 18,645,638 | $ | 270,297,508 | ||||||||||||||||||||
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SA American Funds Global Growth Portfolio | ||||||||||||||||||||||||||||||||
Class 1 | Class 3 | |||||||||||||||||||||||||||||||
For the six months ended June 30, 2020 (unaudited) | For the year ended December 31, 2019 | For the six months ended June 30, 2020 (unaudited) | For the year ended December 31, 2019 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 3,877 | $ | 40,503 | 7,893 | $ | 87,976 | 205,396 | $ | 2,160,700 | 874,642 | $ | 9,388,124 | ||||||||||||||||||||
Reinvested dividends | — | — | 2,390 | 25,901 | — | — | 4,278,941 | 46,412,353 | ||||||||||||||||||||||||
Shares redeemed | (254 | ) | (2,814 | ) | (283 | ) | (3,101 | ) | (3,758,928 | ) | (40,371,606 | ) | (8,051,947 | ) | (86,794,354 | ) | ||||||||||||||||
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Net increase (decrease) | 3,623 | $ | 37,689 | 10,000 | $ | 110,776 | (3,553,532 | ) | $ | (38,210,906 | ) | (2,898,364 | ) | $ | (30,993,877 | ) | ||||||||||||||||
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SA American Funds Growth Portfolio | ||||||||||||||||||||||||||||||||
Class 1 | Class 3 | |||||||||||||||||||||||||||||||
For the six months ended June 30, 2020 (unaudited) | For the year ended December 31, 2019 | For the six months ended June 30, 2020 (unaudited) | For the year ended December 31, 2019 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 19,646 | $ | 238,327 | 8,767 | $ | 100,063 | 1,511,123 | $ | 18,274,182 | 3,015,269 | $ | 32,193,311 | ||||||||||||||||||||
Reinvested dividends | — | — | 30 | 315 | — | — | 156,469 | 1,646,049 | ||||||||||||||||||||||||
Shares redeemed | (1,255 | ) | (16,663 | ) | (1,616 | ) | (19,369 | ) | (2,712,950 | ) | (33,617,758 | ) | (4,728,043 | ) | (51,169,960 | ) | ||||||||||||||||
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Net increase (decrease) | 18,391 | $ | 221,664 | 7,181 | $ | 81,009 | (1,201,827 | ) | $ | (15,343,576 | ) | (1,556,305 | ) | $ | (17,330,600 | ) | ||||||||||||||||
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SA American Funds Growth-Income Portfolio | ||||||||||||||||||||||||||||||||
Class 1 | Class 3 | |||||||||||||||||||||||||||||||
For the six months ended June 30, 2020 (unaudited) | For the year ended December 31, 2019 | For the six months ended June 30, 2020 (unaudited) | For the year ended December 31, 2019 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 16,240 | $ | 189,756 | 8,378 | $ | 94,666 | 1,398,255 | $ | 14,495,654 | 1,718,711 | $ | 18,733,207 | ||||||||||||||||||||
Reinvested dividends | — | — | 52 | 566 | — | — | 113,808 | 1,226,850 | ||||||||||||||||||||||||
Shares redeemed | (193 | ) | (2,108 | ) | (129 | ) | (1,517 | ) | (1,288,698 | ) | (14,183,551 | ) | (3,611,355 | ) | (39,003,588 | ) | ||||||||||||||||
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Net increase (decrease) | 16,047 | $ | 187,648 | 8,301 | $ | 93,715 | 109,557 | $ | 312,103 | (1,778,836 | ) | $ | (19,043,531 | ) | ||||||||||||||||||
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SA American Funds VCP Managed Allocation Portfolio | ||||||||||||||||||||||||||||||||
Class 1 | Class 3 | |||||||||||||||||||||||||||||||
For the six months ended June 30, 2020 (unaudited) | For the year ended December 31, 2019 | For the six months ended June 30, 2020 (unaudited) | For the year ended December 31, 2019 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | 7,591 | $ | 111,225 | 6,181 | $ | 85,928 | 2,208,614 | $ | 32,376,688 | 8,554,243 | $ | 117,397,960 | ||||||||||||||||||||
Reinvested dividends | — | — | 301 | 4,391 | — | — | 2,003,304 | 29,070,206 | ||||||||||||||||||||||||
Shares redeemed | (626 | ) | (8,844 | ) | (9,123 | ) | (135,373 | ) | (6,194,804 | ) | (86,813,504 | ) | (7,526,249 | ) | (105,350,796 | ) | ||||||||||||||||
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Net increase (decrease) | 6,965 | $ | 102,381 | (2,641 | ) | $ | (45,054 | ) | (3,986,190 | ) | $ | (54,436,816 | ) | 3,031,298 | $ | 41,117,370 | ||||||||||||||||
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Note 7. Line of Credit
The Trust has access to a $75 million committed unsecured line of credit and, along with certain other funds managed by the Adviser, a $50 million uncommitted unsecured line of credit. The committed and uncommitted lines of credit are renewable on an annual basis with State Street Bank and Trust Company (“State Street”), the Trust’s custodian. Interest is currently payable on the committed line of credit at the higher of the Federal Funds Rate (but not less than zero) plus 125 basis points or the One-Month London Interbank Offered Rate (but not less than zero) plus 125 basis points and State Street’s discretionary bid rate on the uncommitted line of credit. The Trust, on behalf of each of the Portfolios, has paid State Street for its own account, such Portfolio’s ratable portion of an upfront fee in an amount equal to $25,000 in the aggregate for the uncommitted line of credit made available by State Street to certain other funds managed by the Adviser, which are also party to the uncommitted line of credit. There is also a commitment fee of 25 basis points per annum on the daily unused portion of the committed line of credit. Borrowings under the line of credit will commence when the respective Portfolio’s cash shortfall exceeds $100,000.
For the six months ended June 30, 2020, the Portfolios did not utilize the line of credit.
Note 8. Transactions with Affiliates
At June 30, 2020, the following affiliates owned outstanding shares of the following Portfolios:
Holder | ||||||||||||
Portfolio | USL | AGL | VALIC | |||||||||
SA American Funds Asset Allocation | 6.52 | % | 89.53 | % | 3.95 | % | ||||||
SA American Funds Global Growth | 4.80 | % | 94.50 | % | 0.70 | % | ||||||
SA American Funds Growth | 4.81 | % | 93.74 | % | 1.45 | % | ||||||
SA American Funds Global-Income | 5.63 | % | 92.61 | % | 1.76 | % | ||||||
SA American Funds VCP Managed Allocation | 9.83 | % | 86.81 | % | 3.36 | % |
Note 9. Other Matters
An outbreak of respiratory disease caused by a novel coronavirus was first detected in China and subsequently spread internationally. This coronavirus has resulted in closing borders, enhanced health screenings, healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this coronavirus may last for an extended period of time including through the issue date of these financial statements and has resulted in substantial market volatility and may result in a significant economic downturn.
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SUNAMERICA SERIES TRUST
Selected data for a share of beneficial interest outstanding throughout each period
Period ended | Net Asset Value, beginning of period | Net investment income (loss)* | Net gain (loss) on investments (both realized and unrealized) | Total from investment operations | Dividends from net investment income | Dividend from net realized gain on investments | Total Distributions | Net Asset Value, end of period | Total Return** | Net Assets, end of period (000’s) | Ratio of expenses to average net assets(1)(2) | Ratio of net investment income (loss) to average net assets(1)(2)(3) | Portfolio turnover | |||||||||||||||||||||||||||||||||||||||
SA American Funds Asset Allocation Portfolio Class 1 |
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09/26/16#-12/31/16 | $ | 12.86 | $ | 0.18 | $ | 0.07 | $ | 0.25 | $ | — | $ | — | $ | — | $ | 13.11 | 1.94 | % | $ | 102 | 0.29 | %† | 5.35 | %† | 4 | % | ||||||||||||||||||||||||||
12/31/17 | 13.11 | 0.23 | 1.88 | 2.11 | (0.12 | ) | (0.25 | ) | (0.37 | ) | 14.85 | 16.10 | 201 | 0.28 | 1.64 | 1 | ||||||||||||||||||||||||||||||||||||
12/31/18 | 14.85 | 0.32 | (0.99 | ) | (0.67 | ) | (0.44 | ) | (0.80 | ) | (1.24 | ) | 12.94 | (4.58 | ) | 824 | 0.27 | 2.30 | 1 | |||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||
06/30/20@ | 14.71 | 0.06 | (0.29 | ) | (0.23 | ) | — | — | — | 14.48 | (1.56 | ) | 5,567 | 0.27 | † | 0.82 | † | 1 | ||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||
06/30/20@ | 14.69 | 0.03 | (0.28 | ) | (0.25 | ) | — | — | — | 14.44 | (1.70 | ) | 1,214,923 | 0.52 | † | 0.47 | † | 1 | ||||||||||||||||||||||||||||||||||
SA American Funds Global Growth Portfolio Class 1 |
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09/26/16#-12/31/16 | 11.64 | 0.09 | (0.58 | ) | (0.49 | ) | — | — | — | 11.15 | (4.21 | ) | 96 | 0.29 | † | 2.92 | † | 10 | ||||||||||||||||||||||||||||||||||
12/31/17 | 11.15 | 0.08 | 3.37 | 3.45 | (0.13 | ) | (1.34 | ) | (1.47 | ) | 13.13 | 31.51 | 126 | 0.28 | 0.64 | 1 | ||||||||||||||||||||||||||||||||||||
12/31/18 | 13.13 | 0.09 | (1.23 | ) | (1.14 | ) | (0.22 | ) | (2.62 | ) | (2.84 | ) | 9.15 | (9.12 | ) | 115 | 0.27 | 0.68 | 5 | |||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||
06/30/20@ | 10.94 | 0.01 | 0.43 | 0.44 | — | — | — | 11.38 | 4.02 | 298 | 0.28 | † | 0.22 | † | 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 | ||||||||||||||||||||||||||||||||||||
06/30/20@ | 10.95 | (0.00 | ) | 0.43 | 0.43 | — | — | — | 11.38 | 3.93 | 365,636 | 0.53 | † | (0.07 | )† | 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. |
@ | Unaudited |
(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 | 6/20†@ | ||||||||||||||||||
SA American Funds Asset Allocation Class 1 | — | % | 0.60 | %† | 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 | 0.60 | ||||||||||||||||||
SA American Funds Global Growth Class 1 | — | 0.70 | † | 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 | 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 |
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09/26/16#-12/31/16 | $ | 11.24 | $ | 0.08 | $ | 0.23 | $ | 0.31 | $ | — | $ | — | $ | — | $ | 11.55 | 2.76 | % | $ | 103 | 0.30 | %† | 2.63 | %† | 4 | % | ||||||||||||||||||||||||||
12/31/17 | 11.55 | 0.06 | 3.12 | 3.18 | (0.07 | ) | (1.51 | ) | (1.58 | ) | 13.15 | 28.24 | 132 | 0.28 | 0.48 | 1 | ||||||||||||||||||||||||||||||||||||
12/31/18 | 13.15 | (0.32 | ) | 0.41 | 0.09 | (0.19 | ) | (3.82 | ) | (4.01 | ) | 9.23 | (0.40 | ) | 57 | 0.27 | (2.25 | ) | 4 | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
06/30/20@ | 12.01 | 0.03 | | 1.40 | | 1.43 | — | — | — | 13.44 | 11.91 | 426 | 0.28 | † | 0.48 | † | 4 | |||||||||||||||||||||||||||||||||||
SA American Funds Growth Portfolio Class 3 |
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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 | |||||||||||||||||||||||||||||||||||||
06/30/20@ | 11.99 | 0.01 | 1.41 | 1.42 | — | | — | | — | 13.41 | 11.84 | 406,315 | 0.53 | † | 0.09 | † | 4 | |||||||||||||||||||||||||||||||||||
SA American Funds Growth-Income Portfolio Class 1 |
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09/26/16#-12/31/16 | 11.83 | 0.16 | 0.26 | 0.42 | — | — | — | 12.25 | 3.55 | 104 | 0.29 | † | 4.89 | † | 3 | |||||||||||||||||||||||||||||||||||||
12/31/17 | 12.25 | 0.18 | 2.47 | 2.65 | (0.23 | ) | (1.68 | ) | (1.91 | ) | 12.99 | 22.39 | 127 | 0.29 | 1.38 | 2 | ||||||||||||||||||||||||||||||||||||
12/31/18 | 12.99 | 0.06 | (0.17 | ) | (0.11 | ) | (0.41 | ) | (2.93 | ) | (3.34 | ) | 9.54 | (1.86 | ) | 47 | 0.28 | 0.45 | 4 | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
06/30/20@ | 11.98 | 0.04 | (0.49 | ) | (0.45 | ) | — | — | — | 11.53 | (3.76 | ) | 338 | 0.29 | † | 0.81 | † | 4 | ||||||||||||||||||||||||||||||||||
SA American Funds Growth-Income Portfolio Class 3 |
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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 | |||||||||||||||||||||||||||||||||||||
06/30/20@ | 11.94 | 0.02 | (0.48 | ) | (0.46 | ) | — | — | — | 11.48 | (3.85 | ) | 275,849 | 0.54 | † | 0.40 | † | | 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. |
@ | Unaudited |
(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 | 6/20†@ | ||||||||||||||||||
SA American Funds Growth Class 1 | — | % | 0.60 | %† | 0.60 | % | 0.60 | % | 0.60 | % | 0.60 | % | ||||||||||||
SA American Funds Growth Class 3 | 0.60 | 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 | 0.60 | |||||||||||||||||
SA American Funds Growth-Income Class 3 | 0.60 | 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 |
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09/26/16#-12/31/16 | $ | 12.66 | $ | 0.05 | $ | 0.16 | $ | 0.21 | $ | — | $ | — | $ | — | $ | 12.87 | 1.66 | % | $ | 102 | 0.28 | %† | 1.40 | %† | 2 | % | ||||||||||||||||||||||||||
12/31/17 | 12.87 | 0.07 | 1.82 | 1.89 | (0.11 | ) | (0.28 | ) | (0.39 | ) | 14.37 | 14.78 | 123 | 0.27 | 0.51 | 2 | ||||||||||||||||||||||||||||||||||||
12/31/18 | 14.37 | 0.22 | (0.92 | ) | (0.70 | ) | (0.28 | ) | (0.71 | ) | (0.99 | ) | 12.68 | (4.89 | ) | 145 | 0.27 | 1.56 | 103 | |||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||
06/30/20@ | 14.81 | 0.19 | (0.11 | ) | 0.08 | — | — | — | 14.89 | 0.54 | 234 | 0.27 | † | 2.77 | † | 2 | ||||||||||||||||||||||||||||||||||||
SA American Funds VCP Managed Allocation Portfolio Class 3 |
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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 | ||||||||||||||||||||||||||||||||||||
06/30/20@ | 14.79 | 0.18 | (0.12 | ) | 0.06 | — | — | — | 14.85 | 0.41 | 1,931,044 | 0.52 | † | 2.53 | † | 2 |
* | 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. |
@ | Unaudited |
(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 | 6/20†@ | ||||||||||||||||||
SA American Funds VCP Managed Allocation Class 1 | — | % | 0.70 | %† | 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 | 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
STATEMENT REGARDING LIQUIDITY RISK MANAGEMENT PROGRAM
Pursuant to Rule 22e-4 under the 1940 Act, the Portfolios have adopted a liquidity risk management program. SunAmerica Asset Management, LLC (the “Adviser” or “SunAmerica”), the investment adviser to the Trust, has been designated by the Board to administer the Portfolios’ liquidity risk management program (the “Program”). The Adviser has appointed a Liquidity Risk Management Committee (the “Committee”) comprised of certain officers as well as certain personnel of the Adviser. The Committee is subject to the oversight of the Adviser. The Adviser and the Committee are referred to collectively herein as the “Program Administrator.” The Program is designed to assess, manage and periodically review each Portfolio’s liquidity risk, based on factors specific to the circumstances of each Portfolio. “Liquidity risk” means the risk that a Portfolio could not meet requests to redeem shares issued by the Portfolio without significant dilution of remaining investors’ interests in the Portfolio. During the period, the Program Administrator provided the Board with a report addressing the operations of the program and assessing its adequacy and effectiveness of implementation.
During the period covered by the liquidity Program report to the Board, the Program supported each Portfolio’s ability to honor redemption requests timely and the Adviser’s management of each Portfolio’s liquidity profile, including during periods of market volatility and net redemptions. The Program Administrator reported that it has reviewed the Program and believes that the Program is reasonably designed to assess and manage the liquidity risk of each Portfolio, that the Program has been effectively implemented to monitor and respond to liquidity developments (where necessary) and is operating effectively, and that the Program addresses potential liquidity risks in connection with the management of the Portfolios. Furthermore, the Program Administrator reported that each Portfolio operated as a “Primarily Highly Liquid Fund” during the review period, and therefore, did not have to comply with the Highly Liquid Investment Minimum requirements. Finally, the Program Administrator reported that each Portfolio had no breaches of the limit on illiquid investments, and therefore, no Board notification or regulatory filings were required.
There can be no assurance that the Program will achieve its objectives in the future. Please refer to your Portfolio’s prospectus for more information regarding the Portfolio’s exposure to liquidity risk and other principal risks to which an investment in the Portfolio may be subject.
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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.
The accompanying report has not been audited by independent accountants and accordingly no opinions have been expressed thereon.
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Annuity Service Center P.O. Box 15570 Amarillo, TX 79105-5570
CHANGE SERVICE REQUESTED |
THISREPORTISNOTAUTHORIZEDFORDISTRIBUTIONTOPROSPECTIVEPURCHASERSUNLESSACCOMPANIEDORPRECEDEDBYACURRENTPROSPECTUS.
R4397SAR.13 (8/20)
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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 and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-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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Shown in the table on the following pages are American Funds Insurance Series’ semi-annual results for the period ended June 30, 2020. Also shown are the results of each fund’s applicable benchmark.
For additional information about the series, its investment results, holdings and portfolio managers, visit capitalgroup.com/individual/products/american-funds-insurance-series. html. You can also access information about Capital Group’s American Funds and read our insights about the markets, retirement, saving for college, investing fundamentals and more at capitalgroup.com.
American Funds Insurance Series | 1 |
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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 and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
For periods ended June 30, 2020, with all distributions reinvested
Class 1 shares | Inception | Cumulative total returns | Average annual total returns | |||||||||
date | 6 months | 1 year | 5 years | 10 years | Lifetime | |||||||
Global Growth Fund | 4/30/97 | 4.22% | 16.41% | 11.17% | 13.07% | 10.18% | ||||||
MSCI All Country World Index (ACWI)1 | -6.25 | 2.11 | 6.46 | 9.16 | 6.03 | |||||||
Global Small Capitalization Fund | 4/30/98 | -3.18 | 6.10 | 5.16 | 9.20 | 9.31 | ||||||
MSCI All Country World Small Cap Index1 | -12.85 | -5.54 | 3.67 | 8.61 | 6.97 | |||||||
Growth Fund | 2/8/84 | 12.10 | 25.84 | 15.96 | 16.22 | 13.09 | ||||||
Standard & Poor’s 500 Composite Index2 | -3.08 | 7.51 | 10.73 | 13.99 | 11.18 | |||||||
International Fund | 5/1/90 | -11.20 | -4.81 | 3.50 | 6.53 | 7.64 | ||||||
MSCI All Country World Index (ACWI) ex USA1 | -11.00 | -4.80 | 2.26 | 4.97 | 5.32 | |||||||
New World Fund | 6/17/99 | -4.06 | 4.19 | 6.44 | 6.42 | 8.07 | ||||||
MSCI All Country World Index (ACWI)1 | -6.25 | 2.11 | 6.46 | 9.16 | 4.70 | |||||||
Blue Chip Income and Growth Fund | 7/5/01 | -8.27 | 0.42 | 6.79 | 11.40 | 6.04 | ||||||
Standard & Poor’s 500 Composite Index2 | -3.08 | 7.51 | 10.73 | 13.99 | 7.16 | |||||||
Global Growth and Income Fund | 5/1/06 | -11.08 | -2.21 | 6.59 | 9.85 | 6.40 | ||||||
MSCI All Country World Index (ACWI)1 | -6.25 | 2.11 | 6.46 | 9.16 | 5.26 | |||||||
Growth-Income Fund | 2/8/84 | -3.62 | 4.93 | 10.19 | 13.45 | 11.18 | ||||||
Standard & Poor’s 500 Composite Index2 | -3.08 | 7.51 | 10.73 | 13.99 | 11.18 | |||||||
International Growth and Income Fund | 11/18/08 | -15.08 | -8.98 | 1.61 | 5.51 | 7.38 | ||||||
MSCI All Country World Index (ACWI) ex USA1 | -11.00 | -4.80 | 2.26 | 4.97 | 7.17 | |||||||
Capital Income Builder | 5/1/14 | -6.23 | 0.67 | 3.57 | – | 3.08 | ||||||
MSCI All Country World Index (ACWI)1 | -6.25 | 2.11 | 6.46 | – | 5.98 | |||||||
Bloomberg Barclays U.S. Aggregate Index3 | 6.14 | 8.74 | 4.30 | – | 3.95 | |||||||
70%/30% MSCI ACWI/Bloomberg Barclays U.S. Aggregate Index4 | -2.28 | 4.56 | 6.05 | – | 5.58 | |||||||
Asset Allocation Fund | 8/1/89 | -1.47 | 6.82 | 8.05 | 10.60 | 8.44 | ||||||
60%/40% S&P 500 Index/Bloomberg Barclays U.S. Aggregate Index5 | 0.98 | 8.58 | 8.41 | 10.08 | 8.49 | |||||||
Standard & Poor’s 500 Composite Index2 | -3.08 | 7.51 | 10.73 | 13.99 | 9.69 | |||||||
Bloomberg Barclays U.S. Aggregate Index3 | 6.14 | 8.74 | 4.30 | 3.82 | 6.02 | |||||||
Global Balanced Fund | 5/2/11 | -2.85 | 3.84 | 6.43 | – | 5.79 | ||||||
MSCI All Country World Index (ACWI)1 | -6.25 | 2.11 | 6.46 | – | 6.45 | |||||||
Bloomberg Barclays Global Aggregate Index3 | 2.98 | 4.22 | 3.56 | – | 1.93 | |||||||
60%/40% MSCI ACWI/Bloomberg Barclays Global Aggregate Index6 | -2.28 | 3.42 | 5.54 | – | 4.84 | |||||||
Bond Fund | 1/2/96 | 6.61 | 9.49 | 4.67 | 4.05 | 4.90 | ||||||
Bloomberg Barclays U.S. Aggregate Index3 | 6.14 | 8.74 | 4.30 | 3.82 | 5.21 | |||||||
Capital World Bond Fund | 10/4/06 | 2.14 | 3.56 | 3.49 | 3.13 | 4.08 | ||||||
Bloomberg Barclays Global Aggregate Index3 | 2.98 | 4.22 | 3.56 | 2.81 | 3.68 | |||||||
High-Income Bond Fund | 2/8/84 | -4.74 | -2.11 | 3.94 | 5.59 | 8.40 | ||||||
Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index3 | -3.83 | 0.00 | 4.79 | 6.67 | N/A | |||||||
American Funds Mortgage Fund | 5/2/11 | 5.81 | 6.97 | 3.38 | – | 3.17 | ||||||
Bloomberg Barclays U.S. Mortgage-Backed Securities Index3 | 3.50 | 5.67 | 3.23 | – | 3.06 | |||||||
Ultra-Short Bond Fund | 2/8/84 | 0.43 | 1.24 | 0.91 | 0.34 | 3.36 | ||||||
Bloomberg Barclays Short-Term Government/Corporate Index3 | 1.16 | 2.32 | 1.54 | 0.93 | N/A | |||||||
U.S. Govt./AAA-Rated Securities Fund | 12/2/85 | 8.80 | 9.84 | 3.92 | 3.29 | 5.88 | ||||||
Bloomberg Barclays U.S. Government/ Mortgage-Backed Securities Index3 | 6.59 | 8.50 | 3.73 | 3.23 | 6.31 |
2 American Funds Insurance Series |
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Class P1 shares | Inception | Cumulative total returns | Average annual total returns | |||||||
date | 6 months | 1 year | 5 years | Lifetime | ||||||
Managed Risk Growth Fund | 5/1/13 | 8.57% | 18.75% | 11.03% | 10.49% | |||||
S&P 500 Managed Risk Index – Moderate Aggressive7 | -2.99 | 4.70 | 7.10 | 8.63 | ||||||
Managed Risk International Fund | 5/1/13 | -12.33 | -7.10 | 1.43 | 1.78 | |||||
S&P EPAC Ex. Korea LargeMidCap Managed Risk Index – Moderate Aggressive7 | -10.23 | -4.59 | 1.02 | 1.93 | ||||||
Managed Risk Blue Chip Income and Growth Fund | 5/1/13 | -8.30 | -1.84 | 4.01 | 5.30 | |||||
S&P 500 Managed Risk Index – Moderate 7 | -2.02 | 5.19 | 6.84 | 8.04 | ||||||
Managed Risk Growth-Income Fund | 5/1/13 | 0.66 | 7.68 | 7.83 | 8.42 | |||||
S&P 500 Managed Risk Index – Moderate7 | -2.02 | 5.19 | 6.84 | 8.04 | ||||||
Managed Risk Asset Allocation Fund | 9/28/12 | -3.71 | 3.71 | 5.87 | 6.95 | |||||
S&P 500 Managed Risk Index – Moderate Conservative7 | -1.12 | 5.66 | 6.64 | 7.90 |
The market indexes shown are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.
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. The investment adviser is currently waiving a portion of its management fee for New World Fund, Capital Income Builder, Capital World Bond Fund and American Funds Mortgage Fund. 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. Visit capitalgroup.com for more information.
1 | Source: MSCI. Results for MSCI indexes reflect dividends net of withholding taxes and reinvestment of distributions. MSCI All Country World Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market results in the global developed and emerging markets, consisting of more than 40 developed and emerging market country indexes. MSCI All Country World Small Cap Index is a free float-adjusted market capitalization-weighted index that is designed to measure equity market results of smaller capitalization companies in both developed and emerging markets. MSCI All Country World ex USA Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market results in the global developed and emerging markets, excluding the United States. The index consists of more than 40 developed and emerging market country indexes. |
2 | Source: S&P Dow Jones Indices LLC. S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks. |
3 | Source: Bloomberg Index Services Ltd. Bloomberg Barclays U.S. Aggregate Index represents the U.S. investment-grade (rated BBB/Baa and above) fixed-rate bond market. Bloomberg Barclays Global Aggregate Index represents the global investment-grade fixed income markets. Bloomberg Barclays U.S. Mortgage Backed Securities Index is a market-value-weighted index that covers the mortgage-backed pass-through securities of Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index covers the universe of fixed-rate, non-investment-grade debt. The index limits the maximum exposure of any one issuer to 2%. Bloomberg Barclays U.S. Government/Mortgage-Backed Securities Index covers obligations issued by the U.S. Treasury and U.S. government agencies. |
4 | 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. |
5 | 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. |
6 | 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. |
7 | 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. |
American Funds Insurance Series | 3 |
Table of Contents
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. The investment adviser is currently waiving a portion of its management fee for New World Fund, Capital Income Builder, Capital World Bond Fund (formerly Global Bond Fund) and American Funds Mortgage Fund (formerly Mortgage Fund). 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. 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.
4 American Funds Insurance Series |
Table of Contents
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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Total returns based on | For periods ended June 30, 2020* | |||||||||||||||||||||||||||||
a $1,000 investment | Lifetime | Expense | ||||||||||||||||||||||||||||
6 months | 1 year | 5 years | 10 years | (since April 30, 1997) | ratio | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Class 1 | 4.22 | % | 16.41 | % | 11.17 | % | 13.07 | % | 10.18 | % | .57% | |||||||||||||||||||
Class 1A | 4.13 | 16.14 | 10.91 | 12.80 | 9.91 | .82 | ||||||||||||||||||||||||
Class 2 | 4.10 | 16.14 | 10.90 | 12.80 | 9.91 | .82 | ||||||||||||||||||||||||
Class 4 | 3.99 | 15.85 | 10.62 | 12.56 | 9.65 | 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. See the Financial Highlights table in this report for details.
*Periods greater than one year are annualized.
Percent of net assets
Where the fund’s assets were invested as of June 30, 2020 |
American Funds Insurance Series | 5 |
Table of Contents
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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Total returns based on | For periods ended June 30, 2020* |
| ||||||||||||||||||||||||||||
a $1,000 investment | Lifetime | Expense | ||||||||||||||||||||||||||||
6 months | 1 year | 5 years | 10 years | (since April 30, 1998) | ratio | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Class 1 | -3.18 | % | 6.10 | % | 5.16 | % | 9.20 | % | 9.31 | % | .76% | |||||||||||||||||||
Class 1A | -3.30 | 5.83 | 4.92 | 8.94 | 9.04 | 1.01 | ||||||||||||||||||||||||
Class 2 | -3.28 | 5.86 | 4.91 | 8.93 | 9.04 | 1.01 | ||||||||||||||||||||||||
Class 4 | -3.46 | 5.54 | 4.63 | 8.66 | 8.77 | 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. See the Financial Highlights table in this report for details.
*Periods greater than one year are annualized.
Percent of net assets
Where the fund’s assets were invested as of June 30, 2020 |
6 American Funds Insurance Series |
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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Total returns based on | For periods ended June 30, 2020* |
| ||||||||||||||||||||||||||||
a $1,000 investment | Lifetime | Expense | ||||||||||||||||||||||||||||
6 months | 1 year | 5 years | 10 years | (since February 8, 1984) | ratio | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Class 1 | 12.10 | % | 25.84 | % | 15.96 | % | 16.22 | % | 13.09 | % | .36% | |||||||||||||||||||
Class 1A | 11.95 | 25.51 | 15.69 | 15.94 | 12.81 | .61 | ||||||||||||||||||||||||
Class 2 | 11.97 | 25.51 | 15.67 | 15.93 | 12.81 | .61 | ||||||||||||||||||||||||
Class 3 | 12.01 | 25.61 | 15.76 | 16.01 | 12.89 | .54 | ||||||||||||||||||||||||
Class 4 | 11.81 | 25.19 | 15.38 | 15.66 | 12.53 | .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. See the Financial Highlights table in this report for details.
*Periods greater than one year are annualized.
Percent of net assets
Where the fund’s assets were invested as of June 30, 2020 |
|
American Funds Insurance Series | 7 |
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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Total returns based on | For periods ended June 30, 2020* |
| ||||||||||||||||||||||||||||
a $1,000 investment | Lifetime | Expense | ||||||||||||||||||||||||||||
6 months | 1 year | 5 years | 10 years | (since May 1, 1990) | ratio | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Class 1 | -11.20 | % | -4.81 | % | 3.50 | % | 6.53 | % | 7.64 | % | .55% | |||||||||||||||||||
Class 1A | -11.32 | -5.03 | 3.25 | 6.27 | 7.38 | .80 | ||||||||||||||||||||||||
Class 2 | -11.33 | -5.07 | 3.24 | 6.26 | 7.38 | .80 | ||||||||||||||||||||||||
Class 3 | -11.30 | -4.98 | 3.32 | 6.34 | 7.45 | .73 | ||||||||||||||||||||||||
Class 4 | -11.46 | -5.29 | 2.99 | 6.02 | 7.11 | 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. See the Financial Highlights table in this report for details.
*Periods greater than one year are annualized.
Percent of net assets
Where the fund’s assets were invested as of June 30, 2020 |
8 American Funds Insurance Series |
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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Total returns based on | For periods ended June 30, 2020* |
| |||||||||||||||||||||||||||||||||
a $1,000 investment | Lifetime | Gross expense | Net expense | ||||||||||||||||||||||||||||||||
6 months | 1 year | 5 years | 10 years | (since June 17, 1999) | ratio | ratio | |||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||
Class 1 | -4.06 | % | 4.19 | % | 6.44 | % | 6.42 | % | 8.07 | % | .77 | % | .59% | ||||||||||||||||||||||
Class 1A | -4.18 | 3.87 | 6.17 | 6.16 | 7.80 | 1.02 | .84 | ||||||||||||||||||||||||||||
Class 2 | -4.18 | 3.93 | 6.18 | 6.16 | 7.80 | 1.02 | .84 | ||||||||||||||||||||||||||||
Class 4 | -4.31 | 3.61 | 5.90 | 5.90 | 7.53 | 1.27 | 1.09 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The investment advisor 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. Net expense ratios reflect the waiver, without which they would have been higher. 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. See the Financial Highlights table in this report for details.
*Periods greater than one year are annualized.
Percent of net assets
Where the fund’s assets were invested as of June 30, 2020 |
|
American Funds Insurance Series | 9 |
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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Total returns based on | For periods ended June 30, 2020* |
| ||||||||||||||||||||||||||||
a $1,000 investment | Lifetime | Expense | ||||||||||||||||||||||||||||
6 months | 1 year | 5 years | 10 years | (since July 5, 2001) | ratio | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Class 1 | -8.27 | % | 0.42 | % | 6.79 | % | 11.40 | % | 6.04 | % | .43% | |||||||||||||||||||
Class 1A | -8.40 | 0.25 | 6.54 | 11.13 | 5.78 | .68 | ||||||||||||||||||||||||
Class 2 | -8.41 | 0.26 | 6.55 | 11.12 | 5.77 | .68 | ||||||||||||||||||||||||
Class 4 | -8.49 | -0.06 | 6.27 | 10.91 | 5.54 | .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. See the Financial Highlights table in this report for details.
*Periods greater than one year are annualized.
Percent of net assets
Where the fund’s assets were invested as of June 30, 2020 |
10 American Funds Insurance Series |
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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Total returns based on | For periods ended June 30, 2020* | |||||||||||||||||||||||||||||
a $1,000 investment | Lifetime | Expense | ||||||||||||||||||||||||||||
6 months | 1 year | 5 years | 10 years | (since May 1, 2006) | ratio | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Class 1 | -11.08 | % | -2.21 | % | 6.59 | % | 9.85 | % | 6.40 | % | .66% | |||||||||||||||||||
Class 1A | -11.20 | -2.47 | 6.36 | 9.59 | 6.14 | .91 | ||||||||||||||||||||||||
Class 2 | -11.20 | -2.46 | 6.31 | 9.57 | 6.13 | .91 | ||||||||||||||||||||||||
Class 4 | -11.29 | -2.75 | 6.04 | 9.32 | 5.88 | 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. See the Financial Highlights table in this report for details.
*Periods greater than one year are annualized.
Percent of net assets
Where the fund’s assets were invested as of June 30, 2020 |
American Funds Insurance Series | 11 |
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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Total returns based on | For periods ended June 30, 2020* |
| ||||||||||||||||||||||||||||
a $1,000 investment | Lifetime | Expense | ||||||||||||||||||||||||||||
6 months | 1 year | 5 years | 10 years | (since February 8, 1984) | ratio | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Class 1 | | - 3.62 | % | 4.93 | % | 10.19 | % | 13.45 | % | 11.18 | % | .30% | ||||||||||||||||||
Class 1A | -3.73 | 4.69 | 9.93 | 13.18 | 10.91 | .55 | ||||||||||||||||||||||||
Class 2 | -3.73 | 4.67 | 9.91 | 13.17 | 10.91 | .55 | ||||||||||||||||||||||||
Class 3 | -3.70 | 4.75 | 9.99 | 13.25 | 10.98 | .48 | ||||||||||||||||||||||||
Class 4 | -3.86 | 4.40 | 9.64 | 12.90 | 10.63 | .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. See the Financial Highlights table in this report for details.
*Periods greater than one year are annualized.
Percent of net assets
Where the fund’s assets were invested as of June 30, 2020 |
12 American Funds Insurance Series |
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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Total returns based on | For periods ended June 30, 2020* |
| ||||||||||||||||||||||||||||
a $1,000 investment | Lifetime | Expense | ||||||||||||||||||||||||||||
6 months | 1 year | 5 years | 10 years | (since November 18, 2008) | ratio | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Class 1 | -15.08 | % | -8.98 | % | 1.61 | % | 5.51 | % | 7.38 | % | .67% | |||||||||||||||||||
Class 1A | -15.19 | -9.26 | 1.37 | 5.26 | 7.12 | .92 | ||||||||||||||||||||||||
Class 2 | -15.17 | -9.25 | 1.35 | 5.25 | 7.11 | .92 | ||||||||||||||||||||||||
Class 4 | -15.29 | -9.48 | 1.09 | 5.02 | 6.88 | 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. See the Financial Highlights table in this report for details.
*Periods greater than one year are annualized.
Percent of net assets
Where the fund’s assets were invested as of June 30, 2020 |
American Funds Insurance Series | 13 |
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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Total returns based on | For periods ended June 30, 2020* |
| ||||||||||||||||||||||||||||
a $1,000 investment | Lifetime | Gross expense | Net expense | |||||||||||||||||||||||||||
6 months | 1 year | 5 years | (since May 1, 2014) | ratio | ratio | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Class 1 | -6.23 | % | 0.67 | % | 3.57 | % | 3.08 | % | .54 | % | .28% | |||||||||||||||||||
Class 1A | -6.36 | 0.41 | 3.32 | 2.82 | .79 | .53 | ||||||||||||||||||||||||
Class 2 | -6.36 | 0.31 | 3.34 | 2.91 | .79 | .53 | ||||||||||||||||||||||||
Class 4 | -6.49 | 0.15 | 3.05 | 2.56 | 1.04 | .78 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The investment advisor 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. Net expense ratios reflect the waiver, without which they would have been higher. 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. See the Financial Highlights table in this report for details.
*Periods greater than one year are annualized.
Percent of net assets
Where the fund’s assets were invested as of June 30, 2020 |
14 | American Funds Insurance Series |
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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Total returns based on | For periods ended June 30, 2020* |
| ||||||||||||||||||||||||||||
a $1,000 investment | Lifetime | Expense | ||||||||||||||||||||||||||||
6 months | 1 year | 5 years | 10 years | (since August 1, 1989) | ratio | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Class 1 | -1.47 | % | 6.82 | % | 8.05 | % | 10.60 | % | 8.44 | % | .31% | |||||||||||||||||||
Class 1A | -1.55 | 6.57 | 7.79 | 10.33 | 8.17 | .56 | ||||||||||||||||||||||||
Class 2 | -1.57 | 6.54 | 7.78 | 10.33 | 8.17 | .56 | ||||||||||||||||||||||||
Class 3 | -1.54 | 6.62 | 7.86 | 10.41 | 8.24 | .49 | ||||||||||||||||||||||||
Class 4 | -1.70 | 6.26 | 7.51 | 10.09 | 7.91 | .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. See the Financial Highlights table in this report for details.
*Periods greater than one year are annualized.
Percent of net assets
Where the fund’s assets were invested as of June 30, 2020 |
|
American Funds Insurance Series | 15 |
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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Total returns based on | For periods ended June 30, 2020* |
| |||||||||||||||||||||||
a $1,000 investment | Lifetime | Expense | |||||||||||||||||||||||
6 months | 1 year | 5 years | (since May 2, 2011) | ratio | |||||||||||||||||||||
| |||||||||||||||||||||||||
Class 1 | -2.85 | % | 3.84 | % | 6.43 | % | 5.79 | % | .73% | ||||||||||||||||
Class 1A | -3.00 | 3.51 | 6.20 | 5.54 | .98 | ||||||||||||||||||||
Class 2 | -2.93 | 3.59 | 6.18 | 5.53 | .98 | ||||||||||||||||||||
Class 4 | -3.11 | 3.25 | 5.93 | 5.39 | 1.23 |
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. See the Financial Highlights table in this report for details.
*Periods greater than one year are annualized.
Percent of net assets
Where the fund’s assets were invested as of June 30, 2020 |
|
16 American Funds Insurance Series |
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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Total returns based on | For periods ended June 30, 2020* |
| ||||||||||||||||||||||||||||
a $1,000 investment | Lifetime | Expense | ||||||||||||||||||||||||||||
6 months | 1 year | 5 years | 10 years | (since January 2, 1996) | ratio | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Class 1 | 6.61 | % | 9.49 | % | 4.67 | % | 4.05 | % | 4.90 | % | .40% | |||||||||||||||||||
Class 1A | 6.51 | 9.26 | 4.42 | 3.80 | 4.64 | .65 | ||||||||||||||||||||||||
Class 2 | 6.56 | 9.25 | 4.40 | 3.79 | 4.64 | .65 | ||||||||||||||||||||||||
Class 4 | 6.36 | 8.89 | 4.13 | 3.54 | 4.38 | .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. See the Financial Highlights table in this report for details.
*Periods greater than one year are annualized.
Percent of net assets
Where the fund’s assets were invested as of June 30, 2020 |
| |
American Funds Insurance Series | 17 |
Table of Contents
Capital World Bond Fund® (formerly 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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Total returns based on | For periods ended June 30, 2020* |
| |||||||||||||||||||||||||||||||||
a $1,000 investment | Lifetime | Gross expense | Net expense | ||||||||||||||||||||||||||||||||
6 months | 1 year | 5 years | 10 years | (since October 4, 2006) | ratio | ratio | |||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||
Class 1 | 2.14 | % | 3.56 | % | 3.49 | % | 3.13 | % | 4.08 | % | .59 | % | .49% | ||||||||||||||||||||||
Class 1A | 2.03 | 3.26 | 3.27 | 2.89 | 3.83 | .84 | .74 | ||||||||||||||||||||||||||||
Class 2 | 2.03 | 3.32 | 3.23 | 2.87 | 3.82 | .84 | .74 | ||||||||||||||||||||||||||||
Class 4 | 1.93 | 3.06 | 2.99 | 2.66 | 3.60 | 1.09 | .99 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The investment advisor 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. Net expense ratios reflect the waiver, without which they would have been higher. 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. See the Financial Highlights table in this report for details.
*Periods greater than one year are annualized.
Percent of net assets
Where the fund’s assets were invested as of June 30, 2020 |
|
18 American Funds Insurance Series |
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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Total returns based on | For periods ended June 30, 2020* |
| ||||||||||||||||||||||||||||
a $1,000 investment | Lifetime | Expense | ||||||||||||||||||||||||||||
6 months | 1 year | 5 years | 10 years | (since February 8, 1984) | ratio | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Class 1 | -4.74 | % | -2.11 | % | 3.94 | % | 5.59 | % | 8.40 | % | .51% | |||||||||||||||||||
Class 1A | -4.86 | -2.32 | 3.71 | 5.34 | 8.13 | .76 | ||||||||||||||||||||||||
Class 2 | -4.85 | -2.38 | 3.69 | 5.33 | 8.13 | .76 | ||||||||||||||||||||||||
Class 3 | -4.83 | -2.26 | 3.77 | 5.40 | 8.20 | .69 | ||||||||||||||||||||||||
Class 4 | -4.89 | -2.52 | 3.43 | 5.12 | 7.87 | 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. See the Financial Highlights table in this report for details.
*Periods greater than one year are annualized.
Percent of net assets
Where the fund’s assets were invested as of June 30, 2020 |
|
American Funds Insurance Series | 19 |
Table of Contents
American Funds Mortgage Fund® (formerly 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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Total returns based on | For periods ended June 30, 2020* |
| ||||||||||||||||||||||||||||
a $1,000 investment | Lifetime | Gross expense | Net expense | |||||||||||||||||||||||||||
6 months | 1 year | 5 years | (since May 2, 2011) | ratio | ratio | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Class 1 | 5.81 | % | 6.97 | % | 3.38 | % | 3.17 | % | .48 | % | .30% | |||||||||||||||||||
Class 1A | 5.59 | 6.67 | 3.12 | 2.91 | .73 | .55 | ||||||||||||||||||||||||
Class 2 | 5.68 | 6.71 | 3.13 | 2.91 | .73 | .55 | ||||||||||||||||||||||||
Class 4 | 5.53 | 6.43 | 2.87 | 2.72 | .98 | .80 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The investment advisor 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. Net expense ratios reflect the waiver, without which they would have been higher. 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. See the Financial Highlights table in this report for details.
*Periods greater than one year are annualized.
Percent of net assets
Where the fund’s assets were invested as of June 30, 2020 |
20 American Funds Insurance Series |
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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Total returns based on | For periods ended June 30, 2020* |
| |||||||||||||||||||||||||||||
a $1,000 investment | Lifetime | Expense | |||||||||||||||||||||||||||||
6 months | 1 year | 5 years | 10 years | (since February 8,1984) | ratio | ||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||
Class 1 | 0.43 | % | 1.24 | % | 0.91 | % | 0.34 | % | 3.36 | % | .37% | ||||||||||||||||||||
Class 1A | 0.41 | 1.23 | 0.84 | 0.18 | 3.13 | .62 | |||||||||||||||||||||||||
Class 2 | 0.31 | 1.02 | 0.67 | 0.09 | 3.11 | .62 | |||||||||||||||||||||||||
Class 3 | 0.31 | 1.07 | 0.72 | 0.16 | 3.17 | .55 | |||||||||||||||||||||||||
Class 4 | 0.11 | 0.73 | 0.40 | –0.09 | 2.86 | .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. See the Financial Highlights table in this report for details.
*Periods greater than one year are annualized.
Percent of net assets
Where the fund’s assets were invested as of June 30, 2020 | Commercial paper | 68.2 | % | |||
Bonds & notes of governments & government agencies outside the U.S. | 17.9 | |||||
Federal agency discount notes | 7.0 | |||||
U.S. Treasury bills | 6.8 | |||||
Other assets less liabilities | .1 | |||||
|
| |||||
Total | 100.0 | % | ||||
|
|
American Funds Insurance Series | 21 |
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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Total returns based on | For periods ended June 30, 2020* |
| |||||||||||||||||||||||||||||
a $1,000 investment | Lifetime | Expense | |||||||||||||||||||||||||||||
6 months | 1 year | 5 years | 10 years | (since December 2, 1985) | ratio | ||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||
Class 1 | 8.80 | % | 9.84 | % | 3.92 | % | 3.29 | % | 5.88 | % | .38% | ||||||||||||||||||||
Class 1A | 8.64 | 9.59 | 3.69 | 3.05 | 5.62 | .63 | |||||||||||||||||||||||||
Class 2 | 8.70 | 9.61 | 3.65 | 3.03 | 5.62 | .63 | |||||||||||||||||||||||||
Class 3 | 8.77 | 9.73 | 3.74 | 3.11 | 5.70 | .56 | |||||||||||||||||||||||||
Class 4 | 8.53 | 9.37 | 3.40 | 2.82 | 5.37 | .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. See the Financial Highlights table in this report for details.
*Periods greater than one year are annualized.
Percent of net assets
Where the fund’s assets were invested as of June 30, 2020 |
22 American Funds Insurance Series |
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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Total returns based on | For periods ended June 30, 2020* |
| ||||||||||||||||||||||||||||
a $1,000 investment | Lifetime | Gross expense | Net expense | |||||||||||||||||||||||||||
6 months | 1 year | 5 years | (since May 1, 2013) | ratio | ratio | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Class P1 | 8.57 | % | 18.75 | % | 11.03 | % | 10.49 | % | .79 | % | .74% | |||||||||||||||||||
Class P2 | 8.42 | 18.45 | 10.73 | 10.17 | 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.
*Periods greater than one year are annualized.
American Funds Insurance Series | 23 |
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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Total returns based on | For periods ended June 30, 2020* |
| ||||||||||||||||||||||||||||
a $1,000 investment | Lifetime | Gross expense | Net expense | |||||||||||||||||||||||||||
6 months | 1 year | 5 years | (since May 1, 2013) | ratio | ratio | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||
Class P1 | -12.33 | % | -7.10 | % | 1.43 | % | 1.78 | % | .97 | % | .89% | |||||||||||||||||||
Class P2 | -12.45 | -7.36 | 1.06 | 1.41 | 1.22 | 1.14 |
The investment adviser is currently waiving a portion of its management fee. In addition, the investment adviser is currently reimbursing a portion of other expenses. This waiver and reimbursement will be in effect through at least May 1, 2021. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time. 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.
*Periods greater than one year are annualized.
24 | American Funds Insurance Series |
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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Total returns based on | For periods ended June 30, 2020* | |||||||||||||||||||||
a $1,000 investment | Lifetime (since May 1, 2013) | Gross expense ratio | Net expense ratio | |||||||||||||||||||
6 months | 1 year | 5 years | ||||||||||||||||||||
| ||||||||||||||||||||||
Class P1 | -8.30% | -1.84% | 4.01% | 5.30% | .84% | .79% | ||||||||||||||||
Class P2 | -8.48 | -2.16 | 3.64 | 4.93 | 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.
*Periods greater than one year are annualized.
American Funds Insurance Series | 25 |
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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Total returns based on | For periods ended June 30, 2020* |
| ||||||||||||||||||||||||
a $1,000 investment | | Lifetime (since May 1, 2013 | ) | | Gross expense ratio | | | Net expense ratio | | |||||||||||||||||
6 months | 1 year | 5 years | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||
Class P1 | 0.66% | 7.68% | 7.83% | 8.42% | .73% | .68% | ||||||||||||||||||||
Class P2 | 0.62 | 7.48 | 7.55 | 8.11 | .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.
*Periods greater than one year are annualized.
26 American Funds Insurance Series |
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. Prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Total returns based on | For periods ended June 30, 2020* |
| ||||||||||||||||||||||||
a $1,000 investment | | Lifetime (since September 28,2012) |
| | Gross expense ratio | | | Net expense ratio | | |||||||||||||||||
6 months | 1 year | 5 years | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||
Class P1 | -3.71% | 3.71% | 5.87% | 6.95% | .71% | .66% | ||||||||||||||||||||
Class P2 | -3.80 | 3.42 | 5.60 | 6.69 | .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.
*Periods greater than one year are annualized.
American Funds Insurance Series | 27 |
Table of Contents
Summary investment portfolio June 30, 2020 | unaudited |
Common stocks 95.99%
| Shares
| Value (000)
| ||||||||
Information | ASML Holding NV1 | 624,842 | $ | 229,053 | ||||||
technology | ASML Holding NV (New York registered) (ADR) | 488,000 | 179,599 | |||||||
30.83% | Microsoft Corp. | 1,994,300 | 405,860 | |||||||
Taiwan Semiconductor Manufacturing Company, Ltd.1 | 26,543,000 | 280,879 | ||||||||
Taiwan Semiconductor Manufacturing Company, Ltd. (ADR) | 280,000 | 15,896 | ||||||||
Visa Inc., Class A | 1,103,900 | 213,240 | ||||||||
Paycom Software, Inc.2 | 357,000 | 110,574 | ||||||||
Temenos AG1,3 | 608,100 | 94,283 | ||||||||
Adyen NV1,2 | 56,700 | 82,606 | ||||||||
Broadcom Inc. | 241,200 | 76,125 | ||||||||
Adobe Inc.2 | 135,000 | 58,767 | ||||||||
PagSeguro Digital Ltd., Class A2 | 1,340,900 | 47,387 | ||||||||
Zendesk, Inc.2 | 454,000 | 40,193 | ||||||||
Amphenol Corp., Class A | 373,500 | 35,785 | ||||||||
Other securities | 213,234 | |||||||||
|
| |||||||||
2,083,481 | ||||||||||
|
| |||||||||
Consumer | Amazon.com, Inc.2 | 158,665 | 437,728 | |||||||
discretionary | Alibaba Group Holding Ltd.1,2 | 6,800,500 | 183,768 | |||||||
20.45% | Just Eat Takeaway (GBP denominated)1,2 | 640,914 | 67,122 | |||||||
Just Eat Takeaway (EUR denominated)1,2 | 347,000 | 36,107 | ||||||||
Chipotle Mexican Grill, Inc.2 | 92,200 | 97,028 | ||||||||
Ocado Group PLC1,2 | 2,952,000 | 74,107 | ||||||||
LVMH Moët Hennessy-Louis Vuitton SE1 | 161,200 | 70,605 | ||||||||
Prosus NV1,2 | 570,000 | 52,902 | ||||||||
Moncler SpA1,2 | 1,132,370 | 43,237 | ||||||||
NIKE, Inc., Class B | 395,200 | 38,749 | ||||||||
Other securities | 280,730 | |||||||||
|
| |||||||||
1,382,083 | ||||||||||
|
| |||||||||
Health care | DexCom, Inc.2 | 253,000 | 102,566 | |||||||
12.69% | UnitedHealth Group Inc. | 297,500 | 87,748 | |||||||
Fisher & Paykel Healthcare Corp. Ltd.1 | 3,613,500 | 83,563 | ||||||||
AstraZeneca PLC1 | 695,300 | 72,483 | ||||||||
Pfizer Inc. | 1,699,000 | 55,557 | ||||||||
Regeneron Pharmaceuticals, Inc.2 | 84,200 | 52,511 | ||||||||
Mettler-Toledo International Inc.2 | 65,000 | 52,361 | ||||||||
Merck & Co., Inc. | 620,000 | 47,945 | ||||||||
Other securities | 302,576 | |||||||||
|
| |||||||||
857,310 | ||||||||||
|
| |||||||||
Financials | AIA Group Ltd.1 | 12,339,300 | 114,843 | |||||||
9.07% | Tradeweb Markets Inc., Class A | 1,736,360 | 100,952 | |||||||
MarketAxess Holdings Inc. | 151,400 | 75,839 | ||||||||
Kotak Mahindra Bank Ltd.1 | 3,797,000 | 68,521 | ||||||||
JPMorgan Chase & Co. | 589,000 | 55,401 | ||||||||
Other securities | 196,992 | |||||||||
|
| |||||||||
612,548 | ||||||||||
|
| |||||||||
Communication | Alphabet Inc., Class A2 | 98,050 | 139,039 | |||||||
services | Alphabet Inc., Class C2 | 63,852 | 90,262 | |||||||
8.38% | Tencent Holdings Ltd.1 | 2,215,000 | 142,278 | |||||||
Facebook, Inc., Class A2 | 411,640 | 93,471 | ||||||||
Nintendo Co., Ltd.1 | 136,100 | 60,560 | ||||||||
Other securities | 40,316 | |||||||||
|
| |||||||||
565,926 | ||||||||||
|
|
28 American Funds Insurance Series |
Table of Contents
Global Growth Fund
Common stocks
| Shares
| Value (000)
| ||||||||
Consumer staples | British American Tobacco PLC1 | 2,943,800 | $ | 113,104 | ||||||
6.98% | Philip Morris International Inc. | 919,500 | 64,420 | |||||||
Nestlé SA1 | 563,497 | 62,252 | ||||||||
Kweichow Moutai Co., Ltd., Class A1 | 269,957 | 55,868 | ||||||||
Altria Group, Inc. | 1,248,500 | 49,004 | ||||||||
Keurig Dr Pepper Inc. | 1,624,000 | 46,122 | ||||||||
Other securities | 81,223 | |||||||||
|
| |||||||||
471,993 | ||||||||||
|
| |||||||||
Industrials | Airbus SE, non-registered shares1,2 | 667,000 | 47,463 | |||||||
3.89% | Other securities | 215,407 | ||||||||
|
| |||||||||
262,870 | ||||||||||
|
| |||||||||
Materials | Sherwin-Williams Company | 155,500 | 89,856 | |||||||
1.94% | Other securities | 41,540 | ||||||||
|
| |||||||||
131,396 | ||||||||||
|
| |||||||||
Energy | Reliance Industries Ltd.1 | 1,807,924 | 40,861 | |||||||
1.29% | Reliance Industries Ltd., interim shares1,2 | 106,956 | 1,130 | |||||||
Other securities | 45,266 | |||||||||
|
| |||||||||
87,257 | ||||||||||
|
| |||||||||
Other | Other securities | 31,299 | ||||||||
|
| |||||||||
0.47% | Total common stocks (cost: $3,515,921,000) | 6,486,163 | ||||||||
|
| |||||||||
Preferred securities 2.31%
| ||||||||||
Health care | Sartorius AG, nonvoting preferred, non-registered shares1 | 381,500 | 125,333 | |||||||
|
| |||||||||
1.85% | 125,333 | |||||||||
|
| |||||||||
Information technology | Other securities | 30,939 | ||||||||
|
| |||||||||
0.46% | Total preferred securities (cost: $43,479,000) | 156,272 | ||||||||
|
| |||||||||
Short-term securities 2.34%
| ||||||||||
Money market investments 2.34% | ||||||||||
Capital Group Central Cash Fund 0.18%4 | 1,342,495 | 134,263 | ||||||||
Goldman Sachs Financial Square Government Fund 0.15%4,5 | 24,225,393 | 24,225 | ||||||||
|
| |||||||||
158,488 | ||||||||||
|
| |||||||||
Total short-term securities (cost: $158,464,000) | 158,488 | |||||||||
|
| |||||||||
Total investment securities 100.64% (cost: $3,717,864,000) | 6,800,923 | |||||||||
Other assets less liabilities (0.64)% | (43,487 | ) | ||||||||
|
| |||||||||
Net assets 100.00% | $ | 6,757,436 | ||||||||
|
| |||||||||
American Funds Insurance Series | 29 |
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.
1Valued 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 $3,104,888,000, which represented 45.95% 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.
2Security did not produce income during the last 12 months.
3All or a portion of this security was on loan. The total value of all such securities was $25,635,000, which represented .38% of the net assets of the fund. Refer to Note 5 for more information on securities lending.
4Rate represents the seven-day yield at 6/30/2020.
5Security 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
GBP = British pounds
See notes to financial statements.
30 American Funds Insurance Series |
Table of Contents
Global Small Capitalization Fund
Summary investment portfolio June 30, 2020 | unaudited |
Common stocks 95.18%
| Shares
| Value
| ||||||||
Information | Cree, Inc.1 | 1,356,800 | $ | 80,309 | ||||||
technology | Ceridian HCM Holding Inc.1 | 799,400 | 63,368 | |||||||
23.87% | Net One Systems Co., Ltd.2 | 1,887,865 | 62,947 | |||||||
Inphi Corp.1 | 464,300 | 54,555 | ||||||||
Kingdee International Software Group Co. Ltd.2 | 21,259,374 | 49,492 | ||||||||
BE Semiconductor Industries NV2 | 814,330 | 36,213 | ||||||||
Avast PLC2 | 5,514,043 | 36,066 | ||||||||
Carel Industries SpA2,3 | 1,947,251 | 35,719 | ||||||||
Appfolio, Inc., Class A1 | 211,503 | 34,414 | ||||||||
SimCorp AS2 | 287,650 | 30,991 | ||||||||
Silergy Corp.2 | 451,740 | 29,317 | ||||||||
Alteryx, Inc., Class A1 | 173,000 | 28,420 | ||||||||
Avalara, Inc.1 | 212,419 | 28,271 | ||||||||
Network International Holdings PLC1,2 | 4,570,562 | 24,940 | ||||||||
Other securities | 443,962 | |||||||||
|
| |||||||||
1,038,984 | ||||||||||
|
| |||||||||
Health care | Insulet Corp.1 | 645,320 | 125,360 | |||||||
23.79% | GW Pharmaceuticals PLC (ADR)1,3 | 748,218 | 91,821 | |||||||
Haemonetics Corp.1 | 777,300 | 69,615 | ||||||||
CanSino Biologics Inc., Class H1,2 | 2,468,200 | 68,238 | ||||||||
Notre Dame Intermédica Participações SA | 4,528,600 | 56,636 | ||||||||
Mani, Inc.2 | 1,808,129 | 47,710 | ||||||||
Allogene Therapeutics, Inc.1 | 1,105,188 | 47,324 | ||||||||
Integra LifeSciences Holdings Corp.1 | 913,825 | 42,941 | ||||||||
iRhythm Technologies, Inc.1 | 328,300 | 38,047 | ||||||||
Allakos Inc.1 | 504,880 | 36,281 | ||||||||
Cortexyme, Inc.1,3 | 759,458 | 35,163 | ||||||||
Applied Molecular Transport Inc.1,3 | 1,365,957 | 34,340 | ||||||||
New Frontier Health Corp., Class A1,4 | 2,680,000 | 22,190 | ||||||||
New Frontier Health Corp., Class A1,3 | 742,000 | 6,144 | ||||||||
PRA Health Sciences, Inc.1 | 288,400 | 28,058 | ||||||||
WuXi Biologics (Cayman) Inc.1,2 | 1,412,000 | 25,872 | ||||||||
Other securities | 259,977 | |||||||||
|
| |||||||||
1,035,717 | ||||||||||
|
| |||||||||
Consumer | Thor Industries, Inc. | 498,700 | 53,126 | |||||||
discretionary | Helen of Troy Ltd.1 | 267,200 | 50,383 | |||||||
14.42% | frontdoor, inc.1 | 1,050,200 | 46,555 | |||||||
Shop Apotheke Europe NV, non-registered shares1,2,3 | 282,300 | 33,727 | ||||||||
Five Below, Inc.1 | 305,000 | 32,608 | ||||||||
YETI Holdings, Inc.1 | 634,879 | 27,128 | ||||||||
GVC Holdings PLC2 | 2,934,000 | 26,883 | ||||||||
B2W - Cia. Digital, ordinary nominative1 | 1,262,193 | 24,846 | ||||||||
Other securities | 332,377 | |||||||||
|
| |||||||||
627,633 | ||||||||||
|
| |||||||||
Industrials | Nihon M&A Center Inc.2 | 1,652,692 | 74,654 | |||||||
14.11% | International Container Terminal Services, Inc.2 | 23,981,620 | 49,643 | |||||||
Boyd Group Services Inc. | 222,726 | 33,151 | ||||||||
IMCD NV1,2 | 293,600 | 27,563 | ||||||||
Other securities | 429,222 | |||||||||
|
| |||||||||
614,233 | ||||||||||
|
|
American Funds Insurance Series | 31 |
Table of Contents
Global Small Capitalization Fund
Common stocks (continued)
| Shares
| Value
| ||||||||
Financials | Cannae Holdings, Inc.1 | 2,004,000 | $ | 82,364 | ||||||
5.86% | Trupanion, Inc.1,3 | 973,800 | 41,572 | |||||||
Kotak Mahindra Bank Ltd.2 | 1,946,825 | 35,132 | ||||||||
Other securities | 95,980 | |||||||||
|
| |||||||||
255,048 | ||||||||||
|
| |||||||||
Communication | Bandwidth Inc., Class A1 | 290,990 | 36,956 | |||||||
services | Other securities | 114,292 | ||||||||
|
| |||||||||
3.47% | 151,248 | |||||||||
|
| |||||||||
Real estate | Altus Group Ltd. | 932,800 | 28,027 | |||||||
2.89% | Other securities | 97,573 | ||||||||
|
| |||||||||
125,600 | ||||||||||
|
| |||||||||
Consumer staples | Grocery Outlet Holding Corp.1 | 659,200 | 26,895 | |||||||
2.75% | Freshpet, Inc.1 | 311,900 | 26,094 | |||||||
Other securities | 66,645 | |||||||||
|
| |||||||||
119,634 | ||||||||||
|
| |||||||||
Materials | Other securities | 76,786 | ||||||||
|
| |||||||||
1.76% | ||||||||||
Utilities | ENN Energy Holdings Ltd.2 | 4,262,900 | 47,877 | |||||||
1.33% | Other securities | 9,940 | ||||||||
|
| |||||||||
57,817 | ||||||||||
|
| |||||||||
Energy | Other securities | 40,545 | ||||||||
|
| |||||||||
0.93% | Total common stocks (cost: $2,981,131,000) | 4,143,245 | ||||||||
|
| |||||||||
Preferred securities 1.39%
| ||||||||||
Information | Other securities | 45,206 | ||||||||
|
| |||||||||
technology | 45,206 | |||||||||
|
| |||||||||
1.04% | ||||||||||
Other | Other securities | 15,312 | ||||||||
|
| |||||||||
0.35% | Total preferred securities (cost: $60,016,000) | 60,518 | ||||||||
|
| |||||||||
Convertible stocks 0.16%
| ||||||||||
Consumer | Other securities | 6,715 | ||||||||
|
| |||||||||
discretionary | Total convertible stocks (cost: $6,380,000) | 6,715 | ||||||||
|
| |||||||||
0.16% |
32 | American Funds Insurance Series |
Table of Contents
Global Small Capitalization Fund
Short-term securities 5.15%
| Shares
| Value
| ||||||||
Money market investments 5.15% | ||||||||||
Capital Group Central Cash Fund 0.18%5 | 1,631,730 | $ | 163,189 | |||||||
Goldman Sachs Financial Square Government Fund 0.15%5,6 | 61,015,616 | 61,016 | ||||||||
|
| |||||||||
224,205 | ||||||||||
|
| |||||||||
Total short-term securities (cost: $224,170,000) | 224,205 | |||||||||
|
| |||||||||
Total investment securities 101.88% (cost: $3,271,697,000) | 4,434,683 | |||||||||
Other assets less liabilities (1.88)% | (81,752 | ) | ||||||||
|
| |||||||||
Net assets 100.00% | $ | 4,352,931 | ||||||||
|
|
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 $70,637,000, an aggregate cost of $65,866,000, and which represented 1.62% of the net assets of the fund) were acquired from 5/1/2015 to 5/27/2020 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 holdings in affiliated companies is included in “Other securities” under the respective industry sectors in the summary investment portfolio. Further details on these holdings and related transactions during the six months ended June 30, 2020, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net (000) | Net unrealized | Dividend | Value of (000) | |||||||||||||||||||||||||||||||||||||||||
Common stocks 0.65% | ||||||||||||||||||||||||||||||||||||||||||||||||
Health care 0.26% | ||||||||||||||||||||||||||||||||||||||||||||||||
NuCana PLC (ADR)1,3 | 2,083,704 | — | — | 2,083,704 | $ | — | $ | (1,459 | ) | $ | — | $ | 11,252 | |||||||||||||||||||||||||||||||||||
Consumer discretionary 0.39% | ||||||||||||||||||||||||||||||||||||||||||||||||
Lands’ End, Inc.1 | — | 2,100,000 | — | 2,100,000 | — | 2,079 | — | 16,884 | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||
Total 0.65% | $ | — | $ | 620 | $ | — | $ | 28,136 | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
1Security did not produce income during the last 12 months.
2Valued 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 $1,842,689,000, which represented 42.33% of the net assets of the fund. This amount includes $1,772,049,000 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.
3All or a portion of this security was on loan. The total value of all such securities, including those in “Other securities,” was $69,706,000, which represented 1.60% of the net assets of the fund. Refer to Note 5 for more information on securities lending.
4Acquired 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 $32,675,000, which represented .75% of the net assets of the fund.
5Rate represents the seven-day yield at 6/30/2020.
6Security purchased with cash collateral from securities on loan. Refer to Note 5 for more information on securities lending.
Key to abbreviation
ADR = American Depositary Receipts
See notes to financial statements.
American Funds Insurance Series | 33 |
Table of Contents
Summary investment portfolio June 30, 2020 | unaudited |
Common stocks 95.45%
| Shares
| Value
| ||||||||
Information | Microsoft Corp. | 9,475,683 | $ | 1,928,396 | ||||||
technology | ASML Holding NV (New York registered) (ADR) | 1,171,100 | 431,000 | |||||||
24.19% | ASML Holding NV1 | 770,000 | 282,265 | |||||||
Broadcom Inc. | 2,158,602 | 681,276 | ||||||||
Taiwan Semiconductor Manufacturing Company, Ltd.1 | 33,805,000 | 357,726 | ||||||||
Taiwan Semiconductor Manufacturing Company, Ltd. (ADR) | 2,705,092 | 153,568 | ||||||||
RingCentral, Inc., Class A2 | 1,500,100 | 427,544 | ||||||||
Shopify Inc., Class A, subordinate voting shares2 | 330,000 | 313,236 | ||||||||
Visa Inc., Class A | 1,577,417 | 304,710 | ||||||||
Intel Corp. | 3,621,900 | 216,698 | ||||||||
ServiceNow, Inc.2 | 484,730 | 196,345 | ||||||||
PayPal Holdings, Inc.2 | 976,700 | 170,170 | ||||||||
MongoDB, Inc., Class A2 | 603,209 | 136,530 | ||||||||
Autodesk, Inc.2 | 558,608 | 133,613 | ||||||||
Advanced Micro Devices, Inc.2 | 2,457,039 | 129,265 | ||||||||
Mastercard Inc., Class A | 421,000 | 124,490 | ||||||||
Other securities | 1,347,369 | |||||||||
|
| |||||||||
7,334,201 | ||||||||||
|
| |||||||||
Communication | Facebook, Inc., Class A2 | 7,548,342 | 1,714,002 | |||||||
services | Netflix, Inc.2 | 3,476,160 | 1,581,792 | |||||||
19.45% | Alphabet Inc., Class C2 | 504,547 | 713,233 | |||||||
Alphabet Inc., Class A2 | 60,216 | 85,389 | ||||||||
Charter Communications, Inc., Class A2 | 879,480 | 448,570 | ||||||||
T-Mobile US, Inc.2 | 4,061,000 | 422,953 | ||||||||
Activision Blizzard, Inc. | 5,286,790 | 401,267 | ||||||||
Snap Inc., Class A2 | 9,330,000 | 219,162 | ||||||||
Comcast Corp., Class A | 5,046,197 | 196,701 | ||||||||
Other securities | 113,544 | |||||||||
|
| |||||||||
5,896,613 | ||||||||||
|
| |||||||||
Consumer | Tesla, Inc.2 | 1,908,500 | 2,060,817 | |||||||
discretionary | Amazon.com, Inc.2 | 595,716 | 1,643,473 | |||||||
17.79% | Dollar General Corp. | 1,743,646 | 332,182 | |||||||
Home Depot, Inc. | 831,036 | 208,183 | ||||||||
Toll Brothers, Inc. | 3,800,000 | 123,842 | ||||||||
Other securities | 1,024,947 | |||||||||
|
| |||||||||
5,393,444 | ||||||||||
|
| |||||||||
Health care | UnitedHealth Group Inc. | 2,897,719 | 854,682 | |||||||
15.71% | Intuitive Surgical, Inc.2 | 1,075,500 | 612,852 | |||||||
Regeneron Pharmaceuticals, Inc.2 | 842,500 | 525,425 | ||||||||
Humana Inc. | 1,084,800 | 420,631 | ||||||||
Vertex Pharmaceuticals Inc.2 | 1,275,061 | 370,163 | ||||||||
Centene Corp.2 | 3,835,000 | 243,714 | ||||||||
Thermo Fisher Scientific Inc. | 598,500 | 216,861 | ||||||||
Seattle Genetics, Inc.2 | 1,248,154 | 212,086 | ||||||||
ResMed Inc. | 755,000 | 144,960 | ||||||||
Other securities | 1,163,370 | |||||||||
|
| |||||||||
4,764,744 | ||||||||||
|
| |||||||||
Financials | Berkshire Hathaway Inc., Class B2 | 942,100 | 168,174 | |||||||
5.07% | Intercontinental Exchange, Inc. | 1,592,900 | 145,910 | |||||||
First Republic Bank | 1,296,297 | 137,395 | ||||||||
Other securities | 1,086,595 | |||||||||
|
| |||||||||
1,538,074 | ||||||||||
|
|
34 | American Funds Insurance Series |
Table of Contents
Growth Fund
Common stocks
| Shares
| Value
| ||||||||
Industrials | TransDigm Group Inc. | 736,200 | $ | 325,437 | ||||||
5.02% | CSX Corp. | 1,920,800 | 133,957 | |||||||
MTU Aero Engines AG1,2 | 745,782 | 128,891 | ||||||||
Other securities | 932,396 | |||||||||
|
| |||||||||
1,520,681 | ||||||||||
|
| |||||||||
Materials | Franco-Nevada Corp. (CAD denominated) | 1,147,206 | 160,259 | |||||||
2.94% | Wheaton Precious Metals Corp. | 2,833,400 | 124,811 | |||||||
Other securities | 606,480 | |||||||||
|
| |||||||||
891,550 | ||||||||||
|
| |||||||||
Consumer staples | Philip Morris International Inc. | 1,985,900 | 139,132 | |||||||
2.27% | Costco Wholesale Corp. | 411,431 | 124,750 | |||||||
British American Tobacco PLC1 | 3,000,800 | 115,295 | ||||||||
British American Tobacco PLC (ADR) | 195,000 | 7,570 | ||||||||
Other securities | 302,284 | |||||||||
|
| |||||||||
689,031 | ||||||||||
|
| |||||||||
Real estate | Equinix, Inc. REIT | 356,975 | 250,703 | |||||||
1.43% | American Tower Corp. REIT | 501,188 | 129,577 | |||||||
Other securities | 52,008 | |||||||||
|
| |||||||||
432,288 | ||||||||||
|
| |||||||||
Energy | Other securities | 359,863 | ||||||||
|
| |||||||||
1.19% | ||||||||||
Utilities | Other securities | 119,172 | ||||||||
|
| |||||||||
0.39% | Total common stocks (cost: $14,123,528,000) | 28,939,661 | ||||||||
|
| |||||||||
Preferred securities 0.08%
| ||||||||||
Information technology | Other securities | 25,573 | ||||||||
|
| |||||||||
0.08% | Total preferred securities (cost: $27,479,000) | 25,573 | ||||||||
|
| |||||||||
Rights & warrants 0.00%
| ||||||||||
Communication | T-Mobile US, Inc., rights, expire 20202 | 3,611,200 | 607 | |||||||
|
| |||||||||
services | 607 | |||||||||
|
| |||||||||
0.00% | Total rights & warrants (cost: $0) | 607 | ||||||||
|
| |||||||||
Convertible bonds & notes 0.13%
| Principal amount
| |||||||||
Consumer staples | Other securities | 39,060 | ||||||||
|
| |||||||||
0.13% | Total convertible bonds & notes (cost: $39,059,000) | 39,060 | ||||||||
|
|
American Funds Insurance Series | 35 |
Table of Contents
Growth Fund
Short-term securities 3.98%
| Shares
| Value
| ||||||||
Money market investments 3.98% | ||||||||||
Capital Group Central Cash Fund 0.18%3 | 12,050,749 | $ | 1,205,195 | |||||||
|
| |||||||||
Total short-term securities (cost: $1,205,162,000) | 1,205,195 | |||||||||
|
| |||||||||
Total investment securities 99.64% (cost: $15,395,228,000) | 30,210,096 | |||||||||
Other assets less liabilities 0.36% | 110,241 | |||||||||
|
| |||||||||
Net assets 100.00% | $ | 30,320,337 | ||||||||
|
|
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 $46,931,000, an aggregate cost of $46,526,000, and which represented .15% of the net assets of the fund) were acquired from 12/21/2018 to 4/17/2020 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject them to legal or contractual restrictions on resale. “Other securities” also includes a security (with a value of $9,526,000, which represented .03% 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.
1Valued 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 $1,917,364,000, which represented 6.32% of the net assets of the fund. This amount includes $1,807,025,000 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.
2Security did not produce income during the last 12 months.
3Rate represents the seven-day yield at 6/30/2020.
Key to abbreviations
ADR = American Depositary Receipts
CAD = Canadian dollars
See notes to financial statements.
36 | American Funds Insurance Series |
Table of Contents
Summary investment portfolio June 30, 2020 | unaudited |
Common stocks 88.05%
| Shares
| Value (000)
| ||||||||
Consumer | Alibaba Group Holding Ltd.1,2 | 10,117,800 | $ | 273,411 | ||||||
discretionary | Alibaba Group Holding Ltd. (ADR)2 | 17,700 | 3,818 | |||||||
16.11% | MercadoLibre, Inc.2 | 223,000 | 219,827 | |||||||
Sony Corp.1 | 2,242,700 | 153,583 | ||||||||
Meituan Dianping, Class B1,2 | 3,440,364 | 76,422 | ||||||||
Fast Retailing Co., Ltd.1 | 125,900 | 72,085 | ||||||||
Galaxy Entertainment Group Ltd.1 | 9,826,000 | 66,717 | ||||||||
adidas AG1,2 | 216,336 | 56,598 | ||||||||
Delivery Hero SE1,2 | 547,143 | 55,747 | ||||||||
Kering SA1 | 99,188 | 53,876 | ||||||||
Other securities | 406,812 | |||||||||
|
| |||||||||
1,438,896 | ||||||||||
|
| |||||||||
Financials | AIA Group Ltd.1 | 39,521,100 | 367,826 | |||||||
16.04% | HDFC Bank Ltd.1 | 17,086,200 | 243,557 | |||||||
HDFC Bank Ltd. (ADR) | 531,294 | 24,153 | ||||||||
Kotak Mahindra Bank Ltd.1 | 10,657,149 | 192,318 | ||||||||
Ping An Insurance (Group) Co. of China, Ltd., Class H1 | 9,161,100 | 91,492 | ||||||||
Ping An Insurance (Group) Co. of China, Ltd., Class A1 | 612,202 | 6,185 | ||||||||
BNP Paribas SA1,2 | 1,851,058 | 73,382 | ||||||||
Axis Bank Ltd.1 | 10,492,355 | 57,203 | ||||||||
Other securities | 377,089 | |||||||||
|
| |||||||||
1,433,205 | ||||||||||
|
| |||||||||
Health care | Chugai Pharmaceutical Company, Ltd.1 | 3,896,700 | 208,306 | |||||||
15.93% | Daiichi Sankyo Company, Ltd.1 | 2,160,000 | 176,400 | |||||||
Novartis AG1 | 1,808,333 | 157,127 | ||||||||
Alcon Inc.1,2 | 1,988,239 | 113,919 | ||||||||
Takeda Pharmaceutical Company, Ltd.1 | 2,859,865 | 102,070 | ||||||||
Grifols, SA, Class A, non-registered shares1 | 2,691,000 | 81,631 | ||||||||
Grifols, SA, Class B (ADR) | 793,690 | 14,477 | ||||||||
Teva Pharmaceutical Industries Ltd. (ADR)2 | 7,216,598 | 88,981 | ||||||||
Fresenius SE & Co. KGaA1,2 | 1,740,654 | 85,920 | ||||||||
Hikma Pharmaceuticals PLC1 | 2,371,000 | 65,169 | ||||||||
WuXi Biologics (Cayman) Inc.1,2 | 2,304,000 | 42,216 | ||||||||
WuXi Biologics (Cayman) Inc.2 | 1,065,000 | 18,825 | ||||||||
Olympus Corp.1 | 2,963,000 | 57,068 | ||||||||
Other securities | 210,929 | |||||||||
|
| |||||||||
1,423,038 | ||||||||||
|
| |||||||||
Industrials | Airbus SE, non-registered shares1,2 | 2,732,749 | 194,459 | |||||||
10.57% | Recruit Holdings Co., Ltd.1 | 3,646,709 | 124,659 | |||||||
Knorr-Bremse AG, non-registered shares1,2 | 847,671 | 85,768 | ||||||||
Safran SA1,2 | 681,300 | 68,152 | ||||||||
Melrose Industries PLC1 | 45,834,933 | 64,602 | ||||||||
NIBE Industrier AB, Class B1,2 | 2,534,550 | 55,936 | ||||||||
Other securities | 350,450 | |||||||||
|
| |||||||||
944,026 | ||||||||||
|
| |||||||||
Communication | SoftBank Group Corp.1 | 3,657,500 | 184,293 | |||||||
services | Tencent Holdings Ltd.1 | 2,179,387 | 139,990 | |||||||
6.25% | Altice Europe NV, Class A1,2 | 13,236,760 | 50,964 | |||||||
Other securities | 182,944 | |||||||||
|
| |||||||||
558,191 | ||||||||||
|
|
American Funds Insurance Series | 37 |
Table of Contents
International Fund
Common stocks (continued)
| Shares
| Value
| ||||||||
Consumer staples | Nestlé SA1 | 976,000 | $ | 107,824 | ||||||
5.47% | Pernod Ricard SA1 | 536,814 | 84,371 | |||||||
Kirin Holdings Company, Ltd.1 | 2,605,800 | 54,954 | ||||||||
Other securities | 241,286 | |||||||||
|
| |||||||||
488,435 | ||||||||||
|
| |||||||||
Energy | Reliance Industries Ltd.1 | 8,663,364 | 195,802 | |||||||
4.20% | Reliance Industries Ltd., interim shares1,2 | 196,599 | 2,077 | |||||||
BP PLC1 | 13,959,863 | 53,053 | ||||||||
Other securities | 124,124 | |||||||||
|
| |||||||||
375,056 | ||||||||||
|
| |||||||||
Information | ASML Holding NV1 | 373,435 | 136,893 | |||||||
technology | PagSeguro Digital Ltd., Class A2 | 1,392,000 | 49,193 | |||||||
4.18% | Other securities | 187,660 | ||||||||
|
| |||||||||
373,746 | ||||||||||
|
| |||||||||
Utilities | ENN Energy Holdings Ltd.1 | 14,004,000 | 157,281 | |||||||
3.86% | E.ON SE1 | 7,101,000 | 79,835 | |||||||
China Gas Holdings Ltd.1 | 24,134,000 | 74,320 | ||||||||
Other securities | 33,159 | |||||||||
|
| |||||||||
344,595 | ||||||||||
|
| |||||||||
Materials | Vale SA, ordinary nominative (ADR) | 7,755,993 | 79,964 | |||||||
3.79% | Vale SA, ordinary nominative | 102,481 | 1,054 | |||||||
First Quantum Minerals Ltd. | 6,215,400 | 49,537 | ||||||||
Other securities | 208,271 | |||||||||
|
| |||||||||
338,826 | ||||||||||
|
| |||||||||
Real estate | China Overseas Land & Investment Ltd.1 | 17,790,000 | 53,723 | |||||||
1.65% | Other securities | 93,642 | ||||||||
|
| |||||||||
147,365 | ||||||||||
|
| |||||||||
Total common stocks (cost: $6,302,499,000) | 7,865,379 | |||||||||
|
| |||||||||
Preferred securities 1.01%
| ||||||||||
Health care | Grifols, SA, Class B, nonvoting preferred, non-registered shares1 | 3,026,230 | 55,587 | |||||||
|
| |||||||||
0.62% | 55,587 | |||||||||
|
| |||||||||
Energy | Other securities | 34,408 | ||||||||
|
| |||||||||
0.39% | Total preferred securities (cost: $86,966,000) | 89,995 | ||||||||
|
| |||||||||
Rights & warrants 0.27% | ||||||||||
Health care | Other securities | 24,374 | ||||||||
|
| |||||||||
0.27% | Total rights & warrants (cost: $21,623,000) | 24,374 | ||||||||
|
|
38 | American Funds Insurance Series |
Table of Contents
International Fund
Convertible bonds & notes 0.03%
| Principal amount
| Value (000)
| ||||||||
Health care | Other securities | $ | 2,624 | |||||||
|
| |||||||||
0.03% | Total convertible bonds & notes (cost: $5,855,000) | 2,624 | ||||||||
|
| |||||||||
Bonds, notes & other debt instruments 0.46%
| ||||||||||
Corporate bonds & notes 0.35% | ||||||||||
Other | Other securities | 31,462 | ||||||||
|
| |||||||||
0.35% | ||||||||||
Bonds & notes of governments & government agencies outside the U.S. 0.11% | ||||||||||
Bonds & notes of governments & government agencies outside the U.S. | Other securities | 9,738 | ||||||||
|
| |||||||||
0.11% | Total bonds, notes & other debt instruments (cost: $38,545,000) | 41,200 | ||||||||
|
|
Short-term securities 9.92%
| Shares | |||||||||
Money market investments 9.92% | ||||||||||
Capital Group Central Cash Fund 0.18%3 | 8,753,403 | 875,428 | ||||||||
Goldman Sachs Financial Square Government Fund 0.15%3,4 | 10,827,238 | 10,827 | ||||||||
|
| |||||||||
886,255 | ||||||||||
|
| |||||||||
Total short-term securities (cost: $886,243,000) | 886,255 | |||||||||
|
| |||||||||
Total investment securities 99.74% (cost: $7,341,731,000) | 8,909,827 | |||||||||
Other assets less liabilities 0.26% | 23,140 | |||||||||
|
| |||||||||
Net assets 100.00% | $ | 8,932,976 | ||||||||
|
|
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 $49,611,000, which represented .56% 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 $11,451,000, which represented .13% of the net assets of the fund. Refer to Note 5 for more information on securities lending.
1Valued 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 $7,037,313,000, which represented 78.78% of the net assets of the fund. This amount includes $7,012,933,000 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.
2Security did not produce income during the last 12 months.
3Rate represents the seven-day yield at 6/30/2020.
4Security purchased with cash collateral from securities on loan. Refer to Note 5 for more information on securities lending.
Key to abbreviation
ADR = American Depositary Receipts
See notes to financial statements.
American Funds Insurance Series | 39 |
Table of Contents
Summary investment portfolio June 30, 2020 | unaudited |
Common stocks 90.74%
| Shares
| Value (000)
| ||||||||
Information | Microsoft Corp. | 451,633 | $ | 91,912 | ||||||
technology | Taiwan Semiconductor Manufacturing Company, Ltd.1 | 4,327,000 | 45,788 | |||||||
18.11% | Mastercard Inc., Class A | 145,400 | 42,995 | |||||||
PagSeguro Digital Ltd., Class A2 | 1,198,655 | 42,360 | ||||||||
PayPal Holdings, Inc.2 | 208,035 | 36,246 | ||||||||
Adobe Inc.2 | 74,959 | 32,630 | ||||||||
Keyence Corp.1 | 76,200 | 31,815 | ||||||||
ASML Holding NV1 | 84,165 | 30,853 | ||||||||
Broadcom Inc. | 91,846 | 28,988 | ||||||||
StoneCo Ltd., Class A2 | 740,635 | 28,707 | ||||||||
Visa Inc., Class A | 130,469 | 25,203 | ||||||||
Silergy Corp.1 | 357,000 | 23,168 | ||||||||
Other securities | 162,980 | |||||||||
|
| |||||||||
623,645 | ||||||||||
|
| |||||||||
Consumer | Alibaba Group Holding Ltd.1,2 | 2,541,204 | 68,670 | |||||||
discretionary | MercadoLibre, Inc.2 | 64,355 | 63,439 | |||||||
13.72% | Naspers Ltd., Class N1 | 158,714 | 28,954 | |||||||
Delivery Hero SE1,2 | 281,369 | 28,668 | ||||||||
LVMH Moët Hennessy-Louis Vuitton SE1 | 62,064 | 27,184 | ||||||||
Meituan Dianping, Class B1,2 | 947,102 | 21,038 | ||||||||
Galaxy Entertainment Group Ltd.1 | 2,944,000 | 19,989 | ||||||||
Hermès International1 | 21,010 | 17,535 | ||||||||
Other securities | 197,128 | |||||||||
|
| |||||||||
472,605 | ||||||||||
|
| |||||||||
Health care | Thermo Fisher Scientific Inc. | 89,671 | 32,491 | |||||||
12.60% | Zai Lab Ltd. (ADR)2 | 341,308 | 28,032 | |||||||
AstraZeneca PLC1 | 252,263 | 26,298 | ||||||||
BioMarin Pharmaceutical Inc.2 | 180,963 | 22,320 | ||||||||
Abbott Laboratories | 222,506 | 20,344 | ||||||||
Notre Dame Intermédica Participações SA | 1,575,057 | 19,698 | ||||||||
Other securities | 284,950 | |||||||||
|
| |||||||||
434,133 | ||||||||||
|
| |||||||||
Financials | Kotak Mahindra Bank Ltd.1 | 3,140,269 | 56,669 | |||||||
11.57% | AIA Group Ltd.1 | 4,670,200 | 43,466 | |||||||
HDFC Bank Ltd.1 | 2,485,232 | 35,426 | ||||||||
HDFC Bank Ltd. (ADR) | 80,205 | 3,646 | ||||||||
B3 SA - Brasil, Bolsa, Balcao | 3,275,259 | 33,180 | ||||||||
Sberbank of Russia PJSC (ADR)1,2 | 1,384,243 | 15,726 | ||||||||
Sberbank of Russia PJSC (ADR)2 | 237,133 | 2,689 | ||||||||
Société Générale1,2 | 1,090,697 | 18,146 | ||||||||
XP Inc., Class A2 | 425,619 | 17,880 | ||||||||
Ping An Insurance (Group) Co. of China, Ltd., Class H1 | 1,711,300 | 17,091 | ||||||||
Other securities | 154,652 | |||||||||
|
| |||||||||
398,571 | ||||||||||
|
| |||||||||
Communication | Tencent Holdings Ltd.1 | 1,292,200 | 83,003 | |||||||
services | Facebook, Inc., Class A2 | 224,314 | 50,935 | |||||||
9.91% | Alphabet Inc., Class C2 | 29,315 | 41,440 | |||||||
Alphabet Inc., Class A2 | 6,339 | 8,989 | ||||||||
Sea Ltd., Class A (ADR)2 | 366,159 | 39,267 | ||||||||
Netflix, Inc.2 | 49,819 | 22,670 | ||||||||
Other securities | 95,102 | |||||||||
|
| |||||||||
341,406 | ||||||||||
|
|
40 | American Funds Insurance Series |
Table of Contents
New World Fund
Common stocks
| Shares
| Value (000)
| ||||||||
Consumer staples | Kweichow Moutai Co., Ltd., Class A1 | 276,007 | $ | 57,121 | ||||||
6.27% | Nestlé SA1 | 220,716 | 24,384 | |||||||
Other securities | 134,367 | |||||||||
|
| |||||||||
215,872 | ||||||||||
|
| |||||||||
Materials | Vale SA, ordinary nominative | 1,359,115 | 13,976 | |||||||
5.59% | Vale SA, ordinary nominative (ADR) | 1,244,771 | 12,833 | |||||||
Other securities | 165,754 | |||||||||
|
| |||||||||
192,563 | ||||||||||
|
| |||||||||
Industrials | Shanghai International Airport Co., Ltd., Class A1 | 2,645,527 | 26,833 | |||||||
5.39% | Airbus SE, non-registered shares1,2 | 248,789 | 17,704 | |||||||
CCR SA, ordinary nominative | 6,508,731 | 17,355 | ||||||||
Other securities | 123,791 | |||||||||
|
| |||||||||
185,683 | ||||||||||
|
| |||||||||
Energy | Reliance Industries Ltd.1 | 3,061,067 | 69,184 | |||||||
3.85% | Reliance Industries Ltd., interim shares1,2 | 201,053 | 2,124 | |||||||
Petróleo Brasileiro SA (Petrobras), ordinary nominative (ADR) | 4,191,104 | 34,660 | ||||||||
Other securities | 26,668 | |||||||||
|
| |||||||||
132,636 | ||||||||||
|
| |||||||||
Utilities | China Gas Holdings Ltd.1 | 6,426,600 | 19,790 | |||||||
1.94% | ENN Energy Holdings Ltd.1 | 1,704,800 | 19,147 | |||||||
Other securities | 27,954 | |||||||||
|
| |||||||||
66,891 | ||||||||||
|
| |||||||||
Real estate | Other securities | 61,656 | ||||||||
|
| |||||||||
1.79% | Total common stocks (cost: $2,345,591,000) | 3,125,661 | ||||||||
|
| |||||||||
Preferred securities 1.03%
| ||||||||||
Energy | Petróleo Brasileiro SA (Petrobras), preferred nominative (ADR) | 391,890 | 3,123 | |||||||
0.11% | Petróleo Brasileiro SA (Petrobras), preferred nominative | 195,166 | 774 | |||||||
|
| |||||||||
3,897 | ||||||||||
|
| |||||||||
Other | Other securities | 31,650 | ||||||||
|
| |||||||||
0.92% | Total preferred securities (cost: $30,146,000) | 35,547 | ||||||||
|
| |||||||||
Rights & warrants 0.23% | ||||||||||
Other | Other securities | 7,781 | ||||||||
|
| |||||||||
0.23% | Total rights & warrants (cost: $3,911,000) | 7,781 | ||||||||
|
| |||||||||
Convertible bonds & notes 0.00%
| Principal amount
| |||||||||
Health care | Other securities | 133 | ||||||||
|
| |||||||||
0.00% | Total convertible bonds & notes (cost: $121,000) | 133 | ||||||||
|
|
American Funds Insurance Series | 41 |
Table of Contents
New World Fund
Bonds, notes & other debt instruments 3.38%
| Principal amount (000)
| Value (000)
| ||||||||
Bonds & notes of governments & government agencies outside the U.S. 2.94% | ||||||||||
Other securities | $ | 101,283 | ||||||||
|
| |||||||||
Corporate bonds & notes 0.41% | ||||||||||
Communication | Tencent Holdings Ltd. 3.24%-3.98% 2029-20503 | BRL980 | 1,035 | |||||||
services | Other securities | 213 | ||||||||
|
| |||||||||
0.04% | 1,248 | |||||||||
|
| |||||||||
Other | Other securities | 12,853 | ||||||||
|
| |||||||||
0.37% | Total corporate bonds & notes | 14,101 | ||||||||
|
| |||||||||
U.S. Treasury bonds & notes 0.03% | ||||||||||
U.S. Treasury | Other securities | 864 | ||||||||
|
| |||||||||
0.03% | Total bonds, notes & other debt instruments (cost: $115,629,000) | 116,248 | ||||||||
|
| |||||||||
Short-term securities 4.68%
| Shares
| |||||||||
Money market investments 4.68% | ||||||||||
Capital Group Central Cash Fund 0.18%4 | 1,531,568 | 153,172 | ||||||||
Goldman Sachs Financial Square Government Fund 0.15%4,5 | 8,081,474 | 8,082 | ||||||||
|
| |||||||||
161,254 | ||||||||||
|
| |||||||||
Total short-term securities (cost: $161,255,000) | 161,254 | |||||||||
|
| |||||||||
Total investment securities 100.06% (cost: $2,656,653,000) | 3,446,624 | |||||||||
Other assets less liabilities (0.06)% | (2,169 | ) | ||||||||
|
| |||||||||
Net assets 100.00% | $ | 3,444,455 | ||||||||
|
|
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” also includes securities which were pledged as collateral. The total value of pledged collateral was $171,000, which represented less than .01% of the net assets of the fund. “Other securities” also includes securities on loan. The total value of securities on loan was $8,556,000, which represented .25% of the net assets of the fund. Refer to Note 5 for more information on securities lending.
42 American Funds Insurance Series |
Table of Contents
New World Fund
Futures contracts
Contracts | Type | | Number of contracts |
| Expiration | | Notional amount (000 | 6 ) | | Value at 6/30/2020 (000 | 7 ) | | Unrealized appreciation at 6/30/2020 (000) |
| ||||||||||||||
30 Year Ultra U.S. Treasury Bond Futures | Long | 15 | September 2020 | $1,500 | $3,272 | $73 |
Forward currency contracts
Contract amount | Counterparty | Unrealized (depreciation) | ||||||||||||||||
Purchases (000) | Sales (000) | Settlement date | at 6/30/2020 (000) | |||||||||||||||
USD3,190 | EUR2,830 | Bank of New York Mellon | 7/20/2020 | $10 | ||||||||||||||
USD2,062 | CNH14,620 | Standard Chartered Bank | 7/20/2020 | (4 | ) | |||||||||||||
|
| |||||||||||||||||
$ 6 | ||||||||||||||||||
|
|
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 $1,876,796,000, which represented 54.49% of the net assets of the fund. This amount includes $1,863,131,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading.
2 Security did not produce income during the last 12 months.
3 Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $47,913,000, which represented 1.39% of the net assets of the fund.
4 Rate represents the seven-day yield at 6/30/2020.
5 Security purchased with cash collateral from securities on loan. Refer to Note 5 for more information on securities lending.
6 Notional amount is calculated based on the number of contracts and notional contract size.
7 Value is calculated based on the notional amount and current market price.
Key to abbreviations and symbol
ADR = American Depositary Receipts
BRL = Brazilian reais
CNH = Chinese yuan renminbi
EUR = Euros
USD/$ = U.S. dollars
See notes to financial statements.
American Funds Insurance Series | 43 |
Table of Contents
Blue Chip Income and Growth Fund
Summary investment portfolio June 30, 2020 | unaudited |
Common stocks 95.13%
| Shares
| Value (000)
| ||||||||
Health care | Abbott Laboratories | 3,635,500 | $ | 332,394 | ||||||
20.22% | Amgen Inc. | 1,258,510 | 296,832 | |||||||
Gilead Sciences, Inc. | 3,005,712 | 231,260 | ||||||||
AbbVie Inc. | 2,227,460 | 218,692 | ||||||||
UnitedHealth Group Inc. | 574,000 | 169,301 | ||||||||
Teva Pharmaceutical Industries Ltd. (ADR)1 | 10,333,800 | 127,416 | ||||||||
Humana Inc. | 172,700 | 66,964 | ||||||||
Medtronic PLC | 700,000 | 64,190 | ||||||||
Stryker Corp. | 296,800 | 53,480 | ||||||||
Other securities | 141,203 | |||||||||
|
| |||||||||
1,701,732 | ||||||||||
|
| |||||||||
Information | Microsoft Corp. | 2,498,500 | 508,470 | |||||||
technology | Broadcom Inc. | 951,400 | 300,271 | |||||||
15.23% | Mastercard Inc., Class A | 579,900 | 171,476 | |||||||
Apple Inc. | 400,000 | 145,920 | ||||||||
Intel Corp. | 1,100,000 | 65,813 | ||||||||
SS&C Technologies Holdings, Inc. | 1,153,800 | 65,167 | ||||||||
Other securities | 24,369 | |||||||||
|
| |||||||||
1,281,486 | ||||||||||
|
| |||||||||
Industrials | CSX Corp. | 3,780,162 | 263,628 | |||||||
12.24% | Raytheon Technologies Corp. | 3,589,236 | 221,169 | |||||||
General Dynamics Corp. | 980,000 | 146,471 | ||||||||
Union Pacific Corp. | 540,200 | 91,331 | ||||||||
Illinois Tool Works Inc. | 450,000 | 78,682 | ||||||||
Carrier Global Corp. | 2,817,000 | 62,594 | ||||||||
L3Harris Technologies, Inc. | 309,200 | 52,462 | ||||||||
Other securities | 113,518 | |||||||||
|
| |||||||||
1,029,855 | ||||||||||
|
| |||||||||
Energy | EOG Resources, Inc. | 4,588,100 | 232,433 | |||||||
9.98% | Exxon Mobil Corp. | 3,868,166 | 172,985 | |||||||
Baker Hughes Co., Class A | 9,448,000 | 145,405 | ||||||||
Diamondback Energy, Inc. | 1,320,033 | 55,204 | ||||||||
Pioneer Natural Resources Company | 486,800 | 47,560 | ||||||||
Other securities | 186,359 | |||||||||
|
| |||||||||
839,946 | ||||||||||
|
| |||||||||
Consumer staples | Constellation Brands, Inc., Class A | 1,221,600 | 213,719 | |||||||
9.67% | Philip Morris International Inc. | 2,485,000 | 174,099 | |||||||
British American Tobacco PLC (ADR) | 2,630,706 | 102,124 | ||||||||
Altria Group, Inc. | 2,092,000 | 82,111 | ||||||||
Coca-Cola Company | 1,250,000 | 55,850 | ||||||||
PepsiCo, Inc. | 400,000 | 52,904 | ||||||||
Keurig Dr Pepper Inc. | 1,746,500 | 49,600 | ||||||||
Other securities | 83,915 | |||||||||
|
| |||||||||
814,322 | ||||||||||
|
| |||||||||
Communication | Facebook, Inc., Class A1 | 1,478,100 | 335,632 | |||||||
services | Comcast Corp., Class A | 5,789,400 | 225,671 | |||||||
9.43% | Alphabet Inc., Class A1 | 80,975 | 114,826 | |||||||
Alphabet Inc., Class C1 | 3,000 | 4,241 | ||||||||
Netflix, Inc.1 | 201,800 | 91,827 | ||||||||
Other securities | 21,560 | |||||||||
|
| |||||||||
793,757 | ||||||||||
|
|
44 American Funds Insurance Series |
Table of Contents
Blue Chip Income and Growth Fund
Common stocks
| Shares
| Value (000)
| ||||||||
Consumer | Royal Caribbean Cruises Ltd. | 2,011,200 | $ | 101,164 | ||||||
discretionary | McDonald’s Corp. | 500,000 | 92,235 | |||||||
6.30% | Home Depot, Inc. | 303,099 | 75,929 | |||||||
General Motors Company | 2,901,500 | 73,408 | ||||||||
Lowe’s Companies, Inc. | 429,900 | 58,088 | ||||||||
Other securities | 129,340 | |||||||||
|
| |||||||||
530,164 | ||||||||||
|
| |||||||||
Financials | JPMorgan Chase & Co. | 1,269,000 | 119,362 | |||||||
4.65% | American International Group, Inc. | 2,597,300 | 80,984 | |||||||
Citigroup Inc. | 1,290,000 | 65,919 | ||||||||
Other securities | 124,936 | |||||||||
|
| |||||||||
391,201 | ||||||||||
|
| |||||||||
Utilities | Public Service Enterprise Group Inc. | 2,888,000 | 141,974 | |||||||
3.38% | Other securities | 142,281 | ||||||||
|
| |||||||||
284,255 | ||||||||||
|
| |||||||||
Materials | Linde PLC | 782,200 | 165,912 | |||||||
2.19% | Other securities | 18,107 | ||||||||
|
| |||||||||
184,019 | ||||||||||
|
| |||||||||
Real estate | Crown Castle International Corp. REIT | 525,000 | 87,859 | |||||||
1.84% | Other securities | 67,519 | ||||||||
|
| |||||||||
155,378 | ||||||||||
|
| |||||||||
Total common stocks (cost: $6,644,891,000) | 8,006,115 | |||||||||
|
| |||||||||
Rights & warrants 0.02%
| ||||||||||
Financials | Other securities | 1,612 | ||||||||
|
| |||||||||
0.02% | Total rights & warrants (cost: $17,793,000) | 1,612 | ||||||||
|
| |||||||||
Convertible stocks 0.71%
| ||||||||||
Other | Other securities | 60,007 | ||||||||
|
| |||||||||
0.71% | Total convertible stocks (cost: $57,918,000) | 60,007 | ||||||||
|
| |||||||||
Short-term securities 4.16%
| ||||||||||
Money market investments 4.16% | ||||||||||
Capital Group Central Cash Fund 0.18%2 | 3,495,899 | 349,625 | ||||||||
|
| |||||||||
Total short-term securities (cost: $349,565,000) | 349,625 | |||||||||
|
| |||||||||
Total investment securities 100.02% (cost: $7,070,167,000) | 8,417,359 | |||||||||
Other assets less liabilities (0.02)% | (1,690 | ) | ||||||||
|
| |||||||||
Net assets 100.00% | $ | 8,415,669 | ||||||||
|
|
American Funds Insurance Series | 45 |
Table of Contents
Blue Chip Income and Growth Fund
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
1Security did not produce income during the last 12 months.
2Rate represents the seven-day yield at 6/30/2020.
Key to abbreviation
ADR = American Depositary Receipts
See notes to financial statements.
46 American Funds Insurance Series |
Table of Contents
Summary investment portfolio June 30, 2020 | unaudited |
Common stocks 92.02%
| Shares
| Value
| ||||||||
Information | Microsoft Corp. | 281,000 | $ | 57,186 | ||||||
technology | Taiwan Semiconductor Manufacturing Company, Ltd.1 | 4,912,800 | 51,987 | |||||||
17.72% | PagSeguro Digital Ltd., Class A2 | 1,128,752 | 39,890 | |||||||
Apple Inc. | 105,990 | 38,665 | ||||||||
Broadcom Inc. | 121,200 | 38,252 | ||||||||
ASML Holding NV1 | 70,000 | 25,660 | ||||||||
Other securities | 87,750 | |||||||||
|
| |||||||||
339,390 | ||||||||||
|
| |||||||||
Financials | Société Générale1,2 | 2,106,881 | 35,052 | |||||||
14.22% | Fannie Mae2 | 13,706,000 | 29,742 | |||||||
Sberbank of Russia PJSC (ADR)1,2 | 1,710,000 | 19,427 | ||||||||
AIA Group Ltd.1 | 1,753,000 | 16,315 | ||||||||
UniCredit SpA1,2 | 1,686,696 | 15,485 | ||||||||
B3 SA - Brasil, Bolsa, Balcao | 1,500,000 | 15,196 | ||||||||
DBS Group Holdings Ltd.1 | 1,005,000 | 15,033 | ||||||||
Toronto-Dominion Bank (CAD denominated) | 300,700 | 13,420 | ||||||||
HDFC Bank Ltd.1 | 888,000 | 12,658 | ||||||||
Discover Financial Services | 249,000 | 12,472 | ||||||||
Other securities | 87,499 | |||||||||
|
| |||||||||
272,299 | ||||||||||
|
| |||||||||
Health care | Novartis AG1 | 360,000 | 31,281 | |||||||
12.30% | UnitedHealth Group Inc. | 86,300 | 25,454 | |||||||
Allogene Therapeutics, Inc.2 | 461,000 | 19,740 | ||||||||
Abbott Laboratories | 171,000 | 15,635 | ||||||||
Sarepta Therapeutics, Inc.2 | 94,500 | 15,152 | ||||||||
Eli Lilly and Company | 88,000 | 14,448 | ||||||||
Centene Corp.2 | 202,000 | 12,837 | ||||||||
Illumina, Inc.2 | 34,000 | 12,592 | ||||||||
Boston Scientific Corp.2 | 351,000 | 12,324 | ||||||||
Other securities | 76,184 | |||||||||
|
| |||||||||
235,647 | ||||||||||
|
| |||||||||
Consumer | LVMH Moët Hennessy-Louis Vuitton SE1 | 74,096 | 32,454 | |||||||
discretionary | Home Depot, Inc. | 75,500 | 18,914 | |||||||
9.09% | Flutter Entertainment PLC (EUR denominated)1 | 126,077 | 16,549 | |||||||
Alibaba Group Holding Ltd.1,2 | 553,000 | 14,944 | ||||||||
Other securities | 91,293 | |||||||||
|
| |||||||||
174,154 | ||||||||||
|
| |||||||||
Industrials | Airbus SE, non-registered shares1,2 | 607,200 | 43,208 | |||||||
8.83% | Lockheed Martin Corp. | 66,000 | 24,085 | |||||||
CCR SA, ordinary nominative | 7,680,800 | 20,480 | ||||||||
Safran SA1,2 | 123,500 | 12,354 | ||||||||
Other securities | 68,940 | |||||||||
|
| |||||||||
169,067 | ||||||||||
|
| |||||||||
Communication | Alphabet Inc., Class A2 | 21,800 | 30,914 | |||||||
services | Alphabet Inc., Class C2 | 7,000 | 9,895 | |||||||
7.18% | Comcast Corp., Class A | 546,000 | 21,283 | |||||||
Facebook, Inc., Class A2 | 65,000 | 14,760 | ||||||||
Other securities | 60,685 | |||||||||
|
| |||||||||
137,537 | ||||||||||
|
|
American Funds Insurance Series | 47 |
Table of Contents
Global Growth and Income Fund
Common stocks (continued)
| Shares
| Value (000)
| ||||||||
Utilities | E.ON SE1 | 3,644,000 | $ | 40,969 | ||||||
7.10% | Enel SpA1 | 3,539,000 | 30,489 | |||||||
Ørsted AS1 | 215,107 | 24,808 | ||||||||
Dominion Energy, Inc. | 150,000 | 12,177 | ||||||||
Other securities | 27,512 | |||||||||
|
| |||||||||
135,955 | ||||||||||
|
| |||||||||
Energy | Reliance Industries Ltd.1 | 1,606,099 | 36,300 | |||||||
5.26% | Reliance Industries Ltd., interim shares1,2 | 107,073 | 1,131 | |||||||
EOG Resources, Inc. | 652,000 | 33,030 | ||||||||
Gazprom PJSC (ADR)1 | 3,431,000 | 18,479 | ||||||||
Other securities | 11,753 | |||||||||
|
| |||||||||
100,693 | ||||||||||
|
| |||||||||
Consumer staples | Nestlé SA1 | 315,275 | 34,830 | |||||||
4.04% | Other securities | 42,560 | ||||||||
|
| |||||||||
77,390 | ||||||||||
|
| |||||||||
Materials | Koninklijke DSM NV1 | 109,000 | 15,066 | |||||||
3.36% | Fortescue Metals Group Ltd.1 | 1,441,882 | 13,835 | |||||||
Vale SA, ordinary nominative | 1,320,000 | 13,573 | ||||||||
Other securities | 21,822 | |||||||||
|
| |||||||||
64,296 | ||||||||||
|
| |||||||||
Real estate | Alexandria Real Estate Equities, Inc. REIT | 103,000 | 16,712 | |||||||
2.92% | Other securities | 39,154 | ||||||||
|
| |||||||||
55,866 | ||||||||||
|
| |||||||||
Total common stocks (cost: $1,380,244,000) | 1,762,294 | |||||||||
|
| |||||||||
Bonds, notes & other debt instruments 1.81%
| Principal amount
| |||||||||
Corporate bonds & notes 1.81% |
| |||||||||
Communication services | Sprint Corp. 7.25% 2021 | $ | 33,000 | 34,634 | ||||||
|
| |||||||||
1.81% | Total bonds, notes & other debt instruments (cost: $32,282,000) | 34,634 | ||||||||
|
| |||||||||
Short-term securities 6.44%
| Shares
| |||||||||
Money market investments 6.44% |
| |||||||||
Capital Group Central Cash Fund 0.18%3 | 1,232,229 | 123,235 | ||||||||
|
| |||||||||
Total short-term securities (cost: $123,219,000) | 123,235 | |||||||||
|
| |||||||||
Total investment securities 100.27% (cost: $1,535,745,000) | 1,920,163 | |||||||||
Other assets less liabilities (0.27)% | (5,094 | ) | ||||||||
|
| |||||||||
Net assets 100.00% | $ | 1,915,069 | ||||||||
|
|
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.
48 | American Funds Insurance Series |
Table of Contents
Global Growth and Income Fund
Forward currency contracts
Contract amount | Unrealized depreciation at 6/30/2020 (000) | |||||||||||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | |||||||||||||||
USD7,220 | AUD10,500 | Standard Chartered Bank | 7/10/2020 | $(27 | ) |
1Valued 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 $859,944,000, which represented 44.90% of the net assets of the fund. This entire amount relates to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading.
2Security did not produce income during the last 12 months.
3Rate represents the seven-day yield at 6/30/2020.
Key to abbreviations and symbol
ADR = American Depositary Receipts
AUD = Australian dollars
CAD = Canadian dollars
EUR = Euros
USD/$ = U.S. dollars
See notes to financial statements.
American Funds Insurance Series | 49 |
Table of Contents
Summary investment portfolio June 30, 2020 | unaudited |
Common stocks 92.90%
| Shares
| Value (000)
| ||||||||
Information | Microsoft Corp. | 9,389,500 | $ | 1,910,857 | ||||||
technology | Broadcom Inc. | 2,606,134 | 822,522 | |||||||
17.83% | Intel Corp. | 6,447,300 | 385,742 | |||||||
Mastercard Inc., Class A | 1,269,700 | 375,450 | ||||||||
Autodesk, Inc.1 | 921,000 | 220,294 | ||||||||
Visa Inc., Class A | 1,093,800 | 211,289 | ||||||||
Accenture PLC, Class A | 890,900 | 191,294 | ||||||||
Adobe Inc.1 | 375,900 | 163,633 | ||||||||
Other securities | 1,774,661 | |||||||||
|
| |||||||||
6,055,742 | ||||||||||
|
| |||||||||
Health care | Gilead Sciences, Inc. | 11,967,500 | 920,779 | |||||||
16.77% | UnitedHealth Group Inc. | 2,545,641 | 750,837 | |||||||
Abbott Laboratories | 6,125,669 | 560,070 | ||||||||
Amgen Inc. | 2,030,500 | 478,914 | ||||||||
Merck & Co., Inc. | 3,038,880 | 234,997 | ||||||||
Seattle Genetics, Inc.1 | 1,242,606 | 211,144 | ||||||||
AstraZeneca PLC2 | 1,631,800 | 170,110 | ||||||||
AstraZeneca PLC (ADR) | 721,200 | 38,144 | ||||||||
Eli Lilly and Company | 1,077,600 | 176,920 | ||||||||
Other securities | 2,153,303 | |||||||||
|
| |||||||||
5,695,218 | ||||||||||
|
| |||||||||
Communication | Facebook, Inc., Class A1 | 8,465,200 | 1,922,192 | |||||||
services | Netflix, Inc.1 | 1,945,925 | 885,474 | |||||||
14.54% | Alphabet Inc., Class C1 | 296,784 | 419,537 | |||||||
Alphabet Inc., Class A1 | 288,980 | 409,788 | ||||||||
Comcast Corp., Class A | 10,924,800 | 425,849 | ||||||||
Charter Communications, Inc., Class A1 | 401,569 | 204,816 | ||||||||
Verizon Communications Inc. | 3,001,600 | 165,478 | ||||||||
Other securities | 503,307 | |||||||||
|
| |||||||||
4,936,441 | ||||||||||
|
| |||||||||
Industrials | Northrop Grumman Corp. | 733,200 | 225,415 | |||||||
9.14% | BWX Technologies, Inc. | 3,880,911 | 219,815 | |||||||
CSX Corp. | 3,131,000 | 218,356 | ||||||||
L3Harris Technologies, Inc. | 1,035,500 | 175,693 | ||||||||
Norfolk Southern Corp. | 964,300 | 169,302 | ||||||||
Woodward, Inc. | 2,086,500 | 161,808 | ||||||||
Other securities | 1,934,101 | |||||||||
|
| |||||||||
3,104,490 | ||||||||||
|
| |||||||||
Financials | Intercontinental Exchange, Inc. | 3,183,555 | 291,614 | |||||||
8.69% | CME Group Inc., Class A | 1,779,800 | 289,289 | |||||||
JPMorgan Chase & Co. | 2,584,530 | 243,101 | ||||||||
Aon PLC, Class A | 1,214,800 | 233,970 | ||||||||
Marsh & McLennan Companies, Inc. | 2,162,201 | 232,155 | ||||||||
Nasdaq, Inc. | 1,719,600 | 205,441 | ||||||||
Moody’s Corp. | 674,558 | 185,321 | ||||||||
Other securities | 1,268,303 | |||||||||
|
| |||||||||
2,949,194 | ||||||||||
|
| |||||||||
Consumer | Amazon.com, Inc.1 | 395,030 | 1,089,817 | |||||||
discretionary | Lowe’s Companies, Inc. | 1,360,900 | 183,885 | |||||||
6.48% | Other securities | 926,728 | ||||||||
|
| |||||||||
2,200,430 | ||||||||||
|
|
50 American Funds Insurance Series |
Table of Contents
Growth-Income Fund
Common stocks
| Shares
| Value (000)
| ||||||||
Consumer staples | British American Tobacco PLC2 | 8,069,260 | $ | 310,032 | ||||||
5.98% | British American Tobacco PLC (ADR) | 479,440 | 18,612 | |||||||
Keurig Dr Pepper Inc. | 8,760,935 | 248,811 | ||||||||
Philip Morris International Inc. | 2,743,640 | 192,219 | ||||||||
Carlsberg A/S, Class B2 | 1,326,568 | 175,240 | ||||||||
Other securities | 1,087,456 | |||||||||
|
| |||||||||
2,032,370 | ||||||||||
|
| |||||||||
Materials | Celanese Corp. | 2,996,633 | 258,729 | |||||||
4.13% | Linde PLC | 892,800 | 189,372 | |||||||
LyondellBasell Industries NV | 2,453,100 | 161,218 | ||||||||
Other securities | 792,562 | |||||||||
|
| |||||||||
1,401,881 | ||||||||||
|
| |||||||||
Energy | Chevron Corp. | 2,625,200 | 234,247 | |||||||
3.74% | Other securities | 1,034,631 | ||||||||
|
| |||||||||
1,268,878 | ||||||||||
|
| |||||||||
Utilities | CenterPoint Energy, Inc.3 | 11,210,255 | 209,296 | |||||||
2.88% | CenterPoint Energy, Inc. | 1,111,000 | 20,742 | |||||||
Other securities | 746,495 | |||||||||
|
| |||||||||
976,533 | ||||||||||
|
| |||||||||
Real estate | Equinix, Inc. REIT | 555,418 | 390,070 | |||||||
2.72% | Crown Castle International Corp. REIT | 1,418,300 | 237,353 | |||||||
Other securities | 296,588 | |||||||||
|
| |||||||||
924,011 | ||||||||||
|
| |||||||||
Total common stocks (cost: $22,200,125,000) | 31,545,188 | |||||||||
|
| |||||||||
Convertible stocks 0.92%
| ||||||||||
Information technology | Broadcom Inc., Series A, cumulative convertible preferred shares, 8.00% 2022 | 78,400 | 87,365 | |||||||
|
| |||||||||
0.26% | ||||||||||
Other | Other securities | 224,617 | ||||||||
|
| |||||||||
0.66% | Total convertible stocks (cost: $268,527,000) | 311,982 | ||||||||
|
| |||||||||
Bonds, notes & other debt instruments 0.12%
| Principal amount (000)
| |||||||||
Corporate bonds & notes 0.12% | ||||||||||
Other | Other securities | 39,975 | ||||||||
|
| |||||||||
0.12% | Total corporate bonds & notes | 39,975 | ||||||||
|
| |||||||||
Total bonds, notes & other debt instruments (cost: $38,346,000) | 39,975 | |||||||||
|
|
American Funds Insurance Series | 51 |
Table of Contents
Growth-Income Fund
Short-term securities 6.14%
| Shares
| Value (000)
| ||||||||
Money market investments 6.14% | ||||||||||
Capital Group Central Cash Fund 0.18%4 | 20,848,370 | $ | 2,085,046 | |||||||
|
| |||||||||
Total short-term securities (cost: $2,084,942,000) | 2,085,046 | |||||||||
|
| |||||||||
Total investment securities 100.08% (cost: $24,591,940,000) | 33,982,191 | |||||||||
Other assets less liabilities (0.08)% | (27,852 | ) | ||||||||
|
| |||||||||
Net assets 100.00% | $ | 33,954,339 | ||||||||
|
|
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.
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. Further details on this holding and related transactions during the six months ended June 30, 2020, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized loss (000) | Net unrealized depreciation (000) | Dividend income (000) | Value of affiliate at 6/30/2020 (000) | |||||||||||||||||||||||||||||||||||||||||
Common stocks 0.00% | �� | |||||||||||||||||||||||||||||||||||||||||||||||
Industrials 0.00% | ||||||||||||||||||||||||||||||||||||||||||||||||
BWX Technologies, Inc.5 | 5,414,670 | 279,000 | 1,812,759 | 3,880,911 | $ | (16,774 | ) | $ | (23,515 | ) | $ | 1,697 | $ | — |
1Security did not produce income during the last 12 months.
2Valued 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 $2,744,357,000, which represented 8.08% 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.
3Acquired 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 $243,073,000, which represented .72% of the net assets of the fund.
4Rate represents the seven-day yield at 6/30/2020.
5Unaffiliated issuer at 6/30/2020.
Key to abbreviation
ADR = American Depositary Receipts
See notes to financial statements.
52 American Funds Insurance Series |
Table of Contents
International Growth and Income Fund
Summary investment portfolio June 30, 2020 | unaudited |
Common stocks 88.70%
| Shares
| Value (000)
| ||||||||
Financials | HDFC Bank Ltd.1 | 2,457,600 | $ | 35,032 | ||||||
18.26% | Zurich Insurance Group AG1 | 92,200 | 32,470 | |||||||
AIA Group Ltd.1 | 2,338,600 | 21,766 | ||||||||
Banco Santander, SA1 | 8,856,538 | 21,597 | ||||||||
ING Groep NV1 | 2,789,300 | 19,377 | ||||||||
Insurance Australia Group Ltd.1 | 3,666,000 | 14,654 | ||||||||
B3 SA - Brasil, Bolsa, Balcao | 1,302,000 | 13,190 | ||||||||
Sberbank of Russia PJSC (ADR)1,2 | 999,000 | 11,350 | ||||||||
Sony Financial Holdings Inc.1 | 410,400 | 9,877 | ||||||||
Other securities | 58,197 | |||||||||
|
| |||||||||
237,510 | ||||||||||
|
| |||||||||
Industrials | Shanghai International Airport Co., Ltd., Class A1 | 3,091,967 | 31,361 | |||||||
14.69% | Aena SME, SA, non-registered shares1,2 | 121,450 | 16,168 | |||||||
Airbus SE, non-registered shares1,2 | 216,160 | 15,382 | ||||||||
ASSA ABLOY AB, Class B1 | 681,100 | 13,829 | ||||||||
SAAB AB, Class B1,2 | 510,000 | 12,711 | ||||||||
Singapore Technologies Engineering Ltd1 | 5,270,000 | 12,506 | ||||||||
Deutsche Post AG1,2 | 342,000 | 12,476 | ||||||||
Recruit Holdings Co., Ltd.1 | 350,100 | 11,968 | ||||||||
Airports of Thailand PCL, foreign registered1 | 5,250,000 | 10,297 | ||||||||
Other securities | 54,440 | |||||||||
|
| |||||||||
191,138 | ||||||||||
|
| |||||||||
Health care | Novartis AG1 | 502,545 | 43,667 | |||||||
12.55% | Daiichi Sankyo Company, Ltd.1 | 453,000 | 36,995 | |||||||
Takeda Pharmaceutical Company, Ltd.1 | 518,353 | 18,500 | ||||||||
Fresenius SE & Co. KGaA1,2 | 283,701 | 14,004 | ||||||||
Chugai Pharmaceutical Company, Ltd.1 | 228,900 | 12,236 | ||||||||
Aier Eye Hospital Group Co., Ltd., Class A1 | 1,784,955 | 11,008 | ||||||||
Other securities | 26,926 | |||||||||
|
| |||||||||
163,336 | ||||||||||
|
| |||||||||
Consumer | Sony Corp.1 | 498,900 | 34,165 | |||||||
discretionary | LVMH Moët Hennessy-Louis Vuitton SE1 | 48,000 | 21,024 | |||||||
11.14% | GVC Holdings PLC1 | 1,975,100 | 18,097 | |||||||
Galaxy Entertainment Group Ltd.1 | 2,365,000 | 16,058 | ||||||||
Kering SA1 | 29,000 | 15,752 | ||||||||
Taylor Wimpey PLC1 | 7,352,400 | 12,971 | ||||||||
Alibaba Group Holding Ltd.1,2 | 430,800 | 11,641 | ||||||||
Other securities | 15,234 | |||||||||
|
| |||||||||
144,942 | ||||||||||
|
| |||||||||
Utilities | E.ON SE1 | 3,629,500 | 40,806 | |||||||
9.15% | SSE PLC1 | 1,320,450 | 22,295 | |||||||
ENN Energy Holdings Ltd.1 | 1,658,000 | 18,621 | ||||||||
National Grid PLC1 | 887,664 | 10,870 | ||||||||
Ørsted AS1 | 92,807 | 10,703 | ||||||||
Other securities | 15,821 | |||||||||
|
| |||||||||
119,116 | ||||||||||
|
| |||||||||
Communication | SoftBank Group Corp.1 | 580,800 | 29,265 | |||||||
services | Yandex NV, Class A2 | 470,000 | 23,509 | |||||||
6.65% | Tencent Holdings Ltd.1 | 297,700 | 19,123 | |||||||
Other securities | 14,575 | |||||||||
|
| |||||||||
86,472 | ||||||||||
|
|
American Funds Insurance Series | 53 |
Table of Contents
International Growth and Income Fund
Common stocks (continued)
| Shares
| Value (000)
| ||||||||
Information | SUMCO Corp.1 | 1,230,000 | $ | 18,830 | ||||||
technology | ASML Holding NV1 | 47,800 | 17,522 | |||||||
4.03% | Taiwan Semiconductor Manufacturing Company, Ltd.1 | 1,520,000 | 16,085 | |||||||
|
| |||||||||
52,437 | ||||||||||
|
| |||||||||
Consumer staples | British American Tobacco PLC1 | 548,402 | 21,070 | |||||||
3.89% | Imperial Brands PLC1 | 557,516 | 10,617 | |||||||
Other securities | 18,953 | |||||||||
|
| |||||||||
50,640 | ||||||||||
|
| |||||||||
Materials | Rio Tinto PLC1 | 243,800 | 13,719 | |||||||
3.83% | UPL Ltd.1,2 | 2,118,000 | 11,961 | |||||||
Air Liquide SA, non-registered shares1 | 79,200 | 11,412 | ||||||||
Other securities | 12,780 | |||||||||
|
| |||||||||
49,872 | ||||||||||
|
| |||||||||
Real estate | Sun Hung Kai Properties Ltd.1 | 1,241,000 | 15,816 | |||||||
2.80% | CK Asset Holdings Ltd.1 | 2,626,000 | 15,615 | |||||||
Other securities | 4,943 | |||||||||
|
| |||||||||
36,374 | ||||||||||
|
| |||||||||
Energy | Other securities | 22,204 | ||||||||
|
| |||||||||
1.71% | Total common stocks (cost: $1,056,951,000) | 1,154,041 | ||||||||
|
| |||||||||
Preferred securities 0.50%
| ||||||||||
Energy | Other securities | 6,478 | ||||||||
|
| |||||||||
0.50% | Total preferred securities (cost: $5,126,000) | 6,478 | ||||||||
|
| |||||||||
Rights & warrants 0.62%
| ||||||||||
Health care | Aier Eye Hospital Group Co., Ltd., Class A, warrants, expires 20211,3 | 958,500 | 5,734 | |||||||
0.62% | Aier Eye Hospital Group Co., Ltd., Class A, warrants, expires 20211,2,3 | 382,799 | 2,290 | |||||||
|
| |||||||||
8,024 | ||||||||||
|
| |||||||||
Total rights & warrants (cost: $8,134,000) | 8,024 | |||||||||
|
| |||||||||
Bonds, notes & other debt instruments 0.66%
| Principal amount (000)
| |||||||||
Bonds & notes of governments & government agencies outside the U.S. 0.37% | ||||||||||
Bonds & notes | Other securities | 4,738 | ||||||||
|
| |||||||||
of governments & government agencies outside the U.S. | ||||||||||
0.37% | ||||||||||
Corporate bonds & notes 0.29% | ||||||||||
Health care | Other securities | 3,823 | ||||||||
|
| |||||||||
0.29% | Total bonds, notes & other debt instruments (cost: $9,513,000) | 8,561 | ||||||||
|
|
54 American Funds Insurance Series |
Table of Contents
International Growth and Income Fund
Short-term securities 9.32%
| Shares
| Value (000)
| ||||||||
Money market investments 9.32% | ||||||||||
Capital Group Central Cash Fund 0.18%4 | 1,213,278 | $ | 121,340 | |||||||
|
| |||||||||
Total short-term securities (cost: $121,328,000) | 121,340 | |||||||||
|
| |||||||||
Total investment securities 99.80% (cost: $1,201,052,000) | 1,298,444 | |||||||||
Other assets less liabilities 0.20% | 2,540 | |||||||||
|
| |||||||||
Net assets 100.00% | $ | 1,300,984 | ||||||||
|
|
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.
1Valued 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 $1,088,755,000, which represented 83.69% of the net assets of the fund. This amount includes $1,080,727,000 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.
2Security did not produce income during the last 12 months.
3Acquired 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 $9,918,000, which represented .76% of the net assets of the fund.
4Rate represents the seven-day yield at 6/30/2020.
Key to abbreviation
ADR = American Depositary Receipts
See notes to financial statements.
American Funds Insurance Series | 55 |
Table of Contents
Summary investment portfolio June 30, 2020 | unaudited |
Common stocks 70.00%
| Shares
| Value (000)
| ||||||||
Health care | Gilead Sciences, Inc. | 302,403 | $ | 23,267 | ||||||
11.51% | AbbVie Inc. | 225,462 | 22,136 | |||||||
Amgen Inc. | 75,995 | 17,924 | ||||||||
GlaxoSmithKline PLC1 | 865,174 | 17,530 | ||||||||
Novartis AG1 | 152,562 | 13,256 | ||||||||
AstraZeneca PLC1 | 52,858 | 5,510 | ||||||||
AstraZeneca PLC (ADR) | 11,454 | 606 | ||||||||
Other securities | 10,470 | |||||||||
|
| |||||||||
110,699 | ||||||||||
|
| |||||||||
Consumer staples | British American Tobacco PLC1 | 550,162 | 21,138 | |||||||
9.86% | Philip Morris International Inc. | 262,907 | 18,419 | |||||||
Coca-Cola Company | 207,076 | 9,252 | ||||||||
General Mills, Inc. | 130,025 | 8,016 | ||||||||
Nestlé SA1 | 58,460 | 6,458 | ||||||||
Altria Group, Inc. | 131,620 | 5,166 | ||||||||
Other securities | 26,345 | |||||||||
|
| |||||||||
94,794 | ||||||||||
|
| |||||||||
Utilities | Dominion Energy, Inc. | 177,399 | 14,401 | |||||||
9.02% | National Grid PLC1 | 720,349 | 8,821 | |||||||
Iberdrola, SA, non-registered shares1 | 716,931 | 8,304 | ||||||||
E.ON SE1 | 734,500 | 8,258 | ||||||||
SSE PLC1 | 443,987 | 7,496 | ||||||||
EDP - Energias de Portugal, SA1 | 1,291,886 | 6,161 | ||||||||
Enel SpA1 | 619,762 | 5,339 | ||||||||
Other securities | 27,908 | |||||||||
|
| |||||||||
86,688 | ||||||||||
|
| |||||||||
Financials | Zurich Insurance Group AG1 | 25,819 | 9,093 | |||||||
9.00% | CME Group Inc., Class A | 41,952 | 6,819 | |||||||
Münchener Rückversicherungs-Gesellschaft AG1 | 20,578 | 5,340 | ||||||||
Truist Financial Corp. | 139,222 | 5,228 | ||||||||
JPMorgan Chase & Co. | 50,001 | 4,703 | ||||||||
DBS Group Holdings Ltd.1 | 312,400 | 4,673 | ||||||||
Other securities | 50,676 | |||||||||
|
| |||||||||
86,532 | ||||||||||
|
| |||||||||
Information | Broadcom Inc. | 84,199 | 26,574 | |||||||
technology | Microsoft Corp. | 96,458 | 19,630 | |||||||
8.08% | Taiwan Semiconductor Manufacturing Company, Ltd.1 | 790,800 | 8,368 | |||||||
Intel Corp. | 82,778 | 4,953 | ||||||||
Other securities | 18,178 | |||||||||
|
| |||||||||
77,703 | ||||||||||
|
| |||||||||
Real estate | Crown Castle International Corp. REIT | 117,596 | 19,680 | |||||||
6.15% | Digital Realty Trust, Inc. REIT | 37,881 | 5,383 | |||||||
CK Asset Holdings Ltd.1 | 891,000 | 5,298 | ||||||||
Other securities | 28,763 | |||||||||
|
| |||||||||
59,124 | ||||||||||
|
|
56 American Funds Insurance Series |
Table of Contents
Capital Income Builder
Common stocks
| Shares
| Value (000)
| ||||||||
Energy | Chevron Corp. | 108,909 | $ | 9,718 | ||||||
4.40% | TC Energy Corp. (CAD denominated) | 133,253 | 5,693 | |||||||
TC Energy Corp. | 36,765 | 1,576 | ||||||||
Enbridge Inc. (CAD denominated) | 216,401 | 6,580 | ||||||||
Other securities | 18,693 | |||||||||
|
| |||||||||
42,260 | ||||||||||
|
| |||||||||
Communication | Verizon Communications Inc. | 143,888 | 7,933 | |||||||
services | BCE Inc. (CAD denominated) | 179,328 | 7,479 | |||||||
4.26% | Nippon Telegraph and Telephone Corp.1 | 208,800 | 4,861 | |||||||
Other securities | 20,643 | |||||||||
|
| |||||||||
40,916 | ||||||||||
|
| |||||||||
Industrials | United Parcel Service, Inc., Class B | 63,582 | 7,069 | |||||||
3.74% | Raytheon Technologies Corp. | 80,975 | 4,990 | |||||||
Other securities | 23,888 | |||||||||
|
| |||||||||
35,947 | ||||||||||
|
| |||||||||
Materials | Dow Inc. | 181,570 | 7,401 | |||||||
2.91% | Other securities | 20,591 | ||||||||
|
| |||||||||
27,992 | ||||||||||
|
| |||||||||
Consumer discretionary | Other securities | 10,286 | ||||||||
|
| |||||||||
1.07% | Total common stocks (cost: $613,582,000) | 672,941 | ||||||||
|
| |||||||||
Preferred securities 0.09%
| ||||||||||
Information technology | Other securities | 808 | ||||||||
|
| |||||||||
0.09% | Total preferred securities (cost: $689,000) | 808 | ||||||||
|
| |||||||||
Rights & warrants 0.00%
| ||||||||||
Energy | Other securities | — | 2 | |||||||
|
| |||||||||
0.00% | Total rights & warrants (cost: $0) | — | 2 | |||||||
|
| |||||||||
Convertible stocks 1.36%
| ||||||||||
Utilities | Dominion Energy, Inc., Series A, convertible preferred shares, 7.25% 2022 | 9,000 | 912 | |||||||
0.44% | Other securities | 3,302 | ||||||||
|
| |||||||||
4,214 | ||||||||||
|
| |||||||||
Information technology | Broadcom Inc., Series A, cumulative convertible preferred shares, | |||||||||
0.42% | 8.00% 2022 | 3,638 | 4,054 | |||||||
|
| |||||||||
Real estate | Crown Castle International Corp. REIT, Series A, convertible preferred shares, | |||||||||
0.15% | 6.875% 2020 | 968 | 1,438 | |||||||
|
|
American Funds Insurance Series | 57 |
Table of Contents
Capital Income Builder
Convertible stocks (continued)
| Shares
| Value
| ||||||||
Other | Other securities | $ | 3,389 | |||||||
|
| |||||||||
0.35% | Total convertible stocks (cost: $12,012,000) | 13,095 | ||||||||
|
| |||||||||
Convertible bonds & notes 0.06%
| Principal amount
| |||||||||
Consumer discretionary | Other securities | 544 | ||||||||
|
| |||||||||
0.06% | Total convertible bonds & notes (cost: $541,000) | 544 | ||||||||
|
| |||||||||
Bonds, notes & other debt instruments 24.34%
| ||||||||||
U.S. Treasury bonds & notes 8.96% | ||||||||||
U.S. Treasury | U.S. Treasury 0.125% 2022 | $ | 20,800 | 20,788 | ||||||
8.11% | U.S. Treasury 0.375% 2025 | 13,757 | 13,819 | |||||||
U.S. Treasury 2.00% 20253 | 13,200 | 14,334 | ||||||||
U.S. Treasury 1.875% 2026 | 6,300 | 6,849 | ||||||||
U.S. Treasury 0.13%–2.00% 2022–20503 | 21,458 | 22,216 | ||||||||
|
| |||||||||
78,006 | ||||||||||
|
| |||||||||
U.S. Treasury | U.S. Treasury Inflation-Protected Securities 0.13%–0.25% 2025–20503,4 | 7,611 | 8,156 | |||||||
|
| |||||||||
inflation-protected | Total U.S. Treasury bonds & notes | 86,162 | ||||||||
|
| |||||||||
securities | ||||||||||
0.85% | ||||||||||
Mortgage-backed obligations 7.22% | ||||||||||
Federal agency | Fannie Mae Pool #MA4042 2.00% 20355 | 15,895 | 16,458 | |||||||
mortgage-backed | Fannie Mae Pool #CA5540 3.00% 20505 | 5,581 | 5,932 | |||||||
obligations | Fannie Mae 3.50%–5.00% 2033–20495 | 4,496 | 4,901 | |||||||
6.75% | Freddie Mac Pool #SD7512 3.00% 20505 | 7,699 | 8,199 | |||||||
Freddie Mac 3.50%–4.50% 2048–20495 | 1,453 | 1,576 | ||||||||
Uniform Mortgage-Backed Security 3.50% 20505,6 | 10,080 | 10,601 | ||||||||
Uniform Mortgage-Backed Securities 2.50%–3.00% 20355,6 | 4,125 | 4,319 | ||||||||
Other securities | 12,852 | |||||||||
|
| |||||||||
64,838 | ||||||||||
|
| |||||||||
Other | Other securities | 4,574 | ||||||||
|
| |||||||||
0.47% | Total mortgage-backed obligations | 69,412 | ||||||||
|
| |||||||||
Corporate bonds & notes 6.98% | ||||||||||
Utilities | Virginia Electric and Power Co. 4.00% 2046 | 85 | 102 | |||||||
1.01% | Other securities | 9,599 | ||||||||
|
| |||||||||
9,701 | ||||||||||
|
| |||||||||
Health care | AbbVie Inc. 2.95%–4.25% 2026–20497 | 461 | 515 | |||||||
1.01% | Amgen Inc. 3.375% 2050 | 150 | 165 | |||||||
Novartis Capital Corp. 1.75%–2.00% 2025–2027 | 328 | 345 | ||||||||
Other securities | 8,628 | |||||||||
|
| |||||||||
9,653 | ||||||||||
|
|
58 | American Funds Insurance Series |
Table of Contents
Capital Income Builder
Bonds, notes & other debt instruments
| Principal amount (000)
| Value (000)
| ||||||||
Consumer staples | British American Tobacco PLC 3.22%–4.91% 2026–2049 | $ | 1,540 | $ | 1,705 | |||||
0.50% | Philip Morris International Inc. 3.375% 2029 | 450 | 512 | |||||||
Other securities | 2,534 | |||||||||
|
| |||||||||
4,751 | ||||||||||
|
| |||||||||
Information | Broadcom Corp. 3.875% 2027 | 370 | 400 | |||||||
technology | Broadcom Inc. 5.00% 20307 | 805 | 927 | |||||||
0.40% | Other securities | 2,507 | ||||||||
|
| |||||||||
3,834 | ||||||||||
|
| |||||||||
Other | Other securities | 39,138 | ||||||||
|
| |||||||||
4.06% | Total corporate bonds & notes | 67,077 | ||||||||
|
| |||||||||
Bonds & notes of governments & government agencies outside the U.S. 0.14% |
| |||||||||
Bonds & notes of governments & government agencies outside the U.S. | Other securities | 1,339 | ||||||||
|
| |||||||||
0.14% | ||||||||||
Other bonds & notes 1.04% | ||||||||||
Other securities | 10,027 | |||||||||
|
| |||||||||
Total bonds, notes & other debt instruments (cost: $225,620,000) | 234,017 | |||||||||
|
| |||||||||
Short-term securities 5.56%
| Shares
| |||||||||
Money market investments 5.56% | ||||||||||
Capital Group Central Cash Fund 0.18%8 | 500,631 | 50,070 | ||||||||
Goldman Sachs Financial Square Government Fund 0.15%8,9 | 3,395,926 | 3,396 | ||||||||
|
| |||||||||
53,466 | ||||||||||
|
| |||||||||
Total short-term securities (cost: $53,463,000) | 53,466 | |||||||||
|
| |||||||||
Total investment securities 101.41% (cost: $905,907,000) | 974,871 | |||||||||
Other assets less liabilities (1.41)% | (13,570 | ) | ||||||||
|
| |||||||||
Net assets 100.00% | $ | 961,301 | ||||||||
|
|
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 on loan. The total value of securities on loan was $3,593,000, which represented .37% of the net assets of the fund. Refer to Note 5 for more information on securities lending.
American Funds Insurance Series | 59 |
Table of Contents
Capital Income Builder
Futures contracts
Contracts | Type | | Number of contracts |
| Expiration | | Notional amount (000) | 10
| | Value at 6/30/2020 (000) | 11
| | Unrealized (depreciation) appreciation at 6/30/2020 (000) |
| ||||||||||||||||||||||||||||||
90 Day Euro Dollar Futures | Short | 130 | September 2020 | $(32,500 | ) | $(32,414 | ) | $ (12 | ) | |||||||||||||||||||||||||||||||||||
90 Day Euro Dollar Futures | Short | 80 | March 2021 | (20,000 | ) | (19,960 | ) | (7 | ) | |||||||||||||||||||||||||||||||||||
90 Day Euro Dollar Futures | Short | 168 | March 2022 | (42,000 | ) | (41,924 | ) | (15 | ) | |||||||||||||||||||||||||||||||||||
2 Year U.S. Treasury Note Futures | Long | 15 | October 2020 | 3,000 | 3,312 | 1 | ||||||||||||||||||||||||||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 91 | October 2020 | 9,100 | 11,442 | 30 | ||||||||||||||||||||||||||||||||||||||
10 Year U.S. Treasury Note Futures | Short | 23 | September 2020 | (2,300 | ) | (3,201 | ) | (12 | ) | |||||||||||||||||||||||||||||||||||
10 Year Ultra U.S. Treasury Note Futures | Short | 31 | September 2020 | (3,100 | ) | (4,882 | ) | (24 | ) | |||||||||||||||||||||||||||||||||||
20 Year U.S. Treasury Bond Futures | Long | 7 | September 2020 | 700 | 1,250 | 18 | ||||||||||||||||||||||||||||||||||||||
30 Year Ultra U.S. Treasury Bond Futures | Long | 56 | September 2020 | 5,600 | 12,217 | 114 | ||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||||||
$ 93 | ||||||||||||||||||||||||||||||||||||||||||||
|
|
Forward currency contracts
Unrealized | ||||||||||||||||||||||
Contract amount | depreciation | |||||||||||||||||||||
Purchases | Sales | Settlement | at 6/30/2020 | |||||||||||||||||||
(000) | (000) | Counterparty | date | (000) | ||||||||||||||||||
MXN2,100 | USD95 | Goldman Sachs | 7/20/2020 | $ | (4 | ) |
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 6/30/2020 (000) | Upfront premium paid (000) | Unrealized (depreciation) appreciation at 6/30/2020 (000) | ||||||||||||||||||||||||||||||||||
U.S. EFFR | 0.11% | 5/18/2024 | $ | 6,200 | $ | – | 2 | $ | – | $– | 2 | |||||||||||||||||||||||||||||
3-month USD-LIBOR | 0.337% | 5/18/2025 | 21,500 | (19 | ) | – | (19 | ) | ||||||||||||||||||||||||||||||||
U.S. EFFR | 0.1275% | 6/25/2025 | 2,700 | (6 | ) | – | (6 | ) | ||||||||||||||||||||||||||||||||
U.S. EFFR | 0.0975% | 6/30/2025 | 1,460 | (1 | ) | – | (1 | ) | ||||||||||||||||||||||||||||||||
U.S. EFFR | 0.106% | 6/30/2025 | 1,190 | (1 | ) | – | (1 | ) | ||||||||||||||||||||||||||||||||
U.S. EFFR | 0.105% | 6/30/2025 | 2,700 | (2 | ) | – | (2 | ) | ||||||||||||||||||||||||||||||||
3-month USD-LIBOR | 0.5935% | 5/18/2030 | 7,200 | 26 | – | 26 | ||||||||||||||||||||||||||||||||||
3-month USD-LIBOR | 0.807% | 5/18/2050 | 1,800 | 55 | – | 55 | ||||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||||||
$ | – | $ | 52 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
Credit default swaps
Centrally cleared credit default swaps on credit indices – sell protection
Receive/Payment frequency | Pay | Expiration date | Notional (000) | Value at 6/30/2020 (000) | Upfront receipts (000) | Unrealized appreciation at 6/30/2020 (000) | ||||||||||||||||||||||||||||||||||||
5.00%/Quarterly | CDX.NA.HY.25 | 6/20/2025 | $ | 3,444 | $ | (24 | ) | $ | (251 | ) | $ | 227 |
60 | American Funds Insurance Series |
Table of Contents
Capital Income Builder
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.
1Valued 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 $273,388,000, which represented 28.44% 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.
2Amount less than one thousand.
3All or a portion of this security was pledged as collateral. The total value of pledged collateral was $2,514,000, which represented .26% of the net assets of the fund.
4Index-linked bond whose principal amount moves with a government price index.
5Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
6Purchased on a TBA basis.
7Acquired 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 $22,007,000, which represented 2.29% of the net assets of the fund.
8Rate represents the seven-day yield at 6/30/2020.
9Security purchased with cash collateral from securities on loan. Refer to Note 5 for more information on securities lending.
10Notional amount is calculated based on the number of contracts and notional contract size.
11Value is calculated based on the notional amount and current market price.
Key to abbreviations and symbol
ADR = American Depositary Receipts
CAD = Canadian dollars
EFFR = Effective Federal Funds Rate
LIBOR = London Interbank Offered Rate
MXN = Mexican pesos
TBA = To-be-announced
USD/$ = U.S. dollars
See notes to financial statements.
American Funds Insurance Series | 61 |
Table of Contents
Summary investment portfolio June 30, 2020 | unaudited |
Common stocks 59.62%
| Shares
| Value (000)
| ||||||||
Information | Microsoft Corp. | 5,441,900 | $ | 1,107,481 | ||||||
technology | Broadcom Inc. | 1,490,000 | 470,259 | |||||||
14.52% | Taiwan Semiconductor Manufacturing Company, Ltd. (ADR) | 6,056,700 | 343,839 | |||||||
ASML Holding NV (New York registered) (ADR) | 795,900 | 292,915 | ||||||||
ASML Holding NV1 | 70,000 | 25,661 | ||||||||
MKS Instruments, Inc. | 2,200,000 | 249,128 | ||||||||
VeriSign, Inc.2 | 1,100,000 | 227,513 | ||||||||
Dell Technologies Inc., Class C2 | 3,250,000 | 178,555 | ||||||||
Other securities | 938,740 | |||||||||
|
| |||||||||
3,834,091 | ||||||||||
|
| |||||||||
Health care | Johnson & Johnson | 3,885,000 | 546,348 | |||||||
11.48% | UnitedHealth Group Inc. | 1,322,300 | 390,012 | |||||||
Humana Inc. | 965,000 | 374,179 | ||||||||
Gilead Sciences, Inc. | 3,647,800 | 280,662 | ||||||||
Cigna Corp. | 1,275,000 | 239,254 | ||||||||
Abbott Laboratories | 2,200,000 | 201,146 | ||||||||
Thermo Fisher Scientific Inc. | 507,000 | 183,706 | ||||||||
Vertex Pharmaceuticals Inc.2 | 550,000 | 159,670 | ||||||||
Other securities | 655,341 | |||||||||
|
| |||||||||
3,030,318 | ||||||||||
|
| |||||||||
Financials | Chubb Ltd. | 2,200,000 | 278,564 | |||||||
9.23% | First Republic Bank | 1,980,000 | 209,860 | |||||||
CME Group Inc., Class A | 977,200 | 158,834 | ||||||||
Apollo Global Management, Inc., Class A | 2,769,732 | 138,265 | ||||||||
Bank of America Corp. | 5,750,000 | 136,563 | ||||||||
JPMorgan Chase & Co. | 1,400,000 | 131,684 | ||||||||
Other securities | 1,383,859 | |||||||||
|
| |||||||||
2,437,629 | ||||||||||
|
| |||||||||
Consumer | Amazon.com, Inc.2 | 171,400 | 472,862 | |||||||
discretionary | Home Depot, Inc. | 1,113,000 | 278,818 | |||||||
5.26% | Aramark | 8,000,000 | 180,560 | |||||||
Other securities | 456,858 | |||||||||
|
| |||||||||
1,389,098 | ||||||||||
|
| |||||||||
Consumer staples | Philip Morris International Inc. | 7,343,000 | 514,451 | |||||||
4.83% | Nestlé SA1 | 3,130,000 | 345,787 | |||||||
Nestlé SA (ADR) | 900,000 | 99,396 | ||||||||
Altria Group, Inc. | 3,300,000 | 129,525 | ||||||||
Other securities | 184,718 | |||||||||
|
| |||||||||
1,273,877 | ||||||||||
|
| |||||||||
Industrials | Northrop Grumman Corp. | 1,249,400 | 384,115 | |||||||
4.16% | Lockheed Martin Corp. | 663,000 | 241,942 | |||||||
CSX Corp. | 2,038,000 | 142,130 | ||||||||
L3Harris Technologies, Inc. | 791,100 | 134,226 | ||||||||
Other securities | 195,431 | |||||||||
|
| |||||||||
1,097,844 | ||||||||||
|
| |||||||||
Communication | Charter Communications, Inc., Class A2 | 727,126 | 370,863 | |||||||
services | Facebook, Inc., Class A2 | 952,100 | 216,194 | |||||||
3.72% | Other securities | 394,665 | ||||||||
|
| |||||||||
981,722 | ||||||||||
|
|
62 | American Funds Insurance Series |
Table of Contents
Asset Allocation Fund
Common stocks
| Shares
| Value (000)
| ||||||||
Materials | Dow Inc. | 4,800,000 | $ | 195,648 | ||||||
2.86% | LyondellBasell Industries NV | 2,368,100 | 155,631 | |||||||
Other securities | 404,438 | |||||||||
|
| |||||||||
755,717 | ||||||||||
|
| |||||||||
Utilities | Enel SpA1 | 24,000,000 | 206,764 | |||||||
1.48% | CMS Energy Corp. | 2,284,700 | 133,472 | |||||||
Other securities | 49,295 | |||||||||
|
| |||||||||
389,531 | ||||||||||
|
| |||||||||
Energy | Other securities | 337,131 | ||||||||
|
| |||||||||
1.28% | ||||||||||
Real estate | Crown Castle International Corp. REIT | 755,000 | 126,349 | |||||||
0.80% | Other securities | 84,827 | ||||||||
|
| |||||||||
211,176 | ||||||||||
|
| |||||||||
Total common stocks (cost: $10,640,057,000) | 15,738,134 | |||||||||
|
| |||||||||
Rights & warrants 0.00%
| ||||||||||
Other | Other securities | 133 | ||||||||
|
| |||||||||
0.00% | Total rights & warrants (cost: $181,000) | 133 | ||||||||
|
| |||||||||
Convertible stocks 0.63%
| ||||||||||
Information | Broadcom Inc., Series A, cumulative convertible preferred shares, | |||||||||
technology | 8.00% 2022 | 60,000 | 66,861 | |||||||
|
| |||||||||
0.25% | ||||||||||
Other | Other securities | 100,262 | ||||||||
|
| |||||||||
0.38% | Total convertible stocks (cost: $154,257,000) | 167,123 | ||||||||
|
| |||||||||
Convertible bonds & notes 0.00%
| Principal amount (000) | |||||||||
Communication services | Other securities | 71 | ||||||||
|
| |||||||||
0.00% | Total convertible bonds & notes (cost: $101,000) | 71 | ||||||||
|
| |||||||||
Bonds, notes & other debt instruments 33.05%
| ||||||||||
Corporate bonds & notes 13.30% | ||||||||||
Financials | ACE INA Holdings Inc. 2.30%–4.35% 2020–2045 | $ | 7,405 | 8,053 | ||||||
2.36% | Other securities | 615,296 | ||||||||
|
| |||||||||
623,349 | ||||||||||
|
| |||||||||
Health care | UnitedHealth Group Inc. 2.38%–4.45% 2024–2048 | 14,200 | 17,007 | |||||||
1.99% | Other securities | 510,034 | ||||||||
|
| |||||||||
527,041 | ||||||||||
|
|
American Funds Insurance Series | 63 |
Table of Contents
Asset Allocation Fund
Bonds, notes & other debt instruments (continued)
| Principal amount (000)
| Value (000)
| ||||||||
Corporate bonds & notes (continued) |
| |||||||||
Utilities | Other securities | $ | 470,370 | |||||||
|
| |||||||||
1.78% | ||||||||||
Communication | CCO Holdings LLC and CCO Holdings Capital Corp. 2.80%–5.75% 2025–20513 | $ | 32,594 | 33,583 | ||||||
services | Other securities | 333,739 | ||||||||
|
| |||||||||
1.39% | 367,322 | |||||||||
|
| |||||||||
Industrials | Northrop Grumman Corp. 2.55%–5.25% 2022–2050 | 13,454 | 15,313 | |||||||
1.04% | Other securities | 258,848 | ||||||||
|
| |||||||||
274,161 | ||||||||||
|
| |||||||||
Consumer | Amazon.com, Inc. 1.50%–2.80% 2023–2060 | 11,555 | 11,823 | |||||||
discretionary | Home Depot, Inc. 2.70%–4.50% 2028–2050 | 19,294 | 22,364 | |||||||
0.92% | Other securities | 209,411 | ||||||||
|
| |||||||||
243,598 | ||||||||||
|
| |||||||||
Consumer staples | Nestlé Holdings, Inc. 3.35% 20233 | 750 | 816 | |||||||
0.82% | Philip Morris International Inc. 1.88%–3.38% 2021–2030 | 13,663 | 14,607 | |||||||
Other securities | 200,236 | |||||||||
|
| |||||||||
215,659 | ||||||||||
|
| |||||||||
Information | Broadcom Corp. 3.875% 2027 | 3,060 | 3,311 | |||||||
technology | Broadcom Inc. 3.13%–5.00% 2022–20303 | 45,777 | 51,495 | |||||||
0.80% | Broadcom Ltd. 3.50%–3.63% 2024–2028 | 2,187 | 2,329 | |||||||
Microsoft Corp. 2.53%–4.20% 2027–2050 | 11,250 | 13,861 | ||||||||
Other securities | 141,396 | |||||||||
|
| |||||||||
212,392 | ||||||||||
|
| |||||||||
Other | Other securities | 578,658 | ||||||||
|
| |||||||||
2.20% | Total corporate bonds & notes | 3,512,550 | ||||||||
|
| |||||||||
U.S. Treasury bonds & notes 10.32% | ||||||||||
U.S. Treasury | U.S. Treasury 2.50% 2021 | 200,000 | 202,718 | |||||||
8.67% | U.S. Treasury 2.50% 2024 | 225,000 | 243,475 | |||||||
U.S. Treasury 1.375% 2025 | 131,900 | 138,562 | ||||||||
U.S. Treasury 0.625% 2030 | 174,477 | 173,945 | ||||||||
U.S. Treasury 2.375% 20494 | 103,700 | 128,014 | ||||||||
U.S. Treasury 2.00% 20504 | 131,548 | 150,590 | ||||||||
U.S. Treasury 0.13%–3.00% 2020–20494 | 1,195,247 | 1,252,209 | ||||||||
|
| |||||||||
2,289,513 | ||||||||||
|
| |||||||||
U.S. Treasury inflation-protected securities 1.65% | U.S. Treasury Inflation-Protected Security 1.00% 20494,5 | 100,974 | 135,026 | |||||||
U.S. Treasury Inflation-Protected Securities 0.13%–1.00% 2024–20504,5 | 278,644 | 300,565 | ||||||||
|
| |||||||||
435,591 | ||||||||||
|
| |||||||||
Total U.S. Treasury bonds & notes | 2,725,104 | |||||||||
|
| |||||||||
Mortgage-backed obligations 8.55% | ||||||||||
Federal agency | Fannie Mae 0%–7.50% 2021–20496,7 | 284,078 | 304,340 | |||||||
mortgage-backed | Government National Mortgage Assn. 2.50% 20506,8 | 127,582 | 133,981 | |||||||
obligations | Government National Mortgage Assn. 3.00%–4.50% 2048–20506,8 | 333,349 | 353,346 | |||||||
8.24% | Uniform Mortgage-Backed Security 2.50% 20506,8 | 213,217 | 221,323 |
64 American Funds Insurance Series |
Table of Contents
Asset Allocation Fund
Bonds, notes & other debt instruments | Principal amount (000) | Value (000) | ||||||||
Uniform Mortgage-Backed Security 3.00% 20506,8 | $ | 203,153 | $ | 213,613 | ||||||
Uniform Mortgage-Backed Security 3.50% 20506,8 | 147,711 | 155,364 | ||||||||
Uniform Mortgage-Backed Securities 2.00%–4.50% 2035–20506,8 | 386,355 | 404,676 | ||||||||
Other securities | 387,369 | |||||||||
|
| |||||||||
2,174,012 | ||||||||||
|
| |||||||||
Other | Other securities | 82,566 | ||||||||
|
| |||||||||
0.31% | Total mortgage-backed obligations | 2,256,578 | ||||||||
|
| |||||||||
Federal agency bonds & notes 0.05% | ||||||||||
Other | Fannie Mae 1.875% 2026 | 13,000 | 14,005 | |||||||
|
| |||||||||
0.83% | ||||||||||
Other securities | 217,692 | |||||||||
|
| |||||||||
Total bonds, notes & other debt instruments (cost: $8,377,384,000) | 8,725,929 | |||||||||
|
| |||||||||
Short-term securities 11.51% | Shares | |||||||||
Money market investments 11.51% | ||||||||||
Capital Group Central Cash Fund 0.18%9 | 29,928,879 | 2,993,187 | ||||||||
Goldman Sachs Financial Square Government Fund 0.15%9,10 | 45,304,569 | 45,304 | ||||||||
|
| |||||||||
3,038,491 | ||||||||||
|
| |||||||||
Total short-term securities (cost: $3,038,192,000) | 3,038,491 | |||||||||
|
| |||||||||
Total investment securities 104.81% (cost: $22,210,172,000) | 27,669,881 | |||||||||
Other assets less liabilities (4.81)% | (1,271,034 | ) | ||||||||
|
| |||||||||
Net assets 100.00% | $ | 26,398,847 | ||||||||
|
|
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 $38,597,000, which represented .15% of the net assets of the fund. Some securities in “Other securities” (with an aggregate value of $9,374,000, an aggregate cost of $9,168,000, and which represented .04% 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 | 65 |
Table of Contents
Asset Allocation Fund
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional (000) | Value at (000) | Unrealized at 6/30/2020 | ||||||||||||||||||||||
2 Year U.S. Treasury Note Futures | Long | 3,513 | October 2020 | $ | 702,600 | $ | 775,769 | $ | 121 | |||||||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 1,746 | October 2020 | 174,600 | 219,546 | 568 | ||||||||||||||||||||||
10 Year U.S. Treasury Note Futures | Long | 35 | September 2020 | 3,500 | 4,871 | 19 | ||||||||||||||||||||||
10 Year Ultra U.S. Treasury Note Futures | Short | 1,117 | September 2020 | (111,700 | ) | (175,910 | ) | (726 | ) | |||||||||||||||||||
20 Year U.S. Treasury Bond Futures | Long | 911 | September 2020 | 91,100 | 162,670 | 709 | ||||||||||||||||||||||
30 Year Ultra U.S. Treasury Bond Futures | Long | 280 | September 2020 | 28,000 | 61,084 | 57 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||
$ | 748 | |||||||||||||||||||||||||||
|
|
Swap contracts
Credit default swaps
Centrally cleared credit default swaps on credit indices – sell protection
Receive/ Payment frequency | Pay | Expiration date | Notional (000) | Value at 6/30/2020 (000) | Upfront receipts (000) | Unrealized appreciation at 6/30/2020 (000) | ||||||||||||||||||||||||||||||||||||||||||||||||||
1.00%/Quarterly | CDX.NA.IG.34 | 6/20/2025 | $ | 100 | $ | 1 | $ | 1 | $ | – | 13 |
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 six months ended June 30, 2020, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net (000) | Net unrealized appreciation (depreciation) (000) | Dividend income (000) | Value of affiliates at 6/30/2020 (000) | |||||||||||||||||||||||||
Common stocks 0.29% | ||||||||||||||||||||||||||||||||
Information technology 0.00% | ||||||||||||||||||||||||||||||||
MKS Instruments, Inc.14 | 2,800,000 | 200,000 | 800,000 | 2,200,000 | $ | 13,498 | $ | 967 | $ | 1,160 | $ | – | ||||||||||||||||||||
Health care 0.04% | ||||||||||||||||||||||||||||||||
NuCana PLC (ADR)2,15 | 1,189,677 | 742,476 | – | 1,932,153 | – | (694 | ) | – | 10,434 | |||||||||||||||||||||||
Consumer discretionary 0.25% | ||||||||||||||||||||||||||||||||
Kontoor Brands, Inc. | 3,250,000 | 450,000 | – | 3,700,000 | – | (79,883 | ) | 1,820 | 65,897 | |||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Total 0.29% | $ | 13,498 | $ | (79,610 | ) | $ | 2,980 | $ | 76,331 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
66 | American Funds Insurance Series |
Table of Contents
Asset Allocation 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.
1Valued 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 $1,138,575,000, which represented 4.31% of the net assets of the fund. This amount includes $1,119,010,000 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.
2Security did not produce income during the last 12 months.
3Acquired 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 $1,109,444,000, which represented 4.20% of the net assets of the fund.
4All or a portion of this security was pledged as collateral. The total value of pledged collateral was $9,317,000, which represented .04% of the net assets of the fund.
5Index-linked bond whose principal amount moves with a government price index.
6Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
7Coupon 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.
8Purchased on a TBA basis.
9Rate represents the seven-day yield at 6/30/2020.
10Security purchased with cash collateral from securities on loan. Refer to Note 5 for more information on securities lending.
11Notional amount is calculated based on the number of contracts and notional contract size.
12Value is calculated based on the notional amount and current market price.
13Amount less than one thousand.
14Unaffiliated issuer at 6/30/2020.
15All or a portion of this security was on loan. The total value of all such securities, including those in “Other securities,” was $47,984,000, which represented .18% of the net assets of the fund. Refer to Note 5 for more information on securities lending.
Key to abbreviations
ADR = American Depositary Receipts
TBA = To-be-announced
USD/$ = U.S. dollars
See notes to financial statements.
American Funds Insurance Series | 67 |
Table of Contents
Summary investment portfolio June 30, 2020 | unaudited |
Common stocks 58.88%
| Shares
| Value (000)
| ||||||||
Information | ASML Holding NV1 | 32,700 | $ | 11,986 | ||||||
technology | Taiwan Semiconductor Manufacturing Company, Ltd.1 | 860,000 | 9,101 | |||||||
13.45% | Broadcom Inc. | 26,895 | 8,488 | |||||||
Microsoft Corp. | 40,420 | 8,226 | ||||||||
PagSeguro Digital Ltd., Class A2 | 154,528 | 5,461 | ||||||||
Tokyo Electron Ltd.1 | 11,800 | 2,896 | ||||||||
Visa Inc., Class A | 14,600 | 2,820 | ||||||||
Keyence Corp.1 | 5,800 | 2,422 | ||||||||
Other securities | 4,189 | |||||||||
|
| |||||||||
55,589 | ||||||||||
|
| |||||||||
Health care | AstraZeneca PLC1 | 102,050 | 10,638 | |||||||
11.13% | Merck & Co., Inc. | 116,325 | 8,995 | |||||||
Humana Inc. | 14,800 | 5,739 | ||||||||
Coloplast A/S, Class B1 | 23,150 | 3,589 | ||||||||
Fisher & Paykel Healthcare Corp. Ltd.1 | 134,000 | 3,099 | ||||||||
Pfizer Inc. | 78,500 | 2,567 | ||||||||
UnitedHealth Group Inc. | 8,045 | 2,373 | ||||||||
Other securities | 9,011 | |||||||||
|
| |||||||||
46,011 | ||||||||||
|
| |||||||||
Consumer staples | Philip Morris International Inc. | 110,300 | 7,728 | |||||||
8.31% | Nestlé SA1 | 59,100 | 6,529 | |||||||
British American Tobacco PLC1 | 156,300 | 6,005 | ||||||||
Altria Group, Inc. | 131,700 | 5,169 | ||||||||
Keurig Dr Pepper Inc. | 106,000 | 3,010 | ||||||||
Other securities | 5,883 | |||||||||
|
| |||||||||
34,324 | ||||||||||
|
| |||||||||
Financials | Zurich Insurance Group AG1 | 13,940 | 4,909 | |||||||
7.35% | Berkshire Hathaway Inc., Class A2 | 16 | 4,277 | |||||||
JPMorgan Chase & Co. | 43,800 | 4,120 | ||||||||
B3 SA - Brasil, Bolsa, Balcao | 376,000 | 3,809 | ||||||||
BlackRock, Inc. | 5,730 | 3,118 | ||||||||
S&P Global Inc. | 8,000 | 2,636 | ||||||||
Other securities | 7,504 | |||||||||
|
| |||||||||
30,373 | ||||||||||
|
| |||||||||
Industrials | Lockheed Martin Corp. | 7,300 | 2,664 | |||||||
5.82% | SMC Corp.1 | 5,000 | 2,552 | |||||||
Boeing Company | 12,700 | 2,328 | ||||||||
Other securities | 16,515 | |||||||||
|
| |||||||||
24,059 | ||||||||||
|
| |||||||||
Consumer | Home Depot, Inc. | 20,475 | 5,129 | |||||||
discretionary | Amazon.com, Inc.2 | 1,375 | 3,793 | |||||||
4.40% | Alibaba Group Holding Ltd.1,2 | 109,600 | 2,962 | |||||||
Ocado Group PLC1,2 | 109,500 | 2,749 | ||||||||
LVMH Moët Hennessy-Louis Vuitton SE1 | 5,765 | 2,525 | ||||||||
Other securities | 1,012 | |||||||||
|
| |||||||||
18,170 | ||||||||||
|
|
68 | American Funds Insurance Series |
Table of Contents
Global Balanced Fund
Common stocks
| Shares
| Value (000)
| ||||||||
Real estate | Crown Castle International Corp. REIT | 23,940 | $ | 4,006 | ||||||
2.90% | Equinix, Inc. REIT | 3,755 | 2,637 | |||||||
American Tower Corp. REIT | 9,800 | 2,534 | ||||||||
Other securities | 2,810 | |||||||||
|
| |||||||||
11,987 | ||||||||||
|
| |||||||||
Materials | Givaudan SA1 | 815 | 3,031 | |||||||
2.57% | Other securities | 7,610 | ||||||||
|
| |||||||||
10,641 | ||||||||||
|
| |||||||||
Communication | Alphabet Inc., Class C2 | 2,160 | 3,053 | |||||||
services | Verizon Communications Inc. | 49,500 | 2,729 | |||||||
2.24% | Nintendo Co., Ltd.1 | 5,700 | 2,536 | |||||||
Other securities | 955 | |||||||||
|
| |||||||||
9,273 | ||||||||||
|
| |||||||||
Other | Other securities | 2,918 | ||||||||
|
| |||||||||
0.71% | Total common stocks (cost: $183,353,000) | 243,345 | ||||||||
|
| |||||||||
Bonds, notes & other debt instruments 36.11%
| Principal amount
| |||||||||
U.S. Treasury bonds & notes 14.20%
| ||||||||||
U.S. Treasury | U.S. Treasury 0.375% 2022 | $ 9,765 | 9,802 | |||||||
12.41% | U.S. Treasury 0.50% 2025 | 9,785 | 9,888 | |||||||
U.S. Treasury 1.50% 20303 | 14,168 | 15,312 | ||||||||
U.S. Treasury 2.375% 20493 | 6,898 | 8,515 | ||||||||
U.S. Treasury 1.88%–2.88% 2022–20503 | 6,900 | 7,789 | ||||||||
|
| |||||||||
51,306 | ||||||||||
|
| |||||||||
U.S. Treasury | U.S. Treasury Inflation-Protected Security 0.875% 20294 | 3,352 | 3,825 | |||||||
inflation-protected securities | U.S. Treasury Inflation-Protected Securities | 2,818 | 3,558 | |||||||
|
| |||||||||
1.79% | 7,383 | |||||||||
|
| |||||||||
Total U.S. Treasury bonds & notes | 58,689 | |||||||||
|
| |||||||||
Bonds & notes of governments & government agencies outside the U.S. 14.14%
| ||||||||||
Germany (Federal Republic of) 0%–0.50% 2025–20504 | € 3,639 | 4,289 | ||||||||
Japan, Series 346, 0.10% 2027 | ¥ 304,250 | 2,856 | ||||||||
Japan, Series 358, 0.10% 2030 | 488,100 | 4,555 | ||||||||
Japan 0.10%–1.70% 2020–20444 | 988,369 | 9,557 | ||||||||
Other securities | 37,193 | |||||||||
|
| |||||||||
58,450 | ||||||||||
|
| |||||||||
Corporate bonds & notes 6.06%
| ||||||||||
Financials | JPMorgan Chase & Co. 2.55%–4.49% 2021–20315 | 484 | 547 | |||||||
1.47% | Other securities | 5,531 | ||||||||
|
| |||||||||
6,078 | ||||||||||
|
| |||||||||
Utilities | Berkshire Hathaway Energy Co. 3.70% 20306 | 25 | 29 | |||||||
1.31% | Other securities | 5,367 | ||||||||
|
| |||||||||
5,396 | ||||||||||
|
|
American Funds Insurance Series | 69 |
Table of Contents
Global Balanced Fund
Bonds, notes & other debt instruments (continued)
| Principal amount
| Value (000)
| ||||||||
Corporate bonds & notes (continued)
| ||||||||||
Health care | AstraZeneca PLC 3.50% 2023 | ¥ 150 | $ | 162 | ||||||
0.79% | Other securities | 3,118 | ||||||||
|
| |||||||||
3,280 | ||||||||||
|
| |||||||||
Consumer | Amazon.com, Inc. 2.50%–3.15% 2024–2050 | 525 | 552 | |||||||
discretionary | Other securities | 1,791 | ||||||||
|
| |||||||||
0.57% | 2,343 | |||||||||
|
| |||||||||
Consumer staples | Altria Group, Inc. 1.00%–2.20% 2023–2027 | € 380 | 445 | |||||||
0.45% | British American Tobacco PLC 3.22%–4.76% 2026–2049 | $ 380 | 413 | |||||||
Reynolds American Inc. 4.00% 2022 | 15 | 16 | ||||||||
Other securities | 981 | |||||||||
|
| |||||||||
1,855 | ||||||||||
|
| |||||||||
Information | Broadcom Inc. 3.15%–4.15% 2025–20306 | 140 | 151 | |||||||
technology | Microsoft Corp. 2.40% 2026 | 187 | 204 | |||||||
0.16% | Other securities | 311 | ||||||||
|
| |||||||||
666 | ||||||||||
|
| |||||||||
Other | Other securities | 5,425 | ||||||||
|
| |||||||||
1.31% | Total corporate bonds & notes | 25,043 | ||||||||
|
| |||||||||
Mortgage-backed obligations 1.64%
| ||||||||||
Federal agency | Uniform Mortgage-Backed Security 2.50% 20507,8 | 2,653 | 2,754 | |||||||
mortgage-backed | Uniform Mortgage-Backed Securities 3.50%–4.00% 20507,8 | 1,321 | 1,395 | |||||||
obligations | Other securities | 351 | ||||||||
|
| |||||||||
1.10% | 4,500 | |||||||||
|
| |||||||||
Other | Other securities | 2,285 | ||||||||
|
| |||||||||
mortgage-backed | Total mortgage-backed obligations | 6,785 | ||||||||
|
| |||||||||
securities | ||||||||||
0.54% | ||||||||||
Other 0.07% | ||||||||||
Other securities | 287 | |||||||||
|
| |||||||||
Total bonds, notes & other debt instruments (cost: $145,164,000) | 149,254 | |||||||||
|
| |||||||||
Short-term securities 5.67%
| ||||||||||
Money market investments 5.67%
| ||||||||||
Capital Group Central Cash Fund 0.18%9 | 234,095 | 23,412 | ||||||||
|
| |||||||||
Total short-term securities (cost: $23,409,000) | 23,412 | |||||||||
|
| |||||||||
Total investment securities 100.66% (cost: $351,926,000) | 416,011 | |||||||||
Other assets less liabilities (0.66)% | (2,723 | ) | ||||||||
|
| |||||||||
Net assets 100.00% | $ | 413,288 | ||||||||
|
|
70 | 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 amount (000) | 10
| | Value at 6/30/2020 (000) | 11
| | Unrealized appreciation (depreciation) at 6/30/2020 (000) |
| ||||||||||
5 Year U.S. Treasury Note Futures | Long | 15 | October 2020 | $ | 1,500 | $ 1,886 | $6 | |||||||||||||||||
10 Year Ultra U.S. Treasury Note Futures | Short | 6 | September 2020 | (600 | ) | (945 | ) | (5 | ) | |||||||||||||||
$1 |
Forward currency contracts
Contract amount | Counterparty | Settlement | Unrealized appreciation (depreciation) | |||||||||||
Purchases (000) | Sales (000) | at 6/30/2020 (000) | ||||||||||||
|
|
| ||||||||||||
CZK12,000 | EUR445 | JPMorgan Chase | 7/2/2020 | $ 6 | ||||||||||
EUR451 | CZK12,000 | JPMorgan Chase | 7/2/2020 | — | 12 | |||||||||
JPY72,000 | USD663 | Goldman Sachs | 7/6/2020 | 4 | ||||||||||
GBP30 | USD37 | Barclays Bank PLC | 7/6/2020 | — | 12 | |||||||||
GBP205 | USD258 | HSBC Bank | 7/6/2020 | (4 | ) | |||||||||
CAD1,400 | USD1,037 | Morgan Stanley | 7/6/2020 | (5 | ) | |||||||||
JPY66,000 | USD619 | Bank of America | 7/6/2020 | (7 | ) | |||||||||
USD500 | CZK11,700 | Standard Chartered Bank | 7/9/2020 | 7 | ||||||||||
JPY107,900 | USD994 | Barclays Bank PLC | 7/9/2020 | 6 | ||||||||||
EUR900 | USD1,008 | Bank of New York Mellon | 7/9/2020 | 4 | ||||||||||
CZK11,700 | EUR440 | Standard Chartered Bank | 7/9/2020 | (1 | ) | |||||||||
CZK5,450 | USD232 | HSBC Bank | 7/9/2020 | (2 | ) | |||||||||
EUR217 | USD246 | HSBC Bank | 7/9/2020 | (2 | ) | |||||||||
USD510 | CAD700 | Citibank | 7/9/2020 | (6 | ) | |||||||||
USD957 | CNH6,860 | UBS AG | 7/9/2020 | (12 | ) | |||||||||
USD490 | ILS1,700 | Bank of America | 7/10/2020 | (1 | ) | |||||||||
USD245 | MXN5,500 | Citibank | 7/13/2020 | 6 | ||||||||||
USD11 | ZAR180 | Standard Chartered Bank | 7/13/2020 | — | 12 | |||||||||
ILS2,000 | USD579 | Standard Chartered Bank | 7/13/2020 | (2 | ) | |||||||||
EUR400 | USD452 | Citibank | 7/13/2020 | (3 | ) | |||||||||
EUR1,241 | USD1,403 | JPMorgan Chase | 7/13/2020 | (9 | ) | |||||||||
MXN8,300 | USD382 | Citibank | 7/13/2020 | (22 | ) | |||||||||
USD513 | JPY55,000 | Goldman Sachs | 7/14/2020 | 4 | ||||||||||
EUR1,594 | USD1,811 | Barclays Bank PLC | 7/14/2020 | (20 | ) | |||||||||
USD522 | ILS1,800 | JPMorgan Chase | 7/15/2020 | 2 | ||||||||||
USD118 | JPY12,600 | Citibank | 7/15/2020 | 1 | ||||||||||
EUR400 | USD456 | Morgan Stanley | 7/15/2020 | (6 | ) | |||||||||
CAD2,335 | USD1,731 | HSBC Bank | 7/15/2020 | (11 | ) | |||||||||
NOK10,850 | USD1,148 | HSBC Bank | 7/15/2020 | (21 | ) | |||||||||
KRW341,300 | USD283 | Standard Chartered Bank | 7/16/2020 | 1 | ||||||||||
GBP200 | EUR222 | Goldman Sachs | 7/16/2020 | (2 | ) | |||||||||
USD280 | KRW341,285 | JPMorgan Chase | 7/16/2020 | (3 | ) | |||||||||
GBP726 | USD910 | Citibank | 7/16/2020 | (10 | ) | |||||||||
ILS2,600 | USD745 | HSBC Bank | 7/17/2020 | 6 | ||||||||||
AUD775 | USD530 | UBS AG | 7/17/2020 | 5 | ||||||||||
USD245 | MXN5,550 | JPMorgan Chase | 7/17/2020 | �� | 4 | |||||||||
CAD10 | USD7 | Standard Chartered Bank | 7/17/2020 | — | 12 | |||||||||
EUR460 | USD519 | Morgan Stanley | 7/17/2020 | (2 | ) |
American Funds Insurance Series | 71 |
Table of Contents
Global Balanced Fund
Forward currency contracts (continued)
Contract amount | Counterparty | Settlement | Unrealized appreciation (depreciation) | |||||||||||
Purchases (000) | Sales (000) | at 6/30/2020 (000) | ||||||||||||
GBP200 | USD251 | Bank of New York Mellon | 7/17/2020 | $ (3 | ) | |||||||||
PLN1,400 | USD357 | Citibank | 7/17/2020 | (3 | ) | |||||||||
USD708 | MXN15,615 | Goldman Sachs | 7/20/2020 | 31 | ||||||||||
USD152 | CNH1,080 | Standard Chartered Bank | 7/20/2020 | — | 12 | |||||||||
EUR615 | USD693 | Bank of New York Mellon | 7/20/2020 | (2 | ) | |||||||||
USD61 | BRL300 | JPMorgan Chase | 7/21/2020 | 6 | ||||||||||
BRL48 | USD9 | Standard Chartered Bank | 7/21/2020 | — | 12 | |||||||||
USD859 | ILS2,960 | Standard Chartered Bank | 7/22/2020 | 4 | ||||||||||
USD233 | MYR1,000 | Standard Chartered Bank | 7/22/2020 | — | 12 | |||||||||
MYR1,000 | USD234 | Standard Chartered Bank | 7/22/2020 | (1 | ) | |||||||||
USD217 | ZAR3,800 | HSBC Bank | 7/22/2020 | (1 | ) | |||||||||
USD476 | BRL2,536 | JPMorgan Chase | 7/23/2020 | 10 | ||||||||||
USD337 | EUR300 | Morgan Stanley | 7/23/2020 | (1 | ) | |||||||||
USD352 | PLN1,400 | Bank of America | 7/23/2020 | (2 | ) | |||||||||
USD397 | MYR1,700 | Standard Chartered Bank | 7/27/2020 | 1 | ||||||||||
CZK12,000 | EUR450 | JPMorgan Chase | 8/7/2020 | — | 12 | |||||||||
USD165 | BRL900 | JPMorgan Chase | 8/7/2020 | (1 | ) | |||||||||
$ (57 | ) |
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 6/30/2020 (000) | Upfront premium paid (000) | Unrealized (depreciation) appreciation at 6/30/2020 (000) | ||||||||||||||||
0.525% | 6-month HUF-BUBOR | 1/29/2022 | HUF | 1,141,000 | $ (5 | ) | $— | $ (5 | ) | |||||||||||||
1.01% | 6-month HUF-BUBOR | 2/25/2022 | 600,000 | 12 | — | 12 | ||||||||||||||||
0.965% | 6-month HUF-BUBOR | 2/26/2022 | 895,000 | 16 | — | 16 | ||||||||||||||||
(0.0955)% | 6-month EURIBOR | 7/22/2024 | €2,200 | 13 | — | 13 | ||||||||||||||||
6-month HUF-BUBOR | 1.39% | 11/11/2029 | HUF161,000 | (5 | ) | — | (5 | ) | ||||||||||||||
6-month HUF-BUBOR | 1.80% | 1/22/2030 | 95,000 | (14 | ) | — | (14 | ) | ||||||||||||||
6-month PLN-WIBOR | 2.155% | 1/22/2030 | PLN2,400 | (73 | ) | — | (73 | ) | ||||||||||||||
6-month HUF-BUBOR | 1.845% | 2/25/2030 | HUF136,500 | (22 | ) | — | (22 | ) | ||||||||||||||
6-month HUF-BUBOR | 1.79% | 2/26/2030 | 136,500 | (20 | ) | — | (20 | ) | ||||||||||||||
$— | $(98 | ) |
72 | American Funds Insurance Series |
Table of Contents
Global Balanced Fund
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $113,585,000, which represented 27.48% 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 All or a portion of this security was pledged as collateral. The total value of pledged collateral was $114,000, which represented .03% 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 $8,885,000, which represented 2.15% of the net assets of the fund.
7 Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
8 Purchased on a TBA basis.
9 Rate represents the seven-day yield at 6/30/2020.
10 Notional amount is calculated based on the number of contracts and notional contract size.
11 Value is calculated based on the notional amount and current market price.
12 Amount less than one thousand.
Key to abbreviations and symbols
AUD = Australian dollars
BRL = Brazilian reais
BUBOR = Budapest Interbank Offered Rate
CAD = Canadian dollars
CNH = Chinese yuan renminbi
CZK = Czech korunas EUR/€ = Euros
EURIBOR = Euro Interbank Offered Rate
GBP = British pounds
HUF = Hungarian forints
ILS = Israeli shekels
JPY/¥ = Japanese yen
KRW = South Korean won
MXN = Mexican pesos
MYR = Malaysian ringgits
NOK = Norwegian kroner
PLN = Polish zloty
TBA = To-be-announced
USD/$ = U.S. dollars
WIBOR = Warsaw Interbank Offer Rate
ZAR = South African rand
See notes to financial statements.
American Funds Insurance Series | 73 |
Table of Contents
Summary investment portfolio June 30, 2020 | unaudited |
Bonds, notes & other debt instruments 97.67%
| Principal amount (000)
| Value (000)
| ||||||||
Corporate bonds & notes 38.25%
| ||||||||||
Financials | Intesa Sanpaolo SpA 5.017% 20241 | $ 67,843 | $ | 69,554 | ||||||
9.60% | Intesa Sanpaolo SpA 3.38%–5.71% 2023–20281 | 32,991 | 34,477 | |||||||
Other securities | 891,606 | |||||||||
|
| |||||||||
995,637 | ||||||||||
|
| |||||||||
Energy | Petróleos Mexicanos 6.875% 2026 | 43,810 | 41,495 | |||||||
5.63% | Other securities | 542,736 | ||||||||
|
| |||||||||
584,231 | ||||||||||
|
| |||||||||
Utilities | Edison International 3.13%–5.75% 2022–2028 | 16,750 | 17,936 | |||||||
5.08% | Pacific Gas and Electric Co. 1.75%–6.35% 2020–20502 | 109,876 | 115,412 | |||||||
Southern California Edison Co. 2.85%–5.95% 2021–2050 | 106,765 | 125,398 | ||||||||
Other securities | 268,112 | |||||||||
|
| |||||||||
526,858 | ||||||||||
|
| |||||||||
Health care | Teva Pharmaceutical Finance Co. BV 2.80% 2023 | 56,064 | 53,136 | |||||||
4.73% | Teva Pharmaceutical Finance Co. BV 4.10% 2046 | 46,666 | 39,351 | |||||||
Teva Pharmaceutical Finance Co. BV 2.20%–7.13% 2021–20281 | 120,655 | 120,454 | ||||||||
Other securities | 277,418 | |||||||||
|
| |||||||||
490,359 | ||||||||||
|
| |||||||||
Consumer | Other securities | 421,476 | ||||||||
|
| |||||||||
discretionary | ||||||||||
4.06% | ||||||||||
Consumer staples | Other securities | 267,256 | ||||||||
|
| |||||||||
2.58% | ||||||||||
Communication | Other securities | 227,753 | ||||||||
|
| |||||||||
services | ||||||||||
2.20% | ||||||||||
Industrials | Other securities | 204,372 | ||||||||
|
| |||||||||
1.97% | ||||||||||
Information | Broadcom Corp. 3.875% 2027 | 14,860 | 16,078 | |||||||
technology | Broadcom Inc. 4.25% 20261 | 41,375 | 46,105 | |||||||
1.80% | Broadcom Inc. 4.75% 20291 | 61,009 | 69,289 | |||||||
Broadcom Inc. 3.15%–3.63% 2024–20251 | 8,000 | 8,577 | ||||||||
Other securities | 46,156 | |||||||||
|
| |||||||||
186,205 | ||||||||||
|
| |||||||||
Other | Other securities | 62,253 | ||||||||
|
| |||||||||
0.60% | Total corporate bonds & notes | 3,966,400 | ||||||||
|
| |||||||||
Mortgage-backed obligations 28.50%
| ||||||||||
Federal agency | Fannie Mae Pool #AJ9355 3.00% 20273 | 107 | 112 | |||||||
mortgage-backed | Fannie Mae Pool #CA0858 3.50% 20473 | 47,482 | 50,189 | |||||||
obligations | Fannie Mae Pool #FM0007 3.50% 20493 | 40,442 | 43,476 | |||||||
27.63% | Fannie Mae Pool #CA5912 2.50% 20503 | 124,753 | 130,884 | |||||||
Fannie Mae Pool #CA5701 2.50% 20503 | 114,562 | 120,452 |
74 | American Funds Insurance Series |
Table of Contents
Bond Fund
Bonds, notes & other debt instruments
| Principal amount (000)
| Value (000)
| ||||||||
Fannie Mae 3.00%–9.12% 2023–20593,4 | $ 312,064 | $ | 334,966 | |||||||
Freddie Mac 3.50% 20473 | 44,237 | 46,752 | ||||||||
Freddie Mac 3.50% 20473 | 43,947 | 46,528 | ||||||||
Freddie Mac Pool #SD7509 3.00% 20493 | 57,549 | 61,310 | ||||||||
Freddie Mac Pool #QA4673 3.00% 20493 | 46,062 | 49,460 | ||||||||
Freddie Mac Pool #SD7514 3.50% 20503 | 47,392 | 50,886 | ||||||||
Freddie Mac 0%–5.50% 2021–20503,4 | 286,957 | 309,401 | ||||||||
Government National Mortgage Assn. 2.50% 20503,5 | 173,100 | 181,782 | ||||||||
Government National Mortgage Assn. Pool #MA5817 4.00% 20493 | 55,134 | 58,510 | ||||||||
Government National Mortgage Assn. Pool #MA5878 5.00% 20493 | 60,402 | 65,661 | ||||||||
Government National Mortgage Assn. 4.00%–5.00% 20493 | 38,263 | 40,796 | ||||||||
Uniform Mortgage-Backed Security 2.00% 20353,5 | 297,150 | 306,877 | ||||||||
Uniform Mortgage-Backed Security 2.50% 20353,5 | 334,518 | 349,622 | ||||||||
Uniform Mortgage-Backed Security 2.50% 20503,5 | 192,804 | 200,135 | ||||||||
Uniform Mortgage-Backed Security 3.00% 20503,5 | 100,000 | 105,149 | ||||||||
Uniform Mortgage-Backed Security 4.00% 20503,5 | 183,583 | 194,533 | ||||||||
Uniform Mortgage-Backed Security 4.50% 20503,5 | 66,937 | 71,931 | ||||||||
Uniform Mortgage-Backed Securities 3.00%–3.50% 2035–20503,5 | 18,090 | 19,022 | ||||||||
Other securities | 26,478 | |||||||||
|
| |||||||||
2,864,912 | ||||||||||
|
| |||||||||
Other | Other securities | 90,131 | ||||||||
|
| |||||||||
0.87% | Total mortgage-backed obligations | 2,955,043 | ||||||||
|
| |||||||||
U.S. Treasury bonds & notes 22.97%
| ||||||||||
U.S. Treasury | U.S. Treasury 2.625% 2023 | 70,000 | 75,928 | |||||||
19.66% | U.S. Treasury 2.75% 2023 | 173,600 | 186,240 | |||||||
U.S. Treasury 2.125% 2024 | 72,100 | 77,834 | ||||||||
U.S. Treasury 2.125% 20246 | 72,100 | 77,643 | ||||||||
U.S. Treasury 0.25% 2025 | 140,050 | 139,869 | ||||||||
U.S. Treasury 0.25% 2025 | 81,433 | 81,283 | ||||||||
U.S. Treasury 0.375% 2025 | 70,600 | 70,917 | ||||||||
U.S. Treasury 2.875% 20256 | 96,200 | 108,665 | ||||||||
U.S. Treasury 2.875% 2025 | 72,100 | 81,065 | ||||||||
U.S. Treasury 1.375% 20266 | 75,000 | 79,349 | ||||||||
U.S. Treasury 1.625% 2026 | 50,000 | 53,681 | ||||||||
U.S. Treasury 1.75% 2026 | 40,800 | 44,188 | ||||||||
U.S. Treasury 0.50% 20276 | 212,200 | 212,476 | ||||||||
U.S. Treasury 2.25% 20276 | 120,200 | 135,338 | ||||||||
U.S. Treasury 2.25% 20276 | 72,100 | 80,521 | ||||||||
U.S. Treasury 2.875% 2028 | 72,100 | 85,376 | ||||||||
U.S. Treasury 1.125% 2040 | 88,288 | 87,460 | ||||||||
U.S. Treasury 2.25% 20496 | 51,052 | 61,375 | ||||||||
U.S. Treasury 3.00% 20496 | 150,000 | 207,033 | ||||||||
U.S. Treasury 1.25%–8.75% 2020–20506 | 81,781 | 92,419 | ||||||||
|
| |||||||||
2,038,660 | ||||||||||
|
| |||||||||
U.S. Treasury | U.S. Treasury Inflation-Protected Security 0.375% 20276,7 | 78,626 | 85,537 | |||||||
inflation-protected | U.S. Treasury Inflation-Protected Security 0.50% 20286,7 | 77,974 | 85,561 | |||||||
securities | U.S. Treasury Inflation-Protected Security 1.00% 20496,7 | 106,447 | 142,344 | |||||||
3.31% | U.S. Treasury Inflation-Protected Security 0.25% 20507 | 26,433 | 29,712 | |||||||
|
| |||||||||
343,154 | ||||||||||
|
| |||||||||
Total U.S. Treasury bonds & notes | 2,381,814 | |||||||||
|
|
American Funds Insurance Series | 75 |
Table of Contents
Bond Fund
Bonds, notes & other debt instruments (continued)
| Principal amount (000)
| Value (000)
| ||||||||
Bonds & notes of governments & government agencies outside the U.S. 3.32%
| ||||||||||
Italy (Republic of) 0.95% 2023 | € 45,000 | $ | 51,552 | |||||||
Japan, Series 20, 0.10% 20257 | ¥11,441,250 | 105,411 | ||||||||
Other securities | 187,525 | |||||||||
|
| |||||||||
344,488 | ||||||||||
|
| |||||||||
Asset-backed obligations 2.26%
| ||||||||||
Other securities | 234,532 | |||||||||
|
| |||||||||
Municipals 2.25%
| ||||||||||
Illinois | G.O. Bonds, Pension Funding, Series 2003, 4.95% 2023 | $ 22,553 | 22,791 | |||||||
2.00% | G.O. Bonds, Pension Funding, Series 2003, 5.10% 2033 | 107,310 | 109,019 | |||||||
G.O. Bonds, Series 2013-B, 4.11% 2022 | 750 | 743 | ||||||||
G.O. Bonds, Series 2013-B, 4.31% 2023 | 2,125 | 2,104 | ||||||||
G.O. Bonds, Taxable Build America Bonds, Series 2010-2, 5.85% 2022 | 2,370 | 2,441 | ||||||||
G.O. Bonds, Taxable Build America Bonds, Series 2010-2, 5.95% 2023 | 3,210 | 3,361 | ||||||||
G.O. Bonds, Taxable Build America Bonds, Series 2010-5, 6.20% 2021 | 3,892 | 3,926 | ||||||||
Other securities | 62,830 | |||||||||
|
| |||||||||
207,215 | ||||||||||
|
| |||||||||
Other | Other securities | 25,975 | ||||||||
|
| |||||||||
0.25% | Total municipals | 233,190 | ||||||||
|
| |||||||||
Federal agency bonds & notes 0.12%
| ||||||||||
Fannie Mae 2.125% 2026 | 11,910 | 12,984 | ||||||||
|
| |||||||||
Total bonds, notes & other debt instruments (cost: $9,593,431,000) | 10,128,451 | |||||||||
|
| |||||||||
Common stocks 0.00%
| Shares
| |||||||||
Other | Other securities | 55 | ||||||||
|
| |||||||||
0.00% | Total common stocks (cost: $605,000) | 55 | ||||||||
|
| |||||||||
Rights & warrants 0.00%
| ||||||||||
Energy | Other securities | — | 8 | |||||||
|
| |||||||||
0.00% | Total rights & warrants (cost: $18,000) | — | 8 | |||||||
|
| |||||||||
Short-term securities 15.05%
| ||||||||||
Money market investments 15.05%
| ||||||||||
Capital Group Central Cash Fund 0.18%9 | 15,608,123 | 1,560,968 | ||||||||
|
| |||||||||
Total short-term securities (cost: $1,561,082,000) | 1,560,968 | |||||||||
|
| |||||||||
Total investment securities 112.72% (cost: $11,155,136,000) | 11,689,474 | |||||||||
Other assets less liabilities (12.72)% | (1,319,171 | ) | ||||||||
|
| |||||||||
Net assets 100.00% | $ | 10,370,303 | ||||||||
|
|
76 | American Funds Insurance Series |
Table of Contents
Bond Fund
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” includes securities 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 $1,729,000, which represented .02% of the net assets of the fund.
Futures contracts
Contracts | Type | | Number of contracts |
| Expiration | | Notional amount (000) | 10
| | Value at 6/30/2020 (000 | 11 ) | | Unrealized (depreciation) appreciation at 6/30/2020 (000) |
| ||||||||||
90 Day Euro Dollar Futures | Short | 8,002 | March 2022 | $ | (2,000,500 | ) | $ (1,996,899 | ) | $ (1,117 | ) | ||||||||||||||
2 Year U.S. Treasury Note Futures | Long | 4,554 | October 2020 | 910,800 | 1,005,651 | 158 | ||||||||||||||||||
5 Year Euro-Bobl Futures | Short | 1,473 | September 2020 | € | (147,300) | (223,380 | ) | (1,060 | ) | |||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 18,481 | October 2020 | $ | 1,848,100 | 2,323,841 | 6,308 | |||||||||||||||||
10 Year Euro-Bund Futures | Short | 496 | September 2020 | € | (49,600) | (98,367 | ) | (1,054 | ) | |||||||||||||||
10 Year U.S. Treasury Note Futures | Short | 1,329 | September 2020 | $ | (132,900 | ) | (184,959 | ) | (1,365 | ) | ||||||||||||||
10 Year Ultra U.S. Treasury Note Futures | Short | 3,029 | September 2020 | (302,900 | ) | (477,020 | ) | (2,235 | ) | |||||||||||||||
30 Year Euro-Buxl Futures | Long | 245 | September 2020 | € | 24,500 | 60,546 | 1,423 | |||||||||||||||||
30 Year Ultra U.S. Treasury Bond Futures | Long | 90 | September 2020 | $ | 9,000 | 19,634 | 172 | |||||||||||||||||
$ 1,230 |
Forward currency contracts
Contract amount | Counterparty | Unrealized appreciation (depreciation) | ||||||||||||
Purchases (000) | Sales (000) | Settlement date | at 6/30/2020 (000) | |||||||||||
USD34,862 | MXN755,000 | Goldman Sachs | 7/6/2020 | $2,038 | ||||||||||
USD122,735 | EUR109,250 | Citibank | 7/6/2020 | (22 | ) | |||||||||
USD98,493 | JPY10,730,000 | Standard Chartered Bank | 7/9/2020 | (892 | ) | |||||||||
USD13,461 | JPY1,445,000 | Morgan Stanley | 7/16/2020 | 76 | ||||||||||
USD51,859 | EUR46,000 | Bank of New York Mellon | 7/20/2020 | 155 | ||||||||||
KRW37,816,057 | USD31,778 | JPMorgan Chase | 7/24/2020 | (338 | ) | |||||||||
KRW112,842,000 | USD93,109 | Morgan Stanley | 7/27/2020 | 710 | ||||||||||
$1,727 |
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 6/30/2020 (000) | Upfront premium paid (000) | Unrealized appreciation at 6/30/2020 (000) | ||||||||||||||||
3-month USD-LIBOR | 2.18075% | 3/29/2024 | $ | 31,600 | $ (2,280 | ) | $— | $ (2,280 | ) | |||||||||||||
3-month USD-LIBOR | 2.194% | 3/29/2024 | 31,900 | (2,317 | ) | — | (2,317 | ) | ||||||||||||||
3-month USD-LIBOR | 2.21875% | 3/29/2024 | 33,500 | (2,464 | ) | — | (2,464 | ) | ||||||||||||||
3-month USD-LIBOR | 2.3105% | 5/3/2024 | 275,590 | (21,654 | ) | — | (21,654 | ) | ||||||||||||||
6-month EURIBOR | 0.9852% | 10/17/2024 | € | 25,000 | (1,655 | ) | — | (1,655 | ) | |||||||||||||
6-month JPY-LIBOR | 0.0875% | 3/10/2026 | ¥ | 11,100,000 | (652 | ) | — | (652 | ) | |||||||||||||
6-month JPY-LIBOR | 0.58295% | 3/23/2046 | 2,000,000 | (1,380 | ) | — | (1,380 | ) | ||||||||||||||
0.64355% | 6-month JPY-LIBOR | 4/27/2046 | 2,000,000 | 1,663 | — | 1,663 | ||||||||||||||||
$— | $(30,739 | ) |
American Funds Insurance Series | 77 |
Table of Contents
Bond Fund
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 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 $1,393,295,000, which represented 13.44% of the net assets of the fund.
2 Scheduled interest and/or principal payment was not received.
3 Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
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 Purchased on a TBA basis.
6 All or a portion of this security was pledged as collateral. The total value of pledged collateral was $19,605,000, which represented .19% of the net assets of the fund.
7 Index-linked bond whose principal amount moves with a government price index.
8 Amount less than one thousand.
9 Rate represents the seven-day yield at 6/30/2020.
10 Notional amount is calculated based on the number of contracts and notional contract size.
11 Value is calculated based on the notional amount and current market price.
Key to abbreviations and symbols
EUR/€ = Euros
EURIBOR = Euro Interbank Offered Rate
G.O. = General Obligation
JPY/¥ = Japanese yen
KRW = South Korean won
LIBOR = London Interbank Offered Rate
MXN = Mexican pesos
TBA = To-be-announced
USD/$ = U.S. dollars
See notes to financial statements.
78 | American Funds Insurance Series |
Table of Contents
Capital World Bond Fund (formerly Global Bond Fund)
Summary investment portfolio June 30, 2020 | unaudited |
Bonds, notes & other debt instruments 96.43%
| Principal
| Value
| ||||||||
Euros | Belgium (Kingdom of) 0% 2027 | € | 9,160 | $ | 10,518 | |||||
18.52% | Belgium (Kingdom of) 0.80%–0.80% 2027–2028 | 9,810 | 11,948 | |||||||
Germany (Federal Republic of) 0% 2030 | 9,000 | 10,609 | ||||||||
Germany (Federal Republic of) 0%–0.50% 2026–20501 | 11,882 | 14,602 | ||||||||
Goldman Sachs Group, Inc. 3.375% 20252 | 5,000 | 6,271 | ||||||||
Greece (Hellenic Republic of) 3.45% 2024 | 9,595 | 11,968 | ||||||||
Greece (Hellenic Republic of) 3.375% 2025 | 10,805 | 13,660 | ||||||||
Greece (Hellenic Republic of) 3.75% 2028 | 9,564 | 12,885 | ||||||||
Greece (Hellenic Republic of) 3.875% 2029 | 10,824 | 14,904 | ||||||||
Greece (Hellenic Republic of) 1.50% 2030 | 10,670 | 12,324 | ||||||||
Israel (State of) 1.50%–1.50% 2027–2029 | 1,500 | 1,804 | ||||||||
Italy (Republic of) 0.10% 20231 | 25,258 | 28,969 | ||||||||
Italy (Republic of) 1.85% 2025 | 11,220 | 13,307 | ||||||||
Italy (Republic of) 2.80% 2028 | 22,918 | 29,258 | ||||||||
Italy (Republic of) 1.65% 2030 | 8,102 | 9,398 | ||||||||
Italy (Republic of) 0.05%–1.35% 2023–2030 | 6,967 | 7,832 | ||||||||
Romania 4.625% 2049 | 11,045 | 14,243 | ||||||||
Romania 2.00%–4.63% 2030–2049 | 15,160 | 17,682 | ||||||||
Russian Federation 2.88%–2.88% 2025–2025 | 4,500 | 5,580 | ||||||||
Serbia (Republic of) 3.125% 2027 | 13,987 | 16,481 | ||||||||
Serbia (Republic of) 1.50% 2029 | 4,943 | 5,219 | ||||||||
State Grid Europe Development (2014) PLC 1.50% 2022 | 194 | 221 | ||||||||
State Grid Overseas Investment Ltd. 1.25%–2.13% 2022–2030 | 1,406 | 1,618 | ||||||||
Other securities | 114,163 | |||||||||
|
| |||||||||
385,464 | ||||||||||
|
| |||||||||
Japanese yen | Goldman Sachs Group, Inc. 1.00%–2.80% 2021–20222 | ¥ | 128,000 | 1,222 | ||||||
9.37% | Japan, Series 19, 0.10% 20241 | 1,846,386 | 17,054 | |||||||
Japan, Series 18, 0.10% 20241 | 1,025,165 | 9,507 | ||||||||
Japan, Series 346, 0.10% 2027 | 1,040,000 | 9,764 | ||||||||
Japan, Series 23, 0.10% 20281 | 1,995,731 | 18,424 | ||||||||
Japan, Series 356, 0.10% 2029 | 3,529,000 | 32,987 | ||||||||
Japan, Series 24, 0.10% 20291 | 1,610,533 | 14,920 | ||||||||
Japan, Series 145, 1.70% 2033 | 2,210,000 | 24,471 | ||||||||
Japan 0.10%–2.30% 2025–20591 | 4,520,223 | 47,255 | ||||||||
United Mexican States 0.62%–0.70% 2021–2022 | 700,000 | 6,462 | ||||||||
Other securities | 12,926 | |||||||||
|
| |||||||||
194,992 | ||||||||||
|
| |||||||||
Chinese yuan | China (People’s Republic of), Series 1906, 3.29% 2029 | CNY73,800 | 10,733 | |||||||
renminbi | China (People’s Republic of), Series 1910, 3.86% 2049 | 259,860 | 38,385 | |||||||
4.68% | China Development Bank Corp., Series 2004, 3.43% 2027 | 73,800 | 10,524 | |||||||
China Development Bank Corp., Series 1905, 3.48% 2029 | 128,200 | 18,199 | ||||||||
China Development Bank Corp. 3.50%–4.15% 2025–2028 | 83,100 | 12,249 | ||||||||
Other securities | 7,216 | |||||||||
|
| |||||||||
97,306 | ||||||||||
|
| |||||||||
British pounds | United Kingdom 4.75% 2030 | £ | 14,360 | 26,226 | ||||||
3.04% | United Kingdom 0.38%–4.25% 2024–2050 | 23,304 | 35,397 | |||||||
Other securities | 1,654 | |||||||||
|
| |||||||||
63,277 | ||||||||||
|
| |||||||||
Canadian dollars | Canada 2.25% 2025 | C$15,900 | 12,814 | |||||||
1.90% | Canada 2.25% 2029 | 26,105 | 22,208 | |||||||
Canada 1.00%–2.75% 2022–2048 | 4,550 | 4,486 | ||||||||
|
| |||||||||
39,508 | ||||||||||
|
|
American Funds Insurance Series | 79 |
Table of Contents
Capital World Bond Fund (formerly Global Bond Fund)
Bonds, notes & other debt instruments (continued)
| Principal amount (000)
| Value
| ||||||||
Danish kroner | Nykredit Realkredit AS, Series 01E, 0.50% 20403 | DKr108,121 | $ | 16,060 | ||||||
1.88% | Nykredit Realkredit AS, Series 01E, 1.50% 20403 | 103,266 | 16,029 | |||||||
Nykredit Realkredit AS 1.50%–2.50% 2037–20473 | 45,660 | 7,146 | ||||||||
|
| |||||||||
39,235 | ||||||||||
|
| |||||||||
Mexican pesos | Petróleos Mexicanos 7.19%–7.47% 2024–2026 | MXN99,000 | 3,403 | |||||||
1.52% | United Mexican States, Series M, 7.50% 2027 | 279,920 | 13,577 | |||||||
United Mexican States, Series M20, 8.50% 2029 | 178,400 | 9,195 | ||||||||
United Mexican States 8.00%–8.50% 2038–2047 | 110,600 | 5,457 | ||||||||
|
| |||||||||
31,632 | ||||||||||
|
| |||||||||
Malaysian | Malaysia (Federation of), Series 0418, 4.893% 2038 | MYR64,732 | 17,627 | |||||||
ringgits | Malaysia (Federation of) 3.76%–4.94% 2030–2048 | 52,914 | 13,298 | |||||||
|
| |||||||||
1.48% | 30,925 | |||||||||
|
| |||||||||
Israeli shekels | Israel (State of) 2.00% 2027 | ILS42,900 | 13,686 | |||||||
1.16% | Israel (State of) 5.50% 2042 | 20,200 | 10,393 | |||||||
|
| |||||||||
24,079 | ||||||||||
|
| |||||||||
Russian rubles | Russian Federation 6.90%–8.50% 2023–2034 | RUB1,521,250 | 23,744 | |||||||
|
| |||||||||
1.14% | ||||||||||
South Korean won | South Korea (Republic of), Series 2503, 1.50% 2025 | KRW13,411,000 | 11,353 | |||||||
0.92% | Other securities | 7,747 | ||||||||
|
| |||||||||
19,100 | ||||||||||
|
| |||||||||
Brazilian reais | Brazil (Federative Republic of) 0% 2020 | BRL91,700 | 16,861 | |||||||
|
| |||||||||
0.81% | ||||||||||
Romanian leu | Romania 4.75% 2025 | RON5,000 | 1,217 | |||||||
|
| |||||||||
0.06% | ||||||||||
U.S. dollars | CCCI Treasure Ltd. 3.43%–3.65% 20494 | $ 3,190 | 3,167 | |||||||
47.29% | Equinix, Inc. 2.15% 2030 | 9,390 | 9,311 | |||||||
Goldman Sachs Group, Inc. 2.91%–4.75% 2023–20454 | 12,037 | 13,492 | ||||||||
Israel (State of) 2.50%–3.88% 2030–2050 | 7,720 | 8,545 | ||||||||
Pacific Gas and Electric Co. 2.10% 2027 | 9,935 | 9,836 | ||||||||
Petróleos Mexicanos 6.35%–6.95% 2048–20602 | 924 | 693 | ||||||||
PETRONAS Capital Ltd. 3.50%–4.55% 2030–20502 | 1,565 | 1,896 | ||||||||
Russian Federation 4.25% 2027 | 1,400 | 1,568 | ||||||||
State Grid Overseas Investment Ltd. 3.50% 20272 | 5,600 | 6,201 | ||||||||
T-Mobile US, Inc. 2.55% 20312 | 9,390 | 9,447 | ||||||||
U.S. Treasury 2.75% 2025 | 10,140 | 11,374 | ||||||||
U.S. Treasury 2.00% 2050 | 8,100 | 9,272 | ||||||||
U.S. Treasury 1.13%–3.00% 2023–20485 | 29,015 | 32,845 | ||||||||
U.S. Treasury Inflation-Protected Security 0.25% 20291,5 | 13,735 | 15,035 | ||||||||
U.S. Treasury Inflation-Protected Security 0.875% 20291,5 | 19,576 | 22,344 | ||||||||
U.S. Treasury Inflation-Protected Security 0.125% 20301 | 20,613 | 22,288 | ||||||||
U.S. Treasury Inflation-Protected Security 1.00% 20491,5 | 17,570 | 23,495 | ||||||||
U.S. Treasury Inflation-Protected Securities 0.25%–1.38% 2042–20501,5 | 13,466 | 16,685 | ||||||||
Uniform Mortgage-Backed Security 2.00% 20353,6 | 15,050 | 15,543 | ||||||||
Uniform Mortgage-Backed Security 2.00% 20503,6 | 10,000 | 10,207 | ||||||||
Uniform Mortgage-Backed Security 2.50% 20503,6 | 28,025 | 29,091 |
80 | American Funds Insurance Series |
Table of Contents
Capital World Bond Fund (formerly Global Bond Fund)
Bonds, notes & other debt instruments
| Principal amount (000)
| Value
| ||||||||
Uniform Mortgage-Backed Securities 2.50%–3.50% 2035–20503,6 | $ 12,000 | $ | 12,589 | |||||||
United Mexican States 3.25%–5.00% 2025–2051 | 5,605 | 5,834 | ||||||||
Wells Fargo & Company 2.393% 2028 (USD-SOFR + 2.10% on 6/2/2027)4 | 11,775 | 12,176 | ||||||||
Other securities | 681,092 | |||||||||
|
| |||||||||
984,026 | ||||||||||
|
| |||||||||
Other | Other securities | 55,091 | ||||||||
|
| |||||||||
2.66% | Total bonds, notes & other debt instruments (cost: $1,943,661,000) | 2,006,457 | ||||||||
|
| |||||||||
Convertible bonds & notes 0.00%
| ||||||||||
U.S. dollars | Other securities | 6 | ||||||||
|
| |||||||||
0.00% | Total convertible bonds & notes (cost: $8,000) | 6 | ||||||||
|
| |||||||||
Convertible stocks 0.00%
| Shares | |||||||||
U.S. dollars | Other securities | 96 | ||||||||
|
| |||||||||
0.00% | Total convertible stocks (cost: $816,000) | 96 | ||||||||
|
| |||||||||
Common stocks 0.01%
| ||||||||||
U.S. dollars | Other securities | 219 | ||||||||
|
| |||||||||
0.01% | Total common stocks (cost: $2,936,000) | 219 | ||||||||
|
| |||||||||
Rights & warrants 0.00%
| ||||||||||
U.S. dollars | Other securities | 14 | ||||||||
|
| |||||||||
0.00% | Total rights & warrants (cost: $22,000) | 14 | ||||||||
|
| |||||||||
Short-term securities 6.28%
| ||||||||||
Money market investments 6.28% | ||||||||||
Capital Group Central Cash Fund 0.18%7 | 1,305,640 | 130,577 | ||||||||
|
| |||||||||
Total short-term securities (cost: $130,578,000) | 130,577 | |||||||||
|
| |||||||||
Total investment securities 102.72% (cost: $2,078,021,000) | 2,137,369 | |||||||||
Other assets less liabilities (2.72)% | (56,568 | ) | ||||||||
|
| |||||||||
Net assets 100.00% | $ | 2,080,801 | ||||||||
|
|
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 $267,000, which represented .01% 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 $4,783,000, which represented .23% of the net assets of the fund. One security in “Other securities” (with a value of $28,000, 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.
American Funds Insurance Series | 81 |
Table of Contents
Capital World Bond Fund (formerly Global Bond Fund)
Futures contracts
Contracts | Type | | Number of contracts | | Expiration | | Notional amount8 (000) |
| | Value at 6/30/20209 (000) |
| | Unrealized (depreciation) appreciation at 6/30/2020 (000) | | ||||||||||
5 Year Euro-Bobl Futures | Short | 59 | September 2020 | € | (5,900 | ) | $(8,947 | ) | $ (42 | ) | ||||||||||||||
5 Year U.S. Treasury Note Futures | Short | 72 | October 2020 | $ | (7,200 | ) | (9,053 | ) | (63 | ) | ||||||||||||||
10 Year Euro-Bund Futures | Long | 121 | September 2020 | € | 12,100 | 23,997 | 261 | |||||||||||||||||
10 Year U.S. Treasury Note Futures | Short | 201 | September 2020 | $ | (20,100 | ) | (27,974 | ) | (157 | ) | ||||||||||||||
10 Year Ultra U.S. Treasury Note Futures | Short | 225 | September 2020 | (22,500 | ) | (35,434 | ) | (174 | ) | |||||||||||||||
20 Year U.S. Treasury Bond Futures | Long | 11 | September 2020 | 1,100 | 1,964 | 9 | ||||||||||||||||||
30 Year Euro-Buxl Futures | Long | 50 | September 2020 | € | 5,000 | 12,356 | 290 | |||||||||||||||||
$124 |
Forward currency contracts
Contract amount | Counterparty | Unrealized appreciation (depreciation) | ||||||||||||
Purchases (000) | Sales (000) | Settlement date | at 6/30/2020 (000) | |||||||||||
USD4,101 | MXN91,990 | Standard Chartered Bank | 7/6/2020 | $ 102 | ||||||||||
CAD9,500 | USD6,787 | UBS AG | 7/8/2020 | 210 | ||||||||||
USD6,833 | CAD9,500 | UBS AG | 7/8/2020 | (165 | ) | |||||||||
USD3,130 | DKK20,600 | Standard Chartered Bank | 7/9/2020 | 24 | ||||||||||
USD2,118 | CNH15,000 | Bank of New York Mellon | 7/10/2020 | (3 | ) | |||||||||
USD6,210 | CNH44,100 | JPMorgan Chase | 7/10/2020 | (24 | ) | |||||||||
USD2,912 | JPY311,200 | Bank of New York Mellon | 7/14/2020 | 29 | ||||||||||
USD2,078 | JPY223,000 | Bank of New York Mellon | 7/14/2020 | 12 | ||||||||||
JPY222,000 | USD2,077 | Bank of New York Mellon | 7/14/2020 | (21 | ) | |||||||||
JPY447,000 | USD4,187 | UBS AG | 7/14/2020 | (46 | ) | |||||||||
USD2,273 | GBP1,830 | UBS AG | 7/21/2020 | 5 | ||||||||||
USD19,540 | CNH138,600 | Bank of America | 7/21/2020 | (40 | ) | |||||||||
USD16,421 | ILS56,300 | JPMorgan Chase | 7/27/2020 | 157 | ||||||||||
USD6,281 | MXN142,000 | Citibank | 7/27/2020 | 127 | ||||||||||
CZK306,030 | EUR11,465 | JPMorgan Chase | 7/27/2020 | 14 | ||||||||||
USD2,851 | THB88,000 | JPMorgan Chase | 7/27/2020 | 4 | ||||||||||
CHF800 | USD845 | JPMorgan Chase | 7/27/2020 | — | 10 | |||||||||
USD2,067 | EUR1,840 | Barclays Bank PLC | 7/27/2020 | (1 | ) | |||||||||
EUR10,102 | DKK75,300 | JPMorgan Chase | 7/27/2020 | (3 | ) | |||||||||
EUR1,639 | RON7,960 | Citibank | 7/27/2020 | (3 | ) | |||||||||
SEK23,400 | USD2,515 | Citibank | 7/27/2020 | (3 | ) | |||||||||
AUD12,000 | USD8,289 | JPMorgan Chase | 7/27/2020 | (7 | ) | |||||||||
PLN12,600 | USD3,194 | Citibank | 7/27/2020 | (9 | ) | |||||||||
USD7,408 | ZAR129,100 | JPMorgan Chase | 7/27/2020 | (9 | ) | |||||||||
CZK133,600 | USD5,645 | JPMorgan Chase | 7/27/2020 | (13 | ) | |||||||||
USD4,134 | CZK98,590 | Bank of America | 7/27/2020 | (23 | ) | |||||||||
CAD49,400 | USD36,420 | JPMorgan Chase | 7/27/2020 | (29 | ) | |||||||||
GBP5,330 | USD6,657 | JPMorgan Chase | 7/27/2020 | (51 | ) | |||||||||
NOK144,985 | USD15,204 | Citibank | 7/27/2020 | (139 | ) | |||||||||
EUR56,180 | USD63,365 | JPMorgan Chase | 7/27/2020 | (207 | ) | |||||||||
JPY9,971,500 | USD93,462 | JPMorgan Chase | 7/27/2020 | (1,079 | ) | |||||||||
KRW6,785,200 | USD5,622 | Goldman Sachs | 7/28/2020 | 19 | ||||||||||
COP14,642,500 | USD3,936 | Standard Chartered Bank | 7/28/2020 | (49 | ) | |||||||||
USD12,392 | MYR53,000 | Standard Chartered Bank | 7/29/2020 | 39 | ||||||||||
USD14,848 | BRL81,200 | JPMorgan Chase | 8/7/2020 | (55 | ) | |||||||||
$(1,237 | ) |
82 | American Funds Insurance Series |
Table of Contents
Capital World Bond Fund (formerly Global Bond Fund)
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 6/30/2020 (000) | Upfront premium (received) paid (000) | Unrealized appreciation (depreciation) at 6/30/2020 (000) | ||||||||||||||||
0.525% | 6-month HUF-BUBOR | 1/29/2022 | HUF16,744,000 | $(76 | ) | $ (297 | ) | $ 221 | ||||||||||||||
1.01% | 6-month HUF-BUBOR | 2/25/2022 | 9,100,000 | 182 | 66 | 116 | ||||||||||||||||
0.965% | 6-month HUF-BUBOR | 2/26/2022 | 13,039,000 | 232 | 63 | 169 | ||||||||||||||||
6-month HUF-BUBOR | 1.39% | 11/11/2029 | 2,335,000 | (72 | ) | 53 | (125 | ) | ||||||||||||||
6-month PLN-WIBOR | 2.155% | 1/22/2030 | PLN35,000 | (1,073 | ) | (1,122 | ) | 49 | ||||||||||||||
6-month HUF-BUBOR | 1.80% | 1/22/2030 | HUF1,418,000 | (212 | ) | (137 | ) | (75 | ) | |||||||||||||
6-month HUF-BUBOR | 1.845% | 2/25/2030 | 2,024,500 | (325 | ) | (217 | ) | (108 | ) | |||||||||||||
6-month HUF-BUBOR | 1.79% | 2/26/2030 | 2,024,500 | (292 | ) | (184 | ) | (108 | ) | |||||||||||||
0.0079% | 6-month JPY-LIBOR | 4/8/2030 | ¥1,620,000 | (56 | ) | 30 | (86 | ) | ||||||||||||||
$(1,745) | $ 53 |
Credit default swaps
Centrally cleared credit default swaps on credit indices – sell protection
Receive/ Payment frequency | Pay | Expiration date | Notional (000) | Value at 6/30/2020 (000) | Upfront receipts (000) | Unrealized appreciation at 6/30/2020 (000) | ||||||||||||||||
1.00%/Quarterly | CDX.NA.IG.34 | 6/20/2025 | $91,850 | $1,074 | $555 | $519 |
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 | 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 $273,114,000, which represented 13.13% of the net assets of the fund. |
3 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
4 | Step bond; coupon rate may change at a later date. |
5 | All or a portion of this security was pledged as collateral. The total value of pledged collateral was $8,973,000, which represented .43% of the net assets of the fund. |
6 | Purchased on a TBA basis. |
7 | Rate represents the seven-day yield at 6/30/2020. |
8 | Notional amount is calculated based on the number of contracts and notional contract size. |
9 | Value is calculated based on the notional amount and current market price. |
10 | Amount less than one thousand. |
Key to abbreviations and symbols
AUD = Australian dollars
BRL = Brazilian reais
BUBOR = Budapest Interbank Offered Rate
CAD/C$ = Canadian dollars
CHF = Swiss francs
CNH/CNY= Chinese yuan renminbi
COP = Colombian pesos
CZK = Czech korunas
DKK/DKr = Danish kroner
EUR/€ = Euros
GBP/£ = British pounds
HUF = Hungarian forints
ILS = Israeli shekels
JPY/¥ = Japanese yen
KRW = South Korean won
LIBOR = London Interbank Offered Rate
MXN = Mexican pesos
MYR = Malaysian ringgits
NOK = Norwegian kroner
PLN = Polish zloty
RON = Romanian leu
RUB = Russian rubles
SEK = Swedish kronor
SOFR = Secured Overnight Financing Rate
TBA = To-be-announced
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 | 83 |
Table of Contents
Summary investment portfolio June 30, 2020 | unaudited |
Bonds, notes & other debt instruments 92.29%
| Principal amount (000)
| Value (000)
| ||||||||
Corporate bonds & notes 92.27% | ||||||||||
Communication | Cablevision Systems Corp. 6.75% 2021 | $ 3,513 | $ 3,698 | |||||||
services | CCO Holdings LLC and CCO Holdings Capital Corp. 5.75% 20261 | 3,182 | 3,298 | |||||||
13.84% | CenturyLink, Inc. 6.75% 2023 | 2,760 | 2,974 | |||||||
Gogo Inc. 9.875% 20241 | 11,114 | 9,420 | ||||||||
Intelsat Jackson Holding Co., Term Loan, 6.625% 20242 | 3,900 | 3,917 | ||||||||
MDC Partners Inc. 6.50% 20241 | 5,170 | 4,824 | ||||||||
Sprint Corp. 6.875% 2028 | 4,171 | 5,095 | ||||||||
Sprint Corp. 8.75% 2032 | 2,165 | 3,097 | ||||||||
Sprint Corp. 7.63%–11.50% 2021–2026 | 3,385 | 3,909 | ||||||||
T-Mobile US, Inc. 3.88%–6.50% 2025–20501 | 1,333 | 1,462 | ||||||||
Trilogy International Partners, LLC 8.875% 20221 | 4,500 | 3,998 | ||||||||
Univision Communications Inc. 5.125% 20231 | 3,308 | 3,348 | ||||||||
Univision Communications Inc. 5.125% 20251 | 3,195 | 3,019 | ||||||||
Univision Communications Inc. 6.625% 20271 | 3,050 | 2,924 | ||||||||
Other securities | 53,542 | |||||||||
|
| |||||||||
108,525 | ||||||||||
|
| |||||||||
Health care | Bausch Health Companies Inc. 5.00%–9.25% 2026–20301 | 6,633 | 6,823 | |||||||
12.90% | Endo Dac / Endo Finance LLC / Endo Finco 6.00%–9.50% 2027–20281 | 6,477 | 5,301 | |||||||
Endo International PLC 5.75%–5.88% 2022–20241 | 3,837 | 3,576 | ||||||||
Mallinckrodt PLC 10.00% 20251 | 8,538 | 7,236 | ||||||||
Molina Healthcare, Inc. 5.375% 2022 | 5,264 | 5,381 | ||||||||
Molina Healthcare, Inc. 4.38%–4.88% 2025–20281 | 2,698 | 2,716 | ||||||||
Par Pharmaceutical Inc. 7.50% 20271 | 4,672 | 4,810 | ||||||||
Rotech Healthcare Inc., Term Loan, | ||||||||||
(3-month USD-LIBOR + 11.00%) 13.00% 2023 (100% PIK)2,3,4,5,6 | 6,046 | 6,106 | ||||||||
Tenet Healthcare Corp. 4.875% 20261 | 6,380 | 6,259 | ||||||||
Tenet Healthcare Corp. 4.63%–8.13% 2022–20271 | 3,235 | 3,260 | ||||||||
Teva Pharmaceutical Finance Co. BV 2.80% 2023 | 3,915 | 3,711 | ||||||||
Teva Pharmaceutical Finance Co. BV 6.00% 2024 | 4,779 | 4,921 | ||||||||
Teva Pharmaceutical Finance Co. BV 2.20%–7.13% 2021–20281 | 4,374 | 4,423 | ||||||||
Valeant Pharmaceuticals International, Inc. 5.88%–9.00% 2023–20271 | 3,320 | 3,434 | ||||||||
Other securities | 33,228 | |||||||||
|
| |||||||||
101,185 | ||||||||||
|
| |||||||||
Consumer | Ford Motor Co. 4.35%–9.63% 2023–2030 | 3,819 | 4,073 | |||||||
discretionary | Ford Motor Credit Co. 5.125% 2025 | 3,485 | 3,502 | |||||||
12.57% | Ford Motor Credit Co. 3.09%–5.58% 2021–2024 | 2,252 | 2,181 | |||||||
PetSmart, Inc. 7.125% 20231 | 7,039 | 6,955 | ||||||||
PetSmart, Inc. 5.875% 20251 | 4,091 | 4,114 | ||||||||
PetSmart, Inc. 8.875% 20251 | 3,941 | 3,946 | ||||||||
Scientific Games Corp. 8.25% 20261 | 5,279 | 4,694 | ||||||||
Scientific Games Corp. 5.00%–8.63% 2021–20291 | 4,109 | 3,716 | ||||||||
Staples, Inc. 7.50% 20261 | 3,870 | 3,049 | ||||||||
Other securities | 62,369 | |||||||||
|
| |||||||||
98,599 | ||||||||||
|
| |||||||||
Materials | Cleveland-Cliffs Inc. 5.75% 2025 | 3,789 | 3,237 | |||||||
11.51% | Cleveland-Cliffs Inc. 5.875% 2027 | 6,060 | 5,017 | |||||||
Cleveland-Cliffs Inc. 4.88%–9.88% 2024–20271 | 5,083 | 4,826 | ||||||||
First Quantum Minerals Ltd. 7.25% 20221 | 3,229 | 3,168 | ||||||||
First Quantum Minerals Ltd. 7.25% 20231 | 3,072 | 2,953 | ||||||||
First Quantum Minerals Ltd. 7.50% 20251 | 8,243 | 7,906 | ||||||||
First Quantum Minerals Ltd. 6.50%–6.88% 2024–20261 | 3,687 | 3,499 | ||||||||
FXI Holdings, Inc. 7.875% 20241 | 3,530 | 3,047 | ||||||||
FXI Holdings, Inc. 12.25% 20261 | 3,976 | 3,868 | ||||||||
LSB Industries, Inc. 9.625% 20231 | 3,638 | 3,516 |
84 | American Funds Insurance Series |
Table of Contents
High-Income Bond Fund
Bonds, notes & other debt instruments
| Principal amount (000)
| Value
| ||||||||
Ryerson Inc. 11.00% 20221 | $ 3,113 | $ | 3,189 | |||||||
Venator Materials Corp. 5.75% 20251 | 5,426 | 3,876 | ||||||||
Other securities | 42,176 | |||||||||
|
| |||||||||
90,278 | ||||||||||
|
| |||||||||
Industrials | ADT Corp. 3.50% 2022 | 3,465 | 3,455 | |||||||
10.51% | Associated Materials, LLC 9.00% 20241 | 5,773 | 4,970 | |||||||
Delta Air Lines, Inc. 7.00% 20251 | 3,195 | 3,301 | ||||||||
Dun & Bradstreet Corp. 10.25% 20271 | 3,497 | 3,890 | ||||||||
United Airlines Holdings, Inc. 6.50% 20271 | 4,375 | 4,397 | ||||||||
Other securities | 62,393 | |||||||||
|
| |||||||||
82,406 | ||||||||||
|
| |||||||||
Energy | CONSOL Energy Inc. 5.875% 2022 | 3,120 | 3,075 | |||||||
9.60% | Teekay Corp. 9.25% 20221 | 3,108 | 2,995 | |||||||
Other securities | 69,241 | |||||||||
|
| |||||||||
75,311 | ||||||||||
|
| |||||||||
Financials | Compass Diversified Holdings 8.00% 20261 | 3,394 | 3,464 | |||||||
6.60% | FS Energy and Power Fund 7.50% 20231 | 3,999 | 3,420 | |||||||
Navient Corp. 6.50% 2022 | 3,533 | 3,482 | ||||||||
Navient Corp. 5.00%–6.13% 2023–2033 | 6,364 | 5,762 | ||||||||
Other securities | 35,618 | |||||||||
|
| |||||||||
51,746 | ||||||||||
|
| |||||||||
Information | Almonde Inc., Term Loan, (3-month USD-LIBOR + 7.25%) 8.25% 20252,6 | 3,924 | 3,425 | |||||||
technology | Genesys Telecommunications Laboratories, Inc. 10.00% 20241 | 3,341 | 3,483 | |||||||
6.11% | Kronos Inc., Term Loan B, (3-month USD-LIBOR + 8.25%) 9.25% 20242,6 | 6,753 | 6,757 | |||||||
Other securities | 34,243 | |||||||||
|
| |||||||||
47,908 | ||||||||||
|
| |||||||||
Real estate | Iron Mountain Inc. 5.75% 2024 | 3,027 | 3,065 | |||||||
3.32% | Iron Mountain Inc. 4.88%–5.25% 2027–20301 | 5,997 | 5,901 | |||||||
Other securities | 17,062 | |||||||||
|
| |||||||||
26,028 | ||||||||||
|
| |||||||||
Utilities | Other securities | 22,507 | ||||||||
|
| |||||||||
2.87% | ||||||||||
Consumer staples | Other securities | 19,127 | ||||||||
|
| |||||||||
2.44% | Total corporate bonds & notes | 723,620 | ||||||||
|
| |||||||||
Bonds & notes of governments & government agencies outside the U.S. 0.02% | ||||||||||
Bonds & notes of governments & government agencies outside the U.S. 0.02% | Other securities | 194 | ||||||||
|
| |||||||||
Municipals 0.00% | ||||||||||
Other securities | 5 | |||||||||
|
| |||||||||
Total bonds, notes & other debt instruments (cost: $783,720,000) | 723,819 | |||||||||
|
|
American Funds Insurance Series | 85 |
Table of Contents
High-Income Bond Fund
Convertible bonds & notes 0.63%
| Principal amount (000)
| Value
| ||||||||
Communication | Gogo Inc., convertible notes, 6.00% 2022 | $ 422 | $ 297 | |||||||
services | Other securities | 1,285 | ||||||||
|
| |||||||||
0.20% | 1,582 | |||||||||
|
| |||||||||
Other | Other securities | 3,345 | ||||||||
|
| |||||||||
0.43% | Total convertible bonds & notes (cost: $4,765,000) | 4,927 | ||||||||
|
| |||||||||
Convertible stocks 0.50%
| Shares
| |||||||||
Other | Other securities | 3,892 | ||||||||
|
| |||||||||
0.50% | Total convertible stocks (cost: $7,788,000) | 3,892 | ||||||||
|
| |||||||||
Preferred securities 0.23%
| ||||||||||
Consumer | Other securities | 1,789 | ||||||||
|
| |||||||||
discretionary | Total preferred securities (cost: $1,655,000) | 1,789 | ||||||||
|
| |||||||||
0.23% | ||||||||||
Common stocks 1.88%
| ||||||||||
Health care | Rotech Healthcare Inc.3,4,7,8 | 201,793 | 9,686 | |||||||
1.28% | Other securities | 335 | ||||||||
|
| |||||||||
10,021 | ||||||||||
|
| |||||||||
Materials | First Quantum Minerals Ltd. | 44,800 | 357 | |||||||
0.11% | Other securities | 504 | ||||||||
|
| |||||||||
861 | ||||||||||
|
| |||||||||
Other | Other securities | 3,912 | ||||||||
|
| |||||||||
0.49% | Total common stocks (cost: $21,518,000) | 14,794 | ||||||||
|
| |||||||||
Rights & warrants 0.02%
| ||||||||||
Other | Other securities | 147 | ||||||||
|
| |||||||||
0.02% | Total rights & warrants (cost: $216,000) | 147 | ||||||||
|
| |||||||||
Short-term securities 4.84%
| ||||||||||
Money market investments 4.84% | ||||||||||
Capital Group Central Cash Fund 0.18%9 | 379,651 | 37,969 | ||||||||
|
| |||||||||
Total short-term securities (cost: $37,962,000) | 37,969 | |||||||||
|
| |||||||||
Total investment securities 100.39% (cost: $857,624,000) | 787,337 | |||||||||
Other assets less liabilities (0.39)% | (3,086 | ) | ||||||||
|
| |||||||||
Net assets 100.00% | $ | 784,251 | ||||||||
|
|
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.
86 | American Funds Insurance Series |
Table of Contents
High-Income Bond Fund
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 6/30/2020 (000) | Upfront premium | Unrealized appreciation at 6/30/2020 (000) | ||||||||||||||||||||||||||||||||||||
CDX.NA.HY.25 | 5.00%/Quarterly | 6/20/2025 | $12,160 | $84 | $(235) | $319 |
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 $464,508,000, which represented 59.23% of the net assets of the fund. |
2 | 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 $51,618,000, which represented 6.58% of the net assets of the fund. |
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 $21,408,000, which represented 2.73% of the net assets of the fund. |
4 | Value determined using significant unobservable inputs. |
5 | 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. |
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 | Security did not produce income during the last 12 months. |
8 | Acquired through a private placement transaction exempt from registration under the Securities Act of 1933. May be subject to legal or contractual restrictions on resale. Further details on these holdings appear below. |
9 | Rate represents the seven-day yield at 6/30/2020. |
Private placement securities | Acquisition date(s) | Cost (000) | Value (000) | Percent of net | ||||||||||||
Rotech Healthcare Inc. | 9/26/2013 | $4,331 | $ 9,686 | 1.24 | % | |||||||||||
Other securities | 11/15/2016-8/31/2018 | 1,319 | 1,505 | .19 | ||||||||||||
Total private placement securities | $5,650 | $11,191 | 1.43 | % |
Key to abbreviations and symbol
LIBOR = London Interbank Offered Rate
USD/$ = U.S. dollars
See notes to financial statements.
American Funds Insurance Series | 87 |
Table of Contents
American Funds Mortgage Fund (formerly Mortgage Fund)
Summary investment portfolio June 30, 2020 | unaudited |
Bonds, notes & other debt instruments 96.81%
| Principal amount (000)
| Value (000)
| ||||||||
Mortgage-backed obligations 91.85% | ||||||||||
Federal agency | Fannie Mae Pool #AL9335 3.872% 20401,2 | $ 1,629 | $ 1,711 | |||||||
mortgage-backed | Fannie Mae Pool #AL9327 3.406% 20411,2 | 1,450 | 1,526 | |||||||
obligations | Fannie Mae Pool #AL9326 3.743% 20411,2 | 2,055 | 2,163 | |||||||
87.49% | Fannie Mae Pool #CA2804 4.50% 20481 | 2,992 | 3,216 | |||||||
Fannie Mae Pool #CA4867 3.00% 20491,3 | 4,891 | 5,271 | ||||||||
Fannie Mae Pool #CA5496 3.00% 20501 | 9,932 | 10,744 | ||||||||
Fannie Mae 2.50%–5.00% 2031–20491,2,3 | 6,489 | 6,954 | ||||||||
Freddie Mac Pool #C91883 4.00% 20361 | 3,627 | 3,908 | ||||||||
Freddie Mac Pool #RA1339 3.00% 20491 | 3,720 | 3,952 | ||||||||
Freddie Mac Pool #QA8936 3.00% 20501 | 7,973 | 8,494 | ||||||||
Freddie Mac Pool #SD7514 3.50% 20501,3 | 12,796 | 13,739 | ||||||||
Freddie Mac, Series K030, Class A2, Multi Family, 3.25% 20231 | 1,746 | 1,861 | ||||||||
Freddie Mac, Series K031, Class A2, Multi Family, 3.30% 20231 | 4,722 | 5,060 | ||||||||
Freddie Mac 3.10%–5.00% 2034–20491,2,3 | 5,346 | 5,811 | ||||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-2, Class HA, 2.939% 20561,2 | 1,387 | 1,479 | ||||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-2, Class MA, 3.00% 20561 | 1,362 | 1,460 | ||||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-4, Class HT, 3.25% 20571,2 | 5,099 | 5,608 | ||||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2018-3, Class MA, 3.50% 20571 | 3,008 | 3,261 | ||||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-4, Class MT, 3.50% 20571 | 2,256 | 2,547 | ||||||||
Freddie Mac Seasoned Loan Structured Transaction Trust, Series 2018-2, Class A1, 3.50% 20281 | 6,352 | 6,935 | ||||||||
Freddie Mac Seasoned Loan Structured Transaction Trust, Series 2018-1, Class A1, 3.50% 20281 | 1,762 | 1,910 | ||||||||
Freddie Mac Seasoned Loan Structured Transaction Trust, Series 2019-3, Class A1C, 2.75% 20291 | 1,891 | 1,997 | ||||||||
Government National Mortgage Assn. 4.25% 20441 | 1,551 | 1,718 | ||||||||
Government National Mortgage Assn. 2.50% 20501,4 | 5,000 | 5,251 | ||||||||
Government National Mortgage Assn. 2.50% 20501,4 | 3,500 | 3,668 | ||||||||
Government National Mortgage Assn. Pool #AA7301 3.50% 20431 | 1,515 | 1,624 | ||||||||
Government National Mortgage Assn. 3.50%–6.50% 2034–20661,4 | 13,221 | 14,153 | ||||||||
Uniform Mortgage-Backed Security 2.00% 20351,4 | 41,500 | 42,858 | ||||||||
Uniform Mortgage-Backed Security 2.50% 20351,4 | 11,500 | 12,019 | ||||||||
Uniform Mortgage-Backed Security 3.00% 20351,4 | 41,432 | 43,543 | ||||||||
Uniform Mortgage-Backed Security 3.00% 20501,4 | 1,406 | 1,480 | ||||||||
Uniform Mortgage-Backed Security 3.50% 20501,4 | 12,585 | 13,237 | ||||||||
Uniform Mortgage-Backed Security 4.50% 20501,4 | 5,250 | 5,642 | ||||||||
Uniform Mortgage-Backed Securities 2.50%–4.00% 20501,4 | 1,088 | 1,131 | ||||||||
Other securities | 5,021 | |||||||||
|
| |||||||||
250,952 | ||||||||||
|
| |||||||||
Collateralized | Other securities | 12,498 | ||||||||
|
| |||||||||
mortgage-backed | Total mortgage-backed obligations | 263,450 | ||||||||
|
| |||||||||
obligations (privately originated) 4.36% | ||||||||||
U.S. Treasury bonds & notes 4.07% | ||||||||||
U.S. Treasury | U.S. Treasury 0.125% 2023 | 3,500 | 3,496 | |||||||
2.95% | U.S. Treasury 1.25% 2050 | 5,155 | 4,950 | |||||||
|
| |||||||||
8,446 | ||||||||||
|
| |||||||||
U.S. Treasury | U.S. Treasury Inflation-Protected Security 2.125% 20415 | 129 | 192 | |||||||
inflation-protected | U.S. Treasury Inflation-Protected Security 0.75% 20423,5 | 2,523 | 3,029 | |||||||
|
| |||||||||
securities 1.12% | 3,221 | |||||||||
|
| |||||||||
Total U.S. Treasury bonds & notes | 11,667 | |||||||||
|
|
88 | American Funds Insurance Series |
Table of Contents
American Funds Mortgage Fund (formerly Mortgage Fund)
Bonds, notes & other debt instruments
| Principal amount (000)
| Value (000)
| ||||||||
Asset-backed obligations 0.89% | ||||||||||
Other securities | $ | 2,561 | ||||||||
|
| |||||||||
Total bonds, notes & other debt instruments (cost: $271,718,000) | 277,678 | |||||||||
|
| |||||||||
Short-term securities 47.13%
| ||||||||||
Commercial paper 24.85% | ||||||||||
Apple Inc. 0.12% due 7/8/20206 | $ | 8,000 | 8,000 | |||||||
Chariot Funding, LLC 0.25% due 9/25/20206 | 7,000 | 6,998 | ||||||||
Coca-Cola Co. 0.18% due 11/20/20206 | 6,850 | 6,845 | ||||||||
Eli Lilly and Co. 0.12% due 8/4/20206 | 7,000 | 6,996 | ||||||||
Emerson Electric Co. 0.10%–0.15% due 7/6/2020–8/11/20206 | 8,000 | 7,997 | ||||||||
ExxonMobil Corp. 0.26% due 9/25/2020 | 3,450 | 3,449 | ||||||||
Merck & Co. Inc. 0.20% due 8/27/20206 | 8,000 | 7,998 | ||||||||
National Rural Utilities Cooperative Finance Corp. 0.09% due 7/1/2020 | 5,000 | 5,000 | ||||||||
Nordea Bank AB 0.05% due 7/1/20206 | 3,000 | 3,000 | ||||||||
Paccar Financial Corp. 0.12% due 7/9/2020 | 2,000 | 2,000 | ||||||||
Pfizer Inc. 0.21% due 10/16/20206 | 5,000 | 4,997 | ||||||||
Simon Property Group, LP 0.15% due 7/23/20206 | 8,000 | 8,000 | ||||||||
|
| |||||||||
71,280 | ||||||||||
|
|
Federal agency discount notes 16.00% | ||||||||||
Federal Farm Credit Banks 0.12%–0.20% due 7/10/2020–11/6/2020 | 15,000 | 14,995 | ||||||||
Federal Home Loan Bank 0.11%–0.12% due 7/20/2020–8/21/2020 | 20,800 | 20,797 | ||||||||
Tennessee Valley Authority 0.11% due 7/15/2020 | 10,100 | 10,099 | ||||||||
|
| |||||||||
45,891 | ||||||||||
|
|
U.S. Treasury bills 6.28% | ||||||||||
U.S. Treasury Bills 0.08%–0.10% due 7/2/2020–7/21/2020 | 18,000 | 17,999 | ||||||||
|
| |||||||||
Total short-term securities (cost: $135,172,000) | 135,170 | |||||||||
|
| |||||||||
Total investment securities 143.94% (cost: $406,890,000) | 412,848 | |||||||||
Other assets less liabilities (43.94)% | (126,023 | ) | ||||||||
|
| |||||||||
Net assets 100.00% | $ | 286,825 | ||||||||
|
|
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 a security that was valued under fair value procedures adopted by authority of the board of trustees. The total value of the security that was valued under fair value procedures was $750,000, which represented .26% of the net assets of the fund.
American Funds Insurance Series | 89 |
Table of Contents
American Funds Mortgage Fund (formerly Mortgage Fund)
Futures contracts
Contracts | Type | | Number of contracts |
| Expiration | | Notional amount (000) | 7
| | Value at 6/30/2020 (000) | 8
| | Unrealized (depreciation) appreciation (000) |
| ||||||||||||||
90 Day Euro Dollar Futures | Short | 207 | September 2020 | $ | (51,750 | ) | $ | (51,613 | ) | $ | (18 | ) | ||||||||||||||||
90 Day Euro Dollar Futures | Short | 123 | March 2021 | (30,750 | ) | (30,689 | ) | (6 | ) | |||||||||||||||||||
�� 5 Year U.S. Treasury Note Futures | Long | 226 | October 2020 | 22,600 | 28,418 | 66 | ||||||||||||||||||||||
10 Year U.S. Treasury Note Futures | Long | 1 | September 2020 | 100 | 139 | 1 | ||||||||||||||||||||||
10 Year Ultra U.S. Treasury Note Futures | Short | 62 | September 2020 | (6,200 | ) | (9,764 | ) | (50 | ) | |||||||||||||||||||
20 Year U.S. Treasury Bond Futures | Long | 14 | September 2020 | 1,400 | 2,500 | 11 | ||||||||||||||||||||||
30 Year Ultra U.S. Treasury Bond Futures | Long | 19 | September 2020 | 1,900 | 4,145 | 30 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||
$ | 34 | |||||||||||||||||||||||||||
|
|
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 6/30/2020 (000) | Upfront premium paid (000) | Unrealized depreciation at 6/30/2020 (000) | ||||||||||||||||||||||||||||||||||||
3-month USD-LIBOR | 2.322% | 5/2/2024 | $ | 10,100 | $ | (797 | ) | $ | – | $ | (797 | ) | ||||||||||||||||||||||||||||||
3-month USD-LIBOR | 2.325% | 5/2/2024 | 23,300 | (1,843 | ) | – | (1,843 | ) | ||||||||||||||||||||||||||||||||||
U.S. EFFR | 0.11% | 5/18/2024 | 9,400 | – | 9 | – | – | 9 | ||||||||||||||||||||||||||||||||||
U.S. EFFR | 0.1275% | 6/25/2025 | 4,400 | (9 | ) | – | (9 | ) | ||||||||||||||||||||||||||||||||||
U.S. EFFR | 0.0975% | 6/30/2025 | 2,387 | (1 | ) | – | (1 | ) | ||||||||||||||||||||||||||||||||||
U.S. EFFR | 0.106% | 6/30/2025 | 1,913 | (2 | ) | – | (2 | ) | ||||||||||||||||||||||||||||||||||
U.S. EFFR | 0.105% | 6/30/2025 | 4,300 | (3 | ) | – | (3 | ) | ||||||||||||||||||||||||||||||||||
3-month USD-LIBOR | 3.238% | 8/8/2044 | 2,000 | (1,054 | ) | – | (1,054 | ) | ||||||||||||||||||||||||||||||||||
3-month USD-LIBOR | 3.2265% | 9/25/2044 | 3,000 | (1,581 | ) | – | (1,581 | ) | ||||||||||||||||||||||||||||||||||
3-month USD-LIBOR | 1.961% | 1/9/2050 | 2,400 | (677 | ) | – | (677 | ) | ||||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||||||||
$ | – | $ | (5,967 | ) | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
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.
1Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
2Coupon 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.
3All or a portion of this security was pledged as collateral. The total value of pledged collateral was $2,618,000, which represented .91% of the net assets of the fund.
4Purchased on a TBA basis.
5Index-linked bond whose principal amount moves with a government price index.
6Acquired 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 $74,419,000, which represented 25.95% of the net assets of the fund.
7Notional amount is calculated based on the number of contracts and notional contract size.
8Value is calculated based on the notional amount and current market price.
9Amount less than one thousand.
Key to abbreviations and symbol
EFFR = Effective Federal Funds Rate
LIBOR = London Interbank Offered Rate
TBA = To-be-announced
USD/$ = U.S. dollars
See notes to financial statements.
90 | American Funds Insurance Series |
Table of Contents
| ||
Investment portfolio June 30, 2020 | unaudited |
Short-term securities 99.93%
| Principal amount (000)
| Value (000)
| ||||||||
Commercial paper 68.21% | ||||||||||
Amazon.com, Inc. 0.14% due 7/20/20201 | $ 10,000 | $ 9,999 | ||||||||
Caisse d’Amortissement de la Dette Sociale 0.15% due 7/8/2020 | 10,000 | 10,000 | ||||||||
Chariot Funding, LLC 0.15% due 7/29/20201 | 4,700 | 4,699 | ||||||||
CRC Funding, LLC 0.23% due 9/17/20201 | 10,000 | 9,995 | ||||||||
Credit Agricole North America, Inc. 0.20% due 8/13/2020 | 4,400 | 4,399 | ||||||||
DBS Bank Ltd. 0.21% due 8/21/20201 | 6,500 | 6,499 | ||||||||
Eli Lilly and Co. 0.15% due 7/28/20201 | 10,000 | 9,996 | ||||||||
Emerson Electric Co. 0.85% due 7/1/20201 | 10,000 | 10,000 | ||||||||
ExxonMobil Corp. 0.23% due 10/6/2020 | 10,000 | 9,995 | ||||||||
Henkel of America, Inc. 0.30% due 8/6/20201 | 7,600 | 7,599 | ||||||||
Inova Health System Foundation 0.22% due 9/17/2020 | 7,900 | 7,897 | ||||||||
Kaiser Foundation Hospitals 0.25% due 8/5/2020 | 8,700 | 8,697 | ||||||||
Liberty Street Funding LLC 0.25% due 8/4/20201 | 10,000 | 9,998 | ||||||||
L’Oréal USA, Inc. 0.25% due 7/28/20201 | 10,000 | 9,999 | ||||||||
LVMH Moët Hennessy Louis Vuitton Inc. 0.18%–0.25% due 7/16/2020–8/19/20201 | 10,800 | 10,799 | ||||||||
Merck & Co. Inc. 0.25% due 8/13/20201 | 6,800 | 6,799 | ||||||||
Mizuho Bank, Ltd. 0.24% due 8/20/20201 | 10,000 | 9,997 | ||||||||
Nederlandse Waterschapsbank NV 0.19% due 8/25/20201 | 5,800 | 5,799 | ||||||||
Novartis Finance Corp. 0.20% due 7/20/20201 | 10,000 | 9,999 | ||||||||
OMERS Finance Trust 0.14% due 7/3/2020 | 10,000 | 10,000 | ||||||||
Oversea-Chinese Banking Corp. Ltd. 0.21% due 8/27/20201 | 800 | 800 | ||||||||
Pfizer Inc. 0.22% due 10/30/20201 | 10,900 | 10,892 | ||||||||
Siemens Capital Co. LLC 0.11% due 7/6/20201 | 10,500 | 10,500 | ||||||||
Simon Property Group, LP 0.20% due 7/27/20201 | 8,400 | 8,399 | ||||||||
Société Générale 0.26% due 8/14/20201 | 5,000 | 4,999 | ||||||||
Starbird Funding Corp. 0.07% due 7/1/20201 | 8,000 | 8,000 | ||||||||
Sumitomo Mitsui Banking Corp. 0.25% due 8/5/20201 | 10,000 | 9,999 | ||||||||
Victory Receivables Corp. 0.23% due 8/24/20201 | 8,000 | 7,996 | ||||||||
|
| |||||||||
234,750 | ||||||||||
|
| |||||||||
Bills & notes of governments & government agencies outside the U.S. 17.95% | ||||||||||
Alberta (Province of) 0.18%–0.20% due 8/20/2020–9/14/20201 | 10,500 | 10,497 | ||||||||
British Columbia (Province of) 0.07% due 7/13/2020 | 5,000 | 5,000 | ||||||||
Canada Bill 0.16% due 8/12/2020 | 9,400 | 9,399 | ||||||||
Denmark (Kingdom of) 0.15%–0.24% due 7/8/2020–7/31/2020 | 11,300 | 11,300 | ||||||||
KFW 0.18% due 8/10/20201 | 10,000 | 9,999 | ||||||||
Oesterreich Kontrollbank 0.22% due 10/22/2020 | 5,600 | 5,597 | ||||||||
Québec (Province of) 0.16% due 8/17/20201 | 10,000 | 9,999 | ||||||||
|
| |||||||||
61,791 | ||||||||||
|
| |||||||||
Federal agency discount notes 7.00% | ||||||||||
Fannie Mae 0.20% due 10/16/2020 | 5,700 | 5,697 | ||||||||
Federal Home Loan Bank 0.13% due 7/27/2020–8/19/2020 | 13,400 | 13,398 | ||||||||
Freddie Mac 0.13% due 8/19/2020 | 5,000 | 4,999 | ||||||||
|
| |||||||||
24,094 | ||||||||||
|
| |||||||||
U.S. Treasury bills 6.77% | ||||||||||
U.S. Treasury Bills 0.08%–0.15% due 7/2/2020–10/13/2020 | 23,300 | 23,296 | ||||||||
|
| |||||||||
Total short-term securities (cost: $343,921,000) | 343,931 | |||||||||
|
| |||||||||
Total investment securities 99.93% (cost: $343,921,000) | 343,931 | |||||||||
Other assets less liabilities 0.07% | 255 | |||||||||
|
| |||||||||
Net assets 100.00% | $ | 344,186 | ||||||||
|
|
American Funds Insurance Series | 91 |
Table of Contents
Ultra-Short Bond Fund
The following footnote applies to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1Acquired 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 $214,257,000, which represented 62.25% of the net assets of the fund.
See notes to financial statements.
92 | American Funds Insurance Series |
Table of Contents
U.S. Government/AAA-Rated Securities Fund | ||||
Summary investment portfolio June 30, 2020 | unaudited |
Bonds, notes & other debt instruments 93.58%
| Principal amount
| Value (000)
| ||||||||
Mortgage-backed obligations 57.56% | ||||||||||
Federal agency | Fannie Mae Pool #AP7553 3.00% 20421 | $ 22,474 | $ | 24,088 | ||||||
mortgage-backed | Fannie Mae Pool #CA5229 3.00% 20501 | 30,248 | 32,616 | |||||||
obligations | Fannie Mae Pool #FM2179 3.00% 20501 | 11,827 | 12,650 | |||||||
57.56% | Fannie Mae 2.72%–9.12% 2022–20491,2 | 30,723 | 33,566 | |||||||
Freddie Mac Pool #QA8801 3.00% 20501 | 49,691 | 52,815 | ||||||||
Freddie Mac 0.58%–4.22% 2022–20491,2 | 14,804 | 15,958 | ||||||||
Freddie Mac Seasoned Loan Structured Transaction Trust, Series 2018-2, Class A1, 3.50% 20281 | 36,532 | 39,879 | ||||||||
Government National Mortgage Assn. 4.50% 20491 | 14,125 | 15,092 | ||||||||
Government National Mortgage Assn. 2.50% 20501,3 | 46,800 | 49,147 | ||||||||
Government National Mortgage Assn. 3.50% 20501,3 | 15,413 | 16,265 | ||||||||
Government National Mortgage Assn. 3.00%–6.50% 2038–20611 | 16,840 | 18,547 | ||||||||
Uniform Mortgage-Backed Security 2.00% 20351,3 | 217,355 | 224,470 | ||||||||
Uniform Mortgage-Backed Security 2.00% 20351,3 | 121,790 | 125,568 | ||||||||
Uniform Mortgage-Backed Security 2.50% 20351,3 | 60,000 | 62,709 | ||||||||
Uniform Mortgage-Backed Security 2.00% 20501,3 | 15,966 | 16,297 | ||||||||
Uniform Mortgage-Backed Security 3.00% 20501,3 | 59,000 | 62,038 | ||||||||
Uniform Mortgage-Backed Security 3.50% 20501,3 | 83,539 | 87,867 | ||||||||
Uniform Mortgage-Backed Security 3.50% 20501,3 | 70,084 | 73,709 | ||||||||
Uniform Mortgage-Backed Security 4.50% 20501,3 | 15,431 | 16,582 | ||||||||
Uniform Mortgage-Backed Securities 2.00%–4.00% 2035–20501,3 | 15,040 | 15,704 | ||||||||
Other securities | 135,131 | |||||||||
|
| |||||||||
1,130,698 | ||||||||||
|
| |||||||||
Federal agency bonds & notes 19.03% | ||||||||||
Fannie Mae 2.875% 2023 | 36,000 | 39,014 | ||||||||
Fannie Mae 0.63%–7.13% 2021–2030 | 14,900 | 16,129 | ||||||||
Federal Home Loan Bank 3.375% 2023 | 16,715 | 18,357 | ||||||||
Federal Home Loan Bank 3.25%–5.50% 2028–2036 | 6,800 | 8,205 | ||||||||
Freddie Mac 2.375% 2021 | 40,000 | 40,541 | ||||||||
Private Export Funding Corp. 3.266% 20214 | 34,000 | 35,291 | ||||||||
Private Export Funding Corp. 3.55% 2024 | 3,190 | 3,535 | ||||||||
Tennessee Valley Authority, Series A, 3.875% 2021 | 32,975 | 33,727 | ||||||||
Tennessee Valley Authority 0.75%–5.88% 2025–2060 | 9,705 | 11,686 | ||||||||
U.S. Agency for International Development, Iraq (State of) 2.149% 2022 | 3,370 | 3,455 | ||||||||
U.S. Agency for International Development, Jordan (Kingdom of) 2.578% 2022 | 41,500 | 43,356 | ||||||||
U.S. Agency for International Development, Jordan (Kingdom of) 3.00% 2025 | 42,625 | 47,465 | ||||||||
U.S. Agency for International Development, Jordan (Kingdom of) 2.503% 2020 | 2,500 | 2,524 | ||||||||
U.S. Agency for International Development, Morocco (Kingdom of) 7.55% 2026 | 2,843 | 3,469 | ||||||||
U.S. Agency for International Development, Tunisia (Kingdom of) 1.416% 2021 | 1,500 | 1,523 | ||||||||
U.S. Agency for International Development, Ukraine 1.471% 2021 | 2,210 | 2,249 | ||||||||
U.S. Department of Housing and Urban Development, Series 2015-A-13, 3.15% 2027 | 11,482 | 12,700 | ||||||||
U.S. Department of Housing and Urban Development 1.98%–3.70% 2020–2034 | 44,025 | 46,939 | ||||||||
Other securities | 3,673 | |||||||||
|
| |||||||||
373,838 | ||||||||||
|
| |||||||||
U.S. Treasury bonds & notes 16.99% | ||||||||||
U.S. Treasury | U.S. Treasury 1.75% 2022 | 45,700 | 47,085 | |||||||
14.85% | U.S. Treasury 1.625% 2026 | 50,000 | 53,731 | |||||||
U.S. Treasury 2.25% 20495 | 25,700 | 30,896 | ||||||||
U.S. Treasury 2.375% 20495 | 13,000 | 16,048 | ||||||||
U.S. Treasury 2.875% 20495 | 26,000 | 35,164 | ||||||||
U.S. Treasury 3.00% 20495 | 22,500 | 31,055 | ||||||||
U.S. Treasury 1.25% 20505 | 42,800 | 41,098 | ||||||||
U.S. Treasury 0.63%–2.88% 2022–2046 | 33,100 | 36,545 | ||||||||
|
| |||||||||
291,622 | ||||||||||
|
|
American Funds Insurance Series | 93 |
Table of Contents
U.S. Government/AAA-Rated Securities Fund
Bonds, notes & other debt instruments (continued)
| Principal amount (000)
| Value (000)
| ||||||||
U.S. Treasury bonds & notes (continued) | ||||||||||
U.S. Treasury inflation-protected securities 2.14% | U.S. Treasury Inflation-Protected Security 0.75% 20425,6 | $ 14,970 | $ | 17,968 | ||||||
U.S. Treasury Inflation-Protected Securities 0.13%–2.13% 2022–20495,6 | 20,649 | 24,160 | ||||||||
|
| |||||||||
42,128 | ||||||||||
|
| |||||||||
Total U.S. Treasury bonds & notes | 333,750 | |||||||||
|
| |||||||||
Total bonds, notes & other debt instruments (cost: $1,770,195,000) | 1,838,286 | |||||||||
|
| |||||||||
Short-term securities 42.61%
| ||||||||||
Commercial paper 22.09% | ||||||||||
Apple Inc. 0.14% due 9/2/20204 | 45,000 | 44,989 | ||||||||
CAFCO, LLC 0.16% due 7/20/20204 | 25,000 | 24,999 | ||||||||
Chariot Funding, LLC 0.15%–0.25% due 8/3/2020–9/25/20204 | 30,000 | 29,994 | ||||||||
CRC Funding, LLC 0.23% due 9/21/20204 | 15,000 | 14,991 | ||||||||
Eli Lilly and Co. 0.15% due 7/28/20204 | 20,000 | 19,992 | ||||||||
Emerson Electric Co. 0.15% due 8/13/20204 | 13,500 | 13,488 | ||||||||
ExxonMobil Corp. 0.18%–0.19% due 8/24/2020–9/3/2020 | 34,300 | 34,290 | ||||||||
Johnson & Johnson 0.11%–0.15% due 8/3/2020–9/8/20204 | 38,225 | 38,217 | ||||||||
Merck & Co. Inc. 0.25% due 8/13/20204 | 25,000 | 24,997 | ||||||||
OMERS Finance Trust 0.14% due 7/13/20204 | 20,000 | 19,999 | ||||||||
Paccar Financial Corp. 0.10%–0.12% due 7/2/2020–7/9/2020 | 49,000 | 49,000 | ||||||||
Pfizer Inc. 0.21%–0.23% due 10/16/2020–10/28/20204 | 50,000 | 49,966 | ||||||||
Simon Property Group, LP 0.15%–0.15% due 7/20/2020–7/23/20204 | 30,500 | 30,498 | ||||||||
Other securities | 38,587 | |||||||||
|
| |||||||||
434,007 | ||||||||||
|
| |||||||||
Federal agency discount notes 18.23% | ||||||||||
Federal Farm Credit Banks 0.12%–0.22% due 8/7/2020–11/6/2020 | 110,700 | 110,658 | ||||||||
Federal Home Loan Bank 0.03%–0.27% due 7/1/2020–9/15/2020 | 233,700 | 233,663 | ||||||||
Tennessee Valley Authority 0.11% due 7/15/2020 | 13,700 | 13,699 | ||||||||
|
| |||||||||
358,020 | ||||||||||
|
| |||||||||
U.S. Treasury bills 2.29% | ||||||||||
U.S. Treasury Bills 0.10%–0.11% due 7/21/2020–7/23/2020 | 45,000 | 44,996 | ||||||||
|
| |||||||||
Total short-term securities (cost: $837,023,000) | 837,023 | |||||||||
|
| |||||||||
Total investment securities 136.19% (cost: $2,607,218,000) | 2,675,309 | |||||||||
Other assets less liabilities (36.19)% | (710,931 | ) | ||||||||
|
| |||||||||
Net assets 100.00% | $ | 1,964,378 | ||||||||
|
|
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.
94 | American Funds Insurance Series |
Table of Contents
U.S. Government/AAA-Rated Securities Fund
Futures contracts
Contracts | Type | | Number of contracts |
| Expiration | | Notional amount (000) | 7
| | Value at 6/30/2020 (000) | 8
| | Unrealized (depreciation) appreciation at 6/30/2020 (000) |
| ||||||||||||||
30 Day Federal Funds Futures | Short | 1,028 | October 2020 | $(428,368 | ) | $(428,175 | ) | $ (90 | ) | |||||||||||||||||||
30 Day Federal Funds Futures | Short | 759 | January 2021 | (316,275 | ) | (316,196 | ) | (1 | ) | |||||||||||||||||||
90 Day Euro Dollar Futures | Short | 4,418 | September 2020 | (1,104,500 | ) | (1,101,573 | ) | (251 | ) | |||||||||||||||||||
90 Day Euro Dollar Futures | Short | 841 | March 2021 | (210,250 | ) | (209,830 | ) | (38 | ) | |||||||||||||||||||
2 Year U.S. Treasury Note Futures | Short | 255 | October 2020 | (51,000 | ) | (56,311 | ) | (2 | ) | |||||||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 2,405 | October 2020 | 240,500 | 302,410 | 838 | ||||||||||||||||||||||
10 Year U.S. Treasury Note Futures | Short | 445 | September 2020 | (44,500 | ) | (61,932 | ) | (167 | ) | |||||||||||||||||||
10 Year Ultra U.S. Treasury Note Futures | Short | 628 | September 2020 | (62,800 | ) | (98,900 | ) | (1,408 | ) | |||||||||||||||||||
20 Year U.S. Treasury Bond Futures | Long | 225 | September 2020 | 22,500 | 40,177 | 253 | ||||||||||||||||||||||
30 Year Ultra U.S. Treasury Bond Futures | Long | 1,159 | September 2020 | 115,900 | 252,843 | 1,085 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||
$ 219 | ||||||||||||||||||||||||||||
|
|
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 6/30/2020 (000) | Upfront premium paid (000) | Unrealized (000) | ||||||||||||||||||||||||||||||||||
1.309% | U.S. EFFR | 12/16/2020 | $ | 356,850 | $ | 1,141 | $ | – | $ | 1,141 | ||||||||||||||||||||||||||||||
1.33075% | U.S. EFFR | 12/16/2020 | 236,600 | 769 | – | 769 | ||||||||||||||||||||||||||||||||||
2.5775% | U.S. EFFR | 7/16/2022 | 181,639 | 4,836 | – | 4,836 | ||||||||||||||||||||||||||||||||||
1.2525% | U.S. EFFR | 2/14/2023 | 156,941 | 5,141 | – | 5,141 | ||||||||||||||||||||||||||||||||||
U.S. EFFR | 0.11% | 5/18/2024 | 163,600 | (4 | ) | – | (4 | ) | ||||||||||||||||||||||||||||||||
U.S. EFFR | 0.126% | 6/25/2025 | 20,100 | (38 | ) | – | (38 | ) | ||||||||||||||||||||||||||||||||
U.S. EFFR | 0.1275% | 6/25/2025 | 20,100 | (40 | ) | – | (40 | ) | ||||||||||||||||||||||||||||||||
U.S. EFFR | 0.1275% | 6/25/2025 | 28,500 | (56 | ) | – | (56 | ) | ||||||||||||||||||||||||||||||||
U.S. EFFR | 0.0975% | 6/30/2025 | 15,429 | (7 | ) | – | (7 | ) | ||||||||||||||||||||||||||||||||
U.S. EFFR | 0.105% | 6/30/2025 | 28,500 | (23 | ) | – | (23 | ) | ||||||||||||||||||||||||||||||||
U.S. EFFR | 0.106% | 6/30/2025 | 35,063 | (30 | ) | – | (30 | ) | ||||||||||||||||||||||||||||||||
U.S. EFFR | 0.093% | 7/2/2025 | 25,600 | (5 | ) | – | (5 | ) | ||||||||||||||||||||||||||||||||
U.S. EFFR | 0.096% | 7/2/2025 | 25,500 | (8 | ) | – | (8 | ) | ||||||||||||||||||||||||||||||||
3-month USD-LIBOR | 1.867% | 7/11/2025 | 49,400 | (2,174 | ) | – | (2,174 | ) | ||||||||||||||||||||||||||||||||
2.91% | 3-month USD-LIBOR | 2/1/2028 | 16,000 | 1,795 | – | 1,795 | ||||||||||||||||||||||||||||||||||
2.908% | 3-month USD-LIBOR | 2/1/2028 | 16,000 | 1,793 | – | 1,793 | ||||||||||||||||||||||||||||||||||
2.925% | 3-month USD-LIBOR | 2/1/2028 | 12,800 | 1,445 | – | 1,445 | ||||||||||||||||||||||||||||||||||
2.92% | 3-month USD-LIBOR | 2/2/2028 | 12,200 | 1,374 | – | 1,374 | ||||||||||||||||||||||||||||||||||
U.S. EFFR | 0.5385% | 3/26/2030 | 49,000 | (755 | ) | – | (755 | ) | ||||||||||||||||||||||||||||||||
0.913% | 3-month USD-LIBOR | 6/9/2030 | 31,000 | 854 | – | 854 | ||||||||||||||||||||||||||||||||||
3-month USD-LIBOR | 2.986% | 2/1/2038 | 7,800 | (1,356 | ) | – | (1,356 | ) | ||||||||||||||||||||||||||||||||
3-month USD-LIBOR | 2.9625% | 2/1/2038 | 9,800 | (1,682 | ) | – | (1,682 | ) | ||||||||||||||||||||||||||||||||
3-month USD-LIBOR | 2.963% | 2/1/2038 | 9,800 | (1,682 | ) | – | (1,682 | ) | ||||||||||||||||||||||||||||||||
0.833% | 3-month USD-LIBOR | 4/3/2040 | 15,800 | (131 | ) | – | (131 | ) | ||||||||||||||||||||||||||||||||
3-month USD-LIBOR | 3.34% | 6/27/2044 | 10,000 | (5,477 | ) | – | (5,477 | ) | ||||||||||||||||||||||||||||||||
3-month USD-LIBOR | 3.206% | 7/31/2044 | 16,000 | (8,307 | ) | – | (8,307 | ) | ||||||||||||||||||||||||||||||||
3-month USD-LIBOR | 3.238% | 8/8/2044 | 16,000 | (8,429 | ) | – | (8,429 | ) | ||||||||||||||||||||||||||||||||
3-month USD-LIBOR | 2.7045% | 1/2/2045 | 12,000 | (4,947 | ) | – | (4,947 | ) | ||||||||||||||||||||||||||||||||
3-month USD-LIBOR | 2.4945% | 1/9/2045 | 2,000 | (728 | ) | – | (728 | ) | ||||||||||||||||||||||||||||||||
3-month USD-LIBOR | 2.5055% | 1/9/2045 | 11,000 | (4,034 | ) | – | (4,034 | ) | ||||||||||||||||||||||||||||||||
3-month USD-LIBOR | 2.52822% | 11/23/2045 | 4,390 | (1,683 | ) | – | (1,683 | ) | ||||||||||||||||||||||||||||||||
3-month USD-LIBOR | 1.934% | 12/12/2049 | 15,000 | (4,117 | ) | – | (4,117 | ) | ||||||||||||||||||||||||||||||||
3-month USD-LIBOR | 1.935% | 12/17/2049 | 17,280 | (4,750 | ) | – | (4,750 | ) | ||||||||||||||||||||||||||||||||
3-month USD-LIBOR | 2.007% | 12/19/2049 | 16,300 | (4,798 | ) | – | (4,798 | ) |
American Funds Insurance Series | 95 |
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 6/30/2020 (000) | Upfront premium paid (000) | Unrealized appreciation (depreciation) at 6/30/2020 (000) | ||||||||||||||||||||||||||||||||||||
3-month USD-LIBOR | 2.045% | 12/27/2049 | $ | 15,100 | $ | (4,604 | ) | $ | – | $ | (4,604 | ) | ||||||||||||||||||||||||||||||
3-month USD-LIBOR | 2.0375% | 1/6/2050 | 8,480 | (2,568 | ) | – | (2,568 | ) | ||||||||||||||||||||||||||||||||||
3-month USD-LIBOR | 1.961% | 1/9/2050 | 17,700 | (4,995 | ) | – | (4,995 | ) | ||||||||||||||||||||||||||||||||||
3-month USD-LIBOR | 1.678% | 2/21/2050 | 15,865 | (3,274 | ) | – | (3,274 | ) | ||||||||||||||||||||||||||||||||||
0.8235% | 3-month USD-LIBOR | 4/24/2050 | 5,300 | (139 | ) | – | (139 | ) | ||||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||||||||
$ | – | $ | (51,693 | ) | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
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.
1Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
2Coupon 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.
3Purchased on a TBA basis.
4Acquired 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 $381,008,000, which represented 19.40% of the net assets of the fund.
5All or a portion of this security was pledged as collateral. The total value of pledged collateral was $47,020,000, which represented 2.39% of the net assets of the fund.
6Index-linked bond whose principal amount moves with a government price index.
7Notional amount is calculated based on the number of contracts and notional contract size.
8Value is calculated based on the notional amount and current market price.
Key to abbreviations and symbol
EFFR = Effective Federal Funds Rate
LIBOR = London Interbank Offered Rate
TBA = To-be-announced
USD/$ = U.S. dollars
See notes to financial statements.
96 | American Funds Insurance Series |
Table of Contents
| ||
Investment portfolio June 30, 2020 | unaudited |
Growth funds 80.77%
| Shares
| Value (000) | ||||||||
American Funds Insurance Series – Growth Fund, Class 1 | 4,337,694 | $ | 384,320 | |||||||
|
| |||||||||
Total growth funds (cost: $325,521,000) | 384,320 | |||||||||
|
| |||||||||
Fixed income funds 11.85%
| ||||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 4,800,568 | 56,359 | ||||||||
|
| |||||||||
Total fixed income funds (cost: $55,586,000) | 56,359 | |||||||||
|
| |||||||||
Short-term securities 4.36%
| ||||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.12%1 | 20,768,279 | 20,768 | ||||||||
|
| |||||||||
Total short-term securities (cost: $20,768,000) | 20,768 | |||||||||
|
| |||||||||
Total investment securities 96.98% (cost: $401,875,000) | 461,447 | |||||||||
Other assets less liabilities 3.02% | 14,347 | |||||||||
|
| |||||||||
Net assets 100.00% | $ | 475,794 | ||||||||
|
|
Futures contracts
Contracts | Type | | Number of contracts |
| Expiration | | Notional amount (000) | 2
| | Value at 6/30/2020 (000) | 3
| | Unrealized appreciation (depreciation) at 6/30/2020 (000) |
| ||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 1,830 | September 2020 | $ | 183,000 | $ 230,108 | $ 521 | |||||||||||||||||||||
Euro Stoxx 50 Index Contracts | Short | 115 | September 2020 | € | (1 | ) | (4,176 | ) | (58 | ) | ||||||||||||||||||
FTSE 100 Index Contracts | Short | 88 | September 2020 | £ | (1 | ) | (6,693 | ) | 28 | |||||||||||||||||||
S&P Mid 400 E-mini Index Contracts | Short | 16 | September 2020 | $ | (2 | ) | (2,847 | ) | (31 | ) | ||||||||||||||||||
Mini MSCI Emerging Market Index Contracts | Short | 81 | September 2020 | (4 | ) | (3,992 | ) | (57 | ) | |||||||||||||||||||
Nikkei 225 Index Contracts | Short | 4 | September 2020 | ¥ | (4 | ) | (829 | ) | 20 | |||||||||||||||||||
Russell 2000 Mini Index Contracts | Short | 74 | September 2020 | $ | (4 | ) | (5,319 | ) | (142 | ) | ||||||||||||||||||
S&P 500 E-mini Index Contracts | Short | 934 | September 2020 | (47 | ) | (144,312 | ) | (1,226 | ) | |||||||||||||||||||
Euro Currency Contracts | Short | 33 | September 2020 | € | (4,125 | ) | (4,642 | ) | 47 | |||||||||||||||||||
British Pound Currency Contracts | Short | 95 | September 2020 | £ | (5,937 | ) | (7,361 | ) | 147 | |||||||||||||||||||
Japanese Yen Currency Contracts | Short | 7 | September 2020 | ¥ | (87,500 | ) | (811 | ) | 3 | |||||||||||||||||||
|
| |||||||||||||||||||||||||||
$ (748 | ) | |||||||||||||||||||||||||||
|
|
American Funds Insurance Series | 97 |
Table of Contents
Managed Risk Growth Fund
Investments in affiliates
These holdings are affiliates of the fund under the Investment Company Act of 1940 since they are controlled by the same board of trustees as the series. Further details on these holdings and related transactions during the six months ended June 30, 2020, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized gain (000) | Net unrealized appreciation (depreciation) (000) | Dividend income (000) | Value of affiliates at 6/30/2020 (000) | |||||||||||||||||||||||||
Growth funds 80.77% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – |
| |||||||||||||||||||||||||||||||
Growth Fund, Class 1 | 4,413,020 | 2,704,845 | 2,780,171 | 4,337,694 | $19,348 | $14,700 | $1,044 | $384,320 | ||||||||||||||||||||||||
Fixed income funds 11.85% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – |
| |||||||||||||||||||||||||||||||
Bond Fund, Class 1 | 5,970,036 | 4,753,074 | 5,922,542 | 4,800,568 | 3,228 | (1,124 | ) | 278 | 56,359 | |||||||||||||||||||||||
Total 92.62% | $22,576 | $13,576 | $1,322 | $440,679 |
1Rate represents the seven-day yield at 6/30/2020.
2Notional amount is calculated based on the number of contracts and notional contract size.
3Value is calculated based on the notional amount and current market price.
Key to symbols
£ = British pounds
€ = Euros
¥ = Japanese yen
$ = U.S. dollars
See notes to financial statements.
98 | American Funds Insurance Series |
Table of Contents
Managed Risk International Fund
Investment portfolio June 30, 2020 | unaudited |
Growth funds 80.16%
| Shares
| Value
| ||||||||
American Funds Insurance Series – International Fund, Class 1 | 6,722,659 | $ | 124,235 | |||||||
|
| |||||||||
Total growth funds (cost: $123,593,000) | 124,235 | |||||||||
|
| |||||||||
Fixed income funds 10.54%
| ||||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 1,391,875 | 16,340 | ||||||||
|
| |||||||||
Total fixed income funds (cost: $16,266,000) | 16,340 | |||||||||
|
| |||||||||
Short-term securities 5.51%
| ||||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.12%1 | 8,534,973 | 8,535 | ||||||||
|
| |||||||||
Total short-term securities (cost: $8,535,000) | 8,535 | |||||||||
|
| |||||||||
Total investment securities 96.21% (cost: $148,394,000) | 149,110 | |||||||||
Other assets less liabilities 3.79% | 5,881 | |||||||||
|
| |||||||||
Net assets 100.00% | $ | 154,991 | ||||||||
|
|
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional (000) | Value at 6/30/20203 (000) | Unrealized appreciation (depreciation) at 6/30/2020 (000) | ||||||||||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 591 | September 2020 | $ | 59,100 | $ | 74,314 | $ | 169 | |||||||||||||||||||
Russell 2000 Mini Index Contracts | Short | 4 | September 2020 | – | 4 | (288 | ) | (6 | ) | |||||||||||||||||||
FTSE 100 Index Contracts | Short | 53 | September 2020 | £ | (1 | ) | (4,031 | ) | 27 | |||||||||||||||||||
S&P 500 E-mini Index Contracts | Short | 18 | September 2020 | $ | (1 | ) | (2,781 | ) | (11 | ) | ||||||||||||||||||
Euro Stoxx 50 Index Contracts | Short | 398 | September 2020 | € | (4 | ) | (14,452 | ) | (201 | ) | ||||||||||||||||||
Mini MSCI Emerging Market Index Contracts | Short | 430 | September 2020 | $ | (21 | ) | (21,193 | ) | (335 | ) | ||||||||||||||||||
Nikkei 225 Index Contracts | Short | 46 | September 2020 | ¥ | (46 | ) | (9,531 | ) | 168 | |||||||||||||||||||
British Pound Currency Contracts | Short | 58 | September 2020 | £ | (3,625 | ) | (4,494 | ) | 124 | |||||||||||||||||||
Euro Currency Contracts | Short | 113 | September 2020 | € | (14,125 | ) | (15,896 | ) | 176 | |||||||||||||||||||
Japanese Yen Currency Contracts | Short | 87 | September 2020 | ¥ | (1,087,500 | ) | (10,082 | ) | 35 | |||||||||||||||||||
|
| |||||||||||||||||||||||||||
$ | 146 | |||||||||||||||||||||||||||
|
|
American Funds Insurance Series | 99 |
Table of Contents
Managed Risk International Fund
Investments in affiliates
These holdings are affiliates of the fund under the Investment Company Act of 1940 since they are controlled by the same board of trustees as the series. Further details on these holdings and related transactions during the six months ended June 30, 2020, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized (loss) gain (000) | Net unrealized depreciation (000) | Dividend income (000) | Value of affiliates at 6/30/2020 (000) | |||||||||||||||||||||||||
Growth funds 80.16% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – |
| |||||||||||||||||||||||||||||||
International Fund, Class 1 | 6,417,163 | 3,607,142 | 3,301,646 | 6,722,659 | $(274 | ) | $(13,491 | ) | $291 | $124,235 | ||||||||||||||||||||||
Fixed income funds 10.54% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – |
| |||||||||||||||||||||||||||||||
Bond Fund, Class 1 | 2,190,172 | 1,552,632 | 2,350,929 | 1,391,875 | 1,004 | (602 | ) | 76 | 16,340 | |||||||||||||||||||||||
Total 90.70% | $ 730 | $(14,093 | ) | $367 | $140,575 |
1Rate represents the seven-day yield at 6/30/2020.
2Notional amount is calculated based on the number of contracts and notional contract size.
3Value is calculated based on the notional amount and current market price.
4Amount less than one thousand.
Key to symbols
£ = British pounds
€ = Euros
¥ = Japanese yen
$ = U.S. dollars
See notes to financial statements.
100 | American Funds Insurance Series |
Table of Contents
Managed Risk Blue Chip Income and Growth Fund
Investment portfolio June 30, 2020 | unaudited |
Growth-and-income funds 80.69%
| Shares
| Value
| ||||||||
American Funds Insurance Series – Blue Chip Income and Growth Fund, Class 1 | 22,665,236 | $ | 277,422 | |||||||
|
| |||||||||
Total growth-and-income funds (cost: $256,393,000) | 277,422 | |||||||||
|
| |||||||||
Fixed income funds 11.98%
| ||||||||||
American Funds Insurance Series – U.S. Government/AAA-Rated Securities Fund, Class 1 | 3,150,130 | 41,204 | ||||||||
|
| |||||||||
Total fixed income funds (cost: $41,869,000) | 41,204 | |||||||||
|
| |||||||||
Short-term securities 4.16%
| ||||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.12%1 | 14,294,614 | 14,295 | ||||||||
|
| |||||||||
Total short-term securities (cost: $14,295,000) | 14,295 | |||||||||
|
| |||||||||
Total investment securities 96.83% (cost: $312,557,000) | 332,921 | |||||||||
Other assets less liabilities 3.17% | 10,910 | |||||||||
|
| |||||||||
Net assets 100.00% | $ | 343,831 | ||||||||
|
|
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount2 (000) | Value at 6/30/20203 (000) | Unrealized appreciation (depreciation) at 6/30/2020 (000) | ||||||||||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 1,326 | September 2020 | $ | 132,600 | $ | 166,734 | $ | 358 | |||||||||||||||||||
Euro Stoxx 50 Index Contracts | Short | 27 | September 2020 | € | – | 4 | (980 | ) | (15 | ) | ||||||||||||||||||
FTSE 100 Index Contracts | Short | 19 | September 2020 | £ | – | 4 | (1,445 | ) | 7 | |||||||||||||||||||
S&P Mid 400 E-mini Index Contracts | Short | 4 | September 2020 | $ | – | 4 | (712 | ) | 5 | |||||||||||||||||||
Russell 2000 Mini Index Contracts | Short | 24 | September 2020 | (1 | ) | (1,725 | ) | (46 | ) | |||||||||||||||||||
Nikkei 225 Index Contracts | Short | 3 | September 2020 | ¥ | (3 | ) | (622 | ) | 13 | |||||||||||||||||||
S&P 500 E-mini Index Contracts | Short | 843 | September 2020 | $ | (42 | ) | (130,252 | ) | (1,128 | ) | ||||||||||||||||||
Euro Currency Contracts | Short | 8 | September 2020 | € | (1,000 | ) | (1,125 | ) | 12 | |||||||||||||||||||
British Pound Currency Contracts | Short | 20 | September 2020 | £ | (1,250 | ) | (1,550 | ) | 21 | |||||||||||||||||||
Japanese Yen Currency Contracts | Short | 6 | September 2020 | ¥ | (75,000 | ) | (695 | ) | 2 | |||||||||||||||||||
|
| |||||||||||||||||||||||||||
$ | (771 | ) | ||||||||||||||||||||||||||
|
|
American Funds Insurance Series | 101 |
Table of Contents
Managed Risk Blue Chip Income and Growth Fund
Investments in affiliates
These holdings are affiliates of the fund under the Investment Company Act of 1940 since they are controlled by the same board of trustees as the series. Further details on these holdings and related transactions during the six months ended June 30, 2020, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized (loss) gain (000) | Net unrealized appreciation (depreciation) (000) | Dividend income (000) | Value of affiliates at 6/30/2020 (000) | |||||||||||||||||||||||||
Growth-and-income funds 80.69% |
| |||||||||||||||||||||||||||||||
American Funds Insurance Series – |
| |||||||||||||||||||||||||||||||
Blue Chip Income and Growth Fund, Class 1 | 22,089,727 | 17,541,545 | 16,966,036 | 22,665,236 | $(44,343 | ) | $17,301 | $1,252 | $277,422 | |||||||||||||||||||||||
Fixed income funds 11.98% |
| |||||||||||||||||||||||||||||||
American Funds Insurance Series – |
| |||||||||||||||||||||||||||||||
U.S. Government/AAA-Rated Securities Fund, Class 1 | 4,337,434 | 4,396,329 | 5,583,633 | 3,150,130 | 4,403 | (1,398) | 249 | 41,204 | ||||||||||||||||||||||||
Total 92.67% | $(39,940 | ) | $15,903 | $1,501 | $318,626 |
1Rate represents the seven-day yield at 6/30/2020.
2Notional amount is calculated based on the number of contracts and notional contract size.
3Value is calculated based on the notional amount and current market price.
4Amount less than one thousand.
Key to symbols
£ = British pounds
€ = Euros
¥ = Japanese yen
$ = U.S. dollars
See notes to financial statements.
102 | American Funds Insurance Series |
Table of Contents
Managed Risk Growth-Income Fund
Investment portfolio June 30, 2020 | unaudited |
Growth-and-income funds 79.81%
| Shares
| Value (000)
| ||||||||
American Funds Insurance Series – Growth-Income Fund, Class 1 | 37,428,324 | $ | 1,774,103 | |||||||
|
| |||||||||
Total growth-and-income funds (cost: $1,699,817,000) | 1,774,103 | |||||||||
|
| |||||||||
Fixed income funds 14.34%
| ||||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 27,153,850 | 318,786 | ||||||||
|
| |||||||||
Total fixed income funds (cost: $301,353,000) | 318,786 | |||||||||
|
| |||||||||
Short-term securities 3.45%
| ||||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.12%1 | 76,700,100 | 76,700 | ||||||||
|
| |||||||||
Total short-term securities (cost: $76,700,000) | 76,700 | |||||||||
|
| |||||||||
Options purchased 0.91%
| ||||||||||
Options purchased* | 20,156 | |||||||||
|
| |||||||||
Total options purchased (cost: $14,491,000) | 20,156 | |||||||||
|
| |||||||||
Total investment securities 98.51% (cost: $2,092,361,000) | 2,189,745 | |||||||||
Other assets less liabilities 1.49% | 33,195 | |||||||||
|
| |||||||||
Net assets 100.00% | $ | 2,222,940 | ||||||||
|
|
*Options purchased
Put | ||||||||||||||||||||
Description | Number of contracts | Notional amount (000) | Exercise price | Expiration date | Value at 6/30/2020 (000) | |||||||||||||||
S&P 500 Index | 15 | $ | 47 | $ | 2,325.00 | 9/18/2020 | $ 26 | |||||||||||||
S&P 500 Index | 205 | 636 | 2,375.00 | 9/18/2020 | 414 | |||||||||||||||
S&P 500 Index | 130 | 403 | 2,400.00 | 9/18/2020 | 283 | |||||||||||||||
S&P 500 Index | 140 | 434 | 2,425.00 | 9/18/2020 | 330 | |||||||||||||||
S&P 500 Index | 390 | 1,209 | 2,450.00 | 9/18/2020 | 996 | |||||||||||||||
S&P 500 Index | 150 | 465 | 2,475.00 | 9/18/2020 | 412 | |||||||||||||||
S&P 500 Index | 85 | 264 | 2,500.00 | 9/18/2020 | 238 | |||||||||||||||
S&P 500 Index | 2,845 | 8,820 | 2,525.00 | 9/18/2020 | 9,047 | |||||||||||||||
S&P 500 Index | 500 | 1,550 | 1,775.00 | 12/18/2020 | 722 | |||||||||||||||
S&P 500 Index | 805 | 2,496 | 1,950.00 | 12/18/2020 | 1,707 | |||||||||||||||
S&P 500 Index | 250 | 775 | 2,025.00 | 12/18/2020 | 700 | |||||||||||||||
S&P 500 Index | 1,205 | 3,736 | 2,050.00 | 12/18/2020 | 3,446 | |||||||||||||||
S&P 500 Index | 570 | 1,767 | 2,075.00 | 12/18/2020 | 1,835 | |||||||||||||||
$20,156 |
American Funds Insurance Series | 103 |
Table of Contents
Managed Risk Growth-Income Fund
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount2 (000) | Value at 6/30/20203 (000) | Unrealized | ||||||||||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 6,944 | September 2020 | $ | 694,400 | $ | 873,154 | $1,869 | ||||||||||||||||||||
FTSE 100 Index Contracts | Short | 472 | September 2020 | £ | (5 | ) | (35,898 | ) | 125 | |||||||||||||||||||
Russell 2000 Mini Index Contracts | Short | 115 | September 2020 | $ | (6 | ) | (8,266 | ) | (252 | ) | ||||||||||||||||||
Euro Stoxx 50 Index Contracts | Short | 653 | September 2020 | € | (7 | ) | (23,712 | ) | (336 | ) | ||||||||||||||||||
S&P Mid 400 E-mini Index Contracts | Short | 93 | September 2020 | $ | (9 | ) | (16,546 | ) | (86 | ) | ||||||||||||||||||
Mini MSCI Emerging Market Index Contracts | Short | 196 | September 2020 | (10 | ) | (9,660 | ) | (124 | ) | |||||||||||||||||||
Nikkei 225 Index Contracts | Short | 21 | September 2020 | ¥ | (21 | ) | (4,351 | ) | 10 | |||||||||||||||||||
S&P 500 E-mini Index Contracts | Short | 2,188 | September 2020 | $ | (109 | ) | (338,068 | ) | (647 | ) | ||||||||||||||||||
Euro Currency Contracts | Short | 192 | September 2020 | € | (24,000 | ) | (27,009 | ) | 191 | |||||||||||||||||||
British Pound Currency Contracts | Short | 514 | September 2020 | £ | (32,125 | ) | (39,825 | ) | 664 | |||||||||||||||||||
Japanese Yen Currency Contracts | Short | 42 | September 2020 | ¥ | (525,000 | ) | (4,867 | ) | 28 | |||||||||||||||||||
$1,442 |
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 six months ended June 30, 2020, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized (loss) gain (000) | Net unrealized | Dividend income (000) | Value of affiliates | |||||||||||||||||||||||||
Growth-and-income funds 79.81% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – | ||||||||||||||||||||||||||||||||
Growth-Income Fund, Class 1 | 36,320,774 | 8,983,578 | 7,876,028 | 37,428,324 | $(18,289 | ) | $(88,186 | ) | $7,790 | $1,774,103 | ||||||||||||||||||||||
Fixed income funds 14.34% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – | ||||||||||||||||||||||||||||||||
Bond Fund, Class 1 | 30,186,789 | 13,872,805 | 16,905,744 | 27,153,850 | 15,325 | (2,561 | ) | 1,520 | 318,786 | |||||||||||||||||||||||
Total 94.15% | $(2,964 | ) | $(90,747) | $9,310 | $2,092,889 |
1Rate represents the seven-day yield at 6/30/2020.
2Notional amount is calculated based on the number of contracts and notional contract size.
3Value is calculated based on the notional amount and current market price.
Key to symbols
£ = British pounds
€ = Euros
¥ = Japanese yen
$ = U.S. dollars
See notes to financial statements.
104 | American Funds Insurance Series |
Table of Contents
Managed Risk Asset Allocation Fund
Investment portfolio June 30, 2020 | unaudited |
Asset allocation funds 94.87%
| Shares
| Value (000)
| ||||||||
American Funds Insurance Series – Asset Allocation Fund, Class 1 | 106,445,576 | $ | 2,499,342 | |||||||
|
| |||||||||
Total asset allocation funds (cost: $2,371,532,000) | 2,499,342 | |||||||||
|
| |||||||||
Short-term securities 3.36%
| ||||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.12%1 | 88,533,146 | 88,533 | ||||||||
|
| |||||||||
Total short-term securities (cost: $88,533,000) | 88,533 | |||||||||
|
| |||||||||
Total investment securities 98.23% (cost: $2,460,065,000) | 2,587,875 | |||||||||
Other assets less liabilities 1.77% | 46,716 | |||||||||
|
| |||||||||
Net assets 100.00% | $ | 2,634,591 | ||||||||
|
|
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount2 (000) | Value at 6/30/20203 (000) | Unrealized | ||||||||||||||||||||||
5 Year U.S. Treasury Note Futures | Long | 6,187 | September 2020 | $ | 618,700 | $ | 777,967 | $ | 1,825 | |||||||||||||||||||
FTSE 100 Index Contracts | Short | 155 | September 2020 | £ | (2 | ) | (11,789 | ) | 57 | |||||||||||||||||||
Euro Stoxx 50 Index Contracts | Short | 744 | September 2020 | € | (7 | ) | (27,016 | ) | (415 | ) | ||||||||||||||||||
S&P Mid 400 E-mini Index Contracts | Short | 74 | September 2020 | $ | (7 | ) | (13,165 | ) | (72 | ) | ||||||||||||||||||
Russell 2000 Mini Index Contracts | Short | 182 | September 2020 | (9 | ) | (13,082 | ) | (386 | ) | |||||||||||||||||||
Nikkei 225 Index Contracts | Short | 18 | September 2020 | ¥ | (18 | ) | (3,730 | ) | 33 | |||||||||||||||||||
Mini MSCI Emerging Market Index Contracts | Short | 380 | September 2020 | $ | (19 | ) | (18,728 | ) | (230 | ) | ||||||||||||||||||
S&P 500 E-mini Index Contracts | Short | 2,871 | September 2020 | (144 | ) | (443,598 | ) | (5,339 | ) | |||||||||||||||||||
British Pound Currency Contracts | Short | 171 | September 2020 | £ | (10,688 | ) | (13,249 | ) | 243 | |||||||||||||||||||
Euro Currency Contracts | Short | 213 | September 2020 | € | (26,625 | ) | (29,962 | ) | 216 | |||||||||||||||||||
Japanese Yen Currency Contracts | Short | 34 | September 2020 | ¥ | (425,000 | ) | (3,940 | ) | 17 | |||||||||||||||||||
|
| |||||||||||||||||||||||||||
$ | (4,051 | ) | ||||||||||||||||||||||||||
|
|
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 six months ended June 30, 2020, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized gain (000) | Net unrealized depreciation (000) | Dividend income (000) | Value of at 6/30/2020 | |||||||||||||||||||||||||
Asset allocation funds 94.87% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – | 112,462,863 | 30,198,966 | 36,216,253 | 106,445,576 | $31,110 | $(115,825 | ) | $11,742 | $2,499,342 |
1Rate represents the seven-day yield at 6/30/2020.
2Notional amount is calculated based on the number of contracts and notional contract size.
3Value is calculated based on the notional amount and current market price.
Key to symbols
£ = British pounds
€ = Euros
¥ = Japanese yen
$ = U.S. dollars
See notes to financial statements.
American Funds Insurance Series | 105 |
Table of Contents
Statements of assets and liabilities at June 30, 2020
Global Growth Fund | Global Small Capitalization | Growth Fund | International Fund | New World Fund | ||||||||||||||||
Assets: | ||||||||||||||||||||
Investment securities, at value: | ||||||||||||||||||||
Unaffiliated issuers | $6,800,923 | $4,406,547 | $30,210,096 | $8,909,827 | $3,446,624 | |||||||||||||||
Affiliated issuers | – | 28,136 | – | – | – | |||||||||||||||
Cash | 1,219 | 140 | 1,290 | 51 | 652 | |||||||||||||||
Cash collateral received for securities on loan | 2,692 | 6,779 | – | 1,203 | 898 | |||||||||||||||
Cash denominated in currencies other than U.S. dollars | 755 | 282 | 182 | 1,477 | 5,282 | |||||||||||||||
Unrealized appreciation on open forward currency contracts | – | – | – | – | 10 | |||||||||||||||
Receivables for: | ||||||||||||||||||||
Sales of investments | – | 1,722 | 239,774 | 64,948 | 22,688 | |||||||||||||||
Sales of fund’s shares | 1,823 | 163 | 20,147 | 1,931 | 1,596 | |||||||||||||||
Dividends and interest | 8,335 | 3,570 | 16,137 | 22,780 | 8,580 | |||||||||||||||
Closed forward currency contracts | – | – | – | – | – | |||||||||||||||
Variation margin on futures contracts | – | – | – | – | – | |||||||||||||||
Variation margin on swap contracts | – | – | – | – | – | |||||||||||||||
Securities lending income | 17 | 409 | – | 53 | 11 | |||||||||||||||
Other | 512 | – | * | 8 | 327 | 1,814 | ||||||||||||||
6,816,276 | 4,447,748 | 30,487,634 | 9,002,597 | 3,488,155 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Collateral for securities on loan | 26,917 | 67,795 | – | 12,030 | 8,979 | |||||||||||||||
Unrealized depreciation on open forward currency contracts | – | – | – | – | 4 | |||||||||||||||
Payables for: | ||||||||||||||||||||
Purchases of investments | 27 | 9,377 | 35,543 | 29,973 | 17,929 | |||||||||||||||
Repurchases of fund’s shares | 24,159 | 14,174 | 117,041 | 14,206 | 7,519 | |||||||||||||||
Investment advisory services | 2,819 | 2,483 | 7,790 | 3,658 | 1,460 | |||||||||||||||
Insurance administrative fees | 231 | 113 | 966 | 201 | 363 | |||||||||||||||
Services provided by related parties | 1,010 | 599 | 4,420 | 1,085 | 395 | |||||||||||||||
Trustees’ deferred compensation | 73 | 50 | 465 | 192 | 34 | |||||||||||||||
Closed forward currency contracts | – | – | – | – | – | |||||||||||||||
Variation margin on futures contracts | – | – | – | – | 16 | |||||||||||||||
Variation margin on swap contracts | – | – | – | – | – | |||||||||||||||
Non-U.S. taxes | 2,859 | 139 | 992 | 8,079 | 6,580 | |||||||||||||||
Other | 745 | 87 | 80 | 206 | 421 | |||||||||||||||
58,840 | 94,817 | 167,297 | 69,630 | 43,700 | ||||||||||||||||
Net assets at June 30, 2020 | $6,757,436 | $4,352,931 | $30,320,337 | $8,932,967 | $3,444,455 | |||||||||||||||
Net assets consist of: | ||||||||||||||||||||
Capital paid in on shares of beneficial interest | $3,642,424 | $3,312,498 | $14,523,960 | $7,757,420 | $2,642,985 | |||||||||||||||
Total distributable earnings (accumulated loss) | 3,115,012 | 1,040,433 | 15,796,377 | 1,175,547 | 801,470 | |||||||||||||||
Net assets at June 30, 2020 | $6,757,436 | $4,352,931 | $30,320,337 | $8,932,967 | $3,444,455 | |||||||||||||||
Investment securities on loan, at value | $ 25,635 | $ 69,706 | $ – | $ 11,451 | $ 8,556 | |||||||||||||||
Investment securities, at cost: | ||||||||||||||||||||
Unaffiliated issuers | 3,717,864 | 3,210,976 | 15,395,228 | 7,341,731 | 2,656,688 | |||||||||||||||
Affiliated issuers | – | 60,721 | – | – | – | |||||||||||||||
Cash denominated in currencies other than U.S. dollars, at cost | 755 | 282 | 183 | 1,477 | 5,283 |
See end of statements of assets and liabilities for footnote.
See notes to financial statements.
106 | American Funds Insurance Series |
Table of Contents
unaudited
(dollars in thousands)
Blue Chip Fund | Global and Income | Growth- Fund | International and Income Fund | Capital Income Builder | Asset Allocation Fund | Global Balanced Fund | Bond Fund | Capital World Bond | ||||||||||||||||||||||||||
$ | 8,417,359 | $ | 1,920,163 | $ | 33,982,191 | $ | 1,298,444 | $ | 974,871 | $ | 27,593,550 | $ | 416,011 | $ | 11,689,474 | $ | 2,137,369 | |||||||||||||||||
– | – | – | – | – | 76,331 | – | – | – | ||||||||||||||||||||||||||
2,792 | 887 | 3,520 | 50 | 701 | 2,526 | 133 | 6,655 | 537 | ||||||||||||||||||||||||||
– | – | – | – | 377 | 5,034 | – | – | – | ||||||||||||||||||||||||||
– | 75 | – | 232 | 366 | – | 9 | – | * | 64 | |||||||||||||||||||||||||
– | – | – | – | – | – | 108 | 2,979 | 742 | ||||||||||||||||||||||||||
– | 4,998 | 50,811 | – | 15,078 | 1,174,758 | 6,689 | 1,909,331 | 83,348 | ||||||||||||||||||||||||||
2,684 | 571 | 5,896 | 239 | 1,529 | 9,474 | 75 | 34,126 | 3,504 | ||||||||||||||||||||||||||
10,614 | 4,733 | 40,582 | 4,075 | 3,336 | 77,276 | 1,374 | 58,586 | 14,841 | ||||||||||||||||||||||||||
– | – | – | – | – | – | 47 | – | 5,787 | ||||||||||||||||||||||||||
– | – | – | – | 12 | 334 | 1 | 1,252 | 95 | ||||||||||||||||||||||||||
– | – | – | – | 69 | – | * | 11 | 296 | 295 | |||||||||||||||||||||||||
– | – | – | – | 13 | 60 | – | – | – | ||||||||||||||||||||||||||
– | 183 | – | 18 | 16 | 140 | 21 | 80 | 66 | ||||||||||||||||||||||||||
8,433,449 | 1,931,610 | 34,083,000 | 1,303,058 | 996,368 | 28,939,483 | 424,479 | 13,702,779 | 2,246,648 | ||||||||||||||||||||||||||
– | – | – | – | 3,773 | 50,338 | – | – | – | ||||||||||||||||||||||||||
– | 27 | – | – | 4 | – | 165 | 1,252 | 1,979 | ||||||||||||||||||||||||||
6,195 | 9,766 | 75,860 | 23 | 27,339 | 2,458,118 | 10,537 | 3,321,101 | 160,470 | ||||||||||||||||||||||||||
7,390 | 3,444 | 39,467 | 1,061 | 3,215 | 19,456 | 84 | 4,381 | 818 | ||||||||||||||||||||||||||
2,725 | 948 | 7,130 | 660 | 174 | 5,749 | 224 | 3,069 | 737 | ||||||||||||||||||||||||||
374 | 77 | 691 | 53 | 253 | 2,627 | 56 | 342 | 30 | ||||||||||||||||||||||||||
911 | 321 | 3,660 | 90 | 109 | 2,547 | 68 | 1,093 | 258 | ||||||||||||||||||||||||||
87 | 23 | 540 | 11 | 4 | 269 | 3 | 116 | 25 | ||||||||||||||||||||||||||
– | – | – | – | – | – | – | – | 1,089 | ||||||||||||||||||||||||||
– | – | – | – | 66 | 776 | – | 968 | 90 | ||||||||||||||||||||||||||
– | – | – | – | – | * | – | 7 | 142 | 126 | |||||||||||||||||||||||||
95 | 1,905 | 186 | 140 | 120 | 724 | 41 | – | 137 | ||||||||||||||||||||||||||
3 | 30 | 1,127 | 36 | 10 | 32 | 6 | 12 | 88 | ||||||||||||||||||||||||||
17,780 | 16,541 | 128,661 | 2,074 | 35,067 | 2,540,636 | 11,191 | 3,332,476 | 165,847 | ||||||||||||||||||||||||||
$ | 8,415,669 | $ | 1,915,069 | $ | 33,954,339 | $ | 1,300,984 | $ | 961,301 | $ | 26,398,847 | $ | 413,288 | $ | 10,370,303 | $ | 2,080,801 | |||||||||||||||||
$ | 7,039,795 | $ | 1,507,479 | $ | 24,581,668 | $ | 1,287,115 | $ | 966,903 | $ | 20,193,336 | $ | 345,828 | $ | 9,435,457 | $ | 1,992,653 | |||||||||||||||||
1,375,874 | 407,590 | 9,372,671 | 13,869 | (5,602 | ) | 6,205,511 | 67,460 | 934,846 | 88,148 | |||||||||||||||||||||||||
$ | 8,415,669 | $ | 1,915,069 | $ | 33,954,339 | $ | 1,300,984 | $ | 961,301 | $ | 26,398,847 | $ | 413,288 | $ | 10,370,303 | $ | 2,080,801 | |||||||||||||||||
$ | – | $ | – | $ | – | $ | – | $ | 3,593 | $ | 47,984 | $ | – | $ | – | $ | – | |||||||||||||||||
7,070,167 | 1,535,745 | 24,591,940 | 1,201,052 | 905,907 | 22,097,199 | 351,926 | 11,155,136 | 2,078,021 | ||||||||||||||||||||||||||
– | – | – | – | – | 112,973 | – | – | – | ||||||||||||||||||||||||||
– | 75 | – | 237 | 366 | – | 9 | – | * | 78 |
American Funds Insurance Series | 107 |
Table of Contents
Statements of assets and liabilities at June 30, 2020
High- Income Bond Fund | American Fund (formerly | Ultra-Short Bond Fund | U.S. Government/ AAA-Rated Securities Fund | Managed Risk Growth Fund | ||||||||||||||||
Assets: | ||||||||||||||||||||
Investment securities, at value: | ||||||||||||||||||||
Unaffiliated issuers | $ 787,337 | $412,848 | $343,931 | $2,675,309 | $ 20,768 | |||||||||||||||
Affiliated issuers | – | – | – | – | 440,679 | |||||||||||||||
Cash | 710 | 274 | 64 | 1,214 | – | |||||||||||||||
Cash collateral pledged for futures contracts | – | – | – | – | 14,719 | |||||||||||||||
Cash collateral pledged for swap contracts | 1,087 | – | – | – | – | |||||||||||||||
Cash denominated in currencies other than U.S. dollars | – | * | – | – | – | – | ||||||||||||||
Receivables for: | ||||||||||||||||||||
Sales of investments | 4,471 | 84,455 | – | 838,085 | 3,201 | |||||||||||||||
Sales of fund’s shares | 1,729 | 325 | 544 | 8,786 | 33 | |||||||||||||||
Dividends and interest | 13,600 | 526 | – | 5,505 | 2 | |||||||||||||||
Variation margin on futures contracts | – | 15 | – | 227 | 86 | |||||||||||||||
Variation margin on swap contracts | – | 72 | – | 1,651 | – | |||||||||||||||
Other | 3 | 1 | – | – | – | |||||||||||||||
808,937 | 498,516 | 344,539 | 3,530,777 | 479,488 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Payables for: | ||||||||||||||||||||
Purchases of investments | 21,311 | 211,160 | – | 1,560,978 | – | |||||||||||||||
Repurchases of fund’s shares | 2,723 | 387 | 157 | 2,636 | 1,082 | |||||||||||||||
Investment advisory services | 319 | 56 | 90 | 571 | 38 | |||||||||||||||
Insurance administrative fees | 30 | 23 | 21 | 155 | 277 | |||||||||||||||
Services provided by related parties | 159 | 26 | 70 | 367 | 92 | |||||||||||||||
Trustees’ deferred compensation | 41 | 3 | 15 | 52 | 2 | |||||||||||||||
Variation margin on futures contracts | – | 33 | – | 1,390 | 2,203 | |||||||||||||||
Variation margin on swap contracts | 102 | 3 | – | 249 | – | |||||||||||||||
Other | 1 | – | – | * | 1 | – | ||||||||||||||
24,686 | 211,691 | 353 | 1,566,399 | 3,694 | ||||||||||||||||
Net assets at June 30, 2020 | $ 784,251 | $286,825 | $344,186 | $1,964,378 | $475,794 | |||||||||||||||
Net assets consist of: | ||||||||||||||||||||
Capital paid in on shares of beneficial interest | $1,067,386 | $269,291 | $343,495 | $1,711,687 | $400,000 | |||||||||||||||
Total distributable earnings (accumulated loss) | (283,135 | ) | 17,534 | 691 | 252,691 | 75,794 | ||||||||||||||
Net assets at June 30, 2020 | $ 784,251 | $286,825 | $344,186 | $1,964,378 | $475,794 | |||||||||||||||
Investment securities, at cost: | ||||||||||||||||||||
Unaffiliated issuers | $ 857,624 | $406,890 | $343,921 | $2,607,218 | $ 20,768 | |||||||||||||||
Affiliated issuers | – | – | – | – | 381,107 | |||||||||||||||
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.
108 | American Funds Insurance Series |
Table of Contents
unaudited (dollars in thousands) |
Managed Risk Fund | Managed Risk Blue Chip Income and Growth Fund | Managed Risk Income Fund | Managed Risk Asset Allocation Fund | |||||||||||
$ | 8,535 | $ | 14,295 | $ | 96,856 | $ | 88,533 | |||||||
140,575 | 318,626 | 2,092,889 | 2,499,342 | |||||||||||
– | – | – | – | |||||||||||
6,156 | 11,264 | 39,871 | 48,572 | |||||||||||
– | – | – | – | |||||||||||
– | – | – | – | |||||||||||
115 | 2,343 | – | 9,272 | |||||||||||
– | * | 360 | 143 | 283 | ||||||||||
1 | 1 | 8 | 9 | |||||||||||
159 | 16 | 417 | 213 | |||||||||||
– | – | – | – | |||||||||||
– | – | – | – | |||||||||||
|
| |||||||||||||
155,541 | 346,905 | 2,230,184 | 2,646,224 | |||||||||||
|
| |||||||||||||
– | 326 | 107 | – | |||||||||||
127 | 571 | 30 | 2,393 | |||||||||||
13 | 29 | 183 | 217 | |||||||||||
92 | 207 | 1,329 | 1,612 | |||||||||||
31 | 69 | 57 | 535 | |||||||||||
1 | 2 | 6 | 25 | |||||||||||
286 | 1,870 | 5,532 | 6,851 | |||||||||||
– | – | – | – | |||||||||||
– | – | – | – | |||||||||||
|
| |||||||||||||
550 | 3,074 | 7,244 | 11,633 | |||||||||||
|
| |||||||||||||
$ | 154,991 | $ | 343,831 | $ | 2,222,940 | $ | 2,634,591 | |||||||
|
| |||||||||||||
$ | 167,076 | $ | 371,801 | $ | 2,034,478 | $ | 2,507,349 | |||||||
(12,085 | ) | (27,970 | ) | 188,462 | 127,242 | |||||||||
|
| |||||||||||||
$ | 154,991 | $ | 343,831 | $ | 2,222,940 | $ | 2,634,591 | |||||||
|
| |||||||||||||
$ | 8,535 | $ | 14,295 | $ | 91,191 | $ | 88,533 | |||||||
139,859 | 298,262 | 2,001,170 | 2,371,532 | |||||||||||
– | – | – | – |
American Funds Insurance Series | 109 |
Table of Contents
Statements of assets and liabilities at June 30, 2020
Global Fund | Global Small | Growth Fund | International Fund | New World Fund | ||||||||||||||||||
Shares of beneficial interest issued and outstanding | ||||||||||||||||||||||
Class 1: | Net assets | $2,577,265 | $1,953,722 | $11,854,034 | $4,728,600 | $1,892,168 | ||||||||||||||||
Shares outstanding | 78,302 | 80,407 | 133,807 | 255,867 | 77,279 | |||||||||||||||||
Net asset value per share | $32.91 | $24.30 | $88.59 | $18.48 | $24.48 | |||||||||||||||||
Class 1A: | Net assets | $7,122 | $678 | $25,600 | $7,547 | $6,554 | ||||||||||||||||
Shares outstanding | 217 | 28 | 290 | 410 | 269 | |||||||||||||||||
Net asset value per share | $32.79 | $24.22 | $88.16 | $18.41 | $24.37 | |||||||||||||||||
Class 2: | Net assets | $3,771,308 | $2,197,405 | $16,504,586 | $3,834,301 | $901,859 | ||||||||||||||||
Shares outstanding | 115,891 | 93,404 | 188,011 | 208,477 | 37,228 | |||||||||||||||||
Net asset value per share | $32.54 | $23.53 | $87.79 | $18.39 | $24.23 | |||||||||||||||||
Class 3: | Net assets | $224,772 | $21,011 | |||||||||||||||||||
Shares outstanding | Not applicable | Not applicable | 2,519 | 1,134 | Not applicable | |||||||||||||||||
Net asset value per share | $89.23 | $18.52 | ||||||||||||||||||||
Class 4: | Net assets | $401,741 | $201,126 | $1,711,345 | $341,508 | $643,874 | ||||||||||||||||
Shares outstanding | 12,429 | 8,510 | 19,805 | 18,806 | 26,726 | |||||||||||||||||
Net asset value per share | $32.32 | $23.63 | $86.41 | $18.16 | $24.09 | |||||||||||||||||
High- Income Bond Fund | American Fund (formerly | Ultra-Short Bond Fund | U.S. Government/ AAA-Rated Securities Fund | Managed Growth Fund | ||||||||||||||||||
Shares of beneficial interest issued and outstanding | ||||||||||||||||||||||
Class 1: | Net assets | $114,962 | $191,924 | $42,342 | $375,307 | |||||||||||||||||
Shares outstanding | 12,425 | 17,278 | 3,741 | 28,687 | Not applicable | |||||||||||||||||
Net asset value per share | $9.25 | $11.11 | $11.32 | $13.08 | ||||||||||||||||||
Class 1A: | Net assets | $879 | $600 | $10 | $3,167 | |||||||||||||||||
Shares outstanding | 95 | 54 | 1 | 243 | Not applicable | |||||||||||||||||
Net asset value per share | $9.23 | $11.08 | $11.32 | $13.04 | ||||||||||||||||||
Class 2: | Net assets | $609,375 | $56,036 | $264,574 | $1,327,819 | |||||||||||||||||
Shares outstanding | 67,113 | 5,058 | 24,017 | 102,663 | Not applicable | |||||||||||||||||
Net asset value per share | $9.08 | $11.08 | $11.02 | $12.93 | ||||||||||||||||||
Class 3: | Net assets | $8,885 | $3,704 | $10,561 | ||||||||||||||||||
Shares outstanding | 956 | Not applicable | 333 | 806 | Not applicable | |||||||||||||||||
Net asset value per share | $9.29 | $11.14 | $13.10 | |||||||||||||||||||
Class 4: | Net assets | $50,150 | $38,265 | $33,556 | $247,524 | |||||||||||||||||
Shares outstanding | 5,067 | 3,492 | 3,016 | 19,159 | Not applicable | |||||||||||||||||
Net asset value per share | $9.90 | $10.96 | $11.12 | $12.92 | ||||||||||||||||||
Class P1: | Net assets | $8,933 | ||||||||||||||||||||
Shares outstanding | Not applicable | Not applicable | Not applicable | Not applicable | 632 | |||||||||||||||||
Net asset value per share | $14.14 | |||||||||||||||||||||
Class P2: | Net assets | $466,861 | ||||||||||||||||||||
Shares outstanding | Not applicable | Not applicable | Not applicable | Not applicable | 33,228 | |||||||||||||||||
Net asset value per share | $14.05 | |||||||||||||||||||||
*Amount less than one thousand.
See notes to financial statements.
110 | American Funds Insurance Series |
Table of Contents
unaudited
(dollars and shares in thousands, except per-share amounts)
Blue Chip Fund | Global and Income | Growth- Fund | International and Income | Capital Income Builder | Asset Allocation Fund | Global Balanced Fund | Bond Fund | Capital World Bond | ||||||||||||||||||||||||||
$5,012,447 | $595,521 | $20,113,557 | $1,018,911 | $531,064 | $17,060,999 | $127,192 | $6,193,266 | $1,063,326 | ||||||||||||||||||||||||||
409,370 | 43,360 | 424,334 | 66,159 | 53,711 | 726,468 | 9,725 | 527,359 | 87,569 | ||||||||||||||||||||||||||
$12.24 | $13.73 | $47.40 | $15.40 | $9.89 | $23.48 | $13.08 | $11.74 | $12.14 | ||||||||||||||||||||||||||
$12,167 | $1,947 | $11,148 | $2,228 | $5,218 | $11,158 | $2,179 | $7,741 | $589 | ||||||||||||||||||||||||||
998 | 142 | 236 | 145 | 528 | 477 | 167 | 662 | 49 | ||||||||||||||||||||||||||
$12.18 | $13.69 | $47.20 | $15.36 | $9.88 | $23.41 | $13.04 | $11.69 | $12.11 | ||||||||||||||||||||||||||
$2,750,308 | $1,184,793 | $12,503,946 | $190,263 | $5,976 | $4,808,231 | $192,194 | $3,588,958 | $968,059 | ||||||||||||||||||||||||||
227,855 | 86,504 | 267,435 | 12,402 | 605 | 207,145 | 14,739 | 309,891 | 80,404 | ||||||||||||||||||||||||||
$12.07 | $13.70 | $46.76 | $15.34 | $9.88 | $23.21 | $13.04 | $11.58 | $12.04 | ||||||||||||||||||||||||||
$142,104 | $30,325 | |||||||||||||||||||||||||||||||||
Not applicable | Not applicable | 2,994 | Not applicable | Not applicable | 1,290 | Not applicable | Not applicable | Not applicable | ||||||||||||||||||||||||||
$47.47 | $23.50 | |||||||||||||||||||||||||||||||||
$640,747 | $132,808 | $1,183,584 | $89,582 | $419,043 | $4,488,134 | $91,723 | $580,338 | $48,827 | ||||||||||||||||||||||||||
53,430 | 9,866 | 25,635 | 5,881 | 42,463 | 194,512 | 7,109 | 50,272 | 4,097 | ||||||||||||||||||||||||||
$11.99 | $13.46 | $46.17 | $15.23 | $9.87 | $23.07 | $12.90 | $11.54 | $11.92 | ||||||||||||||||||||||||||
Managed Risk International Fund | Managed Risk Blue Chip Income and Growth Fund | Managed Growth- Fund | Managed Asset | |||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
$1,287 | $1,200 | $1,938,294 | $3,884 | |||||||||||||||||||||||||||||||
137 | 115 | 150,354 | 309 | |||||||||||||||||||||||||||||||
$9.41 | $10.44 | $12.89 | $12.56 | |||||||||||||||||||||||||||||||
$153,704 | $342,631 | $284,646 | $2,630,707 | |||||||||||||||||||||||||||||||
16,426 | 33,045 | 22,208 | 215,304 | |||||||||||||||||||||||||||||||
$9.36 | $10.37 | $12.82 | $12.22 | |||||||||||||||||||||||||||||||
American Funds Insurance Series | 111 |
Table of Contents
Statements of operations for the six months ended June 30, 2020
Global Growth Fund | Global Small | Growth Fund | International Fund | New World | ||||||||||||||||
Investment income: | ||||||||||||||||||||
Income (net of non-U.S. taxes*): | ||||||||||||||||||||
Dividends | $ | 40,163 | $ | 16,488 | $ | 123,178 | $ | 70,461 | $ | 21,534 | ||||||||||
Interest | 6 | 3 | 1,279 | 2,634 | 3,317 | |||||||||||||||
Securities lending income | 46 | 1,880 | – | 95 | 40 | |||||||||||||||
40,215 | 18,371 | 124,457 | 73,190 | 24,891 | ||||||||||||||||
Fees and expenses*: | ||||||||||||||||||||
Investment advisory services | 16,284 | 14,314 | 44,278 | 21,651 | 11,609 | |||||||||||||||
Distribution services | 4,928 | 2,830 | 21,161 | 5,104 | 1,819 | |||||||||||||||
Insurance administrative services | 469 | 233 | 1,915 | 423 | 746 | |||||||||||||||
Transfer agent services | – | † | – | † | 2 | 1 | – | † | ||||||||||||
Administrative services | 948 | 616 | 4,150 | 1,312 | 496 | |||||||||||||||
Reports to shareholders | 86 | 55 | 356 | 120 | 54 | |||||||||||||||
Registration statement and prospectus | 34 | 69 | 187 | 77 | 24 | |||||||||||||||
Trustees’ compensation | 10 | 7 | 44 | 14 | 5 | |||||||||||||||
Auditing and legal | 14 | 29 | 16 | 28 | 56 | |||||||||||||||
Custodian | 356 | 295 | 242 | 834 | 410 | |||||||||||||||
Other | 3 | 40 | 13 | 5 | 32 | |||||||||||||||
Total fees and expenses before waivers/reimbursements | 23,132 | 18,488 | 72,364 | 29,569 | 15,251 | |||||||||||||||
Less waivers/reimbursements of fees and expenses: | ||||||||||||||||||||
Investment advisory services waivers | – | – | – | – | 984 | |||||||||||||||
Total fees and expenses after waivers | 23,132 | 18,488 | 72,364 | 29,569 | 14,267 | |||||||||||||||
Net investment income (loss) | 17,083 | (117 | ) | 52,093 | 43,621 | 10,624 | ||||||||||||||
Net realized gain (loss) and unrealized appreciation (depreciation): | ||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Unaffiliated issuers | 42,774 | (126,951 | ) | 946,951 | (232,455 | ) | 15,408 | |||||||||||||
Affiliated issuers | – | – | – | – | – | |||||||||||||||
Futures contracts | – | – | – | – | – | |||||||||||||||
Forward currency contracts | – | – | – | 182 | (23 | ) | ||||||||||||||
Swap contracts | – | – | – | – | – | |||||||||||||||
Currency transactions | (885 | ) | (560 | ) | (847 | ) | (1,833 | ) | (1,402 | ) | ||||||||||
41,889 | (127,511 | ) | 946,104 | (234,106 | ) | 13,983 | ||||||||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Unaffiliated issuers | 198,615 | 1,895 | 2,294,869 | (896,169 | ) | (185,316 | ) | |||||||||||||
Affiliated issuers | – | 620 | – | – | – | |||||||||||||||
Futures contracts | – | – | – | – | 73 | |||||||||||||||
Forward currency contracts | – | – | – | 131 | 6 | |||||||||||||||
Swap contracts | – | – | – | – | – | |||||||||||||||
Currency translations | 44 | (242 | ) | (45 | ) | 214 | (150 | ) | ||||||||||||
198,659 | 2,273 | 2,294,824 | (895,824 | ) | (185,387 | ) | ||||||||||||||
Net realized gain (loss) and unrealized appreciation (depreciation) | 240,548 | (125,238 | ) | 3,240,928 | (1,129,930 | ) | (171,404 | ) | ||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 257,631 | $ | (125,355 | ) | $ | 3,293,021 | $ | (1,086,309 | ) | $ | (160,780 | ) | |||||||
See end of statements of operations for footnotes.
See notes to financial statements.
112 | American Funds Insurance Series |
Table of Contents
unaudited
(dollars in thousands)
Blue Chip Income and Growth Fund | Global and Income | Growth- Fund | International and Income | Capital Income Builder | Asset Allocation Fund | Global Balanced Fund | Bond Fund | Capital World Bond Fund (formerly Global Bond Fund) | ||||||||||||||||||||||||||
$ | 102,649 | $ | 19,233 | $ | 310,513 | $ | 17,964 | $ | 13,592 | $ | 169,401 | $ | 3,127 | $ | 4,210 | $ | 376 | |||||||||||||||||
2 | 1,466 | 1,160 | 461 | 2,363 | 111,253 | 1,343 | 129,403 | 26,598 | ||||||||||||||||||||||||||
– | – | – | – | 26 | 492 | – | – | – | ||||||||||||||||||||||||||
102,651 | 20,699 | 311,673 | 18,425 | 15,981 | 281,146 | 4,470 | 133,613 | 26,974 | ||||||||||||||||||||||||||
16,131 | 5,622 | 42,043 | 3,906 | 2,264 | 34,143 | 1,343 | 18,900 | 5,455 | ||||||||||||||||||||||||||
4,140 | 1,623 | 16,805 | 351 | 528 | 11,343 | 350 | 5,091 | 1,265 | ||||||||||||||||||||||||||
750 | 162 | 1,425 | 112 | 528 | 5,389 | 114 | 680 | 63 | ||||||||||||||||||||||||||
– | † | – | † | 2 | – | † | – | † | 2 | – | † | 1 | – | † | ||||||||||||||||||||
1,237 | 281 | 4,915 | 190 | 141 | 3,856 | 61 | 1,563 | 306 | ||||||||||||||||||||||||||
94 | 23 | 437 | 9 | 5 | 288 | 3 | 140 | 22 | ||||||||||||||||||||||||||
102 | 16 | 190 | 5 | 31 | 291 | 3 | 65 | 17 | ||||||||||||||||||||||||||
14 | 3 | 53 | 2 | 2 | 39 | 1 | 14 | 2 | ||||||||||||||||||||||||||
5 | 21 | 22 | 9 | 1 | 14 | 4 | 6 | 4 | ||||||||||||||||||||||||||
48 | 117 | 285 | 192 | 48 | 123 | 36 | 70 | 174 | ||||||||||||||||||||||||||
4 | 1 | 17 | 1 | – | † | 13 | 1 | 5 | 7 | |||||||||||||||||||||||||
22,525 | 7,869 | 66,194 | 4,777 | 3,548 | 55,501 | 1,916 | 26,535 | 7,315 | ||||||||||||||||||||||||||
– | – | – | – | 406 | – | – | – | 340 | ||||||||||||||||||||||||||
22,525 | 7,869 | 66,194 | 4,777 | 3,142 | 55,501 | 1,916 | 26,535 | 6,975 | ||||||||||||||||||||||||||
80,126 | 12,830 | 245,479 | 13,648 | 12,839 | 225,645 | 2,554 | 107,078 | 19,999 | ||||||||||||||||||||||||||
(50,918 | ) | 13,838 | (270,288 | ) | (61,926 | ) | (58,786 | ) | 493,330 | 1,258 | 263,827 | 11,840 | ||||||||||||||||||||||
– | – | – | – | – | 13,498 | – | – | – | ||||||||||||||||||||||||||
– | – | – | – | 3,729 | 36,972 | 449 | 85,319 | (1,040 | ) | |||||||||||||||||||||||||
– | 25 | – | 18 | 24 | – | 398 | (6,097 | ) | 8,589 | |||||||||||||||||||||||||
– | – | – | – | 2,323 | (10,838 | ) | (24 | ) | 6,561 | (3,720 | ) | |||||||||||||||||||||||
– | † | (630 | ) | 663 | 624 | 11 | (137 | ) | (203 | ) | (88 | ) | (992 | ) | ||||||||||||||||||||
(50,918 | ) | 13,233 | (269,625 | ) | (61,284 | ) | (52,699 | ) | 532,825 | 1,878 | 349,522 | 14,677 | ||||||||||||||||||||||
(769,382 | ) | (252,148 | ) | (1,252,158 | ) | (165,604 | ) | (25,949 | ) | (1,159,291 | ) | (18,130 | ) | 214,368 | 1,713 | |||||||||||||||||||
– | – | – | – | – | (79,610 | ) | – | – | – | |||||||||||||||||||||||||
| – – |
| – | – | – | 424 | 3,710 | 17 | 5,309 | 929 | ||||||||||||||||||||||||
– | 110 | – | 12 | (4 | ) | – | 42 | 2,917 | 973 | |||||||||||||||||||||||||
– | – | – | – | (550 | ) | 3,812 | (96 | ) | (24,633 | ) | 380 | |||||||||||||||||||||||
(11 | ) | (210 | ) | (470 | ) | (28 | ) | (6 | ) | (20 | ) | (11 | ) | 6 | (110 | ) | ||||||||||||||||||
(769,393 | ) | (252,248 | ) | (1,252,628 | ) | (165,620 | ) | (26,085 | ) | (1,231,399 | ) | (18,178 | ) | 197,967 | 3,885 | |||||||||||||||||||
(820,311 | ) | (239,015 | ) | (1,522,253 | ) | (226,904 | ) | (78,784 | ) | (698,574 | ) | (16,300 | ) | 547,489 | 18,562 | |||||||||||||||||||
$ | (740,185 | ) | $ | (226,185 | ) | $ | (1,276,774 | ) | $ | (213,256 | ) | $ | (65,945 | ) | $ | (472,929 | ) | $ | (13,746 | ) | $ | 654,567 | $ | 38,561 | ||||||||||
American Funds Insurance Series | 113 |
Table of Contents
Statements of operations for the six months ended June 30, 2020
High- Fund | American Funds Fund (formerly | Ultra-Short Bond Fund | U.S. Government/ AAA-Rated Securities Fund | Managed Risk Growth Fund | ||||||||||||||||
Investment income: | ||||||||||||||||||||
Income (net of non-U.S. taxes*): | ||||||||||||||||||||
Dividends | $ | 288 | $ | – | $ | – | $ | – | $ | 1,322 | ||||||||||
Interest | 37,081 | 2,376 | 1,652 | 22,392 | 53 | |||||||||||||||
37,369 | 2,376 | 1,652 | 22,392 | 1,375 | ||||||||||||||||
Fees and expenses*: | ||||||||||||||||||||
Investment advisory services | 2,499 | 607 | 509 | 4,542 | 331 | |||||||||||||||
Distribution services | 839 | 112 | 351 | 1,952 | 543 | |||||||||||||||
Insurance administrative services | 65 | 42 | 37 | 251 | 552 | |||||||||||||||
Transfer agent services | – | † | – | † | – | † | – | † | – | † | ||||||||||
Administrative services | 156 | 43 | 48 | 397 | – | |||||||||||||||
Accounting and administrative services | – | – | – | – | 40 | |||||||||||||||
Reports to shareholders | 15 | 2 | 3 | 68 | 4 | |||||||||||||||
Registration statement and prospectus | 5 | 1 | 1 | 12 | 7 | |||||||||||||||
Trustees’ compensation | 1 | – | † | 1 | 2 | 1 | ||||||||||||||
Auditing and legal | 2 | 1 | 4 | 2 | 1 | |||||||||||||||
Custodian | 9 | 13 | – | † | 19 | 7 | ||||||||||||||
Other | 11 | – | † | – | † | 1 | 1 | |||||||||||||
Total fees and expenses before waivers/reimbursements | 3,602 | 821 | 954 | 7,246 | 1,487 | |||||||||||||||
Less waivers/reimbursements of fees and expenses: | ||||||||||||||||||||
Investment advisory services waivers | – | 85 | – | – | 110 | |||||||||||||||
Miscellaneous fee reimbursements | – | – | – | – | – | |||||||||||||||
Total waivers/reimbursements of fees and expenses | – | 85 | – | – | 110 | |||||||||||||||
Total fees and expenses after waivers | 3,602 | 736 | 954 | 7,246 | 1,377 | |||||||||||||||
Net investment income (loss) | 33,767 | 1,640 | 698 | 15,146 | (2 | ) | ||||||||||||||
Net realized gain (loss) and unrealized appreciation (depreciation): | ||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Unaffiliated issuers | (52,614 | ) | 9,528 | – | 125,165 | – | ||||||||||||||
Affiliated issuers | – | – | – | – | 22,576 | |||||||||||||||
Futures contracts | (144 | ) | 8,464 | – | 87,073 | (7,772 | ) | |||||||||||||
Swap contracts | 4,677 | (2,463 | ) | – | 15,421 | – | ||||||||||||||
Currency transactions | 1 | – | – | – | (15 | ) | ||||||||||||||
Capital gain distributions received from affiliated issuers | – | – | – | – | 9,678 | |||||||||||||||
(48,080 | ) | 15,529 | – | 227,659 | 24,467 | |||||||||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Unaffiliated issuers | (67,914 | ) | 1,496 | 3 | 29,510 | – | ||||||||||||||
Affiliated issuers | – | – | – | – | 13,576 | |||||||||||||||
Futures contracts | (159 | ) | 780 | – | 8,167 | (687 | ) | |||||||||||||
Swap contracts | 1,897 | (3,135 | ) | – | (31,391 | ) | – | |||||||||||||
(66,176 | ) | (859 | ) | 3 | 6,286 | 12,889 | ||||||||||||||
Net realized gain (loss) and unrealized appreciation (depreciation) | (114,256 | ) | 14,670 | 3 | 233,945 | 37,356 | ||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | (80,489 | ) | $ | 16,310 | $ | 701 | $ | 249,091 | $ | 37,354 | |||||||||
*Additional information related to non-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.
114 | American Funds Insurance Series |
Table of Contents
unaudited (dollars in thousands) |
Managed Risk International Fund | Managed Risk Blue Chip Income and Growth Fund | Managed Risk Growth- Income Fund | Managed Asset | |||||||||||
$ 367 | $ | 1,501 | $ | 9,310 | $ | 11,742 | ||||||||
25 | 43 | 280 | 412 | |||||||||||
392 | 1,544 | 9,590 | 12,154 | |||||||||||
115 | 255 | 1,640 | 1,995 | |||||||||||
190 | 424 | 344 | 3,321 | |||||||||||
191 | 426 | 2,732 | 3,325 | |||||||||||
–† | – | † | – | † | – | † | ||||||||
– | – | – | – | |||||||||||
36 | 39 | 66 | 65 | |||||||||||
2 | 3 | 11 | 32 | |||||||||||
–† | 2 | 13 | 9 | |||||||||||
–† | – | † | 3 | 4 | ||||||||||
1 | 1 | 2 | 2 | |||||||||||
7 | 7 | 7 | 7 | |||||||||||
1 | 1 | 2 | 2 | |||||||||||
543 | 1,158 | 4,820 | 8,762 | |||||||||||
38 | 85 | 546 | 665 | |||||||||||
2 | – | – | – | |||||||||||
40 | 85 | 546 | 665 | |||||||||||
503 | 1,073 | 4,274 | 8,097 | |||||||||||
(111) | 471 | 5,316 | 4,057 | |||||||||||
– | – | (9,526 | ) | – | ||||||||||
730 | (39,940 | ) | (2,964 | ) | 31,110 | |||||||||
(7,162) | (10,119 | ) | 42,265 | (36,051 | ) | |||||||||
– | – | – | – | |||||||||||
39 | (9 | ) | (128 | ) | (116 | ) | ||||||||
159 | 4,329 | 49,797 | 11,667 | |||||||||||
(6,234) | (45,739 | ) | 79,444 | 6,610 | ||||||||||
– | – | 15,786 | – | |||||||||||
(14,093) | 15,903 | (90,747 | ) | (115,825 | ) | |||||||||
176 | (719 | ) | 772 | (3,526 | ) | |||||||||
– | – | – | – | |||||||||||
(13,917) | 15,184 | (74,189 | ) | (119,351 | ) | |||||||||
(20,151) | (30,555 | ) | 5,255 | (112,741 | ) | |||||||||
$(20,262) | $ | (30,084 | ) | $ | 10,571 | $ | (108,684 | ) | ||||||
American Funds Insurance Series | 115 |
Table of Contents
Statements of changes in net assets
Global Growth Fund | Global Small Capitalization Fund | Growth Fund | ||||||||||||||||||||||
Six months ended June 30, 2020* | Year ended December 31, 2019 | Six months ended June 30, 2020* | Year ended December 31, 2019 | Six months June 30, 2020* | Year ended December 31, 2019 | |||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 17,083 | $ | 56,332 | $ | (117 | ) | $ | 13,730 | $ | 52,093 | $ | 241,310 | |||||||||||
Net realized gain (loss) | 41,889 | 193,918 | (127,511 | ) | 251,270 | 946,104 | 745,536 | |||||||||||||||||
Net unrealized appreciation (depreciation) | 198,659 | 1,619,747 | 2,273 | 882,559 | 2,294,824 | 6,038,232 | ||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 257,631 | 1,869,997 | (125,355 | ) | 1,147,559 | 3,293,021 | 7,025,078 | |||||||||||||||||
Distributions paid to shareholders | (207,222 | ) | (417,934 | ) | (284,490 | ) | (284,752 | ) | (815,133 | ) | (2,978,202 | ) | ||||||||||||
Net capital share transactions | (93,420 | ) | (153,769 | ) | 142,503 | 102,952 | (627,210 | ) | 974,922 | |||||||||||||||
Total (decrease) increase in net assets | (43,011 | ) | 1,298,294 | (267,342 | ) | 965,759 | 1,850,678 | 5,021,798 | ||||||||||||||||
Net assets: | ||||||||||||||||||||||||
Beginning of period | 6,800,447 | 5,502,153 | 4,620,273 | 3,654,514 | 28,469,659 | 23,447,861 | ||||||||||||||||||
End of period | $ | 6,757,436 | $ | 6,800,447 | $ | 4,352,931 | $ | 4,620,273 | $ | 30,320,337 | $ | 28,469,659 | ||||||||||||
International Growth and Income Fund | Capital Income Builder | Asset Allocation Fund | ||||||||||||||||||||||
Six months ended June 30, 2020* | Year ended December 31, 2019 | Six months ended June 30, 2020* | Year ended December 31, 2019 | Six months ended June 30, 2020* | Year ended December 31, 2019 | |||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 13,648 | $ | 37,530 | $ | 12,839 | $ | 24,376 | $ | 225,645 | $ | 527,540 | ||||||||||||
Net realized gain (loss) | (61,284 | ) | (37,024 | ) | (52,699 | ) | (6,878 | ) | 532,825 | 20,909 | ||||||||||||||
Net unrealized appreciation (depreciation) | (165,620 | ) | 293,939 | (26,085 | ) | 117,343 | (1,231,399 | ) | 4,312,978 | |||||||||||||||
Net increase (decrease) in net assets resulting from operations | (213,256 | ) | 294,445 | (65,945 | ) | 134,841 | (472,929 | ) | 4,861,427 | |||||||||||||||
Distributions paid to shareholders | (3,243 | ) | (53,548 | ) | (14,279 | ) | (24,614 | ) | (242,551 | ) | (1,801,337 | ) | ||||||||||||
Net capital share transactions | 17,397 | (78,069 | ) | 42,809 | 213,209 | (305,328 | ) | 1,434,114 | ||||||||||||||||
Total (decrease) increase in net assets | (199,102 | ) | 162,828 | (37,415 | ) | 323,436 | (1,020,808 | ) | 4,494,204 | |||||||||||||||
Net assets: | ||||||||||||||||||||||||
Beginning of period | 1,500,086 | 1,337,258 | 998,716 | 675,280 | 27,419,655 | 22,925,451 | ||||||||||||||||||
End of period | $ | 1,300,984 | $ | 1,500,086 | $ | 961,301 | $ | 998,716 | $ | 26,398,847 | $ | 27,419,655 | ||||||||||||
See end of statements of changes in net assets for footnote.
See notes to financial statements.
116 | American Funds Insurance Series |
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(dollars in thousands)
International Fund | New World Fund | Blue Chip Income and Growth Fund | Global Growth and Income Fund | Growth-Income Fund | ||||||||||||||||||||||||||||||||||
Six months June 30, 2020* | Year ended December 31, 2019 | Six months ended June 30, 2020* | Year ended December 31, 2019 | Six months ended June 30, 2020* | Year ended December 31, 2019 | Six months ended June 30, 2020* | Year ended December 31, 2019 | Six months ended June 30, 2020* | Year ended December 31, 2019 | |||||||||||||||||||||||||||||
$ | 43,621 | $ | 136,307 | $ | 10,624 | $ | 34,732 | $ | 80,126 | $ | 189,701 | $ | 12,830 | $ | 38,039 | $ | 245,479 | $ | 648,555 | |||||||||||||||||||
(234,106 | ) | (127,992 | ) | 13,983 | 32,951 | (50,918 | ) | 85,829 | 13,233 | 51,837 | (269,625 | ) | 902,476 | |||||||||||||||||||||||||
(895,824 | ) | 1,988,427 | (185,387 | ) | 791,400 | (769,393 | ) | 1,423,960 | (252,248 | ) | 449,868 | (1,252,628 | ) | 6,175,985 | ||||||||||||||||||||||||
(1,086,309 | ) | 1,996,742 | (160,780 | ) | 859,083 | (740,185 | ) | 1,699,490 | (226,185 | ) | 539,744 | (1,276,774 | ) | 7,727,016 | ||||||||||||||||||||||||
(19,263 | ) | (394,620 | ) | (41,502 | ) | (164,192 | ) | (141,493 | ) | (878,225 | ) | (58,009 | ) | (140,198 | ) | (1,058,736 | ) | (3,957,175 | ) | |||||||||||||||||||
(36,892 | ) | (536,801 | ) | (113,674 | ) | 54,641 | 14,986 | 429,824 | 60,780 | (76,937 | ) | 263,583 | 2,392,290 | |||||||||||||||||||||||||
(1,142,464 | ) | 1,065,321 | (315,956 | ) | 749,532 | (866,692 | ) | 1,251,089 | (223,414 | ) | 322,609 | (2,071,927 | ) | 6,162,131 | ||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
$ | 8,932,967 | $ | 10,075,431 | $ | 3,444,455 | $ | 3,760,411 | $ | 8,415,669 | $ | 9,282,361 | $ | 1,915,069 | $ | 2,138,483 | $ | 33,954,339 | $ | 36,026,266 | |||||||||||||||||||
Global Balanced Fund | Bond Fund | Capital World Bond Fund (formerly Global Bond Fund) | High-Income Bond Fund | American Funds Mortgage Fund (formerly Mortgage Fund) | ||||||||||||||||||||||||||||||||||
Six months ended June 30, 2020* | Year ended December 31, 2019 | Six months June 30, 2020* | Year ended December 31, 2019 | Six months ended June 30, 2020* | Year ended December 31, 2019 | Six months ended June 30, 2020* | Year ended December 31, 2019 | Six months ended June 30, 2020* | Year ended December 31, 2019 | |||||||||||||||||||||||||||||
$ | 2,554 | $ | 6,777 | $ | 107,078 | $ | 272,023 | $ | 19,999 | $ | 52,158 | $ | 33,767 | $ | 82,861 | $ | 1,640 | $ | 6,346 | |||||||||||||||||||
1,878 | 9,826 | 349,522 | 243,332 | 14,677 | 21,665 | (48,080 | ) | (19,893 | ) | 15,529 | 9,940 | |||||||||||||||||||||||||||
(18,178 | ) | 58,663 | 197,967 | 411,625 | 3,885 | 87,557 | (66,176 | ) | 86,931 | (859 | ) | (1,209 | ) | |||||||||||||||||||||||||
(13,746 | ) | 75,266 | 654,567 | 926,980 | 38,561 | 161,380 | (80,489 | ) | 149,899 | 16,310 | 15,077 | |||||||||||||||||||||||||||
(1,456 | ) | (16,934 | ) | (144,034 | ) | (280,200 | ) | (39,902 | ) | (35,756 | ) | (12,904 | ) | (79,066 | ) | (1,602 | ) | (7,525 | ) | |||||||||||||||||||
(8,460 | ) | 12,429 | (691,390 | ) | 49,693 | (46,502 | ) | (84,997 | ) | (388,649 | ) | (8,439 | ) | (22,393 | ) | (4,217 | ) | |||||||||||||||||||||
(23,662 | ) | 70,761 | (180,857 | ) | 696,473 | (47,843 | ) | 40,627 | (482,042 | ) | 62,394 | (7,685 | ) | 3,335 | ||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
$ | 413,288 | $ | 436,950 | $ | 10,370,303 | $ | 10,551,160 | $ | 2,080,801 | $ | 2,128,644 | $ | 784,251 | $ | 1,266,293 | $ | 286,825 | $ | 294,510 | |||||||||||||||||||
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Statements of changes in net assets
Ultra-Short Bond Fund | U.S. Government/ AAA-Rated Securities Fund | Managed Risk Growth Fund | ||||||||||||||||||||||
Six months ended June 30, 2020* | Year ended December 31, 2019 | Six months ended June 30, 2020* | Year ended December 31, 2019 | Six months ended June 30, 2020* | Year ended December 31, 2019 | |||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 698 | $ | 4,833 | $ | 15,146 | $ | 55,852 | $ | (2 | ) | $ | 2,886 | |||||||||||
Net realized gain (loss) | – | (1 | ) | 227,659 | 122,154 | 24,467 | 30,629 | |||||||||||||||||
Net unrealized appreciation (depreciation) | 3 | 15 | 6,286 | (22,336 | ) | 12,889 | 43,736 | |||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 701 | 4,847 | 249,091 | 155,670 | 37,354 | 77,251 | ||||||||||||||||||
Distributions paid to shareholders | (737 | ) | (5,093 | ) | (49,531 | ) | (60,961 | ) | (25,274 | ) | (30,222 | ) | ||||||||||||
Net capital share transactions | 59,592 | (21,528 | ) | (1,131,516 | ) | (67,678 | ) | 24,064 | 49,348 | |||||||||||||||
Total (decrease) increase in net assets | 59,556 | (21,774 | ) | (931,956 | ) | 27,031 | 36,144 | 96,377 | ||||||||||||||||
Net assets: | ||||||||||||||||||||||||
Beginning of period | 284,630 | 306,404 | 2,896,334 | 2,869,303 | 439,650 | 343,273 | ||||||||||||||||||
End of period | $ | 344,186 | $ | 284,630 | $ | 1,964,378 | $ | 2,896,334 | $ | 475,794 | $ | 439,650 | ||||||||||||
*Unaudited.
See notes to financial statements.
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(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 | |||||||||||||||||||||||||||
Six months ended June 30, 2020* | Year ended December 31, 2019 | Six months ended June 30, 2020* | Year ended December 31, 2019 | Six months ended June 30, 2020* | Year ended December 31, 2019 | Six months ended June 30, 2020* | Year ended December 31, | |||||||||||||||||||||||
$ | (111 | ) | $ | 1,940 | $ | 471 | $ | 5,680 | $ | 5,316 | $ | 35,433 | $ | 4,057 | $ | 40,653 | ||||||||||||||
(6,234 | ) | 2,677 | (45,739 | ) | 16,823 | 79,444 | 149,567 | 6,610 | 131,826 | |||||||||||||||||||||
(13,917 | ) | 21,114 | 15,184 | 23,125 | (74,189 | ) | 180,419 | (119,351 | ) | 271,610 | ||||||||||||||||||||
(20,262 | ) | 25,731 | (30,084 | ) | 45,628 | 10,571 | 365,419 | (108,684 | ) | 444,089 | ||||||||||||||||||||
(3,247 | ) | (7,796 | ) | (16,570 | ) | (23,415 | ) | (151,686 | ) | (32,440 | ) | (146,678 | ) | (177,811 | ) | |||||||||||||||
12,731 | (3,125 | ) | 25,050 | 6,553 | 94,331 | 44,643 | 57,449 | 23,729 | ||||||||||||||||||||||
(10,778 | ) | 14,810 | (21,604 | ) | 28,766 | (46,784 | ) | 377,622 | (197,913 | ) | 290,007 | |||||||||||||||||||
165,769 | 150,959 | 365,435 | 336,669 | 2,269,724 | 1,892,102 | 2,832,504 | 2,542,497 | |||||||||||||||||||||||
$ | 154,991 | $ | 165,769 | $ | 343,831 | $ | 365,435 | $ | 2,222,940 | $ | 2,269,724 | $ | 2,634,591 | $ | 2,832,504 | |||||||||||||||
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Notes to financial statements | unaudited | |
1. Organization |
American Funds Insurance Series (the “series”) is registered under the Investment Company Act of 1940 as an open-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 objective(s) 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.
Capital World Bond Fund (formerly Global Bond Fund) – To provide, over the long term, a high level of total return consistent with prudent investment management.
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High-Income Bond Fund – The primary objective is to provide a high level of current income. The secondary objective is capital appreciation.
American Funds Mortgage Fund (formerly 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 different per-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 the ex-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 supplementary information in the financial highlights tables.
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Class allocations – Income, fees and expenses (other than class-specific fees and expenses), realized gains and losses and unrealized appreciation and depreciation 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’s ex-dividend date.
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 Capital Group Central Cash Fund (“CCF”), a fund within the Capital Group Central Fund Series (“Central Funds“), 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 State Street Institutional U.S. Government Money Market Fund held by the managed risk funds is managed to maintain a $1.00 net asset value per share. The net asset value of each share class of each managed risk fund is calculated based on the reported net asset values of the underlying funds in which each fund invests.
Exchange-traded options and futures are generally valued at the official closing price for options and official settlement price for futures of the exchange or market on which such instruments are traded, as of the close of business on the day such instruments are being valued. Forward currency contracts are valued at the mean of representative quoted bid and ask prices, generally based on prices supplied by one or more pricing vendors. Interest rate swaps and credit default swaps are generally valued by pricing vendors based on market inputs that include the index and term of index, reset frequency, payer/receiver, currency and pay frequency.
Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the series’ investment adviser are fair valued as determined in good faith under fair value guidelines adopted by authority of the series’ board of trustees as further described. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. In addition, the closing prices of equity securities and futures that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of each fund is determined. Fair valuations and valuations of investments and futures that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.
Processes and structure – The series’ board of trustees has delegated authority to the series’ investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees. The series’ board and audit committee also regularly review reports that describe fair value determinations and methods.
The series’ investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.
Classifications – The series’ investment adviser classifies the funds’ assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities.
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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 June 30, 2020 (dollars in thousands):
Global Growth Fund
Investment securities | ||||||||||||||||
|
| |||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
| |||||||||||||
| ||||||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 1,284,484 | $ | 798,997 | $ | – | $ | 2,083,481 | ||||||||
Consumer discretionary | 644,467 | 737,616 | – | 1,382,083 | ||||||||||||
Health care | 594,181 | 263,129 | – | 857,310 | ||||||||||||
Financials | 288,296 | 324,252 | – | 612,548 | ||||||||||||
Communication services | 363,088 | 202,838 | – | 565,926 | ||||||||||||
Consumer staples | 226,669 | 245,324 | – | 471,993 | ||||||||||||
Industrials | 35,710 | 227,160 | – | 262,870 | ||||||||||||
Materials | 100,652 | 30,744 | – | 131,396 | ||||||||||||
Energy | – | 87,257 | – | 87,257 | ||||||||||||
Other | – | 31,299 | – | 31,299 | ||||||||||||
Preferred securities | – | 156,272 | – | 156,272 | ||||||||||||
Short-term securities | 158,488 | – | – | 158,488 | ||||||||||||
| ||||||||||||||||
Total | $ | 3,696,035 | $ | 3,104,888 | $ | – | $ | 6,800,923 | ||||||||
|
Global Small Capitalization Fund
Investment securities | ||||||||||||||||
|
| |||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
| |||||||||||||
| ||||||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 597,103 | $ | 441,881 | $ | – | $ | 1,038,984 | ||||||||
Health care | 798,293 | 237,421 | 3 | 1,035,717 | ||||||||||||
Consumer discretionary | 361,327 | 266,306 | – | 627,633 | ||||||||||||
Industrials | 167,492 | 446,741 | – | 614,233 | ||||||||||||
Financials | 176,658 | 78,390 | – | 255,048 | ||||||||||||
Communication services | 71,494 | 79,754 | – | 151,248 | ||||||||||||
Real estate | 66,801 | 58,799 | – | 125,600 | ||||||||||||
Consumer staples | 57,052 | 62,582 | – | 119,634 | ||||||||||||
Materials | 30,216 | 46,570 | – | 76,786 | ||||||||||||
Utilities | 9,940 | 47,877 | – | 57,817 | ||||||||||||
Energy | 24,332 | 5,728 | 10,485 | 40,545 | ||||||||||||
Preferred securities | 7,081 | – | 53,437 | 60,518 | ||||||||||||
Convertible stocks | – | – | 6,715 | 6,715 | ||||||||||||
Short-term securities | 224,205 | – | – | 224,205 | ||||||||||||
| ||||||||||||||||
Total | $ | 2,591,994 | $ | 1,772,049 | $ | 70,640 | $ | 4,434,683 | ||||||||
|
The following table reconciles the valuation of the fund’s Level 3 investment securities and related transactions for the six months ended June 30, 2020 (dollars in thousands):
Beginning value at 1/1/2020 | Transfers into Level 3* | Purchases | Sales | Net realized loss† | Unrealized depreciation† | Transfers out of Level 3* | Ending value at 6/30/2020 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Investment securities | $ | 44,058 | $ | 913 | $ | 35,620 | $ | (17 | ) | $ | (4,876 | ) | $ | (5,058 | ) | $ | – | $ | 70,640 | |||||||||||||
Net unrealized depreciation during the period on Level 3 investment securities held at June 30, 2020 |
| $ | (5,058 | ) |
*Transfers into or out of Level 3 are based on the beginning market value of the quarter in which they occurred.
†Net realized loss and unrealized depreciation are included in the related amounts on investments in the statement of operations.
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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 6/30/2020 | Valuation techniques | Unobservable inputs | Range (if appropriate) | Weighted average | Impact to valuation from an increase in input* | |||||||||
Liquidation value | N/A | N/A | N/A | N/A | ||||||||||
Price/cash flow multiple | 7.8x | 7.8x | Increase | |||||||||||
Common stocks | $ | 10,488 | DLOM | 24% | 24% | Decrease | ||||||||
Market comparables | $ per one billion Btu | $2.25 | $2.25 | Increase | ||||||||||
MMTPA | 10 MMTPA | 10 MMTPA | Increase | |||||||||||
Preferred securities | 53,437 | Transaction price | N/A | N/A | N/A | N/A | ||||||||
Inputs to market comparables and transaction price | Weight ascribed to transaction price | 50% | N/A | N/A | ||||||||||
Weight ascribed to market comparables | 50% | N/A | N/A | |||||||||||
Convertible stocks | 6,715 | Market comparables discount | 20% | 20% | Decrease | |||||||||
Market comparables | Enterprise value/sales multiple | 11.6x | 11.6x | Increase | ||||||||||
Transaction point multiple discount | 2% | 2% | Decrease | |||||||||||
$ | 70,640 | |||||||||||||
|
|
*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 abbreviations
Btu = British thermal unit
DLOM = Discount for lack of marketability
MMTPA = Million metric tonnes per annum
Growth Fund
Investment securities | ||||||||||||||||
|
|
| ||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
| |||||||||||||
|
| |||||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 6,511,810 | $ | 822,391 | $ | – | $ | 7,334,201 | ||||||||
Communication services | 5,872,265 | 24,348 | – | 5,896,613 | ||||||||||||
Consumer discretionary | 5,200,060 | 193,384 | – | 5,393,444 | ||||||||||||
Health care | 4,687,932 | 29,881 | 46,931 | 4,764,744 | ||||||||||||
Financials | 1,416,856 | 121,218 | – | 1,538,074 | ||||||||||||
Industrials | 1,193,617 | 327,064 | – | 1,520,681 | ||||||||||||
Materials | 833,367 | 58,183 | – | 891,550 | ||||||||||||
Consumer staples | 459,700 | 229,331 | – | 689,031 | ||||||||||||
Real estate | 432,288 | – | – | 432,288 | ||||||||||||
Energy | 359,863 | – | – | 359,863 | ||||||||||||
Utilities | 119,172 | – | – | 119,172 | ||||||||||||
Preferred securities | – | 25,573 | – | 25,573 | ||||||||||||
Rights & warrants | 607 | – | – | 607 | ||||||||||||
Convertible bonds & notes | – | – | 39,060 | 39,060 | ||||||||||||
Short-term securities | 1,205,195 | – | – | 1,205,195 | ||||||||||||
|
| |||||||||||||||
Total | $ | 28,292,732 | $ | 1,831,373 | $ | 85,991 | $ | 30,210,096 | ||||||||
|
|
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International Fund
Investment securities | ||||||||||||||||
|
|
| ||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
| |||||||||||||
|
| |||||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Consumer discretionary | $ | 307,245 | $ | 1,131,651 | $– | $ | 1,438,896 | |||||||||
Financials | 67,130 | 1,366,075 | – | 1,433,205 | ||||||||||||
Health care | 161,190 | 1,261,842 | 6 | 1,423,038 | ||||||||||||
Industrials | 30,210 | 913,816 | – | 944,026 | ||||||||||||
Communication services | 54,694 | 503,497 | – | 558,191 | ||||||||||||
Consumer staples | 15,660 | 472,775 | – | 488,435 | ||||||||||||
Energy | 67,608 | 307,448 | – | 375,056 | ||||||||||||
Information technology | 56,751 | 316,995 | – | 373,746 | ||||||||||||
Utilities | – | 344,595 | – | 344,595 | ||||||||||||
Materials | 147,539 | 191,287 | – | 338,826 | ||||||||||||
Real estate | – | 147,365 | – | 147,365 | ||||||||||||
Preferred securities | 34,408 | 55,587 | – | 89,995 | ||||||||||||
Rights & warrants | – | 24,374 | – | 24,374 | ||||||||||||
Convertible bonds & notes | – | 2,624 | – | 2,624 | ||||||||||||
Bonds, notes & other debt instruments | – | 41,200 | – | 41,200 | ||||||||||||
Short-term securities | 886,255 | – | – | 886,255 | ||||||||||||
|
| |||||||||||||||
Total | $ | 1,828,690 | $ | 7,081,131 | $6 | $ | 8,909,827 | |||||||||
|
|
New World Fund
Investment securities | ||||||||||||||||
|
|
| ||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
| |||||||||||||
|
| |||||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 419,393 | $ | 204,252 | $– | $ | 623,645 | |||||||||
Consumer discretionary | 118,253 | 354,352 | – | 472,605 | ||||||||||||
Health care | 194,913 | 239,219 | 1 | 434,133 | ||||||||||||
Financials | 88,601 | 309,970 | – | 398,571 | ||||||||||||
Communication services | 225,302 | 116,104 | – | 341,406 | ||||||||||||
Consumer staples | 34,107 | 181,765 | – | 215,872 | ||||||||||||
Materials | 76,585 | 115,978 | – | 192,563 | ||||||||||||
Industrials | 45,539 | 140,144 | – | 185,683 | ||||||||||||
Energy | 42,194 | 90,442 | – | 132,636 | ||||||||||||
Utilities | 10,719 | 56,172 | – | 66,891 | ||||||||||||
Real estate | 15,884 | 45,772 | – | 61,656 | ||||||||||||
Preferred securities | 20,703 | 14,844 | – | 35,547 | ||||||||||||
Rights & warrants | – | 7,781 | – | 7,781 | ||||||||||||
Convertible bonds & notes | – | 133 | – | 133 | ||||||||||||
Bonds, notes & other debt instruments | – | 116,248 | – | 116,248 | ||||||||||||
Short-term securities | 161,254 | – | – | 161,254 | ||||||||||||
|
| |||||||||||||||
Total | $ | 1,453,447 | $ | 1,993,176 | $1 | $ | 3,446,624 | |||||||||
|
| |||||||||||||||
Other investments* | ||||||||||||||||
|
|
| ||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
| |||||||||||||
|
| |||||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $73 | $ – | $– | $73 | ||||||||||||
Unrealized appreciation on open forward currency contracts | – | 10 | – | 10 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | – | (4 | ) | – | (4 | ) | ||||||||||
|
| |||||||||||||||
Total | $73 | $ 6 | $– | $79 | ||||||||||||
|
|
*Futures contracts and forward currency contracts are not included in the investment portfolio.
Blue Chip Income and Growth Fund
At June 30, 2020, all of the fund’s investment securities were classified as Level 1.
126 | American Funds Insurance Series |
Table of Contents
Global Growth and Income Fund
Investment securities | ||||||||||||||||
|
|
| ||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
| |||||||||||||
|
| |||||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 207,857 | $ | 131,533 | $– | $ | 339,390 | |||||||||
Financials | 113,922 | 158,377 | – | 272,299 | ||||||||||||
Health care | 163,530 | 72,117 | – | 235,647 | ||||||||||||
Consumer discretionary | 78,955 | 95,199 | – | 174,154 | ||||||||||||
Industrials | 85,232 | 83,835 | – | 169,067 | ||||||||||||
Communication services | 112,102 | 25,435 | – | 137,537 | ||||||||||||
Utilities | 23,936 | 112,019 | – | 135,955 | ||||||||||||
Energy | 33,030 | 67,663 | – | 100,693 | ||||||||||||
Consumer staples | 14,691 | 62,699 | – | 77,390 | ||||||||||||
Materials | 28,030 | 36,266 | – | 64,296 | ||||||||||||
Real estate | 41,065 | 14,801 | – | 55,866 | ||||||||||||
Bonds, notes & other debt instruments | – | 34,634 | – | 34,634 | ||||||||||||
Short-term securities | 123,235 | – | – | 123,235 | ||||||||||||
|
| |||||||||||||||
Total | $ | 1,025,585 | $ | 894,578 | $– | $ | 1,920,163 | |||||||||
|
| |||||||||||||||
Other investments* | ||||||||||||||||
|
|
| ||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
| |||||||||||||
|
| |||||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | $– | $(27 | ) | $– | $(27 | ) | ||||||||||
|
|
*Forward currency contracts are not included in the investment portfolio.
Growth-Income Fund
Investment securities | ||||||||||||||||
|
|
| ||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
| |||||||||||||
|
| |||||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 5,780,358 | $ | 275,384 | $– | $ | 6,055,742 | |||||||||
Health care | 4,920,099 | 775,119 | – | 5,695,218 | ||||||||||||
Communication services | 4,790,029 | 146,412 | – | 4,936,441 | ||||||||||||
Industrials | 2,836,211 | 268,279 | – | 3,104,490 | ||||||||||||
Financials | 2,735,821 | 213,373 | – | 2,949,194 | ||||||||||||
Consumer discretionary | 2,181,687 | 18,743 | – | 2,200,430 | ||||||||||||
Consumer staples | 1,240,176 | 792,194 | – | 2,032,370 | ||||||||||||
Materials | 1,325,013 | 76,868 | – | 1,401,881 | ||||||||||||
Energy | 1,248,892 | 19,986 | – | 1,268,878 | ||||||||||||
Utilities | 818,534 | 157,999 | – | 976,533 | ||||||||||||
Real estate | 924,011 | – | – | 924,011 | ||||||||||||
Convertible stocks | 311,982 | – | – | 311,982 | ||||||||||||
Bonds, notes & other debt instruments | – | 39,975 | – | 39,975 | ||||||||||||
Short-term securities | 2,085,046 | – | – | 2,085,046 | ||||||||||||
|
| |||||||||||||||
Total | $ | 31,197,859 | $ | 2,784,332 | $– | $ | 33,982,191 | |||||||||
|
|
American Funds Insurance Series | 127 |
Table of Contents
International Growth and Income Fund
Investment securities | ||||||||||||||||
|
|
| ||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
| |||||||||||||
|
| |||||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Financials | $ | 17,539 | $ | 219,971 | $– | $ | 237,510 | |||||||||
Industrials | 9,022 | 182,116 | – | 191,138 | ||||||||||||
Health care | 8,162 | 155,170 | 4 | 163,336 | ||||||||||||
Consumer discretionary | – | 144,942 | – | 144,942 | ||||||||||||
Utilities | – | 119,116 | – | 119,116 | ||||||||||||
Communication services | 23,509 | 62,963 | – | 86,472 | ||||||||||||
Information technology | – | 52,437 | – | 52,437 | ||||||||||||
Consumer staples | – | 50,640 | – | 50,640 | ||||||||||||
Materials | 4,374 | 45,498 | – | 49,872 | ||||||||||||
Real estate | – | 36,374 | – | 36,374 | ||||||||||||
Energy | 10,704 | 11,500 | – | 22,204 | ||||||||||||
Preferred securities | 6,478 | – | – | 6,478 | ||||||||||||
Rights & warrants | – | 8,024 | – | 8,024 | ||||||||||||
Bonds, notes & other debt instruments | – | 8,561 | – | 8,561 | ||||||||||||
Short-term securities | 121,340 | – | – | 121,340 | ||||||||||||
|
| |||||||||||||||
Total | $ | 201,128 | $ | 1,097,312 | $4 | $ | 1,298,444 | |||||||||
|
|
Capital Income Builder
Investment securities | ||||||||||||||||
|
|
| ||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
| |||||||||||||
|
| |||||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Health care | $ | 72,348 | $ | 38,351 | $– | $ | 110,699 | |||||||||
Consumer staples | 47,839 | 46,955 | – | 94,794 | ||||||||||||
Utilities | 33,782 | 52,906 | – | 86,688 | ||||||||||||
Financials | 44,159 | 42,373 | – | 86,532 | ||||||||||||
Information technology | 65,463 | 12,240 | – | 77,703 | ||||||||||||
Real estate | 40,897 | 18,227 | – | 59,124 | ||||||||||||
Energy | 35,849 | 6,411 | – | 42,260 | ||||||||||||
Communication services | 22,882 | 18,034 | – | 40,916 | ||||||||||||
Industrials | 19,481 | 16,466 | – | 35,947 | ||||||||||||
Materials | 13,100 | 14,892 | – | 27,992 | ||||||||||||
Consumer discretionary | 4,561 | 5,725 | – | 10,286 | ||||||||||||
Preferred securities | – | 808 | – | 808 | ||||||||||||
Rights & warrants | – | – | – | – | ||||||||||||
Convertible stocks | 13,095 | – | – | 13,095 | ||||||||||||
Convertible bonds & notes | – | 544 | – | 544 | ||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
U.S. Treasury bonds & notes | – | 86,162 | – | 86,162 | ||||||||||||
Mortgage-backed obligations | – | 69,412 | – | 69,412 | ||||||||||||
Corporate bonds & notes | – | 67,077 | – | 67,077 | ||||||||||||
Other bonds & notes | – | 11,366 | – | 11,366 | ||||||||||||
Short-term securities | 53,466 | – | – | 53,466 | ||||||||||||
|
| |||||||||||||||
Total | $ | 466,922 | $ | 507,949 | $– | $ | 974,871 | |||||||||
|
|
128 | American Funds Insurance Series |
Table of Contents
Other investments* | ||||||||||||||||
|
|
| ||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
| |||||||||||||
|
| |||||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $163 | $ | – | $– | $ | 163 | ||||||||||
Unrealized appreciation on interest rate swaps | – | 81 | – | 81 | ||||||||||||
Unrealized appreciation on credit default swaps | – | 227 | – | 227 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (70 | ) | – | – | (70 | ) | ||||||||||
Unrealized depreciation on open forward currency contracts | – | (4 | ) | – | (4 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | – | (29 | ) | – | (29 | ) | ||||||||||
|
| |||||||||||||||
Total | $ | 93 | $275 | $– | $ | 368 | ||||||||||
|
|
*Futures contracts, forward currency contracts, interest rate swaps and credit default swaps are not included in the investment portfolio.
Asset Allocation Fund
Investment securities | ||||||||||||||||
|
|
| ||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
| |||||||||||||
|
| |||||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 3,808,430 | $ | 25,661 | $ | – | $ | 3,834,091 | ||||||||
Health care | 2,916,023 | 105,456 | 8,839 | 3,030,318 | ||||||||||||
Financials | 2,277,466 | 160,163 | – | 2,437,629 | ||||||||||||
Consumer discretionary | 1,308,114 | 80,984 | – | 1,389,098 | ||||||||||||
Consumer staples | 857,812 | 416,065 | – | 1,273,877 | ||||||||||||
Industrials | 1,062,976 | 34,868 | – | 1,097,844 | ||||||||||||
Communication services | 981,722 | – | – | 981,722 | ||||||||||||
Materials | 685,380 | 70,337 | – | 755,717 | ||||||||||||
Utilities | 182,767 | 206,764 | – | 389,531 | ||||||||||||
Energy | 317,713 | 18,712 | 706 | 337,131 | ||||||||||||
Real estate | 211,176 | – | – | 211,176 | ||||||||||||
Rights & warrants | – | – | 133 | 133 | ||||||||||||
Convertible stocks | 127,927 | 38,630 | 566 | 167,123 | ||||||||||||
Convertible bonds & notes | – | 71 | – | 71 | ||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
Corporate bonds & notes | – | 3,505,729 | 6,821 | 3,512,550 | ||||||||||||
U.S. Treasury bonds & notes | – | 2,725,104 | – | 2,725,104 | ||||||||||||
Mortgage-backed obligations | – | 2,256,578 | – | 2,256,578 | ||||||||||||
Federal agency bonds & notes | – | 14,005 | – | 14,005 | ||||||||||||
Other | – | 217,692 | – | 217,692 | ||||||||||||
Short-term securities | 3,038,491 | – | – | 3,038,491 | ||||||||||||
|
| |||||||||||||||
Total | $ | 17,775,997 | $ | 9,876,819 | $ | 17,065 | $ | 27,669,881 | ||||||||
|
| |||||||||||||||
Other investments* | ||||||||||||||||
|
|
| ||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
| |||||||||||||
|
| |||||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 1,474 | $ – | $– | $ | 1,474 | ||||||||||
Unrealized appreciation on credit default swaps | – | – | † | – | – | † | ||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (726 | ) | – | – | (726 | ) | ||||||||||
|
| |||||||||||||||
Total | $ | 748 | $ – | $– | $ | 748 | ||||||||||
|
|
*Futures contracts and credit default swaps are not included in the investment portfolio.
†Amount less than one thousand.
American Funds Insurance Series | 129 |
Table of Contents
Global Balanced Fund
Investment securities | ||||||||||||||||
|
|
| ||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
| |||||||||||||
|
| |||||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 27,242 | $ | 28,347 | $– | $ | 55,589 | |||||||||
Health care | 23,356 | 22,655 | – | 46,011 | ||||||||||||
Consumer staples | 20,814 | 13,510 | – | 34,324 | ||||||||||||
Financials | 17,960 | 12,413 | – | 30,373 | ||||||||||||
Industrials | 9,838 | 14,221 | – | 24,059 | ||||||||||||
Consumer discretionary | 9,934 | 8,236 | – | 18,170 | ||||||||||||
Real estate | 11,269 | 718 | – | 11,987 | ||||||||||||
Materials | 1,406 | 9,235 | – | 10,641 | ||||||||||||
Communication services | 5,782 | 3,491 | – | 9,273 | ||||||||||||
Other | 2,159 | 759 | – | 2,918 | ||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
U.S. Treasury bonds & notes | – | 58,689 | – | 58,689 | ||||||||||||
Bonds & notes of governments & government agencies outside the U.S. | – | 58,450 | – | 58,450 | ||||||||||||
Corporate bonds & notes | – | 25,043 | – | 25,043 | ||||||||||||
Mortgage-backed obligations | – | 6,785 | – | 6,785 | ||||||||||||
Other bonds & notes | – | 287 | – | 287 | ||||||||||||
Short-term securities | 23,412 | – | – | 23,412 | ||||||||||||
|
| |||||||||||||||
Total | $ | 153,172 | $ | 262,839 | $– | $ | 416,011 | |||||||||
|
| |||||||||||||||
Other investments* | ||||||||||||||||
|
|
| ||||||||||||||
Level 1
|
Level 2
|
Level 3
| Total
| |||||||||||||
|
| |||||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ 6 | $ | – | $– | $ | 6 | ||||||||||
Unrealized appreciation on open forward currency contracts | – | 108 | – | 108 | ||||||||||||
Unrealized appreciation on interest rate swaps | – | 41 | – | 41 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (5 | ) | – | – | (5 | ) | ||||||||||
Unrealized depreciation on open forward currency contracts | – | (165 | ) | – | (165 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | – | (139 | ) | – | (139 | ) | ||||||||||
|
| |||||||||||||||
Total | $ 1 | $(155 | ) | $– | $(154 | ) | ||||||||||
|
|
*Futures contracts, forward currency contracts and interest rate swaps are not included in the investment portfolio.
Bond Fund
Investment securities | ||||||||||||||||
|
| |||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
| |||||||||||||
|
| |||||||||||||||
Assets: | ||||||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
Corporate bonds & notes | $ | – | $ | 3,966,400 | $ – | $ | 3,966,400 | |||||||||
Mortgage-backed obligations | – | 2,955,043 | – | 2,955,043 | ||||||||||||
U.S. Treasury bonds & notes | – | 2,381,814 | – | 2,381,814 | ||||||||||||
Bonds & notes of governments & government agencies outside the U.S. | – | 344,488 | – | 344,488 | ||||||||||||
Asset-backed obligations | – | 234,532 | – | 234,532 | ||||||||||||
Municipals | – | 233,190 | – | 233,190 | ||||||||||||
Federal agency bonds & notes | – | 12,984 | – | 12,984 | ||||||||||||
Common stocks | – | – | 55 | 55 | ||||||||||||
Rights & warrants | – | – | * | – | * | – | * | |||||||||
Short-term securities | 1,560,968 | – | – | 1,560,968 | ||||||||||||
|
| |||||||||||||||
Total | $ | 1,560,968 | $ | 10,128,451 | $55 | $ | 11,689,474 | |||||||||
|
|
130 | American Funds Insurance Series |
Table of Contents
Other investments† | ||||||||||||||||
|
|
| ||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
| |||||||||||||
|
| |||||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 8,061 | $ | – | $– | $ | 8,061 | |||||||||
Unrealized appreciation on open forward currency contracts | – | 2,979 | – | 2,979 | ||||||||||||
Unrealized appreciation on interest rate swaps | – | 1,663 | – | 1,663 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (6,831 | ) | – | – | (6,831 | ) | ||||||||||
Unrealized depreciation on open forward currency contracts | – | (1,252 | ) | – | (1,252 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | – | (32,402 | ) | – | (32,402 | ) | ||||||||||
Total | $ | 1,230 | $ | (29,012 | ) | $– | $ | (27,782 | ) | |||||||
|
|
*Amount less than one thousand.
†Futures contracts, forward currency contracts and interest rate swaps are not included in the investment portfolio.
Capital World Bond Fund
Investment securities | ||||||||||||||||
|
|
| ||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
| |||||||||||||
|
| |||||||||||||||
Assets: | ||||||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
Euros | $ | – | $ | 385,464 | $ – | $ | 385,464 | |||||||||
Japanese yen | – | 194,992 | – | 194,992 | ||||||||||||
Chinese yuan renminbi | – | 97,306 | – | 97,306 | ||||||||||||
British pounds | – | 63,277 | – | 63,277 | ||||||||||||
Canadian dollars | – | 39,508 | – | 39,508 | ||||||||||||
Danish kroner | – | 39,235 | – | 39,235 | ||||||||||||
Mexican pesos | – | 31,632 | – | 31,632 | ||||||||||||
Malaysian ringgits | – | 30,925 | – | 30,925 | ||||||||||||
Israeli shekels | – | 24,079 | – | 24,079 | ||||||||||||
Russian rubles | – | 23,744 | – | 23,744 | ||||||||||||
South Korean won | – | 19,100 | – | 19,100 | ||||||||||||
Brazilian reais | – | 16,861 | – | 16,861 | ||||||||||||
Romanian leu | – | 1,217 | – | 1,217 | ||||||||||||
U.S. dollars | – | 983,983 | 43 | 984,026 | ||||||||||||
Other | – | 55,091 | – | 55,091 | ||||||||||||
Convertible bonds & notes | – | 6 | – | 6 | ||||||||||||
Convertible stocks | – | – | 96 | 96 | ||||||||||||
Common stocks | 105 | – | 114 | 219 | ||||||||||||
Rights & warrants | – | – | 14 | 14 | ||||||||||||
Short-term securities | 130,577 | – | – | 130,577 | ||||||||||||
|
| |||||||||||||||
Total | $ | 130,682 | $ | 2,006,420 | $267 | $ | 2,137,369 | |||||||||
|
| |||||||||||||||
Other investments* | ||||||||||||||||
|
|
| ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
| |||||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ 560 | $ – | $– | $ 560 | ||||||||||||
Unrealized appreciation on open forward currency contracts | – | 742 | – | 742 | ||||||||||||
Unrealized appreciation on interest rate swaps | – | 555 | – | 555 | ||||||||||||
Unrealized appreciation on credit default swaps | – | 519 | – | 519 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (436 | ) | – | – | (436 | ) | ||||||||||
Unrealized depreciation on open forward currency contracts | – | (1,979 | ) | – | (1,979 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | – | (502 | ) | – | (502 | ) | ||||||||||
|
| |||||||||||||||
Total | $ 124 | $ (665 | ) | $– | $ (541 | ) | ||||||||||
|
|
*Futures contracts, forward currency contracts, interest rate swaps and credit default swaps are not included in the investment portfolio.
American Funds Insurance Series | 131 |
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 | $ | – | $ | 715,908 | $ | 7,712 | $ | 723,620 | ||||||||
Bonds & notes of governments & government agencies outside the U.S. | – | 194 | – | 194 | ||||||||||||
Municipals | – | 5 | – | 5 | ||||||||||||
Convertible bonds & notes | – | 4,927 | – | 4,927 | ||||||||||||
Convertible stocks | 2,923 | 420 | 549 | 3,892 | ||||||||||||
Preferred securities | – | 1,789 | – | 1,789 | ||||||||||||
Common stocks | 2,872 | – | 11,922 | 14,794 | ||||||||||||
Rights & warrants | – | 3 | 144 | 147 | ||||||||||||
Short-term securities | 37,969 | – | – | 37,969 | ||||||||||||
|
| |||||||||||||||
Total | $ | 43,764 | $ | 723,246 | $ | 20,327 | $ | 787,337 | ||||||||
|
| |||||||||||||||
Other investments1 | ||||||||||||||||
|
|
| ||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
| |||||||||||||
|
| |||||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on credit default swaps | $– | $319 | $– | $319 | ||||||||||||
|
|
1Credit 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 six months ended June 30, 2020 (dollars in thousands):
Beginning value at 1/1/2020 | Transfers into Level 32 | Purchases | Sales | Net realized loss3 | Unrealized depreciation3 | Transfers out of Level 32 | Ending value at 6/30/2020 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Investment securities | $19,675 | $2,956 | $1,962 | $ | (567) | $ | (207) | $ | (121) | $ | (3,371) | $20,327 | ||||||||||||||||||||
Net unrealized appreciation during the period on Level 3 investment securities held at June 30, 2020 |
| $ 34 |
2Transfers into or out of Level 3 are based on the beginning market value of the quarter in which they occurred.
3Net realized loss and unrealized depreciation are included in the related amounts on investments in the statement of operations.
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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 6/30/2020 | Valuation techniques | Unobservable inputs | Range (if applicable) | Weighted average | Impact to an increase in | |||||||||
Market Comparables | $ per acre | $2.7K | $2.7K | Increase | ||||||||||
$ per thousand Boe per day | $12.5K | $12.5K | Increase | |||||||||||
Enterprise value/EBITDA multiple | 2.0x - 4.0x | 3.0x | Increase | |||||||||||
Bonds, notes & other | Risk discount | 0.0% | 0.0% | Decrease | ||||||||||
debt instruments | $7,712 | Recent market | N/A | N/A | N/A | N/A | ||||||||
information | ||||||||||||||
Estimated recovery value | N/A | N/A | N/A | N/A | ||||||||||
Yield analysis | Yield to maturity risk premium | 200 bps | 200 bps | Decrease | ||||||||||
Convertible stocks | 549 | Enterprise value multiple | Enterprise value/EBITDA less CapEx multiple | 10.0x | 10.0x | Increase | ||||||||
Estimated recovery value | N/A | N/A | N/A | N/A | ||||||||||
Market comparables | Enterprise value/EBITDA multiple | 7.1x - 7.3x | 7.2x | Increase | ||||||||||
DLOM | 21% | 21% | Decrease | |||||||||||
Common stocks | 11,922 | Risk discount | 0.0% | 0.0% | Decrease | |||||||||
Enterprise value multiple | Enterprise value/EBITDA less CapEx multiple | 10.2x | 10.2x | Increase | ||||||||||
Recent market information | N/A | N/A | N/A | N/A | ||||||||||
Black-Scholes | Implied volatility | 30% | 30% | Increase | ||||||||||
Rights & warrants | 144 | Underlying share price | N/A | N/A | Na | |||||||||
Recent market information | N/A | N/A | N/A | N/A | ||||||||||
$20,327 |
*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 abbreviations
Boe = Barrels of oil equivalent
DLOM = Discount for lack of marketability
EBITDA = Earnings before income taxes, depreciation and amortization
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American Funds Mortgage Fund
Investment securities | ||||||||||||||||
|
|
| ||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
| |||||||||||||
|
| |||||||||||||||
Assets: | ||||||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
Mortgage-backed obligations | $ | – | $ | 263,450 | $ | – | $ | 263,450 | ||||||||
U.S. Treasury bonds & notes | – | 11,667 | – | 11,667 | ||||||||||||
Asset-backed obligations | – | 2,561 | – | 2,561 | ||||||||||||
Short-term securities | – | 135,170 | – | 135,170 | ||||||||||||
|
| |||||||||||||||
Total | $ | – | $ | 412,848 | $ | – | $ | 412,848 | ||||||||
|
| |||||||||||||||
Other investments* | ||||||||||||||||
|
|
| ||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
| |||||||||||||
|
| |||||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 108 | $ | – | $ | – | $ | 108 | ||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (74 | ) | – | – | (74 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | – | (5,967 | ) | – | (5,967 | ) | ||||||||||
|
| |||||||||||||||
Total | $ | 34 | $ | (5,967 | ) | $ | – | $ | (5,933 | ) | ||||||
|
|
*Futures contracts and interest rate swaps are not included in the investment portfolio.
Ultra-Short Bond Fund
At June 30, 2020, all of the fund’s investment securities were classified as Level 2.
U.S. Government/AAA-Rated Securities Fund
Investment securities | ||||||||||||||||
|
|
| ||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
| |||||||||||||
|
| |||||||||||||||
Assets: | ||||||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
Mortgage-backed obligations | $ | – | $ | 1,130,698 | $ | – | $ | 1,130,698 | ||||||||
Federal agency bonds & notes | – | 373,838 | – | 373,838 | ||||||||||||
U.S. Treasury bonds & notes | – | 333,750 | – | 333,750 | ||||||||||||
Short-term securities | – | 837,023 | – | 837,023 | ||||||||||||
|
| |||||||||||||||
Total | $ | – | $ | 2,675,309 | $ | – | $ | 2,675,309 | ||||||||
|
| |||||||||||||||
Other investments* | ||||||||||||||||
|
|
| ||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
| |||||||||||||
|
| |||||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 2,176 | $ | – | $ | – | $ | 2,176 | ||||||||
Unrealized appreciation on interest rate swaps | – | 19,148 | – | 19,148 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (1,957 | ) | – | – | (1,957 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | – | (70,841 | ) | – | (70,841 | ) | ||||||||||
|
| |||||||||||||||
Total | $ | 219 | $ | (51,693 | ) | $ | – | $ | (51,474 | ) | ||||||
|
|
*Futures contracts and interest rate swaps are not included in the investment portfolio.
Managed Risk Growth Fund
At June 30, 2020, all of the fund’s investments were classified as Level 1.
Managed Risk International Fund
At June 30, 2020, all of the fund’s investments were classified as Level 1.
Managed Risk Blue Chip Income and Growth Fund
At June 30, 2020, all of the fund’s investments were classified as Level 1.
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Managed Risk Growth-Income Fund
At June 30, 2020, all of the fund’s investments were classified as Level 1.
Managed Risk Asset Allocation Fund
At June 30, 2020, 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.
Economies and financial markets throughout the world are highly interconnected. Economic, financial or political events, trading and tariff arrangements, wars, terrorism, cybersecurity events, natural disasters, public health emergencies (such as the spread of infectious disease) and other circumstances in one country or region could have impacts on global economies or markets. As a result, whether or not a fund invests in securities of issuers located in or with significant exposure to the countries affected, the value and liquidity of a fund’s investments may be negatively affected by developments in other countries and regions.
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.
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
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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 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.
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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 as to-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.
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.
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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.
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.
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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.
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.
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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 | Values of securities on loan | Cash | U.S. government securities | Value of investment securities purchased | ||||||||||||
Global Growth Fund | $ | 25,635 | $ | 26,917 | $ – | $24,225 | ||||||||||
Global Small Capitalization Fund | 69,706 | 67,795 | 6,705 | 61,016 | ||||||||||||
International Fund | 11,451 | 12,030 | – | * | 10,827 | |||||||||||
New World Fund | 8,556 | 8,979 | – | 8,081 | ||||||||||||
Capital Income Builder | 3,593 | 3,773 | – | 3,396 | ||||||||||||
Asset Allocation Fund | 47,984 | 50,338 | – | 45,305 |
*Amount less than one thousand.
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 State Street Institutional U.S. Government Money Market Fund, a cash management vehicle offered and managed by State Street Bank and Trust Company.
Unfunded commitments – Asset Allocation Fund and High-Income Bond Fund have participated in transactions that involve unfunded commitments, which may obligate each fund to purchase new or additional bonds and/or purchase additional shares of the applicable issuer if certain contingencies are met. As of June 30, 2020, the maximum exposure from these unfunded commitments for Asset Allocation Fund and High-Income Bond Fund was $3,705,000 and $4,038,000, respectively, which would represent 0.01% and 0.51%, respectively, of the net assets of each 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.
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 opposing close-out transactions in advance of the option expiration date.
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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.
On a daily basis, each fund pays or receives variation margin based on the increase or decrease in the value of the futures contracts and records variation margin on futures contracts in each fund’s statement of assets and liabilities. In addition, each fund segregates liquid assets equivalent to the fund’s outstanding obligations under the contract in excess of the initial margin and variation margin, if any. Futures contracts may involve a risk of loss in excess of the variation margin shown on each fund’s statement of assets and liabilities. Each fund records realized gains or losses at the time the futures contract is closed or expires. Net realized gains or losses and net unrealized appreciation or depreciation from futures contracts are recorded in each fund’s statement of operations.
Forward currency contracts – Some of the funds have entered into forward currency contracts, which represent agreements to exchange currencies on specific future dates at predetermined rates. The series’ investment adviser uses forward currency contracts to manage the fund’s exposure to changes in exchange rates. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from possible movements in exchange rates.
On a daily basis, the series’ investment adviser values forward currency contracts based on the applicable exchange rates and records unrealized appreciation or depreciation for open forward currency contracts in each fund’s statement of assets and liabilities. Realized gains or losses are recorded at the time the forward contract is closed or offset by another contract with the same broker for the same settlement date and currency. Closed forward currency contracts that have not reached their settlement date are included in the respective receivables or payables for closed forward currency contracts in each fund’s statement of assets and liabilities. Net realized gains or losses from closed forward currency contracts and net unrealized appreciation or depreciation from open forward currency contracts are recorded in each fund’s statement of operations.
Interest rate swaps – Some of the funds have entered into interest rate swaps, which are agreements to exchange one stream of future interest payments for another based on a specified notional amount. Typically, interest rate swaps exchange a fixed interest rate for a payment that floats relative to a benchmark or vice versa. The series’ investment adviser uses interest rate swaps to manage the interest rate sensitivity of the fund by increasing or decreasing the duration of the fund or a portion of the fund’s portfolio. Risks may arise as a result of the series’ investment adviser incorrectly anticipating changes in interest rates, increased volatility, reduced liquidity and the potential inability of counterparties to meet the terms of their agreements.
Upon entering into an interest rate swap contract, the fund is required to deposit cash, U.S. government securities or other liquid securities, which is known as initial margin. Generally, the initial margin required for a particular interest rate swap is set and held as collateral by the clearinghouse on which the contract is cleared. The amount of initial margin required may be significantly modified from time to time by the clearinghouse during the term of the contract.
On a daily basis, the series’ investment adviser records daily interest accruals related to the exchange of future payments as a receivable and payable in each fund’s statement of assets and liabilities. Each fund also pays or receives a variation margin based on the increase or decrease in the value of the interest rate swaps, including accrued interest, and records variation margin on interest rate swaps in each fund’s statement of assets and liabilities. Each fund records realized gains and losses on both the net accrued interest and any gain or loss recognized at the time the interest rate swap is closed or expires. Net realized gains or losses, as well as any net unrealized appreciation or depreciation, from interest rate swaps are recorded in each fund’s statement of operations.
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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 average month-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 contracts purchased | Futures contracts | Forward currency contracts | Interest rate swaps | Credit default swaps | ||||||||||||||||
International Fund | Not applicable | Not applicable | $ 66,613 | * | Not applicable | Not applicable | ||||||||||||||
New World Fund | Not applicable | $ 1,500 | 8,630 | Not applicable | Not applicable | |||||||||||||||
Global Growth and Income Fund | Not applicable | Not applicable | 7,019 | Not applicable | Not applicable | |||||||||||||||
International Growth and Income Fund | Not applicable | Not applicable | 1,782 | * | Not applicable | Not applicable | ||||||||||||||
Capital Income Builder | Not applicable | 89,483 | 744 | $ 180,215 | $ 3,498 | |||||||||||||||
Asset Allocation Fund | Not applicable | 1,944,475 | Not applicable | 354,805 | * | 101,240 | ||||||||||||||
Global Balanced Fund | Not applicable | 7,592 | 26,310 | 8,915 | Not applicable | |||||||||||||||
Bond Fund | Not applicable | 4,105,464 | 603,989 | 900,759 | 178,200* | |||||||||||||||
Capital World Bond Fund | Not applicable | 267,583 | 746,695 | 179,345 | 123,637 | |||||||||||||||
High-Income Bond Fund | Not applicable | 65,117 | * | Not applicable | Not applicable | 52,956 | ||||||||||||||
American Funds Mortgage Fund | Not applicable | 138,142 | Not applicable | 567,228 | Not applicable | |||||||||||||||
U.S. Government/AAA-Rated Securities Fund | Not applicable | 2,252,820 | Not applicable | 8,224,363 | Not applicable | |||||||||||||||
Managed Risk Growth Fund | Not applicable | 116,162 | Not applicable | Not applicable | Not applicable | |||||||||||||||
Managed Risk International Fund | Not applicable | 532,070 | Not applicable | Not applicable | Not applicable | |||||||||||||||
Managed Risk Blue Chip Income and Growth Fund | Not applicable | 75,332 | Not applicable | Not applicable | Not applicable | |||||||||||||||
Managed Risk Growth-Income Fund | $25,963 | 564,546 | Not applicable | Not applicable | Not applicable | |||||||||||||||
Managed Risk Asset Allocation Fund | Not applicable | 557,511 | Not applicable | Not applicable | Not applicable |
*No contracts were held at the end of the reporting period; amount represents the average month-end notional amount of contracts while they were held.
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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 six months ended June 30, 2020 (dollars in thousands):
International Fund
Net realized gain | Net unrealized appreciation | |||||||||||||
|
| |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
| ||||||||||||||
Forward currency | Currency | Net realized gain on forward currency contracts | $182 | Net unrealized appreciation on forward currency contracts | $131 | |||||||||
New World 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 | $73 | Unrealized depreciation1 | $– | |||||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | 10 | Unrealized depreciation on open forward currency contracts | 4 | |||||||||
|
|
|
| |||||||||||
$83 | $4 | |||||||||||||
|
|
|
| |||||||||||
Net realized loss | Net unrealized appreciation | |||||||||||||
|
| |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
| ||||||||||||||
Futures | Interest | Net realized gain on futures contracts | $ – | Net unrealized appreciation on futures contracts | $73 | |||||||||
Forward currency | Currency | Net realized loss on forward currency contracts | (23 | ) | Net unrealized appreciation on forward currency contracts | 6 | ||||||||
|
|
|
| |||||||||||
$(23 | ) | $79 | ||||||||||||
|
|
|
| |||||||||||
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 | $27 | |||||||||
Net realized gain | Net unrealized appreciation | |||||||||||||
|
| |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
| ||||||||||||||
Forward currency | Currency | Net realized gain on forward currency contracts | $25 | Net unrealized appreciation on forward currency contracts | $110 |
See end of tables for footnotes.
American Funds Insurance Series | 143 |
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International Growth and Income Fund
Net realized gain | Net unrealized appreciation | |||||||||||||||||||
|
| |||||||||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||||||||
| ||||||||||||||||||||
Forward currency | Currency | Net realized gain on forward currency contracts | $18 | Net unrealized appreciation on forward currency contracts | $12 | |||||||||||||||
Capital Income Builder | ||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||
|
| |||||||||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||||||||
| ||||||||||||||||||||
Futures | Interest | Unrealized appreciation1 | $163 | Unrealized depreciation1 | $ 70 | |||||||||||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | – | Unrealized depreciation on open forward currency contracts | 4 | |||||||||||||||
Swap | Interest | Unrealized appreciation1 | 81 | Unrealized depreciation1 | 29 | |||||||||||||||
Swap | Credit | Unrealized appreciation1 | 227 | Unrealized depreciation1 | – | |||||||||||||||
|
|
|
| |||||||||||||||||
$471 | $103 | |||||||||||||||||||
|
|
|
| |||||||||||||||||
Net realized gain | Net unrealized appreciation (depreciation) | |||||||||||||||||||
|
| |||||||||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||||||||
| ||||||||||||||||||||
Futures | Interest | Net realized gain on futures contracts | $3,729 | Net unrealized appreciation on futures contracts | $ 424 | |||||||||||||||
Forward currency | Currency | Net realized gain on forward currency contracts | 24 | Net unrealized depreciation on forward currency contracts | (4 | ) | ||||||||||||||
Swap | Interest | Net realized gain on swap contracts | 2,303 | Net unrealized depreciation on swap contracts | (777 | ) | ||||||||||||||
Swap | Credit | Net realized gain on swap contracts | 20 | Net unrealized appreciation on swap contracts | 227 | |||||||||||||||
|
|
|
| |||||||||||||||||
$6,076 | $(130 | ) | ||||||||||||||||||
|
|
|
| |||||||||||||||||
Asset Allocation 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 | $1,474 | Unrealized depreciation1 | $726 | |||||||||||||||
Swap | Credit | Unrealized appreciation1 | – | 2 | Unrealized depreciation1 | – | ||||||||||||||
|
|
|
| |||||||||||||||||
$1,474 | $726 | |||||||||||||||||||
|
|
|
| |||||||||||||||||
Net realized gain (loss) | Net unrealized appreciation | |||||||||||||||||||
|
| |||||||||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||||||||
| ||||||||||||||||||||
Futures | Interest | Net realized gain on futures contracts | $36,972 | Net unrealized appreciation on futures contracts | $3,710 | |||||||||||||||
Swap | Interest | Net realized loss on swap contracts | (13,562 | ) | Net unrealized appreciation on swap contracts | 3,812 | ||||||||||||||
Swap | Credit | Net realized gain on swap contracts | 2,724 | Net unrealized appreciation on swap contracts | – | 2 | ||||||||||||||
|
|
|
| |||||||||||||||||
$26,134 | $7,522 | |||||||||||||||||||
|
|
|
|
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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 | $ 6 | Unrealized depreciation1 | $ 5 | |||||||||||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | 108 | Unrealized depreciation on open forward currency contracts | 165 | |||||||||||||||
Forward currency | Currency | Receivables for closed forward currency contracts | 47 | Payables for closed forward currency contracts | – | |||||||||||||||
Swap | Interest | Unrealized appreciation1 | 41 | Unrealized depreciation1 | 139 | |||||||||||||||
|
|
|
| |||||||||||||||||
| $202 | $309 | ||||||||||||||||||
|
|
|
| |||||||||||||||||
Net realized gain (loss) | Net unrealized appreciation (depreciation) | |||||||||||||||||||
|
| |||||||||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||||||||
| ||||||||||||||||||||
Futures | Interest | Net realized gain on futures contracts | $449 | Net unrealized appreciation on futures contracts | $ 17 | |||||||||||||||
Forward currency | Currency | Net realized gain on forward currency contracts | 398 | Net unrealized appreciation on forward currency contracts | 42 | |||||||||||||||
Swap | Interest | Net realized loss on swap contracts | (24 | ) | Net unrealized depreciation on swap contracts | (96 | ) | |||||||||||||
|
|
|
| |||||||||||||||||
$823 | $(37 | ) | ||||||||||||||||||
|
|
|
| |||||||||||||||||
Bond 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 | $ 8,061 | Unrealized depreciation1 | $ 6,831 | |||||||||||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | 2,979 | Unrealized depreciation on open forward currency contracts | 1,252 | |||||||||||||||
Swap | Interest | Unrealized appreciation1 | 1,663 | Unrealized depreciation1 | 32,402 | |||||||||||||||
|
|
|
| |||||||||||||||||
$12,703 | $40,485 | |||||||||||||||||||
|
|
|
| |||||||||||||||||
Net realized gain (loss) | Net unrealized appreciation (depreciation) | |||||||||||||||||||
|
| |||||||||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||||||||
| ||||||||||||||||||||
Futures | Interest | Net realized gain on futures contracts | $85,319 | Net unrealized appreciation on futures contracts | $ 5,309 | |||||||||||||||
Forward currency | Currency | Net realized loss on forward currency contracts | (6,097 | ) | Net unrealized appreciation on forward currency contracts | 2,917 | ||||||||||||||
Swap | Interest | Net realized loss on swap contracts | (18,656 | ) | Net unrealized depreciation on swap contracts | (24,633 | ) | |||||||||||||
Swap | Credit | Net realized gain on swap contracts | 25,217 | Net unrealized appreciation on swap contracts | – | |||||||||||||||
|
|
|
| |||||||||||||||||
$85,783 | $(16,407 | ) | ||||||||||||||||||
|
|
|
|
See end of tables for footnotes.
American Funds Insurance Series | 145 |
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Capital World Bond 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 | $ 560 | Unrealized depreciation1 | $ 436 | |||||||||||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | 742 | Unrealized depreciation on open forward currency contracts | 1,979 | |||||||||||||||
Forward currency | Currency | Receivables for closed forward currency contracts | 5,787 | Payables for closed forward currency contracts | 1,089 | |||||||||||||||
Swap | Interest | Unrealized appreciation1 | 555 | Unrealized depreciation1 | 502 | |||||||||||||||
Swap | Credit | Unrealized appreciation1 | 519 | Unrealized depreciation1 | — | |||||||||||||||
|
|
|
| |||||||||||||||||
$8,163 | $4,006 | |||||||||||||||||||
|
|
|
| |||||||||||||||||
Net realized (loss) gain | Net unrealized appreciation (depreciation) | |||||||||||||||||||
|
| |||||||||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||||||||
| ||||||||||||||||||||
Futures | Interest | Net realized loss on futures contracts | $(1,040 | ) | Net unrealized appreciation on futures contracts | $ 929 | ||||||||||||||
Forward currency | Currency | Net realized gain on forward currency contracts | 8,589 | Net unrealized appreciation on forward currency contracts | 973 | |||||||||||||||
Swap | Interest | Net realized loss on swap contracts | (2,885 | ) | Net unrealized appreciation on swap contracts | 592 | ||||||||||||||
Swap | Credit | Net realized loss on swap contracts | (835 | ) | Net unrealized depreciation on swap contracts | (212 | ) | |||||||||||||
|
|
|
| |||||||||||||||||
$ 3,829 | $2,282 | |||||||||||||||||||
|
|
|
| |||||||||||||||||
High-Income Bond Fund |
| |||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||
|
| |||||||||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||||||||
| ||||||||||||||||||||
Swap | Credit | Unrealized appreciation1 | $319 | Unrealized depreciation1 | $– | |||||||||||||||
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 | $ (144 | ) | Net unrealized depreciation on futures contracts | $ (159 | ) | |||||||||||||
Swap | Interest | Net realized gain on swap contracts | 1 | Net unrealized appreciation on swap contracts | – | |||||||||||||||
Swap | Credit | Net realized gain on swap contracts | 4,676 | Net unrealized appreciation on swap contracts | 1,897 | |||||||||||||||
|
|
|
| |||||||||||||||||
$4,533 | $1,738 | |||||||||||||||||||
|
|
|
|
146 | American Funds Insurance Series |
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American Funds Mortgage 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 | $108 | Unrealized depreciation1 | $ 74 | |||||||||||||||
Swap | Interest | Unrealized appreciation1 | – | Unrealized depreciation1 | 5,967 | |||||||||||||||
|
|
|
| |||||||||||||||||
$108 | $6,041 | |||||||||||||||||||
|
|
|
| |||||||||||||||||
Net realized gain (loss) | Net unrealized appreciation (depreciation) | |||||||||||||||||||
|
| |||||||||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||||||||
| ||||||||||||||||||||
Futures | Interest | Net realized gain on futures contracts | $ 8,464 | Net unrealized appreciation on futures contracts | $ 780 | |||||||||||||||
Swap | Interest | Net realized loss on swap contracts | (2,463 | ) | Net unrealized depreciation on swap contracts | (3,135 | ) | |||||||||||||
|
|
|
| |||||||||||||||||
$ 6,001 | $(2,355 | ) | ||||||||||||||||||
|
|
|
| |||||||||||||||||
U.S. Government/AAA-Rated Securities 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 | $ 2,176 | Unrealized depreciation1 | $ 1,957 | |||||||||||||||
Swap | Interest | Unrealized appreciation1 | 19,148 | Unrealized depreciation1 | 70,841 | |||||||||||||||
|
|
|
| |||||||||||||||||
$21,324 | $72,798 | |||||||||||||||||||
|
|
|
| |||||||||||||||||
Net realized gain | Net unrealized appreciation (depreciation) | |||||||||||||||||||
|
| |||||||||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||||||||
| ||||||||||||||||||||
Futures | Interest | Net realized gain on futures contracts | $ 87,073 | Net unrealized appreciation on futures contracts | $ 8,167 | |||||||||||||||
Swap | Interest | Net realized gain on swap contracts | 15,421 | Net unrealized depreciation on swap contracts | (31,391 | ) | ||||||||||||||
|
|
|
| |||||||||||||||||
$102,494 | $(23,224 | ) | ||||||||||||||||||
|
|
|
|
See end of tables for footnotes.
American Funds Insurance Series | 147 |
Table of Contents
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 | Currency | Unrealized appreciation1 | $197 | Unrealized depreciation1 | $ – | |||||||||||||||||||
Futures | Equity | Unrealized appreciation1 | 48 | Unrealized depreciation1 | 1,514 | |||||||||||||||||||
Futures | Interest | Unrealized appreciation1 | 521 | Unrealized depreciation1 | — | |||||||||||||||||||
|
|
|
| |||||||||||||||||||||
$766 | $1,514 | |||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net realized gain (loss) | Net unrealized appreciation (depreciation) | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||||||||||||
| ||||||||||||||||||||||||
Futures | Currency | Net realized gain on futures contracts | $ 186 | Net unrealized appreciation on futures contracts | $ 197 | |||||||||||||||||||
Futures | Equity | Net realized loss on futures contracts | (13,472 | ) | Net unrealized depreciation on futures contracts | (1,466 | ) | |||||||||||||||||
Futures | Interest | Net realized gain on futures contracts | 5,514 | Net unrealized appreciation on futures contracts | 582 | |||||||||||||||||||
|
|
|
| |||||||||||||||||||||
$ (7,772 | ) | $ (687 | ) | |||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Managed Risk International Fund | ||||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||||||||||||
| ||||||||||||||||||||||||
Futures | Currency | Unrealized appreciation1 | $335 | Unrealized depreciation1 | $ – | |||||||||||||||||||
Futures | Equity | Unrealized appreciation1 | 195 | Unrealized depreciation1 | 553 | |||||||||||||||||||
Futures | Interest | Unrealized appreciation1 | 169 | Unrealized depreciation1 | – | |||||||||||||||||||
|
|
|
| |||||||||||||||||||||
$699 | $553 | |||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net realized gain (loss) | Net unrealized appreciation (depreciation) | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||||||||||||
| ||||||||||||||||||||||||
Futures | Currency | Net realized gain on futures contracts | $ 86 | Net unrealized appreciation on futures contracts | $ 335 | |||||||||||||||||||
Futures | Equity | Net realized loss on futures contracts | (8,257 | ) | Net unrealized depreciation on futures contracts | (358 | ) | |||||||||||||||||
Futures | Interest | Net realized gain on futures contracts | 1,009 | Net unrealized appreciation on futures contracts | 199 | |||||||||||||||||||
|
|
|
| |||||||||||||||||||||
$(7,162 | ) | $ 176 | ||||||||||||||||||||||
|
|
|
|
148 | American Funds Insurance Series |
Table of Contents
Managed Risk Blue Chip Income and Growth Fund
Assets | Liabilities | |||||||||||||||||||
|
| |||||||||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||||||||
| ||||||||||||||||||||
Futures | Currency | Unrealized appreciation1 | $ 35 | Unrealized depreciation1 | $ – | |||||||||||||||
Futures | Equity | Unrealized appreciation1 | 25 | Unrealized depreciation1 | 1,189 | |||||||||||||||
Futures | Interest | Unrealized appreciation1 | 358 | Unrealized depreciation1 | – | |||||||||||||||
|
|
|
| |||||||||||||||||
$418 | $1,189 | |||||||||||||||||||
|
|
|
| |||||||||||||||||
Net realized gain (loss) | Net unrealized appreciation (depreciation) | |||||||||||||||||||
|
| |||||||||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||||||||
| ||||||||||||||||||||
Futures | Currency | Net realized gain on futures contracts | $ 56 | Net unrealized appreciation on futures contracts | $ 35 | |||||||||||||||
Futures | Equity | Net realized loss on futures contracts | (13,739 | ) | Net unrealized depreciation on futures contracts | (1,164 | ) | |||||||||||||
Futures | Interest | Net realized gain on futures contracts | 3,564 | Net unrealized appreciation on futures contracts | 410 | |||||||||||||||
|
|
|
| |||||||||||||||||
$(10,119 | ) | $ (719 | ) | |||||||||||||||||
|
|
|
| |||||||||||||||||
Managed Risk Growth-Income Fund |
| |||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||
|
| |||||||||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||||||||
| ||||||||||||||||||||
Options purchased | Equity | Investment securities of unaffiliated issuers3 | $20,156 | Investment securities of unaffiliated issuers3 | $ – | |||||||||||||||
Futures | Currency | Unrealized appreciation1 | 883 | Unrealized depreciation1 | – | |||||||||||||||
Futures | Equity | Unrealized appreciation1 | 135 | Unrealized depreciation1 | 1,445 | |||||||||||||||
Futures | Interest | Unrealized appreciation1 | 1,869 | Unrealized depreciation1 | – | |||||||||||||||
|
|
|
| |||||||||||||||||
$23,043 | $1,445 | |||||||||||||||||||
|
|
|
| |||||||||||||||||
Net realized (loss) gain | Net unrealized appreciation (depreciation) | |||||||||||||||||||
|
| |||||||||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||||||||
| ||||||||||||||||||||
Options purchased | Equity | Net realized loss on options purchased contracts4 | $(9,526 | ) | Net unrealized appreciation on options purchased contracts5 | $15,786 | ||||||||||||||
Futures | Currency | Net realized gain on futures contracts | 1,772 | Net unrealized appreciation on futures contracts | 883 | |||||||||||||||
Futures | Equity | Net realized gain on futures contracts | 16,550 | Net unrealized depreciation on futures contracts | (2,355 | ) | ||||||||||||||
Futures | Interest | Net realized gain on futures contracts | 23,943 | Net unrealized appreciation on futures contracts | 2,244 | |||||||||||||||
|
|
|
| |||||||||||||||||
$32,739 | $16,558 | |||||||||||||||||||
|
|
|
|
See end of tables for footnotes.
American Funds Insurance Series | 149 |
Table of Contents
Managed Risk Asset Allocation Fund
Assets | Liabilities | |||||||||||||||||||
|
| |||||||||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||||||||
| ||||||||||||||||||||
Futures | Currency | Unrealized appreciation1 | $ 476 | Unrealized depreciation1 | $ – | |||||||||||||||
Futures | Equity | Unrealized appreciation1 | 90 | Unrealized depreciation1 | 6,442 | |||||||||||||||
Futures | Interest | Unrealized appreciation1 | 1,825 | Unrealized depreciation1 | – | |||||||||||||||
|
|
|
| |||||||||||||||||
$2,391 | $6,442 | |||||||||||||||||||
|
|
|
| |||||||||||||||||
Net realized gain (loss) | Net unrealized appreciation (depreciation) | |||||||||||||||||||
|
| |||||||||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||||||||
| ||||||||||||||||||||
Futures | Currency | Net realized gain on futures contracts | $ 1,597 | Net unrealized appreciation on futures contracts | $ 476 | |||||||||||||||
Futures | Equity | Net realized loss on futures contracts | (59,487 | ) | Net unrealized depreciation on futures contracts | (6,352 | ) | |||||||||||||
Futures | Interest | Net realized gain on futures contracts | 21,839 | Net unrealized appreciation on futures contracts | 2,350 | |||||||||||||||
|
|
|
| |||||||||||||||||
$(36,051 | ) | $(3,526 | ) | |||||||||||||||||
|
|
|
|
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 each fund’s statement of assets and liabilities. |
2 | Amount less than one thousand. |
3 | Includes options purchased as reported in the fund’s investment portfolio. |
4 | Options purchased are included in net realized gain (loss) on unaffiliated investments. |
5 | Options purchased are included in net unrealized appreciation (depreciation) on unaffiliated investments. |
150 | American Funds Insurance Series |
Table of Contents
Collateral – Some funds participate in a collateral program that calls for the funds to either receive or pledge highly liquid assets, such as cash or U.S. government securities, as collateral due to securities lending and/or their use of futures contracts, forward currency contracts, interest rate swaps, credit default swaps and/or future delivery contracts. For securities lending, each participating fund receives collateral in exchange for lending investment securities. The purpose of the collateral is to cover potential losses that could occur in the event that the borrower cannot meet its contractual obligation. The lending agent may reinvest collateral from securities lending transactions according to agreed parameters. For futures contracts, interest rate swaps and credit default swaps, the program calls for each participating fund to pledge collateral for initial and variation margin by contract. For forward currency contracts, the program calls for each participating fund to either receive or pledge collateral based on the net gain or loss on unsettled forward currency contracts by counterparty. For future delivery contracts, the program calls for each participating fund to either receive or pledge collateral based on the net gain or loss on unsettled contracts by certain counterparties. The purpose of the collateral is to cover potential losses that could occur in the event that either party cannot meet its contractual obligation. Non-cash collateral pledged by each participating fund, if any, is disclosed in each fund’s investment portfolio, and cash collateral pledged by each participating fund, if any, is held in a segregated account with the fund’s custodian, which is reflected as pledged cash in each fund’s statement of assets and liabilities.
Rights of offset – Funds that hold forward currency contracts have enforceable master netting agreements with certain counterparties, where amounts payable by each party to the other in the same currency (with the same settlement date and with the same counter-party) are settled net of each party’s payment obligation. If an early termination date occurs under these agreements following an event of default or termination event, all obligations of each party to its counterparty are settled net through a single payment in a single currency (“close-out netting”). For financial reporting purposes, the funds do not offset financial assets and financial liabilities that are subject to these master netting arrangements in the statements of assets and liabilities.
The following tables present each fund’s forward currency contracts by counterparty that are subject to master netting agreements but that are not offset in the funds’ statements of assets and liabilities. The net amount column shows the impact of offsetting on the funds’ statement of assets and liabilities as of June 30, 2020, if close-out netting was exercised (dollars in thousands):
New World Fund
Gross amounts not offset in the | ||||||||||||||||||||
Gross amounts recognized in the statement of assets and liabilities | statement of assets and liabilities and | |||||||||||||||||||
subject to a master netting agreement | ||||||||||||||||||||
|
| |||||||||||||||||||
Counterparty | Available to offset | Non-cash collateral* | Cash collateral* | Net amount | ||||||||||||||||
| ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Bank of New York Mellon | $10 | $– | $– | $– | $10 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Standard Chartered Bank | $ 4 | $– | $– | $– | $ 4 | |||||||||||||||
Global Growth and Income Fund | ||||||||||||||||||||
Gross amounts not offset in the | ||||||||||||||||||||
Gross amounts recognized in the statement of assets and liabilities | statement of assets and liabilities and | |||||||||||||||||||
subject to a master netting agreement | ||||||||||||||||||||
|
| |||||||||||||||||||
Available | Non-cash | Cash | Net | |||||||||||||||||
Counterparty | to offset | collateral* | collateral* | amount | ||||||||||||||||
| ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Standard Chartered Bank | $27 | $– | $– | $– | $27 | |||||||||||||||
Capital Income Builder | ||||||||||||||||||||
Gross amounts not offset in the | ||||||||||||||||||||
Gross amounts recognized in the statement of assets and liabilities | statement of assets and liabilities and | |||||||||||||||||||
subject to a master netting agreement | ||||||||||||||||||||
|
| |||||||||||||||||||
Available | Non-cash | Cash | Net | |||||||||||||||||
Counterparty | to offset | collateral* | collateral* | amount | ||||||||||||||||
| ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Goldman Sachs | $4 | $– | $– | $– | $4 |
See end of tables for footnote.
American Funds Insurance Series | 151 |
Table of Contents
Global Balanced Fund
Gross amounts not offset in the | ||||||||||||||||||||
Gross amounts recognized in the statement of assets and liabilities | statement of assets and liabilities and | |||||||||||||||||||
subject to a master netting agreement
| ||||||||||||||||||||
|
| |||||||||||||||||||
Available | Non-cash | Cash | Net | |||||||||||||||||
Counterparty | to offset | collateral* | collateral* | amount | ||||||||||||||||
| ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Bank of New York Mellon | $ 4 | $ (4 | ) | $– | $– | $ – | ||||||||||||||
Barclays Bank PLC | 6 | (6 | ) | – | – | – | ||||||||||||||
Citibank | 7 | (7 | ) | – | – | – | ||||||||||||||
Goldman Sachs | 39 | (2 | ) | – | – | 37 | ||||||||||||||
HSBC Bank | 6 | (6 | ) | – | – | – | ||||||||||||||
JPMorgan Chase | 75 | (13 | ) | – | – | 62 | ||||||||||||||
Standard Chartered Bank | 13 | (4 | ) | – | – | 9 | ||||||||||||||
UBS AG | 5 | (5 | ) | – | – | – | ||||||||||||||
|
| |||||||||||||||||||
Total | $155 | $(47 | ) | $– | $– | $108 | ||||||||||||||
|
| |||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Bank of America | $ 10 | $ – | $– | $– | $ 10 | |||||||||||||||
Bank of New York Mellon | 5 | (4 | ) | – | – | 1 | ||||||||||||||
Barclays Bank PLC | 20 | (6 | ) | – | – | 14 | ||||||||||||||
Citibank | 44 | (7 | ) | – | – | 37 | ||||||||||||||
Goldman Sachs | 2 | (2 | ) | – | – | – | ||||||||||||||
HSBC Bank | 41 | (6 | ) | – | – | 35 | ||||||||||||||
JPMorgan Chase | 13 | (13 | ) | – | – | – | ||||||||||||||
Morgan Stanley | 14 | – | – | – | 14 | |||||||||||||||
Standard Chartered Bank | 4 | (4 | ) | – | – | – | ||||||||||||||
UBS AG | 12 | (5 | ) | – | – | 7 | ||||||||||||||
|
| |||||||||||||||||||
Total | $165 | $(47 | ) | $– | $– | $118 | ||||||||||||||
|
|
Bond Fund | ||||||||||||||||||||
Gross amounts recognized in the statement of assets and liabilities | Gross amounts not offset in the | |||||||||||||||||||
statement of assets and liabilities and | ||||||||||||||||||||
subject to a master netting agreement | ||||||||||||||||||||
|
| |||||||||||||||||||
Available | Non-cash | Cash | Net | |||||||||||||||||
Counterparty | to offset | collateral* | collateral* | amount | ||||||||||||||||
| ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Bank of New York Mellon | $ 155 | $– | $ (2 | ) | $ – | $153 | ||||||||||||||
Goldman Sachs | 2,038 | – | – | (2,038 | ) | – | ||||||||||||||
Morgan Stanley | 786 | – | – | (660 | ) | 126 | ||||||||||||||
|
| |||||||||||||||||||
Total | $2,979 | $– | $ (2 | ) | $(2,698 | ) | $279 | |||||||||||||
|
| |||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Citibank | $ 22 | $– | $ – | $ – | $ 22 | |||||||||||||||
JPMorgan Chase | 338 | – | (338 | ) | – | – | ||||||||||||||
Standard Chartered Bank | 892 | – | (892 | ) | – | – | ||||||||||||||
|
| |||||||||||||||||||
Total | $1,252 | $– | $(1,230 | ) | $ – | $ 22 | ||||||||||||||
|
|
152 | American Funds Insurance Series |
Table of Contents
Capital World Bond Fund
Gross amounts not offset in the | ||||||||||||||||||||
Gross amounts and liabilities | statement of assets and liabilities and | |||||||||||||||||||
subject to a master netting agreement
| ||||||||||||||||||||
Available | Non-cash | Cash | Net | |||||||||||||||||
Counterparty | to offset | collateral* | collateral* | amount | ||||||||||||||||
Assets: | ||||||||||||||||||||
Bank of New York Mellon | $ 41 | $ (24 | ) | $ (15 | ) | $ – | $ 2 | |||||||||||||
Citibank | 5,861 | (1,170 | ) | – | (4,561 | ) | 130 | |||||||||||||
Goldman Sachs | 19 | – | – | (19 | ) | – | ||||||||||||||
JPMorgan Chase | 228 | (228 | ) | – | – | – | ||||||||||||||
Standard Chartered Bank | 165 | (122 | ) | – | – | 43 | ||||||||||||||
UBS AG | 215 | (211 | ) | (4 | ) | – | – | |||||||||||||
|
| |||||||||||||||||||
Total | $6,529 | $(1,755 | ) | $ (19 | ) | $(4,580 | ) | $175 | ||||||||||||
|
| |||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Bank of America | $ 63 | $ – | $ – | $ – | $ 63 | |||||||||||||||
Bank of New York Mellon | 24 | (24 | ) | – | – | – | ||||||||||||||
Barclays Bank PLC | 1 | – | – | – | 1 | |||||||||||||||
Citibank | 1,170 | (1,170 | ) | – | – | – | ||||||||||||||
JPMorgan Chase | 1,477 | (228 | ) | (1,249 | ) | – | – | |||||||||||||
Standard Chartered Bank | 122 | (122 | ) | – | – | – | ||||||||||||||
UBS AG | 211 | (211 | ) | – | – | – | ||||||||||||||
|
| |||||||||||||||||||
Total | $3,068 | $(1,755 | ) | $(1,249 | ) | $ – | $ 64 | |||||||||||||
|
|
*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 June 30, 2020, 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 of non-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 to non-U.S. taxes. If applicable, the funds record an estimated deferred tax liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.
American Funds Insurance Series | 153 |
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 are as follows (dollars in thousands):
Global Fund | Global Small | Growth Fund | International Fund | New World Fund | Blue Chip Fund | |||||||||||||||||||
As of December 31, 2019: | ||||||||||||||||||||||||
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 | ) | – | – | |||||||||||||||||
As of June 30, 2020: | ||||||||||||||||||||||||
Gross unrealized appreciation on investments | 3,290,168 | 1,403,687 | 15,459,590 | 2,184,656 | 849,823 | 2,142,014 | ||||||||||||||||||
Gross unrealized depreciation on investments | (231,687 | ) | (234,502 | ) | (660,874 | ) | (661,590 | ) | (68,144 | ) | (795,155 | ) | ||||||||||||
Net unrealized appreciation (depreciation) on investments | 3,058,481 | 1,169,185 | 14,798,716 | 1,523,066 | 781,679 | 1,346,859 | ||||||||||||||||||
Cost of investments
|
| 3,742,442
|
|
| 3,265,498
|
|
| 15,411,380
|
|
| 7,386,761
|
|
| 2,665,024
|
|
| 7,070,500
|
| ||||||
Global Growth and Income Fund | Growth- Fund | International and Income | Capital Income Builder | Asset Allocation Fund | Global Balanced Fund | |||||||||||||||||||
As of December 31, 2019: | ||||||||||||||||||||||||
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 | ) | – | – | ||||||||||||||||
As of June 30, 2020: | ||||||||||||||||||||||||
Gross unrealized appreciation on investments | 496,090 | 10,887,937 | 217,631 | 88,825 | 6,357,435 | 76,582 | ||||||||||||||||||
Gross unrealized depreciation on investments | (112,894 | ) | (1,490,177 | ) | (120,291 | ) | (24,589 | ) | (885,733 | ) | (13,557 | ) | ||||||||||||
Net unrealized appreciation (depreciation) on investments | 383,196 | 9,397,760 | 97,340 | 64,236 | 5,471,702 | 63,025 | ||||||||||||||||||
Cost of investments
|
| 1,536,941
|
|
| 24,584,431
|
|
| 1,201,104
|
|
| 911,253
|
|
| 22,198,926
|
|
| 352,832
|
|
154 | American Funds Insurance Series |
Table of Contents
Bond Fund | Capital Bond Fund | High- Fund | American Funds Mortgage Fund | Ultra-Short Fund | U.S. Government/ AAA-Rated Securities Fund | |||||||||||||||||||
As of December 31, 2019: | ||||||||||||||||||||||||
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 | ) | – | ||||||||||||||||
As of June 30, 2020: | ||||||||||||||||||||||||
Gross unrealized appreciation on investments | 595,588 | 107,962 | 23,524 | 7,011 | 16 | 97,437 | ||||||||||||||||||
Gross unrealized depreciation on investments | (88,272 | ) | (49,046 | ) | (101,057 | ) | (6,240 | ) | (6 | ) | (73,407 | ) | ||||||||||||
Net unrealized appreciation (depreciation) on investments | 507,316 | 58,916 | (77,533 | ) | 771 | 10 | 24,030 | |||||||||||||||||
Cost of investments |
| 11,154,376
|
|
| 2,079,102
|
|
| 865,424
|
|
| 406,144
|
|
| 343,921
|
|
| 2,599,805
|
| ||||||
Managed Growth Fund | Managed Risk International Fund | Managed Risk Blue Chip Income and Growth Fund | Managed Risk Growth- Income Fund | Managed Asset | ||||||||||||||||||||
As of December 31, 2019: | ||||||||||||||||||||||||
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 | |||||||||||||||||||
As of June 30, 2020: | ||||||||||||||||||||||||
Gross unrealized appreciation on investments | 55,343 | – | – | 71,911 | 110,722 | |||||||||||||||||||
Gross unrealized depreciation on investments | – | (7,385 | ) | (25,977 | ) | (938 | ) | – | ||||||||||||||||
Net unrealized appreciation (depreciation) on investments | 55,343 | (7,385 | ) | (25,977 | ) | 70,973 | 110,722 | |||||||||||||||||
Cost of investments | 406,104 | 156,495 | 358,898 | 2,118,772 | 2,477,153 |
* | Capital loss carryforwards will be used to offset any capital gains realized by the funds in the current year or in subsequent 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
Six months ended June 30, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
Class 1 | $ 5,668 | $ 73,033 | $ 78,701 | $31,022 | $121,251 | $152,273 | ||||||||||||||||||||
Class 1A | 13 | 205 | 218 | 82 | 367 | 449 | ||||||||||||||||||||
Class 2 | 6,888 | 109,286 | 116,174 | 40,119 | 204,481 | 244,600 | ||||||||||||||||||||
Class 4 | 592 | 11,537 | 12,129 | 3,204 | 17,408 | 20,612 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total | $13,161 | $194,061 | $207,222 | $74,427 | $343,507 | $417,934 | ||||||||||||||||||||
|
|
|
|
American Funds Insurance Series | 155 |
Table of Contents
Global Small Capitalization Fund
Six months ended June 30, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
Class 1 | $5,414 | $120,074 | $125,488 | $28,009 | $97,912 | $125,921 | ||||||||||||||||||||
Class 1A | 2 | 42 | 44 | 6 | 23 | 29 | ||||||||||||||||||||
Class 2 | 5,373 | 140,495 | 145,868 | 28,406 | 119,280 | 147,686 | ||||||||||||||||||||
Class 4 | 408 | 12,682 | 13,090 | 1,932 | 9,184 | 11,116 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total | $11,197 | $273,293 | $284,490 | $58,353 | $226,399 | $284,752 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Growth Fund
| ||||||||||||||||||||||||||
Six months ended June 30, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
Class 1 | $32,752 | $285,315 | $318,067 | $150,838 | $ 964,757 | $1,115,595 | ||||||||||||||||||||
Class 1A | 56 | 547 | 603 | 193 | 1,290 | 1,483 | ||||||||||||||||||||
Class 2 | 39,943 | 404,657 | 444,600 | 192,058 | 1,500,212 | 1,692,270 | ||||||||||||||||||||
Class 3 | 560 | 5,433 | 5,993 | 2,713 | 20,442 | 23,155 | ||||||||||||||||||||
Class 4 | 3,629 | 42,241 | 45,870 | 14,770 | 130,929 | 145,699 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total | $76,940 | $738,193 | $815,133 | $360,572 | $2,617,630 | $2,978,202 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
International Fund
| ||||||||||||||||||||||||||
Six months ended June 30, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
Class 1 | $11,268 | $– | $11,268 | $ 85,943 | $130,060 | $216,003 | ||||||||||||||||||||
Class 1A | 13 | – | 13 | 95 | 141 | 236 | ||||||||||||||||||||
Class 2 | 7,417 | – | 7,417 | 59,246 | 104,778 | 164,024 | ||||||||||||||||||||
Class 3 | 43 | – | 43 | 354 | 637 | 991 | ||||||||||||||||||||
Class 4 | 522 | – | 522 | 4,496 | 8,870 | 13,366 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total | $19,263 | $– | $19,263 | $150,134 | $244,486 | $394,620 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
New World Fund
| ||||||||||||||||||||||||||
Six months ended June 30, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
Class 1 | $14,407 | $ 8,752 | $23,159 | $23,315 | $ 71,500 | $ 94,815 | ||||||||||||||||||||
Class 1A | 42 | 26 | 68 | 39 | 132 | 171 | ||||||||||||||||||||
Class 2 | 6,569 | 4,233 | 10,802 | 8,693 | 34,958 | 43,651 | ||||||||||||||||||||
Class 4 | 4,454 | 3,019 | 7,473 | 4,452 | 21,103 | 25,555 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total | $25,472 | $16,030 | $41,502 | $36,499 | $127,693 | $164,192 | ||||||||||||||||||||
|
|
|
|
156 | American Funds Insurance Series |
Table of Contents
Blue Chip Income and Growth Fund
Six months ended June 30, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
Class 1 | $22,973 | $ 61,517 | $ 84,490 | $118,657 | $410,713 | $529,370 | ||||||||||||||||||||
Class 1A | 47 | 134 | 181 | 163 | 435 | 598 | ||||||||||||||||||||
Class 2 | 11,675 | 34,662 | 46,337 | 60,118 | 238,793 | 298,911 | ||||||||||||||||||||
Class 4 | 2,493 | 7,992 | 10,485 | 10,646 | 38,700 | 49,346 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total | $37,188 | $104,305 | $141,493 | $189,584 | $688,641 | $878,225 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Global Growth and Income Fund
| ||||||||||||||||||||||||||
Six months ended June 30, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
Class 1 | $2,206 | $15,679 | $17,885 | $12,475 | $ 27,971 | $ 40,446 | ||||||||||||||||||||
Class 1A | 7 | 53 | 60 | 33 | 66 | 99 | ||||||||||||||||||||
Class 2 | 3,948 | 32,112 | 36,060 | 24,591 | 66,794 | 91,385 | ||||||||||||||||||||
Class 4 | 392 | 3,612 | 4,004 | 2,298 | 5,970 | 8,268 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total | $6,553 | $51,456 | $58,009 | $39,397 | $100,801 | $140,198 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Growth-Income Fund
| ||||||||||||||||||||||||||
Six months ended June 30, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
Class 1 | $144,011 | $482,142 | $ 626,153 | $455,391 | $1,825,184 | $2,280,575 | ||||||||||||||||||||
Class 1A | 75 | 265 | 340 | 206 | 825 | 1,031 | ||||||||||||||||||||
Class 2 | 85,637 | 305,445 | 391,082 | 272,097 | 1,260,360 | 1,532,457 | ||||||||||||||||||||
Class 3 | 973 | 3,413 | 4,386 | 3,204 | 14,500 | 17,704 | ||||||||||||||||||||
Class 4 | 7,703 | 29,072 | 36,775 | 21,474 | 103,934 | 125,408 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total | $238,399 | $820,337 | $1,058,736 | $752,372 | $3,204,803 | $3,957,175 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
International Growth and Income Fund
| ||||||||||||||||||||||||||
Six months ended June 30, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
Class 1 | $2,681 | $– | $2,681 | $41,626 | $– | $41,626 | ||||||||||||||||||||
Class 1A | 5 | – | 5 | 84 | – | 84 | ||||||||||||||||||||
Class 2 | 399 | – | 399 | 8,726 | – | 8,726 | ||||||||||||||||||||
Class 4 | 158 | – | 158 | 3,112 | – | 3,112 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total | $3,243 | $– | $3,243 | $53,548 | $– | $53,548 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Capital Income Builder
| ||||||||||||||||||||||||||
Six months ended June 30, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
Class 1 | $ 8,420 | $– | $ 8,420 | $13,476 | $– | $13,476 | ||||||||||||||||||||
Class 1A | 78 | – | 78 | 126 | – | 126 | ||||||||||||||||||||
Class 2 | 82 | – | 82 | 137 | – | 137 | ||||||||||||||||||||
Class 4 | 5,699 | – | 5,699 | 10,875 | – | 10,875 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total | $14,279 | $– | $14,279 | $24,614 | $– | $24,614 | ||||||||||||||||||||
|
|
|
|
American Funds Insurance Series | 157 |
Table of Contents
Asset Allocation Fund
Six months ended June 30, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
Class 1 | $ 80,116 | $ 79,610 | $159,726 | $356,589 | $ 816,841 | $1,173,430 | ||||||||||||||||||||
Class 1A | 46 | 51 | 97 | 189 | 416 | 605 | ||||||||||||||||||||
Class 2 | 20,767 | 22,747 | 43,514 | 94,178 | 253,101 | 347,279 | ||||||||||||||||||||
Class 3 | 133 | 141 | 274 | 608 | 1,581 | 2,189 | ||||||||||||||||||||
Class 4 | 17,719 | 21,221 | 38,940 | 71,682 | 206,152 | 277,834 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total | $118,781 | $123,770 | $242,551 | $523,246 | $1,278,091 | $1,801,337 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Global Balanced Fund
|
| |||||||||||||||||||||||||
Six months ended June 30, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
Class 1 | $ 6 | $ 440 | $ 446 | $1,912 | $ 3,479 | $ 5,391 | ||||||||||||||||||||
Class 1A | — | * | 8 | 8 | 28 | 61 | 89 | |||||||||||||||||||
Class 2 | 9 | 668 | 677 | 2,521 | 5,487 | 8,008 | ||||||||||||||||||||
Class 4 | 3 | 322 | 325 | 954 | 2,492 | 3,446 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total | $18 | $1,438 | $1,456 | $5,415 | $11,519 | $16,934 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Bond Fund
|
| |||||||||||||||||||||||||
Six months ended June 30, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
Class 1 | $ 62,335 | $25,238 | $ 87,573 | $177,855 | $– | $177,855 | ||||||||||||||||||||
Class 1A | 75 | 31 | 106 | �� | 165 | – | 165 | |||||||||||||||||||
Class 2 | 34,283 | 14,478 | 48,761 | 90,796 | – | 90,796 | ||||||||||||||||||||
Class 4 | 5,291 | 2,303 | 7,594 | 11,384 | – | 11,384 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total | $101,984 | $42,050 | $144,034 | $280,200 | $– | $280,200 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Capital World Bond Fund
| ||||||||||||||||||||||||||
Six months ended June 30, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
Class 1 | $16,454 | $4,335 | $20,789 | $19,173 | $– | $19,173 | ||||||||||||||||||||
Class 1A | 9 | 3 | 12 | 7 | – | 7 | ||||||||||||||||||||
Class 2 | 14,282 | 3,871 | 18,153 | 15,927 | – | 15,927 | ||||||||||||||||||||
Class 4 | 742 | 206 | 948 | 649 | – | 649 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total | $31,487 | $8,415 | $39,902 | $35,756 | $– | $35,756 | ||||||||||||||||||||
|
|
|
|
158 | American Funds Insurance Series |
Table of Contents
High-Income Bond Fund
Six months ended June 30, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
Class 1 | $ 1,904 | $– | $ 1,904 | $33,304 | $– | $33,304 | ||||||||||||||||||||
Class 1A | 14 | – | 14 | 45 | – | 45 | ||||||||||||||||||||
Class 2 | 10,081 | – | 10,081 | 41,753 | – | 41,753 | ||||||||||||||||||||
Class 3 | 147 | – | 147 | 611 | – | 611 | ||||||||||||||||||||
Class 4 | 758 | – | 758 | 3,353 | – | 3,353 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total | $12,904 | $– | $12,904 | $79,066 | $– | $79,066 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
American Funds Mortgage Fund
|
| |||||||||||||||||||||||||
Six months ended June 30, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
Class 1 | $ 845 | $263 | $1,108 | $5,573 | $– | $5,573 | ||||||||||||||||||||
Class 1A | 2 | 1 | 3 | 12 | – | 12 | ||||||||||||||||||||
Class 2 | 217 | 75 | 292 | 1,355 | – | 1,355 | ||||||||||||||||||||
Class 4 | 147 | 52 | 199 | 585 | – | 585 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total | $1,211 | $391 | $1,602 | $7,525 | $– | $7,525 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Ultra-Short Bond Fund
|
| |||||||||||||||||||||||||
Six months ended June 30, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
Class 1 | $104 | $– | $104 | $ 604 | $– | $ 604 | ||||||||||||||||||||
Class 1A | – | * | – | – | * | – | * | – | – | * | ||||||||||||||||
Class 2 | 558 | – | 558 | 4,088 | – | 4,088 | ||||||||||||||||||||
Class 3 | 8 | – | 8 | 59 | – | 59 | ||||||||||||||||||||
Class 4 | 67 | – | 67 | 342 | – | 342 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total | $737 | $– | $737 | $5,093 | $– | $5,093 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
U.S. Government/AAA-Rated Securities Fund
|
| |||||||||||||||||||||||||
Six months ended June 30, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||||
|
|
| ||||||||||||||||||||||||
Class 1 | $ 6,611 | $ 3,231 | $ 9,842 | $31,700 | $– | $31,700 | ||||||||||||||||||||
Class 1A | 59 | 29 | 88 | 50 | – | 50 | ||||||||||||||||||||
Class 2 | 22,261 | 11,067 | 33,328 | 26,790 | – | 26,790 | ||||||||||||||||||||
Class 3 | 181 | 89 | 270 | 180 | – | 180 | ||||||||||||||||||||
Class 4 | 4,011 | 1,992 | 6,003 | 2,241 | – | 2,241 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||
Total | $33,123 | $16,408 | $49,531 | $60,961 | $– | $60,961 | ||||||||||||||||||||
|
|
|
|
See end of tables for footnote.
American Funds Insurance Series | 159 |
Table of Contents
Managed Risk Growth Fund
Six months ended June 30, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
Class P1 | $ 64 | $ 375 | $ 439 | $ 61 | $ 256 | $ 317 | ||||||||||||||||||||||
Class P2 | 3,441 | 21,394 | 24,835 | 3,581 | 26,324 | 29,905 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Total | $3,505 | $21,769 | $25,274 | $3,642 | $26,580 | $30,222 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Managed Risk International Fund
|
| |||||||||||||||||||||||||||
Six months ended June 30, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class P1 | $ 21 | $ 10 | $ 31 | $ 11 | $ 16 | $ 27 | ||||||||||||||||||||||
Class P2 | 1,913 | 1,303 | 3,216 | 2,974 | 4,795 | 7,769 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Total | $1,934 | $1,313 | $3,247 | $2,985 | $4,811 | $7,796 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Managed Risk Blue Chip Income and Growth Fund
|
| |||||||||||||||||||||||||||
Six months ended June 30, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||
Class P1 | $ 25 | $ 37 | $ 62 | $ 13 | $ 40 | $ 53 | ||||||||||||||||||||||
Class P2 | 5,680 | 10,828 | 16,508 | 5,566 | 17,796 | 23,362 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Total | $5,705 | $10,865 | $16,570 | $5,579 | $17,836 | $23,415 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Managed Risk Growth-Income Fund
|
| |||||||||||||||||||||||||||
Six months ended June 30, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
Class P1 | $29,129 | $103,176 | $132,305 | $14,564 | $14,505 | $29,069 | ||||||||||||||||||||||
Class P2 | 4,182 | 15,199 | 19,381 | 1,352 | 2,019 | 3,371 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Total | $33,311 | $118,375 | $151,686 | $15,916 | $16,524 | $32,440 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Managed Risk Asset Allocation Fund
|
| |||||||||||||||||||||||||||
Six months ended June 30, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
Class P1 | $ 58 | $ 146 | $ 204 | $ 5 | $ 65 | $ 70 | ||||||||||||||||||||||
Class P2 | 40,641 | 105,833 | 146,474 | 62,691 | 115,050 | 177,741 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Total | $40,699 | $105,979 | $146,678 | $62,696 | $115,115 | $177,811 | ||||||||||||||||||||||
|
|
|
|
*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.
160 | 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 – CRMC is waiving a portion of its investment advisory services fees for New World Fund, Capital Income Builder, Capital World Bond Fund, American Funds Mortgage Fund and 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 six months ended June 30, 2020, total investment advisory services fees waived by CRMC were $3,259,000.
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:
Net asset level | For the six months ended | For the six months ended | ||||||||||||||||||||||
Rates | (in billions) | June 30, | June 30, | |||||||||||||||||||||
Fund | Beginning with | Ending with | Up to | In excess of | 2020, before waiver | 2020, after waiver | ||||||||||||||||||
| ||||||||||||||||||||||||
Global Growth Fund | .690 | % | .460 | % | $ .6 | $ 5.0 | .515 | % | .515 | % | ||||||||||||||
Global Small Capitalization Fund | .800 | .635 | .6 | 5.0 | .697 | .697 | ||||||||||||||||||
Growth Fund | .500 | .280 | .6 | 34.0 | .320 | .320 | ||||||||||||||||||
International Fund | .690 | .430 | .5 | 21.0 | .495 | .495 | ||||||||||||||||||
New World Fund | .850 | .580 | .5 | 4.0 | .703 | .643 | ||||||||||||||||||
Blue Chip Income and Growth Fund | .500 | .350 | .6 | 10.5 | .391 | .391 | ||||||||||||||||||
Global Growth and Income Fund | .690 | .480 | .6 | 3.0 | .599 | .599 | ||||||||||||||||||
Growth-Income Fund | .500 | .219 | .6 | 34.0 | .257 | .257 | ||||||||||||||||||
International Growth and Income Fund | .690 | .500 | .5 | 1.5 | .616 | .616 | ||||||||||||||||||
Capital Income Builder | .500 | .410 | .6 | 1.0 | .482 | .395 | ||||||||||||||||||
Asset Allocation Fund | .500 | .240 | .6 | 21.0 | .266 | .266 | ||||||||||||||||||
Global Balanced Fund | .660 | .510 | .5 | 1.0 | .660 | .660 | ||||||||||||||||||
Bond Fund | .480 | .320 | .6 | 13.0 | .363 | .363 | ||||||||||||||||||
Capital World Bond Fund | .570 | .450 | 1.0 | 3.0 | .534 | .501 | ||||||||||||||||||
High-Income Bond Fund | .500 | .420 | .6 | 2.0 | .481 | .481 | ||||||||||||||||||
American Funds Mortgage Fund | .420 | .290 | .6 | 3.0 | .420 | .361 | ||||||||||||||||||
Ultra-Short Bond Fund | .320 | .270 | 1.0 | 2.0 | .320 | .320 | ||||||||||||||||||
U.S. Government/AAA-Rated Securities Fund | .420 | .290 | .6 | 3.0 | .343 | .343 | ||||||||||||||||||
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 | 161 |
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 providing non-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. Currently each fund, other than the managed-risk funds, pays CRMC an administrative services fee at the annual rate of 0.03% of 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 Bank of New York Mellon (“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 | $356 | |||||||||
Class 1A | $ – | $ 9 | 1 | |||||||||
Class 2 | 4,467 | Not applicable | 536 | |||||||||
Class 4 | 461 | 460 | 55 | |||||||||
|
| |||||||||||
Total class-specific expenses | $4,928 | $469 | $948 | |||||||||
|
| |||||||||||
Growth Fund
| ||||||||||||
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
| ||||||||||||
Class 1 | Not applicable | Not applicable | $1,599 | |||||||||
Class 1A | $ – | $ 23 | 3 | |||||||||
Class 2 | 19,081 | Not applicable | 2,290 | |||||||||
Class 3 | 187 | Not applicable | 31 | |||||||||
Class 4 | 1,893 | 1,892 | 227 | |||||||||
|
| |||||||||||
Total class-specific expenses | $21,161 | $1,915 | $4,150 | |||||||||
|
|
Global Small Capitalization Fund
|
| |||||||||||
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
| ||||||||||||
Class 1 | Not applicable | Not applicable | $276 | |||||||||
Class 1A | $ – | $ – | * | – | * | |||||||
Class 2 | 2,597 | Not applicable | 312 | |||||||||
Class 4 | 233 | 233 | 28 | |||||||||
|
| |||||||||||
Total class-specific expenses | $2,830 | $233 | $616 | |||||||||
|
| |||||||||||
International Fund
|
| |||||||||||
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
| ||||||||||||
Class 1 | Not applicable | Not applicable | $ 697 | |||||||||
Class 1A | $ – | $ 8 | 1 | |||||||||
Class 2 | 4,670 | Not applicable | 561 | |||||||||
Class 3 | 19 | Not applicable | 3 | |||||||||
Class 4 | 415 | 415 | 50 | |||||||||
|
| |||||||||||
Total class-specific expenses | $5,104 | $423 | $1,312 | |||||||||
|
|
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New World Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
| ||||||||||||
Class 1 | Not applicable | Not applicable | $277 | |||||||||
Class 1A | $ – | $ 5 | 1 | |||||||||
Class 2 | 1,078 | Not applicable | 129 | |||||||||
Class 4 | 741 | 741 | 89 | |||||||||
|
| |||||||||||
Total class-specific expenses | $1,819 | $746 | $496 | |||||||||
|
|
Global Growth and Income Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
| ||||||||||||
Class 1 | Not applicable | Not applicable | $86 | |||||||||
Class 1A | $ – | $ 2 | – | * | ||||||||
Class 2 | 1,463 | Not applicable | 176 | |||||||||
Class 4 | 160 | 160 | 19 | |||||||||
|
| |||||||||||
Total class-specific expenses | $1,623 | $162 | $281 | |||||||||
|
|
International Growth and Income Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
| ||||||||||||
Class 1 | Not applicable | Not applicable | $148 | |||||||||
Class 1A | $ – | $2 | – | * | ||||||||
Class 2 | 241 | Not applicable | 29 | |||||||||
Class 4 | 110 | 110 | 13 | |||||||||
|
| |||||||||||
Total class-specific expenses | $351 | $112 | $190 | |||||||||
|
|
Asset Allocation Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
| ||||||||||||
Class 1 | Not applicable | Not applicable | $2,492 | |||||||||
Class 1A | $ – | $ 13 | 2 | |||||||||
Class 2 | 5,940 | Not applicable | 713 | |||||||||
Class 3 | 27 | Not applicable | 4 | |||||||||
Class 4 | 5,376 | 5,376 | 645 | |||||||||
|
| |||||||||||
Total class-specific expenses | $11,343 | $5,389 | $3,856 | |||||||||
|
|
Blue Chip Income and Growth Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
| ||||||||||||
Class 1 | Not applicable | Not applicable | $ 739 | |||||||||
Class 1A | $ – | $ 11 | 1 | |||||||||
Class 2 | 3,401 | Not applicable | 408 | |||||||||
Class 4 | 739 | 739 | 89 | |||||||||
|
| |||||||||||
Total class-specific expenses | $4,140 | $750 | $1,237 | |||||||||
|
|
Growth-Income Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
| ||||||||||||
Class 1 | Not applicable | Not applicable | $2,891 | |||||||||
Class 1A | $ – | $ 13 | 2 | |||||||||
Class 2 | 15,267 | Not applicable | 1,832 | |||||||||
Class 3 | 126 | Not applicable | 21 | |||||||||
Class 4 | 1,412 | 1,412 | 169 | |||||||||
|
| |||||||||||
Total class-specific expenses | $16,805 | $1,425 | $4,915 | |||||||||
|
|
Capital Income Builder
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
| ||||||||||||
Class 1 | Not applicable | Not applicable | $ 77 | |||||||||
Class 1A | $ – | $ 7 | 1 | |||||||||
Class 2 | 7 | Not applicable | 1 | |||||||||
Class 4 | 521 | 521 | 62 | |||||||||
|
| |||||||||||
Total class-specific expenses | $528 | $528 | $141 | |||||||||
|
|
Global Balanced Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
| ||||||||||||
Class 1 | Not applicable | Not applicable | $19 | |||||||||
Class 1A | $ – | $ 2 | – | * | ||||||||
Class 2 | 238 | Not applicable | 29 | |||||||||
Class 4 | 112 | 112 | 13 | |||||||||
|
| |||||||||||
Total class-specific expenses | $350 | $114 | $61 | |||||||||
|
|
See end of tables for footnote.
American Funds Insurance Series | 163 |
Table of Contents
Bond Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
| ||||||||||||
Class 1 | Not applicable | Not applicable | $ 951 | |||||||||
Class 1A | $ – | $ 9 | 1 | |||||||||
Class 2 | 4,420 | Not applicable | 530 | |||||||||
Class 4 | 671 | 671 | 81 | |||||||||
|
| |||||||||||
Total class-specific expenses | $5,091 | $680 | $1,563 | |||||||||
|
|
Capital World Bond Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
| ||||||||||||
Class 1 | Not applicable | Not applicable | $155 | |||||||||
Class 1A | $ – | $ 1 | – | * | ||||||||
Class 2 | 1,203 | Not applicable | 144 | |||||||||
Class 4 | 62 | 62 | 7 | |||||||||
|
| |||||||||||
Total class-specific expenses | $1,265 | $63 | $306 | |||||||||
|
|
High-Income Bond Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
| ||||||||||||
Class 1 | Not applicable | Not applicable | $ 55 | |||||||||
Class 1A | $ – | $ 1 | – | * | ||||||||
Class 2 | 767 | Not applicable | 92 | |||||||||
Class 3 | 8 | Not applicable | 1 | |||||||||
Class 4 | 64 | 64 | 8 | |||||||||
|
| |||||||||||
Total class-specific expenses | $839 | $65 | $156 | |||||||||
|
|
American Funds Mortgage Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
| ||||||||||||
Class 1 | Not applicable | Not applicable | $30 | |||||||||
Class 1A | $ – | $ 1 | – | * | ||||||||
Class 2 | 70 | Not applicable | 8 | |||||||||
Class 4 | 42 | 41 | 5 | |||||||||
|
| |||||||||||
Total class-specific expenses | $112 | $42 | $43 | |||||||||
|
|
Ultra-Short Bond Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
| ||||||||||||
Class 1 | Not applicable | Not applicable | $ 5 | |||||||||
Class 1A | $ – | $ – | * | – | * | |||||||
Class 2 | 311 | Not applicable | 37 | |||||||||
Class 3 | 3 | Not applicable | 1 | |||||||||
Class 4 | 37 | 37 | 5 | |||||||||
|
| |||||||||||
Total class-specific expenses | $351 | $37 | $48 | |||||||||
|
|
U.S. Government/AAA-Rated Securities Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
| ||||||||||||
Class 1 | Not applicable | Not applicable | $162 | |||||||||
Class 1A | $ – | $ 4 | – | * | ||||||||
Class 2 | 1,696 | Not applicable | 204 | |||||||||
Class 3 | 9 | Not applicable | 1 | |||||||||
Class 4 | 247 | 247 | 30 | |||||||||
|
| |||||||||||
Total class-specific expenses | $1,952 | $251 | $397 | |||||||||
|
|
Managed Risk Growth Fund
Share class | Distribution services | Insurance administrative services | ||||||
| ||||||||
Class P1 | Not applicable | $ 9 | ||||||
Class P2 | $543 | 543 | ||||||
|
| |||||||
Total class-specific expenses | $543 | $552 | ||||||
|
|
Managed Risk International Fund
Share class | Distribution services | Insurance administrative services | ||||||
| ||||||||
Class P1 | Not applicable | $ 1 | ||||||
Class P2 | $190 | 190 | ||||||
|
| |||||||
Total class-specific expenses | $190 | $191 | ||||||
|
|
Managed Risk Blue Chip
Income and Growth Fund
Share class | Distribution services | Insurance administrative services | ||||||
| ||||||||
Class P1 | Not applicable | $ 2 | ||||||
Class P2 | $424 | 424 | ||||||
|
| |||||||
Total class-specific expenses | $424 | $426 | ||||||
|
|
Managed Risk Growth-Income Fund
Share class | Distribution services |
Insurance | ||||||
| ||||||||
Class P1 | Not applicable | $2,388 | ||||||
Class P2 | $344 | 344 | ||||||
|
| |||||||
Total class-specific expenses | $344 | $2,732 | ||||||
|
|
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Table of Contents
Managed Risk Asset Allocation Fund
Share class | Distribution services | Insurance administrative services | ||||||
| ||||||||
Class P1 | Not applicable | $ 4 | ||||||
Class P2 | $3,321 | 3,321 | ||||||
|
| |||||||
Total class-specific expenses | $3,321 | $3,325 | ||||||
|
|
*Amount less than one thousand.
Miscellaneous fee reimbursements – CRMC has agreed to reimburse a portion of miscellaneous fees and expenses of Managed Risk International Fund. Miscellaneous expenses exclude investment advisory services and distribution services fees. This reimbursement may be adjusted or discontinued by CRMC, subject to any restrictions in the series’ prospectus. For the six months ended June 30, 2020, total fees and expenses reimbursed by CRMC were $2,000. Fees and expenses in the 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 decrease in the value of the deferred amounts as follows (dollars in thousands):
Fund | Current fees | (Decrease) increase in value of deferred amounts | Total trustees’ compensation | |||||||||
Global Growth Fund | $11 | $(1 | ) | $10 | ||||||||
Global Small Capitalization Fund | 7 | – | * | 7 | ||||||||
Growth Fund | 47 | (3 | ) | 44 | ||||||||
International Fund | 16 | (2 | ) | 14 | ||||||||
New World Fund | 6 | (1 | ) | 5 | ||||||||
Blue Chip Income and Growth Fund | 15 | (1 | ) | 14 | ||||||||
Global Growth and Income Fund | 3 | – | * | 3 | ||||||||
Growth-Income Fund | 58 | (5 | ) | 53 | ||||||||
International Growth and Income Fund | 2 | – | * | 2 | ||||||||
Capital Income Builder | 2 | – | * | 2 | ||||||||
Asset Allocation Fund | 45 | (6 | ) | 39 | ||||||||
Global Balanced Fund | 1 | – | * | 1 | ||||||||
Bond Fund | 18 | (4 | ) | 14 | ||||||||
Capital World Bond Fund | 3 | (1 | ) | 2 | ||||||||
High-Income Bond Fund | 2 | (1 | ) | 1 | ||||||||
American Funds Mortgage Fund | – | * | – | * | –* | |||||||
Ultra-Short Bond Fund | 1 | – | * | 1 | ||||||||
U.S. Government/AAA-Rated Securities Fund | 5 | (3 | ) | 2 | ||||||||
Managed Risk Growth Fund | 1 | – | * | 1 | ||||||||
Managed Risk International Fund | – | * | – | * | –* | |||||||
Managed Risk Blue Chip Income and Growth Fund | – | * | – | * | –* | |||||||
Managed Risk Growth-Income Fund | 2 | 1 | 3 | |||||||||
Managed Risk Asset Allocation Fund | 3 | 1 | 4 |
*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 | 165 |
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 Rule 17a-7 of the 1940 Act.
The following table presents purchase and sale transactions between each fund and related funds as of June 30, 2020 (dollars in thousands):
Fund | Purchases | Sales | Net realized gain (loss) | |||||||||
Global Growth Fund | $ 9,302 | $ 26,059 | $ 5,116 | |||||||||
Global Small Capitalization Fund | 34,841 | 36,098 | 916 | |||||||||
Growth Fund | 253,054 | 262,317 | 27,602 | |||||||||
International Fund | 46,693 | 59,299 | 7,938 | |||||||||
New World Fund | 42,173 | 38,710 | (2,212) | |||||||||
Blue Chip Income and Growth Fund | 143,063 | 55,397 | (1,792) | |||||||||
Global Growth and Income Fund | 1,744 | 23,222 | (11,375) | |||||||||
Growth-Income Fund | 309,537 | 470,032 | 26,622 | |||||||||
International Growth and Income Fund | 16,181 | 11,355 | (860) | |||||||||
Capital Income Builder | 70,291 | 40,039 | (9,814) | |||||||||
Asset Allocation Fund | 186,945 | 314,271 | 52,102 | |||||||||
Bond Fund | 33,448 | 14,511 | 1,255 | |||||||||
Capital World Bond Fund | 11,099 | 185 | 7 | |||||||||
High-Income Bond Fund | 2,877 | 365,982 | (18,814) | |||||||||
U.S. Government/AAA-Rated Securities Fund | – | 444,556 | 22,675 |
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 its pro-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 six months ended June 30, 2020.
9. Capital share transactions
Capital share transactions in the funds were as follows (dollars and shares in thousands):
Global Growth Fund
Reinvestments of | Net increase | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Class 1 | $137,872 | 4,527 | $ 78,701 | 2,393 | $(178,482) | (5,864) | $ 38,091 | 1,056 | ||||||||||||||||||||||||
Class 1A | 1,052 | 35 | 217 | 7 | (1,893) | (69) | (624) | (27) | ||||||||||||||||||||||||
Class 2 | 20,996 | 726 | 116,174 | 3,572 | (285,902) | (9,235) | (148,732) | (4,937) | ||||||||||||||||||||||||
Class 4 | 33,776 | 1,095 | 12,130 | 375 | (28,061) | (958) | 17,845 | 512 | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $193,696 | 6,383 | $207,222 | 6,347 | $(494,338) | (16,126) | $ (93,420) | (3,396) | ||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
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) | ||||||||||||||||||||||||
|
|
166 | American Funds Insurance Series |
Table of Contents
Global Small Capitalization Fund
Reinvestments of | Net increase | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Class 1 | $172,768 | 8,351 | $125,091 | 5,146 | $(219,411 | ) | (9,590 | ) | $ 78,448 | 3,907 | ||||||||||||||||||||||
Class 1A | 163 | 7 | 43 | 2 | (57 | ) | (3 | ) | 149 | 6 | ||||||||||||||||||||||
Class 2 | 51,360 | 2,516 | 145,869 | 6,194 | (147,706 | ) | (6,121 | ) | 49,523 | 2,589 | ||||||||||||||||||||||
Class 4 | 16,798 | 743 | 13,089 | 553 | (15,504 | ) | (673 | ) | 14,383 | 623 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $241,089 | 11,617 | $284,092 | 11,895 | $(382,678 | ) | (16,387 | ) | $ 142,503 | 7,125 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Growth Fund | ||||||||||||||||||||||||||||||||
Reinvestments of | Net increase | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Class 1 | $1,201,297 | 15,603 | $ 317,441 | 3,607 | $(1,495,269 | ) | (18,874 | ) | $ 23,469 | 336 | ||||||||||||||||||||||
Class 1A | 7,999 | 95 | 603 | 7 | (2,682 | ) | (35 | ) | 5,920 | 67 | ||||||||||||||||||||||
Class 2 | 228,247 | 2,918 | 444,599 | 5,098 | (1,385,153 | ) | (17,154 | ) | (712,307 | ) | (9,138) | |||||||||||||||||||||
Class 3 | 1,018 | 14 | 5,993 | 67 | (14,242 | ) | (171 | ) | (7,231 | ) | (90) | |||||||||||||||||||||
Class 4 | 138,894 | 1,789 | 45,870 | 534 | (121,825 | ) | (1,569 | ) | 62,939 | 754 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $1,577,455 | 20,419 | $ 814,506 | 9,313 | $(3,019,171 | ) | (37,803 | ) | $(627,210 | ) | (8,071) | |||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||
|
|
See end of tables for footnotes.
American Funds Insurance Series | 167 |
Table of Contents
International Fund
Reinvestments of | Net (decrease) | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Class 1 | $388,665 | 23,703 | $ 11,267 | 597 | $ (440,804 | ) | (24,999 | ) | $ (40,872 | ) | (699) | |||||||||||||||||||||
Class 1A | 1,828 | 102 | 13 | 1 | (573 | ) | (32 | ) | 1,268 | 71 | ||||||||||||||||||||||
Class 2 | 199,891 | 11,906 | 7,418 | 395 | (208,199 | ) | (11,265 | ) | (890 | ) | 1,036 | |||||||||||||||||||||
Class 3 | 158 | 9 | 42 | 2 | (1,059 | ) | (58 | ) | (859 | ) | (47) | |||||||||||||||||||||
Class 4 | 30,329 | 1,783 | 522 | 28 | (26,390 | ) | (1,483 | ) | 4,461 | 328 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $620,871 | 37,503 | $ 19,262 | 1,023 | $ (677,025 | ) | (37,837 | ) | $ (36,892 | ) | 689 | |||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $409,174 | 21,107 | $394,257 | 20,151 | $(1,340,232 | ) | (68,449 | ) | $(536,801 | ) | (27,191) | |||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
New World Fund
| ||||||||||||||||||||||||||||||||
Reinvestments of | Net (decrease) | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Class 1 | $44,914 | 2,137 | $ 23,133 | 946 | $(185,645 | ) | (8,197 | ) | $(117,598 | ) | (5,114) | |||||||||||||||||||||
Class 1A | 2,951 | 128 | 67 | 3 | (781 | ) | (35 | ) | 2,237 | 96 | ||||||||||||||||||||||
Class 2 | 37,068 | 1,679 | 10,803 | 446 | (76,551 | ) | (3,236 | ) | (28,680 | ) | (1,111) | |||||||||||||||||||||
Class 4 | 50,331 | 2,264 | 7,473 | 311 | (27,437 | ) | (1,209 | ) | 30,367 | 1,366 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $135,264 | 6,208 | $ 41,476 | 1,706 | $(290,414 | ) | (12,677 | ) | $(113,674 | ) | (4,763) | |||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Blue Chip Income and Growth Fund
| ||||||||||||||||||||||||||||||||
Reinvestments of | Net (decrease) | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Class 1 | $376,445 | 34,283 | $ 83,851 | 6,495 | $(479,153 | ) | (41,220 | ) | $ (18,857 | ) | (442) | |||||||||||||||||||||
Class 1A | 4,165 | 355 | 180 | 14 | (496 | ) | (42 | ) | 3,849 | 327 | ||||||||||||||||||||||
Class 2 | 57,979 | 5,410 | 46,338 | 3,643 | (152,947 | ) | (12,250 | ) | (48,630 | ) | (3,197) | |||||||||||||||||||||
Class 4 | 94,984 | 8,201 | 10,485 | 830 | (26,845 | ) | (2,297 | ) | 78,624 | 6,734 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $533,573 | 48,249 | $140,854 | 10,982 | $(659,441 | ) | (55,809 | ) | $ 14,986 | 3,422 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $445,943 | 34,869 | $874,066 | 70,184 | $(890,185 | ) | (68,613 | ) | $429,824 | 36,440 | ||||||||||||||||||||||
|
|
168 | American Funds Insurance Series |
Table of Contents
Global Growth and Income Fund
Reinvestments of | Net increase | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Class 1 | $220,708 | 17,518 | $ 17,145 | 1,207 | $(186,270 | ) | (14,634 | ) | $ 51,583 | 4,091 | ||||||||||||||||||||||
Class 1A | 283 | 23 | 59 | 4 | (63 | ) | (5 | ) | 279 | 22 | ||||||||||||||||||||||
Class 2 | 33,099 | 2,678 | 36,059 | 2,547 | (68,359 | ) | (4,755 | ) | 799 | 470 | ||||||||||||||||||||||
Class 4 | 14,786 | 1,123 | 4,005 | 288 | (10,672 | ) | (813 | ) | 8,119 | 598 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $268,876 | 21,342 | $ 57,268 | 4,046 | $(265,364 | ) | (20,207 | ) | $ 60,780 | 5,181 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $ 94,732 | 6,503 | $138,515 | 9,471 | $(310,184 | ) | (21,062 | ) | $ (76,937 | ) | (5,088) | |||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Growth-Income Fund
| ||||||||||||||||||||||||||||||||
Reinvestments of | Net increase | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Class 1 | $1,399,453 | 32,553 | $ 625,200 | 12,835 | $(1,625,978 | ) | (36,304 | ) | $ 398,675 | 9,084 | ||||||||||||||||||||||
Class 1A | 1,291 | 29 | 340 | 7 | (692 | ) | (15 | ) | 939 | 21 | ||||||||||||||||||||||
Class 2 | 153,560 | 3,505 | 391,083 | 8,139 | (726,766 | ) | (15,483 | ) | (182,123 | ) | (3,839) | |||||||||||||||||||||
Class 3 | 1,033 | 22 | 4,386 | 90 | (9,423 | ) | (197 | ) | (4,004 | ) | (85) | |||||||||||||||||||||
Class 4 | 88,454 | 1,971 | 36,775 | 775 | (75,133 | ) | (1,678 | ) | 50,096 | 1,068 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $1,643,791 | 38,080 | $1,057,784 | 21,846 | $(2,437,992 | ) | (53,677 | ) | $ 263,583 | 6,249 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $1,420,876 | 29,295 | $3,953,358 | 85,083 | $(2,981,944 | ) | (61,275 | ) | $2,392,290 | 53,103 | ||||||||||||||||||||||
|
|
See end of tables for footnotes.
American Funds Insurance Series | 169 |
Table of Contents
International Growth and Income Fund
Reinvestments of | Net increase | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Class 1 | $71,907 | 5,085 | $ 2,659 | 168 | $ (27,857 | ) | (1,832 | ) | $ 46,709 | 3,421 | ||||||||||||||||||||||
Class 1A | 734 | 52 | 5 | – | † | (706 | ) | (44 | ) | 33 | 8 | |||||||||||||||||||||
Class 2 | 11,558 | 828 | 399 | 25 | (45,938 | ) | (2,621 | ) | (33,981 | ) | (1,768) | |||||||||||||||||||||
Class 4 | 11,342 | 746 | 158 | 10 | (6,864 | ) | (461 | ) | 4,636 | 295 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $95,541 | 6,711 | $ 3,221 | 203 | $ (81,365 | ) | (4,958 | ) | $ 17,397 | 1,956 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $44,297 | 2,603 | $53,548 | 3,100 | $(175,914 | ) | (10,292 | ) | $(78,069 | ) | (4,589) | |||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Capital Income Builder
| ||||||||||||||||||||||||||||||||
Reinvestments of | Net increase | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Class 1 | $155,944 | 16,257 | $ 8,420 | 910 | $(123,750 | ) | (13,164 | ) | $ 40,614 | 4,003 | ||||||||||||||||||||||
Class 1A | 108 | 12 | 78 | 8 | (242 | ) | (25 | ) | (56 | ) | (5) | |||||||||||||||||||||
Class 2 | 914 | 93 | 82 | 9 | (163 | ) | (16 | ) | 833 | 86 | ||||||||||||||||||||||
Class 4 | 28,162 | 2,825 | 5,699 | 616 | (32,443 | ) | (3,386 | ) | 1,418 | 55 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $185,128 | 19,187 | $14,279 | 1,543 | $(156,598 | ) | (16,591 | ) | $ 42,809 | 4,139 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $231,424 | 22,814 | $24,614 | 2,417 | $ (42,829 | ) | (4,233 | ) | $213,209 | 20,998 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Asset Allocation Fund
| ||||||||||||||||||||||||||||||||
Reinvestments of | Net (decrease) | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Class 1 | $1,338,592 | 60,714 | $ 159,726 | 6,661 | $(1,705,001 | ) | (78,164 | ) | $ (206,683 | ) | (10,789) | |||||||||||||||||||||
Class 1A | 1,697 | 73 | 97 | 4 | (1,033 | ) | (47 | ) | 761 | 30 | ||||||||||||||||||||||
Class 2 | 58,203 | 2,570 | 43,514 | 1,835 | (310,423 | ) | (13,890 | ) | (208,706 | ) | (9,485) | |||||||||||||||||||||
Class 3 | 357 | 15 | 274 | 12 | (1,998 | ) | (89 | ) | (1,367 | ) | (62) | |||||||||||||||||||||
Class 4 | 213,254 | 9,477 | 38,940 | 1,652 | (141,527 | ) | (6,432 | ) | 110,667 | 4,697 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $1,612,103 | 72,849 | $ 242,551 | 10,164 | $(2,159,982 | ) | (98,622 | ) | $ (305,328 | ) | (15,609) | |||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $1,553,202 | 67,830 | $1,801,337 | 80,372 | $(1,920,425 | ) | (84,039 | ) | $1,434,114 | 64,163 | ||||||||||||||||||||||
|
|
170 | American Funds Insurance Series |
Table of Contents
Global Balanced Fund
Reinvestments of | Net (decrease) | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Class 1 | $22,993 | 1,858 | $ 446 | 33 | $(24,873 | ) | (2,043 | ) | $ (1,434 | ) | (152) | |||||||||||||||||||||
Class 1A | 28 | 2 | 8 | 1 | (61 | ) | (5 | ) | (25 | ) | (2) | |||||||||||||||||||||
Class 2 | 5,600 | 454 | 676 | 51 | (14,204 | ) | (1,124 | ) | (7,928 | ) | (619) | |||||||||||||||||||||
Class 4 | 5,141 | 401 | 326 | 25 | (4,540 | ) | (365 | ) | 927 | 61 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $33,762 | 2,715 | $ 1,456 | 110 | $(43,678 | ) | (3,537 | ) | $ (8,460 | ) | (712) | |||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $33,769 | 2,618 | $16,934 | 1,287 | $(38,274 | ) | (2,929 | ) | $12,429 | 976 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Bond Fund
| ||||||||||||||||||||||||||||||||
Reinvestments of | Net (decrease) | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Class 1 | $ 732,040 | 63,595 | $ 86,833 | 7,428 | $(1,418,621 | ) | (124,125 | ) | $(599,748 | ) | (53,102) | |||||||||||||||||||||
Class 1A | 1,618 | 142 | 106 | 9 | (988 | ) | (87 | ) | 736 | 64 | ||||||||||||||||||||||
Class 2 | 174,874 | 15,300 | 48,761 | 4,229 | (369,090 | ) | (32,700 | ) | (145,455 | ) | (13,171) | |||||||||||||||||||||
Class 4 | 103,567 | 9,145 | 7,594 | 661 | (58,084 | ) | (5,161 | ) | 53,077 | 4,645 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $1,012,099 | 88,182 | $143,294 | 12,327 | $(1,846,783 | ) | (162,073 | ) | $(691,390 | ) | (61,564) | |||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $ 849,030 | 77,796 | $278,718 | 25,156 | $(1,078,055 | ) | (98,799 | ) | $ 49,693 | 4,153 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Capital World Bond Fund
| ||||||||||||||||||||||||||||||||
Reinvestments of | Net (decrease) | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Class 1 | $168,432 | 14,048 | $20,667 | 1,702 | $(202,146 | ) | (17,074 | ) | $(13,047 | ) | (1,324) | |||||||||||||||||||||
Class 1A | 179 | 15 | 11 | 1 | (58 | ) | (5 | ) | 132 | 11 | ||||||||||||||||||||||
Class 2 | 58,590 | 4,952 | 18,154 | 1,508 | (110,293 | ) | (9,359 | ) | (33,549 | ) | (2,899) | |||||||||||||||||||||
Class 4 | 10,509 | 878 | 948 | 80 | (11,495 | ) | (973 | ) | (38 | ) | (15) | |||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $237,710 | 19,893 | $39,780 | 3,291 | $(323,992 | ) | (27,411 | ) | $(46,502 | ) | (4,227) | |||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
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) | |||||||||||||||||||||
|
|
See end of tables for footnotes.
American Funds Insurance Series | 171 |
Table of Contents
High-Income Bond Fund
Reinvestments of | Net (decrease) | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Class 1 | $14,699 | 1,681 | $ 1,802 | 191 | $(379,982 | ) | (42,604 | ) | $(363,481 | ) | (40,732) | |||||||||||||||||||||
Class 1A | 236 | 26 | 14 | 1 | (50 | ) | (6 | ) | 200 | 21 | ||||||||||||||||||||||
Class 2 | 9,966 | 1,072 | 10,081 | 1,088 | (34,953 | ) | (3,866 | ) | (14,906 | ) | (1,706) | |||||||||||||||||||||
Class 3 | 243 | 26 | 148 | 15 | (807 | ) | (87 | ) | (416 | ) | (46) | |||||||||||||||||||||
Class 4 | 33,852 | 3,350 | 758 | 75 | (44,656 | ) | (4,355 | ) | (10,046 | ) | (930) | |||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $58,996 | 6,155 | $12,803 | 1,370 | $(460,448 | ) | (50,918 | ) | $(388,649 | ) | (43,393) | |||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $84,845 | 8,138 | $78,789 | 8,102 | $(172,073 | ) | (17,068 | ) | $ (8,439 | ) | (828) | |||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Mortgage Fund
| ||||||||||||||||||||||||||||||||
Reinvestments of | Net (decrease) | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Class 1 | $25,935 | 2,378 | $1,109 | 100 | $(55,643 | ) | (5,106 | ) | $(28,599 | ) | (2,628) | |||||||||||||||||||||
Class 1A | 198 | 18 | 3 | – | † | (124 | ) | (11 | ) | 77 | 7 | |||||||||||||||||||||
Class 2 | 3,290 | 303 | 292 | 27 | (6,669 | ) | (610 | ) | (3,087 | ) | (280) | |||||||||||||||||||||
Class 4 | 17,488 | 1,618 | 198 | 18 | (8,470 | ) | (781 | ) | 9,216 | 855 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $46,911 | 4,317 | $1,602 | 145 | $(70,906 | ) | (6,508 | ) | $(22,393 | ) | (2,046) | |||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $48,108 | 4,582 | $7,525 | 714 | $(59,850 | ) | (5,683 | ) | $ (4,217 | ) | (387) | |||||||||||||||||||||
|
|
172 | American Funds Insurance Series |
Table of Contents
Ultra-Short Bond Fund | ||||||||||||||||||||||||||||||||
Sales* | Reinvestments of distributions | Repurchases* | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 |
| |||||||||||||||||||||||||||||||
Class 1 | $ 19,129 | 1,687 | $ 104 | 9 | $ (6,205 | ) | (547 | ) | $ 13,028 | 1,149 | ||||||||||||||||||||||
Class 1A | – | – | – | † | – | † | – | – | – | † | –† | |||||||||||||||||||||
Class 2 | 83,973 | 7,609 | 558 | 51 | (50,003 | ) | (4,532 | ) | 34,528 | 3,128 | ||||||||||||||||||||||
Class 3 | 1,092 | 98 | 8 | 1 | (584 | ) | (52 | ) | 516 | 47 | ||||||||||||||||||||||
Class 4 | 23,847 | 2,138 | 67 | 6 | (12,394 | ) | (1,112 | ) | 11,520 | 1,032 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $128,041 | 11,532 | $ 737 | 67 | $ (69,186 | ) | (6,243 | ) | $ 59,592 | 5,356 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $117,239 | 10,516 | $5,093 | 460 | $(143,860 | ) | (12,905 | ) | $(21,528 | ) | (1,929) | |||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 105,013 | 8,023 | $ 9,624 | 740 | $ | (1,265,074 | ) | (95,013 | ) | $ | (1,150,437 | ) | (86,250) | ||||||||||||||||||
Class 1A | 1,904 | 145 | 89 | 7 | (1,446 | ) | (110 | ) | 547 | 42 | ||||||||||||||||||||||
Class 2 | 81,686 | 6,412 | 33,328 | 2,592 | (213,441 | ) | (16,303 | ) | (98,427 | ) | (7,299) | |||||||||||||||||||||
Class 3 | 1,932 | 149 | 269 | 20 | (985 | ) | (76 | ) | 1,216 | 93 | ||||||||||||||||||||||
Class 4 | 188,266 | 14,581 | 6,004 | 467 | (78,685 | ) | (6,017 | ) | 115,585 | 9,031 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $ | 378,801 | 29,310 | $49,314 | 3,826 | $ | (1,559,631 | ) | (117,519 | ) | $ | (1,131,516 | ) | (84,383) | ||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $ | 240,213 | 19,663 | $60,722 | 4,945 | $ | (368,613 | ) | (30,109 | ) | $ | (67,678 | ) | (5,501) | ||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Managed Risk Growth Fund | ||||||||||||||||||||||||||||||||
Sales* | Reinvestments of distributions | Repurchases* | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Class P1 | $ 3,420 | 245 | $ 439 | 32 | $ (852 | ) | (62 | ) | $ 3,007 | 215 | ||||||||||||||||||||||
Class P2 | 29,202 | 2,123 | 24,835 | 1,827 | (32,980 | ) | (2,378 | ) | 21,057 | 1,572 | ||||||||||||||||||||||
Total net increase (decrease) | $32,622 | 2,368 | $25,274 | 1,859 | $(33,832 | ) | (2,440 | ) | $24,064 | 1,787 | ||||||||||||||||||||||
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 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $50,104 | 3,891 | $30,222 | 2,444 | $(30,978 | ) | (2,377 | ) | $49,348 | 3,958 | ||||||||||||||||||||||
|
|
See end of tables for footnotes.
American Funds Insurance Series | 173 |
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 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Class P1 | $ 903 | 88 | $ 31 | 4 | $ (174 | ) | (17 | ) | $ 760 | 75 | ||||||||||||||||||||||
Class P2 | 14,137 | 1,495 | 3,216 | 348 | (5,382 | ) | (539 | ) | 11,971 | 1,304 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $15,040 | 1,583 | $3,247 | 352 | $(5,556 | ) | (556 | ) | $ 12,731 | 1,379 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
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) | |||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $ 7,608 | 736 | $7,796 | 775 | $(18,529 | ) | (1,787 | ) | $ (3,125 | ) | (276) | |||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Class P1 | $ 525 | 45 | $ 62 | 6 | $ (38) | (3 | ) | $ 549 | 48 | |||||||||||||||||||||||
Class P2 | 19,849 | 1,862 | 16,508 | 1,610 | (11,856) | (1,052 | ) | 24,501 | 2,420 | |||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $20,374 | 1,907 | $16,570 | 1,616 | $(11,894) | (1,055 | ) | $25,050 | 2,468 | |||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $17,065 | 1,494 | $23,415 | 2,133 | $(33,927) | (2,960 | ) | $ 6,553 | 667 | |||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Managed Risk Growth-Income Fund |
| |||||||||||||||||||||||||||||||
Sales* | Reinvestments of distributions | Repurchases* | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Class P1 | $ 32,108 | 2,384 | $132,305 | 10,410 | $ (89,691 | ) | (6,882 | ) | $74,722 | 5,912 | ||||||||||||||||||||||
Class P2 | 12,333 | 929 | 19,381 | 1,533 | (12,105 | ) | (899 | ) | 19,609 | 1,563 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $ 44,441 | 3,313 | $151,686 | 11,943 | $(101,796 | ) | (7,781 | ) | $94,331 | 7,475 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $114,701 | 9,027 | $ 32,440 | 2,507 | $(102,498 | ) | (7,874 | ) | $44,643 | 3,660 | ||||||||||||||||||||||
|
|
174 | American Funds Insurance Series |
Table of Contents
Managed Risk Asset Allocation Fund
Sales* | Reinvestments of distributions | Repurchases* | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 2,240 | 176 | $ | 204 | 17 | $ | (561 | ) | (41 | ) | $ | 1,883 | 152 | ||||||||||||||||||
Class P2 | 42,169 | 3,302 | 146,474 | 12,155 | (133,077 | ) | (10,395 | ) | 55,566 | 5,062 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $ | 44,409 | 3,478 | $ | 146,678 | 12,172 | $ | (133,638 | ) | (10,436 | ) | $ | 57,449 | 5,214 | ||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total net increase (decrease) | $ | 106,665 | 8,276 | $ | 177,811 | 14,385 | $ | (260,747 | ) | (20,248 | ) | $ | 23,729 | 2,413 | ||||||||||||||||||
|
|
*Includes exchanges between share classes of the fund.
†Amount less than one thousand .
American Funds Insurance Series | 175 |
Table of Contents
10. Investment transactions and other disclosures
The following tables present additional information for each of the funds for the six months ended June 30, 2020 (dollars in thousands):
Global Growth Fund | Global Small | Growth Fund | International Fund | New World Fund | Blue Chip Fund | |||||||||||||||||||
Purchases of investment securities* | $534,335 | $922,816 | $3,248,088 | $1,745,943 | $1,807,749 | $2,328,314 | ||||||||||||||||||
Sales of investment securities* | 829,429 | 1,009,463 | 4,901,588 | 2,133,214 | 1,868,740 | 2,400,012 | ||||||||||||||||||
Non-U.S. taxes paid on dividend income | 3,150 | 1,363 | 3,249 | 6,316 | 1,319 | 249 | ||||||||||||||||||
Non-U.S. taxes paid on interest income | – | – | – | – | (4 | ) | – | |||||||||||||||||
Non-U.S. taxes paid on realized gains | – | – | – | – | 550 | – | ||||||||||||||||||
Non-U.S. taxes provided on unrealized gains | 2,859 | 1,040 | – | 7,323 | 6,580 | – | ||||||||||||||||||
Global Growth and Income | Growth- Fund | International and Income Fund | Capital Income Builder | Asset Allocation Fund | Global Fund | |||||||||||||||||||
Purchases of investment securities* | $417,183 | $6,304,391 | $388,541 | $1,037,086 | $13,158,932 | $91,666 | ||||||||||||||||||
Sales of investment securities* | 491,469 | 6,969,380 | 358,483 | 915,970 | 13,037,652 | 107,936 | ||||||||||||||||||
Non-U.S. taxes paid on dividend income | 1,268 | 6,123 | 2,064 | 475 | 3,891 | 160 | ||||||||||||||||||
Non-U.S. taxes paid on interest income | – | – | – | – | – | 10 | ||||||||||||||||||
Non-U.S. taxes paid on realized gains | 179 | 165 | – | 1 | 27 | 3 | ||||||||||||||||||
Non-U.S. taxes provided on unrealized gains | 1,818 | 186 | – | 27 | – | 25 | ||||||||||||||||||
Dividend income from affiliated issuers | – | – | – | – | 2,980 | – | ||||||||||||||||||
U.S. | ||||||||||||||||||||||||
Bond Fund | Capital World Bond Fund | High- Fund | American Funds Mortgage Fund | Ultra-Short Fund | U.S. Government/ AAA-Rated Securities Fund | |||||||||||||||||||
Purchases of investment securities* | $18,899,658 | $1,507,104 | $411,403 | $1,224,594 | $– | $9,526,222 | ||||||||||||||||||
Sales of investment securities* | 18,603,064 | 1,343,214 | 763,140 | 1,175,864 | – | 9,403,975 | ||||||||||||||||||
Non-U.S. taxes paid on interest income | – | 175 | – | – | – | – | ||||||||||||||||||
Non-U.S. taxes paid on realized gains | – | 72 | – | – | – | – | ||||||||||||||||||
Non-U.S. taxes provided on unrealized gains | – | 92 | – | – | – | – | ||||||||||||||||||
Managed Risk Growth | Managed Risk International Fund | Managed and Growth Fund | Managed Growth- Fund | Managed Risk Asset | ||||||||||||||||||||
Purchases of investment securities* | $259,669 | $78,217 | $249,515 | $547,458 | $657,004 | |||||||||||||||||||
Sales of investment securities* | 280,254 | 82,606 | 259,913 | 539,871 | 777,679 | |||||||||||||||||||
Dividend income from affiliated issuers | 1,322 | 367 | 1,501 | 9,310 | 11,742 |
*Excludes short-term securities and U.S. government obligations, if any.
11. Ownership concentration
At June 30, 2020, American Funds Insurance Series - Portfolio Series Managed Risk Growth and Income Portfolio held 33% and 13% 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 25% of the outstanding shares of Global Balanced Fund.
176 | American Funds Insurance Series |
Table of Contents
Financial highlights
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, | Net investment income (loss) | Net gains securities realized and | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset of period | Total return | Net assets, end of period (in millions) | Ratio of to average | Ratio of to average | ||||||||||||||||||||||||||||||||||||
Global Growth Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | $32.57 | $.11 | $1.26 | $ 1.37 | $(.07 | ) | $(.96 | ) | $ (1.03 | ) | $32.91 | 4.22 | %5 | $2,577 | .56 | %6 | .71 | %6 | ||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 32.47 | .07 | 1.27 | 1.34 | (.06 | ) | (.96 | ) | (1.02 | ) | 32.79 | 4.13 | 5 | 7 | .81 | 6 | .44 | 6 | ||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
12/31/20173,7 | 24.50 | .11 | 6.94 | 7.05 | (.25 | ) | (.84 | ) | (1.09 | ) | 30.46 | 29.13 | 5 | 2 | .80 | 6 | .39 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 32.24 | .07 | 1.25 | 1.32 | (.06 | ) | (.96 | ) | (1.02 | ) | 32.54 | 4.10 | 5 | 3,771 | .81 | 6 | .46 | 6 | ||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 32.05 | .03 | 1.25 | 1.28 | (.05 | ) | (.96 | ) | (1.01 | ) | 32.32 | 3.99 | 5 | 402 | 1.06 | 6 | .22 | 6 | ||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | $26.80 | $.02 | $(.88 | ) | $ (.86 | ) | $(.05 | ) | $(1.59 | ) | $(1.64 | ) | $24.30 | (3.18 | )%5 | $1,954 | .75 | %6 | .15 | %6 | ||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 26.74 | (.01 | ) | (.87 | ) | (.88 | ) | (.05 | ) | (1.59 | ) | (1.64 | ) | 24.22 | (3.30 | )5 | 1 | 1.00 | 6 | (.06 | )6 | |||||||||||||||||||||||||||
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 | ) | – | 8 | .98 | .21 | |||||||||||||||||||||||||||||
12/31/20173,7 | 20.70 | .08 | 4.71 | 4.79 | (.13 | ) | – | (.13 | ) | 25.36 | 23.19 | 5 | – | 8 | .96 | 6 | .35 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 26.02 | (.01 | ) | (.85 | ) | (.86 | ) | (.04 | ) | (1.59 | ) | (1.63 | ) | 23.53 | (3.28 | )5 | 2,197 | 1.00 | 6 | (.11 | )6 | |||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 26.16 | (.04 | ) | (.87 | ) | (.91 | ) | (.03 | ) | (1.59 | ) | (1.62 | ) | 23.63 | (3.46 | )5 | 201 | 1.25 | 6 | (.35 | )6 | |||||||||||||||||||||||||||
12/31/2019 | 21.28 | (.01 | ) | 6.47 | 6.46 | – | 9 | (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 | – | 9 | 5.09 | 5.09 | (.09 | ) | – | (.09 | ) | 24.91 | 25.62 | 125 | 1.23 | – | 10 | ||||||||||||||||||||||||||||||||
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 | ) |
See end of tables for footnotes.
American Funds Insurance Series | 177 |
Table of Contents
Financial highlights (continued)
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended
| Net asset
| Net
| Net gains
| Total from
| Dividends
| Distributions
| Total
| Net asset of period
| Total
| Net assets,
| Ratio of
| Ratio of to average
| ||||||||||||||||||||||||||||||||||||
Growth Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | $81.22 | $.22 | $ 9.58 | $ 9.80 | $(.25 | ) | $ (2.18 | ) | $ (2.43 | ) | $88.59 | 12.10 | %5 | $11,854 | .36 | %6 | .54 | %6 | ||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 80.92 | .12 | 9.52 | 9.64 | (.22 | ) | (2.18 | ) | (2.40 | ) | 88.16 | 11.95 | 5 | 26 | .61 | 6 | .30 | 6 | ||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
12/31/20173,7 | 68.84 | .35 | 16.38 | 16.73 | (.50 | ) | (7.33 | ) | (7.83 | ) | 77.74 | 25.47 | 5 | 3 | .59 | 6 | .47 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 80.57 | .12 | 9.50 | 9.62 | (.22 | ) | (2.18 | ) | (2.40 | ) | 87.79 | 11.97 | 5 | 16,504 | .61 | 6 | .29 | 6 | ||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 81.84 | .15 | 9.65 | 9.80 | (.23 | ) | (2.18 | ) | (2.41 | ) | 89.23 | 12.01 | 5 | 225 | .54 | 6 | .36 | 6 | ||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 79.41 | .02 | 9.35 | 9.37 | (.19 | ) | (2.18 | ) | (2.37 | ) | 86.41 | 11.81 | 5 | 1,711 | .86 | 6 | .05 | 6 | ||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
178 | American Funds Insurance Series |
Table of Contents
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended
| Net asset
| Net
| Net gains
| Total from
| Dividends
| Distributions
| Total
| Net asset of period
| Total
| Net assets,
| Ratio of
| Ratio of to average
| ||||||||||||||||||||||||||||||||||||
International Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | $20.86 | $.10 | $(2.44 | ) | $(2.34 | ) | $(.04 | ) | $ – | $ (.04 | ) | $18.48 | (11.20 | )%5 | $4,729 | .55 | %6 | 1.13 | %6 | |||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 20.80 | .08 | (2.43 | ) | (2.35 | ) | (.04 | ) | – | (.04 | ) | 18.41 | (11.32 | )5 | 8 | .80 | 6 | .88 | 6 | |||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
12/31/20173,7 | 17.17 | .09 | 4.93 | 5.02 | (.29 | ) | (.23 | ) | (.52 | ) | 21.67 | 29.46 | 5 | 2 | .77 | 6 | .43 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 20.78 | .08 | (2.43 | ) | (2.35 | ) | (.04 | ) | – | (.04 | ) | 18.39 | (11.33 | )5 | 3,834 | .80 | 6 | .87 | 6 | |||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 20.92 | .09 | (2.45 | ) | (2.36 | ) | (.04 | ) | – | (.04 | ) | 18.52 | (11.30 | )5 | 21 | .73 | 6 | .94 | 6 | |||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 20.54 | .06 | (2.41 | ) | (2.35 | ) | (.03 | ) | – | (.03 | ) | 18.16 | (11.46 | )5 | 341 | 1.05 | 6 | .62 | 6 | |||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
See end of tables for footnotes.
American Funds Insurance Series | 179 |
Table of Contents
Financial highlights (continued)
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||
Period ended
| Net asset
| Net
| Net (losses) gains on
| Total from
| Dividends
| Distributions
| Total
| Net asset of period
| Total
| Net assets,
| Ratio of
| Ratio of assets after
| Ratio of to average
| |||||||||||||||||||||||||||||||||||||||
New World Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | $25.84 | $.09 | $(1.15 | ) | $(1.06 | ) | $(.03 | ) | $ (.27 | ) | $ (.30 | ) | $24.48 | (4.06 | )%5 | $1,892 | .77 | %6 | .71 | %6 | .79 | %6 | ||||||||||||||||||||||||||||||
12/31/2019 | 20.98 | .28 | 5.79 | 6.07 | (.29 | ) | (.92 | ) | (1.21 | ) | 25.84 | 29.47 | 2,129 | .76 | .76 | 1.18 | ||||||||||||||||||||||||||||||||||||
12/31/2018 | 25.30 | .27 | (3.65 | ) | (3.38 | ) | (.27 | ) | (.67 | ) | (.94 | ) | 20.98 | (13.83 | ) | 1,702 | .77 | .77 | 1.11 | |||||||||||||||||||||||||||||||||
12/31/2017 | 19.72 | .26 | 5.59 | 5.85 | (.27 | ) | – | (.27 | ) | 25.30 | 29.73 | 2,050 | .77 | .77 | 1.14 | |||||||||||||||||||||||||||||||||||||
12/31/2016 | 18.87 | .24 | .81 | 1.05 | (.20 | ) | – | (.20 | ) | 19.72 | 5.59 | 1,743 | .78 | .78 | 1.25 | |||||||||||||||||||||||||||||||||||||
12/31/2015 | 20.72 | .19 | (.71 | ) | (.52 | ) | (.17 | ) | (1.16 | ) | (1.33 | ) | 18.87 | (2.96 | ) | 1,562 | .79 | .79 | .92 | |||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 25.74 | .07 | (1.15 | ) | (1.08 | ) | (.02 | ) | (.27 | ) | (.29 | ) | 24.37 | (4.18 | )5 | 6 | 1.02 | 6 | .95 | 6 | .62 | 6 | ||||||||||||||||||||||||||||||
12/31/2019 | 20.92 | .22 | 5.76 | 5.98 | (.24 | ) | (.92 | ) | (1.16 | ) | 25.74 | 29.11 | 4 | 1.01 | 1.01 | .92 | ||||||||||||||||||||||||||||||||||||
12/31/2018 | 25.25 | .21 | (3.64 | ) | (3.43 | ) | (.23 | ) | (.67 | ) | (.90 | ) | 20.92 | (14.02 | ) | 2 | 1.02 | 1.02 | .91 | |||||||||||||||||||||||||||||||||
12/31/20173,7 | 20.14 | .13 | 5.24 | 5.37 | (.26 | ) | – | (.26 | ) | 25.25 | 26.72 | 5 | 1 | 1.00 | 6 | 1.00 | 6 | .53 | 6 | |||||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 25.59 | .06 | (1.13 | ) | (1.07 | ) | (.02 | ) | (.27 | ) | (.29 | ) | 24.23 | (4.18 | )5 | 902 | 1.02 | 6 | .96 | 6 | .55 | 6 | ||||||||||||||||||||||||||||||
12/31/2019 | 20.79 | .22 | 5.73 | 5.95 | (.23 | ) | (.92 | ) | (1.15 | ) | 25.59 | 29.15 | 981 | 1.01 | 1.01 | .93 | ||||||||||||||||||||||||||||||||||||
12/31/2018 | 25.07 | .20 | (3.61 | ) | (3.41 | ) | (.20 | ) | (.67 | ) | (.87 | ) | 20.79 | (14.04 | ) | 843 | 1.02 | 1.02 | .85 | |||||||||||||||||||||||||||||||||
12/31/2017 | 19.54 | .20 | 5.55 | 5.75 | (.22 | ) | – | (.22 | ) | 25.07 | 29.44 | 1,055 | 1.02 | 1.02 | .89 | |||||||||||||||||||||||||||||||||||||
12/31/2016 | 18.71 | .19 | .79 | .98 | (.15 | ) | – | (.15 | ) | 19.54 | 5.26 | 911 | 1.03 | 1.03 | 1.00 | |||||||||||||||||||||||||||||||||||||
12/31/2015 | 20.54 | .14 | (.69 | ) | (.55 | ) | (.12 | ) | (1.16 | ) | (1.28 | ) | 18.71 | (3.14 | ) | 961 | 1.04 | 1.04 | .68 | |||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 25.47 | .04 | (1.14 | ) | (1.10 | ) | (.01 | ) | (.27 | ) | (.28 | ) | 24.09 | (4.31 | )5 | 644 | 1.27 | 6 | 1.21 | 6 | .31 | 6 | ||||||||||||||||||||||||||||||
12/31/2019 | 20.71 | .16 | 5.70 | 5.86 | (.18 | ) | (.92 | ) | (1.10 | ) | 25.47 | 28.82 | 646 | 1.26 | 1.26 | .67 | ||||||||||||||||||||||||||||||||||||
12/31/2018 | 24.99 | .14 | (3.59 | ) | (3.45 | ) | (.16 | ) | (.67 | ) | (.83 | ) | 20.71 | (14.25 | ) | 464 | 1.27 | 1.27 | .61 | |||||||||||||||||||||||||||||||||
12/31/2017 | 19.51 | .14 | 5.52 | 5.66 | (.18 | ) | – | (.18 | ) | 24.99 | 29.06 | 427 | 1.27 | 1.27 | .61 | |||||||||||||||||||||||||||||||||||||
12/31/2016 | 18.69 | .14 | .80 | .94 | (.12 | ) | – | (.12 | ) | 19.51 | 5.04 | 240 | 1.28 | 1.28 | .75 | |||||||||||||||||||||||||||||||||||||
12/31/2015 | 20.56 | .08 | (.68 | ) | (.60 | ) | (.11 | ) | (1.16 | ) | (1.27 | ) | 18.69 | (3.37 | ) | 171 | 1.29 | 1.29 | .39 | |||||||||||||||||||||||||||||||||
180 | American Funds Insurance Series |
Table of Contents
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended
| Net asset
| Net
| Net gains
| Total from
| Dividends
| Distributions
| Total
| Net asset of period
| Total
| Net assets,
| Ratio of
| Ratio of to average
| ||||||||||||||||||||||||||||||||||||
Blue Chip Income and Growth Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | $13.56 | $.13 | $(1.24 | ) | $(1.11 | ) | $(.06 | ) | $ (.15 | ) | $ (.21 | ) | $12.24 | (8.27 | )%5 | $5,013 | .43 | %6 | 2.06 | %6 | ||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 13.51 | .11 | (1.24 | ) | (1.13 | ) | (.05 | ) | (.15 | ) | (.20 | ) | 12.18 | (8.40 | )5 | 12 | .68 | 6 | 1.84 | 6 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
12/31/20173,7 | 13.75 | .28 | 1.75 | 2.03 | (.31 | ) | (.53 | ) | (.84 | ) | 14.94 | 15.21 | 5 | 1 | .65 | 6 | 2.01 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 13.39 | .11 | (1.23 | ) | (1.12 | ) | (.05 | ) | (.15 | ) | (.20 | ) | 12.07 | (8.41 | )5 | 2,750 | .68 | 6 | 1.81 | 6 | ||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 13.31 | .09 | (1.21 | ) | (1.12 | ) | (.05 | ) | (.15 | ) | (.20 | ) | 11.99 | (8.49 | )5 | 641 | .93 | 6 | 1.57 | 6 | ||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | $15.92 | $.11 | $(1.87 | ) | $(1.76 | ) | $(.05 | ) | $ (.38 | ) | $ (.43 | ) | $13.73 | (11.08 | )%5 | $595 | .65 | %6 | 1.57 | %6 | ||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 15.88 | .09 | (1.85 | ) | (1.76 | ) | (.05 | ) | (.38 | ) | (.43 | ) | 13.69 | (11.20 | )5 | 2 | .90 | 6 | 1.32 | 6 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
12/31/20173,7 | 13.21 | .18 | 3.03 | 3.21 | (.35 | ) | (.26 | ) | (.61 | ) | 15.81 | 24.54 | 5 | – | 8 | .84 | 6 | 1.20 | 6 | |||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 15.89 | .09 | (1.85 | ) | (1.76 | ) | (.05 | ) | (.38 | ) | (.43 | ) | 13.70 | (11.20 | )5 | 1,185 | .90 | 6 | 1.30 | 6 | ||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 15.63 | .07 | (1.82 | ) | (1.75 | ) | (.04 | ) | (.38 | ) | (.42 | ) | 13.46 | (11.29 | )5 | 133 | 1.15 | 6 | 1.05 | 6 | ||||||||||||||||||||||||||||
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 | 181 |
Table of Contents
Financial highlights (continued)
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended
| Net asset
| Net
| Net gains
| Total from
| Dividends
| Distributions
| Total
| Net asset of period
| Total
| Net assets,
| Ratio of
| Ratio of to average
| ||||||||||||||||||||||||||||||||||||
Growth-Income Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | $50.71 | $ .38 | $ (2.17 | ) | $(1.79 | ) | $(.22 | ) | $(1.30 | ) | $(1.52 | ) | $47.40 | (3.62 | )%5 | $20,113 | .29 | %6 | 1.61 | %6 | ||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 50.54 | .32 | (2.16 | ) | (1.84 | ) | (.20 | ) | (1.30 | ) | (1.50 | ) | 47.20 | (3.73 | )5 | 11 | .54 | 6 | 1.36 | 6 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
12/31/20173,7 | 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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 50.08 | .31 | (2.13 | ) | (1.82 | ) | (.20 | ) | (1.30 | ) | (1.50 | ) | 46.76 | (3.73 | )5 | 12,504 | .54 | 6 | 1.36 | 6 | ||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 50.81 | .33 | (2.17 | ) | (1.84 | ) | (.20 | ) | (1.30 | ) | (1.50 | ) | 47.47 | (3.70 | )5 | 142 | .47 | 6 | 1.43 | 6 | ||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 49.52 | .25 | (2.12 | ) | (1.87 | ) | (.18 | ) | (1.30 | ) | (1.48 | ) | 46.17 | (3.86 | )5 | 1,184 | .79 | 6 | 1.11 | 6 | ||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
182 | American Funds Insurance Series |
Table of Contents
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended
| Net asset
| Net
| Net gains
| Total from
| Dividends
| Distributions
| Total
| Net asset of period
| Total
| Net assets,
| Ratio of
| Ratio of to average
| ||||||||||||||||||||||||||||||||||||
International Growth and Income Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | $18.18 | $.17 | $(2.91 | ) | $(2.74 | ) | $(.04 | ) | $ – | $(.04 | ) | $15.40 | (15.08 | )%5 | $1,019 | .68 | %6 | 2.24 | %6 | |||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 18.15 | .15 | (2.91 | ) | (2.76 | ) | (.03 | ) | – | (.03 | ) | 15.36 | (15.19 | )5 | 2 | .93 | 6 | 1.92 | 6 | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
12/31/20173,7 | 14.69 | .34 | 3.08 | 3.42 | (.41 | ) | – | (.41 | ) | 17.70 | 23.36 | 5 | 2 | .91 | 6 | 1.99 | 6 | |||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 18.12 | .15 | (2.90 | ) | (2.75 | ) | (.03 | ) | – | (.03 | ) | 15.34 | (15.17 | )5 | 190 | .93 | 6 | 1.93 | 6 | |||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 18.01 | .13 | (2.88 | ) | (2.75 | ) | (.03 | ) | – | (.03 | ) | 15.23 | (15.29 | )5 | 90 | 1.18 | 6 | 1.73 | 6 | |||||||||||||||||||||||||||||
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 |
See end of tables for footnotes.
American Funds Insurance Series | 183 |
Table of Contents
Financial highlights (continued)
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||
Period ended
| Net asset
| Net
| Net gains
| Total from
| Dividends
| Distributions
| Total
| Net asset of period
| Total
| Net assets, period (in millions)
| Ratio of assets before
| Ratio of assets after
| Ratio of to average
| |||||||||||||||||||||||||||||||||||||||
Capital Income Builder |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | $10.73 | $.15 | $ (.83 | ) | $ (.68 | ) | $(.16 | ) | $ – | $(.16 | ) | $ 9.89 | (6.23 | )%5 | $531 | .53 | %6 | .44 | %6 | 2.97 | %6 | |||||||||||||||||||||||||||||||
12/31/2019 | 9.37 | .32 | 1.36 | 1.68 | (.32 | ) | – | (.32 | ) | 10.73 | 18.16 | 533 | .53 | .53 | 3.17 | |||||||||||||||||||||||||||||||||||||
12/31/2018 | 10.40 | .31 | (1.00 | ) | (.69 | ) | (.32 | ) | (.02 | ) | (.34 | ) | 9.37 | (6.77 | ) | 317 | .54 | .54 | 3.08 | |||||||||||||||||||||||||||||||||
12/31/2017 | 9.46 | .32 | .93 | 1.25 | (.31 | ) | – | (.31 | ) | 10.40 | 13.29 | 254 | .54 | .54 | 3.21 | |||||||||||||||||||||||||||||||||||||
12/31/2016 | 9.40 | .32 | .07 | .39 | (.33 | ) | – | (.33 | ) | 9.46 | 4.17 | 156 | .54 | .54 | 3.39 | |||||||||||||||||||||||||||||||||||||
12/31/2015 | 9.81 | .28 | (.40 | ) | (.12 | ) | (.29 | ) | – | (.29 | ) | 9.40 | (1.23 | ) | 80 | .56 | .56 | 2.88 | ||||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 10.72 | .13 | (.82 | ) | (.69 | ) | (.15 | ) | – | (.15 | ) | 9.88 | (6.36 | )5 | 5 | .78 | 6 | .69 | 6 | 2.70 | 6 | |||||||||||||||||||||||||||||||
12/31/2019 | 9.36 | .29 | 1.37 | 1.66 | (.30 | ) | – | (.30 | ) | 10.72 | 17.90 | 6 | .78 | .78 | 2.84 | |||||||||||||||||||||||||||||||||||||
12/31/2018 | 10.39 | .28 | (.99 | ) | (.71 | ) | (.30 | ) | (.02 | ) | (.32 | ) | 9.36 | (7.01 | ) | 2 | .79 | .79 | 2.82 | |||||||||||||||||||||||||||||||||
12/31/20173,7 | 9.57 | .27 | .84 | 1.11 | (.29 | ) | – | (.29 | ) | 10.39 | 11.72 | 5 | 1 | .79 | 6 | .79 | 6 | 2.63 | 6 | |||||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 10.72 | .13 | (.82 | ) | (.69 | ) | (.15 | ) | – | (.15 | ) | 9.88 | (6.36 | )5 | 6 | .78 | 6 | .69 | 6 | 2.72 | 6 | |||||||||||||||||||||||||||||||
12/31/2019 | 9.36 | .30 | 1.35 | 1.65 | (.29 | ) | – | (.29 | ) | 10.72 | 17.89 | 6 | .78 | .78 | 2.91 | |||||||||||||||||||||||||||||||||||||
12/31/2018 | 10.40 | .28 | (1.00 | ) | (.72 | ) | (.30 | ) | (.02 | ) | (.32 | ) | 9.36 | (7.08 | ) | 4 | .79 | .79 | 2.83 | |||||||||||||||||||||||||||||||||
12/31/2017 | 9.46 | .29 | .93 | 1.22 | (.28 | ) | – | (.28 | ) | 10.40 | 13.04 | 1 | .79 | .79 | 2.82 | |||||||||||||||||||||||||||||||||||||
12/31/2016 | 9.40 | .27 | .11 | .38 | (.32 | ) | – | (.32 | ) | 9.46 | 4.08 | – | 8 | .80 | .80 | 2.82 | ||||||||||||||||||||||||||||||||||||
12/31/2015 | 9.81 | .31 | (.43 | ) | (.12 | ) | (.29 | ) | – | (.29 | ) | 9.40 | (1.23 | )11 | – | 8 | .46 | 11 | .46 | 11 | 3.12 | 11 | ||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 10.71 | .12 | (.82 | ) | (.70 | ) | (.14 | ) | – | (.14 | ) | 9.87 | (6.49 | )5 | 419 | 1.03 | 6 | .94 | 6 | 2.44 | 6 | |||||||||||||||||||||||||||||||
12/31/2019 | 9.35 | .27 | 1.36 | 1.63 | (.27 | ) | – | (.27 | ) | 10.71 | 17.62 | 454 | 1.03 | 1.03 | 2.68 | |||||||||||||||||||||||||||||||||||||
12/31/2018 | 10.38 | .26 | (1.00 | ) | (.74 | ) | (.27 | ) | (.02 | ) | (.29 | ) | 9.35 | (7.25 | ) | 352 | 1.04 | 1.04 | 2.58 | |||||||||||||||||||||||||||||||||
12/31/2017 | 9.45 | .27 | .92 | 1.19 | (.26 | ) | – | (.26 | ) | 10.38 | 12.65 | 338 | 1.04 | 1.04 | 2.72 | |||||||||||||||||||||||||||||||||||||
12/31/2016 | 9.38 | .27 | .08 | .35 | (.28 | ) | – | (.28 | ) | 9.45 | 3.78 | 256 | 1.04 | 1.04 | 2.88 | |||||||||||||||||||||||||||||||||||||
12/31/2015 | 9.80 | .25 | (.42 | ) | (.17 | ) | (.25 | ) | – | (.25 | ) | 9.38 | (1.79 | ) | 157 | 1.05 | 1.05 | 2.55 |
184 | American Funds Insurance Series |
Table of Contents
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended
| Net asset
| Net
| Net gains
| Total from
| Dividends
| Distributions
| Total
| Net asset of period
| Total
| Net assets,
| Ratio of
| Ratio of to average
| ||||||||||||||||||||||||||||||||||||
Asset Allocation Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | $24.05 | $.22 | $ (.57 | ) | $ (.35 | ) | $ (.11 | ) | $ (.11 | ) | $ (.22 | ) | $23.48 | (1.47 | )%5 | $17,061 | .30 | %6 | 1.89 | %6 | ||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 23.99 | .19 | (.56 | ) | (.37 | ) | (.10 | ) | (.11 | ) | (.21 | ) | 23.41 | (1.55 | )5 | 11 | .55 | 6 | 1.64 | 6 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
12/31/20173,7 | 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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 23.79 | .18 | (.55 | ) | (.37 | ) | (.10 | ) | (.11 | ) | (.21 | ) | 23.21 | (1.57 | )5 | 4,808 | .55 | 6 | 1.63 | 6 | ||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 24.08 | .19 | (.56 | ) | (.37 | ) | (.10 | ) | (.11 | ) | (.21 | ) | 23.50 | (1.54 | )5 | 31 | .48 | 6 | 1.70 | 6 | ||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 23.67 | .16 | (.56 | ) | (.40 | ) | (.09 | ) | (.11 | ) | (.20 | ) | 23.07 | (1.70 | )5 | 4,488 | .80 | 6 | 1.39 | 6 | ||||||||||||||||||||||||||||
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 | 185 |
Table of Contents
Financial highlights (continued)
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended
| Net asset
| Net
| Net gains
| Total from
| Dividends
| Distributions
| Total
| Net asset of period
| Total
| Net assets,
| Ratio of
| Ratio of to average
| ||||||||||||||||||||||||||||||||||||
Global Balanced Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | $13.51 | $.09 | $ (.47 | ) | $ (.38 | ) | $ – | 9 | $(.05 | ) | $(.05 | ) | $13.08 | (2.85 | )%5 | $127 | .71 | %6 | 1.49 | %6 | ||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 13.49 | .08 | (.48 | ) | (.40 | ) | – | 9 | (.05 | ) | (.05 | ) | 13.04 | (3.00 | )5 | 2 | .96 | 6 | 1.23 | 6 | ||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
12/31/20173,7 | 11.18 | .16 | 1.92 | 2.08 | (.14 | ) | (.38 | ) | (.52 | ) | 12.74 | 18.71 | 5 | – | 8 | .94 | 6 | 1.27 | 6 | |||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 13.48 | .08 | (.47 | ) | (.39 | ) | – | 9 | (.05 | ) | (.05 | ) | 13.04 | (2.93 | )5 | 192 | .96 | 6 | 1.23 | 6 | ||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 13.36 | .06 | (.47 | ) | (.41 | ) | – | 9 | (.05 | ) | (.05 | ) | 12.90 | (3.11 | )5 | 92 | 1.21 | 6 | .98 | 6 | ||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | $11.17 | $.12 | $ .61 | $ .73 | $(.05 | ) | $(.11 | ) | $(.16 | ) | $11.74 | 6.61 | %5 | $6,193 | .40 | %6 | 2.17 | %6 | ||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 11.13 | .11 | .61 | .72 | (.05 | ) | (.11 | ) | (.16 | ) | 11.69 | 6.51 | 5 | 8 | .65 | 6 | 1.91 | 6 | ||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
12/31/20173,7 | 10.82 | .22 | .15 | .37 | (.23 | ) | (.16 | ) | (.39 | ) | 10.80 | 3.46 | 5 | 1 | .62 | 6 | 2.01 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 11.02 | .11 | .61 | .72 | (.05 | ) | (.11 | ) | (.16 | ) | 11.58 | 6.56 | 5 | 3,589 | .65 | 6 | 1.92 | 6 | ||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 11.00 | .09 | .61 | .70 | (.05 | ) | (.11 | ) | (.16 | ) | 11.54 | 6.36 | 5 | 580 | .90 | 6 | 1.66 | 6 | ||||||||||||||||||||||||||||||
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 |
186 | American Funds Insurance Series |
Table of Contents
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||
Period ended
| Net asset
| Net
| Net gains
| Total from
| Dividends
| Distributions
| Total
| Net asset of period
| Total
| Net assets,
| Ratio of assets before
| Ratio of average net assets after waivers2
| Ratio of to average
| |||||||||||||||||||||||||||||||||||||||
Capital World Bond Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | $12.12 | $.12 | $ .14 | $ .26 | $(.03 | ) | $(.21 | ) | $(.24 | ) | $12.14 | 2.14 | %5 | $1,063 | .59 | %6 | .55 | %6 | 2.09 | %6 | ||||||||||||||||||||||||||||||||
12/31/2019 | 11.42 | .31 | .61 | .92 | (.22 | ) | – | (.22 | ) | 12.12 | 8.08 | 1,077 | .58 | .58 | 2.60 | |||||||||||||||||||||||||||||||||||||
12/31/2018 | 11.88 | .30 | (.44 | ) | (.14 | ) | (.28 | ) | (.04 | ) | (.32 | ) | 11.42 | (1.14 | ) | 1,015 | .57 | .57 | 2.56 | |||||||||||||||||||||||||||||||||
12/31/2017 | 11.22 | .28 | .52 | .80 | (.07 | ) | (.07 | ) | (.14 | ) | 11.88 | 7.11 | 1,273 | .56 | .56 | 2.37 | ||||||||||||||||||||||||||||||||||||
12/31/2016 | 11.01 | .26 | .06 | .32 | (.09 | ) | (.02 | ) | (.11 | ) | 11.22 | 2.92 | 1,115 | .57 | .57 | 2.26 | ||||||||||||||||||||||||||||||||||||
12/31/2015 | 11.77 | .27 | (.71 | ) | (.44 | ) | (.01 | ) | (.31 | ) | (.32 | ) | 11.01 | (3.75 | ) | 1,032 | .57 | .57 | 2.34 | |||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 12.10 | .11 | .13 | .24 | (.02 | ) | (.21 | ) | (.23 | ) | 12.11 | 2.03 | 5 | 1 | .83 | 6 | .80 | 6 | 1.84 | 6 | ||||||||||||||||||||||||||||||||
12/31/2019 | 11.41 | .28 | .60 | .88 | (.19 | ) | – | (.19 | ) | 12.10 | 7.75 | 1 | .83 | .83 | 2.35 | |||||||||||||||||||||||||||||||||||||
12/31/2018 | 11.87 | .27 | (.43 | ) | (.16 | ) | (.26 | ) | (.04 | ) | (.30 | ) | 11.41 | (1.29 | ) | 1 | .82 | .82 | 2.36 | |||||||||||||||||||||||||||||||||
12/31/20173,7 | 11.22 | .26 | .52 | .78 | (.06 | ) | (.07 | ) | (.13 | ) | 11.87 | 7.00 | 5 | – | 8 | .72 | 6 | .72 | 6 | 2.27 | 6 | |||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 12.03 | .11 | .13 | .24 | (.02 | ) | (.21 | ) | (.23 | ) | 12.04 | 2.03 | 5 | 968 | .84 | 6 | .80 | 6 | 1.84 | 6 | ||||||||||||||||||||||||||||||||
12/31/2019 | 11.34 | .28 | .60 | .88 | (.19 | ) | – | (.19 | ) | 12.03 | 7.77 | 1,002 | .83 | .83 | 2.35 | |||||||||||||||||||||||||||||||||||||
12/31/2018 | 11.79 | .27 | (.43 | ) | (.16 | ) | (.25 | ) | (.04 | ) | (.29 | ) | 11.34 | (1.33 | ) | 1,032 | .82 | .82 | 2.32 | |||||||||||||||||||||||||||||||||
12/31/2017 | 11.14 | .25 | .51 | .76 | (.04 | ) | (.07 | ) | (.11 | ) | 11.79 | 6.86 | 1,164 | .81 | .81 | 2.12 | ||||||||||||||||||||||||||||||||||||
12/31/2016 | 10.93 | .23 | .07 | .30 | (.07 | ) | (.02 | ) | (.09 | ) | 11.14 | 2.71 | 1,121 | .82 | .82 | 2.01 | ||||||||||||||||||||||||||||||||||||
12/31/2015 | 11.72 | .24 | (.71 | ) | (.47 | ) | (.01 | ) | (.31 | ) | (.32 | ) | 10.93 | (4.07 | ) | 1,208 | .82 | .82 | 2.09 | |||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 11.92 | .09 | .14 | .23 | (.02 | ) | (.21 | ) | (.23 | ) | 11.92 | 1.93 | 5 | 49 | 1.09 | 6 | 1.05 | 6 | 1.59 | 6 | ||||||||||||||||||||||||||||||||
12/31/2019 | 11.24 | .24 | .60 | .84 | (.16 | ) | – | (.16 | ) | 11.92 | 7.54 | 49 | 1.08 | 1.08 | 2.09 | |||||||||||||||||||||||||||||||||||||
12/31/2018 | 11.70 | .24 | (.43 | ) | (.19 | ) | (.23 | ) | (.04 | ) | (.27 | ) | 11.24 | (1.61 | ) | 40 | 1.07 | 1.07 | 2.09 | |||||||||||||||||||||||||||||||||
12/31/2017 | 11.08 | .22 | .51 | .73 | (.04 | ) | (.07 | ) | (.11 | ) | 11.70 | 6.63 | 31 | 1.06 | 1.06 | 1.89 | ||||||||||||||||||||||||||||||||||||
12/31/2016 | 10.89 | .20 | .06 | .26 | (.05 | ) | (.02 | ) | (.07 | ) | 11.08 | 2.42 | 12 | 1.07 | 1.07 | 1.76 | ||||||||||||||||||||||||||||||||||||
12/31/2015 | 11.70 | .21 | (.71 | ) | (.50 | ) | – | 9 | (.31 | ) | (.31 | ) | 10.89 | (4.27 | ) | 6 | 1.07 | 1.07 | 1.86 |
See end of tables for footnotes.
American Funds Insurance Series | 187 |
Table of Contents
Financial highlights (continued)
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended
| Net asset
| Net
| Net gains
| Total from
| Dividends
| Distributions
| Total
| Net asset of period
| Total
| Net assets,
| Ratio of
| Ratio of to average
| ||||||||||||||||||||||||||||||||||||
High-Income Bond Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | $9.87 | $.31 | $ (.77 | ) | $ (.46 | ) | $(.16 | ) | $– | $(.16 | ) | $ 9.25 | (4.74 | )%5 | $ 115 | .52 | %6 | 6.73 | %6 | |||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 9.86 | .30 | (.78 | ) | (.48 | ) | (.15 | ) | – | (.15 | ) | 9.23 | (4.86 | )5 | 1 | .77 | 6 | 6.39 | 6 | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
12/31/20173,7 | 10.28 | .60 | .02 | .62 | (.72 | ) | – | (.72 | ) | 10.18 | 6.02 | 5 | – | 8 | .72 | 6 | 5.74 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 9.70 | .29 | (.76 | ) | (.47 | ) | (.15 | ) | – | (.15 | ) | 9.08 | (4.85 | )5 | 609 | .77 | 6 | 6.39 | 6 | |||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 9.92 | .30 | (.78 | ) | (.48 | ) | (.15 | ) | – | (.15 | ) | 9.29 | (4.83 | )5 | 9 | .70 | 6 | 6.46 | 6 | |||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 10.56 | .30 | (.81 | ) | (.51 | ) | (.15 | ) | – | (.15 | ) | 9.90 | (4.89 | )5 | 50 | 1.02 | 6 | 6.12 | 6 | |||||||||||||||||||||||||||||
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 |
188 | American Funds Insurance Series |
Table of Contents
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||
Period ended
| Net asset
| Net
| Net gains
| Total from
| Dividends
| Distributions
| Total
| Net asset of period
| Total
| Net assets,
| Ratio of
| Ratio of assets after
| Ratio of to average
| |||||||||||||||||||||||||||||||||||||||
American Funds Mortgage Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | $10.56 | $.07 | $.54 | $.61 | $(.04 | ) | $(.02 | ) | $(.06 | ) | $11.11 | 5.81 | %5 | $192 | .46 | %6 | .40 | %6 | 1.25 | %6 | ||||||||||||||||||||||||||||||||
12/31/2019 | 10.30 | .24 | .30 | .54 | (.28 | ) | – | (.28 | ) | 10.56 | 5.30 | 210 | .47 | .47 | 2.26 | |||||||||||||||||||||||||||||||||||||
12/31/2018 | 10.47 | .20 | (.14 | ) | .06 | (.23 | ) | – | (.23 | ) | 10.30 | .58 | 209 | .48 | .48 | 1.97 | ||||||||||||||||||||||||||||||||||||
12/31/2017 | 10.56 | .16 | – | 9 | .16 | (.18 | ) | (.07 | ) | (.25 | ) | 10.47 | 1.47 | 265 | .47 | .47 | 1.52 | |||||||||||||||||||||||||||||||||||
12/31/2016 | 10.61 | .15 | .11 | .26 | (.20 | ) | (.11 | ) | (.31 | ) | 10.56 | 2.50 | 269 | .46 | .46 | 1.39 | ||||||||||||||||||||||||||||||||||||
12/31/2015 | 10.70 | .10 | .13 | .23 | (.18 | ) | (.14 | ) | (.32 | ) | 10.61 | 2.09 | 272 | .45 | .45 | .89 | ||||||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 10.55 | .05 | .54 | .59 | (.04 | ) | (.02 | ) | (.06 | ) | 11.08 | 5.59 | 5 | 1 | .71 | 6 | .65 | 6 | .99 | 6 | ||||||||||||||||||||||||||||||||
12/31/2019 | 10.28 | .22 | .30 | .52 | (.25 | ) | – | (.25 | ) | 10.55 | 5.09 | 1 | .71 | .71 | 2.04 | |||||||||||||||||||||||||||||||||||||
12/31/2018 | 10.46 | .18 | (.14 | ) | .04 | (.22 | ) | – | (.22 | ) | 10.28 | .36 | 1 | .73 | .73 | 1.77 | ||||||||||||||||||||||||||||||||||||
12/31/20173,7 | 10.55 | .14 | – | 9 | .14 | (.16 | ) | (.07 | ) | (.23 | ) | 10.46 | 1.31 | 5 | – | 8 | .70 | 6 | .70 | 6 | 1.38 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 10.54 | .05 | .55 | .60 | (.04 | ) | (.02 | ) | (.06 | ) | 11.08 | 5.68 | 5 | 56 | .71 | 6 | .65 | 6 | .99 | 6 | ||||||||||||||||||||||||||||||||
12/31/2019 | 10.28 | .21 | .31 | .52 | (.26 | ) | – | (.26 | ) | 10.54 | 5.04 | 56 | .72 | .72 | 2.01 | |||||||||||||||||||||||||||||||||||||
12/31/2018 | 10.45 | .18 | (.15 | ) | .03 | (.20 | ) | – | (.20 | ) | 10.28 | .32 | 57 | .73 | .73 | 1.72 | ||||||||||||||||||||||||||||||||||||
12/31/2017 | 10.54 | .14 | (.01 | ) | .13 | (.15 | ) | (.07 | ) | (.22 | ) | 10.45 | 1.22 | 63 | .72 | .72 | 1.27 | |||||||||||||||||||||||||||||||||||
12/31/2016 | 10.59 | .12 | .12 | .24 | (.18 | ) | (.11 | ) | (.29 | ) | 10.54 | 2.25 | 63 | .71 | .71 | 1.14 | ||||||||||||||||||||||||||||||||||||
12/31/2015 | 10.68 | .07 | .13 | .20 | (.15 | ) | (.14 | ) | (.29 | ) | 10.59 | 1.86 | 59 | .70 | .70 | .65 | ||||||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 10.44 | .04 | .54 | .58 | (.04 | ) | (.02 | ) | (.06 | ) | 10.96 | 5.53 | 5 | 38 | .96 | 6 | .89 | 6 | .70 | 6 | ||||||||||||||||||||||||||||||||
12/31/2019 | 10.19 | .18 | .31 | .49 | (.24 | ) | – | (.24 | ) | 10.44 | 4.80 | 28 | .97 | .97 | 1.71 | |||||||||||||||||||||||||||||||||||||
12/31/2018 | 10.38 | .15 | (.15 | ) | – | 9 | (.19 | ) | – | (.19 | ) | 10.19 | .07 | 24 | .98 | .98 | 1.49 | |||||||||||||||||||||||||||||||||||
12/31/2017 | 10.48 | .11 | – | 9 | .11 | (.14 | ) | (.07 | ) | (.21 | ) | 10.38 | .97 | 12 | .97 | .97 | 1.03 | |||||||||||||||||||||||||||||||||||
12/31/2016 | 10.52 | .09 | .12 | .21 | (.14 | ) | (.11 | ) | (.25 | ) | 10.48 | 2.01 | 8 | .96 | .96 | .86 | ||||||||||||||||||||||||||||||||||||
12/31/2015 | 10.65 | .04 | .14 | .18 | (.17 | ) | (.14 | ) | (.31 | ) | 10.52 | 1.62 | 11 | .97 | .97 | .37 |
See end of tables for footnotes.
American Funds Insurance Series | 189 |
Table of Contents
Financial highlights (continued)
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended
| Net asset
| Net
| Net gains
| Total from
| Dividends
| Distributions
| Total
| Net asset of period
| Total
| Net assets,
| Ratio of
| Ratio of to average
| ||||||||||||||||||||||||||||||||||||
Ultra-Short Bond Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | $11.30 | $ .04 | $ .01 | $ .05 | $(.03 | ) | $– | $(.03 | ) | $11.32 | .43 | %5 | $42 | .36 | %6 | .64 | %6 | |||||||||||||||||||||||||||||||
12/31/2019 | 11.31 | .22 | – | 9 | .22 | (.23 | ) | – | (.23 | ) | 11.30 | 1.92 | 30 | .36 | 1.92 | |||||||||||||||||||||||||||||||||
12/31/2018 | 11.29 | .18 | – | 9 | .18 | (.16 | ) | – | (.16 | ) | 11.31 | 1.58 | 37 | .35 | 1.60 | |||||||||||||||||||||||||||||||||
12/31/2017 | 11.27 | .08 | (.01 | ) | .07 | (.05 | ) | – | (.05 | ) | 11.29 | .66 | 37 | .35 | .68 | |||||||||||||||||||||||||||||||||
12/31/201612 | 11.26 | .01 | – | 9 | .01 | – | – | – | 11.27 | .09 | 37 | .35 | .11 | |||||||||||||||||||||||||||||||||||
12/31/2015 | 11.28 | (.03 | ) | .01 | (.02 | ) | – | – | – | 11.26 | (.18 | ) | 39 | .34 | (.24 | ) | ||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 11.30 | .04 | .01 | .05 | (.03 | ) | – | (.03 | ) | 11.32 | .41 | 5,11 | – | 8 | .33 | 6,11 | .76 | 6,11 | ||||||||||||||||||||||||||||||
12/31/2019 | 11.31 | .22 | – | 9 | .22 | (.23 | ) | – | (.23 | ) | 11.30 | 1.92 | 11 | – | 8 | .37 | 11 | 1.90 | 11 | |||||||||||||||||||||||||||||
12/31/2018 | 11.29 | .18 | – | 9 | .18 | (.16 | ) | – | (.16 | ) | 11.31 | 1.58 | 11 | – | 8 | .35 | 11 | 1.60 | 11 | |||||||||||||||||||||||||||||
12/31/20173,7 | 11.27 | .08 | – | 9 | .08 | (.06 | ) | – | (.06 | ) | 11.29 | .67 | 5,11 | – | 8 | .34 | 6,11 | .69 | 6,11 | |||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 11.01 | .02 | .01 | .03 | (.02 | ) | – | (.02 | ) | 11.02 | .31 | 5 | 265 | .61 | 6 | .44 | 6 | |||||||||||||||||||||||||||||||
12/31/2019 | 11.03 | .18 | – | 9 | .18 | (.20 | ) | – | (.20 | ) | 11.01 | 1.62 | 230 | .61 | 1.66 | |||||||||||||||||||||||||||||||||
12/31/2018 | 11.01 | .15 | – | 9 | .15 | (.13 | ) | – | (.13 | ) | 11.03 | 1.36 | 247 | .60 | 1.34 | |||||||||||||||||||||||||||||||||
12/31/2017 | 10.99 | .05 | – | 9 | .05 | (.03 | ) | – | (.03 | ) | 11.01 | .46 | 249 | .60 | .42 | |||||||||||||||||||||||||||||||||
12/31/201612 | 11.01 | (.02 | ) | – | 9 | (.02 | ) | – | – | – | 10.99 | (.18 | ) | 297 | .60 | (.14 | ) | |||||||||||||||||||||||||||||||
12/31/2015 | 11.06 | (.05 | ) | – | 9 | (.05 | ) | – | – | – | 11.01 | (.45 | ) | 302 | .59 | (.49 | ) | |||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 11.13 | .03 | .01 | .04 | (.03 | ) | – | (.03 | ) | 11.14 | .31 | 5 | 4 | .54 | 6 | .53 | 6 | |||||||||||||||||||||||||||||||
12/31/2019 | 11.14 | .20 | – | 9 | .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 | – | 9 | .06 | (.04 | ) | – | (.04 | ) | 11.12 | .54 | 4 | .53 | .50 | |||||||||||||||||||||||||||||||||
12/31/201612 | 11.11 | (.01 | ) | – | 9 | (.01 | ) | – | – | – | 11.10 | (.09 | ) | 4 | .53 | (.08 | ) | |||||||||||||||||||||||||||||||
12/31/2015 | 11.16 | (.05 | ) | – | 9 | (.05 | ) | – | – | – | 11.11 | (.45 | ) | 6 | .52 | (.42 | ) | |||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 11.13 | .01 | – | 9 | .01 | (.02 | ) | – | (.02 | ) | 11.12 | .11 | 5 | 33 | .86 | 6 | .14 | 6 | ||||||||||||||||||||||||||||||
12/31/2019 | 11.15 | .16 | – | 9 | .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 | – | 9 | .02 | (.01 | ) | – | (.01 | ) | 11.13 | .16 | 15 | .85 | .19 | |||||||||||||||||||||||||||||||||
12/31/201612 | 11.17 | (.04 | ) | (.01 | ) | (.05 | ) | – | – | – | 11.12 | (.45 | ) | 13 | .85 | (.40 | ) | |||||||||||||||||||||||||||||||
12/31/2015 | 11.25 | (.08 | ) | – | 9 | (.08 | ) | – | – | – | 11.17 | (.71 | ) | 16 | .85 | (.74 | ) |
190 | American Funds Insurance Series |
Table of Contents
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended
| Net asset
| Net
| Net gains
| Total from
| Dividends
| Distributions
| Total
| Net asset of period
| Total
| Net assets,
| Ratio of
| Ratio of to average
| ||||||||||||||||||||||||||||||||||||
U.S. Government/AAA-Rated Securities Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | $12.34 | $.09 | $ .99 | $1.08 | $(.07 | ) | $(.27 | ) | $(.34 | ) | $13.08 | 8.80 | %5 | $ 375 | .38 | %6 | 1.40 | %6 | ||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 12.32 | .06 | 1.00 | 1.06 | (.07 | ) | (.27 | ) | (.34 | ) | 13.04 | 8.64 | 5 | 3 | .64 | 6 | .96 | 6 | ||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
12/31/20173,7 | 12.05 | .18 | .03 | .21 | (.18 | ) | – | (.18 | ) | 12.08 | 1.73 | 5 | – | 8 | .58 | 6 | 1.53 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 12.21 | .06 | 1.00 | 1.06 | (.07 | ) | (.27 | ) | (.34 | ) | 12.93 | 8.70 | 5 | 1,328 | .63 | 6 | 1.01 | 6 | ||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 12.37 | .07 | 1.00 | 1.07 | (.07 | ) | (.27 | ) | (.34 | ) | 13.10 | 8.77 | 5 | 11 | .57 | 6 | 1.05 | 6 | ||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 12.22 | .04 | 1.00 | 1.04 | (.07 | ) | (.27 | ) | (.34 | ) | 12.92 | 8.53 | 5 | 247 | .89 | 6 | .69 | 6 | ||||||||||||||||||||||||||||||
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 | 191 |
Table of Contents
Financial highlights (continued)
Income (loss) from investment operations1
|
Dividends and distributions
| Ratio of expenses to average net assets before waivers/ reimburse- ments14
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period ended
| Net asset value, beginning of period | Net investment income (loss)
| Net gains (losses) on (both realized and unrealized)
| Total from investment operations
| Dividends (from net investment income)
| Distribu- tions (from capital gains)
| Total dividends and distribu- tions
| Net asset value, end of period
| Total return13
| Net assets, end of period (in millions)
| Ratio of expenses to average net assets after waivers/ reimburse- ments13,14
| Net effective expense ratio13,15
| Ratio of net income (loss) to average net assets13
| |||||||||||||||||||||||||||||||||||||||||||||||
Managed Risk Growth Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | $13.78 | $ .02 | $ 1.14 | $ 1.16 | $(.12 | ) | $ (.68 | ) | $(.80 | ) | $14.14 | 8.57 | %5 | $ 9 | .42 | %6 | .37 | %6 | .73 | %6 | .30 | %6 | ||||||||||||||||||||||||||||||||||||||
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 | )11 | 3 | .42 | 11 | .37 | 11 | .71 | 11 | .82 | 11 | |||||||||||||||||||||||||||||||||||||
12/31/2017 | 10.71 | .08 | 2.70 | 2.78 | (.07 | ) | (.20 | ) | (.27 | ) | 13.22 | 26.23 | 11 | 2 | .42 | 11 | .36 | 11 | .70 | 11 | .69 | 11 | ||||||||||||||||||||||||||||||||||||||
12/31/2016 | 11.49 | .08 | .20 | .28 | (.05 | ) | (1.01 | ) | (1.06 | ) | 10.71 | 2.89 | 11 | 1 | .50 | 11 | .34 | 11 | .68 | 11 | .79 | 11 | ||||||||||||||||||||||||||||||||||||||
12/31/2015 | 11.37 | .09 | .03 | .12 | – | – | – | 11.49 | 1.06 | 11 | – | 8 | .53 | 11 | .29 | 11 | .63 | 11 | .80 | 11 | ||||||||||||||||||||||||||||||||||||||||
Class P2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 13.71 | – | 9 | 1.13 | 1.13 | (.11 | ) | (.68 | ) | (.79 | ) | 14.05 | 8.42 | 5 | 467 | .68 | 6 | .63 | 6 | .99 | 6 | (.01 | )6 | |||||||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | $11.01 | $ .01 | $ (1.37 | ) | $ (1.36 | ) | $(.16 | ) | $ (.08 | ) | $ (.24 | ) | $ 9.41 | (12.33 | )%5,11 | $ 1 | .44 | %6,11 | .39 | %6,11 | .90 | %6,11 | .21 | %6,11 | ||||||||||||||||||||||||||||||||||||
12/31/2019 | 9.82 | .17 | 1.54 | 1.71 | (.20 | ) | (.32 | ) | (.52 | ) | 11.01 | 17.91 | 11 | 1 | .41 | 11 | .33 | 11 | .84 | 11 | 1.64 | 11 | ||||||||||||||||||||||||||||||||||||||
12/31/2018 | 11.25 | .32 | (1.44 | ) | (1.12 | ) | (.26 | ) | (.05 | ) | (.31 | ) | 9.82 | (10.11 | )11 | – | 8 | .33 | 11 | .28 | 11 | .77 | 11 | 3.02 | 11 | |||||||||||||||||||||||||||||||||||
12/31/2017 | 8.89 | .11 | 2.47 | 2.58 | (.10 | ) | (.12 | ) | (.22 | ) | 11.25 | 29.28 | 11 | – | 8 | .28 | 11 | .20 | 11 | .69 | 11 | 1.13 | 11 | |||||||||||||||||||||||||||||||||||||
12/31/2016 | 9.48 | .10 | (.35 | ) | (.25 | ) | (.12 | ) | (.22 | ) | (.34 | ) | 8.89 | (2.59 | )11 | – | 8 | .39 | 11 | .23 | 11 | .74 | 11 | 1.15 | 11 | |||||||||||||||||||||||||||||||||||
12/31/2015 | 10.10 | .18 | (.80 | ) | (.62 | ) | – | 9 | – | – | 9 | 9.48 | (6.12 | )11 | – | 8 | .45 | 11 | .21 | 11 | .72 | 11 | 1.75 | 11 | ||||||||||||||||||||||||||||||||||||
Class P2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 10.92 | (.01 | ) | (1.35 | ) | (1.36 | ) | (.12 | ) | (.08 | ) | (.20 | ) | 9.36 | (12.45 | )5 | 154 | .71 | 6 | .66 | 6 | 1.17 | 6 | (.15 | )6 | |||||||||||||||||||||||||||||||||||
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 | ) | – | 9 | – | – | 9 | 9.43 | (6.52 | ) | 83 | .90 | .66 | 1.17 | 1.30 | |||||||||||||||||||||||||||||||||||||||||
Managed Risk Blue Chip Income and Growth Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | $12.01 | $ .03 | $(1.04 | ) | $(1.01 | ) | $(.22 | ) | $ (.34 | ) | $ (.56 | ) | $10.44 | (8.30 | )%5,11 | $ 1 | .40 | %6,11 | .35 | %6,11 | .76 | %6,11 | .63 | %6,11 | ||||||||||||||||||||||||||||||||||||
12/31/2019 | 11.28 | .25 | 1.28 | 1.53 | (.20 | ) | (.60 | ) | (.80 | ) | 12.01 | 14.14 | 11 | 1 | .38 | 11 | .33 | 11 | .74 | 11 | 2.14 | 11 | ||||||||||||||||||||||||||||||||||||||
12/31/2018 | 13.04 | .40 | (1.27 | ) | (.87 | ) | (.45 | ) | (.44 | ) | (.89 | ) | 11.28 | (6.99 | )11 | – | 8 | .33 | 11 | .28 | 11 | .67 | 11 | 3.21 | 11 | |||||||||||||||||||||||||||||||||||
12/31/2017 | 11.67 | .19 | 1.59 | 1.78 | (.22 | ) | (.19 | ) | (.41 | ) | 13.04 | 15.48 | 11 | – | 8 | .30 | 11 | .25 | 11 | .64 | 11 | 1.59 | 11 | |||||||||||||||||||||||||||||||||||||
12/31/2016 | 10.80 | .20 | 1.25 | 1.45 | (.21 | ) | (.37 | ) | (.58 | ) | 11.67 | 13.77 | 11 | – | 8 | .43 | 11 | .27 | 11 | .67 | 11 | 1.83 | 11 | |||||||||||||||||||||||||||||||||||||
12/31/2015 | 11.70 | .19 | (1.02 | ) | (.83 | ) | (.07 | ) | – | (.07 | ) | 10.80 | (7.07 | )11 | – | 8 | .50 | 11 | .27 | 11 | .66 | 11 | 1.64 | 11 | ||||||||||||||||||||||||||||||||||||
Class P2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 11.91 | .02 | (1.04 | ) | (1.02 | ) | (.18 | ) | (.34 | ) | (.52 | ) | 10.37 | (8.48 | )5 | 343 | .68 | 6 | .63 | 6 | 1.04 | 6 | .28 | 6 | ||||||||||||||||||||||||||||||||||||
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 |
192 | American Funds Insurance Series |
Table of Contents
Income (loss) from investment operations1
|
Dividends and distributions
| Ratio of expenses to average net assets before waivers/ reimburse- ments14
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period ended
| Net asset value, beginning of period | Net investment income (loss)
| Net gains (losses) on (both realized and unrealized)
| Total from investment operations
| Dividends (from net investment income)
| Distribu- tions (from capital gains)
| Total dividends and distribu- tions
| Net asset value, end of period
| Total return13
| Net assets, end of period (in millions)
| Ratio of expenses to average net assets after waivers/ reimburse- ments13,14
| Net effective expense ratio13,15
| Ratio of net income (loss) to average net assets13
| |||||||||||||||||||||||||||||||||||||||||||||||
Managed Risk Growth-Income Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | $13.76 | $ .03 | $ .05 | $ .08 | $(.21 | ) | $(.74 | ) | $(.95 | ) | $12.89 | .66 | %5 | $1,938 | .41 | %6 | .36 | %6 | .67 | %6 | .52 | %6 | ||||||||||||||||||||||||||||||||||||||
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 | 11 | 2 | .44 | 11 | .37 | 11 | .66 | 11 | 1.61 | 11 | ||||||||||||||||||||||||||||||||||||||
12/31/2016 | 11.25 | .16 | .52 | .68 | (.16 | ) | (.70 | ) | (.86 | ) | 11.07 | 6.49 | 11 | 1 | .52 | 11 | .36 | 11 | .64 | 11 | 1.46 | 11 | ||||||||||||||||||||||||||||||||||||||
12/31/2015 | 11.67 | .25 | (.63 | ) | (.38 | ) | (.04 | ) | – | (.04 | ) | 11.25 | (3.27 | )11 | 1 | .56 | 11 | .31 | 11 | .59 | 11 | 2.17 | 11 | |||||||||||||||||||||||||||||||||||||
Class P2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 13.69 | .02 | .05 | .07 | (.20 | ) | (.74 | ) | (.94 | ) | 12.82 | .62 | 5 | 285 | .66 | 6 | .61 | 6 | .92 | 6 | .28 | 6 | ||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||
Managed Risk Asset Allocation Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | $13.81 | $ .06 | $ (.58 | ) | $ (.52 | ) | $(.21 | ) | $(.52 | ) | $(.73 | ) | $12.56 | (3.71 | )%5 | $ 4 | .41 | %6 | .36 | %6 | .66 | %6 | .93 | %6 | ||||||||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20203,4 | 13.46 | .02 | (.54 | ) | (.52 | ) | (.20 | ) | (.52 | ) | (.72 | ) | 12.22 | (3.80 | )5 | 2,631 | .66 | 6 | .61 | 6 | .91 | 6 | .30 | 6 | ||||||||||||||||||||||||||||||||||||
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 | 193 |
Table of Contents
Financial highlights (continued)
Portfolio turnover rate for all share classes excluding mortgage dollar roll transactions16,17 | Six months ended June 30, 20203,4,5 | Period ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||
Capital Income Builder | 84% | 44 | % | 42 | % | 59 | % | 41 | % | 38 | % | |||||||||||
Asset Allocation Fund | 31 | 47 | 34 | 39 | 43 | 28 | ||||||||||||||||
Global Balanced Fund | 28 | 60 | 30 | 28 | 43 | 36 | ||||||||||||||||
Bond Fund | 47 | 146 | 98 | 153 | 108 | 141 | ||||||||||||||||
Capital World Bond Fund | 59 | 110 | 78 | 74 | 70 | 88 | ||||||||||||||||
American Funds Mortgage Fund | 85 | 84 | 60 | 98 | 113 | 138 | ||||||||||||||||
U.S. Government/AAA-Rated Securities Fund | 65 | 103 | 76 | 120 | 273 | 352 | ||||||||||||||||
Portfolio turnover rate for all share classes including mortgage dollar roll transactions, if applicable16,17 | Six months ended June 30, 20203,4,5 | Period ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||
Global Growth Fund | 9 | 14 | % | 25 | % | 31 | % | 27 | % | 29 | % | |||||||||||
Global Small Capitalization Fund | 24 | 50 | 43 | 33 | 40 | 36 | ||||||||||||||||
Growth Fund | 12 | 21 | 35 | 24 | 26 | 20 | ||||||||||||||||
International Fund | 21 | 32 | 29 | 29 | 31 | 37 | ||||||||||||||||
New World Fund | 60 | 38 | 58 | 56 | 32 | 39 | ||||||||||||||||
Blue Chip Income and Growth Fund | 29 | 37 | 49 | 34 | 30 | 26 | ||||||||||||||||
Global Growth and Income Fund | 24 | 29 | 49 | 41 | 57 | 37 | ||||||||||||||||
Growth-Income Fund | 20 | 27 | 39 | 27 | 27 | 25 | ||||||||||||||||
International Growth and Income Fund | 31 | 28 | 38 | 51 | 32 | 35 | ||||||||||||||||
Capital Income Builder Fund | 118 | 72 | 98 | 88 | 53 | 128 | ||||||||||||||||
Asset Allocation Fund | 63 | 79 | 86 | 85 | 83 | 76 | ||||||||||||||||
Global Balanced Fund | 35 | 74 | 51 | 41 | 65 | 76 | ||||||||||||||||
Bond Fund | 205 | 373 | 514 | 502 | 375 | 434 | ||||||||||||||||
Capital World Bond Fund | 84 | 159 | 125 | 105 | 154 | 159 | ||||||||||||||||
High-Income Bond Fund | 41 | 58 | 67 | 78 | 89 | 66 | ||||||||||||||||
American Funds Mortgage Fund | 466 | 350 | 811 | 680 | 713 | 1103 | ||||||||||||||||
U.S. Government/AAA-Rated Securities Fund | 403 | 277 | 446 | 551 | 539 | 901 | ||||||||||||||||
Ultra-Short Bond Fund | –18 | – | 18 | – | 18 | – | 18 | – | 12,18 | N/A | ||||||||||||
Managed Risk Growth Fund | 63 | 10 | 7 | 25 | 15 | 16 | ||||||||||||||||
Managed Risk International Fund | 56 | 8 | 8 | 25 | 26 | 15 | ||||||||||||||||
Managed Risk Blue Chip Income and Growth Fund | 79 | 13 | 11 | 32 | 9 | 20 | ||||||||||||||||
Managed Risk Growth-Income Fund | 26 | 6 | 14 | 26 | 14 | 11 | ||||||||||||||||
Managed Risk Asset Allocation Fund | 26 | 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 | Unaudited. |
5 | Not annualized. |
6 | Annualized. |
7 | Class 1A shares began investment operations on January 6, 2017. |
8 | Amount less than $1 million. |
9 | Amount less than $.01. |
10 | Amount less than .01%. |
11 | All or a significant portion of assets in this class consisted of seed capital invested by CRMC and/or its affiliates. Certain fees (including, where applicable, fees for distribution services) are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower. |
12 | On May 1, 2016, the fund converted from a cash fund to an ultra-short-term bond fund and changed its name from Cash Management Fund to Ultra-Short Bond Fund. |
13 | This column reflects the impact of certain waivers/reimbursements from CRMC. During some of the periods shown, CRMC waived a portion of investment advisory services fees on some of the funds, including each of the managed risk funds. In addition, CRMC reimbursed a portion of miscellaneous fees and expenses for some of the managed risk funds. |
14 | This column does not include expenses of the underlying funds in which each fund invests. |
15 | 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. |
16 | Refer to Note 5 for further information on mortgage dollar rolls. |
17 | Rates do not include the fund’s portfolio activity with respect to any Central Funds, if applicable. |
18 | Amount is either less than 1% or there is no turnover. |
See notes to financial statements.
194 | American Funds Insurance Series |
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 entire six-month period (January 1, 2020, through June 30, 2020). | 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 tables 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. |
American Funds Insurance Series | 195 |
Table of Contents
| Beginning account value 1/1/2020 | | | Ending account value 6/30/2020 | | | Expenses paid during period | 1 | | Annualized expense ratio | | |||||
Global Growth Fund | ||||||||||||||||
Class 1 - actual return | $1,000.00 | $1,042.23 | $2.84 | .56 | % | |||||||||||
Class 1 - assumed 5% return | 1,000.00 | 1,022.08 | 2.82 | .56 | ||||||||||||
Class 1A - actual return | 1,000.00 | 1,041.28 | 4.11 | .81 | ||||||||||||
Class 1A - assumed 5% return | 1,000.00 | 1,020.84 | 4.07 | .81 | ||||||||||||
Class 2 - actual return | 1,000.00 | 1,040.99 | 4.11 | .81 | ||||||||||||
Class 2 - assumed 5% return | 1,000.00 | 1,020.84 | 4.07 | .81 | ||||||||||||
Class 4 - actual return | 1,000.00 | 1,039.93 | 5.38 | 1.06 | ||||||||||||
Class 4 - assumed 5% return | 1,000.00 | 1,019.59 | 5.32 | 1.06 | ||||||||||||
Global Small Capitalization Fund | ||||||||||||||||
Class 1 - actual return | $1,000.00 | $ 968.16 | $3.67 | .75 | % | |||||||||||
Class 1 - assumed 5% return | 1,000.00 | 1,021.13 | 3.77 | .75 | ||||||||||||
Class 1A - actual return | 1,000.00 | 967.03 | 4.89 | 1.00 | ||||||||||||
Class 1A - assumed 5% return | 1,000.00 | 1,019.89 | 5.02 | 1.00 | ||||||||||||
Class 2 - actual return | 1,000.00 | 967.18 | 4.89 | 1.00 | ||||||||||||
Class 2 - assumed 5% return | 1,000.00 | 1,019.89 | 5.02 | 1.00 | ||||||||||||
Class 4 - actual return | 1,000.00 | 965.40 | 6.11 | 1.25 | ||||||||||||
Class 4 - assumed 5% return | 1,000.00 | 1,018.65 | 6.27 | 1.25 | ||||||||||||
Growth Fund | ||||||||||||||||
Class 1 - actual return | $1,000.00 | $1,120.97 | $1.90 | .36 | % | |||||||||||
Class 1 - assumed 5% return | 1,000.00 | 1,023.07 | 1.81 | .36 | ||||||||||||
Class 1A - actual return | 1,000.00 | 1,119.49 | 3.21 | .61 | ||||||||||||
Class 1A - assumed 5% return | 1,000.00 | 1,021.83 | 3.07 | .61 | ||||||||||||
Class 2 - actual return | 1,000.00 | 1,119.67 | 3.21 | .61 | ||||||||||||
Class 2 - assumed 5% return | 1,000.00 | 1,021.83 | 3.07 | .61 | ||||||||||||
Class 3 - actual return | 1,000.00 | 1,120.05 | 2.85 | .54 | ||||||||||||
Class 3 - assumed 5% return | 1,000.00 | 1,022.18 | 2.72 | .54 | ||||||||||||
Class 4 - actual return | 1,000.00 | 1,118.15 | 4.53 | .86 | ||||||||||||
Class 4 - assumed 5% return | 1,000.00 | 1,020.59 | 4.32 | .86 | ||||||||||||
International Fund | ||||||||||||||||
Class 1 - actual return | $1,000.00 | $ 887.96 | $2.58 | .55 | % | |||||||||||
Class 1 - assumed 5% return | 1,000.00 | 1,022.13 | 2.77 | .55 | ||||||||||||
Class 1A - actual return | 1,000.00 | 886.81 | 3.75 | .80 | ||||||||||||
Class 1A - assumed 5% return | 1,000.00 | 1,020.89 | 4.02 | .80 | ||||||||||||
Class 2 - actual return | 1,000.00 | 886.66 | 3.75 | .80 | ||||||||||||
Class 2 - assumed 5% return | 1,000.00 | 1,020.89 | 4.02 | .80 | ||||||||||||
Class 3 - actual return | 1,000.00 | 887.02 | 3.42 | .73 | ||||||||||||
Class 3 - assumed 5% return | 1,000.00 | 1,021.23 | 3.67 | .73 | ||||||||||||
Class 4 - actual return | 1,000.00 | 885.43 | 4.92 | 1.05 | ||||||||||||
Class 4 - assumed 5% return | 1,000.00 | 1,019.64 | 5.27 | 1.05 | ||||||||||||
New World Fund | ||||||||||||||||
Class 1 - actual return | $1,000.00 | $ 959.42 | $3.46 | .71 | % | |||||||||||
Class 1 - assumed 5% return | 1,000.00 | 1,021.33 | 3.57 | .71 | ||||||||||||
Class 1A - actual return | 1,000.00 | 958.20 | 4.63 | .95 | ||||||||||||
Class 1A - assumed 5% return | 1,000.00 | 1,020.14 | 4.77 | .95 | ||||||||||||
Class 2 - actual return | 1,000.00 | 958.22 | 4.67 | .96 | ||||||||||||
Class 2 - assumed 5% return | 1,000.00 | 1,020.09 | 4.82 | .96 | ||||||||||||
Class 4 - actual return | 1,000.00 | 956.88 | 5.89 | 1.21 | ||||||||||||
Class 4 - assumed 5% return | 1,000.00 | 1,018.85 | 6.07 | 1.21 |
196 | American Funds Insurance Series |
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| Beginning account value 1/1/2020 |
| | Ending account value 6/30/2020 |
| | Expenses paid during period |
1 | | Annualized expense ratio |
| |||||
Blue Chip Income and Growth Fund | ||||||||||||||||
Class 1 - actual return | $1,000.00 | $ 917.33 | $2.05 | .43 | % | |||||||||||
Class 1 - assumed 5% return | 1,000.00 | 1,022.73 | 2.16 | .43 | ||||||||||||
Class 1A - actual return | 1,000.00 | 916.02 | 3.24 | .68 | ||||||||||||
Class 1A - assumed 5% return | 1,000.00 | 1,021.48 | 3.42 | .68 | ||||||||||||
Class 2 - actual return | 1,000.00 | 915.91 | 3.24 | .68 | ||||||||||||
Class 2 - assumed 5% return | 1,000.00 | 1,021.48 | 3.42 | .68 | ||||||||||||
Class 4 - actual return | 1,000.00 | 915.12 | 4.43 | .93 | ||||||||||||
Class 4 - assumed 5% return | 1,000.00 | 1,020.24 | 4.67 | .93 | ||||||||||||
Global Growth and Income Fund | ||||||||||||||||
Class 1 - actual return | $1,000.00 | $ 889.23 | $3.05 | .65 | % | |||||||||||
Class 1 - assumed 5% return | 1,000.00 | 1,021.63 | 3.27 | .65 | ||||||||||||
Class 1A - actual return | 1,000.00 | 887.99 | 4.22 | .90 | ||||||||||||
Class 1A - assumed 5% return | 1,000.00 | 1,020.39 | 4.52 | .90 | ||||||||||||
Class 2 - actual return | 1,000.00 | 887.98 | 4.22 | .90 | ||||||||||||
Class 2 - assumed 5% return | 1,000.00 | 1,020.39 | 4.52 | .90 | ||||||||||||
Class 4 - actual return | 1,000.00 | 887.05 | 5.40 | 1.15 | ||||||||||||
Class 4 - assumed 5% return | 1,000.00 | 1,019.14 | 5.77 | 1.15 | ||||||||||||
Growth-Income Fund | ||||||||||||||||
Class 1 - actual return | $1,000.00 | $ 963.83 | $1.42 | .29 | % | |||||||||||
Class 1 - assumed 5% return | 1,000.00 | 1,023.42 | 1.46 | .29 | ||||||||||||
Class 1A - actual return | 1,000.00 | 962.74 | 2.64 | .54 | ||||||||||||
Class 1A - assumed 5% return | 1,000.00 | 1,022.18 | 2.72 | .54 | ||||||||||||
Class 2 - actual return | 1,000.00 | 962.74 | 2.64 | .54 | ||||||||||||
Class 2 - assumed 5% return | 1,000.00 | 1,022.18 | 2.72 | .54 | ||||||||||||
Class 3 - actual return | 1,000.00 | 962.98 | 2.29 | .47 | ||||||||||||
Class 3 - assumed 5% return | 1,000.00 | 1,022.53 | 2.36 | .47 | ||||||||||||
Class 4 - actual return | 1,000.00 | 961.40 | 3.85 | .79 | ||||||||||||
Class 4 - assumed 5% return | 1,000.00 | 1,020.93 | 3.97 | .79 | ||||||||||||
International Growth and Income Fund | ||||||||||||||||
Class 1 - actual return | $1,000.00 | $ 849.25 | $3.13 | .68 | % | |||||||||||
Class 1 - assumed 5% return | 1,000.00 | 1,021.48 | 3.42 | .68 | ||||||||||||
Class 1A - actual return | 1,000.00 | 848.07 | 4.27 | .93 | ||||||||||||
Class 1A - assumed 5% return | 1,000.00 | 1,020.24 | 4.67 | .93 | ||||||||||||
Class 2 - actual return | 1,000.00 | 848.30 | 4.27 | .93 | ||||||||||||
Class 2 - assumed 5% return | 1,000.00 | 1,020.24 | 4.67 | .93 | ||||||||||||
Class 4 - actual return | 1,000.00 | 847.09 | 5.42 | 1.18 | ||||||||||||
Class 4 - assumed 5% return | 1,000.00 | 1,019.00 | 5.92 | 1.18 | ||||||||||||
Capital Income Builder | ||||||||||||||||
Class 1 - actual return | $1,000.00 | $ 937.71 | $2.12 | .44 | % | |||||||||||
Class 1 - assumed 5% return | 1,000.00 | 1,022.68 | 2.21 | .44 | ||||||||||||
Class 1A - actual return | 1,000.00 | 936.40 | 3.32 | .69 | ||||||||||||
Class 1A - assumed 5% return | 1,000.00 | 1,021.43 | 3.47 | .69 | ||||||||||||
Class 2 - actual return | 1,000.00 | 936.41 | 3.32 | .69 | ||||||||||||
Class 2 - assumed 5% return | 1,000.00 | 1,021.43 | 3.47 | .69 | ||||||||||||
Class 4 - actual return | 1,000.00 | 935.07 | 4.52 | .94 | ||||||||||||
Class 4 - assumed 5% return | 1,000.00 | 1,020.19 | 4.72 | .94 |
See end of tables for footnotes.
American Funds Insurance Series | 197 |
Table of Contents
Beginning account value 1/1/2020 | Ending account value 6/30/2020 | Expenses paid during period1 | Annualized expense ratio | |||||||||||||
Asset Allocation Fund | ||||||||||||||||
Class 1 - actual return | $1,000.00 | $ 985.29 | $1.48 | .30 | % | |||||||||||
Class 1 - assumed 5% return | 1,000.00 | 1,023.37 | 1.51 | .30 | ||||||||||||
Class 1A - actual return | 1,000.00 | 984.46 | 2.71 | .55 | ||||||||||||
Class 1A - assumed 5% return | 1,000.00 | 1,022.13 | 2.77 | .55 | ||||||||||||
Class 2 - actual return | 1,000.00 | 984.31 | 2.71 | .55 | ||||||||||||
Class 2 - assumed 5% return | 1,000.00 | 1,022.13 | 2.77 | .55 | ||||||||||||
Class 3 - actual return | 1,000.00 | 984.60 | 2.37 | .48 | ||||||||||||
Class 3 - assumed 5% return | 1,000.00 | 1,022.48 | 2.41 | .48 | ||||||||||||
Class 4 - actual return | 1,000.00 | 983.04 | 3.94 | .80 | ||||||||||||
Class 4 - assumed 5% return | 1,000.00 | 1,020.89 | 4.02 | .80 | ||||||||||||
Global Balanced Fund | ||||||||||||||||
Class 1 - actual return | $1,000.00 | $ 971.52 | $3.48 | .71 | % | |||||||||||
Class 1 - assumed 5% return | 1,000.00 | 1,021.33 | 3.57 | .71 | ||||||||||||
Class 1A - actual return | 1,000.00 | 969.99 | 4.70 | .96 | ||||||||||||
Class 1A - assumed 5% return | 1,000.00 | 1,020.09 | 4.82 | .96 | ||||||||||||
Class 2 - actual return | 1,000.00 | 970.71 | 4.70 | .96 | ||||||||||||
Class 2 - assumed 5% return | 1,000.00 | 1,020.09 | 4.82 | .96 | ||||||||||||
Class 4 - actual return | 1,000.00 | 968.94 | 5.92 | 1.21 | ||||||||||||
Class 4 - assumed 5% return | 1,000.00 | 1,018.85 | 6.07 | 1.21 | ||||||||||||
Bond Fund | ||||||||||||||||
Class 1 - actual return | $1,000.00 | $1,066.05 | $2.05 | .40 | % | |||||||||||
Class 1 - assumed 5% return | 1,000.00 | 1,022.87 | 2.01 | .40 | ||||||||||||
Class 1A - actual return | 1,000.00 | 1,065.05 | 3.34 | .65 | ||||||||||||
Class 1A - assumed 5% return | 1,000.00 | 1,021.63 | 3.27 | .65 | ||||||||||||
Class 2 - actual return | 1,000.00 | 1,065.58 | 3.34 | .65 | ||||||||||||
Class 2 - assumed 5% return | 1,000.00 | 1,021.63 | 3.27 | .65 | ||||||||||||
Class 4 - actual return | 1,000.00 | 1,063.57 | 4.62 | .90 | ||||||||||||
Class 4 - assumed 5% return | 1,000.00 | 1,020.39 | 4.52 | .90 | ||||||||||||
Capital World Bond Fund | ||||||||||||||||
Class 1 - actual return | $1,000.00 | $1,021.40 | $2.76 | .55 | % | |||||||||||
Class 1 - assumed 5% return | 1,000.00 | 1,022.13 | 2.77 | .55 | ||||||||||||
Class 1A - actual return | 1,000.00 | 1,020.30 | 4.02 | .80 | ||||||||||||
Class 1A - assumed 5% return | 1,000.00 | 1,020.89 | 4.02 | .80 | ||||||||||||
Class 2 - actual return | 1,000.00 | 1,020.29 | 4.02 | .80 | ||||||||||||
Class 2 - assumed 5% return | 1,000.00 | 1,020.89 | 4.02 | .80 | ||||||||||||
Class 4 - actual return | 1,000.00 | 1,019.27 | 5.27 | 1.05 | ||||||||||||
Class 4 - assumed 5% return | 1,000.00 | 1,019.64 | 5.27 | 1.05 | ||||||||||||
High-Income Bond Fund | ||||||||||||||||
Class 1 - actual return | $1,000.00 | $ 952.57 | $2.52 | .52 | % | |||||||||||
Class 1 - assumed 5% return | 1,000.00 | 1,022.28 | 2.61 | .52 | ||||||||||||
Class 1A - actual return | 1,000.00 | 951.37 | 3.74 | .77 | ||||||||||||
Class 1A - assumed 5% return | 1,000.00 | 1,021.03 | 3.87 | .77 | ||||||||||||
Class 2 - actual return | 1,000.00 | 951.48 | 3.74 | .77 | ||||||||||||
Class 2 - assumed 5% return | 1,000.00 | 1,021.03 | 3.87 | .77 | ||||||||||||
Class 3 - actual return | 1,000.00 | 951.66 | 3.40 | .70 | ||||||||||||
Class 3 - assumed 5% return | 1,000.00 | 1,021.38 | 3.52 | .70 | ||||||||||||
Class 4 - actual return | 1,000.00 | 951.12 | 4.95 | 1.02 | ||||||||||||
Class 4 - assumed 5% return | 1,000.00 | 1,019.79 | 5.12 | 1.02 |
198 | American Funds Insurance Series |
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| Beginning account value 1/1/2020 |
| | Ending account value 6/30/2020 |
| | Expenses paid during period |
1 | | Annualized expense ratio |
| |||||
American Funds Mortgage Fund | ||||||||||||||||
Class 1 - actual return | $1,000.00 | $1,058.13 | $2.05 | .40 | % | |||||||||||
Class 1 - assumed 5% return | 1,000.00 | 1,022.87 | 2.01 | .40 | ||||||||||||
Class 1A - actual return | 1,000.00 | 1,055.92 | 3.32 | .65 | ||||||||||||
Class 1A - assumed 5% return | 1,000.00 | 1,021.63 | 3.27 | .65 | ||||||||||||
Class 2 - actual return | 1,000.00 | 1,056.83 | 3.32 | .65 | ||||||||||||
Class 2 - assumed 5% return | 1,000.00 | 1,021.63 | 3.27 | .65 | ||||||||||||
Class 4 - actual return | 1,000.00 | 1,055.32 | 4.55 | .89 | ||||||||||||
Class 4 - assumed 5% return | 1,000.00 | 1,020.44 | 4.47 | .89 | ||||||||||||
Ultra-Short Bond Fund | ||||||||||||||||
Class 1 - actual return | $1,000.00 | $1,004.25 | $1.79 | .36 | % | |||||||||||
Class 1 - assumed 5% return | 1,000.00 | 1,023.07 | 1.81 | .36 | ||||||||||||
Class 1A - actual return | 1,000.00 | 1,004.11 | 1.64 | .33 | ||||||||||||
Class 1A - assumed 5% return | 1,000.00 | 1,023.22 | 1.66 | .33 | ||||||||||||
Class 2 - actual return | 1,000.00 | 1,003.06 | 3.04 | .61 | ||||||||||||
Class 2 - assumed 5% return | 1,000.00 | 1,021.83 | 3.07 | .61 | ||||||||||||
Class 3 - actual return | 1,000.00 | 1,003.15 | 2.69 | .54 | ||||||||||||
Class 3 - assumed 5% return | 1,000.00 | 1,022.18 | 2.72 | .54 | ||||||||||||
Class 4 - actual return | 1,000.00 | 1,001.08 | 4.28 | .86 | ||||||||||||
Class 4 - assumed 5% return | 1,000.00 | 1,020.59 | 4.32 | .86 | ||||||||||||
U.S. Government/AAA-Rated Securities Fund | ||||||||||||||||
Class 1 - actual return | $1,000.00 | $1,088.03 | $1.97 | .38 | % | |||||||||||
Class 1 - assumed 5% return | 1,000.00 | 1,022.97 | 1.91 | .38 | ||||||||||||
Class 1A - actual return | 1,000.00 | 1,086.41 | 3.32 | .64 | ||||||||||||
Class 1A - assumed 5% return | 1,000.00 | 1,021.68 | 3.22 | .64 | ||||||||||||
Class 2 - actual return | 1,000.00 | 1,087.01 | 3.27 | .63 | ||||||||||||
Class 2 - assumed 5% return | 1,000.00 | 1,021.73 | 3.17 | .63 | ||||||||||||
Class 3 - actual return | 1,000.00 | 1,087.72 | 2.96 | .57 | ||||||||||||
Class 3 - assumed 5% return | 1,000.00 | 1,022.03 | 2.87 | .57 | ||||||||||||
Class 4 - actual return | 1,000.00 | 1,085.32 | 4.61 | .89 | ||||||||||||
Class 4 - assumed 5% return | 1,000.00 | 1,020.44 | 4.47 | .89 |
See end of tables for footnotes.
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| Beginning account value 1/1/2020 |
| | Ending account value 6/30/2020 |
| | Expenses paid during period |
1,2 | | Annualized expense ratio | 2 | | Effective expenses paid during period |
3 | | Effective annualized expense ratio | 4 | |||||||
Managed Risk Growth Fund |
| |||||||||||||||||||||||
Class P1 - actual return | $1,000.00 | $1,085.74 | $1.92 | .37 | % | $3.79 | .73 | % | ||||||||||||||||
Class P1 - assumed 5% return | 1,000.00 | 1,023.02 | 1.86 | .37 | 3.67 | .73 | ||||||||||||||||||
Class P2 - actual return | 1,000.00 | 1,084.18 | 3.26 | .63 | 5.13 | .99 | ||||||||||||||||||
Class P2 - assumed 5% return | 1,000.00 | 1,021.73 | 3.17 | .63 | 4.97 | .99 | ||||||||||||||||||
Managed Risk International Fund |
| |||||||||||||||||||||||
Class P1 - actual return | $1,000.00 | $ 876.65 | $1.82 | .39 | % | $4.20 | .90 | % | ||||||||||||||||
Class P1 - assumed 5% return | 1,000.00 | 1,022.92 | 1.96 | .39 | 4.52 | .90 | ||||||||||||||||||
Class P2 - actual return | 1,000.00 | 875.51 | 3.08 | .66 | 5.46 | 1.17 | ||||||||||||||||||
Class P2 - assumed 5% return | 1,000.00 | 1,021.58 | 3.32 | .66 | 5.87 | 1.17 | ||||||||||||||||||
Managed Risk Blue Chip Income and Growth Fund |
| |||||||||||||||||||||||
Class P1 - actual return | $1,000.00 | $ 917.01 | $1.67 | .35 | % | $3.62 | .76 | % | ||||||||||||||||
Class P1 - assumed 5% return | 1,000.00 | 1,023.12 | 1.76 | .35 | 3.82 | .76 | ||||||||||||||||||
Class P2 - actual return | 1,000.00 | 915.15 | 3.00 | .63 | 4.95 | 1.04 | ||||||||||||||||||
Class P2 - assumed 5% return | 1,000.00 | 1,021.73 | 3.17 | .63 | 5.22 | 1.04 | ||||||||||||||||||
Managed Risk Growth-Income Fund |
| |||||||||||||||||||||||
Class P1 - actual return | $1,000.00 | $1,006.57 | $1.80 | .36 | % | $3.34 | .67 | % | ||||||||||||||||
Class P1 - assumed 5% return | 1,000.00 | 1,023.07 | 1.81 | .36 | 3.37 | .67 | ||||||||||||||||||
Class P2 - actual return | 1,000.00 | 1,006.22 | 3.04 | .61 | 4.59 | .92 | ||||||||||||||||||
Class P2 - assumed 5% return | 1,000.00 | 1,021.83 | 3.07 | .61 | 4.62 | .92 | ||||||||||||||||||
Managed Risk Asset Allocation Fund |
| |||||||||||||||||||||||
Class P1 - actual return | $1,000.00 | $ 962.89 | $1.76 | .36 | % | $3.22 | .66 | % | ||||||||||||||||
Class P1 - assumed 5% return | 1,000.00 | 1,023.07 | 1.81 | .36 | 3.32 | .66 | ||||||||||||||||||
Class P2 - actual return | 1,000.00 | 962.00 | 2.98 | .61 | 4.44 | .91 | ||||||||||||||||||
Class P2 - assumed 5% return | 1,000.00 | 1,021.83 | 3.07 | .61 | 4.57 | .91 |
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 366 (to reflect the one-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 366 (to reflect the period). |
4 | The “effective annualized expense ratio” reflects the net annualized expense ratio of the class plus the class’s pro-rata share of the weighted average expense ratio of the underlying funds in which it invests. |
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Approval of Investment Advisory and Service Agreement – American Funds Insurance Series
The series’ board has approved the continuation of the series’ Investment Advisory and Service Agreement (the “agreement”) with Capital Research and Management Company (“CRMC”) for an additional one-year term through April 30, 2021. The board approved the agreement following the recommendation of the series’ Contracts Committee (the “committee”), which is composed of all the series’ independent board members. The board and the committee determined in the exercise of their business judgment that the advisory fee structure for each fund within the series was fair and reasonable in relation to the services provided, and that approving the agreement was in the best interests of each fund and its shareholders.
In reaching this decision, the board and the committee took into account their interaction with CRMC as well as information furnished to them throughout the year and otherwise provided to them, as well as information prepared specifically in connection with their review of the agreement, and were advised by their independent counsel with respect to the matters considered. They considered the following factors, among others, but did not identify any single issue or particular piece of information that, in isolation, was the controlling factor, and each board and committee member did not necessarily attribute the same weight to each factor.
1. Nature, extent and quality of services
The board and the committee considered the depth and quality of CRMC’s investment management process, including its global research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of CRMC and the Capital Group organization; the resources and systems CRMC devotes to investment management (the manner in which each fund’s assets are managed, including liquidity management), financial, investment operations, compliance, trading, proxy voting, shareholder communications, and other services; and the ongoing evolution of CRMC’s organizational structure designed to maintain and strengthen these qualities. The board and the committee also considered the nature, extent and quality of administrative and shareholder services provided by CRMC to the funds under the agreement and other agreements, as well as the benefits to each fund’s shareholders from investing in a fund that is part of a large family of funds. The board considered the risks assumed by CRMC in providing services to the funds, including operational, business, financial, reputational, regulatory and litigation risks. The board and the committee concluded that the nature, extent and quality of the services provided by CRMC have benefited and should continue to benefit each fund and its shareholders.
2. Investment results
The board and the committee considered the investment results of each fund in light of its objectives. They compared each fund’s investment results with those of other funds (including funds that currently form the basis of the Lipper index for the category in which the fund is included), and data such as relevant market and fund indexes over various periods (including each fund’s lifetime) through September 30, 2019. They generally placed greater emphasis on longer term periods. On the basis of this evaluation and the board’s and the committee’s ongoing review of investment results, and considering the relative market conditions during certain of the reporting periods, the board and the committee concluded that each fund’s investment results have been satisfactory for renewal of the agreement, and that CRMC’s record in managing the funds indicated that its continued management should benefit each fund and its shareholders.
3. Advisory fees and total expenses
The board and the committee compared the advisory fees and total expense levels of each fund to those of other relevant funds. They observed that the advisory fees and total expenses of each fund are competitive with those of other similar funds included in the comparable Lipper category.
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The board and the committee also considered the breakpoint discounts in each fund’s advisory fee structure that reduce the level of fees charged by CRMC to the fund as fund assets increase. In addition, they reviewed information regarding the effective advisory fees charged to non-mutual fund clients by CRMC and its affiliates. They noted that, to the extent there were differences between the advisory fees paid by each fund and the advisory fees paid by those clients, the differences appropriately reflected the investment, operational, regulatory and market differences between advising the funds and the other clients. The board and the committee concluded that each fund’s cost structure was fair and reasonable in relation to the services provided, as well as the risks assumed by the adviser, and that each fund’s shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC by the fund.
4. Ancillary benefits
The board and the committee considered a variety of other benefits that CRMC and its affiliates receive as a result of CRMC’s relationship with the series and other American Funds, including fees for administrative services provided to certain share classes; fees paid to CRMC’s affiliated transfer agent; sales charges and distribution fees received and retained by the series’ principal underwriter, an affiliate of CRMC; and possible ancillary benefits to CRMC and its institutional management affiliates in managing other investment vehicles. The board and the committee reviewed CRMC’s portfolio trading practices, noting that through December 31, 2018, CRMC benefited from research obtained with commissions from portfolio transactions made on behalf of the funds, and since that time has undertaken to bear the cost of obtaining such research. The board and the committee took these ancillary benefits into account in evaluating the reasonableness of the advisory fees and other amounts paid to CRMC by each fund.
5. Adviser financial information
The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, including personnel, systems and resources of investment, compliance, trading, accounting and other administrative operations. They considered CRMC’s costs and related cost allocation methodology as well as its track record of investing in technology, infrastructure and staff to maintain and expand services and capabilities, respond to industry and regulatory developments, and attract and retain qualified personnel. They noted information regarding the compensation structure for CRMC’s investment professionals. They reviewed information on the profitability of the investment adviser and its affiliates. The board and the committee also compared CRMC’s profitability and compensation data to the reported results and data of several large, publicly held investment management companies. The board and the committee noted the competitiveness and cyclicality of both the mutual fund industry and the capital markets, and the importance in that environment of CRMC’s long-term profitability for maintaining its independence, company culture and management continuity. They further considered the breakpoint discounts in the funds’ advisory fee structure and CRMC’s sharing of potential economies of scale, or efficiencies, through breakpoints and other fee reductions and costs voluntarily absorbed. The board and the committee concluded that each fund’s advisory fee structure reflected a reasonable sharing of benefits between CRMC and each fund’s shareholders.
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Approval of Investment Advisory and Service Agreement and Subadvisory Agreement – American Funds Insurance Series Managed Risk Funds
The series’ board has approved the continuation of the series’ Investment Advisory and Service Agreement (the “advisory agreement”) with Capital Research and Management Company (“CRMC”) with respect to the Managed Risk Funds for an additional one-year term through April 30, 2021. The board has also approved the series’ Subadvisory Agreement (the “subadvisory agreement”) with CRMC and Milliman Financial Risk Management LLC (“Milliman FRM”) with respect to these funds for the same term. The advisory and subadvisory agreements are jointly referred to below as the “agreements.” The board approved the agreements following the recommendation of the series’ Contracts Committee (the “committee”), which is composed of all the series’ independent board members. The board and the committee determined in the exercise of their business judgment that the advisory fee structure for each fund in the series was fair and reasonable in relation to the services provided, and that approving the agreements was in the best interests of each fund and its shareholders.
In reaching this decision, the board and the committee took into account their interaction with CRMC and Milliman FRM as well as information furnished to them throughout the year and otherwise provided to them, as well as information prepared specifically in connection with their review of the agreements, and were advised by their independent counsel with respect to the matters considered. They considered the following factors, among others, but did not identify any single issue or particular piece of information that, in isolation, was the controlling factor, and each board and committee member did not necessarily attribute the same weight to each factor.
1. Nature, extent and quality of services
The board and the committee considered the depth and quality of CRMC’s investment management process, including its global research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of CRMC and the Capital Group organization; the resources and systems CRMC devotes to investment management (the manner in which each fund’s assets are managed, including liquidity management), financial, investment operations, compliance, trading, proxy voting, shareholder communications, and other services; and the ongoing evolution of CRMC’s organizational structure designed to maintain and strengthen these qualities. The board and the committee also considered the nature, extent and quality of the oversight of Milliman FRM’s services provided by CRMC, administrative and shareholder services provided by CRMC to the funds under the advisory agreement and other agreements, as well as the benefits to each fund’s shareholders from investing in a fund that is part of a large family of funds. The board considered the risks assumed by CRMC in providing services to the funds, including operational, business, financial, reputational, regulatory and litigation risks. The board and the committee concluded that the nature, extent and quality of the services provided by CRMC have benefited and should continue to benefit each fund and its shareholders.
The board and the committee also considered the depth and quality of Milliman FRM’s investment management process, including its experience in applying the Milliman Managed Risk Strategy to other funds in the series and risk management services for other clients; the experience, capability and integrity of its senior management and other personnel; and the services provided to each fund under the subadvisory agreement. The board and the committee concluded that the nature, extent and quality of the services provided by Milliman FRM have benefited and should continue to benefit each fund and its shareholders.
2. Investment results
The board and the committee considered the investment results of each fund in light of its objectives. They compared each fund’s investment results with those of other funds (including funds that currently form the basis of the Lipper index for the category in which each fund is included), and data such as relevant market and fund indexes over various periods (including each fund’s lifetime) through September 30, 2019. They generally placed greater emphasis on longer term periods. The board and the committee also considered the volatility of the funds compared with the S&P 500 Managed Risk indexes and those of a group of funds with volatility management strategies identified by management over various periods (including each fund’s lifetime) through September 30, 2019. On the basis of this evaluation and the board’s and the committee’s ongoing review of investment results, and considering the relative market conditions during certain of the reporting periods, the board and the committee concluded that each fund’s investment results and the results of the services provided by CRMC and Milliman FRM have been satisfactory for renewal of the agreement, and that CRMC’s and Milliman FRM’s record in managing the funds indicated that their continued management should benefit each fund and its shareholders.
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3. Advisory fees and total expenses
The board and the committee compared the advisory fees and total expense levels of each fund to those of other relevant funds. The board and the committee noted CRMC’s waiver of a portion of the advisory fee payable by each fund under the advisory agreement, CRMC’s commitment not to remove the waiver without board approval and CRMC’s agreement to pay the fees due to Milliman FRM under the subadvisory agreement. They observed that each fund’s advisory fees and expenses are competitive with those of other similar funds included in the comparable Lipper category.
The board and the committee also considered the breakpoint discounts in each underlying fund’s advisory fee structure that reduce the level of fees charged by CRMC to the underlying fund as its assets increase. In addition, they reviewed information regarding the effective advisory fees charged to non-mutual fund clients by CRMC and its affiliates. They noted that, to the extent there were differences between the advisory fees paid by the fund and the advisory fees paid by those clients, the differences appropriately reflected the investment, operational, regulatory and market differences between advising the funds and the other clients. They also reviewed the fees paid to Milliman FRM by other funds which it advised or subadvised. The board and the committee concluded that each fund’s cost structure was fair and reasonable in relation to the services that CRMC provided, directly and through Milliman FRM, as well as the risks assumed by the adviser, and that each fund’s shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC (and indirectly to Milliman FRM) by the funds.
4. Ancillary benefits
The board and the committee considered a variety of other benefits that CRMC and its affiliates receive as a result of CRMC’s relationship with the series and the other American Funds, including fees for administrative services provided to certain share classes; fees paid to CRMC’s affiliated transfer agent; sales charges and distribution fees received and retained by the series’ principal underwriter, an affiliate of CRMC; and possible ancillary benefits to CRMC and its institutional management affiliates in managing other investment vehicles. The board and the committee reviewed CRMC’s portfolio trading practices, noting that through December 31, 2018, CRMC benefited from research obtained with commissions from portfolio transactions made on behalf of the funds, and since that time has undertaken to bear the cost of obtaining such research. The board and the committee also reviewed similar ancillary benefits received by Milliman FRM as a result of its relationship with the series. The board and the committee took these ancillary benefits into account in evaluating the reasonableness of the advisory fees and other amounts paid to CRMC (and indirectly to Milliman FRM) by each fund.
5. Adviser financial information
The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, including personnel, systems and resources of investment, compliance, trading, accounting and other administrative operations. They considered CRMC’s costs and related cost allocation methodology as well as its track record of investing in technology, infrastructure and staff to maintain and expand services and capabilities, respond to industry and regulatory developments, and attract and retain qualified personnel. They noted information regarding the compensation structure for CRMC’s investment professionals. They reviewed information on the profitability of the investment adviser and its affiliates. The board and the committee also compared CRMC’s profitability and compensation data to the reported results and data of several large, publicly held investment management companies. The board and the committee noted the competitiveness and cyclicality of both the mutual fund industry and the capital markets, and the importance in that environment of CRMC’s long-term profitability for maintaining its independence, company culture and management continuity. They further considered the breakpoint discounts in the funds’ advisory fee structure and CRMC’s sharing of potential economies of scale, or efficiencies, through breakpoints and other fee reductions and costs voluntarily absorbed. The board and the committee concluded that each fund’s advisory fee structure reflected a reasonable sharing of benefits between CRMC and each fund’s shareholders.
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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
Custodian of assets
State Street Bank and Trust Company
One Lincoln Street
Boston, MA 02111
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
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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 June 30, 2020, 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 Form N-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 Form NPORT-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 September 30, 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 for buy-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. 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 © 2020 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.
American Funds Insurance Series | 209 |
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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
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 industry experience, including 23 years at our company, reflecting a career commitment to our long-term approach.1 | The Capital System
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 superior outcomes
American Funds Insurance Series equity funds have beaten their comparable Lipper indexes in 90% of 10-year periods and 100% of 20-year periods.2 Our fixed income funds have helped investors achieve diversification through attention to correlation between bonds and equities.3 We strive to keep management fees competitive. Over the past 20 years, most funds’ fees have been below industry averages.4
|
1 | Investment industry 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 Global Small-/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 the 20-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. INGESRX-998-0820P © 2020 Capital Group. All rights reserved. |
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Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
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 for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-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) of Regulation 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) Not applicable. |
(3) Not applicable.
(4) Not applicable.
(b) |
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: September 4, 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: September 4, 2020
By: | /s/ Gregory R. Kingston | |
Gregory R. Kingston | ||
Treasurer |
Date: September 4, 2020