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 | 811-21682 | |||||||
| ||||||||
BB&T Variable Insurance Funds | ||||||||
(Exact name of registrant as specified in charter) | ||||||||
| ||||||||
434 Fayetteville Street, 5th Floor, Raleigh, NC |
| 27626-0575 | ||||||
(Address of principal executive offices) |
| (Zip code) | ||||||
| ||||||||
BISYS Fund Services, 3435 Stelzer Road, Columbus, OH 43219 | ||||||||
(Name and address of agent for service) | ||||||||
| ||||||||
Registrant’s telephone number, including area code: | (800) 228-1872 |
| ||||||
| ||||||||
Date of fiscal year end: | December 31 |
| ||||||
| ||||||||
Date of reporting period: | June 30, 2006 |
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Item 1. Reports to Stockholders.
BB&T Variable Insurance Funds
Table of Contents
Summary of Portfolio Holdings | 1 | ||||||
Expense Examples | 2 | ||||||
Schedule of Portfolio Investments | |||||||
Large Cap VIF | 3 | ||||||
Mid Cap Growth VIF | 4 | ||||||
Large Cap Growth VIF | 5 | ||||||
Capital Manager Equity VIF | 6 | ||||||
Special Opportunities Equity VIF | 7 | ||||||
Total Return Bond VIF | 8 | ||||||
Financial Statements | 12 | ||||||
Notes to Financial Statements | 18 | ||||||
Other Information | 23 | ||||||
BB&T Variable Insurance Funds
Summary of Portfolio Holdings
June 30, 2006 (Unaudited)
The BB&T Variable Insurance Funds portfolio composition was as follows at June 30, 2006:
BB&T Large Cap VIF | Percentage of net assets | ||||||
Consumer Discretionary | 10.1 | % | |||||
Consumer Staples | 5.4 | ||||||
Energy | 11.4 | ||||||
Financials | 21.1 | ||||||
Health Care | 15.7 | ||||||
Industrials | 4.5 | ||||||
Information Technology | 14.3 | ||||||
Materials | 4.0 | ||||||
Repurchase Agreement | 6.3 | ||||||
Telecommunication Services | 4.7 | ||||||
Utilities | 3.9 | ||||||
101.4 | % |
BB&T Mid Cap Growth VIF
Consumer Discretionary | 15.1 | % | |||||
Consumer Staples | 1.0 | ||||||
Exchange Traded Funds | 6.8 | ||||||
Energy | 13.7 | ||||||
Financials | 7.7 | ||||||
Health Care | 13.5 | ||||||
Industrials | 18.5 | ||||||
Information Technology | 13.3 | ||||||
Materials | 2.6 | ||||||
Repurchase Agreement | 3.2 | ||||||
Telecommunication Services | 3.1 | ||||||
Utilities | 1.5 | ||||||
100.0 | % |
BB&T Large Cap Growth VIF
Consumer Discretionary | 9.8 | % | |||||
Consumer Staples | 6.7 | ||||||
Energy | 8.0 | ||||||
Financials | 8.1 | ||||||
Health Care | 16.8 | ||||||
Industrials | 22.0 | ||||||
Information Technology | 16.1 | ||||||
Repurchase Agreement | 7.0 | ||||||
Telecommunication Services | 5.4 | ||||||
99.9 | % |
BB&T Capital Manager Equity VIF
Equity Index | 12.5 | % | |||||
International Equity | 14.0 | ||||||
Large Cap Equity | 50.0 | ||||||
Mid Cap Equity | 11.3 | ||||||
Money Market | 7.2 | ||||||
Small Cap | 4.8 | ||||||
99.8 | % |
BB&T Special Opportunities Equity VIF
Basic Materials | 7.5 | % | |||||
Call Options Written | (0.6 | ) | |||||
Consumer Discretionary | 18.2 | ||||||
Consumer Staples | 3.5 | ||||||
Energy | 18.2 | ||||||
Financials | 5.7 | ||||||
Health Care | 22.2 | ||||||
Industrials | 10.2 | ||||||
Information Technology | 13.1 | ||||||
Repurchase Agreement | 1.9 | ||||||
99.9 | % |
BB&T Total Return Bond VIF
Corporate Bonds | 34.0 | % | |||||
Federal Home Loan Bank | 1.8 | ||||||
Federal Home Loan Mortgage Corporation—Mortgage Backed Securities | 9.3 | ||||||
Federal Home Loan Mortgage Corporation—U.S. Government Agencies | 2.3 | ||||||
Federal National Mortgage Association—Mortgage Backed Securities | 17.4 | ||||||
Federal National Mortgage Association—U.S. Government Agencies | 3.2 | ||||||
Government National Mortgage Association | 7.8 | ||||||
Municipal Bonds | 6.0 | ||||||
Repurchase Agreement | 2.8 | ||||||
U.S. Treasury Bonds | 11.1 | ||||||
U.S. Treasury Notes | 14.8 | ||||||
110.5 | % |
1
BB&T Variable Insurance Funds
Expense Examples
June 30, 2006
As a shareholder of the BB&T Variable Insurance Funds, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees; and other Fund expenses.
These examples are intended to help you understand your ongoing costs (in dollars) of investing in the BB&T Variable Insurance Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006 through June 30, 2006.
Actual Example
The table below provides information about actual account values and actual expenses. You may use the information below, 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 table under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Beginning Account Value 1/1/06 | Ending Account Value 6/30/06 | Expenses Paid During Period* 1/1/06 – 6/30/06 | Expense Ratio During Period 1/1/06 – 6/30/06 | ||||||||||||||||
BB&T Large Cap VIF | $ | 1,000.00 | $ | 1,060.20 | $ | 3.83 | 0.75 | % | |||||||||||
BB&T Mid Cap Growth VIF | 1,000.00 | 1,019.30 | 3.86 | 0.77 | % | ||||||||||||||
BB&T Large Cap Growth VIF | 1,000.00 | 983.60 | 3.84 | 0.78 | % | ||||||||||||||
BB&T Capital Manager Equity VIF | 1,000.00 | 1,040.30 | 0.81 | 0.16 | % | ||||||||||||||
BB&T Special Opportunities Equity VIF | 1,000.00 | 1,080.10 | 5.47 | 1.06 | % | ||||||||||||||
BB&T Total Return Bond VIF | 1,000.00 | 990.30 | 3.80 | 0.77 | % |
* Expenses are equal to the average account value times the Fund's annualized ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year.
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on each BB&T Variable Insurance Funds' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund'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 this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value 1/1/06 | Ending Account Value 6/30/06 | Expenses Paid During Period* 1/1/06 – 6/30/06 | Expense Ratio During Period 1/1/06 – 6/30/06 | ||||||||||||||||
BB&T Large Cap VIF | $ | 1,000.00 | $ | 1,021.08 | $ | 3.76 | 0.75 | % | |||||||||||
BB&T Mid Cap Growth VIF | 1,000.00 | 1,020.98 | 3.86 | 0.77 | % | ||||||||||||||
BB&T Large Cap Growth VIF | 1,000.00 | 1,020.93 | 3.91 | 0.78 | % | ||||||||||||||
BB&T Capital Manager Equity VIF | 1,000.00 | 1,024.00 | 0.80 | 0.16 | % | ||||||||||||||
BB&T Special Opportunities Equity VIF | 1,000.00 | 1,019.54 | 5.31 | 1.06 | % | ||||||||||||||
BB&T Total Return Bond VIF | 1,000.00 | 1,020.98 | 3.86 | 0.77 | % |
* Expenses are equal to the average account value times the Fund's annualized ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year.
2
BB&T Large Cap VIF
Schedule of Portfolio Investments
June 30, 2006 (Unaudited)
Shares | Fair Value | ||||||||||
COMMON STOCKS (95.1%) | |||||||||||
Consumer Discretionary (10.1%) | |||||||||||
46,906 | Gannett Co., Inc. | $ | 2,623,453 | ||||||||
72,315 | Mattel, Inc. | 1,193,921 | |||||||||
103,883 | Tiffany & Co. | 3,430,216 | |||||||||
17,174 | V.F. Corp. | 1,166,458 | |||||||||
108,110 | Walt Disney Co. (The) | 3,243,300 | |||||||||
11,657,348 | |||||||||||
Consumer Staples (5.4%) | |||||||||||
23,052 | Altria Group, Inc. | 1,692,708 | |||||||||
45,980 | Kimberly-Clark Corp. | 2,836,966 | |||||||||
94,452 | Sara Lee Corp. | 1,513,121 | |||||||||
6,590 | SUPERVALU, Inc. | 202,313 | |||||||||
6,245,108 | |||||||||||
Energy (11.4%) | |||||||||||
36,428 | Anadarko Petroleum Corp. | 1,737,251 | |||||||||
54,300 | ChevronTexaco Corp. | 3,369,858 | |||||||||
44,028 | ConocoPhillips | 2,885,155 | |||||||||
40,253 | Duke Energy Corp. | 1,182,231 | |||||||||
48,182 | Exxon Mobil Corp. | 2,955,966 | |||||||||
15,968 | Schlumberger, Ltd. | 1,039,676 | |||||||||
13,170,137 | |||||||||||
Financials (21.1%) | |||||||||||
15,450 | Ambac Financial Group, Inc. | 1,252,995 | |||||||||
30,200 | American International Group, Inc. | 1,783,310 | |||||||||
41,500 | Bank of New York Company, Inc. (The) | 1,336,300 | |||||||||
67,433 | Citigroup, Inc. | 3,252,967 | |||||||||
34,265 | Fannie Mae | 1,648,147 | |||||||||
84,390 | J.P. Morgan Chase & Co. | 3,544,379 | |||||||||
19,727 | Lincoln National Corp. | 1,113,392 | |||||||||
31,500 | Merrill Lynch & Co., Inc. | 2,191,140 | |||||||||
42,700 | Northern Trust Corp. | 2,361,310 | |||||||||
49,651 | St. Paul Travelers Cos, Inc. (The) | 2,213,442 | |||||||||
52,894 | Washington Mutual, Inc. | 2,410,909 | |||||||||
18,097 | Wells Fargo & Co. | 1,213,947 | |||||||||
24,322,238 | |||||||||||
Health Care (15.7%) | |||||||||||
30,200 | Abbott Laboratories | 1,317,022 | |||||||||
52,388 | Amgen, Inc. (a) | 3,417,269 | |||||||||
38,769 | Bristol-Myers Squibb Co. | 1,002,566 | |||||||||
14,088 | Cigna Corp. | 1,387,809 | |||||||||
25,700 | HCA, Inc. | 1,108,955 | |||||||||
48,203 | Johnson & Johnson | 2,888,324 | |||||||||
84,262 | Merck & Co., Inc. | 3,069,665 | |||||||||
122,174 | Pfizer, Inc. | 2,867,424 | |||||||||
23,900 | Wyeth | 1,061,399 | |||||||||
18,120,433 |
Shares or Principal Amount | Fair Value | ||||||||||
COMMON STOCKS — (continued) | |||||||||||
Industrials (4.5%) | |||||||||||
6,881 | Emerson Electric Co. | $ | 576,697 | ||||||||
17,465 | General Electric Co. | 575,646 | |||||||||
19,200 | Parker-Hannifin Corp. | 1,489,920 | |||||||||
29,100 | Pitney Bowes, Inc. | 1,201,830 | |||||||||
14,500 | Textron, Inc. | 1,336,610 | |||||||||
5,180,703 | |||||||||||
Information Technology (14.3%) | |||||||||||
23,686 | Automatic Data Processing, Inc. | 1,074,160 | |||||||||
174,978 | Cisco Systems, Inc. (a) | 3,417,320 | |||||||||
141,151 | Dell, Inc. (a) | 3,445,496 | |||||||||
25,283 | First Data Corp. | 1,138,746 | |||||||||
155,138 | Intel Corp. | 2,939,865 | |||||||||
40,300 | Microsoft Corp. | 938,990 | |||||||||
91,484 | Nokia Corp., ADR | 1,853,466 | |||||||||
93,812 | Time Warner, Inc. | 1,622,948 | |||||||||
16,430,991 | |||||||||||
Materials (4.0%) | |||||||||||
20,800 | Air Products & Chemical, Inc. | 1,329,536 | |||||||||
41,916 | Alcoa, Inc. | 1,356,402 | |||||||||
31,021 | Weyerhaeuser Co. | 1,931,057 | |||||||||
4,616,995 | |||||||||||
Telecommunication Services (4.7%) | |||||||||||
69,799 | AT&T, Inc. | 1,946,694 | |||||||||
29,940 | BellSouth Corp. | 1,083,828 | |||||||||
71,025 | Verizon Communications, Inc. | 2,378,627 | |||||||||
5,409,149 | |||||||||||
Utilities (3.9%) | |||||||||||
16,467 | Dominion Resources, Inc. | 1,231,567 | |||||||||
89,504 | NiSource, Inc. | 1,954,768 | |||||||||
14,549 | SCANA Corp. | 561,300 | |||||||||
38,469 | Xcel Energy, Inc. | 737,835 | |||||||||
4,485,470 | |||||||||||
Total Common Stocks (Cost $93,731,105) | 109,638,572 | ||||||||||
REPURCHASE AGREEMENT (6.3%) | |||||||||||
$ | 7,262,814 | U.S. Bank NA, 4.80%, dated 6/30/06, maturing 7/3/06, with a maturity value of $7,265,870 (Collateralized fully by U.S. Government Agencies) | 7,262,814 | ||||||||
Total Repurchase Agreement (Cost $7,262,814) | 7,262,814 | ||||||||||
Total Investments (Cost $100,993,919) — 101.4% | 116,901,386 | ||||||||||
Net Other Assets (Liabilities) — (1.4)% | (1,607,554 | ) | |||||||||
NET ASSETS — 100.0% | $ | 115,293,832 |
See page 10 for footnote legend to the Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
3
BB&T Mid Cap Growth VIF
Schedule of Portfolio Investments
June 30, 2006 (Unaudited)
Shares | Fair Value | ||||||||||
COMMON STOCKS (90.0%) | |||||||||||
Consumer Discretionary (15.1%) | |||||||||||
19,000 | AnnTaylor Stores Corp. (a) | $ | 824,219 | ||||||||
14,400 | Carter's, Inc. (a) | 380,592 | |||||||||
26,500 | Circuit City Stores, Inc. | 721,330 | |||||||||
16,000 | Coach, Inc. (a) | 478,400 | |||||||||
11,650 | Focus Media Holding, Ltd., ADR (a) | 759,113 | |||||||||
13,850 | GameStop Corp., Class A (a) | 581,700 | |||||||||
19,500 | Guess, Inc. (a) | 814,125 | |||||||||
24,300 | Hilton Hotels Corp. | 687,204 | |||||||||
9,050 | Nutri/System, Inc. (a) | 562,277 | |||||||||
12,300 | Too, Inc. (a) | 472,197 | |||||||||
6,281,157 | |||||||||||
Consumer Staples (1.0%) | |||||||||||
2,270 | Hansen Natural Corp. (a) | 432,140 | |||||||||
Energy (13.7%) | |||||||||||
10,050 | Arch Coal, Inc. | 425,819 | |||||||||
20,900 | Cameco Corp. | 835,372 | |||||||||
13,500 | Cameron International Corp. (a) | 644,895 | |||||||||
27,850 | Global Industries Ltd. (a) | 465,095 | |||||||||
14,650 | Grant Prideco, Inc. (a) | 655,588 | |||||||||
15,000 | Holly Corp. | 723,000 | |||||||||
10,700 | Peabody Energy Corp. | 596,525 | |||||||||
18,000 | TETRA Technologies, Inc. (a) | 545,220 | |||||||||
16,500 | Weatherford International, Ltd. (a) | 818,730 | |||||||||
5,710,244 | |||||||||||
Financials (7.7%) | |||||||||||
7,000 | Affiliated Managers Group, Inc. (a) | 608,230 | |||||||||
3,250 | Bear Stearns Companies, Inc. (The) | 455,260 | |||||||||
1,950 | Chicago Mercantile Exchange Holdings, Inc. | 957,743 | |||||||||
20,800 | Host Marriott Corp. | 454,896 | |||||||||
3,250 | Legg Mason, Inc. | 323,440 | |||||||||
17,000 | optionsXpress Holdings, Inc. | 396,270 | |||||||||
3,195,839 | |||||||||||
Health Care (13.5%) | |||||||||||
6,350 | Aetna, Inc. | 253,556 | |||||||||
8,500 | Amylin Pharmaceuticals, Inc. (a) | 419,645 | |||||||||
23,400 | Celgene Corp. (a) | 1,109,861 | |||||||||
11,700 | Covance, Inc. (a) | 716,274 | |||||||||
14,850 | Humana, Inc. (a) | 797,444 | |||||||||
3,800 | Intuitive Surgical, Inc. (a) | 448,286 | |||||||||
19,550 | Pharmaceutical Product Development, Inc. | 686,596 | |||||||||
16,450 | ResMed, Inc. (a) | 772,328 | |||||||||
8,300 | Wellcare Health Plans, Inc. (a) | 407,115 | |||||||||
5,611,105 | |||||||||||
Industrials (18.5%) | |||||||||||
11,750 | Corrections Corporation of America (a) | 622,045 | |||||||||
6,750 | CSX Corp. | 475,470 | |||||||||
7,050 | Fluor Corp. | 655,157 | |||||||||
18,500 | Gol-Linhas Aereas Inteligentes, ADR | 656,750 | |||||||||
18,200 | JLG Industries, Inc. | 409,500 | |||||||||
12,200 | Joy Global, Inc. | 635,498 | |||||||||
14,000 | Manitowoc Company, Inc. | 623,000 |
Shares or Principal Amount | Fair Value | ||||||||||
COMMON STOCKS — (continued) | |||||||||||
Industrials — (continued) | |||||||||||
9,200 | McDermott International, Inc. (a) | $ | 418,324 | ||||||||
16,700 | Monster Worldwide, Inc. (a) | 712,422 | |||||||||
24,300 | Mueller Water Products Inc., Class A (a) | 423,063 | |||||||||
11,100 | Precision Castparts Corp. | 663,336 | |||||||||
9,600 | Rockwell Automation, Inc. | 691,296 | |||||||||
18,000 | Trinity Industries, Inc. | 727,199 | |||||||||
7,713,060 | |||||||||||
Information Technology (13.3%) | |||||||||||
17,400 | Amdocs, Ltd. (a) | 636,840 | |||||||||
11,300 | Amphenol Corp., Class A | 632,348 | |||||||||
10,000 | Cognizant Technology Solutions Corp., Class A (a) | 673,700 | |||||||||
119,000 | Conexant Systems, Inc. (a) | 297,500 | |||||||||
5,750 | Garmin, Ltd. | 606,280 | |||||||||
12,550 | Harris Corp. | 520,951 | |||||||||
17,150 | Intersil Corp., Class A | 398,738 | |||||||||
15,300 | Jabil Circuit, Inc. | 391,680 | |||||||||
17,300 | MEMC Electronic Materials, Inc. (a) | 648,750 | |||||||||
12,000 | Network Appliance, Inc. (a) | 423,600 | |||||||||
11,550 | SunPower Corp., Class A (a) | 323,631 | |||||||||
5,554,018 | |||||||||||
Materials (2.6%) | |||||||||||
12,000 | Airgas, Inc. | 447,000 | |||||||||
18,100 | Titanium Metals Corp. (a) | 622,278 | |||||||||
1,069,278 | |||||||||||
Telecommunication Services (3.1%) | |||||||||||
14,100 | American Tower Corp., Class A (a) | 438,792 | |||||||||
14,900 | NII Holdings, Inc. (a) | 840,062 | |||||||||
1,278,854 | |||||||||||
Utilities (1.5%) | |||||||||||
16,750 | Allegheny Energy, Inc. (a) | 620,923 | |||||||||
Total Common Stocks (Cost $29,890,359) | 37,466,618 | ||||||||||
EXCHANGE TRADED FUNDS (6.8%) | |||||||||||
14,900 | iShares Russell Midcap Growth Index Fund | 1,429,208 | |||||||||
15,400 | iShares Russell Midcap Index Fund | 1,412,950 | |||||||||
Total Exchange Traded Funds (Cost $2,947,927) | 2,842,158 | ||||||||||
REPURCHASE AGREEMENT (3.2%) | |||||||||||
$ | 1,324,866 | U.S. Bank NA, 4.80%, dated 6/30/06, maturing 7/3/06, with a maturity value of $1,325,423 (Collateralized fully by U.S. Government Agencies) | 1,324,866 | ||||||||
Total Repurchase Agreement (Cost $1,324,866) | 1,324,866 | ||||||||||
Total Investments (Cost $34,163,152) — 100.0% | 41,633,642 | ||||||||||
Net Other Assets (Liabilities) — 0.0% | 10,533 | ||||||||||
NET ASSETS — 100.0% | $ | 41,644,175 |
See page 10 for footnote legend to the Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
4
BB&T Large Cap Growth VIF
Schedule of Portfolio Investments
June 30, 2006 (Unaudited)
Shares | Fair Value | ||||||||||
COMMON STOCKS (92.9%) | |||||||||||
Consumer Discretionary (9.8%) | |||||||||||
10,500 | American Eagle Outfitters, Inc. | $ | 357,420 | ||||||||
4,300 | Best Buy Co., Inc. | 235,812 | |||||||||
7,225 | Coach, Inc. (a) | 216,028 | |||||||||
7,000 | Comcast Corp., Class A (a) | 229,180 | |||||||||
3,625 | J.C. Penney Company, Inc. | 244,724 | |||||||||
3,750 | Lowe's Companies, Inc. | 227,513 | |||||||||
11,800 | Staples, Inc. | 286,976 | |||||||||
12,250 | Starbucks Corp. (a) | 462,559 | |||||||||
2,260,212 | |||||||||||
Consumer Staples (6.7%) | |||||||||||
9,550 | Archer-Daniels-Midland Co. | 394,224 | |||||||||
7,500 | CVS Corp. | 230,250 | |||||||||
4,000 | Hershey Co. (The) | 220,280 | |||||||||
4,200 | PepsiCo, Inc. | 252,168 | |||||||||
6,000 | Procter & Gamble Co. | 333,600 | |||||||||
2,475 | Wal-Mart Stores, Inc. | 119,221 | |||||||||
1,549,743 | |||||||||||
Energy (8.0%) | |||||||||||
4,400 | Baker Hughes, Inc. | 360,139 | |||||||||
6,375 | Cameco Corp. | 254,809 | |||||||||
4,550 | Halliburton Co. | 337,656 | |||||||||
3,800 | Schlumberger Ltd. | 247,418 | |||||||||
5,000 | Valero Energy Corp. | 332,600 | |||||||||
6,450 | Weatherford International, Ltd. (a) | 320,049 | |||||||||
1,852,671 | |||||||||||
Financials (8.1%) | |||||||||||
3,550 | AllianceBernstein Holding LP | 217,047 | |||||||||
3,775 | American International Group, Inc. | 222,914 | |||||||||
1,750 | Bear Stearns Companies, Inc. (The) | 245,139 | |||||||||
13,350 | Charles Schwab Corp. (The) | 213,333 | |||||||||
578 | Chicago Mercantile Exchange Holdings, Inc. | 283,884 | |||||||||
1,550 | Goldman Sachs Group, Inc. (The) | 233,167 | |||||||||
3,250 | Merrill Lynch & Co., Inc. | 226,070 | |||||||||
3,125 | Prudential Financial, Inc. | 242,813 | |||||||||
1,884,367 | |||||||||||
Health Care (16.8%) | |||||||||||
3,375 | Aetna, Inc. | 134,764 | |||||||||
5,050 | AmerisourceBergen Corp. | 211,696 | |||||||||
3,173 | Amgen, Inc. (a) | 206,975 | |||||||||
7,200 | Amylin Pharmaceuticals, Inc. (a) | 355,464 | |||||||||
5,865 | Caremark Rx, Inc. | 292,488 | |||||||||
7,750 | Celgene Corp. (a) | 367,583 | |||||||||
3,200 | Fisher Scientific International, Inc. (a) | 233,760 | |||||||||
2,875 | Genentech, Inc. (a) | 235,175 | |||||||||
4,253 | Gilead Sciences, Inc. (a) | 251,607 | |||||||||
6,500 | Humana, Inc. (a) | 349,050 | |||||||||
4,449 | Medco Health Solutions, Inc. (a) | 254,839 | |||||||||
4,550 | Medtronic, Inc. | 213,486 | |||||||||
7,125 | Novartis AG, ADR | 384,179 | |||||||||
1,800 | Wellpoint, Inc . (a) | 130,986 | |||||||||
6,200 | Wyeth | 275,342 | |||||||||
3,897,394 |
Shares or Principal Amount | Fair Value | ||||||||||
COMMON STOCKS — (continued) | |||||||||||
Industrials (22.0%) | |||||||||||
7,407 | Boeing Co. | $ | 606,708 | ||||||||
6,200 | Caterpillar, Inc. | 461,776 | |||||||||
5,304 | Danaher Corp. | 341,153 | |||||||||
4,250 | Emerson Electric Co. | 356,193 | |||||||||
2,368 | Fedex Corp. | 276,724 | |||||||||
3,800 | Fluor Corp. | 353,134 | |||||||||
10,300 | General Electric Co. | 339,488 | |||||||||
4,700 | Illinois Tool Works, Inc. | 223,250 | |||||||||
4,500 | Joy Global, Inc. | 234,405 | |||||||||
10,200 | Monster Worldwide, Inc. (a) | 435,132 | |||||||||
5,450 | Precision Castparts Corp. | 325,692 | |||||||||
4,000 | Union Pacific Corp. | 371,840 | |||||||||
3,995 | United Parcel Service, Inc., Class B | 328,908 | |||||||||
7,250 | United Technologies Corp. | 459,795 | |||||||||
5,114,198 | |||||||||||
Information Technology (16.1%) | |||||||||||
6,625 | Agilent Technologies, Inc. (a) | 209,085 | |||||||||
3,650 | Apple Computer, Inc. (a) | 208,488 | |||||||||
5,875 | Broadcom Corp., Class A (a) | 176,544 | |||||||||
23,050 | Cisco Systems, Inc. (a) | 450,166 | |||||||||
13,700 | Corning, Inc. (a) | 331,403 | |||||||||
18,200 | EMC Corp. (a) | 199,654 | |||||||||
655 | Google, Inc. (a) | 274,661 | |||||||||
10,600 | Hewlett-Packard Co. | 335,808 | |||||||||
4,050 | Marvel Technology Group, Ltd. (a) | 179,537 | |||||||||
15,300 | Microsoft Corp. | 356,490 | |||||||||
5,700 | Motorola, Inc. | 114,855 | |||||||||
5,800 | Paychex, Inc. | 226,084 | |||||||||
30,800 | Oracle Corp. (a) | 446,291 | |||||||||
5,750 | QUALCOMM, Inc. | 230,403 | |||||||||
3,739,469 | |||||||||||
Telecommunication Services (5.4%) | |||||||||||
10,700 | America Movil SA de CV, Series L, ADR | 355,882 | |||||||||
7,675 | American Tower Corp., Class A (a) | 238,846 | |||||||||
9,100 | AT&T, Inc. | 253,799 | |||||||||
6,950 | NII Holdings, Inc. (a) | 391,841 | |||||||||
1,240,368 | |||||||||||
Total Common Stocks (Cost $20,104,497) | 21,538,422 | ||||||||||
REPURCHASE AGREEMENT (7.0%) | |||||||||||
$ | 1,626,433 | U.S. Bank NA, 4.80%, dated 6/30/06, maturing 7/3/06, with a maturity value of $1,627,117(Collateralized fully by U.S. Government Agencies) | 1,626,433 | ||||||||
Total Repurchase Agreement (Cost $1,626,433) | 1,626,433 | ||||||||||
Total Investments (Cost $21,730,930) — 99.9% | 23,164,855 | ||||||||||
Net Other Assets (Liabilities) — 0.1% | 15,847 | ||||||||||
NET ASSETS — 100.0% | $ | 23,180,702 |
See page 10 for footnote legend to the Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
5
BB&T Capital Manager Equity VIF
Schedule of Portfolio Investments
June 30, 2005 (Unaudited)
Shares | Fair Value |
AFFILIATED INVESTMENT COMPANIES (99.8%) | |||||||||||
469,848 | BB&T Equity Index Fund, Class A | $ | 4,007,802 | ||||||||
415,021 | BB&T International Equity Fund, Institutional Class | 4,473,924 | |||||||||
501,792 | BB&T Large Cap Fund, Institutional Class | 9,654,478 | |||||||||
703,682 | BB&T Large Cap Growth Fund, Institutional Class | 6,347,211 | |||||||||
105,294 | BB&T Mid Cap Growth Fund, Institutional Class | 1,444,639 | |||||||||
168,059 | BB&T Mid Cap Value Fund, Institutional Class | 2,178,038 | |||||||||
152,625 | BB&T Small Cap Fund, Institutional Class | 2,306,171 | |||||||||
1,526,712 | BB&T U.S. Treasury Money Market Fund, Institutional Class | 1,526,712 | |||||||||
31,938,975 | |||||||||||
Total Affiliated Investment Companies (Cost $29,397,081) | 31,938,975 | ||||||||||
Total Investments (Cost $29,397,081) — 99.8% | 31,938,975 | ||||||||||
Net Other Assets (Liabilities) — 0.2% | 79,761 | ||||||||||
NET ASSETS — 100.0% | $ | 32,018,736 |
See page 10 for footnote legend to the Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
6
BB&T Special Opportunities Equity VIF
Schedule of Portfolio Investments
June 30, 2006 (Unaudited)
Shares | Fair Value | ||||||||||
COMMON STOCKS (98.6%) | |||||||||||
Basic Materials (7.5%) | |||||||||||
25,500 | Aracruz Celulose SA, ADR | $ | 1,336,710 | ||||||||
36,000 | Dow Chemical Co. (The) | 1,405,080 | |||||||||
2,741,790 | |||||||||||
Consumer Discretionary (18.2%) | |||||||||||
47,000 | Comcast Corp., Class A (a) | 1,538,780 | |||||||||
11,500 | Costco Wholesale Corp. | 656,995 | |||||||||
23,515 | Laureate Education, Inc. (a) | 1,002,444 | |||||||||
65,340 | News Corp., Class A | 1,253,221 | |||||||||
52,800 | WCI Communities, Inc. (a) | 1,063,392 | |||||||||
22,800 | YUM! Brands, Inc. | 1,146,156 | |||||||||
6,660,988 | |||||||||||
Consumer Staples (3.5%) | |||||||||||
44,600 | Smithfield Foods, Inc. (a) | 1,285,818 | |||||||||
Energy (18.2%) | |||||||||||
21,300 | Apache Corp. | 1,453,725 | |||||||||
34,000 | CONSOL Energy, Inc. | 1,588,480 | |||||||||
15,000 | Noble Corp. | 1,116,300 | |||||||||
23,300 | Pioneer Natural Resources Co. | 1,081,353 | |||||||||
29,200 | Weatherford International, Ltd. (a) | 1,448,904 | |||||||||
6,688,762 | |||||||||||
Financials (5.7%) | |||||||||||
2,600 | Markel Corp. (a) | 902,200 | |||||||||
17,500 | Wells Fargo & Co. | 1,173,900 | |||||||||
2,076,100 | |||||||||||
Health Care (22.2%) | |||||||||||
13,000 | Amgen, Inc. (a) | 847,990 | |||||||||
15,750 | Bard (C.R.), Inc. | 1,153,845 | |||||||||
105,248 | Emdeon Corp. (a) | 1,306,128 | |||||||||
31,355 | Kos Pharmaceuticals, Inc. (a) | 1,179,575 | |||||||||
16,400 | Laboratory Corporation of America Holdings (a) | 1,020,572 | |||||||||
23,300 | Manor Care, Inc. | 1,093,236 | |||||||||
72,301 | MedCath Corp. (a) | 1,362,151 | |||||||||
4,300 | UnitedHealth Group, Inc. | 192,554 | |||||||||
8,156,051 |
Shares or Principal Amount | Fair Value | ||||||||||
COMMON STOCKS — (continued) | |||||||||||
Industrials (10.2%) | |||||||||||
15,500 | L-3 Communications Holdings, Inc. | $ | 1,169,010 | ||||||||
81,330 | Nalco Holdings Co. (a) | 1,433,848 | |||||||||
14,000 | PACCAR, Inc. | 1,153,320 | |||||||||
3.756,178 | |||||||||||
Information Technology (13.1%) | |||||||||||
48,700 | Activision, Inc. (a) | 554,206 | |||||||||
205,680 | ARM Holdings PLC, ADR | 1,287,557 | |||||||||
44,700 | ATI Technologies, Inc. (a) | 652,620 | |||||||||
29,600 | Fair Issac Corp. | 1,074,776 | |||||||||
78,350 | Symantec Corp. (a) | 1,217,559 | |||||||||
4,786,718 | |||||||||||
Total Common Stocks (Cost $31,125,868) | 36,152,405 | ||||||||||
REPURCHASE AGREEMENT (1.9%) | |||||||||||
$ | 705,337 | U.S. Bank NA, 4.80%, dated 6/30/06, maturing 7/3/06, with a maturity value of $705,634 (Collateralized fully by U.S. Government Agencies) | 705,337 | ||||||||
Total Repurchase Agreement (Cost $705,337) | 705,337 | ||||||||||
Total Investments (Cost $31,831,205) — 100.5% | 36,857,742 | ||||||||||
Net Other Assets (Liabilities) — (0.5)% | (189,552 | ) | |||||||||
NET ASSETS — 100.0% | $ | 36,668,190 |
See page 10 for footnote legend to the Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
7
BB&T Total Return Bond VIF
Schedule of Portfolio Investments
June 30, 2006 (Unaudited)
Principal Amount | Fair Value | ||||||||||
CORPORATE BONDS (34.0%) | |||||||||||
Aerospace & Defense (0.4%) | |||||||||||
$ | 85,000 | Raytheon Co., 6.15%, 11/1/08 | $ | 85,831 | |||||||
Airlines (0.7%) | |||||||||||
155,000 | Sousthwest Airlines Co., 5.25%, 10/1/14 | 145,903 | |||||||||
Auto — Cars/Light Trucks (0.6%) | |||||||||||
125,000 | DaimlerChrysler NA Holdings, 4.875%, 6/15/10 | 119,488 | |||||||||
Banking & Financial Services (25.9%) | |||||||||||
87,000 | Bank of America Commercial Mortgage, Inc., Series 2004-6 Class A5, 4.81%, 12/10/42 | 80,935 | |||||||||
35,000 | Bank of America Corp., 4.25%, 10/1/10 | 33,192 | |||||||||
155,000 | Boeing Capital Corp., 7.375%, 9/27/10 | 164,685 | |||||||||
184,000 | Centex Home Equity, Series 2005-C, Class AF6, 4.64%, 6/25/35 | 173,915 | |||||||||
120,000 | Chase Credit Card Master Trust, 5.31%, Series 2003-3, Class A 10/15/10 (c) * | 120,240 | |||||||||
345,000 | Chase Funding Mortgate Loan Asset-Backed, Series 2003-4, Class 1A5, 5.42%, 5/25/33 | 334,933 | |||||||||
82,000 | CIT Group, Inc., 5.00%, 2/13/14 | 76,649 | |||||||||
120,000 | CIT Group, Inc., 5.72%, Series 2006-C4, Class A2, 3/15/49 | 119,506 | |||||||||
220,000 | Countrywide Asset-Backed Certificates, 6.05%, Series 2006-11, Class 1AF3 12/25/08 | 219,562 | |||||||||
490,000 | Countrywide Asset-Backed Certificates, Series 2004-3, Class 3A3, 5.46%, 8/25/34 (c) * | 491,944 | |||||||||
284,000 | Countrywide Asset-Backed Certificates, Series 2005-4 Class 3AV2, 5.29%, 10/25/35 (c) * | 284,280 | |||||||||
250,000 | CS First Boston Mortgage Securities Corp., Series 2004-C1, Class A2, 3.52%, 1/15/37 | 239,286 | |||||||||
192,000 | Gatx Financial Corp., 5.125%, 4/15/10 | 185,847 | |||||||||
310,000 | GE Capital Commercial Mortgage Corp., Series 2004-C1, Class A2, 3.915%, 11/10/38 | 293,191 | |||||||||
190,000 | JP Morgan Chase Commercial Mortgage Securities Co., 5.875%, Series 2006-LDP7, 4/15/45, Class A3A | 189,466 | |||||||||
163,000 | Lehman Brothers Holdings, Series MTNG, 4.80%, 3/13/14 | 150,697 | |||||||||
190,000 | Merrill Lynch & Co., 6.00%, 2/17/09 | 191,261 | |||||||||
170,000 | Morgan Stanley, 4.25%, 5/15/10 | 160,502 | |||||||||
480,000 | Residential Asset Mortgage Products, Inc., Series 2005-RZ4, Class A2, 5.34%, 11/25/35 (c) * | 480,790 | |||||||||
408,000 | Residential Asset Securities Corp., Series 2005-KS6, Class A2, 5.23%, 7/25/35 (c) * | 408,175 | |||||||||
170,000 | Structured Asset Investment Loan Trust, Series 2005-11, Class A6, 5.30%, 1/25/36 (c) * | 170,337 | |||||||||
147,000 | Synovus Financial, 4.875%, 2/15/13 | 138,998 | |||||||||
175,000 | Wachovia Bank Commercial Mortgage Trust, Series 2006-C23, Class A4, 5.42%, 1/15/45 | 168,789 | |||||||||
140,000 | Wachovia Corp., 4.375%, 6/1/10 | 133,874 | |||||||||
180,000 | Wells Fargo Home Equity Trust, Series 2004-2, Class AI3, 3.97%, 9/25/24 | 177,811 | |||||||||
5,188,865 |
Principal Amount | Fair Value | ||||||||||
CORPORATE BONDS — (continued) | |||||||||||
Computer Services (1.0%) | |||||||||||
$ | 195,000 | Electronic Data Systems, Series B, 6.50%, 8/1/13 * | $ | 192,371 | |||||||
Correctional Institutions (0.5%) | |||||||||||
102,000 | Corrections Corp of America, 6.25%, 3/15/13 | 95,880 | |||||||||
Hotels & Motels (0.3%) | |||||||||||
50,000 | ITT Corp (New), 7.375%, 11/15/15 | 50,375 | |||||||||
Office Automation & Equipment (0.2%) | |||||||||||
50,000 | Xerox Corp., 6.40%, 3/15/16 | 47,188 | |||||||||
Paper & Related Products (0.9%) | |||||||||||
172,000 | International Paper Co., 6.75%, 9/1/11 | 177,718 | |||||||||
Retail (0.4%) | |||||||||||
75,000 | Lowe's Cos., Inc., 8.25%, 6/1/10 | 81,807 | |||||||||
Telecommunications (1.5%) | |||||||||||
75,000 | American Movil SA de CV, 5.75%, 1/15/15 | 69,879 | |||||||||
170,000 | Motorola, Inc., 7.50%, 5/15/25 | 185,980 | |||||||||
45,000 | Sprint Capital Corp., 6.875%, 11/15/28 | 45,333 | |||||||||
301,192 | |||||||||||
Utilities (1.6%) | |||||||||||
215,000 | American Electric Power, Series C, 5.375%, 3/15/10 | 211,632 | |||||||||
105,000 | General Electric Co., 5.00%, 2/1/13 | 100,573 | |||||||||
312,205 | |||||||||||
Total Corporate Bonds (Cost $6,963,702) | 6,798,823 | ||||||||||
MORTGAGE-BACKED SECURITIES (34.5%) | |||||||||||
Federal Home Loan Mortgage Corp. (9.3%) | |||||||||||
659,351 | 6.00%, 10/1/19, Pool # G11679 | 660,816 | |||||||||
90,626 | 5.50%, 11/1/20, Pool # J02711 | 88,901 | |||||||||
161,689 | 4.50%, 6/1/35, Pool # G01842 | 146,687 | |||||||||
148,834 | 5.50%, 7/1/35, Pool # A36540 | 143,046 | |||||||||
109,561 | 6.00%, 7/1/35, Pool # A36304 | 107,887 | |||||||||
89,188 | 5.50%, 12/1/35, Pool # A40359 | 85,720 | |||||||||
177,115 | 6.00%, 1/1/36, Pool # A42269 | 174,409 | |||||||||
276,599 | 5.50%, 2/1/36, Pool # G08111 | 265,684 | |||||||||
198,523 | 5.50%, 4/1/36, Pool # A44445 | 190,690 | |||||||||
1,863,840 | |||||||||||
Federal National Mortgage Association (17.4%) | |||||||||||
118,863 | 4.50%, 10/1/18, Pool # 752030 | 112,346 | |||||||||
82,623 | 5.50%, 11/1/20, Pool # 843972 | 81,102 | |||||||||
95,664 | 5.50%, 12/1/20, Pool # 831138 | 93,903 | |||||||||
219,118 | 5.50%, 5/1/21, Pool # 895628 | 215,085 | |||||||||
1,084,869 | 5.50%, 1/1/34, Pool # 757571 | 1,042,063 | |||||||||
256,024 | 6.00%, 9/1/34, Pool # 790912 | 252,497 | |||||||||
312,968 | 6.50%, 9/1/34, Pool # 796569 | 314,641 | |||||||||
314,895 | 6.00%, 2/1/35, Pool # 735269 | 309,984 | |||||||||
227,780 | 7.00%, 6/1/35, Pool # 255820 | 233,029 | |||||||||
130,297 | 5.00%, 9/1/35, Pool # 757857 | 121,801 | |||||||||
117,439 | 5.50%, 2/1/36, Pool #256101 | 112,879 | |||||||||
75,143 | 6.00%, 2/1/36, Pool # 865639 | 73,971 | |||||||||
119,876 | 6.00%, 5/1/36, Pool #891591 | 118,006 | |||||||||
405,000 | 6.00%, 7/15/36, Pool # 40785 (b) | 398,546 | |||||||||
3,479,853 |
Continued
8
BB&T Total Return Bond VIF
Schedule of Portfolio Investments — (continued)
June 30, 2006 (Unaudited)
Principal Amount | Fair Value | ||||||||||
MORTGAGE-BACKED SECURITIES — (continued) | |||||||||||
Government National Mortgage Association (7.8%) | |||||||||||
$ | 1,640,000 | 5.00%, 7/15/36, Pool # 5124 (b) | $ | 1,551,850 | |||||||
Total Mortgage-Backed Securities (Cost $7,087,255) | 6,895,543 | ||||||||||
MUNICIPAL BONDS (6.0%) | |||||||||||
California (1.6%) | |||||||||||
230,000 | Fresno County Pension Obligation, Series A, 4.20%, 8/15/13, FGIC | 210,847 | |||||||||
110,000 | San Bernardino County Financing Authority, Pension Obligation Revenue, 6.87%, 8/1/08, MBIA | 112,805 | |||||||||
323,652 | |||||||||||
Florida (1.2%) | |||||||||||
35,000 | Gainesville, Florida Post Taxable-Retiree Health Care Plan, 4.68%, 10/1/13 | 32,924 | |||||||||
125,000 | Gainesville, Florida Post Taxable-Retiree Health Care Plan, 4.71%, 10/1/14 | 116,932 | |||||||||
45,000 | Palm Beach County, Florida, 5.735%, 6/1/12 | 45,112 | |||||||||
45,000 | Palm Beach County, Florida, 5.78%, 6/1/13 | 45,135 | |||||||||
240,103 | |||||||||||
Illinois (0.9%) | |||||||||||
105,000 | Chicago, Series B, 5.25%, 1/1/12, XLCA | 102,891 | |||||||||
85,000 | Illinois State, 3.75%, 6/1/12 | 76,832 | |||||||||
179,723 | |||||||||||
New York (1.6%) | |||||||||||
125,000 | New York State, Series D, 5.20%, 4/15/11 | 122,642 | |||||||||
105,000 | New York State, Series D, 5.21%, 4/15/12 | 103,075 | |||||||||
100,000 | Sales Tax Asset Receivables Corp., Series B, 4.06%, 10/15/10, FGIC | 94,073 | |||||||||
319,790 | |||||||||||
Texas (0.7%) | |||||||||||
155,000 | Brownsville Utility System, Series B, 4.92%, 9/1/14, AMBAC | 147,219 | |||||||||
Total Municipal Bonds (Cost $1,237,422) | 1,210,487 |
Principal Amount | Fair Value | ||||||||||
U.S. GOVERNMENT AGENCIES (7.3%) | |||||||||||
Federal Home Loan Bank (1.8%) | |||||||||||
$ | 110,000 | 4.85%, 8/10/10, Callable 8/10/06 @ 100 | $ | 107,052 | |||||||
245,000 | 5.875%, 2/15/11 | 247,962 | |||||||||
355,014 | |||||||||||
Federal Home Loan Mortgage Corp. (2.3%) | |||||||||||
125,000 | Series MTN, 4.50%, 6/15/10, Callable 6/15/07 @ 100 | 120,404 | |||||||||
350,000 | 4.875%, 11/15/13 | 336,774 | |||||||||
457,178 | |||||||||||
Federal National Mortgage Association (3.2%) | |||||||||||
452,000 | 6.625%, 11/15/10 | 471,863 | |||||||||
176,000 | 6.125%, 3/15/12 | 181,328 | |||||||||
653,191 | |||||||||||
Total U.S. Government Agencies (Cost $1,488,612) | 1,465,383 | ||||||||||
U.S. TREASURY BONDS (11.1%) | |||||||||||
1,701,000 | 8.875%, 8/15/17 | 2,219,672 | |||||||||
Total U.S. Treasury Bonds (Cost $2,246,010) | 2,219,672 | ||||||||||
U.S. TREASURY NOTES (14.8%) | |||||||||||
367,000 | 4.50%, 2/28/11 | 357,854 | |||||||||
279,000 | 2.375%, 4/15/11 | 282,118 | |||||||||
755,000 | 4.875%, 4/30/11 | 747,303 | |||||||||
228,000 | 4.875%, 5/31/11 | 225,684 | |||||||||
1,432,000 | 4.00%, 11/15/12 | 1,345,968 | |||||||||
Total U.S. Treasury Notes (Cost $2,978,538) | 2,958,927 | ||||||||||
REPURCHASE AGREEMENT (2.8%) | |||||||||||
562,327 | U.S. Bank NA, 4.80%, dated 6/30/06, maturing 7/3/06, with a maturity value of $562,564 (Collateralized fully by U.S. Government Agencies) | 562,327 | |||||||||
Total Repurchase Agreement (Cost $562,327) | 562,327 | ||||||||||
Total Investments (Cost $22,563,866) — 110.5% | 22,111,162 | ||||||||||
Net Other Assets (Liabilities) — (10.5)% | (2,096,502 | ) | |||||||||
NET ASSETS — 100.0% | $ | 20,014,660 |
See page 10 for footnote legend to the Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
9
Footnote Legend to the Schedules of Portfolio Investments
June 30, 2006 (Unaudited)
(a) Represents non-income producing security.
(b) Represents a security purchased on a when-issued basis. At June 30, 2006, total cost of investments purchased on a when-issued basis for the BB&T Total Return Bond VIF was $1,971,205.
(c) Represents that all or a portion of security was pledged as collateral for securities purchased on a when-issued basis at June 30, 2006.
* The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of June 30, 2006. The maturity date reflected is the final maturity date.
ADR — American Depositary Receipt.
AMBAC — Insured by AMBAC Indemnity Corp.
FGIC — Insured by Financial Guaranty Insurance Corp.
MBIA — Insured by the Municipal Bond Insurance Association.
NA — North America.
REIT — Real Estate Investment Trust.
XLCA — Insured by XL Capital Assurance.
See accompaying notes to financial statements.
10
(This page has been left blank intentionally.)
11
BB&T Variable Insurance Funds
Statements of Assets and Liabilities
June 30, 2006 (Unaudited)
BB&T Large Cap VIF | BB&T Mid Cap Growth VIF | BB&T Large Cap Growth VIF | BB&T Capital Manager Equity VIF | BB&T Special Opportunities Equity VIF | BB&T Total Return Bond VIF | ||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||
Unaffiliated investments, at cost | $ | 93,731,105 | $ | 32,838,286 | $ | 20,104,497 | $ | — | $ | 31,125,868 | $ | 22,001,539 | |||||||||||||||
Investment in affiliates, at cost | — | — | — | 29,397,081 | — | — | |||||||||||||||||||||
Investments, at cost | 93,731,105 | 32,838,286 | 20,104,497 | 29,397,081 | 31,125,868 | 22,001,539 | |||||||||||||||||||||
Unrealized appreciation (depreciation) | 15,907,467 | 7,470,490 | 1,433,925 | 2,541,894 | 5,026,537 | (452,704 | ) | ||||||||||||||||||||
Investments, at value | 109,638,572 | 40,308,776 | 21,538,422 | 31,938,975 | 36,152,405 | 21,548,835 | |||||||||||||||||||||
Repurchase agreements, at cost | 7,262,814 | 1,324,866 | 1,626,433 | — | 705,337 | 562,327 | |||||||||||||||||||||
Interest and dividends receivable | 156,062 | 10,133 | 10,653 | 78,888 | 20,855 | 192,993 | |||||||||||||||||||||
Receivable for investments sold | 1,864,916 | — | — | — | 96,938 | — | |||||||||||||||||||||
Receivable for capital shares issued | 44,637 | 20,980 | 18,991 | 3,466 | 16,486 | 13,724 | |||||||||||||||||||||
Prepaid and other expenses | 15,200 | 965 | 607 | 729 | 782 | 463 | |||||||||||||||||||||
Total Assets | 118,982,201 | 41,665,720 | 23,195,106 | 32,022,058 | 36,992,803 | 22,318,342 | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||
Call options written (premiums received $0; $0; $0; $0; $110,988; $0) | — | — | — | — | 234,800 | — | |||||||||||||||||||||
Payable for investments purchased | 3,626,802 | — | — | — | 56,457 | 2,285,664 | |||||||||||||||||||||
Payable for capital shares redeemed | 674 | 118 | 85 | 1,325 | — | 364 | |||||||||||||||||||||
Accrued expenses and other payables: | |||||||||||||||||||||||||||
Investment advisory fees | 47,011 | 16,470 | 9,345 | — | 23,267 | 8,145 | |||||||||||||||||||||
Administration fees | 10,586 | 3,684 | 2,101 | — | 3,245 | 1,828 | |||||||||||||||||||||
Fund accounting fees | 940 | 329 | 187 | 257 | 291 | 163 | |||||||||||||||||||||
Transfer agency fees | 1,065 | 454 | 312 | 397 | 416 | 288 | |||||||||||||||||||||
Compliance service fees | 1,248 | 475 | 252 | 348 | 453 | 217 | |||||||||||||||||||||
Trustee fees | 43 | 15 | 9 | 12 | 13 | 8 | |||||||||||||||||||||
Other | — | — | 2,113 | 983 | 5,671 | 7,005 | |||||||||||||||||||||
Total Liabilities | 3,688,369 | 21,545 | 14,404 | 3,322 | 324,613 | 2,303,682 | |||||||||||||||||||||
Net Assets: | |||||||||||||||||||||||||||
Capital | 90,756,630 | 28,020,232 | 21,358,923 | 28,350,971 | 29,300,519 | 20,765,560 | |||||||||||||||||||||
Accumulated net investment income (loss) | (313 | ) | (20,671 | ) | (85 | ) | 74,210 | (846 | ) | 80,303 | |||||||||||||||||
Accumulated realized gains/(losses) from investment transactions | 8,630,048 | 6,174,124 | 387,939 | 1,051,661 | 2,465,792 | (378,499 | ) | ||||||||||||||||||||
Net unrealized appreciation/ depreciation on investments | 15,907,467 | 7,470,490 | 1,433,925 | 2,541,894 | 4,902,725 | (452,704 | ) | ||||||||||||||||||||
Net Assets | $ | 115,293,832 | $ | 41,644,175 | $ | 23,180,702 | $ | 32,018,736 | $ | 36,668,190 | $ | 20,014,660 | |||||||||||||||
Outstanding Units of Beneficial Interest (Shares) | 7,841,644 | 2,616,969 | 2,295,098 | 2,944,040 | 2,673,953 | 2,080,189 | |||||||||||||||||||||
Net Asset Value — offering and redemption price per share | $ | 14.70 | $ | 15.91 | $ | 10.10 | $ | 10.88 | $ | 13.71 | $ | 9.62 | |||||||||||||||
See accompanying notes to the financial statements.
12
BB&T Variable Insurance Funds
Statements of Operations
For the Six Months Ended June 30, 2006 (Unaudited)
BB&T Large Cap VIF | BB&T Mid Cap GrowthVIF | BB&T Large Cap Growth VIF | BB&T Capital Manager Equity VIF | BB&T Special Opportunities Equity VIF | BB&T Total Return Bond VIF | ||||||||||||||||||||||
Investment Income: | |||||||||||||||||||||||||||
Interest income | $ | 108,164 | $ | 25,900 | $ | 14,211 | $ | — | $ | 62,722 | $ | 480,787 | |||||||||||||||
Dividend income | 1,429,360 | 284,866 | 127,571 | — | 139,567 | — | |||||||||||||||||||||
Dividend income from affiliates | — | — | — | 210,287 | — | — | |||||||||||||||||||||
Total Investment Income: | 1,537,524 | 310,766 | 141,782 | 210,287 | 202,289 | 480,787 | |||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||
Investment advisory fees | 431,210 | 156,147 | 87,204 | 38,371 | 137,616 | 57,383 | |||||||||||||||||||||
Administration fees | 65,777 | 23,814 | 13,302 | 17,321 | 19,413 | 10,795 | |||||||||||||||||||||
Fund accounting fees | 13,147 | 5,531 | 3,567 | 3,453 | 4,392 | 4,693 | |||||||||||||||||||||
Transfer agency fees | 5,828 | 2,110 | 1,179 | 1,535 | 1,720 | 957 | |||||||||||||||||||||
Compliance service fees | 6,111 | 2,391 | 1,493 | 1,918 | 1,605 | 996 | |||||||||||||||||||||
Custodian fees | 4,547 | 1,852 | 1,129 | 1,464 | 1,103 | 590 | |||||||||||||||||||||
Professional fees | 43,346 | 16,963 | 10,305 | 13,061 | 13,253 | 7,677 | |||||||||||||||||||||
Trustee fees | 7,140 | 2,757 | 1,678 | 2,092 | 2,298 | 1,395 | |||||||||||||||||||||
Other | 2,364 | 596 | 427 | 709 | 753 | 477 | |||||||||||||||||||||
Total expenses before waivers | 579,470 | 212,161 | 120,284 | 79,924 | 182,153 | 84,963 | |||||||||||||||||||||
Less expenses waived by the Investment Advisor | (142,272 | ) | (50,642 | ) | (28,462 | ) | (38,371 | ) | — | (11,270 | ) | ||||||||||||||||
Less expenses waived by the Administrator | — | — | — | (17,321 | ) | — | — | ||||||||||||||||||||
Net Expenses | 437,198 | 161,519 | 91,822 | 24,232 | 182,153 | 73,693 | |||||||||||||||||||||
Net Investment Income (Loss) | 1,100,326 | 149,247 | 49,960 | 186,055 | 20,136 | 407,094 | |||||||||||||||||||||
Realized/Unrealized Gains (Losses) on Investments: | |||||||||||||||||||||||||||
Net realized gains (losses) on option contracts | — | — | — | — | (22,289 | ) | — | ||||||||||||||||||||
Net realized gains (losses) from investment securities | 9,541,014 | 3,798,257 | 445,396 | — | 678,852 | (273,502 | ) | ||||||||||||||||||||
Net realized gains (losses) on investments with affiliates | — | — | — | 5,588 | — | — | |||||||||||||||||||||
Change in unrealized appreciation/ depreciation of investment securities | (3,775,135 | ) | (3,309,929 | ) | (881,175 | ) | 936,942 | 1,945,827 | (326,570 | ) | |||||||||||||||||
Net realized/unrealized gains (losses) on investments | 5,765,879 | 488,328 | (435,779 | ) | 942,530 | 2,602,390 | (600,072 | ) | |||||||||||||||||||
Change in net assets from operations | $ | 6,866,205 | $ | 637,575 | $ | (385,819 | ) | $ | 1,128,585 | $ | 2,622,526 | $ | (192,978 | ) | |||||||||||||
See accompanying notes to the financial statements.
13
BB&T Variable Insurance Funds
Statements of Changes in Net Assets
BB&T Large Cap VIF | BB&T Mid Cap Growth VIF | BB&T Large Cap Growth VIF | |||||||||||||||||||||||||
For the Six Months Ended June 30, 2006 | For the Year Ended December 31, 2005 | For the Six Months Ended June 30, 2006 | For the Year Ended December 31, 2005 | For the Six Months Ended June 30, 2006 | For the Year Ended December 31, 2005 | ||||||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||||||||||
From Investment Activities | |||||||||||||||||||||||||||
Operations: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 1,100,326 | $ | 2,187,602 | $ | 149,247 | $ | (94,866 | ) | $ | 49,960 | $ | 90,564 | ||||||||||||||
Net realized gains (losses) on investments | 9,541,014 | 5,648,845 | 3,798,257 | 2,740,583 | 445,396 | 761,512 | |||||||||||||||||||||
Change in unrealized appreciation/depreciation of investment securities | (3,775,135 | ) | (351,242 | ) | (3,309,929 | ) | 2,171,358 | (881,175 | ) | (393,355 | ) | ||||||||||||||||
Change in net assets from operations | 6,866,205 | 7,485,205 | 637,575 | 4,817,075 | (385,819 | ) | 458,721 | ||||||||||||||||||||
Dividends to Shareholders: | |||||||||||||||||||||||||||
Net investment income | (1,125,016 | ) | (2,163,186 | ) | (169,918 | ) | — | (50,045 | ) | (91,612 | ) | ||||||||||||||||
Net realized gains from investment transactions | — | — | — | — | — | — | |||||||||||||||||||||
Change in net assets from shareholder dividends | (1,125,016 | ) | (2,163,186 | ) | (169,918 | ) | — | (50,045 | ) | (91,612 | ) | ||||||||||||||||
Capital Transactions: | |||||||||||||||||||||||||||
Proceeds from shares issued | 1,562,375 | 2,804,935 | 3,491,314 | 3,785,288 | 891,312 | 1,803,928 | |||||||||||||||||||||
Dividends reinvested | 1,125,016 | 2,712,897 | 169,918 | — | 50,045 | 183,178 | |||||||||||||||||||||
Value of shares redeemed | (6,782,744 | ) | (8,803,839 | ) | (1,575,212 | ) | (1,919,195 | ) | (847,962 | ) | (1,130,736 | ) | |||||||||||||||
Change in net assets from capital transactions | (4,095,353 | ) | (3,286,007 | ) | 2,086,020 | 1,866,093 | 93,395 | 856,370 | |||||||||||||||||||
Change in net assets | 1,645,836 | 2,036,012 | 2,553,677 | 6,683,168 | (342,469 | ) | 1,223,479 | ||||||||||||||||||||
Net Assets: | |||||||||||||||||||||||||||
Beginning of period | 113,647,996 | 111,611,984 | 39,090,498 | 32,407,330 | 23,523,171 | 22,299,692 | |||||||||||||||||||||
End of period | $ | 115,293,832 | $ | 113,647,996 | $ | 41,644,175 | $ | 39,090,498 | $ | 23,180,702 | $ | 23,523,171 | |||||||||||||||
Accumulated net investment income (loss) | $ | (313 | ) | $ | 24,377 | $ | (20,671 | ) | $ | — | $ | (85 | ) | $ | — | ||||||||||||
Share Transactions: | |||||||||||||||||||||||||||
Issued | 106,559 | 208,216 | 210,948 | 266,255 | 86,236 | 180,801 | |||||||||||||||||||||
Reinvested | 76,380 | 199,567 | 9,914 | — | 4,797 | 18,107 | |||||||||||||||||||||
Redeemed | (461,781 | ) | (646,756 | ) | (98,078 | ) | (138,285 | ) | (81,206 | ) | (111,804 | ) | |||||||||||||||
Change in Shares | (278,842 | ) | (238,973 | ) | 122,784 | 127,970 | 9,827 | 87,104 | |||||||||||||||||||
See accompanying notes to the financial statements.
14
BB&T Capital Manager Equity VIF | BB&T Special Opportunities Equity VIF | BB&T Total Return Bond VIF | |||||||||||||||||||||||||
For the Six Months Ended June 30, 2006 | For the Year Ended December 31, 2005 | For the Six Months Ended June 30, 2006 | For the Year Ended December 31, 2005 | For the Six Months Ended June 30, 2006 | For the Year Ended December 31, 2005 | ||||||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||||||||||
From Investment Activities | |||||||||||||||||||||||||||
Operations: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 186,055 | $ | 453,684 | $ | 20,136 | $ | (76,916 | ) | $ | 407,094 | $ | 577,698 | ||||||||||||||
Net realized gains (losses) on investments | 5,588 | 1,497,425 | 656,563 | 1,886,143 | (273,502 | ) | (4,837 | ) | |||||||||||||||||||
Change in unrealized appreciation/depreciation of investment securities | 936,942 | (123,802 | ) | 1,945,827 | (87,895 | ) | (326,570 | ) | (180,295 | ) | |||||||||||||||||
Change in net assets from operations | 1,128,585 | 1,827,307 | 2,622,526 | 1,721,332 | (192,978 | ) | 392,566 | ||||||||||||||||||||
Dividends to Shareholders: | |||||||||||||||||||||||||||
Net investment income | (155,462 | ) | (410,067 | ) | (20,982 | ) | — | (404,503 | ) | (617,780 | ) | ||||||||||||||||
Net realized gains from investment transactions | — | — | — | (425,936 | ) | — | (50,547 | ) | |||||||||||||||||||
Change in net assets from shareholder dividends | (155,462 | ) | (410,067 | ) | (20,982 | ) | (425,936 | ) | (404,503 | ) | (668,327 | ) | |||||||||||||||
Capital Transactions: | |||||||||||||||||||||||||||
Proceeds from shares issued | 2,750,292 | 2,201,817 | 3,106,198 | 9,603,027 | 1,625,853 | 2,753,417 | |||||||||||||||||||||
Dividends reinvested | 155,462 | 481,528 | 20,982 | 425,882 | 404,503 | 704,135 | |||||||||||||||||||||
Value of shares redeemed | (582,149 | ) | (989,412 | ) | (828,776 | ) | (599,801 | ) | (194,930 | ) | (57,671 | ) | |||||||||||||||
Change in net assets from capital transactions | 2,323,605 | 1,693,933 | 2,298,404 | 9,429,108 | 1,835,426 | 3,399,881 | |||||||||||||||||||||
Change in net assets | 3,296,728 | 3,111,173 | 4,899,948 | 10,724,504 | 1,237,945 | 3,124,120 | |||||||||||||||||||||
Net Assets: | |||||||||||||||||||||||||||
Beginning of period | 28,722,008 | 25,610,835 | 31,768,242 | 21,043,738 | 18,776,715 | 15,652,595 | |||||||||||||||||||||
End of period | $ | 32,018,736 | $ | 28,722,008 | $ | 36,668,190 | $ | 31,768,242 | $ | 20,014,660 | $ | 18,776,715 | |||||||||||||||
Accumulated net investment income (loss) | $ | 74,210 | $ | 43,617 | $ | (846 | ) | $ | — | $ | 80,303 | $ | 77,712 | ||||||||||||||
Share Transactions: | |||||||||||||||||||||||||||
Issued | 249,958 | 218,620 | 232,337 | 779,800 | 166,755 | 274,427 | |||||||||||||||||||||
Reinvested | 14,160 | 46,889 | 1,530 | 33,720 | 41,529 | 70,239 | |||||||||||||||||||||
Redeemed | (52,958 | ) | (96,369 | ) | (61,380 | ) | (48,297 | ) | (19,971 | ) | (5,756 | ) | |||||||||||||||
Change in Shares | 211,160 | 169,140 | 172,487 | 765,223 | 188,313 | 338,910 | |||||||||||||||||||||
15
BB&T Variable Insurance Funds
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the periods indicated.****
Investment Activities | Dividends | ||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net investment income (loss) | Net realized/ unrealized gains (losses) on investments | Total from Investment Activities | Net investment income | Return of Capital | Net realized gains on investments | Total Distributions | ||||||||||||||||||||||||||||
BB&T Large Cap VIF | |||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2006 (Unaudited) | $ | 14.00 | 0.14 | 0.70 | 0.84 | (0.14 | ) | — | — | (0.14 | ) | ||||||||||||||||||||||||
Year Ended December 31, 2005 | $ | 13.35 | 0.26 | 0.65 | 0.91 | (0.26 | ) | — | — | (0.26 | ) | ||||||||||||||||||||||||
Year Ended December 31, 2004 | $ | 12.00 | 0.22 | 1.35 | 1.57 | (0.22 | ) | — | — | (0.22 | ) | ||||||||||||||||||||||||
Year Ended December 31, 2003 | $ | 9.88 | 0.19 | 2.12 | 2.31 | (0.19 | ) | (0.00 | )(b) | — | (0.19 | ) | |||||||||||||||||||||||
Year Ended December 31, 2002 | $ | 12.50 | 0.17 | (2.62 | ) | (2.45 | ) | (0.17 | ) | — | — | (0.17 | ) | ||||||||||||||||||||||
Year Ended December 31, 2001 | $ | 12.66 | 0.17 | (0.16 | ) | 0.01 | (0.17 | ) | — | — | (0.17 | ) | |||||||||||||||||||||||
BB&T Mid Cap Growth VIF | |||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2006 (Unaudited) | $ | 15.67 | 0.06 | 0.25 | 0.31 | (0.07 | ) | — | — | (0.07 | ) | ||||||||||||||||||||||||
Year Ended December 31, 2005 | $ | 13.70 | (0.04 | ) | 2.01 | 1.97 | — | — | — | — | |||||||||||||||||||||||||
Year Ended December 31, 2004 | $ | 11.69 | (0.05 | ) | 2.06 | 2.01 | — | — | — | — | |||||||||||||||||||||||||
Year Ended December 31, 2003 | $ | 8.56 | (0.06 | ) | 3.19 | 3.13 | — | — | — | — | |||||||||||||||||||||||||
Year Ended December 31, 2002 | $ | 10.70 | (0.09 | ) | (2.05 | ) | (2.14 | ) | — | — | — | — | |||||||||||||||||||||||
October 15, 2001 to December 31, 2001 (a) | $ | 10.00 | (0.01 | ) | 0.71 | 0.70 | — | — | — | — | |||||||||||||||||||||||||
BB&T Large Cap Growth VIF | |||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2006 (Unaudited) | $ | 10.29 | 0.02 | (0.19 | ) | (0.17 | ) | (0.02 | ) | — | — | (0.02 | ) | ||||||||||||||||||||||
Year Ended December 31, 2005 | $ | 10.14 | 0.04 | 0.15 | 0.19 | (0.04 | ) | — | — | (0.04 | ) | ||||||||||||||||||||||||
Year Ended December 31, 2004 | $ | 9.64 | 0.04 | 0.50 | 0.54 | (0.04 | ) | — | — | (0.04 | ) | ||||||||||||||||||||||||
Year Ended December 31, 2003 | $ | 7.53 | (0.02 | ) | 2.13 | 2.11 | — | — | — | — | |||||||||||||||||||||||||
Year Ended December 31, 2002 | $ | 10.83 | (0.06 | ) | (3.24 | ) | (3.30 | ) | — | — | — | — | |||||||||||||||||||||||
October 15, 2001 to December 31, 2001 (a) | $ | 10.00 | (0.01 | ) | 0.84 | 0.83 | — | — | — | — | |||||||||||||||||||||||||
BB&T Capital Manager Equity VIF*** | |||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2006 (Unaudited) | $ | 10.51 | 0.06 | 0.36 | 0.42 | (0.05 | ) | — | — | (0.05 | ) | ||||||||||||||||||||||||
Year Ended December 31, 2005 | $ | 9.99 | 0.17 | 0.50 | 0.67 | (0.15 | ) | — | — | (0.15 | ) | ||||||||||||||||||||||||
Year Ended December 31, 2004 | $ | 8.99 | 0.07 | 1.00 | 1.07 | (0.07 | ) | — | — | (0.07 | ) | ||||||||||||||||||||||||
Year Ended December 31, 2003 | $ | 7.19 | 0.03 | 1.80 | 1.83 | (0.03 | ) | — | — | (0.03 | ) | ||||||||||||||||||||||||
Year Ended December 31, 2002 | $ | 9.28 | 0.01 | (1.98 | ) | (1.97 | ) | (0.01 | ) | — | (0.11 | ) | (0.12 | ) | |||||||||||||||||||||
May 1, 2001 to December 31, 2001 (a) | $ | 10.00 | 0.01 | (0.72 | ) | (0.71 | ) | (0.01 | ) | — | — | (0.01 | ) | ||||||||||||||||||||||
BB&T Special Opportunities Equity VIF | |||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2006 (Unaudited) | $ | 12.70 | 0.01 | 1.01 | 1.02 | (0.01 | ) | — | — | (0.01 | ) | ||||||||||||||||||||||||
Year Ended December 31, 2005 | $ | 12.12 | (0.03 | ) | 0.79 | 0.76 | — | — | (0.18 | ) | (0.18 | ) | |||||||||||||||||||||||
July 22, 2004 to December 31, 2004 (a) | $ | 10.00 | (0.04 | ) | 2.16 | 2.12 | — | — | — | — | |||||||||||||||||||||||||
BB&T Total Return Bond VIF | |||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2006 (Unaudited) | $ | 9.92 | 0.20 | (0.30 | ) | (0.10 | ) | (0.20 | ) | — | — | (0.20 | ) | ||||||||||||||||||||||
Year Ended December 31, 2005 | $ | 10.08 | 0.33 | (0.10 | ) | 0.23 | (0.36 | ) | — | (0.03 | ) | (0.39 | ) | ||||||||||||||||||||||
July 22, 2004 to December 31, 2004 (a) | $ | 10.00 | 0.10 | 0.08 | 0.18 | (0.10 | ) | — | — | (0.10 | ) |
* During the period certain fees were reduced. If such reductions had not occurred, the ratios would have been as indicated.
** Total return ratios are based on a share outstanding throughout the period and assume reinvestment of distributions at a net asset value.
*** The expense ratios exclude the impact of fees/expenses paid by each underlying fund.
**** The per share amounts and ratios do not reflect charges pursuant to the terms of the insurance contracts funded by separate accounts
that invest in the Fund's shares.
(a) Period from commencement of operations.
(b) Amount is less than $0.005.
(c) Not annualized for periods less than one year.
(d) Annualized for periods less than one year.
See accompanying notes to the financial statements.
16
Ratios/Supplementary Data | |||||||||||||||||||||||||||||||
Net Asset Value, End of Period | Total Return** (c) | Net Assets, End of Period (000) | Ratio of expenses to average net assets (d) | Ratio of net investment income (loss) to average net assets (d) | Ratio of expenses to average net assets* (d) | Portfolio turnover rate (c) | |||||||||||||||||||||||||
BB&T Large Cap VIF | |||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2006 (Unaudited) | $ | 14.70 | 6.02 | % | $ | 115,294 | 0.75 | % | 1.89 | % | 0.99 | % | 27.87 | % | |||||||||||||||||
Year Ended December 31, 2005 | $ | 14.00 | 6.90 | % | $ | 113,648 | 0.79 | % | 1.95 | % | 1.05 | % | 21.76 | % | |||||||||||||||||
Year Ended December 31, 2004 | $ | 13.35 | 13.18 | % | $ | 111,612 | 0.81 | % | 1.77 | % | 1.10 | % | 12.91 | % | |||||||||||||||||
Year Ended December 31, 2003 | $ | 12.00 | 23.62 | % | $ | 94,683 | 0.88 | % | 1.82 | % | 1.17 | % | 13.96 | % | |||||||||||||||||
Year Ended December 31, 2002 | $ | 9.88 | (19.64 | )% | $ | 63,667 | 0.84 | % | 1.57 | % | 1.13 | % | 15.24 | % | |||||||||||||||||
Year Ended December 31, 2001 | $ | 12.50 | 0.16 | % | $ | 77,796 | 0.86 | % | 1.17 | % | 1.15 | % | 14.47 | % | |||||||||||||||||
BB&T Mid Cap Growth VIF | |||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2006 (Unaudited) | $ | 15.91 | 1.93 | % | $ | 41,644 | 0.77 | % | 0.71 | % | 1.01 | % | 65.22 | % | |||||||||||||||||
Year Ended December 31, 2005 | $ | 15.67 | 14.38 | % | $ | 39,090 | 0.78 | % | (0.28 | )% | 1.10 | % | 113.04 | % | |||||||||||||||||
Year Ended December 31, 2004 | $ | 13.70 | 17.19 | % | $ | 32,407 | 0.83 | % | (0.44 | )% | 1.22 | % | 135.55 | % | |||||||||||||||||
Year Ended December 31, 2003 | $ | 11.69 | 36.57 | % | $ | 23,903 | 0.98 | % | (0.78 | )% | 1.37 | % | 113.75 | % | |||||||||||||||||
Year Ended December 31, 2002 | $ | 8.56 | (20.00 | )% | $ | 10,864 | 1.23 | % | (1.05 | )% | 1.62 | % | 96.89 | % | |||||||||||||||||
October 15, 2001 to December 31, 2001 (a) | $ | 10.70 | 7.00 | % | $ | 10,713 | 1.19 | % | (0.55 | )% | 1.58 | % | 3.82 | % | |||||||||||||||||
BB&T Large Cap Growth VIF | |||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2006 (Unaudited) | $ | 10.10 | (1.64 | )% | $ | 23,181 | 0.78 | % | 0.42 | % | 1.02 | % | 73.55 | % | |||||||||||||||||
Year Ended December 31, 2005 | $ | 10.29 | 1.88 | % | $ | 23,523 | 0.79 | % | 0.40 | % | 1.14 | % | 91.61 | % | |||||||||||||||||
Year Ended December 31, 2004 | $ | 10.14 | 5.63 | % | $ | 22,300 | 0.86 | % | 0.46 | % | 1.26 | % | 119.90 | % | |||||||||||||||||
Year Ended December 31, 2003 | $ | 9.64 | 28.02 | % | $ | 18,464 | 1.04 | % | (0.32 | )% | 1.44 | % | 90.57 | % | |||||||||||||||||
Year Ended December 31, 2002 | $ | 7.53 | (30.47 | )% | $ | 9,328 | 1.31 | % | (0.73 | )% | 1.71 | % | 93.65 | % | |||||||||||||||||
October 15, 2001 to December 31, 2001 (a) | $ | 10.83 | 8.30 | % | $ | 10,876 | 1.19 | % | (0.32 | )% | 1.59 | % | 16.20 | % | |||||||||||||||||
BB&T Capital Manager Equity VIF*** | |||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2006 (Unaudited) | $ | 10.88 | 4.03 | % | $ | 32,019 | 0.16 | % | 1.21 | % | 0.52 | % | 0.83 | % | |||||||||||||||||
Year Ended December 31, 2005 | $ | 10.51 | 6.77 | % | $ | 28,722 | 0.26 | % | 1.68 | % | 0.55 | % | 3.24 | % | |||||||||||||||||
Year Ended December 31, 2004 | $ | 9.99 | 11.91 | % | $ | 25,611 | 0.34 | % | 0.75 | % | 0.54 | % | 1.09 | % | |||||||||||||||||
Year Ended December 31, 2003 | $ | 8.99 | 25.47 | % | $ | 20,606 | 0.56 | % | 0.40 | % | 0.66 | % | 10.06 | % | |||||||||||||||||
Year Ended December 31, 2002 | $ | 7.19 | (21.25 | )% | $ | 14,804 | 0.64 | % | 0.15 | % | 0.74 | % | 3.47 | % | |||||||||||||||||
May 1, 2001 to December 31, 2001 (a) | $ | 9.28 | (7.08 | )% | $ | 16,295 | 0.54 | % | 0.18 | % | 0.63 | % | 9.18 | % | |||||||||||||||||
BB&T Special Opportunities Equity VIF | |||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2006 (Unaudited) | $ | 13.71 | 8.01 | % | $ | 36,668 | 1.06 | % | 0.12 | % | 1.06 | % | 25.51 | % | |||||||||||||||||
Year Ended December 31, 2005 | $ | 12.70 | 6.29 | % | $ | 31,768 | 1.23 | % | (0.28 | )% | 1.23 | % | 42.15 | % | |||||||||||||||||
July 22, 2004 to December 31, 2004 (a) | $ | 12.12 | 21.20 | % | $ | 21,044 | 1.45 | % | (0.76 | )% | 1.45 | % | 13.81 | % | |||||||||||||||||
BB&T Total Return Bond VIF | |||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2006 (Unaudited) | $ | 9.62 | (0.97 | )% | $ | 20,015 | 0.77 | % | 4.26 | % | 0.89 | % | 97.30 | % | |||||||||||||||||
Year Ended December 31, 2005 | $ | 9.92 | 2.29 | % | $ | 18,777 | 1.00 | % | 3.38 | % | 1.12 | % | 196.66 | % | |||||||||||||||||
July 22, 2004 to December 31, 2004 (a) | $ | 10.08 | 1.76 | % | $ | 15,653 | 1.29 | % | 2.34 | % | 1.29 | % | 36.74 | % |
17
BB&T Variable Insurance Funds
Notes to Financial Statements
June 30, 2006 (Unaudited)
1. Organization:
The BB&T Variable Insurance Funds (the "Trust") was organized on November 8, 2004, and is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end investment company established as a Massachusetts business trust. The Trust commenced operations on May 1, 2005 and presently offers shares of the BB&T Large Cap VIF (formerly known as the BB&T Large Cap Value VIF), the BB&T Mid Cap Growth VIF, the BB&T Large Cap Growth VIF, the BB&T Capital Manager Equity VIF, the BB&T Special Opportunities Equity VIF, and the BB&T Total Return Bond VIF (referred to individually as a "Fund" and collectively as the "Funds"). The Trust is authorized to issue an unlimited number of shares of beneficial interest without par value. Shares of the Funds are offered through variable annuity contracts offered through the separate accounts of participating insurance companies. The BB&T Capital Mana ger Equity VIF (the "Fund of Funds") invests in other investment companies as opposed to individual securities. Prior to May 1, 2005 the Funds operated as a separate series of the Variable Insurance Funds, an investment company organized as a Massachusetts business trust and registered under the 1940 Act as a diversified, open-end management investment company.
Under the Funds' organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds may enter into contracts with their vendors and others that provide for general indemnifications. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds. However, based on experience, the Funds expect that risk of loss to be remote.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund of Funds seeks its investment objective of capital appreciation by investing solely in a diversified portfolio of mutual funds (the "Underlying Funds"). The Fund of Funds purchases shares of the Underlying Funds at net asset value and without sales charge.
Securities Valuation—Investments in common stocks, commercial paper, corporate bonds, municipal securities, U.S. Government securities, and U.S. Government agency securities, the principal market for which is a securities exchange or an over-the-counter market, are valued at their latest available sale price (except for those securities that are traded on NASDAQ, which will be valued at the NASDAQ official closing price) or in the absence of such a price, by reference to the latest available bid quotations in the principal market in which such securities are normally traded. The Funds may also use an independent pricing service approved by the Board of Trustees to value certain securities. Such prices reflect fair values which may be established through the use of electronic and matrix techniques. Short-term obligations that mature in 60 days or less are valu ed at either amortized cost or original cost plus interest, which approximates fair value. Investments in open-end investment companies, including the Fund of Funds, are valued at their respective net asset values as reported by such companies. Investments in closed-end investment companies are valued at their fair values based upon the latest available bid prices in the principal market in which such securities are normally traded. The differences between cost and fair values of investments are reflected as either unrealized appreciation or depreciation. Securities for which market quotations are not readily available will be valued at fair value using methods determined in good faith by the Pricing Committee under the supervision of the Board of Trustees. Fair value pricing may be used for significant events such as securities whose trading has been suspended, whose price has become stale or for which there is no currently available price.
Securities Transactions and Related Income—During the period, security transactions are accounted for no later than one business day after trade date. For financial reporting purposes, however, security transactions are accounted for on trade date of the last business day of the reporting period. Interest income is recognized on the accrual basis and includes, where applicable, the pro-rata amortization/accretion of premium or discount. Dividend income is recorded on the ex-dividend date. Gains or losses realized from sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds. Under the applicable foreign tax law, a withholding tax may be imposed on interest, dividends and capital gains earned on foreign investments at various rates. Where available, the Funds will file for claims on foreign taxes withheld.
When-Issued Securities—The Funds, may purchase securities on a "when-issued" basis. The Funds record when-issued securities on the trade date and pledge assets with a value at least equal to the purchase commitment for payment of the securities purchased. The value of the securities underlying when-issued securities and any subsequent fluctuation in their value is taken into account
18
BB&T Variable Insurance Funds
Notes to Financial Statements — (continued)
June 30, 2006 (Unaudited)
when determining the net asset value of the Funds commencing with the date the Funds agree to purchase the securities. The Funds do not accrue interest or dividends on "when-issued" securities until the underlying securities are received.
Repurchase Agreements—The Funds may acquire repurchase agreements from member banks of the Federal Deposit Insurance Corporation and from registered broker/dealers that BB&T Asset Management, Inc. ("BB&T") or a sub-advisor deems creditworthy under guidelines approved by the Board of Trustees, subject to the seller's agreement to repurchase such securities at a mutually agreed-upon date and price. The repurchase price generally equals the price paid by the Funds plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying collateral. The seller under a repurchase agreement is required to maintain the value of collateral held pursuant to the agreement at not less than the repurchase price, including accrued interest. Securities subject to repurchase agreements are held by the Funds' custodi an or another qualified custodian or in the Federal Reserve/Treasury book-entry system.
Option Contracts—The Funds may write or purchase option contracts. These transactions are to hedge against changes in interest rates, security prices, currency fluctuations, and other market developments, or for the purposes of earning additional income (i.e., speculation).
The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Funds bear the risk of loss of the premium and change in fair value should the counterparty not perform under the contract. Put and call options purchased are accounted for in the same manner as other securities owned. The cost of securities acquired through the exercise of call options is increased by the premiums paid. The proceeds from securities sold through the exercise of put options are decreased by premiums paid.
In writing an option, the Funds contract with a specified counterparty to purchase (written put option) or sell (written call option) a specified quantity (notional amount) of an underlying asset at a specified price during a specified period upon demand of the counterparty. The risk associated with writing an option is that the Funds bear the market risk of an unfavorable change in the price of an underlying asset, and may be required to buy or sell an underlying asset under the contractual terms of the option at a price different from the current fair value.
The BB&T Special Opportunities Equity VIF had the following transactions in call options written during the period ended June 30, 2006:
BB&T Special Opportunities Equity VIF | |||||||||||
Call Options Written | Number of Contracts | Premiums Received | |||||||||
Balance at beginning of period | 65 | $ | 4,501 | ||||||||
Options written | 1,031 | 200,032 | |||||||||
Options closed | (310 | ) | (78,220 | ) | |||||||
Options expired | (306 | ) | (15,325 | ) | |||||||
Options exercised | — | — | |||||||||
Balance at end of period | 480 | $ | 110,988 |
The following is a summary of options outstanding as of June 30, 2006:
Security | |||||||||||
BB&T Special Opportunities Equity VIF | Number of Contracts | Fair Value | |||||||||
Consol Energy, Inc. $47.50, 1/20/07 | 200 | $ | 120,000 | ||||||||
Consol Energy, Inc. $50.00, 1/20/07 | 140 | 75,600 | |||||||||
PACCAR, Inc., $90.00, 11/18/06 | 140 | 39,200 | |||||||||
$ | 234,800 |
Dividends and Distributions—Dividends from net investment income are declared and paid quarterly for the Funds, with the exception of the BB&T Total Return Bond VIF, in which case dividends from net investment income are declared daily and paid monthly. Distributable net realized gains, if any, are declared and distributed at least annually.
19
BB&T Variable Insurance Funds
Notes to Financial Statements — (continued)
June 30, 2006 (Unaudited)
The character of income and gains distributed 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 (e.g. reclass of market discounts, gain/loss, paydowns and distributions), such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require reclassification. Dividends to shareholders which exceed net investment income and net realized gains for tax purposes are reported as distributions of capital or return of capital.
Federal Income Taxes—It is the policy of each Fund to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of net investment income and net realized capital gains sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income tax is required.
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund's tax return to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. Management has not completed their analysis on whether the adoption of FIN 48 will have an impact to the financial statements .
Other—Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among all Funds daily in relation to the net assets of each Fund or on another reasonable basis. Expenses which are attributable to more than one Trust are allocated across the BB&T Variable Insurance Funds and BB&T Funds Trusts, based upon relative net assets or on another reasonable basis. BB&T serves as the Investment Advisor for the BB&T Variable Insurance Funds and BB&T Funds Trusts.
3. Purchases and Sales of Securities:
Purchases and sales of securities (excluding short-term and U.S. Government securities) for the period ended June 30, 2006 are as follows:
Purchases | Sales | ||||||||||
BB&T Large Cap VIF | $ | 31,324,373 | $ | 38,098,399 | |||||||
BB&T Mid Cap Growth VIF | 28,405,087 | 26,196,033 | |||||||||
BB&T Large Cap Growth VIF | 16,804,014 | 17,331,298 | |||||||||
BB&T Capital Manager Equity VIF | 1,895,000 | 245,000 | |||||||||
BB&T Special Opportunities Equity VIF | 13,138,708 | 8,223,628 | |||||||||
BB&T Total Return Bond VIF | 22,363,790 | 19,296,984 |
Purchases and sales of long-term U.S. Government Securities for the period ended June 30, 2006 for the BB&T Total Return Bond VIF were $5,839,935 and $3,505,807, respectively.
4. Related Party Transactions:
Investment advisory services are provided to the Funds by BB&T. Under the terms of the Investment Advisory Agreement, BB&T is entitled to receive fees based on a percentage of the average daily net assets of the Funds. These fees are accrued daily and payable on a monthly basis and are reflected on the Statements of Operations as "Investment Advisory Fees". BB&T voluntarily waived investment advisory fees and are included on the Statements of Operations as "Less expenses waived by the Investment Advisor".
Information regarding these transactions is as follows for the period ended June 30, 2006:
Contractual Fee Rate | Fee Rate after Voluntary Waiver | ||||||||||
BB&T Large Cap Value VIF | 0.74 | % | 0.50 | % | |||||||
BB&T Mid Cap Growth VIF | 0.74 | % | 0.50 | % | |||||||
BB&T Large Cap Growth VIF | 0.74 | % | 0.50 | % | |||||||
BB&T Capital Manager Equity VIF | 0.25 | % | 0.00 | % | |||||||
BB&T Special Opportunities Equity VIF | 0.80 | % | 0.80 | % | |||||||
BB&T Total Return Bond VIF | 0.60 | % | 0.50 | % |
20
BB&T Variable Insurance Funds
Notes to Financial Statements — (continued)
June 30, 2006 (Unaudited)
Pursuant to a Sub-Advisory agreement with BB&T, Scott & Stringfellow, Inc., a wholly owned subsidiary of BB&T Corporation, serves as the Sub-Advisor to the BB&T Special Opportunities Equity VIF, subject to the general supervision of the Trusts' Board of Trustees and BB&T. Pursuant to a Sub-Advisory agreement with BB&T, Sterling Capital Management LLC, a wholly owned subsidiary of BB&T Corporation, serves as the Sub-Advisor to the BB&T Total Return Bond VIF, subject to the general supervision of the Trusts' Board of Trustees and BB&T. For their services, the Sub-Advisors are entitled to a fee, payable by BB&T.
BB&T serves the Funds as administrator. BB&T receives compensation for providing administration services at a rate of 0.12% of the BB&T Funds and BB&T Variable Insurance Funds aggregate average daily net assets up to $5 billion and a rate of 0.08% of the aggregate average daily net assets in excess of $5 billion. This fee is accrued daily and payable on a monthly basis. Expenses incurred are reflected on the Statements of Operations as "Administration fees". BB&T voluntarily waived administration fees of the BB&T Capital Manager Equity VIF. Administration fee waivers are included on the Statements of Operations as "Less expenses waived by the Administrator" and these waivers are not subject to recoupment in subsequent fiscal periods. Pursuant to a Sub-Administration Agreement with BB&T, BISYS Fund Services Ohio, Inc. ("BISYS Ohio") serves as
sub-administrator to the Funds subject to the general supervision of the Funds' Board of Trustees and BB&T. For these services, BISYS is entitled to a fee, payable by BB&T.
BISYS Ohio serves the Funds as fund accountant and transfer agent and receives compensation for providing fund accounting and transfer agency services at a rate of 0.02% (0.01% for each service) of the average daily net assets of each Fund, plus certain out of pocket expenses. Expenses incurred are reflected on the Statements of Operations as "Fund accounting fees" and "Transfer agency fees", respectively.
Under a Compliance Services Agreement between the Trust and BISYS Ohio (the "CCO Agreement"), BISYS Ohio makes an employee available to serve as the Trusts' Chief Compliance Officer (the "CCO"). Under the CCO Agreement, BISYS Ohio also provides infrastructure and support in implementing the written policies and procedures comprising the Funds' compliance program, including support services to the CCO. Expenses incurred for the Fund are reflected on the Statements of Operations as "Compliance service fees". BISYS Ohio pays the salary and other compensation earned by any such individuals as employees of BISYS Ohio.
For the six months ended June 30, 2006, the Funds' paid $26,052 in brokerage fees to Scott & Stringfellow, Inc., a wholly owned subsidiary of BB&T Corporation, on the execution of purchases and sales of the Funds' portfolio investments.
The Trust has adopted a Variable Contract Owner Servicing Plan (the "Service Plan") under which the Funds may pay a fee computed daily and paid monthly, at an annual rate of up to 0.25% of the average daily net assets of the Fund. A servicing agent may periodically waive all or a portion of its servicing fees. For the period ended June 30, 2006, the Funds did not participate in any service plans.
Certain Officers and Trustees of the Funds are affiliated with the adviser, the administrator, or the sub-administrator. Such Officers and Trustees receive no compensation from the Funds for serving in their respective roles. Each of the five non-interested Trustees who serve on both the Board and the Audit Committee are compensated $1,250 per quarter and $500 for each regularly scheduled meeting, plus reimbursement for certain expenses. During the period ended June 30, 2006, actual Trustee compensation was $18,733 in total.
5. Federal Income Tax Information:
As of the latest tax year end, the following Funds had net realized loss carryforwards to offset future net realized gains, if any, to the extent provided by the Treasury regulations. To the extent that these carryforwards are used to offset future capital gains, it is probable that the gains that are offset will not be distributed to shareholders.
Amount | Expires | ||||||||||
BB&T Large Cap VIF | $ | 891,424 | 2011 | ||||||||
BB&T Total Return Bond BIF | 96,285 | 2013 |
21
BB&T Variable Insurance Funds
Notes to Financial Statements — (continued)
June 30, 2006 (Unaudited)
At June 30, 2006, the cost, gross unrealized appreciation and gross unrealized depreciation on securities for federal income tax purposes were as follows:
Tax Cost | Tax Unrealized Appreciation | Tax Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||||||
BB&T Large Cap VIF | $ | 101,013,461 | $ | 18,201,771 | $ | (2,313,846 | ) | $ | 15,887,925 | ||||||||||
BB&T Mid Cap Growth VIF | 34,188,342 | 8,372,312 | (927,012 | ) | 7,445,300 | ||||||||||||||
BB&T Large Cap Growth VIF | 21,905,222 | 2,019,672 | (760,039 | ) | 1,259,633 | ||||||||||||||
BB&T Capital Manager Equity VIF | 29,418,708 | 2,840,705 | (320,438 | ) | 2,520,267 | ||||||||||||||
BB&T Special Opportunities Equity VIF | 31,839,573 | 6,008,883 | (990,714 | ) | 5,018,169 | ||||||||||||||
BB&T Total Return Bond VIF | 22,599,253 | 2,781,846 | (3,269,937 | ) | (488,091 | ) |
22
BB&T Variable Insurance Funds
Other Information
June 30, 2006 (Unaudited)
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 1-800-228-1872; and (ii) on the Securities and Exchange Commission's ("the Commission") website at http://www.sec.gov.
Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th is available (i) without charge, upon request, by calling 1-800-228-1872 and (ii) on the Commission's website at http://www.sec.gov.
The Funds file complete Schedules of Portfolio Holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Funds' Forms N-Q are available without charge on the Commission's website at http://www.sec.gov, or may be reviewed and copied at the Commission's Reference Room in Washington, D.C. Information on the operation of the Public Reference Room, may be obtained by calling 1-800-SEC-0330.
23
Item 2. Code of Ethics.
Not applicable – only for annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable – only for annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable – only for annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments.
Not applicable.
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.
Not applicable.
Item 11. Controls and Procedures.
(a)The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.
(b)There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits.
(a)(1) Not applicable - Only effective for annual reports.
(a)(2) Certifications pursuant to Rule 30a-2(a) are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) are furnished herewith.
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.
(Registrant) | BB&T Variable Insurance Funds |
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By (Signature and Title)* | /s/Troy A. Sheets, Treasurer |
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| Troy A. Sheets, Treasurer | ||||
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Date | September 1, 2006 |
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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 (Signature and Title)* | /s/Keith F. Karlawish, President |
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| Keith F. Karlawish, President | ||||
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Date | September 1, 2006 |
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By (Signature and Title)* | /s/Troy A. Sheets, Treasurer |
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| Troy A. Sheets, Treasurer | ||||
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Date | September 1, 2006 |
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