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: 811-03857
American Funds Insurance Series
(Exact Name of Registrant as Specified in Charter)
333 South Hope Street
Los Angeles, California 90071
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (213) 486-9200
Date of fiscal year end: December 31
Date of reporting period: December 31, 2013
Steven I. Koszalka
American Funds Insurance Series
333 South Hope Street
Los Angeles, California 90071
(Name and Address of Agent for Service)
Copies to:
Michael Glazer
Bingham McCutchen LLP
355 South Grand Avenue, Suite 4400
Los Angeles, California 90071
(Counsel for the Registrant)
ITEM 1 – Reports to Stockholders
Managed risk funds can
help investors through
market declines.
Special feature page 42
American Funds Insurance Series® Annual report for the year ended December 31, 2013 |
American Funds Insurance Series, from Capital Group, is the underlying investment vehicle for several variable annuities and insurance products. For more than 80 years, Capital has invested with a long-term focus based on thorough research and attention to risk.
Investing for short periods makes losses more likely. Investments are not FDIC insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. For current information and month-end results, visit americanfunds.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 may be subject to risks, such as currency fluctuations, periods of illiquidity and price volatility. 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 contracts may not provide an effective hedge of the underlying securities because changes in the prices of futures contracts 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.
Economic concerns that had threatened to derail the global recovery receded in 2013, lifting U.S. stock markets to record highs as investor confidence returned.
The U.S. saw continued economic growth, a shrinking budget deficit and lower unemployment, the euro zone came out of recession, China’s reform pledges reassured investors and Japan’s stimulus measures began to take effect.
Against this backdrop, developed countries in aggregate contributed most of the 22.8% gain in the MSCI ACWI (All Country World Index). The highest individual country returns came from Greece (+51.0%), which is expected to finally emerge from recession in 2014, Finland (+46.0%), Ireland (+41.2%), the U.S. (+31.8%), Germany (+31.4%), Spain (+31.3%) and the Netherlands (+31.3%). Developing markets struggled as U.S. interest rates began to rise after the Federal Reserve hinted that it would start to cut back on its bond-buying stimulus program. Hardest hit were Peru (–29.8%), Turkey (–26.8%), Indonesia (–23.5%), Chile (–22.0%), Colombia (–21.1%) and Brazil (–16.0%). Returns for MSCI indexes are calculated in U.S. dollars and reflect both dividends net of withholding taxes and reinvestment of distributions. All market indexes referenced in this report are unmanaged and, therefore, have no expenses.
The specter of rising interest rates in the U.S. hurt many bond markets in 2013. The Barclays U.S. Aggregate Index lost 2.0% for the year, while the Barclays Global Aggregate Index declined 2.6%.
Both indexes measure investment-grade bonds. Doubts over the future of the Fed’s stimulus program caused turmoil in many developing bond markets, which declined 6.6% overall for the year, as measured by the J.P. Morgan Emerging Markets Bond Index Global. The Barclays U.S. Corporate High Yield 2% Issuer Capped Index gained 7.4%. At December 31, 2013, the yield on the 10-year U.S. Treasury was 3.04%, up from 1.78% a year earlier.
In currency markets, the U.S. dollar lost ground against three major currencies: the euro (+4.5%), Swiss franc (+2.9%) and British pound (+1.9%). On the other hand, the Japanese yen declined 17.7% against the dollar as a result of the new government’s monetary easing policy, while the Canadian dollar fell 6.3% to a near-three-year low in December as its central bank hinted at interest rate cuts. The Chinese renminbi gained 2.9% versus the U.S. dollar; most other emerging market currencies were weak, particularly the Argentine peso (–24.6%), Indonesian rupiah (–20.8%), South African rand (–19.0%), Turkish lira (–16.9%), Brazilian real (–13.2%) and Indian rupee (–11.4%).
All the equity funds in American Funds Insurance Series had double-digit returns in 2013. The challenges facing global bond markets were reflected in the fixed-income funds; all declined with the exception of High-Income Bond Fund. The series’ five managed risk funds, four of which began operations in May 2013 (the fifth was launched in September 2012), also had gains in 2013 while implementing the funds’ managed risk strategy.
American Funds Insurance Series | 1 |
Looking ahead
The U.S. economy continues to improve and unemployment is gradually decreasing — the jobless rate in December 2013 was 6.7%, down from 7.9% a year earlier. The federal deficit has shrunk by more than 50% from its peak, and a bipartisan budget agreement signed in December temporarily reduces the risk of another government shutdown in the near term. These are among the reasons for continued optimism.
While many concerning issues that have been in the news in recent years improved in 2013, the future, as always, remains uncertain. Structural problems in many regions and countries still have to be resolved, and the long-term effects of central bank stimulus initiatives are difficult to predict. Developing markets may be tested again as the U.S. continues to normalize its monetary policy. One cloud on the horizon is the ongoing tension in the Middle East. However, increased shale oil and gas production in the U.S. may mitigate the impact on the U.S. of an escalation in the situation.
It is always difficult to predict what markets will do in the short term. Thus, we focus on maintaining a long-term horizon, which we believe affords us a competitive advantage in achieving long-term results. Our investment approach, rooted in fundamental analysis, global research and paying close attention to valuation, is time-tested and has helped our investors reach their financial goals. We will continue with that approach as we go forward into 2014 and beyond.
We welcome our new investors and look forward to reporting to you again in six months.
Sincerely, |
Donald D. O’Neal |
Vice Chairman of the Board |
Alan N. Berro |
President |
February 5, 2014 |
2 | American Funds Insurance Series |
Summary investment portfolios are designed to streamline this report and help investors better focus on the funds’ principal holdings. Cash Management 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 2 shares (Class P2 shares for managed risk funds). 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 2 shares, 0.18% for Class 3 shares and 0.50% for Class 4 shares).
The mountain charts on pages 5 to 41 illustrate the growth of a $10,000 investment in each of the investment portfolios in American Funds Insurance Series (with the exception of Cash Management Fund) over the past 10 years (or the lifetime of the fund if less than 10 years).
The variable annuities and life insurance contracts that use the series’ funds contain certain fees and expenses not reflected in this report. Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The series’ investment adviser waived a portion of its management fees for all existing funds from September 1, 2004, through December 31, 2008, and for U.S. Government/ AAA-Rated Securities Fund from July 1, 2010, through December 31, 2010. 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 and is currently reimbursing a portion of other expenses so that they will not exceed 0.28%. The waivers and reimbursements will be in effect through at least May 1, 2015, unless modified or terminated by the series’ board. After that time, the investment adviser may elect to extend, modify or terminate the reimbursements. Applicable fund results shown reflect the waivers and reimbursements, without which they would have been lower. See the Financial Highlights table in this report for details.
Individual funds are listed in this report according to their risk potential, with managed risk funds listed last.
*Effective August 12, 2013, Protected Asset Allocation Fund was renamed Managed Risk Asset Allocation Fund.
American Funds Insurance Series | 3 |
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Global Growth Fund gained 29.18% for the 12 months ended December 31, 2013, outpacing the MSCI ACWI (All Country World Index), which rose 22.80%.*
Supported by central bank stimulus and improving economic activity, developed market stocks rallied strongly in 2013. However, emerging market stocks ended the year lower as the Federal Reserve began to reduce its bond-buying program.
The fund ended the year with gains in all industry sectors. Good stock selection in U.S. companies was the key factor in the fund’s return differential over the index. Holdings in the consumer discretionary sector, the fund’s largest at December 31,were particularly beneficial, with strong returns from cable company Virgin Media and online retailer Amazon. Japanese telecommunication services company SoftBank, which acquired a majority stake in U.S. cellular company Sprint in 2013, and U.S. biopharmaceutical company Gilead Sciences had the fund’s highest returns and were also among the primary contributors to the fund’s results.
Most holdings outside the U.S. were additive, with Japan, the United Kingdom and France the major contributors. Holdings in India, Brazil and Australia detracted slightly from results.
Looking ahead, the fund’s portfolio managers expect global markets to be challenged by the reduction in monetary stimulus. However, they are enthusiastic about the prospects for investments in the U.S. and Japan and less concerned about recent areas of weakness, such as China and Europe.
Country diversification | Percent of net assets | |||
The Americas | ||||
United States | 39.6 | % | ||
Canada | 2.3 | |||
Other | .2 | |||
42.1 | ||||
Europe | ||||
United Kingdom | 10.8 | |||
France | 5.2 | |||
Switzerland | 4.3 | |||
Germany | 3.1 | |||
Denmark | 3.0 | |||
Spain | 2.5 | |||
Netherlands | 2.4 | |||
Finland | 1.1 | |||
Other | 1.4 | |||
33.8 | ||||
Asia/Pacific Basin | ||||
Japan | 10.6 | |||
China | 1.7 | |||
Taiwan | 1.6 | |||
Australia | 1.6 | |||
Hong Kong | 1.4 | |||
India | 1.0 | |||
Other | .8 | |||
18.7 | ||||
Other regions | ||||
South Africa | 2.2 | |||
Short-term securities & other assets less liabilities | 3.2 | |||
Total | 100.0 | % |
Largest individual equity securities | Percent of net assets | |||
Amazon | 3.96 | % | ||
Novo Nordisk | 3.00 | |||
Moody’s | 2.82 | |||
SoftBank | 2.42 | |||
priceline.com | 2.05 | |||
ASML Holding | 2.02 | |||
1.82 | ||||
Alcatel-Lucent | 1.66 | |||
Taiwan Semiconductor Manufacturing | 1.63 | |||
Home Depot | 1.41 |
4 | American Funds Insurance Series |
Global Growth Fund
How a $10,000 investment has grown
Year ended December 31
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2013
1 year | 5 years | 10 years | Lifetime (since April 30, 1997) | Expense ratio | ||||||||||||||||
Class 1 | 29.51 | % | 18.35 | % | 10.01 | % | 10.16 | % | .55 | % | ||||||||||
Class 2 | 29.18 | 18.06 | 9.73 | 9.88 | .80 | |||||||||||||||
Class 4 | 29.36 | 17.86 | 9.50 | 9.63 | 1.05 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2014 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses.
* | The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
Where the fund’s assets were invested as of December 31, 2013 | Percent of net assets |
American Funds Insurance Series | 5 |
Global Small Capitalization Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Global Small Capitalization Fund gained 28.28% for the 12 months ended December 31, 2013. This compares with its benchmark, the MSCI All Country World Small Cap Index, which rose 28.66%* (the index does not include investment-related fees and expenses).
Economies continued to improve, particularly the U.S., as evidenced by the 4.1% third-quarter gross domestic product growth figure and increased auto demand. The U.S. economy is steadily recovering despite stubborn unemployment and underemployment, while Europe continued to experience an even more fragile recovery.
Consumer discretionary holdings, which represented almost one-quarter of the portfolio, were strong. The rising stock price of Netflix and Tesla, two “disruptive” technology companies that continue to threaten their entrenched competitors, led the way. Melco Crown Entertainment, a Hong Kong-based gaming and entertainment company, saw its stock price double. Utilities holdings were also beneficial, highlighted by ENN Energy Holdings, a China-based natural gas distributor. Emerging markets holdings lagged.
Companies have been managed more efficiently as they stretch resources and improve their balance sheets. Corporate profits are strong, courtesy of margins as companies have been able to keep costs down. The economic cycle of recovery will likely continue as the fund’s portfolio managers remain focused on the long term.
Country diversification | Percent of net assets | |||
The Americas | ||||
United States | 41.3 | % | ||
Canada | 1.7 | |||
Other | 1.4 | |||
44.4 | ||||
Asia/Pacific Basin | ||||
China | 8.4 | |||
Hong Kong | 5.4 | |||
Philippines | 3.6 | |||
Japan | 2.4 | |||
South Korea | 2.0 | |||
India | 2.0 | |||
Thailand | 1.3 | |||
Other | 3.0 | |||
28.1 | ||||
Europe | ||||
United Kingdom | 10.5 | |||
Ireland | 1.7 | |||
Germany | 1.3 | |||
Other | 4.7 | |||
18.2 | ||||
Short-term securities & other assets less liabilities | 9.3 | |||
Total | 100.0 | % |
Largest individual equity securities | Percent of net assets | |||
ENN Energy Holdings | 3.22 | % | ||
Netflix | 2.92 | |||
Lions Gate Entertainment | 2.26 | |||
Synageva BioPharma | 2.07 | |||
Melco Crown Entertainment | 2.04 | |||
International Container Terminal Services | 1.89 | |||
Ocwen Financial | 1.45 | |||
athenahealth | 1.36 | |||
Penske Automotive Group | 1.35 | |||
AAC Technologies Holdings | 1.35 |
6 | American Funds Insurance Series |
Global Small Capitalization Fund
How a $10,000 investment has grown
Year ended December 31
Average annual total returns based on a $1,000 investment | ||||||||||||||||||||
For periods ended December 31, 2013 | ||||||||||||||||||||
1 year | 5 years | 10 years | Lifetime (since April 30, 1998) | Expense ratio | ||||||||||||||||
Class 1 | 28.60 | % | 19.64 | % | 10.16 | % | 10.43 | % | .74 | % | ||||||||||
Class 2 | 28.28 | 19.34 | 9.89 | 10.15 | .99 | |||||||||||||||
Class 4 | 28.01 | 19.06 | 9.62 | 9.88 | 1.24 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2014 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses.
* | The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
Where the fund’s assets were invested as of December 31, 2013 | Percent of net assets |
American Funds Insurance Series | 7 |
Growth Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds. com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Growth Fund gained 30.11% for the 12 months ended December 31, 2013. The S&P 500 rose 32.37%.
U.S. stocks posted another year of strong gains, with the major indexes recording all-time highs.
Holdings in the consumer discretionary sector were the major contributors to the fund’s results. The standout was Amazon, the fund’s largest holding at December 31. Companies in the hotels, restaurant and leisure industry also did well, particularly two investments in gaming companies with operations in Macau.
Two of the fund’s strongest results for the year came from U.S. biopharmaceutical companies in the health care sector, Incyte and Gilead Sciences, which each had triple-digit returns. The fund’s smallest sectors at year-end — utilities and telecommunication services — detracted from absolute results. Holdings in the energy and materials sectors, while ending the year ahead, were a drag on relative results.
The fund’s portfolio managers believe Growth Fund is well-positioned for 2014 and are optimistic that holdings in domestic energy companies will benefit as the U.S. becomes more energy-independent.
Largest individual equity securities | Percent of net assets | |||
Amazon | 4.72 | % | ||
3.48 | ||||
Wells Fargo | 2.98 | |||
Home Depot | 2.81 | |||
ASML Holding | 2.21 | |||
Gilead Sciences | 1.96 | |||
Incyte | 1.65 | |||
American Express | 1.54 | |||
Comcast | 1.36 | |||
Boeing | 1.33 |
8 | American Funds Insurance Series |
Growth Fund
How a $10,000 investment has grown
Year ended December 31
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2013
1 year | 5 years | 10 years | Lifetime (since February 8, 1984) | Expense ratio | ||||||||||||||||
Class 1 | 30.43 | % | 19.72 | % | 8.49 | % | 12.77 | % | .35 | % | ||||||||||
Class 2 | 30.11 | 19.42 | 8.22 | 12.47 | .60 | |||||||||||||||
Class 3 | 30.20 | 19.51 | 8.29 | 12.57 | .53 | |||||||||||||||
Class 4 | 29.96 | 19.17 | 7.96 | 12.22 | .85 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2014 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses.
Where the fund’s assets were invested as of December 31, 2013 | Percent of net assets |
American Funds Insurance Series | 9 |
International Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
International Fund rose 21.64% for the 12 months ended December 31, 2013, beating its benchmark, the MSCI ACWI (All Country World Index) ex USA, which gained 15.29%.*
Improving economies and quantitative easing, particularly in Japan, helped to boost stock markets. Many cyclical stocks such as financials and autos had solid results. Consumer goods and consumer-facing companies in Asia, particularly China, had a difficult year as risk there increased.
Despite a lower exposure to Japan than the index, effective stock picking compensated, led by SoftBank, a telecommunications and internet corporation, whose stock price doubled. The prospect of its major asset, Alibaba (a China-based e-commerce company), coming to the market increased its potential valuation. Holdings in China also boosted fund results, led by Sands China, Baidu and NetEase, an internet technology company. Samsung Electronics was one of the major holdings that detracted from results.
Offsetting gains was a weakness in emerging markets due to the Federal Reserve reducing its bond buying, as investors have interpreted that as meaning liquidity in global equity markets will shrink.
As the U.S. economy and dollar strengthen, emerging markets may continue to struggle. However, this can provide an excellent opportunity to evaluate and buy attractive stocks of companies at favorable valuations.
Country diversification | Percent of net assets | |||
Europe | ||||
Germany | 13.1 | % | ||
France | 8.9 | |||
United Kingdom | 8.5 | |||
Switzerland | 8.3 | |||
Russia | 2.5 | |||
Denmark | 2.3 | |||
Netherlands | 1.5 | |||
Italy | 1.3 | |||
Sweden | 1.3 | |||
Other | 2.9 | |||
50.6 | ||||
Asia/Pacific Basin | ||||
Hong Kong | 10.6 | |||
Japan | 10.1 | |||
China | 6.4 | |||
South Korea | 6.1 | |||
India | 5.9 | |||
Thailand | 1.8 | |||
Other | 1.9 | |||
42.8 | ||||
The Americas | ||||
United States | 1.2 | |||
Other | .3 | |||
1.5 | ||||
Other regions | ||||
South Africa | 1.3 | |||
Other | .7 | |||
2.0 | ||||
Short-term securities & other assets less liabilities | 3.1 | |||
Total | 100.0 | % |
Largest individual equity securities | Percent of net assets | |||
Novartis | 4.25 | % | ||
Samsung Electronics | 3.77 | |||
Bayer | 3.44 | |||
SoftBank | 3.17 | |||
AIA Group | 2.28 | |||
Barclays | 1.96 | |||
Baidu | 1.91 | |||
Sands China | 1.90 | |||
Novo Nordisk | 1.77 | |||
SMC | 1.72 |
10 | American Funds Insurance Series |
International Fund
How a $10,000 investment has grown
Year ended December 31
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2013
1 year | 5 years | 10 years | Lifetime (since May 1, 1990) | Expense ratio | ||||||||||||||||
Class 1 | 21.91 | % | 13.91 | % | 8.81 | % | 8.91 | % | 54 | % | ||||||||||
Class 2 | 21.64 | 13.61 | 8.53 | 8.63 | .79 | |||||||||||||||
Class 3 | 21.67 | 13.70 | 8.61 | 8.71 | .72 | |||||||||||||||
Class 4 | 21.48 | 13.38 | 8.28 | 8.37 | 1.04 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2014 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses.
* | The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
Where the fund’s assets were invested as of December 31, 2013 | Percent of net assets |
American Funds Insurance Series | 11 |
New World Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
New World Fund increased 11.38% for the 12 months ended December 31, 2013. Among its benchmark indexes, the MSCI ACWI (All Country World Index) gained 22.80% and the MSCI Emerging Markets Index lost 2.60%.*
Quantitative easing by many developed markets has had a positive impact as world economies continue to recover from the 2007–2009 recession. However, recovery has been weaker than what many investors expected. Within emerging markets, the fund’s stock selection was effective, even though overall emerging markets were weak.
“Disruptive” technologies that change the way industries work have been very beneficial to the fund, demon-strated by the contribution of media company Naspers, and telecommunications and internet corporation SoftBank, whose stock price doubled during the year partially due to its position in the e-commerce company Alibaba. Two China-based holdings also benefited the fund: Baidu, a Web services company, and Ctrip.com International, a China-focused travel agency.
Economically sensitive companies in some developing markets, such as South Africa-based retailer Shoprite Holdings, hurt fund results as investors became concerned about the slowdowns in these economies.
Pressure on countries with current account deficits such as Turkey, South Africa, Brazil and Indonesia also affected domestic economies. However, despite the continuing pressure on emerging markets, the fund’s portfolio managers are optimistic about locating attractive companies at favorable valuations.
Country diversification | Percent of net assets | |||
Asia/Pacific Basin | ||||
Japan | 8.3 | % | ||
China | 7.3 | |||
India | 6.0 | |||
Hong Kong | 3.5 | |||
Philippines | 2.8 | |||
Australia | 2.2 | |||
Taiwan | 1.1 | |||
Other | 1.8 | |||
33.0 | ||||
Europe | ||||
United Kingdom | 6.4 | |||
France | 5.5 | |||
Russia | 4.9 | |||
Switzerland | 4.0 | |||
Portugal | 1.8 | |||
Denmark | 1.4 | |||
Slovenia | 1.3 | |||
Sweden | 1.2 | |||
Greece | 1.1 | |||
Spain | 1.1 | |||
Other | 2.1 | |||
30.8 | ||||
The Americas | ||||
United States | 13.4 | |||
Canada | 3.4 | |||
Mexico | 3.0 | |||
Other | 3.7 | |||
23.5 | ||||
Other regions | ||||
South Africa | 6.0 | |||
Other | .6 | |||
6.6 | ||||
Short-term securities & other assets less liabilities | 6.1 | |||
Total | 100.0 | % |
Largest individual equity securities | Percent of net assets | |||
Baidu | 3.34 | % | ||
Alcatel-Lucent | 2.72 | |||
Naspers | 2.49 | |||
2.07 | ||||
Mail.Ru Group | 2.06 | |||
TDK | 1.87 | |||
Novartis | 1.67 | |||
AEON Financial Service | 1.51 | |||
Pacific Rubiales Energy | 1.50 | |||
Novo Nordisk | 1.40 |
12 | American Funds Insurance Series |
New World Fund
How a $10,000 investment has grown
Year ended December 31
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2013
1 year | 5 years | 10 years | Lifetime (since June 17, 1999) | Expense ratio | ||||||||||||||||
Class 1 | 11.66 | % | 15.06 | % | 11.46 | % | 9.79 | % | .78 | % | ||||||||||
Class 2 | 11.38 | 14.78 | 11.18 | 9.52 | 1.03 | |||||||||||||||
Class 4 | 11.20 | 14.51 | 10.92 | 9.25 | 1.28 | † |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2014 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses.
* | Results for MSCI indexes reflect dividends net of withholding taxes and reinvestment of distributions. |
† | The expense ratio for Class 4 is estimated based on current fiscal-year expenses. |
Where the fund’s assets were invested as of December 31, 2013 | Percent of net assets |
American Funds Insurance Series | 13 |
Blue Chip Income and Growth Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Blue Chip Income and Growth Fund rose 33.00% for the 12 months ended December 31, 2013, outpacing its benchmark index, the S&P 500, which gained 32.37%.
The U.S. economy has been slowly but steadily improving. Quantitative easing and low interest rates have resulted in a shift of capital into riskier assets. Corporate earnings were relatively strong, balance sheets are in good shape, and borrowing costs are historically low.
The fund had double-digit gains in all sectors, other than utilities, which detracted. Benefiting the fund were information technology holdings, led by the rise in stock price of Hewlett-Packard. The fund’s greatest exposure was within health care, helped most by Gilead Sciences. The fund had a low exposure to financials as regulators have restricted U.S. financial companies’ dividend payout ratios.
The U.S. economy continues to improve, and Europe is slowly starting to get stronger. As the Federal Reserve slows its bond-buying program, it would not be surprising to see interest rates rise. In that environment, higher yielding sectors may continue to underperform the broader market. Growth may be subdued, so it’s imperative to own stocks of companies that make sought-after products that are not dependent on a particularly strong economic environment.
Largest individual equity securities | Percent of net assets | |||
Amgen | 4.49 | % | ||
Gilead Sciences | 4.01 | |||
Verizon | 3.46 | |||
Hewlett-Packard | 3.24 | |||
Vodafone | 2.96 | |||
Oracle | 2.90 | |||
Philip Morris International | 2.73 | |||
Johnson Controls | 2.61 | |||
CenturyLink | 2.48 | |||
Altria | 2.43 |
14 | American Funds Insurance Series |
Blue Chip Income and Growth Fund
How a $10,000 investment has grown
Year ended December 31
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2013
1 year | 5 years | 10 years | Lifetime (since July 5, 2001) | Expense ratio | ||||||||||||||||
Class 1 | 33.26 | % | 16.89 | % | 7.06 | % | 5.26 | % | .42 | % | ||||||||||
Class 2 | 33.00 | 16.62 | 6.80 | 4.99 | .67 | |||||||||||||||
Class 4 | 33.27 | 16.44 | 6.59 | 4.78 | .92 | * |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2014 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses.
* | The expense ratio for Class 4 is estimated based on current fiscal-year expenses. |
Where the fund’s assets were invested as of December 31, 2013 | Percent of net assets |
American Funds Insurance Series | 15 |
Global Growth and Income Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Global Growth and Income Fund gained 22.54% for the 12 months ended December 31, 2013, slightly behind the 22.80%* return of the MSCI ACWI (All Country World Index).
Supported by central bank stimulus and improving economic activity, developed market stocks rallied strongly in 2013. Emerging markets struggled amid concerns that the Federal Reserve might cut back on its bond-buying program.
Most of the fund’s industry sectors had double-digit gains for the year; the three largest sectors at year-end, financials, consumer discretionary and industrials, were the primary contributors to the return. In individual holdings, French insurance company AXA added the most value.
Holdings in the materials sector were weakest, registering a slight decline for the year, as mining companies continue to struggle with low demand. Two mining companies were among the fund’s weakest holdings for the year.
On a country basis, holdings in the U.S., United Kingdom and France added most to the return; investments in South Africa, China, India and Hong Kong detracted.
While the global outlook remains uncertain, the picture is brighter than a year ago and the portfolio managers are confident they can continue to find promising long-term investment opportunities.
Country diversification | Percent of net assets | |||
The Americas | ||||
United States | 44.4 | % | ||
Canada | 3.1 | |||
Mexico | .7 | |||
48.2 | ||||
Europe | ||||
United Kingdom | 12.4 | |||
France | 8.3 | |||
Germany | 2.7 | |||
Switzerland | 2.6 | |||
Spain | 1.7 | |||
Other | 3.3 | |||
31.0 | ||||
Asia/Pacific Basin | ||||
Japan | 6.5 | |||
Taiwan | 2.6 | |||
Hong Kong | 1.5 | |||
Singapore | 1.2 | |||
Other | 3.5 | |||
15.3 | ||||
Other regions | ||||
South Africa | 1.5 | |||
1.5 | ||||
Short-term securities & other assets less liabilities | 4.0 | |||
Total | 100.0 | % |
Largest individual equity securities | Percent of net assets | |||
Merck | 3.68 | % | ||
Vodafone | 2.87 | |||
AXA | 2.67 | |||
Taiwan Semiconductor Manufacturing | 2.39 | |||
Home Depot | 2.13 | |||
CME Group | 2.11 | |||
National Grid | 1.95 | |||
STMicroelectronics | 1.73 | |||
United Continental Holdings | 1.68 | |||
1.55 |
16 | American Funds Insurance Series |
Global Growth and Income Fund
How a $10,000 investment has grown
Year ended December 31
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2013
1 year | 5 years | Lifetime (since May 1, 2006) | Expense ratio | |||||||||||||
Class 1 | 22.81 | % | 16.73 | % | 6.28 | % | .62 | % | ||||||||
Class 2 | 22.54 | 16.44 | 6.02 | .87 | ||||||||||||
Class 4 | 22.60 | 16.21 | 5.78 | 1.12 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2014 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses.
* | The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
Where the fund’s assets were invested as of December 31, 2013 | Percent of net assets |
American Funds Insurance Series | 17 |
Growth-Income Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Growth-Income Fund gained 33.50% for the 12 months ended December 31, 2013, surpassing the 32.37% return of the S&P 500.
U.S. stocks posted another year of strong gains, with the major indexes recording all-time highs.
Stock selection was the key factor in the fund beating the index. Holdings in the fund’s two largest sectors at year-end — information technology and health care — were among the primary drivers of returns. Within IT, the fund benefited from its investment in Yahoo, as well as having no holdings in the weak IBM. Holdings in the health care sector included the top contributor to the fund’s result: U.S. biotechnology company Gilead Sciences.
Other strong sectors for the fund were industrials and consumer discretionary. Aerospace and defense companies led absolute results in the industrials group, while holdings in the media industry contributed most of the consumer discretionary sector’s gains.
All sectors except utilities, the fund’s smallest sector, gained during the year. The weakest area was the metals and mining industry in the materials sector, where demand remains sluggish.
Looking ahead, the portfolio managers expect that the likely rise in interest rates may lead to increased volatility in equity markets.
Largest individual equity securities | Percent of net assets | |||
Gilead Sciences | 3.71 | % | ||
2.61 | ||||
Philip Morris International | 2.19 | |||
Amazon | 2.16 | |||
Oracle | 2.14 | |||
Amgen | 2.11 | |||
Microsoft | 2.06 | |||
Texas Instruments | 2.03 | |||
Dow Chemical | 1.76 | |||
Home Depot | 1.39 |
18 | American Funds Insurance Series |
Growth-Income Fund
How a $10,000 investment has grown
Year ended December 31
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2013
1 year | 5 years | 10 years | Lifetime (since February 8, 1984) | Expense ratio | ||||||||||||||||
Class 1 | 33.82 | % | 17.91 | % | 7.33 | % | 11.44 | % | .29 | % | ||||||||||
Class 2 | 33.50 | 17.62 | 7.06 | 11.13 | .54 | |||||||||||||||
Class 3 | 33.58 | 17.70 | 7.14 | 11.24 | .47 | |||||||||||||||
Class 4 | 33.32 | 17.36 | 6.81 | 10.89 | .79 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2014 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses.
Where the fund’s assets were invested as of December 31, 2013 | Percent of net assets |
American Funds Insurance Series | 19 |
International Growth and Income Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
International Growth and Income Fund gained 19.09% for the 12 months ended December 31, 2013, compared with a 15.29%* gain for the MSCI ACWI (All Country World Index) ex USA.
Supported by central bank stimulus and improving economic activity, developed market stocks rallied strongly in 2013. However, emerging market stocks ended the year lower as the Federal Reserve began to reduce its bond-buying program.
All the fund’s industry sectors had gains for the year. Holdings in the financials, consumer discretionary and telecommunication services sectors were the main contributors to the result. In telecoms, Japanese company SoftBank, which acquired a majority stake in U.S. cellular company Sprint, had the fund’s highest return. U.K. insurance companies Aviva and Prudential were the main contributors in the financials sector.
Defensive areas, such as health care and consumer staples, did less well. Within consumer staples, holdings in the tobacco, beverages and food products industries were disappointing.
On a country basis, holdings in the U.K., 25.9% of net assets at December 31, had the most positive impact, followed by Japan and France. Thailand, India and Taiwan were weakest.
Looking ahead, the fund’s portfolio managers see growing optimism that economic growth will accelerate in Europe and Japan. However, the situation remains fragile so they are maintaining a relatively balanced approach by sector and geography.
Country diversification | Percent of net assets | |||
Europe | ||||
United Kingdom | 25.9 | % | ||
France | 7.2 | |||
Germany | 6.9 | |||
Switzerland | 5.9 | |||
Sweden | 4.8 | |||
Portugal | 3.1 | |||
Spain | 1.9 | |||
Finland | 1.9 | |||
Russia | 1.6 | |||
Denmark | 1.2 | |||
Other | 2.1 | |||
62.5 | ||||
Asia/Pacific Basin | ||||
Hong Kong | 6.0 | |||
Japan | 4.4 | |||
Australia | 2.2 | |||
Thailand | 2.0 | |||
South Korea | 1.8 | |||
India | 1.7 | |||
China | 1.5 | |||
Singapore | 1.2 | |||
Taiwan | 1.1 | |||
Other | .8 | |||
22.7 | ||||
The Americas | ||||
United States | 4.4 | |||
Other | .7 | |||
5.1 | ||||
Other regions | ||||
Israel | 1.1 | |||
Other | 1.4 | |||
2.5 | ||||
Short-term securities & other assets less liabilities | 7.2 | |||
Total | 100.0 | % |
Largest individual equity securities | Percent of net assets | |||
EDP - Energias de Portugal | 3.15 | % | ||
Novartis | 3.03 | |||
Vodafone | 2.81 | |||
Philip Morris International | 2.45 | |||
VINCI | 2.39 | |||
Prudential | 2.12 | |||
Aviva | 2.12 | |||
BP | 2.07 | |||
National Grid | 1.95 | |||
BNP Paribas | 1.91 |
20 | American Funds Insurance Series |
International Growth and Income Fund
How a $10,000 investment has grown
Year ended December 31
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2013
1 year | 5 years | Lifetime (since November 18, 2008) | Expense ratio | |||||||||||||
Class 1 | 19.39 | % | 13.95 | % | 15.59 | % | .69 | % | ||||||||
Class 2 | 19.09 | 13.66 | 15.30 | .94 | ||||||||||||
Class 4 | 19.16 | 13.46 | 15.09 | 1.19 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2014 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses.
* | The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
Where the fund’s assets were invested as of December 31, 2013 | Percent of net assets |
American Funds Insurance Series | 21 |
Asset Allocation Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Asset Allocation Fund, which is a mix of stocks and bonds, gained 23.69% for the 12 months ended December 31, 2013. The S&P 500, the benchmark index for the fund’s equity holdings, rose 32.37%, while the Barclays U.S. Aggregate Index, which measures U.S. investment-grade bonds, lost 2.02%. The 60/40 S&P/ Barclays Index gained 17.55%.*
U.S. stocks posted another year of strong gains, with the major indexes recording all-time highs. Bond markets were weak as U.S. interest rates began to rise.
All the fund’s industry sectors finished the year ahead; only utilities failed to notch a double-digit gain. Holdings in the consumer discretionary, health care, financials and industrials sectors were the primary contributors to the fund’s return. Three of the leading contributors had triple-digit returns for the year — U.S. biopharmaceutical companies Gilead Sciences and Incyte, and Japanese mobile telephone and internet provider SoftBank.
On a country basis, holdings in the U.S., Japan, the Netherlands and South Africa added the most value. Holdings in India, Brazil, France and Italy were weakest.
The fund’s holdings in cash, which reflect the portfolio managers’ cautious approach, were a drag on results. As in recent years, the portfolio managers continue to emphasize investments in stocks, which accounted for 69.4% of assets at year-end.
Largest individual equity securities | Percent of net assets | |||
Microsoft | 2.65 | % | ||
Comcast | 2.33 | |||
Merck | 1.95 | |||
Lockheed Martin | 1.93 | |||
Boeing | 1.90 | |||
Kinder Morgan | 1.79 | |||
ACE | 1.60 | |||
Home Depot | 1.58 | |||
Goldman Sachs | 1.47 | |||
American Express | 1.44 |
22 | American Funds Insurance Series |
Asset Allocation Fund
How a $10,000 investment has grown
Year ended December 31
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2013
1 year | 5 years | 10 years | Lifetime (since August 1,1989) | Expense ratio | ||||||||||||||||
Class 1 | 24.04 | % | 15.50 | % | 7.80 | % | 8.77 | % | .31 | % | ||||||||||
Class 2 | 23.69 | 15.22 | 7.54 | 8.48 | .56 | |||||||||||||||
Class 3 | 23.81 | 15.29 | 7.61 | 8.57 | .49 | |||||||||||||||
Class 4 | 23.89 | 15.02 | 7.30 | 8.24 | .81 | † |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2014 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses.
* | The 60/40 S&P/Barclays Index blends the S&P 500 with the Barclays U.S. Aggregate Index by weighting their total returns at 60% and 40%, respectively. Its result assumes the blend is rebalanced monthly. |
† | The expense ratio for Class 4 is estimated based on current fiscal-year expenses. |
Where the fund’s assets were invested as of December 31, 2013 | Percent of net assets |
American Funds Insurance Series | 23 |
Global Balanced Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Global Balanced Fund rose 12.23% for the 12 months ended December 31, 2013. The MSCI ACWI (All Country World Index), which measures global stocks, gained 22.80%,* while the Barclays Global Aggregate Index, a measure of investment-grade bonds, lost 2.60%. The 60/40 MSCI/Barclays Index increased 12.05%.*
Accommodative monetary policy and some economic recovery led global stock markets higher. Earnings improved, investor optimism grew and market valuations expanded. The U.S. is growing, the European economy is fragile but stabilizing and Japan’s efforts at monetary and fiscal stimulus are starting to bear fruit for the corporate sector.
Health care holdings aided the fund’s equity results, highlighted by Bristol-Myers Squibb, as the market shows optimism about its products. Information technology boosted returns, led by ASML Holding, a Dutch company that supplies the semiconductor industry. Industrials also benefited fund results.
In the fund’s fixed-income segment, an underweight position in the Japanese yen and select corporate bond holdings in financials helped, while an overly cautious position within the euro zone detracted. The fund largely avoided trouble in emerging market bonds.
This year will likely be more challenging as central banks withdraw stimulus, and risk is priced more appropriately. This can hurt emerging markets because they are U.S. dollar-dependent. Stocks are not terribly expensive; however, stocks that are generally more defensive are not necessarily cheap. Thus, we need to be disciplined in our search for value.
Five largest sectors in common stock holdings | Percent of net assets | |||
Financials | 11.1 | % | ||
Industrials | 9.8 | |||
Information technology | 8.8 | |||
Consumer staples | 8.6 | |||
Health care | 7.6 |
Currency diversification | Percent of net assets |
Equity securities | Bonds & notes | Forward currency contracts | Short-term securities & other assets less liabilities | Total | ||||||||||||||||
U.S. dollars | 32.9 | % | 15.7 | % | (1.6 | )% | 3.3 | % | 50.3 | % | ||||||||||
Euros | 15.1 | 4.2 | .9 | — | 20.2 | |||||||||||||||
British pounds | 6.5 | 1.3 | .5 | — | 8.3 | |||||||||||||||
Japanese yen | 5.3 | 1.5 | 1.1 | — | 7.9 | |||||||||||||||
Swiss francs | 2.1 | — | — | — | 2.1 | |||||||||||||||
Hong Kong dollars | 1.9 | — | — | — | 1.9 | |||||||||||||||
Mexican pesos | — | 1.6 | (.1 | ) | — | 1.5 | ||||||||||||||
Polish zloty | — | 1.2 | — | — | 1.2 | |||||||||||||||
Swedish kronor | .6 | 1.0 | (.4 | ) | — | 1.2 | ||||||||||||||
South Korean won | .4 | .5 | — | — | .9 | |||||||||||||||
Other currencies | 2.4 | 2.5 | (.4 | ) | — | 4.5 | ||||||||||||||
100.0 | % |
Largest individual equity securities | Percent of net assets | |||
ASML Holding | 2.34 | % | ||
Microsoft | 1.95 | |||
Merck | 1.88 | |||
Amazon | 1.88 | |||
Bristol-Myers Squibb | 1.76 |
Largest fixed-income holdings (by issuer) | Percent of net assets | |||
U.S. Treasury | 4.88 | % | ||
Fannie Mae | 1.56 | |||
Japanese Government | 1.54 | |||
United Mexican States Government | 1.52 | |||
Polish Government | 1.40 |
24 | American Funds Insurance Series |
Global Balanced Fund
How a $10,000 investment has grown
Year ended December 31
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2013
1 year | Lifetime (since May 2, 2011) | Expense ratio | ||||||||||
Class 1 | 12.56 | % | 6.83 | % | .70 | % | ||||||
Class 2 | 12.23 | 6.56 | .95 | |||||||||
Class 4 | 12.49 | 6.45 | 1.20 | † |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Expense ratios are as of the fund’s prospectus dated May 1, 2014 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses.
* | The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. The 60/40 MSCI/Barclays Index blends the MSCI ACWI (All Country World Index) with the Barclays Global Aggregate Index by weighting their total returns at 60% and 40%, respectively. Its result assumes the blend is rebalanced monthly. |
† | The expense ratio for Class 4 is estimated based on current fiscal-year expenses. |
Where the fund’s assets were invested as of December 31, 2013 | Percent of net assets |
American Funds Insurance Series | 25 |
Bond Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Bond Fund declined 2.16% for the 12 months ended December 31, 2013. The fund’s benchmark, the Barclays U.S. Aggregate Index, was down 2.02%.
Credit markets benefited from historically low interest rates and the Federal Reserve’s continuing monthly asset-purchase programs. Strong corporate issuance coupled with the corporate bond market doing well made it a favorable sector to be invested in. There was tremendous demand for yield even as the corporate debt supply increased. Long-dated Treasuries weakened throughout the year.
Investment-grade and high-yield corporate bonds aided the fund, particularly holdings of financials and telecommunication services. Offsetting gains were agency and agency pass-through bonds.
As the Fed reduces its purchasing of mortgages and Treasuries, it leads the fund’s portfolio managers to be negative on mortgages. Quantitative easing has helped companies refinance debt at a less expensive level, which is beneficial as long as those companies are disciplined.
Questions remain about how quickly the Fed is willing to end its bond-buying activities and the subsequent dislocation it may cause. Interest rates are expected to rise. The economy is still fragile, but improving, and we wouldn’t be surprised if the economy strengthens throughout the year as companies embark on bigger scale and longer term capital expenditures.
Largest holdings (by issuer) | Percent of net assets | |||
U.S. Treasury | 30.77 | % | ||
Fannie Mae | 12.67 | |||
Freddie Mac | 3.56 | |||
Spanish Government | 1.58 | |||
Government National Mortgage Assn. | 1.46 | |||
J.P. Morgan Chase Commercial Mortgage Securities Corp. | .83 | |||
Bank of America | .63 | |||
Federal Home Loan Bank | .61 | |||
Verizon | .58 | |||
Italian Government | .55 |
26 | American Funds Insurance Series |
Bond Fund
How a $10,000 investment has grown
Year ended December 31
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2013
1 year | 5 years | 10 years | Lifetime (since January 2, 1996) | Expense ratio | ||||||||||||||||
Class 1 | –1.89 | % | 5.83 | % | 3.77 | % | 5.07 | % | .39 | % | ||||||||||
Class 2 | –2.16 | 5.57 | 3.50 | 4.81 | .64 | |||||||||||||||
Class 4 | –2.34 | 5.32 | 3.26 | 4.55 | .89 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2014 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses.
Where the fund’s assets were invested as of December 31, 2013 | Percent of net assets |
American Funds Insurance Series | 27 |
Global Bond Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Global Bond Fund declined 2.58% for the 12 months ended December 31, 2013, slightly ahead of the Barclays Global Aggregate Index, which lost 2.60%.
The U.S.bond market declined for the first time since 1999 as improving economic data and waning support for central bank stimulus pushed interest rates higher. Yields moved higher across northern Europe, largely in line with U.S. rates, but declined sharply in some southern European countries where borrowing costs had soared during the sovereign bond crisis.
As the U.S. dollar weakened against the euro and many other European currencies, the fund benefited from its substantial exposure to European markets.
The weak Japanese yen and a correction in some emerging market bonds and currencies — notably South Africa, Indonesia and Brazil — detracted from fund results but limited exposure helped reduce the impact. The fund also had relatively little exposure to the weak Australian and Norwegian bond markets.
The fund’s portfolio managers believe the ongoing weakness in some emerging markets and Japan will provide attractive opportunities in the next few years. Global growth is likely to strengthen in 2014, helping the euro countries and many weaker economies.
Currency weighting (after hedging) by country | Percent of net assets | |||
United States1 | 50.9 | % | ||
EMU2 | 17.7 | |||
Japan | 9.1 | |||
United Kingdom | 5.1 | |||
Poland | 3.7 | |||
Mexico | 3.4 | |||
Norway | 1.4 | |||
South Korea | 1.3 | |||
Colombia | 1.0 | |||
Hungary | 1.0 | |||
Russia | .8 | |||
Sweden | .7 | |||
Malaysia | .6 | |||
Other | 3.3 | |||
Total | 100.0 | % |
Non-U.S. government bonds by country | ||||||||
EMU2: | ||||||||
Spain | 8.6 | % | ||||||
Italy | 3.0 | |||||||
Ireland | 2.3 | |||||||
Belgium | 1.5 | |||||||
Germany | 1.2 | |||||||
Other | 2.8 | 19.4 | % | |||||
Japan | 5.7 | |||||||
Poland | 4.4 | |||||||
Mexico | 3.9 | |||||||
United Kingdom | 3.0 | |||||||
Hungary | 3.0 | |||||||
Sweden | 1.6 | |||||||
Norway | 1.5 | |||||||
South Korea | 1.2 | |||||||
Colombia | .8 | |||||||
Other | 6.5 | |||||||
Total | 51.0 | % |
Largest holdings (by issuer) | Percent of net assets | |||
U.S. Treasury | 12.39 | % | ||
Spanish Government | 8.59 | |||
Japanese Government | 5.72 | |||
Polish Government | 4.42 | |||
United Mexican States Government | 3.86 | |||
Fannie Mae | 3.30 | |||
Italian Government | 3.04 | |||
United Kingdom Government | 3.00 | |||
Hungarian Government | 3.00 | |||
Irish Government | 2.33 |
28 | American Funds Insurance Series |
Global Bond Fund
How a $10,000 investment has grown
Year ended December 31
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2013
1 year | 5 years | Lifetime (since October 4, 2006) | Expense ratio | |||||||||||||
Class 1 | –2.40 | % | 4.79 | % | 5.47 | % | .56 | % | ||||||||
Class 2 | –2.58 | 4.54 | 5.21 | 3 | .81 | |||||||||||
Class 4 | –2.41 | 4.37 | 5.01 | 1.06 | 4 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2014 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses.
1 | Includes U.S. dollar-denominated debt of other countries, totaling 12.6%. |
2 | European Monetary Union consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain. Euro-denominated debt includes corporate and European government debt. |
3 | Global Bond Fund Class 2 shares were first sold on November 6, 2006. Results prior to that date are hypothetical based on Class 1 share results adjusted for estimated additional annual expenses of 0.25%. |
4 | The expense ratio for Class 4 is estimated based on current fiscal-year expenses. |
Where the fund’s assets were invested as of December 31, 2013 | Percent of net assets |
American Funds Insurance Series | 29 |
High-Income Bond Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
High-Income Bond Fund gained 6.60% for the 12 months ended December 31, 2013. The fund’s benchmark, the Barclays U.S. Corporate High Yield 2% Issuer Capped Index, increased 7.44%.
Interest rates rose and many fixed-income sectors had negative returns, but high yield had a strong year as the higher current yields and narrowing spreads more than offset the rise in underlying Treasury yields. Historically, high yield does relatively well in a rising rate environment. The riskiest bonds generally posted the highest gains.
The strengthening economy helped corporate profits and creditworthiness, and the open markets allowed companies to refinance debt, extend maturities and improve balance sheets. While the fund produced good absolute returns, relative returns lagged as the fund was positioned more conservatively.
U.S.-based high-yield bonds aided fund results, while emerging market-domiciled bonds offset those gains. Corporate bonds in life sciences tools & services benefited the fund, while issuances in wireless telecommunication services detracted.
Looking ahead, we are cautious of absolute returns due to the lower starting yields and spreads. As monetary policy becomes less accommodative, we expect interest rates to rise, which will be an ongoing headwind for high-yield returns. That said, we expect the credit environment to continue to be constructive, with defaults low.
Largest holdings (by issuer) | Percent of net assets | |||
First Data | 2.93 | % | ||
Sprint Nextel | 2.92 | |||
Wind Acquisition | 2.36 | |||
T-Mobile | 2.35 | |||
inVentiv Health | 1.84 | |||
Leap Wireless | 1.69 | |||
FMG Resources | 1.69 | |||
NII Capital | 1.65 | |||
Kinetic Concepts | 1.62 | |||
DISH DBS | 1.50 |
30 | American Funds Insurance Series |
High-Income Bond Fund
How a $10,000 investment has grown
Year ended December 31
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2013
1 year | 5 years | 10 years | Lifetime (since February 8, 1984) | Expense ratio | ||||||||||||||||
Class 1 | 6.89 | % | 14.89 | % | 6.83 | % | 9.50 | % | .48 | % | ||||||||||
Class 2 | 6.60 | 14.58 | 6.56 | 9.16 | .73 | |||||||||||||||
Class 3 | 6.77 | 14.67 | 6.64 | 9.31 | .66 | |||||||||||||||
Class 4 | 6.81 | 14.42 | 6.34 | 8.97 | .98 | * |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2014 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses.
* | The expense ratio for Class 4 is estimated based on current fiscal-year expenses. |
Where the fund’s assets were invested as of December 31, 2013 | Percent of net assets |
American Funds Insurance Series | 31 |
Mortgage Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Mortgage Fund declined 1.68% for the 12 months ended December 31, 2013, while the Barclays U.S. Mortgage-Backed Securities Index was down 1.41%.
The Federal Reserve added $1.2 billion of U.S. Treasuries and agency mortgage-backed securities (MBS) to its balance sheet in 2013. Meanwhile, 10-year U.S. Treasury yields fell from 1.86% at the beginning of January to a low of 1.66% in early May, rising to end the year at a high of 3.04%.
The first six months of 2013 was a challenging period for the mortgage market. Yields increased by about 1%, most of which came after the Federal Reserve said that it was considering reducing its MBS purchases.
In the second half of the year, the fund increased holdings in Treasury inflation-protected securities (TIPS), which can provide some protection against a rapid rise in U.S. Treasury and agency MBS yields due to higher inflation expectations.
A potentially significant factor for agency MBS results in 2014, and a reason to be cautious, is the recent appointment of a new Federal Housing Finance Agency director whose policies may favor borrowers over investors. This change in leadership and policies could negatively affect agency MBS prices. As a precaution, the fund’s portfolio managers are keeping a relatively low position in agency MBS in 2014, while waiting for better opportunities to add to holdings.
Breakdown of mortgage-backed obligations | Percent of net assets | |||||||
30-year pass-throughs: | ||||||||
Fannie Mae | 23.5 | % | ||||||
Ginnie Mae | 21.6 | |||||||
Freddie Mac | 12.1 | 57.2 | % | |||||
15-year pass-throughs | 3.7 | |||||||
Other | 13.2 | |||||||
Total | 74.1 | % |
32 | American Funds Insurance Series |
Mortgage Fund
How a $10,000 investment has grown
Year ended December 31
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2013 | ||||||||||||
1 year | Lifetime (since May 2, 2011) | Expense ratio | ||||||||||
Class 1 | –1.41 | % | 2.20 | % | .44 | % | ||||||
Class 2 | –1.68 | 1.95 | .69 | |||||||||
Class 4 | –1.41 | 1.89 | .94 | * |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Expense ratios are as of the fund’s prospectus dated May 1, 2014 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses.
* | The expense ratio for Class 4 is estimated based on current fiscal-year expenses. |
Where the fund’s assets were invested as of December 31, 2013 | Percent of net assets |
American Funds Insurance Series | 33 |
U.S. Government/AAA-Rated Securities Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
U.S. Government/AAA-Rated Securities Fund declined 3.08% for the 12 months ended December 31, 2013. The Barclays U.S. Government/Mortgage-Backed Securities Index lost 2.10%.
The improving U.S. economy and concerns that the Federal Reserve would begin to reduce its bond-buying program caused a selloff in U.S. Treasuries. The yield on 10-year Treasuries rose from 1.66% in May to 3.04% by the end of the year.
Expectations that the Fed would reduce its stimulus measures also led to widening spreads in mortgage-backed securities. When the Fed did not taper its purchases in September, as predicted, many investors were caught off-guard. Inflation index-linked bonds had a tough time as inflation remained low.
Going into 2014, the fund’s portfolio managers expect continued strength in the U.S. economy with a likely gradual rise in interest rates through the year. However, they believe the outlook for bonds is better than a year ago when the starting point was much lower.
As stock markets have had strong returns in recent years, it is also important to remember that the fund can be a buffer against stock market volatility.
Breakdown of mortgage-backed obligations | Percent of net assets | |||||||
30-year pass-throughs: | ||||||||
Fannie Mae | 10.8 | % | ||||||
Ginnie Mae | 6.0 | |||||||
Freddie Mac | 5.2 | 22.0 | % | |||||
15-year pass-throughs | 2.4 | |||||||
Other | 3.6 | |||||||
Total | 28.0 | % |
34 | American Funds Insurance Series |
U.S. Government/AAA-Rated Securities Fund
How a $10,000 investment has grown
Year ended December 31
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2013 | ||||||||||||||||||||
1 year | 5 years | 10 years | Lifetime (since December 2, 1985) | Expense ratio | ||||||||||||||||
Class 1 | –2.87 | % | 3.12 | % | 4.04 | % | 6.34 | % | .35 | % | ||||||||||
Class 2 | –3.08 | 2.86 | 3.78 | 6.03 | .60 | |||||||||||||||
Class 3 | –3.00 | 2.93 | 3.85 | 6.15 | .53 | |||||||||||||||
Class 4 | –2.95 | 2.70 | 3.57 | 5.83 | .85 | * |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008, and July 1, 2010, through December 31, 2010. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2014 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses.
* | The expense ratio for Class 4 is estimated based on current fiscal-year expenses. |
Where the fund’s assets were invested as of December 31, 2013 | Percent of net assets |
American Funds Insurance Series | 35 |
Cash Management Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. An investment in Cash Management Fund is not insured or guaranteed by the FDIC or any other government agency. It is important to remember that the fund is not managed to maintain a stable net asset value at $1.00 per share. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Cash Management Fund declined 0.45% for the 12 months ended December 31, 2013.
While long-term interest rates increased in 2013, the Federal Reserve is maintaining short-term rates at the current record lows, at least until unemployment falls to 6.5%.
In this environment, the fund’s expenses can be expected to continue to exceed its income, leading to negative returns.
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2013 | ||||||||||||||||||||
1 year | 5 year | 10 year | Lifetime (since February 8, 1984) | Expense ratio | ||||||||||||||||
Class 1 | –0.27 | % | –0.18 | % | 1.47 | % | 3.96 | % | .34 | % | ||||||||||
Class 2 | –0.45 | –0.42 | 1.23 | 3.67 | .59 | |||||||||||||||
Class 3 | –0.44 | –0.36 | 1.30 | 3.77 | .52 | |||||||||||||||
Class 4 | –0.35 | –0.59 | 1.01 | 3.46 | .84 | * |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2014 (unaudited). See the Financial Highlights table in this report for details.
As of December 31, 2013, Cash Management Fund’s annualized seven-day SEC yield was –0.28% for Class 1 shares; –0.53% for Class 2 shares; –0.46% for Class 3 shares; and –0.33% for Class 4 shares. The fund’s yield more accurately reflects the fund’s current earnings than do the fund’s returns.
* | The expense ratio for Class 4 is estimated based on current fiscal-year expenses. |
Where the fund’s assets were invested as of December 31, 2013 | Percent of net assets | |||
Commercial paper | 44.3 | % | ||
Federal agency discount notes | 31.2 | |||
U.S. Treasuries | 20.9 | |||
Discount notes | 3.3 | |||
Other assets less liabilities | .3 | |||
Total | 100.0 | % |
36 | American Funds Insurance Series |
Managed Risk Growth Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Managed Risk Growth Fund gained 14.94% for the period from its inception on May 1, 2013, through December 31, 2013. Over the same period, the S&P 500 rose 18.53%.
Managed Risk Growth Fund pursues its objective by investing in shares of American Funds Insurance Series Growth Fund while seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures contracts.
The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying fund, as was the case during the past eight months.
How a $10,000 investment has grown
Monthly ended
Cumulative total returns based on a $1,000 investment
For the period ended December 31, 2013 | ||||||||||||
Lifetime* (since May 1, 2013) | Gross expense ratio† | Net expense ratio† | ||||||||||
Class P1 | 15.05 | % | .97 | % | .81 | % | ||||||
Class P2 | 14.94 | 1.22 | 1.06 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Expense ratios are estimated as of the fund’s prospectus dated May 1, 2014 (unaudited). The investment adviser is currently waiving a portion of its management fee equal to 0.05% of the fund’s net assets. In addition, the investment adviser is currently reimbursing a portion of the other expenses so that they will not exceed 0.28%. Investment results and net expense ratios shown reflect the waiver and reimbursements, without which the results would have been lower and the expenses would have been higher. After May 1, 2015, the adviser may modify or terminate the waiver, but only with fund board approval. The adviser has committed to retain any reimbursements only through May 1, 2015. See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses.
* | Lifetime cumulative return since fund inception. |
† | Based on estimated amounts for the current fiscal year. |
Milliman Financial Risk Management LLC serves as the sub-adviser with respect to the management of the fund’s managed risk strategy.
American Funds Insurance Series | 37 |
Managed Risk International Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Managed Risk International Fund gained 8.99% for the period from its inception on May 1, 2013, through December 31, 2013. Over the same period, the MSCI ACWI (All Country World Index) ex USA rose 8.07%.1
Managed Risk International Fund pursues its objective by investing in shares of American Funds Insurance Series International Fund while seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures contracts.
The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying fund, as was the case during the past eight months.
How a $10,000 investment has grown
Monthly ended
Cumulative total returns based on a $1,000 investment
For the period ended December 31, 2013 | ||||||||||||
Lifetime2 (since May 1, 2013) | Gross expense ratio3 | Net expense ratio3 | ||||||||||
Class P1 | 9.08 | % | 1.14 | % | .98 | % | ||||||
Class P2 | 8.99 | 1.39 | 1.23 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Expense ratios are estimated as of the fund’s prospectus dated May 1, 2014 (unaudited). The investment adviser is currently waiving a portion of its management fee equal to 0.05% of the fund’s net assets. In addition, the investment adviser is currently reimbursing a portion of the other expenses so that they will not exceed 0.28%. Investment results and net expense ratios shown reflect the waiver and reimbursements,without which the results would have been lower and the expenses would have been higher. After May 1, 2015, the adviser may modify or terminate the waiver, but only with fund board approval. The adviser has committed to retain any reimbursements only through May 1, 2015. See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses.
1 | The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
2 | Lifetime cumulative return since fund inception. |
3 | Based on estimated amounts for the current fiscal year. |
Milliman Financial Risk Management LLC serves as the sub-adviser with respect to the management of the fund’s managed risk strategy.
38 | American Funds Insurance Series |
Managed Risk Blue Chip Income and Growth Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Managed Risk Blue Chip Income and Growth Fund gained 12.05% for the period from its inception on May 1, 2013, through December 31, 2013. Over the same period, the S&P 500 rose 18.53%.
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 Fund while seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures contracts.
The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying fund, as was the case during the past eight months.
How a $10,000 investment has grown
Monthly ended
Cumulative total returns based on a $1,000 investment
For the period ended December 31, 2013 | ||||||||||||
Lifetime* (since May 1, 2013) | Gross expense ratio† | Net expense ratio† | ||||||||||
Class P1 | 12.16 | % | 1.04 | % | .88 | % | ||||||
Class P2 | 12.05 | 1.29 | 1.13 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Expense ratios are estimated as of the fund’s prospectus dated May 1, 2014 (unaudited). The investment adviser is currently waiving a portion of its management fee equal to 0.05% of the fund’s net assets. In addition, the investment adviser is currently reimbursing a portion of the other expenses so that they will not exceed 0.28%. Investment results and net expense ratios shown reflect the waiver and reimbursements, without which the results would have been lower and the expenses would have been higher. After May 1, 2015, the adviser may modify or terminate the waiver, but only with fund board approval. The adviser has committed to retain any reimbursements only through May 1, 2015. See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses.
* | Lifetime cumulative return since fund inception. |
† | Based on estimated amounts for the current fiscal year. |
Milliman Financial Risk Management LLC serves as the sub-adviser with respect to the management of the fund’s managed risk strategy.
American Funds Insurance Series | 39 |
Managed Risk Growth-Income Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Managed Risk Growth-Income Fund gained 16.04% for the period from its inception on May 1, 2013, through December 31, 2013. Over the same period, the S&P 500 rose 18.53%.
Managed Risk Growth-Income Fund pursues its objective by investing in shares of American Funds Insurance Series Growth-Income Fund while seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures contracts.
The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying fund, as was the case during the past eight months.
How a $10,000 investment has grown
Monthly ended
Cumulative total returns based on a $1,000 investment
For the period ended December 31, 2013 | ||||||||||||
Lifetime* (since May 1, 2013) | Gross expense ratio† | Net expense ratio† | ||||||||||
Class P1 | 16.15 | % | .91 | % | .75 | % | ||||||
Class P2 | 16.04 | 1.16 | 1.00 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Expense ratios are estimated as of the fund’s prospectus dated May 1, 2014 (unaudited). The investment adviser is currently waiving a portion of its management fee equal to 0.05% of the fund’s net assets. In addition, the investment adviser is currently reimbursing a portion of the other expenses so that they will not exceed 0.28%. Investment results and net expense ratios shown reflect the waiver and reimbursements, without which the results would have been lower and the expenses would have been higher. After May 1, 2015, the adviser may modify or terminate the waiver, but only with fund board approval. The adviser has committed to retain any reimbursements only through May 1, 2015. See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses.
* | Lifetime cumulative return since fund inception. |
† | Based on estimated amounts for the current fiscal year. |
Milliman Financial Risk Management LLC serves as the sub-adviser with respect to the management of the fund’s managed risk strategy.
40 | American Funds Insurance Series |
Managed Risk Asset Allocation Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Managed Risk Asset Allocation Fund, which provides exposure to a mix of stocks and bonds, gained 20.58% for the 12 months ended December 31, 2013. The S&P 500, which measures U.S. stocks, rose 32.37%, while the Barclays U.S. Aggregate Index, which measures U.S. investment-grade bonds, lost 2.02%. A blend of the two indexes, the 60/40 S&P/Barclays Index, rose 17.55%.*
Managed Risk Asset Allocation Fund pursues its objective by investing in shares of American Funds Insurance Series Asset Allocation Fund while seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures contracts.
The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying fund, as was the case during the past year.
How a $10,000 investment has grown
Monthly ended
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2013 | ||||||||||||||||
1 year | Lifetime (since September 28, 2012) | Gross expense ratio | Expense ratio | |||||||||||||
Class P1 | 20.82 | % | 17.38 | % | .86 | % | .76 | % | ||||||||
Class P2 | 20.58 | 17.16 | 1.11 | 1.01 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Expense ratios are estimated as of the fund’s prospectus dated May 1, 2014 (unaudited). The investment adviser is currently waiving a portion of its management fee equal to 0.05% of the fund’s net assets. In addition, the investment adviser is currently reimbursing a portion of the other expenses so that they will not exceed 0.28%. Investment results and net expense ratios shown reflect the waiver and reimbursements, without which the results would have been lower and the expenses would have been higher. After May 1, 2015, the adviser may modify or terminate the waiver, but only with fund board approval. The adviser has committed to retain any reimbursements only through May 1, 2015. See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses.
* | The 60/40 S&P/Barclays Index blends the S&P 500 with the Barclays U.S. Aggregate Index by weighting their total returns at 60% and 40%, respectively. Its result assumes the blend is rebalanced monthly. |
Milliman Financial Risk Management LLC serves as the sub-adviser with respect to the management of the fund’s managed risk strategy.
American Funds Insurance Series | 41 |
The strategy incorporates two additional risk-mitigation components: one designed to mitigate volatility and the other designed to help preserve capital during significant and sustained market declines.
Severe or prolonged market downturns in the early years of retirement can have a devastating effect on life savings. That’s why market volatility is a major concern for investors in or approaching retirement. As one way to help counter this risk, American Funds Insurance Series (AFIS) has introduced five funds that seek to manage volatility and provide downside protection during market turmoil.
The funds, which appear in this annual 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.
We asked Alan Berro, the funds’ principal investment officer and one of their two portfolio managers, and Steve Joyce, senior insurance business leader, to explain the key features of the managed risk funds and how they can help retirement investors.
First, can you explain how the managed risk funds differ from the other AFIS funds?
Alan: “All AFIS funds benefit from The Capital System investment process that combines individual accountability with teamwork. Our strong research, attention to valuation, and excellent diversification already provide good risk management. However, the managed risk funds add an additional level of risk management that seeks to provide consistent preservation of capital over the long term. Each of these funds invests in its corresponding traditionally managed AFIS fund while maintaining a level of cash, adjusted for market conditions, to support an overlaid risk management strategy.
“The strategy incorporates two additional risk-mitigation components: one designed
42 | American Funds Insurance Series |
to mitigate volatility and the other designed to help preserve capital during significant and sustained market declines. Both risk management components are implemented using exchange-traded futures. The strategy is based on certain characteristics of the underlying fund’s equity portfolio; however, it acts independently of the underlying fund’s portfolio.”
The strategy adds another layer of risk-mitigation to the risk management procedures of the underlying funds.
Who are managed risk funds for?
Steve: “Managed risk funds are for investors who are particularly risk-averse and concerned about their exposure to significant market downturns or who are approaching or in retirement. We think these funds provide an opportunity for them to participate in the market with more confidence.”
Alan: “These funds are ideal for investors who are seeking exposure to equity investments, but are willing to exchange some potential upside for less volatile returns. They may be attractive to investors who are closer to retirement and couldn’t withstand a major setback to their savings that late in their lives.
“For example, consider the period from 2007 to the low in 2009 when the S&P 500 was down 55%. A 63-year-old investor might be terrified of that type of decline in his asset value at that point in his life, not knowing when the rebound is going to come.
“If you have a 15- or 20-year horizon, you’re pretty confident that at some point you’ll make it back. But if you’re 63 and looking to retire at 65, your assets just got cut in half, which can negatively impact your plans.”
What are the benefits of managed risk funds?
Alan: “The goal of managed risk funds is to tighten the distribution of returns to produce smoother investment results. While these funds may not do as well as their non-risk-managed counterparts during periods of rising equity markets, the managed risk strategy seeks to produce an attractive return on a risk-adjusted basis.”
American Funds Insurance Series | 43 |
Steve Joyce
Alan Berro
Steve: “So for a variable annuity contract holder taking systematic withdrawals, the two risk management components are designed to work together to help preserve account value in order to reduce the risk that the contract holder runs out of money.”
Why has American Funds introduced managed risk funds?
Steve: “There is significant market demand for managed risk funds. The market for such funds has ballooned from $1.4 billion in assets under management in 2006 to more than $129 billion in 2012, according to a report from the mutual fund consulting firm Strategic Insight. The majority of these fund assets — $108 billion — is held in variable annuity contracts.”
Alan: “In addition, and most important, we believe these funds serve a purpose that is consistent with our investment philosophy and appropriate for certain kinds of investors.”
Who oversees the risk management strategy?
Alan: “The managed risk strategy is operated by the funds’ sub-adviser, Milliman Financial Risk Management LLC, the leading investment advisor to the life insurance industry for risk management and hedging. Milliman directly hedges approximately $85 billion in variable insurance assets and supports the risk management of over $500 billion of retirement savings accounts via its outsourcing of hedging and advisory services.”
Why did American Funds choose these specific funds?
Steve: “We selected funds that we believe paired best with the managed risk strategy. They represent an attractive, diversified spectrum of choices for investors, including funds focused on growth, growth and income, international stocks, high-quality stocks and a balanced approach with investments in both stocks and bonds.”
Should investors move out of traditional non–managed–risk funds into these new funds?
Alan: “That depends on their specific circumstances, such as their risk tolerance, time frame and investing preferences, as well as the terms of their variable annuity contract. We suggest investors consult their financial advisor.”
Do the managed risk funds guarantee investors won’t lose money?
Alan: “No.Guarantees,if any,are provided by the issuer of the variable annuity contract, not the managed risk funds.”
Steve: “In down markets, the traditional and managed risk funds may both lose value. The goal of the managed risk funds is to decline less than the traditionally managed funds.”
What is volatility and why is it an important consideration?
Alan: “Volatility is a measure of the variation in the value of an investment over time. Generally, this is important to investors because:
• | Wide variances in the value of investments lead to greater emotional turmoil and worry; |
• | Lower stability of returns while withdrawing for retirement can result in lower overall returns; and |
• | Significant market declines when close to or in retirement may have a permanent negative impact on retirement savings.” |
44 | American Funds Insurance Series |
Steve: “Over time, we’ve seen that volatility in the marketplace is inevitable, but that doesn’t necessarily mean that the market is going to go down over the long term. Some investors who are particularly loss-averse may feel that passing up the potential for higher returns in volatile markets is a good tradeoff.
“During the last prolonged market decline a lot of investors’ circumstances changed and they no longer had enough of a cushion to stay invested in the manner that they did before. These funds help to mitigate some of that exposure; they don’t eliminate risk, but they help to reduce it, and that should make those investors feel better.”
Is the managed risk strategy a form of market timing?
Alan: “No. Market timing is an attempt to profit by projecting the future direction of the market, often done with a short-term horizon. The history of returns for market timers is quite poor. Many people associate market timing with ‘tactical asset allocation’ strategies of today. We believe that the managed risk strategy is more in keeping with our overall longer term approach to asset allocation.
“We’re not trying to time short-term market moves; what we’re trying to do is change the sequence of returns so that investors lose less in down markets, which means they’ll have more invested when the market turns up and they can participate a little more on the upside from the market low.”
Steve: “We’re not trying to project the future direction of the market with these funds. Rather, what we’re trying to do is reduce downside risk and the volatility of return risk that is associated with being fully invested. This is distinctly different from ‘market timing’ and is more analogous to rebalancing in response to market risk. Market timing is an endeavor that I don’t believe can be successfully achieved, but rebalancing in response to increased risk can be very prudent.
“In summary, investors with very long time horizons, and the confidence to stay invested, might be better off in a traditionally managed fund. However, for some investors — such as someone approaching retirement or in the withdrawal phase, or simply investors who are more ‘loss-averse’ — the managed risk funds’ active risk management strategy may be appropriate.” n
American Funds Insurance Series | 45 |
Summary investment portfolio December 31, 2013
Common stocks 96.22% | Shares | Value (000) | Percent of net assets | |||||||||
Consumer discretionary 24.74% | ||||||||||||
Amazon.com, Inc.1 | 584,500 | $ | 233,093 | 3.96 | % | |||||||
priceline.com Inc.1 | 104,000 | 120,890 | 2.05 | |||||||||
Home Depot, Inc. | 1,011,000 | 83,246 | 1.41 | |||||||||
Toyota Motor Corp. | 1,250,000 | 76,204 | 1.30 | |||||||||
Industria de Diseño Textil, SA | 438,700 | 72,302 | 1.23 | |||||||||
Honda Motor Co., Ltd. | 1,753,800 | 72,111 | 1.23 | |||||||||
Swatch Group Ltd, non-registered shares | 82,550 | 54,552 | ||||||||||
Swatch Group Ltd | 137,000 | 15,419 | 1.19 | |||||||||
Naspers Ltd., Class N | 654,020 | 68,333 | 1.16 | |||||||||
HUGO BOSS AG | 335,500 | 47,770 | .81 | |||||||||
Carnival Corp., units | 1,085,000 | 43,584 | .74 | |||||||||
Walt Disney Co. | 533,705 | 40,775 | .69 | |||||||||
Other securities | 528,395 | 8.97 | ||||||||||
1,456,674 | 24.74 | |||||||||||
Information technology 17.02% | ||||||||||||
ASML Holding NV (New York registered) | 647,176 | 60,640 | ||||||||||
ASML Holding NV | 624,897 | 58,492 | 2.02 | |||||||||
Google Inc., Class A1 | 95,700 | 107,252 | 1.82 | |||||||||
Alcatel-Lucent1 | 21,769,144 | 97,570 | 1.66 | |||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 23,380,000 | 82,762 | ||||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. (ADR) | 750,000 | 13,080 | 1.63 | |||||||||
Baidu, Inc., Class A (ADR)1 | 413,000 | 73,464 | 1.25 | |||||||||
Nintendo Co., Ltd. | 535,000 | 71,174 | 1.21 | |||||||||
TE Connectivity Ltd. | 897,500 | 49,461 | .84 | |||||||||
OpenTable, Inc.1 | 605,000 | 48,019 | .81 | |||||||||
TDK Corp. | 950,000 | 45,466 | .77 | |||||||||
Other securities | 294,821 | 5.01 | ||||||||||
1,002,201 | 17.02 | |||||||||||
Health care 14.35% | ||||||||||||
Novo Nordisk A/S, Class B | 965,200 | 176,923 | 3.00 | |||||||||
Vertex Pharmaceuticals Inc.1 | 1,093,000 | 81,210 | 1.38 | |||||||||
UnitedHealth Group Inc. | 960,000 | 72,288 | 1.23 | |||||||||
Gilead Sciences, Inc.1 | 822,000 | 61,773 | 1.05 | |||||||||
Merck & Co., Inc. | 1,134,000 | 56,757 | .96 | |||||||||
Regeneron Pharmaceuticals, Inc.1 | 178,300 | 49,075 | .83 | |||||||||
Bayer AG | 349,300 | 48,990 | .83 | |||||||||
Bristol-Myers Squibb Co. | 909,600 | 48,345 | .82 | |||||||||
Hologic, Inc.1 | 2,163,000 | 48,343 | .82 | |||||||||
Novartis AG | 580,000 | 46,293 | .79 | |||||||||
Other securities | 155,291 | 2.64 | ||||||||||
845,288 | 14.35 |
46 | American Funds Insurance Series |
Global Growth Fund
Common stocks | Shares | Value (000) | Percent of net assets | |||||||||
Financials 14.03% | ||||||||||||
Moody’s Corp. | 2,114,000 | $ | 165,886 | 2.82 | % | |||||||
AIA Group Ltd. | 13,255,300 | 66,496 | 1.13 | |||||||||
Prudential PLC | 2,772,434 | 61,519 | 1.05 | |||||||||
ORIX Corp. | 3,490,000 | 61,210 | 1.04 | |||||||||
HSBC Holdings PLC | 5,120,228 | 56,164 | .95 | |||||||||
AXA SA | 1,836,463 | 51,059 | .87 | |||||||||
JPMorgan Chase & Co. | 775,000 | 45,322 | .77 | |||||||||
BNP Paribas SA | 500,000 | 38,967 | .66 | |||||||||
Other securities | 279,354 | 4.74 | ||||||||||
825,977 | 14.03 | |||||||||||
Industrials 7.45% | ||||||||||||
Rolls-Royce Holdings PLC1 | 2,805,000 | 59,223 | 1.01 | |||||||||
Geberit AG | 150,000 | 45,485 | .77 | |||||||||
KONE Oyj, Class B | 880,000 | 39,708 | .67 | |||||||||
Intertek Group PLC | 755,000 | 39,358 | .67 | |||||||||
Other securities | 254,696 | 4.33 | ||||||||||
438,470 | 7.45 | |||||||||||
Consumer staples 5.78% | ||||||||||||
Associated British Foods PLC | 1,590,000 | 64,376 | 1.09 | |||||||||
Nestlé SA | 820,000 | 60,026 | 1.02 | |||||||||
Colgate-Palmolive Co. | 632,000 | 41,213 | .70 | |||||||||
Other securities | 174,849 | 2.97 | ||||||||||
340,464 | 5.78 | |||||||||||
Materials 4.39% | ||||||||||||
Steel Dynamics, Inc. | 2,262,332 | 44,206 | .75 | |||||||||
First Quantum Minerals Ltd. | 2,300,000 | 41,442 | .71 | |||||||||
Other securities | 172,730 | 2.93 | ||||||||||
258,378 | 4.39 | |||||||||||
Telecommunication services 3.36% | ||||||||||||
SoftBank Corp. | 1,634,000 | 142,748 | 2.42 | |||||||||
Other securities | 55,271 | .94 | ||||||||||
198,019 | 3.36 | |||||||||||
Energy 3.25% | ||||||||||||
Oil Search Ltd. | 6,973,952 | 50,501 | .86 | |||||||||
Other securities | 140,815 | 2.39 | ||||||||||
191,316 | 3.25 | |||||||||||
Utilities 0.48% | ||||||||||||
Other securities | 28,404 | .48 | ||||||||||
Miscellaneous 1.37% | ||||||||||||
Other common stocks in initial period of acquisition | 80,469 | 1.37 | ||||||||||
Total common stocks (cost: $3,809,656,000) | 5,665,660 | 96.22 |
American Funds Insurance Series | 47 |
Global Growth Fund
Bonds, notes & other debt instruments 0.56% | Value (000) | Percent of net assets | ||||||||||
U.S. Treasury bonds & notes 0.56% | ||||||||||||
Other securities | $ | 33,166 | .56 | % | ||||||||
Total bonds, notes & other debt instruments (cost: $33,145,000) | 33,166 | .56 |
Short-term securities 3.57% | Principal amount (000) | |||||||||||
Federal Home Loan Bank 0.06%–0.09% due 2/12–3/21/2014 | $ | 68,100 | 68,090 | 1.16 | ||||||||
Walt Disney Co. 0.07% due 2/27/20142 | 18,800 | 18,798 | .32 | |||||||||
Other securities | 123,376 | 2.09 | ||||||||||
Total short-term securities (cost: $210,258,000) | 210,264 | 3.57 | ||||||||||
Total investment securities (cost: $4,053,059,000) | 5,909,090 | 100.35 | ||||||||||
Other assets less liabilities | (20,918 | ) | (.35 | ) | ||||||||
Net assets | $ | 5,888,172 | 100.00 | % |
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.
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio, including securities which were valued under fair value procedures adopted by authority of the board of trustees. One of these securities (with a value of $1,336,000, a cost of $6,378,000, and which represented ..02% of the net assets of the fund) was acquired from 9/6/2000 to 4/18/2002 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject it to legal or contractual restrictions on resale.
48 | American Funds Insurance Series |
Global Growth Fund
Forward currency contracts
The fund has entered into forward currency contracts to sell currencies as shown in the following table. The average notional amount of open forward currency contracts was $130,572,000 over the prior 10-month period.
Contract amount | Unrealized appreciation | |||||||||||||||||
Settlement | Receive | Deliver | at 12/31/2013 | |||||||||||||||
date | Counterparty | (000) | (000) | (000) | ||||||||||||||
Sales: | ||||||||||||||||||
Japanese yen | 1/14/2014 | Bank of America, N.A. | $16,667 | ¥1,700,000 | $523 | |||||||||||||
Japanese yen | 2/14/2014 | Bank of New York Mellon | $29,190 | ¥2,900,000 | 1,646 | |||||||||||||
Japanese yen | 2/14/2014 | Citibank | $14,558 | ¥1,450,000 | 786 | |||||||||||||
Japanese yen | 3/4/2014 | Bank of America, N.A. | $95,403 | ¥9,800,000 | 2,315 | |||||||||||||
$5,270 |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Security did not produce income during the last 12 months. |
2 | Acquired in a transaction exempt from registration under section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $35,598,000, which represented .60% of the net assets of the fund. |
Key to abbreviation and symbol
ADR = American Depositary Receipts
¥ = Japanese yen
See Notes to Financial Statements
American Funds Insurance Series | 49 |
Global Small Capitalization Fund
Summary investment portfolio December 31, 2013
Common stocks 90.07% | Shares | Value (000) | Percent of net assets | |||||||||
Consumer discretionary 22.98% | ||||||||||||
Netflix, Inc.1 | 333,500 | $ | 122,785 | 2.92 | % | |||||||
Lions Gate Entertainment Corp. | 3,001,000 | 95,012 | 2.26 | |||||||||
Melco Crown Entertainment Ltd. (ADR)1 | 2,182,000 | 85,578 | 2.04 | |||||||||
Penske Automotive Group, Inc. | 1,205,000 | 56,828 | 1.35 | |||||||||
Tesla Motors, Inc.1 | 300,000 | 45,114 | 1.08 | |||||||||
Paddy Power PLC | 438,000 | 37,359 | .89 | |||||||||
Domino’s Pizza, Inc. | 513,000 | 35,730 | .85 | |||||||||
NagaCorp Ltd. | 28,766,000 | 30,308 | .72 | |||||||||
Melco International Development Ltd. | 8,216,000 | 30,197 | .72 | |||||||||
zooplus AG, non-registered shares1,2 | 357,716 | 25,590 | .61 | |||||||||
Entertainment One Ltd.1 | 5,685,300 | 24,403 | .58 | |||||||||
Hankook Tire Co., Ltd.1 | 418,940 | 24,096 | .57 | |||||||||
Minth Group Ltd. | 11,246,000 | 23,350 | .56 | |||||||||
Wendy’s Co. | 2,460,000 | 21,451 | .51 | |||||||||
Other securities | 307,349 | 7.32 | ||||||||||
965,150 | 22.98 | |||||||||||
Health care 14.25% | ||||||||||||
Synageva BioPharma Corp.1 | 1,346,100 | 87,120 | 2.07 | |||||||||
athenahealth, Inc.1 | 425,798 | 57,270 | 1.36 | |||||||||
BioMarin Pharmaceutical Inc.1 | 769,800 | 54,094 | 1.29 | |||||||||
Illumina, Inc.1 | 451,300 | 49,923 | 1.19 | |||||||||
Paladin Labs Inc.1 | 300,000 | 33,458 | .80 | |||||||||
Algeta ASA1 | 506,000 | 29,933 | .71 | |||||||||
Hikma Pharmaceuticals PLC | 1,491,000 | 29,653 | .71 | |||||||||
Novadaq Technologies Inc.1 | 1,370,700 | 22,603 | .54 | |||||||||
Other securities | 234,594 | 5.58 | ||||||||||
598,648 | 14.25 | |||||||||||
Industrials 11.11% | ||||||||||||
International Container Terminal Services, Inc. | 34,610,000 | 79,541 | 1.89 | |||||||||
Intertek Group PLC | 1,065,000 | 55,518 | 1.32 | |||||||||
Moog Inc., Class A1 | 547,100 | 37,170 | .89 | |||||||||
Polypore International, Inc.1 | 672,000 | 26,141 | .62 | |||||||||
Other securities | 268,361 | 6.39 | ||||||||||
466,731 | 11.11 | |||||||||||
Information technology 9.37% | ||||||||||||
AAC Technologies Holdings Inc. | 11,687,100 | 56,745 | 1.35 | |||||||||
Palo Alto Networks, Inc.1 | 628,200 | 36,103 | .86 | |||||||||
Semiconductor Manufacturing International Corp.1 | 311,975,000 | 24,542 | .59 | |||||||||
OpenTable, Inc.1 | 292,789 | 23,239 | .55 | |||||||||
Other securities | 252,760 | 6.02 | ||||||||||
393,389 | 9.37 |
50 | American Funds Insurance Series |
Global Small Capitalization Fund
Common stocks | Shares | Value (000) | Percent of net assets | |||||||||
Financials 8.75% | ||||||||||||
Ocwen Financial Corp.1 | 1,094,000 | $ | 60,662 | 1.45 | % | |||||||
SVB Financial Group1 | 257,600 | 27,012 | .64 | |||||||||
Old Republic International Corp. | 1,450,000 | 25,041 | .60 | |||||||||
Kemper Corp. | 595,000 | 24,324 | .58 | |||||||||
K. Wah International Holdings Ltd. | 38,204,793 | 23,156 | .55 | |||||||||
Altisource Residential Corp. | 745,127 | 22,436 | .53 | |||||||||
Other securities | 184,695 | 4.40 | ||||||||||
367,326 | 8.75 | |||||||||||
Materials 5.49% | ||||||||||||
OM Group, Inc.1 | 735,000 | 26,761 | .64 | |||||||||
AptarGroup, Inc. | 345,500 | 23,428 | .56 | |||||||||
PolyOne Corp. | 660,168 | 23,337 | .55 | |||||||||
Other securities | 156,910 | 3.74 | ||||||||||
230,436 | 5.49 | |||||||||||
Energy 5.45% | ||||||||||||
Ophir Energy PLC1 | 7,209,562 | 39,135 | .93 | |||||||||
InterOil Corp.1 | 754,235 | 38,836 | .93 | |||||||||
Amerisur Resources PLC1 | 27,117,360 | 26,719 | .64 | |||||||||
Other securities | 124,075 | 2.95 | ||||||||||
228,765 | 5.45 | |||||||||||
Utilities 4.12% | ||||||||||||
ENN Energy Holdings Ltd. | 18,321,700 | 135,505 | 3.22 | |||||||||
Other securities | 37,767 | .90 | ||||||||||
173,272 | 4.12 | |||||||||||
Consumer staples 3.21% | ||||||||||||
Puregold Price Club, Inc. | 37,418,000 | 31,953 | .76 | |||||||||
Other securities | 102,987 | 2.45 | ||||||||||
134,940 | 3.21 | |||||||||||
Telecommunication services 0.44% | ||||||||||||
Other securities | 18,509 | .44 | ||||||||||
Miscellaneous 4.90% | ||||||||||||
Other common stocks in initial period of acquisition | 206,006 | 4.90 | ||||||||||
Total common stocks (cost: $2,614,000,000) | 3,783,172 | 90.07 |
American Funds Insurance Series | 51 |
Global Small Capitalization Fund
Rights & warrants 0.00% | Value (000) | Percent of net assets | ||||||||||
Miscellaneous 0.00% | ||||||||||||
Other rights & warrants in initial period of acquisition | $ | — | .00 | % | ||||||||
Total rights & warrants (cost: $264,000) | — | .00 | ||||||||||
Convertible securities 0.27% | ||||||||||||
Other 0.27% | ||||||||||||
Other securities | 11,116 | .27 | ||||||||||
Total convertible securities (cost: $6,941,000) | 11,116 | .27 | ||||||||||
Bonds, notes & other debt instruments 0.32% | ||||||||||||
U.S. Treasury bonds & notes 0.32% | ||||||||||||
Other securities | 13,351 | .32 | ||||||||||
Total bonds, notes & other debt instruments (cost: $13,341,000) | 13,351 | .32 |
52 | American Funds Insurance Series |
Global Small Capitalization Fund
Short-term securities 9.27% | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
Federal Home Loan Bank 0.06%–0.115% due 1/22–5/16/2014 | $ | 111,200 | $ | 111,185 | 2.65 | % | ||||||
Freddie Mac 0.10%–0.14% due 5/2–9/17/2014 | 63,800 | 63,756 | 1.52 | |||||||||
Sumitomo Mitsui Banking Corp. 0.15%–0.165% due 1/8–1/17/20143 | 34,500 | 34,498 | .82 | |||||||||
Wells Fargo & Co. 0.22% due 6/17/2014 | 27,400 | 27,362 | .65 | |||||||||
BNP Paribas Finance Inc. 0.19% due 3/3/2014 | 27,100 | 27,092 | .64 | |||||||||
Gotham Funding Corp. 0.14% due 1/7/20143 | 17,600 | 17,600 | ||||||||||
Victory Receivables Corp. 0.16% due 1/9/20143 | 5,900 | 5,900 | .56 | |||||||||
Bank of Nova Scotia 0.165% due 4/7/2014 | 22,900 | 22,890 | .54 | |||||||||
Other securities | 79,269 | 1.89 | ||||||||||
Total short-term securities (cost: $389,556,000) | 389,552 | 9.27 | ||||||||||
Total investment securities (cost: $3,024,102,000) | 4,197,191 | 99.93 | ||||||||||
Other assets less liabilities | 3,079 | .07 | ||||||||||
Net assets | $ | 4,200,270 | 100.00 | % |
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.
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
Forward currency contracts
The fund has entered into forward currency contracts to sell currencies as shown in the following table. The average notional amount of open forward currency contracts was $34,623,000 over the prior 12-month period.
Contract amount | Unrealized appreciation (depreciation) | |||||||||||||||||
Settlement | Receive | Deliver | at 12/31/2013 | |||||||||||||||
date | Counterparty | (000) | (000) | (000) | ||||||||||||||
Sales: | ||||||||||||||||||
Australian dollars | 1/8/2014 | Barclays Bank PLC | $3,197 | A$3,500 | $73 | |||||||||||||
Australian dollars | 1/28/2014 | UBS AG | $884 | A$1,000 | (7 | ) | ||||||||||||
Euros | 1/17/2014 | HSBC Bank | $2,447 | €1,800 | (29 | ) | ||||||||||||
Japanese yen | 1/6/2014 | Bank of New York Mellon | $11,106 | ¥1,125,000 | 423 | |||||||||||||
$460 |
American Funds Insurance Series | 53 |
Global Small Capitalization Fund
Investments in affiliates
A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings in that company represent 5% or more of the outstanding voting shares. The value of the fund’s affiliated-company 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 such holdings and related transactions during the year ended December 31, 2013, appear below.
Beginning shares | Additions | Reductions | Ending shares | Dividend income (000) | Value of affiliates at 12/31/2013 (000) | |||||||||||||||||||
zooplus AG, non-registered shares1 | 357,716 | — | — | 357,716 | $ | — | $ | 25,590 | ||||||||||||||||
JVM Co., Ltd.1 | 411,500 | — | — | 411,500 | — | 19,184 | ||||||||||||||||||
Mauna Kea Technologies SA1 | 555,400 | 326,000 | — | 881,400 | — | 12,671 | ||||||||||||||||||
Ultragenyx Pharmaceutical Inc., Series B, convertible preferred1,4,5 | 1,904,544 | — | — | 1,904,544 | — | 8,527 | ||||||||||||||||||
Time Technoplast Ltd. | 11,888,000 | — | — | 11,888,000 | 85 | 7,428 | ||||||||||||||||||
Airesis SA1 | 3,294,151 | — | — | 3,294,151 | — | 5,650 | ||||||||||||||||||
Victoria Oil & Gas PLC1 | — | 278,662,420 | — | 278,662,420 | — | 5,191 | ||||||||||||||||||
Canadian Overseas Petroleum Ltd.1 | 6,720,000 | 9,950,000 | — | 16,670,000 | — | 4,158 | ||||||||||||||||||
Canadian Overseas Petroleum Ltd., warrants, expire 2013 | 4,000,000 | — | 4,000,000 | — | — | — | ||||||||||||||||||
Canadian Overseas Petroleum Ltd. | 8,000,000 | — | 8,000,000 | — | — | — | ||||||||||||||||||
Indochine Mining Ltd.1 | 35,000,000 | 23,574,166 | — | 58,574,166 | — | 2,249 | ||||||||||||||||||
Hummingbird Resources PLC1 | 3,475,000 | — | — | 3,475,000 | — | 1,928 | ||||||||||||||||||
Sylvania Platinum Ltd. (CDI)1 | 15,000,000 | — | — | 15,000,000 | — | 1,552 | ||||||||||||||||||
Wildhorse Energy Ltd. (GBP denominated) 1 | 16,227,016 | — | — | 16,227,016 | — | 391 | ||||||||||||||||||
Wildhorse Energy Ltd. (CDI)1 | 7,225,777 | — | — | 7,225,777 | — | 200 | ||||||||||||||||||
Phorm Corp. Ltd.6 | — | 5,000,000 | 5,000,000 | — | — | — | ||||||||||||||||||
Phorm Corp. Ltd.6 | 5,260,000 | — | 5,260,000 | — | — | — | ||||||||||||||||||
$ | 85 | $ | 94,719 |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Security did not produce income during the last 12 months. |
2 | Represents an affiliated company as defined under the Investment Company Act of 1940. |
3 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $87,814,000, which represented 2.09% of the net assets of the fund. |
4 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous” and “Other securities,” was $21,765,000, which represented .52% of the net assets of the fund. |
5 | Acquired through a private placement transaction exempt from registration under the Securities Act of 1933. This security (acquired on 12/17/2012 at a cost of $5,274,000) may be subject to legal or contractual restrictions on resale. The total value of all such securities, including those in “Other securities,” was $10,748,000, which represented .26% of the net assets of the fund. These securities were acquired from 12/17/2009 to 12/17/2012 at an aggregate cost of $9,095,000. |
6 | Unaffiliated issuer at 12/31/2013. |
Key to abbreviations and symbols
ADR = American Depositary Receipts
CDI = CREST Depository Interest
A$ = Australian dollars
€ = Euros
GBP = British pounds
¥ = Japanese yen
See Notes to Financial Statements
54 | American Funds Insurance Series |
Summary investment portfolio December 31, 2013
Common stocks 97.38% | Shares | Value (000) | Percent of net assets | |||||||||
Consumer discretionary 21.60% | ||||||||||||
Amazon.com, Inc.1 | 2,786,800 | $ | 1,111,348 | 4.72 | % | |||||||
Home Depot, Inc. | 8,040,000 | 662,014 | 2.81 | |||||||||
Comcast Corp., Class A | 6,180,000 | 321,144 | 1.36 | |||||||||
Wynn Macau, Ltd. | 53,010,200 | 240,293 | 1.02 | |||||||||
Las Vegas Sands Corp. | 2,848,000 | 224,622 | .95 | |||||||||
NIKE, Inc., Class B | 2,690,000 | 211,542 | .90 | |||||||||
Tiffany & Co. | 2,135,000 | 198,085 | .84 | |||||||||
Johnson Controls, Inc. | 3,549,100 | 182,069 | .77 | |||||||||
Time Warner Inc. | 2,333,333 | 162,680 | .69 | |||||||||
Twenty-First Century Fox, Inc., Class A | 4,548,400 | 160,013 | .68 | |||||||||
Other securities | 1,615,374 | 6.86 | ||||||||||
5,089,184 | 21.60 | |||||||||||
Financials 16.24% | ||||||||||||
Wells Fargo & Co. | 15,478,396 | 702,719 | 2.98 | |||||||||
American Express Co. | 4,000,000 | 362,920 | 1.54 | |||||||||
Bank of America Corp. | 20,000,000 | 311,400 | 1.32 | |||||||||
Berkshire Hathaway Inc., Class A1 | 1,500 | 266,850 | 1.13 | |||||||||
Citigroup Inc. | 4,444,000 | 231,577 | .99 | |||||||||
JPMorgan Chase & Co. | 3,553,920 | 207,833 | .88 | |||||||||
Capital One Financial Corp. | 2,580,000 | 197,654 | .84 | |||||||||
Goldman Sachs Group, Inc. | 984,400 | 174,495 | .74 | |||||||||
Onex Corp. | 3,110,500 | 167,933 | .71 | |||||||||
Legal & General Group PLC | 45,158,246 | 166,535 | .71 | |||||||||
Other securities | 1,036,026 | 4.40 | ||||||||||
3,825,942 | 16.24 | |||||||||||
Information technology 15.47% | ||||||||||||
Google Inc., Class A1 | 731,500 | 819,799 | 3.48 | |||||||||
ASML Holding NV (New York registered) | 3,371,016 | 315,864 | ||||||||||
ASML Holding NV | 2,190,184 | 205,007 | 2.21 | |||||||||
salesforce.com, inc.1 | 5,655,000 | 312,099 | 1.33 | |||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 67,583,000 | 239,234 | 1.02 | |||||||||
Apple Inc. | 400,000 | 224,444 | .95 | |||||||||
Concur Technologies, Inc.1 | 1,700,000 | 175,406 | .74 | |||||||||
Other securities | 1,351,514 | 5.74 | ||||||||||
3,643,367 | 15.47 | |||||||||||
Health care 13.31% | ||||||||||||
Gilead Sciences, Inc.1 | 6,128,800 | 460,579 | 1.96 | |||||||||
Incyte Corp.1 | 7,672,800 | 388,474 | 1.65 | |||||||||
Regeneron Pharmaceuticals, Inc.1 | 1,130,600 | 311,186 | 1.32 | |||||||||
UnitedHealth Group Inc. | 3,510,000 | 264,303 | 1.12 | |||||||||
Grifols, SA, Class A, non-registered shares | 4,285,000 | 204,935 | ||||||||||
Grifols, SA, Class B, non-registered shares | 1,215,850 | 43,296 | 1.08 | |||||||||
Grifols, SA, Class B (ADR) | 195,000 | 7,043 | ||||||||||
Vertex Pharmaceuticals Inc.1 | 3,403,700 | 252,895 | 1.07 | |||||||||
Edwards Lifesciences Corp.1 | 3,040,400 | 199,937 | .85 | |||||||||
Hologic, Inc.1 | 7,876,400 | 176,038 | .75 | |||||||||
Other securities | 827,597 | 3.51 | ||||||||||
3,136,283 | 13.31 |
American Funds Insurance Series | 55 |
Growth Fund
Common stocks (continued) | Shares | Value (000) | Percent of net assets | |||||||||
Energy 9.75% | ||||||||||||
Suncor Energy Inc. | 7,852,093 | $ | 275,276 | 1.17 | % | |||||||
Core Laboratories NV | 1,185,000 | 226,276 | .96 | |||||||||
Pioneer Natural Resources Co. | 1,130,000 | 207,999 | .88 | |||||||||
Noble Energy, Inc. | 2,960,000 | 201,606 | .86 | |||||||||
Concho Resources Inc.1 | 1,830,000 | 197,640 | .84 | |||||||||
FMC Technologies, Inc.1 | 3,000,000 | 156,630 | .66 | |||||||||
Other securities | 1,032,367 | 4.38 | ||||||||||
2,297,794 | 9.75 | |||||||||||
Industrials 9.45% | ||||||||||||
Boeing Co. | 2,305,000 | 314,609 | 1.33 | |||||||||
Union Pacific Corp. | 1,650,000 | 277,200 | 1.18 | |||||||||
Oshkosh Corp.2 | 4,947,000 | 249,230 | 1.06 | |||||||||
European Aeronautic Defence and Space Co. EADS NV | 2,750,000 | 211,139 | .90 | |||||||||
Rockwell Collins, Inc. | 2,636,900 | 194,920 | .83 | |||||||||
Other securities | 978,535 | 4.15 | ||||||||||
2,225,633 | 9.45 | |||||||||||
Consumer staples 5.45% | ||||||||||||
Costco Wholesale Corp. | 2,485,000 | 295,740 | 1.25 | |||||||||
PepsiCo, Inc. | 3,055,000 | 253,382 | 1.08 | |||||||||
Herbalife Ltd. | 2,000,000 | 157,400 | .67 | |||||||||
Other securities | 578,016 | 2.45 | ||||||||||
1,284,538 | 5.45 | |||||||||||
Other 5.77% | ||||||||||||
Other securities | 1,359,715 | 5.77 | ||||||||||
Miscellaneous 0.34% | ||||||||||||
Other common stocks in initial period of acquisition | 78,796 | .34 | ||||||||||
Total common stocks (cost: $12,679,745,000) | 22,941,252 | 97.38 | ||||||||||
Rights & warrants 0.07% | ||||||||||||
Energy 0.07% | ||||||||||||
Other securities | 16,599 | .07 | ||||||||||
Total rights & warrants (cost: $17,736,000) | 16,599 | .07 |
56 | American Funds Insurance Series |
Growth Fund
Short-term securities 2.75% | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
Fannie Mae 0.055%–0.13% due 1/2–7/23/2014 | $ | 195,900 | $ | 195,850 | .83 | % | ||||||
Freddie Mac 0.11%–0.16% due 1/22–8/19/2014 | 173,710 | 173,621 | .74 | |||||||||
Federal Home Loan Bank 0.055%–0.15% due 1/6–9/8/2014 | 156,900 | 156,868 | .67 | |||||||||
Wells Fargo & Co. 0.13% due 2/19/2014 | 24,100 | 24,094 | .10 | |||||||||
Other securities | 96,297 | .41 | ||||||||||
Total short-term securities (cost: $646,699,000) | 646,730 | 2.75 | ||||||||||
Total investment securities (cost: $13,344,180,000) | 23,604,581 | 100.20 | ||||||||||
Other assets less liabilities | (46,382 | ) | (.20 | ) | ||||||||
Net assets | $ | 23,558,199 | 100.00 | % |
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.
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. Some of these securities (with an aggregate value of $129,438,000, which represented .55% of the net assets of the fund) were acquired in transactions exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933 and may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers.
Investments in affiliates
A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings in that company represent 5% or more of the outstanding voting shares. The value of the fund’s affiliated-company 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 such holdings and related transactions during the year ended December 31, 2013, appear below.
Beginning shares | Additions | Reductions | Ending shares | Dividend income (000) | Value of affiliates at 12/31/2013 (000) | |||||||||||||||||||
Oshkosh Corp. | — | 4,947,000 | — | 4,947,000 | $ | 742 | $ | 249,230 | ||||||||||||||||
KGen Power Corp.1,3,4 | 3,166,128 | — | — | 3,166,128 | — | 1,741 | ||||||||||||||||||
Harman International Industries, Inc.5 | 3,581,000 | — | 3,581,000 | — | 418 | — | ||||||||||||||||||
Incyte Corp.1,5 | 7,910,000 | — | 237,200 | 7,672,800 | — | — | ||||||||||||||||||
Sturm, Ruger & Co., Inc.5 | 1,245,000 | — | 721,700 | 523,300 | 2,470 | — | ||||||||||||||||||
$ | 3,630 | $ | 250,971 |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Security did not produce income during the last 12 months. |
2 | Represents an affiliated company as defined under the Investment Company Act of 1940. |
3 | 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 $104,862,000, which represented .45% of the net assets of the fund. |
4 | Acquired through a private placement transaction exempt from registration under the Securities Act of 1933. This security (acquired on 12/19/2006 at no cost) may be subject to legal or contractual restrictions on resale. The total value of all such securities, including those in “Other securities,” was $89,936,000, which represented .38% of the net assets of the fund. These securities were acquired from 12/19/2006 to 10/17/2013 at an aggregate cost of $118,311,000. |
5 | Unaffiliated issuer at 12/31/2013. |
Key to abbreviation
ADR = American Depositary Receipts
See Notes to Financial Statements
American Funds Insurance Series | 57 |
Summary investment portfolio December 31, 2013
Common stocks 95.84% | Shares | Value (000) | Percent of net assets | |||||||||
Financials 18.05% | ||||||||||||
AIA Group Ltd. | 42,255,700 | $ | 211,979 | 2.28 | % | |||||||
Barclays PLC | 40,314,875 | 181,552 | 1.96 | |||||||||
Axis Bank Ltd. | 6,070,226 | 127,533 | 1.37 | |||||||||
Sberbank of Russia (ADR) | 8,194,000 | 103,081 | ||||||||||
Sberbank of Russia (GDR)1 | 1,604,711 | 20,187 | 1.33 | |||||||||
Prudential PLC | 4,688,265 | 104,031 | 1.12 | |||||||||
BNP Paribas SA | 1,173,501 | 91,455 | .98 | |||||||||
Credit Suisse Group AG | 2,879,624 | 88,030 | .95 | |||||||||
UniCredit SpA | 9,894,336 | 73,231 | .79 | |||||||||
Commerzbank AG, non-registered shares2 | 4,534,872 | 73,054 | .79 | |||||||||
Other securities | 601,829 | 6.48 | ||||||||||
1,675,962 | 18.05 | |||||||||||
Consumer discretionary 15.52% | ||||||||||||
Sands China Ltd. | 21,522,000 | 175,827 | 1.90 | |||||||||
Volkswagen AG, nonvoting preferred | 430,200 | 120,821 | 1.30 | |||||||||
Daimler AG | 1,268,000 | 109,722 | 1.18 | |||||||||
Hyundai Motor Co. | 443,700 | 99,432 | 1.07 | |||||||||
Galaxy Entertainment Group Ltd.2 | 10,673,000 | 95,728 | 1.03 | |||||||||
Tata Motors Ltd. | 14,852,259 | 90,379 | .97 | |||||||||
Melco Crown Entertainment Ltd. (ADR)2 | 2,265,000 | 88,833 | .96 | |||||||||
adidas AG | 580,000 | 73,918 | .80 | |||||||||
Li & Fung Ltd. | 56,396,000 | 72,729 | .78 | |||||||||
Other securities | 513,622 | 5.53 | ||||||||||
1,441,011 | 15.52 | |||||||||||
Health care 13.51% | ||||||||||||
Novartis AG | 4,943,900 | 394,603 | 4.25 | |||||||||
Bayer AG | 2,276,323 | 319,260 | 3.44 | |||||||||
Novo Nordisk A/S, Class B | 896,726 | 164,372 | 1.77 | |||||||||
Fresenius SE & Co. KGaA | 585,602 | 89,906 | .97 | |||||||||
Merck KGaA | 477,931 | 85,638 | .92 | |||||||||
Other securities | 201,296 | 2.16 | ||||||||||
1,255,075 | 13.51 | |||||||||||
Information technology 13.19% | ||||||||||||
Samsung Electronics Co. Ltd. | 269,417 | 350,254 | 3.77 | |||||||||
Baidu, Inc., Class A (ADR)2 | 998,000 | 177,524 | 1.91 | |||||||||
Murata Manufacturing Co., Ltd. | 1,633,900 | 144,911 | 1.56 | |||||||||
NetEase, Inc. (ADR) | 1,308,605 | 102,856 | 1.11 | |||||||||
Tencent Holdings Ltd. | 1,326,500 | 84,609 | .91 | |||||||||
Gemalto NV | 756,453 | 83,263 | .90 | |||||||||
Other securities | 281,640 | 3.03 | ||||||||||
1,225,057 | 13.19 |
58 | American Funds Insurance Series |
International Fund
Common stocks | Shares | Value (000) | Percent of net assets | |||||||||
Industrials 12.67% | ||||||||||||
SMC Corp. | 634,400 | $ | 159,639 | 1.72 | % | |||||||
European Aeronautic Defence and Space Co. EADS NV2 | 1,200,514 | 92,173 | .99 | |||||||||
Legrand SA | 1,591,000 | 87,681 | .94 | |||||||||
Jardine Matheson Holdings Ltd. | 1,360,800 | 71,183 | .77 | |||||||||
Ryanair Holdings PLC (ADR)2 | 1,497,700 | 70,287 | .76 | |||||||||
ASSA ABLOY AB, Class B | 1,328,000 | 70,159 | .75 | |||||||||
Schneider Electric SA | 741,650 | 64,686 | .70 | |||||||||
Bureau Veritas SA | 1,941,096 | 56,732 | .61 | |||||||||
Deutsche Lufthansa AG2 | 2,653,500 | 56,290 | .61 | |||||||||
Other securities | 447,984 | 4.82 | ||||||||||
1,176,814 | 12.67 | |||||||||||
Consumer staples 6.00% | ||||||||||||
Nestlé SA | 2,066,700 | 151,287 | 1.63 | |||||||||
Pernod Ricard SA | 1,079,960 | 123,031 | 1.32 | |||||||||
Charoen Pokphand Foods PCL | 91,125,000 | 88,740 | .96 | |||||||||
Other securities | 194,324 | 2.09 | ||||||||||
557,382 | 6.00 | |||||||||||
Telecommunication services 5.67% | ||||||||||||
SoftBank Corp. | 3,365,100 | 293,979 | 3.17 | |||||||||
MTN Group Ltd. | 6,015,800 | 124,456 | 1.34 | |||||||||
Other securities | 108,075 | 1.16 | ||||||||||
526,510 | 5.67 | |||||||||||
Materials 4.30% | ||||||||||||
Syngenta AG | 154,900 | 61,679 | .66 | |||||||||
Rio Tinto PLC | 1,062,000 | 59,960 | .65 | |||||||||
Linde AG | 268,600 | 56,184 | .60 | |||||||||
Other securities | 221,678 | 2.39 | ||||||||||
399,501 | 4.30 | |||||||||||
Utilities 2.30% | ||||||||||||
Power Grid Corp. of India Ltd. | 71,700,440 | 115,801 | 1.24 | |||||||||
Other securities | 98,155 | 1.06 | ||||||||||
213,956 | 2.30 | |||||||||||
Energy 2.29% | ||||||||||||
Royal Dutch Shell PLC, Class B | 1,730,000 | 65,317 | .70 | |||||||||
BP PLC | 7,709,102 | 62,304 | .67 | |||||||||
Other securities | 85,454 | .92 | ||||||||||
213,075 | 2.29 | |||||||||||
Miscellaneous 2.34% | ||||||||||||
Other common stocks in initial period of acquisition | 217,290 | 2.34 | ||||||||||
Total common stocks (cost: $6,250,422,000) | 8,901,633 | 95.84 |
American Funds Insurance Series | 59 |
International Fund
Bonds, notes & other debt instruments 1.02% | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
U.S. Treasury bonds & notes 1.02% | ||||||||||||
4.75% 2014 | $ | 65,000 | $ | 66,109 | ||||||||
0.25% 2015 | 28,200 | 28,219 | 1.02 | % | ||||||||
Total bonds, notes & other debt instruments (cost: $94,290,000) | 94,328 | 1.02 | ||||||||||
Short-term securities 3.19% | ||||||||||||
Other securities | 295,970 | 3.19 | ||||||||||
Total short-term securities (cost: $295,952,000) | 295,970 | 3.19 | ||||||||||
Total investment securities (cost: $6,640,664,000) | 9,291,931 | 100.05 | ||||||||||
Other assets less liabilities | (4,162 | ) | (.05 | ) | ||||||||
Net assets | $ | 9,287,769 | 100.00 | % |
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.
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio, including securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities which were valued under fair value procedures was $38,437,000, which represented .41% of the net assets of the fund. Some of these securities (with an aggregate value of $6,802,000, an aggregate cost of $32,657,000, and which represented .07% of the net assets of the fund) were acquired from 2/11/1998 to 4/18/2002 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject them to legal or contractual restrictions on resale.
60 | American Funds Insurance Series |
International Fund
Forward currency contracts
The fund has entered into forward currency contracts to sell currencies as shown in the following table. The average notional amount of open forward currency contracts was $325,075,000 over the prior 12-month period.
Contract amount | Unrealized appreciation (depreciation) | |||||||||||||||||
Settlement | Receive | Deliver | at 12/31/2013 | |||||||||||||||
date | Counterparty | (000) | (000) | (000) | ||||||||||||||
Sales: | ||||||||||||||||||
Australian dollars | 1/8/2014 | Barclays Bank PLC | $2,740 | A$3,000 | $63 | |||||||||||||
Australian dollars | 1/28/2014 | UBS AG | $9,724 | A$11,000 | (80 | ) | ||||||||||||
Euros | 1/13/2014 | Bank of America, N.A. | $24,838 | €18,000 | 76 | |||||||||||||
Euros | 1/29/2014 | UBS AG | $7,250 | €5,300 | (41 | ) | ||||||||||||
Japanese yen | 1/10/2014 | Barclays Bank PLC | $61,141 | ¥6,300,000 | 1,315 | |||||||||||||
Japanese yen | 1/14/2014 | HSBC Bank | $6,549 | ¥670,000 | 187 | |||||||||||||
Japanese yen | 1/17/2014 | Barclays Bank PLC | $109,253 | ¥11,155,000 | 3,318 | |||||||||||||
Swiss francs | 1/23/2014 | Citibank | $21,462 | CHF19,050 | 102 | |||||||||||||
$4,940 |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $211,374,000, which represented 2.28% of the net assets of the fund. |
2 | Security did not produce income during the last 12 months. |
Key to abbreviations and symbols
ADR = American Depositary Receipts
GDR = Global Depositary Receipts
A$ = Australian dollars
CHF = Swiss francs
€ = Euros
¥ = Japanese yen
See Notes to Financial Statements
American Funds Insurance Series | 61 |
Summary investment portfolio December 31, 2013
Common stocks 85.54% | Shares | Value (000) | Percent of net assets | |||||||||
Information technology 15.99% | ||||||||||||
Baidu, Inc., Class A (ADR)1 | 508,200 | $ | 90,399 | 3.34 | % | |||||||
Alcatel-Lucent1 | 16,426,961 | 73,627 | 2.72 | |||||||||
Google Inc., Class A1 | 49,900 | 55,924 | 2.07 | |||||||||
Mail.Ru Group Ltd. (GDR) | 817,853 | 36,476 | ||||||||||
Mail.Ru Group Ltd. (GDR)2 | 432,264 | 19,279 | 2.06 | |||||||||
TDK Corp. | 1,057,200 | 50,596 | 1.87 | |||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 5,322,000 | 18,839 | ||||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. (ADR) | 540,000 | 9,418 | 1.05 | |||||||||
Other securities | 77,785 | 2.88 | ||||||||||
432,343 | 15.99 | |||||||||||
Consumer discretionary 14.03% | ||||||||||||
Naspers Ltd., Class N | 644,419 | 67,330 | 2.49 | |||||||||
Ctrip.com International, Ltd. (ADR)1 | 718,500 | 35,652 | 1.32 | |||||||||
Melco International Development Ltd. | 8,705,000 | 31,994 | 1.18 | |||||||||
Arcos Dorados Holdings Inc., Class A | 2,561,352 | 31,043 | 1.15 | |||||||||
Swatch Group Ltd, non-registered shares | 22,450 | 14,836 | ||||||||||
Swatch Group Ltd | 106,600 | 11,998 | .99 | |||||||||
Toyota Motor Corp. | 398,900 | 24,318 | .90 | |||||||||
Domino’s Pizza, Inc. | 338,000 | 23,542 | .87 | |||||||||
Other securities | 138,654 | 5.13 | ||||||||||
379,367 | 14.03 | |||||||||||
Financials 10.35% | ||||||||||||
AEON Financial Service Co., Ltd. | 1,520,000 | 40,703 | 1.51 | |||||||||
Citigroup Inc. | 560,000 | 29,182 | 1.08 | |||||||||
Grupo Financiero Santander México, SAB de CV, Class B (ADR) | 2,130,000 | 29,053 | 1.07 | |||||||||
Banco Espírito Santo, SA1 | 18,671,439 | 26,688 | .99 | |||||||||
Agricultural Bank of China, Class H | 41,743,000 | 20,510 | .76 | |||||||||
Housing Development Finance Corp. Ltd. | 1,353,000 | 17,382 | .64 | |||||||||
Other securities | 116,265 | 4.30 | ||||||||||
279,783 | 10.35 | |||||||||||
Consumer staples 9.14% | ||||||||||||
OJSC Magnit (GDR) | 517,600 | 34,265 | ||||||||||
OJSC Magnit (GDR)2 | 4,500 | 298 | 1.28 | |||||||||
LT Group, Inc. | 97,658,300 | 33,974 | 1.26 | |||||||||
Shoprite Holdings Ltd. | 2,046,603 | 31,996 | 1.18 | |||||||||
Nestlé SA | 293,696 | 21,499 | .79 | |||||||||
Pernod Ricard SA | 168,900 | 19,241 | .71 | |||||||||
Other securities | 105,875 | 3.92 | ||||||||||
247,148 | 9.14 |
62 | American Funds Insurance Series |
New World Fund
Common stocks | Shares | Value (000) | Percent of net assets | |||||||||
Energy 8.86% | ||||||||||||
Pacific Rubiales Energy Corp. | 2,345,100 | $ | 40,489 | 1.50 | % | |||||||
Africa Oil Corp.1 | 1,765,143 | 15,337 | ||||||||||
Africa Oil Corp.1,3 | 1,502,675 | 13,057 | 1.12 | |||||||||
Africa Oil Corp.1,3,4 | 210,300 | 1,786 | ||||||||||
Royal Dutch Shell PLC, Class B | 600,000 | 22,653 | ||||||||||
Royal Dutch Shell PLC, Class B (ADR) | 95,000 | 7,135 | 1.10 | |||||||||
Ophir Energy PLC1 | 5,008,800 | 27,189 | 1.01 | |||||||||
Oil Search Ltd. | 3,738,085 | 27,069 | 1.00 | |||||||||
YPF Sociedad Anónima, Class D (ADR) | 660,000 | 21,754 | .80 | |||||||||
Galp Energia, SGPS, SA, Class B | 1,314,602 | 21,548 | .80 | |||||||||
Other securities | 41,374 | 1.53 | ||||||||||
239,391 | 8.86 | |||||||||||
Health care 7.64% | ||||||||||||
Novartis AG | 429,500 | 34,281 | ||||||||||
Novartis AG (ADR) | 134,000 | 10,771 | 1.67 | |||||||||
Novo Nordisk A/S, Class B | 207,120 | 37,966 | 1.40 | |||||||||
Krka, dd, Novo mesto | 353,049 | 29,141 | 1.08 | |||||||||
Baxter International Inc. | 255,000 | 17,735 | .66 | |||||||||
Other securities | 76,544 | 2.83 | ||||||||||
206,438 | 7.64 | |||||||||||
Industrials 7.22% | ||||||||||||
European Aeronautic Defence and Space Co. EADS NV | 431,929 | 33,163 | 1.23 | |||||||||
Cummins Inc. | 192,500 | 27,137 | 1.00 | |||||||||
ASSA ABLOY AB, Class B | 410,886 | 21,707 | .80 | |||||||||
Experian PLC | 1,079,000 | 19,905 | .74 | |||||||||
Mitsui & Co., Ltd. | 1,311,000 | 18,238 | .68 | |||||||||
Other securities | 74,990 | 2.77 | ||||||||||
195,140 | 7.22 | |||||||||||
Materials 3.29% | ||||||||||||
First Quantum Minerals Ltd. | 1,259,300 | 22,691 | .84 | |||||||||
Other securities | 66,178 | 2.45 | ||||||||||
88,869 | 3.29 | |||||||||||
Telecommunication services 2.99% | ||||||||||||
SoftBank Corp. | 261,700 | 22,862 | .85 | |||||||||
Vodafone Group PLC | 4,645,253 | 18,231 | .67 | |||||||||
Other securities | 39,696 | 1.47 | ||||||||||
80,789 | 2.99 | |||||||||||
Utilities 1.26% | ||||||||||||
Other securities | 33,936 | 1.26 | ||||||||||
Miscellaneous 4.77% | ||||||||||||
Other common stocks in initial period of acquisition | 129,023 | 4.77 | ||||||||||
Total common stocks (cost: $1,802,713,000) | 2,312,227 | 85.54 |
American Funds Insurance Series | 63 |
New World Fund
Bonds, notes & other debt instruments 8.38% | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
U.S. Treasury bonds & notes 0.73% | ||||||||||||
4.00% 2015 | $ | 17,200 | $ | 17,932 | .67 | % | ||||||
Other securities | 1,678 | .06 | ||||||||||
19,610 | .73 | |||||||||||
Other bonds & notes 7.65% | ||||||||||||
Other securities | 206,889 | 7.65 | ||||||||||
Total bonds, notes & other debt instruments (cost: $222,089,000) | 226,499 | 8.38 | ||||||||||
Short-term securities 5.82% | ||||||||||||
Freddie Mac 0.12%–0.14% due 7/16–9/17/2014 | 33,600 | 33,570 | 1.24 | |||||||||
Federal Home Loan Bank 0.06% due 1/13–3/21/2014 | 22,900 | 22,897 | .85 | |||||||||
Mizuho Funding LLC 0.205%–0.225% due 1/15–3/3/20142 | 20,200 | 20,195 | .75 | |||||||||
General Electric Capital Corp. 0.05% due 1/2/2014 | 17,600 | 17,600 | .65 | |||||||||
Nestlé Capital Corp. 0.10% due 1/7/20142 | 7,200 | 7,200 | .26 | |||||||||
Other securities | 55,874 | 2.07 | ||||||||||
Total short-term securities (cost: $157,341,000) | 157,336 | 5.82 | ||||||||||
Total investment securities (cost: $2,182,143,000) | 2,696,062 | 99.74 | ||||||||||
Other assets less liabilities | 7,123 | .26 | ||||||||||
Net assets | $ | 2,703,185 | 100.00 | % |
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.
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
64 | American Funds Insurance Series |
New World Fund
Forward currency contracts
The fund has entered into forward currency contracts to sell currencies as shown in the following table. The average notional amount of open forward currency contracts was $33,644,000 over the prior 12-month period.
Contract amount | Unrealized (depreciation) appreciation | |||||||||||||||||
Settlement date | Counterparty | Receive (000) | Deliver (000) | at 12/31/2013 (000) | ||||||||||||||
Sales: | ||||||||||||||||||
Brazilian reais | 1/9/2014 | Citibank | $727 | BRL1,725 | $(3 | ) | ||||||||||||
Brazilian reais | 1/10/2014 | Citibank | $1,437 | BRL3,380 | 7 | |||||||||||||
Brazilian reais | 1/13/2014 | JPMorgan Chase | $1,560 | BRL3,625 | 29 | |||||||||||||
Colombian pesos | 1/21/2014 | Citibank | $1,707 | COP3,331,210 | (18 | ) | ||||||||||||
Euros | 1/27/2014 | Bank of New York Mellon | $2,063 | €1,500 | — | 5 | ||||||||||||
Japanese yen | 1/9/2014 | UBS AG | $1,906 | ¥193,800 | 65 | |||||||||||||
Japanese yen | 1/16/2014 | HSBC Bank | $19,031 | ¥1,941,948 | 589 | |||||||||||||
Mexican pesos | 1/13/2014 | Bank of America, N.A. | $1,039 | MXN13,800 | (17 | ) | ||||||||||||
Mexican pesos | 1/23/2014 | Barclays Bank PLC | $3,360 | MXN43,650 | 24 | |||||||||||||
Philippine pesos | 1/15/2014 | JPMorgan Chase | $1,087 | PHP47,900 | 7 | |||||||||||||
Turkish lira | 1/9/2014 | HSBC Bank | $2,255 | TRY4,625 | 107 | |||||||||||||
Turkish lira | 1/27/2014 | Barclays Bank PLC | $1,123 | TRY2,320 | 50 | |||||||||||||
$840 |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Security did not produce income during the last 12 months. |
2 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $138,423,000, which represented 5.12% of the net assets of the fund. |
3 | Acquired through a private placement transaction exempt from registration under the Securities Act of 1933. May be subject to legal or contractual restrictions on resale. Further details on these holdings appear below. |
Acquisition date | Cost (000) | Value (000) | Percent of net assets | |||||||||||||
Africa Oil Corp. | 12/3/2012 | $ | 11,705 | $ | 13,057 | .48 | % | |||||||||
Africa Oil Corp. | 10/17/2013 | 1,700 | 1,786 | .07 | ||||||||||||
Total restricted securities | $ | 13,405 | $ | 14,843 | .55 | % |
4 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $1,820,000, which represented .07% of the net assets of the fund. |
5 | Amount less than one thousand. |
Key to abbreviations and symbols
ADR = American Depositary Receipts
GDR = Global Depositary Receipts
BRL = Brazilian reais
COP = Colombian pesos
€ = Euros
¥ = Japanese yen
MXN = Mexican pesos
PHP = Philippine pesos
TRY = Turkish lira
See Notes to Financial Statements
American Funds Insurance Series | 65 |
Blue Chip Income and Growth Fund
Summary investment portfolio December 31, 2013
Common stocks 95.12% | Shares | Value (000) | Percent of net assets | |||||||||
Health care 19.40% | ||||||||||||
Amgen Inc. | 2,586,800 | $ | 295,309 | 4.49 | % | |||||||
Gilead Sciences, Inc.1 | 3,504,100 | 263,333 | 4.01 | |||||||||
AbbVie Inc. | 2,234,800 | 118,020 | 1.79 | |||||||||
Aetna Inc. | 1,635,000 | 112,145 | 1.71 | |||||||||
Zimmer Holdings, Inc. | 750,000 | 69,892 | 1.06 | |||||||||
St. Jude Medical, Inc. | 1,060,000 | 65,667 | 1.00 | |||||||||
Bristol-Myers Squibb Co. | 1,125,000 | 59,794 | .91 | |||||||||
Humana Inc. | 550,000 | 56,771 | .86 | |||||||||
Novartis AG (ADR) | 650,500 | 52,287 | .80 | |||||||||
UnitedHealth Group Inc. | 685,000 | 51,581 | .79 | |||||||||
Other securities | 129,793 | 1.98 | ||||||||||
1,274,592 | 19.40 | |||||||||||
Information technology 15.80% | ||||||||||||
Hewlett-Packard Co. | 7,608,440 | 212,884 | 3.24 | |||||||||
Oracle Corp. | 4,982,381 | 190,626 | 2.90 | |||||||||
Western Union Co. | 7,725,000 | 133,256 | 2.03 | |||||||||
Apple Inc. | 227,500 | 127,653 | 1.94 | |||||||||
Microsoft Corp. | 3,200,000 | 119,776 | 1.82 | |||||||||
Texas Instruments Inc. | 2,130,000 | 93,528 | 1.43 | |||||||||
Google Inc., Class A1 | 57,760 | 64,732 | .99 | |||||||||
International Business Machines Corp. | 330,000 | 61,898 | .94 | |||||||||
Other securities | 33,597 | .51 | ||||||||||
1,037,950 | 15.80 | |||||||||||
Industrials 12.74% | ||||||||||||
General Dynamics Corp. | 1,130,000 | 107,971 | 1.64 | |||||||||
CSX Corp. | 3,200,000 | 92,064 | 1.40 | |||||||||
United Parcel Service, Inc., Class B | 850,000 | 89,318 | 1.36 | |||||||||
Union Pacific Corp. | 375,000 | 63,000 | .96 | |||||||||
United Technologies Corp. | 500,000 | 56,900 | .87 | |||||||||
Norfolk Southern Corp. | 592,800 | 55,030 | .84 | |||||||||
Illinois Tool Works Inc. | 650,000 | 54,652 | .83 | |||||||||
Rockwell Automation | 450,000 | 53,172 | .81 | |||||||||
Other securities | 264,530 | 4.03 | ||||||||||
836,637 | 12.74 | |||||||||||
Consumer staples 10.83% | ||||||||||||
Philip Morris International Inc. | 2,062,400 | 179,697 | 2.73 | |||||||||
Altria Group, Inc. | 4,155,000 | 159,511 | 2.43 | |||||||||
CVS/Caremark Corp. | 1,650,000 | 118,090 | 1.80 | |||||||||
Mondelez International, Inc. | 1,580,000 | 55,774 | .85 | |||||||||
Kimberly-Clark Corp. | 500,000 | 52,230 | .79 | |||||||||
Other securities | 146,255 | 2.23 | ||||||||||
711,557 | 10.83 |
66 | American Funds Insurance Series |
Blue Chip Income and Growth Fund
Common stocks | Shares | Value (000) | Percent of net assets | |||||||||
Telecommunication services 9.97% | ||||||||||||
Verizon Communications Inc. | 4,625,000 | $ | 227,272 | 3.46 | % | |||||||
Vodafone Group PLC (ADR) | 4,945,000 | 194,388 | 2.96 | |||||||||
CenturyLink, Inc. | 5,107,000 | 162,658 | 2.48 | |||||||||
AT&T Inc. | 2,000,000 | 70,320 | 1.07 | |||||||||
654,638 | 9.97 | |||||||||||
Consumer discretionary 6.75% | ||||||||||||
Johnson Controls, Inc. | 3,345,000 | 171,598 | 2.61 | |||||||||
General Motors Co.1 | 2,000,000 | 81,740 | 1.24 | |||||||||
YUM! Brands, Inc. | 742,300 | 56,125 | .86 | |||||||||
Other securities | 133,902 | 2.04 | ||||||||||
443,365 | 6.75 | |||||||||||
Energy 5.60% | ||||||||||||
Royal Dutch Shell PLC, Class B (ADR) | 1,150,000 | 86,376 | 1.31 | |||||||||
Exxon Mobil Corp. | 756,300 | 76,538 | 1.16 | |||||||||
Chevron Corp. | 570,000 | 71,199 | 1.08 | |||||||||
ConocoPhillips | 1,000,000 | 70,650 | 1.08 | |||||||||
Other securities | 63,630 | .97 | ||||||||||
368,393 | 5.60 | |||||||||||
Utilities 5.49% | ||||||||||||
Exelon Corp. | 4,494,680 | 123,109 | 1.87 | |||||||||
FirstEnergy Corp. | 2,979,200 | 98,254 | 1.50 | |||||||||
PG&E Corp. | 2,413,000 | 97,196 | 1.48 | |||||||||
Other securities | 42,099 | .64 | ||||||||||
360,658 | 5.49 | |||||||||||
Financials 4.85% | ||||||||||||
Capital One Financial Corp. | 1,450,000 | 111,084 | 1.69 | |||||||||
Prudential Financial, Inc. | 789,000 | 72,762 | 1.11 | |||||||||
JPMorgan Chase & Co. | 1,190,000 | 69,591 | 1.06 | |||||||||
Other securities | 65,132 | .99 | ||||||||||
318,569 | 4.85 | |||||||||||
Materials 2.25% | ||||||||||||
Dow Chemical Co. | 1,700,000 | 75,480 | 1.15 | |||||||||
Other securities | 72,249 | 1.10 | ||||||||||
147,729 | 2.25 | |||||||||||
Miscellaneous 1.44% | ||||||||||||
Other common stocks in initial period of acquisition | 94,118 | 1.44 | ||||||||||
Total common stocks (cost: $4,365,827,000) | 6,248,206 | 95.12 |
American Funds Insurance Series | 67 |
Blue Chip Income and Growth Fund
Short-term securities 5.33% | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
Federal Home Loan Bank 0.05%–0.16% due 1/24–6/17/2014 | $ | 94,950 | $ | 94,938 | 1.44 | % | ||||||
IBM Corp. 0.05% due 1/27/20142 | 36,000 | 35,999 | .55 | |||||||||
Jupiter Securitization Co., LLC 0.32% due 2/7/20142 | 8,200 | 8,198 | .12 | |||||||||
Other securities | 211,222 | 3.22 | ||||||||||
Total short-term securities (cost: $350,341,000) | 350,357 | 5.33 | ||||||||||
Total investment securities (cost: $4,716,168,000) | 6,598,563 | 100.45 | ||||||||||
Other assets less liabilities | (29,467 | ) | (.45 | ) | ||||||||
Net assets | $ | 6,569,096 | 100.00 | % |
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.
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
1 | Security did not produce income during the last 12 months. |
2 | Acquired in a transaction exempt from registration under 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 $101,488,000, which represented 1.54% of the net assets of the fund. |
Key to abbreviation
ADR = American Depositary Receipts
See Notes to Financial Statements
68 | American Funds Insurance Series |
Summary investment portfolio December 31, 2013
Common stocks 94.95% | Shares | Value (000) | Percent of net assets | |||||||||
Financials 21.63% | ||||||||||||
AXA SA | 1,949,200 | $ | 54,193 | 2.67 | % | |||||||
CME Group Inc., Class A | 546,847 | 42,906 | 2.11 | |||||||||
Banco Santander, SA1 | 3,175,000 | 28,417 | 1.40 | |||||||||
JPMorgan Chase & Co. | 408,200 | 23,872 | 1.18 | |||||||||
Hospitality Properties Trust | 815,000 | 22,030 | 1.09 | |||||||||
McGraw Hill Financial, Inc. | 280,500 | 21,935 | 1.08 | |||||||||
Wells Fargo & Co. | 445,000 | 20,203 | 1.00 | |||||||||
Shinsei Bank, Ltd. | 8,060,000 | 19,670 | .97 | |||||||||
Oaktree Capital Group, LLC | 285,000 | 16,769 | .83 | |||||||||
KeyCorp | 1,205,000 | 16,171 | .80 | |||||||||
BNP Paribas SA | 194,031 | 15,122 | .74 | |||||||||
Marsh & McLennan Companies, Inc. | 300,000 | 14,508 | .71 | |||||||||
Sumitomo Mitsui Financial Group, Inc. | 280,000 | 14,411 | .71 | |||||||||
Grupo Financiero Santander México, SAB de CV, Class B (ADR) | 1,025,000 | 13,981 | .69 | |||||||||
Other securities | 114,620 | 5.65 | ||||||||||
438,808 | 21.63 | |||||||||||
Consumer discretionary 15.24% | ||||||||||||
Home Depot, Inc. | 525,000 | 43,228 | 2.13 | |||||||||
Honda Motor Co., Ltd. | 710,000 | 29,193 | 1.44 | |||||||||
Amazon.com, Inc.1 | 57,400 | 22,891 | 1.13 | |||||||||
D.R. Horton, Inc. | 1,000,000 | 22,320 | 1.10 | |||||||||
HUGO BOSS AG | 150,000 | 21,358 | 1.05 | |||||||||
Comcast Corp., Class A | 384,000 | 19,955 | .99 | |||||||||
Carnival Corp., units | 475,000 | 19,081 | .94 | |||||||||
Twenty-First Century Fox, Inc., Class A | 485,000 | 17,062 | .84 | |||||||||
Other securities | 114,042 | 5.62 | ||||||||||
309,130 | 15.24 | |||||||||||
Industrials 11.36% | ||||||||||||
United Continental Holdings, Inc.1 | 900,000 | 34,047 | 1.68 | |||||||||
Lockheed Martin Corp. | 200,000 | 29,732 | 1.46 | |||||||||
Meggitt PLC | 3,156,892 | 27,576 | 1.36 | |||||||||
European Aeronautic Defence and Space Co. EADS NV | 274,000 | 21,037 | 1.04 | |||||||||
Geberit AG | 60,000 | 18,194 | .90 | |||||||||
Other securities | 99,834 | 4.92 | ||||||||||
230,420 | 11.36 | |||||||||||
Information technology 10.46% | ||||||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 13,710,800 | 48,534 | 2.39 | |||||||||
STMicroelectronics NV | 4,370,000 | 35,109 | 1.73 | |||||||||
Google Inc., Class A1 | 28,000 | 31,380 | 1.55 | |||||||||
Microsoft Corp. | 485,000 | 18,154 | .89 | |||||||||
Other securities | 79,105 | 3.90 | ||||||||||
212,282 | 10.46 | |||||||||||
Health care 8.18% | ||||||||||||
Merck & Co., Inc. | 1,489,944 | 74,572 | 3.68 | |||||||||
Novartis AG | 303,000 | 24,184 | 1.19 | |||||||||
Vertex Pharmaceuticals Inc.1 | 238,877 | 17,749 | .88 | |||||||||
Other securities | 49,394 | 2.43 | ||||||||||
165,899 | 8.18 |
American Funds Insurance Series | 69 |
Global Growth and Income Fund
Common stocks (continued) | Shares | Value (000) | Percent of net assets | |||||||||
Telecommunication services 6.20% | ||||||||||||
Vodafone Group PLC | 14,845,000 | $ | 58,261 | 2.87 | % | |||||||
MTN Group Ltd. | 1,100,000 | 22,757 | 1.12 | |||||||||
TalkTalk Telecom Group PLC | 3,920,000 | 19,863 | .98 | |||||||||
AT&T Inc. | 525,000 | 18,459 | .91 | |||||||||
Other securities | 6,492 | .32 | ||||||||||
125,832 | 6.20 | |||||||||||
Consumer staples 6.00% | ||||||||||||
Imperial Tobacco Group PLC | 450,000 | 17,422 | .86 | |||||||||
British American Tobacco PLC | 318,500 | 17,078 | .84 | |||||||||
Other securities | 87,284 | 4.30 | ||||||||||
121,784 | 6.00 | |||||||||||
Materials 5.52% | ||||||||||||
Dow Chemical Co. | 445,000 | 19,758 | .97 | |||||||||
Cliffs Natural Resources Inc. | 681,200 | 17,854 | .88 | |||||||||
OJSC ALROSA2 | 13,328,596 | 14,183 | ||||||||||
OJSC ALROSA | 2,626,404 | 2,795 | .84 | |||||||||
Nucor Corp. | 270,000 | 14,413 | .71 | |||||||||
Other securities | 42,979 | 2.12 | ||||||||||
111,982 | 5.52 | |||||||||||
Utilities 5.27% | ||||||||||||
National Grid PLC | 3,035,225 | 39,606 | 1.95 | |||||||||
EDP - Energias de Portugal, SA | 4,220,000 | 15,501 | .77 | |||||||||
Other securities | 51,803 | 2.55 | ||||||||||
106,910 | 5.27 | |||||||||||
Energy 4.24% | ||||||||||||
Kinder Morgan, Inc. | 576,000 | 20,736 | 1.02 | |||||||||
Other securities | 65,239 | 3.22 | ||||||||||
85,975 | 4.24 | |||||||||||
Miscellaneous 0.85% | ||||||||||||
Other common stocks in initial period of acquisition | 17,334 | .85 | ||||||||||
Total common stocks (cost: $1,475,844,000) | 1,926,356 | 94.95 | ||||||||||
Convertible securities 0.58% | ||||||||||||
Other 0.58% | ||||||||||||
Other securities | 11,707 | .58 | ||||||||||
Total convertible securities (cost: $6,887,000) | 11,707 | .58 | ||||||||||
Bonds, notes & other debt instruments 0.49% | ||||||||||||
Other bonds & notes 0.49% | ||||||||||||
Other securities | 9,989 | .49 | ||||||||||
Total bonds, notes & other debt instruments (cost: $10,540,000) | 9,989 | .49 |
70 | American Funds Insurance Series |
Global Growth and Income Fund
Short-term securities 3.30% | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
Federal Home Loan Bank 0.04%–0.055% due 1/3–2/24/2014 | $ | 27,000 | $ | 26,998 | 1.33 | % | ||||||
Gotham Funding Corp. 0.14% due 1/13/20142 | 15,000 | 14,999 | ||||||||||
Bank of Tokyo-Mitsubishi UFJ, Ltd. 0.14% due 1/7/2014 | 11,100 | 11,100 | 1.29 | |||||||||
Other securities | 13,900 | .68 | ||||||||||
Total short-term securities (cost: $66,997,000) | 66,997 | 3.30 | ||||||||||
Total investment securities (cost: $1,560,268,000) | 2,015,049 | 99.32 | ||||||||||
Other assets less liabilities | 13,673 | .68 | ||||||||||
Net assets | $ | 2,028,722 | 100.00 | % |
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.
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio, including securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities which were valued under fair value procedures was $1,167,000, which represented .06% of the net assets of the fund. These securities (with an aggregate value of $1,167,000, an aggregate cost of $2,006,000, and which represented .06% of the net assets of the fund) were acquired on 12/17/2009 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject them to legal or contractual restrictions on resale.
Forward currency contracts
The fund has entered into a forward currency contract to sell currency as shown in the following table. The average notional amount of open forward currency contracts was $3,604,000 over the prior three-month period.
Contract amount | Unrealized appreciation | ||||||||||||||||
Settlement date | Counterparty | Receive (000) | Deliver (000) | at 12/31/2013 (000) | |||||||||||||
Sales: | |||||||||||||||||
Australian dollars | 1/13/2014 | Citibank | $3,484 | A$3,840 | $58 |
Investments in affiliates
A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings in that company represent 5% or more of the outstanding voting shares. The value of the fund’s affiliated-company holdings is included in “Other securities” under the respective industry sector in the summary investment portfolio. Further details on such holdings and related transactions during the year ended December 31, 2013, appear below.
Beginning shares | Additions | Reductions | Ending shares | Dividend income (000) | Value of affiliate at 12/31/2013 (000) | |||||||||||||||||||
Rickmers Maritime | 27,420,000 | 27,420,000 | — | 54,840,000 | $ | 982 | $ | 12,385 |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Security did not produce income during the last 12 months. |
2 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $29,854,000, which represented 1.47% of the net assets of the fund. |
Key to abbreviation and symbol
ADR = American Depositary Receipts
A$ = Australian dollars
See Notes to Financial Statements
American Funds Insurance Series | 71 |
Summary investment portfolio December 31, 2013
Common stocks 93.06% | Shares | Value (000) | Percent of net assets | |||||||||
Health care 17.09% | ||||||||||||
Gilead Sciences, Inc. 1 | 12,349,500 | $ | 928,065 | 3.71 | % | |||||||
Amgen Inc. | 4,623,700 | 527,842 | 2.11 | |||||||||
Illumina, Inc.1 | 2,250,000 | 248,895 | .99 | |||||||||
Biogen Idec Inc.1 | 761,000 | 212,890 | .85 | |||||||||
Alexion Pharmaceuticals, Inc.1 | 1,590,000 | 211,565 | .84 | |||||||||
Merck & Co., Inc. | 3,981,080 | 199,253 | .80 | |||||||||
Edwards Lifesciences Corp.1 | 2,793,900 | 183,727 | .73 | |||||||||
UnitedHealth Group Inc. | 2,350,000 | 176,955 | .71 | |||||||||
Other securities | 1,588,912 | 6.35 | ||||||||||
4,278,104 | 17.09 | |||||||||||
Information technology 15.07% | ||||||||||||
Google Inc., Class A1 | 582,700 | 653,038 | 2.61 | |||||||||
Oracle Corp. | 13,993,000 | 535,372 | 2.14 | |||||||||
Microsoft Corp. | 13,756,700 | 514,913 | 2.06 | |||||||||
Texas Instruments Inc. | 11,583,559 | 508,634 | 2.03 | |||||||||
Yahoo! Inc.1 | 5,538,000 | 223,957 | .89 | |||||||||
Apple Inc. | 314,700 | 176,581 | .71 | |||||||||
Accenture PLC, Class A | 2,025,000 | 166,495 | .66 | |||||||||
Intuit Inc. | 2,035,000 | 155,311 | .62 | |||||||||
Other securities | 838,473 | 3.35 | ||||||||||
3,772,774 | 15.07 | |||||||||||
Consumer discretionary 13.86% | ||||||||||||
Amazon.com, Inc.1 | 1,355,000 | 540,360 | 2.16 | |||||||||
Home Depot, Inc. | 4,225,000 | 347,886 | 1.39 | |||||||||
Time Warner Inc. | 4,646,667 | 323,966 | 1.29 | |||||||||
General Motors Co.1 | 7,694,808 | 314,487 | 1.26 | |||||||||
Comcast Corp., Class A | 4,203,000 | 218,409 | 1.07 | |||||||||
Comcast Corp., Class A, special nonvoting shares | 1,000,000 | 49,880 | ||||||||||
Twenty-First Century Fox, Inc., Class A | 6,987,700 | 245,827 | .98 | |||||||||
Mattel, Inc. | 4,495,000 | 213,872 | .86 | |||||||||
Melco Crown Entertainment Ltd. (ADR)1 | 4,000,000 | 156,880 | .63 | |||||||||
Other securities | 1,056,845 | 4.22 | ||||||||||
3,468,412 | 13.86 | |||||||||||
Industrials 10.62% | ||||||||||||
CSX Corp. | 11,500,000 | 330,855 | 1.32 | |||||||||
General Dynamics Corp. | 2,807,000 | 268,209 | 1.07 | |||||||||
Precision Castparts Corp. | 889,400 | 239,515 | .96 | |||||||||
Nielsen Holdings NV | 4,441,839 | 203,836 | .82 | |||||||||
3M Co. | 1,039,800 | 145,832 | .58 | |||||||||
Rockwell Automation | 1,147,600 | 135,600 | .54 | |||||||||
Other securities | 1,333,906 | 5.33 | ||||||||||
2,657,753 | 10.62 |
72 | American Funds Insurance Series |
Growth-Income Fund
Common stocks | Shares | Value (000) | Percent of net assets | |||||||||
Energy 8.91% | ||||||||||||
Schlumberger Ltd. | 3,562,000 | $ | 320,972 | 1.28 | % | |||||||
EOG Resources, Inc. | 1,703,000 | 285,832 | 1.14 | |||||||||
Chevron Corp. | 1,976,200 | 246,847 | .99 | |||||||||
ConocoPhillips | 2,723,360 | 192,405 | .77 | |||||||||
Baker Hughes Inc. | 3,263,000 | 180,313 | .72 | |||||||||
Royal Dutch Shell PLC, Class A (ADR) | 2,525,000 | 179,957 | .72 | |||||||||
FMC Technologies, Inc.1 | 2,874,300 | 150,067 | .60 | |||||||||
Plains GP Holdings, LP, Class A1 | 5,500,000 | 147,235 | .59 | |||||||||
Other securities | 525,649 | 2.10 | ||||||||||
2,229,277 | 8.91 | |||||||||||
Materials 7.42% | ||||||||||||
Dow Chemical Co. | 9,918,700 | 440,390 | 1.76 | |||||||||
Celanese Corp., Series A | 5,773,900 | 319,354 | 1.27 | |||||||||
Other securities | 1,098,522 | 4.39 | ||||||||||
1,858,266 | 7.42 | |||||||||||
Financials 6.83% | ||||||||||||
Prudential Financial, Inc. | 2,100,000 | 193,662 | .77 | |||||||||
State Street Corp. | 2,280,000 | 167,329 | .67 | |||||||||
Other securities | 1,349,580 | 5.39 | ||||||||||
1,710,571 | 6.83 | |||||||||||
Consumer staples 6.38% | ||||||||||||
Philip Morris International Inc. | 6,294,500 | 548,440 | 2.19 | |||||||||
Coca-Cola Co. | 5,135,400 | 212,143 | .85 | |||||||||
Altria Group, Inc. | 3,815,000 | 146,458 | .58 | |||||||||
Other securities | 690,384 | 2.76 | ||||||||||
1,597,425 | 6.38 | |||||||||||
Telecommunication services 2.40% | ||||||||||||
Verizon Communications Inc. | 5,720,900 | 281,125 | 1.12 | |||||||||
Crown Castle International Corp.1 | 2,048,600 | 150,429 | .60 | |||||||||
Other securities | 169,959 | .68 | ||||||||||
601,513 | 2.40 | |||||||||||
Utilities 0.63% | ||||||||||||
Other securities | 157,689 | .63 | ||||||||||
Miscellaneous 3.85% | ||||||||||||
Other common stocks in initial period of acquisition | 964,035 | 3.85 | ||||||||||
Total common stocks (cost: $14,303,621,000) | 23,295,819 | 93.06 | ||||||||||
Rights & warrants 0.02% | ||||||||||||
Consumer discretionary 0.02% | ||||||||||||
General Motors Co., Series A, warrants, expire 20161 | 83,378 | 2,598 | ||||||||||
General Motors Co., Series B, warrants, expire 20191 | 83,378 | 1,929 | .02 | |||||||||
Total rights & warrants (cost: $3,908,000) | 4,527 | .02 |
American Funds Insurance Series | 73 |
Growth-Income Fund
Convertible securities 0.47% | Value (000) | Percent of net assets | ||||||||||
Other 0.34% | ||||||||||||
Other securities | $ | 84,779 | .34 | % | ||||||||
Miscellaneous 0.13% | ||||||||||||
Other convertible securities in initial period of acquisition | 32,594 | .13 | ||||||||||
Total convertible securities (cost: $73,225,000) | 117,373 | .47 | ||||||||||
Bonds, notes & other debt instruments 0.27% | ||||||||||||
Other bonds & notes 0.27% | ||||||||||||
Other securities | 67,195 | .27 | ||||||||||
Total bonds, notes & other debt instruments (cost: $61,621,000) | 67,195 | .27 | ||||||||||
Short-term securities 6.30% | Principal amount (000) | |||||||||||
Freddie Mac 0.07%–0.16% due 1/14–10/6/2014 | $ | 673,300 | 672,997 | 2.69 | ||||||||
Fannie Mae 0.10%–0.14% due 1/13–9/22/2014 | 331,500 | 331,346 | 1.32 | |||||||||
Federal Home Loan Bank 0.06%–0.135% due 1/22–8/26/2014 | 144,900 | 144,837 | .58 | |||||||||
Coca-Cola Co. 0.07%–0.18% due 1/6–3/11/20142 | 52,400 | 52,397 | .21 | |||||||||
Google Inc. 0.10% due 2/20/20142 | 40,000 | 39,996 | .16 | |||||||||
Chevron Corp. 0.08% due 2/19/20142 | 27,300 | 27,295 | .11 | |||||||||
Other securities | 308,871 | 1.23 | ||||||||||
Total short-term securities (cost: $1,577,662,000) | 1,577,739 | 6.30 | ||||||||||
Total investment securities (cost: $16,020,037,000) | 25,062,653 | 100.12 | ||||||||||
Other assets less liabilities | (29,299 | ) | (.12 | ) | ||||||||
Net assets | $ | 25,033,354 | 100.00 | % |
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.
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. One of these securities (with a value of $9,997,000, a cost of $6,000,000, and which represented .04% of the net assets of the fund) was acquired on 6/28/2012 through a private placement transaction exempt from registration under the Securities Act of 1933, which may subject it to legal or contractual restrictions on resale. “Other securities” also includes a portion of a security that was pledged as collateral. The total value of pledged collateral was $290,000, which represented less than .01% of the net assets of the fund.
74 | American Funds Insurance Series |
Growth-Income Fund
Forward currency contracts
The fund has entered into forward currency contracts to sell currencies as shown in the following table. The average notional amount of open forward currency contracts was $64,042,000 over the prior six-month period.
Unrealized appreciation | ||||||||||||||||||
Contract amount | (depreciation) | |||||||||||||||||
Settlement date | Counterparty | Receive (000) | Deliver (000) | at 12/31/2013 (000) | ||||||||||||||
Sales: | ||||||||||||||||||
Japanese yen | 1/10/2014 | Barclays Bank PLC | $36,721 | ¥3,783,725 | $789 | |||||||||||||
Swiss francs | 1/14/2014 | Bank of America, N.A. | $15,743 | CHF14,200 | (177 | ) | ||||||||||||
$612 |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Security did not produce income during the last 12 months. |
2 | Acquired in a transaction exempt from registration under section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $176,588,000, which represented .71% of the net assets of the fund. |
Key to abbreviations and symbol
ADR = American Depositary Receipts
CHF = Swiss francs
¥ = Japanese yen
See Notes to Financial Statements
American Funds Insurance Series | 75 |
International Growth and Income Fund
Summary investment portfolio December 31, 2013
Common stocks 91.70% | Shares | Value (000) | Percent of net assets | |||||||||
Financials 21.28% | ||||||||||||
Prudential PLC | 912,574 | $ | 20,250 | 2.12 | % | |||||||
Aviva PLC | 2,718,500 | 20,244 | 2.12 | |||||||||
BNP Paribas SA | 233,700 | 18,213 | 1.91 | |||||||||
Banco Bilbao Vizcaya Argentaria, SA | 618,161 | 7,609 | ||||||||||
Banco Bilbao Vizcaya Argentaria, SA (ADR) | 312,171 | 3,868 | 1.20 | |||||||||
HSBC Holdings PLC (Hong Kong) | 543,368 | 5,897 | ||||||||||
HSBC Holdings PLC (United Kingdom) | 440,000 | 4,826 | 1.13 | |||||||||
Cheung Kong (Holdings) Ltd. | 610,000 | 9,629 | 1.01 | |||||||||
Siam Commercial Bank PCL | 2,125,000 | 9,280 | .97 | |||||||||
Sberbank of Russia (ADR) | 580,500 | 7,303 | ||||||||||
Sberbank of Russia (GDR)1 | 116,832 | 1,470 | .92 | |||||||||
bank muscat (SAOG) | 5,262,000 | 8,693 | .91 | |||||||||
Assicurazioni Generali SpA | 340,000 | 7,998 | .84 | |||||||||
Japan Real Estate Investment Corp. | 1,432 | 7,669 | .80 | |||||||||
Barclays PLC | 1,667,500 | 7,509 | .79 | |||||||||
Credit Suisse Group AG | 240,219 | 7,344 | .77 | |||||||||
Banco Santander, SA2 | 771,081 | 6,901 | .72 | |||||||||
Other securities | 48,389 | 5.07 | ||||||||||
203,092 | 21.28 | |||||||||||
Consumer discretionary 17.30% | ||||||||||||
H & M Hennes & Mauritz AB, Class B | 381,700 | 17,578 | 1.84 | |||||||||
Volkswagen AG, nonvoting preferred | 46,480 | 13,054 | 1.37 | |||||||||
Hyundai Motor Co. | 42,760 | 9,582 | 1.00 | |||||||||
Whitbread PLC | 149,122 | 9,263 | .97 | |||||||||
ProSiebenSat.1 Media AG | 175,000 | 8,667 | .91 | |||||||||
Daily Mail and General Trust PLC, Class A, nonvoting | 543,600 | 8,646 | .90 | |||||||||
Crown Resorts Ltd. | 564,000 | 8,486 | .89 | |||||||||
Genting Singapore PLC | 7,083,000 | 8,391 | .88 | |||||||||
William Hill PLC | 1,214,888 | 8,085 | .85 | |||||||||
Other securities | 73,381 | 7.69 | ||||||||||
165,133 | 17.30 | |||||||||||
Health care 9.97% | ||||||||||||
Novartis AG | 361,870 | 28,883 | 3.03 | |||||||||
Orion Oyj, Class B | 429,600 | 12,068 | 1.26 | |||||||||
Novo Nordisk A/S, Class B | 64,700 | 11,860 | 1.24 | |||||||||
Glenmark Pharmaceuticals Ltd. | 1,180,000 | 10,184 | 1.07 | |||||||||
Teva Pharmaceutical Industries Ltd. (ADR) | 253,000 | 10,140 | 1.06 | |||||||||
Other securities | 22,013 | 2.31 | ||||||||||
95,148 | 9.97 | |||||||||||
Consumer staples 9.33% | ||||||||||||
Philip Morris International Inc. | 268,240 | 23,372 | 2.45 | |||||||||
British American Tobacco PLC | 301,600 | 16,172 | 1.69 | |||||||||
Pernod Ricard SA | 113,550 | 12,936 | 1.36 | |||||||||
Nestlé SA | 124,000 | 9,077 | .95 | |||||||||
CALBEE, Inc. | 284,400 | 6,900 | .72 | |||||||||
Other securities | 20,614 | 2.16 | ||||||||||
89,071 | 9.33 |
76 | American Funds Insurance Series |
International Growth and Income Fund
Common stocks | Shares | Value (000) | Percent of net assets | |||||||||
Industrials 9.30% | ||||||||||||
VINCI SA | 346,733 | $ | 22,762 | 2.39 | % | |||||||
Rolls-Royce Holdings PLC2 | 525,000 | 11,084 | 1.16 | |||||||||
ASSA ABLOY AB, Class B | 206,800 | 10,925 | 1.14 | |||||||||
Other securities | 43,990 | 4.61 | ||||||||||
88,761 | 9.30 | |||||||||||
Utilities 8.05% | ||||||||||||
EDP - Energias de Portugal, SA | 8,182,137 | 30,054 | 3.15 | |||||||||
National Grid PLC | 1,424,696 | 18,591 | 1.95 | |||||||||
Power Assets Holdings Ltd. | 1,013,000 | 8,054 | .84 | |||||||||
Other securities | 20,079 | 2.11 | ||||||||||
76,778 | 8.05 | |||||||||||
Telecommunication services 6.28% | ||||||||||||
Vodafone Group PLC | 6,836,600 | 26,831 | 2.81 | |||||||||
SoftBank Corp. | 131,500 | 11,488 | 1.21 | |||||||||
TeliaSonera AB | 883,000 | 7,352 | .77 | |||||||||
Other securities | 14,235 | 1.49 | ||||||||||
59,906 | 6.28 | |||||||||||
Energy 3.53% | ||||||||||||
BP PLC | 2,446,651 | 19,773 | 2.07 | |||||||||
BG Group PLC | 645,200 | 13,863 | 1.46 | |||||||||
33,636 | 3.53 | |||||||||||
Information technology 3.51% | ||||||||||||
Youku Tudou Inc., Class A (ADR)2 | 520,300 | 15,765 | 1.65 | |||||||||
Delta Electronics, Inc. | 1,380,760 | 7,876 | .82 | |||||||||
Other securities | 9,889 | 1.04 | ||||||||||
33,530 | 3.51 | |||||||||||
Materials 2.82% | ||||||||||||
Other securities | 26,951 | 2.82 | ||||||||||
Miscellaneous 0.33% | ||||||||||||
Other common stocks in initial period of acquisition | 3,119 | .33 | ||||||||||
Total common stocks (cost: $741,296,000) | 875,125 | 91.70 | ||||||||||
Convertible securities 0.32% | ||||||||||||
Financials 0.32% | ||||||||||||
Other securities | 3,092 | .32 | ||||||||||
Total convertible securities (cost: $2,905,000) | 3,092 | .32 | ||||||||||
Bonds, notes & other debt instruments 0.77% | ||||||||||||
Other bonds & notes 0.77% | ||||||||||||
Other securities | 7,343 | .77 | ||||||||||
Total bonds, notes & other debt instruments (cost: $7,452,000) | 7,343 | .77 |
American Funds Insurance Series | 77 |
International Growth and Income Fund
Short-term securities 7.22% | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
Freddie Mac 0.10%–0.12% due 6/13–7/17/2014 | $ | 20,400 | $ | 20,389 | 2.14 | % | ||||||
General Electric Capital Corp. 0.05% due 1/2/2014 | 16,100 | 16,100 | 1.69 | |||||||||
Federal Home Loan Bank 0.06%–0.10% due 2/25–4/2/2014 | 13,200 | 13,197 | 1.38 | |||||||||
U.S. Treasury Bill 0.085% due 4/24/2014 | 10,100 | 10,098 | 1.06 | |||||||||
Other securities | 9,100 | .95 | ||||||||||
Total short-term securities (cost: $68,882,000) | 68,884 | 7.22 | ||||||||||
Total investment securities (cost: $820,535,000) | 954,444 | 100.01 | ||||||||||
Other assets less liabilities | (137 | ) | (.01 | ) | ||||||||
Net assets | $ | 954,307 | 100.00 | % |
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.
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $13,583,000, which represented 1.42% of the net assets of the fund. |
2 | Security did not produce income during the last 12 months. |
Key to abbreviations
ADR = American Depositary Receipts
GDR = Global Depositary Receipts
See Notes to Financial Statements
78 | American Funds Insurance Series |
Summary investment portfolio December 31, 2013
Common stocks 69.44% | Shares | Value (000) | Percent of net assets | |||||||||
Consumer discretionary 12.38% | ||||||||||||
Comcast Corp., Class A | 7,325,000 | $ | 380,644 | 2.33 | % | |||||||
Home Depot, Inc. | 3,125,000 | 257,312 | 1.58 | |||||||||
Amazon.com, Inc.1 | 550,000 | 219,334 | 1.34 | |||||||||
VF Corp. | 2,800,000 | 174,552 | 1.07 | |||||||||
General Motors Co.1 | 3,500,000 | 143,045 | .88 | |||||||||
Naspers Ltd., Class N | 1,265,000 | 132,169 | .81 | |||||||||
Twenty-First Century Fox, Inc., Class A | 3,600,000 | 126,648 | .77 | |||||||||
DIRECTV1 | 1,700,000 | 117,453 | .72 | |||||||||
Gentex Corp. | 3,200,000 | 105,568 | .65 | |||||||||
Other securities | 363,261 | 2.23 | ||||||||||
2,019,986 | 12.38 | |||||||||||
Financials 11.56% | ||||||||||||
ACE Ltd. | 2,520,000 | 260,896 | 1.60 | |||||||||
Goldman Sachs Group, Inc. | 1,350,000 | 239,301 | 1.47 | |||||||||
American Express Co. | 2,600,000 | 235,898 | 1.44 | |||||||||
JPMorgan Chase & Co. | 2,750,000 | 160,820 | .99 | |||||||||
Citigroup Inc. | 2,750,000 | 143,303 | .88 | |||||||||
American Tower Corp. | 1,575,000 | 125,716 | .77 | |||||||||
Bank of America Corp. | 8,000,000 | 124,560 | .76 | |||||||||
Other securities | 596,223 | 3.65 | ||||||||||
1,886,717 | 11.56 | |||||||||||
Industrials 8.43% | ||||||||||||
Lockheed Martin Corp. | 2,115,000 | 314,416 | 1.93 | |||||||||
Boeing Co. | 2,270,000 | 309,832 | 1.90 | |||||||||
General Electric Co. | 5,300,000 | 148,559 | .91 | |||||||||
Cummins Inc. | 1,030,000 | 145,199 | .89 | |||||||||
Parker-Hannifin Corp. | 900,000 | 115,776 | .71 | |||||||||
Other securities | 341,460 | 2.09 | ||||||||||
1,375,242 | 8.43 | |||||||||||
Health care 8.14% | ||||||||||||
Merck & Co., Inc. | 6,350,000 | 317,817 | 1.95 | |||||||||
Gilead Sciences, Inc.1 | 2,850,000 | 214,177 | 1.31 | |||||||||
Bristol-Myers Squibb Co. | 3,850,000 | 204,628 | 1.25 | |||||||||
Johnson & Johnson | 2,175,000 | 199,208 | 1.22 | |||||||||
Pfizer Inc. | 4,685,000 | 143,502 | .88 | |||||||||
UnitedHealth Group Inc. | 1,500,000 | 112,950 | .69 | |||||||||
Incyte Corp.1 | 2,185,000 | 110,627 | .68 | |||||||||
Other securities | 25,805 | .16 | ||||||||||
1,328,714 | 8.14 | |||||||||||
Energy 8.00% | ||||||||||||
Kinder Morgan, Inc. | 8,090,000 | 291,240 | 1.79 | |||||||||
Chevron Corp. | 1,625,000 | 202,979 | 1.24 | |||||||||
Noble Energy, Inc. | 1,600,000 | 108,976 | .67 | |||||||||
Other securities | 701,833 | 4.30 | ||||||||||
1,305,028 | 8.00 |
American Funds Insurance Series | 79 |
Asset Allocation Fund
Common stocks (continued) | Shares | Value (000) | Percent of net assets | |||||||||
Information technology 7.72% | ||||||||||||
Microsoft Corp. | 11,545,000 | $ | 432,129 | 2.65 | % | |||||||
ASML Holding NV (New York registered) | 2,155,000 | 201,923 | 1.24 | |||||||||
Texas Instruments Inc. | 3,000,000 | 131,730 | .81 | |||||||||
VeriSign, Inc.1 | 1,700,000 | 101,626 | .62 | |||||||||
Other securities | 392,690 | 2.40 | ||||||||||
1,260,098 | 7.72 | |||||||||||
Materials 4.93% | ||||||||||||
FMC Corp. | 2,500,000 | 188,650 | 1.16 | |||||||||
Dow Chemical Co. | 3,000,000 | 133,200 | .82 | |||||||||
Monsanto Co. | 900,000 | 104,895 | .64 | |||||||||
Sealed Air Corp. | 3,000,000 | 102,150 | .62 | |||||||||
Other securities | 275,143 | 1.69 | ||||||||||
804,038 | 4.93 | |||||||||||
Consumer staples 4.21% | ||||||||||||
Unilever NV (New York registered) | 3,445,000 | 138,592 | .85 | |||||||||
Wal-Mart Stores, Inc. | 1,725,000 | 135,740 | .83 | |||||||||
Kimberly-Clark Corp. | 1,120,000 | 116,995 | .72 | |||||||||
Coca-Cola Co. | 2,000,000 | 82,620 | .50 | |||||||||
Other securities | 213,095 | 1.31 | ||||||||||
687,042 | 4.21 | |||||||||||
Other 2.10% | ||||||||||||
Other securities | 341,053 | 2.10 | ||||||||||
Miscellaneous 1.97% | ||||||||||||
Other common stocks in initial period of acquisition | 322,655 | 1.97 | ||||||||||
Total common stocks (cost: $7,150,472,000) | 11,330,573 | 69.44 | ||||||||||
Rights & warrants 0.00% | ||||||||||||
Consumer discretionary 0.00% | ||||||||||||
Other securities | 822 | .00 | ||||||||||
Total rights & warrants (cost: $432,000) | 822 | .00 | ||||||||||
Convertible securities 0.11% | ||||||||||||
Industrials 0.05% | ||||||||||||
Other securities | 7,540 | .05 | ||||||||||
Miscellaneous 0.06% | ||||||||||||
Other convertible securities in initial period of acquisition | 10,503 | .06 | ||||||||||
Total convertible securities (cost: $15,028,000) | 18,043 | .11 |
80 | American Funds Insurance Series |
Asset Allocation Fund
Bonds, notes & other debt instruments 20.67% | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
U.S. Treasury bonds & notes 7.61% | ||||||||||||
U.S. Treasury 6.68% | ||||||||||||
0.25% 2014 | $ | 200,000 | $ | 200,040 | ||||||||
0.25% 2014 | 157,238 | 157,370 | ||||||||||
0.75% 2014 | 145,238 | 145,669 | 6.68 | % | ||||||||
2.625% 2014 | 105,000 | 106,528 | ||||||||||
1.50%–7.25% 2014–2043 | 475,384 | 479,692 | ||||||||||
1,089,299 | 6.68 | |||||||||||
U.S. Treasury inflation-protected securities2 0.93% | ||||||||||||
0.125%–1.875% 2015–2043 | 154,597 | 151,419 | .93 | |||||||||
Total U.S. Treasury bonds & notes | 1,240,718 | 7.61 | ||||||||||
Corporate bonds & notes 7.34% | ||||||||||||
Health care 1.06% | ||||||||||||
Gilead Sciences, Inc. 3.05% 2016 | 4,300 | 4,543 | .03 | |||||||||
Other securities | 168,556 | 1.03 | ||||||||||
173,099 | 1.06 | |||||||||||
Industrials 1.04% | ||||||||||||
General Electric Capital Corp. 3.10% 2023 | 3,750 | 3,559 | ||||||||||
General Electric Co. 2.70%–4.125% 2022–2042 | 9,035 | 8,429 | .08 | |||||||||
Other securities | 157,169 | .96 | ||||||||||
169,157 | 1.04 | |||||||||||
Financials 1.03% | ||||||||||||
JPMorgan Chase & Co. 3.20%–3.45% 2016–2023 | 9,500 | 9,394 | .06 | |||||||||
Goldman Sachs Group, Inc. 2.90%–3.625% 2018–2023 | 5,000 | 4,893 | .03 | |||||||||
Other securities | 154,537 | .94 | ||||||||||
168,824 | 1.03 | |||||||||||
Consumer discretionary 0.82% | ||||||||||||
Comcast Corp. 5.65%–6.95% 2035–2037 | 6,875 | 8,165 | .05 | |||||||||
Other securities | 126,282 | .77 | ||||||||||
134,447 | .82 | |||||||||||
Energy 0.78% | ||||||||||||
Chevron Corp. 3.191% 2023 | 3,500 | 3,361 | .02 | |||||||||
Kinder Morgan Energy Partners, LP 5.00% 20213 | 2,825 | 2,793 | .02 | |||||||||
Other securities | 121,664 | .74 | ||||||||||
127,818 | .78 | |||||||||||
Other corporate bonds & notes 2.61% | ||||||||||||
Other securities | 424,705 | 2.61 | ||||||||||
Total corporate bonds & notes | 1,198,050 | 7.34 | ||||||||||
Mortgage-backed obligations4 4.73% | ||||||||||||
Fannie Mae: | ||||||||||||
4.50% 2044 | 146,000 | 154,743 | 3.39 | |||||||||
0%–7.50% 2021–20475 | 392,656 | 399,232 | ||||||||||
Freddie Mac 4.00%–6.611% 2023–20435 | 52,590 | 55,392 | .34 | |||||||||
Other securities | 162,968 | 1.00 | ||||||||||
772,335 | 4.73 |
American Funds Insurance Series | 81 |
Asset Allocation Fund
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
Federal agency bonds & notes 0.94% | ||||||||||||
Freddie Mac, 0.75%–3.111% 2016–20234 | $ | 117,881 | $ | 115,719 | .71 | % | ||||||
Fannie Mae 2.184%–6.25% 2022–20295 | 32,992 | 34,203 | .21 | |||||||||
Other securities | 3,522 | .02 | ||||||||||
153,444 | .94 | |||||||||||
Other bonds & notes 0.05% | ||||||||||||
Other securities | 8,074 | .05 | ||||||||||
Total bonds & notes & other debt instruments (cost: $3,360,730,000) | 3,372,621 | 20.67 | ||||||||||
Short-term securities 11.14% | ||||||||||||
Freddie Mac 0.07%–0.16% due 1/14–9/17/2014 | 595,600 | 595,438 | 3.65 | |||||||||
Federal Home Loan Bank 0.05%–0.15% due 1/16–10/22/2014 | 432,000 | 431,873 | 2.65 | |||||||||
Fannie Mae 0.08%–0.15% due 1/2–9/2/2014 | 311,400 | 311,220 | 1.91 | |||||||||
Coca-Cola Co. 0.11%–0.13% due 1/24–3/20/20143 | 98,600 | 98,587 | .60 | |||||||||
Jupiter Securitization Co., LLC 0.11% due 1/23/20143 | 15,700 | 15,699 | .10 | |||||||||
General Electric Capital Corp. 0.05% due 1/2/2014 | 10,200 | 10,200 | .06 | |||||||||
Other securities | 354,634 | 2.17 | ||||||||||
Total short-term securities (cost: $1,817,558,000) | 1,817,651 | 11.14 | ||||||||||
Total investment securities (cost: $12,344,220,000) | 16,539,710 | 101.36 | ||||||||||
Other assets less liabilities | (222,017 | ) | (1.36 | ) | ||||||||
Net assets | $ | 16,317,693 | 100.00 | % |
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.
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. Some of these securities (with an aggregate value of $30,219,000, an aggregate cost of $55,742,000, and which represented .19% of the net assets of the fund) were acquired from 9/14/2009 to 3/15/2013 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 loan participations and assignments, which may be subject to legal or contractual restrictions on resale. The total value of all such loans was $60,412,000, which represented ..37% of the net assets of the fund.
“Miscellaneous” and “Other securities” include securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $61,799,000, which represented .38% of the net assets of the 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 | Security did not produce income during the last 12 months. |
2 | Index-linked bond whose principal amount moves with a government price index. |
3 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $735,953,000, which represented 4.51% of the net assets of the fund. |
4 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
5 | Coupon rate may change periodically. |
See Notes to Financial Statements
82 | American Funds Insurance Series |
Summary investment portfolio December 31, 2013
Common stocks 66.56% | Shares | Value (000) | Percent of net assets | |||||||||
Financials 11.08% | ||||||||||||
ORIX Corp. | 157,000 | $ | 2,754 | 1.43 | % | |||||||
HSBC Holdings PLC | 221,300 | 2,427 | 1.26 | |||||||||
Link Real Estate Investment Trust | 354,509 | 1,719 | .90 | |||||||||
Bankia, SA1 | 965,000 | 1,638 | .85 | |||||||||
Sumitomo Mitsui Financial Group, Inc. | 31,500 | 1,621 | .85 | |||||||||
BNP Paribas SA | 19,230 | 1,499 | .78 | |||||||||
JPMorgan Chase & Co. | 20,700 | 1,211 | .63 | |||||||||
Prudential PLC | 53,500 | 1,187 | .62 | |||||||||
AXA SA | 40,300 | 1,120 | .58 | |||||||||
Banco Bilbao Vizcaya Argentaria, SA | 90,000 | 1,108 | .58 | |||||||||
Other securities | 4,999 | 2.60 | ||||||||||
21,283 | 11.08 | |||||||||||
Industrials 9.78% | ||||||||||||
Cummins Inc. | 19,200 | 2,707 | 1.41 | |||||||||
General Electric Co. | 93,700 | 2,626 | 1.37 | |||||||||
Boeing Co. | 17,000 | 2,320 | 1.21 | |||||||||
BAE Systems PLC | 257,000 | 1,851 | .96 | |||||||||
KONE Oyj, Class B | 38,600 | 1,742 | .91 | |||||||||
Schneider Electric SA | 19,000 | 1,657 | .86 | |||||||||
Randstad Holding NV | 22,450 | 1,456 | .76 | |||||||||
ASSA ABLOY AB, Class B | 22,000 | 1,162 | .60 | |||||||||
Other securities | 3,275 | 1.70 | ||||||||||
18,796 | 9.78 | |||||||||||
Information technology 8.83% | ||||||||||||
ASML Holding NV | 47,969 | 4,490 | 2.34 | |||||||||
Microsoft Corp. | 100,000 | 3,743 | 1.95 | |||||||||
OMRON Corp. | 55,000 | 2,426 | 1.26 | |||||||||
Google Inc., Class A1 | 1,100 | 1,233 | .64 | |||||||||
Other securities | 5,068 | 2.64 | ||||||||||
16,960 | 8.83 | |||||||||||
Consumer staples 8.62% | ||||||||||||
Nestlé SA | 39,240 | 2,872 | 1.50 | |||||||||
Pernod Ricard SA | 20,770 | 2,366 | 1.23 | |||||||||
Lorillard, Inc. | 33,900 | 1,718 | .89 | |||||||||
Altria Group, Inc. | 31,000 | 1,190 | .62 | |||||||||
Philip Morris International Inc. | 12,700 | 1,107 | .58 | |||||||||
Other securities | 7,306 | 3.80 | ||||||||||
16,559 | 8.62 | |||||||||||
Health care 7.61% | ||||||||||||
Merck & Co., Inc. | 72,120 | 3,610 | 1.88 | |||||||||
Bristol-Myers Squibb Co. | 63,610 | 3,381 | 1.76 | |||||||||
Humana Inc. | 12,780 | 1,319 | .69 | |||||||||
Novartis AG | 15,160 | 1,210 | .63 | |||||||||
Other securities | 5,088 | 2.65 | ||||||||||
14,608 | 7.61 |
American Funds Insurance Series | 83 |
Global Balanced Fund
Common stocks (continued) | Shares | Value (000) | Percent of net assets | |||||||||
Consumer discretionary 7.54% | ||||||||||||
Amazon.com, Inc.1 | 9,030 | $ | 3,601 | 1.88 | % | |||||||
Home Depot, Inc. | 21,030 | 1,732 | .90 | |||||||||
SES SA, Class A (FDR) | 50,700 | 1,641 | .85 | |||||||||
Daimler AG | 15,380 | 1,331 | .69 | |||||||||
Comcast Corp., Class A | 21,930 | 1,140 | .59 | |||||||||
Other securities | 5,053 | 2.63 | ||||||||||
14,498 | 7.54 | |||||||||||
Energy 4.68% | ||||||||||||
Royal Dutch Shell PLC, Class B | 58,470 | 2,208 | 1.15 | |||||||||
Chevron Corp. | 16,930 | 2,115 | 1.10 | |||||||||
Kinder Morgan, Inc. | 46,300 | 1,667 | .87 | |||||||||
Other securities | 2,995 | 1.56 | ||||||||||
8,985 | 4.68 | |||||||||||
Materials 4.14% | ||||||||||||
Dow Chemical Co. | 37,000 | 1,643 | .86 | |||||||||
OJSC ALROSA2 | 1,253,971 | 1,334 | ||||||||||
OJSC ALROSA | 101,138 | 108 | .75 | |||||||||
MeadWestvaco Corp. | 34,000 | 1,256 | .65 | |||||||||
Other securities | 3,621 | 1.88 | ||||||||||
7,962 | 4.14 | |||||||||||
Telecommunication services 3.14% | ||||||||||||
Other securities | 6,037 | 3.14 | ||||||||||
Utilities 1.14% | ||||||||||||
EDP - Energias de Portugal, SA | 485,000 | 1,781 | .92 | |||||||||
Other securities | 417 | .22 | ||||||||||
2,198 | 1.14 | |||||||||||
Total common stocks (cost: $102,574,000) | 127,886 | 66.56 | ||||||||||
Preferred securities 0.08% | ||||||||||||
Financials 0.08% | ||||||||||||
Other securities | 151 | .08 | ||||||||||
Total preferred securities (cost: $150,000) | 151 | .08 | ||||||||||
Convertible securities 0.52% | ||||||||||||
Consumer staples 0.52% | ||||||||||||
Other securities | 1,015 | .52 | ||||||||||
Total convertible securities (cost: $1,198,000) | 1,015 | .52 |
84 | American Funds Insurance Series |
Global Balanced Fund
Bonds, notes & other debt instruments 29.53% | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
Bonds & notes of governments & government agencies outside the U.S. 14.42% | ||||||||||||
Japanese Government: | ||||||||||||
Series 296, 1.50% 2018 | ¥ | 135,000 | $ | 1,358 | 1.54 | % | ||||||
1.00%–2.30% 2015–2042 | 160,500 | 1,601 | ||||||||||
United Mexican States Government 3.50%–10.00% 2015–20403 | MXN | 34,569 | 2,930 | 1.52 | ||||||||
Polish Government: | ||||||||||||
Series 1020, 5.25% 2020 | PLN | 3,250 | 1,155 | |||||||||
5.25%–5.75% 2014–2021 | 3,370 | 1,206 | 1.40 | |||||||||
5.00%–5.125% 2021–2022 | $ | 300 | 323 | |||||||||
United Kingdom 1.75%–5.00% 2015–2046 | £ | 1,375 | 2,324 | 1.21 | ||||||||
Spanish Government: | ||||||||||||
3.80% 2017 | € | 350 | 507 | |||||||||
5.40% 2023 | 1,185 | 1,792 | 1.20 | |||||||||
Other securities | 14,509 | 7.55 | ||||||||||
27,705 | 14.42 | |||||||||||
Corporate bonds & notes 8.13% | ||||||||||||
Financials 2.50% | ||||||||||||
HSBC Holdings PLC 4.00% 2022 | $ | 100 | 103 | .05 | ||||||||
Other securities | 4,700 | 2.45 | ||||||||||
4,803 | 2.50 | |||||||||||
Energy 1.22% | ||||||||||||
Chevron Corp. 2.355% 2022 | 150 | 136 | .07 | |||||||||
Other securities | 2,211 | 1.15 | ||||||||||
2,347 | 1.22 | |||||||||||
Industrials 0.83% | ||||||||||||
General Electric Capital Corp. 0.873%–7.125% 2014–20494 | 880 | 886 | .46 | |||||||||
Boeing Company 0.95% 2018 | 45 | 43 | .02 | |||||||||
Other securities | 658 | .35 | ||||||||||
1,587 | .83 | |||||||||||
Consumer staples 0.80% | ||||||||||||
Pernod Ricard SA 4.45% 20222 | 150 | 152 | .08 | |||||||||
Other securities | 1,383 | .72 | ||||||||||
1,535 | .80 | |||||||||||
Other corporate bonds & notes 2.78% | ||||||||||||
Other securities | 5,341 | 2.78 | ||||||||||
Total corporate bonds & notes | 15,613 | 8.13 |
American Funds Insurance Series | 85 |
Global Balanced Fund
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
U. S. Treasury bonds & notes 4.88% | ||||||||||||
U.S. Treasury 4.34% | ||||||||||||
4.50% 2016 | $ | 1,250 | $ | 1,358 | ||||||||
1.00% 2017 | 1,320 | 1,323 | 4.34 | % | ||||||||
0.25%–8.875% 2015–2043 | 5,723 | 5,666 | ||||||||||
8,347 | 4.34 | |||||||||||
U.S. Treasury inflation-protected securities3 0.54% | ||||||||||||
0.125%–2.375% 2015–2042 | 1,040 | 1,033 | .54 | |||||||||
Total U.S. Treasury bonds & notes | 9,380 | 4.88 | ||||||||||
Mortgage-backed obligations5 2.10% | ||||||||||||
Fannie Mae 2.00%–5.00% 2027–2043 | 2,957 | 3,001 | 1.56 | |||||||||
Other securities | 1,035 | .54 | ||||||||||
4,036 | 2.10 | |||||||||||
Total bonds, notes & other debt instruments (cost: $57,705,000) | 56,734 | 29.53 | ||||||||||
Short-term securities 3.02% | ||||||||||||
Federal Home Loan Bank 0.06% due 3/21/2014 | 2,800 | 2,799 | 1.46 | |||||||||
Abbott Laboratories 0.11% due 2/20/20142 | 2,000 | 2,000 | 1.04 | |||||||||
General Electric Capital Corp. 0.05% due 1/2/2014 | 1,000 | 1,000 | .52 | |||||||||
Total short-term securities (cost: $5,799,000) | 5,799 | 3.02 | ||||||||||
Total investment securities (cost: $167,426,000) | 191,585 | 99.71 | ||||||||||
Other assets less liabilities | 552 | .29 | ||||||||||
Net assets | $ | 192,137 | 100.00 | % |
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, including securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities which were valued under fair value procedures was $547,000, which represented .28% of the net assets of the fund.
86 | American Funds Insurance Series |
Global Balanced Fund
Forward currency contracts
The fund has entered into forward currency contracts to purchase or sell currencies as shown in the following table. The average notional amount of open forward currency contracts was $4,874,000 over the prior 12-month period.
Contract amount | Unrealized appreciation (depreciation) | ||||||||||||
Settlement date | Counterparty | Receive (000) | Deliver (000) | at 12/31/2013 (000) | |||||||||
Purchases: | |||||||||||||
British pounds | 1/9/2014 | Citibank | £300 | $491 | $ | 6 | |||||||
British pounds | 1/10/2014 | Bank of America, N.A. | £300 | $491 | 5 | ||||||||
Euros | 1/6/2014 | Bank of America, N.A. | €229 | $310 | 5 | ||||||||
Euros | 1/10/2014 | Bank of America, N.A. | €349 | $480 | 1 | ||||||||
Euros | 1/10/2014 | Bank of America, N.A. | €362 | $491 | 8 | ||||||||
Euros | 1/14/2014 | Bank of New York Mellon | €88 | $121 | — | 6 | |||||||
Euros | 1/24/2014 | HSBC Bank | €399 | $545 | 3 | ||||||||
Euros | 1/27/2014 | HSBC Bank | €900 | $1,238 | — | 6 | |||||||
Euros | 1/30/2014 | Credit Suisse AG | €111 | $152 | 1 | ||||||||
Japanese yen | 1/17/2014 | UBS AG | ¥43,570 | $428 | (15 | ) | |||||||
$ | 14 | ||||||||||||
Sales: | |||||||||||||
Australian dollars | 1/16/2014 | Bank of America, N.A. | $226 | A$250 | $ | 3 | |||||||
Australian dollars | 1/24/2014 | Bank of America, N.A. | $532 | A$600 | (3 | ) | |||||||
Brazilian reais | 2/3/2014 | Citibank | $378 | BRL900 | — | 6 | |||||||
Euros | 1/23/2014 | Citibank | ¥99,088 | €700 | (22 | ) | |||||||
Euros | 1/24/2014 | Bank of America, N.A. | ¥74,503 | €525 | (15 | ) | |||||||
Mexican pesos | 1/13/2014 | HSBC Bank | $219 | MXN2,875 | (1 | ) | |||||||
South African rand | 1/24/2014 | HSBC Bank | $231 | ZAR2,400 | 3 | ||||||||
South African rand | 1/27/2014 | Citibank | $84 | ZAR875 | 1 | ||||||||
Swedish kronor | 1/13/2014 | Citibank | NKr4,509 | SKr4,800 | (3 | ) | |||||||
$ | (37 | ) | |||||||||||
Forward currency contracts - net | $ | (23 | ) |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Security did not produce income during the last 12 months. |
2 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $7,005,000, which represented 3.65% of the net assets of the fund. |
3 | Index-linked bond whose principal amount moves with a government price index. |
4 | Coupon rate may change periodically. |
5 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
6 | Amount less than one thousand. |
Key to abbreviations and symbols
FDR = Fiduciary Depositary Receipts
A$ = Australian dollars
BRL = Brazilian reais
€ = Euros
£ = British pounds
¥ = Japanese yen
MXN = Mexican pesos
NKr = Norwegian kroner
PLN = Polish zloty
SKr = Swedish kronor
ZAR = South African rand
See Notes to Financial Statements
American Funds Insurance Series | 87 |
Summary investment portfolio December 31, 2013
Bonds, notes & other debt instruments 90.69% | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
U.S. Treasury bonds & notes 30.77% | ||||||||||||
U.S. Treasury 26.57% | ||||||||||||
0.375% 2015 | $ | 39,000 | $ | 39,060 | ||||||||
0.625% 2016 | 150,000 | 149,724 | ||||||||||
1.00% 2016 | 117,165 | 118,181 | ||||||||||
1.50% 2016 | 76,570 | 78,320 | ||||||||||
1.50% 2016 | 56,775 | 58,088 | ||||||||||
4.625% 2016 | 30,000 | 33,305 | ||||||||||
7.50% 2016 | 35,000 | 41,727 | ||||||||||
1.00% 2017 | 250,110 | 250,685 | ||||||||||
8.75% 2017 | 75,000 | 94,297 | ||||||||||
1.375% 2018 | 80,000 | 79,372 | ||||||||||
1.25% 2019 | 47,500 | 45,993 | 26.57 | % | ||||||||
8.75% 2020 | 40,000 | 56,106 | ||||||||||
1.625% 2022 | 257,451 | 232,048 | ||||||||||
1.625% 2022 | 84,915 | 77,034 | ||||||||||
1.75% 2023 | 75,766 | 68,173 | ||||||||||
2.00% 2023 | 105,034 | 97,271 | ||||||||||
2.50% 2023 | 255,200 | 244,632 | ||||||||||
2.75% 2023 | 126,250 | 123,301 | ||||||||||
3.625% 2043 | 158,100 | 148,725 | ||||||||||
0.25%–7.625% 2014–20431 | 400,955 | 427,312 | ||||||||||
2,463,354 | 26.57 | |||||||||||
U.S. Treasury inflation-protected securities2 4.20% | ||||||||||||
0.50% 2015 | 40,610 | 41,529 | ||||||||||
1.625% 2015 | 51,271 | 52,845 | ||||||||||
1.875% 2015 | 41,313 | 43,572 | ||||||||||
2.375% 2017 | 34,746 | 38,254 | 4.20 | |||||||||
0.375% 2023 | 57,107 | 55,040 | ||||||||||
0.625% 2043 | 141,159 | 108,483 | ||||||||||
0.125%–2.00% 2018–2042 | 51,972 | 50,101 | ||||||||||
389,824 | 4.20 | |||||||||||
Total U.S. Treasury bonds & notes | 2,853,178 | 30.77 | ||||||||||
Corporate bonds & notes 30.75% | ||||||||||||
Consumer staples 3.26% | ||||||||||||
Coca-Cola Co. 1.50%–3.20% 2015–2023 | 22,645 | 22,648 | .24 | |||||||||
Other securities | 280,048 | 3.02 | ||||||||||
302,696 | 3.26 | |||||||||||
Industrials 2.68% | ||||||||||||
Volvo Treasury AB 5.95% 20153 | 34,000 | 35,991 | .39 | |||||||||
Other securities | 212,045 | 2.29 | ||||||||||
248,036 | 2.68 | |||||||||||
Other corporate bonds & notes 24.81% | ||||||||||||
Other securities | 2,300,103 | 24.81 | ||||||||||
Total corporate bonds & notes | 2,850,835 | 30.75 |
88 | American Funds Insurance Series |
Bond Fund
Bonds, notes & other debt instruments | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
Mortgage-backed obligations4 20.99% | ||||||||||||
Fannie Mae: | ||||||||||||
3.00% 2027 | $ | 99,580 | $ | 101,919 | ||||||||
2.50% 2029 | 82,574 | 81,748 | ||||||||||
4.00% 2042 | 67,730 | 69,893 | ||||||||||
3.00% 2043 | 53,683 | 51,124 | ||||||||||
3.00% 2043 | 43,207 | 41,145 | 12.54 | % | ||||||||
3.00% 2044 | 186,000 | 176,627 | ||||||||||
4.50% 2044 | 287,229 | 304,429 | ||||||||||
1.765%–9.533% 2023–20435 | 328,110 | 335,563 | ||||||||||
Freddie Mac: | ||||||||||||
4.00% 2044 | 39,500 | 40,577 | ||||||||||
0%–5.50% 2033–20435 | 158,601 | 162,141 | 2.18 | |||||||||
Government National Mortgage Assn.: | ||||||||||||
4.00% 2043 | 74,644 | 77,811 | ||||||||||
4.50% 2043 | 50,148 | 53,705 | 1.46 | |||||||||
4.50% 2040 | 3,455 | 3,712 | ||||||||||
Other securities | 445,728 | 4.81 | ||||||||||
1,946,122 | 20.99 | |||||||||||
Bonds & notes of governments & government agencies outside the U.S. 4.50% | ||||||||||||
Spanish Government: | ||||||||||||
5.85% 2022 | € | 26,750 | 41,810 | |||||||||
5.40% 2023 | 69,075 | 104,472 | 1.58 | |||||||||
Polish Government 6.375% 2019 | $ | 35,540 | 41,626 | .45 | ||||||||
Other securities | 229,360 | 2.47 | ||||||||||
417,268 | 4.50 | |||||||||||
Federal agency bonds & notes 2.58% | ||||||||||||
Freddie Mac: | ||||||||||||
1.25% 2019 | 48,500 | 45,959 | ||||||||||
0.50%–5.00% 2014–20235 | 82,268 | 81,858 | 1.38 | |||||||||
Federal Home Loan Bank 0.375%–2.50% 2014–2017 | 55,940 | 56,142 | .61 | |||||||||
Fannie Mae 1.25%–5.375% 2016 | 12,080 | 12,470 | .13 | |||||||||
Other securities | 42,724 | .46 | ||||||||||
239,153 | 2.58 | |||||||||||
Other bonds & notes 1.10% | ||||||||||||
Other securities | 101,913 | 1.10 | ||||||||||
Total bonds, notes & other debt instruments (cost: $8,381,060,000) | 8,408,469 | 90.69 | ||||||||||
Convertible securities 0.02% | ||||||||||||
Miscellaneous 0.02% | ||||||||||||
Other convertible securities in initial period of acquisition | 1,473 | .02 | ||||||||||
Total convertible securities (cost: $1,353,000) | 1,473 | .02 |
American Funds Insurance Series | 89 |
Bond Fund
Preferred securities 0.11% | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
Financials 0.08% | ||||||||||||
Other securities | $ | 7,245 | .08 | % | ||||||||
Miscellaneous 0.03% | ||||||||||||
Other preferred securities in initial period of acquisition | 2,640 | .03 | ||||||||||
Total preferred securities (cost: $10,208,000) | 9,885 | .11 | ||||||||||
Common stocks 0.06% | ||||||||||||
Other 0.06% | ||||||||||||
Other securities | 5,457 | .06 | ||||||||||
Total common stocks (cost: $9,846,000) | 5,457 | .06 | ||||||||||
Short-term securities 14.24% | ||||||||||||
Freddie Mac 0.07%–0.15% due 1/23–10/6/2014 | $ | 554,100 | 553,858 | 5.97 | ||||||||
Federal Home Loan Bank 0.08%–0.18% due 1/2–7/15/2014 | 168,200 | 168,133 | 1.81 | |||||||||
Coca-Cola Co. 0.11%–0.13% due 1/24–4/10/20143 | 83,500 | 83,478 | .90 | |||||||||
Private Export Funding Corp. 0.13%–0.23% due 2/12–4/9/20143 | 74,400 | 74,378 | .80 | |||||||||
ExxonMobil Corp. 0.07%–0.08% due 1/2–1/21/2014 | 70,000 | 69,998 | .76 | |||||||||
National Rural Utilities Cooperative Finance Corp. 0.09%–0.10% due 1/9–2/7/2014 | 65,500 | 65,496 | .71 | |||||||||
Fannie Mae 0.055%–0.12% due 2/26–5/1/2014 | 55,100 | 55,087 | .59 | |||||||||
U.S. Treasury Bill 0.126% due 8/21/2014 | 40,000 | 39,982 | .43 | |||||||||
Federal Farm Credit Banks 0.13% due 7/21/2014 | 35,300 | 35,277 | .38 | |||||||||
IBM Corp. 0.05% due 1/28/20143 | 34,200 | 34,199 | .37 | |||||||||
Other securities | 140,483 | 1.52 | ||||||||||
Total short-term securities (cost: $1,320,441,000) | 1,320,369 | 14.24 | ||||||||||
Total investment securities (cost: $9,722,908,000) | 9,745,653 | 105.12 | ||||||||||
Other assets less liabilities | (473,568 | ) | (5.12 | ) | ||||||||
Net assets | $ | 9,272,085 | 100.00 | % |
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.
As permitted by U.S.Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
90 | American Funds Insurance Series |
Bond Fund
Forward currency contracts
The fund has entered into forward currency contracts to sell currencies as shown in the following table. The average notional amount of open forward currency contracts was $131,134,000 over the prior 12-month period.
Contract amount | Unrealized (depreciation) appreciation | ||||||||||||
Settlement date | Counterparty | Receive (000) | Deliver (000) | at 12/31/2013 (000) | |||||||||
Sales: | |||||||||||||
Euros | 1/10/2014 | Bank of New York Mellon | $1,369 | €1,000 | $(7 | ) | |||||||
Euros | 1/10/2014 | JPMorgan Chase | $82,536 | €60,275 | (384 | ) | |||||||
Euros | 1/17/2014 | JPMorgan Chase | $1,646 | €1,200 | (5 | ) | |||||||
Euros | 1/29/2014 | Citibank | $9,677 | €7,075 | (56 | ) | |||||||
Euros | 1/29/2014 | Citibank | $68,469 | €50,125 | (487 | ) | |||||||
Euros | 1/30/2014 | Citibank | $3,308 | €2,400 | 6 | ||||||||
Euros | 2/6/2014 | JPMorgan Chase | $39,179 | €29,000 | (716 | ) | |||||||
$(1,649 | ) |
Interest rate swaps
The fund has entered into an interest rate swap as shown in the following table. The average notional amount of interest rate swaps was $40,000,000 over the prior one-month period.
Pay/receive floating rate | Floating rate index | Fixed rate | Expiration date | Notional amount (000) | Unrealized appreciation at 12/31/2013 (000) | |||||
Receive | 3-month USD-LIBOR | 3.00% | 12/23/2023 | $40,000 | $334 |
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio, including securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities which were valued under fair value procedures was $5,452,000, which represented .06% of the net assets of the fund. Some of these securities (with an aggregate value of $5,196,000, an aggregate cost of $8,825,000, and which represented .06% of the net assets of the fund) were acquired from 1/26/2009 to 12/13/2011 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 loan participations and assignments, which may be subject to legal or contractual restrictions on resale. The total value of all such loans was $55,644,000, which represented .60% of the net assets of the 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 | A portion of this security was pledged as collateral. The total value of pledged collateral was $3,674,000, which represented .04% of the net assets of the fund. |
2 | Index-linked bond whose principal amount moves with a government price index. |
3 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $1,056,490,000, which represented 11.39% of the net assets of the fund. |
4 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
5 | Coupon rate may change periodically. |
Key to symbol
€ = Euros
See Notes to Financial Statements
American Funds Insurance Series | 91 |
Summary investment portfolio December 31, 2013
Bonds, notes & other debt instruments 92.00% | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
Euros 22.58% | ||||||||||||
Spanish Government: | ||||||||||||
5.50% 2017 | € | 18,415 | US$ | 28,147 | ||||||||
4.50% 2018 | 16,730 | 24,792 | ||||||||||
5.85% 2022 | 17,225 | 26,923 | 8.59 | % | ||||||||
5.40% 2023 | 90,320 | 136,604 | ||||||||||
3.75%–3.80% 2017–2018 | 4,180 | 6,036 | ||||||||||
Italian Government: | ||||||||||||
4.75% 2017 | 17,845 | 26,615 | ||||||||||
4.75% 2017 | 13,525 | 20,200 | 3.04 | |||||||||
4.75% 2021 | 11,125 | 16,580 | ||||||||||
3.50%–4.50% 2018–2024 | 10,440 | 15,175 | ||||||||||
Irish Government: | ||||||||||||
4.50% 2020 | 22,255 | 33,526 | ||||||||||
3.90% 2023 | 8,625 | 12,298 | 2.33 | |||||||||
4.50%–5.50% 2017–2020 | 9,305 | 14,396 | ||||||||||
Belgium (Kingdom of): | ||||||||||||
Series 69, 1.25% 2018 | 6,925 | 9,556 | ||||||||||
Series 67, 3.00% 2019 | 7,280 | 10,788 | 1.46 | |||||||||
Series 68, 2.25% 2023 | 13,065 | 17,526 | ||||||||||
German Government 2.00%–6.25% 2014–2040 | 19,965 | 31,861 | 1.23 | |||||||||
Portuguese Government: | ||||||||||||
4.35% 2017 | 15,195 | 20,890 | 1.08 | |||||||||
3.85%–4.75% 2019–2021 | 5,575 | 6,967 | ||||||||||
Hungarian Government 3.875%–6.00% 2018–2020 | 14,810 | 22,282 | .86 | |||||||||
Other securities | 103,313 | 3.99 | ||||||||||
584,475 | 22.58 | |||||||||||
Japanese yen 5.72% | ||||||||||||
Japanese Government: | ||||||||||||
Series 317, 0.10% 2014 | ¥ | 2,597,350 | 24,669 | |||||||||
Series 269, 1.30% 2015 | 3,795,000 | 36,561 | ||||||||||
Series 284, 1.70% 2016 | 2,810,000 | 27,912 | 5.72 | |||||||||
Series 136, 1.60% 2032 | 2,265,950 | 22,061 | ||||||||||
1.00%–2.40% 2017–2038 | 3,654,450 | 36,959 | ||||||||||
148,162 | 5.72 | |||||||||||
Polish zloty 3.93% | ||||||||||||
Polish Government: | ||||||||||||
Series 1017, 5.25% 2017 | PLN | 144,697 | 50,967 | |||||||||
Series 0718, 2.50% 2018 | 34,000 | 10,748 | ||||||||||
Series 1020, 5.25% 2020 | 20,000 | 7,110 | 3.93 | |||||||||
Series 1021, 5.75% 2021 | 31,280 | 11,405 | ||||||||||
Series 0922, 5.75% 2022 | 58,890 | 21,536 | ||||||||||
101,766 | 3.93 | |||||||||||
Mexican pesos 3.86% | ||||||||||||
United Mexican States Government: | ||||||||||||
Series M, 6.25% 2016 | MXN | 147,200 | 11,867 | |||||||||
Series M, 5.00% 2017 | 202,000 | 15,612 | ||||||||||
Series M, 8.00% 2020 | 323,200 | 27,781 | 3.86 | |||||||||
Series M30, 10.00% 2036 | 155,000 | 15,108 | ||||||||||
4.00%–10.00% 2016–20401 | 342,876 | 29,587 | ||||||||||
99,955 | 3.86 | |||||||||||
British pounds 3.12% | ||||||||||||
United Kingdom: | ||||||||||||
3.75% 2021 | £ | 15,855 | 28,275 | |||||||||
4.25% 2040 | 6,620 | 12,105 | 3.00 | |||||||||
1.75%–4.75% 2014–2044 | 22,690 | 37,363 | ||||||||||
Other securities | 3,049 | .12 | ||||||||||
80,792 | 3.12 |
92 | American Funds Insurance Series |
Global Bond Fund
Bonds, notes & other debt instruments | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
Swedish kronor 1.56% | ||||||||||||
Swedish Government: | ||||||||||||
Series 1051, 3.75% 2017 | SKr | 75,380 | US$ | 12,686 | ||||||||
Series 105, 3.50% 2022 | 109,290 | 18,527 | 1.56 | % | ||||||||
3.50%–6.75% 2014–20281 | 47,693 | 9,249 | ||||||||||
40,462 | 1.56 | |||||||||||
Norwegian kroner 1.46% | ||||||||||||
Norwegian Government: | ||||||||||||
4.25% 2017 | NKr | 115,210 | 20,485 | 1.46 | ||||||||
3.75%–4.50% 2019–2021 | 96,585 | 17,373 | ||||||||||
37,858 | 1.46 | |||||||||||
Hungarian forints 1.31% | ||||||||||||
Hungarian Government: | ||||||||||||
Series 19/A, 6.50% 2019 | HUF | 2,547,750 | 12,739 | 1.31 | ||||||||
Series 20A, 7.50% 2020 | 4,025,000 | 21,002 | ||||||||||
33,741 | 1.31 | |||||||||||
South Korean won 1.15% | ||||||||||||
South Korean Government 3.00%–5.75% 2017–2023 | KRW | 30,658,950 | 29,733 | 1.15 | ||||||||
Brazilian reais 0.77% | ||||||||||||
Brazil (Federal Republic of) 6.00% 20181 | BRL | 26,493 | 11,075 | .43 | ||||||||
Other securities | 8,794 | .34 | ||||||||||
19,869 | .77 | |||||||||||
U.S. dollars 42.15% | ||||||||||||
U.S. Treasury: | ||||||||||||
1.00% 2017 | US$ | 20,685 | 20,733 | |||||||||
2.75% 20172 | 15,125 | 16,014 | ||||||||||
3.50% 2018 | 15,275 | 16,579 | ||||||||||
1.375% 2020 | 18,525 | 17,538 | ||||||||||
1.625% 2022 | 57,675 | 51,984 | ||||||||||
1.625% 2022 | 11,750 | 10,659 | 12.39 | |||||||||
2.50% 2023 | 55,775 | 53,465 | ||||||||||
2.75% 2023 | 17,750 | 17,335 | ||||||||||
0.25%–7.50% 2014–2043 | 79,328 | 80,118 | ||||||||||
U.S. Treasury inflation-protected securities: | ||||||||||||
0.375% 20231 | 18,266 | 17,605 | ||||||||||
0.125%–2.375% 2015–20431 | 18,604 | 18,815 | ||||||||||
Fannie Mae: | ||||||||||||
3.00% 20433 | 16,714 | 15,917 | ||||||||||
3.50% 20443 | 27,075 | 26,904 | 3.30 | |||||||||
2.00%–6.50% 2022–20443,4 | 41,745 | 42,484 | ||||||||||
Hungarian Government: | ||||||||||||
6.25% 2020 | 11,020 | 11,943 | .83 | |||||||||
4.125%–5.375% 2018–2023 | 9,670 | 9,659 | ||||||||||
Polish Government 5.00%–6.375% 2019–2022 | 11,200 | 12,682 | .49 | |||||||||
Toronto-Dominion Bank 2.375% 2016 | 1,000 | 1,039 | .04 | |||||||||
South Korean Government 5.75% 2014 | 700 | 710 | .03 | |||||||||
Other securities | 648,985 | 25.07 | ||||||||||
1,091,168 | 42.15 | |||||||||||
Other currencies 4.39% | ||||||||||||
Other securities | 113,679 | 4.39 | ||||||||||
Total bonds, notes & other debt instruments (cost: $2,356,149,000) | 2,381,660 | 92.00 |
American Funds Insurance Series | 93 |
Global Bond Fund
Convertible securities 0.02% | Value (000) | Percent of net assets | ||||||
U.S. dollars 0.02% | ||||||||
Other securities | US$ | 597 | .02 | % | ||||
Total convertible securities (cost: $386,000) | 597 | .02 | ||||||
Preferred securities 0.11% | ||||||||
U.S. dollars 0.11% | ||||||||
Other securities | 2,774 | .11 | ||||||
Total preferred securities (cost: $2,845,000) | 2,774 | .11 | ||||||
Common stocks 0.05% | ||||||||
U.S. dollars 0.05% | ||||||||
Other securities | 1,230 | .05 | ||||||
Total common stocks (cost: $2,458,000) | 1,230 | .05 |
94 | American Funds Insurance Series |
Global Bond Fund
Short-term securities 7.62% | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
Federal Home Loan Bank 0.05%–0.06% due 1/24–3/21/2014 | US$ | 90,000 | US$ | 89,987 | 3.48 | % | ||||||
Toronto-Dominion Holdings USA Inc. 0.13% due 1/6/20145 | 25,000 | 24,999 | .96 | |||||||||
Gotham Funding Corp. 0.16% due 1/14/20145 | 12,200 | 12,199 | ||||||||||
Bank of Tokyo-Mitsubishi UFJ, Ltd. 0.11% due 1/6/2014 | 10,000 | 10,000 | .86 | |||||||||
Mizuho Funding LLC 0.165% due 1/22/20145 | 20,000 | 19,998 | .77 | |||||||||
International Bank for Reconstruction and Development 0.12% due 3/5/2014 | 15,200 | 15,198 | .59 | |||||||||
Wal-Mart Stores, Inc. 0.06% due 2/24/20145 | 15,000 | 14,999 | .58 | |||||||||
Other securities | 9,900 | .38 | ||||||||||
Total short-term securities (cost: $197,282,000) | 197,280 | 7.62 | ||||||||||
Total investment securities (cost: $2,559,120,000) | 2,583,541 | 99.80 | ||||||||||
Other assets less liabilities | 5,249 | .20 | ||||||||||
Net assets | US$ | 2,588,790 | 100.00 | % |
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, including securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities which were valued under fair value procedures was $1,827,000, which represented .07% of the net assets of the fund. Some of these securities (with an aggregate value of $734,000, an aggregate cost of $1,511,000, and which represented .03% of the net assets of the fund) were acquired from 3/16/2007 to 2/15/2013 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 | 95 |
Global Bond Fund
Forward currency contracts
The fund has entered into forward currency contracts to purchase or sell currencies as shown in the following table. The average notional amount of open forward currency contracts was $295,709,000 over the prior 12-month period.
Unrealized | |||||||||||||||||
appreciation | |||||||||||||||||
Contract amount | (depreciation) | ||||||||||||||||
Settlement | Receive | Deliver | at 12/31/2013 | ||||||||||||||
date | Counterparty | (000) | (000) | (000) | |||||||||||||
Purchases: | |||||||||||||||||
British pounds | 1/10/2014 | UBS AG | £7,800 | $12,769 | US$ | 146 | |||||||||||
Euros | 1/24/2014 | HSBC Bank | €4,235 | $5,793 | 33 | ||||||||||||
Japanese yen | 1/17/2014 | UBS AG | ¥1,633,399 | $16,214 | (549 | ) | |||||||||||
Japanese yen | 1/17/2014 | JPMorgan Chase | ¥445,932 | $4,320 | (85 | ) | |||||||||||
Japanese yen | 1/24/2014 | JPMorgan Chase | ¥1,682,153 | $16,395 | (420 | ) | |||||||||||
Japanese yen | 1/27/2014 | Citibank | ¥1,807,169 | $17,535 | (353 | ) | |||||||||||
Japanese yen | 2/7/2014 | UBS AG | ¥1,319,645 | $13,400 | (867 | ) | |||||||||||
Japanese yen | 3/5/2014 | Bank of New York Mellon | ¥2,712,496 | $26,475 | (710 | ) | |||||||||||
Japanese yen | 3/11/2014 | Bank of America, N.A. | ¥910,822 | $8,850 | (198 | ) | |||||||||||
US$ | (3,003 | ) | |||||||||||||||
Sales: | |||||||||||||||||
Brazilian reais | 1/8/2014 | Citibank | $3,586 | BRL8,590 | US$ | (48 | ) | ||||||||||
Brazilian reais | 1/9/2014 | Credit Suisse AG | $2,842 | BRL6,750 | (13 | ) | |||||||||||
Brazilian reais | 2/5/2014 | Citibank | $11,485 | BRL27,615 | (113 | ) | |||||||||||
Euros | 1/10/2014 | JPMorgan Chase | $8,462 | €6,180 | (39 | ) | |||||||||||
Euros | 1/13/2014 | HSBC Bank | $6,030 | €4,370 | 18 | ||||||||||||
Euros | 1/13/2014 | Bank of America, N.A. | £22,902 | €27,200 | 502 | ||||||||||||
Euros | 1/14/2014 | Bank of America, N.A. | $2,946 | €2,140 | 2 | ||||||||||||
Euros | 1/14/2014 | Bank of America, N.A. | ¥430,160 | €3,040 | (97 | ) | |||||||||||
Euros | 1/14/2014 | Bank of America, N.A. | $17,848 | €13,130 | (215 | ) | |||||||||||
Euros | 1/17/2014 | Bank of America, N.A. | $5,961 | €4,345 | (16 | ) | |||||||||||
Euros | 1/24/2014 | HSBC Bank | $5,839 | €4,240 | 6 | ||||||||||||
Euros | 1/30/2014 | Citibank | $6,086 | €4,500 | (105 | ) | |||||||||||
Euros | 2/5/2014 | Citibank | £3,624 | €4,375 | (19 | ) | |||||||||||
Euros | 2/5/2014 | HSBC Bank | $6,071 | €4,500 | (119 | ) | |||||||||||
Euros | 2/7/2014 | UBS AG | £6,220 | €7,400 | 118 | ||||||||||||
Euros | 2/7/2014 | UBS AG | $10,814 | €8,075 | (226 | ) | |||||||||||
Euros | 2/12/2014 | UBS AG | $6,368 | €4,775 | (158 | ) | |||||||||||
Japanese yen | 1/24/2014 | Bank of America, N.A. | $5,813 | ¥605,500 | 63 | ||||||||||||
Mexican pesos | 1/16/2014 | UBS AG | $4,346 | MXN56,784 | 29 | ||||||||||||
Mexican pesos | 1/24/2014 | Barclays Bank PLC | $2,928 | MXN38,150 | 12 | ||||||||||||
Swedish kronor | 1/13/2014 | Citibank | $5,874 | SKr38,340 | (86 | ) | |||||||||||
Swedish kronor | 1/13/2014 | UBS AG | €3,197 | SKr28,800 | (78 | ) | |||||||||||
Swedish kronor | 1/23/2014 | HSBC Bank | €5,296 | SKr47,650 | (120 | ) | |||||||||||
Swedish kronor | 2/10/2014 | Bank of America, N.A. | €2,144 | SKr19,040 | (9 | ) | |||||||||||
Turkish lira | 1/13/2014 | Bank of America, N.A. | $1,261 | TRY2,600 | 54 | ||||||||||||
Turkish lira | 1/15/2014 | Bank of New York Mellon | $3,085 | TRY6,290 | 167 | ||||||||||||
Turkish lira | 1/27/2014 | Citibank | $2,221 | TRY4,590 | 98 | ||||||||||||
US$ | (392 | ) | |||||||||||||||
Forward currency contracts – net | US$ | (3,395 | ) |
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 | A portion of this security was pledged as collateral. The total value of pledged collateral was $2,951,000, which represented .11% 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 | Coupon rate may change periodically. |
5 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $268,275,000, which represented 10.36% of the net assets of the fund. |
See Notes to Financial Statements
96 | American Funds Insurance Series |
Summary investment portfolio December 31, 2013
Bonds, notes & other debt instruments 89.79% | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
Corporate bonds & notes 88.96% | ||||||||||||
Telecommunication services 16.67% | ||||||||||||
Sprint Nextel Corp.: | ||||||||||||
7.00% 2020 | $ | 20,650 | $ | 22,457 | ||||||||
6.00%–11.50% 2016–20211 | 13,310 | 16,395 | ||||||||||
Sprint Corp.: | ||||||||||||
7.25% 20211 | 11,150 | 12,014 | 2.92 | % | ||||||||
7.875% 20231 | 2,050 | 2,209 | ||||||||||
Clearwire Communications and Clearwire Finance, Inc. 14.75% 20161 | 1,250 | 1,709 | ||||||||||
Sprint Capital Corp. 6.90% 2019 | 1,550 | 1,701 | ||||||||||
Wind Acquisition SA: | ||||||||||||
11.75% 20171 | 17,618 | 18,763 | ||||||||||
11.75% 2017 | € | 8,550 | 12,528 | 2.36 | ||||||||
7.25% 20181 | $ | 7,975 | 8,424 | |||||||||
7.375% 2018 | € | 4,075 | 5,940 | |||||||||
MetroPCS Wireless, Inc.: | ||||||||||||
6.25% 20211 | $ | 16,950 | 17,649 | |||||||||
6.625% 20231 | 19,150 | 19,844 | 2.35 | |||||||||
T-Mobile US, Inc. 6.542%–6.731% 2020–2022 | 7,600 | 8,044 | ||||||||||
Leap Wireless International, Inc., Term Loan C, 4.75% 20202,3,4 | 18,333 | 18,398 | ||||||||||
Cricket Communications, Inc. 7.75% 2020 | 12,575 | 14,383 | 1.69 | |||||||||
NII Capital Corp. 7.625%–11.375% 2016–20211 | 57,310 | 31,975 | 1.65 | |||||||||
Intelsat Jackson Holding Co.: | ||||||||||||
6.625% 20221 | 14,700 | 15,214 | ||||||||||
6.625%–7.25% 2020–2022 | 6,525 | 6,824 | 1.22 | |||||||||
Intelsat Luxembourg Holding Co. 6.75% 20181 | 1,470 | 1,569 | ||||||||||
Digicel Group Ltd.: | ||||||||||||
8.25% 20201 | 17,300 | 18,014 | ||||||||||
6.00% 20211 | 5,650 | 5,466 | 1.21 | |||||||||
LightSquared, Term Loan B, 12.00% 20143,4,5,6 | 17,291 | 20,663 | 1.07 | |||||||||
Other securities | 42,523 | 2.20 | ||||||||||
322,706 | 16.67 | |||||||||||
Consumer discretionary 14.67% | ||||||||||||
DISH DBS Corp.: | ||||||||||||
4.25% 2018 | 14,775 | 15,107 | ||||||||||
4.625%–7.875% 2017–2020 | 11,975 | 12,444 | 1.50 | |||||||||
EchoStar DBS Corp. 7.125%–7.75% 2015–2016 | 1,325 | 1,448 | ||||||||||
Caesars Entertainment Operating Co. 8.00%–11.25% 2017–20201 | 23,820 | 23,869 | 1.23 | |||||||||
Boyd Gaming Corp.: | ||||||||||||
9.00% 2020 | 10,750 | 11,825 | 1.13 | |||||||||
9.125% 2018 | 9,190 | 10,040 | ||||||||||
Revel Entertainment, Term Loan B, 14.50% 20182,3,4,5 | 11,524 | 10,487 | .54 | |||||||||
Needle Merger Sub Corp. 8.125% 20191 | 9,955 | 10,465 | .54 | |||||||||
Cequel Communications Holdings I, LLC and Cequel Capital Corp. 6.375% 20201 | 9,900 | 10,197 | .53 | |||||||||
Other securities | 178,139 | 9.20 | ||||||||||
284,021 | 14.67 |
American Funds Insurance Series | 97 |
High-Income Bond Fund
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
Industrials 13.14% | ||||||||||||
Navios Maritime Holdings Inc. 7.375% 20221 | $ | 10,050 | $ | 10,125 | ||||||||
Navios Maritime Holdings Inc. and Navios Maritime Finance II (US) Inc. 8.125% 2019 | 5,745 | 5,932 | 1.17 | % | ||||||||
Navios Maritime Acquisition Corporation and Navios Acquisition Finance (US) Inc. 8.125% 20211 | 6,500 | 6,662 | ||||||||||
Associated Materials, LLC and AMH New Finance, Inc. 9.125% 2017 | 19,055 | 20,436 | 1.06 | |||||||||
JELD-WEN Escrow Corp. 12.25% 20171 | 14,770 | 16,838 | .87 | |||||||||
Ply Gem Industries, Inc. 8.25% 2018 | 14,239 | 15,236 | .79 | |||||||||
Gardner Denver, Inc. Term Loan B, 4.25% 20202,3,4 | 11,970 | 12,007 | .62 | |||||||||
Euramax International, Inc. 9.50% 2016 | 10,880 | 10,962 | .57 | |||||||||
CEVA Group PLC 8.375%–11.625% 2016–20171 | 6,644 | 7,008 | .36 | |||||||||
Beechcraft Holdings, LLC., Term Loan, 5.75% 20202,3,4 | 6,130 | 6,201 | .32 | |||||||||
Other securities | 142,846 | 7.38 | ||||||||||
254,253 | 13.14 | |||||||||||
Health care 13.12% | ||||||||||||
inVentiv Health Inc.: | ||||||||||||
9.00% 20181 | 10,225 | 10,736 | ||||||||||
11.00% 20181 | 20,290 | 18,007 | 1.84 | |||||||||
11.00% 20181 | 7,685 | 6,840 | ||||||||||
Kinetic Concepts, Inc.: | ||||||||||||
10.50% 2018 | 15,355 | 17,735 | ||||||||||
12.50% 2019 | 10,465 | 11,878 | 1.62 | |||||||||
Term Loan D1, 4.50% 20182,3,4 | 1,656 | 1,671 | ||||||||||
VPI Escrow Corp. 5.625%–7.50% 2018–20211 | 23,955 | 25,852 | 1.33 | |||||||||
DJO Finance LLC: | ||||||||||||
7.75% 2018 | 11,635 | 11,897 | 1.14 | |||||||||
8.75%–9.875% 2017–2018 | 9,685 | 10,208 | ||||||||||
Forest Laboratories, Inc. 5.00% 20211 | 15,450 | 15,547 | .80 | |||||||||
INC Research LLC 11.50% 20191 | 10,690 | 11,946 | .62 | |||||||||
Select Medical Holdings Corp. 6.375% 2021 | 12,155 | 11,942 | .62 | |||||||||
Other securities | 99,792 | 5.15 | ||||||||||
254,051 | 13.12 | |||||||||||
Materials 8.16% | ||||||||||||
FMG Resources: | ||||||||||||
6.00% 20171 | 14,855 | 15,858 | ||||||||||
6.875%–8.25% 2015–20221 | 15,493 | 16,836 | 1.69 | |||||||||
Reynolds Group Inc.: | ||||||||||||
5.75% 2020 | 19,805 | 20,300 | 1.39 | |||||||||
7.125%–9.875% 2019 | 5,915 | 6,572 | ||||||||||
Inmet Mining Corp.: | ||||||||||||
8.75% 20201 | 14,780 | 16,110 | ||||||||||
7.50% 20211 | 6,270 | 6,583 | 1.17 | |||||||||
ArcelorMittal 7.25% 20412 | 11,105 | 10,661 | .55 | |||||||||
Other securities | 65,041 | 3.36 | ||||||||||
157,961 | 8.16 |
98 | American Funds Insurance Series |
High-Income Bond Fund
Bonds, notes & other debt instruments | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
Information technology 8.09% | ||||||||||||
First Data Corp.: | ||||||||||||
11.75% 20211 | $ | 26,055 | $ | 27,618 | ||||||||
12.625% 2021 | 11,804 | 13,914 | 2.93 | % | ||||||||
6.75%–11.75% 2019–20221,2,5 | 14,217 | 15,140 | ||||||||||
Freescale Semiconductor, Inc.: | ||||||||||||
5.00% 20211 | 10,385 | 10,125 | ||||||||||
6.00% 20221 | 15,600 | 15,834 | 1.34 | |||||||||
SRA International, Inc.: | ||||||||||||
Term Loan B, 6.50% 20182,3,4 | 16,678 | 16,545 | ||||||||||
11.00% 2019 | 7,835 | 8,188 | 1.28 | |||||||||
Dell, Inc. Term Loan B, 4.50% 20202,3,4 | 17,250 | 17,315 | .89 | |||||||||
Other securities | 32,003 | 1.65 | ||||||||||
156,682 | 8.09 | |||||||||||
Energy 7.95% | ||||||||||||
NGPL PipeCo LLC: | ||||||||||||
9.625% 20191 | 16,825 | 16,531 | ||||||||||
Term Loan B, 6.75% 20172,3,4 | 939 | 878 | 1.03 | |||||||||
7.119% 20171 | 2,775 | 2,525 | ||||||||||
Peabody Energy Corp. 6.00% 2018 | 11,455 | 12,257 | .63 | |||||||||
QGOG Constellation SA 6.25% 20191 | 11,200 | 10,724 | .56 | |||||||||
Other securities | 110,923 | 5.73 | ||||||||||
153,838 | 7.95 | |||||||||||
Financials 3.51% | ||||||||||||
Realogy Corp. 7.875% 20191 | 11,850 | 13,065 | .68 | |||||||||
Other securities | 54,846 | 2.83 | ||||||||||
67,911 | 3.51 | |||||||||||
Other corporate bonds & notes 3.65% | ||||||||||||
Other securities | 70,538 | 3.65 | ||||||||||
Total corporate bonds & notes | 1,721,961 | 88.96 | ||||||||||
Other bonds & notes 0.83% | ||||||||||||
Other securities | 16,063 | .83 | ||||||||||
Total bonds, notes & other debt instruments (cost: $1,672,973,000) | 1,738,024 | 89.79 |
American Funds Insurance Series | 99 |
High-Income Bond Fund
Convertible securities 0.96% | Shares | Value (000) | Percent of net assets | |||||||||
Industrials 0.56% | ||||||||||||
CEVA Group PLC, Series A-2, 2.239% convertible preferred7,8 | 2,211 | $ | 2,780 | |||||||||
CEVA Group PLC, Series A-1, 3.239% convertible preferred8 | 4,788 | 8,025 | .56 | % | ||||||||
10,805 | .56 | |||||||||||
Other 0.40% | ||||||||||||
Other securities | 7,799 | .40 | ||||||||||
Total convertible securities (cost: $14,032,000) | 18,604 | .96 | ||||||||||
Preferred securities 0.78% | ||||||||||||
Financials 0.78% | ||||||||||||
Other securities | 15,133 | .78 | ||||||||||
Total preferred securities (cost: $15,417,000) | 15,133 | .78 | ||||||||||
Common stocks 2.07% | ||||||||||||
Industrials 1.40% | ||||||||||||
Beech Holdings, LLC7,8,9 | 2,447,858 | 19,913 | 1.03 | |||||||||
CEVA Group PLC1,8,9 | 5,622 | 7,067 | .37 | |||||||||
Other securities | 1 | .00 | ||||||||||
26,981 | 1.40 | |||||||||||
Other 0.67% | ||||||||||||
Other securities | 12,971 | .67 | ||||||||||
Total common stocks (cost: $45,158,000) | 39,952 | 2.07 | ||||||||||
Rights & warrants 0.01% | ||||||||||||
Consumer discretionary 0.01% | ||||||||||||
Other securities | 286 | .01 | ||||||||||
Total rights & warrants (cost: $165,000) | 286 | .01 |
100 | American Funds Insurance Series |
High-Income Bond Fund
Short-term securities 4.97% | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
Fannie Mae 0.055%–0.14% due 2/26–6/2/2014 | $ | 24,000 | $ | 23,991 | 1.24 | % | ||||||
John Deere Financial Ltd. 0.08%–0.09% due 1/8–1/10/20141 | 17,100 | 17,100 | .88 | |||||||||
National Rural Utilities Cooperative Finance Corp. 0.10% due 1/28/2014 | 15,500 | 15,499 | .80 | |||||||||
Federal Home Loan Bank 0.11% due 5/16/2014 | 13,300 | 13,295 | .69 | |||||||||
General Electric Capital Corp. 0.05% due 1/2/2014 | 13,000 | 13,000 | .67 | |||||||||
Other securities | 13,298 | .69 | ||||||||||
Total short-term securities (cost: $96,178,000) | 96,183 | 4.97 | ||||||||||
Total investment securities (cost: $1,843,923,000) | 1,908,182 | 98.58 | ||||||||||
Other assets less liabilities | 27,452 | 1.42 | ||||||||||
Net assets | $ | 1,935,634 | 100.00 | % |
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
Forward currency contracts
The fund has entered into forward currency contracts to sell currencies as shown in the following table. The average notional amount of open forward currency contracts was $8,330,000 over the prior 12-month period.
Unrealized | ||||||||||||||||||
Contract amount | depreciation | |||||||||||||||||
Settlement | Receive | Deliver | at 12/31/2013 | |||||||||||||||
date | Counterparty | (000) | (000) | (000) | ||||||||||||||
Sales: | ||||||||||||||||||
Euros | 1/10/2014 | Bank of New York Mellon | $4,998 | €3,650 | $(24 | ) | ||||||||||||
Euros | 1/24/2014 | JPMorgan Chase | $1,204 | €875 | — | 10 | ||||||||||||
$(24 | ) |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $805,752,000, which represented 41.63% of the net assets of the fund. |
2 | Coupon rate may change periodically. |
3 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
4 | Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans, including those in “Other securities,” was $187,679,000, which represented 9.70% of the net assets of the fund. |
5 | Payment in kind; the issuer has the option of paying additional securities in lieu of cash. |
6 | Scheduled interest and/or principal payment was not received. |
7 | 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. |
Acquisition | Cost | Value | Percent of | |||||||||||
dates | (000) | (000) | net assets | |||||||||||
Beech Holdings, LLC | 3/16/2007–2/15/2013 | $ | 18,164 | $ | 19,913 | 1.03 | % | |||||||
CEVA Group PLC, Series A-2, 2.239% convertible preferred | 3/10/2010–1/23/2012 | 2,214 | 2,780 | .14 | ||||||||||
Other restricted securities | 2/14/2011–3/15/2013 | 12,058 | 3,492 | .18 | ||||||||||
Total restricted securities | $ | 32,436 | $ | 26,185 | 1.35 | % |
8 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities including those in “Other securities,” was $57,820,000, which represented 2.99% of the net assets of the fund. |
9 | Security did not produce income during the last 12 months. |
10 | Amount less than one thousand. |
Key to symbol
€ = Euros
See Notes to Financial Statements
American Funds Insurance Series | 101 |
Summary investment portfolio December 31, 2013
Bonds, notes & other debt instruments 94.51% | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
Mortgage-backed obligations 74.05% | ||||||||||||
Federal agency mortgage-backed obligations1 66.39% | ||||||||||||
Fannie Mae: | ||||||||||||
2.50% 2028 | $ | 2,330 | $ | 2,309 | ||||||||
3.00% 2028 | 4,998 | 5,115 | ||||||||||
3.00% 2042 | 12,352 | 11,762 | ||||||||||
3.00% 2043 | 10,864 | 10,347 | ||||||||||
3.00% 2043 | 6,872 | 6,545 | 27.61 | % | ||||||||
4.00% 2043 | 5,331 | 5,515 | ||||||||||
4.00% 2043 | 2,238 | 2,309 | ||||||||||
3.00% 2044 | 9,677 | 9,189 | ||||||||||
4.50% 2044 | 10,425 | 11,049 | ||||||||||
2.50%–5.00% 2027–20432 | 3,985 | 4,143 | ||||||||||
Government National Mortgage Assn.: | ||||||||||||
5.50% 2040 | 7,325 | 8,235 | ||||||||||
5.00% 2041 | 3,919 | 4,256 | ||||||||||
5.00% 2041 | 2,179 | 2,297 | ||||||||||
6.50% 2041 | 2,732 | 2,965 | ||||||||||
3.50% 2043 | 3,810 | 3,850 | ||||||||||
3.50% 2043 | 3,598 | 3,637 | ||||||||||
3.50% 2043 | 2,881 | 2,913 | 22.09 | |||||||||
3.50% 2043 | 2,664 | 2,692 | ||||||||||
3.50% 2043 | 2,359 | 2,384 | ||||||||||
4.00% 2043 | 6,818 | 7,107 | ||||||||||
4.50% 2043 | 2,484 | 2,661 | ||||||||||
4.50% 2043 | 1,500 | 1,606 | ||||||||||
4.00% 2044 | 2,250 | 2,339 | ||||||||||
3.50%–6.00% 2038–2043 | 7,508 | 7,674 | ||||||||||
Freddie Mac: | ||||||||||||
2.50% 2027 | 1,272 | 1,265 | ||||||||||
5.00% 2034 | 4,368 | 4,738 | ||||||||||
3.00% 2043 | 5,125 | 4,871 | ||||||||||
4.00% 2043 | 9,232 | 9,516 | 13.17 | |||||||||
4.00% 2043 | 2,121 | 2,186 | ||||||||||
4.00% 2043 | 1,491 | 1,537 | ||||||||||
2.351%–5.50% 2026–20442 | 8,202 | 8,461 | ||||||||||
Vendee Mortgage Trust: | ||||||||||||
Series 2011-2, Class V, 3.75% 2028 | 5,921 | 6,128 | ||||||||||
Series 2011-2, Class DA, 3.75% 2033 | 203 | 212 | 3.30 | |||||||||
Series 2010-1, Class DA, 4.25% 2035 | 1,776 | 1,826 | ||||||||||
Other securities | 529 | .22 | ||||||||||
164,168 | 66.39 | |||||||||||
Commercial mortgage-backed securities1 4.20% | ||||||||||||
Morgan Stanley Capital I Trust, Series 2006-IQ12, Class A1A, 5.319% 2043 | 1,888 | 2,065 | .83 | |||||||||
Other securities | 8,329 | 3.37 | ||||||||||
10,394 | 4.20 | |||||||||||
Other mortgage-backed securities 3.46% | ||||||||||||
Other securities | 8,561 | 3.46 | ||||||||||
Total mortgage-backed obligations | 183,123 | 74.05 | ||||||||||
102 | American Funds Insurance Series |
Mortgage Fund
Bonds, notes & other debt instruments | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
U.S. Treasury bonds & notes 10.07% | ||||||||||||
U.S. Treasury inflation-protected securities3 5.69% | ||||||||||||
2.00% 2014 | $ | 2,478 | $ | 2,534 | ||||||||
2.00% 2014 | 2,528 | 2,528 | 5.69 | % | ||||||||
0.50% 2015 | 5,389 | 5,511 | ||||||||||
0.625% 2043 | 4,572 | 3,513 | ||||||||||
14,086 | 5.69 | |||||||||||
U.S. Treasury 4.38% | ||||||||||||
1.50% 2018 | 2,175 | 2,163 | ||||||||||
1.75% 2023 | 1,525 | 1,372 | ||||||||||
2.75% 2023 | 1,000 | 977 | 4.38 | |||||||||
2.875% 20434 | 2,000 | 1,615 | ||||||||||
3.625% 2043 | 5,000 | 4,703 | ||||||||||
10,830 | 4.38 | |||||||||||
Total U.S. Treasury bonds & notes | 24,916 | 10.07 | ||||||||||
Federal agency bonds & notes 9.25% | ||||||||||||
Freddie Mac: | ||||||||||||
Series K031, Class A2, multifamily 3.30% 20231,2 | 5,022 | 4,958 | ||||||||||
Series K032, Class A2, multifamily 3.31% 20232 | 1,250 | 1,233 | 4.67 | |||||||||
0.546%–3.531% 2016–20231,2 | 5,393 | 5,349 | ||||||||||
United States Agency for International Development, Jordan (Kingdom of) | ||||||||||||
2.503% 2020 | 7,000 | 6,856 | 2.77 | |||||||||
Federal Home Loan Bank: | ||||||||||||
Series 2816, 1.00% 2017 | 2,970 | 2,964 | 1.34 | |||||||||
5.50% 2036 | 300 | 347 | ||||||||||
Fannie Mae 1.114%–3.329% 2017–20231,2 | 1,189 | 1,164 | .47 | |||||||||
22,871 | 9.25 | |||||||||||
Municipals 1.14% | ||||||||||||
Other securities | 2,810 | 1.14 | ||||||||||
Total bonds, notes & other debt instruments (cost: $235,030,000) | 233,720 | 94.51 |
American Funds Insurance Series | 103 |
Mortgage Fund
Short-term securities 10.92% | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
General Electric Capital Corp. 0.05% due 1/2/2014 | $ | 5,200 | $ | 5,200 | 2.10 | % | ||||||
Federal Farm Credit Banks 0.15% due 5/23/2014 | 5,000 | 4,998 | 2.02 | |||||||||
National Rural Utilities Cooperative Finance Corp. 0.09% due 1/8/2014 | 4,900 | 4,900 | 1.98 | |||||||||
John Deere Financial Ltd. 0.08% due 1/17/20145 | 4,500 | 4,500 | 1.82 | |||||||||
Private Export Funding Corp. 0.08% due 2/20/20145 | 2,500 | 2,500 | 1.01 | |||||||||
Coca-Cola Co. 0.10% due 1/15/20145 | 2,300 | 2,300 | .93 | |||||||||
Federal Home Loan Bank 0.115% due 5/23/2014 | 1,600 | 1,599 | .65 | |||||||||
Other securities | 1,000 | .41 | ||||||||||
Total short-term securities (cost: $26,996,000) | 26,997 | 10.92 | ||||||||||
Total investment securities (cost: $262,026,000) | 260,717 | 105.43 | ||||||||||
Other assets less liabilities | (13,429 | ) | (5.43 | ) | ||||||||
Net assets | $ | 247,288 | 100.00 | % |
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.
Interest rate swaps
The fund has entered into interest rate swaps as shown in the following table. The average notional amount of interest rate swaps was $22,525,000 over the prior four-month period.
Pay/receive floating rate | Floating rate index | Fixed rate | Expiration date | Notional amount (000) | Unrealized appreciation (depreciation) at 12/31/2013 (000) | |||||||||||||
Receive | 3-month USD-LIBOR | 1.039 | % | 11/26/2017 | $ | 800 | $ | 8 | ||||||||||
Receive | 3-month USD-LIBOR | 1.5125 | 7/22/2018 | 5,000 | 18 | |||||||||||||
Receive | 3-month USD-LIBOR | 1.5775 | 8/6/2018 | 4,000 | 6 | |||||||||||||
Receive | 3-month USD-LIBOR | 1.5625 | 8/9/2018 | 1,500 | 4 | |||||||||||||
Receive | 3-month USD-LIBOR | 2.065 | 10/30/2020 | 5,500 | 128 | |||||||||||||
Pay | 3-month USD-LIBOR | 2.898 | 9/23/2023 | 5,000 | (68 | ) | ||||||||||||
Receive | 3-month USD-LIBOR | 2.80125 | 9/27/2023 | 2,500 | 55 | |||||||||||||
$ | 151 |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
2 | Coupon rate may change periodically. |
3 | Index-linked bond whose principal amount moves with a government price index. |
4 | A portion of this security was pledged as collateral. The total value of pledged collateral was $382,000, which represented .15% of the net assets of the fund. |
5 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $19,381,000, which represented 7.84% of the net assets of the fund. |
See Notes to Financial Statements
104 | American Funds Insurance Series |
U.S. Government/AAA-Rated Securities Fund
Summary investment portfolio December 31, 2013
Bonds, notes & other debt instruments 89.37% | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
U. S. Treasury bonds & notes 41.85% | ||||||||||||
U.S. Treasury 32.62% | ||||||||||||
2.625% 2014 | $ | 46,100 | $ | 46,771 | ||||||||
1.875% 2015 | 26,550 | 27,197 | ||||||||||
11.25% 2015 | 50,680 | 56,952 | ||||||||||
1.50% 20161 | 46,250 | 47,307 | ||||||||||
1.50% 2016 | 44,825 | 45,861 | ||||||||||
4.625% 2016 | 28,875 | 32,056 | ||||||||||
3.25% 2017 | 25,235 | 27,123 | ||||||||||
4.625% 2017 | 22,600 | 25,209 | ||||||||||
1.375% 2020 | 27,375 | 25,916 | 32.62 | % | ||||||||
1.625% 2022 | 113,298 | 102,119 | ||||||||||
1.625% 2022 | 59,028 | 53,550 | ||||||||||
1.75% 2023 | 37,425 | 33,674 | ||||||||||
2.00% 2023 | 55,789 | 51,666 | ||||||||||
2.50% 2023 | 171,500 | 164,398 | ||||||||||
2.75% 2023 | 121,750 | 118,906 | ||||||||||
2.875% 2043 | 51,050 | 41,211 | ||||||||||
3.625% 2043 | 70,350 | 66,178 | ||||||||||
0.25%–7.50% 2016–2043 | 135,670 | 142,662 | ||||||||||
1,108,756 | 32.62 | |||||||||||
U.S. Treasury inflation-protected securities2 9.23% | ||||||||||||
2.00% 2014 | 44,608 | 45,613 | ||||||||||
2.00% 2014 | 69,441 | 69,421 | ||||||||||
0.50% 2015 | 58,146 | 59,461 | 9.23 | |||||||||
0.625% 2043 | 121,019 | 93,004 | ||||||||||
0.125%–1.875% 2015–2023 | 45,793 | 46,295 | ||||||||||
313,794 | 9.23 | |||||||||||
Total U.S. Treasury bonds & notes | 1,422,550 | 41.85 | ||||||||||
Federal agency mortgage-backed obligations3 28.03% | ||||||||||||
Fannie Mae: | ||||||||||||
3.00% 2042 | 29,977 | 28,545 | ||||||||||
3.00% 2043 | 36,678 | 34,929 | ||||||||||
3.00% 2043 | 28,710 | 27,342 | ||||||||||
3.00% 2043 | 27,603 | 26,288 | 13.65 | |||||||||
3.00% 2044 | 77,350 | 73,452 | ||||||||||
4.50% 2044 | 72,600 | 76,948 | ||||||||||
0%–10.65% 2017–20444 | 194,529 | 196,396 | ||||||||||
Government National Mortgage Assn.: | ||||||||||||
5.50% 2040 | 26,899 | 30,241 | ||||||||||
4.00% 2043 | 57,694 | 60,141 | ||||||||||
4.50% 2043 | 27,508 | 29,468 | 6.77 | |||||||||
4.50% 2044 | 24,500 | 26,202 | ||||||||||
3.00%–6.50% 2026–20584 | 80,353 | 84,302 | ||||||||||
Freddie Mac: | ||||||||||||
4.00% 2044 | 38,000 | 39,036 | ||||||||||
0%–6.00% 2016–20434 | 169,336 | 171,080 | 6.18 | |||||||||
Vendee Mortgage Trust: | ||||||||||||
Series 2011-2, Class DA, 3.75% 2033 | 24,121 | 25,289 | ||||||||||
Series 2010-1, Class DA, 4.25% 2035 | 20,051 | 20,619 | 1.35 | |||||||||
Other securities | 2,676 | .08 | ||||||||||
952,954 | 28.03 |
American Funds Insurance Series | 105 |
U.S. Government/AAA-Rated Securities Fund
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
Federal agency bonds & notes 19.32% | ||||||||||||
Freddie Mac: | ||||||||||||
0.375% 2014 | $ | 26,550 | $ | 26,562 | ||||||||
Series K033, Class A2, multifamily 3.06% 20234 | 33,313 | 32,175 | ||||||||||
Series K032, Class A2, multifamily 3.31% 20234 | 28,000 | 27,632 | 7.67 | % | ||||||||
0.546%–3.607% 2014–20233,4 | 177,203 | 174,410 | ||||||||||
Federal Home Loan Bank: | ||||||||||||
5.50% 2014 | 31,410 | 32,439 | ||||||||||
0.375% 2015 | 34,750 | 34,767 | 4.62 | |||||||||
Series 2816, 1.00% 2017 | 56,095 | 55,990 | ||||||||||
0.625%–5.50% 2015–2036 | 33,795 | 33,948 | ||||||||||
United States Agency for International Development, Jordan (Kingdom of) 2.503% 2020 | | | 88,000 | | | | 86,187 | | | | 2.54 | |
Tennessee Valley Authority: | ||||||||||||
3.875% 2021 | 32,975 | 34,805 | 1.92 | |||||||||
1.875%–5.88% 2022–2060 | 31,625 | 30,528 | ||||||||||
Federal Farm Credit Banks: | ||||||||||||
1.625% 2014 | 18,500 | 18,724 | 1.76 | |||||||||
0.60% 2017 | 41,774 | 41,135 | ||||||||||
Fannie Mae 1.513%–7.125% 2017–20304 | 16,137 | 17,306 | .51 | |||||||||
Private Export Funding Corp. 1.45% 2019 | 4,750 | 4,549 | .14 | |||||||||
Other securities | 5,538 | .16 | ||||||||||
656,695 | 19.32 | |||||||||||
Bonds & notes of government agencies outside the U. S. 0.17% | ||||||||||||
Other securities | 5,633 | .17 | ||||||||||
Total bonds, notes & other debt instruments (cost: $3,087,266,000) | 3,037,832 | 89.37 | ||||||||||
Short-term securities 16.29% | ||||||||||||
Federal Farm Credit Banks 0.06%–0.15% due 2/10–8/11/2014 | 120,000 | 119,959 | 3.53 | |||||||||
Chevron Corp. 0.08%–0.10% due 2/19–3/12/20145 | 78,700 | 78,682 | 2.31 | |||||||||
National Rural Utilities Cooperative Finance Corp. 0.09%–0.10% due 1/16–2/7/2014 | 76,000 | 75,995 | 2.24 | |||||||||
Private Export Funding Corp. 0.10%–0.23% due 2/12–4/7/20145 | 70,600 | 70,581 | 2.08 | |||||||||
John Deere Financial Ltd. 0.08%–0.09% due 1/8–1/10/20145 | 56,200 | 56,199 | 1.65 | |||||||||
Coca-Cola Co. 0.16%–0.18% due 1/6–1/21/20145 | 30,700 | 30,699 | .90 | |||||||||
IBM Corp. 0.05% due 1/28/20145 | 27,400 | 27,399 | .81 | |||||||||
Tennessee Valley Authority 0.06% due 3/20/2014 | 27,300 | 27,295 | .80 | |||||||||
Other securities | 67,091 | 1.97 | ||||||||||
Total short-term securities (cost: $553,887,000) | 553,900 | 16.29 | ||||||||||
Total investment securities (cost: $3,641,153,000) | 3,591,732 | 105.66 | ||||||||||
Other assets less liabilities | (192,473 | ) | (5.66 | ) | ||||||||
Net assets | $ | 3,399,259 | 100.00 | % |
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, including securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities which were valued under fair value procedures was $965,000, which represented .03% of the net assets of the fund.
106 | American Funds Insurance Series |
U.S. Government/AAA-Rated Securities Fund
Interest rate swaps
The fund has entered into interest rate swaps as shown in the following table. The average notional amount of interest rate swaps was $142,500,000 over the prior three-month period.
Pay/receive floating rate | Floating rate index | Fixed rate | Expiration date | Notional amount (000) | Unrealized appreciation at 12/31/2013 (000) | |||||||||||||
Receive | 3-month USD-LIBOR | 1.49 | % | 11/29/2018 | $ | 25,000 | $ | 306 | ||||||||||
Receive | 3-month USD-LIBOR | 2.065 | 10/30/2020 | 82,500 | 1,920 | |||||||||||||
Receive | 3-month USD-LIBOR | 2.7343 | 11/22/2023 | 50,000 | 1,534 | |||||||||||||
Receive | 3-month USD-LIBOR | 2.74125 | 11/22/2023 | 15,000 | 451 | |||||||||||||
$ | 4,211 |
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 | A portion of this security was pledged as collateral. The total value of pledged collateral was $7,401,000, which represented .22% of the net assets of the fund. |
2 | Index-linked bond whose principal amount moves with a government price index. |
3 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
4 | Coupon rate may change periodically. |
5 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $317,249,000, which represented 9.33% of the net assets of the fund. |
See Notes to Financial Statements
American Funds Insurance Series | 107 |
Investment portfolio December 31, 2013
Short-term securities 99.65% | Principal amount (000) | Value (000) | Percent of net assets | |||||||||
Commercial paper 44.30% | ||||||||||||
Nestlé Capital Corp. 0.10% due 1/7/20141 | $ | 20,000 | $ | 20,000 | 4.35 | % | ||||||
Gotham Funding Corp. 0.16% due 1/6/20141 | 15,000 | 14,999 | ||||||||||
Victory Receivables Corp. 0.16% due 1/9/20141 | 5,000 | 5,000 | 4.35 | |||||||||
Merck & Co. Inc. 0.07% due 2/14/20141 | 19,000 | 18,998 | 4.13 | |||||||||
John Deere Financial Ltd. 0.08% due 1/29/20141 | 18,000 | 17,999 | 3.91 | |||||||||
Australia & New Zealand Banking Group, Ltd. 0.17% due 3/20/20141 | 17,200 | 17,195 | 3.74 | |||||||||
Paccar Financial Corp. 0.09% due 1/3/2014 | 16,900 | 16,900 | 3.67 | |||||||||
KfW 0.15% due 2/28/20141 | 13,400 | 13,399 | 2.91 | |||||||||
GlaxoSmithKline Finance PLC 0.11% due 1/6/20141 | 12,800 | 12,800 | 2.78 | |||||||||
Québec (Province of) 0.085%–0.10% due 1/21–2/10/20141 | 11,300 | 11,299 | 2.46 | |||||||||
Toyota Motor Credit Corp. 0.15% due 2/27/2014 | 11,200 | 11,198 | 2.43 | |||||||||
National Rural Utilities Cooperative Finance Corp. 0.09% due 1/8/2014 | 11,000 | 11,000 | 2.39 | |||||||||
Abbott Laboratories 0.11% due 1/3/20141 | 9,500 | 9,500 | 2.07 | |||||||||
Sumitomo Mitsui Banking Corp. 0.16% due 1/8/20141 | 9,200 | 9,200 | 2.00 | |||||||||
Mizuho Funding LLC 0.165% due 1/22/20141 | 8,400 | 8,399 | 1.83 | |||||||||
Army and Air Force Exchange Service 0.11% due 3/11/20141 | 4,000 | 3,999 | .87 | |||||||||
General Electric Capital Corp. 0.05% due 1/2/2014 | 1,900 | 1,900 | .41 | |||||||||
203,785 | 44.30 | |||||||||||
Federal agency discount notes 31.23% | ||||||||||||
Federal Home Loan Bank 0.05%–0.107% due 1/8–3/19/2014 | 107,463 | 107,456 | 23.36 | |||||||||
Freddie Mac 0.075%–0.13% due 2/24–3/11/2014 | 19,900 | 19,897 | 4.33 | |||||||||
Federal Farm Credit Banks 0.06% due 1/10/2014 | 10,000 | 10,000 | 2.17 | |||||||||
Fannie Mae 0.10% due 8/1/2014 | 6,300 | 6,296 | 1.37 | |||||||||
143,649 | 31.23 | |||||||||||
U.S. Treasuries 20.86% | ||||||||||||
U.S. Treasury Bills 0.032%–0.103% due 1/23–6/5/2014 | 96,000 | 95,988 | 20.86 | |||||||||
Discount notes 3.26% | ||||||||||||
International Bank for Reconstruction and Development 0.065% due 1/17/2014 | 15,000 | 14,999 | 3.26 | |||||||||
Total investment securities (cost: $458,408,000) | 458,421 | 99.65 | ||||||||||
Other assets less liabilities | 1,612 | .35 | ||||||||||
Net assets | $ | 460,033 | 100.00 | % |
1 | Acquired in a transaction exempt from registration under section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $162,787,000, which represented 35.39% of the net assets of the fund. |
See Notes to Financial Statements
108 | American Funds Insurance Series |
Investment portfolio December 31, 2013
Shares | Value (000) | Percent of net assets | ||||||||||
Growth fund 94.13% | ||||||||||||
American Funds Insurance Series – Growth Fund, Class 1 | 335,489 | $ | 26,349 | 94.13 | % | |||||||
Total growth fund (cost: $24,332,000) | 26,349 | 94.13 | ||||||||||
Short-term securities 5.21% | ||||||||||||
Government Cash Management Fund | 1,459,936 | 1,460 | 5.21 | |||||||||
Total short-term securities (cost: $1,460,000) | 1,460 | 5.21 | ||||||||||
Total investment securities (cost: $25,792,000) | 27,809 | 99.34 | ||||||||||
Other assets less liabilities | 184 | .66 | ||||||||||
Net assets | $ | 27,993 | 100.00 | % |
Futures contracts
The fund did not hold any futures contracts as of December 31, 2013. The average month-end notional amount of open futures contracts while held was $1,371,000 during the period May 1, 2013, commencement of operations, to December 31, 2013.
See Notes to Financial Statements
American Funds Insurance Series | 109 |
Managed Risk International Fund
Investment portfolio December 31, 2013
Shares | Value (000) | Percent of net assets | ||||||||||
Growth fund 93.21% | ||||||||||||
American Funds Insurance Series – International Fund, Class 1 | 741,709 | $ | 15,739 | 93.21 | % | |||||||
Total growth fund (cost: $14,596,000) | 15,739 | 93.21 | ||||||||||
Short-term securities 6.26% | ||||||||||||
Government Cash Management Fund | 1,057,747 | 1,058 | 6.26 | |||||||||
Total short-term securities (cost: $1,058,000) | 1,058 | 6.26 | ||||||||||
Total investment securities (cost: $15,654,000) | 16,797 | 99.47 | ||||||||||
Other assets less liabilities | 89 | .53 | ||||||||||
Net assets | $ | 16,886 | 100.00 | % |
Futures contracts
The fund did not hold any futures contracts as of December 31, 2013. The average month-end notional amount of open futures contracts while held was $2,815,000 during the period May 1, 2013, commencement of operations, to December 31, 2013.
See Notes to Financial Statements
110 | American Funds Insurance Series |
Managed Risk Blue Chip Income and Growth Fund
Investment portfolio December 31, 2013
Shares | Value (000) | Percent of net assets | ||||||||||
Growth-and-income fund 94.41% | ||||||||||||
American Funds Insurance Series – Blue Chip Income and Growth Fund, Class 1 | 1,896,886 | $ | 24,887 | 94.41 | % | |||||||
Total growth-and-income fund (cost: $23,016,000) | 24,887 | 94.41 | ||||||||||
Short-term securities 5.14% | ||||||||||||
Government Cash Management Fund | 1,353,973 | 1,354 | 5.14 | |||||||||
Total short-term securities (cost: $1,354,000) | 1,354 | 5.14 | ||||||||||
Total investment securities (cost: $24,370,000) | 26,241 | 99.55 | ||||||||||
Other assets less liabilities | 118 | .45 | ||||||||||
Net assets | $ | 26,359 | 100.00 | % |
Futures contracts
The fund did not hold any futures contracts as of December 31, 2013. The average month-end notional amount of open futures contracts while held was $2,080,000 during the period May 1, 2013, commencement of operations, to December 31, 2013.
See Notes to Financial Statements
American Funds Insurance Series | 111 |
Managed Risk Growth-Income Fund
Investment portfolio December 31, 2013
Shares | Value (000) | Percent of net assets | ||||||||||
Growth-and-income fund 94.30% | ||||||||||||
American Funds Insurance Series – Growth-Income Fund, Class 1 | 449,118 | $ | 22,779 | 94.30 | % | |||||||
Total growth-and-income fund (cost: $20,782,000) | 22,779 | 94.30 | ||||||||||
Short-term securities 5.42% | ||||||||||||
Government Cash Management Fund | 1,308,599 | 1,309 | 5.42 | |||||||||
Total short-term securities (cost: $1,309,000) | 1,309 | 5.42 | ||||||||||
Total investment securities (cost: $22,091,000) | 24,088 | 99.72 | ||||||||||
Other assets less liabilities | 67 | .28 | ||||||||||
Net assets | $ | 24,155 | 100.00 | % |
Futures contracts
The fund did not hold any futures contracts as of December 31, 2013. The average month-end notional amount of open futures contracts while held was $1,051,000 during the period May 1, 2013, commencement of operations, to December 31, 2013.
See Notes to Financial Statements
112 | American Funds Insurance Series |
Managed Risk Asset Allocation Fund (formerly Protected Asset Allocation Fund)
Investment portfolio December 31, 2013
Shares | Value (000) | Percent of net assets | ||||||||||
Asset allocation fund 93.48% | ||||||||||||
American Funds Insurance Series – Asset Allocation Fund, Class 1* | 37,702,567 | $ | 847,930 | 93.48 | % | |||||||
Total asset allocation fund (cost: $792,975,000) | 847,930 | 93.48 | ||||||||||
Short-term securities 6.08% | ||||||||||||
Government Cash Management Fund | 55,166,587 | 55,167 | 6.08 | |||||||||
Total short-term securities (cost: $55,167,000) | 55,167 | 6.08 | ||||||||||
Total investment securities (cost: $848,142,000) | 903,097 | 99.56 | ||||||||||
Other assets less liabilities | 3,973 | .44 | ||||||||||
Net assets | $ | 907,070 | 100.00 | % |
* | American Funds Insurance Series - Asset Allocation Fund is considered to be an affiliate of the fund under the Investment Company Act of 1940 since the fund holds 5% or more of its outstanding voting shares. Further details on this holding and related transactions during the year ended December 31, 2013, appear below. |
Beginning shares | Additions | Reductions | Ending shares | Dividend income (000) | Value of affiliate at 12/31/2013 (000) | |||||||||||||||||||
American Funds Insurance Series - Asset Allocation Fund, Class 1 | 1,670,848 | 36,448,708 | 416,989 | 37,702,567 | $ | 10,534 | $ | 847,930 |
Futures contracts
The fund did not hold any futures contracts as of December 31, 2013. The average month-end notional amount of open futures contracts while held was $27,694,000 over the prior 12-month period.
See Notes to Financial Statements
American Funds Insurance Series | 113 |
Statements of assets and liabilities
at December 31, 2013
Global Growth Fund | Global Small Capitalization Fund | Growth Fund | International Fund | New World Fund | ||||||||||||||||
Assets: | ||||||||||||||||||||
Investment securities, at value: | ||||||||||||||||||||
Unaffiliated issuers | $ | 5,909,090 | $ | 4,102,472 | $ | 23,353,610 | $ | 9,291,931 | $ | 2,696,062 | ||||||||||
Affiliated issuers | — | 94,719 | 250,971 | — | — | |||||||||||||||
Cash denominated in currencies other than U.S. dollars | 10 | 536 | — | — | * | 22 | ||||||||||||||
Cash | 57 | 85 | 80 | 132 | 134 | |||||||||||||||
Unrealized appreciation on open forward currency contracts | 5,270 | 496 | — | 5,061 | 878 | |||||||||||||||
Receivables for: | ||||||||||||||||||||
Sales of investments | 826 | 4,967 | 4,279 | 516 | 214 | |||||||||||||||
Sales of fund’s shares | 1,683 | 1,814 | 3,525 | 5,994 | 3,583 | |||||||||||||||
Closed forward currency contracts | — | — | — | — | — | |||||||||||||||
Dividends and interest | 8,656 | 2,233 | 19,329 | 12,779 | 8,381 | |||||||||||||||
Variation margin on interest rate swaps | — | — | — | — | — | |||||||||||||||
Other | — | — | — | — | 107 | |||||||||||||||
5,925,592 | 4,207,322 | 23,631,794 | 9,316,413 | 2,709,381 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Unrealized depreciation on open forward currency contracts | — | 36 | — | 121 | 38 | |||||||||||||||
Payables for: | ||||||||||||||||||||
Purchases of investments | 1,331 | 2,039 | 7,615 | 908 | — | |||||||||||||||
Repurchases of fund’s shares | 32,487 | 1,802 | 55,413 | 21,451 | 1,153 | |||||||||||||||
Closed forward currency contracts | — | — | — | — | — | |||||||||||||||
Investment advisory services | 2,549 | 2,446 | 6,417 | 3,820 | 1,626 | |||||||||||||||
Distribution services | 912 | 619 | 3,441 | 1,238 | 275 | |||||||||||||||
Insurance administrative services | — | * | 2 | 2 | 1 | 4 | ||||||||||||||
Administrative services | 49 | 35 | 197 | 77 | 22 | |||||||||||||||
Trustees’ deferred compensation | 43 | 26 | 448 | 202 | 15 | |||||||||||||||
Non-U.S. taxes | — | — | — | 705 | 2,970 | |||||||||||||||
Variation margin on interest rate swaps | — | — | — | — | — | |||||||||||||||
Other | 49 | 47 | 62 | 121 | 93 | |||||||||||||||
37,420 | 7,052 | 73,595 | 28,644 | 6,196 | ||||||||||||||||
Net assets at December 31, 2013 | $ | 5,888,172 | $ | 4,200,270 | $ | 23,558,199 | $ | 9,287,769 | $ | 2,703,185 | ||||||||||
Net assets consist of: | ||||||||||||||||||||
Capital paid in on shares of beneficial interest | $ | 3,464,344 | $ | 3,032,271 | $ | 12,314,484 | $ | 7,070,062 | $ | 1,939,464 | ||||||||||
Undistributed (distributions in excess of) net investment income | 3,114 | (23,219 | ) | 33,372 | (35,174 | ) | (12,241 | ) | ||||||||||||
Undistributed (accumulated) net realized gain (loss) | 559,294 | 17,683 | 949,847 | (402,975 | ) | 264,161 | ||||||||||||||
Net unrealized appreciation | 1,861,420 | 1,173,535 | 10,260,496 | 2,655,856 | 511,801 | |||||||||||||||
Net assets at December 31, 2013 | $ | 5,888,172 | $ | 4,200,270 | $ | 23,558,199 | $ | 9,287,769 | $ | 2,703,185 | ||||||||||
Investment securities, at cost: | ||||||||||||||||||||
Unaffiliated issuers | $ | 4,053,059 | $ | 2,895,583 | $ | 13,137,003 | $ | 6,640,664 | $ | 2,182,143 | ||||||||||
Affiliated issuers | — | 128,519 | 207,177 | — | — | |||||||||||||||
Cash denominated in currencies other than U.S. dollars, at cost | 10 | 536 | — | — | * | 22 |
See end of Statements of Assets & Liabilities for footnote.
See Notes to Financial Statements
114 | American Funds Insurance Series |
(dollars and shares in thousands, except per-share amounts)
Blue Chip Income and Growth Fund | Global Growth and Income Fund | Growth- Income Fund | International Growth and Income Fund | Asset Allocation Fund | Global Balanced Fund | Bond Fund | Global Bond Fund | High- Income Bond Fund | ||||||||||||||||||||||||||
$ | 6,598,563 | $ | 2,002,664 | $ | 25,062,653 | $ | 954,444 | $ | 16,539,710 | $ | 191,585 | $ | 9,745,653 | $ | 2,583,541 | $ | 1,908,182 | |||||||||||||||||
— | 12,385 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
— | — | — | 32 | — | — | — | — | — | ||||||||||||||||||||||||||
115 | 107 | 61 | 134 | 615 | 85 | 411 | 130 | 1,362 | ||||||||||||||||||||||||||
— | 58 | 789 | — | — | 36 | 6 | 1,248 | — | ||||||||||||||||||||||||||
9,799 | 10,797 | 32,891 | 1,617 | 453 | 2,548 | 939,236 | 52,662 | 255 | ||||||||||||||||||||||||||
3,085 | 480 | 9,328 | 141 | 20,906 | 27 | 13,618 | 5,124 | 2,182 | ||||||||||||||||||||||||||
— | — | — | — | — | — | — | 145 | — | ||||||||||||||||||||||||||
14,884 | 7,225 | 32,144 | 2,542 | 42,770 | 954 | 67,862 | 34,363 | 33,432 | ||||||||||||||||||||||||||
— | — | — | — | — | — | 310 | — | — | ||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | 255 | ||||||||||||||||||||||||||
6,626,446 | 2,033,716 | 25,137,866 | 958,910 | 16,604,454 | 195,235 | 10,767,096 | 2,677,213 | 1,945,668 | ||||||||||||||||||||||||||
— | — | 177 | — | — | 59 | 1,655 | 4,643 | 24 | ||||||||||||||||||||||||||
44,490 | 1,526 | 16,310 | 3,568 | 273,022 | 2,675 | 1,485,377 | 81,124 | 5,954 | ||||||||||||||||||||||||||
9,797 | 2,039 | 78,525 | 420 | 8,431 | 217 | 3,857 | 532 | 2,733 | ||||||||||||||||||||||||||
— | — | — | — | — | 5 | 72 | 571 | — | ||||||||||||||||||||||||||
2,190 | 1,003 | 5,600 | 512 | 3,802 | 106 | 2,883 | 1,159 | 757 | ||||||||||||||||||||||||||
785 | 378 | 3,155 | 53 | 1,213 | 32 | 1,014 | 318 | 228 | ||||||||||||||||||||||||||
— | * | — | * | 1 | — | * | — | * | — | 1 | — | * | — | * | ||||||||||||||||||||
55 | 17 | 209 | 8 | 136 | 2 | 79 | 22 | 16 | ||||||||||||||||||||||||||
32 | 12 | 510 | 2 | 148 | — | * | 61 | 11 | 50 | |||||||||||||||||||||||||
— | — | — | 25 | — | — | — | — | — | ||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
1 | 19 | 25 | 15 | 9 | 2 | 12 | 43 | 272 | ||||||||||||||||||||||||||
57,350 | 4,994 | 104,512 | 4,603 | 286,761 | 3,098 | 1,495,011 | 88,423 | 10,034 | ||||||||||||||||||||||||||
$ | 6,569,096 | $ | 2,028,722 | $ | 25,033,354 | $ | 954,307 | $ | 16,317,693 | $ | 192,137 | $ | 9,272,085 | $ | 2,588,790 | $ | 1,935,634 | |||||||||||||||||
$ | 4,686,909 | $ | 1,845,616 | $ | 14,742,299 | $ | 817,010 | $ | 11,272,316 | $ | 166,792 | $ | 9,222,496 | $ | 2,538,299 | $ | 1,981,043 | |||||||||||||||||
27,211 | (1,984 | ) | 57,175 | (3,866 | ) | 44,514 | (344 | ) | 33,731 | 6,522 | 16,443 | |||||||||||||||||||||||
(27,423 | ) | (269,806 | ) | 1,190,527 | 7,224 | 805,342 | 1,548 | (5,703 | ) | 22,556 | (126,113 | ) | ||||||||||||||||||||||
1,882,399 | 454,896 | 9,043,353 | 133,939 | 4,195,521 | 24,141 | 21,561 | 21,413 | 64,261 | ||||||||||||||||||||||||||
$ | 6,569,096 | $ | 2,028,722 | $ | 25,033,354 | $ | 954,307 | $ | 16,317,693 | $ | 192,137 | $ | 9,272,085 | $ | 2,588,790 | $ | 1,935,634 | |||||||||||||||||
$ | 4,716,168 | $ | 1,539,135 | $ | 16,020,037 | $ | 820,535 | $ | 12,344,220 | $ | 167,426 | $ | 9,722,908 | $ | 2,559,120 | $ | 1,843,923 | |||||||||||||||||
— | 21,133 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
— | — | — | 32 | — | — | — | — | — |
American Funds Insurance Series | 115 |
Statements of assets and liabilities
at December 31, 2013
Mortgage Fund | U.S. Government/ AAA-Rated Securities Fund | Cash Management Fund | Managed Risk Growth Fund | Managed Risk International Fund | ||||||||||||||||
Assets: | ||||||||||||||||||||
Investment securities, at value: | ||||||||||||||||||||
Unaffiliated issuers | $ | 260,717 | $ | 3,591,732 | $ | 458,421 | $ | 27,809 | $ | 16,797 | ||||||||||
Affiliated issuers | — | — | — | — | — | |||||||||||||||
Cash denominated in currencies other than U.S. dollars | — | — | — | — | — | |||||||||||||||
Cash | 54 | 136 | 104 | 11 | 7 | |||||||||||||||
Unrealized appreciation on open forward currency contracts | — | — | — | — | — | |||||||||||||||
Receivables for: | ||||||||||||||||||||
Sales of investments | 50,321 | 337,057 | — | — | — | |||||||||||||||
Sales of fund’s shares | 731 | 2,688 | 2,390 | 1,080 | 139 | |||||||||||||||
Closed forward currency contracts | — | — | — | — | — | |||||||||||||||
Dividends and interest | 829 | 16,480 | — | — | * | — | * | |||||||||||||
Variation margin on interest rate swaps | — | 607 | — | — | — | |||||||||||||||
Other | — | — | — | — | — | |||||||||||||||
312,652 | 3,948,700 | 460,915 | 28,900 | 16,943 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Unrealized depreciation on open forward currency contracts | — | — | — | — | — | |||||||||||||||
Payables for: | ||||||||||||||||||||
Purchases of investments | 65,125 | 547,483 | — | 890 | 47 | |||||||||||||||
Repurchases of fund’s shares | 116 | 526 | 644 | — | * | — | * | |||||||||||||
Closed forward currency contracts | — | — | — | — | — | |||||||||||||||
Investment advisory services | 87 | 964 | 127 | 4 | 3 | |||||||||||||||
Distribution services | 10 | 387 | 87 | 4 | 2 | |||||||||||||||
Insurance administrative services | — | — | * | — | 9 | 5 | ||||||||||||||
Administrative services | 2 | 29 | 4 | — | — | |||||||||||||||
Trustees’ deferred compensation | — | * | 51 | 20 | — | * | — | * | ||||||||||||
Non-U.S. taxes | — | — | — | — | — | |||||||||||||||
Variation margin on interest rate swaps | 24 | — | — | — | — | |||||||||||||||
Other | — | * | 1 | — | — | * | — | * | ||||||||||||
65,364 | 549,441 | 882 | 907 | 57 | ||||||||||||||||
Net assets at December 31, 2013 | $ | 247,288 | $ | 3,399,259 | $ | 460,033 | $ | 27,993 | $ | 16,886 | ||||||||||
Net assets consist of: | ||||||||||||||||||||
Capital paid in on shares of beneficial interest | $ | 250,763 | $ | 3,458,308 | $ | 460,040 | $ | 26,100 | $ | 15,980 | ||||||||||
Undistributed (accumulated) net investment income (loss) | 11 | 6,797 | (20 | ) | 2 | 6 | ||||||||||||||
Accumulated net realized loss | (2,328 | ) | (20,636 | ) | — | (126 | ) | (243 | ) | |||||||||||
Net unrealized (depreciation) appreciation | (1,158 | ) | (45,210 | ) | 13 | 2,017 | 1,143 | |||||||||||||
Net assets at December 31, 2013 | $ | 247,288 | $ | 3,399,259 | $ | 460,033 | $ | 27,993 | $ | 16,886 | ||||||||||
Investment securities, at cost: | ||||||||||||||||||||
Unaffiliated issuers | $ | 262,026 | $ | 3,641,153 | $ | 458,408 | $ | 25,792 | $ | 15,654 | ||||||||||
Affiliated issuers | — | — | — | — | — | |||||||||||||||
Cash denominated in currencies other than U.S. dollars, at cost | — | — | — | — | — |
See end of Statements of Assets & Liabilities for footnote.
See Notes to Financial Statements
116 | American Funds Insurance Series |
(dollars and shares in thousands, except per-share amounts)
Managed Risk Blue Chip Income and Growth Fund | Managed Risk Growth- Income Fund | Managed Risk Asset Allocation Fund (formerly Protected Asset Allocation Fund) | ||||||||
$ | 26,241 | $ | 24,088 | $ | 55,167 | |||||
— | — | 847,930 | ||||||||
— | — | — | ||||||||
17 | 5 | 399 | ||||||||
— | — | — | ||||||||
— | — | — | ||||||||
365 | 137 | 11,155 | ||||||||
— | — | — | ||||||||
— | * | — | * | — | * | |||||
— | — | — | ||||||||
— | — | — | ||||||||
26,623 | 24,230 | 914,651 | ||||||||
— | — | — | ||||||||
246 | 58 | 6,844 | ||||||||
— | * | 3 | — | * | ||||||
— | — | — | ||||||||
4 | 3 | 140 | ||||||||
4 | 3 | 154 | ||||||||
10 | 8 | 442 | ||||||||
— | — | — | ||||||||
— | * | — | * | — | * | |||||
— | — | — | ||||||||
— | — | — | ||||||||
— | * | — | * | 1 | ||||||
264 | 75 | 7,581 | ||||||||
$ | 26,359 | $ | 24,155 | $ | 907,070 | |||||
$ | 24,741 | $ | 22,332 | $ | 852,158 | |||||
4 | 3 | 89 | ||||||||
(257 | ) | (177 | ) | (132 | ) | |||||
1,871 | 1,997 | 54,955 | ||||||||
$ | 26,359 | $ | 24,155 | $ | 907,070 | |||||
$ | 24,370 | $ | 22,091 | $ | 55,167 | |||||
— | — | 792,975 | ||||||||
— | — | — |
American Funds Insurance Series | 117 |
Statements of assets and liabilities
at December 31, 2013
Global Growth Fund | Global Small Capitalization Fund | Growth Fund | International Fund | New World Fund | ||||||||||||||||
Shares of beneficial interest issued and outstanding (no stated par value) — unlimited shares authorized: | ||||||||||||||||||||
Class 1: | ||||||||||||||||||||
Net assets | $ | 1,507,830 | $ | 1,240,824 | $ | 7,002,863 | $ | 3,324,213 | $ | 1,387,588 | ||||||||||
Shares outstanding | 50,078 | 48,309 | 89,165 | 156,636 | 55,330 | |||||||||||||||
Net asset value per share | $ | 30.11 | $ | 25.69 | $ | 78.54 | $ | 21.22 | $ | 25.08 | ||||||||||
Class 2: | ||||||||||||||||||||
Net assets | $ | 4,379,515 | $ | 2,955,577 | $ | 16,334,531 | $ | 5,915,296 | $ | 1,307,231 | ||||||||||
Shares outstanding | 146,355 | 117,035 | 209,580 | 279,697 | 52,538 | |||||||||||||||
Net asset value per share | $ | 29.92 | $ | 25.25 | $ | 77.94 | $ | 21.15 | $ | 24.88 | ||||||||||
Class 3: | ||||||||||||||||||||
Net assets | $ | 215,972 | $ | 46,129 | ||||||||||||||||
Shares outstanding | 2,747 | 2,172 | ||||||||||||||||||
Net asset value per share | $ | 78.62 | $ | 21.24 | ||||||||||||||||
Class 4: | ||||||||||||||||||||
Net assets | $ | 827 | $ | 3,869 | $ | 4,833 | $ | 2,131 | $ | 8,366 | ||||||||||
Shares outstanding | 28 | 151 | 62 | 101 | 335 | |||||||||||||||
Net asset value per share | $ | 30.07 | $ | 25.57 | $ | 78.32 | $ | 21.16 | $ | 24.99 |
Mortgage Fund | U.S. Government/ AAA-Rated Securities Fund | Cash Management Fund | Managed Risk Growth Fund | Managed Risk International Fund | ||||||||||||||||
Shares of beneficial interest issued and outstanding (no stated par value) — unlimited shares authorized: | ||||||||||||||||||||
Class 1: | ||||||||||||||||||||
Net assets | $ | 198,280 | $ | 1,583,610 | $ | 56,949 | ||||||||||||||
Shares outstanding | 19,380 | 132,631 | 5,034 | |||||||||||||||||
Net asset value per share | $ | 10.23 | $ | 11.94 | $ | 11.31 | ||||||||||||||
Class 2: | ||||||||||||||||||||
Net assets | $ | 49,007 | $ | 1,800,816 | $ | 395,105 | ||||||||||||||
Shares outstanding | 4,796 | 152,265 | 35,539 | |||||||||||||||||
Net asset value per share | $ | 10.22 | $ | 11.83 | $ | 11.12 | ||||||||||||||
Class 3: | ||||||||||||||||||||
Net assets | $ | 14,409 | $ | 7,978 | ||||||||||||||||
Shares outstanding | 1,205 | 712 | ||||||||||||||||||
Net asset value per share | $ | 11.96 | $ | 11.21 | ||||||||||||||||
Class 4: | ||||||||||||||||||||
Net assets | $ | 1 | $ | 424 | $ | 1 | ||||||||||||||
Shares outstanding | — | * | 36 | — | * | |||||||||||||||
Net asset value per share | $ | 10.23 | $ | 11.93 | $ | 11.30 | ||||||||||||||
Class P1: | ||||||||||||||||||||
Net assets | $ | 166 | $ | 109 | ||||||||||||||||
Shares outstanding | 15 | 10 | ||||||||||||||||||
Net asset value per share | $ | 11.43 | $ | 10.82 | ||||||||||||||||
Class P2: | ||||||||||||||||||||
Net assets | $ | 27,827 | $ | 16,777 | ||||||||||||||||
Shares outstanding | 2,435 | 1,551 | ||||||||||||||||||
Net asset value per share | $ | 11.43 | $ | 10.82 |
*Amount less than one thousand.
See Notes to Financial Statements
118 | American Funds Insurance Series |
(dollars and shares in thousands, except per-share amounts)
Blue Chip Income and Growth Fund | Global Growth and Income Fund | Growth- Income Fund | International Growth and Income Fund | Asset Allocation Fund | Global Balanced Fund | Bond Fund | Global Bond Fund | High- Income Bond Fund | ||||||||||||||||||||||||||
$ | 2,814,114 | $ | 206,296 | $ | 9,856,930 | $ | 695,923 | $ | 10,515,246 | $ | 35,991 | $ | 4,506,310 | $ | 1,092,964 | $ | 855,588 | |||||||||||||||||
214,457 | 16,460 | 194,343 | 39,816 | 467,534 | 3,167 | 420,020 | 91,963 | 76,861 | ||||||||||||||||||||||||||
$ | 13.12 | $ | 12.53 | $ | 50.72 | $ | 17.48 | $ | 22.49 | $ | 11.37 | $ | 10.73 | $ | 11.88 | $ | 11.13 | |||||||||||||||||
$ | 3,754,876 | $ | 1,821,868 | $ | 14,979,895 | $ | 257,682 | $ | 5,759,499 | $ | 156,145 | $ | 4,762,821 | $ | 1,495,815 | $ | 1,060,962 | |||||||||||||||||
288,429 | 145,665 | 297,224 | 14,782 | 257,941 | 13,757 | 448,988 | 126,706 | 96,521 | ||||||||||||||||||||||||||
$ | 13.02 | $ | 12.51 | $ | 50.40 | $ | 17.43 | $ | 22.33 | $ | 11.35 | $ | 10.61 | $ | 11.81 | $ | 10.99 | |||||||||||||||||
$ | 193,255 | $ | 42,452 | $ | 18,990 | |||||||||||||||||||||||||||||
3,807 | 1,886 | 1,702 | ||||||||||||||||||||||||||||||||
$ | 50.77 | $ | 22.51 | $ | 11.16 | |||||||||||||||||||||||||||||
$ | 106 | $ | 558 | $ | 3,274 | $ | 702 | $ | 496 | $ | 1 | $ | 2,954 | $ | 11 | $ | 94 | |||||||||||||||||
8 | 45 | 65 | 40 | 22 | — | * | 276 | 1 | 8 | |||||||||||||||||||||||||
$ | 13.12 | $ | 12.50 | $ | 50.56 | $ | 17.45 | $ | 22.46 | $ | 11.35 | $ | 10.69 | $ | 11.87 | $ | 11.12 |
Managed Risk Blue Chip Income and Growth Fund | Managed Risk Growth- Income Fund | Managed Risk Asset Allocation Fund (formerly Protected Asset Allocation Fund) | ||||||||||||||||||||||||||||||||
$ | 124 | $ | 123 | $ | 112,037 | |||||||||||||||||||||||||||||
11 | 11 | 9,388 | ||||||||||||||||||||||||||||||||
$ | 11.05 | $ | 11.50 | $ | 11.93 | |||||||||||||||||||||||||||||
$ | 26,235 | $ | 24,032 | $ | 795,033 | |||||||||||||||||||||||||||||
2,375 | 2,090 | 66,648 | ||||||||||||||||||||||||||||||||
$ | 11.05 | $ | 11.50 | $ | 11.93 |
American Funds Insurance Series | 119 |
Statements of operations
for the year ended December 31, 2013
Global Growth Fund | Global Small Capitalization Fund | Growth Fund | International Fund | New World Fund | ||||||||||||||||
Investment income: | ||||||||||||||||||||
Income (net of non-U.S. taxes)1,2: | ||||||||||||||||||||
Dividends | $ | 96,394 | $ | 35,638 | $ | 288,623 | $ | 173,785 | $ | 43,679 | ||||||||||
Interest | 449 | 467 | 1,389 | 1,083 | 14,246 | |||||||||||||||
96,843 | 36,105 | 290,012 | 174,868 | 57,925 | ||||||||||||||||
Fees and expenses3: | ||||||||||||||||||||
Investment advisory services | 29,493 | 27,187 | 73,985 | 44,541 | 18,795 | |||||||||||||||
Distribution services | 10,071 | 6,983 | 39,334 | 14,039 | 3,301 | |||||||||||||||
Insurance administrative services | — | 4 | 2 | 4 | 2 | 5 | ||||||||||||||
Transfer agent services | 1 | — | 4 | 2 | 1 | — | 4 | |||||||||||||
Administrative services | 565 | 388 | 2,260 | 901 | 259 | |||||||||||||||
Accounting and administrative services | — | — | — | — | — | |||||||||||||||
Reports to shareholders | 240 | 165 | 1,070 | 423 | 112 | |||||||||||||||
Registration statement and prospectus | 63 | 72 | 349 | 72 | 23 | |||||||||||||||
Trustees’ compensation | 67 | 45 | 331 | 136 | 30 | |||||||||||||||
Auditing and legal | 59 | 45 | 156 | 93 | 41 | |||||||||||||||
Custodian | 640 | 828 | 820 | 2,312 | 968 | |||||||||||||||
State and local taxes | 27 | 23 | 78 | 41 | 16 | |||||||||||||||
Other | 9 | 6 | 30 | 13 | 6 | |||||||||||||||
Total fees and expenses before reimbursement/waiver | 41,235 | 35,744 | 118,419 | 62,574 | 23,556 | |||||||||||||||
Less reimbursement/waiver of fees and expenses: | ||||||||||||||||||||
Investment advisory services | — | — | — | — | — | |||||||||||||||
Other | — | — | — | — | — | |||||||||||||||
Total reimbursement/waiver of fees and expenses | — | — | — | — | — | |||||||||||||||
Total fees and expenses after reimbursement/waiver | 41,235 | 35,744 | 118,419 | 62,574 | 23,556 | |||||||||||||||
Net investment income | 55,608 | 361 | 171,593 | 112,294 | 34,369 | |||||||||||||||
Net realized gain (loss) and unrealized appreciation (depreciation) on investments, forward currency contracts, interest rate swaps, futures contracts and currency: | ||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||
Investments2 | 923,133 | 473,896 | 2,731,845 | 918,982 | 265,820 | |||||||||||||||
Forward currency contracts | 7,558 | (817 | ) | — | (11,901 | ) | 1,740 | |||||||||||||
Interest rate swaps | — | — | — | — | — | |||||||||||||||
Futures contracts | — | — | — | — | — | |||||||||||||||
Currency transactions | (847 | ) | (376 | ) | (4,522 | ) | (1,811 | ) | (2,489 | ) | ||||||||||
929,844 | 472,703 | 2,727,323 | 905,270 | 265,071 | ||||||||||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||||||||||
Investments | 519,485 | 493,888 | 3,086,846 | 748,524 | (14,981 | ) | ||||||||||||||
Forward currency contracts | 5,270 | 448 | — | 8,074 | 945 | |||||||||||||||
Interest rate swaps | — | — | — | — | — | |||||||||||||||
Futures contracts | — | — | — | — | — | |||||||||||||||
Currency translations | 136 | (21 | ) | 97 | 539 | 17 | ||||||||||||||
524,891 | 494,315 | 3,086,943 | 757,137 | (14,019 | ) | |||||||||||||||
Net realized gain (loss) and unrealized appreciation (depreciation) on investments, forward currency contracts, interest rate swaps, futures contracts and currency | 1,454,735 | 967,018 | 5,814,266 | 1,662,407 | 251,052 | |||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 1,510,343 | $ | 967,379 | $ | 5,985,859 | $ | 1,774,701 | $ | 285,421 |
See end of Statements of Operations for footnotes.
See Notes to Financial Statements
120 | American Funds Insurance Series |
(dollars in thousands)
Blue Chip Income and Growth Fund | Global Growth and Income Fund | Growth- Income Fund | International Growth and Income Fund | Asset Allocation Fund | Global Balanced Fund | Bond Fund | Global Bond Fund | High- Income Bond Fund | ||||||||||||||||||||||||||
$ | 159,215 | $ | 76,679 | $ | 412,197 | $ | 26,921 | $ | 193,809 | $ | 3,279 | $ | 202 | $ | 37 | $ | 587 | |||||||||||||||||
431 | 3,311 | 8,022 | 1,318 | 94,603 | 1,402 | 211,826 | 77,586 | 133,808 | ||||||||||||||||||||||||||
159,646 | 79,990 | 420,219 | 28,239 | 288,412 | 4,681 | 212,028 | 77,623 | 134,395 | ||||||||||||||||||||||||||
23,881 | 12,017 | 63,617 | 5,556 | 40,668 | 1,127 | 32,622 | 13,959 | 8,860 | ||||||||||||||||||||||||||
8,994 | 4,566 | 35,740 | 607 | 13,867 | 343 | 12,090 | 3,918 | 2,754 | ||||||||||||||||||||||||||
— | 4 | — | 4 | 2 | — | 4 | — | 4 | — | 2 | — | 4 | — | 4 | ||||||||||||||||||||
— | 4 | — | 4 | 2 | — | 4 | 1 | — | 4 | 1 | — | 4 | — | 4 | ||||||||||||||||||||
593 | 202 | 2,356 | 86 | 1,427 | 17 | 884 | 265 | 191 | ||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
129 | 42 | 1,132 | 9 | 951 | 2 | 379 | 61 | 69 | ||||||||||||||||||||||||||
17 | 9 | 323 | 26 | 155 | 9 | 80 | 52 | 28 | ||||||||||||||||||||||||||
63 | 24 | 356 | 6 | 173 | 2 | 109 | 31 | 31 | ||||||||||||||||||||||||||
39 | 21 | 161 | 9 | 97 | 2 | 60 | 18 | 13 | ||||||||||||||||||||||||||
126 | 259 | 461 | 228 | 242 | 31 | 63 | 470 | 15 | ||||||||||||||||||||||||||
18 | 11 | 66 | 2 | 35 | — | 4 | 31 | 12 | 9 | |||||||||||||||||||||||||
7 | 4 | 31 | 1 | 18 | 5 | 19 | 14 | 9 | ||||||||||||||||||||||||||
33,867 | 17,155 | 104,247 | 6,530 | 57,634 | 1,538 | 46,340 | 18,800 | 11,979 | ||||||||||||||||||||||||||
— | — | — | — | 77 | — | — | — | — | ||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
— | — | — | — | 77 | — | — | — | — | ||||||||||||||||||||||||||
33,867 | 17,155 | 104,247 | 6,530 | 57,557 | 1,538 | 46,340 | 18,800 | 11,979 | ||||||||||||||||||||||||||
125,779 | 62,835 | 315,972 | 21,709 | 230,855 | 3,143 | 165,688 | 58,823 | 122,416 | ||||||||||||||||||||||||||
481,198 | 267,304 | 2,959,426 | 34,867 | 823,842 | 4,275 | 9,921 | 11,776 | 15,871 | ||||||||||||||||||||||||||
— | — | 672 | — | — | (357 | ) | — | (42,007 | ) | — | ||||||||||||||||||||||||
— | — | — | — | — | — | (21 | ) | — | — | |||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
— | (35 | ) | (207 | ) | (254 | ) | 1,275 | (79 | ) | (1,570 | ) | (790 | ) | (765 | ) | |||||||||||||||||||
481,198 | 267,269 | 2,959,891 | 34,613 | 825,117 | 3,839 | 8,330 | (31,021 | ) | 15,106 | |||||||||||||||||||||||||
1,061,020 | 80,651 | 3,591,352 | 92,234 | 1,982,236 | 13,048 | (350,617 | ) | (100,043 | ) | (9,019 | ) | |||||||||||||||||||||||
— | 58 | 612 | — | — | 60 | (1,659 | ) | 1,929 | 74 | |||||||||||||||||||||||||
— | — | — | — | — | — | 334 | — | — | ||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
3 | 55 | 113 | 57 | 27 | 1 | 111 | 11 | 20 | ||||||||||||||||||||||||||
1,061,023 | 80,764 | 3,592,077 | 92,291 | 1,982,263 | 13,109 | (351,831 | ) | (98,103 | ) | (8,925 | ) | |||||||||||||||||||||||
1,542,221 | 348,033 | 6,551,968 | 126,904 | 2,807,380 | 16,948 | (343,501 | ) | (129,124 | ) | 6,181 | ||||||||||||||||||||||||
$ | 1,668,000 | $ | 410,868 | $ | 6,867,940 | $ | 148,613 | $ | 3,038,235 | $ | 20,091 | $ | (177,813 | ) | $ | (70,301 | ) | $ | 128,597 |
American Funds Insurance Series | 121 |
Statements of operations
for the year ended December 31, 2013
Mortgage Fund | U.S. Government/ AAA-Rated Securities Fund | Cash Management Fund | Managed Risk Growth Fund5 | Managed Risk International Fund5 | ||||||||||||||||
Investment income: | ||||||||||||||||||||
Income (net of non-U.S. taxes)1,2: | ||||||||||||||||||||
Dividends | $ | — | $ | — | $ | — | $ | 186 | $ | 183 | ||||||||||
Interest | 1,552 | 37,071 | 479 | — | 4 | — | 4 | |||||||||||||
1,552 | 37,071 | 479 | 186 | 183 | ||||||||||||||||
Fees and expenses3: | ||||||||||||||||||||
Investment advisory services | 860 | 12,006 | 1,586 | 21 | 15 | |||||||||||||||
Distribution services | 124 | 4,757 | 1,083 | 12 | 6 | |||||||||||||||
Insurance administrative services | — | — | 4 | — | 12 | 6 | ||||||||||||||
Transfer agent services | — | 4 | — | 4 | — | 4 | — | 4 | — | 4 | ||||||||||
Administrative services | 20 | 364 | 50 | — | — | |||||||||||||||
Accounting and administrative services | — | — | — | 34 | 34 | |||||||||||||||
Reports to shareholders | 2 | 126 | 17 | — | 4 | — | 4 | |||||||||||||
Registration statement and prospectus | 10 | 43 | 6 | 1 | 1 | |||||||||||||||
Trustees’ compensation | 2 | 51 | 10 | — | 4 | — | 4 | |||||||||||||
Auditing and legal | 2 | 24 | 3 | — | 4 | — | 4 | |||||||||||||
Custodian | 1 | 10 | 1 | 8 | 8 | |||||||||||||||
State and local taxes | — | 4 | 12 | 2 | — | — | ||||||||||||||
Other | 2 | 5 | 1 | — | 4 | — | 4 | |||||||||||||
Total fees and expenses before reimbursement/waiver | 1,023 | 17,398 | 2,759 | 88 | 70 | |||||||||||||||
Less reimbursement/waiver of fees and expenses: | ||||||||||||||||||||
Investment advisory services | — | — | — | 4 | 3 | |||||||||||||||
Other | — | — | — | 40 | 41 | |||||||||||||||
Total reimbursement/waiver of fees and expenses | — | — | — | 44 | 44 | |||||||||||||||
Total fees and expenses after reimbursement/waiver | 1,023 | 17,398 | 2,759 | 44 | 26 | |||||||||||||||
Net investment income (loss) | 529 | 19,673 | (2,280 | ) | 142 | 157 | ||||||||||||||
Net realized (loss) gain and unrealized (depreciation) appreciation on investments, forward currency contracts, interest rate swaps, futures contracts and currency: | ||||||||||||||||||||
Net realized (loss) gain on: | ||||||||||||||||||||
Investments2 | (1,144 | ) | (10,439 | ) | — | 4 | 118 | 4 | ||||||||||||
Forward currency contracts | — | — | — | — | — | |||||||||||||||
Interest rate swaps | (54 | ) | (448 | ) | — | — | — | |||||||||||||
Futures contracts | — | — | — | (244 | ) | (288 | ) | |||||||||||||
Currency transactions | — | — | — | — | 4 | 4 | ||||||||||||||
(1,198 | ) | (10,887 | ) | — | 4 | (126 | ) | (280 | ) | |||||||||||
Net unrealized (depreciation) appreciation on: | ||||||||||||||||||||
Investments | (2,544 | ) | (122,702 | ) | (11 | ) | 2,017 | 1,143 | ||||||||||||
Forward currency contracts | — | — | — | — | — | |||||||||||||||
Interest rate swaps | 151 | 4,211 | — | — | — | |||||||||||||||
Futures contracts | — | — | — | — | — | |||||||||||||||
Currency translations | — | — | — | — | — | |||||||||||||||
(2,393 | ) | (118,491 | ) | (11 | ) | 2,017 | 1,143 | |||||||||||||
Net realized (loss) gain and unrealized (depreciation) appreciation on investments, forward currency contracts, interest rate swaps, futures contracts and currency | (3,591 | ) | (129,378 | ) | (11 | ) | 1,891 | 863 | ||||||||||||
Net (decrease) increase in net assets resulting from operations | $ | (3,062 | ) | $ | (109,705 | ) | $ | (2,291 | ) | $ | 2,033 | $ | 1,020 |
1 | Additional information related to non-U.S. taxes is included in the Notes to Financial Statements. |
2 | Additional information related to affiliated transactions is included in the Notes to Financial Statements. |
3 | Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements. |
4 | Amount less than one thousand. |
5 | For the period May 1, 2013, commencement of operations, through December 31, 2013. |
See Notes to Financial Statements
122 | American Funds Insurance Series |
(dollars in thousands)
Managed Risk Blue Chip Income and Growth Fund5 | Managed Risk Growth- Income Fund5 | Managed Risk Asset Allocation Fund (formerly Protected Asset Allocation Fund) | ||||||||
$ | 393 | $ | 243 | $ | 10,534 | |||||
— | 4 | — | 4 | 2 | ||||||
393 | 243 | 10,536 | ||||||||
22 | 19 | 847 | ||||||||
13 | 10 | 725 | ||||||||
13 | 10 | 838 | ||||||||
— | 4 | — | 4 | — | 4 | |||||
— | — | — | ||||||||
34 | 34 | 58 | ||||||||
— | 4 | — | 4 | 35 | ||||||
1 | 1 | 34 | ||||||||
— | 4 | — | 4 | 1 | ||||||
— | 4 | — | 4 | 3 | ||||||
8 | 8 | 12 | ||||||||
— | — | — | ||||||||
— | 4 | — | 4 | 41 | ||||||
91 | 82 | 2,594 | ||||||||
4 | 4 | 169 | ||||||||
40 | 40 | 83 | ||||||||
44 | 44 | 252 | ||||||||
47 | 38 | 2,342 | ||||||||
346 | 205 | 8,194 | ||||||||
25 | 26 | 1,005 | ||||||||
— | — | — | ||||||||
— | — | — | ||||||||
(282 | ) | (203 | ) | (1,050 | ) | |||||
— | 4 | — | 4 | (2 | ) | |||||
(257 | ) | (177 | ) | (47 | ) | |||||
1,871 | 1,997 | 54,945 | ||||||||
— | — | — | ||||||||
— | — | — | ||||||||
— | — | — | ||||||||
— | — | — | ||||||||
1,871 | 1,997 | 54,945 | ||||||||
1,614 | 1,820 | 54,898 | ||||||||
$ | 1,960 | $ | 2,025 | $ | 63,092 |
American Funds Insurance Series | 123 |
Statements of changes in net assets
Global Growth Fund | Global Small Capitalization Fund | Growth Fund | ||||||||||||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 55,608 | $ | 60,991 | $ | 361 | $ | 9,389 | $ | 171,593 | $ | 219,601 | ||||||||||||
Net realized gain (loss) on investments, forward currency contracts, interest rate swaps, futures contracts and currency transactions | 929,844 | 337,051 | 472,703 | (62,597 | ) | 2,727,323 | 1,768,617 | |||||||||||||||||
Net unrealized appreciation (depreciation) on investments, forward currency contracts, interest rate swaps, futures contracts and currency translations | 524,891 | 638,745 | 494,315 | 637,610 | 3,086,943 | 1,983,865 | ||||||||||||||||||
Net increase in net assets resulting from operations | 1,510,343 | 1,036,787 | 967,379 | 584,402 | 5,985,859 | 3,972,083 | ||||||||||||||||||
Dividends and distributions paid to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | (71,780 | ) | (48,274 | ) | (33,337 | ) | (49,282 | ) | (221,528 | ) | (199,835 | ) | ||||||||||||
Distributions from net realized gain on investments | — | — | — | — | — | — | ||||||||||||||||||
Total dividends and distributions paid to shareholders | (71,780 | ) | (48,274 | ) | (33,337 | ) | (49,282 | ) | (221,528 | ) | (199,835 | ) | ||||||||||||
Net capital share transactions | (739,453 | ) | (611,848 | ) | (355,428 | ) | (158,152 | ) | (4,421,762 | ) | (5,872,611 | ) | ||||||||||||
Total increase (decrease) in net assets | 699,110 | 376,665 | 578,614 | 376,968 | 1,342,569 | (2,100,363 | ) | |||||||||||||||||
Net assets: | ||||||||||||||||||||||||
Beginning of period | 5,189,062 | 4,812,397 | 3,621,656 | 3,244,688 | 22,215,630 | 24,315,993 | ||||||||||||||||||
End of period | $ | 5,888,172 | $ | 5,189,062 | $ | 4,200,270 | $ | 3,621,656 | $ | 23,558,199 | $ | 22,215,630 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | 3,114 | $ | 2,832 | $ | (23,219 | ) | $ | (28,275 | ) | $ | 33,372 | $ | 87,829 |
International Growth and Income Fund | Asset Allocation Fund | Global Balanced Fund | ||||||||||||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 21,709 | $ | 7,402 | $ | 230,855 | $ | 239,938 | $ | 3,143 | $ | 2,361 | ||||||||||||
Net realized gain (loss) on investments, forward currency contracts, interest rate swaps, futures contracts and currency transactions | 34,613 | (373 | ) | 825,117 | 656,984 | 3,839 | (1,432 | ) | ||||||||||||||||
Net unrealized appreciation (depreciation) on investments, forward currency contracts, interest rate swaps, futures contracts and currency translations | 92,291 | 35,077 | 1,982,263 | 895,540 | 13,109 | 13,693 | ||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 148,613 | 42,106 | 3,038,235 | 1,792,462 | 20,091 | 14,622 | ||||||||||||||||||
Dividends and distributions paid to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | (23,927 | ) | (9,411 | ) | (240,318 | ) | (249,622 | ) | (2,640 | ) | (2,397 | ) | ||||||||||||
Distributions from net realized gain on investments | (14,821 | ) | — | — | — | (1,389 | ) | — | ||||||||||||||||
Total dividends and distributions paid to shareholders | (38,748 | ) | (9,411 | ) | (240,318 | ) | (249,622 | ) | (4,029 | ) | (2,397 | ) | ||||||||||||
Net capital share transactions | 416,512 | 161,657 | 1,058,137 | (201,839 | ) | 24,936 | 39,124 | |||||||||||||||||
Total increase (decrease) in net assets | 526,377 | 194,352 | 3,856,054 | 1,341,001 | 40,998 | 51,349 | ||||||||||||||||||
Net assets: | ||||||||||||||||||||||||
Beginning of period | 427,930 | 233,578 | 12,461,639 | 11,120,638 | 151,139 | 99,790 | ||||||||||||||||||
End of period | $ | 954,307 | $ | 427,930 | $ | 16,317,693 | $ | 12,461,639 | $ | 192,137 | $ | 151,139 | ||||||||||||
(Distributions in excess of) undistributed net investment income | $ | (3,866 | ) | $ | (2,255 | ) | $ | 44,514 | $ | 49,224 | $ | (344 | ) | $ | (252 | ) |
See Notes to Financial Statements
124 | American Funds Insurance Series |
(dollars in thousands)
International Fund | New World Fund | Blue Chip Income and Growth Fund | Global Growth and Income Fund | Growth-Income Fund | ||||||||||||||||||||||||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||||||||
$ | 112,294 | $ | 149,039 | $ | 34,369 | $ | 32,854 | $ | 125,779 | $ | 104,754 | $ | 62,835 | $ | 47,025 | $ | 315,972 | $ | 391,678 | |||||||||||||||||||
905,270 | (91,519 | ) | 265,071 | 71,498 | 481,198 | 184,482 | 267,269 | 43,123 | 2,959,891 | 1,608,151 | ||||||||||||||||||||||||||||
757,137 | 1,429,972 | (14,019 | ) | 284,578 | 1,061,023 | 312,798 | 80,764 | 237,050 | 3,592,077 | 1,854,608 | ||||||||||||||||||||||||||||
1,774,701 | 1,487,492 | 285,421 | 388,930 | 1,668,000 | 602,034 | 410,868 | 327,198 | 6,867,940 | 3,854,437 | |||||||||||||||||||||||||||||
(126,296 | ) | (139,135 | ) | (38,680 | ) | (26,969 | ) | (121,475 | ) | (97,174 | ) | (63,217 | ) | (49,855 | ) | (330,882 | ) | (395,890 | ) | |||||||||||||||||||
— | — | (11,688 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
(126,296 | ) | (139,135 | ) | (50,368 | ) | (26,969 | ) | (121,475 | ) | (97,174 | ) | (63,217 | ) | (49,855 | ) | (330,882 | ) | (395,890 | ) | |||||||||||||||||||
(1,488,019 | ) | (787,982 | ) | (49,848 | ) | (19,977 | ) | 283,296 | (97,654 | ) | (335,904 | ) | (260,359 | ) | (4,856,235 | ) | (3,009,039 | ) | ||||||||||||||||||||
160,386 | 560,375 | 185,205 | 341,984 | 1,829,821 | 407,206 | 11,747 | 16,984 | 1,680,823 | 449,508 | |||||||||||||||||||||||||||||
9,127,383 | 8,567,008 | 2,517,980 | 2,175,996 | 4,739,275 | 4,332,069 | 2,016,975 | 1,999,991 | 23,352,531 | 22,903,023 | |||||||||||||||||||||||||||||
$ | 9,287,769 | $ | 9,127,383 | $ | 2,703,185 | $ | 2,517,980 | $ | 6,569,096 | $ | 4,739,275 | $ | 2,028,722 | $ | 2,016,975 | $ | 25,033,354 | $ | 23,352,531 | |||||||||||||||||||
$ | (35,174 | ) | $ | (23,909 | ) | $ | (12,241 | ) | $ | (8,688 | ) | $ | 27,211 | $ | 22,907 | $ | (1,984 | ) | $ | (1,578 | ) | $ | 57,175 | $ | 71,481 | |||||||||||||
Bond Fund | Global Bond Fund | High-Income Bond Fund | Mortgage Fund | U.S. Government/ AAA-Rated Securities Fund | ||||||||||||||||||||||||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||||||||
$ | 165,688 | $ | 188,838 | $ | 58,823 | $ | 51,954 | $ | 122,416 | $ | 140,823 | $ | 529 | $ | 1 | $ | 19,673 | $ | 23,825 | |||||||||||||||||||
8,330 | 231,222 | (31,021 | ) | 23,525 | 15,106 | 1,805 | (1,198 | ) | 2,018 | (10,887 | ) | 115,324 | ||||||||||||||||||||||||||
(351,831 | ) | 62,276 | (98,103 | ) | 68,532 | (8,925 | ) | 111,169 | (2,393 | ) | 581 | (118,491 | ) | (60,103 | ) | |||||||||||||||||||||||
(177,813 | ) | 482,336 | (70,301 | ) | 144,011 | 128,597 | 253,797 | (3,062 | ) | 2,600 | (109,705 | ) | 79,046 | |||||||||||||||||||||||||
(176,180 | ) | (231,875 | ) | — | (55,524 | ) | (127,001 | ) | (143,258 | ) | (1,659 | ) | (703 | ) | (27,711 | ) | (43,222 | ) | ||||||||||||||||||||
(97,344 | ) | — | (32,698 | ) | (21,416 | ) | — | — | (345 | ) | (1,250 | ) | (98,424 | ) | (110,100 | ) | ||||||||||||||||||||||
(273,524 | ) | (231,875 | ) | (32,698 | ) | (76,940 | ) | (127,001 | ) | (143,258 | ) | (2,004 | ) | (1,953 | ) | (126,135 | ) | (153,322 | ) | |||||||||||||||||||
762,587 | (627,799 | ) | 69,173 | 297,923 | (115,679 | ) | 67,425 | 116,261 | 58,891 | (189,164 | ) | 87,854 | ||||||||||||||||||||||||||
311,250 | (377,338 | ) | (33,826 | ) | 364,994 | (114,083 | ) | 177,964 | 111,195 | 59,538 | (425,004 | ) | 13,578 | |||||||||||||||||||||||||
8,960,835 | 9,338,173 | 2,622,616 | 2,257,622 | 2,049,717 | 1,871,753 | 136,093 | 76,555 | 3,824,263 | 3,810,685 | |||||||||||||||||||||||||||||
$ | 9,272,085 | $ | 8,960,835 | $ | 2,588,790 | $ | 2,622,616 | $ | 1,935,634 | $ | 2,049,717 | $ | 247,288 | $ | 136,093 | $ | 3,399,259 | $ | 3,824,263 | |||||||||||||||||||
$ | 33,731 | $ | 33,380 | $ | 6,522 | $ | 1,823 | $ | 16,443 | $ | 19,941 | $ | 11 | $ | 33 | $ | 6,797 | $ | 5,925 |
American Funds Insurance Series | 125 |
Statements of changes in net assets
Cash Management Fund | Managed Risk Growth Fund | Managed Risk International Fund | Managed Risk Blue Chip Income and Growth Fund | Managed Risk Growth- Income Fund | ||||||||||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | Year ended December 31, 20131 | Year ended December 31, 20131 | Year ended December 31, 20131 | Year ended December 31, 20131 | |||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment (loss) income | $ | (2,280 | ) | $ | (2,432 | ) | $ | 142 | $ | 157 | $ | 346 | $ | 205 | ||||||||||
Net realized gain (loss) on investments, forward currency contracts, interest rate swaps, futures contracts and currency transactions | — | 3 | — | 3 | (126 | ) | (280 | ) | (257 | ) | (177 | ) | ||||||||||||
Net unrealized (depreciation) appreciation on investments, forward currency contracts, interest rate swaps, futures contracts and currency translations | (11 | ) | 17 | 2,017 | 1,143 | 1,871 | 1,997 | |||||||||||||||||
Net (decrease) increase in net assets resulting from operations | (2,291 | ) | (2,415 | ) | 2,033 | 1,020 | 1,960 | 2,025 | ||||||||||||||||
Dividends and distributions paid to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | — | — | (140 | ) | (114 | ) | (342 | ) | (202 | ) | ||||||||||||||
Distributions from net realized gain on investments | — | — | — | — | — | — | ||||||||||||||||||
Total dividends and distributions paid to shareholders | — | — | (140 | ) | (114 | ) | (342 | ) | (202 | ) | ||||||||||||||
Net capital share transactions | (73,782 | ) | (78,336 | ) | 26,100 | 15,980 | 24,741 | 22,332 | ||||||||||||||||
Total (decrease) increase in net assets | (76,073 | ) | (80,751 | ) | 27,993 | 16,886 | 26,359 | 24,155 | ||||||||||||||||
Net assets: | ||||||||||||||||||||||||
Beginning of period | 536,106 | 616,857 | — | — | — | — | ||||||||||||||||||
End of period | $ | 460,033 | $ | 536,106 | $ | 27,993 | $ | 16,886 | $ | 26,359 | $ | 24,155 | ||||||||||||
(Distributions in excess of) undistributed net investment income | $ | (20 | ) | $ | (16 | ) | $ | 2 | $ | 6 | $ | 4 | $ | 3 |
1 | For the period May 1, 2013, commencement of operations, through December 31, 2013. |
2 | For the period September 28, 2012, commencement of operations, through December 31, 2012. |
3 | Amount less than one thousand. |
See Notes to Financial Statements
126 | American Funds Insurance Series |
(dollars in thousands)
Managed Risk Asset Allocation Fund (formerly Protected Asset Allocation Fund) | ||||||
Year ended December 31, 2013 | Year ended December 31, 20122 | |||||
$ | 8,194 | $ | 320 | |||
(47 | ) | (42 | ) | |||
54,945 | 10 | |||||
63,092 | 288 | |||||
(8,151 | ) | (317 | ) | |||
— | — | |||||
(8,151 | ) | (317 | ) | |||
817,857 | 34,301 | |||||
872,798 | 34,272 | |||||
34,272 | — | |||||
$ | 907,070 | $ | 34,272 | |||
$ | 89 | $ | 3 |
American Funds Insurance Series | 127 |
Notes to financial statements
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 22 different funds (the “funds”). The assets of each fund are segregated, with each fund accounted for separately. Capital Research and Management Company (“CRMC”) is the investment adviser to the series. Milliman Financial Risk Management LLC (“Milliman”) is the sub-adviser for the risk management strategy for five of the funds (the “managed risk funds”).
The managed risk funds 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 (formerly Protected Asset Allocation Fund). The managed risk funds invest in other funds within the series (the “underlying funds”) and employ Milliman 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 reorganization may be completed in 2014; however, the series reserves the right to delay the implementation.
The funds’ investment objectives and the principal strategies the funds use to achieve these objectives are as follows:
Global Growth Fund — Seeks long-term growth of capital through investments in common stocks of companies located around the world.
Global Small Capitalization Fund — Seeks long-term growth of capital through investments in smaller companies in the U.S. and around the world.
Growth Fund — Seeks to invest in a wide range of companies that appear to offer superior opportunities for growth of capital.
International Fund — Seeks long-term growth of capital through investments in common stocks of companies located around the world.
New World Fund — Seeks long-term capital appreciation by investing in common stocks and bonds with significant exposure to countries that have developing economies and/or markets.
Blue Chip Income and Growth Fund — Seeks to produce income exceeding the average yield on U.S. stocks generally and to provide an opportunity for growth of principal consistent with sound common stock investing through investments in quality common stocks.
Global Growth and Income Fund — Seeks long-term growth of capital while providing current income. It invests on a global basis in a diversified portfolio consisting primarily of common stocks and other equity securities.
Growth-Income Fund — Seeks long-term growth of capital and income by investing in common stocks or other securities of companies located in the U.S. and around the world.
International Growth and Income Fund — Seeks to provide long-term growth of capital and current income by investing primarily in the stocks of larger, well-established companies outside the U.S., including countries that have developing economies and/or markets.
Asset Allocation Fund — Seeks high total return (including income and capital gains) consistent with the preservation of capital over the long term by investing primarily in common stocks and fixed-income securities.
Global Balanced Fund — Seeks long-term growth of capital, conservation of principal and current income by investing in equity and debt securities in the U.S. and around the world.
Bond Fund — Seeks a high level of current income as is consistent with preservation of capital by investing primarily in bonds.
Global Bond Fund — Seeks a high level of total return consistent with prudent investment management by investing primarily in a global portfolio of investment-grade bonds.
128 | American Funds Insurance Series |
High-Income Bond Fund — Seeks a high level of current income and, secondarily, capital appreciation through a diversified portfolio consisting primarily of lower rated, higher risk corporate bonds.
Mortgage Fund — Seeks to provide current income and preservation of capital by investing primarily in mortgage-related securities.
U.S. Government/AAA-Rated Securities Fund — Seeks to provide a high level of current income consistent with preservation of capital by investing primarily in securities guaranteed or sponsored by the U.S. government and the highest quality corporate bonds.
Cash Management Fund — Seeks to provide income on cash reserves while preserving capital and maintaining liquidity.
Managed Risk Growth Fund — Seeks to provide growth of capital while seeking to manage volatility and provide downside protection.
Managed Risk International Fund — Seeks to provide long-term growth of capital while seeking to manage volatility and provide downside protection.
Managed Risk Blue Chip Income and Growth Fund — Seeks to produce income exceeding the average yield on U.S. stocks generally and to provide an opportunity for growth of principal consistent with sound common stock investing, in each case while seeking to manage volatility and provide downside protection.
Managed Risk Growth-Income Fund — Seeks to provide long-term growth of capital and income while seeking to manage volatility and provide downside protection.
Managed Risk Asset Allocation Fund — Seeks to provide high total return consistent with preservation of capital over the long term while seeking to manage volatility and provide downside protection.
Each fund in the series, except the managed risk funds, offers either three or four share classes (Classes 1, 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 the 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’s financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. 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.
Class allocations — Income, fees and expenses (other than class-specific fees and expenses) and realized and unrealized gains and losses are allocated daily among the various share classes of each fund based on their relative net assets. Class-specific fees and expenses, such as distribution expenses, are accrued daily and charged directly to the respective share class of each fund.
American Funds Insurance Series | 129 |
Dividends and distributions to shareholders — Dividends and distributions to shareholders 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 accounting principles generally accepted in the United States of America. 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 purchased with more than 60 days left to maturity, 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 & loans; 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.
130 | American Funds Insurance Series |
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. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates fair value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days. The Government Cash Management Fund held by the managed risk funds is managed to maintain a $1.00 net asset value per share. The net asset value of each share class of each managed risk fund is calculated based on the reported net asset values of the underlying funds in which each fund invests.
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 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. Exchange-traded futures are generally valued at the official settlement price of, or the last reported sale price on, the exchange or market on which such instruments are traded, as of the close of business on the day the futures are being valued or, lacking any sales, at the last available bid price. Prices for each future are taken from the exchange or market on which the security trades.
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 with supplemental information to support the changes. 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. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following tables present the funds’ valuation levels as of December 31, 2013 (dollars in thousands):
American Funds Insurance Series | 131 |
Global Growth Fund
Investment securities | ||||||||||||||||
Level 1* | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Consumer discretionary | $ | 1,455,339 | $ | — | $ | 1,335 | $ | 1,456,674 | ||||||||
Information technology | 1,002,201 | — | — | 1,002,201 | ||||||||||||
Health care | 845,288 | — | — | 845,288 | ||||||||||||
Financials | 825,977 | — | — | 825,977 | ||||||||||||
Industrials | 438,470 | — | — | 438,470 | ||||||||||||
Consumer staples | 340,464 | — | — | 340,464 | ||||||||||||
Materials | 258,378 | — | — | 258,378 | ||||||||||||
Telecommunication services | 198,019 | — | — | 198,019 | ||||||||||||
Energy | 191,316 | — | — | 191,316 | ||||||||||||
Utilities | 28,404 | — | — | 28,404 | ||||||||||||
Miscellaneous | 80,469 | — | — | 80,469 | ||||||||||||
Bonds, notes & other debt instruments | — | 33,166 | — | 33,166 | ||||||||||||
Short-term securities | — | 210,264 | — | 210,264 | ||||||||||||
Total | $ | 5,664,325 | $ | 243,430 | $ | 1,335 | $ | 5,909,090 |
Other investments† | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on open forward currency contracts | $ | — | $ | 5,270 | $ | — | $ | 5,270 |
* | Securities with a value of $2,131,726,000, which represented 36.20% of the net assets of the fund, transferred from Level 2 to Level 1 since the prior fiscal year-end, primarily due to a lack of significant market movements following the close of local trading. |
† | Forward currency contracts are not included in the investment portfolio. |
Global Small Capitalization Fund
Investment securities | ||||||||||||||||
Level 1* | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Consumer discretionary | $ | 965,081 | $ | — | $ | 69 | $ | 965,150 | ||||||||
Health care | 590,728 | 7,920 | — | 598,648 | ||||||||||||
Industrials | 466,731 | — | — | 466,731 | ||||||||||||
Information technology | 393,318 | — | 71 | 393,389 | ||||||||||||
Financials | 365,990 | — | 1,336 | 367,326 | ||||||||||||
Materials | 229,224 | — | 1,212 | 230,436 | ||||||||||||
Energy | 227,020 | 1,745 | — | 228,765 | ||||||||||||
Utilities | 173,272 | — | — | 173,272 | ||||||||||||
Consumer staples | 134,940 | — | — | 134,940 | ||||||||||||
Telecommunication services | 18,509 | — | — | 18,509 | ||||||||||||
Miscellaneous | 206,006 | — | — | 206,006 | ||||||||||||
Convertible securities | — | 1,704 | 9,412 | 11,116 | ||||||||||||
Bonds, notes & other debt instruments | — | 13,351 | — | 13,351 | ||||||||||||
Short-term securities | — | 389,552 | — | 389,552 | ||||||||||||
Total | $ | 3,770,819 | $ | 414,272 | $ | 12,100 | $ | 4,197,191 |
Other investments† | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on open forward currency contracts | $ | — | $ | 496 | $ | — | $ | 496 | ||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | — | (36 | ) | — | (36 | ) | ||||||||||
Total | $ | — | $ | 460 | $ | — | $ | 460 |
* | Securities with a value of $1,353,625,000, which represented 32.23% of the net assets of the fund, transferred from Level 2 to Level 1 since the prior fiscal year-end, primarily due to a lack of significant market movements following the close of local trading. |
† | Forward currency contracts are not included in the investment portfolio. |
132 | American Funds Insurance Series |
Growth Fund
Investment securities | ||||||||||||||||
Level 1* | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Consumer discretionary | $ | 5,089,184 | $ | — | $ | — | $ | 5,089,184 | ||||||||
Financials | 3,794,791 | — | 31,151 | 3,825,942 | ||||||||||||
Information technology | 3,643,367 | — | — | 3,643,367 | ||||||||||||
Health care | 3,121,357 | 14,926 | — | 3,136,283 | ||||||||||||
Energy | 2,240,750 | 24,024 | 33,020 | 2,297,794 | ||||||||||||
Industrials | 2,225,633 | — | — | 2,225,633 | ||||||||||||
Consumer staples | 1,284,538 | — | — | 1,284,538 | ||||||||||||
Other | 1,357,974 | 1,741 | — | 1,359,715 | ||||||||||||
Miscellaneous | 78,796 | — | — | 78,796 | ||||||||||||
Rights & warrants | 16,599 | — | — | 16,599 | ||||||||||||
Short-term securities | — | 646,730 | — | 646,730 | ||||||||||||
Total | $ | 22,852,989 | $ | 687,421 | $ | 64,171 | $ | 23,604,581 |
* | Securities with a value of $2,082,106,000, which represented 8.84% of the net assets of the fund, transferred from Level 2 to Level 1 since the prior fiscal year-end, primarily due to a lack of significant market movements following the close of local trading. |
International Fund
Investment securities | ||||||||||||||||
Level 1* | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Financials | $ | 1,675,962 | $ | — | $ | — | $ | 1,675,962 | ||||||||
Consumer discretionary | 1,434,209 | — | 6,802 | 1,441,011 | ||||||||||||
Health care | 1,229,202 | 25,873 | — | 1,255,075 | ||||||||||||
Information technology | 1,225,057 | — | — | 1,225,057 | ||||||||||||
Industrials | 1,176,814 | — | — | 1,176,814 | ||||||||||||
Consumer staples | 557,382 | — | — | 557,382 | ||||||||||||
Telecommunication services | 526,510 | — | — | 526,510 | ||||||||||||
Materials | 393,739 | 5,762 | — | 399,501 | ||||||||||||
Utilities | 213,956 | — | — | 213,956 | ||||||||||||
Energy | 213,075 | — | — | 213,075 | ||||||||||||
Miscellaneous | 217,290 | — | — | 217,290 | ||||||||||||
Bonds, notes & other debt instruments | — | 94,328 | — | 94,328 | ||||||||||||
Short-term securities | — | 295,970 | — | 295,970 | ||||||||||||
Total | $ | 8,863,196 | $ | 421,933 | $ | 6,802 | $ | 9,291,931 |
Other investments† | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on open forward currency contracts | $ | — | $ | 5,061 | $ | — | $ | 5,061 | ||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | — | (121 | ) | — | (121 | ) | ||||||||||
Total | $ | — | $ | 4,940 | $ | — | $ | 4,940 |
* | Securities with a value of $7,488,132,000, which represented 80.62% of the net assets of the fund, transferred from Level 2 to Level 1 since the prior fiscal year-end, primarily due to a lack of significant market movements following the close of local trading. |
† | Forward currency contracts are not included in the investment portfolio. |
American Funds Insurance Series | 133 |
New World Fund
Investment securities | ||||||||||||||||
Level 1* | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 432,343 | $ | — | $ | — | $ | 432,343 | ||||||||
Consumer discretionary | 379,367 | — | — | 379,367 | ||||||||||||
Financials | 279,749 | — | 34 | 279,783 | ||||||||||||
Consumer staples | 247,148 | — | — | 247,148 | ||||||||||||
Energy | 237,605 | 1,786 | — | 239,391 | ||||||||||||
Health care | 206,438 | — | — | 206,438 | ||||||||||||
Industrials | 195,140 | — | — | 195,140 | ||||||||||||
Materials | 88,869 | — | — | 88,869 | ||||||||||||
Telecommunication services | 80,789 | — | — | 80,789 | ||||||||||||
Utilities | 33,936 | — | — | 33,936 | ||||||||||||
Miscellaneous | 129,023 | — | — | 129,023 | ||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
U.S. Treasury bonds & notes | — | 19,610 | — | 19,610 | ||||||||||||
Other bonds & notes | — | 206,889 | — | 206,889 | ||||||||||||
Short-term securities | — | 157,336 | — | 157,336 | ||||||||||||
Total | $ | 2,310,407 | $ | 385,621 | $ | 34 | $ | 2,696,062 |
Other investments† | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on open forward currency contracts | $ | — | $ | 878 | $ | — | $ | 878 | ||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | — | (38 | ) | — | (38 | ) | ||||||||||
Total | $ | — | $ | 840 | $ | — | $ | 840 |
* | Securities with a value of $1,083,684,000, which represented 40.09% of the net assets of the fund, transferred from Level 2 to Level 1 since the prior fiscal year-end, primarily due to a lack of significant market movements following the close of local trading. |
† | Forward currency contracts are not included in the investment portfolio. |
Blue Chip Income and Growth Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Health care | $ | 1,274,592 | $ | — | $ | — | $ | 1,274,592 | ||||||||
Information technology | 1,037,950 | — | — | 1,037,950 | ||||||||||||
Industrials | 836,637 | — | — | 836,637 | ||||||||||||
Consumer staples | 711,557 | — | — | 711,557 | ||||||||||||
Telecommunication services | 654,638 | — | — | 654,638 | ||||||||||||
Consumer discretionary | 443,365 | — | — | 443,365 | ||||||||||||
Energy | 368,393 | — | — | 368,393 | ||||||||||||
Utilities | 360,658 | — | — | 360,658 | ||||||||||||
Financials | 318,569 | — | — | 318,569 | ||||||||||||
Materials | 147,729 | — | — | 147,729 | ||||||||||||
Miscellaneous | 94,118 | — | — | 94,118 | ||||||||||||
Short-term securities | — | 350,357 | — | 350,357 | ||||||||||||
Total | $ | 6,248,206 | $ | 350,357 | $ | — | $ | 6,598,563 |
134 | American Funds Insurance Series |
Global Growth and Income Fund
Investment securities | ||||||||||||||||
Level 1* | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Financials | $ | 438,106 | $ | — | $ | 702 | $ | 438,808 | ||||||||
Consumer discretionary | 309,130 | — | — | 309,130 | ||||||||||||
Industrials | 230,420 | — | — | 230,420 | ||||||||||||
Information technology | 212,282 | — | — | 212,282 | ||||||||||||
Health care | 165,899 | — | — | 165,899 | ||||||||||||
Telecommunication services | 125,832 | — | — | 125,832 | ||||||||||||
Consumer staples | 121,784 | — | — | 121,784 | ||||||||||||
Materials | 111,982 | — | — | 111,982 | ||||||||||||
Utilities | 106,910 | — | — | 106,910 | ||||||||||||
Energy | 85,975 | — | — | 85,975 | ||||||||||||
Miscellaneous | 17,334 | — | — | 17,334 | ||||||||||||
Convertible securities | — | 11,242 | 465 | 11,707 | ||||||||||||
Bonds, notes & other debt instruments | — | 9,989 | — | 9,989 | ||||||||||||
Short-term securities | — | 66,997 | — | 66,997 | ||||||||||||
Total | $ | 1,925,654 | $ | 88,228 | $ | 1,167 | $ | 2,015,049 |
Other investments† | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on open forward currency contracts | $ | — | $ | 58 | $ | — | $ | 58 |
* | Securities with a value of $588,804,000, which represented 29.02% of the net assets of the fund, transferred from Level 2 to Level 1 since the prior fiscal year-end, primarily due to a lack of significant market movements following the close of local trading. |
† | 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: | ||||||||||||||||
Health care | $ | 4,278,104 | $ | — | $ | — | $ | 4,278,104 | ||||||||
Information technology | 3,772,774 | — | — | 3,772,774 | ||||||||||||
Consumer discretionary | 3,468,412 | — | — | 3,468,412 | ||||||||||||
Industrials | 2,657,753 | — | — | 2,657,753 | ||||||||||||
Energy | 2,229,277 | — | — | 2,229,277 | ||||||||||||
Materials | 1,858,266 | — | — | 1,858,266 | ||||||||||||
Financials | 1,710,571 | — | — | 1,710,571 | ||||||||||||
Consumer staples | 1,597,425 | — | — | 1,597,425 | ||||||||||||
Telecommunication services | 601,513 | — | — | 601,513 | ||||||||||||
Utilities | 157,689 | — | — | 157,689 | ||||||||||||
Miscellaneous | 964,035 | — | — | 964,035 | ||||||||||||
Rights & warrants | 4,527 | — | — | 4,527 | ||||||||||||
Convertible securities | — | 117,373 | — | 117,373 | ||||||||||||
Bonds, notes & other debt instruments | — | 67,195 | — | 67,195 | ||||||||||||
Short-term securities | — | 1,577,739 | — | 1,577,739 | ||||||||||||
Total | $ | 23,300,346 | $ | 1,762,307 | $ | — | $ | 25,062,653 |
Other investments† | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on open forward currency contracts | $ | — | $ | 789 | $ | — | $ | 789 | ||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | — | (177 | ) | — | (177 | ) | ||||||||||
Total | $ | — | $ | 612 | $ | — | $ | 612 |
* | Securities with a value of $1,266,008,000, which represented 5.06% of the net assets of the fund, transferred from Level 2 to Level 1 since the prior fiscal year-end, primarily due to a lack of significant market movements following the close of local trading. |
† | Forward currency contracts are not included in the investment portfolio. |
American Funds Insurance Series | 135 |
International Growth and Income Fund
Investment securities | ||||||||||||||||
Level 1* | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Financials | $ | 203,092 | $ | — | $ | — | $ | 203,092 | ||||||||
Consumer discretionary | 165,133 | — | — | 165,133 | ||||||||||||
Health care | 95,148 | — | — | 95,148 | ||||||||||||
Consumer staples | 89,071 | — | — | 89,071 | ||||||||||||
Industrials | 88,761 | — | — | 88,761 | ||||||||||||
Utilities | 76,778 | — | — | 76,778 | ||||||||||||
Telecommunication services | 59,906 | — | — | 59,906 | ||||||||||||
Energy | 33,636 | — | — | 33,636 | ||||||||||||
Information technology | 33,530 | — | — | 33,530 | ||||||||||||
Materials | 26,951 | — | — | 26,951 | ||||||||||||
Miscellaneous | 3,119 | — | — | 3,119 | ||||||||||||
Convertible securities | — | 3,092 | — | 3,092 | ||||||||||||
Bonds, notes & other debt instruments | — | 7,343 | — | 7,343 | ||||||||||||
Short-term securities | — | 68,884 | — | 68,884 | ||||||||||||
Total | $ | 875,125 | $ | 79,319 | $ | — | $ | 954,444 |
* | Securities with a value of $569,737,000, which represented 59.70% of the net assets of the fund, transferred from Level 2 to Level 1 since the prior fiscal year-end, primarily due to a lack of significant market movements following the close of local trading. |
Asset Allocation Fund
Investment securities | ||||||||||||||||
Level 1* | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Consumer discretionary | $ | 2,019,437 | $ | 111 | $ | 438 | $ | 2,019,986 | ||||||||
Financials | 1,886,717 | — | — | 1,886,717 | ||||||||||||
Industrials | 1,347,609 | — | 27,633 | 1,375,242 | ||||||||||||
Health care | 1,328,714 | — | — | 1,328,714 | ||||||||||||
Energy | 1,305,028 | — | — | 1,305,028 | ||||||||||||
Information technology | 1,260,098 | — | — | 1,260,098 | ||||||||||||
Materials | 801,819 | — | 2,219 | 804,038 | ||||||||||||
Consumer staples | 687,042 | — | — | 687,042 | ||||||||||||
Other | 341,053 | — | — | 341,053 | ||||||||||||
Miscellaneous | 319,366 | — | 3,289 | 322,655 | ||||||||||||
Rights & warrants | 822 | — | — | 822 | ||||||||||||
Convertible securities | — | — | 18,043 | 18,043 | ||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
U.S. Treasury bonds & notes | — | 1,240,718 | — | 1,240,718 | ||||||||||||
Corporate bonds & notes | — | 1,187,984 | 10,066 | 1,198,050 | ||||||||||||
Mortgage-backed obligations | — | 772,335 | — | 772,335 | ||||||||||||
Federal agency bonds & notes | — | 153,444 | — | 153,444 | ||||||||||||
Other bonds & notes | — | 8,074 | — | 8,074 | ||||||||||||
Short-term securities | — | 1,817,651 | — | 1,817,651 | ||||||||||||
Total | $ | 11,297,705 | $ | 5,180,317 | $ | 61,688 | $ | 16,539,710 |
* | Securities with a value of $374,598,000, which represented 2.30% of the net assets of the fund, transferred from Level 2 to Level 1 since the prior fiscal year-end, primarily due to a lack of significant market movements following the close of local trading. |
136 | American Funds Insurance Series |
Global Balanced Fund
Investment securities | ||||||||||||||||
Level 1* | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Financials | $ | 21,283 | $ | — | $ | — | $ | 21,283 | ||||||||
Industrials | 18,796 | — | — | 18,796 | ||||||||||||
Information technology | 16,960 | — | — | 16,960 | ||||||||||||
Consumer staples | 16,559 | — | — | 16,559 | ||||||||||||
Health care | 14,608 | — | — | 14,608 | ||||||||||||
Consumer discretionary | 14,498 | — | — | 14,498 | ||||||||||||
Energy | 8,985 | — | — | 8,985 | ||||||||||||
Materials | 7,415 | 547 | — | 7,962 | ||||||||||||
Telecommunication services | 6,037 | — | — | 6,037 | ||||||||||||
Utilities | 2,198 | — | — | 2,198 | ||||||||||||
Preferred securities | — | 151 | — | 151 | ||||||||||||
Convertible securities | — | 1,015 | — | 1,015 | ||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
Bonds & notes of governments & government agencies outside the U.S. | — | 27,705 | — | 27,705 | ||||||||||||
Corporate bonds & notes | — | 15,613 | — | 15,613 | ||||||||||||
U.S. Treasury bonds & notes | — | 9,380 | — | 9,380 | ||||||||||||
Mortgage-backed obligations | — | 4,036 | — | 4,036 | ||||||||||||
Short-term securities | — | 5,799 | — | 5,799 | ||||||||||||
Total | $ | 127,339 | $ | 64,246 | $ | — | $ | 191,585 |
Other investments† | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on open forward currency contracts | $ | — | $ | 36 | $ | — | $ | 36 | ||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | — | (59 | ) | — | (59 | ) | ||||||||||
Total | $ | — | $ | (23 | ) | $ | — | $ | (23 | ) |
* | Securities with a value of $42,127,000, which represented 21.93% of the net assets of the fund, transferred from Level 2 to Level 1 since the prior fiscal year-end, primarily due to a lack of significant market movements following the close of local trading. |
† | Forward currency contracts are not included in the investment portfolio. |
Bond Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
U.S. Treasury bonds & notes | $ | — | $ | 2,853,178 | $ | — | $ | 2,853,178 | ||||||||
Corporate bonds & notes | — | 2,850,835 | — | 2,850,835 | ||||||||||||
Mortgage-backed obligations | — | 1,946,122 | — | 1,946,122 | ||||||||||||
Bonds & notes of governments & government agencies outside the U.S. | — | 417,268 | — | 417,268 | ||||||||||||
Federal agency bonds & notes | — | 239,153 | — | 239,153 | ||||||||||||
Other bonds & notes | — | 101,913 | — | 101,913 | ||||||||||||
Convertible securities | — | 1,473 | — | 1,473 | ||||||||||||
Preferred securities | 2,640 | 7,245 | — | 9,885 | ||||||||||||
Common stocks | 5 | — | 5,452 | 5,457 | ||||||||||||
Short-term securities | — | 1,320,369 | — | 1,320,369 | ||||||||||||
Total | $ | 2,645 | $ | 9,737,556 | $ | 5,452 | $ | 9,745,653 |
American Funds Insurance Series | 137 |
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on open forward currency contracts | $ | — | $ | 6 | $ | — | $ | 6 | ||||||||
Unrealized appreciation on interest rate swaps | — | 334 | — | 334 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | — | (1,655 | ) | — | (1,655 | ) | ||||||||||
Total | $ | — | $ | (1,315 | ) | $ | — | $ | (1,315 | ) |
* | Forward currency contracts are not included in the investment portfolio. |
Global Bond Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
Euros | $ | — | $ | 584,475 | $ | — | $ | 584,475 | ||||||||
Japanese yen | — | 148,162 | — | 148,162 | ||||||||||||
Polish zloty | — | 101,766 | — | 101,766 | ||||||||||||
Mexican pesos | — | 99,955 | — | 99,955 | ||||||||||||
British pounds | — | 80,792 | — | 80,792 | ||||||||||||
Swedish kronor | — | 40,462 | — | 40,462 | ||||||||||||
Norwegian kroner | — | 37,858 | — | 37,858 | ||||||||||||
Hungarian forints | — | 33,741 | — | 33,741 | ||||||||||||
South Korean won | — | 29,733 | — | 29,733 | ||||||||||||
Brazilian reais | — | 19,869 | — | 19,869 | ||||||||||||
U.S. dollars | — | 1,091,168 | — | 1,091,168 | ||||||||||||
Other currencies | — | 113,679 | — | 113,679 | ||||||||||||
Convertible securities | — | — | 597 | 597 | ||||||||||||
Preferred securities | 1,505 | 1,269 | — | 2,774 | ||||||||||||
Common stocks | — | — | 1,230 | 1,230 | ||||||||||||
Short-term securities | — | 197,280 | — | 197,280 | ||||||||||||
Total | $ | 1,505 | $ | 2,580,209 | $ | 1,827 | $ | 2,583,541 |
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on open forward currency contracts | $ | — | $ | 1,248 | $ | — | $ | 1,248 | ||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | — | (4,643 | ) | — | (4,643 | ) | ||||||||||
Total | $ | — | $ | (3,395 | ) | $ | — | $ | (3,395 | ) |
* | Forward currency contracts are not included in the investment portfolio. |
High-Income Bond Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
Corporate bonds & notes | $ | — | $ | 1,709,473 | $ | 12,488 | $ | 1,721,961 | ||||||||
Other bonds & notes | — | 16,063 | — | 16,063 | ||||||||||||
Convertible securities | 3,363 | 4,436 | 10,805 | 18,604 | ||||||||||||
Preferred securities | 5,458 | 9,675 | — | 15,133 | ||||||||||||
Common stocks | 5,425 | 167 | 34,360 | 39,952 | ||||||||||||
Rights & warrants | 286 | — | — | 286 | ||||||||||||
Short-term securities | — | 96,183 | — | 96,183 | ||||||||||||
Total | $ | 14,532 | $ | 1,835,997 | $ | 57,653 | $ | 1,908,182 |
138 | American Funds Insurance Series |
Other investments1 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | $ | — | $ | (24 | ) | $ | — | $ | (24 | ) |
The following table reconciles the valuation of the fund’s Level 3 investment securities and related transactions for the 12 months ended December 31, 2013 (dollars in thousands):
Beginning value at 1/1/2013 | Transfers into Level 32 | Purchases | Sales | Net realized loss3 | Unrealized appreciation3 | Transfers out of Level 32 | Ending value at 12/31/2013 | |||||||||||||||||||||||||
Investment securities | $ | 3,779 | $ | 33,093 | $ | 94,412 | $ | (58,805 | ) | $ | (57 | ) | $ | 772 | $ | (15,541 | ) | $ | 57,653 | |||||||||||||
Net unrealized depreciation during the period on Level 3 investment securities held at December 31, 2013: | $ | (2,230 | ) |
1 | Forward currency contracts are not included in the investment portfolio. |
2 | Transfers into or out of Level 3 are based on the beginning market value of the quarter in which they occurred. |
3 | Net realized loss and unrealized appreciation are included in the related amounts on investments in the statement of operations. |
Unobservable inputs — The following table provides additional information used by the fund’s investment adviser to fair value securities with significant unobservable inputs.
Value at 12/31/2013 | Valuation technique(s) | Unobservable input(s) | Range | Impact to valuation from an increase in input4 | ||||||||
Bonds, notes & other debt instruments | $ | 12,488 | Recent acquisition price | N/A | N/A | N/A | ||||||
Convertible securities | 10,805 | Blend of market quote and market comparable companies | EV/EBITDA multiple | 11.80x–12.91x | Increase | |||||||
EV/EBITDA multiple | 6.13x–10.93x | Increase | ||||||||||
Market compatible companies | EV (EBITDA-CAPEX) multiple | 13x–15x | Increase | |||||||||
DLOM | 23%–25% | Decrease | ||||||||||
Common stocks | 34,360 | |||||||||||
Blend of market quote and market | EV/EBITDA multiple | 4.36x–12.91x | Increase | |||||||||
comparable companies | DLOM | 17.18%–23.01% | Decrease | |||||||||
Expected merger proceeds | N/A | N/A | N/A | |||||||||
$ | 57,653 |
4 | 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
CAPEX = Capital expenditure
EV = Enterprise value
EBITDA = Earnings before interest, taxes, depreciation and amortization
DLOM = Discount for lack of marketability
Mortgage Fund
At December 31, 2013, all of the fund’s investments were classified as Level 2.
U.S. Government/AAA-Rated Securities Fund
At December 31, 2013, all of the fund’s investments were classified as Level 2.
American Funds Insurance Series | 139 |
Cash Management Fund
At December 31, 2013, all of the fund’s investment securities were classified as Level 2.
Managed Risk Growth Fund
At December 31, 2013, all of the fund’s investment securities were classified as Level 1.
Managed Risk International Fund
At December 31, 2013, all of the fund’s investment securities were classified as Level 1.
Managed Risk Blue Chip Income and Growth Fund
At December 31, 2013, all of the fund’s investment securities were classified as Level 1.
Managed Risk Growth-Income Fund
At December 31, 2013, all of the fund’s investment securities were classified as Level 1.
Managed Risk Asset Allocation Fund
At December 31, 2013, all of the fund’s investment securities 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 due to market conditions and other factors, including those directly involving the issuers of securities held by the fund.
Investing in growth-oriented stocks — Growth-oriented stocks may involve larger price swings and greater potential for loss than other types of investments. These risks may be heightened in the case of smaller capitalization stocks.
Investing in income-oriented stocks — 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.
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. In addition, the prices of these stocks may be more volatile than stocks of larger, more established companies.
Investing outside the U.S. — Securities of issuers domiciled outside the U.S., or with significant operations outside the U.S., may lose value because of adverse political, social, economic or market developments in the countries or regions in which the issuers operate. 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. 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 settlement and accounting practices and different regulatory, legal and reporting standards, and may be more difficult to value, than those in the U.S. The risks of investing outside the U.S. may be heightened in connection with investments in emerging markets.
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, developing 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. Additionally, there may be increased settlement risks for transactions in local securities.
140 | American Funds Insurance Series |
Investing in bonds — Rising interest rates will generally cause the prices of bonds and other debt securities to fall. Longer maturity debt securities may be subject to greater price fluctuations than shorter maturity debt securities. In addition, 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 having to reinvest the proceeds in lower yielding securities.
Bonds and other debt securities are subject to credit risk, which is the possibility that the credit strength of an issuer will weaken 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. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which a fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The funds’ investment adviser relies on its own credit analysts to research issuers and issues in seeking to mitigate various credit and default risks.
Investing in lower rated bonds — 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, or bonds rated Ba1 or BB+ or below by Nationally Recognized Statistical Rating Organizations.
Thinly traded securities — There may be little trading in the secondary market for particular bonds or other debt securities, which may make them more difficult to value, acquire or sell.
Currency — The prices of, and the income generated by, most debt securities held by a fund may also be affected by changes in relative currency values. If the U.S. dollar appreciates against foreign currencies, the value in U.S. dollars of a fund’s securities denominated in such currencies would generally fall and vice versa. U.S. dollar-denominated securities of foreign issuers may also be affected by changes in relative currency values.
Investing in mortgage-related securities — Mortgage-related securities are subject to prepayment risk, as well as the risks associated with investing in debt securities in general. If interest rates fall and the loans underlying these securities are prepaid faster than expected, a fund may have to reinvest the prepaid principal in lower yielding securities, thus reducing the fund’s income. Conversely, if interest rates increase and the loans underlying the securities are prepaid more slowly than expected, the time in which the securities are expected to be paid off could be extended. This may reduce a fund’s cash for potential reinvestment in higher yielding securities.
Investing in future delivery contracts — Contracts for future delivery of mortgage-related securities, such as to be announced contracts and mortgage dollar rolls, 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 the fund contracts to repurchase could drop below their purchase price. While a fund can preserve capital and generate gains 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 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. 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 money market securities — The values and liquidity of the securities held by a fund may be affected by changing interest rates, changes in the credit quality of the issuers, changes in credit ratings of the securities and general market conditions. For example, the values of these securities may decline when interest rates rise and increase when interest rates fall.
Low interest rate environment — During periods of extremely low short-term interest rates, a fund may not be able to maintain a positive yield.
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.
American Funds Insurance Series | 141 |
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 — 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 would adversely impact the funds’ investment results more than if the funds were invested in a larger number of issuers.
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 employed by the investment adviser in this process 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 risk management strategy of the managed risk fund.
Management — The managed risk funds are subject to the risk that the methods employed by the sub-adviser 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 individual underlying funds, the managed risk funds’ risks are directly related to the risks of the respective underlying fund in which each managed fund invests. For this reason, it is important to understand the risks associated with investing both in the managed risk fund and the respective underlying fund.
Futures — A futures contract is considered a derivative because it derives its value from the price of the underlying security or financial index. The prices of futures contracts can be volatile, and futures contracts may be illiquid.
Hedging — Futures contracts may not provide an effective hedge of the underlying securities because changes in the prices of futures contracts may not track those of the securities they are intended to hedge. In addition, the risk management strategy may not effectively protect the managed risk funds from market declines and will limit the managed risk funds’ participation in market gains. The use of the risk management strategy could cause a managed risk fund to underperform as compared to the underlying fund in certain rising market conditions.
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
Some of the funds have entered into certain investment transactions and contracts as further described.
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.
142 | American Funds Insurance Series |
Short-term securities — The managed risk funds hold shares of the Government Cash Management Fund, a cash management vehicle offered by Bank of New York Mellon (“BNY Mellon”), the funds’ custodian bank. The Government Cash Management Fund is managed by the Dreyfus Corporation.
Unfunded commitments — One of the funds has participated in transactions that involve unfunded commitments, which may obligate the fund to lend additional sums based upon the terms of the loan agreement. As of December 31, 2013, the maximum exposure of unfunded loan commitments for High-Income Bond Fund was $262,000, which would represent 0.01% of the net assets of the fund should such commitments become due.
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. As of December 31, 2013, Global Growth Fund, Global Small Capitalization Fund, International Fund, New World Fund, Global Growth and Income Fund, Growth-Income Fund, Global Balanced Fund, Bond Fund, Global Bond Fund and High-Income Bond Fund had open forward currency contracts to purchase and/or sell currencies.
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 the 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. As of December 31, 2013, Bond Fund, Mortgage Fund and U.S. Government/AAA-Rated Securities Fund had open interest rate swaps.
Futures contracts — The managed risk 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 portfolio volatility and downside equity risk.
Upon entering into futures contracts, and to maintain the fund’s open positions in futures contracts, the fund is required to deposit with a futures broker, or futures commission merchant (“FCM”), in a segregated account in the name of the FCM an amount of cash, U.S. government securities, suitable money market instruments, or other liquid securities, known as “initial margin.” The margin
American Funds Insurance Series | 143 |
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. When initial margin is deposited with brokers, a receivable is recorded in the fund’s statement of assets and liabilities.
On a daily basis, each fund pays or receives “variation margin” based on the increase or decrease in the value of the futures contracts and records variation margin on futures contracts in the 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. 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 did not hold any futures contracts as of December 31, 2013.
The following tables present the financial statement impacts resulting from the funds’ use of forward currency contracts, interest rate swaps and/or futures contracts as of December 31, 2013 (dollars in thousands):
Global Growth Fund | Global Small Capitalization Fund | International Fund | New World Fund | Global Growth and Income Fund | ||||||||||||||||||
Assets | Location on statements of assets and liabilities | |||||||||||||||||||||
Forward currency | Unrealized appreciation on open forward currency contracts | $ | 5,270 | $ | 496 | $ | 5,061 | $ | 878 | $ | 58 | |||||||||||
Forward currency | Receivables for closed forward currency contracts | — | — | — | — | — | ||||||||||||||||
Interest rate swaps | Variation margin on interest rate swaps | — | — | — | — | — | ||||||||||||||||
$ | 5,270 | $ | 496 | $ | 5,061 | $ | 878 | $ | 58 | |||||||||||||
Liabilities | Location on statements of assets and liabilities | |||||||||||||||||||||
Forward currency | Unrealized depreciation on open forward currency contracts | $ | — | $ | 36 | $ | 121 | $ | 38 | $ | — | |||||||||||
Forward currency | Payables for closed forward currency contracts | — | — | �� | — | — | — | |||||||||||||||
Interest rate swaps | Variation margin on interest rate swaps | — | — | — | — | — | ||||||||||||||||
$ | — | $ | 36 | $ | 121 | $ | 38 | $ | — | |||||||||||||
Net realized gain (loss) | Location on statements of operations | |||||||||||||||||||||
Forward currency | Net realized gain (loss) on forward currency contracts | $ | 7,558 | $ | (817 | ) | $ | (11,901 | ) | $ | 1,740 | $ | — | |||||||||
Interest rate swaps | Net realized loss on interest rate swaps | — | — | — | — | — | ||||||||||||||||
Futures contracts | Net realized loss on futures contracts | — | — | — | — | — | ||||||||||||||||
$ | 7,558 | $ | (817 | ) | $ | (11,901 | ) | $ | 1,740 | $ | — | |||||||||||
Net unrealized appreciation | Location on statements of operations | |||||||||||||||||||||
Forward currency | Net unrealized appreciation on forward currency contracts | $ | 5,270 | $ | 448 | $ | 8,074 | $ | 945 | $ | 58 | |||||||||||
Interest rate swaps | Net unrealized appreciation on interest rate swaps | — | — | — | — | — | ||||||||||||||||
$ | 5,270 | $ | 448 | $ | 8,074 | $ | 945 | $ | 58 |
144 | American Funds Insurance Series |
Growth- Income Fund | Global Balanced Fund | Bond Fund | Global Bond Fund | High- Income Bond Fund | ||||||||||||||||||
Assets | Location on statements of assets and liabilities | |||||||||||||||||||||
Forward currency | Unrealized appreciation on open forward currency contracts | $ | 789 | $ | 36 | $ | 6 | $ | 1,248 | $ | — | |||||||||||
Forward currency | Receivables for closed forward currency contracts | — | — | — | 145 | — | ||||||||||||||||
Interest rate swaps | Variation margin on interest rate swaps | — | — | 310 | — | — | ||||||||||||||||
$ | 789 | $ | 36 | $ | 316 | $ | 1,393 | $ | — | |||||||||||||
Liabilities | Location on statements of assets and liabilities | |||||||||||||||||||||
Forward currency | Unrealized depreciation on open forward currency contracts | $ | 177 | $ | 59 | $ | 1,655 | $ | 4,643 | $ | 24 | |||||||||||
Forward currency | Payables for closed forward currency contracts | — | 5 | 72 | 571 | — | ||||||||||||||||
Interest rate swaps | Variation margin on interest rate swaps | — | — | — | — | — | ||||||||||||||||
$ | 177 | $ | 64 | $ | 1,727 | $ | 5,214 | $ | 24 | |||||||||||||
Net realized gain (loss) | Location on statements of operations | |||||||||||||||||||||
Forward currency | Net realized gain (loss) on forward currency contracts | $ | 672 | $ | (357 | ) | $ | — | $ | (42,007 | ) | $ | — | |||||||||
Interest rate swaps | Net realized loss on interest rate swaps | — | — | (21 | ) | — | — | |||||||||||||||
Futures contracts | Net realized loss on futures contracts | — | — | — | — | — | ||||||||||||||||
$ | 672 | $ | (357 | ) | $ | (21 | ) | $ | (42,007 | ) | $ | — | ||||||||||
Net unrealized appreciation (depreciation) | Location on statements of operations | |||||||||||||||||||||
Forward currency | Net unrealized appreciation (depreciation) on forward currency contracts | $ | 612 | $ | 60 | $ | (1,659 | ) | $ | 1,929 | $ | 74 | ||||||||||
Interest rate swaps | Net unrealized appreciation on interest rate swaps | — | — | 334 | — | — | ||||||||||||||||
$ | 612 | $ | 60 | $ | (1,325 | ) | $ | 1,929 | $ | 74 |
American Funds Insurance Series | 145 |
Mortgage Fund | U.S. Government/AAA- Rated Securities Fund | Managed Risk Growth Fund | Managed Risk International Fund | Managed Risk Blue Chip Income and Growth Fund | ||||||||||||||||||
Assets | Location on statements of assets and liabilities | |||||||||||||||||||||
Forward currency | Unrealized appreciation on open forward currency contracts | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Forward currency | Receivables for closed forward currency contracts | — | — | — | — | — | ||||||||||||||||
Interest rate swaps | Variation margin on interest rate swaps | — | 607 | — | — | — | ||||||||||||||||
$ | — | $ | 607 | $ | — | $ | — | $ | — | |||||||||||||
Liabilities | Location on statements of assets and liabilities | |||||||||||||||||||||
Forward currency | Unrealized depreciation on open forward currency contracts | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Forward currency | Payables for closed forward currency contracts | — | — | — | — | — | ||||||||||||||||
Interest rate swaps | Variation margin on interest rate swaps | 24 | — | — | — | — | ||||||||||||||||
$ | 24 | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Net realized gain (loss) | Location on statements of operations | |||||||||||||||||||||
Forward currency | Net realized gain on forward currency contracts | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Interest rate swaps | Net realized loss on interest rate swaps | (54 | ) | (448 | ) | — | — | — | ||||||||||||||
Futures contracts | Net realized loss on futures contracts | — | — | (244 | ) | (288 | ) | (282 | ) | |||||||||||||
$ | (54 | ) | $ | (448 | ) | $ | (244 | ) | $ | (288 | ) | $ | (282 | ) | ||||||||
Net unrealized appreciation (depreciation) | Location on statements of operations | |||||||||||||||||||||
Forward currency | Net unrealized appreciation on forward currency contracts | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Interest rate swaps | Net unrealized appreciation on interest rate swaps | 151 | 4,211 | — | — | — | ||||||||||||||||
$ | 151 | $ | 4,211 | $ | — | $ | — | $ | — |
146 | American Funds Insurance Series |
Managed Risk Growth-Income Fund | Managed Risk Asset Allocation Fund | |||||||||
Assets | Location on statements of assets and liabilities | |||||||||
Forward currency | Unrealized appreciation on open forward currency contracts | $ | — | $ | — | |||||
Forward currency | Receivables for closed forward currency contracts | — | — | |||||||
Interest rate swaps | Variation margin on interest rate swaps | — | — | |||||||
$ | — | $ | — | |||||||
Liabilities | Location on statements of assets and liabilities | |||||||||
Forward currency | Unrealized depreciation on open forward currency contracts | $ | — | $ | — | |||||
Forward currency | Payables for closed forward currency contracts | — | — | |||||||
Interest rate swaps | Variation margin on interest rate swaps | — | — | |||||||
$ | — | $ | — | |||||||
Net realized gain (loss) | Location on statements of operations | |||||||||
Forward currency | Net realized gain on forward currency contracts | $ | — | $ | — | |||||
Interest rate swaps | Net realized loss on interest rate swaps | — | — | |||||||
Futures contracts | Net realized loss on futures contracts | (203 | ) | (1,050 | ) | |||||
$ | (203 | ) | $ | (1,050 | ) | |||||
Net unrealized appreciation (depreciation) | Location on statements of operations | |||||||||
Forward currency | Net unrealized appreciation on forward currency contracts | $ | — | $ | — | |||||
Interest rate swaps | Net unrealized appreciation on interest rate swaps | — | — | |||||||
$ | — | $ | — |
Collateral — Funds that invest in forward currency contracts, interest rate swaps and/or futures contracts have entered into a collateral program. For forward currency contracts, the program calls for the fund to either receive or pledge collateral based on the net gain or loss on unsettled forward currency contracts by counterparty. The purpose of the collateral is to cover potential losses that could occur in the event that either party to the forward currency contract cannot meet its contractual obligations. For interest rate swaps and future contracts, the program calls for the fund to pledge collateral for initial and variation margin by contract.
American Funds Insurance Series | 147 |
Rights of offset — Funds that hold forward currency contracts have enforceable master netting agreements with certain counterparties, where amounts payable by each party to the other in the same currency, with the same settlement date and with the same counterparty, are settled net of each party’s payment obligation. For financial reporting purposes, financial assets and financial liabilities that are subject to netting arrangements are not offset in the funds’ statements of assets and liabilities. The following tables present each fund’s forward currency contracts by counterparty, including those that are subject to potential offset on the statements of assets and liabilities as of December 31, 2013 (dollars in thousands):
Global Growth Fund
Gross amounts not offset in the statement of assets and liabilities and subject to a master netting agreement | ||||||||||||||||||||
Counterparty | Gross amounts recognized in the statement of assets and liabilities | Available to offset | Non-cash collateral* | Cash collateral | Net amount | |||||||||||||||
Assets: | ||||||||||||||||||||
Bank of America, N.A. | $ | 2,838 | $ | — | $ | (2,602 | ) | $ | — | $ | 236 | |||||||||
Bank of New York Mellon | 1,646 | — | (1,487 | ) | — | 159 | ||||||||||||||
Citibank | 786 | — | (655 | ) | — | 131 | ||||||||||||||
$ | 5,270 | $ | — | $ | (4,744 | ) | $ | — | $ | 526 |
International Fund
Gross amounts not offset in the statement of assets and liabilities and subject to a master netting agreement | ||||||||||||||||||||
Counterparty | Gross amounts recognized in the statement of assets and liabilities | Available to offset | Non-cash collateral* | Cash collateral | Net amount | |||||||||||||||
Assets: | ||||||||||||||||||||
Barclays Bank PLC | $ | 4,696 | $ | — | $ | (4,531 | ) | $ | — | $ | 165 | |||||||||
Bank of America, N.A. | 76 | — | — | — | 76 | |||||||||||||||
Citibank | 102 | — | — | — | 102 | |||||||||||||||
HSBC Bank | 187 | — | (30 | ) | — | 157 | ||||||||||||||
$ | 5,061 | $ | — | $ | (4,561 | ) | $ | — | $ | 500 | ||||||||||
Liabilities: | ||||||||||||||||||||
UBS AG | $ | 121 | $ | — | $ | — | $ | — | $ | 121 |
See end of rights of offset tables for footnotes.
148 | American Funds Insurance Series |
New World Fund
Gross amounts not offset in the statement of assets and liabilities and subject to a master netting agreement | ||||||||||||||||||||
Counterparty | Gross amounts recognized in the statement of assets and liabilities | Available to offset | Non-cash collateral* | Cash collateral | Net amount | |||||||||||||||
Assets: | ||||||||||||||||||||
Barclays Bank PLC | $ | 74 | $ | — | $ | — | $ | — | $ | 74 | ||||||||||
Citibank | 7 | (7 | ) | — | — | — | ||||||||||||||
HSBC Bank | 696 | — | (689 | ) | — | 7 | ||||||||||||||
JPMorgan Chase | 36 | — | — | — | 36 | |||||||||||||||
UBS AG | 65 | — | — | — | 65 | |||||||||||||||
$ | 878 | $ | (7 | ) | $ | (689 | ) | $ | — | $ | 182 | |||||||||
Liabilities: | ||||||||||||||||||||
Bank of America, N.A. | $ | 17 | $ | — | $ | — | $ | — | $ | 17 | ||||||||||
Bank of New York Mellon | — | † | — | — | — | — | † | |||||||||||||
Citibank | 21 | (7 | ) | — | — | 14 | ||||||||||||||
$ | 38 | $ | (7 | ) | $ | — | $ | — | $ | 31 |
Global Balanced Fund
Gross amounts not offset in the statement of assets and liabilities and subject to a master netting agreement | ||||||||||||||||||||
Counterparty | Gross amounts recognized in the statement of assets and liabilities | Available to offset | Non-cash collateral* | Cash collateral | Net amount | |||||||||||||||
Assets: | ||||||||||||||||||||
Bank of America, N.A. | $ | 22 | $ | (18 | ) | $ | — | $ | — | $ | 4 | |||||||||
Citibank | 7 | (7 | ) | — | — | — | ||||||||||||||
Credit Suisse AG | 1 | — | — | — | 1 | |||||||||||||||
HSBC Bank | 6 | (1 | ) | — | — | 5 | ||||||||||||||
$ | 36 | $ | (26 | ) | $ | — | $ | — | $ | 10 | ||||||||||
Liabilities: | ||||||||||||||||||||
Bank of America, N.A. | $ | 18 | $ | (18 | ) | $ | — | $ | — | $ | — | |||||||||
Bank of New York Mellon | — | † | — | — | — | — | † | |||||||||||||
Citibank | 30 | (7 | ) | — | — | 23 | ||||||||||||||
HSBC Bank | 1 | (1 | ) | — | — | — | ||||||||||||||
UBS AG | 15 | — | — | — | 15 | |||||||||||||||
$ | 64 | $ | (26 | ) | $ | — | $ | — | $ | 38 |
American Funds Insurance Series | 149 |
Bond Fund
Gross amounts not offset in the statement of assets and liabilities and subject to a master netting agreement | ||||||||||||||||||||
Counterparty | Gross amounts recognized in the statement of assets and liabilities | Available to offset | Non-cash collateral* | Cash collateral | Net amount | |||||||||||||||
Assets: | ||||||||||||||||||||
Citibank | $ | 6 | $ | (6 | ) | $ | — | $ | — | $ | — | |||||||||
Liabilities: | ||||||||||||||||||||
Bank of America, N.A. | $ | 72 | $ | — | $ | — | $ | — | $ | 72 | ||||||||||
Bank of New York Mellon | 7 | — | — | — | 7 | |||||||||||||||
Citibank | 543 | (6 | ) | (438 | ) | — | 99 | |||||||||||||
JPMorgan Chase | 1,105 | — | (895 | ) | — | 210 | ||||||||||||||
$ | 1,727 | $ | (6 | ) | $ | (1,333 | ) | $ | — | $ | 388 |
Global Bond Fund
Gross amounts not offset in the statement of assets and liabilities and subject to a master netting agreement | ||||||||||||||||||||
Counterparty | Gross amounts recognized in the statement of assets and liabilities | Available to offset | Non-cash collateral* | Cash collateral | Net amount | |||||||||||||||
Assets: | ||||||||||||||||||||
Bank of America, N.A. | $ | 621 | $ | (621 | ) | $ | — | $ | — | $ | — | |||||||||
Bank of New York Mellon | 167 | (167 | ) | — | — | — | ||||||||||||||
Barclays Bank PLC | 12 | — | — | — | 12 | |||||||||||||||
Citibank | 98 | (98 | ) | — | — | — | ||||||||||||||
HSBC Bank | 57 | (57 | ) | — | — | — | ||||||||||||||
JPMorgan Chase | 145 | (145 | ) | — | — | — | ||||||||||||||
UBS AG | 293 | (293 | ) | — | — | — | ||||||||||||||
$ | 1,393 | $ | (1,381 | ) | $ | — | $ | — | $ | 12 | ||||||||||
Liabilities: | ||||||||||||||||||||
Bank of America, N.A. | $ | 667 | $ | (621 | ) | $ | — | $ | — | $ | 46 | |||||||||
Bank of New York Mellon | 710 | (167 | ) | (380 | ) | — | 163 | |||||||||||||
Citibank | 742 | (98 | ) | (616 | ) | — | 28 | |||||||||||||
Credit Suisse AG | 13 | — | — | — | 13 | |||||||||||||||
HSBC Bank | 370 | (57 | ) | — | — | 313 | ||||||||||||||
JPMorgan Chase | 544 | (145 | ) | (280 | ) | — | 119 | |||||||||||||
UBS AG | 2,168 | (293 | ) | (1,635 | ) | — | 240 | |||||||||||||
$ | 5,214 | $ | (1,381 | ) | $ | (2,911 | ) | $ | — | $ | 922 |
* | Non-cash collateral is shown on a settlement basis. |
† | Amount less than one thousand. |
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.
150 | American Funds Insurance Series |
As of and during the period ended December 31, 2013, 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 the statements of operations. During the period, none of the funds incurred any interest or penalties.
The funds are not subject to examination by U.S. federal tax authorities for tax years before 2010. Global Balanced Fund and Mortgage Fund are not subject to examination by U.S. federal tax authorities for tax years before 2011, the year the funds commenced operations. Managed Risk Asset Allocation Fund is not subject to examination by U.S. federal tax authorities for tax years before 2012, the year the fund commenced operations. Managed Risk Growth Fund, Managed Risk International Fund, Managed Risk Blue Chip Income and Growth Fund and Managed Risk Growth-Income Fund are not subject to examination by U.S. federal tax authorities for tax years before 2013, the year the funds commenced operations.
The funds are not subject to examination by state tax authorities for tax years before 2009. Global Balanced Fund and Mortgage Fund are not subject to examination by state tax authorities for tax years before 2011, the year the funds commenced operations. Managed Risk Asset Allocation Fund is not subject to examination by state tax authorities for tax years before 2012, the year the fund commenced operations. Managed Risk Growth Fund, Managed Risk International Fund, Managed Risk Blue Chip Income and Growth Fund and Managed Risk Growth-Income Fund are not subject to examination by state tax authorities for tax years before 2013, the year the funds commenced operations.
The following funds are not subject to examination by tax authorities outside the U.S. for the years indicated: Global Growth Fund, Global Small Capitalization Fund, Growth Fund, International Fund and New World Fund for tax years before 2006; Global Growth and Income Fund for tax years before 2007; Growth-Income Fund for tax years before 2010; and International Growth and Income Fund and Global Balanced Fund for tax years before 2011. All other funds are not subject to examination by tax authorities outside the U.S.
Non-U.S. taxation — Dividend and interest income are recorded net of non-U.S. taxes paid. Gains realized by the funds on the sale of securities in certain countries are subject to non-U.S. taxes. The funds record a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.
Distributions — Distributions paid to shareholders are based on 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; net operating losses; 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.
As indicated in the tables on the following pages, some of the funds had capital loss carryforwards available at December 31, 2013. These will be used to offset any capital gains realized by the funds in future years through the expiration dates. Funds with capital loss carryforwards will not make distributions from capital gains while capital loss carryforwards remain.
Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 31, 2010, may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.
American Funds Insurance Series | 151 |
Additional tax basis disclosures are as follows (dollars in thousands):
Global Growth Fund | Global Small Capitalization Fund | Growth Fund | International Fund | New World Fund | Blue Chip Income and Growth Fund | |||||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||
Undistributed ordinary income | $ | 20,842 | $ | — | $ | 39,391 | $ | 5,567 | $ | 10,239 | $ | 27,244 | ||||||||||||
Undistributed long-term capital gain | 559,294 | 18,718 | 1,119,339 | — | 257,909 | — | ||||||||||||||||||
Capital loss carryforward: | ||||||||||||||||||||||||
Expiring 2017 | — | — | — | (301,746 | ) | — | (24,747 | ) | ||||||||||||||||
Expiring 2018 | — | — | — | (84,504 | ) | — | — | |||||||||||||||||
$ | — | $ | — | $ | — | $ | (386,250 | ) | $ | — | $ | (24,747 | ) | |||||||||||
Capital loss carryforwards utilized | $ | 353,831 | $ | 433,591 | $ | 1,595,427 | $ | 900,664 | $ | — | $ | 474,020 | ||||||||||||
Reclassification to (from) undistributed/distributions in excess of net investment income from (to) undistributed net realized gain/accumulated net realized loss | $ | 16,454 | $ | 15,554 | $ | (4,522 | ) | $ | 2,737 | $ | 758 | $ | — | |||||||||||
Reclassification to distributions in excess of net investment income from capital paid in on shares of beneficial interest | — | 22,478 | — | — | — | — | ||||||||||||||||||
Gross unrealized appreciation on investment securities | $ | 1,933,868 | $ | 1,462,100 | $ | 10,265,826 | $ | 2,890,916 | $ | 642,116 | $ | 1,946,845 | ||||||||||||
Gross unrealized depreciation on investment securities | (90,252 | ) | (312,780 | ) | (180,489 | ) | (291,974 | ) | (143,578 | ) | (67,126 | ) | ||||||||||||
Net unrealized appreciation on investment securities | $ | 1,843,616 | $ | 1,149,320 | $ | 10,085,337 | $ | 2,598,942 | $ | 498,538 | $ | 1,879,719 | ||||||||||||
Cost of investment securities | $ | 4,065,474 | $ | 3,047,871 | $ | 13,519,244 | $ | 6,692,989 | $ | 2,197,524 | $ | 4,718,844 |
Global Growth and Income Fund | Growth- Income Fund | International Growth and Income Fund | Asset Allocation Fund | Global Balanced Fund | Bond Fund | |||||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||
Undistributed ordinary income | $ | 9,315 | $ | 66,475 | $ | — | $ | 112,411 | $ | 70 | $ | 32,510 | ||||||||||||
Late year ordinary loss deferral* | — | — | (484 | ) | — | — | — | |||||||||||||||||
Undistributed long-term capital gain | — | 1,199,030 | 9,645 | 741,534 | 1,690 | 2,533 | ||||||||||||||||||
Post-October capital loss deferral* | — | — | (2,420 | ) | — | — | — | |||||||||||||||||
Capital loss carryforward: | ||||||||||||||||||||||||
Expiring 2017 | (273,401 | ) | — | — | — | — | — | |||||||||||||||||
Expiring 2018 | (297 | ) | — | — | — | — | — | |||||||||||||||||
$ | (273,698 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Capital loss carryforwards utilized | $ | 241,602 | $ | 1,762,761 | $ | 11,961 | $ | 11,934 | $ | 1,359 | $ | — | ||||||||||||
Reclassification (from) to distributions in excess of/undistributed net investment income (to) from accumulated net realized loss/undistributed net realized gain | $ | (24 | ) | $ | 604 | $ | 607 | $ | 4,753 | $ | (595 | ) | $ | 10,843 | ||||||||||
Gross unrealized appreciation on investment securities | $ | 509,146 | $ | 9,343,346 | $ | 150,343 | $ | 4,343,902 | $ | 27,220 | $ | 156,342 | ||||||||||||
Gross unrealized depreciation on investment securities | (61,704 | ) | (317,793 | ) | (19,815 | ) | (152,353 | ) | (3,641 | ) | (142,275 | ) | ||||||||||||
Net unrealized appreciation on investment securities | $ | 447,442 | $ | 9,025,553 | $ | 130,528 | $ | 4,191,549 | $ | 23,579 | $ | 14,067 | ||||||||||||
Cost of investment securities | $ | 1,567,607 | $ | 16,037,100 | $ | 823,916 | $ | 12,348,161 | $ | 168,006 | $ | 9,731,586 |
152 | American Funds Insurance Series |
Global Bond Fund | High-Income Bond Fund | Mortgage Fund | U.S. Government/ AAA-Rated Securities Fund | Cash Management Fund | ||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||
Undistributed ordinary income | $ | 4,548 | $ | 19,230 | $ | 21 | $ | 7,043 | $ | — | ||||||||||
Undistributed long-term capital gain | 22,985 | — | — | — | — | |||||||||||||||
Capital loss carryforward: | ||||||||||||||||||||
No expiration | — | — | (2,303 | ) | (18,389 | ) | — | |||||||||||||
Expiring 2017 | — | (77,683 | ) | — | — | — | ||||||||||||||
$ | — | $ | (77,683 | ) | $ | (2,303 | ) | $ | (18,389 | ) | $ | — | ||||||||
Capital loss carryforwards utilized | $ | — | $ | 45,225 | $ | — | $ | — | $ | — | † | |||||||||
Reclassification (from) to undistributed/ distributions in excess of net investment income (to) from undistributed net realized gain/accumulated net realized loss | $ | (54,124 | ) | $ | 1,087 | $ | 1,108 | $ | 8,910 | $ | — | |||||||||
Reclassification to accumulated net | ||||||||||||||||||||
investment loss from capital paid in on shares of beneficial interest | — | — | — | — | 2,276 | |||||||||||||||
Gross unrealized appreciation on investment securities | $ | 75,740 | $ | 97,659 | $ | 1,675 | $ | 11,661 | $ | 14 | ||||||||||
Gross unrealized depreciation on investment securities | (53,177 | ) | (84,421 | ) | (3,018 | ) | (63,523 | ) | (1 | ) | ||||||||||
Net unrealized appreciation (depreciation) on investment securities | $ | 22,563 | $ | 13,238 | $ | (1,343 | ) | $ | (51,862 | ) | $ | 13 | ||||||||
Cost of investment securities | $ | 2,560,978 | $ | 1,894,944 | $ | 262,060 | $ | 3,643,594 | $ | 458,408 |
Managed Risk Growth Fund | Managed Risk International Fund | Managed Risk Blue Chip Income and Growth Fund | Managed Risk Growth- Income Fund | Managed Risk Asset Allocation Fund | ||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||
Undistributed ordinary income | $ | 2 | $ | 6 | $ | 4 | $ | 3 | $ | 89 | ||||||||||
Capital loss carryforward: | ||||||||||||||||||||
No expiration | (126 | ) | (239 | ) | (257 | ) | (178 | ) | (131 | ) | ||||||||||
Reclassification (from) to undistributed net investment income (to) from accumulated net realized loss | $ | — | † | $ | (37 | ) | $ | — | † | $ | — | † | $ | 43 | ||||||
Gross unrealized appreciation on investment securities | $ | 2,017 | $ | 1,139 | $ | 1,871 | $ | 1,997 | $ | 54,954 | ||||||||||
Gross unrealized depreciation on investment securities | — | — | — | — | — | |||||||||||||||
Net unrealized appreciation on investment securities | $ | 2,017 | $ | 1,139 | $ | 1,871 | $ | 1,997 | $ | 54,954 | ||||||||||
Cost of investment securities | $ | 25,792 | $ | 15,658 | $ | 24,370 | $ | 22,091 | $ | 848,143 |
* | These deferrals are considered incurred in the subsequent year. |
† | Amount less than one thousand. |
American Funds Insurance Series | 153 |
The tax character of distributions paid to shareholders of each fund was as follows (dollars in thousands):
Global Growth Fund
Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||
Ordinary | Long-term | Total | Ordinary | Long-term | Total | |||||||||||||||||||
Share class | income | capital gains | distributions paid | income | capital gains | distributions paid | ||||||||||||||||||
Class 1 | $ | 21,540 | — | $ | 21,540 | $ | 16,161 | — | $ | 16,161 | ||||||||||||||
Class 2 | 50,234 | — | 50,234 | 32,113 | — | 32,113 | ||||||||||||||||||
Class 4 | 6 | — | 6 | — | 1,2 | — | — | 1,2 | ||||||||||||||||
Total | $ | 71,780 | — | $ | 71,780 | $ | 48,274 | — | $ | 48,274 |
Global Small Capitalization Fund
Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||
Ordinary | Long-term | Total | Ordinary | Long-term | Total | |||||||||||||||||||
Share class | income | capital gains | distributions paid | income | capital gains | distributions paid | ||||||||||||||||||
Class 1 | $ | 9,160 | — | $ | 9,160 | $ | 14,672 | — | $ | 14,672 | ||||||||||||||
Class 2 | 24,174 | — | 24,174 | 34,610 | — | 34,610 | ||||||||||||||||||
Class 4 | 3 | — | 3 | — | 1,2 | — | — | 1,2 | ||||||||||||||||
Total | $ | 33,337 | — | $ | 33,337 | $ | 49,282 | — | $ | 49,282 |
Growth Fund
Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||
Ordinary | Long-term | Total | Ordinary | Long-term | Total | |||||||||||||||||||
Share class | income | capital gains | distributions paid | income | capital gains | distributions paid | ||||||||||||||||||
Class 1 | $ | 77,038 | — | $ | 77,038 | $ | 75,334 | — | $ | 75,334 | ||||||||||||||
Class 2 | 142,471 | — | 142,471 | 122,858 | — | 122,858 | ||||||||||||||||||
Class 3 | 1,987 | — | 1,987 | 1,643 | — | 1,643 | ||||||||||||||||||
Class 4 | 32 | — | 32 | — | 1,2 | — | — | 1,2 | ||||||||||||||||
Total | $ | 221,528 | — | $ | 221,528 | $ | 199,835 | — | $ | 199,835 |
International Fund
Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||
Ordinary | Long-term | Total | Ordinary | Long-term | Total | |||||||||||||||||||
Share class | income | capital gains | distributions paid | income | capital gains | distributions paid | ||||||||||||||||||
Class 1 | $ | 50,434 | — | $ | 50,434 | $ | 60,357 | — | $ | 60,357 | ||||||||||||||
Class 2 | 75,225 | — | 75,225 | 78,128 | — | 78,128 | ||||||||||||||||||
Class 3 | 614 | — | 614 | 650 | — | 650 | ||||||||||||||||||
Class 4 | 23 | — | 23 | — | 1,2 | — | — | 1,2 | ||||||||||||||||
Total | $ | 126,296 | — | $ | 126,296 | $ | 139,135 | — | $ | 139,135 |
New World Fund
Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||
Ordinary | Long-term | Total | Ordinary | Long-term | Total | |||||||||||||||||||
Share class | income | capital gains | distributions paid | income | capital gains | distributions paid | ||||||||||||||||||
Class 1 | $ | 21,178 | $ | 5,690 | $ | 26,868 | $ | 13,526 | — | $ | 13,526 | |||||||||||||
Class 2 | 17,409 | 5,994 | 23,403 | 13,443 | — | 13,443 | ||||||||||||||||||
Class 4 | 93 | 4 | 97 | — | 1,2 | — | — | 1,2 | ||||||||||||||||
Total | $ | 38,680 | $ | 11,688 | $ | 50,368 | $ | 26,969 | — | $ | 26,969 |
See end of distributions tables for footnotes.
154 | American Funds Insurance Series |
Blue Chip Income and Growth Fund
Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||
Ordinary | Long-term | Total | Ordinary | Long-term | Total | |||||||||||||||||||
Share class | income | capital gains | distributions paid | income | capital gains | distributions paid | ||||||||||||||||||
Class 1 | $ | 54,555 | — | $ | 54,555 | $ | 29,511 | — | $ | 29,511 | ||||||||||||||
Class 2 | 66,918 | — | 66,918 | 67,663 | — | 67,663 | ||||||||||||||||||
Class 4 | 2 | — | 2 | — | 1,2 | — | — | 1,2 | ||||||||||||||||
Total | $ | 121,475 | — | $ | 121,475 | $ | 97,174 | — | $ | 97,174 |
Global Growth and Income Fund
Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||
Ordinary | Long-term | Total | Ordinary | Long-term | Total | |||||||||||||||||||
Share class | income | capital gains | distributions paid | income | capital gains | distributions paid | ||||||||||||||||||
Class 1 | $ | 6,810 | — | $ | 6,810 | $ | 4,745 | — | $ | 4,745 | ||||||||||||||
Class 2 | 56,388 | — | 56,388 | 45,110 | — | 45,110 | ||||||||||||||||||
Class 4 | 19 | — | 19 | — | 1,2 | — | — | 1,2 | ||||||||||||||||
Total | $ | 63,217 | — | $ | 63,217 | $ | 49,855 | — | $ | 49,855 |
Growth-Income Fund
Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||
Ordinary | Long-term | Total | Ordinary | Long-term | Total | |||||||||||||||||||
Share class | income | capital gains | distributions paid | income | capital gains | distributions paid | ||||||||||||||||||
Class 1 | $ | 142,502 | — | $ | 142,502 | $ | 179,283 | — | $ | 179,283 | ||||||||||||||
Class 2 | 185,855 | — | 185,855 | 213,820 | — | 213,820 | ||||||||||||||||||
Class 3 | 2,493 | — | 2,493 | 2,787 | — | 2,787 | ||||||||||||||||||
Class 4 | 32 | — | 32 | — | 1,2 | — | — | 1,2 | ||||||||||||||||
Total | $ | 330,882 | — | $ | 330,882 | $ | 395,890 | — | $ | 395,890 |
International Growth and Income Fund
Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||
Ordinary | Long-term | Total | Ordinary | Long-term | Total | |||||||||||||||||||
Share class | income | capital gains | distributions paid | income | capital gains | distributions paid | ||||||||||||||||||
Class 1 | $ | 19,657 | $ | 9,002 | $ | 28,659 | $ | 4,726 | — | $ | 4,726 | |||||||||||||
Class 2 | 6,724 | 3,354 | 10,078 | 4,685 | — | 4,685 | ||||||||||||||||||
Class 4 | 8 | 3 | 11 | — | 1,2 | — | — | 1,2 | ||||||||||||||||
Total | $ | 26,389 | $ | 12,359 | $ | 38,748 | $ | 9,411 | — | $ | 9,411 |
Asset Allocation Fund
Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||
Ordinary | Long-term | Total | Ordinary | Long-term | Total | |||||||||||||||||||
Share class | income | capital gains | distributions paid | income | capital gains | distributions paid | ||||||||||||||||||
Class 1 | $ | 160,436 | — | $ | 160,436 | $ | 149,689 | — | $ | 149,689 | ||||||||||||||
Class 2 | 79,271 | — | 79,271 | 99,191 | — | 99,191 | ||||||||||||||||||
Class 3 | 607 | — | 607 | 742 | — | 742 | ||||||||||||||||||
Class 4 | 4 | — | 4 | — | 1,2 | — | — | 1,2 | ||||||||||||||||
Total | $ | 240,318 | — | $ | 240,318 | $ | 249,622 | — | $ | 249,622 |
Global Balanced Fund
Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||
Ordinary | Long-term | Total | Ordinary | Long-term | Total | |||||||||||||||||||
Share class | income | capital gains | distributions paid | income | capital gains | distributions paid | ||||||||||||||||||
Class 1 | $ | 557 | $ | 260 | $ | 817 | $ | 562 | — | $ | 562 | |||||||||||||
Class 2 | 2,083 | 1,129 | 3,212 | 1,835 | — | 1,835 | ||||||||||||||||||
Class 4 | — | 2 | — | 2 | — | 2 | — | 1,2 | — | — | 1,2 | |||||||||||||
Total | $ | 2,640 | $ | 1,389 | $ | 4,029 | $ | 2,397 | — | $ | 2,397 |
American Funds Insurance Series | 155 |
Bond Fund
Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||
Ordinary | Long-term | Total | Ordinary | Long-term | Total | |||||||||||||||||||
Share class | income | capital gains | distributions paid | income | capital gains | distributions paid | ||||||||||||||||||
Class 1 | $ | 89,562 | $ | 43,797 | $ | 133,359 | $ | 106,210 | — | $ | 106,210 | |||||||||||||
Class 2 | 86,573 | 53,541 | 140,114 | 125,665 | — | 125,665 | ||||||||||||||||||
Class 4 | 45 | 6 | 51 | — | 1,2 | — | — | 1,2 | ||||||||||||||||
Total | $ | 176,180 | $ | 97,344 | $ | 273,524 | $ | 231,875 | — | $ | 231,875 |
Global Bond Fund
Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||
Ordinary | Long-term | Total | Ordinary | Long-term | Total | |||||||||||||||||||
Share class | income | capital gains | distributions paid | income | capital gains | distributions paid | ||||||||||||||||||
Class 1 | $ | 6,185 | $ | 7,310 | $ | 13,495 | $ | 23,288 | $ | 3,369 | $ | 26,657 | ||||||||||||
Class 2 | 8,801 | 10,402 | 19,203 | 42,360 | 7,923 | 50,283 | ||||||||||||||||||
Class 4 | — | 2 | — | 2 | — | 2 | — | 1,2 | — | — | 1,2 | |||||||||||||
Total | $ | 14,986 | $ | 17,712 | $ | 32,698 | $ | 65,648 | $ | 11,292 | $ | 76,940 |
High-Income Bond Fund
Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||
Ordinary | Long-term | Total | Ordinary | Long-term | Total | |||||||||||||||||||
Share class | income | capital gains | distributions paid | income | capital gains | distributions paid | ||||||||||||||||||
Class 1 | $ | 55,659 | — | $ | 55,659 | $ | 62,358 | — | $ | 62,358 | ||||||||||||||
Class 2 | 70,100 | — | 70,100 | 79,441 | — | 79,441 | ||||||||||||||||||
Class 3 | 1,237 | — | 1,237 | 1,459 | — | 1,459 | ||||||||||||||||||
Class 4 | 5 | — | 5 | — | 1,2 | — | — | 1,2 | ||||||||||||||||
Total | $ | 127,001 | — | $ | 127,001 | $ | 143,258 | — | $ | 143,258 |
Mortgage Fund
Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||
Ordinary | Long-term | Total | Ordinary | Long-term | Total | |||||||||||||||||||
Share class | income | capital gains | distributions paid | income | capital gains | distributions paid | ||||||||||||||||||
Class 1 | $ | 1,647 | $ | 46 | $ | 1,693 | $ | 1,305 | — | $ | 1,305 | |||||||||||||
Class 2 | 296 | 15 | 311 | 648 | — | 648 | ||||||||||||||||||
Class 4 | — | 2 | — | 2 | — | 2 | — | 1,2 | — | — | 1,2 | |||||||||||||
Total | $ | 1,943 | $ | 61 | $ | 2,004 | $ | 1,953 | — | $ | 1,953 |
U.S. Government/AAA-Rated Securities Fund
Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||
Ordinary | Long-term | Total | Ordinary | Long-term | Total | |||||||||||||||||||
Share class | income | capital gains | distributions paid | income | capital gains | distributions paid | ||||||||||||||||||
Class 1 | $ | 35,942 | $ | 25,494 | $ | 61,436 | $ | 45,898 | $ | 27,829 | $ | 73,727 | ||||||||||||
Class 2 | 35,681 | 28,443 | 64,124 | 47,011 | 31,761 | 78,772 | ||||||||||||||||||
Class 3 | 318 | 255 | 573 | 493 | 330 | 823 | ||||||||||||||||||
Class 4 | 2 | — | 2 | 2 | — | 1,2 | — | — | 1,2 | |||||||||||||||
Total | $ | 71,943 | $ | 54,192 | $ | 126,135 | $ | 93,402 | $ | 59,920 | $ | 153,322 |
156 | American Funds Insurance Series |
Managed Risk Growth Fund
Year ended December 31, 20133 | ||||||||||||||||||||||||
Ordinary | Long-term | Total | ||||||||||||||||||||||
Share class | income | capital gains | distributions paid | |||||||||||||||||||||
Class P1 | $ | 1 | — | $ | 1 | |||||||||||||||||||
Class P2 | 139 | — | 139 | |||||||||||||||||||||
Total | $ | 140 | — | $ | 140 |
Managed Risk International Fund
Year ended December 31, 20133 | ||||||||||||||||||||||||
Ordinary | Long-term | Total | ||||||||||||||||||||||
Share class | income | capital gains | distributions paid | |||||||||||||||||||||
Class P1 | $ | 1 | — | $ | 1 | |||||||||||||||||||
Class P2 | 113 | — | 113 | |||||||||||||||||||||
Total | $ | 114 | — | $ | 114 |
Managed Risk Blue Chip Income and Growth Fund
Year ended December 31, 20133 | ||||||||||||||||||||||||
Ordinary | Long-term | Total | ||||||||||||||||||||||
Share class | income | capital gains | distributions paid | |||||||||||||||||||||
Class P1 | $ | 2 | — | $ | 2 | |||||||||||||||||||
Class P2 | 340 | — | 340 | |||||||||||||||||||||
Total | $ | 342 | — | $ | 342 |
Managed Risk Growth-Income Fund
Year ended December 31, 20133 | ||||||||||||||||||||||||
Ordinary | Long-term | Total | ||||||||||||||||||||||
Share class | income | capital gains | distributions paid | |||||||||||||||||||||
Class P1 | $ | 1 | — | $ | 1 | |||||||||||||||||||
Class P2 | 201 | — | 201 | |||||||||||||||||||||
Total | $ | 202 | — | $ | 202 |
Managed Risk Asset Allocation Fund
Year ended December 31, 2013 | Year ended December 31, 20124 | |||||||||||||||||||||||
Ordinary | Long-term | Total | Ordinary | Long-term | Total | |||||||||||||||||||
Share class | income | capital gains | distributions paid | income | capital gains | distributions paid | ||||||||||||||||||
Class P1 | $ | 1,126 | — | $ | 1,126 | $ | 111 | — | $ | 111 | ||||||||||||||
Class P2 | 7,025 | — | 7,025 | 206 | — | 206 | ||||||||||||||||||
Total | $ | 8,151 | — | $ | 8,151 | $ | 317 | — | $ | 317 |
1 | Class 4 was offered beginning December 14, 2012. |
2 | Amount less than one thousand. |
3 | For the period May 1, 2013, commencement of operations, through December 31, 2013. |
4 | For the period September 28, 2012, commencement of operations, through December 31, 2012. |
American Funds Insurance Series | 157 |
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 related parties to the funds.
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 average net asset levels increase. Sub-advisory fees for the managed risk funds are paid by CRMC to Milliman. The managed risk funds are not responsible for paying any sub-advisory fees.
Investment advisory services waivers — The series’ board of trustees approved an amended agreement for Asset Allocation Fund and Global Bond Fund effective January 1, 2014, that provides for reduced annual rates as reflected in the table below. During the year ended December 31, 2013, CRMC voluntarily reduced investment advisory services fees to the proposed rates for Asset Allocation Fund. CRMC is also currently waiving a portion of its investment advisory services fees for each of the managed risk funds. Investment advisory services fees are presented in each fund’s statement of operations gross of the waivers from CRMC. For the year ended December 31, 2013, total investment advisory services fees waived by CRMC were $261,000.
The range of rates and asset levels and the current annualized rates of average net assets for each fund, before and after the investment advisory services waiver, are as follows:
For the | For the | |||||||||||||||||||||||
year ended | year ended | |||||||||||||||||||||||
Rates | Net asset level (in billions) | December 31, | December 31, | |||||||||||||||||||||
Beginning | Ending | In excess | 2013, | 2013, | ||||||||||||||||||||
Fund | with | with | Up to | of | before waiver | after waiver | ||||||||||||||||||
Global Growth Fund | .690 | % | .460 | % | $ | .6 | $ | 5.0 | .52 | % | .52 | % | ||||||||||||
Global Small Capitalization Fund | .800 | .635 | .6 | 5.0 | .70 | .70 | ||||||||||||||||||
Growth Fund | .500 | .280 | .6 | 34.0 | .33 | .33 | ||||||||||||||||||
International Fund | .690 | .430 | .5 | 21.0 | .49 | .49 | ||||||||||||||||||
New World Fund | .850 | .620 | .5 | 2.5 | .73 | .73 | ||||||||||||||||||
Blue Chip Income and Growth Fund | .500 | .370 | .6 | 4.0 | .40 | .40 | ||||||||||||||||||
Global Growth and Income Fund | .690 | .480 | .6 | 3.0 | .60 | .60 | ||||||||||||||||||
Growth-Income Fund | .500 | .219 | .6 | 34.0 | .27 | .27 | ||||||||||||||||||
International Growth and Income Fund | .690 | .530 | .5 | 1.0 | .65 | .65 | ||||||||||||||||||
Asset Allocation Fund | .500 | .244 | .6 | 13.0 | .29 | .28 | ||||||||||||||||||
Global Balanced Fund | .660 | .510 | .5 | 1.0 | .66 | .66 | ||||||||||||||||||
Bond Fund | .480 | .330 | .6 | 8.0 | .37 | .37 | ||||||||||||||||||
Global Bond Fund | .570 | .450 | 1.0 | 3.0 | .53 | .53 | ||||||||||||||||||
High-Income Bond Fund | .500 | .420 | .6 | 2.0 | .46 | .46 | ||||||||||||||||||
Mortgage Fund | .420 | .290 | .6 | 3.0 | .42 | .42 | ||||||||||||||||||
U.S. Government/AAA-Rated Securities Fund | .420 | .290 | .6 | 3.0 | .33 | .33 | ||||||||||||||||||
Cash Management Fund | .320 | .270 | 1.0 | 2.0 | .32 | .32 | ||||||||||||||||||
Managed Risk Growth Fund | .250 | all | .25 | .20 | ||||||||||||||||||||
Managed Risk International Fund | .250 | all | .25 | .20 | ||||||||||||||||||||
Managed Risk Blue Chip Income and Growth Fund | .250 | all | .25 | .20 | ||||||||||||||||||||
Managed Risk Growth-Income Fund | .250 | all | .25 | .20 | ||||||||||||||||||||
Managed Risk Asset Allocation Fund | .250 | all | .25 | .20 |
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 following table. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans.
158 | American Funds Insurance Series |
Share class | Currently approved limits | Plan limits | ||||||
Class 2 | 0.25 | % | 0.25 | % | ||||
Class 3 | 0.18 | 0.18 | ||||||
Class 4 | 0.25 | 0.25 | ||||||
Class P1 | 0.00 | 0.25 | ||||||
Class P2 | 0.25 | 0.50 |
Insurance administrative services — The series has an insurance administrative services plan for Class 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 funds 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. |
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 that applies to all funds except the managed risk funds. Under the agreement, each share class pays an annual fee of 0.01% based on its respective average daily net assets to compensate CRMC for providing administrative services. These services include, but are not limited to, coordinating, monitoring, assisting and overseeing third-parties that provide services to fund shareholders. |
Accounting and administrative services — The managed risk funds have a sub-administration agreement with BNY Mellon under which the funds compensate 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. |
Reimbursement of fees and expenses — CRMC is currently reimbursing a portion of other expenses for each of the managed risk funds so that each fund’s expenses do not exceed 0.28% of its respective average daily net assets. Other expenses exclude investment advisory services and distribution services fees. For the year ended December 31, 2013, total expenses reimbursed by CRMC were $244,000. |
Class-specific expenses under the agreements described above were as follows (dollars in thousands):
Global Growth Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
services | services | services | ||||||||||
Class 1 | $ | — | $ | — | $ | 162 | ||||||
Class 2 | 10,071 | — | 403 | |||||||||
Class 4 | — | * | — | * | — | * | ||||||
Total class-specific expenses | $ | 10,071 | $ | — | * | $ | 565 |
Global Small Capitalization Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
services | services | services | ||||||||||
Class 1 | $ | — | $ | — | $ | 109 | ||||||
Class 2 | 6,980 | — | 279 | |||||||||
Class 4 | 3 | 2 | — | * | ||||||||
Total class-specific expenses | $ | 6,983 | $ | 2 | $ | 388 |
Growth Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
services | services | services | ||||||||||
Class 1 | $ | — | $ | — | $ | 681 | ||||||
Class 2 | 38,968 | — | 1,559 | |||||||||
Class 3 | 362 | — | 20 | |||||||||
Class 4 | 4 | 4 | — | * | ||||||||
Total class-specific expenses | $ | 39,334 | $ | 4 | $ | 2,260 |
International Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
services | services | services | ||||||||||
Class 1 | $ | — | $ | — | $ | 338 | ||||||
Class 2 | 13,958 | — | 558 | |||||||||
Class 3 | 79 | — | 5 | |||||||||
Class 4 | 2 | 2 | — | * | ||||||||
Total class-specific expenses | $ | 14,039 | $ | 2 | $ | 901 |
See end of class-specific expenses tables for footnote.
American Funds Insurance Series | 159 |
New World Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
services | services | services | ||||||||||
Class 1 | $ | — | $ | — | $ | 127 | ||||||
Class 2 | 3,296 | — | 132 | |||||||||
Class 4 | 5 | 5 | — | * | ||||||||
Total class-specific expenses | $ | 3,301 | $ | 5 | $ | 259 |
Blue Chip Income and Growth Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
services | services | services | ||||||||||
Class 1 | $ | — | $ | — | $ | 233 | ||||||
Class 2 | 8,994 | — | 360 | |||||||||
Class 4 | — | * | — | * | — | * | ||||||
Total class-specific expenses | $ | 8,994 | $ | — | * | $ | 593 |
Global Growth and Income Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
services | services | services | ||||||||||
Class 1 | $ | — | $ | — | $ | 19 | ||||||
Class 2 | 4,566 | — | 183 | |||||||||
Class 4 | — | * | — | * | — | * | ||||||
Total class-specific expenses | $ | 4,566 | $ | — | * | $ | 202 |
Growth-Income Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
services | services | services | ||||||||||
Class 1 | $ | — | $ | — | $ | 921 | ||||||
Class 2 | 35,413 | — | 1,417 | |||||||||
Class 3 | 325 | — | 18 | |||||||||
Class 4 | 2 | 2 | — | * | ||||||||
Total class-specific expenses | $ | 35,740 | $ | 2 | $ | 2,356 |
International Growth and Income Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
services | services | services | ||||||||||
Class 1 | $ | — | $ | — | $ | 62 | ||||||
Class 2 | 607 | — | 24 | |||||||||
Class 4 | — | * | — | * | — | * | ||||||
Total class-specific expenses | $ | 607 | $ | — | * | $ | 86 |
Asset Allocation Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
services | services | services | ||||||||||
Class 1 | $ | — | $ | — | $ | 871 | ||||||
Class 2 | 13,794 | — | 552 | |||||||||
Class 3 | 73 | — | 4 | |||||||||
Class 4 | — | * | — | * | — | * | ||||||
Total class-specific expenses | $ | 13,867 | $ | — | * | $ | 1,427 |
Global Balanced Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
services | services | services | ||||||||||
Class 1 | $ | — | $ | — | $ | 3 | ||||||
Class 2 | 343 | — | 14 | |||||||||
Class 4 | — | — | — | |||||||||
Total class-specific expenses | $ | 343 | $ | — | $ | 17 |
Bond Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
services | services | services | ||||||||||
Class 1 | $ | — | $ | — | $ | 401 | ||||||
Class 2 | 12,087 | — | 483 | |||||||||
Class 4 | 3 | 2 | — | * | ||||||||
Total class-specific expenses | $ | 12,090 | $ | 2 | $ | 884 |
Global Bond Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
services | services | services | ||||||||||
Class 1 | $ | — | $ | — | $ | 108 | ||||||
Class 2 | 3,918 | — | 157 | |||||||||
Class 4 | — | * | — | * | — | |||||||
Total class-specific expenses | $ | 3,918 | $ | — | * | $ | 265 |
High-Income Bond Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
services | services | services | ||||||||||
Class 1 | $ | — | $ | — | $ | 80 | ||||||
Class 2 | 2,719 | — | 109 | |||||||||
Class 3 | 35 | — | 2 | |||||||||
Class 4 | — | * | — | * | — | * | ||||||
Total class-specific expenses | $ | 2,754 | $ | — | * | $ | 191 |
160 | American Funds Insurance Series |
Mortgage Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
services | services | services | ||||||||||
Class 1 | $ | — | $ | — | $ | 15 | ||||||
Class 2 | 124 | — | 5 | |||||||||
Class 4 | — | — | — | |||||||||
Total class-specific expenses | $ | 124 | $ | — | $ | 20 |
U.S. Government/AAA-Rated Securities Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
services | services | services | ||||||||||
Class 1 | $ | — | $ | — | $ | 173 | ||||||
Class 2 | 4,726 | — | 189 | |||||||||
Class 3 | 31 | — | 2 | |||||||||
Class 4 | — | * | — | * | — | * | ||||||
Total class-specific expenses | $ | 4,757 | $ | — | * | $ | 364 |
Cash Management Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
services | services | services | ||||||||||
Class 1 | $ | — | $ | — | $ | 6 | ||||||
Class 2 | 1,066 | — | 43 | |||||||||
Class 3 | 17 | — | 1 | |||||||||
Class 4 | — | — | — | |||||||||
Total class-specific expenses | $ | 1,083 | $ | — | $ | 50 |
Managed Risk Growth Fund
Insurance | ||||||||||||
Distribution | administrative | |||||||||||
services | services | |||||||||||
Class P1 | $ | — | $ | — | * | |||||||
Class P2 | 12 | 12 | ||||||||||
Total class-specific expenses | $ | 12 | $ | 12 |
Managed Risk International Fund
Insurance | ||||||||||||
Distribution | administrative | |||||||||||
services | services | |||||||||||
Class P1 | $ | — | $ | — | ||||||||
Class P2 | 6 | 6 | ||||||||||
Total class-specific expenses | $ | 6 | $ | 6 |
Managed Risk Blue Chip Income and Growth Fund
Insurance | ||||||||||||
Distribution | administrative | |||||||||||
services | services | |||||||||||
Class P1 | $ | — | $ | — | * | |||||||
Class P2 | 13 | 13 | ||||||||||
Total class-specific expenses | $ | 13 | $ | 13 |
Managed Risk Growth-Income Fund
Insurance | ||||||||||||
Distribution | administrative | |||||||||||
services | services | |||||||||||
Class P1 | $ | — | $ | $ — | * | |||||||
Class P2 | 10 | 10 | ||||||||||
Total class-specific expenses | $ | 10 | $ | 10 |
Managed Risk Asset Allocation Fund
Insurance | ||||||||||||
Distribution | administrative | |||||||||||
services | services | |||||||||||
Class P1 | $ | — | $ | 113 | ||||||||
Class P2 | 725 | 725 | ||||||||||
Total class-specific expenses | $ | 725 | $ | 838 |
* | Amount less than one thousand. |
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, includes current fees (either paid in cash or deferred) and a net increase in the value of the deferred amounts as follows (dollars in thousands):
American Funds Insurance Series | 161 |
Increase in value | Total trustees’ | |||||||||||
Fund | Current fees | of deferred amounts | compensation | |||||||||
Global Growth Fund | $ | 60 | $ | 7 | $ | 67 | ||||||
Global Small Capitalization Fund | 40 | 5 | 45 | |||||||||
Growth Fund | 244 | 87 | 331 | |||||||||
International Fund | 97 | 39 | 136 | |||||||||
New World Fund | 27 | 3 | 30 | |||||||||
Blue Chip Income and Growth Fund | 56 | 7 | 63 | |||||||||
Global Growth and Income Fund | 22 | 2 | 24 | |||||||||
Growth-Income Fund | 257 | 99 | 356 | |||||||||
International Growth and Income Fund | 6 | — | * | 6 | ||||||||
Asset Allocation Fund | 144 | 29 | 173 | |||||||||
Global Balanced Fund | 2 | — | * | 2 | ||||||||
Bond Fund | 97 | 12 | 109 | |||||||||
Global Bond Fund | 29 | 2 | 31 | |||||||||
High-Income Bond Fund | 21 | 10 | 31 | |||||||||
Mortgage Fund | 2 | — | * | 2 | ||||||||
U.S. Government/AAA-Rated Securities Fund | 41 | 10 | 51 | |||||||||
Cash Management Fund | 6 | 4 | 10 | |||||||||
Managed Risk Growth Fund | — | * | — | — | * | |||||||
Managed Risk International Fund | — | * | — | — | * | |||||||
Managed Risk Blue Chip Income and Growth Fund | — | * | — | — | * | |||||||
Managed Risk Growth-Income Fund | — | * | — | — | * | |||||||
Managed Risk Asset Allocation Fund | 1 | — | 1 |
* | 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 the series.
8. Fund merger
On May 17, 2013, Global Growth Fund (the “acquiring fund”) acquired the net assets of Global Discovery Fund (the “acquired fund”) pursuant to an Agreement and Plan of Reorganization and Liquidation approved by the Board of Trustees on December 5, 2012. The merger occurred due to the size of Global Discovery Fund and a lack of clear prospects for the fund’s future growth. The acquisition was accomplished by a tax-free exchange of shares of each class of the acquiring fund for the corresponding class of the acquired fund at the close of business on May 17, 2013. Both Class 1 and Class 2 shares were exchanged at a ratio of 0.57 to 1. Shares issued by Global Growth Fund are disclosed in the capital share transactions noted below. Further information about the merger of the funds is as follows (dollars and shares in thousands):
Shares | Net asset value | |||||||||||||
Status | outstanding | Net assets | per share | |||||||||||
Global Discovery Fund | Acquired fund | |||||||||||||
Class 1 | 1,178 | $17,890 | $ | 15.19 | ||||||||||
Class 2 | 17,234 | $260,407 | $ | 15.11 | ||||||||||
Global Growth Fund | Acquiring fund | |||||||||||||
Class 1 | 64,374 | $ | 1,718,150 | $ | 26.69 | |||||||||
Class 2 | 150,243 | $ | 3,981,436 | $ | 26.50 | |||||||||
Class 4 | — | * | $1 | $ | 26.68 | |||||||||
Global Growth Fund | Post merger | |||||||||||||
Class 1 | 65,044 | $ | 1,736,040 | $ | 26.69 | |||||||||
Class 2 | 160,070 | $ | 4,241,843 | $ | 26.50 | |||||||||
Class 4 | — | * | $1 | $ | 26.68 |
* | Amount less than one thousand. |
162 | American Funds Insurance Series |
Components of net assets acquired on May 17, 2013 | ||||
Capital paid in on shares of beneficial interest | $ | 189,397 | ||
Undistributed net investment income | — | |||
Undistributed net realized gain | — | |||
Net unrealized appreciation | 88,900 | |||
Total net assets | $ | 278,297 |
Had the acquisition been completed on January 1, 2013, the beginning of the annual reporting period for both the acquired and acquiring funds, the pro forma results of operations for the year ended December 31, 2012, would have been as follows (dollars in thousands):
Pro forma components of net assets on January 1, 2013 | ||||
Capital paid in on shares of beneficial interest | $ | 4,434,571 | ||
Undistributed net investment income | 3,153 | |||
Accumulated net realized loss | (368,635 | ) | ||
Net unrealized appreciation | 1,382,058 | |||
Total net assets | $ | 5,451,147 |
Since the combined investment portfolios have been managed as a single integrated portfolio since the reorganization was completed, it is not practicable to separate the income, expenses and changes in net assets of the acquired fund that have been included in the acquiring fund’s statement of operations since May 17, 2013.
9. Capital share transactions
Capital share transactions in the funds were as follows (dollars and shares in thousands):
Global Growth Fund
Reinvestments | Net (decrease) | |||||||||||||||||||||||||||||||
Sales1,2 | of dividends | Repurchases1 | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 258,243 | 10,345 | $ | 21,540 | 764 | $ | (652,054 | ) | (23,190 | ) | $ | (372,271 | ) | (12,081 | ) | ||||||||||||||||
Class 2 | 273,799 | 12,031 | 50,234 | 1,788 | (692,022 | ) | (26,313 | ) | (367,989 | ) | (12,494 | ) | ||||||||||||||||||||
Class 4 | 881 | 30 | 5 | — | 3 | (79 | ) | (2 | ) | 807 | 28 | |||||||||||||||||||||
Total net increase | ||||||||||||||||||||||||||||||||
(decrease) | $ | 532,923 | 22,406 | $ | 71,779 | 2,552 | $ | (1,344,155 | ) | (49,505 | ) | $ | (739,453 | ) | (24,547 | ) | ||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 116,073 | 5,365 | $ | 16,161 | 689 | $ | (214,408 | ) | (9,757 | ) | $ | (82,174 | ) | (3,703 | ) | ||||||||||||||||
Class 2 | 47,056 | 2,233 | 32,113 | 1,371 | (608,844 | ) | (28,048 | ) | (529,675 | ) | (24,444 | ) | ||||||||||||||||||||
Class 44 | 1 | — | 3 | — | 3 | — | 3 | — | — | 1 | — | 3 | ||||||||||||||||||||
Total net increase | ||||||||||||||||||||||||||||||||
(decrease) | $ | 163,130 | 7,598 | $ | 48,274 | 2,060 | $ | (823,252 | ) | (37,805 | ) | $ | (611,848 | ) | (28,147 | ) |
See end of capital share transactions tables for footnotes.
American Funds Insurance Series | 163 |
Global Small Capitalization Fund
Reinvestments | Net (decrease) | |||||||||||||||||||||||||||||||
Sales1 | of dividends | Repurchases1 | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 285,973 | 12,430 | $ | 9,160 | 410 | $ | (337,663 | ) | (15,049 | ) | $ | (42,530 | ) | (2,209 | ) | ||||||||||||||||
Class 2 | 58,648 | 2,581 | 24,174 | 1,098 | (399,343 | ) | (17,694 | ) | (316,521 | ) | (14,015 | ) | ||||||||||||||||||||
Class 4 | 4,861 | 201 | 3 | — | 3 | (1,241 | ) | (50 | ) | 3,623 | 151 | |||||||||||||||||||||
Total net increase (decrease) | $ | 349,482 | 15,212 | $ | 33,337 | 1,508 | $ | (738,247 | ) | (32,793 | ) | $ | (355,428 | ) | (16,073 | ) | ||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 183,971 | 9,682 | $ | 14,672 | 791 | $ | (112,799 | ) | (5,936 | ) | $ | 85,844 | 4,537 | ||||||||||||||||||
Class 2 | 86,346 | 4,691 | 34,610 | 1,918 | (364,953 | ) | (19,370 | ) | (243,997 | ) | (12,761 | ) | ||||||||||||||||||||
Class 44 | 1 | — | 3 | — | 3 | — | 3 | — | — | 1 | — | 3 | ||||||||||||||||||||
Total net increase (decrease) | $ | 270,318 | 14,373 | $ | 49,282 | 2,709 | $ | (477,752 | ) | (25,306 | ) | $ | (158,152 | ) | (8,224 | ) |
Growth Fund
Reinvestments | Net (decrease) | |||||||||||||||||||||||||||||||
Sales1 | of dividends | Repurchases1 | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 294,640 | 4,226 | $ | 77,034 | 1,051 | $ | (2,235,166 | ) | (32,949 | ) | $ | (1,863,492 | ) | (27,672 | ) | ||||||||||||||||
Class 2 | 157,902 | 2,305 | 142,471 | 1,972 | (2,838,847 | ) | (41,366 | ) | (2,538,474 | ) | (37,089 | ) | ||||||||||||||||||||
Class 3 | 1,530 | 21 | 1,987 | 27 | (27,728 | ) | (401 | ) | (24,211 | ) | (353 | ) | ||||||||||||||||||||
Class 4 | 4,782 | 67 | 32 | 1 | (399 | ) | (6 | ) | 4,415 | 62 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 458,854 | 6,619 | $ | 221,524 | 3,051 | $ | (5,102,140 | ) | (74,722 | ) | $ | (4,421,762 | ) | (65,052 | ) | ||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 277,348 | 4,834 | $ | 75,334 | 1,260 | $ | (1,863,267 | ) | (31,869 | ) | $ | (1,510,585 | ) | (25,775 | ) | ||||||||||||||||
Class 2 | 177,807 | 3,123 | 122,858 | 2,084 | (4,632,501 | ) | (81,722 | ) | (4,331,836 | ) | (76,515 | ) | ||||||||||||||||||||
Class 3 | 1,746 | 29 | 1,643 | 28 | (33,580 | ) | (577 | ) | (30,191 | ) | (520 | ) | ||||||||||||||||||||
Class 44 | 1 | — | 3 | — | 3 | — | 3 | — | — | 1 | — | 3 | ||||||||||||||||||||
Total net increase (decrease) | $ | 456,902 | 7,986 | $ | 199,835 | 3,372 | $ | (6,529,348 | ) | (114,168 | ) | $ | (5,872,611 | ) | (102,810 | ) |
International Fund
Reinvestments | Net (decrease) | |||||||||||||||||||||||||||||||
Sales1 | of dividends | Repurchases1 | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 248,721 | 12,978 | $ | 50,434 | 2,504 | $ | (1,206,929 | ) | (63,495 | ) | $ | (907,774 | ) | (48,013 | ) | ||||||||||||||||
Class 2 | 213,458 | 11,190 | 75,225 | 3,750 | (865,300 | ) | (45,337 | ) | (576,617 | ) | (30,397 | ) | ||||||||||||||||||||
Class 3 | 685 | 35 | 614 | 31 | (6,904 | ) | (362 | ) | (5,605 | ) | (296 | ) | ||||||||||||||||||||
Class 4 | 2,148 | 110 | 23 | 1 | (194 | ) | (10 | ) | 1,977 | 101 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 465,012 | 24,313 | $ | 126,296 | 6,286 | $ | (2,079,327 | ) | (109,204 | ) | $ | (1,488,019 | ) | (78,605 | ) | ||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 266,734 | 16,344 | $ | 60,357 | 3,445 | $ | (552,826 | ) | (32,947 | ) | $ | (225,735 | ) | (13,158 | ) | ||||||||||||||||
Class 2 | 225,412 | 13,909 | 78,128 | 4,462 | (859,434 | ) | (51,810 | ) | (555,894 | ) | (33,439 | ) | ||||||||||||||||||||
Class 3 | 374 | 23 | 650 | 37 | (7,378 | ) | (446 | ) | (6,354 | ) | (386 | ) | ||||||||||||||||||||
Class 44 | 1 | — | 3 | — | 3 | — | 3 | — | — | 1 | — | 3 | ||||||||||||||||||||
Total net increase (decrease) | $ | 492,521 | 30,276 | $ | 139,135 | 7,944 | $ | (1,419,638 | ) | (85,203 | ) | $ | (787,982 | ) | (46,983 | ) |
See end of capital share transactions tables for footnotes.
164 | American Funds Insurance Series |
New World Fund
Reinvestments of | Net increase | |||||||||||||||||||||||||||||||
Sales1 | dividends and distributions | Repurchases1 | (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 291,376 | 12,346 | $ | 26,867 | 1,123 | $ | (189,247 | ) | (7,862 | ) | $ | 128,996 | 5,607 | ||||||||||||||||||
Class 2 | 67,014 | 2,889 | 23,403 | 991 | (277,349 | ) | (11,889 | ) | (186,932 | ) | (8,009 | ) | ||||||||||||||||||||
Class 4 | 8,180 | 339 | 96 | 4 | (188 | ) | (8 | ) | 8,088 | 335 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 366,570 | 15,574 | $ | 50,366 | 2,118 | $ | (466,784 | ) | (19,759 | ) | $ | (49,848 | ) | (2,067 | ) | ||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 243,140 | 11,398 | $ | 13,526 | 600 | $ | (92,066 | ) | (4,285 | ) | $ | 164,600 | 7,713 | ||||||||||||||||||
Class 2 | 54,652 | 2,591 | 13,443 | 599 | (252,673 | ) | (11,890 | ) | (184,578 | ) | (8,700 | ) | ||||||||||||||||||||
Class 44 | 1 | — | 3 | — | 3 | — | 3 | — | — | 1 | — | 3 | ||||||||||||||||||||
Total net increase (decrease) | $ | 297,793 | 13,989 | $ | 26,969 | 1,199 | $ | (344,739 | ) | (16,175 | ) | $ | (19,977 | ) | (987 | ) |
Blue Chip Income and Growth Fund
Reinvestments | Net increase | |||||||||||||||||||||||||||||||
Sales1 | of dividends | Repurchases1 | (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 986,042 | 89,659 | $ | 54,549 | 4,323 | $ | (174,356 | ) | (14,648 | ) | $ | 866,235 | 79,334 | ||||||||||||||||||
Class 2 | 13,596 | 1,173 | 66,918 | 5,356 | (663,556 | ) | (57,363 | ) | (583,042 | ) | (50,834 | ) | ||||||||||||||||||||
Class 4 | 101 | 8 | 2 | — | 3 | — | 3 | — | 3 | 103 | 8 | |||||||||||||||||||||
Total net increase (decrease) | $ | 999,739 | 90,840 | $ | 121,469 | 9,679 | $ | (837,912 | ) | (72,011 | ) | $ | 283,296 | 28,508 | ||||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 612,734 | 61,796 | $ | 29,511 | 2,924 | $ | (399,693 | ) | (39,869 | ) | $ | 242,552 | 24,851 | ||||||||||||||||||
Class 2 | 53,607 | 5,597 | 67,663 | 6,761 | (461,477 | ) | (47,179 | ) | (340,207 | ) | (34,821 | ) | ||||||||||||||||||||
Class 44 | 1 | — | 3 | — | 3 | — | 3 | — | — | 1 | — | 3 | ||||||||||||||||||||
Total net increase (decrease) | $ | 666,342 | 67,393 | $ | 97,174 | 9,685 | $ | (861,170 | ) | (87,048 | ) | $ | (97,654 | ) | (9,970 | ) |
Global Growth and Income Fund
Reinvestments | Net (decrease) | |||||||||||||||||||||||||||||||
Sales1 | of dividends | Repurchases1 | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 38,885 | 3,340 | $ | 6,806 | 566 | $ | (52,061 | ) | (4,474 | ) | $ | (6,370 | ) | (568 | ) | ||||||||||||||||
Class 2 | 35,387 | 3,082 | 56,388 | 4,700 | (421,844 | ) | (36,504 | ) | (330,069 | ) | (28,722 | ) | ||||||||||||||||||||
Class 4 | 678 | 56 | 19 | 2 | (162 | ) | (13 | ) | 535 | 45 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 74,950 | 6,478 | $ | 63,213 | 5,268 | $ | (474,067 | ) | (40,991 | ) | $ | (335,904 | ) | (29,245 | ) | ||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 27,152 | 2,703 | $ | 4,745 | 459 | $ | (36,662 | ) | (3,653 | ) | $ | (4,765 | ) | (491 | ) | ||||||||||||||||
Class 2 | 28,455 | 2,924 | 45,110 | 4,374 | (329,160 | ) | (33,092 | ) | (255,595 | ) | (25,794 | ) | ||||||||||||||||||||
Class 44 | 1 | — | 3 | — | 3 | — | 3 | — | — | 1 | — | 3 | ||||||||||||||||||||
Total net increase (decrease) | $ | 55,608 | 5,627 | $ | 49,855 | 4,833 | $ | (365,822 | ) | (36,745 | ) | $ | (260,359 | ) | (26,285 | ) |
American Funds Insurance Series | 165 |
Growth-Income Fund
Reinvestments | Net (decrease) | |||||||||||||||||||||||||||||||
Sales1 | of dividends | Repurchases1 | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 970,097 | 21,875 | $ | 142,493 | 2,962 | $ | (3,617,332 | ) | (84,723 | ) | $ | (2,504,742 | ) | (59,886 | ) | ||||||||||||||||
Class 2 | 101,521 | 2,274 | 185,855 | 3,897 | (2,617,064 | ) | (59,419 | ) | (2,329,688 | ) | (53,248 | ) | ||||||||||||||||||||
Class 3 | 1,397 | 31 | 2,493 | 52 | (28,707 | ) | (644 | ) | (24,817 | ) | (561 | ) | ||||||||||||||||||||
Class 4 | 3,337 | 72 | 32 | 1 | (357 | ) | (8 | ) | 3,012 | 65 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 1,076,352 | 24,252 | $ | 330,873 | 6,912 | $ | (6,263,460 | ) | (144,794 | ) | $ | (4,856,235 | ) | (113,630 | ) | ||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 994,378 | 26,843 | $ | 179,283 | 4,692 | $ | (2,343,170 | ) | (62,718 | ) | $ | (1,169,509 | ) | (31,183 | ) | ||||||||||||||||
Class 2 | 138,677 | 3,857 | 213,820 | 5,631 | (2,162,539 | ) | (59,217 | ) | (1,810,042 | ) | (49,729 | ) | ||||||||||||||||||||
Class 3 | 820 | 22 | 2,787 | 73 | (33,096 | ) | (898 | ) | (29,489 | ) | (803 | ) | ||||||||||||||||||||
Class 44 | 1 | — | 3 | — | 3 | — | 3 | — | — | 1 | — | 3 | ||||||||||||||||||||
Total net increase (decrease) | $ | 1,133,876 | 30,722 | $ | 395,890 | 10,396 | $ | (4,538,805 | ) | (122,833 | ) | $ | (3,009,039 | ) | (81,715 | ) |
International Growth and Income Fund
Reinvestments of | Net increase | |||||||||||||||||||||||||||||||
Sales1 | dividends and distributions | Repurchases1 | (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 432,753 | 27,502 | $ | 28,659 | 1,689 | $ | (45,474 | ) | (2,646 | ) | $ | 415,938 | 26,545 | ||||||||||||||||||
Class 2 | 21,144 | 1,309 | 10,078 | 596 | (31,345 | ) | (1,880 | ) | (123 | ) | 25 | |||||||||||||||||||||
Class 4 | 791 | 45 | 11 | 1 | (105 | ) | (6 | ) | 697 | 40 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 454,688 | 28,856 | $ | 38,748 | 2,286 | $ | (76,924 | ) | (4,532 | ) | $ | 416,512 | 26,610 | ||||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 166,454 | 10,893 | $ | 4,726 | 310 | $ | (7,358 | ) | (503 | ) | $ | 163,822 | 10,700 | ||||||||||||||||||
Class 2 | 21,059 | 1,460 | 4,685 | 308 | (27,910 | ) | (1,901 | ) | (2,166 | ) | (133 | ) | ||||||||||||||||||||
Class 44 | 1 | — | 3 | — | 3 | — | 3 | — | — | 1 | — | 3 | ||||||||||||||||||||
Total net increase (decrease) | $ | 187,514 | 12,353 | $ | 9,411 | 618 | $ | (35,268 | ) | (2,404 | ) | $ | 161,657 | 10,567 |
Asset Allocation Fund
Reinvestments | Net increase | |||||||||||||||||||||||||||||||
Sales1 | of dividends | Repurchases1 | (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 1,917,257 | 91,983 | $ | 160,436 | 7,366 | $ | (459,506 | ) | (22,330 | ) | $ | 1,618,187 | 77,019 | ||||||||||||||||||
Class 2 | 214,460 | 10,499 | 79,271 | 3,677 | (851,000 | ) | (41,687 | ) | (557,269 | ) | (27,511 | ) | ||||||||||||||||||||
Class 3 | 1,510 | 72 | 607 | 28 | (5,389 | ) | (259 | ) | (3,272 | ) | (159 | ) | ||||||||||||||||||||
Class 4 | 487 | 22 | 4 | — | — | 3 | — | 3 | 491 | 22 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 2,133,714 | 102,576 | $ | 240,318 | 11,071 | $ | (1,315,895 | ) | (64,276 | ) | $ | 1,058,137 | 49,371 | ||||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 690,030 | 39,118 | $ | 149,689 | 8,204 | $ | (419,110 | ) | (23,646 | ) | $ | 420,609 | 23,676 | ||||||||||||||||||
Class 2 | 106,642 | 6,083 | 99,191 | 5,485 | (823,760 | ) | (46,863 | ) | (617,927 | ) | (35,295 | ) | ||||||||||||||||||||
Class 3 | 1,291 | 73 | 742 | 41 | (6,555 | ) | (370 | ) | (4,522 | ) | (256 | ) | ||||||||||||||||||||
Class 44 | 1 | — | 3 | — | 3 | — | 3 | — | — | 1 | — | 3 | ||||||||||||||||||||
Total net increase (decrease) | $ | 797,964 | 45,274 | $ | 249,622 | 13,730 | $ | (1,249,425 | ) | (70,879 | ) | $ | (201,839 | ) | (11,875 | ) |
See end of capital share transactions tables for footnotes.
166 | American Funds Insurance Series |
Global Balanced Fund
Reinvestments of | ||||||||||||||||||||||||||||||||
Sales1 | dividends and distributions | Repurchases1 | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 377 | 35 | $ | 817 | 73 | $ | (184 | ) | (17 | ) | $ | 1,010 | 91 | ||||||||||||||||||
Class 2 | 33,820 | 3,112 | 3,212 | 288 | (13,106 | ) | (1,202 | ) | 23,926 | 2,198 | ||||||||||||||||||||||
Class 4 | — | — | — | 3 | — | 3 | — | — | — | 3 | — | 3 | ||||||||||||||||||||
Total net increase (decrease) | $ | 34,197 | 3,147 | $ | 4,029 | 361 | $ | (13,290 | ) | (1,219 | ) | $ | 24,936 | 2,289 | ||||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 29 | 3 | $ | 562 | 54 | $ | (1 | ) | — | 3 | $ | 590 | 57 | ||||||||||||||||||
Class 2 | 46,372 | 4,711 | 1,835 | 178 | (9,674 | ) | (984 | ) | 38,533 | 3,905 | ||||||||||||||||||||||
Class 44 | 1 | — | 3 | — | 3 | — | 3 | — | — | 1 | — | 3 | ||||||||||||||||||||
Total net increase (decrease) | $ | 46,402 | 4,714 | $ | 2,397 | 232 | $ | (9,675 | ) | (984 | ) | $ | 39,124 | 3,962 |
Bond Fund
Reinvestments of | Net increase | |||||||||||||||||||||||||||||||
Sales1 | dividends and distributions | Repurchases1 | (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 1,279,497 | 115,702 | $ | 133,350 | 12,270 | $ | (615,210 | ) | (54,877 | ) | $ | 797,637 | 73,095 | ||||||||||||||||||
Class 2 | 408,953 | 37,839 | 140,114 | 13,025 | (587,137 | ) | (53,583 | ) | (38,070 | ) | (2,719 | ) | ||||||||||||||||||||
Class 4 | 3,160 | 289 | 51 | 5 | (191 | ) | (18 | ) | 3,020 | 276 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 1,691,610 | 153,830 | $ | 273,515 | 25,300 | $ | (1,202,538 | ) | (108,478 | ) | $ | 762,587 | 70,652 | ||||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 761,662 | 67,100 | $ | 106,210 | 9,439 | $ | (1,419,488 | ) | (125,727 | ) | $ | (551,616 | ) | (49,188 | ) | ||||||||||||||||
Class 2 | 302,695 | 27,149 | 125,665 | 11,291 | (504,544 | ) | (45,084 | ) | (76,184 | ) | (6,644 | ) | ||||||||||||||||||||
Class 44 | 1 | — | 3 | — | 3 | — | 3 | — | — | 1 | — | 3 | ||||||||||||||||||||
Total net increase (decrease) | $ | 1,064,358 | 94,249 | $ | 231,875 | 20,730 | $ | (1,924,032 | ) | (170,811 | ) | $ | (627,799 | ) | (55,832 | ) |
Global Bond Fund
Reinvestments of | Net increase | |||||||||||||||||||||||||||||||
Sales1 | dividends and distributions | Repurchases1 | (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 400,246 | 33,288 | $ | 13,495 | 1,134 | $ | (240,206 | ) | (20,328 | ) | $ | 173,535 | 14,094 | ||||||||||||||||||
Class 2 | 74,483 | 6,243 | 19,203 | 1,622 | (198,058 | ) | (16,777 | ) | (104,372 | ) | (8,912 | ) | ||||||||||||||||||||
Class 4 | 10 | 1 | — | 3 | — | 3 | — | 3 | — | 3 | 10 | 1 | ||||||||||||||||||||
Total net increase (decrease) | $ | 474,739 | 39,532 | $ | 32,698 | 2,756 | $ | (438,264 | ) | (37,105 | ) | $ | 69,173 | 5,183 | ||||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 374,578 | 30,370 | $ | 26,657 | 2,182 | $ | (78,701 | ) | (6,414 | ) | $ | 322,534 | 26,138 | ||||||||||||||||||
Class 2 | 135,590 | 11,094 | 50,283 | 4,140 | (210,485 | ) | (17,264 | ) | (24,612 | ) | (2,030 | ) | ||||||||||||||||||||
Class 44 | 1 | — | 3 | — | 3 | — | 3 | — | — | 1 | — | 3 | ||||||||||||||||||||
Total net increase (decrease) | $ | 510,169 | 41,464 | $ | 76,940 | 6,322 | $ | (289,186 | ) | (23,678 | ) | $ | 297,923 | 24,108 |
American Funds Insurance Series | 167 |
High-Income Bond Fund
Reinvestments | Net (decrease) | |||||||||||||||||||||||||||||||
Sales1 | of dividends | Repurchases1 | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 176,901 | 15,477 | $ | 55,635 | 5,010 | $ | (271,595 | ) | (23,719 | ) | $ | (39,059 | ) | (3,232 | ) | ||||||||||||||||
Class 2 | 55,098 | 4,920 | 70,100 | 6,387 | (199,655 | ) | (17,691 | ) | (74,457 | ) | (6,384 | ) | ||||||||||||||||||||
Class 3 | 2,555 | 222 | 1,237 | 111 | (6,052 | ) | (528 | ) | (2,260 | ) | (195 | ) | ||||||||||||||||||||
Class 4 | 92 | 8 | 5 | — | 3 | — | 3 | — | 3 | 97 | 8 | |||||||||||||||||||||
Total net increase (decrease) | $ | 234,646 | 20,627 | $ | 126,977 | 11,508 | $ | (477,302 | ) | (41,938 | ) | $ | (115,679 | ) | (9,803 | ) | ||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 112,401 | 9,936 | $ | 62,358 | 5,619 | $ | (115,003 | ) | (10,154 | ) | $ | 59,756 | 5,401 | ||||||||||||||||||
Class 2 | 114,547 | 10,267 | 79,441 | 7,244 | (185,788 | ) | (16,687 | ) | 8,200 | 824 | ||||||||||||||||||||||
Class 3 | 5,364 | 480 | 1,459 | 132 | (7,355 | ) | (655 | ) | (532 | ) | (43 | ) | ||||||||||||||||||||
Class 44 | 1 | — | 3 | — | 3 | — | 3 | — | — | 1 | — | 3 | ||||||||||||||||||||
Total net increase (decrease) | $ | 232,313 | 20,683 | $ | 143,258 | 12,995 | $ | (308,146 | ) | (27,496 | ) | $ | 67,425 | 6,182 |
Mortgage Fund
Reinvestments of | ||||||||||||||||||||||||||||||||
Sales1 | dividends and distributions | Repurchases1 | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 131,740 | 12,668 | $ | 1,693 | 165 | $ | (18,122 | ) | (1,746 | ) | $ | 115,311 | 11,087 | ||||||||||||||||||
Class 2 | 11,184 | 1,078 | 311 | 30 | (10,545 | ) | (1,019 | ) | 950 | 89 | ||||||||||||||||||||||
Class 4 | — | — | — | 3 | — | 3 | — | — | — | 3 | — | 3 | ||||||||||||||||||||
Total net increase (decrease) | $ | 142,924 | 13,746 | $ | 2,004 | 195 | $ | (28,667 | ) | (2,765 | ) | $ | 116,261 | 11,176 | ||||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 57,612 | 5,467 | $ | 1,305 | 125 | $ | (27,398 | ) | (2,586 | ) | $ | 31,519 | 3,006 | ||||||||||||||||||
Class 2 | 29,661 | 2,825 | 648 | 62 | (2,938 | ) | (279 | ) | 27,371 | 2,608 | ||||||||||||||||||||||
Class 44 | 1 | — | 3 | — | 3 | — | 3 | — | — | 1 | — | 3 | ||||||||||||||||||||
Total net increase (decrease) | $ | 87,274 | 8,292 | $ | 1,953 | 187 | $ | (30,336 | ) | (2,865 | ) | $ | 58,891 | 5,614 |
U.S. Government/AAA-Rated Securities Fund
Reinvestments of | Net (decrease) | |||||||||||||||||||||||||||||||
Sales1 | dividends and distributions | Repurchases1 | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 160,004 | 12,948 | $ | 61,436 | 5,042 | $ | (336,723 | ) | (27,279 | ) | $ | (115,283 | ) | (9,289 | ) | ||||||||||||||||
Class 2 | 61,544 | 5,019 | 64,124 | 5,311 | (195,682 | ) | (16,029 | ) | (70,014 | ) | (5,699 | ) | ||||||||||||||||||||
Class 3 | 1,142 | 93 | 573 | 47 | (6,009 | ) | (488 | ) | (4,294 | ) | (348 | ) | ||||||||||||||||||||
Class 4 | 452 | 38 | 2 | — | 3 | (27 | ) | (2 | ) | 427 | 36 | |||||||||||||||||||||
Total net increase (decrease) | $ | 223,142 | 18,098 | $ | 126,135 | 10,400 | $ | (538,441 | ) | (43,798 | ) | $ | (189,164 | ) | (15,300 | ) | ||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 195,168 | 15,076 | $ | 73,727 | 5,774 | $ | (209,851 | ) | (16,180 | ) | $ | 59,044 | 4,670 | ||||||||||||||||||
Class 2 | 146,483 | 11,413 | 78,772 | 6,228 | (192,849 | ) | (15,060 | ) | 32,406 | 2,581 | ||||||||||||||||||||||
Class 3 | 1,630 | 125 | 823 | 65 | (6,050 | ) | (467 | ) | (3,597 | ) | (277 | ) | ||||||||||||||||||||
Class 44 | 1 | — | 3 | — | 3 | — | 3 | — | — | 1 | — | 3 | ||||||||||||||||||||
Total net increase (decrease) | $ | 343,282 | 26,614 | $ | 153,322 | 12,067 | $ | (408,750 | ) | (31,707 | ) | $ | 87,854 | 6,974 |
See end of capital share transactions tables for footnotes.
168 | American Funds Insurance Series |
Cash Management Fund
Reinvestments | Net (decrease) | |||||||||||||||||||||||||||||||
Sales1 | of dividends | Repurchases1 | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 26,858 | 2,372 | $ | — | — | $ | (36,064 | ) | (3,184 | ) | $ | (9,206 | ) | (812 | ) | ||||||||||||||||
Class 2 | 210,456 | 18,884 | — | — | (272,642 | ) | (24,465 | ) | (62,186 | ) | (5,581 | ) | ||||||||||||||||||||
Class 3 | 6,711 | 597 | — | — | (9,101 | ) | (810 | ) | (2,390 | ) | (213 | ) | ||||||||||||||||||||
Class 4 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total net increase (decrease) | $ | 244,025 | 21,853 | $ | — | — | $ | (317,807 | ) | (28,459 | ) | $ | (73,782 | ) | (6,606 | ) | ||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 28,695 | 2,528 | $ | — | — | $ | (37,213 | ) | (3,278 | ) | $ | (8,518 | ) | (750 | ) | ||||||||||||||||
Class 2 | 156,563 | 13,986 | — | — | (224,943 | ) | (20,084 | ) | (68,380 | ) | (6,098 | ) | ||||||||||||||||||||
Class 3 | 7,742 | 686 | — | — | (9,181 | ) | (813 | ) | (1,439 | ) | (127 | ) | ||||||||||||||||||||
Class 44 | 1 | — | 3 | — | — | — | — | 1 | — | 3 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 193,001 | 17,200 | $ | — | — | $ | (271,337 | ) | (24,175 | ) | $ | (78,336 | ) | (6,975 | ) |
Managed Risk Growth Fund
Proceeds from initial | Reinvestments | |||||||||||||||||||||||||||||||||||||||
capitalization | Sales1 | of dividends | Repurchases1 | Net increase | ||||||||||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||||||||
Year ended December 31, 20135 | ||||||||||||||||||||||||||||||||||||||||
Class P1 | $ | 100 | 10 | $ | 50 | 5 | $ | 1 | — | 3 | $ | (1 | ) | — | 3 | $ | 150 | 15 | ||||||||||||||||||||||
Class P2 | 4,900 | 490 | 22,269 | 2,059 | 139 | 12 | (1,358 | ) | (126 | ) | 25,950 | 2,435 | ||||||||||||||||||||||||||||
Total net increase (decrease) | $ | 5,000 | 500 | $ | 22,319 | 2,064 | $ | 140 | 12 | $ | (1,359 | ) | (126 | ) | $ | 26,100 | 2,450 |
Managed Risk International Fund
Proceeds from initial | Reinvestments | |||||||||||||||||||||||||||||||||||||||
capitalization | Sales1 | of dividends | Repurchases1 | Net increase | ||||||||||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||||||||
Year ended December 31, 20135 | ||||||||||||||||||||||||||||||||||||||||
Class P1 | $ | 100 | 10 | $ | — | — | $ | 1 | — | 3 | $ | — | 3 | — | 3 | $ | 101 | 10 | ||||||||||||||||||||||
Class P2 | 4,900 | 490 | 11,094 | 1,073 | 113 | 11 | (228 | ) | (23 | ) | 15,879 | 1,551 | ||||||||||||||||||||||||||||
Total net increase (decrease) | $ | 5,000 | 500 | $ | 11,094 | 1,073 | $ | 114 | 11 | $ | (228 | ) | (23 | ) | $ | 15,980 | 1,561 |
Managed Risk Blue Chip Income and Growth Fund
Proceeds from initial | Reinvestments | |||||||||||||||||||||||||||||||||||||||
capitalization | Sales1 | of dividends | Repurchases1 | Net increase | ||||||||||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||||||||
Year ended December 31, 20135 | ||||||||||||||||||||||||||||||||||||||||
Class P1 | $ | 100 | 10 | $ | 11 | 1 | $ | 2 | — | 3 | $ | — | 3 | — | 3 | $ | 113 | 11 | ||||||||||||||||||||||
Class P2 | 4,900 | 490 | 19,819 | 1,894 | 340 | 32 | (431 | ) | (41 | ) | 24,628 | 2,375 | ||||||||||||||||||||||||||||
Total net increase (decrease) | $ | 5,000 | 500 | $ | 19,830 | 1,895 | $ | 342 | 32 | $ | (431 | ) | (41 | ) | $ | 24,741 | 2,386 |
American Funds Insurance Series | 169 |
Managed Risk Growth-Income Fund
Proceeds from initial | Reinvestments | |||||||||||||||||||||||||||||||||||||||
capitalization | Sales1 | of dividends | Repurchases1 | Net increase | ||||||||||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||||||||
Year ended December 31, 20135 | ||||||||||||||||||||||||||||||||||||||||
Class P1 | $ | 100 | 10 | $ | 6 | 1 | $ | 1 | — | 3 | $ | — | — | $ | 107 | 11 | ||||||||||||||||||||||||
Class P2 | 4,900 | 490 | 17,350 | 1,603 | 201 | 18 | (226 | ) | (21 | ) | 22,225 | 2,090 | ||||||||||||||||||||||||||||
Total net increase (decrease) | $ | 5,000 | 500 | $ | 17,356 | 1,604 | $ | 202 | 18 | $ | (226 | ) | (21 | ) | $ | 22,332 | 2,101 |
Managed Risk Asset Allocation Fund
Proceeds from initial | Reinvestments | |||||||||||||||||||||||||||||||||||||||
capitalization | Sales1 | of dividends | Repurchases1 | Net increase | ||||||||||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
Class P1 | $ | 98,804 | 8,801 | $ | 1,126 | 96 | $ | (5,829 | ) | (521 | ) | $ | 94,101 | 8,376 | ||||||||||||||||||||||||||
Class P2 | 728,422 | 64,675 | 7,025 | 598 | (11,691 | ) | (1,045 | ) | 723,756 | 64,228 | ||||||||||||||||||||||||||||||
Total net increase (decrease) | $ | 827,226 | 73,476 | $ | 8,151 | 694 | $ | (17,520 | ) | (1,566 | ) | $ | 817,857 | 72,604 | ||||||||||||||||||||||||||
Year ended December 31, 20126 | ||||||||||||||||||||||||||||||||||||||||
Class P1 | $ | 5,000 | 500 | $ | 5,079 | 509 | $ | 111 | 11 | $ | (78 | ) | (8 | ) | $ | 10,112 | 1,012 | |||||||||||||||||||||||
Class P2 | 5,000 | 500 | 18,986 | 1,899 | 206 | 21 | (3 | ) | — | 3 | 24,189 | 2,420 | ||||||||||||||||||||||||||||
Total net increase (decrease) | $ | 10,000 | 1,000 | $ | 24,065 | 2,408 | $ | 317 | 32 | $ | (81 | ) | (8 | ) | $ | 34,301 | 3,432 |
1 | Includes exchanges between share classes of the fund. |
2 | Includes amounts and shares issued to acquire the net assets of Global Discovery Fund. See Note 8 for additional information. |
3 | Amount less than one thousand. |
4 | Class 4 shares were offered beginning December 14, 2012. |
5 | For the period May 1, 2013, commencement of operations, through December 31, 2013. |
6 | For the period September 28, 2012, commencement of operations, through December 31, 2012. |
10. Investment transactions and other disclosures
CRMC has agreed to bear all offering and organizational expenses of Managed Risk Growth Fund, Managed Risk International Fund, Managed Risk Blue Chip Income and Growth Fund and Managed Risk Growth-Income Fund. Offering expenses include state and U.S. Securities and Exchange Commission registration fees. Organizational expenses include administrative and legal fees. The total amount of offering and organizational expenses borne by CRMC for Managed Risk Growth Fund, Managed Risk International Fund, Managed Risk Blue Chip Income and Growth Fund and Managed Risk Growth-Income Fund was less than one thousand dollars for each fund. These expenses are not included in each fund’s statement of operations.
170 | American Funds Insurance Series |
The following tables present additional information for the year ended December 31, 2013 (dollars in thousands):
Blue Chip | ||||||||||||||||||||||||
Global | Global Small | New | Income | |||||||||||||||||||||
Growth | Capitalization | Growth | International | World | and Growth | |||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||
Purchases of investment securities* | $ | 2,038,118 | $ | 1,285,850 | $ | 4,086,559 | $ | 1,793,652 | $ | 1,025,906 | $ | 1,841,145 | ||||||||||||
Sales of investment securities* | 2,851,476 | 1,777,480 | 8,148,458 | 3,323,020 | 1,096,838 | 1,665,056 | ||||||||||||||||||
Non-U.S. taxes paid on dividend income | 6,805 | 1,750 | 8,334 | 20,198 | 3,738 | 639 | ||||||||||||||||||
Non-U.S. taxes paid on interest income | — | — | — | — | † | 55 | — | |||||||||||||||||
Non-U.S. taxes paid on realized gains | — | 10 | — | 112 | 19 | — | ||||||||||||||||||
Non-U.S. taxes provided on unrealized gains | — | — | — | 705 | 2,971 | — | ||||||||||||||||||
Dividends from affiliated issuers | �� | — | 85 | 3,630 | — | — | — | |||||||||||||||||
Net realized (loss) gain from affiliated issuers | — | (400 | ) | 44,383 | — | — | — | |||||||||||||||||
Global | International | |||||||||||||||||||||||
Growth | Growth- | Growth | Asset | Global | ||||||||||||||||||||
and Income | Income | and Income | Allocation | Balanced | ||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Bond Fund | |||||||||||||||||||
Purchases of investment securities* | $ | 601,713 | $ | 4,098,170 | $ | 628,425 | $ | 8,544,324 | $ | 149,663 | $ | 23,171,308 | ||||||||||||
Sales of investment securities* | 973,362 | 8,088,971 | 260,603 | 8,592,315 | 127,624 | 23,593,623 | ||||||||||||||||||
Non-U.S. taxes paid on dividend income | 3,656 | 6,145 | 2,241 | 3,496 | 202 | — | ||||||||||||||||||
Non-U.S. taxes (refunded) paid on interest income | — | — | (1 | ) | — | 4 | 7 | |||||||||||||||||
Non-U.S. taxes provided on unrealized gains | — | — | 25 | — | — | — | ||||||||||||||||||
Dividends from affiliated issuers | 982 | — | — | — | — | — | ||||||||||||||||||
U.S. | ||||||||||||||||||||||||
Government/ | ||||||||||||||||||||||||
High- | AAA-Rated | |||||||||||||||||||||||
Global | Income | Mortgage | Securities | |||||||||||||||||||||
Bond Fund | Bond Fund | Fund | Fund | |||||||||||||||||||||
Purchases of investment securities* | $ | 4,539,080 | $ | 1,139,398 | $ | 1,390,209 | $ | 16,895,339 | ||||||||||||||||
Sales of investment securities* | 4,618,127 | 1,245,322 | 1,288,592 | 17,692,343 | ||||||||||||||||||||
Non-U.S. taxes paid on interest income | 469 | 2 | — | — | ||||||||||||||||||||
Non-U.S. taxes paid on realized gains | 23 | — | — | — | ||||||||||||||||||||
Managed | Managed | Managed | ||||||||||||||||||||||
Managed | Risk | Risk | Risk | |||||||||||||||||||||
Managed | Risk | Blue Chip | Growth- | Asset | ||||||||||||||||||||
Risk | International | Income and | Income | Allocation | ||||||||||||||||||||
Growth Fund | Fund | Growth Fund | Fund | Fund | ||||||||||||||||||||
Purchases of investment securities* | $ | 25,446 | $ | 15,084 | $ | 23,313 | $ | 20,957 | $ | 769,865 | ||||||||||||||
Sales of investment securities* | 1,232 | 492 | 321 | 201 | 8,678 | |||||||||||||||||||
Dividends from affiliated issuers | — | — | — | — | 10,534 | |||||||||||||||||||
Net realized gain from affiliated issuers | — | — | — | — | 1,005 |
* | Excludes short-term securities and U.S. government obligations, if any. |
† | Amount less than one thousand. |
11. Ownership concentration
At December 31, 2013, CRMC held aggregate ownership of 19%, 21%, 32%, 21% and 24% of the outstanding shares of Global Balanced Fund, Managed Risk Growth Fund, Managed Risk International Fund, Managed Risk Blue Chip Income and Growth Fund and Managed Risk Growth-Income Fund. The ownership represents the seed money invested in the funds when each fund began operations.
American Funds Insurance Series | 171 |
Financial highlights
Income (loss) from investment operations1 | Dividends and distributions | ||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | |||||||||||||||||||||||||||||||||
Global Growth Fund | |||||||||||||||||||||||||||||||||||||||||||||
Class 1 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | $ | 23.58 | $ | .31 | $ | 6.62 | $ | 6.93 | $ | (.40 | ) | $ | — | $ | (.40 | ) | $ | 30.11 | 29.51 | % | $ | 1,508 | .55 | % | 1.17 | % | |||||||||||||||||||
12/31/12 | 19.40 | .30 | 4.14 | 4.44 | (.26 | ) | — | (.26 | ) | 23.58 | 22.89 | 1,466 | .56 | 1.38 | |||||||||||||||||||||||||||||||
12/31/11 | 21.61 | .29 | (2.16 | ) | (1.87 | ) | (.34 | ) | — | (.34 | ) | 19.40 | (8.66 | ) | 1,277 | .55 | 1.37 | ||||||||||||||||||||||||||||
12/31/10 | 19.61 | .30 | 2.04 | 2.34 | (.34 | ) | — | (.34 | ) | 21.61 | 12.04 | 1,227 | .56 | 1.54 | |||||||||||||||||||||||||||||||
12/31/09 | 13.96 | .26 | 5.67 | 5.93 | (.28 | ) | — | (.28 | ) | 19.61 | 42.58 | 1,037 | .56 | 1.59 | |||||||||||||||||||||||||||||||
Class 2 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 23.44 | .24 | 6.58 | 6.82 | (.34 | ) | — | (.34 | ) | 29.92 | 29.18 | 4,379 | .80 | .91 | |||||||||||||||||||||||||||||||
12/31/12 | 19.29 | .24 | 4.11 | 4.35 | (.20 | ) | — | (.20 | ) | 23.44 | 22.56 | 3,723 | .81 | 1.13 | |||||||||||||||||||||||||||||||
12/31/11 | 21.48 | .24 | (2.15 | ) | (1.91 | ) | (.28 | ) | — | (.28 | ) | 19.29 | (8.89 | ) | 3,535 | .80 | 1.13 | ||||||||||||||||||||||||||||
12/31/10 | 19.50 | .25 | 2.03 | 2.28 | (.30 | ) | — | (.30 | ) | 21.48 | 11.75 | 4,308 | .81 | 1.30 | |||||||||||||||||||||||||||||||
12/31/09 | 13.88 | .22 | 5.64 | 5.86 | (.24 | ) | — | (.24 | ) | 19.50 | 42.30 | 4,100 | .82 | 1.36 | |||||||||||||||||||||||||||||||
Class 4 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 23.58 | .13 | 6.77 | 6.90 | (.41 | ) | — | (.41 | ) | 30.07 | 29.36 | 1 | 1.06 | .43 | |||||||||||||||||||||||||||||||
12/31/122,3 | 23.53 | .01 | .29 | .30 | (.25 | ) | — | (.25 | ) | 23.58 | 1.27 | — | 4 | .02 | 5 | .04 | 5 | ||||||||||||||||||||||||||||
Global Small Capitalization Fund | |||||||||||||||||||||||||||||||||||||||||||||
Class 1 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | $ | 20.16 | $ | .04 | $ | 5.70 | $ | 5.74 | $ | (.21 | ) | $ | — | $ | (.21 | ) | $ | 25.69 | 28.60 | % | $ | 1,241 | .74 | % | .17 | % | |||||||||||||||||||
12/31/12 | 17.28 | .09 | 3.09 | 3.18 | (.30 | ) | — | (.30 | ) | 20.16 | 18.51 | 1,019 | .75 | .46 | |||||||||||||||||||||||||||||||
12/31/11 | 21.67 | .07 | (4.14 | ) | (4.07 | ) | (.32 | ) | — | (.32 | ) | 17.28 | (18.94 | ) | 795 | .74 | .36 | ||||||||||||||||||||||||||||
12/31/10 | 18.00 | .13 | 3.91 | 4.04 | (.37 | ) | — | (.37 | ) | 21.67 | 22.76 | 818 | .75 | .69 | |||||||||||||||||||||||||||||||
12/31/09 | 11.18 | .09 | 6.80 | 6.89 | (.07 | ) | — | (.07 | ) | 18.00 | 61.63 | 604 | .76 | .61 | |||||||||||||||||||||||||||||||
Class 2 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 19.86 | (.01 | ) | 5.60 | 5.59 | (.20 | ) | — | (.20 | ) | 25.25 | 28.28 | 2,955 | .99 | (.05 | ) | |||||||||||||||||||||||||||||
12/31/12 | 17.04 | .04 | 3.03 | 3.07 | (.25 | ) | — | (.25 | ) | 19.86 | 18.18 | 2,603 | 1.00 | .20 | |||||||||||||||||||||||||||||||
12/31/11 | 21.35 | .02 | (4.06 | ) | (4.04 | ) | (.27 | ) | — | (.27 | ) | 17.04 | (19.14 | ) | 2,450 | .99 | .10 | ||||||||||||||||||||||||||||
12/31/10 | 17.74 | .08 | 3.86 | 3.94 | (.33 | ) | — | (.33 | ) | 21.35 | 22.41 | 3,189 | 1.00 | .45 | |||||||||||||||||||||||||||||||
12/31/09 | 11.03 | .05 | 6.70 | 6.75 | (.04 | ) | — | (.04 | ) | 17.74 | 61.30 | 2,678 | 1.01 | .36 | |||||||||||||||||||||||||||||||
Class 4 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 20.16 | (.12 | ) | 5.74 | 5.62 | (.21 | ) | — | (.21 | ) | 25.57 | 28.01 | 4 | 1.24 | (.50 | ) | |||||||||||||||||||||||||||||
12/31/122,3 | 19.68 | .01 | .54 | .55 | (.07 | ) | — | (.07 | ) | 20.16 | 2.80 | — | 4 | .04 | 5 | .04 | 5 |
See end of financial highlights tables for footnotes.
172 | American Funds Insurance Series |
Income (loss) from investment operations1 | Dividends and distributions | ||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | |||||||||||||||||||||||||||||||||
Growth Fund | |||||||||||||||||||||||||||||||||||||||||||||
Class 1 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | $ | 60.90 | $ | .64 | $ | 17.84 | $ | 18.48 | $ | (.84 | ) | $ | — | $ | (.84 | ) | $ | 78.54 | 30.43 | % | $ | 7,003 | .35 | % | .93 | % | |||||||||||||||||||
12/31/12 | 52.07 | .63 | 8.83 | 9.46 | (.63 | ) | — | (.63 | ) | 60.90 | 18.19 | 7,116 | .35 | 1.10 | |||||||||||||||||||||||||||||||
12/31/11 | 54.78 | .45 | (2.68 | ) | (2.23 | ) | (.48 | ) | — | (.48 | ) | 52.07 | (4.06 | ) | 7,426 | .34 | .81 | ||||||||||||||||||||||||||||
12/31/10 | 46.45 | .49 | 8.32 | 8.81 | (.48 | ) | — | (.48 | ) | 54.78 | 19.01 | 8,011 | .34 | 1.02 | |||||||||||||||||||||||||||||||
12/31/09 | 33.51 | .35 | 12.94 | 13.29 | (.35 | ) | — | (.35 | ) | 46.45 | 39.74 | 6,565 | .35 | .91 | |||||||||||||||||||||||||||||||
Class 2 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 60.45 | .47 | 17.68 | 18.15 | (.66 | ) | — | (.66 | ) | 77.94 | 30.11 | 16,334 | .60 | .68 | |||||||||||||||||||||||||||||||
12/31/12 | 51.68 | .47 | 8.77 | 9.24 | (.47 | ) | — | (.47 | ) | 60.45 | 17.89 | 14,911 | .60 | .83 | |||||||||||||||||||||||||||||||
12/31/11 | 54.35 | .30 | (2.63 | ) | (2.33 | ) | (.34 | ) | — | (.34 | ) | 51.68 | (4.27 | ) | 16,701 | .59 | .55 | ||||||||||||||||||||||||||||
12/31/10 | 46.10 | .36 | 8.24 | 8.60 | (.35 | ) | — | (.35 | ) | 54.35 | 18.68 | 19,896 | .59 | .76 | |||||||||||||||||||||||||||||||
12/31/09 | 33.27 | .25 | 12.84 | 13.09 | (.26 | ) | — | (.26 | ) | 46.10 | 39.41 | 18,201 | .60 | .66 | |||||||||||||||||||||||||||||||
Class 3 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 60.97 | .52 | 17.84 | 18.36 | (.71 | ) | — | (.71 | ) | 78.62 | 30.20 | 216 | .53 | .75 | |||||||||||||||||||||||||||||||
12/31/12 | 52.13 | .53 | 8.83 | 9.36 | (.52 | ) | — | (.52 | ) | 60.97 | 17.97 | 189 | .53 | .92 | |||||||||||||||||||||||||||||||
12/31/11 | 54.82 | .34 | (2.66 | ) | (2.32 | ) | (.37 | ) | — | (.37 | ) | 52.13 | (4.21 | ) | 189 | .52 | .62 | ||||||||||||||||||||||||||||
12/31/10 | 46.49 | .40 | 8.31 | 8.71 | (.38 | ) | — | (.38 | ) | 54.82 | 18.76 | 232 | .52 | .82 | |||||||||||||||||||||||||||||||
12/31/09 | 33.54 | .28 | 12.95 | 13.23 | (.28 | ) | — | (.28 | ) | 46.49 | 39.51 | 230 | .53 | .72 | |||||||||||||||||||||||||||||||
Class 4 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 60.90 | .29 | 17.90 | 18.19 | (.77 | ) | — | (.77 | ) | 78.32 | 29.96 | 5 | .85 | .40 | |||||||||||||||||||||||||||||||
12/31/122,3 | 60.55 | .03 | .78 | .81 | (.46 | ) | — | (.46 | ) | 60.90 | 1.33 | — | 4 | .02 | 5 | .05 | 5 | ||||||||||||||||||||||||||||
International Fund | |||||||||||||||||||||||||||||||||||||||||||||
Class 1 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | $ | 17.68 | $ | .27 | $ | 3.59 | $ | 3.86 | $ | (.32 | ) | $ | — | $ | (.32 | ) | $ | 21.22 | 21.91 | % | $ | 3,324 | .54 | % | 1.41 | % | |||||||||||||||||||
12/31/12 | 15.21 | .30 | 2.47 | 2.77 | (.30 | ) | — | (.30 | ) | 17.68 | 18.21 | 3,618 | .54 | 1.81 | |||||||||||||||||||||||||||||||
12/31/11 | 18.05 | .35 | (2.84 | ) | (2.49 | ) | (.35 | ) | — | (.35 | ) | 15.21 | (13.76 | ) | 3,314 | .53 | 2.03 | ||||||||||||||||||||||||||||
12/31/10 | 17.17 | .28 | .99 | 1.27 | (.39 | ) | — | (.39 | ) | 18.05 | 7.52 | 3,490 | .53 | 1.69 | |||||||||||||||||||||||||||||||
12/31/09 | 12.22 | .24 | 5.04 | 5.28 | (.25 | ) | (.08 | ) | (.33 | ) | 17.17 | 43.50 | 2,851 | .54 | 1.70 | ||||||||||||||||||||||||||||||
Class 2 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 17.62 | .22 | 3.58 | 3.80 | (.27 | ) | — | (.27 | ) | 21.15 | 21.64 | 5,916 | .79 | 1.15 | |||||||||||||||||||||||||||||||
12/31/12 | 15.16 | .26 | 2.45 | 2.71 | (.25 | ) | — | (.25 | ) | 17.62 | 17.91 | 5,465 | .79 | 1.57 | |||||||||||||||||||||||||||||||
12/31/11 | 17.98 | .31 | (2.82 | ) | (2.51 | ) | (.31 | ) | — | (.31 | ) | 15.16 | (13.96 | ) | 5,210 | .78 | 1.81 | ||||||||||||||||||||||||||||
12/31/10 | 17.11 | .24 | .98 | 1.22 | (.35 | ) | — | (.35 | ) | 17.98 | 7.23 | 6,615 | .78 | 1.46 | |||||||||||||||||||||||||||||||
12/31/09 | 12.19 | .21 | 5.01 | 5.22 | (.22 | ) | (.08 | ) | (.30 | ) | 17.11 | 43.07 | 6,411 | .79 | 1.48 | ||||||||||||||||||||||||||||||
Class 3 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 17.70 | .23 | 3.59 | 3.82 | (.28 | ) | — | (.28 | ) | 21.24 | 21.67 | 46 | .72 | 1.22 | |||||||||||||||||||||||||||||||
12/31/12 | 15.23 | .27 | 2.47 | 2.74 | (.27 | ) | — | (.27 | ) | 17.70 | 17.97 | 44 | .72 | 1.65 | |||||||||||||||||||||||||||||||
12/31/11 | 18.05 | .33 | (2.83 | ) | (2.50 | ) | (.32 | ) | — | (.32 | ) | 15.23 | (13.85 | ) | 43 | .71 | 1.90 | ||||||||||||||||||||||||||||
12/31/10 | 17.18 | .26 | .97 | 1.23 | (.36 | ) | — | (.36 | ) | 18.05 | 7.26 | 61 | .71 | 1.54 | |||||||||||||||||||||||||||||||
12/31/09 | 12.23 | .22 | 5.04 | 5.26 | (.23 | ) | (.08 | ) | (.31 | ) | 17.18 | 43.25 | 68 | .72 | 1.54 | ||||||||||||||||||||||||||||||
Class 4 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 17.68 | (.01 | ) | 3.79 | 3.78 | (.30 | ) | — | (.30 | ) | 21.16 | 21.48 | 2 | 1.04 | (.07 | ) | |||||||||||||||||||||||||||||
12/31/122,3 | 17.79 | .01 | .16 | .17 | (.28 | ) | — | (.28 | ) | 17.68 | .98 | — | 4 | .02 | 5 | .05 | 5 |
American Funds Insurance Series | 173 |
Financial highlights (continued)
Income (loss) from investment operations1 | Dividends and distributions | ||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income to average net assets | |||||||||||||||||||||||||||||||||
New World Fund | |||||||||||||||||||||||||||||||||||||||||||||
Class 1 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | $ | 22.93 | $ | .34 | $ | 2.31 | $ | 2.65 | $ | (.39 | ) | $ | (.11 | ) | $ | (.50 | ) | $ | 25.08 | 11.66 | % | $ | 1,388 | .78 | % | 1.45 | % | ||||||||||||||||||
12/31/12 | 19.65 | .33 | 3.23 | 3.56 | (.28 | ) | — | (.28 | ) | 22.93 | 18.13 | 1,140 | .79 | 1.54 | |||||||||||||||||||||||||||||||
12/31/11 | 23.28 | .36 | (3.55 | ) | (3.19 | ) | (.44 | ) | — | (.44 | ) | 19.65 | (13.75 | ) | 826 | .78 | 1.62 | ||||||||||||||||||||||||||||
12/31/10 | 20.04 | .37 | 3.25 | 3.62 | (.38 | ) | — | (.38 | ) | 23.28 | 18.20 | 774 | .80 | 1.76 | |||||||||||||||||||||||||||||||
12/31/09 | 13.57 | .34 | 6.42 | 6.76 | (.29 | ) | — | (.29 | ) | 20.04 | 49.95 | 500 | .82 | 2.02 | |||||||||||||||||||||||||||||||
Class 2 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 22.75 | .28 | 2.29 | 2.57 | (.33 | ) | (.11 | ) | (.44 | ) | 24.88 | 11.38 | 1,307 | 1.03 | 1.22 | ||||||||||||||||||||||||||||||
12/31/12 | 19.50 | .28 | 3.19 | 3.47 | (.22 | ) | — | (.22 | ) | 22.75 | 17.82 | 1,378 | 1.04 | 1.31 | |||||||||||||||||||||||||||||||
12/31/11 | 23.09 | .30 | (3.51 | ) | (3.21 | ) | (.38 | ) | — | (.38 | ) | 19.50 | (13.95 | ) | 1,350 | 1.03 | 1.37 | ||||||||||||||||||||||||||||
12/31/10 | 19.89 | .31 | 3.22 | 3.53 | (.33 | ) | — | (.33 | ) | 23.09 | 17.87 | 1,739 | 1.05 | 1.52 | |||||||||||||||||||||||||||||||
12/31/09 | 13.47 | .29 | 6.38 | 6.67 | (.25 | ) | — | (.25 | ) | 19.89 | 49.65 | 1,492 | 1.07 | 1.78 | |||||||||||||||||||||||||||||||
Class 4 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 22.93 | .14 | 2.41 | 2.55 | (.38 | ) | (.11 | ) | (.49 | ) | 24.99 | 11.20 | 8 | 1.29 | .56 | ||||||||||||||||||||||||||||||
12/31/122,3 | 22.83 | .01 | .35 | .36 | (.26 | ) | — | (.26 | ) | 22.93 | 1.58 | — | 4 | .04 | 5 | 04 | 5 | ||||||||||||||||||||||||||||
Blue Chip Income and Growth Fund | |||||||||||||||||||||||||||||||||||||||||||||
Class 1 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | $ | 10.05 | $ | .27 | $ | 3.06 | $ | 3.33 | $ | (.26 | ) | $ | — | $ | (.26 | ) | $ | 13.12 | 33.26 | % | $ | 2,814 | .42 | % | 2.27 | % | |||||||||||||||||||
12/31/12 | 9.00 | .24 | 1.04 | 1.28 | (.23 | ) | — | (.23 | ) | 10.05 | 14.18 | 1,357 | .43 | 2.41 | |||||||||||||||||||||||||||||||
12/31/11 | 9.25 | .19 | (.25 | ) | (.06 | ) | (.19 | ) | — | (.19 | ) | 9.00 | (.63 | ) | 992 | .42 | 2.08 | ||||||||||||||||||||||||||||
12/31/10 | 8.37 | .18 | .87 | 1.05 | (.17 | ) | — | (.17 | ) | 9.25 | 12.61 | 674 | .44 | 2.10 | |||||||||||||||||||||||||||||||
12/31/09 | 6.67 | .16 | 1.71 | 1.87 | (.17 | ) | — | (.17 | ) | 8.37 | 28.18 | 408 | .44 | 2.26 | |||||||||||||||||||||||||||||||
Class 2 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 9.97 | .23 | 3.05 | 3.28 | (.23 | ) | — | (.23 | ) | 13.02 | 33.00 | 3,755 | .67 | 2.03 | |||||||||||||||||||||||||||||||
12/31/12 | 8.93 | .21 | 1.03 | 1.24 | (.20 | ) | — | (.20 | ) | 9.97 | 13.88 | 3,382 | .68 | 2.17 | |||||||||||||||||||||||||||||||
12/31/11 | 9.18 | .17 | (.26 | ) | (.09 | ) | (.16 | ) | — | (.16 | ) | 8.93 | (.90 | ) | 3,340 | .67 | 1.83 | ||||||||||||||||||||||||||||
12/31/10 | 8.31 | .16 | .86 | 1.02 | (.15 | ) | — | (.15 | ) | 9.18 | 12.33 | 3,677 | .69 | 1.87 | |||||||||||||||||||||||||||||||
12/31/09 | 6.62 | .14 | 1.70 | 1.84 | (.15 | ) | — | (.15 | ) | 8.31 | 27.97 | 3,344 | .69 | 2.06 | |||||||||||||||||||||||||||||||
Class 4 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 10.05 | .18 | 3.15 | 3.33 | (.26 | ) | — | (.26 | ) | 13.12 | 33.27 | — | 4 | .86 | 1.39 | ||||||||||||||||||||||||||||||
12/31/122,3 | 10.20 | .01 | .03 | .04 | (.19 | ) | — | (.19 | ) | 10.05 | .38 | — | 4 | .02 | 5 | .10 | 5 | ||||||||||||||||||||||||||||
Global Growth and Income Fund | |||||||||||||||||||||||||||||||||||||||||||||
Class 1 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | $ | 10.56 | $ | .39 | $ | 2.00 | $ | 2.39 | $ | (.42 | ) | $ | — | $ | (.42 | ) | $ | 12.53 | 22.81 | % | $ | 206 | .62 | % | 3.35 | % | |||||||||||||||||||
12/31/12 | 9.20 | .25 | 1.39 | 1.64 | (.28 | ) | — | (.28 | ) | 10.56 | 17.93 | 180 | .62 | 2.56 | |||||||||||||||||||||||||||||||
12/31/11 | 9.96 | .28 | (.75 | ) | (.47 | ) | (.29 | ) | — | (.29 | ) | 9.20 | (4.68 | ) | 161 | .61 | 2.86 | ||||||||||||||||||||||||||||
12/31/10 | 9.14 | .23 | .85 | 1.08 | (.26 | ) | — | (.26 | ) | 9.96 | 12.02 | 171 | .61 | 2.54 | |||||||||||||||||||||||||||||||
12/31/09 | 6.68 | .20 | 2.47 | 2.67 | (.21 | ) | — | (.21 | ) | 9.14 | 40.11 | 160 | .63 | 2.63 | |||||||||||||||||||||||||||||||
Class 2 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 10.54 | .36 | 2.00 | 2.36 | (.39 | ) | — | (.39 | ) | 12.51 | 22.54 | 1,822 | .87 | 3.09 | |||||||||||||||||||||||||||||||
12/31/12 | 9.19 | .23 | 1.38 | 1.61 | (.26 | ) | — | (.26 | ) | 10.54 | 17.56 | 1,837 | .87 | 2.31 | |||||||||||||||||||||||||||||||
12/31/11 | 9.94 | .25 | (.74 | ) | (.49 | ) | (.26 | ) | — | (.26 | ) | 9.19 | (4.85 | ) | 1,839 | .86 | 2.60 | ||||||||||||||||||||||||||||
12/31/10 | 9.12 | .21 | .85 | 1.06 | (.24 | ) | — | (.24 | ) | 9.94 | 11.78 | 2,130 | .86 | 2.28 | |||||||||||||||||||||||||||||||
12/31/09 | 6.67 | .18 | 2.46 | 2.64 | (.19 | ) | — | (.19 | ) | 9.12 | 39.72 | 1,951 | .88 | 2.42 | |||||||||||||||||||||||||||||||
Class 4 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 10.55 | .28 | 2.09 | 2.37 | (.42 | ) | — | (.42 | ) | 12.50 | 22.60 | 1 | 1.12 | 2.27 | |||||||||||||||||||||||||||||||
12/31/122,3 | 10.64 | .01 | .13 | .14 | (.23 | ) | — | (.23 | ) | 10.55 | 1.27 | — | 4 | .03 | 5 | .08 | 5 |
See end of financial highlights tables for footnotes.
174 | American Funds Insurance Series |
Income (loss) from investment operations1 | Dividends and distributions | ||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income to average net assets | |||||||||||||||||||||||||||||||||
Growth-Income Fund | |||||||||||||||||||||||||||||||||||||||||||||
Class 1 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | $ | 38.48 | $ | .66 | $ | 12.31 | $ | 12.97 | $ | (.73 | ) | $ | — | $ | (.73 | ) | $ | 50.72 | 33.82 | % | $ | 9,857 | .29 | % | 1.49 | % | |||||||||||||||||||
12/31/12 | 33.27 | .66 | 5.25 | 5.91 | (.70 | ) | — | (.70 | ) | 38.48 | 17.79 | 9,782 | .29 | 1.79 | |||||||||||||||||||||||||||||||
12/31/11 | 34.47 | .61 | (1.18 | ) | (.57 | ) | (.63 | ) | — | (.63 | ) | 33.27 | (1.60 | ) | 9,496 | .28 | 1.77 | ||||||||||||||||||||||||||||
12/31/10 | 31.37 | .56 | 3.10 | 3.66 | (.56 | ) | — | (.56 | ) | 34.47 | 11.72 | 9,370 | .29 | 1.76 | |||||||||||||||||||||||||||||||
12/31/09 | 24.25 | .49 | 7.13 | 7.62 | (.50 | ) | — | (.50 | ) | 31.37 | 31.54 | 8,142 | .29 | 1.83 | |||||||||||||||||||||||||||||||
Class 2 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 38.24 | .55 | 12.23 | 12.78 | (.62 | ) | — | (.62 | ) | 50.40 | 33.50 | 14,980 | .54 | 1.25 | |||||||||||||||||||||||||||||||
12/31/12 | 33.07 | .56 | 5.22 | 5.78 | (.61 | ) | — | (.61 | ) | 38.24 | 17.48 | 13,403 | .54 | 1.53 | |||||||||||||||||||||||||||||||
12/31/11 | 34.25 | .52 | (1.16 | ) | (.64 | ) | (.54 | ) | — | (.54 | ) | 33.07 | (1.83 | ) | 13,235 | .53 | 1.52 | ||||||||||||||||||||||||||||
12/31/10 | 31.18 | .48 | 3.07 | 3.55 | (.48 | ) | — | (.48 | ) | 34.25 | 11.43 | 16,668 | .54 | 1.52 | |||||||||||||||||||||||||||||||
12/31/09 | 24.11 | .42 | 7.09 | 7.51 | (.44 | ) | — | (.44 | ) | 31.18 | 31.24 | 16,220 | .54 | 1.60 | |||||||||||||||||||||||||||||||
Class 3 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 38.52 | .58 | 12.32 | 12.90 | (.65 | ) | — | (.65 | ) | 50.77 | 33.58 | 193 | .47 | 1.32 | |||||||||||||||||||||||||||||||
12/31/12 | 33.30 | .59 | 5.26 | 5.85 | (.63 | ) | — | (.63 | ) | 38.52 | 17.59 | 168 | .47 | 1.60 | |||||||||||||||||||||||||||||||
12/31/11 | 34.49 | .55 | (1.18 | ) | (.63 | ) | (.56 | ) | — | (.56 | ) | 33.30 | (1.77 | ) | 172 | .46 | 1.59 | ||||||||||||||||||||||||||||
12/31/10 | 31.39 | .50 | 3.09 | 3.59 | (.49 | ) | — | (.49 | ) | 34.49 | 11.50 | 209 | .47 | 1.59 | |||||||||||||||||||||||||||||||
12/31/09 | 24.27 | .45 | 7.12 | 7.57 | (.45 | ) | — | (.45 | ) | 31.39 | 31.30 | 225 | .47 | 1.68 | |||||||||||||||||||||||||||||||
Class 4 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 38.47 | .45 | 12.33 | 12.78 | (.69 | ) | — | (.69 | ) | 50.56 | 33.32 | 3 | .79 | .96 | |||||||||||||||||||||||||||||||
12/31/122,3 | 38.65 | .01 | .39 | .40 | (.58 | ) | — | (.58 | ) | 38.47 | 1.02 | — | 4 | .01 | 5 | .03 | 5 | ||||||||||||||||||||||||||||
International Growth and Income Fund | |||||||||||||||||||||||||||||||||||||||||||||
Class 1 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | $ | 15.29 | $ | .44 | $ | 2.50 | $ | 2.94 | $ | (.47 | ) | $ | (.28 | ) | $ | (.75 | ) | $ | 17.48 | 19.39 | % | $ | 696 | .69 | % | 2.63 | % | ||||||||||||||||||
12/31/12 | 13.40 | .37 | 1.89 | 2.26 | (.37 | ) | — | (.37 | ) | 15.29 | 16.84 | 203 | .74 | 2.50 | |||||||||||||||||||||||||||||||
12/31/11 | 15.25 | .47 | (1.77 | ) | (1.30 | ) | (.44 | ) | (.11 | ) | (.55 | ) | 13.40 | (8.51 | ) | 35 | .73 | 3.17 | |||||||||||||||||||||||||||
12/31/10 | 14.92 | .38 | .68 | 1.06 | (.33 | ) | (.40 | ) | (.73 | ) | 15.25 | 7.24 | 32 | .74 | 2.61 | ||||||||||||||||||||||||||||||
12/31/09 | 10.92 | .36 | 4.04 | 4.40 | (.19 | ) | (.21 | ) | (.40 | ) | 14.92 | 40.38 | 28 | .74 | 2.74 | ||||||||||||||||||||||||||||||
Class 2 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 15.25 | .38 | 2.51 | 2.89 | (.43 | ) | (.28 | ) | (.71 | ) | 17.43 | 19.09 | 257 | .94 | 2.28 | ||||||||||||||||||||||||||||||
12/31/12 | 13.37 | .40 | 1.81 | 2.21 | (.33 | ) | — | (.33 | ) | 15.25 | 16.50 | 225 | .99 | 2.77 | |||||||||||||||||||||||||||||||
12/31/11 | 15.21 | .42 | (1.75 | ) | (1.33 | ) | (.40 | ) | (.11 | ) | (.51 | ) | 13.37 | (8.71 | ) | 199 | .98 | 2.89 | |||||||||||||||||||||||||||
12/31/10 | 14.90 | .35 | .67 | 1.02 | (.31 | ) | (.40 | ) | (.71 | ) | 15.21 | 6.92 | 180 | .99 | 2.37 | ||||||||||||||||||||||||||||||
12/31/09 | 10.92 | .26 | 4.10 | 4.36 | (.17 | ) | (.21 | ) | (.38 | ) | 14.90 | 40.04 | 99 | .99 | 1.89 | ||||||||||||||||||||||||||||||
Class 4 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 15.29 | .03 | 2.87 | 2.90 | (.46 | ) | (.28 | ) | (.74 | ) | 17.45 | 19.16 | 1 | 1.19 | .18 | ||||||||||||||||||||||||||||||
12/31/122,3 | 15.56 | .01 | .09 | .10 | (.37 | ) | — | (.37 | ) | 15.29 | .62 | — | 4 | .04 | 5 | .07 | 5 |
American Funds Insurance Series | 175 |
Financial highlights (continued)
Income (loss) from investment operations1 | Dividends and distributions | ||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income to average net assets | |||||||||||||||||||||||||||||||||
Asset Allocation Fund | |||||||||||||||||||||||||||||||||||||||||||||
Class 1 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | $ | 18.43 | $ | .35 | $ | 4.07 | $ | 4.42 | $ | (.36 | ) | $ | — | $ | (.36 | ) | $ | 22.49 | 24.04 | % | $ | 10,515 | .31 | % | 1.71 | % | |||||||||||||||||||
12/31/12 | 16.17 | .37 | 2.28 | 2.65 | (.39 | ) | — | (.39 | ) | 18.43 | 16.44 | 7,199 | .31 | 2.11 | |||||||||||||||||||||||||||||||
12/31/11 | 16.28 | .37 | (.12 | ) | .25 | (.36 | ) | — | (.36 | ) | 16.17 | 1.56 | 5,932 | .31 | 2.25 | ||||||||||||||||||||||||||||||
12/31/10 | 14.75 | .35 | 1.52 | 1.87 | (.34 | ) | — | (.34 | ) | 16.28 | 12.75 | 5,235 | .31 | 2.33 | |||||||||||||||||||||||||||||||
12/31/09 | 12.16 | .35 | 2.59 | 2.94 | (.35 | ) | — | (.35 | ) | 14.75 | 24.27 | 4,151 | .32 | 2.65 | |||||||||||||||||||||||||||||||
Class 2 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 18.31 | .30 | 4.03 | 4.33 | (.31 | ) | — | (.31 | ) | 22.33 | 23.69 | 5,760 | .56 | 1.47 | |||||||||||||||||||||||||||||||
12/31/12 | 16.06 | .33 | 2.27 | 2.60 | (.35 | ) | — | (.35 | ) | 18.31 | 16.19 | 5,225 | .56 | 1.86 | |||||||||||||||||||||||||||||||
12/31/11 | 16.17 | .33 | (.13 | ) | .20 | (.31 | ) | — | (.31 | ) | 16.06 | 1.30 | 5,151 | .56 | 1.99 | ||||||||||||||||||||||||||||||
12/31/10 | 14.65 | .31 | 1.51 | 1.82 | (.30 | ) | — | (.30 | ) | 16.17 | 12.50 | 5,689 | .57 | 2.08 | |||||||||||||||||||||||||||||||
12/31/09 | 12.08 | .32 | 2.56 | 2.88 | (.31 | ) | — | (.31 | ) | 14.65 | 23.98 | 5,537 | .58 | 2.45 | |||||||||||||||||||||||||||||||
Class 3 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 18.45 | .32 | 4.06 | 4.38 | (.32 | ) | — | (.32 | ) | 22.51 | 23.81 | 42 | .49 | 1.54 | |||||||||||||||||||||||||||||||
12/31/12 | 16.18 | .34 | 2.29 | 2.63 | (.36 | ) | — | (.36 | ) | 18.45 | 16.28 | 38 | .49 | 1.93 | |||||||||||||||||||||||||||||||
12/31/11 | 16.29 | .34 | (.13 | ) | .21 | (.32 | ) | — | (.32 | ) | 16.18 | 1.36 | 38 | .49 | 2.05 | ||||||||||||||||||||||||||||||
12/31/10 | 14.75 | .32 | 1.53 | 1.85 | (.31 | ) | — | (.31 | ) | 16.29 | 12.62 | 44 | .50 | 2.15 | |||||||||||||||||||||||||||||||
12/31/09 | 12.17 | .33 | 2.57 | 2.90 | (.32 | ) | — | (.32 | ) | 14.75 | 23.95 | 44 | .51 | 2.53 | |||||||||||||||||||||||||||||||
Class 4 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 18.43 | .27 | 4.12 | 4.39 | (.36 | ) | — | (.36 | ) | 22.46 | 23.89 | 1 | .79 | 1.22 | |||||||||||||||||||||||||||||||
12/31/122,3 | 18.52 | .01 | .21 | .22 | (.31 | ) | — | (.31 | ) | 18.43 | 1.17 | — | 4 | .01 | 5 | .08 | 5 | ||||||||||||||||||||||||||||
Global Balanced Fund | |||||||||||||||||||||||||||||||||||||||||||||
Class 1 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | $ | 10.34 | $ | .22 | $ | 1.07 | $ | 1.29 | $ | (.18 | ) | $ | (.08 | ) | $ | (.26 | ) | $ | 11.37 | 12.56 | % | $ | 36 | .70 | % | 2.05 | % | ||||||||||||||||||
12/31/12 | 9.35 | .20 | .98 | 1.18 | (.19 | ) | — | (.19 | ) | 10.34 | 12.58 | 32 | .72 | 2.00 | |||||||||||||||||||||||||||||||
12/31/112,6 | 10.00 | .13 | (.72 | ) | (.59 | ) | (.06 | ) | — | (.06 | ) | 9.35 | (5.89 | ) | 28 | .69 | 7 | 1.99 | 7 | ||||||||||||||||||||||||||
Class 2 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 10.33 | .20 | 1.06 | 1.26 | (.16 | ) | (.08 | ) | (.24 | ) | 11.35 | 12.23 | 156 | .95 | 1.79 | ||||||||||||||||||||||||||||||
12/31/12 | 9.35 | .17 | .97 | 1.14 | (.16 | ) | — | (.16 | ) | 10.33 | 12.24 | 119 | .97 | 1.76 | |||||||||||||||||||||||||||||||
12/31/112,6 | 10.00 | .09 | (.69 | ) | (.60 | ) | (.05 | ) | — | (.05 | ) | 9.35 | (5.97 | ) | 72 | .94 | 7 | 1.45 | 7 | ||||||||||||||||||||||||||
Class 4 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 10.33 | .22 | 1.06 | 1.28 | (.18 | ) | (.08 | ) | (.26 | ) | 11.35 | 12.49 | — | 4 | .71 | 5 | 1.98 | 5 | |||||||||||||||||||||||||||
12/31/122,3 | 10.47 | .01 | .03 | .04 | (.18 | ) | — | (.18 | ) | 10.33 | .40 | — | 4 | .03 | 5 | .05 | 5 | ||||||||||||||||||||||||||||
Bond Fund | |||||||||||||||||||||||||||||||||||||||||||||
Class 1 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | $ | 11.29 | $ | .22 | $ | (.43 | ) | $ | (.21 | ) | $ | (.23 | ) | $ | (.12 | ) | $ | (.35 | ) | $ | 10.73 | (1.89 | )% | $ | 4,506 | .39 | % | 2.01 | % | ||||||||||||||||
12/31/12 | 10.99 | .25 | .36 | .61 | (.31 | ) | — | (.31 | ) | 11.29 | 5.58 | 3,917 | .39 | 2.23 | |||||||||||||||||||||||||||||||
12/31/11 | 10.67 | .32 | .36 | .68 | (.36 | ) | — | (.36 | ) | 10.99 | 6.41 | 4,354 | .38 | 2.89 | |||||||||||||||||||||||||||||||
12/31/10 | 10.33 | .33 | .36 | .69 | (.35 | ) | — | (.35 | ) | 10.67 | 6.73 | 4,768 | .38 | 3.03 | |||||||||||||||||||||||||||||||
12/31/09 | 9.45 | .42 | .80 | 1.22 | (.34 | ) | — | (.34 | ) | 10.33 | 12.83 | 3,775 | .39 | 4.19 | |||||||||||||||||||||||||||||||
Class 2 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 11.17 | .19 | (.43 | ) | (.24 | ) | (.20 | ) | (.12 | ) | (.32 | ) | 10.61 | (2.16 | ) | 4,763 | .64 | 1.76 | |||||||||||||||||||||||||||
12/31/12 | 10.87 | .22 | .36 | .58 | (.28 | ) | — | (.28 | ) | 11.17 | 5.37 | 5,044 | .64 | 1.97 | |||||||||||||||||||||||||||||||
12/31/11 | 10.56 | .29 | .35 | .64 | (.33 | ) | — | (.33 | ) | 10.87 | 6.10 | 4,984 | .63 | 2.64 | |||||||||||||||||||||||||||||||
12/31/10 | 10.23 | .30 | .36 | .66 | (.33 | ) | — | (.33 | ) | 10.56 | 6.44 | 5,074 | .63 | 2.79 | |||||||||||||||||||||||||||||||
12/31/09 | 9.36 | .40 | .79 | 1.19 | (.32 | ) | — | (.32 | ) | 10.23 | 12.61 | 4,635 | .64 | 4.00 | |||||||||||||||||||||||||||||||
Class 4 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 11.29 | .17 | (.43 | ) | (.26 | ) | (.22 | ) | (.12 | ) | (.34 | ) | 10.69 | (2.34 | ) | 3 | .89 | 1.58 | |||||||||||||||||||||||||||
12/31/122,3 | 11.55 | .01 | (.02 | ) | (.01 | ) | (.25 | ) | — | (.25 | ) | 11.29 | (.04 | ) | — | 4 | .02 | 5 | .10 | 5 |
See end of financial highlights tables for footnotes.
176 | American Funds Insurance Series |
(Loss) income from investment operations1 | Dividends and distributions | ||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net (losses) gains on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | |||||||||||||||||||||||||||||||||
Global Bond Fund | |||||||||||||||||||||||||||||||||||||||||||||
Class 1 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | $ | 12.32 | $ | .28 | $ | (.58 | ) | $ | (.30 | ) | $ | — | $ | (.14 | ) | $ | (.14 | ) | $ | 11.88 | (2.40 | )% | $ | 1,093 | .56 | % | 2.37 | % | |||||||||||||||||
12/31/12 | 11.96 | .28 | .48 | .76 | (.29 | ) | (.11 | ) | (.40 | ) | 12.32 | 6.43 | 959 | .56 | 2.29 | ||||||||||||||||||||||||||||||
12/31/11 | 11.82 | .36 | .22 | .58 | (.37 | ) | (.07 | ) | (.44 | ) | 11.96 | 4.86 | 619 | .56 | 2.97 | ||||||||||||||||||||||||||||||
12/31/10 | 11.57 | .41 | .21 | .62 | (.37 | ) | — | (.37 | ) | 11.82 | 5.44 | 325 | .57 | 3.42 | |||||||||||||||||||||||||||||||
12/31/09 | 10.68 | .45 | .62 | 1.07 | (.18 | ) | — | (.18 | ) | 11.57 | 10.04 | 162 | .59 | 4.06 | |||||||||||||||||||||||||||||||
Class 2 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 12.27 | .25 | (.57 | ) | (.32 | ) | — | (.14 | ) | (.14 | ) | 11.81 | (2.58 | ) | 1,496 | .81 | 2.11 | ||||||||||||||||||||||||||||
12/31/12 | 11.91 | .25 | .48 | .73 | (.26 | ) | (.11 | ) | (.37 | ) | 12.27 | 6.19 | 1,664 | .81 | 2.06 | ||||||||||||||||||||||||||||||
12/31/11 | 11.78 | .33 | .21 | .54 | (.34 | ) | (.07 | ) | (.41 | ) | 11.91 | 4.54 | 1,639 | .81 | 2.75 | ||||||||||||||||||||||||||||||
12/31/10 | 11.53 | .38 | .22 | .60 | (.35 | ) | — | (.35 | ) | 11.78 | 5.23 | 1,497 | .83 | 3.21 | |||||||||||||||||||||||||||||||
12/31/09 | 10.66 | .42 | .61 | 1.03 | (.16 | ) | — | (.16 | ) | 11.53 | 9.69 | 1,203 | .84 | 3.79 | |||||||||||||||||||||||||||||||
Class 4 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 12.31 | .27 | (.57 | ) | (.30 | ) | — | (.14 | ) | (.14 | ) | 11.87 | (2.41 | ) | — | 4 | .79 | 2.25 | |||||||||||||||||||||||||||
12/31/122,3 | 12.53 | .01 | (.04 | ) | (.03 | ) | (.19 | ) | — | (.19 | ) | 12.31 | (.28 | ) | — | 4 | .02 | 5 | .11 | 5 | |||||||||||||||||||||||||
High-Income Bond Fund | |||||||||||||||||||||||||||||||||||||||||||||
Class 1 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | $ | 11.16 | $ | .75 | $ | .01 | $ | .76 | $ | (.79 | ) | $ | — | $ | (.79 | ) | $ | 11.13 | 6.89 | % | $ | 856 | .48 | % | 6.54 | % | |||||||||||||||||||
12/31/12 | 10.54 | .81 | .64 | 1.45 | (.83 | ) | — | (.83 | ) | 11.16 | 13.90 | 894 | .48 | 7.25 | |||||||||||||||||||||||||||||||
12/31/11 | 11.20 | .88 | (.64 | ) | .24 | (.90 | ) | — | (.90 | ) | 10.54 | 2.18 | 787 | .47 | 7.70 | ||||||||||||||||||||||||||||||
12/31/10 | 10.49 | .91 | .68 | 1.59 | (.88 | ) | — | (.88 | ) | 11.20 | 15.38 | 769 | .48 | 8.15 | |||||||||||||||||||||||||||||||
12/31/09 | 8.05 | .75 | 2.41 | 3.16 | (.72 | ) | — | (.72 | ) | 10.49 | 39.45 | 635 | .48 | 7.86 | |||||||||||||||||||||||||||||||
Class 2 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 11.03 | .71 | .01 | .72 | (.76 | ) | — | (.76 | ) | 10.99 | 6.60 | 1,061 | .73 | 6.29 | |||||||||||||||||||||||||||||||
12/31/12 | 10.42 | .78 | .63 | 1.41 | (.80 | ) | — | (.80 | ) | 11.03 | 13.70 | 1,135 | .73 | 7.00 | |||||||||||||||||||||||||||||||
12/31/11 | 11.08 | .84 | (.63 | ) | .21 | (.87 | ) | — | (.87 | ) | 10.42 | 1.92 | 1,064 | .72 | 7.44 | ||||||||||||||||||||||||||||||
12/31/10 | 10.39 | .87 | .68 | 1.55 | (.86 | ) | — | (.86 | ) | 11.08 | 15.07 | 1,142 | .73 | 7.91 | |||||||||||||||||||||||||||||||
12/31/09 | 7.99 | .71 | 2.39 | 3.10 | (.70 | ) | — | (.70 | ) | 10.39 | 38.94 | 1,063 | .74 | 7.62 | |||||||||||||||||||||||||||||||
Class 3 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 11.18 | .73 | .02 | .75 | (.77 | ) | — | (.77 | ) | 11.16 | 6.77 | 19 | .66 | 6.36 | |||||||||||||||||||||||||||||||
12/31/12 | 10.56 | .80 | .63 | 1.43 | (.81 | ) | — | (.81 | ) | 11.18 | 13.67 | 21 | .66 | 7.07 | |||||||||||||||||||||||||||||||
12/31/11 | 11.22 | .86 | (.64 | ) | .22 | (.88 | ) | — | (.88 | ) | 10.56 | 1.97 | 21 | .65 | 7.51 | ||||||||||||||||||||||||||||||
12/31/10 | 10.51 | .89 | .68 | 1.57 | (.86 | ) | — | (.86 | ) | 11.22 | 15.14 | 23 | .66 | 7.98 | |||||||||||||||||||||||||||||||
12/31/09 | 8.07 | .73 | 2.42 | 3.15 | (.71 | ) | — | (.71 | ) | 10.51 | 39.14 | 24 | .67 | 7.69 | |||||||||||||||||||||||||||||||
Class 4 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 11.16 | .67 | .08 | .75 | (.79 | ) | — | (.79 | ) | 11.12 | 6.81 | — | 4 | .93 | 5.82 | ||||||||||||||||||||||||||||||
12/31/122,3 | 11.80 | .04 | — | 8 | .04 | (.68 | ) | — | (.68 | ) | 11.16 | .34 | — | 4 | .02 | 5 | .35 | 5 | |||||||||||||||||||||||||||
Mortgage Fund | |||||||||||||||||||||||||||||||||||||||||||||
Class 1 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | $ | 10.47 | $ | .04 | $ | (.18 | ) | $ | (.14 | ) | $ | (.08 | ) | $ | (.02 | ) | $ | (.10 | ) | $ | 10.23 | (1.41 | )% | $ | 198 | .44 | % | .35 | % | ||||||||||||||||
12/31/12 | 10.37 | .01 | .25 | .26 | (.06 | ) | (.10 | ) | (.16 | ) | 10.47 | 2.57 | 87 | .45 | .08 | ||||||||||||||||||||||||||||||
12/31/112,6 | 10.00 | — | 8 | .48 | .48 | (.01 | ) | (.10 | ) | (.11 | ) | 10.37 | 4.78 | 55 | .42 | 7 | .04 | 7 | |||||||||||||||||||||||||||
Class 2 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 10.46 | — | 8 | (.17 | ) | (.17 | ) | (.05 | ) | (.02 | ) | (.07 | ) | 10.22 | (1.68 | ) | 49 | .69 | (.02 | ) | |||||||||||||||||||||||||
12/31/12 | 10.36 | (.02 | ) | .26 | .24 | (.04 | ) | (.10 | ) | (.14 | ) | 10.46 | 2.38 | 49 | .70 | (.16 | ) | ||||||||||||||||||||||||||||
12/31/112,6 | 10.00 | (.02 | ) | .48 | .46 | — | 8 | (.10 | ) | (.10 | ) | 10.36 | 4.60 | 22 | .67 | 7 | (.25 | )7 | |||||||||||||||||||||||||||
Class 4 | |||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 10.47 | .02 | (.16 | ) | (.14 | ) | (.08 | ) | (.02 | ) | (.10 | ) | 10.23 | (1.41 | ) | — | 4 | .38 | 5 | .23 | 5 | ||||||||||||||||||||||||
12/31/122,3 | 10.60 | — | 8 | .01 | .01 | (.06 | ) | (.08 | ) | (.14 | ) | 10.47 | .09 | — | 4 | .02 | 5 | .04 | 5 |
American Funds Insurance Series | 177 |
Financial highlights (continued)
(Loss) income from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net (losses) gains on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return9 | Net assets, end of period (in millions) | Ratio of expenses to average net assets before waiver | Ratio of expenses to average net assets after waiver9 | Ratio of net income (loss) to average net assets9 | |||||||||||||||||||||||||||||||||||||
U.S. Government/AAA-Rated Securities Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | $ | 12.75 | $ | .08 | $ | (.44 | ) | $ | (.36 | ) | $ | (.11 | ) | $ | (.34 | ) | $ | (.45 | ) | $ | 11.94 | (2.87 | )% | $ | 1,584 | .35 | % | .35 | % | .67 | % | |||||||||||||||||||
12/31/12 | 13.00 | .10 | .18 | .28 | (.16 | ) | (.37 | ) | (.53 | ) | 12.75 | 2.22 | 1,809 | .34 | .34 | .75 | ||||||||||||||||||||||||||||||||||
12/31/11 | 12.59 | .23 | .74 | .97 | (.26 | ) | (.30 | ) | (.56 | ) | 13.00 | 7.85 | 1,785 | .34 | .34 | 1.83 | ||||||||||||||||||||||||||||||||||
12/31/10 | 12.18 | .26 | .46 | .72 | (.25 | ) | (.06 | ) | (.31 | ) | 12.59 | 5.94 | 1,492 | .39 | .36 | 2.07 | ||||||||||||||||||||||||||||||||||
12/31/09 | 12.29 | .37 | (.03 | ) | .34 | (.34 | ) | (.11 | ) | (.45 | ) | 12.18 | 2.79 | 999 | .41 | .41 | 2.99 | |||||||||||||||||||||||||||||||||
Class 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 12.63 | .05 | (.43 | ) | (.38 | ) | (.08 | ) | (.34 | ) | (.42 | ) | 11.83 | (3.08 | ) | 1,801 | .60 | .60 | .42 | |||||||||||||||||||||||||||||||
12/31/12 | 12.89 | .06 | .18 | .24 | (.13 | ) | (.37 | ) | (.50 | ) | 12.63 | 1.91 | 1,995 | .59 | .59 | .50 | ||||||||||||||||||||||||||||||||||
12/31/11 | 12.49 | .20 | .73 | .93 | (.23 | ) | (.30 | ) | (.53 | ) | 12.89 | 7.58 | 2,002 | .59 | .59 | 1.59 | ||||||||||||||||||||||||||||||||||
12/31/10 | 12.08 | .23 | .46 | .69 | (.22 | ) | (.06 | ) | (.28 | ) | 12.49 | 5.75 | 1,959 | .64 | .62 | 1.83 | ||||||||||||||||||||||||||||||||||
12/31/09 | 12.20 | .34 | (.03 | ) | .31 | (.32 | ) | (.11 | ) | (.43 | ) | 12.08 | 2.50 | 1,561 | .66 | .66 | 2.79 | |||||||||||||||||||||||||||||||||
Class 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 12.76 | .06 | (.43 | ) | (.37 | ) | (.09 | ) | (.34 | ) | (.43 | ) | 11.96 | (3.00 | ) | 14 | .53 | .53 | .47 | |||||||||||||||||||||||||||||||
12/31/12 | 13.01 | .07 | .19 | .26 | (.14 | ) | (.37 | ) | (.51 | ) | 12.76 | 2.02 | 20 | .52 | .52 | .58 | ||||||||||||||||||||||||||||||||||
12/31/11 | 12.61 | .21 | .73 | .94 | (.24 | ) | (.30 | ) | (.54 | ) | 13.01 | 7.56 | 24 | .52 | .52 | 1.65 | ||||||||||||||||||||||||||||||||||
12/31/10 | 12.19 | .24 | .47 | .71 | (.23 | ) | (.06 | ) | (.29 | ) | 12.61 | 5.82 | 26 | .57 | .55 | 1.92 | ||||||||||||||||||||||||||||||||||
12/31/09 | 12.30 | .36 | (.04 | ) | .32 | (.32 | ) | (.11 | ) | (.43 | ) | 12.19 | 2.58 | 27 | .59 | .59 | 2.91 | |||||||||||||||||||||||||||||||||
Class 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 12.75 | .08 | (.44 | ) | (.36 | ) | (.12 | ) | (.34 | ) | (.46 | ) | 11.93 | (2.95 | ) | — | 4 | .84 | .84 | .68 | ||||||||||||||||||||||||||||||
12/31/122,3 | 12.88 | .01 | (.01 | ) | — | (.13 | ) | — | (.13 | ) | 12.75 | (.01 | ) | — | 4 | .02 | 5 | .02 | 5 | .05 | 5 | |||||||||||||||||||||||||||||
Cash Management Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | $ | 11.34 | $ | (.03 | ) | $ | — | 8 | $ | (.03 | ) | $ | — | $ | — | $ | — | $ | 11.31 | (.27 | )% | $ | 57 | .34 | % | (.24 | )% | |||||||||||||||||||||||
12/31/12 | 11.36 | (.03 | ) | .01 | (.02 | ) | — | — | — | 11.34 | (.18 | ) | 66 | .34 | (.22 | ) | ||||||||||||||||||||||||||||||||||
12/31/11 | 11.39 | (.02 | ) | (.01 | ) | (.03 | ) | — | — | — | 11.36 | (.26 | ) | 75 | .33 | (.21 | ) | |||||||||||||||||||||||||||||||||
12/31/10 | 11.40 | (.02 | ) | .01 | (.01 | ) | — | — | — | 11.39 | (.09 | ) | 83 | .33 | (.14 | ) | ||||||||||||||||||||||||||||||||||
12/31/09 | 11.44 | (.01 | ) | — | 8 | (.01 | ) | (.03 | ) | — | 8 | (.03 | ) | 11.40 | (.10 | ) | 105 | .33 | (.08 | ) | ||||||||||||||||||||||||||||||
Class 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 11.17 | (.05 | ) | — | 8 | (.05 | ) | — | — | — | 11.12 | (.45 | ) | 395 | .59 | (.49 | ) | |||||||||||||||||||||||||||||||||
12/31/12 | 11.22 | (.05 | ) | — | 8 | (.05 | ) | — | — | — | 11.17 | (.45 | ) | 459 | .59 | (.47 | ) | |||||||||||||||||||||||||||||||||
12/31/11 | 11.28 | (.05 | ) | (.01 | ) | (.06 | ) | — | — | — | 11.22 | (.53 | ) | 530 | .58 | (.47 | ) | |||||||||||||||||||||||||||||||||
12/31/10 | 11.32 | (.04 | ) | — | 8 | (.04 | ) | — | — | — | 11.28 | (.35 | ) | 522 | .58 | (.39 | ) | |||||||||||||||||||||||||||||||||
12/31/09 | 11.38 | (.04 | ) | — | 8 | (.04 | ) | (.02 | ) | — | 8 | (.02 | ) | 11.32 | (.33 | ) | 664 | .58 | (.33 | ) | ||||||||||||||||||||||||||||||
Class 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 11.26 | (.05 | ) | — | 8 | (.05 | ) | — | — | — | 11.21 | (.44 | ) | 8 | .52 | (.42 | ) | |||||||||||||||||||||||||||||||||
12/31/12 | 11.30 | (.05 | ) | .01 | (.04 | ) | — | — | — | 11.26 | (.35 | ) | 11 | .52 | (.40 | ) | ||||||||||||||||||||||||||||||||||
12/31/11 | 11.34 | (.04 | ) | — | 8 | (.04 | ) | — | — | — | 11.30 | (.35 | ) | 12 | .51 | (.40 | ) | |||||||||||||||||||||||||||||||||
12/31/10 | 11.38 | (.04 | ) | — | 8 | (.04 | ) | — | — | — | 11.34 | (.35 | ) | 13 | .51 | (.32 | ) | |||||||||||||||||||||||||||||||||
12/31/09 | 11.44 | (.03 | ) | (.01 | ) | (.04 | ) | (.02 | ) | — | 8 | (.02 | ) | 11.38 | (.31 | ) | 17 | .51 | (.27 | ) | ||||||||||||||||||||||||||||||
Class 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 11.34 | (.04 | ) | — | 8 | (.04 | ) | — | — | — | 11.30 | (.35 | ) | — | 4 | .37 | 5 | (.32 | )5 | |||||||||||||||||||||||||||||||
12/31/122,3 | 11.34 | — | 8 | — | 8 | — | 8 | — | — | — | 11.34 | .00 | — | 4 | .02 | 5 | (.01 | )5 |
See end of financial highlights tables for footnotes.
178 | American Funds Insurance Series |
Income from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return9 | Net assets, end of period (in thousands) | Ratio of expenses to average net assets before waiver | Ratio of expenses to average net assets after waiver9 | Net effective expense ratio9,10 | Ratio of net income to average net assets9 | ||||||||||||||||||||||||||||||||||||
Managed Risk Growth Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/132,11 | $ | 10.00 | $ | .12 | $ | 1.38 | $ | 1.50 | $ | (.07 | ) | $ | — | $ | (.07 | ) | $ | 11.43 | 15.05 | % | $ | 166 | .88 | %7 | .25 | %7 | .58 | %7 | 1.64 | % | ||||||||||||||||||||
Class P2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/132,11 | 10.00 | .12 | 1.37 | 1.49 | (.06 | ) | — | (.06 | ) | 11.43 | 14.94 | 27,827 | 1.05 | 7 | .52 | 7 | .85 | 7 | 1.69 | |||||||||||||||||||||||||||||||
Managed Risk International Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/132,11 | $ | 10.00 | $ | .13 | $ | .78 | $ | .91 | $ | (.09 | ) | $ | — | $ | (.09 | ) | $ | 10.82 | 9.08 | % | $ | 109 | 1.05 | %7 | .23 | %7 | .73 | %7 | 1.92 | % | ||||||||||||||||||||
Class P2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/132,11 | 10.00 | .18 | .72 | .90 | (.08 | ) | — | (.08 | ) | 10.82 | 8.99 | 16,777 | 1.19 | 7 | .44 | 7 | .94 | 7 | 2.66 | |||||||||||||||||||||||||||||||
Managed Risk Blue Chip Income and Growth Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/132,11 | $ | 10.00 | $ | .20 | $ | 1.01 | $ | 1.21 | $ | (.16 | ) | $ | — | $ | (.16 | ) | $ | 11.05 | 12.16 | % | $ | 124 | .84 | %7 | .24 | %7 | .64 | %7 | 2.80 | % | ||||||||||||||||||||
Class P2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/132,11 | 10.00 | .28 | .92 | 1.20 | (.15 | ) | — | (.15 | ) | 11.05 | 12.05 | 26,235 | 1.04 | 7 | .54 | 7 | .94 | 7 | 3.91 | |||||||||||||||||||||||||||||||
Managed Risk Growth-Income Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/132,11 | $ | 10.00 | $ | .14 | $ | 1.47 | $ | 1.61 | $ | (.11 | ) | $ | — | $ | (.11 | ) | $ | 11.50 | 16.15 | % | $ | 123 | .92 | %7 | .23 | %7 | .50 | %7 | 2.01 | % | ||||||||||||||||||||
Class P2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/132,11 | 10.00 | .20 | 1.40 | 1.60 | (.10 | ) | — | (.10 | ) | 11.50 | 16.04 | 24,032 | 1.09 | 7 | .50 | 7 | .77 | 7 | 2.73 | |||||||||||||||||||||||||||||||
Managed Risk Asset Allocation Fund (formerly Protected Asset Allocation Fund) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | $ | 9.99 | $ | .27 | $ | 1.81 | $ | 2.08 | $ | (.14 | ) | $ | — | $ | (.14 | ) | $ | 11.93 | 20.82 | % | $ | 112,037 | .55 | % | .47 | % | .75 | % | 2.37 | % | ||||||||||||||||||||
12/31/122,12 | 10.00 | .15 | (.03 | ) | .12 | (.13 | ) | — | (.13 | ) | 9.99 | 1.24 | 10 | .15 | .07 | .37 | 1.72 | |||||||||||||||||||||||||||||||||
Class P2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/13 | 9.99 | .28 | 1.77 | 2.05 | (.11 | ) | — | (.11 | ) | 11.93 | 20.58 | 795,033 | .80 | .73 | 1.01 | 2.43 | ||||||||||||||||||||||||||||||||||
12/31/122,12 | 10.00 | .17 | (.05 | ) | .12 | (.13 | ) | — | (.13 | ) | 9.99 | 1.21 | 24 | .24 | .11 | .41 | 2.38 |
American Funds Insurance Series | 179 |
Year ended December 31 | ||||||||||||||||||||
Portfolio turnover rate for all share classes | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||
Global Growth Fund | 39 | % | 22 | % | 28 | % | 28 | % | 43 | % | ||||||||||
Global Small Capitalization Fund | 36 | 40 | 44 | 47 | 55 | |||||||||||||||
Growth Fund | 19 | 21 | 19 | 28 | 37 | |||||||||||||||
International Fund | 21 | 29 | 24 | 25 | 46 | |||||||||||||||
New World Fund | 43 | 32 | 22 | 18 | 25 | |||||||||||||||
Blue Chip Income and Growth Fund | 30 | 36 | 27 | 22 | 22 | |||||||||||||||
Global Growth and Income Fund | 31 | 30 | 25 | 30 | 47 | |||||||||||||||
Growth-Income Fund | 19 | 25 | 22 | 22 | 24 | |||||||||||||||
International Growth and Income Fund | 34 | 31 | 48 | 31 | 21 | |||||||||||||||
Asset Allocation Fund | 74 | 61 | 43 | 46 | 41 | |||||||||||||||
Global Balanced Fund | 81 | 80 | 34 | 6 | ||||||||||||||||
Bond Fund | 354 | 253 | 163 | 187 | 125 | |||||||||||||||
Global Bond Fund | 213 | 160 | 101 | 106 | 86 | |||||||||||||||
High-Income Bond Fund | 64 | 48 | 51 | 54 | 47 | |||||||||||||||
Mortgage Fund | 715 | 444 | 480 | 6 | ||||||||||||||||
U.S. Government/AAA-Rated Securities Fund | 621 | 447 | 234 | 208 | 100 | |||||||||||||||
Cash Management Fund | — | — | — | — | — | |||||||||||||||
Managed Risk Growth Fund | 10 | 11 | ||||||||||||||||||
Managed Risk International Fund | 6 | 11 | ||||||||||||||||||
Managed Risk Blue Chip Income and Growth Fund | 3 | 11 | ||||||||||||||||||
Managed Risk Growth-Income Fund | 2 | 11 | ||||||||||||||||||
Managed Risk Asset Allocation Fund (formerly Protected Asset Allocation Fund) | 3 | — | 12,13 | |||||||||||||||||
1 | Based on average shares outstanding. |
2 | Based on operations for the period shown and, accordingly, is not representative of a full year. |
3 | Class 4 shares were offered beginning December 14, 2012. |
4 | Amount less than $1 million. |
5 | The fund’s assets consisted solely of seed capital invested by CRMC; therefore, certain fees were not accrued. |
6 | For the period May 2, 2011, commencement of operations, through December 31, 2011. |
7 | Annualized. |
8 | Amount less than $.01. |
9 | This column reflects the impact, if any, of certain waivers by CRMC. CRMC reduced fees for investment advisory services for U.S. Government/AAA-Rated Securities Fund during 2010 and for the managed risk funds since each fund’s commencement of operations. |
10 | Ratio reflects weighted average net expense ratio of the underlying fund for the period presented. See Expense Example for further information regarding fees and expenses. |
11 | For the period May 1, 2013, commencement of operations, through December 31, 2013. |
12 | For the period September 28, 2012, commencement of operations, through December 31, 2012. |
13 | Amount less than 1%. |
See Notes to Financial Statements
180 | American Funds Insurance Series |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of American Funds Insurance Series
In our opinion, the accompanying statements of assets and liabilities, including the summary investment portfolios (investment portfolios for Cash Management 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 (formerly Protected Asset Allocation Fund)), and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Global Growth Fund, Global Small Capitalization Fund, Growth Fund, International Fund, New World Fund, Blue Chip Income and Growth Fund, Global Growth and Income Fund, Growth-Income Fund, International Growth and Income Fund, Asset Allocation Fund, Global Balanced Fund, Bond Fund, Global Bond Fund, High-Income Bond Fund, Mortgage Fund, U.S. Government/AAA-Rated Securities Fund, Cash Management 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 (formerly Protected Asset Allocation Fund) (twenty-two of the portfolios constituting American Funds Insurance Series, hereafter referred to as the “Series”) at December 31, 2013, the results of each of their operations for each of the periods then ended, and the changes in each of their net assets and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Series’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2013 by correspondence with the custodians and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Los Angeles, California
February 5, 2014
American Funds Insurance Series | 181 |
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 (July 1, 2013, through December 31, 2013).
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 entitled “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.
182 | American Funds Insurance Series |
Beginning account value 7/1/2013 | Ending account value 12/31/2013 | Expenses paid during period1 | Annualized expense ratio | ||||||||||
Global Growth Fund | |||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,203.74 | $ | 3.06 | .55 | % | |||||
Class 1 — assumed 5% return | 1,000.00 | 1,022.43 | 2.80 | .55 | |||||||||
Class 2 — actual return | 1,000.00 | 1,202.01 | 4.44 | .80 | |||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,021.17 | 4.08 | .80 | |||||||||
Class 4 — actual return | 1,000.00 | 1,202.74 | 5.89 | 1.06 | |||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,019.86 | 5.40 | 1.06 | |||||||||
Global Small Capitalization Fund | |||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,178.99 | $ | 4.06 | .74 | % | |||||
Class 1 — assumed 5% return | 1,000.00 | 1,021.48 | 3.77 | .74 | |||||||||
Class 2 — actual return | 1,000.00 | 1,177.16 | 5.43 | .99 | |||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,020.21 | 5.04 | .99 | |||||||||
Class 4 — actual return | 1,000.00 | 1,175.63 | 6.80 | 1.24 | |||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,018.95 | 6.31 | 1.24 | |||||||||
Growth Fund | |||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,182.34 | $ | 1.93 | .35 | % | |||||
Class 1 — assumed 5% return | 1,000.00 | 1,023.44 | 1.79 | .35 | |||||||||
Class 2 — actual return | 1,000.00 | 1,180.87 | 3.30 | .60 | |||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,022.18 | 3.06 | .60 | |||||||||
Class 3 — actual return | 1,000.00 | 1,181.34 | 2.91 | .53 | |||||||||
Class 3 — assumed 5% return | 1,000.00 | 1,022.53 | 2.70 | .53 | |||||||||
Class 4 — actual return | 1,000.00 | 1,179.50 | 4.67 | .85 | |||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,020.92 | 4.33 | .85 | |||||||||
International Fund | |||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,178.79 | $ | 2.97 | .54 | % | |||||
Class 1 — assumed 5% return | 1,000.00 | 1,022.48 | 2.75 | .54 | |||||||||
Class 2 — actual return | 1,000.00 | 1,177.17 | 4.34 | .79 | |||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,021.22 | 4.02 | .79 | |||||||||
Class 3 — actual return | 1,000.00 | 1,177.57 | 3.95 | .72 | |||||||||
Class 3 — assumed 5% return | 1,000.00 | 1,021.58 | 3.67 | .72 | |||||||||
Class 4 — actual return | 1,000.00 | 1,175.25 | 5.70 | 1.04 | |||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,019.96 | 5.30 | 1.04 | |||||||||
New World Fund | |||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,142.49 | $ | 4.21 | .78 | % | |||||
Class 1 — assumed 5% return | 1,000.00 | 1,021.27 | 3.97 | .78 | |||||||||
Class 2 — actual return | 1,000.00 | 1,140.82 | 5.56 | 1.03 | |||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,020.01 | 5.24 | 1.03 | |||||||||
Class 4 — actual return | 1,000.00 | 1,139.29 | 6.96 | 1.29 | |||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,018.70 | 6.56 | 1.29 |
See end of expense example tables for footnotes.
American Funds Insurance Series | 183 |
Beginning account value 7/1/2013 | Ending account value 12/31/2013 | Expenses paid during period1 | Annualized expense ratio | ||||||||||
Blue Chip Income and Growth Fund | |||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,162.83 | $ | 2.29 | .42 | % | |||||
Class 1 — assumed 5% return | 1,000.00 | 1,023.09 | 2.14 | .42 | |||||||||
Class 2 — actual return | 1,000.00 | 1,161.93 | 3.65 | .67 | |||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,021.83 | 3.41 | .67 | |||||||||
Class 4 — actual return | 1,000.00 | 1,162.90 | 4.85 | .89 | |||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,020.72 | 4.53 | .89 | |||||||||
Global Growth and Income Fund | |||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,142.49 | $ | 3.40 | .63 | % | |||||
Class 1 — assumed 5% return | 1,000.00 | 1,022.03 | 3.21 | .63 | |||||||||
Class 2 — actual return | 1,000.00 | 1,142.33 | 4.75 | .88 | |||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,020.77 | 4.48 | .88 | |||||||||
Class 4 — actual return | 1,000.00 | 1,140.50 | 6.04 | 1.12 | |||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,019.56 | 5.70 | 1.12 | |||||||||
Growth-Income Fund | |||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,196.13 | $ | 1.61 | .29 | % | |||||
Class 1 — assumed 5% return | 1,000.00 | 1,023.74 | 1.48 | .29 | |||||||||
Class 2 — actual return | 1,000.00 | 1,194.68 | 2.99 | .54 | |||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,022.48 | 2.75 | .54 | |||||||||
Class 3 — actual return | 1,000.00 | 1,195.02 | 2.60 | .47 | |||||||||
Class 3 — assumed 5% return | 1,000.00 | 1,022.84 | 2.40 | .47 | |||||||||
Class 4 — actual return | 1,000.00 | 1,193.11 | 4.37 | .79 | |||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,021.22 | 4.02 | .79 | |||||||||
International Growth and Income Fund | |||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,148.24 | $ | 3.74 | .69 | % | |||||
Class 1 — assumed 5% return | 1,000.00 | 1,021.73 | 3.52 | .69 | |||||||||
Class 2 — actual return | 1,000.00 | 1,146.70 | 5.09 | .94 | |||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,020.47 | 4.79 | .94 | |||||||||
Class 4 — actual return | 1,000.00 | 1,146.73 | 6.44 | 1.19 | |||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,019.21 | 6.06 | 1.19 | |||||||||
Asset Allocation Fund | |||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,123.62 | $ | 1.61 | .30 | % | |||||
Class 1 — assumed 5% return | 1,000.00 | 1,023.69 | 1.53 | .30 | |||||||||
Class 2 — actual return | 1,000.00 | 1,122.40 | 2.94 | .55 | |||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,022.43 | 2.80 | .55 | |||||||||
Class 3 — actual return | 1,000.00 | 1,122.46 | 2.57 | .48 | |||||||||
Class 3 — assumed 5% return | 1,000.00 | 1,022.79 | 2.45 | .48 | |||||||||
Class 4 — actual return | 1,000.00 | 1,122.78 | 4.28 | .80 | |||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,021.17 | 4.08 | .80 | |||||||||
Global Balanced Fund | |||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,094.91 | $ | 3.70 | .70 | % | |||||
Class 1 — assumed 5% return | 1,000.00 | 1,021.68 | 3.57 | .70 | |||||||||
Class 2 — actual return | 1,000.00 | 1,093.73 | 5.01 | .95 | |||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,020.42 | 4.84 | .95 | |||||||||
Class 4 — actual return | 1,000.00 | 1,094.16 | 3.69 | .70 | |||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,021.68 | 3.57 | .70 |
See end of expense example tables for footnotes.
184 | American Funds Insurance Series |
Beginning account value 7/1/2013 | Ending account value 12/31/2013 | Expenses paid during period1 | Annualized expense ratio | ||||||||||
Bond Fund | |||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,006.14 | $ | 1.97 | .39 | % | |||||
Class 1 — assumed 5% return | 1,000.00 | 1,023.24 | 1.99 | .39 | |||||||||
Class 2 — actual return | 1,000.00 | 1,005.00 | 3.23 | .64 | |||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,021.98 | 3.26 | .64 | |||||||||
Class 4 — actual return | 1,000.00 | 1,003.35 | 4.49 | .89 | |||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,020.72 | 4.53 | .89 | |||||||||
Global Bond Fund | |||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,026.79 | $ | 2.86 | .56 | % | |||||
Class 1 — assumed 5% return | 1,000.00 | 1,022.38 | 2.85 | .56 | |||||||||
Class 2 — actual return | 1,000.00 | 1,026.06 | 4.14 | .81 | |||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,021.12 | 4.13 | .81 | |||||||||
Class 4 — actual return | 1,000.00 | 1,026.81 | 4.65 | .91 | |||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,020.62 | 4.63 | .91 | |||||||||
High-Income Bond Fund | |||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,054.34 | $ | 2.49 | .48 | % | |||||
Class 1 — assumed 5% return | 1,000.00 | 1,022.79 | 2.45 | .48 | |||||||||
Class 2 — actual return | 1,000.00 | 1,052.70 | 3.78 | .73 | |||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,021.53 | 3.72 | .73 | |||||||||
Class 3 — actual return | 1,000.00 | 1,053.52 | 3.42 | .66 | |||||||||
Class 3 — assumed 5% return | 1,000.00 | 1,021.88 | 3.36 | .66 | |||||||||
Class 4 — actual return | 1,000.00 | 1,054.42 | 4.97 | .96 | |||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,020.37 | 4.89 | .96 | |||||||||
Mortgage Fund | |||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 1,001.24 | $ | 2.22 | .44 | % | |||||
Class 1 — assumed 5% return | 1,000.00 | 1,022.99 | 2.24 | .44 | |||||||||
Class 2 — actual return | 1,000.00 | 1,000.67 | 3.48 | .69 | |||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,021.73 | 3.52 | .69 | |||||||||
Class 4 — actual return | 1,000.00 | 1,001.24 | 1.87 | .37 | |||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,023.34 | 1.89 | .37 | |||||||||
U.S. Government/AAA-Rated Securities Fund | |||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 995.01 | $ | 1.76 | .35 | % | |||||
Class 1 — assumed 5% return | 1,000.00 | 1,023.44 | 1.79 | .35 | |||||||||
Class 2 — actual return | 1,000.00 | 993.63 | 3.02 | .60 | |||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,022.18 | 3.06 | .60 | |||||||||
Class 3 — actual return | 1,000.00 | 994.03 | 2.66 | .53 | |||||||||
Class 3 — assumed 5% return | 1,000.00 | 1,022.53 | 2.70 | .53 | |||||||||
Class 4 — actual return | 1,000.00 | 994.26 | 4.27 | .85 | |||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,020.92 | 4.33 | .85 | |||||||||
Cash Management Fund | |||||||||||||
Class 1 — actual return | $ | 1,000.00 | $ | 998.23 | $ | 1.71 | .34 | % | |||||
Class 1 — assumed 5% return | 1,000.00 | 1,023.49 | 1.73 | .34 | |||||||||
Class 2 — actual return | 1,000.00 | 997.31 | 2.97 | .59 | |||||||||
Class 2 — assumed 5% return | 1,000.00 | 1,022.23 | 3.01 | .59 | |||||||||
Class 3 — actual return | 1,000.00 | 998.22 | 2.62 | .52 | |||||||||
Class 3 — assumed 5% return | 1,000.00 | 1,022.58 | 2.65 | .52 | |||||||||
Class 4 — actual return | 1,000.00 | 998.23 | 1.86 | .37 | |||||||||
Class 4 — assumed 5% return | 1,000.00 | 1,023.34 | 1.89 | .37 |
American Funds Insurance Series | 185 |
Beginning account value 7/1/2013 | Ending account value 12/31/2013 | Expenses paid during period1,2 | Annualized expense ratio2 | Effective expenses paid during period3 | Effective annualized expense ratio4 | |||||||||||||||
Managed Risk Growth Fund | ||||||||||||||||||||
Class P1 — actual return | $ | 1,000.00 | $ | 1,141.32 | $ | 1.40 | .26 | % | $ | 3.18 | .59 | % | ||||||||
Class P1 — assumed 5% return | 1,000.00 | 1,023.89 | 1.33 | .26 | 3.01 | .59 | ||||||||||||||
Class P2 — actual return | 1,000.00 | 1,140.30 | 2.97 | .55 | 4.75 | .88 | ||||||||||||||
Class P2 — assumed 5% return | 1,000.00 | 1,022.43 | 2.80 | .55 | 4.48 | .88 | ||||||||||||||
Managed Risk International Fund | ||||||||||||||||||||
Class P1 — actual return | $ | 1,000.00 | $ | 1,113.06 | $ | 1.22 | .23 | % | $ | 3.89 | .73 | % | ||||||||
Class P1 — assumed 5% return | 1,000.00 | 1,024.05 | 1.17 | .23 | 3.72 | .73 | ||||||||||||||
Class P2 — actual return | 1,000.00 | 1,112.13 | 2.50 | .47 | 5.16 | .97 | ||||||||||||||
Class P2 — assumed 5% return | 1,000.00 | 1,022.84 | 2.40 | .47 | 4.94 | .97 | ||||||||||||||
Managed Risk Blue Chip Income and Growth Fund | ||||||||||||||||||||
Class P1 — actual return | $ | 1,000.00 | $ | 1,120.51 | $ | 1.34 | .25 | % | $ | 3.47 | .65 | % | ||||||||
Class P1 — assumed 5% return | 1,000.00 | 1,023.95 | 1.28 | .25 | 3.31 | .65 | ||||||||||||||
Class P2 — actual return | 1,000.00 | 1,119.39 | 3.04 | .57 | 5.18 | .97 | ||||||||||||||
Class P2 — assumed 5% return | 1,000.00 | 1,022.33 | 2.91 | .57 | 4.94 | .97 | ||||||||||||||
Managed Risk Growth-Income Fund | ||||||||||||||||||||
Class P1 — actual return | $ | 1,000.00 | $ | 1,155.67 | $ | 1.25 | .23 | % | $ | 2.72 | .50 | % | ||||||||
Class P1 — assumed 5% return | 1,000.00 | 1,024.05 | 1.17 | .23 | 2.55 | .50 | ||||||||||||||
Class P2 — actual return | 1,000.00 | 1,154.66 | 2.88 | .53 | 4.34 | .80 | ||||||||||||||
Class P2 — assumed 5% return | 1,000.00 | 1,022.53 | 2.70 | .53 | 4.08 | .80 | ||||||||||||||
Managed Risk Asset Allocation Fund (formerly Protected Asset Allocation Fund) | ||||||||||||||||||||
Class P1 — actual return | $ | 1,000.00 | $ | 1,109.93 | $ | 2.55 | .48 | % | $ | 4.04 | .76 | % | ||||||||
Class P1 — assumed 5% return | 1,000.00 | 1,022.79 | 2.45 | .48 | 3.87 | .76 | ||||||||||||||
Class P2 — actual return | 1,000.00 | 1,109.10 | 3.88 | .73 | 5.37 | 1.01 | ||||||||||||||
Class P2 — assumed 5% return | 1,000.00 | 1,021.53 | 3.72 | .73 | 5.14 | 1.01 | ||||||||||||||
1 | The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period,and divided by 365 (to reflect 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 365 (to reflect the one-half year 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. |
186 | American Funds Insurance Series |
Approval of Investment Advisory and Service Agreement – American Funds Insurance Series
The American Funds Insurance Series’ board has approved the series’ Investment Advisory and Service Agreement (the “agreement”) with Capital Research and Management Company (“CRMC”) for an additional one-year term through December 31, 2014. The agreement was amended to add additional advisory fee breakpoints for Asset Allocation Fund and Global Bond Fund when the funds’ net assets exceed $8 billion and $13 billion, and $1 billion and $3 billion, respectively. The board approved the agreement following the recommendation of the series’ Contracts Committee (the “committee”), which is composed of all of the series’ independent board members. The board and the committee determined that each fund’s advisory fee structure 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 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. They considered the factors discussed below, 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 its organization; 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, compliance and shareholder services provided by CRMC to the funds under each fund’s 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 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 relevant funds (including funds that 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 through June 30, 2013. This report, including the letter to shareholders and related disclosures, contains certain information about each fund’s investment results.
Global Growth Fund seeks to provide long-term growth of capital by investing primarily in common stocks of companies located around the world. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Global Funds Average (the Lipper category that includes the fund) and (ii) the MSCI All Country World Index. They noted that the fund’s investment results were above both benchmarks over the six-month, one-, three-, five-, and 10-year periods, as well as over the lifetime of the fund since April 30, 1997.
Global Small Capitalization Fund seeks to provide long-term growth of capital by investing primarily in stocks of smaller companies located around the world. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Global Small/Mid-Cap Funds Average (the Lipper category that includes the fund) and (ii) the MSCI All Country World Small Cap Index. They noted that the fund’s investment results were higher than both benchmarks over the six-month, one-, and 10-year periods, as well as over the lifetime of the fund since April 30, 1998. The board and the committee further noted that the fund’s results were substantially lower than both benchmarks over the three- and five-year periods.
American Funds Insurance Series | 187 |
Growth Fund seeks to provide growth of capital by investing primarily in common stocks of companies that appear to offer superior opportunities for growth of capital. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Capital Appreciation Funds Average, (ii) the Lipper Growth Funds Average (the Lipper category that includes the fund), and (iii) Standard & Poor’s 500 Composite Index. They noted that the fund’s investment results were higher than all three benchmarks over the 10-year period and over the lifetime of the fund since February 8, 1984, and were mixed over the one- and three-year periods, and lower than the benchmarks over the six-month and five-year periods.
International Fund seeks to provide long-term growth of capital by investing primarily in common stocks of companies domiciled outside the United States. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper International Funds Average (the Lipper category that includes the fund) and (ii) the MSCI All Country World ex USA Index. They noted that the fund’s investment results were higher than both benchmarks over the six-month, one-, five-, and 10-year periods and over the lifetime of the fund since May 1, 1990, and mixed over the three-year period.
New World Fund seeks long-term capital appreciation by investing primarily in stocks of companies with significant exposure to countries with developing economies and/or markets. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Emerging Markets Funds Average (the Lipper category that includes the fund), and (ii) the MSCI All Country World Index. They noted that the fund’s investment results were mixed over each time period, with investment results above the Lipper average and lower than the MSCI index over the six-month, one-, three-, and five-year periods, and lower than the Lipper average and higher than the MSCI index during the 10-year period and over the lifetime of the fund since June 17, 1999.
Blue Chip Income and Growth Fund seeks to produce income exceeding the average yield on U.S. stocks generally and to provide an opportunity for growth of principal by investing primarily in dividend-paying common stocks of larger, more established companies domiciled in the United States, with market capitalizations of $4 billion and above. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Growth and Income Funds Average (the Lipper category that includes the fund) and (ii) Standard & Poor’s 500 Composite Index. They noted that the fund’s investment results were higher than both benchmarks over the six-month and five-year periods. Over the one-, three-, and 10-year periods, results of the fund were higher than the Lipper average, but lower than the S&P 500. Results were lower than both benchmarks over the lifetime of the fund since July 5, 2001.
Global Growth and Income Fund seeks to provide long-term growth of capital while providing current income by investing primarily in well-established companies located around the world. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Global Funds Average (the Lipper category that includes the fund) and (ii) the MSCI All Country World Index. They noted that the fund’s investment results were higher than the Lipper average and the MSCI index over the one-, three-, and five-year periods and over the lifetime of the fund since May 1, 2006, and were equal to the Lipper average, but higher than the MSCI index, during the six-month period.
Growth-Income Fund seeks to provide long-term growth of capital and income by investing primarily in common stocks or other securities that demonstrate the potential for appreciation and/or dividends. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Growth and Income Funds Average (the Lipper category that includes the fund) and (ii) Standard & Poor’s 500 Composite Index. They noted that the fund’s investment results were higher than both benchmarks over the one-year period and over the lifetime of the fund since February 8, 1984. Over the six-month, three-, five-, and 10-year periods, results were higher than the Lipper average but lower than the S&P 500.
188 | American Funds Insurance Series |
International Growth and Income Fund seeks to provide long-term growth of capital while providing current income by investing primarily in stocks of larger, well-established companies domiciled outside the United States, including in developing countries. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper International Funds Average (the Lipper category that includes the fund) and (ii) the MSCI All Country World ex USA Index. They noted that the fund’s investment results were above both benchmarks over the six-month, and three-year periods, as well as over the lifetime of the fund since November 18, 2008, and were mixed during the one-year period, above the MSCI index but below the Lipper average.
Asset Allocation Fund seeks to provide high total return (including income and capital gains) consistent with preservation of capital over the long term by investing in a diversified portfolio of stocks and other equity securities, bonds and other intermediate and long-term debt securities, and money market instruments (debt securities maturing in one year or less). The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Balanced Funds Average (the Lipper category that includes the fund), (ii) the Barclays U.S. Aggregate Index, (iii) Standard and Poor’s 500 Composite Index, and (iv) a customized index comprised of 60% S&P 500 and 40% Barclays index. They noted that the fund’s investment results were above all benchmarks for the 10-year period. For the six-month, one-, three-, and 10-year periods and the lifetime of the fund since August 1, 1989, the fund’s results were above all benchmarks other than the S&P 500. For the five-year period, the fund’s results were above the Lipper average and the Barclays index, but below the S&P 500 and the 60/40 index.
Global Balanced Fund seeks the balanced accomplishment of three objectives: long-term growth of capital, conservation of principal and current income by investing in equity and debt securities of companies around the world that offer the opportunity for growth and/or provide dividend income, while also constructing its portfolio to protect principal and limit volatility. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Global Flexible Portfolio Funds Average (the Lipper category that includes the fund), (ii) the Barclays Global Aggregate Bond Index, (iii) the MSCI All Country World Index, and (iv) a customized index comprised of 60% MSCI index and 40% Barclays index. They noted that the fund’s investment results were above all benchmarks over the six-month and one-year time periods, and over the lifetime of the fund since May 2, 2011, except the MSCI index for the six-month and one-year periods.
Bond Fund seeks to maximize current income and preserve capital by investing primarily in bonds. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Intermediate Investment Grade Debt Funds Average (the Lipper category that includes the fund) and (ii) the Barclays U.S. Aggregate Index. They noted that the fund’s investment results were mixed over the six-month, one- and three-year periods compared to the benchmark indices. They also noted that the fund’s investment results were below the Lipper average and the Barclays index over the five- and 10-year periods and the lifetime of the fund since January 2, 1996.
Global Bond Fund seeks to provide a high level of total return by investing primarily in debt securities of governmental, supranational and corporate issuers domiciled in various countries and dominated in various currencies, including U.S. dollars. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Global Income Funds Average (the Lipper category that includes the fund) and (ii) the Barclays Global Aggregate Bond Index. They noted that the fund’s results were better than the Barclays index but below the Lipper average over the one-, three-, and five-year periods, and were higher than both benchmarks over the lifetime of the fund since October 4, 2006. They also noted that the fund’s investment results were lower than both the Lipper average and the Barclays index over the six-month period.
American Funds Insurance Series | 189 |
High-Income Bond Fund seeks to provide a high level of current income and, secondarily, capital appreciation by investing primarily in higher yielding and generally lower quality debt securities. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper High Yield Funds Average (the Lipper category that includes the fund) and (ii) the Barclays U.S. Corporate High Yield 2% Issuer Capped Index. They noted that the fund’s investment results for the six-month period were above the Lipper average and below the Barclays index, and were higher than the Lipper average over the lifetime of the fund since February 8, 1984. They also noted that the fund’s investment results were lower than both benchmarks over the one-, three-, five-, and 10-year periods.
Mortgage Fund seeks to provide current income and preservation of capital by investing in mortgage-related securities, including securities collateralized by mortgage loans and contracts for future delivery of such securities. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper GNMA Funds Average, (ii) the Lipper U.S. Mortgage Funds Average (the Lipper category that includes the fund), and (iii) the Barclays U.S. Mortgage-Backed Securities Index. They noted that the fund’s results were above all these benchmarks over the six-month period and all others than the Lipper U.S. Mortgage Funds average for the one-year period and lifetime of the fund since May 2, 2011.
U.S. Government/AAA-Rated Securities Fund seeks to provide a high level of current income, as well as to preserve investment. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper General U.S. Government Funds Average (the Lipper category that includes the fund) and (ii) the Barclays U.S. Government/Mortgage-Backed Securities Index. They noted that the fund’s results were higher than the Lipper average over six-month, three-, five-, and 10-year periods and over the lifetime of the fund since December 2, 1985, and lower than the Barclays index over each of the periods.
Cash Management Fund seeks to provide an opportunity to earn income on cash reserves while preserving the value of investment and maintaining liquidity. The board and the committee reviewed the fund’s investment results measured against the Lipper Money Market Funds Average (the Lipper category that includes the fund). They noted that the fund’s investment results were higher than the Lipper average over the 10-year period, but slightly lower than the average over the six-month and one-, three-, and five-year periods and over the lifetime of the fund since February 8, 1984.
The board and the committee concluded that each fund’s investment results have been satisfactory and that CRMC’s record in managing the funds indicated that its continued management should benefit each fund and its shareholders.
190 | American Funds Insurance Series |
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 expenses of each fund except Cash Management Fund were less than the median fees and expenses of the other funds included in its Lipper category described above. They also observed that each fund’s advisory fees were at or less than the median, fees of the other funds included in its Lipper category, except Global Bond Fund and Global Balanced Fund, which were slightly above the median, and Cash Management Fund, which was 20% above the median. They also noted that Cash Management Fund is not a stable net asset value fund and that CRMC does not otherwise waive any fees.
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 advisory fees charged to clients of an affiliate of CRMC. 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 and regulatory differences between advising the fund 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, and that each fund’s shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC 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 while CRMC receives the benefit of research provided by broker-dealers executing portfolio transactions on behalf of each fund, it does not obtain third-party research or other services in return for allocating brokerage to such broker-dealers. 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 willingness to invest 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. 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. 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.
American Funds Insurance Series | 191 |
Approval of Investment Advisory and Service Agreement – American Funds Insurance Series Managed Risk Funds
The American Funds Insurance Series’ board has approved the series’ Investment Advisory and Service Agreement (the “advisory agreement”) with Capital Research and Management Company (“CRMC”) for an additional one-year term through December 31, 2014. The board has also approved the series’ Sub-Advisory Agreement (the “sub-advisory agreement”) with CRMC and Milliman Financial Risk Management LLC (“Milliman”) for the same term. The advisory and sub-advisory 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 of the series’ independent board members. The board and the committee determined that each fund’s advisory fee structure 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 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. They considered the factors discussed below, 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 its organization; 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’s services that would be provided by CRMC, the administrative and compliance and shareholder services that would be provided by CRMC to the funds under the agreements 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 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 also considered the depth and quality of Milliman’s investment management process, including its experience in applying the Milliman Managed Risk Strategy and risk management services for other clients; the experience, capability and integrity of its senior management and other personnel; and the services that would be provided to each fund under the sub-advisory agreement. The board concluded that the nature, extent and quality of the services to be provided by Milliman 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 relevant funds (including funds that 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 through June 30, 2013. This report, including the letter to shareholders and related disclosures, contains certain information about each fund’s investment results.
Managed Risk Growth Fund seeks to provide growth of capital while seeking to manage volatility and provide downside protection. The board and the committee reviewed the fund’s investment results measured against the investment results of (i) the Lipper Growth Funds Average (the Lipper category that includes the fund), and (ii) Standard & Poor’s 500 Composite Index. They noted that the fund’s investment results were substantially below both the Lipper average and the S&P 500 over the lifetime of the fund since May 1, 2013. In addition, they noted that the standard deviation of investment results of the fund based on daily returns since its inception, a measure of volatility, was below that of its underlying fund and of the S&P 500.
192 | American Funds Insurance Series |
Managed Risk International Fund seeks to provide long-term growth of capital while seeking to manage volatility and provide downside protection. The board and the committee reviewed the fund’s investment results measured against the investment results of (i) the Lipper International Funds Average (the Lipper category that includes the fund) and (ii) the MSCI All Country World ex USA Index. They noted that the fund’s investment results were above both the Lipper average and the MSCI index over the lifetime of the fund since May 1, 2013. In addition, they noted that the standard deviation of investment results of the fund based on daily returns since its inception, a measure of volatility, was below that of its underlying fund and of the MSCI index.
Managed Risk Blue Chip Income and Growth Fund seeks to produce income exceeding the average yield on U.S. stocks generally and to provide an opportunity for growth of principal consistent with sound common stock investing, in each case while seeking to manage volatility and provide downside protection. The board and the committee reviewed the fund’s investment results measured against the investment results of (i) the Lipper Growth and Income Funds Average (the Lipper category that includes the fund) and (ii) the Standard & Poor’s 500 Composite Index. They noted that the fund’s investment results were above the Lipper average, but substantially below the S&P 500, over the lifetime of the fund since May 1, 2013. In addition, they noted that the standard deviation of investment results of the fund based on daily returns since its inception, a measure of volatility, was below that of its underlying fund and of the S&P 500.
Managed Risk Growth-Income Fund seeks to achieve long-term growth of capital and income while seeking to manage volatility and provide downside protection. The board and the committee reviewed the fund’s investment results measured against the investment results of (i) the Lipper Growth and Income Funds Average (the Lipper category that includes the fund) and (ii) Standard & Poor’s 500 Composite Index. They noted that the fund’s investment results were above the Lipper average, but substantially below the S&P 500, over the lifetime of the fund since May 1, 2013. In addition, they noted that the standard deviation of investment results of the fund based on daily returns since its inception, a measure of volatility, was below that of its underlying fund and of the S&P 500.
Managed Risk Asset Allocation Fund seeks 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. The board and the committee reviewed the fund’s investment results measured against the investment results of (i) the Lipper Balanced Funds Average (the Lipper category that includes the fund), (ii) the Barclays U.S. Aggregate Index, and (iii) Standard & Poor’s 500 Composite Index. They noted that the fund’s investment results were above the Lipper average and the Barclays index, but substantially below the S&P 500, over the six-month period and lifetime of the fund since September 28, 2012. In addition, they noted that the standard deviation of investment results of the fund based on daily returns since its inception, a measure of volatility, was below that of its underlying fund and of the S&P 500, but above that of a composite index comprised of 60% of the S&P 500 and 40% of the Barclays index.
The board and the committee concluded that each fund’s investment results and the results of the services provided by Milliman have been satisfactory, and that CRMC’s and Milliman’s record in managing the funds indicated that their continued management should benefit each fund and its shareholders.
American Funds Insurance Series | 193 |
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 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 Milliman under the sub-advisory agreement. They observed that each fund’s total advisory fees and expenses were at or near the median of the other funds in its Lipper category. In addition, they observed that each underlying fund’s advisory fees and expenses were less than the median fees and expenses of those funds included in its Lipper category described above.
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 advisory fees paid by clients of an affiliate of CRMC. They noted that, to the extent there were differences between the advisory fee schedule for the funds and the advisory fees paid by those clients, the differences appropriately reflected the investment, operational and regulatory 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 that CRMC provided, directly and through Milliman, and that each fund’s shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC 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 while CRMC receives the benefit of research provided by broker-dealers executing portfolio transactions on behalf of each fund, it does not obtain third-party research or other services in return for allocating brokerage to such broker-dealers. 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 willingness to invest 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. 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. 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.
194 | American Funds Insurance Series |
Board of trustees and other officers
“Independent” trustees1
Name and age | Year first elected a trustee of the series2 | Principal occupation(s) during past five years | Number of portfolios in fund complex overseen by trustee | Other directorships3 held by trustee | ||||
William H. Baribault, 68 | 2009 | Chairman of the Board and CEO, Oakwood Enterprises (private investment and consulting) | 69 | None | ||||
James G. Ellis, 67 | 2010 | Dean and Professor of Marketing, Marshall School of Business, University of Southern California | 69 | Quiksilver, Inc. | ||||
Leonard R. Fuller, 67 | 1999 | President and CEO, Fuller Consulting (financial management consulting firm) | 69 | None | ||||
R. Clark Hooper, 67 Chairman of the Board (Independent and Non-Executive) | 2010 | Private investor | 71 | JPMorgan Value Opportunities Fund, Inc.; The Swiss Helvetia Fund, Inc. | ||||
Merit E. Janow, 55 | 2007 | Dean and Professor, Columbia University, School of International and Public Affairs | 68 | The NASDAQ Stock Market LLC; Trimble Navigation Limited | ||||
Laurel B. Mitchell, Ph.D., 58 | 2010 | Clinical Professor and Director, Accounting Program, University of Redlands | 65 | None | ||||
Frank M. Sanchez, 70 | 2010 | Principal, The Sanchez Family Corporation dba McDonald’s Restaurants (McDonald’s licensee) | 65 | None | ||||
Margaret Spellings, 56 | 2010 | President, George W. Bush Foundation; former President and CEO, Margaret Spellings & Company (public policy and strategic consulting); former President, U.S. Chamber Foundation and Senior Advisor to the President and CEO, U.S. Chamber of Commerce; former U.S. Secretary of Education, U.S. Department of Education | 69 | None | ||||
Steadman Upham, Ph.D., 64 | 2010 | President and University Professor, The University of Tulsa | 68 | None |
We are saddened by the loss of W. Scott Hedrick who passed away on November 3, 2013. Mr. Hedrick served as an independent board member on the boards of various American Funds since 2007. His wise counsel and friendship will be missed.
“Interested” trustee4,5
Name, age and position with series | Year first elected a trustee or officer of the series2 | Principal occupation(s) during past five years and positions held with affiliated entities or the principal underwriter of the series | Number of portfolios in fund complex overseen by trustee | Other directorships3 held by trustee | ||||
Donald D. O’Neal, 53 Vice Chairman of the Board | 1998 | Senior Vice President — Capital Research Global Investors, Capital Research and Management Company; Director, Capital Research and Management Company | 25 | None |
The series’ statement of additional information includes further details about the series’ trustees and is available without charge upon request by calling American Funds Service Company at (800) 421-4225 or by visiting the American Funds website at americanfunds.com. The address for all trustees and officers of the series is 333 South Hope Street, Los Angeles, CA 90071, Attention: Secretary.
See next page for footnotes.
American Funds Insurance Series | 195 |
Other officers5
Name, age and position with series | Year first elected an officer of the series2 | Principal occupation(s) during past five years and positions held with affiliated entities or the principal underwriter of the series | ||
Alan N. Berro, 53 President | 1998 | Senior Vice President — Capital World Investors, Capital Research and Management Company | ||
Michael J. Downer, 59 Executive Vice President | 1991 | Director, Senior Vice President, Secretary and Chief Legal Officer, Capital Research and Management Company; Director, American Funds Distributors, Inc.;6 Chairman of the Board, Capital Bank and Trust Company6 | ||
Abner D. Goldstine, 84 Senior Vice President | 1993 | Senior Vice President — Capital Fixed Income Investors, Capital Research and Management Company | ||
C.Ross Sappenfield, 48 Senior Vice President | 2008 | Senior Vice President — Capital Research Global Investors, Capital Research and Management Company | ||
John H. Smet, 57 Senior Vice President | 1994 | Director, Capital Research and Management Company; Senior Vice President — Capital Fixed Income Investors, Capital Research and Management Company | ||
Carl M. Kawaja, 49 Vice President | 2008 | Senior Vice President — Capital World Investors, Capital Research and Management Company; Chairman of the Board, Capital International Asset Management (Canada), Inc.;6 Director, The Capital Group Companies, Inc.6 | ||
Sung Lee, 47 Vice President | 2008 | Senior Vice President — Capital Research Global Investors, Capital Research Company6 | ||
Maria T. Manotok, 39 Vice President | 2012 | Vice President and Associate Counsel — Fund Business Management Group, Capital Research and Management Company; Vice President and Associate Counsel, Capital Group Companies Global6 | ||
S. Keiko McKibben, 44 Vice President | 2010 | Senior Vice President — Capital Research Global Investors, Capital Research Company6 | ||
Renaud H. Samyn, 40 Vice President | 2010 | Senior Vice President — Capital Research Global Investors, Capital Research Company6 | ||
Dylan Yolles, 45 Vice President | 2012 | Senior Vice President — Capital International Investors, Capital Research and Management Company | ||
Steven I. Koszalka, 49 Secretary | 2003 | Vice President — Fund Business Management Group, Capital Research and Management Company | ||
Gregory F. Niland, 42 Treasurer | 2008 | Vice President — Fund Business Management Group, Capital Research and Management Company | ||
Courtney R. Taylor, 39 Assistant Secretary | 2010 | Assistant Vice President — Fund Business Management Group, Capital Research and Management Company | ||
Karl C. Grauman, 46 Assistant Treasurer | 2006 | Vice President — Fund Business Management Group, Capital Research and Management Company | ||
Dori Laskin, 62 Assistant Treasurer | 2010 | Vice President — Fund Business Management Group, Capital Research and Management Company |
1 | The term “independent” trustee refers to a trustee who is not an “interested person” of the series within the meaning of the Investment Company Act of 1940. |
2 | Trustees and officers of the series serve until their resignation, removal or retirement. |
3 | This includes all directorships (other than those in the American Funds or other funds managed by Capital Research and Management Company) that are held by each trustee as a trustee or director of a public company or a registered investment company. |
4 | “Interested persons” within the meaning of the Investment Company Act of 1940, on the basis of their affiliation with the series’ investment adviser, Capital Research and Management Company, or affiliated entities (including the series’ principal underwriter). |
5 | All of the officers listed, with the exception of S.Keiko McKibben and Renaud H.Samyn, are officers and/or directors/trustees of one or more of the other funds for which Capital Research and Management Company serves as investment adviser. |
6 | Company affiliated with Capital Research and Management Company. |
196 | American Funds Insurance Series |
Offices of the series and of the investment adviser
Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406
6455 Irvine Center Drive
Irvine, CA 92618-4518
Investment sub-adviser
Milliman Financial Risk Management LLC
(Managed Risk Funds only)
71 South Wacker Drive, 31st Floor
Chicago, IL 60606
Custodians of assets
State Street Bank and Trust Company
One Lincoln Street
Boston, MA 02111
Bank of New York Mellon
(Managed Risk Funds only)
One Wall Street
New York, NY 10286
Counsel
Bingham McCutchen LLP
355 South Grand Avenue, Suite 4400
Los Angeles, CA 90071-3106
Independent registered public accounting firm
PricewaterhouseCoopers LLP
601 South Figueroa Street
Los Angeles, CA 90017-3874
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the series prospectuses and summary prospectuses, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the American Funds website at americanfunds.com.
“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on the American Funds website or upon request by calling AFS. The series files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on the American Funds website.
Complete December 31, 2013, 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 N-Q. This filing is available free of charge on the SEC website. You may also review or, for a fee, copy this filing at the SEC’s Public Reference Room in Washington, D.C. Additional information regarding the operation of the Public Reference Room may be obtained by calling the SEC’s Office of Investor Education and Advocacy at (800) SEC-0330. Additionally, the list of portfolio holdings is available by calling AFS.
This report is for the information of American Funds Insurance Series investors, but it also may be used as sales literature when preceded or accompanied by the current prospectuses or summary prospectuses for American Funds Insurance Series and the prospectus for the applicable insurance contract, which give details about charges, expenses, investment objectives and operating policies of the series. If used as sales material after March 31, 2014, this report must be accompanied by a statistical update for the most recently completed calendar quarter.
The American Funds Advantage
Since 1931, American Funds, part of Capital Group, has helped investors pursue long-term investment success. Our consistent approach — in combination with The Capital SystemSM — has resulted in a superior long-term track record for American Funds Insurance Series®.
Aligned with investor success
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 (AFIS) portfolio managers average 25 years of investment experience, including 21 years at our company, reflecting a career commitment to our long-term approach.1
The Capital SystemSM
Our investment process, The Capital System, combines individual accountability with teamwork. Each fund is 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 The Capital System.
Superior long-term track record
Our AFIS equity funds have beaten their comparable Lipper indexes in 89% of 10-year periods and 100% of 20-year periods. Our AFIS fixed-income funds have beaten comparable Lipper indexes in 62% of 10-year periods and 89% of 20-year periods.2 We strive to keep management fees competitive. Over the past 20 years, most funds’ fees have been below industry averages.3
1 | Portfolio manager experience as of November 2013. |
2 | Based on Class 2 share results for rolling periods through December 31, 2013. Periods covered are the shorter of the fund’s lifetime or since the inception date of the comparable Lipper index (except Global Small Capitalization Fund, for which the Lipper average was used). The comparable Lipper indexes are: Global Funds Index (Global Growth Fund), Growth Funds Index (Growth Fund), International Funds Index (International Fund), Emerging Markets Funds Index (New World Fund), Growth & Income Funds Index (Blue Chip Income and Growth Fund, Growth-Income Fund), Flexible Portfolio Funds Index (Asset Allocation Fund), Lipper Core Bond Funds Index (Bond Fund), High Yield Funds Index (High-Income Bond Fund) and Lipper General U.S. Government Funds Index (U.S. Government/AAA-Rated Securities Fund). |
3 | Based on management fees for the 20-year period ended December 31, 2013, versus comparable Lipper categories, excluding funds of funds. |
Lit No. INGEARX-998-0214P Litho in USA RCG/Q/8074-S37067
ITEM 2 – Code of Ethics
The Registrant has adopted a Code of Ethics that applies to its Principal Executive Officer and Principal Financial Officer. The Registrant undertakes to provide to any person without charge, upon request, a copy of the Code of Ethics. Such request can be made to American Funds Service Company at 800/421-9225 or to the Secretary of the Registrant, 333 South Hope Street, Los Angeles, California 90071.
ITEM 3 – Audit Committee Financial Expert
The Registrant’s board has determined that Laurel B. Mitchell, a member of the Registrant’s audit committee, is an “audit committee financial expert” and "independent," as such terms are defined in this Item. This designation will not increase the designee’s duties, obligations or liability as compared to his or her duties, obligations and liability as a member of the audit committee and of the board, nor will it reduce the responsibility of the other audit committee members. There may be other individuals who, through education or experience, would qualify as "audit committee financial experts" if the board had designated them as such. Most importantly, the board believes each member of the audit committee contributes significantly to the effective oversight of the Registrant’s financial statements and condition.
ITEM 4 – Principal Accountant Fees and Services
Registrant: | ||||
a) Audit Fees: | ||||
2012 | $511,000 | |||
2013 | $543,000 | |||
b) Audit-Related Fees: | ||||
2012 | None | |||
2013 | None | |||
c) Tax Fees: | ||||
2012 | $201,000 | |||
2013 | $117,000 | |||
The tax fees consist of professional services relating to the preparation of the Registrant’s tax returns. | ||||
d) All Other Fees: | ||||
2012 | None | |||
2013 | None | |||
Adviser and affiliates (includes only fees for non-audit services billed to the adviser and affiliates for engagements that relate directly to the operations and financial reporting of the Registrant and were subject to the pre-approval policies described below): | ||||
a) Audit Fees: | ||||
Not Applicable | ||||
b) Audit-Related Fees: | ||||
2012 | None | |||
2013 | None | |||
c) Tax Fees: | ||||
2012 | $1,000 | |||
2013 | $31,000 | |||
The tax fees consist of consulting services relating to the Registrant’s investments. | ||||
d) All Other Fees: | ||||
2012 | $4,000 | |||
2013 | $2,000 | |||
The other fees consist of subscription services related to an accounting research tool. |
All audit and permissible non-audit services that the Registrant’s audit committee considers compatible with maintaining the independent registered public accounting firm’s independence are required to be pre-approved by the committee. The pre-approval requirement will extend to all non-audit services provided to the Registrant, the investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant, if the engagement relates directly to the operations and financial reporting of the Registrant. The committee will not delegate its responsibility to pre-approve these services to the investment adviser. The committee may delegate to one or more committee members the authority to review and pre-approve audit and permissible non-audit services. Actions taken under any such delegation will be reported to the full committee at its next meeting. The pre-approval requirement is waived with respect to non-audit services if certain conditions are met. The pre-approval requirement was not waived for any of the non-audit services listed above provided to the Registrant, adviser and affiliates.
Aggregate non-audit fees paid to the Registrant’s auditors, including fees for all services billed to the Registrant, adviser and affiliates that provide ongoing services to the Registrant, were $206,000 for fiscal year 2012 and $150,000 for fiscal year 2013. The non-audit services represented by these amounts were brought to the attention of the committee and considered to be compatible with maintaining the auditors’ independence.
ITEM 5 – Audit Committee of Listed Registrants
Not applicable to this Registrant, insofar as the Registrant is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934.
ITEM 6 – Schedule of Investments
American Funds Insurance Series® Global Growth FundSM Investment portfolio December 31, 2013 |
Common stocks 96.22% | ||
Value | ||
Consumer discretionary 24.74% | Shares | (000) |
Amazon.com, Inc.1 | 584,500 | $ 233,093 |
priceline.com Inc.1 | 104,000 | 120,890 |
Home Depot, Inc. | 1,011,000 | 83,246 |
Toyota Motor Corp. | 1,250,000 | 76,204 |
Industria de Diseño Textil, SA | 438,700 | 72,302 |
Honda Motor Co., Ltd. | 1,753,800 | 72,111 |
Swatch Group Ltd, non-registered shares | 82,550 | 54,552 |
Swatch Group Ltd | 137,000 | 15,419 |
Naspers Ltd., Class N | 654,020 | 68,333 |
Liberty Global PLC, Class A1 | 327,449 | 29,139 |
Liberty Global PLC, Class C1 | 244,508 | 20,617 |
HUGO BOSS AG | 335,500 | 47,770 |
Carnival Corp., units | 1,085,000 | 43,584 |
Walt Disney Co. | 533,705 | 40,775 |
NIKE, Inc., Class B | 446,000 | 35,073 |
Navitas Ltd. | 5,950,000 | 34,161 |
Las Vegas Sands Corp. | 431,001 | 33,993 |
Burberry Group PLC | 1,330,787 | 33,408 |
Publicis Groupe SA | 364,083 | 33,313 |
TOD’S SpA | 194,000 | 32,400 |
Johnson Controls, Inc. | 520,000 | 26,676 |
adidas AG | 186,600 | 23,781 |
ASOS PLC1 | 231,779 | 23,505 |
Nokian Renkaat Oyj | 486,000 | 23,314 |
Comcast Corp., Class A | 317,500 | 16,499 |
Comcast Corp., Class A, special nonvoting shares | 75,000 | 3,741 |
Mr Price Group Ltd. | 1,215,000 | 18,965 |
Hyundai Mobis Co., Ltd. | 65,000 | 18,077 |
CBS Corp., Class B | 275,500 | 17,560 |
Time Warner Inc. | 246,000 | 17,151 |
Carphone Warehouse Group PLC | 3,800,000 | 17,053 |
Arcos Dorados Holdings Inc., Class A | 1,350,000 | 16,362 |
Suzuki Motor Corp. | 600,000 | 16,112 |
Christian Dior SA | 69,000 | 13,038 |
DIRECTV1 | 170,000 | 11,745 |
Kia Motors Corp. | 214,000 | 11,376 |
Multi Screen Media Private Ltd.1,2,3 | 16,148 | 1,336 |
1,456,674 | ||
Information technology 17.02% | ||
ASML Holding NV (New York registered) | 647,176 | 60,640 |
ASML Holding NV | 624,897 | 58,492 |
Google Inc., Class A1 | 95,700 | 107,252 |
Alcatel-Lucent1 | 21,769,144 | 97,570 |
Common stocks | ||
Value | ||
Information technology (continued) | Shares | (000) |
Taiwan Semiconductor Manufacturing Co. Ltd. | 23,380,000 | $ 82,762 |
Taiwan Semiconductor Manufacturing Co. Ltd. (ADR) | 750,000 | 13,080 |
Baidu, Inc., Class A (ADR)1 | 413,000 | 73,464 |
Nintendo Co., Ltd. | 535,000 | 71,174 |
TE Connectivity Ltd. | 897,500 | 49,461 |
OpenTable, Inc.1 | 605,000 | 48,019 |
TDK Corp. | 950,000 | 45,466 |
Visa Inc., Class A | 158,000 | 35,183 |
ARM Holdings PLC | 1,750,000 | 31,848 |
OMRON Corp. | 660,000 | 29,111 |
Amphenol Corp., Class A | 300,000 | 26,754 |
MercadoLibre, Inc. | 180,000 | 19,402 |
ASM International NV | 562,000 | 18,517 |
eBay Inc.1 | 336,000 | 18,443 |
ASM Pacific Technology Ltd. | 2,000,000 | 16,739 |
Avago Technologies Ltd. | 310,000 | 16,396 |
Microsoft Corp. | 390,000 | 14,598 |
VeriSign, Inc.1 | 240,000 | 14,347 |
Infineon Technologies AG | 1,255,000 | 13,398 |
Naver Corp. | 19,000 | 13,035 |
salesforce.com, inc.1 | 225,000 | 12,418 |
Rackspace Hosting, Inc.1 | 200,000 | 7,826 |
Texas Instruments Inc. | 155,000 | 6,806 |
1,002,201 | ||
Health care 14.35% | ||
Novo Nordisk A/S, Class B | 965,200 | 176,923 |
Vertex Pharmaceuticals Inc.1 | 1,093,000 | 81,210 |
UnitedHealth Group Inc. | 960,000 | 72,288 |
Gilead Sciences, Inc.1 | 822,000 | 61,773 |
Merck & Co., Inc. | 1,134,000 | 56,757 |
Regeneron Pharmaceuticals, Inc.1 | 178,300 | 49,075 |
Bayer AG | 349,300 | 48,990 |
Bristol-Myers Squibb Co. | 909,600 | 48,345 |
Hologic, Inc.1 | 2,163,000 | 48,343 |
Novartis AG | 580,000 | 46,293 |
Grifols, SA, Class B (ADR) | 960,250 | 34,684 |
AstraZeneca PLC | 450,000 | 26,637 |
Roche Holding AG | 90,000 | 25,142 |
UCB SA | 309,674 | 23,065 |
Express Scripts Holding Co.1 | 325,000 | 22,828 |
Edwards Lifesciences Corp.1 | 210,000 | 13,810 |
DaVita HealthCare Partners Inc.1 | 144,000 | 9,125 |
845,288 | ||
Financials 14.03% | ||
Moody’s Corp. | 2,114,000 | 165,886 |
AIA Group Ltd. | 13,255,300 | 66,496 |
Prudential PLC | 2,772,434 | 61,519 |
ORIX Corp. | 3,490,000 | 61,210 |
HSBC Holdings PLC | 5,120,228 | 56,164 |
AXA SA | 1,836,463 | 51,059 |
JPMorgan Chase & Co. | 775,000 | 45,322 |
BNP Paribas SA | 500,000 | 38,967 |
Common stocks | ||
Value | ||
Financials (continued) | Shares | (000) |
Bankia, SA1 | 16,920,000 | $ 28,724 |
Goldman Sachs Group, Inc. | 155,000 | 27,475 |
Sumitomo Mitsui Trust Holdings, Inc. | 4,881,000 | 25,677 |
Sumitomo Mitsui Financial Group, Inc. | 462,000 | 23,778 |
ICICI Bank Ltd. | 1,325,000 | 23,536 |
East West Bancorp, Inc. | 630,000 | 22,031 |
CME Group Inc., Class A | 239,700 | 18,807 |
AEON Financial Service Co., Ltd. | 690,000 | 18,477 |
ACE Ltd. | 160,000 | 16,565 |
Bankinter, SA | 2,030,000 | 13,927 |
Tokio Marine Holdings, Inc. | 345,000 | 11,515 |
Housing Development Finance Corp. Ltd. | 850,000 | 10,920 |
Deutsche Bank AG | 218,000 | 10,399 |
Bank of Nova Scotia | 145,190 | 9,080 |
Grupo Financiero Santander México, SAB de CV, Class B (ADR) | 615,000 | 8,389 |
BDO Unibank, Inc. | 3,981,333 | 6,154 |
Allianz SE | 21,750 | 3,900 |
825,977 | ||
Industrials 7.45% | ||
Rolls-Royce Holdings PLC1 | 2,805,000 | 59,223 |
Geberit AG | 150,000 | 45,485 |
KONE Oyj, Class B | 880,000 | 39,708 |
Intertek Group PLC | 755,000 | 39,358 |
United Technologies Corp. | 329,000 | 37,440 |
European Aeronautic Defence and Space Co. EADS NV1 | 451,000 | 34,627 |
IDEX Corp. | 425,700 | 31,438 |
Deere & Co. | 300,000 | 27,399 |
Vallourec SA | 500,000 | 27,239 |
Masco Corp. | 1,000,000 | 22,770 |
Ryanair Holdings PLC (ADR)1 | 382,500 | 17,951 |
Boeing Co. | 115,000 | 15,696 |
Caterpillar Inc. | 160,000 | 14,530 |
Qantas Airways Ltd.1 | 9,279,109 | 9,072 |
Komatsu Ltd. | 425,700 | 8,638 |
Union Pacific Corp. | 47,000 | 7,896 |
438,470 | ||
Consumer staples 5.78% | ||
Associated British Foods PLC | 1,590,000 | 64,376 |
Nestlé SA | 820,000 | 60,026 |
Colgate-Palmolive Co. | 632,000 | 41,213 |
PepsiCo, Inc. | 337,000 | 27,951 |
SABMiller PLC | 500,000 | 25,675 |
ITC Ltd. | 4,629,975 | 24,091 |
Kimberly-Clark Corp. | 215,400 | 22,501 |
Imperial Tobacco Group PLC | 466,000 | 18,042 |
British American Tobacco PLC | 288,000 | 15,442 |
Alimentation Couche-Tard Inc., Class B | 151,000 | 11,355 |
Pernod Ricard SA | 78,739 | 8,970 |
Anheuser-Busch InBev NV | 82,500 | 8,768 |
Shoprite Holdings Ltd. | 555,346 | 8,682 |
Avon Products, Inc. | 195,800 | 3,372 |
340,464 | ||
Value | ||
Materials 4.39% | Shares | (000) |
Steel Dynamics, Inc. | 2,262,332 | $ 44,206 |
First Quantum Minerals Ltd. | 2,300,000 | 41,442 |
Rio Tinto PLC | 660,000 | 37,263 |
Dow Chemical Co. | 765,000 | 33,966 |
Northam Platinum Ltd. | 8,218,484 | 32,906 |
Linde AG | 138,000 | 28,866 |
Glencore Xstrata PLC | 4,000,000 | 20,713 |
FMC Corp. | 252,000 | 19,016 |
258,378 | ||
Telecommunication services 3.36% | ||
SoftBank Corp. | 1,634,000 | 142,748 |
TalkTalk Telecom Group PLC | 5,625,000 | 28,503 |
Vodafone Group PLC | 6,400,000 | 25,118 |
NII Holdings, Inc., Class B1 | 600,000 | 1,650 |
198,019 | ||
Energy 3.25% | ||
Oil Search Ltd. | 6,973,952 | 50,501 |
Canadian Natural Resources, Ltd. | 961,400 | 32,528 |
EOG Resources, Inc. | 110,000 | 18,462 |
Royal Dutch Shell PLC, Class B | 480,000 | 18,123 |
Enbridge Inc. | 392,000 | 17,127 |
Ophir Energy PLC1 | 2,624,720 | 14,248 |
Tourmaline Oil Corp.1 | 300,000 | 12,624 |
Peyto Exploration & Development Corp. | 400,000 | 12,242 |
Petróleo Brasileiro SA — Petrobras, preferred nominative (ADR) | 274,700 | 4,035 |
Petróleo Brasileiro SA — Petrobras, ordinary nominative (ADR) | 133,000 | 1,833 |
Schlumberger Ltd. | 65,000 | 5,857 |
Transocean Ltd. | 75,604 | 3,736 |
191,316 | ||
Utilities 0.48% | ||
ENN Energy Holdings Ltd. | 3,560,000 | 26,329 |
National Grid PLC | 159,000 | 2,075 |
28,404 | ||
Miscellaneous 1.37% | ||
Other common stocks in initial period of acquisition | 80,469 | |
Total common stocks (cost: $3,809,656,000) | 5,665,660 | |
Bonds, notes & other debt instruments 0.56% | ||
Principal amount | ||
U.S. Treasury bonds & notes 0.56% | (000) | |
U.S. Treasury 0.25% 2015 | $ 7,175 | 7,180 |
U.S. Treasury 4.00% 2015 | 24,925 | 25,986 |
Total bonds, notes & other debt instruments (cost: $33,145,000) | 33,166 | |
Principal amount | Value | |
Short-term securities 3.57% | (000) | (000) |
Federal Home Loan Bank 0.06%–0.09% due 2/12–3/21/2014 | $68,100 | $ 68,090 |
Freddie Mac 0.10%–0.14% due 2/20–6/13/2014 | 31,600 | 31,592 |
Fannie Mae 0.09% due 2/24–7/23/2014 | 28,700 | 28,691 |
Walt Disney Co. 0.07% due 2/27/20144 | 18,800 | 18,798 |
International Bank for Reconstruction and Development 0.12% due 3/5–5/16/2014 | 18,800 | 18,795 |
GlaxoSmithKline Finance PLC 0.11% due 1/9/20144 | 16,800 | 16,800 |
Export Development Canada 0.12% due 3/12/2014 | 14,800 | 14,798 |
General Electric Capital Corp. 0.05% due 1/2/2014 | 12,700 | 12,700 |
Total short-term securities (cost: $210,258,000) | 210,264 | |
Total investment securities (cost: $4,053,059,000) | 5,909,090 | |
Other assets less liabilities | (20,918) | |
Net assets | $5,888,172 |
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
1 | Security did not produce income during the last 12 months. |
2 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $1,336,000, which represented .02% of the net assets of the fund. |
3 | Acquired through a private placement transaction exempt from registration under the Securities Act of 1933. This security (acquired from 9/6/2000 to 4/18/2002 at a cost of $6,378,000) may be subject to legal or contractual restrictions on resale. |
4 | Acquired in a transaction exempt from registration under section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $35,598,000, which represented .60% of the net assets of the fund. |
Key to abbreviation
ADR = American Depositary Receipts
Global Small Capitalization FundSM
Investment portfolio
December 31, 2013
Common stocks 90.07% | ||
Value | ||
Consumer discretionary 22.98% | Shares | (000) |
Netflix, Inc.1 | 333,500 | $122,785 |
Lions Gate Entertainment Corp. | 3,001,000 | 95,012 |
Melco Crown Entertainment Ltd. (ADR)1 | 2,182,000 | 85,578 |
Penske Automotive Group, Inc. | 1,205,000 | 56,828 |
Tesla Motors, Inc.1 | 300,000 | 45,114 |
Paddy Power PLC | 438,000 | 37,359 |
Domino’s Pizza, Inc. | 513,000 | 35,730 |
NagaCorp Ltd. | 28,766,000 | 30,308 |
Melco International Development Ltd. | 8,216,000 | 30,197 |
zooplus AG, non-registered shares1,2 | 357,716 | 25,590 |
Entertainment One Ltd.1 | 5,685,300 | 24,403 |
Hankook Tire Co., Ltd.1 | 418,940 | 24,096 |
Minth Group Ltd. | 11,246,000 | 23,350 |
Wendy’s Co. | 2,460,000 | 21,451 |
Home Inns & Hotels Management Inc. (ADR)1 | 475,250 | 20,740 |
Ted Baker PLC | 517,162 | 19,611 |
Group 1 Automotive, Inc. | 269,363 | 19,130 |
John Wiley & Sons, Inc., Class A | 328,500 | 18,133 |
Bloomin’ Brands, Inc.1 | 699,100 | 16,785 |
Chow Sang Sang Holdings International Ltd. | 5,838,300 | 16,639 |
SeaWorld Entertainment, Inc. | 468,300 | 13,473 |
Brinker International, Inc. | 275,000 | 12,744 |
Five Below, Inc.1 | 271,200 | 11,716 |
China Lodging Group, Ltd. (ADR)1 | 379,000 | 11,544 |
Cheil Worldwide Inc.1 | 413,500 | 10,775 |
Inchcape PLC | 959,300 | 9,762 |
Mando Corp. | 76,100 | 9,014 |
Rightmove PLC | 196,000 | 8,893 |
Eros International PLC, Class A1 | 759,296 | 8,436 |
Toll Brothers, Inc.1 | 225,000 | 8,325 |
L’Occitane International SA | 3,875,000 | 8,245 |
Bloomberry Resorts Corp.1 | 41,117,700 | 7,977 |
Daily Mail and General Trust PLC, Class A, nonvoting | 485,000 | 7,714 |
Zhongsheng Group Holdings Ltd. | 5,067,500 | 6,993 |
Stella International Holdings Ltd. | 2,237,000 | 5,700 |
Intercontinental Hotels Group PLC | 161,991 | 5,400 |
CJ Home Shopping Co., Ltd. | 13,700 | 5,387 |
Mothercare PLC1 | 750,000 | 4,881 |
Mood Media Corp.1 | 4,819,000 | 3,765 |
Mood Media Corp. (CDI) (GBP denominated)1 | 1,335,000 | 1,043 |
Parkson Retail Asia Ltd. | 6,212,000 | 4,775 |
CTC Media, Inc. | 298,000 | 4,141 |
American Axle & Manufacturing Holdings, Inc.1 | 202,000 | 4,131 |
TravelCenters of America LLC1 | 400,000 | 3,896 |
Common stocks | ||
Value | ||
Consumer discretionary (continued) | Shares | (000) |
Delticom AG | 83,000 | $ 3,654 |
POLYTEC Holding AG, non-registered shares | 364,350 | 3,403 |
PT Multipolar Tbk | 77,730,000 | 2,299 |
Golden Eagle Retail Group Ltd. | 1,652,000 | 2,182 |
Phorm Corp. Ltd.1 | 10,260,000 | 1,911 |
Talwalkars Better Value Fitness Ltd. | 650,000 | 1,646 |
China Zenix Auto International Ltd. (ADR)1 | 428,500 | 1,114 |
HT Media Ltd. | 633,821 | 799 |
PT Global Mediacom Tbk | 3,025,000 | 472 |
Five Star Travel Corp.1,3,4 | 219,739 | 69 |
Ten Alps PLC1 | 2,600,000 | 32 |
CEC Unet PLC1,4 | 14,911,148 | — |
965,150 | ||
Health care 14.25% | ||
Synageva BioPharma Corp.1 | 1,346,100 | 87,120 |
athenahealth, Inc.1 | 425,798 | 57,270 |
BioMarin Pharmaceutical Inc.1 | 769,800 | 54,094 |
Illumina, Inc.1 | 451,300 | 49,923 |
Paladin Labs Inc.1 | 300,000 | 33,458 |
Algeta ASA1 | 506,000 | 29,933 |
Hikma Pharmaceuticals PLC | 1,491,000 | 29,653 |
Novadaq Technologies Inc.1 | 1,370,700 | 22,603 |
bluebird bio, Inc.1 | 891,700 | 18,708 |
Myriad Genetics, Inc.1 | 860,400 | 18,051 |
Insulet Corp.1 | 462,200 | 17,148 |
Team Health Holdings, Inc.1 | 349,745 | 15,931 |
Genomma Lab Internacional, SAB de CV, Series B1 | 5,400,000 | 15,146 |
GN Store Nord AS | 563,000 | 13,829 |
Endo Health Solutions Inc.1 | 201,600 | 13,600 |
Mauna Kea Technologies SA1,2 | 881,400 | 12,671 |
Orexigen Therapeutics, Inc.1 | 2,040,000 | 11,485 |
Fleury SA, ordinary nominative | 1,238,000 | 9,655 |
ArthroCare Corp.1 | 221,100 | 8,897 |
Exelixis, Inc.1 | 1,400,000 | 8,582 |
JSC Pharmstandard (GDR)1,4 | 706,865 | 7,920 |
NuVasive, Inc.1 | 212,400 | 6,867 |
Fisher & Paykel Healthcare Corp. Ltd. | 2,151,385 | 6,812 |
MD Medical Group Investments PLC (GDR)3 | 470,900 | 5,321 |
MD Medical Group Investments PLC (GDR) | 74,530 | 842 |
Lijun International Pharmaceutical (Holding) Co., Ltd. | 21,150,000 | 5,782 |
Orthofix International NV1 | 252,000 | 5,751 |
Teleflex Inc. | 60,200 | 5,650 |
CONMED Corp. | 110,000 | 4,675 |
Centene Corp.1 | 77,000 | 4,539 |
EOS imaging SA1 | 380,000 | 3,299 |
Hologic, Inc.1 | 140,000 | 3,129 |
Tsumura & Co. | 105,000 | 2,780 |
QRxPharma Ltd.1 | 4,129,927 | 2,747 |
STENTYS SA1 | 126,040 | 1,619 |
Merck Ltd. | 174,609 | 1,585 |
Cadence Pharmaceuticals, Inc.1 | 173,799 | 1,573 |
598,648 | ||
Common stocks | ||
Value | ||
Industrials 11.11% | Shares | (000) |
International Container Terminal Services, Inc. | 34,610,000 | $ 79,541 |
Intertek Group PLC | 1,065,000 | 55,518 |
Moog Inc., Class A1 | 547,100 | 37,170 |
Polypore International, Inc.1 | 672,000 | 26,141 |
JVM Co., Ltd.1,2 | 411,500 | 19,184 |
Northgate PLC | 1,838,270 | 15,616 |
PARK24 Co., Ltd. | 796,600 | 15,000 |
Alliance Global Group, Inc. | 23,370,000 | 13,585 |
ITT Corp. | 295,300 | 12,822 |
Carborundum Universal Ltd. | 5,090,000 | 12,129 |
PT AKR Corporindo Tbk | 32,680,000 | 11,748 |
AirAsia Bhd. | 17,024,600 | 11,435 |
Frigoglass SAIC1 | 1,626,030 | 11,431 |
Cebu Air, Inc. | 10,284,730 | 10,856 |
KEYW Holding Corp.1 | 750,000 | 10,080 |
Loomis AB, Class B | 425,030 | 10,077 |
BELIMO Holding AG | 3,450 | 9,514 |
BTS Rail Mass Transit Growth Infrastructure Fund | 35,979,200 | 9,416 |
Clean Harbors, Inc.1 | 149,000 | 8,934 |
Nok Airlines PCL | 15,277,500 | 8,834 |
Waste Connections, Inc. | 194,600 | 8,490 |
NORMA Group SE, non-registered shares | 154,500 | 7,670 |
Globaltrans Investment PLC (GDR)3 | 270,600 | 4,303 |
Globaltrans Investment PLC (GDR) | 194,400 | 3,091 |
Harsco Corp. | 220,500 | 6,181 |
Blount International, Inc.1 | 425,000 | 6,150 |
Geberit AG | 16,500 | 5,003 |
Mills Estruturas e Serviços de Engenharia SA, ordinary nominative | 326,700 | 4,570 |
Amara Raja Batteries Ltd. | 810,712 | 4,404 |
Pfeiffer Vacuum Technology AG, non-registered shares | 32,000 | 4,355 |
Boer Power Holdings Ltd. | 4,687,000 | 4,304 |
Gujarat Pipavav Port Ltd.1 | 4,050,000 | 4,138 |
J. Kumar Infraprojects Ltd. | 1,300,000 | 3,705 |
Johnson Electric Holdings Ltd. | 3,040,000 | 2,940 |
Shun Tak Holdings Ltd. | 4,714,000 | 2,772 |
National Express Group PLC | 591,000 | 2,693 |
Chart Industries, Inc.1 | 16,900 | 1,616 |
TD Power Systems Ltd. | 343,200 | 1,315 |
466,731 | ||
Information technology 9.37% | ||
AAC Technologies Holdings Inc. | 11,687,100 | 56,745 |
Palo Alto Networks, Inc.1 | 628,200 | 36,103 |
Semiconductor Manufacturing International Corp.1 | 311,975,000 | 24,542 |
OpenTable, Inc.1 | 292,789 | 23,239 |
QIWI PLC, Class B (ADR) | 327,800 | 18,357 |
Cognex Corp. | 390,000 | 14,890 |
Hamamatsu Photonics KK | 371,800 | 14,846 |
Hittite Microwave Corp.1 | 234,900 | 14,500 |
Spectris PLC | 340,000 | 14,419 |
Anritsu Corp. | 1,223,500 | 13,442 |
Itron, Inc.1 | 267,000 | 11,062 |
Kingboard Laminates Holdings Ltd. | 25,653,600 | 10,884 |
Agilysys, Inc.1 | 646,800 | 9,003 |
Common stocks | ||
Value | ||
Information technology (continued) | Shares | (000) |
OBIC Co., Ltd. | 292,300 | $ 8,618 |
Power Integrations, Inc. | 142,900 | 7,977 |
FireEye, Inc.1 | 182,900 | 7,976 |
PChome Online Inc. | 956,702 | 7,672 |
VTech Holdings Ltd. | 570,000 | 7,402 |
Persistent Systems Ltd. | 455,000 | 7,193 |
Halma PLC | 682,500 | 6,821 |
Splunk Inc.1 | 98,700 | 6,778 |
Inphi Corp.1 | 506,100 | 6,529 |
Suprema Inc.1 | 310,000 | 6,227 |
Youku Tudou Inc., Class A (ADR)1 | 200,000 | 6,060 |
Pandora Media, Inc.1 | 225,000 | 5,985 |
Delta Electronics (Thailand) PCL | 3,667,800 | 5,972 |
SciQuest, Inc.1 | 200,000 | 5,696 |
Wacom Co., Ltd. | 690,000 | 4,835 |
Semtech Corp.1 | 191,000 | 4,829 |
Kingdee International Software Group Co. Ltd.1 | 13,570,400 | 4,130 |
Alten SA, non-registered shares | 85,500 | 3,882 |
Immersion Corp.1 | 364,567 | 3,784 |
M/A-COM Technology Solutions Holdings, Inc.1 | 215,000 | 3,653 |
Playtech PLC | 285,000 | 3,478 |
Tangoe, Inc.1 | 186,700 | 3,363 |
Demand Media, Inc.1 | 217,900 | 1,257 |
Remark Media, Inc.1 | 250,952 | 1,169 |
China High Precision Automation Group Ltd.1,4 | 5,500,000 | 71 |
393,389 | ||
Financials 8.75% | ||
Ocwen Financial Corp.1 | 1,094,000 | 60,662 |
SVB Financial Group1 | 257,600 | 27,012 |
Old Republic International Corp. | 1,450,000 | 25,041 |
Kemper Corp. | 595,000 | 24,324 |
K. Wah International Holdings Ltd. | 38,204,793 | 23,156 |
Altisource Residential Corp. | 745,127 | 22,436 |
Banco Espírito Santo, SA1 | 12,778,715 | 18,265 |
Shriram Transport Finance Co. Ltd. | 1,656,974 | 18,018 |
LSL Property Services PLC | 2,375,000 | 17,305 |
Chailease Holding Co Ltd | 6,020,000 | 15,836 |
Altisource Asset Management Corp.1 | 16,398 | 15,250 |
Starwood Property Trust, Inc. | 530,000 | 14,681 |
Altisource Portfolio Solutions SA1 | 67,000 | 10,628 |
Tune Ins Holdings Bhd.1 | 13,112,000 | 7,806 |
ING Vysya Bank Ltd. | 696,454 | 6,896 |
Assured Guaranty Ltd. | 275,000 | 6,487 |
Crédito Real, SAB de CV | 4,193,330 | 6,462 |
TCS Group Holding PLC (GDR)1,3 | 300,700 | 4,721 |
TCS Group Holding PLC (GDR)1 | 83,800 | 1,316 |
Siam Future Development PCL, nonvoting depository receipts | 23,331,547 | 4,012 |
Siam Future Development PCL | 11,573,125 | 1,990 |
Golden Wheel Tiandi Holdings Co. Ltd. | 50,254,000 | 5,833 |
Airesis SA1,2 | 3,294,151 | 5,650 |
Bank of Ireland1 | 14,099,515 | 4,888 |
Leucadia National Corp. | 134,460 | 3,811 |
Mahindra Lifespace Developers Ltd. | 518,356 | 3,322 |
Common stocks | ||
Value | ||
Financials (continued) | Shares | (000) |
Lai Sun Development Co. Ltd.1 | 118,000,000 | $ 3,196 |
Home Loan Servicing Solutions, Ltd. | 87,500 | 2,010 |
Punjab & Sind Bank | 2,425,000 | 1,721 |
GT Capital Holdings, Inc. | 98,000 | 1,705 |
First Southern Bancorp, Inc.1,4,5 | 232,830 | 1,336 |
Bao Viet Holdings | 462,777 | 829 |
PT Agung Podomoro Land Tbk | 40,832,000 | 721 |
367,326 | ||
Materials 5.49% | ||
OM Group, Inc.1 | 735,000 | 26,761 |
AptarGroup, Inc. | 345,500 | 23,428 |
PolyOne Corp. | 660,168 | 23,337 |
Tiangong International Co. Ltd. | 67,956,000 | 19,631 |
Kenmare Resources PLC1 | 54,706,150 | 18,843 |
Yingde Gases Group Co. Ltd. | 16,410,000 | 17,184 |
Synthomer PLC | 3,790,000 | 15,973 |
African Minerals Ltd.1 | 3,987,000 | 13,089 |
FUCHS PETROLUB SE | 123,000 | 10,457 |
CPMC Holdings Ltd. | 12,800,000 | 9,987 |
Arkema SA | 75,000 | 8,748 |
Time Technoplast Ltd.2 | 11,888,000 | 7,428 |
Cheil Industries Inc. | 69,500 | 5,828 |
Sirius Minerals PLC1 | 24,159,510 | 5,601 |
Boral Ltd. | 760,000 | 3,237 |
J.K. Cement Ltd. | 907,767 | 2,835 |
Indochine Mining Ltd.1,2 | 58,574,166 | 2,249 |
Yip’s Chemical Holdings Ltd. | 2,394,000 | 2,065 |
Frutarom Industries Ltd. | 95,624 | 2,011 |
Hummingbird Resources PLC1,2 | 3,475,000 | 1,928 |
Valspar Corp. | 26,800 | 1,911 |
Duluth Metals Ltd.1 | 2,299,700 | 1,689 |
Huntsman Corp. | 68,600 | 1,688 |
Sylvania Platinum Ltd. (CDI)1,2 | 15,000,000 | 1,552 |
China Forestry Holdings Co., Ltd.1,4 | 26,858,000 | 1,212 |
Cape Lambert Resources Ltd.1 | 9,762,351 | 1,133 |
Rusoro Mining Ltd.1 | 25,530,432 | 601 |
Orsu Metals Corp.1 | 588,231 | 30 |
230,436 | ||
Energy 5.45% | ||
Ophir Energy PLC1 | 7,209,562 | 39,135 |
InterOil Corp.1 | 754,235 | 38,836 |
Amerisur Resources PLC1 | 27,117,360 | 26,719 |
Ultra Petroleum Corp.1 | 965,000 | 20,892 |
C&J Energy Services, Inc.1 | 707,000 | 16,332 |
Lekoil Ltd. (CDI)1 | 12,302,000 | 12,732 |
Oasis Petroleum Inc.1 | 224,000 | 10,521 |
Exillon Energy PLC1 | 3,546,000 | 10,100 |
Comstock Resources, Inc. | 521,000 | 9,529 |
Providence Resources PLC1 | 2,490,250 | 9,175 |
Circle Oil PLC1 | 22,687,000 | 7,467 |
Genel Energy PLC1 | 321,600 | 5,725 |
Victoria Oil & Gas PLC1,2 | 278,662,420 | 5,191 |
Common stocks | ||
Value | ||
Energy (continued) | Shares | (000) |
Canadian Overseas Petroleum Ltd.1,2 | 16,670,000 | $ 4,158 |
Tethys Petroleum Ltd.1 | 8,112,100 | 3,437 |
Tethys Petroleum Ltd. (GBP denominated)1 | 763,450 | 348 |
Prosafe SE | 240,000 | 1,852 |
Hunting PLC | 140,000 | 1,808 |
International Petroleum Ltd.1,4 | 54,894,353 | 1,745 |
Borders & Southern Petroleum PLC1 | 7,028,100 | 1,426 |
African Petroleum Corp. Ltd.1 | 13,550,909 | 968 |
Wildhorse Energy Ltd.1,2 | 16,227,016 | 391 |
Wildhorse Energy Ltd. (CDI) (GBP denominated)1,2 | 7,225,777 | 200 |
Esrey Energy Ltd.1 | 825,000 | 78 |
228,765 | ||
Utilities 4.12% | ||
ENN Energy Holdings Ltd. | 18,321,700 | 135,505 |
APR Energy PLC | 869,860 | 13,684 |
Glow Energy PCL | 3,930,000 | 8,432 |
Greenko Group PLC1 | 2,280,000 | 6,428 |
Energy World Corp. Ltd.1 | 10,560,000 | 3,583 |
Ratchaburi Electricity Generating Holding PCL | 2,300,000 | 3,430 |
Mytrah Energy Ltd.1 | 1,700,000 | 2,210 |
173,272 | ||
Consumer staples 3.21% | ||
Puregold Price Club, Inc. | 37,418,000 | 31,953 |
Super Group Ltd. | 5,732,000 | 17,260 |
Hypermarcas SA, ordinary nominative | 1,853,800 | 13,869 |
COSMOS Pharmaceutical Corp. | 124,500 | 13,489 |
Wumart Stores, Inc., Class H | 7,168,000 | 11,647 |
O’Key Group SA (GDR) | 651,000 | 7,747 |
PZ Cussons PLC | 1,101,010 | 6,864 |
Petra Foods Ltd. | 2,630,000 | 6,711 |
Kernel Holding SA1 | 493,041 | 6,213 |
Coca-Cola Icecek AS, Class C | 191,100 | 4,602 |
Sundrug Co., Ltd. | 97,500 | 4,356 |
Bizim Toptan Satis Magazalari AS, non-registered shares | 310,000 | 3,412 |
HITEJINRO CO., LTD. | 162,854 | 3,403 |
Pigeon Corp. | 52,700 | 2,552 |
Godfrey Phillips India Ltd. | 20,484 | 862 |
134,940 | ||
Telecommunication services 0.44% | ||
Telephone and Data Systems, Inc. | 192,830 | 4,971 |
Total Access Communication PCL | 1,602,200 | 4,730 |
tw telecom inc.1 | 125,000 | 3,809 |
Cogent Communications Group, Inc. | 93,700 | 3,786 |
Hutchison Telecommunications Hong Kong Holdings Ltd. | 3,200,000 | 1,213 |
18,509 | ||
Miscellaneous 4.90% | ||
Other common stocks in initial period of acquisition | 206,006 | |
Total common stocks (cost: $2,614,000,000) | 3,783,172 | |
Rights & warrants 0.00% | ||
Value | ||
Miscellaneous 0.00% | (000) | |
Other rights & warrants in initial period of acquisition | $ — | |
Total rights & warrants (cost: $264,000) | — | |
Convertible securities 0.27% | ||
Shares or | ||
Health care 0.20% | principal amount | |
Ultragenyx Pharmaceutical Inc., Series B, convertible preferred1,2,4,5 | 1,904,544 | 8,527 |
Energy 0.05% | ||
Clean Energy Fuels Corp. 5.25% convertible notes 20183 | $1,667,000 | 1,704 |
Financials 0.02% | ||
First Southern Bancorp, Inc., Series C, convertible preferred1,4,5 | 398 | 885 |
Total convertible securities (cost: $6,941,000) | 11,116 | |
Bonds, notes & other debt instruments 0.32% | ||
Principal amount | ||
U.S. Treasury bonds & notes 0.32% | (000) | |
U.S. Treasury 0.25% 2014 | $ 3,000 | 3,002 |
U.S. Treasury 0.25% 2015 | 4,300 | 4,302 |
U.S. Treasury 4.00% 2015 | 5,800 | 6,047 |
Total bonds, notes & other debt instruments (cost: $13,341,000) | 13,351 | |
Short-term securities 9.27% | ||
Federal Home Loan Bank 0.06%–0.115% due 1/22–5/16/2014 | 111,200 | 111,185 |
Freddie Mac 0.10%–0.14% due 5/2–9/17/2014 | 63,800 | 63,756 |
Sumitomo Mitsui Banking Corp. 0.15%–0.165% due 1/8–1/17/20143 | 34,500 | 34,498 |
Wells Fargo & Co. 0.22% due 6/17/2014 | 27,400 | 27,362 |
BNP Paribas Finance Inc. 0.19% due 3/3/2014 | 27,100 | 27,092 |
Gotham Funding Corp. 0.14% due 1/7/20143 | 17,600 | 17,600 |
Victory Receivables Corp. 0.16% due 1/9/20143 | 5,900 | 5,900 |
Bank of Nova Scotia 0.165% due 4/7/2014 | 22,900 | 22,890 |
U.S. Treasury Bill 0.061% due 2/6/2014 | 19,800 | 19,800 |
Fannie Mae 0.15% due 10/27/2014 | 19,400 | 19,376 |
International Bank for Reconstruction and Development 0.12% due 5/16/2014 | 14,700 | 14,695 |
General Electric Capital Corp. 0.05% due 1/2/2014 | 10,200 | 10,200 |
Mizuho Funding LLC 0.225% due 1/15/20143 | 8,700 | 8,699 |
Thunder Bay Funding, LLC 0.20% due 1/27/20143 | 5,000 | 4,999 |
Tennessee Valley Authority 0.05% due 1/2/2014 | 1,500 | 1,500 |
Total short-term securities (cost: $389,556,000) | 389,552 | |
Total investment securities (cost: $3,024,102,000) | 4,197,191 | |
Other assets less liabilities | 3,079 | |
Net assets | $4,200,270 |
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
1 | Security did not produce income during the last 12 months. |
2 | Represents an affiliated company as defined under the Investment Company Act of 1940. |
3 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $87,814,000, which represented 2.09% of the net assets of the fund. |
4 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous,” was $21,765,000, which represented .52% of the net assets of the fund. |
5 | 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. |
Percent | ||||
Cost | Value | of net | ||
Acquisition date | (000) | (000) | assets | |
Ultragenyx Pharmaceutical Inc., Series B, convertible preferred | 12/17/2012 | $ 5,274 | $ 8,527 | .21% |
First Southern Bancorp, Inc | 12/17/2009 | 3,821 | 1,336 | .03 |
First Southern Bancorp, Inc., Series C, convertible preferred | 12/17/2009 | — | 885 | .02 |
Total restricted securities | $9,095 | $10,748 | .26% |
Key to abbreviations
ADR = American Depositary Receipts
CDI = CREST Depository Interest
GDR = Global Depositary Receipts
GBP = British pounds
Growth FundSM
Investment portfolio
December 31, 2013
Common stocks 97.38% | ||
Value | ||
Consumer discretionary 21.60% | Shares | (000) |
Amazon.com, Inc.1 | 2,786,800 | $ 1,111,348 |
Home Depot, Inc. | 8,040,000 | 662,014 |
Comcast Corp., Class A | 6,180,000 | 321,144 |
Wynn Macau, Ltd. | 53,010,200 | 240,293 |
Las Vegas Sands Corp. | 2,848,000 | 224,622 |
NIKE, Inc., Class B | 2,690,000 | 211,542 |
Tiffany & Co. | 2,135,000 | 198,085 |
Johnson Controls, Inc. | 3,549,100 | 182,069 |
Time Warner Inc. | 2,333,333 | 162,680 |
Twenty-First Century Fox, Inc., Class A | 4,548,400 | 160,013 |
Wynn Resorts, Ltd. | 794,540 | 154,308 |
Starbucks Corp. | 1,655,000 | 129,735 |
Marriott International, Inc., Class A | 2,395,123 | 118,223 |
CarMax, Inc.1 | 2,500,000 | 117,550 |
Lowe’s Companies, Inc. | 2,246,000 | 111,289 |
Liberty Media Corp., Class A1 | 753,361 | 110,330 |
Hyatt Hotels Corp., Class A1 | 2,170,000 | 107,328 |
Carnival Corp., units | 1,990,000 | 79,938 |
MGM Resorts International1 | 3,130,000 | 73,618 |
Industria de Diseño Textil, SA | 363,000 | 59,826 |
Expedia, Inc. | 830,000 | 57,818 |
Walt Disney Co. | 750,000 | 57,300 |
L’Occitane International SA | 23,700,000 | 50,430 |
Toyota Motor Corp. | 765,000 | 46,636 |
CBS Corp., Class B | 695,000 | 44,299 |
Netflix, Inc.1 | 115,000 | 42,340 |
Sturm, Ruger & Co., Inc. | 523,300 | 38,248 |
Tesla Motors, Inc.1 | 228,000 | 34,287 |
Swatch Group Ltd, non-registered shares | 47,000 | 31,059 |
Luxottica Group SpA | 564,000 | 30,221 |
Ralph Lauren Corp., Class A | 168,000 | 29,664 |
Time Warner Cable Inc. | 215,000 | 29,132 |
priceline.com Inc.1 | 20,000 | 23,248 |
Ford Motor Co. | 1,400,000 | 21,602 |
Burberry Group PLC | 675,000 | 16,945 |
5,089,184 | ||
Financials 16.24% | ||
Wells Fargo & Co. | 15,478,396 | 702,719 |
American Express Co. | 4,000,000 | 362,920 |
Bank of America Corp. | 20,000,000 | 311,400 |
Berkshire Hathaway Inc., Class A1 | 1,500 | 266,850 |
Citigroup Inc. | 4,444,000 | 231,577 |
JPMorgan Chase & Co. | 3,553,920 | 207,833 |
Common stocks | ||
Value | ||
Financials (continued) | Shares | (000) |
Capital One Financial Corp. | 2,580,000 | $ 197,654 |
Goldman Sachs Group, Inc. | 984,400 | 174,495 |
Onex Corp. | 3,110,500 | 167,933 |
Legal & General Group PLC | 45,158,246 | 166,535 |
American International Group, Inc. | 2,833,300 | 144,640 |
ACE Ltd. | 1,278,000 | 132,311 |
Arch Capital Group Ltd.1 | 1,800,000 | 107,442 |
Morgan Stanley | 3,000,000 | 94,080 |
XL Group PLC | 2,500,000 | 79,600 |
American Tower Corp. | 985,000 | 78,623 |
Leucadia National Corp. | 2,589,740 | 73,393 |
Charles Schwab Corp. | 2,400,000 | 62,400 |
CME Group Inc., Class A | 771,300 | 60,516 |
Sterling Financial Corp.2 | 1,221,592 | 41,632 |
First Republic Bank | 690,000 | 36,122 |
Bond Street Holdings LLC, Class A1,3,4 | 1,625,000 | 31,151 |
W. R. Berkley Corp. | 655,000 | 28,420 |
MB Financial, Inc. | 826,500 | 26,522 |
Legg Mason Partners Equity Fund | 565,000 | 24,566 |
Toronto-Dominion Bank | 155,000 | 14,608 |
3,825,942 | ||
Information technology 15.47% | ||
Google Inc., Class A1 | 731,500 | 819,799 |
ASML Holding NV (New York registered) | 3,371,016 | 315,864 |
ASML Holding NV | 2,190,184 | 205,007 |
salesforce.com, inc.1 | 5,655,000 | 312,099 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 67,583,000 | 239,234 |
Apple Inc. | 400,000 | 224,444 |
Concur Technologies, Inc.1 | 1,700,000 | 175,406 |
Facebook, Inc., Class A1 | 2,844,500 | 155,480 |
Microsoft Corp. | 4,110,000 | 153,837 |
LinkedIn Corp., Class A1 | 635,000 | 137,687 |
Rackspace Hosting, Inc.1 | 3,332,000 | 130,381 |
eBay Inc.1 | 2,007,900 | 110,214 |
MercadoLibre, Inc. | 922,925 | 99,482 |
Avago Technologies Ltd. | 1,810,000 | 95,731 |
International Business Machines Corp. | 450,000 | 84,407 |
Dolby Laboratories, Inc., Class A1 | 2,166,221 | 83,530 |
Nintendo Co., Ltd. | 412,000 | 54,811 |
Amphenol Corp., Class A | 570,000 | 50,833 |
Texas Instruments Inc. | 1,010,000 | 44,349 |
Intuit Inc. | 545,000 | 41,594 |
Hexagon AB, Class B | 1,212,551 | 38,327 |
Broadcom Corp., Class A | 985,000 | 29,205 |
TE Connectivity Ltd. | 470,000 | 25,902 |
Mail.Ru Group Ltd. (GDR)2 | 266,416 | 11,882 |
Mail.Ru Group Ltd. (GDR) | 86,584 | 3,862 |
3,643,367 | ||
Health care 13.31% | ||
Gilead Sciences, Inc.1 | 6,128,800 | 460,579 |
Incyte Corp.1 | 7,672,800 | 388,474 |
Regeneron Pharmaceuticals, Inc.1 | 1,130,600 | 311,186 |
Common stocks | ||
Value | ||
Health care (continued) | Shares | (000) |
UnitedHealth Group Inc. | 3,510,000 | $ 264,303 |
Grifols, SA, Class A, non-registered shares | 4,285,000 | 204,935 |
Grifols, SA, Class B, non-registered shares | 1,215,850 | 43,296 |
Grifols, SA, Class B (ADR) | 195,000 | 7,043 |
Vertex Pharmaceuticals Inc.1 | 3,403,700 | 252,895 |
Edwards Lifesciences Corp.1 | 3,040,400 | 199,937 |
Hologic, Inc.1 | 7,876,400 | 176,038 |
Express Scripts Holding Co.1 | 2,172,500 | 152,596 |
Intuitive Surgical, Inc.1 | 357,800 | 137,424 |
Allergan, Inc. | 895,000 | 99,417 |
Humana Inc. | 947,000 | 97,749 |
Baxter International Inc. | 1,397,119 | 97,170 |
Merck & Co., Inc. | 1,115,000 | 55,806 |
PerkinElmer, Inc. | 1,195,000 | 49,270 |
Pharmacyclics, Inc.1 | 425,000 | 44,956 |
Bristol-Myers Squibb Co. | 634,500 | 33,724 |
Roche Holding AG | 84,900 | 23,717 |
InnovaCare Inc.1,2,3 | 2,843,000 | 14,926 |
Biogen Idec Inc.1 | 52,500 | 14,687 |
Theravance, Inc.1 | 172,646 | 6,155 |
3,136,283 | ||
Energy 9.75% | ||
Suncor Energy Inc. | 7,852,093 | 275,276 |
Core Laboratories NV | 1,185,000 | 226,276 |
Pioneer Natural Resources Co. | 1,130,000 | 207,999 |
Noble Energy, Inc. | 2,960,000 | 201,606 |
Concho Resources Inc.1 | 1,830,000 | 197,640 |
FMC Technologies, Inc.1 | 3,000,000 | 156,630 |
Peyto Exploration & Development Corp. | 4,370,000 | 133,743 |
Oil States International, Inc.1 | 1,095,000 | 111,383 |
Chesapeake Energy Corp. | 3,600,000 | 97,704 |
Murphy Oil Corp. | 1,364,379 | 88,521 |
Royal Dutch Shell PLC, Class B (ADR) | 1,100,000 | 82,621 |
Cobalt International Energy, Inc.1 | 4,990,000 | 82,085 |
Cabot Oil & Gas Corp. | 1,592,700 | 61,733 |
EOG Resources, Inc. | 303,700 | 50,973 |
Enbridge Inc. | 1,080,000 | 47,186 |
Pacific Rubiales Energy Corp. | 2,673,200 | 46,153 |
Paramount Resources Ltd.1 | 1,170,000 | 42,824 |
Africa Oil Corp.1,3,4 | 2,828,200 | 24,024 |
Africa Oil Corp.1 | 732,453 | 6,349 |
Africa Oil Corp. (CAD denominated)1 | 339,600 | 2,951 |
Laricina Energy Ltd.1,3,4 | 1,403,000 | 33,020 |
Oceaneering International, Inc. | 405,000 | 31,946 |
Laredo Petroleum Holdings, Inc.1 | 1,093,300 | 30,273 |
MEG Energy Corp.1 | 720,000 | 20,748 |
Tourmaline Oil Corp.1 | 480,000 | 20,198 |
Canadian Natural Resources, Ltd. | 530,000 | 17,932 |
2,297,794 | ||
Industrials 9.45% | ||
Boeing Co. | 2,305,000 | 314,609 |
Union Pacific Corp. | 1,650,000 | 277,200 |
Oshkosh Corp.5 | 4,947,000 | 249,230 |
Common stocks | ||
Value | ||
Industrials (continued) | Shares | (000) |
Aeronautic Defence and Space Co. EADS NV | 2,750,000 | $ 211,139 |
Rockwell Collins, Inc. | 2,636,900 | 194,920 |
United Continental Holdings, Inc.1 | 2,805,700 | 106,140 |
Meggitt PLC | 11,240,199 | 98,185 |
MTU Aero Engines AG | 917,696 | 90,128 |
Fastenal Co. | 1,850,000 | 87,893 |
Grafton Group PLC, units | 7,866,000 | 84,276 |
Cummins Inc. | 575,000 | 81,058 |
General Electric Co. | 2,500,000 | 70,075 |
Spirit AeroSystems Holdings, Inc., Class A1 | 2,003,600 | 68,283 |
W.W. Grainger, Inc. | 250,000 | 63,855 |
Precision Castparts Corp. | 220,000 | 59,246 |
Caterpillar Inc. | 550,000 | 49,945 |
Iron Mountain Inc. | 1,622,308 | 49,237 |
General Dynamics Corp. | 510,000 | 48,731 |
Graco Inc. | 275,000 | 21,483 |
2,225,633 | ||
Consumer staples 5.45% | ||
Costco Wholesale Corp. | 2,485,000 | 295,740 |
PepsiCo, Inc. | 3,055,000 | 253,382 |
Herbalife Ltd. | 2,000,000 | 157,400 |
Philip Morris International Inc. | 1,780,000 | 155,092 |
Kerry Group PLC, Class A | 2,000,000 | 138,946 |
Nu Skin Enterprises, Inc., Class A | 600,000 | 82,932 |
Estée Lauder Companies Inc., Class A | 870,000 | 65,528 |
Glanbia PLC | 3,314,077 | 51,336 |
Sprouts Farmers Market, Inc.1 | 1,180,000 | 45,347 |
Raia Drogasil SA, ordinary nominative | 4,000,000 | 25,059 |
Avon Products, Inc. | 800,000 | 13,776 |
1,284,538 | ||
Materials 3.96% | ||
FMC Corp. | 1,967,400 | 148,460 |
James Hardie Industries PLC (CDI) | 11,969,998 | 138,303 |
Potash Corp. of Saskatchewan Inc. | 4,000,000 | 131,840 |
Dow Chemical Co. | 2,786,311 | 123,712 |
Smurfit Kappa PLC, Class A | 4,995,346 | 122,736 |
Rio Tinto PLC | 1,220,000 | 68,881 |
Schweitzer-Mauduit International, Inc. | 1,316,000 | 67,734 |
HudBay Minerals Inc. | 5,617,200 | 46,217 |
Sealed Air Corp. | 1,100,000 | 37,455 |
Mosaic Co. | 660,000 | 31,198 |
Cliffs Natural Resources Inc. | 660,000 | 17,299 |
933,835 | ||
Telecommunication services 1.68% | ||
Vodafone Group PLC | 35,070,000 | 137,636 |
CenturyLink, Inc. | 4,160,000 | 132,496 |
Crown Castle International Corp.1 | 1,715,000 | 125,932 |
396,064 | ||
Common stocks | ||
Value | ||
Utilities 0.13% | Shares | (000) |
Exelon Corp. | 1,025,000 | $ 28,075 |
KGen Power Corp.1,3,4,5 | 3,166,128 | 1,741 |
29,816 | ||
Miscellaneous 0.34% | ||
Other common stocks in initial period of acquisition | 78,796 | |
Total common stocks (cost: $12,679,745,000) | 22,941,252 | |
Rights & warrants 0.07% | ||
Energy 0.07% | ||
Kinder Morgan, Inc., warrants, expire 20171 | 4,088,400 | 16,599 |
Total rights & warrants (cost: $17,736,000) | 16,599 | |
Principal amount | ||
Short-term securities 2.75% | (000) | |
Fannie Mae 0.055%–0.13% due 1/2–7/23/2014 | $195,900 | 195,850 |
Freddie Mac 0.11%–0.16% due 1/22–8/19/2014 | 173,710 | 173,621 |
Federal Home Loan Bank 0.055%–0.15% due 1/6–9/8/2014 | 156,900 | 156,868 |
General Electric Capital Corp. 0.05%–0.10% due 1/2–1/14/2014 | 35,300 | 35,299 |
IBM Corp. 0.05% due 1/27/20142 | 29,500 | 29,499 |
Wells Fargo & Co. 0.13% due 2/19/2014 | 24,100 | 24,094 |
Abbott Laboratories 0.11% due 1/3/20142 | 11,300 | 11,300 |
Private Export Funding Corp. 0.22% due 1/6/20142 | 10,100 | 10,100 |
Walt Disney Co. 0.07% due 2/27/20142 | 10,100 | 10,099 |
Total short-term securities (cost: $646,699,000) | 646,730 | |
Total investment securities (cost: $13,344,180,000) | 23,604,581 | |
Other assets less liabilities | (46,382) | |
Net assets | $23,558,199 |
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
1 | Security did not produce income during the last 12 months. |
2 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $129,438,000, which represented .55% 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 was $104,862,000, which represented .45% of the net assets of the fund. |
4 | 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. |
Percent | ||||
Cost | Value | of net | ||
Acquisition date | (000) | (000) | assets | |
Laricina Energy Ltd. | 6/21/2011 | $ 61,323 | $ 33,020 | .14% |
Bond Street Holdings LLC, Class A | 8/16/2010 | 34,125 | 31,151 | .13 |
Africa Oil Corp. | 10/17/2013 | 22,863 | 24,024 | .10 |
KGen Power Corp. | 12/19/2006 | — | 1,741 | .01 |
Total restricted securities | $118,311 | $89,936 | .38% |
5 | Represents an affiliated company as defined under the Investment Company Act of 1940. |
Key to abbreviations
ADR = American Depositary Receipts
CDI = CREST Depository Interest
GDR = Global Depositary Receipts
CAD = Canadian dollars
International FundSM
Investment portfolio
December 31, 2013
Common stocks 95.84% | ||
Value | ||
Financials 18.05% | Shares | (000) |
AIA Group Ltd. | 42,255,700 | $ 211,979 |
Barclays PLC | 40,314,875 | 181,552 |
Axis Bank Ltd. | 6,070,226 | 127,533 |
Sberbank of Russia (ADR) | 8,194,000 | 103,081 |
Sberbank of Russia (GDR)1 | 1,604,711 | 20,187 |
Prudential PLC | 4,688,265 | 104,031 |
BNP Paribas SA | 1,173,501 | 91,455 |
Credit Suisse Group AG | 2,879,624 | 88,030 |
UniCredit SpA | 9,894,336 | 73,231 |
Commerzbank AG, non-registered shares2 | 4,534,872 | 73,054 |
Sun Hung Kai Properties Ltd. | 4,073,339 | 51,663 |
Housing Development Finance Corp. Ltd. | 3,623,000 | 46,545 |
Henderson Land Development Co. Ltd. | 7,905,046 | 45,110 |
Siam Commercial Bank PCL | 8,515,000 | 37,185 |
UBS AG | 1,947,941 | 36,948 |
Mizuho Financial Group, Inc. | 16,538,800 | 35,807 |
Assicurazioni Generali SpA | 1,301,000 | 30,605 |
China Overseas Land & Investment Ltd. | 10,360,000 | 29,126 |
HSBC Holdings PLC (United Kingdom) | 2,522,795 | 27,377 |
China Pacific Insurance (Group) Co., Ltd., Class H | 6,959,800 | 27,285 |
AEON Financial Service Co., Ltd. | 975,000 | 26,109 |
Deutsche Bank AG | 530,295 | 25,296 |
HDFC Bank Ltd. | 2,185,727 | 23,529 |
Cheung Kong (Holdings) Ltd. | 1,450,000 | 22,888 |
Société Générale | 382,375 | 22,209 |
ICICI Bank Ltd. | 1,162,090 | 20,643 |
AXA SA | 683,312 | 18,998 |
Sampo Oyj, Class A | 298,500 | 14,668 |
Link Real Estate Investment Trust | 3,001,732 | 14,555 |
Investor AB, Class B | 407,632 | 14,025 |
Industrial and Commercial Bank of China Ltd., Class H | 19,969,950 | 13,495 |
Svenska Handelsbanken AB, Class A | 230,000 | 11,300 |
Kotak Mahindra Bank Ltd. | 548,916 | 6,463 |
1,675,962 | ||
Consumer discretionary 15.52% | ||
Sands China Ltd. | 21,522,000 | 175,827 |
Volkswagen AG, nonvoting preferred | 430,200 | 120,821 |
Daimler AG | 1,268,000 | 109,722 |
Hyundai Motor Co. | 443,700 | 99,432 |
Galaxy Entertainment Group Ltd.2 | 10,673,000 | 95,728 |
Tata Motors Ltd. | 14,852,259 | 90,379 |
Melco Crown Entertainment Ltd. (ADR)2 | 2,265,000 | 88,833 |
adidas AG | 580,000 | 73,918 |
Common stocks | ||
Value | ||
Consumer discretionary (continued) | Shares | (000) |
Li & Fung Ltd. | 56,396,000 | $ 72,729 |
Techtronic Industries Co. Ltd. | 19,019,000 | 53,959 |
Rakuten, Inc. | 2,375,500 | 35,280 |
Shangri-La Asia Ltd. | 18,078,000 | 35,250 |
Mahindra & Mahindra Ltd. | 2,262,000 | 34,529 |
Cie. Générale des Établissements Michelin | 321,934 | 34,213 |
Nissan Motor Co., Ltd. | 3,980,000 | 33,409 |
Belle International Holdings Ltd. | 27,317,000 | 31,600 |
Renault SA | 376,248 | 30,254 |
Genting Singapore PLC | 24,171,000 | 28,635 |
PT Astra International Tbk | 49,710,000 | 27,776 |
SEGA SAMMY HOLDINGS INC. | 1,020,000 | 25,929 |
H & M Hennes & Mauritz AB, Class B | 545,000 | 25,098 |
Kingfisher PLC | 3,740,000 | 23,825 |
Hyundai Mobis Co., Ltd. | 85,000 | 23,639 |
Bayerische Motoren Werke AG | 189,000 | 22,158 |
Panasonic Corp. | 1,314,500 | 15,278 |
Industria de Diseño Textil, SA | 83,500 | 13,762 |
Kia Motors Corp. | 230,000 | 12,226 |
Multi Screen Media Private Ltd.2,3,4 | 82,217 | 6,802 |
1,441,011 | ||
Health care 13.51% | ||
Novartis AG | 4,943,900 | 394,603 |
Bayer AG | 2,276,323 | 319,260 |
Novo Nordisk A/S, Class B | 896,726 | 164,372 |
Fresenius SE & Co. KGaA | 585,602 | 89,906 |
Merck KGaA | 477,931 | 85,638 |
Teva Pharmaceutical Industries Ltd. (ADR) | 1,290,000 | 51,703 |
UCB SA | 611,000 | 45,508 |
Fresenius Medical Care AG & Co. KGaA | 537,000 | 38,216 |
William Demant Holding A/S2 | 314,709 | 30,585 |
JSC Pharmstandard (GDR)2,3 | 2,001,800 | 22,430 |
JSC Pharmstandard (GDR)1,2,3 | 307,300 | 3,443 |
Sonic Healthcare Ltd. | 635,703 | 9,411 |
1,255,075 | ||
Information technology 13.19% | ||
Samsung Electronics Co. Ltd. | 269,417 | 350,254 |
Baidu, Inc., Class A (ADR)2 | 998,000 | 177,524 |
Murata Manufacturing Co., Ltd. | 1,633,900 | 144,911 |
NetEase, Inc. (ADR) | 1,308,605 | 102,856 |
Tencent Holdings Ltd. | 1,326,500 | 84,609 |
Gemalto NV | 756,453 | 83,263 |
SAP AG | 619,000 | 53,061 |
Nintendo Co., Ltd. | 351,900 | 46,815 |
ASML Holding NV | 475,571 | 44,515 |
Samsung SDI Co., Ltd. | 273,899 | 42,045 |
Delta Electronics, Inc. | 4,217,623 | 24,057 |
Yandex NV, Class A2 | 540,000 | 23,301 |
Infineon Technologies AG | 1,754,000 | 18,725 |
Mail.Ru Group Ltd. (GDR) | 280,000 | 12,488 |
Mail.Ru Group Ltd. (GDR)1 | 120,000 | 5,352 |
Keyence Corp. | 26,400 | 11,281 |
1,225,057 | ||
Value | ||
Industrials 12.67% | Shares | (000) |
SMC Corp. | 634,400 | $ 159,639 |
European Aeronautic Defence and Space Co. EADS NV2 | 1,200,514 | 92,173 |
Legrand SA | 1,591,000 | 87,681 |
Jardine Matheson Holdings Ltd. | 1,360,800 | 71,183 |
Ryanair Holdings PLC (ADR)2 | 1,497,700 | 70,287 |
ASSA ABLOY AB, Class B | 1,328,000 | 70,159 |
Schneider Electric SA | 741,650 | 64,686 |
Bureau Veritas SA | 1,941,096 | 56,732 |
Deutsche Lufthansa AG2 | 2,653,500 | 56,290 |
China State Construction International Holdings Ltd. | 29,600,000 | 53,060 |
VINCI SA | 800,741 | 52,567 |
KONE Oyj, Class B | 1,109,400 | 50,059 |
Babcock International Group PLC | 2,207,000 | 49,521 |
Hutchison Whampoa Ltd. | 3,435,000 | 46,690 |
Marubeni Corp. | 6,275,000 | 45,047 |
Rolls-Royce Holdings PLC2 | 1,503,986 | 31,754 |
Siemens AG | 180,000 | 24,587 |
Komatsu Ltd. | 1,008,000 | 20,455 |
easyJet PLC | 803,559 | 20,439 |
A.P. Møller-Mærsk A/S, Class B | 1,320 | 14,325 |
ITOCHU Corp. | 800,000 | 9,868 |
SGS SA | 3,700 | 8,511 |
China Merchants Holdings (International) Co., Ltd. | 2,311,072 | 8,435 |
Kühne + Nagel International AG | 55,000 | 7,220 |
Fraport AG | 72,781 | 5,446 |
1,176,814 | ||
Consumer staples 6.00% | ||
Nestlé SA | 2,066,700 | 151,287 |
Pernod Ricard SA | 1,079,960 | 123,031 |
Charoen Pokphand Foods PCL | 91,125,000 | 88,740 |
Anheuser-Busch InBev NV | 374,000 | 39,751 |
British American Tobacco PLC | 612,000 | 32,815 |
ITC Ltd. | 6,071,931 | 31,594 |
Danone SA | 437,400 | 31,483 |
SABMiller PLC | 379,600 | 19,493 |
PT Indofood Sukses Makmur Tbk | 24,400,000 | 13,233 |
China Resources Enterprise, Ltd. | 3,660,000 | 12,154 |
Unilever NV, depository receipts | 199,387 | 8,030 |
Treasury Wine Estates Ltd. | 1,341,000 | 5,771 |
557,382 | ||
Telecommunication services 5.67% | ||
SoftBank Corp. | 3,365,100 | 293,979 |
MTN Group Ltd. | 6,015,800 | 124,456 |
Shin Corp. PCL, nonvoting depository receipts | 20,471,000 | 42,207 |
Vodafone Group PLC | 4,946,250 | 19,412 |
Axiata Group Bhd. | 9,130,000 | 19,233 |
OJSC Mobile TeleSystems (ADR) | 818,300 | 17,700 |
PT XL Axiata Tbk | 14,844,000 | 6,342 |
Philippine Long Distance Telephone Co. | 52,960 | 3,181 |
Bayan Telecommunications Holdings Corp., Class A2,3,4 | 43,010 | — |
Bayan Telecommunications Holdings Corp., Class B2,3,4 | 14,199 | — |
526,510 | ||
Common stocks | ||
Value | ||
Materials 4.30% | Shares | (000) |
Syngenta AG | 154,900 | $ 61,679 |
Rio Tinto PLC | 1,062,000 | 59,960 |
Linde AG | 268,600 | 56,184 |
ArcelorMittal | 2,750,000 | 49,068 |
BASF SE | 453,300 | 48,323 |
Grasim Industries Ltd. | 502,785 | 22,066 |
Grasim Industries Ltd. (GDR)3 | 131,304 | 5,762 |
LG Chem, Ltd. | 86,100 | 24,435 |
Givaudan SA | 16,132 | 23,039 |
First Quantum Minerals Ltd. | 1,028,000 | 18,523 |
Amcor Ltd. | 1,400,000 | 13,188 |
CRH PLC | 423,387 | 10,659 |
Akzo Nobel NV | 85,350 | 6,615 |
399,501 | ||
Utilities 2.30% | ||
Power Grid Corp. of India Ltd. | 71,700,440 | 115,801 |
ENN Energy Holdings Ltd. | 6,264,000 | 46,328 |
SSE PLC | 1,021,800 | 23,181 |
GDF SUEZ | 817,015 | 19,214 |
PT Perusahaan Gas Negara (Persero) Tbk | 25,650,000 | 9,432 |
213,956 | ||
Energy 2.29% | ||
Royal Dutch Shell PLC, Class B | 1,730,000 | 65,317 |
BP PLC | 7,709,102 | 62,304 |
BG Group PLC | 1,220,000 | 26,213 |
INPEX CORP. | 1,898,000 | 24,295 |
OJSC Gazprom (ADR) | 2,320,000 | 19,836 |
Eni SpA | 628,000 | 15,110 |
213,075 | ||
Miscellaneous 2.34% | ||
Other common stocks in initial period of acquisition | 217,290 | |
Total common stocks (cost: $6,250,422,000) | 8,901,633 | |
Bonds, notes & other debt instruments 1.02% | ||
Principal amount | ||
U.S. Treasury bonds & notes 1.02% | (000) | |
U.S. Treasury 4.75% 2014 | $65,000 | 66,109 |
U.S. Treasury 0.25% 2015 | 28,200 | 28,219 |
Total bonds, notes & other debt instruments (cost: $94,290,000) | 94,328 | |
Short-term securities 3.19% | ||
Nordea Bank AB 0.175% due 1/3/20141 | 50,000 | 49,999 |
General Electric Capital Corp. 0.05%–0.18% due 1/2–4/2/2014 | 50,000 | 49,994 |
Sumitomo Mitsui Banking Corp. 0.15% due 1/8/20141 | 36,600 | 36,599 |
Gotham Funding Corp. 0.14% due 1/7/20141 | 30,000 | 29,999 |
Abbott Laboratories 0.10%–0.11% due 1/3–3/4/20141 | 29,100 | 29,099 |
International Bank for Reconstruction and Development 0.09% due 3/3/2014 | 22,000 | 21,997 |
Old Line Funding, LLC 0.23% due 1/21/20141 | 21,700 | 21,699 |
Fannie Mae 0.10%–0.12% due 2/24–4/21/2014 | 21,600 | 21,595 |
Federal Home Loan Bank 0.12% due 6/4/2014 | 20,000 | 19,992 |
Toronto-Dominion Holdings USA Inc. 0.175% due 3/21/20141 | 15,000 | 14,997 |
Total short-term securities (cost: $295,952,000) | 295,970 | |
Total investment securities (cost: $6,640,664,000) | 9,291,931 | |
Other assets less liabilities | (4,162) | |
Net assets | $9,287,769 |
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
1 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $211,374,000, which represented 2.28% of the net assets of the fund. |
2 | Security did not produce income during the last 12 months. |
3 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $38,437,000, which represented .41% of the net assets of the fund. |
4 | 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. |
Percent | ||||
Cost | Value | of net | ||
Acquisition dates | (000) | (000) | assets | |
Multi Screen Media Private Ltd. | 9/6/2000–4/18/2002 | $ 32,519 | $ 6,802 | .07% |
Bayan Telecommunications Holdings Corp., Class A | 2/11/1998–8/31/1998 | 104 | — | .00 |
Bayan Telecommunications Holdings Corp., Class B | 2/11/1998–8/31/1998 | 34 | — | .00 |
Total restricted securities | $32,657 | $6,802 | .07% |
Key to abbreviations
ADR = American Depositary Receipts
GDR = Global Depositary Receipts
New World Fund®
Investment portfolio
December 31, 2013
Common stocks 85.54% | ||
Value | ||
Information technology 15.99% | Shares | (000) |
Baidu, Inc., Class A (ADR)1 | 508,200 | $ 90,399 |
Alcatel-Lucent1 | 16,426,961 | 73,627 |
Google Inc., Class A1 | 49,900 | 55,924 |
Mail.Ru Group Ltd. (GDR) | 817,853 | 36,476 |
Mail.Ru Group Ltd. (GDR)2 | 432,264 | 19,279 |
TDK Corp. | 1,057,200 | 50,596 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 5,322,000 | 18,839 |
Taiwan Semiconductor Manufacturing Co. Ltd. (ADR) | 540,000 | 9,418 |
Murata Manufacturing Co., Ltd. | 164,000 | 14,545 |
Hexagon AB, Class B | 316,000 | 9,988 |
ASM Pacific Technology Ltd. | 1,141,800 | 9,556 |
OMRON Corp. | 213,000 | 9,395 |
AAC Technologies Holdings Inc. | 1,917,500 | 9,310 |
Tencent Holdings Ltd. | 128,000 | 8,164 |
STMicroelectronics NV | 710,000 | 5,704 |
SINA Corp.1 | 55,200 | 4,651 |
Broadcom Corp., Class A | 145,000 | 4,299 |
Quanta Computer Inc. | 932,000 | 2,173 |
432,343 | ||
Consumer discretionary 14.03% | ||
Naspers Ltd., Class N | 644,419 | 67,330 |
Ctrip.com International, Ltd. (ADR)1 | 718,500 | 35,652 |
Melco International Development Ltd. | 8,705,000 | 31,994 |
Arcos Dorados Holdings Inc., Class A | 2,561,352 | 31,043 |
Swatch Group Ltd, non-registered shares | 22,450 | 14,836 |
Swatch Group Ltd | 106,600 | 11,998 |
Toyota Motor Corp. | 398,900 | 24,318 |
Domino’s Pizza, Inc. | 338,000 | 23,542 |
Wynn Macau, Ltd. | 3,692,000 | 16,736 |
Zee Entertainment Enterprises Ltd. | 3,570,000 | 15,964 |
L’Occitane International SA | 7,158,250 | 15,232 |
Honda Motor Co., Ltd. | 345,000 | 14,185 |
Mr Price Group Ltd. | 810,420 | 12,650 |
Hyundai Mobis Co., Ltd. | 43,000 | 11,959 |
Truworths International Ltd. | 1,450,000 | 10,610 |
NIKE, Inc., Class B | 117,000 | 9,201 |
Publicis Groupe SA | 88,101 | 8,061 |
Las Vegas Sands Corp. | 84,500 | 6,664 |
Golden Eagle Retail Group Ltd. | 5,000,000 | 6,603 |
Nokian Renkaat Oyj | 120,000 | 5,756 |
Hero MotoCorp Ltd. | 150,000 | 5,033 |
379,367 | ||
Common stocks | ||
Value | ||
Financials 10.35% | Shares | (000) |
AEON Financial Service Co., Ltd. | 1,520,000 | $ 40,703 |
Citigroup Inc. | 560,000 | 29,182 |
Grupo Financiero Santander México, SAB de CV, Class B (ADR) | 2,130,000 | 29,053 |
Banco Espírito Santo, SA1 | 18,671,439 | 26,688 |
Agricultural Bank of China, Class H | 41,743,000 | 20,510 |
Housing Development Finance Corp. Ltd. | 1,353,000 | 17,382 |
Kotak Mahindra Bank Ltd. | 1,373,886 | 16,175 |
Banco Bilbao Vizcaya Argentaria, SA | 1,241,073 | 15,277 |
American Tower Corp. | 190,000 | 15,166 |
ICICI Bank Ltd. | 300,000 | 5,329 |
ICICI Bank Ltd. (ADR) | 110,000 | 4,089 |
Sberbank of Russia (ADR) | 682,500 | 8,579 |
Fibra Uno Administración, SA de CV | 2,637,503 | 8,448 |
BDO Unibank, Inc. | 4,669,333 | 7,217 |
AIA Group Ltd. | 1,391,600 | 6,981 |
FirstRand Ltd. | 1,915,127 | 6,552 |
Metropolitan Bank & Trust Co. | 3,685,500 | 6,274 |
ACE Ltd. | 54,000 | 5,591 |
Prudential PLC | 207,320 | 4,600 |
Bank Pekao SA | 60,000 | 3,565 |
Banco Industrial e Comercial SA, preferred nominative | 512,900 | 1,609 |
MMI Holdings Ltd. | 323,208 | 779 |
Ayala Land, Inc.3 | 15,000,000 | 34 |
China Construction Bank Corp., Class H | 535 | — |
279,783 | ||
Consumer staples 9.14% | ||
OJSC Magnit (GDR) | 517,600 | 34,265 |
OJSC Magnit (GDR)2 | 4,500 | 298 |
LT Group, Inc. | 97,658,300 | 33,974 |
Shoprite Holdings Ltd. | 2,046,603 | 31,996 |
Nestlé SA | 293,696 | 21,499 |
Pernod Ricard SA | 168,900 | 19,241 |
British American Tobacco PLC | 293,000 | 15,711 |
Grupo Nutresa SA | 827,458 | 11,336 |
Asahi Group Holdings, Ltd. | 395,000 | 11,117 |
Kimberly-Clark de México, SAB de CV, Class A | 3,900,000 | 11,076 |
United Breweries Ltd. | 874,904 | 10,943 |
Procter & Gamble Co. | 125,000 | 10,176 |
Unilever NV, depository receipts | 200,000 | 8,055 |
Japan Tobacco Inc. | 208,000 | 6,755 |
ITC Ltd. | 1,000,000 | 5,203 |
PepsiCo, Inc. | 57,000 | 4,728 |
SABMiller PLC | 83,500 | 4,288 |
Coca-Cola Icecek AS, Class C | 100,000 | 2,408 |
Kirin Holdings Co., Ltd. | 150,000 | 2,155 |
Anheuser-Busch InBev NV | 18,100 | 1,924 |
247,148 | ||
Energy 8.86% | ||
Pacific Rubiales Energy Corp. | 2,345,100 | 40,489 |
Africa Oil Corp.1 | 1,765,143 | 15,337 |
Africa Oil Corp.1,4 | 1,502,675 | 13,057 |
Africa Oil Corp.1,3,4 | 210,300 | 1,786 |
Common stocks | ||
Value | ||
Energy (continued) | Shares | (000) |
Royal Dutch Shell PLC, Class B | 600,000 | $ 22,653 |
Royal Dutch Shell PLC, Class B (ADR) | 95,000 | 7,135 |
Ophir Energy PLC1 | 5,008,800 | 27,189 |
Oil Search Ltd. | 3,738,085 | 27,069 |
YPF Sociedad Anónima, Class D (ADR) | 660,000 | 21,754 |
Galp Energia, SGPS, SA, Class B | 1,314,602 | 21,548 |
Cobalt International Energy, Inc.1 | 869,800 | 14,308 |
Petróleo Brasileiro SA — Petrobras, ordinary nominative (ADR) | 818,520 | 11,279 |
Oil and Gas Development Co. Ltd. | 4,000,000 | 10,508 |
Noble Energy, Inc. | 60,000 | 4,087 |
African Petroleum Corp. Ltd.1 | 16,684,827 | 1,192 |
239,391 | ||
Health care 7.64% | ||
Novartis AG | 429,500 | 34,281 |
Novartis AG (ADR) | 134,000 | 10,771 |
Novo Nordisk A/S, Class B | 207,120 | 37,966 |
Krka, dd, Novo mesto | 353,049 | 29,141 |
Baxter International Inc. | 255,000 | 17,735 |
Merck & Co., Inc. | 260,000 | 13,013 |
AstraZeneca PLC | 215,000 | 12,726 |
Cochlear Ltd. | 225,000 | 11,837 |
CSL Ltd. | 180,000 | 11,084 |
Teva Pharmaceutical Industries Ltd. (ADR) | 200,000 | 8,016 |
Grifols, SA, Class A, non-registered shares | 95,700 | 4,577 |
Grifols, SA, Class B, non-registered shares | 46,473 | 1,655 |
PerkinElmer, Inc. | 140,000 | 5,772 |
Hikma Pharmaceuticals PLC | 205,000 | 4,077 |
PT Kalbe Farma Tbk | 36,870,000 | 3,787 |
206,438 | ||
Industrials 7.22% | ||
European Aeronautic Defence and Space Co. EADS NV | 431,929 | 33,163 |
Cummins Inc. | 192,500 | 27,137 |
ASSA ABLOY AB, Class B | 410,886 | 21,707 |
Experian PLC | 1,079,000 | 19,905 |
Mitsui & Co., Ltd. | 1,311,000 | 18,238 |
United Technologies Corp. | 148,000 | 16,842 |
Kansas City Southern | 95,000 | 11,764 |
CIMC Enric Holdings Ltd. | 6,992,000 | 11,271 |
Rolls-Royce Holdings PLC1 | 360,400 | 7,609 |
Intertek Group PLC | 96,200 | 5,015 |
Chart Industries, Inc.1 | 48,500 | 4,639 |
Toshiba Corp. | 1,000,000 | 4,197 |
Schneider Electric SA | 42,668 | 3,721 |
DKSH Holding AG | 44,916 | 3,489 |
Mitsubishi Heavy Industries, Ltd. | 550,000 | 3,400 |
Weichai Power Co., Ltd., Class H | 755,000 | 3,043 |
195,140 | ||
Materials 3.29% | ||
First Quantum Minerals Ltd. | 1,259,300 | 22,691 |
Northam Platinum Ltd. | 2,760,000 | 11,051 |
OJSC ALROSA2 | 8,897,963 | 9,468 |
OJSC ALROSA | 684,273 | 728 |
Common stocks | ||
Value | ||
Materials (continued) | Shares | (000) |
Vedanta Resources PLC | 572,000 | $ 8,842 |
Aquarius Platinum Ltd. (GBP denominated)1 | 8,756,342 | 5,728 |
Aquarius Platinum Ltd.1 | 2,151,226 | 1,460 |
Holcim Ltd | 92,000 | 6,884 |
Linde AG | 29,000 | 6,066 |
Glencore Xstrata PLC | 850,000 | 4,401 |
Impala Platinum Holdings Ltd. | 305,000 | 3,576 |
PT Semen Indonesia (Persero) Tbk | 2,341,000 | 2,722 |
Lonmin PLC1 | 500,000 | 2,554 |
PT Indocement Tunggal Prakarsa Tbk | 1,388,500 | 2,282 |
UltraTech Cement Ltd. | 14,574 | 416 |
88,869 | ||
Telecommunication services 2.99% | ||
SoftBank Corp. | 261,700 | 22,862 |
Vodafone Group PLC | 4,645,253 | 18,231 |
Globe Telecom, Inc. | 411,000 | 15,187 |
MTN Group Ltd. | 444,459 | 9,195 |
Hellenic Telecommunications Organization SA1 | 330,000 | 4,390 |
NII Holdings, Inc., Class B1 | 1,478,500 | 4,066 |
OJSC MegaFon (GDR)2 | 94,300 | 3,159 |
OJSC MegaFon (GDR) | 13,200 | 442 |
Advanced Info Service PCL | 277,500 | 1,685 |
PT XL Axiata Tbk | 3,678,000 | 1,572 |
80,789 | ||
Utilities 1.26% | ||
Cheung Kong Infrastructure Holdings Ltd. | 2,070,000 | 13,067 |
Power Grid Corp. of India Ltd. | 7,459,630 | 12,048 |
ENN Energy Holdings Ltd. | 824,000 | 6,094 |
Infraestructura Energética Nova, SAB de CV | 682,500 | 2,727 |
33,936 | ||
Miscellaneous 4.77% | ||
Other common stocks in initial period of acquisition | 129,023 | |
Total common stocks (cost: $1,802,713,000) | 2,312,227 | |
Bonds, notes & other debt instruments 8.38% | ||
Principal amount | ||
Bonds & notes of governments outside the U.S. 6.67% | (000) | |
Greek Government 2.00%/3.00% 20235 | €1,585 | 1,478 |
Greek Government 2.00%/3.00% 20245 | 1,585 | 1,419 |
Greek Government 2.00%/3.00% 20255 | 1,585 | 1,371 |
Greek Government 2.00%/3.00% 20265 | 1,585 | 1,341 |
Greek Government 2.00%/3.00% 20275 | 1,585 | 1,318 |
Greek Government 2.00%/3.00% 20285 | 1,585 | 1,275 |
Greek Government 2.00%/3.00% 20295 | 1,585 | 1,249 |
Greek Government 2.00%/3.00% 20305 | 1,585 | 1,228 |
Greek Government 2.00%/3.00% 20315 | 1,585 | 1,204 |
Greek Government 2.00%/3.00% 20325 | 1,585 | 1,192 |
Greek Government 2.00%/3.00% 20335 | 1,585 | 1,172 |
Greek Government 2.00%/3.00% 20345 | 1,585 | 1,165 |
Greek Government 2.00%/3.00% 20355 | 1,585 | 1,149 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Bonds & notes of governments outside the U.S. (continued) | (000) | (000) |
Greek Government 2.00%/3.00% 20365 | €1,585 | $1,150 |
Greek Government 2.00%/3.00% 20375 | 1,585 | 1,140 |
Greek Government 2.00%/3.00% 20385 | 1,585 | 1,136 |
Greek Government 2.00%/3.00% 20395 | 1,585 | 1,137 |
Greek Government 2.00%/3.00% 20405 | 1,585 | 1,132 |
Greek Government 2.00%/3.00% 20415 | 1,585 | 1,122 |
Greek Government 2.00%/3.00% 20425 | 1,585 | 1,131 |
United Mexican States Government Global 5.875% 2014 | $550 | 553 |
United Mexican States Government, Series M, 5.00% 2017 | MXN10,000 | 773 |
United Mexican States Government Global, Series A, 5.625% 2017 | $2,000 | 2,240 |
United Mexican States Government, Series M10, 7.75% 2017 | MXN10,000 | 841 |
United Mexican States Government 3.50% 20176 | 10,125 | 837 |
United Mexican States Government 4.00% 20196 | 17,719 | 1,503 |
United Mexican States Government Global, Series A, 5.125% 2020 | $984 | 1,093 |
United Mexican States Government, Series M, 6.50% 2021 | MXN44,400 | 3,506 |
United Mexican States Government Global, Series A, 3.625% 2022 | $1,500 | 1,504 |
United Mexican States Government, Series M20, 10.00% 2024 | MXN28,500 | 2,793 |
United Mexican States Government Global, Series A, 6.05% 2040 | $670 | 732 |
United Mexican States Government 4.00% 20406 | MXN7,088 | 556 |
Philippines (Republic of) 9.875% 2019 | $3,100 | 4,111 |
Philippines (Republic of) 4.95% 2021 | PHP129,000 | 3,088 |
Philippines (Republic of) 6.375% 2022 | 29,500 | 797 |
Philippines (Republic of) 5.50% 2026 | $1,000 | 1,108 |
Philippines (Republic of) 7.75% 2031 | 2,235 | 2,950 |
Philippines (Republic of) 6.25% 2036 | PHP102,000 | 2,448 |
Peru (Republic of) 8.375% 2016 | $1,706 | 1,982 |
Peru (Republic of) 7.84% 2020 | PEN2,105 | 859 |
Peru (Republic of) 7.35% 2025 | $7,265 | 9,190 |
Peru (Republic of) 8.20% 2026 | PEN710 | 299 |
Peru (Republic of) 8.75% 2033 | $864 | 1,233 |
Peru (Republic of) 6.55% 20377 | 782 | 903 |
Russian Federation 3.25% 20172 | 800 | 837 |
Russian Federation 6.20% 2018 | RUB120,950 | 3,600 |
Russian Federation 7.50% 20307 | $4,397 | 5,132 |
Russian Federation 7.50% 20302,7 | 2,435 | 2,843 |
Turkey (Republic of) 7.50% 2017 | 1,500 | 1,680 |
Turkey (Republic of) 4.557% 20182 | 785 | 775 |
Turkey (Republic of) 6.75% 2018 | 1,500 | 1,632 |
Turkey (Republic of) 10.50% 2020 | TRY3,975 | 1,895 |
Turkey (Republic of) 3.00% 20216 | 2,500 | 1,130 |
Turkey (Republic of) 5.625% 2021 | $2,400 | 2,422 |
Turkey (Republic of) 9.50% 2022 | TRY2,200 | 988 |
Turkey (Republic of) 6.875% 2036 | $ 600 | 591 |
Turkey (Republic of) 6.75% 2040 | 500 | 485 |
Turkey (Republic of) 4.875% 2043 | 600 | 462 |
Chilean Government 3.875% 2020 | 3,880 | 4,063 |
Chilean Government 5.50% 2020 | CLP2,080,000 | 4,052 |
Chilean Government 3.00% 20206 | 58,289 | 117 |
Chilean Government 3.25% 2021 | $1,235 | 1,213 |
Chilean Government 3.00% 20226 | CLP58,289 | 118 |
Chilean Government 3.00% 20226 | 46,631 | 96 |
Chilean Government 3.00% 20236 | 69,947 | 143 |
Indonesia (Republic of) 6.875% 2018 | $ 500 | 562 |
Indonesia (Republic of) 5.875% 2020 | 3,100 | 3,292 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Bonds & notes of governments outside the U.S. (continued) | (000) | (000) |
Indonesia (Republic of) 4.875% 20212 | $3,000 | $ 2,985 |
Indonesia (Republic of) 3.75% 2022 | 200 | 182 |
Indonesia (Republic of) 3.375% 20232 | 1,475 | 1,265 |
Indonesia (Republic of) 6.625% 2037 | 750 | 762 |
Indonesia (Republic of) 5.25% 2042 | 535 | 461 |
Hungarian Government 4.125% 2018 | 600 | 602 |
Hungarian Government 6.25% 2020 | 4,325 | 4,687 |
Hungarian Government 6.375% 2021 | 1,550 | 1,670 |
Hungarian Government 5.375% 2023 | 890 | 883 |
Hungarian Government 5.75% 2023 | 450 | 455 |
Hungarian Government 7.625% 2041 | 10 | 11 |
Venezuela (Republic of) 5.75% 2016 | 1,600 | 1,363 |
Venezuela (Republic of) 9.25% 2027 | 6,165 | 4,799 |
Venezuela (Republic of) 9.25% 2028 | 975 | 726 |
Colombia (Republic of) Global 12.00% 2015 | COP 209,000 | 122 |
Colombia (Republic of), Series B, 5.00% 2018 | 5,214,700 | 2,603 |
Colombia (Republic of), Series B, 7.00% 2022 | 1,290,000 | 678 |
Colombia (Republic of) Global 9.85% 2027 | 977,000 | 639 |
Colombia (Republic of), Series B, 6.00% 2028 | 4,720,300 | 2,194 |
Nigeria (Republic of) 5.125% 20182 | $475 | 489 |
Nigeria (Republic of) 16.00% 2019 | NGN160,000 | 1,115 |
Nigeria (Republic of) 6.75% 20212 | $910 | 979 |
Nigeria (Republic of) 16.39% 2022 | NGN430,000 | 3,105 |
Nigeria (Republic of) 6.375% 20232 | $ 235 | 243 |
Croatian Government 6.75% 20192 | 2,200 | 2,393 |
Croatian Government 6.625% 2020 | 880 | 947 |
Croatian Government 6.625% 20202 | 500 | 538 |
Croatian Government 6.375% 20212 | 1,450 | 1,525 |
Croatian Government 5.50% 20232 | 200 | 196 |
South Africa (Republic of), Series R-2023, 7.75% 2023 | ZAR17,300 | 1,636 |
South Africa (Republic of), Series R-213, 7.00% 2031 | 21,850 | 1,740 |
South Africa (Republic of), Series R-214, 6.50% 2041 | 29,705 | 2,091 |
India Treasury Bill 0% 2014 | INR160,000 | 2,586 |
India Treasury Bill 0% 2014 | 160,000 | 2,573 |
Slovenia (Republic of) 4.75% 20182 | $ 610 | 628 |
Slovenia (Republic of) 5.85% 20232 | 3,740 | 3,815 |
Brazil (Federal Republic of) 6.00% 20206 | BRL2,745 | 1,134 |
Brazil (Federal Republic of) 6.00% 20226 | 3,449 | 1,412 |
Brazil (Federal Republic of) 6.00% 20456 | 4,774 | 1,871 |
Polish Government 3.00% 20166 | PLN2,954 | 1,029 |
Polish Government, Series 1021, 5.75% 2021 | 4,200 | 1,531 |
Polish Government 5.00% 2022 | $1,100 | 1,178 |
Panama (Republic of) Global 8.875% 2027 | 300 | 402 |
Panama (Republic of) Global 9.375% 2029 | 1,148 | 1,599 |
Panama (Republic of) Global 6.70% 20367 | 859 | 964 |
Uruguay (Republic of) 5.00% 20186 | UYU12,833 | 647 |
Uruguay (Republic of) 4.375% 20286,7 | 39,103 | 1,881 |
Dominican Republic 9.04% 20187 | $ 393 | 428 |
Dominican Republic 7.50% 20217 | 100 | 110 |
Dominican Republic 8.625% 20272,7 | 1,150 | 1,254 |
Bahrain Government 5.50% 2020 | 1,350 | 1,396 |
Morocco Government 4.25% 20222 | 250 | 232 |
Morocco Government 5.50% 2042 | 1,000 | 842 |
Argentina (Republic of) 0% 2035 | 3,137 | 275 |
180,407 | ||
Bonds, notes & other debt instruments | ||
Corporate bonds & notes 0.98% | Principal amount | Value |
Energy 0.34% | (000) | (000) |
Petróleos Mexicanos 5.50% 2021 | $ 845 | $ 913 |
Petróleos Mexicanos 4.875% 2022 | 1,435 | 1,478 |
Petróleos Mexicanos 3.50% 2023 | 420 | 386 |
Pemex Project Funding Master Trust, Series 13, 6.625% 2035 | 1,800 | 1,903 |
Petróleos Mexicanos 6.50% 2041 | 220 | 231 |
Gazprom OJSC 5.092% 20152 | 1,275 | 1,359 |
Gazprom OJSC 6.51% 20222 | 600 | 647 |
Reliance Holdings Ltd. 4.50% 20202 | 1,020 | 1,008 |
Ras Laffan Liquefied Natural Gas II 5.298% 20202,7 | 497 | 536 |
PTT Exploration & Production Ltd. 5.692% 20212 | 400 | 427 |
Ecopetrol SA 5.875% 2023 | 325 | 344 |
9,232 | ||
Utilities 0.21% | ||
Eskom Holdings Ltd. 5.75% 20212 | 2,985 | 2,985 |
AES Panamá, SA 6.35% 20162 | 1,100 | 1,177 |
CEZ, a s 4.25% 20222 | 945 | 949 |
Enersis SA 7.375% 2014 | 650 | 651 |
5,762 | ||
Financials 0.18% | ||
HSBK (Europe) BV 7.25% 20212 | 1,840 | 1,952 |
BBVA Bancomer SA, junior subordinated 7.25% 20202 | 225 | 244 |
BBVA Bancomer SA 6.50% 20212 | 1,075 | 1,139 |
Bank of India 3.625% 20182 | 700 | 669 |
VEB Finance Ltd. 6.902% 2020 | 600 | 664 |
Banco de Crédito del Perú 5.375% 20202 | 100 | 105 |
4,773 | ||
Materials 0.09% | ||
CEMEX SAB de CV 9.00% 20182 | 1,190 | 1,312 |
CEMEX España, SA 9.25% 20202 | 1,063 | 1,172 |
2,484 | ||
Consumer staples 0.06% | ||
BFF International Ltd. 7.25% 20202 | 1,200 | 1,332 |
Marfrig Overseas Ltd. 9.50% 2020 | 200 | 188 |
1,520 | ||
Industrials 0.05% | ||
Brunswick Rail Finance Ltd. 6.50% 2017 | 850 | 868 |
Brunswick Rail Finance Ltd. 6.50% 20172 | 550 | 561 |
1,429 | ||
Telecommunication services 0.04% | ||
Digicel Group Ltd. 8.25% 20202 | 600 | 625 |
Digicel Group Ltd. 6.00% 20212 | 550 | 532 |
1,157 | ||
Consumer discretionary 0.01% | ||
Grupo Televisa, SAB 7.25% 2043 | MXN2,000 | 125 |
Total corporate bonds & notes | 26,482 | |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
U.S. Treasury bonds & notes 0.73% | (000) | (000) |
U.S. Treasury 4.75% 2014 | $ 1,650 | $ 1,678 |
U.S. Treasury 4.00% 2015 | 17,200 | 17,932 |
19,610 | ||
Total bonds, notes & other debt instruments (cost: $222,089,000) | 226,499 | |
Short-term securities 5.82% | ||
Freddie Mac 0.12%–0.14% due 7/16–9/17/2014 | 33,600 | 33,570 |
Federal Home Loan Bank 0.06% due 1/13–3/21/2014 | 22,900 | 22,897 |
Mizuho Funding LLC 0.205%–0.225% due 1/15–3/3/20142 | 20,200 | 20,195 |
General Electric Capital Corp. 0.05% due 1/2/2014 | 17,600 | 17,600 |
Wells Fargo & Co. 0.22% due 6/17/2014 | 16,000 | 15,978 |
Thunder Bay Funding, LLC 0.20% due 1/27/20142 | 14,400 | 14,398 |
Gotham Funding Corp. 0.16% due 1/14/20142 | 13,000 | 12,999 |
Toronto-Dominion Holdings USA Inc. 0.15% due 1/15/20142 | 11,700 | 11,699 |
Nestlé Capital Corp. 0.10% due 1/7/20142 | 7,200 | 7,200 |
Tennessee Valley Authority 0.05% due 1/2/2014 | 800 | 800 |
Total short-term securities (cost: $157,341,000) | 157,336 | |
Total investment securities (cost: $2,182,143,000) | 2,696,062 | |
Other assets less liabilities | 7,123 | |
Net assets | $2,703,185 |
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
1 | Security did not produce income during the last 12 months. |
2 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $138,423,000, which represented 5.12% 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 was $1,820,000, which represented .07% of the net assets of the fund. |
4 | 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. |
Percent | ||||
Cost | Value | of net | ||
Acquisition date | (000) | (000) | assets | |
Africa Oil Corp. | 12/3/2012 | $ 11,705 | $ 13,057 | .48% |
Africa Oil Corp. | 10/17/2013 | 1,700 | 1,786 | .07 |
Total restricted securities | $13,405 | $14,843 | .55% |
5 | Step bond; coupon rate will increase at a later date. |
6 | Index-linked bond whose principal amount moves with a government price index. |
7 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
Key to abbreviations and symbol | |
ADR = American Depositary Receipts | NGN = Nigerian naira |
GDR = Global Depositary Receipts | PEN = Peruvian nuevos soles |
BRL = Brazilian reais | PHP = Philippine pesos |
CLP = Chilean pesos | PLN = Polish zloty |
COP = Colombian pesos | RUB = Russian rubles |
€ = Euros | TRY = Turkish lira |
INR = Indian rupees | UYU = Uruguayan pesos |
MXN = Mexican pesos | ZAR = South African rand |
Blue Chip Income and Growth FundSM
Investment portfolio
December 31, 2013
Common stocks 95.12% | ||
Value | ||
Health care 19.40% | Shares | (000) |
Amgen Inc. | 2,586,800 | $ 295,309 |
Gilead Sciences, Inc.1 | 3,504,100 | 263,333 |
AbbVie Inc. | 2,234,800 | 118,020 |
Aetna Inc. | 1,635,000 | 112,145 |
Zimmer Holdings, Inc. | 750,000 | 69,892 |
St. Jude Medical, Inc. | 1,060,000 | 65,667 |
Bristol-Myers Squibb Co. | 1,125,000 | 59,794 |
Humana Inc. | 550,000 | 56,771 |
Novartis AG (ADR) | 650,500 | 52,287 |
UnitedHealth Group Inc. | 685,000 | 51,581 |
Abbott Laboratories | 850,000 | 32,580 |
Cardinal Health, Inc. | 400,000 | 26,724 |
Medtronic, Inc. | 450,000 | 25,825 |
Merck & Co., Inc. | 500,000 | 25,025 |
Boston Scientific Corp.1 | 1,633,832 | 19,639 |
1,274,592 | ||
Information technology 15.80% | ||
Hewlett-Packard Co. | 7,608,440 | 212,884 |
Oracle Corp. | 4,982,381 | 190,626 |
Western Union Co. | 7,725,000 | 133,256 |
Apple Inc. | 227,500 | 127,653 |
Microsoft Corp. | 3,200,000 | 119,776 |
Texas Instruments Inc. | 2,130,000 | 93,528 |
Google Inc., Class A1 | 57,760 | 64,732 |
International Business Machines Corp. | 330,000 | 61,898 |
Intel Corp. | 1,200,000 | 31,152 |
Maxim Integrated Products, Inc. | 87,585 | 2,445 |
1,037,950 | ||
Industrials 12.74% | ||
General Dynamics Corp. | 1,130,000 | 107,971 |
CSX Corp. | 3,200,000 | 92,064 |
United Parcel Service, Inc., Class B | 850,000 | 89,318 |
Union Pacific Corp. | 375,000 | 63,000 |
United Technologies Corp. | 500,000 | 56,900 |
Norfolk Southern Corp. | 592,800 | 55,030 |
Illinois Tool Works Inc. | 650,000 | 54,652 |
Rockwell Automation | 450,000 | 53,172 |
Textron Inc. | 1,365,000 | 50,178 |
Cummins Inc. | 338,100 | 47,662 |
Eaton Corp. PLC | 600,000 | 45,672 |
General Electric Co. | 1,300,000 | 36,439 |
PACCAR Inc | 500,000 | 29,585 |
Emerson Electric Co. | 400,000 | 28,072 |
Waste Management, Inc. | 600,000 | 26,922 |
836,637 | ||
Common stocks | ||
Value | ||
Consumer staples 10.83% | Shares | (000) |
Philip Morris International Inc. | 2,062,400 | $ 179,697 |
Altria Group, Inc. | 4,155,000 | 159,511 |
CVS/Caremark Corp. | 1,650,000 | 118,090 |
Mondelez International, Inc. | 1,580,000 | 55,774 |
Kimberly-Clark Corp. | 500,000 | 52,230 |
ConAgra Foods, Inc. | 1,200,000 | 40,440 |
Kraft Foods Group, Inc. | 676,666 | 36,486 |
Kellogg Co. | 592,000 | 36,153 |
PepsiCo, Inc. | 400,000 | 33,176 |
711,557 | ||
Telecommunication services 9.97% | ||
Verizon Communications Inc. | 4,625,000 | 227,272 |
Vodafone Group PLC (ADR) | 4,945,000 | 194,388 |
CenturyLink, Inc. | 5,107,000 | 162,658 |
AT&T Inc. | 2,000,000 | 70,320 |
654,638 | ||
Consumer discretionary 6.75% | ||
Johnson Controls, Inc. | 3,345,000 | 171,598 |
General Motors Co.1 | 2,000,000 | 81,740 |
YUM! Brands, Inc. | 742,300 | 56,125 |
Las Vegas Sands Corp. | 584,000 | 46,060 |
Wynn Resorts, Ltd. | 209,000 | 40,590 |
Royal Caribbean Cruises Ltd. | 500,000 | 23,710 |
Harley-Davidson, Inc. | 340,000 | 23,542 |
443,365 | ||
Energy 5.60% | ||
Royal Dutch Shell PLC, Class B (ADR) | 1,150,000 | 86,376 |
Exxon Mobil Corp. | 756,300 | 76,538 |
Chevron Corp. | 570,000 | 71,199 |
ConocoPhillips | 1,000,000 | 70,650 |
Kinder Morgan, Inc. | 1,000,000 | 36,000 |
Baker Hughes Inc. | 500,000 | 27,630 |
368,393 | ||
Utilities 5.49% | ||
Exelon Corp. | 4,494,680 | 123,109 |
FirstEnergy Corp. | 2,979,200 | 98,254 |
PG&E Corp. | 2,413,000 | 97,196 |
Southern Co. | 750,000 | 30,833 |
Xcel Energy Inc. | 250,000 | 6,985 |
NextEra Energy, Inc. | 50,000 | 4,281 |
360,658 | ||
Financials 4.85% | ||
Capital One Financial Corp. | 1,450,000 | 111,084 |
Prudential Financial, Inc. | 789,000 | 72,762 |
JPMorgan Chase & Co. | 1,190,000 | 69,591 |
HSBC Holdings PLC (ADR) | 618,749 | 34,112 |
Goldman Sachs Group, Inc. | 175,000 | 31,020 |
318,569 | ||
Common stocks | ||
Value | ||
Materials 2.25% | Shares | (000) |
Dow Chemical Co. | 1,700,000 | $ 75,480 |
Praxair, Inc. | 363,777 | 47,302 |
Celanese Corp., Series A | 350,000 | 19,358 |
International Flavors & Fragrances Inc. | 65,000 | 5,589 |
147,729 | ||
Miscellaneous 1.44% | ||
Other common stocks in initial period of acquisition | 94,118 | |
Total common stocks (cost: $4,365,827,000) | 6,248,206 | |
Principal amount | ||
Short-term securities 5.33% | (000) | |
Federal Home Loan Bank 0.05%–0.16% due 1/24–2/21/2014 | $94,950 | 94,938 |
Fannie Mae 0.13% due 7/23/2014 | 50,000 | 49,967 |
IBM Corp. 0.05% due 1/27/20142 | 36,000 | 35,999 |
Coca-Cola Co. 0.11% due 3/24/20142 | 28,300 | 28,293 |
General Electric Capital Corp. 0.05%–0.15% due 1/2–3/12/2014 | 27,900 | 27,897 |
Freddie Mac 0.13% due 5/1/2014 | 21,180 | 21,174 |
U.S. Treasury Bill 0.07% due 3/27/2014 | 19,800 | 19,797 |
Parker-Hannifin Corp. 0.08%–0.09% due 1/17–1/22/142 | 19,000 | 18,998 |
Wells Fargo & Co. 0.13% due 2/19/2014 | 14,800 | 14,796 |
Federal Farm Credit Banks 0.10% due 1/10/2014 | 10,300 | 10,300 |
Wal-Mart Stores, Inc. 0.05% due 1/6/20142 | 10,000 | 10,000 |
National Rural Utilities Cooperative Finance Corp. 0.09% due 1/7/2014 | 10,000 | 10,000 |
Jupiter Securitization Co., LLC 0.32% due 2/7/20142 | 8,200 | 8,198 |
Total short-term securities (cost: $350,341,000) | 350,357 | |
Total investment securities (cost: $4,716,168,000) | 6,598,563 | |
Other assets less liabilities | (29,467) | |
Net assets | $6,569,096 |
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
1 | Security did not produce income during the last 12 months. |
2 | Acquired in a transaction exempt from registration under section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $101,488,000, which represented 1.54% of the net assets of the fund. |
Key to abbreviation
ADR = American Depositary Receipts
Global Growth and Income FundSM
Investment portfolio
December 31, 2013
Common stocks 94.95% | ||
Value | ||
Financials 21.63% | Shares | (000) |
AXA SA | 1,949,200 | $ 54,193 |
CME Group Inc., Class A | 546,847 | 42,906 |
Banco Santander, SA1 | 3,175,000 | 28,417 |
JPMorgan Chase & Co. | 408,200 | 23,872 |
Hospitality Properties Trust | 815,000 | 22,030 |
McGraw Hill Financial, Inc. | 280,500 | 21,935 |
Wells Fargo & Co. | 445,000 | 20,203 |
Shinsei Bank, Ltd. | 8,060,000 | 19,670 |
Oaktree Capital Group, LLC | 285,000 | 16,769 |
KeyCorp | 1,205,000 | 16,171 |
BNP Paribas SA | 194,031 | 15,122 |
Marsh & McLennan Companies, Inc. | 300,000 | 14,508 |
Sumitomo Mitsui Financial Group, Inc. | 280,000 | 14,411 |
Grupo Financiero Santander México, SAB de CV, Class B (ADR) | 1,025,000 | 13,981 |
American Express Co. | 115,000 | 10,434 |
Goldman Sachs Group, Inc. | 55,200 | 9,785 |
Prudential PLC | 400,000 | 8,876 |
W. R. Berkley Corp. | 200,000 | 8,678 |
Mapletree Greater China Commercial Trust | 12,985,000 | 8,643 |
Suncorp Group Ltd. | 680,191 | 7,956 |
ORIX Corp. | 450,000 | 7,892 |
Sun Hung Kai Properties Ltd. | 612,852 | 7,773 |
Fairfax Financial Holdings Ltd. | 19,000 | 7,586 |
Metropolitan Bank & Trust Company. | 4,200,000 | 7,149 |
HSBC Holdings PLC | 600,000 | 6,581 |
Equity Residential, shares of beneficial interest | 115,000 | 5,965 |
Tokyo Tatemono Co., Ltd. | 450,000 | 4,991 |
ICICI Bank Ltd. (ADR) | 115,000 | 4,275 |
Deutsche Bank AG | 87,000 | 4,150 |
Macquarie International Infrastructure Fund Ltd. | 36,200,164 | 3,184 |
First Southern Bancorp, Inc.1,2,3 | 122,265 | 702 |
438,808 | ||
Consumer discretionary 15.24% | ||
Home Depot, Inc. | 525,000 | 43,228 |
Honda Motor Co., Ltd. | 710,000 | 29,193 |
Amazon.com, Inc.1 | 57,400 | 22,891 |
D.R. Horton, Inc. | 1,000,000 | 22,320 |
HUGO BOSS AG | 150,000 | 21,358 |
Comcast Corp., Class A | 384,000 | 19,955 |
Carnival Corp., units | 475,000 | 19,081 |
Twenty-First Century Fox, Inc., Class A | 485,000 | 17,062 |
Time Warner Inc. | 200,000 | 13,944 |
Coway Co., Ltd. | 200,000 | 12,584 |
Carnival PLC | 275,000 | 11,389 |
Common stocks | ||
Value | ||
Consumer discretionary (continued) | Shares | (000) |
adidas AG | 82,700 | $ 10,540 |
ProSiebenSat.1 Media AG | 200,000 | 9,905 |
Toyota Motor Corp. | 156,000 | 9,510 |
Toll Brothers, Inc.1 | 250,000 | 9,250 |
Don Quijote Holdings Co., Ltd. | 140,000 | 8,468 |
Zee Entertainment Enterprises Ltd. | 1,620,000 | 7,244 |
Las Vegas Sands Corp. | 90,812 | 7,162 |
Liberty Global PLC, Class A1 | 41,312 | 3,676 |
Liberty Global PLC, Class C1 | 30,848 | 2,601 |
SES SA, Class A (FDR) | 150,000 | 4,856 |
Wynn Resorts, Ltd. | 15,000 | 2,913 |
309,130 | ||
Industrials 11.36% | ||
United Continental Holdings, Inc.1 | 900,000 | 34,047 |
Lockheed Martin Corp. | 200,000 | 29,732 |
Meggitt PLC | 3,156,892 | 27,576 |
European Aeronautic Defence and Space Co. EADS NV | 274,000 | 21,037 |
Geberit AG | 60,000 | 18,194 |
United Technologies Corp. | 115,000 | 13,087 |
Rickmers Maritime4 | 54,840,000 | 12,385 |
Delta Air Lines, Inc. | 450,000 | 12,361 |
ASSA ABLOY AB, Class B | 228,000 | 12,045 |
Japan Airport Terminal Co. Ltd. | 411,900 | 9,301 |
Iron Mountain Inc. | 268,595 | 8,152 |
Abertis Infraestructuras, SA, Class A | 315,000 | 6,999 |
Vallourec SA | 125,000 | 6,810 |
Ryanair Holdings PLC (ADR)1 | 145,000 | 6,805 |
Kubota Corp. | 390,000 | 6,440 |
Caterpillar Inc. | 60,000 | 5,449 |
230,420 | ||
Information technology 10.46% | ||
Taiwan Semiconductor Manufacturing Co. Ltd. | 13,710,800 | 48,534 |
STMicroelectronics NV | 4,370,000 | 35,109 |
Google Inc., Class A1 | 28,000 | 31,380 |
Microsoft Corp. | 485,000 | 18,154 |
ASM Pacific Technology Ltd. | 1,477,000 | 12,362 |
Avago Technologies Ltd. | 222,000 | 11,742 |
Alcatel-Lucent1 | 2,450,000 | 10,981 |
TE Connectivity Ltd. | 175,000 | 9,644 |
International Business Machines Corp. | 50,000 | 9,378 |
Nintendo Co., Ltd. | 60,000 | 7,982 |
salesforce.com, inc.1 | 136,000 | 7,506 |
Quanta Computer Inc. | 2,149,910 | 5,013 |
Halma PLC | 450,000 | 4,497 |
212,282 | ||
Health care 8.18% | ||
Merck & Co., Inc. | 1,489,944 | 74,572 |
Novartis AG | 303,000 | 24,184 |
Vertex Pharmaceuticals Inc.1 | 238,877 | 17,749 |
Eli Lilly and Co. | 200,000 | 10,200 |
AstraZeneca PLC | 170,000 | 10,063 |
Common stocks | ||
Value | ||
Health care (continued) | Shares | (000) |
Takeda Pharmaceutical Co. Ltd. | 200,000 | $ 9,163 |
Novo Nordisk A/S, Class B | 39,500 | 7,240 |
UnitedHealth Group Inc. | 95,000 | 7,153 |
Pfizer Inc. | 182,000 | 5,575 |
165,899 | ||
Telecommunication services 6.20% | ||
Vodafone Group PLC | 14,845,000 | 58,261 |
MTN Group Ltd. | 1,100,000 | 22,757 |
TalkTalk Telecom Group PLC | 3,920,000 | 19,863 |
AT&T Inc. | 525,000 | 18,459 |
Globe Telecom, Inc. | 175,695 | 6,492 |
125,832 | ||
Consumer staples 6.00% | ||
Imperial Tobacco Group PLC | 450,000 | 17,422 |
British American Tobacco PLC | 318,500 | 17,078 |
Associated British Foods PLC | 340,000 | 13,766 |
PepsiCo, Inc. | 145,000 | 12,026 |
Alimentation Couche-Tard Inc., Class B | 155,000 | 11,656 |
Kimberly-Clark Corp. | 99,000 | 10,342 |
Kraft Foods Group, Inc. | 183,333 | 9,885 |
Unilever NV, depository receipts | 200,000 | 8,055 |
Philip Morris International Inc. | 75,000 | 6,535 |
Nestlé SA | 79,700 | 5,834 |
Seven & i Holdings Co., Ltd. | 120,000 | 4,763 |
Avon Products, Inc. | 190,000 | 3,272 |
Coca-Cola HBC AG (CDI) | 39,411 | 1,150 |
121,784 | ||
Materials 5.52% | ||
Dow Chemical Co. | 445,000 | 19,758 |
Cliffs Natural Resources Inc. | 681,200 | 17,854 |
OJSC ALROSA5 | 13,328,596 | 14,183 |
OJSC ALROSA | 2,626,404 | 2,795 |
Nucor Corp. | 270,000 | 14,413 |
Potash Corp. of Saskatchewan Inc. | 373,000 | 12,294 |
BASF SE | 86,000 | 9,168 |
Impala Platinum Holdings Ltd. | 685,648 | 8,040 |
Rio Tinto PLC | 113,000 | 6,380 |
Fletcher Building Ltd. | 550,000 | 3,849 |
E.I. du Pont de Nemours and Co. | 50,000 | 3,248 |
111,982 | ||
Utilities 5.27% | ||
National Grid PLC | 3,035,225 | 39,606 |
EDP — Energias de Portugal, SA | 4,220,000 | 15,501 |
Exelon Corp. | 500,000 | 13,695 |
NRG Yield, Inc., Class A | 337,800 | 13,515 |
Power Assets Holdings Ltd. | 1,232,000 | 9,795 |
ENN Energy Holdings Ltd. | 1,200,000 | 8,875 |
PG&E Corp. | 90,500 | 3,645 |
GDF SUEZ | 96,842 | 2,278 |
106,910 | ||
Common stocks | ||
Value | ||
Energy 4.24% | Shares | (000) |
Kinder Morgan, Inc. | 576,000 | $ 20,736 |
Peyto Exploration & Development Corp. | 415,000 | 12,701 |
Crescent Point Energy Corp. | 291,000 | 11,300 |
Royal Dutch Shell PLC, Class A (ADR) | 130,000 | 9,265 |
Chevron Corp. | 62,300 | 7,782 |
Coal India Ltd. | 1,500,000 | 7,032 |
Enbridge Inc. | 153,298 | 6,698 |
Oil Search Ltd. | 762,137 | 5,519 |
Transocean Ltd. | 100,000 | 4,942 |
85,975 | ||
Miscellaneous 0.85% | ||
Other common stocks in initial period of acquisition | 17,334 | |
Total common stocks (cost: $1,475,844,000) | 1,926,356 | |
Convertible securities 0.58% | ||
Shares or | ||
Materials 0.49% | principal amount | |
Alcoa Inc. 5.25% convertible notes 2014 | $6,000,000 | 9,949 |
Consumer discretionary 0.07% | ||
MGM Resorts International 4.25% convertible notes 2015 | $939,000 | 1,293 |
Financials 0.02% | ||
First Southern Bancorp, Inc., Series C, convertible preferred1,2,3 | 209 | 465 |
Total convertible securities (cost: $6,887,000) | 11,707 | |
Bonds, notes & other debt instruments 0.49% | ||
Corporate bonds & notes 0.45% | Principal amount | |
Consumer discretionary 0.29% | (000) | |
Royal Caribbean Cruises Ltd. 11.875% 2015 | $5,100 | 5,929 |
Telecommunication services 0.12% | ||
NII Capital Corp. 8.875% 2019 | 575 | 250 |
NII Capital Corp. 11.375% 20195 | 800 | 672 |
NII Capital Corp. 7.625% 2021 | 3,625 | 1,513 |
2,435 | ||
Financials 0.04% | ||
Zions Bancorporation 5.50% 2015 | 616 | 651 |
Zions Bancorporation 6.00% 2015 | 164 | 173 |
824 | ||
Total corporate bonds & notes | 9,188 | |
U.S. Treasury bonds & notes 0.04% | ||
U.S. Treasury 0.25% 2015 | 800 | 801 |
Total bonds, notes & other debt instruments (cost: $10,540,000) | 9,989 | |
Principal amount | Value | |
Short-term securities 3.30% | (000) | (000) |
Federal Home Loan Bank 0.04%–0.055% due 1/3–2/24/2014 | $27,000 | $ 26,998 |
Gotham Funding Corp. 0.14% due 1/13/20145 | 15,000 | 14,999 |
Bank of Tokyo-Mitsubishi UFJ, Ltd. 0.14% due 1/7/2014 | 11,100 | 11,100 |
General Electric Capital Corp. 0.05% due 1/2/2014 | 13,900 | 13,900 |
Total short-term securities (cost: $66,997,000) | 66,997 | |
Total investment securities (cost: $1,560,268,000) | 2,015,049 | |
Other assets less liabilities | 13,673 | |
Net assets | $2,028,722 |
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
1 | Security did not produce income during the last 12 months. |
2 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $1,167,000, which represented .06% of the net assets of the fund. |
3 | Acquired through a private placement transaction exempt from registration under the Securities Act of 1933. May be subject to legal or contractual restrictions on resale. Further details on these holdings appear below. |
Percent | ||||
Cost | Value | of net | ||
Acquisition date | (000) | (000) | assets | |
First Southern Bancorp, Inc. | 12/17/2009 | $ 2,006 | $ 702 | .04% |
First Southern Bancorp, Inc., Series C, convertible preferred | 12/17/2009 | — | 465 | .02 |
Total restricted securities | $2,006 | $1,167 | .06% |
4 | Represents an affiliated company as defined under the Investment Company Act of 1940. |
5 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $29,854,000, which represented 1.47% of the net assets of the fund. |
Key to abbreviations
ADR = American Depositary Receipts
CDI = CREST Depository Interest
FDR = Fiduciary Depositary Receipts
Growth-Income FundSM
Investment portfolio
December 31, 2013
Common stocks 93.06% | ||
Value | ||
Health care 17.09% | Shares | (000) |
Gilead Sciences, Inc.1 | 12,349,500 | $ 928,065 |
Amgen Inc. | 4,623,700 | 527,842 |
Illumina, Inc.1 | 2,250,000 | 248,895 |
Biogen Idec Inc.1 | 761,000 | 212,890 |
Alexion Pharmaceuticals, Inc.1 | 1,590,000 | 211,565 |
Merck & Co., Inc. | 3,981,080 | 199,253 |
Edwards Lifesciences Corp.1 | 2,793,900 | 183,727 |
UnitedHealth Group Inc. | 2,350,000 | 176,955 |
Humana Inc. | 1,268,000 | 130,883 |
Hologic, Inc.1 | 5,661,300 | 126,530 |
Stryker Corp. | 1,670,011 | 125,485 |
Thermo Fisher Scientific Inc. | 1,086,000 | 120,926 |
Cardinal Health, Inc. | 1,800,000 | 120,258 |
Endo Health Solutions Inc.1 | 1,671,000 | 112,726 |
AbbVie Inc. | 2,000,000 | 105,620 |
Express Scripts Holding Co.1 | 1,372,500 | 96,404 |
Quest Diagnostics Inc. | 1,525,000 | 81,649 |
BioMarin Pharmaceutical Inc.1 | 1,146,000 | 80,529 |
Pfizer Inc. | 2,468,851 | 75,621 |
Aetna Inc. | 1,002,000 | 68,727 |
GlaxoSmithKline PLC | 2,350,000 | 62,711 |
Zimmer Holdings, Inc. | 665,000 | 61,971 |
Abbott Laboratories | 1,300,000 | 49,829 |
Bayer AG | 350,000 | 49,088 |
athenahealth, Inc.1 | 281,680 | 37,886 |
Boston Scientific Corp.1 | 2,900,000 | 34,858 |
Novartis AG | 365,000 | 29,133 |
Medtronic, Inc. | 315,000 | 18,078 |
4,278,104 | ||
Information technology 15.07% | ||
Google Inc., Class A1 | 582,700 | 653,038 |
Oracle Corp. | 13,993,000 | 535,372 |
Microsoft Corp. | 13,756,700 | 514,913 |
Texas Instruments Inc. | 11,583,559 | 508,634 |
Yahoo! Inc.1 | 5,538,000 | 223,957 |
Apple Inc. | 314,700 | 176,581 |
Accenture PLC, Class A | 2,025,000 | 166,495 |
Intuit Inc. | 2,035,000 | 155,311 |
SAP AG | 1,439,500 | 123,394 |
Autodesk, Inc.1 | 2,300,000 | 115,759 |
Motorola Solutions, Inc. | 1,294,642 | 87,388 |
Adobe Systems Inc.1 | 1,370,000 | 82,036 |
KLA-Tencor Corp. | 1,250,000 | 80,575 |
Intel Corp. | 3,000,000 | 77,880 |
Common stocks | ||
Value | ||
Information technology (continued) | Shares | (000) |
Computer Sciences Corp. | 1,233,000 | $ 68,900 |
Automatic Data Processing, Inc. | 715,000 | 57,779 |
Linear Technology Corp. | 1,200,000 | 54,660 |
Xilinx, Inc. | 875,000 | 40,180 |
Quanta Computer Inc. | 7,140,000 | 16,650 |
Nintendo Co., Ltd. | 75,000 | 9,978 |
First Solar, Inc.1 | 170,000 | 9,289 |
Western Union Co. | 400,000 | 6,900 |
Comverse, Inc.1 | 97,000 | 3,764 |
Maxim Integrated Products, Inc. | 119,715 | 3,341 |
3,772,774 | ||
Consumer discretionary 13.86% | ||
Amazon.com, Inc.1 | 1,355,000 | 540,360 |
Home Depot, Inc. | 4,225,000 | 347,886 |
Time Warner Inc. | 4,646,667 | 323,966 |
General Motors Co.1 | 7,694,808 | 314,487 |
Comcast Corp., Class A | 4,203,000 | 218,409 |
Comcast Corp., Class A, special nonvoting shares | 1,000,000 | 49,880 |
Twenty-First Century Fox, Inc., Class A | 6,987,700 | 245,827 |
Mattel, Inc. | 4,495,000 | 213,872 |
Melco Crown Entertainment Ltd. (ADR)1 | 4,000,000 | 156,880 |
Carnival Corp., units | 3,320,000 | 133,364 |
Johnson Controls, Inc. | 2,471,000 | 126,762 |
Royal Caribbean Cruises Ltd. | 2,363,000 | 112,053 |
Daily Mail and General Trust PLC, Class A, nonvoting | 6,400,000 | 101,795 |
Garmin Ltd. | 2,200,000 | 101,684 |
DIRECTV1 | 1,310,000 | 90,508 |
Fiat SpA1 | 11,000,000 | 89,964 |
Newell Rubbermaid Inc. | 2,475,000 | 80,215 |
Daimler AG | 744,500 | 64,423 |
NIKE, Inc., Class B | 808,360 | 63,569 |
Sirius XM Holdings Inc.1 | 11,055,000 | 38,582 |
Nordstrom, Inc. | 600,000 | 37,080 |
British Sky Broadcasting Group PLC | 1,155,000 | 16,143 |
Motors Liquidation Co. GUC Trust1 | 21,864 | 703 |
3,468,412 | ||
Industrials 10.62% | ||
CSX Corp. | 11,500,000 | 330,855 |
General Dynamics Corp. | 2,807,000 | 268,209 |
Precision Castparts Corp. | 889,400 | 239,515 |
Nielsen Holdings NV | 4,441,839 | 203,836 |
3M Co. | 1,039,800 | 145,832 |
Rockwell Automation | 1,147,600 | 135,600 |
United Parcel Service, Inc., Class B | 1,271,400 | 133,599 |
Waste Management, Inc. | 2,850,000 | 127,880 |
Cummins Inc. | 865,000 | 121,939 |
Emerson Electric Co. | 1,470,000 | 103,165 |
Union Pacific Corp. | 590,600 | 99,221 |
Textron Inc. | 2,696,800 | 99,134 |
Schneider Electric SA | 1,100,000 | 95,941 |
Verisk Analytics, Inc., Class A1 | 1,200,000 | 78,864 |
Southwest Airlines Co. | 3,860,000 | 72,722 |
Common stocks | ||
Value | ||
Industrials (continued) | Shares | (000) |
United Technologies Corp. | 625,000 | $ 71,125 |
Norfolk Southern Corp. | 685,000 | 63,589 |
United Continental Holdings, Inc.1 | 1,635,000 | 61,852 |
Iron Mountain Inc. | 1,835,742 | 55,715 |
Republic Services, Inc. | 1,430,000 | 47,476 |
Lockheed Martin Corp. | 267,000 | 39,692 |
European Aeronautic Defence and Space Co. EADS NV1 | 437,500 | 33,590 |
PACCAR Inc | 480,000 | 28,402 |
2,657,753 | ||
Energy 8.91% | ||
Schlumberger Ltd. | 3,562,000 | 320,972 |
EOG Resources, Inc. | 1,703,000 | 285,832 |
Chevron Corp. | 1,976,200 | 246,847 |
ConocoPhillips | 2,723,360 | 192,405 |
Baker Hughes Inc. | 3,263,000 | 180,313 |
Royal Dutch Shell PLC, Class A (ADR) | 2,525,000 | 179,957 |
FMC Technologies, Inc.1 | 2,874,300 | 150,067 |
Plains GP Holdings, LP, Class A1 | 5,500,000 | 147,235 |
Apache Corp. | 1,370,000 | 117,738 |
BP PLC | 13,619,409 | 110,070 |
Tullow Oil PLC | 5,268,300 | 74,591 |
Devon Energy Corp. | 1,000,000 | 61,870 |
BG Group PLC | 2,700,000 | 58,012 |
Eni SpA | 1,967,000 | 47,328 |
OJSC Gazprom (ADR) | 4,534,200 | 38,767 |
Petróleo Brasileiro SA — Petrobras, preferred nominative (ADR) | 1,175,800 | 17,273 |
2,229,277 | ||
Materials 7.42% | ||
Dow Chemical Co. | 9,918,700 | 440,390 |
Celanese Corp., Series A | 5,773,900 | 319,354 |
Praxair, Inc. | 984,624 | 128,031 |
Mosaic Co. | 2,522,400 | 119,234 |
Sealed Air Corp. | 3,200,000 | 108,960 |
International Flavors & Fragrances Inc. | 1,255,000 | 107,905 |
Valspar Corp. | 1,433,600 | 102,201 |
Freeport-McMoRan Copper & Gold Inc. | 2,700,000 | 101,898 |
Rio Tinto PLC | 1,742,000 | 98,353 |
ArcelorMittal | 4,980,000 | 88,857 |
Avery Dennison Corp. | 1,740,051 | 87,333 |
Air Products and Chemicals, Inc. | 544,000 | 60,808 |
Koninklijke DSM NV | 419,424 | 32,982 |
Barrick Gold Corp. | 1,600,000 | 28,208 |
SSAB Svenskt Stål AB, Class A | 3,276,684 | 25,116 |
Newmont Mining Corp. | 375,000 | 8,636 |
1,858,266 | ||
Financials 6.83% | ||
Prudential Financial, Inc. | 2,100,000 | 193,662 |
State Street Corp. | 2,280,000 | 167,329 |
Marsh & McLennan Companies, Inc. | 2,789,100 | 134,881 |
HSBC Holdings PLC (Hong Kong) | 7,241,433 | 78,584 |
HSBC Holdings PLC (ADR) | 769,270 | 42,410 |
Common stocks | ||
Value | ||
Financials (continued) | Shares | (000) |
Weyerhaeuser Co.1 | 3,784,541 | $ 119,478 |
JPMorgan Chase & Co. | 2,000,000 | 116,960 |
Principal Financial Group, Inc. | 2,200,000 | 108,482 |
Barclays PLC | 20,543,750 | 92,516 |
Goldman Sachs Group, Inc. | 515,300 | 91,342 |
Willis Group Holdings PLC | 1,946,400 | 87,218 |
IntercontinentalExchange Group, Inc. | 318,433 | 71,622 |
Wells Fargo & Co. | 1,500,000 | 68,100 |
UBS AG | 3,058,666 | 58,016 |
Home Loan Servicing Solutions, Ltd. | 2,188,500 | 50,270 |
U.S. Bancorp | 1,235,000 | 49,894 |
Aon PLC, Class A | 525,000 | 44,042 |
Mizuho Financial Group, Inc. | 19,057,500 | 41,260 |
Moody’s Corp. | 447,458 | 35,112 |
Citigroup Inc. | 600,000 | 31,266 |
Bank of New York Mellon Corp. | 805,000 | 28,127 |
1,710,571 | ||
Consumer staples 6.38% | ||
Philip Morris International Inc. | 6,294,500 | 548,440 |
Coca-Cola Co. | 5,135,400 | 212,143 |
Altria Group, Inc. | 3,815,000 | 146,458 |
CVS/Caremark Corp. | 1,670,000 | 119,522 |
Pernod Ricard SA | 1,031,570 | 117,518 |
L’Oréal SA, non-registered shares | 570,000 | 100,136 |
Asahi Group Holdings, Ltd. | 3,400,000 | 95,694 |
PepsiCo, Inc. | 998,419 | 82,809 |
Molson Coors Brewing Co., Class B | 1,033,600 | 58,037 |
Green Mountain Coffee Roasters, Inc.1 | 630,384 | 47,644 |
Mondelez International, Inc. | 1,304,100 | 46,035 |
Avon Products, Inc. | 1,335,000 | 22,989 |
1,597,425 | ||
Telecommunication services 2.40% | ||
Verizon Communications Inc. | 5,720,900 | 281,125 |
Crown Castle International Corp.1 | 2,048,600 | 150,429 |
SoftBank Corp. | 1,060,000 | 92,603 |
CenturyLink, Inc. | 2,428,775 | 77,356 |
601,513 | ||
Utilities 0.63% | ||
PG&E Corp. | 1,384,000 | 55,748 |
Exelon Corp. | 2,000,000 | 54,780 |
FirstEnergy Corp. | 1,430,000 | 47,161 |
157,689 | ||
Miscellaneous 3.85% | ||
Other common stocks in initial period of acquisition | 964,035 | |
Total common stocks (cost: $14,303,621,000) | 23,295,819 | |
Rights & warrants 0.02% | ||
Value | ||
Consumer discretionary 0.02% | Shares | (000) |
General Motors Co., Series A, warrants, expire 20161 | 83,378 | $ 2,598 |
General Motors Co., Series B, warrants, expire 20191 | 83,378 | 1,929 |
Total rights & warrants (cost: $3,908,000) | 4,527 | |
Convertible securities 0.47% | ||
Shares or | ||
Industrials 0.30% | principal amount | |
United Continental Holdings, Inc. 6.00% convertible notes 2029 | $8,610 | 37,927 |
United Continental Holdings, Inc. 4.50% convertible debentures 2015 | $18,000 | 36,855 |
74,782 | ||
Financials 0.04% | ||
OFG Bancorp, Series C, 8.75% noncumulative convertible preferred2 | 6,000 | 9,997 |
Miscellaneous 0.13% | ||
Other convertible securities in initial period of acquisition | 32,594 | |
Total convertible securities (cost: $73,225,000) | 117,373 | |
Bonds, notes & other debt instruments 0.27% | ||
Corporate bonds & notes 0.21% | Principal amount | |
Financials 0.13% | (000) | |
JPMorgan Chase & Co., Series I, junior subordinated 7.90% (undated)3 | $ 29,049 | 32,056 |
Telecommunication services 0.08% | ||
Sprint Nextel Corp. 9.125% 2017 | 13,000 | 15,340 |
Sprint Nextel Corp. 11.50% 2021 | 3,700 | 4,866 |
20,206 | ||
Total corporate bonds & notes | 52,262 | |
U.S. Treasury bonds & notes 0.06% | ||
U.S. Treasury 0.25% 20154 | 14,925 | 14,933 |
Total bonds, notes & other debt instruments (cost: $61,621,000) | 67,195 | |
Short-term securities 6.30% | ||
Freddie Mac 0.07%–0.16% due 1/14–10/6/2014 | 673,300 | 672,997 |
Fannie Mae 0.10%–0.14% due 1/13–9/22/2014 | 331,500 | 331,346 |
Federal Home Loan Bank 0.06%–0.135% due 1/22–8/26/2014 | 144,900 | 144,837 |
Abbott Laboratories 0.14%–0.17% due 1/3–1/6/20145 | 56,900 | 56,900 |
ExxonMobil Corp. 0.07%–0.08% due 1/6–1/14/2014 | 52,400 | 52,399 |
Coca-Cola Co. 0.07%–0.18% due 1/6–3/11/20145 | 52,400 | 52,397 |
General Electric Capital Corp. 0.05%–0.13% due 1/2–2/18/2014 | 44,500 | 44,496 |
Regents of the University of California 0.11%–0.12% due 1/6–3/10/2014 | 44,200 | 44,195 |
U.S. Treasury Bill 0.13% due 5/29/2014 | 40,300 | 40,291 |
Google Inc. 0.10% due 2/20/20145 | 40,000 | 39,996 |
National Rural Utilities Cooperative Finance Corp. 0.09%–0.10% due 1/8–2/4/2014 | 35,400 | 35,398 |
Paccar Financial Corp. 0.10% due 2/14/2014 | 35,200 | 35,192 |
Chevron Corp. 0.08% due 2/19/20145 | 27,300 | 27,295 |
Total short-term securities (cost: $1,577,662,000) | 1,577,739 | |
Total investment securities (cost: $16,020,037,000) | $25,062,653 | |
Other assets less liabilities | (29,299) | |
Net assets | $25,033,354 |
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
1 | Security did not produce income during the last 12 months. |
2 | Acquired through a private placement transaction exempt from registration under the Securities Act of 1933. This security (acquired on 6/28/2012 at a cost of $6,000,000) may be subject to legal or contractual restrictions on resale. |
3 | Coupon rate may change periodically. |
4 | A portion of this security was pledged as collateral. The total value of pledged collateral was $290,000, which represented less than .01% of the net assets of the fund. |
5 | Acquired in a transaction exempt from registration under section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $176,588,000, which represented .71% of the net assets of the fund. |
Key to abbreviation
ADR = American Depositary Receipts
International Growth and
Income FundSM
Investment portfolio
December 31, 2013
Common stocks 91.70% | ||
Value | ||
Financials 21.28% | Shares | (000) |
Prudential PLC | 912,574 | $ 20,250 |
Aviva PLC | 2,718,500 | 20,244 |
BNP Paribas SA | 233,700 | 18,213 |
Banco Bilbao Vizcaya Argentaria, SA | 618,161 | 7,609 |
Banco Bilbao Vizcaya Argentaria, SA (ADR) | 312,171 | 3,868 |
HSBC Holdings PLC (Hong Kong) | 543,368 | 5,897 |
HSBC Holdings PLC (United Kingdom) | 440,000 | 4,826 |
Cheung Kong (Holdings) Ltd. | 610,000 | 9,629 |
Siam Commercial Bank PCL | 2,125,000 | 9,280 |
Sberbank of Russia (ADR) | 580,500 | 7,303 |
Sberbank of Russia (GDR)1 | 116,832 | 1,470 |
bank muscat (SAOG) | 5,262,000 | 8,693 |
Assicurazioni Generali SpA | 340,000 | 7,998 |
Japan Real Estate Investment Corp. | 1,432 | 7,669 |
Barclays PLC | 1,667,500 | 7,509 |
Credit Suisse Group AG | 240,219 | 7,344 |
Banco Santander, SA2 | 771,081 | 6,901 |
Mitsui Fudosan Co., Ltd. | 172,000 | 6,182 |
Link Real Estate Investment Trust | 1,236,000 | 5,993 |
Deutsche Bank AG | 122,000 | 5,820 |
Henderson Land Development Co. Ltd. | 885,980 | 5,056 |
Axis Bank Ltd. | 211,901 | 4,452 |
Sun Life Financial Inc. | 111,700 | 3,945 |
Svenska Handelsbanken AB, Class A | 67,500 | 3,316 |
Investor AB, Class B | 93,600 | 3,221 |
Mizuho Financial Group, Inc. | 1,400,000 | 3,031 |
Sampo Oyj, Class A | 49,700 | 2,442 |
PT Bank Rakyat Indonesia (Persero) Tbk | 4,084,000 | 2,433 |
TCS Group Holding PLC (GDR)1,2 | 84,500 | 1,327 |
Commerzbank AG, non-registered shares2 | 71,778 | 1,156 |
Westfield Group, units | 1,688 | 15 |
203,092 | ||
Consumer discretionary 17.30% | ||
H & M Hennes & Mauritz AB, Class B | 381,700 | 17,578 |
Volkswagen AG, nonvoting preferred | 46,480 | 13,054 |
Hyundai Motor Co. | 42,760 | 9,582 |
Whitbread PLC | 149,122 | 9,263 |
ProSiebenSat.1 Media AG | 175,000 | 8,667 |
Daily Mail and General Trust PLC, Class A, nonvoting | 543,600 | 8,646 |
Crown Resorts Ltd. | 564,000 | 8,486 |
Genting Singapore PLC | 7,083,000 | 8,391 |
William Hill PLC | 1,214,888 | 8,085 |
L’Occitane International SA | 2,840,000 | 6,043 |
Common stocks | ||
Value | ||
Consumer discretionary (continued) | Shares | (000) |
adidas AG | 46,000 | $ 5,863 |
Bayerische Motoren Werke AG | 45,250 | 5,305 |
Galaxy Entertainment Group Ltd.2 | 550,000 | 4,933 |
Ladbrokes PLC | 1,515,000 | 4,488 |
RTL Group SA, non-registered shares | 32,100 | 4,148 |
Sands China Ltd. | 486,000 | 3,971 |
Pearson PLC | 170,000 | 3,775 |
Golden Eagle Retail Group Ltd. | 2,702,000 | 3,568 |
HUGO BOSS AG | 24,400 | 3,474 |
WPP PLC | 145,600 | 3,327 |
Liberty Global PLC, Class C2 | 19,600 | 1,653 |
Liberty Global PLC, Class A2 | 18,500 | 1,646 |
Cie. Financière Richemont SA, Class A | 31,940 | 3,180 |
Burberry Group PLC | 122,978 | 3,087 |
Li & Fung Ltd. | 2,309,000 | 2,978 |
Swatch Group Ltd, non-registered shares | 4,450 | 2,941 |
Kingfisher PLC | 415,100 | 2,644 |
Numericable Group SA, non-registered shares2 | 66,960 | 2,432 |
Daimler AG | 24,700 | 2,137 |
Nissan Motor Co., Ltd. | 213,000 | 1,788 |
165,133 | ||
Health care 9.97% | ||
Novartis AG | 361,870 | 28,883 |
Orion Oyj, Class B | 429,600 | 12,068 |
Novo Nordisk A/S, Class B | 64,700 | 11,860 |
Glenmark Pharmaceuticals Ltd. | 1,180,000 | 10,184 |
Teva Pharmaceutical Industries Ltd. (ADR) | 253,000 | 10,140 |
Sonic Healthcare Ltd. | 428,775 | 6,348 |
Fresenius SE & Co. KGaA | 37,000 | 5,680 |
Bayer AG | 27,100 | 3,801 |
GlaxoSmithKline PLC | 116,800 | 3,117 |
Fresenius Medical Care AG & Co. KGaA | 43,100 | 3,067 |
95,148 | ||
Consumer staples 9.33% | ||
Philip Morris International Inc. | 268,240 | 23,372 |
British American Tobacco PLC | 301,600 | 16,172 |
Pernod Ricard SA | 113,550 | 12,936 |
Nestlé SA | 124,000 | 9,077 |
CALBEE, Inc. | 284,400 | 6,900 |
SABMiller PLC | 133,000 | 6,830 |
Japan Tobacco Inc. | 138,300 | 4,491 |
Charoen Pokphand Foods PCL | 4,563,800 | 4,444 |
Orion Corp. | 3,000 | 2,698 |
Anheuser-Busch InBev NV | 13,500 | 1,435 |
Associated British Foods PLC | 17,700 | 716 |
89,071 | ||
Industrials 9.30% | ||
VINCI SA | 346,733 | 22,762 |
Rolls-Royce Holdings PLC2 | 525,000 | 11,084 |
ASSA ABLOY AB, Class B | 206,800 | 10,925 |
Jardine Matheson Holdings Ltd. | 115,000 | 6,016 |
Common stocks | ||
Value | ||
Industrials (continued) | Shares | (000) |
Babcock International Group PLC | 245,000 | $ 5,497 |
Rexel SA | 199,958 | 5,247 |
Schneider Electric SA | 55,228 | 4,817 |
Hutchison Whampoa Ltd. | 347,000 | 4,717 |
BAE Systems PLC | 647,000 | 4,661 |
Bunzl PLC | 170,752 | 4,100 |
AB Volvo, Class B | 249,800 | 3,280 |
Capita PLC | 183,000 | 3,146 |
Andritz AG | 40,000 | 2,509 |
88,761 | ||
Utilities 8.05% | ||
EDP — Energias de Portugal, SA | 8,182,137 | 30,054 |
National Grid PLC | 1,424,696 | 18,591 |
Power Assets Holdings Ltd. | 1,013,000 | 8,054 |
ENN Energy Holdings Ltd. | 858,000 | 6,346 |
PT Perusahaan Gas Negara (Persero) Tbk | 15,271,500 | 5,615 |
SSE PLC | 146,150 | 3,315 |
Fortum Oyj | 139,301 | 3,187 |
Power Grid Corp. of India Ltd. | 1,000,853 | 1,616 |
76,778 | ||
Telecommunication services 6.28% | ||
Vodafone Group PLC | 6,836,600 | 26,831 |
SoftBank Corp. | 131,500 | 11,488 |
TeliaSonera AB | 883,000 | 7,352 |
China Communications Services Corp. Ltd., Class H | 7,054,800 | 4,367 |
Shin Corp. PCL | 1,983,000 | 4,089 |
Singapore Telecommunications Ltd. | 1,075,000 | 3,118 |
Advanced Info Service PCL | 230,000 | 1,396 |
OJSC Mobile TeleSystems (ADR) | 58,500 | 1,265 |
59,906 | ||
Energy 3.53% | ||
BP PLC | 2,446,651 | 19,773 |
BG Group PLC | 645,200 | 13,863 |
33,636 | ||
Information technology 3.51% | ||
Youku Tudou Inc., Class A (ADR)2 | 520,300 | 15,765 |
Delta Electronics, Inc. | 1,380,760 | 7,876 |
Samsung Electronics Co. Ltd. | 4,105 | 5,337 |
TPK Holding Co., Ltd. | 431,000 | 2,545 |
Mail.Ru Group Ltd. (GDR) | 45,000 | 2,007 |
33,530 | ||
Materials 2.82% | ||
Rio Tinto PLC | 101,600 | 5,736 |
Nampak Ltd. | 1,246,900 | 4,874 |
Syngenta AG | 12,080 | 4,810 |
BASF SE | 31,200 | 3,326 |
Fortescue Metals Group Ltd. | 585,000 | 3,040 |
Amcor Ltd. | 282,000 | 2,657 |
Arkema SA | 19,000 | 2,216 |
Orora Ltd.2 | 282,000 | 292 |
26,951 | ||
Common stocks | ||
Value | ||
Miscellaneous 0.33% | (000) | |
Other common stocks in initial period of acquisition | $ 3,119 | |
Total common stocks (cost: $741,296,000) | 875,125 | |
Convertible securities 0.32% | ||
Principal amount | ||
Financials 0.32% | (000) | |
Bank of Ireland 10.00% convertible notes 2016 | €1,950 | 2,873 |
bank muscat (SAOG) 4.50% convertible notes 2016 | OMR781 | 219 |
Total convertible securities (cost: $2,905,000) | 3,092 | |
Bonds, notes & other debt instruments 0.77% | ||
Corporate bonds & notes 0.58% | ||
Telecommunication services 0.27% | ||
América Móvil, SAB de CV 8.46% 2036 | MXN18,100 | 1,313 |
MTS International Funding Ltd. 8.625% 2020 | $1,050 | 1,244 |
2,557 | ||
Financials 0.13% | ||
Bank of Ireland 10.24% 2049 | €680 | 992 |
Mizuho Capital Investment (USD) 2 Ltd, junior subordinated 14.95% (undated)1,3 | $200 | 214 |
1,206 | ||
Energy 0.11% | ||
Gazprom OJSC 4.95% 20221 | 825 | 803 |
Gazprom OJSC, Series 9, 6.51% 2022 | 270 | 291 |
1,094 | ||
Consumer staples 0.07% | ||
Marfrig Overseas Ltd. 9.50% 20201 | 712 | 669 |
Total corporate bonds & notes | 5,526 | |
Bonds & notes of governments outside the U.S. 0.19% | ||
Brazil (Federal Republic of) 10.00% 2019 | BRL3,130 | 1,199 |
Hungarian Government, Series 20A, 7.50% 2020 | HUF118,480 | 618 |
1,817 | ||
Total bonds, notes & other debt instruments (cost: $7,452,000) | 7,343 | |
Short-term securities 7.22% | ||
Freddie Mac 0.10%–0.12% due 6/13–7/17/2014 | 20,400 | 20,389 |
General Electric Capital Corp. 0.05% due 1/2/2014 | 16,100 | 16,100 |
Federal Home Loan Bank 0.06%–0.10% due 2/25–4/2/2014 | 13,200 | 13,197 |
U.S. Treasury Bill 0.085% due 4/24/2014 | 10,100 | 10,098 |
GlaxoSmithKline Finance PLC 0.11% due 1/9/20141 | 6,000 | 6,000 |
KfW 0.15% due 2/28/20141 | 3,100 | 3,100 |
Total short-term securities (cost: $68,882,000) | 68,884 | |
Total investment securities (cost: $820,535,000) | 954,444 | |
Other assets less liabilities | (137) | |
Net assets | $954,307 |
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
1 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $13,583,000, which represented 1.42% of the net assets of the fund. |
2 | Security did not produce income during the last 12 months. |
3 | Coupon rate may change periodically. |
Key to abbreviations and symbol
ADR = American Depositary Receipts
GDR = Global Depositary Receipts
BRL = Brazilian reais
€ = Euros
HUF = Hungarian forints
MXN = Mexican pesos
OMR = Omani rials
Asset Allocation FundSM
Investment portfolio
December 31, 2013
Common stocks 69.44% | ||
Value | ||
Consumer discretionary 12.38% | Shares | (000) |
Comcast Corp., Class A | 7,325,000 | $ 380,644 |
Home Depot, Inc. | 3,125,000 | 257,312 |
Amazon.com, Inc.1 | 550,000 | 219,334 |
VF Corp. | 2,800,000 | 174,552 |
General Motors Co.1 | 3,500,000 | 143,045 |
Naspers Ltd., Class N | 1,265,000 | 132,169 |
Twenty-First Century Fox, Inc., Class A | 3,600,000 | 126,648 |
DIRECTV1 | 1,700,000 | 117,453 |
Gentex Corp. | 3,200,000 | 105,568 |
Walt Disney Co. | 1,250,000 | 95,500 |
Johnson Controls, Inc. | 1,750,000 | 89,775 |
Toyota Motor Corp. | 1,400,000 | 85,348 |
NIKE, Inc., Class B | 1,040,000 | 81,786 |
Cooper-Standard Holdings Inc.1 | 209,793 | 10,303 |
Revel AC, Inc.1,2,3 | 91,401 | 438 |
Revel AC, Inc. (CVR)1,2,3 | 8,851,470 | 111 |
2,019,986 | ||
Financials 11.56% | ||
ACE Ltd. | 2,520,000 | 260,896 |
Goldman Sachs Group, Inc. | 1,350,000 | 239,301 |
American Express Co. | 2,600,000 | 235,898 |
JPMorgan Chase & Co. | 2,750,000 | 160,820 |
Citigroup Inc. | 2,750,000 | 143,303 |
American Tower Corp. | 1,575,000 | 125,716 |
Bank of America Corp. | 8,000,000 | 124,560 |
First Republic Bank | 1,900,000 | 99,465 |
Marsh & McLennan Companies, Inc. | 1,740,000 | 84,146 |
Progressive Corp. | 2,950,000 | 80,446 |
Sumitomo Mitsui Financial Group, Inc. (ADR) | 7,500,000 | 78,675 |
Allstate Corp. | 1,400,000 | 76,356 |
Moody’s Corp. | 765,000 | 60,030 |
HDFC Bank Ltd. (ADR) | 1,500,000 | 51,660 |
Arch Capital Group Ltd.1 | 860,000 | 51,333 |
Morgan Stanley | 450,000 | 14,112 |
1,886,717 | ||
Industrials 8.43% | ||
Lockheed Martin Corp. | 2,115,000 | 314,416 |
Boeing Co. | 2,270,000 | 309,832 |
General Electric Co. | 5,300,000 | 148,559 |
Cummins Inc. | 1,030,000 | 145,199 |
Parker-Hannifin Corp. | 900,000 | 115,776 |
Danaher Corp. | 1,220,000 | 94,184 |
Rockwell Collins, Inc. | 1,180,000 | 87,226 |
Common stocks | ||
Value | ||
Industrials (continued) | Shares | (000) |
Canadian Pacific Railway Ltd. | 500,000 | $ 75,618 |
Beech Holdings, LLC1,2,3 | 2,447,521 | 19,911 |
Rockwell Automation | 140,000 | 16,542 |
United Technologies Corp. | 130,000 | 14,794 |
Precision Castparts Corp. | 50,000 | 13,465 |
Waste Connections, Inc. | 275,000 | 11,998 |
CEVA Group PLC1,2,4 | 6,142 | 7,721 |
Atrium Corp.1,2,4 | 535 | 1 |
1,375,242 | ||
Health care 8.14% | ||
Merck & Co., Inc. | 6,350,000 | 317,817 |
Gilead Sciences, Inc.1 | 2,850,000 | 214,177 |
Bristol-Myers Squibb Co. | 3,850,000 | 204,628 |
Johnson & Johnson | 2,175,000 | 199,208 |
Pfizer Inc. | 4,685,000 | 143,502 |
UnitedHealth Group Inc. | 1,500,000 | 112,950 |
Incyte Corp.1 | 2,185,000 | 110,627 |
Humana Inc. | 250,000 | 25,805 |
1,328,714 | ||
Energy 8.00% | ||
Kinder Morgan, Inc. | 8,090,000 | 291,240 |
Chevron Corp. | 1,625,000 | 202,979 |
Noble Energy, Inc. | 1,600,000 | 108,976 |
Chesapeake Energy Corp. | 3,700,000 | 100,418 |
Transocean Ltd. | 2,000,000 | 98,840 |
Concho Resources Inc.1 | 900,000 | 97,200 |
Core Laboratories NV | 500,000 | 95,475 |
Oil States International, Inc.1 | 900,000 | 91,548 |
Technip SA | 850,000 | 81,690 |
Denbury Resources Inc.1 | 4,000,000 | 65,720 |
Petróleo Brasileiro SA — Petrobras, ordinary nominative (ADR) | 3,500,000 | 48,230 |
EOG Resources, Inc. | 50,000 | 8,392 |
Pioneer Natural Resources Co. | 42,000 | 7,731 |
Cabot Oil & Gas Corp. | 170,000 | 6,589 |
1,305,028 | ||
Information technology 7.72% | ||
Microsoft Corp. | 11,545,000 | 432,129 |
ASML Holding NV (New York registered) | 2,155,000 | 201,923 |
Texas Instruments Inc. | 3,000,000 | 131,730 |
VeriSign, Inc.1 | 1,700,000 | 101,626 |
Taiwan Semiconductor Manufacturing Co. Ltd. (ADR) | 5,500,000 | 95,920 |
AAC Technologies Holdings Inc. | 19,000,000 | 92,252 |
Google Inc., Class A1 | 77,000 | 86,295 |
Concur Technologies, Inc.1 | 800,000 | 82,544 |
eBay Inc.1 | 650,000 | 35,679 |
1,260,098 | ||
Materials 4.93% | ||
FMC Corp. | 2,500,000 | 188,650 |
Dow Chemical Co. | 3,000,000 | 133,200 |
Monsanto Co. | 900,000 | 104,895 |
Common stocks | ||
Value | ||
Materials (continued) | Shares | (000) |
Sealed Air Corp. | 3,000,000 | $ 102,150 |
Mosaic Co. | 1,800,000 | 85,086 |
LyondellBasell Industries NV, Class A | 1,000,000 | 80,280 |
Nucor Corp. | 1,500,000 | 80,070 |
Praxair, Inc. | 110,000 | 14,304 |
Potash Corp. of Saskatchewan Inc. | 400,000 | 13,184 |
NewPage Holdings Inc.1,2,3 | 21,920 | 2,219 |
804,038 | ||
Consumer staples 4.21% | ||
Unilever NV (New York registered) | 3,445,000 | 138,592 |
Wal-Mart Stores, Inc. | 1,725,000 | 135,740 |
Kimberly-Clark Corp. | 1,120,000 | 116,995 |
Coca-Cola Co. | 2,000,000 | 82,620 |
Procter & Gamble Co. | 770,000 | 62,686 |
Nestlé SA | 830,000 | 60,758 |
Colgate-Palmolive Co. | 920,000 | 59,993 |
PepsiCo, Inc. | 200,000 | 16,588 |
Philip Morris International Inc. | 150,000 | 13,070 |
687,042 | ||
Utilities 1.58% | ||
PG&E Corp. | 1,910,000 | 76,935 |
Southern Co. | 1,660,000 | 68,243 |
Duke Energy Corp. | 540,000 | 37,265 |
Exelon Corp. | 1,250,000 | 34,237 |
Edison International | 625,000 | 28,938 |
FirstEnergy Corp. | 351,100 | 11,579 |
257,197 | ||
Telecommunication services 0.52% | ||
AT&T Inc. | 1,500,000 | 52,740 |
Vodafone Group PLC | 4,200,000 | 16,483 |
SoftBank Corp. | 167,500 | 14,633 |
83,856 | ||
Miscellaneous 1.97% | ||
Other common stocks in initial period of acquisition | 322,655 | |
Total common stocks (cost: $7,150,472,000) | 11,330,573 | |
Rights & warrants 0.00% | ||
Consumer discretionary 0.00% | ||
Cooper-Standard Holdings Inc., warrants, expire 20171 | 38,220 | 822 |
Total rights & warrants (cost: $432,000) | 822 | |
Convertible securities 0.11% | ||
Industrials 0.05% | ||
CEVA Group PLC, Series A-2, 2.239% convertible preferred2,3 | 5,998 | 7,540 |
Convertible securities | ||
Value | ||
Miscellaneous 0.06% | (000) | |
Other convertible securities in initial period of acquisition | $ 10,503 | |
Total convertible securities (cost: $15,028,000) | 18,043 | |
Bonds, notes & other debt instruments 20.67% | ||
U.S. Treasury bonds & notes 7.61% | Principal amount | |
U.S. Treasury 6.68% | (000) | |
U.S. Treasury 0.25% 2014 | $200,000 | 200,040 |
U.S. Treasury 0.25% 2014 | 157,238 | 157,370 |
U.S. Treasury 0.75% 2014 | 145,238 | 145,669 |
U.S. Treasury 2.625% 2014 | 105,000 | 106,528 |
U.S. Treasury 2.625% 2014 | 67,149 | 67,987 |
U.S. Treasury 1.50% 2016 | 65,000 | 66,503 |
U.S. Treasury 2.00% 2016 | 32,500 | 33,571 |
U.S. Treasury 7.25% 2016 | 2,000 | 2,317 |
U.S. Treasury 2.625% 2018 | 96,500 | 101,250 |
U.S. Treasury 3.50% 2018 | 20,000 | 21,707 |
U.S. Treasury 2.50% 2023 | 78,000 | 74,770 |
U.S. Treasury 6.25% 2023 | 10,235 | 13,132 |
U.S. Treasury 5.375% 2031 | 10,000 | 12,227 |
U.S. Treasury 3.75% 2041 | 14,000 | 13,597 |
U.S. Treasury 4.75% 2041 | 15,000 | 17,198 |
U.S. Treasury 3.125% 2043 | 65,000 | 55,433 |
1,089,299 | ||
U.S. Treasury inflation-protected securities5 0.93% | ||
U.S. Treasury Inflation-Protected Security 1.875% 2015 | 29,269 | 30,870 |
U.S. Treasury Inflation-Protected Security 0.125% 2017 | 10,283 | 10,575 |
U.S. Treasury Inflation-Protected Security 0.125% 2018 | 48,500 | 49,477 |
U.S. Treasury Inflation-Protected Security 0.375% 2023 | 47,171 | 45,463 |
U.S. Treasury Inflation-Protected Security 0.75% 2042 | 4,135 | 3,323 |
U.S. Treasury Inflation-Protected Security 0.625% 2043 | 15,239 | 11,711 |
151,419 | ||
Total U.S. Treasury bonds & notes | 1,240,718 | |
Corporate bonds & notes 7.34% | ||
Telecommunication services 1.13% | ||
Sprint Nextel Corp. 8.375% 2017 | 3,700 | 4,301 |
Sprint Nextel Corp. 9.125% 2017 | 2,750 | 3,245 |
Sprint Nextel Corp. 7.00% 2020 | 5,200 | 5,655 |
Sprint Nextel Corp. 11.50% 2021 | 3,700 | 4,866 |
Sprint Corp. 7.875% 20234 | 14,000 | 15,085 |
Wind Acquisition SA 11.75% 20174 | 11,740 | 12,503 |
Wind Acquisition SA 11.75% 2017 | €4,250 | 6,227 |
Wind Acquisition SA 7.25% 20184 | $3,875 | 4,098 |
Wind Acquisition SA 7.25% 20184 | 3,600 | 3,789 |
Wind Acquisition SA 7.375% 2018 | €2,835 | 4,132 |
T-Mobile US, Inc. 6.542% 2020 | $6,475 | 6,920 |
MetroPCS Wireless, Inc. 6.25% 20214 | 6,775 | 7,054 |
MetroPCS Wireless, Inc. 6.625% 20234 | 8,550 | 8,860 |
Leap Wireless International, Inc., Term Loan C, 4.75% 20206,7,8 | 8,060 | 8,088 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Telecommunication services (continued) | (000) | (000) |
Cricket Communications, Inc. 7.75% 2020 | $10,300 | $ 11,781 |
NII Capital Corp. 10.00% 2016 | 10,525 | 5,631 |
NII Capital Corp. 7.875% 20194 | 3,550 | 2,698 |
NII Capital Corp. 8.875% 2019 | 3,800 | 1,653 |
NII Capital Corp. 11.375% 20194 | 5,160 | 4,334 |
NII Capital Corp. 7.625% 2021 | 11,570 | 4,830 |
Telecom Italia Capital SA 6.999% 2018 | 2,600 | 2,893 |
Telecom Italia Capital SA 7.175% 2019 | 7,000 | 7,893 |
Telecom Italia Capital SA 7.721% 2038 | 1,000 | 1,005 |
LightSquared, Term Loan B, 12.00% 20146,8,9,10 | 8,325 | 9,948 |
Trilogy International Partners, LLC 10.25% 20164 | 8,000 | 8,040 |
Verizon Communications Inc. 5.15% 2023 | 4,000 | 4,296 |
Verizon Communications Inc. 6.55% 2043 | 1,725 | 2,019 |
Deutsche Telekom International Finance BV 9.25% 2032 | 3,870 | 5,734 |
Deutsche Telekom International Finance BV 4.875% 20424 | 200 | 191 |
Intelsat Luxembourg Holding Co. 6.75% 20184 | 1,300 | 1,388 |
Intelsat Jackson Holding Co. 6.625% 20224 | 4,300 | 4,451 |
France Télécom 4.125% 2021 | 5,000 | 5,064 |
Telefónica Emisiones, SAU 4.57% 2023 | 3,500 | 3,452 |
SBC Communications Inc. 5.10% 2014 | 1,125 | 1,161 |
AT&T INC. 4.30% 2042 | 1,500 | 1,273 |
184,558 | ||
Health care 1.06% | ||
inVentiv Health Inc. 9.00% 20184 | 5,250 | 5,513 |
inVentiv Health Inc. 11.00% 20184 | 11,260 | 9,993 |
inVentiv Health Inc. 11.00% 20184 | 4,802 | 4,274 |
Kinetic Concepts, Inc., Term Loan D1, 4.50% 20186,7,8 | 753 | 760 |
Kinetic Concepts, Inc. 10.50% 2018 | 8,030 | 9,275 |
Kinetic Concepts, Inc. 12.50% 2019 | 4,600 | 5,221 |
VPI Escrow Corp. 6.75% 20184 | 2,450 | 2,704 |
VPI Escrow Corp. 6.375% 20204 | 4,380 | 4,637 |
VPI Escrow Corp. 5.625% 20214 | 1,905 | 1,919 |
VPI Escrow Corp. 7.50% 20214 | 4,260 | 4,697 |
Tenet Healthcare Corp. 4.75% 2020 | 3,945 | 3,876 |
Tenet Healthcare Corp. 6.00% 20204 | 6,780 | 7,089 |
Catalent Pharma Solutions Inc., Term Loan, 6.50% 20176,7,8 | 2,445 | 2,482 |
PTS Acquisition Corp. 9.75% 2017 | €5,495 | 7,872 |
Rotech Healthcare Inc., Term Loan A, 5.50% 20182,6,7,8 | $3,092 | 3,092 |
Rotech Healthcare Inc., Term Loan B, 10.00% 20192,6,7,8 | 2,400 | 2,400 |
Rotech Healthcare Inc., Term Loan, 13.00% 20202,6,7,8,9 | 4,574 | 4,574 |
INC Research LLC 11.50% 20194 | 8,275 | 9,247 |
Thermo Fisher Scientific Inc. 2.40% 2019 | 8,000 | 7,931 |
Novartis Capital Corp. 2.90% 2015 | 6,000 | 6,202 |
VWR Funding, Inc. 7.25% 2017 | 5,675 | 6,115 |
Forest Laboratories, Inc. 5.00% 20214 | 5,910 | 5,947 |
DJO Finance LLC 9.75% 2017 | 2,835 | 2,899 |
DJO Finance LLC 7.75% 2018 | 330 | 337 |
DJO Finance LLC 9.875% 2018 | 2,455 | 2,651 |
Express Scripts Inc. 3.125% 2016 | 5,000 | 5,221 |
Cardinal Health, Inc. 5.80% 2016 | 4,500 | 5,030 |
Patheon Inc., Term Loan B1, 7.25% 20186,7,8 | 4,742 | 4,793 |
AbbVie Inc. 4.40% 2042 | 4,930 | 4,599 |
Gilead Sciences, Inc. 3.05% 2016 | 4,300 | 4,543 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Health care (continued) | (000) | (000) |
Symbion Inc. 8.00% 2016 | $ 4,000 | $ 4,260 |
Centene Corp. 5.75% 2017 | 3,945 | 4,211 |
PRA Holdings, Inc. 9.50% 20234 | 3,825 | 4,093 |
GlaxoSmithKline Capital Inc. 1.50% 2017 | 4,000 | 4,004 |
Multiplan Inc. 9.875% 20184 | 2,930 | 3,238 |
Apria Healthcare Group Inc., Term Loan B, 6.75% 20206,7,8 | 2,431 | 2,444 |
IMS Health Inc. 7.375% 20184,9 | 1,640 | 1,714 |
HCA Inc. 5.875% 2023 | 1,150 | 1,139 |
Endo Pharmaceuticals Holdings Inc. 5.75% 20224 | 1,070 | 1,078 |
Amgen Inc. 2.50% 2016 | 990 | 1,025 |
173,099 | ||
Industrials 1.04% | ||
Navios Maritime Holdings Inc. and Navios Maritime Finance II (US) Inc. 8.125% 2019 | 4,570 | 4,719 |
Navios Maritime Acquisition Corporation and Navios Acquisition Finance (US) Inc. 8.125% 20214 | 7,500 | 7,688 |
Navios Maritime Holdings Inc. 7.375% 20224 | 9,150 | 9,219 |
Associated Materials, LLC and AMH New Finance, Inc. 9.125% 2017 | 17,795 | 19,085 |
Nortek Inc. 10.00% 2018 | 4,800 | 5,322 |
Nortek Inc. 8.50% 2021 | 7,845 | 8,728 |
Ply Gem Industries, Inc. 9.375% 2017 | 1,440 | 1,562 |
Ply Gem Industries, Inc. 8.25% 2018 | 10,006 | 10,707 |
General Electric Co. 2.70% 2022 | 6,535 | 6,119 |
General Electric Capital Corp. 3.10% 2023 | 3,750 | 3,559 |
General Electric Co. 4.125% 2042 | 2,500 | 2,310 |
R.R. Donnelley & Sons Co. 7.25% 2018 | 4,775 | 5,444 |
R.R. Donnelley & Sons Co. 7.00% 2022 | 4,200 | 4,536 |
HD Supply, Inc. 11.50% 2020 | 7,385 | 8,834 |
Burlington Northern Santa Fe LLC 7.00% 2014 | 1,945 | 1,955 |
Burlington Northern Santa Fe LLC 4.10% 2021 | 2,000 | 2,055 |
Burlington Northern Santa Fe LLC 3.00% 2023 | 2,500 | 2,329 |
Burlington Northern Santa Fe LLC 3.85% 2023 | 2,500 | 2,460 |
JELD-WEN Escrow Corp. 12.25% 20174 | 7,000 | 7,980 |
Euramax International, Inc. 9.50% 2016 | 6,965 | 7,017 |
DAE Aviation Holdings, Inc. 11.25% 20154 | 5,677 | 5,702 |
Beechcraft Holdings, LLC., Term Loan, 5.75% 20206,7,8 | 5,235 | 5,296 |
American Airlines, Inc., Series 2013-2, Class A, 4.95% 20244,6 | 4,833 | 5,087 |
US Investigations Services, Inc., Term Loan B, 4.75% 20156,7,8 | 301 | 301 |
US Investigations Services, Inc. 10.50% 20154 | 3,600 | 3,231 |
US Investigations Services, Inc. 11.75% 20164 | 1,735 | 1,232 |
United Technologies Corp. 1.80% 2017 | 2,110 | 2,144 |
United Technologies Corp. 4.50% 2042 | 2,400 | 2,331 |
Builders Firstsource 7.625% 20214 | 4,155 | 4,352 |
Norfolk Southern Corp. 5.75% 2016 | 2,255 | 2,465 |
Norfolk Southern Corp. 5.75% 2018 | 1,075 | 1,225 |
Norfolk Southern Corp. 4.837% 2041 | 67 | 64 |
Union Pacific Corp. 3.646% 20244 | 3,731 | 3,606 |
Atlas Copco AB 5.60% 20174 | 2,750 | 3,077 |
Nielsen Finance LLC and Nielsen Finance Co. 5.50% 20214 | 2,630 | 2,676 |
Volvo Treasury AB 5.95% 20154 | 2,205 | 2,334 |
Northwest Airlines, Inc., Term Loan A, 2.00% 20186,7,8 | 1,423 | 1,323 |
CEVA Group PLC 11.625% 20164 | 450 | 475 |
CEVA Group PLC 8.375% 20174 | 183 | 192 |
Hawker Beechcraft Acquisition Co., LLC, Letter of Credit, 0.022% 20146,7,8 | 547 | 298 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Industrials (continued) | (000) | (000) |
Continental Airlines, Inc., Series 1997-4B, Class B, 6.90% 20186 | $ 53 | $ 56 |
Continental Airlines, Inc., Series 2000-2, Class B, 8.307% 20196 | 8 | 9 |
United Air Lines, Inc., Series 2007-1, Class B, 7.336% 20214,6 | 51 | 53 |
169,157 | ||
Financials 1.03% | ||
Hospitality Properties Trust 6.30% 2016 | 3,000 | 3,240 |
Hospitality Properties Trust 6.70% 2018 | 6,540 | 7,340 |
American International Group, Inc. 3.375% 2020 | 9,500 | 9,558 |
JPMorgan Chase & Co. 3.45% 2016 | 3,500 | 3,673 |
JPMorgan Chase & Co. 3.25% 2022 | 3,000 | 2,876 |
JPMorgan Chase & Co. 3.20% 2023 | 3,000 | 2,845 |
Bank of America Corp. 5.75% 2017 | 3,100 | 3,530 |
Bank of America Corp. 5.00% 2021 | 3,000 | 3,279 |
Bank of America Corp. 3.30% 2023 | 2,000 | 1,893 |
Realogy Corp., Letter of Credit, 4.25% 20166,7,8 | 818 | 818 |
Realogy Corp., Term Loan B, 4.50% 20206,7,8 | 7,317 | 7,403 |
Morgan Stanley 1.75% 2016 | 8,000 | 8,111 |
International Lease Finance Corp. 4.875% 2015 | 7,795 | 8,097 |
Wells Fargo & Co. 1.25% 2016 | 8,000 | 8,064 |
Developers Diversified Realty Corp. 7.50% 2017 | 3,460 | 4,034 |
DDR Corp. 3.50% 2021 | 4,000 | 3,895 |
Intercontinentalexchange, Inc. 2.50% 2018 | 7,000 | 7,056 |
Citigroup Inc. 2.50% 2018 | 4,000 | 4,023 |
Citigroup Inc. 3.875% 2023 | 3,000 | 2,950 |
Kimco Realty Corp. 6.875% 2019 | 2,375 | 2,833 |
Kimco Realty Corp. 3.125% 2023 | 3,820 | 3,475 |
Bank of Nova Scotia 2.55% 2017 | 6,000 | 6,225 |
Corporate Office Properties Trust 3.60% 2023 | 600 | 544 |
Corporate Office Properties LP 5.25% 2024 | 5,500 | 5,589 |
CIT Group Inc. 5.00% 2017 | 5,700 | 6,113 |
DCT Industrial Trust Inc. 4.50% 20234 | 6,000 | 5,832 |
Barclays Bank PLC 5.125% 2020 | 5,000 | 5,546 |
Goldman Sachs Group, Inc. 2.90% 2018 | 1,000 | 1,018 |
Goldman Sachs Group, Inc. 3.625% 2023 | 4,000 | 3,875 |
QBE Insurance Group Ltd. 2.40% 20184 | 5,000 | 4,806 |
Rabobank Nederland/FI 4.625% 2023 | 4,640 | 4,674 |
Prologis, Inc. 4.25% 2023 | 4,495 | 4,442 |
CME Group Inc. 5.30% 2043 | 4,000 | 4,187 |
Monumental Global Funding III 0.444% 20144,7 | 4,000 | 4,000 |
BNP Paribas 5.00% 2021 | 3,250 | 3,566 |
Toronto-Dominion Bank 2.375% 2016 | 3,000 | 3,117 |
iStar Financial Inc., Series B, 9.00% 2017 | 2,330 | 2,741 |
Lloyds Banking Group PLC 2.30% 2018 | 1,810 | 1,806 |
PNC Financial Services Group, Inc. 2.854% 2022 | 1,500 | 1,394 |
Brandywine Operating Partnership, LP 3.95% 2023 | 380 | 356 |
168,824 | ||
Consumer discretionary 0.82% | ||
Caesars Entertainment Operating Co. 11.25% 2017 | 6,420 | 6,548 |
Caesars Entertainment Operating Co. 8.00% 20204 | 4,500 | 4,703 |
Caesars Entertainment Operating Co. 9.00% 2020 | 4,900 | 4,790 |
Caesars Entertainment Operating Co. 9.00% 2020 | 2,370 | 2,317 |
DISH DBS Corp. 4.25% 2018 | 13,950 | 14,264 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Consumer discretionary (continued) | (000) | (000) |
DISH DBS Corp. 5.125% 2020 | $ 2,800 | $ 2,814 |
MGM Resorts International 5.875% 2014 | 4,310 | 4,337 |
MGM Resorts International 8.625% 2019 | 7,975 | 9,391 |
Toys “R” Us-Delaware, Inc. 7.375% 20164 | 10,640 | 9,842 |
Comcast Corp. 5.65% 2035 | 1,750 | 1,864 |
Comcast Corp. 6.95% 2037 | 5,125 | 6,301 |
Time Warner Inc. 4.05% 2023 | 4,630 | 4,618 |
Time Warner Inc. 6.25% 2041 | 2,500 | 2,777 |
Ford Motor Credit Co. 2.375% 2018 | 7,000 | 7,073 |
Dollar General Corp. 1.875% 2018 | 2,500 | 2,420 |
Dollar General Corp. 3.25% 2023 | 4,650 | 4,279 |
Boyd Gaming Corp. 9.125% 2018 | 5,945 | 6,495 |
Cox Communications, Inc. 2.95% 20234 | 7,000 | 6,119 |
DaimlerChrysler North America Holding Corp. 2.40% 20174 | 6,000 | 6,096 |
Volkswagen International Finance NV 2.375% 20174 | 5,000 | 5,139 |
Thomson Reuters Corp. 6.50% 2018 | 140 | 162 |
Thomson Reuters Corp. 4.30% 2023 | 4,500 | 4,521 |
Hilton Hotels Corp. 5.625% 20214 | 4,285 | 4,454 |
Time Warner Cable Inc. 6.75% 2018 | 3,345 | 3,753 |
Clear Channel Worldwide Holdings, Inc. 7.625% 2020 | 2,635 | 2,783 |
Staples, Inc. 9.75% 2014 | 2,500 | 2,508 |
Neiman Marcus Group LTD Inc. 8.00% 20214 | 1,175 | 1,234 |
Neiman Marcus Group LTD Inc. 8.75% 20214,7,9 | 575 | 605 |
Gannett Co., Inc. 6.375% 20234 | 1,300 | 1,349 |
Univision Communications Inc. 6.875% 20194 | 830 | 891 |
134,447 | ||
Energy 0.78% | ||
StatoilHydro ASA 1.80% 2016 | 4,000 | 4,092 |
StatoilHydro ASA 2.65% 2024 | 4,000 | 3,609 |
Statoil ASA 4.25% 2041 | 2,000 | 1,834 |
Peabody Energy Corp. 6.00% 2018 | 7,735 | 8,276 |
Peabody Energy Corp. 6.25% 2021 | 875 | 888 |
Enbridge Inc. 4.00% 2023 | 8,500 | 8,351 |
Williams Partners L.P. 4.125% 2020 | 3,000 | 3,076 |
Williams Partners L.P. 4.00% 2021 | 195 | 193 |
Williams Partners L.P. 4.50% 2023 | 5,000 | 4,968 |
Kinder Morgan Energy Partners, LP 6.00% 2017 | 3,120 | 3,499 |
Kinder Morgan Energy Partners, LP 3.45% 2023 | 1,000 | 929 |
Kinder Morgan Energy Partners, LP 3.50% 2023 | 3,500 | 3,215 |
Enterprise Products Operating LLC 5.20% 2020 | 1,710 | 1,903 |
Enterprise Products Operating LLC 3.35% 2023 | 5,475 | 5,203 |
Devon Energy Corp. 3.25% 2022 | 6,500 | 6,200 |
Halliburton Co. 2.00% 2018 | 6,000 | 5,958 |
Cenovus Energy Inc. 3.80% 2023 | 6,000 | 5,851 |
Enbridge Energy Partners, LP, Series B, 6.50% 2018 | 1,900 | 2,212 |
Enbridge Energy Partners, LP 5.20% 2020 | 1,150 | 1,235 |
Enbridge Energy Partners, LP, Series B, 7.50% 2038 | 2,000 | 2,345 |
Alpha Natural Resources, Inc. 9.75% 2018 | 4,115 | 4,382 |
Alpha Natural Resources, Inc. 6.00% 2019 | 675 | 586 |
Alpha Natural Resources, Inc. 6.25% 2021 | 875 | 753 |
TransCanada PipeLines Ltd. 7.625% 2039 | 4,000 | 5,340 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Energy (continued) | (000) | (000) |
Spectra Energy Partners, LP 4.75% 2024 | $ 5,000 | $ 5,099 |
Petróleos Mexicanos 3.50% 2018 | 4,900 | 5,041 |
NGPL PipeCo LLC 9.625% 20194 | 4,390 | 4,313 |
CONSOL Energy Inc. 8.00% 2017 | 1,455 | 1,539 |
CONSOL Energy Inc. 8.25% 2020 | 2,370 | 2,577 |
Total Capital International 3.70% 2024 | 4,000 | 3,957 |
Teekay Corp. 8.50% 2020 | 3,630 | 3,943 |
Schlumberger Investment SA 3.65% 2023 | 3,460 | 3,431 |
Canadian Natural Resources Ltd. 5.70% 2017 | 3,000 | 3,373 |
Chevron Corp. 3.191% 2023 | 3,500 | 3,361 |
Kinder Morgan Energy Partners, LP 5.00% 20214 | 2,825 | 2,793 |
Arch Coal, Inc. 7.00% 2019 | 975 | 780 |
Arch Coal, Inc. 7.25% 2021 | 1,525 | 1,174 |
Anadarko Petroleum Corp. 6.45% 2036 | 1,370 | 1,539 |
127,818 | ||
Materials 0.52% | ||
FMG Resources 7.00% 20154 | 1,339 | 1,392 |
FMG Resources 6.00% 20174 | 12,085 | 12,901 |
FMG Resources 6.875% 20184 | 6,135 | 6,472 |
FMG Resources 8.25% 20194 | 1,225 | 1,380 |
FMG Resources 6.875% 20224 | 2,525 | 2,765 |
Xstrata Canada Financial Corp. 2.70% 20174,7 | 2,000 | 2,024 |
Glencore Xstrata LLC 4.125% 20234 | 8,640 | 8,077 |
Inmet Mining Corp. 8.75% 20204 | 5,405 | 5,891 |
Inmet Mining Corp. 7.50% 20214 | 3,310 | 3,476 |
ArcelorMittal 7.25% 20417 | 7,345 | 7,051 |
Reynolds Group Inc. 5.75% 2020 | 6,315 | 6,473 |
CEMEX Finance LLC 9.375% 20224 | 3,750 | 4,247 |
Walter Energy, Inc. 9.50% 20194 | 3,650 | 3,869 |
Rio Tinto Finance (USA) Ltd. 2.25% 2018 | 3,855 | 3,838 |
Holcim Ltd. 5.15% 20234 | 3,335 | 3,425 |
Teck Resources Ltd. 5.40% 2043 | 3,725 | 3,398 |
Ecolab Inc. 3.00% 2016 | 2,545 | 2,668 |
International Paper Co. 7.30% 2039 | 2,005 | 2,476 |
Newcrest Finance Pty Ltd. 4.20% 20224 | 3,050 | 2,438 |
84,261 | ||
Information technology 0.41% | ||
First Data Corp. 11.75% 20214 | 19,470 | 20,638 |
First Data Corp. 11.75% 20214 | 5,835 | 6,185 |
First Data Corp. 8.75% 20224,7,9 | 4,025 | 4,317 |
Freescale Semiconductor, Inc. 5.00% 20214 | 7,870 | 7,673 |
Freescale Semiconductor, Inc. 6.00% 20224 | 10,700 | 10,861 |
SRA International, Inc., Term Loan B, 6.50% 20186,7,8 | 6,443 | 6,392 |
SRA International, Inc. 11.00% 2019 | 3,865 | 4,039 |
Alcatel-Lucent USA Inc. 4.625% 20174 | 2,925 | 2,943 |
Alcatel-Lucent USA Inc. 8.875% 20204 | 3,555 | 3,982 |
67,030 | ||
Consumer staples 0.35% | ||
CVS Caremark Corp. 2.25% 2018 | 5,000 | 5,002 |
CVS Caremark Corp. 4.00% 2023 | 4,000 | 3,993 |
Altria Group, Inc. 4.50% 2043 | 9,000 | 7,954 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Consumer staples (continued) | (000) | (000) |
SABMiller Holdings Inc. 3.75% 20224 | $5,500 | $ 5,522 |
SABMiller Holdings Inc. 4.95% 20424 | 2,055 | 2,042 |
Rite Aid Corp. 10.25% 2019 | 3,755 | 4,224 |
Rite Aid Corp. 8.00% 2020 | 900 | 1,017 |
Philip Morris International Inc. 3.60% 2023 | 5,270 | 5,103 |
Kraft Foods Inc. 2.25% 2017 | 2,560 | 2,593 |
Kraft Foods Inc. 5.375% 2020 | 1,570 | 1,772 |
Anheuser-Busch InBev NV 3.625% 2015 | 3,750 | 3,902 |
Imperial Tobacco Finance PLC 3.50% 20234 | 4,000 | 3,732 |
Reynolds American Inc. 4.85% 2023 | 3,230 | 3,336 |
British American Tobacco International Finance PLC 9.50% 20184 | 2,470 | 3,254 |
Pernod Ricard SA 2.95% 20174 | 3,000 | 3,099 |
56,545 | ||
Utilities 0.20% | ||
MidAmerican Energy Co. 5.95% 2017 | 1,375 | 1,578 |
PacifiCorp., First Mortgage Bonds, 5.65% 2018 | 1,250 | 1,437 |
Sierra Pacific Power Co., General and Refunding Mortgage Notes, Series T, 3.375% 2023 | 3,500 | 3,381 |
MidAmerican Energy Holdings Co. 5.95% 2037 | 3,500 | 3,831 |
Pacific Gas and Electric Co. 3.85% 2023 | 5,460 | 5,433 |
Electricité de France SA 6.50% 20194 | 170 | 201 |
Electricité de France SA 6.95% 20394 | 4,000 | 4,888 |
CenterPoint Energy Resources Corp. 4.50% 2021 | 4,690 | 5,004 |
American Electric Power Co. 2.95% 2022 | 4,020 | 3,719 |
Virginia Electric and Power Co., Series B, 5.95% 2017 | 1,800 | 2,076 |
Tri-State Generation and Transmission Assn. Inc., Pass Through Trust, Series 2003-A, 6.04% 20184,6 | 666 | 704 |
Consumers Energy Co., First Mortgage Bonds, 6.125% 2019 | 50 | 59 |
32,311 | ||
Total corporate bonds & notes | 1,198,050 | |
Mortgage-backed obligations6 4.73% | ||
Fannie Mae 6.00% 2021 | 95 | 104 |
Fannie Mae 6.00% 2026 | 930 | 1,018 |
Fannie Mae 2.50% 2027 | 1,248 | 1,242 |
Fannie Mae 2.50% 2028 | 1,982 | 1,968 |
Fannie Mae 2.50% 2028 | 1,981 | 1,967 |
Fannie Mae 2.50% 2028 | 1,980 | 1,966 |
Fannie Mae 2.50% 2028 | 1,980 | 1,965 |
Fannie Mae 2.50% 2028 | 1,979 | 1,962 |
Fannie Mae 2.50% 2028 | 1,976 | 1,962 |
Fannie Mae 2.50% 2028 | 1,975 | 1,961 |
Fannie Mae 2.50% 2028 | 1,964 | 1,950 |
Fannie Mae 2.50% 2028 | 1,811 | 1,798 |
Fannie Mae 2.50% 2028 | 1,779 | 1,766 |
Fannie Mae 2.50% 2028 | 1,776 | 1,763 |
Fannie Mae 2.50% 2028 | 1,759 | 1,746 |
Fannie Mae 2.50% 2028 | 1,717 | 1,705 |
Fannie Mae 2.50% 2028 | 1,641 | 1,629 |
Fannie Mae 2.50% 2028 | 1,600 | 1,586 |
Fannie Mae 2.50% 2028 | 1,564 | 1,553 |
Fannie Mae 2.50% 2028 | 1,510 | 1,499 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Mortgage-backed obligations6 (continued) | (000) | (000) |
Fannie Mae 2.50% 2028 | $ 1,509 | $ 1,498 |
Fannie Mae 2.50% 2028 | 1,508 | 1,497 |
Fannie Mae 2.50% 2028 | 1,499 | 1,486 |
Fannie Mae 2.50% 2028 | 1,475 | 1,464 |
Fannie Mae 2.50% 2028 | 1,471 | 1,461 |
Fannie Mae 2.50% 2028 | 1,466 | 1,455 |
Fannie Mae 2.50% 2028 | 1,438 | 1,428 |
Fannie Mae 2.50% 2028 | 1,419 | 1,408 |
Fannie Mae 2.50% 2028 | 1,398 | 1,388 |
Fannie Mae 2.50% 2028 | 1,367 | 1,358 |
Fannie Mae 2.50% 2028 | 1,345 | 1,336 |
Fannie Mae 2.50% 2028 | 1,270 | 1,261 |
Fannie Mae 2.50% 2028 | 1,223 | 1,214 |
Fannie Mae 2.50% 2028 | 1,208 | 1,199 |
Fannie Mae 2.50% 2028 | 1,199 | 1,191 |
Fannie Mae 2.50% 2028 | 1,175 | 1,167 |
Fannie Mae 2.50% 2028 | 1,175 | 1,167 |
Fannie Mae 2.50% 2028 | 1,151 | 1,142 |
Fannie Mae 2.50% 2028 | 993 | 986 |
Fannie Mae 2.50% 2028 | 991 | 984 |
Fannie Mae 2.50% 2028 | 991 | 983 |
Fannie Mae 2.50% 2028 | 991 | 983 |
Fannie Mae 2.50% 2028 | 990 | 983 |
Fannie Mae 2.50% 2028 | 990 | 983 |
Fannie Mae 2.50% 2028 | 990 | 983 |
Fannie Mae 2.50% 2028 | 990 | 983 |
Fannie Mae 2.50% 2028 | 990 | 982 |
Fannie Mae 2.50% 2028 | 989 | 982 |
Fannie Mae 2.50% 2028 | 989 | 982 |
Fannie Mae 2.50% 2028 | 989 | 979 |
Fannie Mae 2.50% 2028 | 983 | 976 |
Fannie Mae 2.50% 2028 | 978 | 969 |
Fannie Mae 2.50% 2028 | 956 | 949 |
Fannie Mae 2.50% 2028 | 919 | 912 |
Fannie Mae 2.50% 2028 | 887 | 881 |
Fannie Mae 2.50% 2028 | 881 | 873 |
Fannie Mae 2.50% 2028 | 838 | 832 |
Fannie Mae 2.50% 2028 | 779 | 773 |
Fannie Mae 2.50% 2028 | 381 | 378 |
Fannie Mae 2.50% 2028 | 93 | 93 |
Fannie Mae 5.50% 2033 | 1,529 | 1,683 |
Fannie Mae 5.50% 2033 | 1,050 | 1,156 |
Fannie Mae, Series 2006-43, Class JO, principal only, 0% 2036 | 313 | 287 |
Fannie Mae 5.50% 2036 | 2,292 | 2,526 |
Fannie Mae, Series 2006-49, Class PA, 6.00% 2036 | 807 | 890 |
Fannie Mae 5.50% 2037 | 844 | 932 |
Fannie Mae 5.50% 2037 | 604 | 665 |
Fannie Mae, Series 2007-40, Class PT, 5.50% 2037 | 167 | 182 |
Fannie Mae, Series 2007-33, Class HE, 5.50% 2037 | 108 | 117 |
Fannie Mae 6.00% 2037 | 6,087 | 6,764 |
Fannie Mae 6.00% 2037 | 101 | 112 |
Fannie Mae 6.00% 2038 | 14,330 | 15,882 |
Fannie Mae 6.00% 2038 | 4,325 | 4,793 |
Fannie Mae 6.00% 2038 | 3,804 | 4,221 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Mortgage-backed obligations6 (continued) | (000) | (000) |
Fannie Mae 6.00% 2038 | $ 310 | $ 343 |
Fannie Mae 6.00% 2038 | 197 | 219 |
Fannie Mae 6.00% 2038 | 181 | 201 |
Fannie Mae 6.00% 2039 | 5 | 5 |
Fannie Mae 4.00% 2040 | 9,012 | 9,292 |
Fannie Mae 4.194% 20407 | 825 | 874 |
Fannie Mae 4.00% 2041 | 7,347 | 7,582 |
Fannie Mae 4.00% 2041 | 5,657 | 5,838 |
Fannie Mae, Series 2001-T10, Class A-1, 7.00% 2041 | 331 | 386 |
Fannie Mae, Series 2002-W3, Class A-5, 7.50% 2041 | 82 | 96 |
Fannie Mae 3.00% 2042 | 60,534 | 57,645 |
Fannie Mae 4.00% 2042 | 40,632 | 41,922 |
Fannie Mae 3.00% 2043 | 15,282 | 14,554 |
Fannie Mae 3.00% 2043 | 4,988 | 4,751 |
Fannie Mae 3.00% 2043 | 1,950 | 1,855 |
Fannie Mae 3.00% 2043 | 1,322 | 1,257 |
Fannie Mae 3.00% 2043 | 1,235 | 1,175 |
Fannie Mae 4.00% 2043 | 13,911 | 14,368 |
Fannie Mae 4.00% 2043 | 10,515 | 10,861 |
Fannie Mae 4.00% 2043 | 5,741 | 5,923 |
Fannie Mae 4.00% 2043 | 5,623 | 5,817 |
Fannie Mae 4.00% 2043 | 4,772 | 4,928 |
Fannie Mae 4.00% 2043 | 4,525 | 4,673 |
Fannie Mae 4.00% 2043 | 3,708 | 3,836 |
Fannie Mae 4.00% 2043 | 3,372 | 3,480 |
Fannie Mae 4.00% 2043 | 3,319 | 3,429 |
Fannie Mae 4.00% 2043 | 1,130 | 1,166 |
Fannie Mae 4.50% 2043 | 4,920 | 5,229 |
Fannie Mae 3.50% 2044 | 38,483 | 38,239 |
Fannie Mae 4.50% 2044 | 146,000 | 154,743 |
Fannie Mae 5.50% 2044 | 4,530 | 4,983 |
Fannie Mae 6.00% 2044 | 24,158 | 26,798 |
Fannie Mae 7.00% 2047 | 293 | 324 |
Fannie Mae 7.00% 2047 | 271 | 300 |
Fannie Mae 7.00% 2047 | 13 | 14 |
Freddie Mac 5.00% 2023 | 594 | 638 |
Freddie Mac 6.00% 2026 | 2,335 | 2,559 |
Freddie Mac 4.50% 2029 | 650 | 697 |
Freddie Mac 4.50% 2029 | 634 | 681 |
Freddie Mac 4.50% 2029 | 514 | 551 |
Freddie Mac, Series T-041, Class 3-A, 6.611% 20327 | 516 | 585 |
Freddie Mac, Series 3233, Class PA, 6.00% 2036 | 1,878 | 2,081 |
Freddie Mac, Series 3312, Class PA, 5.50% 2037 | 1,828 | 1,988 |
Freddie Mac 5.00% 2038 | 4,359 | 4,703 |
Freddie Mac 6.50% 2038 | 696 | 778 |
Freddie Mac 4.50% 2039 | 639 | 679 |
Freddie Mac 5.00% 2040 | 5,846 | 6,333 |
Freddie Mac 4.00% 2043 | 11,040 | 11,380 |
Freddie Mac 4.00% 2043 | 6,537 | 6,753 |
Freddie Mac 4.00% 2043 | 6,398 | 6,596 |
Freddie Mac 4.00% 2043 | 4,121 | 4,261 |
Freddie Mac 4.00% 2043 | 4,005 | 4,129 |
Government National Mortgage Assn. 4.50% 2043 | 9,893 | 10,595 |
Government National Mortgage Assn. 3.50% 2044 | 30,000 | 30,273 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Mortgage-backed obligations6 (continued) | (000) | (000) |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-CIBC12, Class A-3B, 5.289% 20377 | $ 1,963 | $ 1,965 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2011-C4, Class A-2, 3.341% 20464 | 5,625 | 5,871 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2011-C3A, Class A-2, 3.673% 20464 | 7,000 | 7,347 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2007-CB19, Class A-4, 5.706% 20497 | 8,543 | 9,501 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2007-C1, Class A-4, 5.716% 2051 | 2,000 | 2,199 |
Greenwich Capital Commercial Funding Corp., Series 2006-GG7, Class A-4, 5.82% 20387 | 2,946 | 3,221 |
Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A-4, 5.444% 2039 | 10,000 | 10,999 |
Greenwich Capital Commercial Funding Corp., Series 2007-GG11, Class A-M, 5.867% 20497 | 5,000 | 5,490 |
LB-UBS Commercial Mortgage Trust, Series 2007-C2, Class A-3, 5.43% 2040 | 1,658 | 1,829 |
LB-UBS Commercial Mortgage Trust, Series 2007-C6, Class A-M, 6.114% 20407 | 5,500 | 6,044 |
LB-UBS Commercial Mortgage Trust, Series 2007-C7, Class A-M, 6.164% 20457 | 2,570 | 2,942 |
Banc of America Commercial Mortgage Inc., Series 2007-3, Class A-4, 5.649% 20497 | 9,100 | 10,068 |
Wachovia Bank Commercial Mortgage Trust, Series 2007-C30, Class A-5, 5.342% 2043 | 3,000 | 3,303 |
Wachovia Bank Commercial Mortgage Trust, Series 2007-C31, Class A-M, 5.591% 20477 | 3,000 | 3,273 |
Wachovia Bank Commercial Mortgage Trust, Series 2007-C33, Class A-M, 5.924% 20517 | 3,000 | 3,320 |
Aventura Mall Trust 3.743% 20324,7 | 5,500 | 5,652 |
Hilton USA Trust, Series 2013-HLF, AFX, 2.662% 20304 | 5,580 | 5,534 |
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW17, Class A-4, 5.694% 20507 | 2,585 | 2,898 |
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW18, Class A-M, 6.084% 20507 | 1,430 | 1,625 |
Morgan Stanley Capital I Trust, Series 2007-IQ15, Class A-4, 5.91% 20497 | 4,000 | 4,469 |
ML-CFC Commercial Mortgage Trust, Series 2007-8, Class A-3, 5.894% 20497 | 4,000 | 4,468 |
CS First Boston Mortgage Securities Corp., Series 2004-5, Class IV-A-1, 6.00% 2034 | 846 | 896 |
CS First Boston Mortgage Securities Corp., Series 2007-C5, Class A4, 5.695% 20407 | 2,320 | 2,567 |
Commonwealth Bank of Australia 0.75% 20174 | 3,000 | 3,003 |
National Australia Bank 1.25% 20184 | 3,000 | 2,930 |
GE Commercial Mortgage Corp., Series 2005-C4, Class A-3A, 5.31% 20457 | 2,878 | 2,886 |
Citigroup-Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class A-4, 5.218% 20447 | 2,250 | 2,387 |
MASTR Alternative Loan Trust, Series 2004-2, Class 2-A-1, 6.00% 2034 | 1,919 | 2,009 |
Commercial Mortgage Trust, Series 2013-LC13, Class A-5, 4.205% 2046 | 1,270 | 1,311 |
J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP9, Class A-M, 5.372% 2047 | 1,000 | 1,059 |
Citigroup Commercial Mortgage Trust, Series 2013-CG15, Class A-4, 4.371% 2046 | 990 | 1,034 |
772,335 | ||
Federal agency bonds & notes 0.94% | ||
Freddie Mac 2.50% 2016 | 18,000 | 18,840 |
Freddie Mac 1.00% 2017 | 22,000 | 21,882 |
Freddie Mac 0.75% 2018 | 7,000 | 6,811 |
Freddie Mac, Series K711, Class A2, multifamily 1.73% 2019 | 5,000 | 4,846 |
Freddie Mac, Series K712, Class A2, multifamily 1.869% 2019 | 3,440 | 3,322 |
Freddie Mac, Series K710, Class A2, multifamily 1.883% 2019 | 3,837 | 3,766 |
Freddie Mac, Series K709, Class A2, multifamily 2.086% 2019 | 2,820 | 2,795 |
Freddie Mac 1.375% 2020 | 14,000 | 13,132 |
Freddie Mac, Series KS01, Class A1, multifamily 1.693% 20226 | 4,882 | 4,811 |
Freddie Mac, Series K019, Class A2, multifamily 2.272% 2022 | 4,000 | 3,719 |
Freddie Mac, Series K023, Class A2, multifamily 2.307% 2022 | 4,500 | 4,151 |
Freddie Mac, Series K021, Class A2, multifamily 2.396% 2022 | 3,680 | 3,438 |
Freddie Mac, Series K025, Class A2, multifamily 2.682% 2022 | 4,000 | 3,795 |
Freddie Mac, Series K030, Class A1, multifamily 2.779% 20226 | 6,806 | 6,956 |
Freddie Mac, Series K027, Class A2, multifamily 2.637% 2023 | 5,500 | 5,168 |
Freddie Mac, Series K034, Class A-1, multifamily 2.669% 20236 | 2,516 | 2,532 |
Freddie Mac, Series K028, Class A2, multifamily 3.111% 2023 | 5,900 | 5,755 |
Fannie Mae, Series 2012-M17, Class A2, multifamily 2.184% 2022 | 4,500 | 4,107 |
Fannie Mae, Series 2012-M14, Class A2, multifamily 2.301% 20227 | 2,145 | 1,974 |
Fannie Mae, Series 2012-M9, Class A2, multifamily 2.482% 2022 | 5,242 | 4,939 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Federal agency bonds & notes (continued) | (000) | (000) |
Fannie Mae, Series 2012-M5, Class A2, multifamily 2.715% 2022 | $ 4,000 | $ 3,848 |
Fannie Mae, Series 2013-M14, Class A2, multifamily 3.329% 20237 | 7,530 | 7,362 |
Fannie Mae 6.25% 2029 | 9,575 | 11,973 |
CoBank, ACB 0.843% 20224,7 | 3,805 | 3,522 |
153,444 | ||
Bonds & notes of governments outside the U.S. 0.04% | ||
Polish Government 5.25% 2014 | 1,000 | 1,001 |
Polish Government 6.375% 2019 | 2,950 | 3,455 |
Latvia (Republic of) 2.75% 2020 | 1,500 | 1,438 |
5,894 | ||
Asset-backed obligations6 0.01% | ||
Origen Manufactured Housing Contract Trust, Series 2004-B, Class A-4, 5.46% 2035 | 1,713 | 1,781 |
RAMP Trust, Series 2003-RS11, Class A-I-7, 4.828% 2033 | 392 | 399 |
2,180 | ||
Total bonds, notes & other debt instruments (cost: $3,360,730,000) | 3,372,621 | |
Short-term securities 11.14% | ||
Freddie Mac 0.07%–0.16% due 1/14–9/17/2014 | 595,600 | 595,438 |
Federal Home Loan Bank 0.05%–0.15% due 1/16–10/22/2014 | 432,000 | 431,873 |
Fannie Mae 0.08%–0.15% due 1/2–9/2/2014 | 311,400 | 311,220 |
Coca-Cola Co. 0.11%–0.13% due 1/24–3/20/20144 | 98,600 | 98,587 |
ExxonMobil Corp. 0.08% due 1/14–1/21/2014 | 69,200 | 69,196 |
National Rural Utilities Cooperative Finance Corp. 0.09%–0.10% due 1/8–1/27/2014 | 63,600 | 63,597 |
Emerson Electric Co. 0.10% due 3/3/20144 | 50,000 | 49,992 |
Federal Farm Credit Banks 0.15% due 8/25/2014 | 37,900 | 37,867 |
Wal-Mart Stores, Inc. 0.05% due 2/10/20144 | 25,400 | 25,399 |
Walt Disney Co. 0.10% due 3/25/20144 | 23,000 | 22,994 |
John Deere Financial Ltd. 0.09% due 1/23/20144 | 19,700 | 19,699 |
Medtronic Inc. 0.10% due 3/6/20144 | 19,700 | 19,696 |
NetJets Inc. 0.06% due 1/3/20144 | 18,200 | 18,200 |
Private Export Funding Corp. 0.13% due 3/19/20144 | 18,000 | 17,995 |
Jupiter Securitization Co., LLC 0.11% due 1/23/20144 | 15,700 | 15,699 |
General Electric Capital Corp. 0.05% due 1/2/2014 | 10,200 | 10,200 |
Parker-Hannifin Corp. 0.09% due 2/7/20144 | 10,000 | 9,999 |
Total short-term securities (cost: $1,817,558,000) | 1,817,651 | |
Total investment securities (cost: $12,344,220,000) | 16,539,710 | |
Other assets less liabilities | (222,017) | |
Net assets | $16,317,693 |
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
1 | Security did not produce income during the last 12 months. |
2 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous,” was $61,799,000, which represented .38% of the net assets of the fund. |
3 | Acquired through a private placement transaction exempt from registration under the Securities Act of 1933. May be subject to legal or contractual restrictions on resale. Further details on these holdings appear below. |
Percent | ||||
Cost | Value | of net | ||
Acquisition dates | (000) | (000) | assets | |
Beech Holdings, LLC | 9/14/2009–2/15/2013 | $ 25,800 | $ 19,911 | .12% |
CEVA Group PLC, Series A-2, convertible preferred | 3/10/2010–1/23/2012 | 8,674 | 7,540 | .05 |
NewPage Holdings Inc. | 6/22/2011–9/9/2011 | 4,418 | 2,219 | .02 |
Revel AC, Inc. | 2/14/2011–10/25/2012 | 8,939 | 438 | .00 |
Revel AC, Inc. (CVR) | 2/15/2011–3/15/2013 | 7,911 | 111 | .00 |
Total restricted securities | $55,742 | $30,219 | .19% |
4 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $735,953,000, which represented 4.51% of the net assets of the fund. |
5 | Index-linked bond whose principal amount moves with a government price index. |
6 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
7 | Coupon rate may change periodically. |
8 | Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $60,412,000, which represented .37% of the net assets of the fund. |
9 | Payment in kind; the issuer has the option of paying additional securities in lieu of cash. |
10 | Scheduled interest and/or principal payment was not received. |
Key to abbreviations and symbol
ADR = American Depositary Receipts
CVR = Contingent Value Rights
€ = Euros
Global Balanced FundSM
Investment portfolio
December 31, 2013
Common stocks 66.56% | ||
Value | ||
Financials 11.08% | Shares | (000) |
ORIX Corp. | 157,000 | $ 2,754 |
HSBC Holdings PLC | 221,300 | 2,427 |
Link Real Estate Investment Trust | 354,509 | 1,719 |
Bankia, SA1 | 965,000 | 1,638 |
Sumitomo Mitsui Financial Group, Inc. | 31,500 | 1,621 |
BNP Paribas SA | 19,230 | 1,499 |
JPMorgan Chase & Co. | 20,700 | 1,211 |
Prudential PLC | 53,500 | 1,187 |
AXA SA | 40,300 | 1,120 |
Banco Bilbao Vizcaya Argentaria, SA | 90,000 | 1,108 |
Wells Fargo & Co. | 22,000 | 999 |
AIA Group Ltd. | 180,000 | 903 |
Grupo Financiero Santander México, SAB de CV, Class B (ADR) | 66,000 | 900 |
Deutsche Bank AG | 18,000 | 859 |
Banco Santander, SA1 | 70,000 | 627 |
Suncorp Group Ltd. | 30,564 | 357 |
Goldman Sachs Group, Inc. | 2,000 | 354 |
21,283 | ||
Industrials 9.78% | ||
Cummins Inc. | 19,200 | 2,707 |
General Electric Co. | 93,700 | 2,626 |
Boeing Co. | 17,000 | 2,320 |
BAE Systems PLC | 257,000 | 1,851 |
KONE Oyj, Class B | 38,600 | 1,742 |
Schneider Electric SA | 19,000 | 1,657 |
Randstad Holding NV | 22,450 | 1,456 |
ASSA ABLOY AB, Class B | 22,000 | 1,162 |
Robert Half International Inc. | 25,000 | 1,050 |
Siemens AG | 6,300 | 861 |
TransDigm Group Inc.1 | 4,500 | 725 |
Deere & Co. | 7,000 | 639 |
18,796 | ||
Information technology 8.83% | ||
ASML Holding NV | 47,969 | 4,490 |
Microsoft Corp. | 100,000 | 3,743 |
OMRON Corp. | 55,000 | 2,426 |
Google Inc., Class A1 | 1,100 | 1,233 |
Texas Instruments Inc. | 24,500 | 1,076 |
Nintendo Co., Ltd. | 7,400 | 984 |
Murata Manufacturing Co., Ltd. | 11,000 | 976 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 240,000 | 850 |
STMicroelectronics NV | 75,000 | 602 |
KLA-Tencor Corp. | 9,000 | 580 |
16,960 | ||
Common stocks | ||
Value | ||
Consumer staples 8.62% | Shares | (000) |
Nestlé SA | 39,240 | $ 2,872 |
Pernod Ricard SA | 20,770 | 2,366 |
Lorillard, Inc. | 33,900 | 1,718 |
Altria Group, Inc. | 31,000 | 1,190 |
Philip Morris International Inc. | 12,700 | 1,107 |
Kimberly-Clark Corp. | 10,000 | 1,045 |
Imperial Tobacco Group PLC | 26,700 | 1,034 |
Costco Wholesale Corp. | 7,720 | 919 |
PepsiCo, Inc. | 11,000 | 912 |
British American Tobacco PLC | 15,950 | 855 |
SABMiller PLC | 14,000 | 719 |
Uni-Charm Corp. | 11,500 | 655 |
Procter & Gamble Co. | 7,800 | 635 |
Anheuser-Busch InBev NV (ADR) | 5,000 | 532 |
16,559 | ||
Health care 7.61% | ||
Merck & Co., Inc. | 72,120 | 3,610 |
Bristol-Myers Squibb Co. | 63,610 | 3,381 |
Humana Inc. | 12,780 | 1,319 |
Novartis AG | 15,160 | 1,210 |
Bayer AG | 7,200 | 1,010 |
Gilead Sciences, Inc.1 | 13,100 | 984 |
Novo Nordisk A/S, Class B | 5,000 | 916 |
Pfizer Inc. | 28,000 | 858 |
Baxter International Inc. | 12,000 | 834 |
GlaxoSmithKline PLC | 18,200 | 486 |
14,608 | ||
Consumer discretionary 7.54% | ||
Amazon.com, Inc.1 | 9,030 | 3,601 |
Home Depot, Inc. | 21,030 | 1,732 |
SES SA, Class A (FDR) | 50,700 | 1,641 |
Daimler AG | 15,380 | 1,331 |
Comcast Corp., Class A | 21,930 | 1,140 |
Tiffany & Co. | 11,000 | 1,021 |
Industria de Diseño Textil, SA | 5,770 | 951 |
General Motors Co.1 | 22,500 | 919 |
Carnival Corp., units | 19,000 | 763 |
Hyundai Mobis Co., Ltd. | 2,600 | 723 |
Nissan Motor Co., Ltd. | 80,500 | 676 |
14,498 | ||
Energy 4.68% | ||
Royal Dutch Shell PLC, Class B | 58,470 | 2,208 |
Chevron Corp. | 16,930 | 2,115 |
Kinder Morgan, Inc. | 46,300 | 1,667 |
Spectra Energy Corp | 27,800 | 990 |
Occidental Petroleum Corp. | 9,000 | 856 |
Enbridge Inc. | 15,792 | 690 |
ConocoPhillips | 6,500 | 459 |
8,985 | ||
Common stocks | ||
Value | ||
Materials 4.14% | Shares | (000) |
Dow Chemical Co. | 37,000 | $ 1,643 |
OJSC ALROSA2 | 1,253,971 | 1,334 |
OJSC ALROSA | 101,138 | 108 |
MeadWestvaco Corp. | 34,000 | 1,256 |
E.I. du Pont de Nemours and Co. | 12,000 | 780 |
Potash Corp. of Saskatchewan Inc. | 21,000 | 692 |
Nucor Corp. | 12,000 | 640 |
Rio Tinto PLC | 11,000 | 621 |
L’Air Liquide SA, bonus shares3 | 3,871 | 547 |
Cliffs Natural Resources Inc. | 13,000 | 341 |
7,962 | ||
Telecommunication services 3.14% | ||
Vodafone Group PLC | 275,000 | 1,079 |
OJSC MegaFon (GDR)2 | 31,000 | 1,038 |
Deutsche Telekom AG | 60,000 | 1,026 |
Orange | 60,000 | 743 |
Verizon Communications Inc. | 13,850 | 681 |
HKT Trust, units | 600,000 | 593 |
Telstra Corp. Ltd. | 96,500 | 452 |
Advanced Info Service PCL | 70,000 | 425 |
6,037 | ||
Utilities 1.14% | ||
EDP — Energias de Portugal, SA | 485,000 | 1,781 |
Power Assets Holdings Ltd. | 46,500 | 370 |
GDF SUEZ | 1,989 | 47 |
2,198 | ||
Total common stocks (cost: $102,574,000) | 127,886 | |
Preferred securities 0.08% | ||
Financials 0.08% | ||
PNC Financial Services Group, Inc., Series P, noncumulative depositary shares | 6,000 | 151 |
Total preferred securities (cost: $150,000) | 151 | |
Convertible securities 0.52% | ||
Principal amount | ||
Consumer staples 0.52% | (000) | |
Shoprite Holdings Ltd. 6.50% convertible notes 2017 | ZAR9,230 | 1,015 |
Total convertible securities (cost: $1,198,000) | 1,015 | |
Bonds, notes & other debt instruments 29.53% | ||
Bonds & notes of governments & government agencies outside the U.S. 14.42% | ||
Japanese Government, Series 269, 1.30% 2015 | ¥ 12,500 | 120 |
Japanese Government, Series 275, 1.40% 2015 | 10,000 | 97 |
Japanese Government, Series 296, 1.50% 2018 | 135,000 | 1,358 |
Japanese Government, Series 310, 1.00% 2020 | 88,000 | 867 |
Japanese Government, Series 136, 1.60% 2032 | 5,000 | 49 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Bonds & notes of governments & government agencies outside the U.S. (continued) | (000) | (000) |
Japanese Government, Series 21, 2.30% 2035 | ¥25,000 | $ 266 |
Japanese Government, Series 36, 2.00% 2042 | 20,000 | 202 |
United Mexican States Government, Series M10, 8.00% 2015 | MXN 1,800 | 149 |
United Mexican States Government, Series M10, 7.75% 2017 | 9,900 | 833 |
United Mexican States Government 3.50% 20174 | 1,519 | 126 |
United Mexican States Government 4.00% 20194 | 1,519 | 129 |
United Mexican States Government, Series M, 6.50% 2021 | 10,500 | 829 |
United Mexican States Government, Series M20, 10.00% 2024 | 4,300 | 421 |
United Mexican States Government, Series M30, 10.00% 2036 | 2,500 | 244 |
United Mexican States Government 4.00% 20404 | 2,531 | 199 |
Polish Government, Series 0414, 5.75% 2014 | PLN 100 | 33 |
Polish Government, Series 1017, 5.25% 2017 | 1,500 | 528 |
Polish Government, Series 1020, 5.25% 2020 | 3,250 | 1,155 |
Polish Government 5.125% 2021 | $100 | 109 |
Polish Government, Series 1021, 5.75% 2021 | PLN1,770 | 645 |
Polish Government 5.00% 2022 | $200 | 214 |
United Kingdom 2.75% 2015 | £120 | 203 |
United Kingdom 1.75% 2017 | 70 | 118 |
United Kingdom 3.75% 2020 | 75 | 134 |
United Kingdom 3.75% 2021 | 150 | 268 |
United Kingdom 1.75% 2022 | 300 | 454 |
United Kingdom 2.25% 2023 | 310 | 480 |
United Kingdom 5.00% 2025 | 100 | 194 |
United Kingdom 4.50% 2034 | 60 | 113 |
United Kingdom 4.75% 2038 | 70 | 138 |
United Kingdom 4.25% 2040 | 50 | 92 |
United Kingdom 4.25% 2046 | 70 | 130 |
Spanish Government 3.80% 2017 | € 350 | 507 |
Spanish Government 5.40% 2023 | 1,185 | 1,792 |
German Government 4.25% 2014 | 150 | 211 |
German Government, Series 6, 4.00% 2016 | 150 | 225 |
German Government, Series 8, 4.25% 2018 | 430 | 682 |
German Government 3.00% 2020 | 300 | 457 |
German Government 2.25% 2021 | 60 | 87 |
German Government 3.25% 2042 | 120 | 181 |
Swedish Government, Series 1049, 4.50% 2015 | SKr1,250 | 206 |
Swedish Government, Series 1051, 3.75% 2017 | 4,800 | 808 |
Swedish Government, Series 1047, 5.00% 2020 | 3,250 | 598 |
Swedish Government, Series 3104, 3.50% 20284 | 890 | 185 |
South Korean Government 5.50% 2017 | KRW 97,550 | 100 |
South Korean Government, Series 2106, 4.25% 2021 | 412,000 | 410 |
South Korean Government, Series 2206, 3.75% 2022 | 418,150 | 403 |
South Korean Government, Series 2303, 3.00% 2023 | 131,200 | 119 |
Irish Government 5.50% 2017 | €100 | 157 |
Irish Government 4.50% 2020 | 100 | 151 |
Irish Government 5.00% 2020 | 100 | 155 |
Irish Government 3.90% 2023 | 210 | 300 |
Irish Government 5.40% 2025 | 100 | 157 |
Netherlands Government Eurobond 3.25% 2015 | 130 | 187 |
Netherlands Government 1.00% 2017 | $100 | 100 |
Netherlands Government Eurobond 4.00% 2019 | €150 | 236 |
Netherlands Government Eurobond 5.50% 2028 | 100 | 184 |
Israeli Government 4.00% 2022 | $200 | 208 |
Israeli Government 3.15% 2023 | 400 | 383 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Bonds & notes of governments & government agencies outside the U.S. (continued) | (000) | (000) |
Italian Government 4.50% 2019 | €250 | $ 372 |
Italian Government 4.50% 2024 | 140 | 200 |
Russian Federation 6.20% 2018 | RUB 6,900 | 205 |
Russian Federation 7.50% 2018 | 11,600 | 362 |
South Africa (Republic of), Series R-2023, 7.75% 2023 | ZAR3,425 | 324 |
South Africa (Republic of), Series R-214, 6.50% 2041 | 2,400 | 169 |
Norwegian Government 4.25% 2017 | NKr2,770 | 493 |
Australian Government, Series 122, 5.25% 2019 | A$500 | 484 |
Colombia (Republic of), Series B, 5.00% 2018 | COP335,000 | 167 |
Colombia (Republic of) Global 4.375% 2021 | $200 | 207 |
Colombia (Republic of), Series B, 6.00% 2028 | COP175,000 | 81 |
Brazil (Federal Republic of) 10.00% 2018 | BRL1,135 | 444 |
Bermudan Government 5.603% 2020 | $200 | 216 |
Bermudan Government 4.854% 20242 | 200 | 200 |
Belgium (Kingdom of), Series 68, 2.25% 2023 | €300 | 402 |
Queensland Treasury Corp., Series 24, 5.75% 2024 | A$370 | 353 |
Kingdom of Denmark 4.00% 2019 | DKr1,500 | 321 |
Canadian Government 4.25% 2018 | C$300 | 311 |
Malaysian Government, Series 0313, 3.48% 2023 | MYR960 | 279 |
State of Qatar 3.125% 20172 | $250 | 263 |
Singapore (Republic of) 4.00% 2018 | S$110 | 98 |
Singapore (Republic of) 2.25% 2021 | 180 | 142 |
Lithuania (Republic of) 6.625% 2022 | $200 | 234 |
Austrian Government 3.65% 2022 | €150 | 232 |
Peru (Republic of) 7.84% 2020 | PEN480 | 196 |
French Government O.A.T. Eurobond 3.25% 2045 | €140 | 186 |
Morocco Government 4.25% 2022 | $200 | 185 |
Bahrain Government 5.50% 2020 | 175 | 181 |
Thai Government 3.625% 2023 | THB3,900 | 116 |
Canada Housing Trust 3.35% 2020 | C$100 | 99 |
Chilean Government 5.50% 2020 | CLP50,000 | 97 |
27,705 | ||
Corporate bonds & notes 8.13% | ||
Financials 2.50% | ||
Goldman Sachs Group, Inc. 5.25% 2021 | $100 | 110 |
Goldman Sachs Group, Inc. 5.75% 2022 | 70 | 79 |
Goldman Sachs Group, Inc. 3.625% 2023 | 210 | 203 |
Lloyds TSB Bank PLC 6.50% 2020 | €210 | 335 |
Bank of America Corp. 3.30% 2023 | $335 | 317 |
Citigroup Inc. 4.587% 2015 | 30 | 32 |
Citigroup Inc. 3.953% 2016 | 75 | 80 |
Citigroup Inc. 4.45% 2017 | 75 | 81 |
Citigroup Inc. 3.875% 2023 | 105 | 103 |
Westfield Group 7.125% 20182 | 50 | 59 |
Westfield Group 6.75% 20192 | 100 | 119 |
Westfield Group 4.625% 20212 | 105 | 111 |
Developers Diversified Realty Corp. 7.50% 2017 | 230 | 268 |
Barclays Bank PLC 6.00% 2018 | €50 | 78 |
Barclays Bank PLC 6.00% 2021 | 100 | 156 |
Korea Development Bank 3.875% 2017 | $200 | 211 |
Wells Fargo & Co. 4.60% 2021 | 100 | 110 |
Wells Fargo & Co., Series I, 3.50% 2022 | 100 | 100 |
Simon Property Group, LP 3.375% 2022 | 200 | 195 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Financials (continued) | (000) | (000) |
Standard Chartered PLC 3.20% 20162 | $103 | $ 108 |
Standard Chartered Bank 5.875% 2017 | €50 | 78 |
Corporate Office Properties Trust 3.60% 2023 | $200 | 181 |
Morgan Stanley 1.75% 2016 | 150 | 152 |
JPMorgan Chase & Co. 3.25% 2022 | 28 | 27 |
JPMorgan Chase & Co. 3.20% 2023 | 127 | 120 |
AvalonBay Communities, Inc. 3.625% 2020 | 100 | 101 |
AvalonBay Communities, Inc. 2.85% 2023 | 20 | 18 |
VEB Finance Ltd. 6.902% 20202 | 100 | 111 |
BNP Paribas 5.00% 2021 | 100 | 110 |
Kimco Realty Corp., Series C, 5.783% 2016 | 100 | 110 |
Prologis, Inc. 2.75% 2019 | 110 | 109 |
Boston Properties, Inc. 3.70% 2018 | 100 | 106 |
HSBC Holdings PLC 4.00% 2022 | 100 | 103 |
American International Group, Inc. 4.125% 2024 | 100 | 99 |
Bank of New York Mellon Corp. 3.95% 2025 | 100 | 99 |
PNC Financial Services Group, Inc. 2.854% 2022 | 100 | 93 |
American Campus Communities, Inc. 3.75% 2023 | 100 | 93 |
RSA Insurance Group PLC 8.50% (undated)5 | £50 | 86 |
Royal Bank of Scotland Group PLC 5.50% 2020 | €50 | 80 |
Berkshire Hathaway Inc. 3.00% 2022 | $ 75 | 72 |
4,803 | ||
Energy 1.22% | ||
Statoil ASA 3.125% 2017 | 40 | 42 |
Statoil ASA 1.95% 2018 | 25 | 25 |
Statoil ASA 3.15% 2022 | 160 | 156 |
StatoilHydro ASA 2.45% 2023 | 100 | 91 |
Statoil ASA 3.70% 2024 | 50 | 50 |
Pemex Project Funding Master Trust 5.75% 2018 | 200 | 224 |
Petróleos Mexicanos 4.875% 2022 | 50 | 52 |
Petróleos Mexicanos 6.50% 2041 | 45 | 47 |
Transocean Inc. 5.05% 2016 | 100 | 111 |
Transocean Inc. 6.375% 2021 | 155 | 174 |
Reliance Holdings Ltd. 5.40% 20222 | 250 | 253 |
Total Capital International 2.875% 2022 | 250 | 238 |
Petrobras International Finance Co. 5.375% 2021 | 170 | 169 |
Gazprom OJSC 5.875% 2015 | €100 | 147 |
Chevron Corp. 2.355% 2022 | $150 | 136 |
Kinder Morgan Energy Partners, LP 3.50% 2016 | 100 | 105 |
Williams Partners L.P. 4.50% 2023 | 100 | 99 |
Devon Energy Corp. 3.25% 2022 | 90 | 86 |
Spectra Energy Partners, LP 2.95% 2016 | 75 | 78 |
El Paso Pipeline Partners Operating Co., LLC 4.70% 2042 | 75 | 64 |
2,347 | ||
Consumer discretionary 0.87% | ||
Dollar General Corp. 1.875% 2018 | 25 | 24 |
Dollar General Corp. 3.25% 2023 | 325 | 299 |
Time Warner Inc. 4.75% 2021 | 200 | 213 |
Time Warner Inc. 4.05% 2023 | 100 | 100 |
NBCUniversal Enterprise, Inc. 1.974% 20192 | 200 | 196 |
NBCUniversal Media, LLC 4.375% 2021 | 50 | 53 |
Ford Motor Credit Co. 2.375% 2018 | 200 | 202 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Consumer discretionary (continued) | (000) | (000) |
DaimlerChrysler North America Holding Corp. 1.875% 20182 | $150 | $ 148 |
President & Fellows of Harvard College 3.619% 2037 | 150 | 128 |
Thomson Reuters Corp. 1.30% 2017 | 45 | 45 |
Thomson Reuters Corp. 4.30% 2023 | 75 | 75 |
Viacom Inc. 4.25% 2023 | 100 | 100 |
McDonald’s Corp. 3.50% 2020 | 50 | 52 |
Comcast Corp. 2.85% 2023 | 50 | 46 |
1,681 | ||
Industrials 0.83% | ||
General Electric Capital Corp. 0.873% 20145 | 65 | 65 |
General Electric Capital Corp. 2.30% 2017 | 165 | 170 |
General Electric Capital Corp. 1.625% 2018 | 400 | 396 |
General Electric Capital Corp. 3.15% 2022 | 50 | 48 |
General Electric Capital Corp. 3.10% 2023 | 100 | 95 |
General Electric Capital Corp., Series A, junior subordinated 7.125% (undated)5 | 100 | 112 |
Union Pacific Corp. 2.75% 2023 | 100 | 91 |
Union Pacific Corp. 2.95% 2023 | 200 | 185 |
United Technologies Corp. 3.10% 2022 | 215 | 210 |
Red de Carreteras de Occidente 9.00% 20286 | MXN2,000 | 139 |
Boeing Company 0.95% 2018 | $ 45 | 43 |
Burlington Northern Santa Fe LLC 3.00% 2023 | 35 | 33 |
1,587 | ||
Consumer staples 0.80% | ||
Altria Group, Inc. 4.75% 2021 | 150 | 161 |
Altria Group, Inc. 4.25% 2042 | 150 | 128 |
Wal-Mart Stores, Inc. 2.80% 2016 | 150 | 157 |
Wal-Mart Stores, Inc. 2.55% 2023 | 75 | 69 |
Kraft Foods Inc. 3.50% 2022 | 200 | 195 |
Philip Morris International Inc. 1.875% 2019 | 100 | 98 |
Philip Morris International Inc. 2.90% 2021 | 100 | 95 |
Anheuser-Busch InBev NV 0.603% 20145 | 175 | 175 |
Pernod Ricard SA 4.45% 20222 | 150 | 152 |
Coca-Cola Co. 1.80% 2016 | 85 | 87 |
CVS Caremark Corp. 4.00% 2023 | 75 | 75 |
PepsiCo, Inc. 2.50% 2016 | 50 | 52 |
Reynolds American Inc. 3.25% 2022 | 50 | 46 |
ConAgra Foods, Inc. 1.90% 2018 | 25 | 25 |
Procter & Gamble Co. 1.45% 2016 | 20 | 20 |
1,535 | ||
Telecommunication services 0.62% | ||
Verizon Communications Inc. 2.45% 2022 | 125 | 111 |
Verizon Communications Inc. 5.15% 2023 | 630 | 677 |
Verizon Communications Inc. 6.55% 2043 | 60 | 70 |
Deutsche Telekom International Finance BV 2.25% 20172 | 150 | 152 |
Deutsche Telekom International Finance BV 6.00% 2017 | €75 | 118 |
Telecom Italia Capital SA 7.175% 2019 | $ 50 | 56 |
1,184 | ||
Health care 0.45% | ||
Amgen Inc. 2.50% 2016 | 175 | 181 |
Amgen Inc. 5.375% 2043 | 190 | 195 |
AbbVie Inc. 2.90% 2022 | 160 | 150 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Health care (continued) | (000) | (000) |
Humana Inc. 3.15% 2022 | $ 100 | $ 93 |
Novartis Capital Corp. 2.90% 2015 | 50 | 52 |
Novartis Securities Investment Ltd. 5.125% 2019 | 25 | 28 |
Baxter International Inc. 3.20% 2023 | 70 | 67 |
Roche Holdings, Inc. 6.00% 20192 | 46 | 54 |
Aetna Inc. 2.75% 2022 | 50 | 46 |
866 | ||
Information technology 0.38% | ||
International Business Machines Corp. 1.95% 2016 | 200 | 205 |
International Business Machines Corp. 1.25% 2018 | 100 | 98 |
Samsung Electronics America, Inc. 1.75% 20172 | 200 | 199 |
Xerox Corp. 2.95% 2017 | 100 | 103 |
First Data Corp. 7.375% 20192 | 75 | 80 |
Cisco Systems, Inc. 0.493% 20145 | 50 | 50 |
735 | ||
Utilities 0.29% | ||
MidAmerican Energy Holdings Co. 2.00% 20182 | 100 | 98 |
Sierra Pacific Power Co., General and Refunding Mortgage Notes, Series T, 3.375% 2023 | 100 | 97 |
MidAmerican Energy Holdings Co. 3.75% 20232 | 75 | 73 |
Abu Dhabi National Energy Co. PJSC (TAQA) 6.165% 2017 | 125 | 143 |
Enersis SA 7.375% 2014 | 50 | 50 |
National Grid PLC 6.30% 2016 | 40 | 45 |
E.ON International Finance BV 5.80% 20182 | 25 | 29 |
PSEG Power LLC 2.75% 2016 | 15 | 16 |
551 | ||
Materials 0.17% | ||
E.I. du Pont de Nemours and Co. 0.666% 20145 | 115 | 115 |
ArcelorMittal 5.75% 20205 | 65 | 69 |
ArcelorMittal 6.75% 20225 | 35 | 38 |
Rio Tinto Finance (USA) Ltd. 2.50% 2016 | 50 | 52 |
BHP Billiton Finance (USA) Ltd. 3.85% 2023 | 50 | 50 |
324 | ||
Total corporate bonds & notes | 15,613 | |
U.S. Treasury bonds & notes 4.88% | ||
U.S. Treasury 4.34% | ||
U.S. Treasury 0.25% 2015 | 450 | 450 |
U.S. Treasury 1.75% 2015 | 545 | 558 |
U.S. Treasury 1.50% 2016 | 70 | 72 |
U.S. Treasury 2.00% 2016 | 70 | 72 |
U.S. Treasury 4.50% 2016 | 1,250 | 1,358 |
U.S. Treasury 1.00% 2017 | 1,320 | 1,323 |
U.S. Treasury 8.875% 2017 | 100 | 128 |
U.S. Treasury 0.625% 2018 | 200 | 193 |
U.S. Treasury 0.875% 2018 | 200 | 196 |
U.S. Treasury 1.375% 2018 | 600 | 595 |
U.S. Treasury 1.375% 2018 | 300 | 297 |
U.S. Treasury 3.75% 2018 | 180 | 197 |
U.S. Treasury 1.25% 2019 | 50 | 49 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
U.S. Treasury bonds & notes — U.S. Treasury (continued) | (000) | (000) |
U.S. Treasury 3.125% 2019 | $625 | $ 666 |
U.S. Treasury 1.375% 2020 | 150 | 142 |
U.S. Treasury 3.50% 2020 | 200 | 216 |
U.S. Treasury 2.00% 2021 | 108 | 103 |
U.S. Treasury 2.125% 2021 | 200 | 194 |
U.S. Treasury 1.625% 2022 | 200 | 180 |
U.S. Treasury 2.00% 2022 | 75 | 71 |
U.S. Treasury 1.75% 2023 | 100 | 90 |
U.S. Treasury 2.50% 2023 | 500 | 479 |
U.S. Treasury 6.50% 2026 | 50 | 67 |
U.S. Treasury 4.375% 2038 | 100 | 108 |
U.S. Treasury 3.125% 2042 | 350 | 301 |
U.S. Treasury 2.875% 2043 | 300 | 242 |
8,347 | ||
U.S. Treasury inflation-protected securities4 0.54% | ||
U.S. Treasury Inflation-Protected Security 1.875% 2015 | 300 | 317 |
U.S. Treasury Inflation-Protected Security 0.125% 2017 | 123 | 127 |
U.S. Treasury Inflation-Protected Security 0.375% 2023 | 452 | 435 |
U.S. Treasury Inflation-Protected Security 2.375% 2025 | 62 | 71 |
U.S. Treasury Inflation-Protected Security 0.75% 2042 | 103 | 83 |
1,033 | ||
Total U.S. Treasury bonds & notes | 9,380 | |
Mortgage-backed obligations6 2.10% | ||
Fannie Mae 3.00% 2027 | 495 | 506 |
Fannie Mae 2.50% 2028 | 641 | 636 |
Fannie Mae 2.00% 2029 | 75 | 72 |
Fannie Mae 3.00% 2029 | 100 | 102 |
Fannie Mae 3.50% 2029 | 140 | 146 |
Fannie Mae 4.00% 2029 | 30 | 32 |
Fannie Mae 4.50% 2041 | 114 | 122 |
Fannie Mae 5.00% 2041 | 108 | 118 |
Fannie Mae 5.00% 2041 | 41 | 45 |
Fannie Mae 3.50% 2042 | 176 | 175 |
Fannie Mae 3.00% 2043 | 297 | 283 |
Fannie Mae 4.00% 2043 | 405 | 418 |
Fannie Mae 4.00% 2043 | 335 | 346 |
Government National Mortgage Assn. 3.50% 2043 | 290 | 293 |
Government National Mortgage Assn. 4.50% 2043 | 220 | 235 |
Hilton USA Trust, Series 2013-HLF, Series A-F-X, 2.662% 20302 | 230 | 228 |
Freddie Mac 5.00% 2041 | 185 | 200 |
Nordea Hypotek AB 4.00% 2014 | SKr500 | 79 |
4,036 | ||
Total bonds, notes & other debt instruments (cost: $57,705,000) | 56,734 | |
Short-term securities 3.02% | ||
Federal Home Loan Bank 0.06% due 3/21/2014 | $2,800 | 2,799 |
Abbott Laboratories 0.11% due 2/20/20142 | 2,000 | 2,000 |
General Electric Capital Corp. 0.05% due 1/2/2014 | 1,000 | 1,000 |
Total short-term securities (cost: $5,799,000) | 5,799 | |
Total investment securities (cost: $167,426,000) | $191,585 | |
Other assets less liabilities | 552 | |
Net assets | $192,137 |
1 | Security did not produce income during the last 12 months. |
2 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $7,005,000, which represented 3.65% 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 was $547,000, which represented .28% of the net assets of the fund. |
4 | Index-linked bond whose principal amount moves with a government price index. |
5 | Coupon rate may change periodically. |
6 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
Key to abbreviations and symbols
ADR = American Depositary Receipts
FDR = Fiduciary Depositary Receipts
GDR = Global Depositary Receipts
A$ = Australian dollars
BRL = Brazilian reais
C$ = Canadian dollars
CLP = Chilean pesos
COP = Colombian pesos
DKr = Danish kroner
€ = Euros
£ = British pounds
¥ = Japanese yen
KRW = South Korean won
MXN = Mexican pesos
MYR = Malaysian ringgits
NKr = Norwegian kroner
PEN = Peruvian nuevos soles
PLN = Polish zloty
RUB = Russian rubles
SKr = Swedish kronor
S$ = Singapore dollars
THB = Thai baht
ZAR = South African rand
Bond FundSM
Investment portfolio
December 31, 2013
Bonds, notes & other debt instruments 90.69% | ||
U.S. Treasury bonds & notes 30.77% | Principal amount | Value |
U.S. Treasury 26.57% | (000) | (000) |
U.S. Treasury 1.25% 20141 | $ 26,791 | $ 26,830 |
U.S. Treasury 0.375% 2015 | 39,000 | 39,060 |
U.S. Treasury 0.25% 2016 | 13,775 | 13,692 |
U.S. Treasury 0.625% 2016 | 150,000 | 149,724 |
U.S. Treasury 0.625% 2016 | 25,000 | 25,005 |
U.S. Treasury 0.875% 2016 | 25,000 | 25,149 |
U.S. Treasury 1.00% 2016 | 117,165 | 118,181 |
U.S. Treasury 1.50% 2016 | 76,570 | 78,320 |
U.S. Treasury 1.50% 2016 | 56,775 | 58,088 |
U.S. Treasury 4.625% 2016 | 30,000 | 33,305 |
U.S. Treasury 5.125% 2016 | 12,125 | 13,439 |
U.S. Treasury 7.50% 2016 | 35,000 | 41,727 |
U.S. Treasury 0.75% 2017 | 15,000 | 14,842 |
U.S. Treasury 1.00% 2017 | 250,110 | 250,685 |
U.S. Treasury 4.50% 2017 | 6,000 | 6,697 |
U.S. Treasury 4.625% 2017 | 25,000 | 27,886 |
U.S. Treasury 8.75% 2017 | 75,000 | 94,297 |
U.S. Treasury 0.75% 2018 | 16,250 | 15,785 |
U.S. Treasury 1.00% 2018 | 12,500 | 12,224 |
U.S. Treasury 1.375% 2018 | 80,000 | 79,372 |
U.S. Treasury 1.00% 2019 | 30,000 | 28,298 |
U.S. Treasury 1.125% 2019 | 30,000 | 28,785 |
U.S. Treasury 1.25% 2019 | 47,500 | 45,993 |
U.S. Treasury 2.00% 2020 | 17,000 | 16,530 |
U.S. Treasury 8.75% 2020 | 40,000 | 56,106 |
U.S. Treasury 3.625% 2021 | 7,500 | 8,085 |
U.S. Treasury 1.625% 2022 | 257,451 | 232,048 |
U.S. Treasury 1.625% 2022 | 84,915 | 77,034 |
U.S. Treasury 1.75% 2023 | 75,766 | 68,173 |
U.S. Treasury 2.00% 2023 | 105,034 | 97,271 |
U.S. Treasury 2.50% 2023 | 255,200 | 244,632 |
U.S. Treasury 2.75% 2023 | 126,250 | 123,301 |
U.S. Treasury 7.625% 2025 | 20,000 | 28,531 |
U.S. Treasury 6.00% 2026 | 25,975 | 33,104 |
U.S. Treasury 6.50% 2026 | 20,275 | 27,032 |
U.S. Treasury 6.125% 2027 | 25,000 | 32,463 |
U.S. Treasury 3.75% 2041 | 25,190 | 24,466 |
U.S. Treasury 3.00% 2042 | 8,749 | 7,308 |
U.S. Treasury 2.875% 2043 | 13,825 | 11,161 |
U.S. Treasury 3.625% 2043 | 158,100 | 148,725 |
2,463,354 | ||
U.S. Treasury inflation-protected securities2 4.20% | ||
U.S. Treasury Inflation-Protected Security 0.50% 2015 | 40,610 | 41,529 |
U.S. Treasury Inflation-Protected Security 1.625% 2015 | 51,271 | 52,845 |
U.S. Treasury Inflation-Protected Security 1.875% 2015 | 41,313 | 43,572 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
U.S. Treasury bonds & notes — U.S. Treasury inflation-protected securities2 (continued) | (000) | (000) |
U.S. Treasury Inflation-Protected Security 2.375% 2017 | $ 34,746 | $ 38,254 |
U.S. Treasury Inflation-Protected Security 0.125% 2018 | 25,260 | 25,769 |
U.S. Treasury Inflation-Protected Security 0.125% 2022 | 6,348 | 6,079 |
U.S. Treasury Inflation-Protected Security 0.125% 2023 | 3,253 | 3,071 |
U.S. Treasury Inflation-Protected Security 0.375% 2023 | 57,107 | 55,040 |
U.S. Treasury Inflation-Protected Security 2.00% 2026 | 4,707 | 5,213 |
U.S. Treasury Inflation-Protected Security 0.75% 2042 | 12,404 | 9,969 |
U.S. Treasury Inflation-Protected Security 0.625% 2043 | 141,159 | 108,483 |
389,824 | ||
Total U.S. Treasury bonds & notes | 2,853,178 | |
Corporate bonds & notes 30.75% | ||
Financials 7.31% | ||
Bank of America Corp. 3.75% 2016 | 3,415 | 3,632 |
Merrill Lynch & Co., Inc. 4.625% 2018 | €7,240 | 10,830 |
Bank of America Corp. 5.65% 2018 | $ 5,270 | 6,002 |
Bank of America Corp. 2.60% 2019 | 15,745 | 15,824 |
Bank of America Corp. 7.625% 2019 | 4,520 | 5,610 |
Bank of America Corp. 3.30% 2023 | 15,415 | 14,592 |
Bank of America Corp. 4.10% 2023 | 1,495 | 1,502 |
Morgan Stanley 3.80% 2016 | 5,000 | 5,292 |
Morgan Stanley 2.125% 2018 | 23,980 | 23,786 |
Morgan Stanley, Series F, 5.625% 2019 | 16,350 | 18,597 |
Goldman Sachs Group, Inc. 2.90% 2018 | 20,350 | 20,721 |
Goldman Sachs Group, Inc. 7.50% 2019 | 2,725 | 3,321 |
Goldman Sachs Group, Inc. 5.75% 2022 | 5,000 | 5,630 |
Goldman Sachs Group, Inc. 3.625% 2023 | 14,680 | 14,220 |
Goldman Sachs Group, Inc. 6.25% 2041 | 2,970 | 3,423 |
JPMorgan Chase & Co. 3.40% 2015 | 7,000 | 7,272 |
JPMorgan Chase & Co. 1.625% 2018 | 27,560 | 27,002 |
JPMorgan Chase & Co., Series Q, junior subordinated 5.15% (undated)4 | 365 | 329 |
HSBC Bank PLC 1.50% 20185 | 16,535 | 16,155 |
HSBC USA Inc. 2.625% 2018 | 6,275 | 6,385 |
HSBC Holdings PLC 4.875% 2020 | 6,530 | 7,049 |
Prologis, Inc. 6.125% 2016 | 4,485 | 5,054 |
Prologis, Inc. 2.75% 2019 | 4,380 | 4,352 |
Prologis, Inc. 3.35% 2021 | 15,750 | 15,299 |
Prologis, Inc. 4.25% 2023 | 4,660 | 4,605 |
Westfield Group 7.125% 20185 | 9,765 | 11,600 |
Westfield Group 6.75% 20195 | 2,295 | 2,731 |
Westfield Group 4.625% 20215 | 4,170 | 4,402 |
Westfield Group 3.375% 20225 | 7,160 | 6,781 |
Developers Diversified Realty Corp. 5.50% 2015 | 1,105 | 1,168 |
Developers Diversified Realty Corp. 9.625% 2016 | 10,520 | 12,339 |
Developers Diversified Realty Corp. 7.50% 2017 | 3,510 | 4,093 |
Developers Diversified Realty Corp. 4.75% 2018 | 775 | 836 |
Developers Diversified Realty Corp. 7.875% 2020 | 3,155 | 3,899 |
Developers Diversified Realty Corp. 3.375% 2023 | 1,200 | 1,093 |
Hospitality Properties Trust 7.875% 2014 | 1,700 | 1,714 |
Hospitality Properties Trust 5.125% 2015 | 765 | 783 |
Hospitality Properties Trust 6.30% 2016 | 300 | 324 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Financials (continued) | (000) | (000) |
Hospitality Properties Trust 5.625% 2017 | $3,835 | $ 4,168 |
Hospitality Properties Trust 6.70% 2018 | 7,920 | 8,889 |
Hospitality Properties Trust 5.00% 2022 | 3,145 | 3,197 |
Hospitality Properties Trust 4.50% 2023 | 3,705 | 3,580 |
HBOS PLC 6.75% 20185 | 8,315 | 9,443 |
HBOS PLC 4.375% 20194 | €965 | 1,335 |
HBOS PLC 6.00% 20335 | $ 5,677 | 5,593 |
American International Group, Inc. 3.80% 2017 | 9,300 | 9,936 |
American International Group, Inc. 3.375% 2020 | 1,155 | 1,162 |
American International Group, Inc. 4.125% 2024 | 4,835 | 4,809 |
Kimco Realty Corp., Series C, 4.82% 2014 | 3,780 | 3,845 |
Kimco Realty Corp., Series C, 4.904% 2015 | 1,120 | 1,170 |
Kimco Realty Corp. 5.70% 2017 | 4,250 | 4,750 |
Kimco Realty Corp. 6.875% 2019 | 3,975 | 4,742 |
Goodman Funding Pty Ltd. 6.00% 20225 | 13,300 | 14,393 |
Regions Financial Corp. 7.75% 2014 | 1,572 | 1,659 |
Regions Financial Corp. 5.20% 2015 | 205 | 215 |
Regions Financial Corp. 5.75% 2015 | 590 | 629 |
Regions Financial Corp. 2.00% 2018 | 11,475 | 11,118 |
Citigroup Inc. 4.75% 2015 | 6,016 | 6,332 |
Citigroup Inc. 1.30% 2016 | 1,250 | 1,254 |
Citigroup Inc. 8.50% 2019 | 4,219 | 5,410 |
Citigroup Inc. 3.875% 2023 | 200 | 197 |
Simon Property Group, LP 4.20% 2015 | 2,430 | 2,502 |
Simon Property Group, LP 5.875% 2017 | 2,500 | 2,805 |
Simon Property Group, LP 10.35% 2019 | 5,655 | 7,656 |
Rabobank Nederland/FI 4.625% 2023 | 12,730 | 12,824 |
American Express Co. 6.15% 2017 | 2,500 | 2,886 |
American Express Co. 1.55% 2018 | 8,500 | 8,304 |
American Express Co. 2.65% 2022 | 1,520 | 1,411 |
CNA Financial Corp. 6.50% 2016 | 3,750 | 4,220 |
CNA Financial Corp. 7.35% 2019 | 1,800 | 2,186 |
CNA Financial Corp. 5.875% 2020 | 1,900 | 2,168 |
CNA Financial Corp. 7.25% 2023 | 3,000 | 3,598 |
PNC Financial Services Group, Inc. 2.854% 2022 | 12,100 | 11,241 |
Barclays Bank PLC 6.00% 2021 | €6,775 | 10,557 |
CIT Group Inc., Series C, 4.75% 20155 | $5,550 | 5,765 |
CIT Group Inc. 5.00% 2017 | 1,000 | 1,072 |
CIT Group Inc., Series C, 5.50% 20195 | 2,750 | 2,963 |
UniCredito Italiano SpA 6.00% 20175 | 8,942 | 9,555 |
AvalonBay Communities, Inc. 3.625% 2020 | 5,885 | 5,951 |
AvalonBay Communities, Inc. 2.85% 2023 | 3,370 | 3,037 |
Korea Development Bank 8.00% 2014 | 8,750 | 8,781 |
International Lease Finance Corp. 4.875% 2015 | 3,385 | 3,516 |
International Lease Finance Corp. 2.193% 20164 | 5,000 | 5,050 |
Standard Chartered PLC 3.85% 20155 | 7,600 | 7,906 |
American Tower Corp. 3.40% 2019 | 7,525 | 7,666 |
UnumProvident Finance Co. PLC 6.85% 20155 | 1,500 | 1,642 |
Unum Group 7.125% 2016 | 3,400 | 3,853 |
Unum Group 5.625% 2020 | 1,100 | 1,206 |
UDR, Inc., Series A, 5.25% 2015 | 5,400 | 5,626 |
UDR, Inc. 3.70% 2020 | 500 | 503 |
ERP Operating LP 5.25% 2014 | 3,000 | 3,096 |
ERP Operating LP 7.125% 2017 | 380 | 445 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Financials (continued) | (000) | (000) |
ERP Operating LP 3.00% 2023 | $2,735 | $2,498 |
CME Group Inc. 5.30% 2043 | 5,730 | 5,998 |
QBE Insurance Group Ltd. 2.40% 20185 | 6,110 | 5,873 |
Brandywine Operating Partnership, LP 4.95% 2018 | 5,295 | 5,697 |
Host Hotels & Resorts LP 5.875% 2019 | 1,025 | 1,113 |
Host Hotels & Resorts LP 6.00% 2021 | 3,730 | 4,062 |
Host Hotels & Resorts LP 3.75% 2023 | 250 | 232 |
Royal Bank of Canada 1.50% 2018 | 5,370 | 5,268 |
Realogy Corp., Letter of Credit, 4.25% 20163,4,7 | 284 | 284 |
Realogy Corp. 7.875% 20195 | 3,650 | 4,024 |
Realogy Corp., Term Loan B, 4.50% 20203,4,7 | 853 | 863 |
Intercontinentalexchange, Inc. 2.50% 2018 | 1,295 | 1,305 |
Intercontinentalexchange, Inc. 4.00% 2023 | 3,465 | 3,487 |
Liberty Mutual Group Inc. 6.70% 20165 | 3,750 | 4,241 |
Liberty Mutual Group Inc. 4.25% 20235 | 470 | 454 |
ACE INA Holdings Inc. 5.875% 2014 | 1,080 | 1,107 |
ACE INA Holdings Inc. 2.60% 2015 | 2,580 | 2,670 |
ACE INA Holdings Inc. 2.70% 2023 | 895 | 820 |
iStar Financial Inc., Term Loan B, 4.50% 20173,4,7 | 2,828 | 2,849 |
iStar Financial Inc., 4.875% 2018 | 1,650 | 1,652 |
Alexandria Real Estate Equities, Inc. 3.90% 2023 | 4,740 | 4,418 |
New York Life Global Funding 2.10% 20195 | 3,600 | 3,562 |
MetLife Capital Trust IV, junior subordinated 7.875% 20674,5 | 2,505 | 2,887 |
MetLife Capital Trust X, junior subordinated 9.25% 20684,5 | 300 | 387 |
AXA SA 8.60% 2030 | 2,625 | 3,239 |
Discover Financial Services 2.00% 2018 | 1,730 | 1,700 |
Discover Financial Services 3.85% 2022 | 470 | 446 |
Discover Financial Services 4.20% 2023 | 1,100 | 1,085 |
Prudential Financial, Inc. 2.30% 2018 | 2,175 | 2,163 |
Prudential Financial, Inc. 4.50% 2021 | 1,000 | 1,065 |
Bank of New York Mellon Corp. 2.10% 2019 | 1,700 | 1,686 |
Bank of New York Mellon Corp. 3.95% 2025 | 1,500 | 1,486 |
Berkshire Hathaway Inc. 2.90% 2020 | 1,100 | 1,092 |
Berkshire Hathaway Inc. 4.40% 2042 | 1,735 | 1,587 |
Berkshire Hathaway Finance Corp. 4.30% 2043 | 350 | 315 |
Northern Trust Corp. 4.625% 2014 | 2,825 | 2,866 |
DCT Industrial Trust Inc. 4.50% 20235 | 2,900 | 2,819 |
American Campus Communities, Inc. 3.75% 2023 | 3,000 | 2,785 |
Ryman Hospitality Properties, Inc. 5.00% 2021 | 2,800 | 2,779 |
Assicurazioni Generali SpA 10.125% 2042 | €1,500 | 2,666 |
Royal Bank of Scotland Group PLC, junior subordinated 6.99% (undated)4,5,6 | $2,450 | 2,634 |
BNP Paribas 2.40% 2018 | 2,600 | 2,607 |
UBS AG 5.75% 2018 | 2,240 | 2,573 |
RSA Insurance Group PLC 9.375% 20394 | £1,275 | 2,502 |
Leucadia National Corp. 5.50% 2023 | $2,040 | 2,039 |
Monumental Global Funding III 5.25% 20145 | 2,000 | 2,003 |
BPCE SA group 2.50% 2018 | 1,900 | 1,891 |
Genworth Holdings, Inc. 4.90% 2023 | 1,420 | 1,420 |
Genworth Holdings, Inc. 4.80% 2024 | 250 | 247 |
Crescent Resources 10.25% 20175 | 1,350 | 1,475 |
US Bancorp.1.95% 2018 | 1,150 | 1,145 |
BBVA Bancomer SA 6.50% 20215 | 1,075 | 1,140 |
HSBK (Europe) BV 7.25% 20215 | 935 | 992 |
Allstate Corp. 3.15% 2023 | 685 | 650 |
Allstate Corp. 4.50% 2043 | 315 | 298 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Financials (continued) | (000) | (000) |
FelCor Lodging Trust Inc. 5.625% 2023 | $ 825 | $ 806 |
Essex Portfolio L.P. 3.25% 2023 | 685 | 620 |
Corporate Office Properties LP 5.25% 2024 | 575 | 584 |
Piedmont Operating Partnership LP 3.40% 2023 | 365 | 324 |
Santander Issuances, SA Unipersonal 6.50% 20194,5 | 200 | 205 |
677,749 | ||
Energy 3.95% | ||
Enbridge Energy Partners, LP, Series B, 6.50% 2018 | 7,940 | 9,246 |
Enbridge Energy Partners, LP 9.875% 2019 | 10,500 | 13,593 |
Enbridge Energy Partners, LP 5.20% 2020 | 5,655 | 6,072 |
Enbridge Energy Partners, LP 4.20% 2021 | 9,025 | 9,083 |
StatoilHydro ASA 2.90% 2014 | 3,110 | 3,173 |
Statoil ASA 3.125% 2017 | 5,000 | 5,251 |
Statoil ASA 0.531% 20184 | 5,275 | 5,281 |
Statoil ASA 1.95% 2018 | 6,640 | 6,587 |
Statoil ASA 3.70% 2024 | 9,050 | 8,988 |
Gaz Capital SA, Series 7, 6.212% 2016 | 2,360 | 2,608 |
Gazprom OJSC, Series 9, 6.51% 2022 | 23,275 | 25,108 |
Kinder Morgan Energy Partners, LP 6.85% 2020 | 7,650 | 9,096 |
Kinder Morgan Energy Partners, LP 3.50% 2023 | 6,085 | 5,589 |
Kinder Morgan Energy Partners, LP 4.15% 2024 | 6,375 | 6,170 |
Kinder Morgan Energy Partners, LP 6.50% 2037 | 900 | 986 |
Kinder Morgan Energy Partners, LP 6.95% 2038 | 3,500 | 4,022 |
Kinder Morgan Energy Partners, LP 5.00% 2043 | 525 | 485 |
TransCanada PipeLines Ltd. 6.50% 2018 | 10,900 | 12,835 |
TransCanada PipeLines Ltd., junior subordinated 6.35% 20674 | 11,145 | 11,453 |
Devon Energy Corp. 1.20% 2016 | 400 | 400 |
Devon Energy Corp. 2.25% 2018 | 8,370 | 8,287 |
Devon Energy Corp. 3.25% 2022 | 12,650 | 12,066 |
Devon Energy Corp. 4.75% 2042 | 735 | 682 |
BP Capital Markets PLC 0.658% 20164 | 14,560 | 14,632 |
Anadarko Petroleum Corp. 6.375% 2017 | 10,850 | 12,462 |
Anadarko Petroleum Corp. 8.70% 2019 | 1,260 | 1,596 |
Transocean Inc. 2.50% 2017 | 2,090 | 2,113 |
Transocean Inc. 6.375% 2021 | 8,170 | 9,183 |
Transocean Inc. 3.80% 2022 | 1,365 | 1,294 |
Transocean Inc. 7.35% 2041 | 365 | 440 |
Williams Partners L.P. and Williams Partners Finance Corp. 3.80% 2015 | 2,950 | 3,049 |
Williams Partners L.P. and Williams Partners Finance Corp. 5.25% 2020 | 6,035 | 6,601 |
Williams Partners L.P. 3.35% 2022 | 1,540 | 1,430 |
Williams Partners L.P. 4.50% 2023 | 500 | 497 |
Odebrecht Drilling Norbe VIII/IX Ltd 6.35% 20213,5 | 2,160 | 2,225 |
Odebrecht Offshore Drilling Finance Ltd. 6.75% 20223,5 | 9,048 | 9,284 |
Spectra Energy Partners, LP 2.95% 2018 | 1,615 | 1,638 |
Spectra Energy Partners, LP 4.75% 2024 | 9,525 | 9,713 |
Shell International Finance BV 4.00% 2014 | 4,860 | 4,899 |
Shell International Finance BV 3.10% 2015 | 5,000 | 5,191 |
Shell International Finance BV 3.40% 2023 | 800 | 780 |
Chevron Corp. 2.355% 2022 | 5,000 | 4,550 |
Chevron Corp. 3.191% 2023 | 6,150 | 5,906 |
Enterprise Products Operating LLC 5.20% 2020 | 1,260 | 1,402 |
Enterprise Products Operating LLC 4.05% 2022 | 5,000 | 5,069 |
Enterprise Products Operating LLC 3.35% 2023 | 1,475 | 1,402 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Energy (continued) | (000) | (000) |
Enterprise Products Operating LLC 4.85% 2044 | $ 900 | $ 847 |
Enbridge Inc. 4.00% 2023 | 7,630 | 7,496 |
Petrobras International Finance Co. 5.75% 2020 | 1,520 | 1,570 |
Petrobras International Finance Co. 5.375% 2021 | 3,180 | 3,168 |
Petrobras Global Finance Co. 4.375% 2023 | 600 | 540 |
Petrobras International Finance Co. 6.875% 2040 | 2,240 | 2,135 |
Woodside Finance Ltd. 4.60% 20215 | 6,535 | 6,845 |
NGPL PipeCo LLC 7.119% 20175 | 2,025 | 1,843 |
NGPL PipeCo LLC 9.625% 20195 | 4,850 | 4,765 |
Peabody Energy Corp. 6.00% 2018 | 3,300 | 3,531 |
Peabody Energy Corp. 6.25% 2021 | 2,200 | 2,233 |
CONSOL Energy Inc. 8.25% 2020 | 4,900 | 5,329 |
Husky Energy Inc. 7.25% 2019 | 3,390 | 4,093 |
Diamond Offshore Drilling, Inc. 4.875% 2043 | 4,125 | 4,049 |
Sabine Pass Liquefaction, LLC 5.625% 20215 | 3,000 | 2,947 |
Sabine Pass Liquefaction, LLC 5.625% 2023%5 | 1,000 | 940 |
Total Capital International 2.70% 2023 | 1,895 | 1,749 |
Total Capital Canada Ltd. 2.75% 2023 | 2,140 | 1,978 |
Canadian Natural Resources Ltd. 3.45% 2021 | 3,440 | 3,381 |
Laredo Petroleum, Inc. 9.50% 2019 | 2,850 | 3,199 |
Regency Energy Partners LP and Regency Energy Finance Corp. 6.50% 2021 | 3,000 | 3,195 |
QGOG Atlantic/Alaskan Rigs Ltd. 5.25% 20193,5 | 2,725 | 2,834 |
Samson Investment Co., Term Loan B, 5.00% 20183,4,7 | 150 | 151 |
Samson Investment Co. 10.50% 20205 | 2,375 | 2,601 |
Alpha Natural Resources, Inc. 9.75% 2018 | 1,000 | 1,065 |
Alpha Natural Resources, Inc. 6.00% 2019 | 503 | 436 |
Alpha Natural Resources, Inc. 6.25% 2021 | 1,425 | 1,225 |
Cenovus Energy Inc. 3.80% 2023 | 1,800 | 1,755 |
Cenovus Energy Inc. 5.20% 2043 | 950 | 942 |
Arch Coal, Inc. 7.00% 2019 | 1,875 | 1,500 |
Arch Coal, Inc. 7.25% 2021 | 1,525 | 1,174 |
Energy Transfer Partners, L.P. 5.20% 2022 | 2,500 | 2,633 |
PDC Energy Inc. 7.75% 2022 | 2,275 | 2,468 |
Ras Laffan Liquefied Natural Gas III 5.832% 20163 | 1,034 | 1,101 |
Ras Laffan Liquefied Natural Gas II 5.298% 20203 | 778 | 838 |
Western Gas Partners LP 4.00% 2022 | 1,700 | 1,623 |
Denbury Resources Inc. 4.625% 2023 | 1,500 | 1,361 |
Oasis Petroleum Inc. 6.875% 20225 | 1,125 | 1,198 |
Apache Corp. 4.25% 2044 | 1,000 | 899 |
Harvest Operations Corp. 2.125% 20185 | 840 | 820 |
Halliburton Co. 3.50% 2023 | 600 | 582 |
Petróleos Mexicanos 4.875% 2024 | 420 | 421 |
365,877 | ||
Consumer discretionary 3.45% | ||
Dollar General Corp. 4.125% 2017 | 3,333 | 3,540 |
Dollar General Corp. 1.875% 2018 | 6,667 | 6,453 |
Dollar General Corp. 3.25% 2023 | 25,461 | 23,429 |
DaimlerChrysler North America Holding Corp. 1.25% 20165 | 7,000 | 7,008 |
DaimlerChrysler North America Holding Corp. 1.45% 20165 | 2,940 | 2,959 |
DaimlerChrysler North America Holding Corp. 2.625% 20165 | 8,000 | 8,278 |
DaimlerChrysler North America Holding Corp. 1.102% 20184,5 | 7,500 | 7,549 |
DaimlerChrysler North America Holding Corp. 2.375% 20185 | 1,100 | 1,098 |
Staples, Inc. 9.75% 2014 | 23,559 | 23,633 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Consumer discretionary (continued) | (000) | (000) |
NBCUniversal Enterprise, Inc. 0.929% 20184,5 | $ 2,550 | $ 2,562 |
NBCUniversal Media, LLC 5.15% 2020 | 10,000 | 11,180 |
NBCUniversal Media, LLC 2.875% 2023 | 2,500 | 2,315 |
NBC Universal Enterprise, Inc. 5.25% (undated)5 | 2,375 | 2,363 |
Time Warner Inc. 4.05% 2023 | 9,780 | 9,755 |
AOL Time Warner Inc. 7.625% 2031 | 1,750 | 2,215 |
Time Warner Inc. 6.20% 2040 | 5,450 | 6,005 |
Time Warner Inc. 5.35% 2043 | 100 | 101 |
Viacom Inc. 2.50% 2018 | 1,100 | 1,110 |
Viacom Inc. 4.25% 2023 | 6,975 | 6,963 |
Viacom Inc. 5.85% 2043 | 5,450 | 5,730 |
Comcast Corp. 5.85% 2015 | 4,525 | 4,953 |
Comcast Corp. 6.30% 2017 | 1,880 | 2,191 |
Comcast Corp. 5.15% 2020 | 2,500 | 2,790 |
Comcast Corp. 6.95% 2037 | 630 | 775 |
Comcast Corp. 4.65% 2042 | 675 | 628 |
Comcast Corp. 4.50% 2043 | 1,400 | 1,265 |
News America Inc. 4.50% 2021 | 7,930 | 8,502 |
News America Inc. 3.00% 2022 | 1,345 | 1,265 |
News America Inc. 4.00% 20235 | 1,100 | 1,088 |
News America Inc. 6.15% 2037 | 1,000 | 1,099 |
Cox Communications, Inc. 5.45% 2014 | 480 | 502 |
Cox Communications, Inc. 2.95% 20235 | 11,150 | 9,747 |
MGM Resorts International 5.875% 2014 | 3,200 | 3,220 |
MGM Resorts International 6.875% 2016 | 1,000 | 1,105 |
MGM Resorts International 7.50% 2016 | 1,875 | 2,109 |
MGM Resorts International 6.75% 2020 | 875 | 938 |
MGM Resorts International 7.75% 2022 | 2,000 | 2,245 |
RCI Banque 3.50% 20185 | 9,180 | 9,392 |
Time Warner Cable Inc. 7.50% 2014 | 1,185 | 1,205 |
Time Warner Cable Inc. 8.25% 2014 | 7,925 | 7,993 |
Macy’s Retail Holdings, Inc. 7.875% 20154 | 7,354 | 8,106 |
Home Depot, Inc. 4.40% 2021 | 7,500 | 8,102 |
Ford Motor Credit Co. 2.375% 2018 | 7,000 | 7,073 |
Neiman Marcus Group LTD Inc., Term Loan B, 5.00% 20203,4,7 | 5,000 | 5,070 |
Neiman Marcus Group LTD Inc. 8.00% 20215 | 825 | 866 |
Neiman Marcus Group LTD Inc. 8.75% 20214,5,9 | 675 | 710 |
Citycenter, Term Loan B, 5.00% 20203,4,7 | 6,000 | 6,099 |
Walt Disney Co. 5.50% 2019 | 5,000 | 5,695 |
Limited Brands, Inc. 7.00% 2020 | 1,192 | 1,344 |
Limited Brands, Inc. 6.625% 2021 | 3,724 | 4,106 |
PETCO Animal Supplies, Inc. 9.25% 20185 | 5,000 | 5,388 |
Michaels Stores, Inc. 7.75% 2018 | 3,400 | 3,706 |
Michaels Stores, Inc. 5.875% 20205 | 1,500 | 1,511 |
Volkswagen International Finance NV 4.00% 20205 | 4,200 | 4,411 |
Boyd Gaming Corp. 9.125% 2018 | 3,600 | 3,933 |
Hilton Worldwide, Term Loan B, 4.00% 20203,4,7 | 2,388 | 2,410 |
Hilton Hotels Corp. 5.625% 20215 | 1,350 | 1,403 |
Needle Merger Sub Corp. 8.125% 20195 | 3,500 | 3,679 |
Target Corp. 6.00% 2018 | 3,000 | 3,466 |
Cinemark USA, Inc. 5.125% 2022 | 3,250 | 3,161 |
Cinemark USA, Inc. 4.875% 2023 | 200 | 189 |
Mohegan Tribal Gaming Authority 11.00% 20184,5,9 | 3,300 | 3,319 |
J.C. Penney Co., Inc. 5.75% 2018 | 3,859 | 3,203 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Consumer discretionary (continued) | (000) | (000) |
Mediacom LLC and Mediacom Capital Corp. 9.125% 2019 | $1,850 | $ 2,010 |
Mediacom LLC and Mediacom Capital Corp. 7.25% 2022 | 975 | 1,038 |
Cequel Communications Holdings I, LLC and Cequel Capital Corp. 6.375% 20205 | 2,725 | 2,807 |
Univision Communications Inc., Term Loan C3, 4.00% 20203,4,7 | 2,362 | 2,379 |
Univision Communications Inc. 5.125% 20235 | 115 | 115 |
Six Flags Entertainment Corp. 5.25% 20215 | 2,500 | 2,450 |
General Motors Financial Co. 3.25% 20185 | 1,700 | 1,704 |
General Motors Financial Co. 6.75% 2018 | 300 | 344 |
Thomson Reuters Corp. 1.30% 2017 | 435 | 433 |
Thomson Reuters Corp. 4.30% 2023 | 1,230 | 1,236 |
Thomson Reuters Corp. 5.65% 2043 | 285 | 290 |
DISH DBS Corp. 4.625% 2017 | 1,050 | 1,103 |
DISH DBS Corp. 7.875% 2019 | 700 | 803 |
Cumulus Media Inc., Term Loan B, 4.25% 20203,4,7 | 1,805 | 1,821 |
Stackpole Intl. 7.75% 20215 | 1,725 | 1,803 |
Toys “R” Us Property Co. II, LLC 8.50% 2017 | 800 | 828 |
Toys “R” Us-Delaware, Inc., Term Loan B2, 5.25% 20183,4,7 | 1,125 | 953 |
Playa Resorts Holding BV, Term Loan B, 4.75% 20193,4,7 | 673 | 683 |
Playa Resorts Holding BV 8.00% 20205 | 950 | 1,013 |
Burlington Coat Factory Warehouse Corp. 10.00% 2019 | 1,475 | 1,669 |
Starbucks Corp. 2.00% 2018 | 1,635 | 1,622 |
Gannett Co., Inc. 5.125% 20195 | 1,130 | 1,178 |
Gannett Co., Inc. 6.375% 20235 | 340 | 353 |
Schaeffler Holding Finance BV 6.875% 20184,9 | €1,000 | 1,477 |
Laureate Education, Inc. 9.25% 20195 | $1,275 | 1,393 |
Sally Holdings LLC and Sally Capital Inc. 6.875% 2019 | 1,200 | 1,332 |
Seminole Tribe of Florida 7.804% 20203,5 | 850 | 939 |
Carnival Corp. 3.95% 2020 | 800 | 801 |
Weather Company, Term Loan, 7.00% 20203,4,7 | 500 | 515 |
Grupo Televisa, SAB 7.25% 2043 | MXN6,080 | 379 |
319,679 | ||
Consumer staples 3.26% | ||
Altria Group, Inc. 2.85% 2022 | $ 6,250 | 5,756 |
Altria Group, Inc. 2.95% 2023 | 945 | 859 |
Altria Group, Inc. 4.00% 2024 | 2,850 | 2,787 |
Altria Group, Inc. 9.95% 2038 | 3,200 | 4,882 |
Altria Group, Inc. 10.20% 2039 | 3,100 | 4,838 |
Altria Group, Inc. 4.50% 2043 | 3,735 | 3,301 |
Altria Group, Inc. 5.375% 2044 | 16,600 | 16,673 |
ConAgra Foods, Inc. 1.30% 2016 | 8,350 | 8,368 |
ConAgra Foods, Inc. 1.90% 2018 | 8,025 | 7,882 |
ConAgra Foods, Inc. 3.20% 2023 | 17,340 | 16,104 |
ConAgra Foods, Inc. 4.65% 2043 | 1,900 | 1,746 |
Philip Morris International Inc. 1.875% 2019 | 18,690 | 18,277 |
Philip Morris International Inc. 3.60% 2023 | 4,465 | 4,323 |
Philip Morris International Inc. 4.125% 2043 | 200 | 175 |
Philip Morris International Inc. 4.875% 2043 | 250 | 248 |
Coca-Cola Co. 1.50% 2015 | 8,110 | 8,267 |
Coca-Cola Co. 1.65% 2018 | 1,500 | 1,481 |
Coca-Cola Co. 2.45% 2020 | 2,800 | 2,721 |
Coca-Cola Co. 3.15% 2020 | 6,285 | 6,378 |
Coca-Cola Co. 3.20% 2023 | 3,950 | 3,801 |
Reynolds American Inc. 3.25% 2022 | 4,500 | 4,149 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Consumer staples (continued) | (000) | (000) |
Reynolds American Inc. 4.85% 2023 | $ 6,850 | $ 7,074 |
Reynolds American Inc. 6.15% 2043 | 10,475 | 11,314 |
Pernod Ricard SA 2.95% 20175 | 1,100 | 1,136 |
Pernod Ricard SA 4.45% 20225 | 20,720 | 20,966 |
British American Tobacco International Finance PLC 2.125% 20175 | 3,025 | 3,060 |
British American Tobacco International Finance PLC 9.50% 20185 | 14,137 | 18,627 |
Kroger Co. 7.50% 2014 | 5,650 | 5,663 |
Kroger Co. 3.90% 2015 | 7,500 | 7,898 |
Kroger Co. 5.15% 2043 | 2,950 | 2,878 |
Kraft Foods Inc. 1.625% 2015 | 3,880 | 3,931 |
Kraft Foods Inc. 2.25% 2017 | 3,485 | 3,530 |
Kraft Foods Inc. 3.50% 2022 | 6,650 | 6,483 |
Kraft Foods Inc. 5.00% 2042 | 470 | 463 |
Anheuser-Busch InBev NV 3.625% 2015 | 2,525 | 2,627 |
Anheuser-Busch InBev NV 4.125% 2015 | 10,000 | 10,379 |
WM. Wrigley Jr. Co 2.40% 20185 | 500 | 497 |
WM. Wrigley Jr. Co. 2.90% 20195 | 500 | 496 |
WM. Wrigley Jr. Co 3.375% 20205 | 11,980 | 11,846 |
SABMiller Holdings Inc. 2.45% 20175 | 7,410 | 7,591 |
SABMiller Holdings Inc. 2.20% 20185 | 785 | 784 |
SABMiller Holdings Inc. 3.75% 20225 | 3,800 | 3,815 |
Wal-Mart Stores, Inc. 5.80% 2018 | 7,395 | 8,550 |
Wal-Mart Stores, Inc. 2.55% 2023 | 2,850 | 2,605 |
Wal-Mart Stores, Inc. 4.75% 2043 | 590 | 592 |
Tesco PLC 5.50% 20175 | 10,035 | 11,129 |
Imperial Tobacco Finance PLC 2.05% 20185 | 4,252 | 4,207 |
Imperial Tobacco Finance PLC 3.50% 20235 | 3,510 | 3,275 |
CVS Caremark Corp. 1.20% 2016 | 500 | 501 |
CVS Caremark Corp. 2.25% 2018 | 500 | 500 |
CVS Caremark Corp. 4.00% 2023 | 1,840 | 1,837 |
CVS Caremark Corp. 5.30% 2043 | 3,590 | 3,714 |
PepsiCo, Inc. 2.50% 2016 | 5,000 | 5,190 |
BFF International Ltd. 7.25% 20205 | 1,400 | 1,554 |
Ingles Markets, Inc. 5.75% 2023 | 1,575 | 1,551 |
Stater Bros. Holdings Inc. 7.75% 2015 | 1,425 | 1,432 |
Smithfield Foods, Inc. 5.25% 20185 | 1,000 | 1,050 |
Constellation Brands, Inc. 4.25% 2023 | 1,000 | 935 |
302,696 | ||
Health care 2.97% | ||
Express Scripts Inc. 2.75% 2014 | 8,750 | 8,920 |
Express Scripts Inc. 3.125% 2016 | 19,500 | 20,363 |
Express Scripts Inc. 3.50% 2016 | 3,000 | 3,174 |
Express Scripts Inc. 2.65% 2017 | 6,550 | 6,754 |
Express Scripts Inc. 3.90% 2022 | 4,990 | 4,996 |
AbbVie Inc. 1.75% 2017 | 9,750 | 9,738 |
AbbVie Inc. 2.90% 2022 | 21,220 | 19,840 |
Roche Holdings, Inc. 6.00% 20195 | 19,115 | 22,399 |
Roche Holdings, Inc. 7.00% 20395 | 1,250 | 1,648 |
Gilead Sciences, Inc. 2.40% 2014 | 4,780 | 4,860 |
Gilead Sciences, Inc. 4.40% 2021 | 10,755 | 11,489 |
Gilead Sciences, Inc. 5.65% 2041 | 5,000 | 5,567 |
Schering-Plough Corp. 5.375% 2014 | €3,955 | 5,637 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Health care (continued) | (000) | (000) |
Merck & Co., Inc. 2.80% 2023 | $14,160 | $ 13,114 |
UnitedHealth Group Inc. 1.40% 2017 | 3,020 | 2,983 |
UnitedHealth Group Inc. 1.625% 2019 | 680 | 655 |
UnitedHealth Group Inc. 2.75% 2023 | 2,420 | 2,217 |
UnitedHealth Group Inc. 2.875% 2023 | 10,540 | 9,811 |
Baxter International Inc. 1.85% 2018 | 2,565 | 2,534 |
Baxter International Inc. 3.20% 2023 | 7,170 | 6,852 |
Cardinal Health, Inc. 4.00% 2015 | 2,715 | 2,842 |
Cardinal Health, Inc. 5.80% 2016 | 1,235 | 1,381 |
Cardinal Health, Inc. 1.90% 2017 | 2,370 | 2,376 |
Cardinal Health, Inc. 1.70% 2018 | 2,400 | 2,350 |
Teva Pharmaceutical Financial IV LLC, 2.25% 2020 | 1,900 | 1,807 |
Teve Pharmaceutical Finance Company BV, 2.95% 2022 | 6,950 | 6,295 |
Sanofi 0.557% 20144 | 7,500 | 7,512 |
WellPoint, Inc. 2.30% 2018 | 7,440 | 7,385 |
VPI Escrow Corp. 6.75% 20185 | 3,000 | 3,311 |
VPI Escrow Corp. 6.375% 20205 | 2,435 | 2,578 |
VPI Escrow Corp. 5.625% 20215 | 310 | 312 |
Pfizer Inc. 6.20% 2019 | 5,000 | 5,931 |
inVentiv Health Inc. 11.00% 20185 | 5,650 | 5,014 |
Johnson & Johnson 0.331% 20144 | 5,000 | 5,001 |
HCA Inc. 6.375% 2015 | 1,000 | 1,053 |
HCA Inc., Term Loan B5, 2.997% 20173,4,7 | 1,905 | 1,909 |
HCA Inc. 6.50% 2020 | 1,550 | 1,707 |
Boston Scientific Corp. 6.00% 2020 | 3,675 | 4,220 |
Symbion Inc. 8.00% 2016 | 3,825 | 4,074 |
Aetna Inc. 1.50% 2017 | 4,120 | 4,061 |
Centene Corp. 5.75% 2017 | 3,600 | 3,843 |
DJO Finance LLC 7.75% 2018 | 175 | 179 |
DJO Finance LLC 8.75% 2018 | 1,215 | 1,340 |
DJO Finance LLC 9.875% 2018 | 2,070 | 2,236 |
Kinetic Concepts, Inc., Term Loan D1, 4.50% 20183,4,7 | 374 | 377 |
Kinetic Concepts, Inc. 10.50% 2018 | 630 | 728 |
Kinetic Concepts, Inc. 12.50% 2019 | 2,295 | 2,605 |
Select Medical Holdings Corp. 6.375% 2021 | 3,455 | 3,395 |
McKesson Corp. 3.25% 2016 | 3,051 | 3,181 |
VWR Funding, Inc. 7.25% 2017 | 2,500 | 2,694 |
Forest Laboratories, Inc. 5.00% 20215 | 2,400 | 2,415 |
Humana Inc. 4.625% 2042 | 2,675 | 2,412 |
Grifols Inc. 8.25% 2018 | 2,194 | 2,342 |
Thermo Fisher Scientific Inc. 1.30% 2017 | 860 | 857 |
Thermo Fisher Scientific Inc. 2.40% 2019 | 320 | 317 |
Thermo Fisher Scientific Inc. 4.15% 2024 | 1,150 | 1,140 |
Amgen Inc. 2.50% 2016 | 1,060 | 1,098 |
Amgen Inc. 5.375% 2043 | 1,155 | 1,186 |
GlaxoSmithKline Capital Inc. 2.80% 2023 | 2,210 | 2,048 |
Tenet Healthcare Corp. 6.00% 20205 | 1,340 | 1,401 |
Tenet Healthcare Corp. 4.50% 2021 | 625 | 595 |
Patheon Inc., Term Loan B1, 7.25% 20183,4,7 | 1,322 | 1,336 |
Endo Pharmaceuticals Holdings Inc. 7.00% 2019 | 430 | 462 |
Endo Pharmaceuticals Holdings Inc. 5.75% 20225 | 685 | 690 |
HealthSouth Corp. 5.75% 2024 | 1,040 | 1,032 |
Catalent Pharma Solutions Inc., Term Loan, 6.50% 20173,4,7 | 1,000 | 1,015 |
275,594 | ||
Bonds, notes & other debt instruments | ||
Corporate bonds & notes | Principal amount | Value |
Utilities 2.81% | (000) | (000) |
MidAmerican Energy Holdings Co., Series D, 5.00% 2014 | $ 2,200 | $ 2,211 |
MidAmerican Energy Holdings Co. 5.75% 2018 | 7,740 | 8,840 |
Nevada Power Co., General and Refunding Mortgage Notes, Series V, 7.125% 2019 | 5,500 | 6,696 |
NV Energy, Inc 6.25% 2020 | 13,300 | 15,470 |
MidAmerican Energy Holdings Co. 3.75% 20235 | 13,750 | 13,415 |
MidAmerican Energy Holdings Co. 5.15% 20435 | 750 | 756 |
Consumers Energy Co., First Mortgage Bonds, Series P, 5.50% 2016 | 11,420 | 12,740 |
Consumers Energy Co., First Mortgage Bonds, 6.125% 2019 | 7,100 | 8,380 |
CMS Energy Corp. 8.75% 2019 | 3,475 | 4,398 |
CMS Energy Corp. 6.25% 2020 | 1,315 | 1,521 |
CMS Energy Corp. 5.05% 2022 | 13,535 | 14,616 |
CMS Energy Corp. 4.70% 2043 | 350 | 327 |
National Rural Utilities Cooperative Finance Corp. 10.375% 2018 | 13,750 | 18,605 |
National Rural Utilities Cooperative Finance Corp. 3.40% 2023 | 3,315 | 3,209 |
FirstEnergy Corp., Series A, 2.75% 2018 | 6,690 | 6,577 |
Cleveland Electric Illuminating Co. 8.875% 2018 | 7,475 | 9,460 |
FirstEnergy Corp., Series B, 4.25% 2023 | 1,470 | 1,371 |
PG&E Corp. 5.75% 2014 | 2,000 | 2,025 |
Pacific Gas and Electric Co. 2.45% 2022 | 7,500 | 6,735 |
Pacific Gas and Electric Co. 3.25% 2023 | 6,815 | 6,467 |
Pacific Gas and Electric Co. 3.85% 2023 | 1,195 | 1,189 |
Public Service Co. of Colorado 5.80% 2018 | 7,860 | 9,103 |
Public Service Co. of Colorado 3.20% 2020 | 5,000 | 5,027 |
Xcel Energy Inc. 4.70% 2020 | 1,800 | 1,976 |
CenterPoint Energy Resources Corp. 4.50% 2021 | 10,330 | 11,021 |
Teco Finance, Inc. 4.00% 2016 | 15 | 16 |
Teco Finance, Inc. 6.572% 2017 | 831 | 961 |
Teco Finance, Inc. 5.15% 2020 | 2,060 | 2,260 |
Tampa Electric Co. 2.60% 2022 | 5,250 | 4,842 |
Tampa Electric Co. 4.10% 2042 | 3,240 | 2,916 |
Progress Energy, Inc. 7.05% 2019 | 3,180 | 3,814 |
Duke Energy Corp. 3.95% 2023 | 4,470 | 4,473 |
Progress Energy, Inc. 7.75% 2031 | 1,920 | 2,473 |
Virginia Electric and Power Co. 1.20% 2018 | 5,400 | 5,245 |
Virginia Electric and Power Co. 2.95% 2022 | 3,090 | 2,986 |
PSEG Power LLC 2.75% 2016 | 3,400 | 3,523 |
PSEG Power LLC 2.45% 2018 | 500 | 494 |
Public Service Electric and Gas Co., Series E, 5.30% 2018 | 2,460 | 2,781 |
American Electric Power Co. 1.65% 2017 | 4,170 | 4,088 |
American Electric Power Co. 2.95% 2022 | 2,700 | 2,498 |
Veolia Environnement 6.00% 2018 | 4,690 | 5,325 |
Veolia Environnement 6.125% 2033 | €700 | 1,186 |
Niagara Mohawk Power 3.553% 20145 | $2,625 | 2,682 |
National Grid PLC 6.30% 2016 | 2,945 | 3,314 |
Boston Gas Co. 4.487% 20425 | 470 | 444 |
E.ON International Finance BV 5.80% 20185 | 5,000 | 5,727 |
CEZ, a s 4.25% 20225 | 5,285 | 5,306 |
Iberdrola Finance Ireland 3.80% 20145 | 1,615 | 1,648 |
Iberdrola Finance Ireland 5.00% 20195 | 2,575 | 2,772 |
Consolidated Edison Company of New York, Inc. Series 2013-A, 3.95% 2043 | 4,160 | 3,671 |
AES Corp. 8.00% 2020 | 2,000 | 2,350 |
AES Corp. 7.375% 2021 | 975 | 1,104 |
TXU, Term Loan, 3.739% 20173,4,7 | 3,749 | 2,590 |
Midwest Generation, LLC, Series B, 8.56% 20163,6 | 1,307 | 1,503 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Utilities (continued) | (000) | (000) |
Eskom Holdings SOC Ltd. 6.75% 20235 | $ 1,400 | $ 1,443 |
Electricité de France SA 6.50% 20195 | 119 | 141 |
Electricité de France SA 4.60% 20205 | 1,191 | 1,289 |
NRG Energy, Inc. 6.625% 2023 | 1,100 | 1,114 |
Enel Società per Azioni 8.75% 20734,5 | 1,000 | 1,090 |
Comision Federal de Electricidad 4.875% 20245 | 600 | 597 |
260,801 | ||
Industrials 2.68% | ||
Burlington Northern Santa Fe LLC 7.00% 2014 | 6,480 | 6,512 |
Burlington Northern Santa Fe LLC 5.65% 2017 | 5,500 | 6,171 |
Burlington Northern Santa Fe LLC 5.75% 2018 | 1,505 | 1,717 |
Burlington Northern Santa Fe LLC 4.70% 2019 | 7,480 | 8,211 |
Burlington Northern Santa Fe LLC 3.45% 2021 | 2,240 | 2,213 |
Burlington Northern Santa Fe LLC 3.05% 2022 | 2,700 | 2,532 |
Burlington Northern Santa Fe LLC 3.00% 2023 | 2,610 | 2,431 |
Burlington Northern Santa Fe LLC 3.85% 2023 | 2,140 | 2,106 |
Burlington Northern Santa Fe LLC 4.45% 2043 | 2,710 | 2,458 |
BNSF Funding Trust I 6.613% 20554 | 1,680 | 1,846 |
Volvo Treasury AB 5.95% 20155 | 34,000 | 35,991 |
General Electric Capital Corp. 1.50% 2016 | 5,212 | 5,270 |
General Electric Capital Corp. 2.30% 2017 | 5,000 | 5,142 |
General Electric Co. 2.70% 2022 | 6,450 | 6,039 |
General Electric Capital Corp. 3.10% 2023 | 12,460 | 11,826 |
General Electric Capital Corp., Series B, junior subordinated 6.25% (undated)4 | 2,000 | 2,074 |
Norfolk Southern Corp. 5.75% 2016 | 5,270 | 5,760 |
Norfolk Southern Corp. 3.00% 2022 | 10,250 | 9,687 |
Norfolk Southern Corp. 4.837% 2041 | 4,030 | 3,848 |
Union Pacific Corp. 5.125% 2014 | 2,300 | 2,312 |
Union Pacific Corp. 4.00% 2021 | 7,500 | 7,828 |
Union Pacific Corp. 4.163% 2022 | 2,314 | 2,381 |
Waste Management, Inc. 4.60% 2021 | 3,345 | 3,565 |
Waste Management, Inc. 2.90% 2022 | 9,515 | 8,818 |
United Technologies Corp. 1.80% 2017 | 2,340 | 2,377 |
United Technologies Corp. 3.10% 2022 | 1,100 | 1,076 |
United Technologies Corp. 4.50% 2042 | 8,905 | 8,650 |
Canadian National Railway Co. 4.95% 2014 | 1,430 | 1,432 |
Canadian National Railway Co. 5.55% 2018 | 5,000 | 5,680 |
Canadian National Railway Co. 2.85% 2021 | 5,000 | 4,809 |
United Air Lines, 1991 Equipment Trust Certificates, Series A, 10.11% 20063,6,10 | 230 | — |
Continental Airlines, Inc., Series 1998-1, Class B, 6.748% 20183 | 57 | 61 |
Continental Airlines, Inc., Series 1997-4B, Class B, 6.90% 20183 | 136 | 144 |
Continental Airlines, Inc., Series 1998-1, Class A, 6.648% 20193 | 924 | 985 |
Continental Airlines, Inc., Series 1997-4, Class A, 6.90% 20193 | 2,098 | 2,252 |
Continental Airlines, Inc., Series 1999-1, Class A, 6.545% 20203 | 598 | 654 |
Continental Airlines, Inc., Series 1999-2, Class B, 7.566% 20213 | 504 | 524 |
Continental Airlines, Inc., Series 2001-1, Class A-1, 6.703% 20223 | 474 | 520 |
Continental Airlines, Inc., Series 2000-2, Class A-1, 7.707% 20223 | 2,227 | 2,527 |
Continental Airlines, Inc., Series 2000-1, Class A-1, 8.048% 20223 | 1,026 | 1,175 |
European Aeronautic Defence and Space Company 2.70% 20235 | 8,250 | 7,518 |
Northwest Airlines, Inc., Term Loan A, 2.00% 20183,4,7 | 6,055 | 5,631 |
Republic Services, Inc. 5.00% 2020 | 5,000 | 5,484 |
CSX Corp. 6.25% 2015 | 5,000 | 5,346 |
DAE Aviation Holdings, Inc. 11.25% 20155 | 4,851 | 4,872 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Industrials (continued) | (000) | (000) |
Ply Gem Industries, Inc. 8.25% 2018 | $ 3,804 | $ 4,070 |
TransDigm Inc. 7.75% 2018 | 210 | 226 |
TransDigm Inc. 5.50% 2020 | 3,500 | 3,439 |
Gardner Denver, Inc. Term Loan B, 4.25% 20203,4,7 | 1,995 | 2,001 |
Gardner Denver, Inc. 6.875% 20215 | 1,000 | 1,002 |
Brunswick Rail Finance Ltd. 6.50% 20175 | 1,650 | 1,684 |
Brunswick Rail Finance Ltd. 6.50% 2017 | 1,000 | 1,021 |
Esterline Technologies Corp. 7.00% 2020 | 2,475 | 2,685 |
Atlas Copco AB 5.60% 20175 | 2,340 | 2,619 |
BE Aerospace, Inc. 5.25% 2022 | 2,475 | 2,525 |
US Investigations Services, Inc. 11.75% 20165 | 3,010 | 2,137 |
Silver II Borrower S.C.A./Silver II U.S. Holdings, LLC 7.75% 20205 | 1,925 | 2,050 |
ARAMARK Corp., Term Loan D, 4.00% 20193,4,7 | 2,000 | 2,012 |
Euramax International, Inc. 9.50% 2016 | 1,775 | 1,788 |
Nielsen Finance LLC and Nielsen Finance Co. 7.75% 2018 | 1,000 | 1,085 |
Nielsen Finance LLC and Nielsen Finance Co. 5.50% 20215 | 625 | 636 |
Watco Companies 6.375% 20235 | 1,505 | 1,497 |
Far East Capital Limited SA 8.00% 20185 | 540 | 482 |
Far East Capital Limited SA 8.75% 20205 | 1,085 | 967 |
ABB Finance (USA) Inc. 2.875% 2022 | 1,410 | 1,333 |
Beechcraft Holdings, LLC., Term Loan, 5.75% 20203,4,7 | 1,000 | 1,012 |
Florida East Coast Railway Corp. 8.125% 2017 | 800 | 839 |
Avianca Holdings SA, 8.375% 20205 | 700 | 728 |
Nortek Inc. 8.50% 2021 | 600 | 668 |
R.R. Donnelley & Sons Co. 6.50% 2023 | 625 | 634 |
ADS Waste Escrow 8.25% 2020 | 325 | 354 |
Hawker Beechcraft Acquisition Co., LLC, Letter of Credit, 0.022% 20143,4,7 | 160 | 87 |
248,036 | ||
Telecommunication services 2.19% | ||
Verizon Communications Inc. 1.773% 20164 | 4,650 | 4,794 |
Verizon Communications Inc. 3.65% 2018 | 700 | 741 |
Verizon Communications Inc. 8.50% 2018 | 1,000 | 1,267 |
Verizon Communications Inc. 5.15% 2023 | 27,795 | 29,853 |
Verizon Communications Inc. 6.55% 2043 | 14,980 | 17,530 |
Clearwire Communications and Clearwire Finance, Inc. 14.75% 20165 | 1,575 | 2,154 |
Sprint Nextel Corp. 9.125% 2017 | 1,400 | 1,652 |
Sprint Nextel Corp. 9.00% 20185 | 2,000 | 2,415 |
Sprint Nextel Corp. 7.00% 2020 | 3,000 | 3,262 |
Sprint Corp. 7.25% 20215 | 3,425 | 3,690 |
Sprint Nextel Corp. 11.50% 2021 | 925 | 1,216 |
Sprint Corp. 7.875% 20235 | 2,500 | 2,694 |
Sprint Corp. 7.125% 20245 | 3,000 | 3,052 |
Telecom Italia Capital SA 6.999% 2018 | 3,910 | 4,350 |
Telecom Italia Capital SA 7.175% 2019 | 4,753 | 5,359 |
Telecom Italia Capital SA 7.20% 2036 | 1,758 | 1,701 |
Telecom Italia Capital SA 7.721% 2038 | 8,255 | 8,296 |
Telefónica Emisiones, SAU 3.192% 2018 | 18,925 | 19,284 |
Koninklijke KPN NV 8.375% 2030 | 14,075 | 17,846 |
Deutsche Telekom International Finance BV 3.125% 20165 | 5,495 | 5,726 |
Deutsche Telekom International Finance BV 6.00% 2019 | 1,415 | 1,639 |
Deutsche Telekom International Finance BV 9.25% 2032 | 5,878 | 8,710 |
T-Mobile US, Inc. 6.542% 2020 | 5,000 | 5,344 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Telecommunication services (continued) | (000) | (000) |
MetroPCS Wireless, Inc. 6.25% 20215 | $2,750 | $ 2,863 |
MetroPCS Wireless, Inc. 6.625% 20235 | 3,275 | 3,394 |
Wind Acquisition SA 11.75% 20175 | 4,550 | 4,846 |
Wind Acquisition SA 7.25% 20185 | 3,000 | 3,172 |
Frontier Communications Corp. 8.125% 2018 | 1,100 | 1,262 |
Frontier Communications Corp. 8.50% 2020 | 1,100 | 1,238 |
Frontier Communications Corp. 9.25% 2021 | 2,100 | 2,431 |
Frontier Communications Corp. 8.75% 2022 | 425 | 474 |
Frontier Communications Corp. 7.625% 2024 | 2,500 | 2,506 |
SBC Communications Inc. 5.10% 2014 | 2,700 | 2,787 |
AT&T Inc. 1.40% 2017 | 3,615 | 3,566 |
Leap Wireless International, Inc., Term Loan C, 4.75% 20203,4,7 | 2,985 | 2,996 |
Cricket Communications, Inc. 7.75% 2020 | 950 | 1,087 |
LightSquared, Term Loan B, 12.00% 20143,6,7,9 | 3,304 | 3,948 |
NII Capital Corp. 7.875% 20195 | 1,000 | 760 |
NII Capital Corp. 8.875% 2019 | 475 | 207 |
NII Capital Corp. 11.375% 20195 | 1,700 | 1,428 |
NII Capital Corp. 7.625% 2021 | 2,325 | 971 |
France Télécom 4.375% 2014 | 775 | 790 |
France Télécom 4.125% 2021 | 2,050 | 2,076 |
Digicel Group Ltd. 8.25% 20205 | 1,800 | 1,874 |
Digicel Group Ltd. 6.00% 20215 | 950 | 919 |
Intelsat Jackson Holding Co. 6.625% 20225 | 2,500 | 2,587 |
Altice Finco SA 6.50% 20225 | 2,000 | 2,025 |
202,782 | ||
Materials 1.26% | ||
Glencore Xstrata LLC 1.70% 20165 | 4,730 | 4,737 |
Glencore Xstrata LLC 1.604% 20194,5 | 9,225 | 8,996 |
Glencore Xstrata LLC 2.50% 20195 | 2,600 | 2,519 |
Xstrata Canada Financial Corp. 4.95% 20215 | 2,650 | 2,685 |
Glencore Xstrata LLC 4.125% 20235 | 7,150 | 6,684 |
Xstrata Canada Financial Corp. 5.55% 20424,5 | 1,300 | 1,205 |
E.I. du Pont de Nemours and Co. 2.75% 2016 | 3,920 | 4,088 |
E.I. du Pont de Nemours and Co. 2.80% 2023 | 7,500 | 6,871 |
BHP Billiton Finance (USA) Ltd. 3.85% 2023 | 565 | 567 |
BHP Billiton Finance (USA) Ltd. 5.00% 2043 | 9,740 | 9,905 |
Reynolds Group Inc. 7.875% 2019 | 360 | 400 |
Reynolds Group Inc. 5.75% 2020 | 5,685 | 5,827 |
Ecolab Inc. 3.00% 2016 | 5,455 | 5,719 |
Inmet Mining Corp. 8.75% 20205 | 3,755 | 4,093 |
Inmet Mining Corp. 7.50% 20215 | 1,295 | 1,360 |
Rio Tinto Finance (USA) Ltd. 9.00% 2019 | 3,780 | 4,938 |
Dow Chemical Co. 3.00% 2022 | 5,000 | 4,665 |
ArcelorMittal 6.00% 20214 | 665 | 708 |
ArcelorMittal 6.75% 20224 | 1,175 | 1,284 |
ArcelorMittal 7.25% 20414 | 2,500 | 2,400 |
Teck Resources Ltd. 3.15% 2017 | 2,880 | 2,983 |
Teck Resources Ltd. 3.75% 2023 | 1,425 | 1,329 |
FMG Resources 6.00% 20175 | 2,300 | 2,455 |
FMG Resources 8.25% 20195 | 1,550 | 1,746 |
Newcrest Finance Pty Ltd. 4.45% 20215 | 4,535 | 3,773 |
JMC Steel Group Inc. 8.25% 20185 | 2,950 | 2,987 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Materials (continued) | (000) | (000) |
U.S. Coatings Acquisition Inc. (Flash Dutch 2 BV), Term Loan B, 4.75% 20203,4,7 | $ 1,449 | $ 1,461 |
U.S. Coatings Acquisition Inc. (Flash Dutch 2 BV) 7.375% 20215 | 1,285 | 1,376 |
PQ Corp. 8.75% 20185 | 2,560 | 2,797 |
Ryerson Inc. 9.00% 2017 | 1,925 | 2,043 |
Ryerson Inc. 11.25% 2018 | 600 | 639 |
Packaging Dynamics Corp. 8.75% 20165 | 1,785 | 1,840 |
Cliffs Natural Resources Inc. 3.95% 2018 | 1,805 | 1,823 |
Georgia Gulf Corp. 4.875% 20235 | 1,600 | 1,518 |
Sibur Securities Ltd. 3.914% 20185 | 1,400 | 1,360 |
International Paper Co. 7.50% 2021 | 1,100 | 1,349 |
Walter Energy, Inc. 9.875% 2020 | 1,500 | 1,305 |
LSB Industries, Inc. 7.75% 20195 | 1,200 | 1,266 |
Ball Corp. 5.75% 2021 | 835 | 883 |
Ball Corp. 5.00% 2022 | 250 | 249 |
Newpage Corp., Term Loan B, 7.75% 20183,4,7 | 1,104 | 1,130 |
Mosaic Co. 4.25% 2023 | 250 | 247 |
Mosaic Co. 5.625% 2043 | 250 | 254 |
Inversiones CMPC SA 4.375% 20235 | 525 | 491 |
Ardagh Packaging Finance 4.875% 20225 | 330 | 328 |
117,283 | ||
Information technology 0.87% | ||
First Data Corp. 7.375% 20195 | 3,500 | 3,745 |
First Data Corp. 6.75% 20205 | 1,025 | 1,071 |
First Data Corp. 8.25% 20215 | 600 | 641 |
First Data Corp. 11.75% 20215 | 2,600 | 2,756 |
First Data Corp. 11.75% 20215 | 2,500 | 2,650 |
First Data Corp. 12.625% 2021 | 3,500 | 4,126 |
First Data Corp. 8.75% 20224,5,9 | 4,641 | 4,978 |
International Business Machines Corp. 5.70% 2017 | 7,500 | 8,616 |
International Business Machines Corp. 1.625% 2020 | 11,250 | 10,552 |
SunGard Data Systems Inc. 7.375% 2018 | 2,175 | 2,308 |
SunGard Data Systems Inc. 7.625% 2020 | 3,825 | 4,189 |
Jabil Circuit, Inc. 8.25% 2018 | 5,300 | 6,247 |
Oracle Corp. 1.20% 2017 | 3,600 | 3,544 |
Oracle Corp. 2.375% 2019 | 1,185 | 1,196 |
Oracle Corp 3.625% 2023 | 820 | 814 |
Xerox Corp. 2.95% 2017 | 3,820 | 3,923 |
Xerox Corp. 2.75% 2019 | 1,000 | 992 |
SRA International, Inc., Term Loan B, 6.50% 20183,4,7 | 2,826 | 2,804 |
SRA International, Inc. 11.00% 2019 | 1,625 | 1,698 |
Alcatel-Lucent USA Inc. 4.625% 20175 | 3,375 | 3,396 |
Alcatel-Lucent USA Inc. 6.75% 20205 | 525 | 547 |
Alcatel-Lucent USA Inc. 8.875% 20205 | 425 | 476 |
Lawson Software, Inc. 9.375% 2019 | 3,000 | 3,390 |
NXP BV and NXP Funding LLC 3.75% 20185 | 1,525 | 1,544 |
Freescale Semiconductor, Inc. 5.00% 20215 | 1,500 | 1,463 |
Hughes Satellite Systems Corp. 6.50% 2019 | 1,300 | 1,414 |
BMC Software, Inc., Term Loan B, 5.00% 20203,4,7 | 1,250 | 1,258 |
80,338 | ||
Total corporate bonds & notes | 2,850,835 | |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Mortgage-backed obligations3 20.99% | (000) | (000) |
Fannie Mae 5.50% 2023 | $ 2,514 | $ 2,761 |
Fannie Mae 4.00% 2024 | 743 | 789 |
Fannie Mae 4.50% 2025 | 1,178 | 1,256 |
Fannie Mae, Series 2001-4, Class GA, 9.533% 20254 | 23 | 27 |
Fannie Mae 6.00% 2026 | 826 | 904 |
Fannie Mae 2.50% 2027 | 22,578 | 22,429 |
Fannie Mae 2.50% 2027 | 16,045 | 15,939 |
Fannie Mae 2.50% 2027 | 15,912 | 15,807 |
Fannie Mae 2.50% 2027 | 15,843 | 15,739 |
Fannie Mae 2.50% 2027 | 15,789 | 15,685 |
Fannie Mae 2.50% 2027 | 11,489 | 11,388 |
Fannie Mae 2.50% 2027 | 5,765 | 5,727 |
Fannie Mae 2.50% 2027 | 3,729 | 3,696 |
Fannie Mae 3.00% 2027 | 99,580 | 101,919 |
Fannie Mae 5.50% 2027 | 579 | 636 |
Fannie Mae 6.00% 2027 | 1,407 | 1,541 |
Fannie Mae 2.50% 2028 | 8,389 | 8,315 |
Fannie Mae 2.50% 2028 | 4,466 | 4,427 |
Fannie Mae 6.00% 2028 | 506 | 554 |
Fannie Mae 2.50% 2029 | 82,574 | 81,748 |
Fannie Mae 4.00% 2029 | 22,083 | 23,406 |
Fannie Mae 1.765% 20374 | 1,904 | 1,982 |
Fannie Mae 6.00% 2037 | 4,389 | 4,865 |
Fannie Mae 6.00% 2037 | 666 | 718 |
Fannie Mae 6.00% 2037 | 639 | 708 |
Fannie Mae 6.00% 2037 | 297 | 329 |
Fannie Mae 2.63% 20384 | 361 | 383 |
Fannie Mae 5.50% 2038 | 9,627 | 10,587 |
Fannie Mae 5.50% 2038 | 998 | 1,100 |
Fannie Mae 3.517% 20394 | 2,846 | 3,026 |
Fannie Mae 3.587% 20394 | 2,441 | 2,564 |
Fannie Mae 3.724% 20394 | 217 | 229 |
Fannie Mae 3.779% 20394 | 308 | 324 |
Fannie Mae 3.935% 20394 | 268 | 282 |
Fannie Mae 3.94% 20394 | 743 | 788 |
Fannie Mae 3.962% 20394 | 304 | 323 |
Fannie Mae 3.987% 20394 | 1,174 | 1,248 |
Fannie Mae 4.395% 20404 | 1,553 | 1,649 |
Fannie Mae 4.50% 2040 | 9,176 | 9,750 |
Fannie Mae 5.00% 2040 | 1,527 | 1,666 |
Fannie Mae 2.923% 20414 | 2,417 | 2,498 |
Fannie Mae 3.556% 20414 | 5,795 | 6,024 |
Fannie Mae 4.50% 2041 | 19,197 | 20,397 |
Fannie Mae 4.50% 2041 | 9,388 | 9,986 |
Fannie Mae 4.50% 2041 | 7,315 | 7,781 |
Fannie Mae 5.00% 2041 | 10,519 | 11,440 |
Fannie Mae 5.00% 2041 | 7,483 | 8,165 |
Fannie Mae 5.00% 2041 | 4,498 | 4,938 |
Fannie Mae 5.00% 2041 | 3,450 | 3,789 |
Fannie Mae 5.00% 2041 | 2,238 | 2,456 |
Fannie Mae 5.00% 2041 | 1,554 | 1,705 |
Fannie Mae, Series 2001-T10, Class A-1, 7.00% 2041 | 50 | 58 |
Fannie Mae, Series 2001-50, Class BA, 7.00% 2041 | 39 | 44 |
Fannie Mae, Series 2002-W3, Class A-5, 7.50% 2041 | 59 | 70 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Mortgage-backed obligations3 (continued) | (000) | (000) |
Fannie Mae 4.00% 2042 | $ 67,730 | $ 69,893 |
Fannie Mae, Series 2002-W1, Class 2A, 6.68% 20424 | 75 | 88 |
Fannie Mae 3.00% 2043 | 53,683 | 51,124 |
Fannie Mae 3.00% 2043 | 43,207 | 41,145 |
Fannie Mae 3.00% 2043 | 22,979 | 21,881 |
Fannie Mae 3.00% 2043 | 20,711 | 19,725 |
Fannie Mae 3.00% 2043 | 9,320 | 8,876 |
Fannie Mae 4.00% 2043 | 11,721 | 12,095 |
Fannie Mae 3.00% 2044 | 186,000 | 176,627 |
Fannie Mae 4.50% 2044 | 287,229 | 304,429 |
Freddie Mac 5.50% 2033 | 484 | 542 |
Freddie Mac, Series 3061, Class PN, 5.50% 2035 | 415 | 453 |
Freddie Mac, Series 3146, Class PO, principal only, 0% 2036 | 905 | 838 |
Freddie Mac, Series 3156, Class PO, principal only, 0% 2036 | 784 | 722 |
Freddie Mac, Series 3257, Class PA, 5.50% 2036 | 2,430 | 2,661 |
Freddie Mac 2.742% 20374 | 964 | 1,025 |
Freddie Mac, Series 3318, Class JT, 5.50% 2037 | 1,267 | 1,378 |
Freddie Mac 5.00% 2038 | 80 | 86 |
Freddie Mac 5.50% 2038 | 12,903 | 14,087 |
Freddie Mac 5.50% 2038 | 604 | 660 |
Freddie Mac 5.50% 2038 | 449 | 490 |
Freddie Mac 3.724% 20394 | 452 | 481 |
Freddie Mac 3.838% 20394 | 1,065 | 1,120 |
Freddie Mac 4.50% 2039 | 3,957 | 4,198 |
Freddie Mac 4.50% 2039 | 270 | 287 |
Freddie Mac 4.50% 2039 | 210 | 223 |
Freddie Mac 5.50% 2039 | 840 | 917 |
Freddie Mac 4.50% 2040 | 3,065 | 3,251 |
Freddie Mac 5.50% 2040 | 2,999 | 3,274 |
Freddie Mac 4.50% 2041 | 17,368 | 18,466 |
Freddie Mac 4.50% 2041 | 10,576 | 11,232 |
Freddie Mac 4.50% 2041 | 9,428 | 10,013 |
Freddie Mac 4.50% 2041 | 3,051 | 3,238 |
Freddie Mac 4.50% 2041 | 1,574 | 1,671 |
Freddie Mac 4.50% 2041 | 1,494 | 1,586 |
Freddie Mac 4.50% 2041 | 849 | 901 |
Freddie Mac 5.00% 2041 | 10,802 | 11,850 |
Freddie Mac 5.50% 2041 | 4,316 | 4,713 |
Freddie Mac 3.00% 2043 | 30,000 | 28,513 |
Freddie Mac 3.00% 2043 | 20,000 | 19,009 |
Freddie Mac 3.00% 2043 | 15,000 | 14,256 |
Freddie Mac 4.00% 2044 | 39,500 | 40,577 |
Government National Mortgage Assn. 4.50% 2040 | 3,455 | 3,712 |
Government National Mortgage Assn. 4.00% 2043 | 74,644 | 77,811 |
Government National Mortgage Assn. 4.50% 2043 | 50,148 | 53,705 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-CIBC12, Class A-3B, 5.289% 20374 | 654 | 655 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2006-CB15, Class A-4, 5.81% 20434 | 3,770 | 4,072 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2006-CB-16, Class A1A, 5.546% 2045 | 3,075 | 3,373 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP7, Class A-4, 5.863% 20454 | 10,315 | 11,277 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2011-C3A, Class A-2, 3.673% 20465 | 16,350 | 17,160 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2007-CB19, Class A-4, 5.706% 20494 | 26,820 | 29,826 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2007-C1, Class A-4, 5.716% 2051 | 5,930 | 6,521 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2007-LD12, Class A-1-A, 5.85% 20514 | 3,550 | 3,990 |
Greenwich Capital Commercial Funding Corp., Series 2006-GG7, Class A-4, 5.82% 20384 | 11,130 | 12,169 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Mortgage-backed obligations3 (continued) | (000) | (000) |
Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A-4, 5.444% 2039 | $18,925 | $ 20,816 |
Greenwich Capital Commercial Funding Corp., Series 2007-GG11, Class A-1-A, 5.704% 2049 | 2,021 | 2,280 |
Greenwich Capital Commercial Funding Corp., Series 2007-GG11, Class A-M, 5.867% 20494 | 12,610 | 13,847 |
CS First Boston Mortgage Securities Corp., Series 2004-C5, Class A-3, 4.499% 2037 | 648 | 651 |
CS First Boston Mortgage Securities Corp., Series 2006-C5, Class A-3, 5.311% 2039 | 17,950 | 19,468 |
CS First Boston Mortgage Securities Corp., Series 2007-C3, Class A-1-A-1, 5.683% 20394 | 6,304 | 6,897 |
CS First Boston Mortgage Securities Corp., Series 2007-C2, Class A-M, 5.614% 20494 | 10,650 | 11,336 |
ML-CFC Commercial Mortgage Trust, Series 2006-2, Class A-1-A, 5.884% 20464 | 2,179 | 2,394 |
ML-CFC Commercial Mortgage Trust, Series 2006-4, Class A-3, 5.172% 20494 | 22,540 | 24,466 |
ML-CFC Commercial Mortgage Trust, Series 2007-8, Class A-3, 5.894% 20494 | 6,195 | 6,920 |
Citigroup-Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class A-4, 5.218% 20444 | 12,635 | 13,405 |
Citigroup-Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class A-5, 5.617% 2048 | 14,811 | 16,178 |
Hilton USA Trust, Series 2013-HLF, AFX, 2.662% 20305 | 16,415 | 16,281 |
Hilton USA Trust, Series 2013-HLF, BFX, 3.367% 20305 | 5,800 | 5,798 |
Hilton USA Trust, Series 2013-HLF, CFX, 3.714% 20305 | 2,935 | 2,943 |
Hilton USA Trust, Series 2013-HLF, DFX, 4.407% 20305 | 2,650 | 2,655 |
LB-UBS Commercial Mortgage Trust, Series 2007-C2, Class A-3, 5.43% 2040 | 2,487 | 2,743 |
LB-UBS Commercial Mortgage Trust, Series 2007-C2, Class A-M, 5.493% 20404 | 4,600 | 4,868 |
LB-UBS Commercial Mortgage Trust, Series 2007-C6, Class A-M, 6.114% 20404 | 13,725 | 15,083 |
LB-UBS Commercial Mortgage Trust, Series 2007-C7, Class A-M, 6.164% 20454 | 2,110 | 2,416 |
J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP8, Class A-4, 5.399% 2045 | 10,000 | 10,906 |
J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP9, Class A-M, 5.372% 2047 | 11,490 | 12,168 |
Wachovia Bank Commercial Mortgage Trust, Series 2006-C25, Class A1A, 5.719% 20434 | 4,857 | 5,318 |
Wachovia Bank Commercial Mortgage Trust, Series 2007-C31, Class A-5, 5.50% 2047 | 2,700 | 2,989 |
Wachovia Bank Commercial Mortgage Trust, Series 2007-C31, Class A-M, 5.591% 20474 | 8,810 | 9,610 |
Wachovia Bank Commercial Mortgage Trust, Series 2007-C32, Class A-3, 5.733% 20494 | 3,500 | 3,880 |
Banc of America Commercial Mortgage Inc., Series 2006-3, Class A-4, 5.889% 20444 | 3,232 | 3,520 |
Banc of America Commercial Mortgage Inc., Series 2006-1, Class A1A, 5.378% 20454 | 6,874 | 7,408 |
Banc of America Commercial Mortgage Inc., Series 2007-3, Class A-4, 5.649% 20494 | 2,405 | 2,661 |
Banc of America Commercial Mortgage Inc., Series 2007-4, Class A-M, 5.813% 20514 | 3,020 | 3,337 |
Banc of America Commercial Mortgage Inc., Series 2008-1, Class A-4, 6.207% 20514 | 4,128 | 4,715 |
DBUBS Mortgage Trust, Series 2011-LC1A, Class A1, 3.742% 20465 | 18,141 | 19,040 |
Morgan Stanley Capital I Trust, Series 2007-IQ13, Class A-M, 5.406% 2044 | 5,025 | 5,472 |
Morgan Stanley Capital I Trust, Series 2007-IQ15, Class A-4, 5.91% 20494 | 10,869 | 12,144 |
Citigroup Commercial Mortgage Trust, Series 2006-C4, Class A-3, 5.778% 20494 | 2,500 | 2,712 |
Citigroup Commercial Mortgage Trust, Series 2008-C7, Class A-M, 6.132% 20494 | 5,000 | 5,554 |
Citigroup Commercial Mortgage Trust, Series 2013-CG15, Class A-4, 4.371% 2046 | 7,278 | 7,599 |
Royal Bank of Canada 3.125% 20155 | 6,840 | 7,068 |
Morgan Stanley Capital I Trust, Series 2006-IQ12, Class A1A, 5.319% 2043 | 5,542 | 6,060 |
LB Commercial Mortgage Trust, Series 2007-C3, Class A-1-A, multifamily 5.839% 20444 | 4,694 | 5,218 |
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW17, Class A-4, 5.694% 20504 | 1,755 | 1,968 |
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW18, Class A-M, 6.084% 20504 | 2,380 | 2,704 |
Merrill Lynch Mortgage Trust, Series 2004-BPC1, Class A-5, 4.855% 20414 | 2,351 | 2,380 |
Merrill Lynch Mortgage Trust, Series 2007-C1, Class A-4, 5.858% 20504 | 1,955 | 2,170 |
Commercial Mortgage Trust, Series 2006-C8, Class A1A, 5.292% 2046 | 3,588 | 3,939 |
LB-UBS Commercial Mortgage Trust, Series 2007-C2, Class A-1-A, 5.387% 2040 | 3,366 | 3,720 |
Greenwich Capital Commercial Funding Corp., Series 2006-GG7, Class A-1-A, 5.82% 20384 | 2,325 | 2,535 |
Northern Rock PLC 5.625% 20175 | 1,868 | 2,119 |
Aventura Mall Trust 3.743% 20324,5 | 1,690 | 1,737 |
GE Commercial Mortgage Corp., Series 2005-C4, Class A-3A, 5.31% 20454 | 1,727 | 1,732 |
L.A. Arena Funding, LLC, Series 1, Class A, 7.656% 20265 | 1,408 | 1,603 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2007-LDPX, Class A-1-A, 5.439% 2049 | 1,136 | 1,254 |
1,946,122 | ||
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Bonds & notes of governments & government agencies outside the U.S. 4.50% | (000) | (000) |
Spanish Government 5.85% 2022 | €26,750 | $ 41,810 |
Spanish Government 5.40% 2023 | 69,075 | 104,472 |
Italian Government 4.75% 2017 | 17,050 | 25,429 |
Italian Government 4.75% 2017 | 17,025 | 25,427 |
Polish Government 6.375% 2019 | $35,540 | 41,626 |
Polish Government 5.125% 2021 | 5,000 | 5,444 |
Latvia (Republic of) 2.75% 2020 | 14,825 | 14,213 |
Latvia (Republic of) 5.25% 2021 | 23,675 | 25,492 |
Lithuania (Republic of) 7.375% 2020 | 13,700 | 16,529 |
Lithuania (Republic of) 6.125% 20215 | 5,830 | 6,633 |
Lithuania (Republic of) 6.625% 20225 | 3,000 | 3,514 |
United Mexican States Government Global, Series A, 4.00% 2023 | 9,090 | 9,010 |
United Mexican States Government, Series M20, 10.00% 2024 | MXN50,000 | 4,900 |
United Mexican States Government Global, Series A, 6.05% 2040 | $5,000 | 5,462 |
Bermudan Government 5.603% 20205 | 4,710 | 5,087 |
Bermudan Government 5.603% 2020 | 2,735 | 2,954 |
Bermudan Government 4.138% 20235 | 1,000 | 961 |
Bermudan Government 4.854% 20245 | 6,215 | 6,226 |
Slovenia (Republic of) 5.50% 2022 | 2,780 | 2,783 |
Slovenia (Republic of) 5.85% 20235 | 8,400 | 8,568 |
Croatian Government 6.625% 20205 | 3,065 | 3,299 |
Croatian Government 6.625% 2020 | 1,195 | 1,286 |
Croatian Government 6.375% 20215 | 3,340 | 3,512 |
Croatian Government 6.375% 2021 | 1,500 | 1,577 |
Croatian Government 5.50% 20235 | 1,625 | 1,588 |
Russian Federation 3.25% 20175 | 7,600 | 7,950 |
Australia Government Agency-Guaranteed, Commonwealth Bank of Australia 2.90% 20145 | 7,155 | 7,286 |
France Government Agency-Guaranteed, Société Finance 2.875% 20145 | 6,870 | 6,994 |
Greek Government 2.00%/3.00% 20238 | €420 | 392 |
Greek Government 2.00%/3.00% 20248 | 420 | 376 |
Greek Government 2.00%/3.00% 20258 | 420 | 363 |
Greek Government 2.00%/3.00% 20268 | 420 | 355 |
Greek Government 2.00%/3.00% 20278 | 420 | 349 |
Greek Government 2.00%/3.00% 20288 | 420 | 338 |
Greek Government 2.00%/3.00% 20298 | 420 | 331 |
Greek Government 2.00%/3.00% 20308 | 420 | 325 |
Greek Government 2.00%/3.00% 20318 | 420 | 319 |
Greek Government 2.00%/3.00% 20328 | 420 | 316 |
Greek Government 2.00%/3.00% 20338 | 420 | 311 |
Greek Government 2.00%/3.00% 20348 | 420 | 309 |
Greek Government 2.00%/3.00% 20358 | 420 | 305 |
Greek Government 2.00%/3.00% 20368 | 420 | 305 |
Greek Government 2.00%/3.00% 20378 | 420 | 302 |
Greek Government 2.00%/3.00% 20388 | 420 | 301 |
Greek Government 2.00%/3.00% 20398 | 420 | 301 |
Greek Government 2.00%/3.00% 20408 | 420 | 300 |
Greek Government 2.00%/3.00% 20418 | 420 | 297 |
Greek Government 2.00%/3.00% 20428 | 420 | 300 |
Hungarian Government 4.75% 2015 | $ 750 | 773 |
Hungarian Government 4.125% 2018 | 2,310 | 2,319 |
Hungarian Government 6.25% 2020 | 2,425 | 2,628 |
Hungarian Government 6.375% 2021 | 150 | 162 |
New Zealand Government Agency-Guaranteed, Westpac Securities Co. 3.45% 20145 | 5,570 | 5,667 |
South Korean Government 5.75% 2014 | 4,800 | 4,871 |
Bank Nederlandse Gemeenten 3.75% 2014 | €3,120 | 4,321 |
417,268 | ||
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Federal agency bonds & notes 2.58% | (000) | (000) |
Freddie Mac 5.00% 2014 | $10,000 | $ 10,256 |
Freddie Mac 0.50% 2015 | 20,000 | 20,012 |
Freddie Mac, Series K702, Class A2, multifamily 3.154% 2018 | 13,000 | 13,721 |
Freddie Mac 1.25% 2019 | 48,500 | 45,959 |
Freddie Mac, Series K023, Class A2, multifamily 2.307% 2022 | 13,495 | 12,449 |
Freddie Mac, Series K020, Class A2, multifamily 2.373% 2022 | 7,500 | 7,015 |
Freddie Mac, Series K032, Class A1, multifamily 3.016% 2023 | 7,273 | 7,507 |
Freddie Mac, Series K029, Class A2, multifamily 3.32% 20234 | 11,000 | 10,898 |
Federal Home Loan Bank 2.50% 2014 | 20,000 | 20,204 |
Federal Home Loan Bank 0.375% 2015 | 27,250 | 27,264 |
Federal Home Loan Bank, Series 2816, 1.00% 2017 | 8,690 | 8,674 |
Tennessee Valley Authority 5.88% 2036 | 3,750 | 4,331 |
Tennessee Valley Authority 5.25% 2039 | 15,315 | 16,432 |
CoBank, ACB 7.875% 20185 | 2,285 | 2,753 |
CoBank, ACB 0.843% 20224,5 | 14,990 | 13,876 |
Fannie Mae 1.25% 2016 | 10,000 | 10,141 |
Fannie Mae 5.375% 2016 | 2,080 | 2,329 |
United States Agency for International Development, Republic of Egypt 4.45% 2015 | 5,000 | 5,332 |
239,153 | ||
Municipals 0.94% | ||
State of California, Various Purpose General Obligation Bonds, 7.50% 2034 | 2,200 | 2,808 |
State of California, Various Purpose General Obligation Bonds, 7.30% 2039 | 1,890 | 2,384 |
State of California, Various Purpose General Obligation Bonds, 7.35% 2039 | 3,260 | 4,169 |
State of California, Various Purpose General Obligation Bonds, 7.55% 2039 | 865 | 1,125 |
State of California, Various Purpose General Obligation Bonds, 7.60% 2040 | 22,040 | 29,194 |
State of California, Various Purpose General Obligation Bonds, 7.625% 2040 | 2,900 | 3,830 |
State of California, Various Purpose General Obligation Bonds, 5.00% 2043 | 2,125 | 2,163 |
State of Florida, Hurricane Catastrophe Fund Finance Corp., Revenue Bonds, Series 2013-A, 2.995% 2020 | 21,000 | 19,902 |
State of North Carolina, Eastern Municipal Power Agency, Power System Revenue Refunding Bonds, | ||
(Build America Bonds — Direct Payment), Series 2010-D, 3.076% 2016 | 10,450 | 10,912 |
State of New Jersey, General Obligation Refunding Bonds, Series H, | ||
Assured Guaranty Municipal insured, 5.25% 2015 | 8,000 | 8,602 |
State of North Carolina, Eastern Municipal Power Agency, Power System Revenue Refunding Bonds, | ||
Series 2003-E, 5.55% 2014 | 1,625 | 1,625 |
86,714 | ||
Asset-backed obligations3 0.16% | ||
Hertz Vehicle Financing LLC, Rental Car Asset-backed Notes, Series 2013-1A, Class A-2, 1.83% 20195 | 8,000 | 7,857 |
MBNA Credit Card Master Note Trust, Series 2004-1, Class B, 4.45% 2016 | 2,750 | 2,770 |
Aesop Funding LLC, Series 2013-2A, Class A, 2.97% 20205 | 2,575 | 2,623 |
CenterPoint Energy Transition Bond Co. III, LLC, Series 2008, Class A-2, 5.234% 2023 | 1,500 | 1,705 |
Home Equity Mortgage Trust, Series 2006-6, Class 2A-1, 0.265% 20374 | 1,523 | 244 |
15,199 | ||
Total bonds, notes & other debt instruments (cost: $8,381,060,000) | 8,408,469 | |
Convertible securities 0.02% | ||
Miscellaneous 0.02% | ||
Other convertible securities in initial period of acquisition | 1,473 | |
Total convertible securities (cost: $1,353,000) | 1,473 | |
Preferred securities 0.11% | ||
Value | ||
Financials 0.08% | Shares | (000) |
Citigroup Inc, Series K, depositary shares | 208,000 | $ 5,277 |
Goldman Sachs Group, Inc., Series J, 5.50% depositary shares | 88,000 | 1,968 |
7,245 | ||
Miscellaneous 0.03% | ||
Other preferred securities in initial period of acquisition | 2,640 | |
Total preferred securities (cost: $10,208,000) | 9,885 | |
Common stocks 0.06% | ||
Industrials 0.06% | ||
Beech Holdings, LLC10,11,12 | 627,178 | 5,102 |
Consumer discretionary 0.00% | ||
American Media, Inc.5,10,11 | 50,013 | 256 |
Revel AC, Inc.10,11,12 | 19,511 | 94 |
Adelphia Recovery Trust, Series ACC-111 | 2,409,545 | 5 |
Adelphia Recovery Trust, Series ACC-6B10,11 | 500,000 | — |
355 | ||
Total common stocks (cost: $9,846,000) | 5,457 | |
Principal amount | ||
Short-term securities 14.24% | (000) | |
Freddie Mac 0.07%–0.15% due 1/23–10/6/2014 | $554,100 | 553,858 |
Federal Home Loan Bank 0.08%–0.18% due 1/2–7/15/2014 | 168,200 | 168,133 |
Coca-Cola Co. 0.11%–0.13% due 1/24–4/10/20145 | 83,500 | 83,478 |
Private Export Funding Corp. 0.13%–0.23% due 2/12–4/9/20145 | 74,400 | 74,378 |
ExxonMobil Corp. 0.07%–0.08% due 1/2–1/21/2014 | 70,000 | 69,998 |
National Rural Utilities Cooperative Finance Corp. 0.09%–0.10% due 1/9–2/7/2014 | 65,500 | 65,496 |
Fannie Mae 0.055%–0.12% due 2/26–5/1/2014 | 55,100 | 55,087 |
U.S. Treasury Bill 0.126% due 8/21/2014 | 40,000 | 39,982 |
Federal Farm Credit Banks 0.13% due 7/21/2014 | 35,300 | 35,277 |
IBM Corp. 0.05% due 1/28/20145 | 34,200 | 34,199 |
John Deere Financial Ltd. 0.08% due 1/10/20145 | 33,000 | 32,999 |
Tennessee Valley Authority 0.10% due 3/20/2014 | 22,700 | 22,696 |
Wal-Mart Stores, Inc. 0.05% due 2/10/20145 | 20,100 | 20,099 |
Emerson Electric Co. 0.05% due 1/29/20145 | 20,000 | 19,999 |
Wells Fargo & Co. 0.13% due 2/4/2014 | 15,000 | 14,998 |
Army and Air Force Exchange Service 0.11% due 3/17/20145 | 14,900 | 14,895 |
Canada Bill 0.895%–0.934% due 5/22/2014 | CAD15,800 | 14,797 |
Total short-term securities (cost: $1,320,441,000) | 1,320,369 | |
Total investment securities (cost: $9,722,908,000) | 9,745,653 | |
Other assets less liabilities | (473,568) | |
Net assets | $9,272,085 |
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
1 | A portion of this security was pledged as collateral. The total value of pledged collateral was $3,674,000, which represented ..04% of the net assets of the fund. |
2 | Index-linked bond whose principal amount moves with a government price index. |
3 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
4 | Coupon rate may change periodically. |
5 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $1,056,490,000, which represented 11.39% of the net assets of the fund. |
6 | Scheduled interest and/or principal payment was not received. |
7 | Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $55,644,000, which represented 0.60% of the net assets of the fund. |
8 | Step bond; coupon rate will increase at a later date. |
9 | Payment in kind; the issuer has the option of paying additional securities in lieu of cash. |
10 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $5,452,000, which represented .06% of the net assets of the fund. |
11 | Security did not produce income during the last 12 months. |
12 | 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. |
Percent | ||||
Cost | Value | of net | ||
Acquisition dates | (000) | (000) | assets | |
Beech Holdings, LLC | 1/26/2009–11/29/2011 | $ 6,631 | $ 5,102 | .06% |
Revel AC, Inc. | 12/7/2011–12/13/2011 | 2,194 | 94 | .00 |
Total restricted securities | $8,825 | $5,196 | .06% |
Key to abbreviations and symbols
CAD = Canadian dollars
€ = Euros
£ = British pounds
MXN = Mexican pesos
Global Bond FundSM
Investment portfolio
December 31, 2013
Bonds, notes & other debt instruments 92.00% | ||
Principal amount | Value | |
Euros 22.58% | (000) | (000) |
Spanish Government 3.80% 2017 | € 2,080 | US$ 3,011 |
Spanish Government 5.50% 2017 | 18,415 | 28,147 |
Spanish Government 3.75% 2018 | 2,100 | 3,025 |
Spanish Government 4.50% 2018 | 16,730 | 24,792 |
Spanish Government 5.85% 2022 | 17,225 | 26,923 |
Spanish Government 5.40% 2023 | 90,320 | 136,604 |
Italian Government 4.75% 2017 | 17,845 | 26,615 |
Italian Government 4.75% 2017 | 13,525 | 20,200 |
Italian Government 3.50% 2018 | 4,290 | 6,145 |
Italian Government 4.50% 2019 | 4,150 | 6,174 |
Italian Government 4.75% 2021 | 11,125 | 16,580 |
Italian Government 4.50% 2024 | 2,000 | 2,856 |
Irish Government 5.50% 2017 | 3,325 | 5,216 |
Irish Government 4.50% 2018 | 3,930 | 6,001 |
Irish Government 4.50% 2020 | 22,255 | 33,526 |
Irish Government 5.00% 2020 | 2,050 | 3,179 |
Irish Government 3.90% 2023 | 8,625 | 12,298 |
Belgium (Kingdom of), Series 69, 1.25% 2018 | 6,925 | 9,556 |
Belgium (Kingdom of), Series 67, 3.00% 2019 | 7,280 | 10,788 |
Belgium (Kingdom of), Series 68, 2.25% 2023 | 13,065 | 17,526 |
German Government, Series 154, 2.25% 2014 | 1,080 | 1,494 |
German Government, Series 159, 2.00% 2016 | 3,265 | 4,661 |
German Government 3.50% 2016 | 1,470 | 2,155 |
German Government, Series 6, 3.75% 2017 | 3,930 | 5,949 |
German Government 4.25% 2017 | 3,150 | 4,892 |
German Government 2.00% 2022 | 745 | 1,055 |
German Government 6.25% 2030 | 2,000 | 4,087 |
German Government, Series 00, 5.50% 2031 | 1,000 | 1,917 |
German Government 4.00% 2037 | 2,820 | 4,697 |
German Government, Series 8, 4.75% 2040 | 505 | 954 |
Portuguese Government 4.35% 2017 | 15,195 | 20,890 |
Portuguese Government 4.75% 2019 | 1,300 | 1,741 |
Portuguese Government 3.85% 2021 | 4,275 | 5,226 |
Hungarian Government 5.75% 2018 | 6,835 | 10,295 |
Hungarian Government 6.00% 2019 | 6,975 | 10,603 |
Hungarian Government 3.875% 2020 | 1,000 | 1,384 |
Greek Government 2.00%/3.00% 20231 | 1,315 | 1,226 |
Greek Government 2.00%/3.00% 20241 | 1,315 | 1,177 |
Greek Government 2.00%/3.00% 20251 | 1,315 | 1,138 |
Greek Government 2.00%/3.00% 20261 | 1,315 | 1,113 |
Greek Government 2.00%/3.00% 20271 | 1,320 | 1,098 |
Greek Government 2.00%/3.00% 20281 | 1,310 | 1,054 |
Greek Government 2.00%/3.00% 20291 | 1,315 | 1,036 |
Greek Government 2.00%/3.00% 20301 | 1,315 | 1,019 |
Greek Government 2.00%/3.00% 20311 | 1,315 | 999 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Euros (continued) | (000) | (000) |
Greek Government 2.00%/3.00% 20321 | €1,315 | US$ 989 |
Greek Government 2.00%/3.00% 20331 | 1,315 | 973 |
Greek Government 2.00%/3.00% 20341 | 1,315 | 967 |
Greek Government 2.00%/3.00% 20351 | 1,315 | 953 |
Greek Government 2.00%/3.00% 20361 | 1,315 | 954 |
Greek Government 2.00%/3.00% 20371 | 1,315 | 946 |
Greek Government 2.00%/3.00% 20381 | 1,315 | 943 |
Greek Government 2.00%/3.00% 20391 | 1,315 | 944 |
Greek Government 2.00%/3.00% 20401 | 1,315 | 939 |
Greek Government 2.00%/3.00% 20411 | 1,315 | 931 |
Greek Government 2.00%/3.00% 20421 | 1,315 | 938 |
Barclays Bank PLC 4.00% 20192 | 2,450 | 3,835 |
Barclays Bank PLC 6.00% 2021 | 5,325 | 8,297 |
HBOS PLC 4.375% 20193 | 155 | 214 |
Lloyds TSB Bank PLC 6.50% 2020 | 6,200 | 9,905 |
Slovenia (Republic of) 4.375% 2019 | 1,510 | 2,115 |
Slovenia (Republic of) 4.125% 2020 | 2,495 | 3,396 |
Slovenia (Republic of) 4.625% 2024 | 1,515 | 2,035 |
Merrill Lynch & Co., Inc. 4.625% 2018 | 4,875 | 7,292 |
Deutsche Genossenschaftsbank-Hypothekenbank AG, Series 1043, 4.00% 20162 | 2,800 | 4,228 |
Canadian Government 3.50% 2020 | 2,500 | 3,903 |
European Investment Bank 4.75% 2017 | 2,370 | 3,745 |
French Government O.A.T. Eurobond 3.25% 2045 | 2,715 | 3,597 |
Telecom Italia SpA 7.75% 2033 | 1,000 | 1,514 |
Telecom Italia SpA 5.25% 2055 | 1,600 | 1,755 |
HSBC Holdings PLC 6.00% 2019 | 1,675 | 2,682 |
Assicurazioni Generali SPA 7.75% 20423 | 600 | 951 |
Assicurazioni Generali SPA 10.125% 2042 | 800 | 1,422 |
Kraft Foods Inc. 2.375% 2021 | 1,445 | 1,965 |
Bank Nederlandse Gemeenten 3.75% 2014 | 1,320 | 1,828 |
Deutsche Telekom International Finance BV 7.50% 2033 | 875 | 1,758 |
Daimler AG, Series 6, 4.125% 2017 | 1,150 | 1,728 |
AT&T Inc. 6.125% 2015 | 1,100 | 1,616 |
National Grid Transco PLC 5.00% 2018 | 975 | 1,538 |
RCI Banque 2.875% 2018 | 1,080 | 1,533 |
Schaeffler Holding Finance BV 6.875% 20183,4 | 1,000 | 1,477 |
Koninklijke KPN NV 3.75% 2020 | 950 | 1,382 |
Imperial Tobacco Finance PLC 8.375% 2016 | 850 | 1,345 |
Anheuser-Busch InBev NV 8.625% 2017 | 750 | 1,272 |
Novartis Finance SA, 4.25% 2016 | 750 | 1,120 |
Schering-Plough Corp. 5.375% 2014 | 645 | 919 |
Austrian Government 4.00% 2016 | 550 | 830 |
U.S. Coatings Acquisition Inc. (Flash Dutch 2 BV) 5.75% 2021 | 500 | 722 |
Veolia Environnement 6.125% 2033 | 250 | 423 |
Roche Holdings, Inc. 5.625% 2016 | 225 | 342 |
Wind Acquisition SA 7.375% 2018 | 200 | 292 |
584,475 | ||
Japanese yen 5.72% | ||
Japanese Government, Series 317, 0.10% 2014 | ¥2,597,350 | 24,669 |
Japanese Government, Series 269, 1.30% 2015 | 3,795,000 | 36,561 |
Japanese Government, Series 284, 1.70% 2016 | 2,810,000 | 27,912 |
Japanese Government, Series 288, 1.70% 2017 | 50,000 | 502 |
Japanese Government, Series 310, 1.00% 2020 | 1,075,000 | 10,594 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Japanese yen (continued) | (000) | (000) |
Japanese Government, Series 312, 1.20% 2020 | ¥ 838,350 | US$ 8,364 |
Japanese Government, Series 315, 1.20% 2021 | 781,100 | 7,787 |
Japanese Government, Series 136, 1.60% 2032 | 2,265,950 | 22,061 |
Japanese Government, Series 21, 2.30% 2035 | 830,000 | 8,842 |
Japanese Government, Series 29, 2.40% 2038 | 80,000 | 870 |
148,162 | ||
Polish zloty 3.93% | ||
Polish Government, Series 1017, 5.25% 2017 | PLN144,697 | 50,967 |
Polish Government, Series 0718, 2.50% 2018 | 34,000 | 10,748 |
Polish Government, Series 1020, 5.25% 2020 | 20,000 | 7,110 |
Polish Government, Series 1021, 5.75% 2021 | 31,280 | 11,405 |
Polish Government, Series 0922, 5.75% 2022 | 58,890 | 21,536 |
101,766 | ||
Mexican pesos 3.86% | ||
United Mexican States Government, Series M, 6.25% 2016 | MXN147,200 | 11,867 |
United Mexican States Government, Series M10, 7.25% 2016 | 56,000 | 4,625 |
United Mexican States Government, Series M, 5.00% 2017 | 202,000 | 15,612 |
United Mexican States Government, Series M10, 7.75% 2017 | 90,000 | 7,573 |
United Mexican States Government 4.00% 20195 | 35,438 | 3,005 |
United Mexican States Government, Series M, 8.00% 2020 | 323,200 | 27,781 |
United Mexican States Government, Series M20, 10.00% 2024 | 69,000 | 6,761 |
United Mexican States Government, Series M30, 10.00% 2036 | 155,000 | 15,108 |
United Mexican States Government, Series M30, 8.50% 2038 | 57,000 | 4,844 |
United Mexican States Government 4.00% 20405 | 35,438 | 2,779 |
99,955 | ||
British pounds 3.12% | ||
United Kingdom 2.25% 2014 | £ 3,610 | 5,998 |
United Kingdom 2.75% 2015 | 3,910 | 6,627 |
United Kingdom 3.75% 2020 | 2,500 | 4,476 |
United Kingdom 3.75% 2021 | 15,855 | 28,275 |
United Kingdom 1.75% 2022 | 5,000 | 7,567 |
United Kingdom 2.25% 2023 | 4,440 | 6,874 |
United Kingdom 4.75% 2030 | 1,000 | 1,927 |
United Kingdom 4.50% 2034 | 1,380 | 2,596 |
United Kingdom 4.25% 2040 | 6,620 | 12,105 |
United Kingdom 3.25% 2044 | 850 | 1,298 |
RSA Insurance Group PLC 9.375% 20393 | 569 | 1,117 |
France Télécom 5.00% 2016 | 500 | 886 |
Telecom Italia SpA and Telecom Italia Finance SA, Series 9, 5.625% 2015 | 500 | 873 |
Tesco PLC 5.50% 2033 | 100 | 173 |
80,792 | ||
Swedish kronor 1.56% | ||
Swedish Government, Series 1041, 6.75% 2014 | SKr 13,275 | 2,105 |
Swedish Government, Series 1051, 3.75% 2017 | 75,380 | 12,686 |
Swedish Government, Series 105, 3.50% 2022 | 109,290 | 18,527 |
Swedish Government, Series 3104, 3.50% 20285 | 34,418 | 7,144 |
40,462 | ||
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Norwegian kroner 1.46% | (000) | (000) |
Norwegian Government 4.25% 2017 | NKr115,210 | US$ 20,485 |
Norwegian Government 4.50% 2019 | 55,960 | 10,225 |
Norwegian Government 3.75% 2021 | 40,625 | 7,148 |
37,858 | ||
Hungarian forints 1.31% | ||
Hungarian Government, Series 19/A, 6.50% 2019 | HUF2,547,750 | 12,739 |
Hungarian Government, Series 20A, 7.50% 2020 | 4,025,000 | 21,002 |
33,741 | ||
South Korean won 1.15% | ||
South Korean Government 5.50% 2017 | KRW 7,875,000 | 8,092 |
South Korean Government 5.75% 2018 | 3,850,000 | 4,043 |
South Korean Government, Series 2206, 3.75% 2022 | 7,508,700 | 7,232 |
South Korean Government, Series 2303, 3.00% 2023 | 11,425,250 | 10,366 |
29,733 | ||
Colombian pesos 0.83% | ||
Colombia (Republic of) Global 12.00% 2015 | COP 4,361,000 | 2,555 |
Colombia (Republic of), Series B, 5.00% 2018 | 18,763,900 | 9,364 |
Colombia (Republic of), Series B, 7.00% 2022 | 12,315,300 | 6,477 |
Colombia (Republic of) Global 9.85% 2027 | 1,630,000 | 1,067 |
Colombia (Republic of), Series B, 6.00% 2028 | 4,362,600 | 2,028 |
21,491 | ||
Israeli shekels 0.77% | ||
Israeli Government 5.50% 2017 | ILS30,660 | 9,873 |
Israeli Government 4.25% 2023 | 33,640 | 10,140 |
20,013 | ||
Brazilian reais 0.77% | ||
Brazil (Federal Republic of) 6.00% 20155 | BRL 597 | 255 |
Brazil (Federal Republic of) 6.00% 20185 | 26,493 | 11,075 |
Brazil (Federal Republic of) 6.00% 20205 | 11,934 | 4,931 |
Brazil (Federal Republic of) Global 12.50% 2022 | 7,600 | 3,608 |
19,869 | ||
Malaysian ringgits 0.58% | ||
Malaysian Government, Series 0210, 4.012% 2017 | MYR25,500 | 7,884 |
Malaysian Government, Series 0213, 3.26% 2018 | 18,200 | 5,469 |
Malaysian Government, Series 0203, 4.24% 2018 | 5,000 | 1,554 |
14,907 | ||
Canadian dollars 0.54% | ||
Canadian Government 1.25% 2018 | C$3,035 | 2,793 |
Canadian Government 3.25% 2021 | 6,620 | 6,597 |
Canada Housing Trust 3.35% 2020 | 3,250 | 3,200 |
Hydro One Inc. 5.49% 2040 | 750 | 806 |
Rogers Communications Inc. 5.80% 2016 | 625 | 639 |
14,035 | ||
Russian rubles 0.51% | ||
Russian Federation 6.20% 2018 | RUB 94,600 | 2,816 |
Russian Federation 7.50% 2018 | 333,960 | 10,421 |
13,237 | ||
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Turkish lira 0.31% | (000) | (000) |
Turkey (Republic of) 3.00% 20215 | TRY3,125 | US$ 1,412 |
Turkey (Republic of) 3.00% 20225 | 9,987 | 4,504 |
Turkey (Republic of) 9.50% 2022 | 4,800 | 2,156 |
8,072 | ||
Australian dollars 0.27% | ||
Queensland Treasury Corp., Series 17, 6.00% 2017 | A$ 500 | 488 |
Queensland Treasury Corp., Series 24, 5.75% 2024 | 5,800 | 5,536 |
European Investment Bank 6.125% 2017 | 1,000 | 964 |
6,988 | ||
South African rand 0.20% | ||
South Africa (Republic of), Series R-2023, 7.75% 2023 | ZAR54,250 | 5,130 |
Chilean pesos 0.14% | ||
Chilean Government 3.00% 20185 | CLP1,422,250 | 2,806 |
Chilean Government 3.00% 20225 | 361,391 | 740 |
3,546 | ||
Philippine pesos 0.13% | ||
Philippines (Republic of), Series 5-67, 6.25% 2014 | PHP102,350 | 2,315 |
Philippines (Republic of) 3.90% 2022 | 10,000 | 221 |
Philippines (Republic of) 6.25% 2036 | 35,000 | 840 |
3,376 | ||
Thai baht 0.11% | ||
Thai Government 3.625% 2023 | THB96,650 | 2,884 |
U.S. dollars 42.15% | ||
U.S. Treasury 0.50% 2014 | US$ 480 | 481 |
U.S. Treasury 1.25% 2014 | 893 | 894 |
U.S. Treasury 2.625% 2014 | 2,250 | 2,283 |
U.S. Treasury 0.375% 2015 | 4,105 | 4,111 |
U.S. Treasury 0.25% 2016 | 6,125 | 6,088 |
U.S. Treasury 0.375% 2016 | 5,625 | 5,617 |
U.S. Treasury 1.00% 2016 | 9,000 | 9,078 |
U.S. Treasury 1.50% 2016 | 1,865 | 1,908 |
U.S. Treasury 3.00% 2016 | 205 | 218 |
U.S. Treasury 4.625% 2016 | 1,350 | 1,499 |
U.S. Treasury 5.125% 2016 | 2,800 | 3,103 |
U.S. Treasury 7.50% 2016 | 1,225 | 1,460 |
U.S. Treasury 0.625% 2017 | 1,360 | 1,334 |
U.S. Treasury 0.75% 2017 | 260 | 254 |
U.S. Treasury 1.00% 2017 | 20,685 | 20,733 |
U.S. Treasury 2.75% 20176 | 15,125 | 16,014 |
U.S. Treasury 0.625% 2018 | 4,350 | 4,194 |
U.S. Treasury 2.625% 2018 | 3,750 | 3,935 |
U.S. Treasury 3.50% 2018 | 15,275 | 16,579 |
U.S. Treasury 1.375% 2020 | 18,525 | 17,538 |
U.S. Treasury 1.625% 2022 | 57,675 | 51,984 |
U.S. Treasury 1.625% 2022 | 11,750 | 10,659 |
U.S. Treasury 1.75% 2023 | 3,900 | 3,509 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
U.S. dollars (continued) | (000) | (000) |
U.S. Treasury 2.00% 2023 | US$11,000 | US$10,187 |
U.S. Treasury 2.50% 2023 | 55,775 | 53,465 |
U.S. Treasury 2.75% 2023 | 17,750 | 17,335 |
U.S. Treasury 6.00% 2026 | 2,825 | 3,600 |
U.S. Treasury 6.50% 2026 | 2,825 | 3,767 |
U.S. Treasury 4.375% 2040 | 4,000 | 4,331 |
U.S. Treasury 3.75% 2041 | 3,000 | 2,914 |
U.S. Treasury 2.875% 2043 | 3,135 | 2,531 |
U.S. Treasury 3.625% 2043 | 3,000 | 2,822 |
U.S. Treasury Inflation-Protected Security 1.875% 20155 | 6,544 | 6,902 |
U.S. Treasury Inflation-Protected Security 0.125% 20175 | 2,571 | 2,644 |
U.S. Treasury Inflation-Protected Security 0.125% 20185 | 4,951 | 5,051 |
U.S. Treasury Inflation-Protected Security 0.125% 20235 | 860 | 812 |
U.S. Treasury Inflation-Protected Security 0.375% 20235 | 18,266 | 17,605 |
U.S. Treasury Inflation-Protected Security 2.375% 20255 | 1,425 | 1,638 |
U.S. Treasury Inflation-Protected Security 0.75% 20425 | 1,034 | 831 |
U.S. Treasury Inflation-Protected Security 0.625% 20435 | 1,219 | 937 |
Fannie Mae, Series 2012-M17, Class A2, multifamily 2.184% 20222 | 2,000 | 1,825 |
Fannie Mae, Series 2012-M9, Class A2, multifamily 2.482% 20222 | 1,747 | 1,646 |
Fannie Mae 3.50% 20252 | 879 | 922 |
Fannie Mae 3.50% 20252 | 580 | 608 |
Fannie Mae 2.50% 20272 | 178 | 177 |
Fannie Mae 2.50% 20282 | 1,430 | 1,420 |
Fannie Mae 2.50% 20282 | 1,372 | 1,362 |
Fannie Mae 2.50% 20282 | 993 | 986 |
Fannie Mae 2.50% 20282 | 991 | 984 |
Fannie Mae 2.50% 20282 | 991 | 983 |
Fannie Mae 2.50% 20282 | 989 | 982 |
Fannie Mae 2.50% 20282 | 989 | 982 |
Fannie Mae 2.50% 20282 | 813 | 806 |
Fannie Mae 2.50% 20282 | 528 | 523 |
Fannie Mae 2.50% 20282 | 192 | 191 |
Fannie Mae 2.00% 20292 | 1,200 | 1,156 |
Fannie Mae 4.00% 20292 | 1,125 | 1,192 |
Fannie Mae 6.50% 20362 | 424 | 474 |
Fannie Mae 6.00% 20372 | 193 | 215 |
Fannie Mae 6.00% 20372 | 53 | 58 |
Fannie Mae 6.00% 20372 | 24 | 27 |
Fannie Mae 6.00% 20372 | 15 | 16 |
Fannie Mae 2.63% 20382,3 | 182 | 193 |
Fannie Mae 6.00% 20382 | 459 | 509 |
Fannie Mae 3.517% 20392,3 | 14 | 14 |
Fannie Mae 3.779% 20392,3 | 5 | 5 |
Fannie Mae 3.935% 20392,3 | 4 | 4 |
Fannie Mae 3.94% 20392,3 | 79 | 84 |
Fannie Mae 3.962% 20392,3 | 4 | 4 |
Fannie Mae 3.987% 20392,3 | 123 | 131 |
Fannie Mae 6.00% 20392 | 736 | 817 |
Fannie Mae 4.00% 20402 | 68 | 70 |
Fannie Mae 4.50% 20402 | 878 | 932 |
Fannie Mae 6.00% 20402 | 90 | 100 |
Fannie Mae 2.923% 20412,3 | 683 | 706 |
Fannie Mae 3.556% 20412,3 | 2,073 | 2,155 |
Fannie Mae 4.00% 20412 | 1,810 | 1,867 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
U.S. dollars (continued) | (000) | (000) |
Fannie Mae 4.00% 20412 | US$ 55 | US$ 57 |
Fannie Mae 4.50% 20412 | 2,051 | 2,178 |
Fannie Mae 3.50% 20422 | 1,298 | 1,292 |
Fannie Mae 3.50% 20422 | 716 | 712 |
Fannie Mae 3.50% 20422 | 437 | 436 |
Fannie Mae 4.00% 20422 | 3,265 | 3,369 |
Fannie Mae 3.00% 20432 | 16,714 | 15,917 |
Fannie Mae 3.50% 20432 | 1,194 | 1,189 |
Fannie Mae 3.50% 20432 | 685 | 682 |
Fannie Mae 4.00% 20432 | 1,577 | 1,629 |
Fannie Mae 4.00% 20432 | 1,405 | 1,451 |
Fannie Mae 4.00% 20432 | 498 | 514 |
Fannie Mae 3.50% 20442 | 27,075 | 26,904 |
Fannie Mae 4.00% 20442 | 650 | 669 |
Fannie Mae 4.50% 20442 | 3,000 | 3,180 |
Freddie Mac 2.50% 2016 | 625 | 654 |
Freddie Mac 1.00% 2017 | 10,000 | 9,946 |
Freddie Mac 0.75% 2018 | 500 | 486 |
Freddie Mac, Series K711, Class A2, multifamily 1.73% 20192 | 2,000 | 1,938 |
Freddie Mac, Series K712, Class A2, multifamily 1.869% 20192 | 1,530 | 1,477 |
Freddie Mac, Series K710, Class A2, multifamily 1.883% 20192 | 1,535 | 1,507 |
Freddie Mac, Series K019, Class A2, multifamily 2.272% 20222 | 1,500 | 1,395 |
Freddie Mac, Series K021, Class A2, multifamily 2.396% 20222 | 1,840 | 1,719 |
Freddie Mac, Series K025, Class A2, multifamily 2.682% 20222 | 2,000 | 1,897 |
Freddie Mac, Series 3213, Class OG, principal only, 0% 20362 | 35 | 32 |
Freddie Mac, Series 3292, Class BO, principal only, 0% 20372 | 164 | 150 |
Freddie Mac 3.724% 20392,3 | 6 | 7 |
Freddie Mac 4.50% 20392 | 64 | 68 |
Freddie Mac 6.50% 20392 | 937 | 1,043 |
Hungarian Government 4.125% 2018 | 5,380 | 5,402 |
Hungarian Government 6.25% 2020 | 11,020 | 11,943 |
Hungarian Government 5.375% 2023 | 4,290 | 4,257 |
Latvia (Republic of) 2.75% 2020 | 8,925 | 8,557 |
Latvia (Republic of) 5.25% 2021 | 5,530 | 5,954 |
Polish Government 6.375% 2019 | 6,225 | 7,291 |
Polish Government 5.125% 2021 | 3,500 | 3,811 |
Polish Government 5.00% 2022 | 1,475 | 1,580 |
Bank of America Corp. 3.75% 2016 | 225 | 239 |
Bank of America Corp. 5.75% 2017 | 405 | 461 |
Bank of America Corp. 5.65% 2018 | 285 | 325 |
Bank of America Corp. 2.60% 2019 | 2,380 | 2,392 |
Bank of America Corp. 7.625% 2019 | 285 | 354 |
Bank of America Corp. 3.30% 2023 | 6,525 | 6,176 |
Bank of America Corp. 4.10% 2023 | 1,350 | 1,356 |
Bank of America Corp., Series U, junior subordinated 5.20% noncumulative (undated)3 | 1,020 | 903 |
JPMorgan Chase & Co. 3.45% 2016 | 1,500 | 1,574 |
JPMorgan Chase & Co. 1.625% 2018 | 7,570 | 7,417 |
JPMorgan Chase & Co. 3.25% 2022 | 1,000 | 959 |
JPMorgan Chase & Co., Series Q, junior subordinated 5.15% (undated)3 | 650 | 587 |
Bermudan Government 5.603% 20207 | 1,520 | 1,642 |
Bermudan Government 4.138% 20237 | 300 | 288 |
Bermudan Government 4.854% 20247 | 8,210 | 8,225 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-CIBC12, Class A-3B, 5.289% 20372,3 | 33 | 33 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2006-CB15, Class A-4, 5.81% 20432,3 | 283 | 305 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2006-CB-16, Class A1A, 5.546% 20452 | 480 | 527 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP7, Class A-4, 5.863% 20452,3 | 1,250 | 1,367 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2011-C4, Class A-2, 3.341% 20462,7 | 1,125 | 1,174 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2011-C3A, Class A-2, 3.673% 20462,7 | 2,500 | 2,624 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2007-CB19, Class A-4, 5.706% 20492,3 | 2,000 | 2,224 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2007-C1, Class A-4, 5.716% 20512 | 1,500 | 1,649 |
Sprint Capital Corp. 6.90% 2019 | 3,500 | 3,841 |
Sprint Nextel Corp. 7.00% 2020 | 1,250 | 1,359 |
Sprint Corp. 7.875% 20237 | 4,075 | 4,391 |
Sprint Capital Corp. 8.75% 2032 | 250 | 269 |
Greenwich Capital Commercial Funding Corp., Series 2006-GG7, Class A-4, 5.82% 20382,3 | 884 | 966 |
Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A-4, 5.444% 20392 | 4,500 | 4,950 |
Greenwich Capital Commercial Funding Corp., Series 2007-GG11, Class A-1-A, 5.704% 20492 | 1,841 | 2,077 |
Greenwich Capital Commercial Funding Corp., Series 2007-GG11, Class A-M, 5.867% 20492,3 | 1,510 | 1,658 |
First Data Corp. 6.75% 20207 | 2,850 | 2,978 |
First Data Corp. 11.75% 20217 | 2,000 | 2,120 |
First Data Corp. 12.625% 2021 | 3,398 | 4,005 |
Goldman Sachs Group, Inc. 2.90% 2018 | 4,095 | 4,170 |
Goldman Sachs Group, Inc. 7.50% 2019 | 800 | 975 |
Goldman Sachs Group, Inc. 3.625% 2023 | 3,690 | 3,574 |
Goldman Sachs Group, Inc. 6.25% 2041 | 270 | 311 |
Verizon Communications Inc. 5.15% 2023 | 3,670 | 3,942 |
Verizon Communications Inc. 6.55% 2043 | 4,285 | 5,014 |
Slovenia (Republic of) 4.75% 20187 | 1,620 | 1,669 |
Slovenia (Republic of) 5.50% 20227 | 425 | 426 |
Slovenia (Republic of) 5.50% 2022 | 200 | 200 |
Slovenia (Republic of) 5.85% 20237 | 6,425 | 6,554 |
Lithuania (Republic of) 7.375% 2020 | 3,000 | 3,620 |
Lithuania (Republic of) 6.125% 20217 | 2,080 | 2,367 |
Lithuania (Republic of) 6.625% 2022 | 1,500 | 1,757 |
Lithuania (Republic of) 6.625% 20227 | 750 | 878 |
Government National Mortgage Assn. 3.00% 20272 | 321 | 330 |
Government National Mortgage Assn. 2.50% 20282 | 2,777 | 2,782 |
Government National Mortgage Assn. 2.50% 20282 | 239 | 239 |
Government National Mortgage Assn. 2.50% 20282 | 168 | 168 |
Government National Mortgage Assn. 2.50% 20282 | 168 | 168 |
Government National Mortgage Assn. 2.50% 20282 | 145 | 146 |
Government National Mortgage Assn. 4.50% 20432 | 3,957 | 4,238 |
State of California, Various Purpose General Obligation Bonds, 7.60% 2040 | 4,920 | 6,517 |
State of California, Various Purpose General Obligation Bonds, 7.625% 2040 | 285 | 376 |
State of California, Various Purpose General Obligation Bonds, 5.00% 2043 | 520 | 529 |
StatoilHydro ASA 1.80% 2016 | 1,500 | 1,534 |
Statoil ASA 0.531% 20183 | 1,575 | 1,577 |
Statoil ASA 1.95% 2018 | 1,460 | 1,448 |
Statoil ASA 3.70% 2024 | 1,950 | 1,937 |
Statoil ASA 4.25% 2041 | 1,000 | 917 |
Kinder Morgan Energy Partners, LP 6.00% 2017 | 140 | 157 |
Kinder Morgan Energy Partners, LP 3.45% 2023 | 2,250 | 2,091 |
Kinder Morgan Energy Partners, LP 3.50% 2023 | 1,600 | 1,470 |
Kinder Morgan Energy Partners, LP 4.15% 2024 | 3,675 | 3,557 |
Morgan Stanley 2.125% 2018 | 2,275 | 2,257 |
Morgan Stanley, Series F, 5.625% 2019 | 4,000 | 4,550 |
AbbVie Inc. 1.75% 2017 | 760 | 759 |
AbbVie Inc. 2.90% 2022 | 3,045 | 2,847 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
U.S. dollars (continued) | (000) | (000) |
AbbVie Inc. 4.40% 2042 | US$3,230 | US$3,013 |
MetroPCS Wireless, Inc. 6.25% 20217 | 2,725 | 2,837 |
T-Mobile US, Inc. 6.731% 2022 | 1,250 | 1,308 |
MetroPCS Wireless, Inc. 6.625% 20237 | 2,375 | 2,461 |
Cox Communications, Inc. 2.95% 20237 | 7,300 | 6,381 |
Sierra Pacific Power Co., General and Refunding Mortgage Notes, Series T, 3.375% 2023 | 2,450 | 2,366 |
MidAmerican Energy Holdings Co. 3.75% 20237 | 3,880 | 3,786 |
Deutsche Telekom International Finance BV 3.125% 20167 | 760 | 792 |
Deutsche Telekom International Finance BV 9.25% 2032 | 2,980 | 4,416 |
Deutsche Telekom International Finance BV 4.875% 20427 | 150 | 143 |
Prologis, Inc. 6.125% 2016 | 690 | 778 |
Prologis, Inc. 3.35% 2021 | 2,595 | 2,521 |
Prologis, Inc. 4.25% 2023 | 2,075 | 2,051 |
Burlington Northern Santa Fe LLC 5.75% 2018 | 40 | 46 |
Burlington Northern Santa Fe LLC 4.70% 2019 | 370 | 406 |
Burlington Northern Santa Fe LLC 3.45% 2021 | 2,730 | 2,697 |
Burlington Northern Santa Fe LLC 4.10% 2021 | 1,000 | 1,028 |
Burlington Northern Santa Fe LLC 3.05% 2022 | 1,100 | 1,032 |
Glencore Xstrata LLC 1.70% 20167 | 300 | 300 |
Xstrata Canada Financial Corp. 2.70% 20173,7 | 1,250 | 1,265 |
Glencore Xstrata LLC 1.604% 20193,7 | 2,475 | 2,413 |
Xstrata Canada Financial Corp. 4.95% 20217 | 200 | 203 |
Glencore Xstrata LLC 4.125% 20237 | 890 | 832 |
Turkey (Republic of) 4.557% 20187 | 775 | 765 |
Turkey (Republic of) 6.25% 2022 | 3,120 | 3,248 |
Turkey (Republic of) 6.75% 2040 | 870 | 845 |
Hilton USA Trust, Series 2013-HLF, AFX, 2.662% 20302,7 | 4,765 | 4,726 |
Westfield Group 7.125% 20187 | 3,070 | 3,647 |
Westfield Group 4.625% 20217 | 500 | 528 |
Westfield Group 3.375% 20227 | 540 | 511 |
Reynolds Group Inc. 9.00% 2019 | 1,250 | 1,347 |
Reynolds Group Inc. 9.875% 2019 | 680 | 760 |
Reynolds Group Inc. 5.75% 2020 | 2,465 | 2,527 |
Dollar General Corp. 3.25% 2023 | 4,890 | 4,500 |
Banc of America Commercial Mortgage Inc., Series 2006-3, Class A-4, 5.889% 20442,3 | 547 | 596 |
Banc of America Commercial Mortgage Inc., Series 2006-1, Class A1A, 5.378% 20452,3 | 1,064 | 1,146 |
Banc of America Commercial Mortgage Inc., Series 2007-3, Class A-4, 5.649% 20492,3 | 835 | 924 |
Banc of America Commercial Mortgage Inc., Series 2007-4, Class A-M, 5.813% 20512,3 | 955 | 1,055 |
Banc of America Commercial Mortgage Inc., Series 2008-1, Class A-4, 6.207% 20512,3 | 670 | 765 |
Odebrecht Offshore Drilling Finance Ltd. 6.75% 20222,7 | 4,273 | 4,384 |
Croatian Government 6.625% 2020 | 3,000 | 3,229 |
Croatian Government 6.625% 20207 | 580 | 624 |
Croatian Government 6.375% 20217 | 470 | 494 |
International Business Machines Corp. 0.75% 2015 | 900 | 904 |
International Business Machines Corp. 1.625% 2020 | 2,250 | 2,110 |
International Business Machines Corp. 3.375% 2023 | 1,300 | 1,267 |
Express Scripts Inc. 3.125% 2016 | 3,750 | 3,916 |
Express Scripts Inc. 3.90% 2022 | 350 | 350 |
Neiman Marcus Group LTD Inc., Term Loan B, 5.00% 20202,3,8 | 1,600 | 1,622 |
Neiman Marcus Group LTD Inc. 8.00% 20217 | 825 | 866 |
Neiman Marcus Group LTD Inc. 8.75% 20213,4,7 | 1,675 | 1,763 |
General Electric Co. 2.70% 2022 | 80 | 75 |
General Electric Capital Corp. 3.10% 2023 | 4,400 | 4,176 |
American International Group, Inc. 3.00% 2015 | 375 | 385 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
U.S. dollars (continued) | (000) | (000) |
American International Group, Inc. 3.80% 2017 | US$1,500 | US$1,603 |
American International Group, Inc. 3.375% 2020 | 1,500 | 1,509 |
American International Group, Inc. 4.125% 2024 | 705 | 701 |
Intelsat Jackson Holding Co. 7.25% 2020 | 350 | 385 |
Intelsat Jackson Holding Co. 6.625% 20227 | 3,175 | 3,286 |
Intelsat Jackson Holding Co. 6.625% 2022 | 450 | 466 |
Gazprom OJSC, Series 9, 6.51% 2022 | 3,775 | 4,072 |
Telecom Italia Capital SA 7.175% 2019 | 1,819 | 2,051 |
Telecom Italia Capital SA 7.20% 2036 | 466 | 451 |
Telecom Italia Capital SA 7.721% 2038 | 1,551 | 1,559 |
Citigroup Inc. 4.75% 2015 | 1,180 | 1,242 |
Citigroup Inc. 2.50% 2018 | 200 | 201 |
Citigroup Inc. 3.875% 2023 | 1,190 | 1,170 |
Citigroup Inc., Series D, junior subordinated 5.35% (undated)3 | 1,615 | 1,424 |
Dell, Inc. Term Loan B, 4.50% 20202,3,8 | 4,000 | 4,015 |
National Rural Utilities Cooperative Finance Corp. 10.375% 2018 | 2,850 | 3,856 |
Altria Group, Inc. 9.95% 2038 | 750 | 1,144 |
Altria Group, Inc. 4.50% 2043 | 2,500 | 2,209 |
Altria Group, Inc. 5.375% 2044 | 500 | 502 |
Leap Wireless International, Inc., Term Loan C, 4.75% 20202,3,8 | 2,264 | 2,272 |
Cricket Communications, Inc. 7.75% 2020 | 1,275 | 1,458 |
British American Tobacco International Finance PLC 2.125% 20177 | 575 | 582 |
British American Tobacco International Finance PLC 9.50% 20187 | 2,378 | 3,133 |
Frontier Communications Corp. 8.50% 2020 | 1,350 | 1,519 |
Frontier Communications Corp. 9.25% 2021 | 1,850 | 2,141 |
Citycenter, Term Loan B, 5.00% 20202,3,8 | 3,600 | 3,659 |
Realogy Corp., Letter of Credit, 4.25% 20162,3,8 | 21 | 21 |
Realogy Corp. 7.875% 20197 | 2,250 | 2,481 |
Realogy Corp. 7.625% 20207 | 1,000 | 1,128 |
Enbridge Energy Partners, LP, Series B, 6.50% 2018 | 820 | 955 |
Enbridge Energy Partners, LP 9.875% 2019 | 750 | 971 |
Enbridge Energy Partners, LP 5.20% 2020 | 1,535 | 1,648 |
Boyd Gaming Corp. 9.125% 2018 | 700 | 765 |
Boyd Gaming Corp. 9.00% 2020 | 2,525 | 2,778 |
CEMEX Finance LLC 7.25% 20217 | 1,750 | 1,816 |
CEMEX Finance LLC 9.375% 20227 | 1,505 | 1,704 |
Ford Motor Credit Co. 2.375% 2018 | 3,475 | 3,511 |
Inmet Mining Corp. 8.75% 20207 | 2,740 | 2,987 |
Inmet Mining Corp. 7.50% 20217 | 455 | 478 |
NII Capital Corp. 10.00% 2016 | 50 | 27 |
NII Capital Corp. 7.875% 20197 | 1,500 | 1,140 |
NII Capital Corp. 8.875% 2019 | 800 | 348 |
NII Capital Corp. 11.375% 20197 | 525 | 441 |
NII Capital Corp. 7.625% 2021 | 3,250 | 1,357 |
Petróleos Mexicanos 3.50% 2018 | 3,135 | 3,225 |
Rabobank Nederland/FI 4.625% 2023 | 3,170 | 3,193 |
Hospitality Properties Trust 6.30% 2016 | 2,000 | 2,160 |
Hospitality Properties Trust 6.70% 2018 | 905 | 1,016 |
Progress Energy, Inc. 6.05% 2014 | 1,000 | 1,011 |
Progress Energy, Inc. 7.05% 2019 | 1,210 | 1,451 |
Progress Energy, Inc. 7.75% 2031 | 550 | 708 |
Volvo Treasury AB 5.95% 20157 | 2,920 | 3,091 |
Viacom Inc. 4.25% 2023 | 2,450 | 2,446 |
Viacom Inc. 5.85% 2043 | 575 | 605 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
U.S. dollars (continued) | (000) | (000) |
HSBC Finance Corp. 0.669% 20163 | US$ 500 | US$ 499 |
HSBC Bank PLC 1.50% 20187 | 825 | 806 |
HSBC USA Inc. 2.625% 2018 | 1,475 | 1,501 |
HSBC Holdings PLC 4.00% 2022 | 175 | 180 |
Comcast Corp. 5.30% 2014 | 200 | 200 |
Comcast Corp. 6.30% 2017 | 1,020 | 1,188 |
Comcast Corp. 5.875% 2018 | 340 | 390 |
Comcast Corp. 6.95% 2037 | 820 | 1,008 |
Comcast Corp. 6.40% 2040 | 150 | 173 |
AvalonBay Communities, Inc. 3.625% 2020 | 2,900 | 2,933 |
Australia Government Agency-Guaranteed, Commonwealth Bank of Australia 2.90% 20147 | 1,240 | 1,263 |
Commonwealth Bank of Australia 0.75% 20172,7 | 1,650 | 1,652 |
Telefónica Emisiones, SAU 3.192% 2018 | 2,365 | 2,410 |
Telefónica Emisiones, SAU 4.57% 2023 | 500 | 493 |
CS First Boston Mortgage Securities Corp., Series 2004-C5, Class A-3, 4.499% 20372 | 32 | 33 |
CS First Boston Mortgage Securities Corp., Series 2006-C5, Class A-3, 5.311% 20392 | 1,405 | 1,524 |
CS First Boston Mortgage Securities Corp., Series 2007-C5, Class A4, 5.695% 20402,3 | 1,000 | 1,106 |
CS First Boston Mortgage Securities Corp., Series 2007-C2, Class A-M, 5.614% 20492,3 | 200 | 213 |
Bank of New York Mellon Corp. 3.95% 2025 | 2,900 | 2,872 |
Kinetic Concepts, Inc., Term Loan D1, 4.50% 20182,3,8 | 374 | 377 |
Kinetic Concepts, Inc. 10.50% 2018 | 1,405 | 1,623 |
Kinetic Concepts, Inc. 12.50% 2019 | 750 | 851 |
Norfolk Southern Corp. 5.75% 2016 | 985 | 1,077 |
Norfolk Southern Corp. 3.25% 2021 | 835 | 809 |
Norfolk Southern Corp. 3.00% 2022 | 1,000 | 945 |
Time Warner Inc. 4.05% 2023 | 2,565 | 2,558 |
Time Warner Inc. 6.50% 2036 | 240 | 271 |
Pernod Ricard SA 2.95% 20177 | 2,000 | 2,066 |
Pernod Ricard SA 4.45% 20227 | 720 | 729 |
Citigroup-Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class A-4, 5.218% 20442,3 | 1,150 | 1,220 |
Citigroup-Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class A-5, 5.617% 20482 | 1,387 | 1,515 |
Gardner Denver, Inc. Term Loan B, 4.25% 20202,3,8 | 2,244 | 2,251 |
Gardner Denver, Inc. 6.875% 20217 | 400 | 401 |
inVentiv Health Inc. 9.00% 20187 | 2,500 | 2,625 |
Morocco Government 5.50% 2042 | 3,100 | 2,611 |
UniCredito Italiano SpA 6.00% 20177 | 2,425 | 2,591 |
CenterPoint Energy Resources Corp. 4.50% 2021 | 2,415 | 2,577 |
NBC Universal Enterprise, Inc. 0.929% 20183,7 | 1,500 | 1,507 |
NBC Universal Enterprise, Inc. 1.974% 20197 | 800 | 783 |
NBCUniversal Media, LLC 5.15% 2020 | 250 | 280 |
Spectra Energy Partners, LP 2.95% 2018 | 610 | 619 |
Spectra Energy Partners, LP 4.75% 2024 | 1,855 | 1,892 |
CVS Caremark Corp. 4.00% 2023 | 2,500 | 2,496 |
PNC Financial Services Group, Inc. 2.854% 2022 | 2,670 | 2,480 |
American Express Co. 0.828% 20183 | 625 | 625 |
American Express Co. 1.55% 2018 | 1,875 | 1,832 |
Tennessee Valley Authority 5.88% 2036 | 500 | 578 |
Tennessee Valley Authority 5.25% 2039 | 1,750 | 1,878 |
Arch Coal, Inc., Term Loan B1, 6.25% 20182,3,8 | 1,571 | 1,553 |
Arch Coal, Inc. 7.00% 2019 | 1,125 | 900 |
Berkshire Hathaway Inc. 2.00% 2018 | 2,425 | 2,428 |
Select Medical Holdings Corp. 6.375% 2021 | 2,430 | 2,387 |
BNP Paribas 2.40% 2018 | 190 | 191 |
BNP Paribas 5.00% 2021 | 2,000 | 2,195 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
U.S. dollars (continued) | (000) | (000) |
Consumers Energy Co., First Mortgage Bonds, 6.125% 2019 | US$ 250 | US$ 295 |
CMS Energy Corp. 8.75% 2019 | 10 | 13 |
CMS Energy Corp. 6.25% 2020 | 30 | 35 |
CMS Energy Corp. 5.05% 2022 | 1,555 | 1,679 |
Consumers Energy Co. 3.375% 2023 | 345 | 336 |
Needle Merger Sub Corp. 8.125% 20197 | 2,200 | 2,313 |
Kimco Realty Corp., Series C, 4.904% 2015 | 235 | 245 |
Kimco Realty Corp. 5.70% 2017 | 500 | 559 |
Kimco Realty Corp. 6.875% 2019 | 1,250 | 1,491 |
Transocean Inc. 2.50% 2017 | 350 | 354 |
Transocean Inc. 6.375% 2021 | 710 | 798 |
Transocean Inc. 3.80% 2022 | 1,200 | 1,138 |
ConvaTec Finance International SA 8.25% 20194,7 | 2,200 | 2,258 |
DBUBS Mortgage Trust, Series 2011-LC1A, Class A1, 3.742% 20462,7 | 1,082 | 1,136 |
DBUBS Mortgage Trust, Series 2011-LC1A, Class A3, 5.002% 20462,7 | 1,000 | 1,105 |
SABMiller Holdings Inc. 2.45% 20177 | 200 | 205 |
SABMiller Holdings Inc. 3.75% 20227 | 775 | 778 |
SABMiller Holdings Inc. 4.95% 20427 | 1,230 | 1,222 |
Anheuser-Busch InBev NV 3.625% 2015 | 980 | 1,020 |
Anheuser-Busch InBev NV 7.75% 2019 | 700 | 875 |
Anheuser-Busch InBev NV 5.375% 2020 | 250 | 287 |
Developers Diversified Realty Corp. 7.50% 2017 | 1,000 | 1,166 |
Developers Diversified Realty Corp. 4.75% 2018 | 940 | 1,015 |
R.R. Donnelley & Sons Co. 7.875% 2021 | 1,250 | 1,394 |
R.R. Donnelley & Sons Co. 6.50% 2023 | 775 | 787 |
PTT Exploration & Production Ltd. 5.692% 20217 | 2,000 | 2,134 |
Mediacom LLC and Mediacom Capital Corp. 7.25% 2022 | 2,000 | 2,130 |
Forest Laboratories, Inc. 5.00% 20217 | 2,065 | 2,078 |
BP Capital Markets PLC 0.658% 20163 | 2,060 | 2,070 |
NGPL PipeCo LLC 9.625% 20197 | 2,100 | 2,063 |
QGOG Constellation SA 6.25% 20197 | 2,150 | 2,059 |
DaimlerChrysler North America Holding Corp. 2.40% 20177 | 2,000 | 2,032 |
Pacific Rubiales Energy Corp. 5.375% 20197 | 2,000 | 2,020 |
Canadian National Railway Co. 4.95% 2014 | 2,005 | 2,008 |
Gilead Sciences, Inc. 2.40% 2014 | 200 | 203 |
Gilead Sciences, Inc. 3.05% 2016 | 1,505 | 1,590 |
Gilead Sciences, Inc. 4.40% 2021 | 200 | 214 |
GlaxoSmithKline Capital Inc. 1.50% 2017 | 2,000 | 2,002 |
SRA International, Inc., Term Loan B, 6.50% 20182,3,8 | 1,471 | 1,460 |
SRA International, Inc. 11.00% 2019 | 500 | 523 |
FMG Resources 8.25% 20197 | 1,750 | 1,971 |
Williams Partners L.P. 4.125% 2020 | 375 | 385 |
Williams Partners L.P. and Williams Partners Finance Corp. 5.25% 2020 | 225 | 246 |
Williams Partners L.P. 4.50% 2023 | 1,340 | 1,331 |
PDC Energy Inc. 7.75% 2022 | 1,800 | 1,953 |
JBS SA 7.75% 20207 | 1,925 | 1,949 |
VPI Escrow Corp. 6.375% 20207 | 535 | 566 |
VPI Escrow Corp. 7.50% 20217 | 1,240 | 1,367 |
Standard Chartered PLC 3.85% 20157 | 1,670 | 1,737 |
Standard Chartered Bank 3.95% 20237 | 200 | 186 |
ConAgra Foods, Inc. 1.30% 2016 | 800 | 802 |
ConAgra Foods, Inc. 3.20% 2023 | 1,200 | 1,114 |
Cequel Communications Holdings I, LLC and Cequel Capital Corp. 6.375% 20207 | 1,825 | 1,880 |
JMC Steel Group Inc. 8.25% 20187 | 1,850 | 1,873 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
U.S. dollars (continued) | (000) | (000) |
Imperial Tobacco Finance PLC 3.50% 20237 | US$2,000 | US$1,866 |
Freescale Semiconductor, Inc. 6.00% 20227 | 1,825 | 1,852 |
Reynolds American Inc. 4.85% 2023 | 600 | 620 |
Reynolds American Inc. 6.15% 2043 | 1,125 | 1,215 |
Merrill Lynch Mortgage Trust, Series 2004-BPC1, Class A-5, 4.855% 20412,3 | 1,120 | 1,134 |
Merrill Lynch Mortgage Trust, Series 2007-C1, Class A-4, 5.858% 20502,3 | 630 | 699 |
Silver II Borrower S.C.A./Silver II U.S. Holdings, LLC 7.75% 20207 | 1,700 | 1,811 |
Altice Finco SA 6.50% 20227 | 1,300 | 1,316 |
Altice Finco SA 8.125% 20247 | 475 | 494 |
Teva Pharmaceutical Financial IV LLC, 2.25% 2020 | 1,900 | 1,807 |
Public Service Electric and Gas Co., Series E, 5.30% 2018 | 1,520 | 1,719 |
Michaels Stores, Inc. 7.50% 20183,4,7 | 600 | 627 |
Michaels Stores, Inc. 7.75% 2018 | 1,000 | 1,090 |
Caesars Entertainment Operating Co. 9.00% 2020 | 1,000 | 978 |
Caesars Entertainment Operating Co. 9.00% 2020 | 750 | 733 |
United Rentals, Inc. 7.375% 2020 | 1,500 | 1,671 |
Post Holdings, Inc. 6.75% 20217 | 825 | 856 |
Post Holdings, Inc. 7.375% 2022 | 750 | 806 |
LB-UBS Commercial Mortgage Trust, Series 2007-C2, Class A-3, 5.43% 20402 | 829 | 914 |
LB-UBS Commercial Mortgage Trust, Series 2007-C7, Class A-M, 6.164% 20452,3 | 615 | 704 |
Digicel Group Ltd. 8.25% 20207 | 1,550 | 1,614 |
Slovakia Government 4.375% 20227 | 1,500 | 1,554 |
Volkswagen International Finance NV 2.375% 20177 | 1,500 | 1,542 |
RCI Banque 3.50% 20187 | 1,500 | 1,535 |
Samson Investment Co. 10.25% 20207 | 1,400 | 1,533 |
US Investigations Services, Inc., Term Loan B, 4.75% 20152,3,8 | 172 | 172 |
US Investigations Services, Inc., Term Loan D, 7.75% 20152,3,8 | 697 | 695 |
US Investigations Services, Inc. 10.50% 20157 | 700 | 628 |
US Investigations Services, Inc. 11.75% 20167 | 45 | 32 |
Teekay Corp. 8.50% 2020 | 1,375 | 1,494 |
United Technologies Corp. 1.80% 2017 | 1,430 | 1,453 |
Western Gas Partners LP 4.00% 2022 | 1,500 | 1,432 |
Tenet Healthcare Corp. 8.125% 2022 | 1,325 | 1,431 |
Amgen Inc. 2.50% 2016 | 1,125 | 1,165 |
Amgen Inc. 2.125% 2017 | 250 | 253 |
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW17, Class A-4, 5.694% 20502,3 | 565 | 633 |
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW18, Class A-M, 6.084% 20502,3 | 690 | 784 |
Marks and Spencer Group PLC 6.25% 20177 | 1,250 | 1,403 |
Alcatel-Lucent USA Inc. 4.625% 20177 | 700 | 704 |
Alcatel-Lucent USA Inc. 6.75% 20207 | 450 | 469 |
Alcatel-Lucent USA Inc. 8.875% 20207 | 200 | 224 |
Ply Gem Industries, Inc. 8.25% 2018 | 1,298 | 1,389 |
Univision Communications Inc., Term Loan C3, 4.00% 20202,3,8 | 224 | 225 |
Univision Communications Inc. 8.50% 20217 | 1,040 | 1,149 |
Builders Firstsource 7.625% 20217 | 1,300 | 1,362 |
Total Capital International 1.55% 2017 | 540 | 540 |
Total Capital International 2.875% 2022 | 465 | 442 |
Total Capital Canada Ltd. 2.75% 2023 | 405 | 374 |
Wind Acquisition SA 11.75% 20177 | 825 | 879 |
Wind Acquisition SA 7.25% 20187 | 450 | 476 |
CEZ, a s 4.25% 20227 | 1,340 | 1,345 |
Russian Federation 3.25% 20177 | 800 | 837 |
Russian Federation 5.625% 20427 | 500 | 499 |
Regions Financial Corp. 7.75% 2014 | 29 | 31 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
U.S. dollars (continued) | (000) | (000) |
Regions Financial Corp. 5.75% 2015 | US$ 150 | US$ 160 |
Regions Financial Corp. 2.00% 2018 | 1,175 | 1,138 |
McClatchy Co. 9.00% 2022 | 1,175 | 1,298 |
Alpha Natural Resources, Inc. 6.00% 2019 | 500 | 434 |
Alpha Natural Resources, Inc. 6.25% 2021 | 1,000 | 860 |
Associated Materials, LLC and AMH New Finance, Inc. 9.125% 2017 | 1,200 | 1,287 |
Husky Energy Inc. 7.25% 2019 | 1,040 | 1,256 |
Iron Mountain Inc. 5.75% 2024 | 1,325 | 1,236 |
Korea Development Bank 8.00% 2014 | 1,225 | 1,229 |
Del Monte Corp. 7.625% 2019 | 1,175 | 1,223 |
LightSquared, Term Loan B, 12.00% 20142,4,8,9 | 1,014 | 1,212 |
Commercial Mortgage Trust, Series 2006-C8, Class A1A, 5.292% 20462 | 1,087 | 1,193 |
Nortek Inc. 10.00% 2018 | 700 | 776 |
Nortek Inc. 8.50% 2021 | 370 | 412 |
France Government Agency-Guaranteed, Société Finance 2.875% 20147 | 1,150 | 1,171 |
Coca-Cola Co. 3.20% 2023 | 1,215 | 1,169 |
Warner Music Group 11.50% 2018 | 1,000 | 1,155 |
Rio Tinto Finance (USA) Ltd. 2.875% 2022 | 1,230 | 1,147 |
DJO Finance LLC 9.75% 2017 | 315 | 322 |
DJO Finance LLC 7.75% 2018 | 310 | 317 |
DJO Finance LLC 8.75% 2018 | 125 | 138 |
DJO Finance LLC 9.875% 2018 | 335 | 362 |
Royal Bank of Canada 1.50% 2018 | 1,160 | 1,138 |
Hughes Satellite Systems Corp. 7.625% 2021 | 1,000 | 1,120 |
Academy Sports 9.25% 20197 | 1,000 | 1,110 |
Barclays Bank PLC 5.125% 2020 | 1,000 | 1,109 |
Roche Holdings, Inc. 6.00% 20197 | 228 | 267 |
Roche Holdings, Inc. 7.00% 20397 | 630 | 831 |
Koninklijke KPN NV 8.375% 2030 | 860 | 1,090 |
TransDigm Inc. 7.75% 2018 | 805 | 867 |
TransDigm Inc. 5.50% 2020 | 225 | 221 |
LSB Industries, Inc. 7.75% 20197 | 1,025 | 1,081 |
U.S. Coatings Acquisition Inc. (Flash Dutch 2 BV) 7.375% 20217 | 1,000 | 1,071 |
Holcim Ltd. 5.15% 20237 | 1,040 | 1,068 |
QBE Insurance Group Ltd. 2.40% 20187 | 1,100 | 1,057 |
Kraft Foods Inc. 2.25% 2017 | 455 | 461 |
Kraft Foods Inc. 5.375% 2020 | 523 | 590 |
Chinos Holdings, Inc. 7.75% 20193,4,7 | 1,025 | 1,051 |
Toronto-Dominion Bank 2.375% 2016 | 1,000 | 1,039 |
Unum Group 5.625% 2020 | 945 | 1,036 |
Jaguar Land Rover PLC 7.75% 20187 | 955 | 1,033 |
Shell International Finance BV 4.00% 2014 | 1,010 | 1,018 |
Simon Property Group, LP 10.35% 2019 | 750 | 1,015 |
Chevron Corp. 1.718% 2018 | 250 | 249 |
Chevron Corp. 2.355% 2022 | 820 | 746 |
ERP Operating LP 4.625% 2021 | 940 | 991 |
Devon Energy Corp. 3.25% 2022 | 1,010 | 963 |
Wachovia Bank Commercial Mortgage Trust, Series 2007-C30, Class A-5, 5.342% 20432 | 90 | 99 |
Wachovia Bank Commercial Mortgage Trust, Series 2007-C31, Class A-5, 5.50% 20472 | 250 | 277 |
Wachovia Bank Commercial Mortgage Trust, Series 2007-C31, Class A-M, 5.591% 20472,3 | 380 | 415 |
Wachovia Bank Commercial Mortgage Trust, Series 2007-C32, Class A-3, 5.733% 20492,3 | 150 | 166 |
Morgan Stanley Capital I Trust, Series 2006-IQ12, Class A1A, 5.319% 20432 | 859 | 939 |
Teco Finance, Inc. 6.572% 2017 | 30 | 35 |
Teco Finance, Inc. 5.15% 2020 | 45 | 49 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
U.S. dollars (continued) | (000) | (000) |
Tampa Electric Co. 4.10% 2042 | US$930 | US$837 |
Stater Bros. Holdings Inc. 7.75% 2015 | 900 | 905 |
Virgin Media Finance PLC 8.375% 20197 | 800 | 876 |
Carnival Corp. 3.95% 2020 | 870 | 871 |
New Zealand Government Agency-Guaranteed, Westpac Securities Co. 3.45% 20147 | 855 | 870 |
Schaeffler Holding Finance BV 6.875% 20183,4,7 | 800 | 852 |
Pacific Gas and Electric Co. 3.25% 2023 | 580 | 550 |
Pacific Gas and Electric Co. 3.85% 2023 | 300 | 298 |
Marfrig Holdings (Europe) BV 8.375% 2018 | 500 | 468 |
Marfrig Overseas Ltd. 9.50% 20207 | 300 | 282 |
Marfrig Overseas Ltd. 9.50% 2020 | 100 | 94 |
Ras Laffan Liquefied Natural Gas II 5.298% 20202,7 | 781 | 842 |
Playa Resorts Holding BV, Term Loan B, 4.75% 20192,3,8 | 274 | 278 |
Playa Resorts Holding BV 8.00% 20207 | 525 | 560 |
Esterline Technologies Corp. 7.00% 2020 | 760 | 825 |
Philip Morris International Inc. 1.875% 2019 | 840 | 821 |
PRA Holdings, Inc. 9.50% 20237 | 765 | 819 |
American Tower Corp. 7.00% 2017 | 700 | 807 |
American Electric Power Co. 1.65% 2017 | 815 | 799 |
DAE Aviation Holdings, Inc. 11.25% 20157 | 795 | 798 |
Walter Energy, Inc. 9.50% 20197 | 750 | 795 |
Vodafone Group PLC 0.90% 2016 | 500 | 502 |
Vodafone Group PLC 2.50% 2022 | 317 | 280 |
UnitedHealth Group Inc. 2.875% 2023 | 835 | 777 |
CEVA Group PLC 11.625% 20167 | 625 | 659 |
CEVA Group PLC 8.375% 20177 | 108 | 113 |
Electricité de France SA 6.95% 20397 | 625 | 764 |
MBNA Credit Card Master Note Trust, Series 2004-1, Class B, 4.45% 20162 | 750 | 755 |
International Paper Co. 7.30% 2039 | 600 | 741 |
FirstEnergy Corp., Series A, 2.75% 2018 | 750 | 737 |
Veolia Environnement 6.00% 2018 | 630 | 715 |
South Korean Government 5.75% 2014 | 700 | 710 |
Intercontinentalexchange, Inc. 4.00% 2023 | 700 | 704 |
Thomson Reuters Corp. 4.30% 2023 | 700 | 703 |
Sabine Pass Liquefaction, LLC 5.625% 20217 | 700 | 688 |
Symbion Inc. 8.00% 2016 | 630 | 671 |
Patheon Inc., Term Loan B1, 7.25% 20182,3,8 | 658 | 665 |
TRAC Intermodal 11.00% 2019 | 575 | 660 |
IMS Health Inc. 7.375% 20184,7 | 625 | 653 |
Milacron LLC 7.75% 20217 | 600 | 633 |
Union Pacific Corp. 4.821% 20447 | 650 | 630 |
SBA Communications Corp. 5.75% 2020 | 600 | 627 |
Level 3 Communications, Inc. 8.125% 2019 | 400 | 441 |
Level 3 Communications, Inc. 11.875% 2019 | 150 | 173 |
Staples, Inc. 9.75% 2014 | 600 | 602 |
Consolidated Edison Company of New York, Inc., Series 2013-A, 3.95% 2043 | 670 | 591 |
Enbridge Inc. 4.00% 2023 | 600 | 589 |
WellPoint, Inc. 2.30% 2018 | 585 | 581 |
Toys “R” Us Property Co. II, LLC 8.50% 2017 | 225 | 233 |
Toys “R” Us-Delaware, Inc., Term Loan B2, 5.25% 20182,3,8 | 398 | 338 |
SBC Communications Inc. 5.10% 2014 | 100 | 103 |
AT&T Inc. 1.40% 2017 | 300 | 296 |
AT&T Inc. 4.30% 2042 | 200 | 170 |
Genworth Holdings, Inc. 4.90% 2023 | 550 | 550 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
U.S. dollars (continued) | (000) | (000) |
Wells Fargo & Co. 2.15% 2019 | US$550 | US$ 549 |
Petrobras International Finance Co. 5.75% 2020 | 200 | 207 |
Petrobras Global Finance Co. 4.375% 2023 | 350 | 315 |
Schlumberger Investment SA 3.65% 2023 | 525 | 521 |
Serena Software, Inc. 10.375% 2016 | 502 | 505 |
WM. Wrigley Jr. Co 3.375% 20207 | 505 | 499 |
ABB Finance (USA) Inc. 2.875% 2022 | 510 | 482 |
Israeli Government 4.00% 2022 | 450 | 468 |
Endo Pharmaceuticals Holdings Inc. 5.75% 20227 | 455 | 458 |
CenterPoint Energy Transition Bond Co. III, LLC, Series 2008, Class A-2, 5.234% 20232 | 400 | 455 |
Macy’s Retail Holdings, Inc. 7.875% 20153 | 411 | 453 |
Newcrest Finance Pty Ltd. 4.45% 20217 | 525 | 437 |
HBOS PLC 6.75% 20187 | 375 | 426 |
TitleMax Finance Corp. 8.50% 20187 | 375 | 401 |
ACE INA Holdings Inc. 2.60% 2015 | 365 | 378 |
Energy Transfer Partners, L.P. 3.60% 2023 | 400 | 371 |
Iberdrola Finance Ireland 3.80% 20147 | 335 | 342 |
TransCanada PipeLines Ltd. 7.625% 2039 | 250 | 334 |
Royal Bank of Scotland PLC 5.625% 2020 | 290 | 325 |
CME Group Inc. 5.30% 2043 | 300 | 314 |
Navios Maritime Holdings Inc. and Navios Maritime Finance II (US) Inc. 8.125% 2019 | 300 | 310 |
Morgan Stanley Capital I Trust, Series 2007-IQ13, Class A-M, 5.406% 20442 | 200 | 218 |
Morgan Stanley Capital I Trust, Series 2007-IQ15, Class A-4, 5.91% 20492,3 | 70 | 78 |
ML-CFC Commercial Mortgage Trust, Series 2007-8, Class A-3, 5.894% 20492,3 | 260 | 290 |
National Grid PLC 6.30% 2016 | 250 | 281 |
CNA Financial Corp. 7.35% 2019 | 230 | 279 |
AXA SA 8.60% 2030 | 220 | 271 |
Entergy Corp. 4.70% 2017 | 250 | 269 |
BHP Billiton Finance (USA) Ltd. 5.00% 2043 | 260 | 264 |
DISH DBS Corp. 4.625% 2017 | 250 | 263 |
News America Inc. 5.40% 20437 | 250 | 253 |
Continental Airlines, Inc., Series 1999-1, Class A, 6.545% 20202 | 29 | 31 |
Continental Airlines, Inc., Series 2000-2, Class A-1, 7.707% 20222 | 62 | 70 |
Continental Airlines, Inc., Series 2000-1, Class A-1, 8.048% 20222 | 128 | 147 |
Quebecor Media Inc. 5.75% 2023 | 250 | 243 |
iStar Financial Inc., Term Loan B, 4.50% 20172,3,8 | 233 | 235 |
State of New Jersey, Economic Development Authority, Energy Facility Revenue Bonds | ||
(ACR Energy Partners, LLC Project), Series 2011-B, 12.00% 20307 | 240 | 225 |
Crescent Resources 10.25% 20177 | 175 | 191 |
McKesson Corp. 3.25% 2016 | 180 | 188 |
E.ON International Finance BV 6.65% 20387 | 150 | 180 |
Brandywine Operating Partnership, LP 3.95% 2023 | 190 | 178 |
Intesa Sanpaolo SpA 6.50% 20217 | 150 | 164 |
France Télécom 4.375% 2014 | 140 | 143 |
Canadian Natural Resources Ltd. 5.70% 2017 | 100 | 112 |
Santander Issuances, SA Unipersonal 6.50% 20193,7 | 100 | 102 |
Continental Resources Inc. 7.375% 2020 | 75 | 85 |
Midwest Generation, LLC, Series B, 8.56% 20162,9 | 40 | 46 |
Tyson Foods, Inc. 6.60% 20163 | 40 | 45 |
Hawker Beechcraft Acquisition Co., LLC, Letter of Credit, 0.022% 20142,3,8 | 10 | 6 |
Northwest Airlines, Inc., Term Loan A, 2.00% 20182,3,8 | 6 | 6 |
1,091,168 | ||
Total bonds, notes & other debt instruments (cost: $2,356,149,000) | 2,381,660 | |
Convertible securities 0.02% | ||
Value | ||
U.S. dollars 0.02% | Shares | (000) |
CEVA Group PLC, Series A-1, 3.239% convertible preferred10 | 329 | US$ 551 |
CEVA Group PLC, Series A-2, 2.239% convertible preferred10,11 | 36 | 46 |
Total convertible securities (cost: $386,000) | 597 | |
Preferred securities 0.11% | ||
U.S. dollars 0.11% | ||
Wells Fargo & Co., Class A, Series Q, 5.85% depositary shares preferred noncumulative | 63,850 | 1,505 |
Citigroup Inc., Series K, depositary shares | 50,000 | 1,269 |
Total preferred securities (cost: $2,845,000) | 2,774 | |
Common stocks 0.05% | ||
U.S. dollars 0.05% | ||
Beech Holdings, LLC10,11,12 | 84,556 | 688 |
CEVA Group PLC7,10,12 | 431 | 542 |
Atrium Corp.7,10,12 | 2 | — |
Total common stocks (cost: $2,458,000) | 1,230 | |
Principal amount | ||
Short-term securities 7.62% | (000) | |
Federal Home Loan Bank 0.05%–0.06% due 1/24–3/21/2014 | US$90,000 | 89,987 |
Toronto-Dominion Holdings USA Inc. 0.13% due 1/6/20147 | 25,000 | 24,999 |
Gotham Funding Corp. 0.16% due 1/14/20147 | 12,200 | 12,199 |
Bank of Tokyo-Mitsubishi UFJ, Ltd. 0.11% due 1/6/2014 | 10,000 | 10,000 |
Mizuho Funding LLC 0.165% due 1/22/20147 | 20,000 | 19,998 |
International Bank for Reconstruction and Development 0.12% due 3/5/2014 | 15,200 | 15,198 |
Wal-Mart Stores, Inc. 0.06% due 2/24/20147 | 15,000 | 14,999 |
General Electric Capital Corp. 0.05% due 1/2/2014 | 9,900 | 9,900 |
Total short-term securities (cost: $197,282,000) | 197,280 | |
Total investment securities (cost: $2,559,120,000) | 2,583,541 | |
Other assets less liabilities | 5,249 | |
Net assets | $2,588,790 |
1 | Step bond; coupon rate will increase at a later date. |
2 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
3 | Coupon rate may change periodically. |
4 | Payment in kind; the issuer has the option of paying additional securities in lieu of cash. |
5 | Index-linked bond whose principal amount moves with a government price index. |
6 | A portion of this security was pledged as collateral. The total value of pledged collateral was $2,951,000, which represented ..11% of the net assets of the fund. |
7 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $268,275,000, which represented 10.36% of the net assets of the fund. |
8 | Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $21,062,000, which represented .81% of the net assets of the fund. |
9 | Scheduled interest and/or principal payment was not received. |
10 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $1,827,000, which represented .07% of the net assets of the fund. |
11 | 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. |
Percent | ||||
Cost | Value | of net | ||
Acquisition date(s) | (000) | (000) | assets | |
Beech Holdings, LLC | 3/16/2007–2/15/2013 | $ 1,459 | $ 688 | .03% |
CEVA Group PLC, Series A-2, 2.244% convertible preferred | 3/10/2010 | 52 | 46 | .00 |
Total restricted securities | $1,511 | $734 | .03% |
12 | Security did not produce income during the last 12 months. |
High-Income Bond FundSM
Investment portfolio
December 31, 2013
Bonds, notes & other debt instruments 89.79% | ||
Corporate bonds & notes 88.96% | Principal amount | Value |
Telecommunication services 16.67% | (000) | (000) |
Sprint Nextel Corp. 6.00% 2016 | $ 785 | $ 859 |
Clearwire Communications and Clearwire Finance, Inc. 14.75% 20161 | 1,250 | 1,709 |
Sprint Nextel Corp. 8.375% 2017 | 1,225 | 1,424 |
Sprint Nextel Corp. 9.125% 2017 | 2,350 | 2,773 |
Sprint Nextel Corp. 9.00% 20181 | 4,000 | 4,830 |
Sprint Capital Corp. 6.90% 2019 | 1,550 | 1,701 |
Sprint Nextel Corp. 7.00% 2020 | 20,650 | 22,457 |
Sprint Corp. 7.25% 20211 | 11,150 | 12,014 |
Sprint Nextel Corp. 11.50% 2021 | 4,950 | 6,509 |
Sprint Corp. 7.875% 20231 | 2,050 | 2,209 |
Wind Acquisition SA 11.75% 20171 | 17,618 | 18,763 |
Wind Acquisition SA 11.75% 2017 | €8,550 | 12,528 |
Wind Acquisition SA 7.25% 20181 | $5,975 | 6,319 |
Wind Acquisition SA 7.25% 20181 | 2,000 | 2,105 |
Wind Acquisition SA 7.375% 2018 | €4,075 | 5,940 |
T-Mobile US, Inc. 6.542% 2020 | $ 4,100 | 4,382 |
MetroPCS Wireless, Inc. 6.25% 20211 | 16,950 | 17,649 |
T-Mobile US, Inc. 6.731% 2022 | 3,500 | 3,662 |
MetroPCS Wireless, Inc. 6.625% 20231 | 19,150 | 19,844 |
Leap Wireless International, Inc., Term Loan C, 4.75% 20202,3,4 | 18,333 | 18,398 |
Cricket Communications, Inc. 7.75% 2020 | 12,575 | 14,383 |
NII Capital Corp. 10.00% 2016 | 16,275 | 8,707 |
NII Capital Corp. 7.875% 20191 | 8,000 | 6,080 |
NII Capital Corp. 8.875% 2019 | 6,125 | 2,664 |
NII Capital Corp. 11.375% 20191 | 7,785 | 6,539 |
NII Capital Corp. 7.625% 2021 | 19,125 | 7,985 |
Intelsat Luxembourg Holding Co. 6.75% 20181 | 1,470 | 1,569 |
Intelsat Jackson Holding Co. 7.25% 2020 | 1,100 | 1,209 |
Intelsat Jackson Holding Co. 6.625% 20221 | 14,700 | 15,214 |
Intelsat Jackson Holding Co. 6.625% 2022 | 5,425 | 5,615 |
Digicel Group Ltd. 8.25% 20201 | 17,300 | 18,014 |
Digicel Group Ltd. 6.00% 20211 | 5,650 | 5,466 |
LightSquared, Term Loan B, 12.00% 20143,4,5,6 | 17,291 | 20,663 |
Frontier Communications Corp. 8.125% 2018 | 1,250 | 1,434 |
Frontier Communications Corp. 8.50% 2020 | 5,775 | 6,497 |
Frontier Communications Corp. 9.25% 2021 | 4,525 | 5,238 |
Frontier Communications Corp. 8.75% 2022 | 550 | 613 |
Trilogy International Partners, LLC 10.25% 20161 | 8,575 | 8,618 |
Altice Finco SA 6.50% 20221 | 6,100 | 6,176 |
Altice Finco SA 8.125% 20241 | 1,925 | 2,002 |
Millicom International Cellular SA 6.625% 20211 | 4,040 | 4,200 |
Telecom Italia Capital SA 6.999% 2018 | 3,000 | 3,338 |
SBA Communications Corp. 5.75% 2020 | 2,175 | 2,273 |
Level 3 Communications, Inc. 8.125% 2019 | 1,150 | 1,268 |
Level 3 Communications, Inc. 11.875% 2019 | 750 | 866 |
322,706 | ||
Bonds, notes & other debt instruments | ||
Corporate bonds & notes (continued) | Principal amount | Value |
Consumer discretionary 14.67% | (000) | (000) |
EchoStar DBS Corp. 7.75% 2015 | $ 1,000 | $ 1,087 |
EchoStar DBS Corp. 7.125% 2016 | 325 | 361 |
DISH DBS Corp. 4.625% 2017 | 6,875 | 7,219 |
DISH DBS Corp. 4.25% 2018 | 14,775 | 15,107 |
DISH DBS Corp. 7.875% 2019 | 700 | 803 |
DISH DBS Corp. 5.125% 2020 | 4,400 | 4,422 |
Caesars Entertainment Operating Co. 11.25% 2017 | 6,995 | 7,135 |
Caesars Entertainment Operating Co. 8.00% 20201 | 4,275 | 4,467 |
Caesars Entertainment Operating Co. 9.00% 2020 | 6,475 | 6,329 |
Caesars Entertainment Operating Co. 9.00% 2020 | 6,075 | 5,938 |
Boyd Gaming Corp. 9.125% 2018 | 9,190 | 10,040 |
Boyd Gaming Corp. 9.00% 2020 | 10,750 | 11,825 |
Neiman Marcus Group LTD Inc., Term Loan B, 5.00% 20202,3,4 | 7,800 | 7,909 |
Neiman Marcus Group LTD Inc. 8.00% 20211 | 5,000 | 5,250 |
Neiman Marcus Group LTD Inc. 8.75% 20211,2,5 | 4,975 | 5,236 |
MGM Resorts International 5.875% 2014 | 325 | 327 |
MGM Resorts International 6.625% 2015 | 1,725 | 1,859 |
MGM Resorts International 6.875% 2016 | 4,000 | 4,420 |
MGM Resorts International 7.50% 2016 | 725 | 816 |
MGM Resorts International 8.625% 2019 | 4,200 | 4,945 |
MGM Resorts International 6.75% 2020 | 725 | 778 |
MGM Resorts International 7.75% 2022 | 750 | 842 |
Revel Entertainment, Term Loan B, 10.00% 20152,3,4,5,7 | 2,000 | 2,000 |
Revel Entertainment, Term Loan B, 14.50% 20182,3,4,5 | 11,524 | 10,487 |
Hilton Worldwide, Term Loan B, 4.00% 20202,3,4 | 3,928 | 3,964 |
Hilton Hotels Corp. 5.625% 20211 | 6,325 | 6,574 |
Needle Merger Sub Corp. 8.125% 20191 | 9,955 | 10,465 |
Cequel Communications Holdings I, LLC and Cequel Capital Corp. 6.375% 20201 | 9,900 | 10,197 |
Citycenter, Term Loan B, 5.00% 20202,3,4 | 9,700 | 9,860 |
Michaels Stores, Inc. 7.50% 20181,2,5 | 2,500 | 2,612 |
Michaels Stores, Inc. 7.75% 2018 | 5,250 | 5,722 |
Michaels Stores, Inc. 5.875% 20201 | 500 | 504 |
Univision Communications Inc. 6.875% 20191 | 790 | 848 |
Univision Communications Inc., Term Loan C3, 4.00% 20202,3,4 | 2,743 | 2,762 |
Univision Communications Inc. 8.50% 20211 | 4,570 | 5,050 |
Univision Communications Inc. 5.125% 20231 | 115 | 115 |
Toys “R” Us-Delaware, Inc. 7.375% 20161 | 6,075 | 5,619 |
Toys “R” Us Property Co. II, LLC 8.50% 2017 | 2,900 | 3,002 |
Schaeffler Holding Finance BV 6.875% 20182,5 | €3,800 | 5,613 |
Schaeffler Holding Finance BV 6.875% 20181,2,5 | $2,025 | 2,157 |
DineEquity, Inc. 9.50% 2018 | 5,950 | 6,634 |
Cumulus Media Holdings Inc. 7.75% 2019 | 2,685 | 2,846 |
Cumulus Media Inc., Term Loan B, 4.25% 20202,3,4 | 3,570 | 3,601 |
Royal Caribbean Cruises Ltd. 11.875% 2015 | 5,050 | 5,871 |
Mediacom LLC and Mediacom Capital Corp. 9.125% 2019 | 4,000 | 4,345 |
Mediacom Broadband LLC and Mediacom Broadband Corp. 6.375% 2023 | 900 | 925 |
Academy Sports 9.25% 20191 | 4,700 | 5,217 |
Chinos Holdings, Inc. 7.75% 20191,2,5 | 4,825 | 4,946 |
Warner Music Group 11.50% 2018 | 2,750 | 3,176 |
Warner Music Group 13.75% 2019 | 1,275 | 1,524 |
Playa Resorts Holding BV, Term Loan B, 4.75% 20192,3,4 | 1,496 | 1,519 |
Playa Resorts Holding BV 8.00% 20201 | 2,925 | 3,119 |
Burger King Corp 0%/11.00% 20191,8 | 4,800 | 4,344 |
PETCO Animal Supplies, Inc. 9.25% 20181 | 3,525 | 3,798 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Consumer discretionary (continued) | (000) | (000) |
Quebecor Media Inc. 7.75% 2016 | $ 923 | $ 937 |
Quebecor Media Inc. 5.75% 2023 | 2,775 | 2,699 |
McClatchy Co. 9.00% 2022 | 3,275 | 3,619 |
Virgin Media Finance PLC 8.375% 20191 | 2,175 | 2,382 |
UPC Germany GmbH 9.625% 2019 | €800 | 1,233 |
Jaguar Land Rover PLC 7.75% 20181 | $ 1,175 | 1,270 |
Jaguar Land Rover PLC 8.125% 20211 | 2,025 | 2,314 |
Gannett Co., Inc. 5.125% 20191 | 1,415 | 1,475 |
Gannett Co., Inc. 6.375% 20231 | 1,885 | 1,956 |
Clear Channel Worldwide Holdings, Inc. 7.625% 2020 | 2,475 | 2,614 |
Local T.V. Finance LLC 9.25% 20151,2,5 | 2,267 | 2,287 |
Carmike Cinemas, Inc. 7.375% 2019 | 2,000 | 2,190 |
Cinemark USA, Inc. 4.875% 2023 | 2,000 | 1,890 |
Sally Holdings LLC and Sally Capital Inc. 6.875% 2019 | 1,525 | 1,693 |
Limited Brands, Inc. 6.625% 2021 | 1,375 | 1,516 |
Pinnacle Entertainment, Inc. 6.375% 20211 | 1,450 | 1,490 |
Burlington Coat Factory Warehouse Corp. 10.00% 2019 | 1,250 | 1,414 |
Stackpole Intl. 7.75% 20211 | 1,150 | 1,202 |
General Motors Financial Co. 3.25% 20181 | 850 | 852 |
General Motors Financial Co. 6.75% 2018 | 150 | 172 |
Six Flags Entertainment Corp. 5.25% 20211 | 1,000 | 980 |
NBC Universal Enterprise, Inc. 5.25% (undated)1 | 835 | 831 |
LBI Media, Inc. 13.50% 20201,2,5 | 687 | 474 |
284,021 | ||
Industrials 13.14% | ||
Navios Maritime Holdings Inc. and Navios Maritime Finance II (US) Inc. 8.125% 2019 | 5,745 | 5,932 |
Navios Maritime Acquisition Corporation and Navios Acquisition Finance (US) Inc. 8.125% 20211 | 6,500 | 6,662 |
Navios Maritime Holdings Inc. 7.375% 20221 | 10,050 | 10,125 |
Associated Materials, LLC and AMH New Finance, Inc. 9.125% 2017 | 19,055 | 20,436 |
R.R. Donnelley & Sons Co. 7.25% 2018 | 5,600 | 6,384 |
R.R. Donnelley & Sons Co. 7.875% 2021 | 3,400 | 3,791 |
R.R. Donnelley & Sons Co. 7.00% 2022 | 1,975 | 2,133 |
R.R. Donnelley & Sons Co. 6.50% 2023 | 6,900 | 7,003 |
Ply Gem Industries, Inc. 9.375% 2017 | 1,590 | 1,725 |
Ply Gem Industries, Inc. 8.25% 2018 | 14,239 | 15,236 |
JELD-WEN Escrow Corp. 12.25% 20171 | 14,770 | 16,838 |
Gardner Denver, Inc. Term Loan B, 4.25% 20202,3,4 | 11,970 | 12,007 |
Gardner Denver, Inc. 6.875% 20211 | 2,225 | 2,231 |
Nortek Inc. 10.00% 2018 | 7,460 | 8,271 |
Nortek Inc. 8.50% 2021 | 4,935 | 5,490 |
US Investigations Services, Inc., Term Loan B, 4.75% 20152,3,4 | 1,031 | 1,031 |
US Investigations Services, Inc., Term Loan D, 7.75% 20152,3,4 | 4,398 | 4,389 |
US Investigations Services, Inc. 10.50% 20151 | 4,420 | 3,967 |
US Investigations Services, Inc. 11.75% 20161 | 2,831 | 2,010 |
DAE Aviation Holdings, Inc. 11.25% 20151 | 10,035 | 10,079 |
DAE Aviation Holdings, Inc. and Standard Aero Ltd., Term Loan B, 6.25% 20182,3,4 | 679 | 687 |
DAE Aviation Holdings, Inc., Term Loan B2, 6.25% 20182,3,4 | 308 | 311 |
Euramax International, Inc. 9.50% 2016 | 10,880 | 10,962 |
Nielsen Finance LLC and Nielsen Finance Co. 7.75% 2018 | 1,000 | 1,085 |
Nielsen Finance LLC and Nielsen Finance Co. 4.50% 2020 | 4,325 | 4,228 |
Nielsen Finance LLC and Nielsen Finance Co. 5.50% 20211 | 3,260 | 3,317 |
HD Supply, Inc. 11.50% 2020 | 6,905 | 8,260 |
Builders Firstsource 7.625% 20211 | 7,725 | 8,092 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Industrials (continued) | (000) | (000) |
TransDigm Inc. 7.75% 2018 | $ 4,590 | $ 4,946 |
TransDigm Inc. 5.50% 2020 | 2,525 | 2,481 |
CEVA Group PLC 11.625% 20161 | 6,415 | 6,768 |
CEVA Group PLC 8.375% 20171 | 229 | 240 |
Silver II Borrower S.C.A./Silver II U.S. Holdings, LLC 7.75% 20201 | 6,125 | 6,523 |
United Rentals, Inc. 7.375% 2020 | 1,275 | 1,420 |
United Rentals, Inc. 7.625% 2022 | 2,525 | 2,819 |
United Rentals, Inc. 6.125% 2023 | 2,075 | 2,116 |
Beechcraft Holdings, LLC., Term Loan, 5.75% 20202,3,4 | 6,130 | 6,201 |
Esterline Technologies Corp. 7.00% 2020 | 5,136 | 5,573 |
Continental Airlines, Inc., Series 2001-1, Class B, 7.373% 20173 | 249 | 266 |
Continental Airlines, Inc., Series 1998-1, Class B, 6.748% 20183 | 114 | 122 |
Continental Airlines, Inc., Series 1997-4B, Class B, 6.90% 20183 | 14 | 15 |
Continental Airlines, Inc., Series 1997-4, Class A, 6.90% 20193 | 451 | 484 |
Continental Airlines, Inc., Series 2000-2, Class B, 8.307% 20193 | 200 | 213 |
Continental Airlines, Inc., Series 1999-1, Class A, 6.545% 20203 | 364 | 398 |
United Air Lines, Inc., Series 2007-1, Class B, 7.336% 20211,3 | 22 | 23 |
Continental Airlines, Inc., Series 2001-1, Class A-1, 6.703% 20223 | 2,084 | 2,288 |
Continental Airlines, Inc., Series 2000-2, Class A-1, 7.707% 20223 | 816 | 926 |
Continental Airlines, Inc., Series 2000-1, Class B, 8.388% 20223 | 133 | 141 |
TRAC Intermodal 11.00% 2019 | 4,025 | 4,619 |
Brunswick Rail Finance Ltd. 6.50% 20171 | 2,490 | 2,542 |
Brunswick Rail Finance Ltd. 6.50% 2017 | 1,000 | 1,021 |
Iron Mountain Inc. 5.75% 2024 | 3,500 | 3,264 |
Northwest Airlines, Inc., Term Loan A, 2.00% 20182,3,4 | 2,265 | 2,106 |
Delta Air Lines, Inc., Series 2002-1, Class G-1, MBIA insured, 6.718% 20243 | 918 | 1,036 |
ARAMARK Corp., Term Loan D, 4.00% 20192,3,4 | 3,000 | 3,018 |
Florida East Coast Railway Corp. 8.125% 2017 | 1,800 | 1,888 |
Far East Capital Limited SA 8.00% 20181 | 665 | 593 |
Far East Capital Limited SA 8.75% 20201 | 1,335 | 1,189 |
Milacron LLC 7.75% 20211 | 1,575 | 1,662 |
BE Aerospace, Inc. 5.25% 2022 | 1,600 | 1,632 |
Avianca Holdings SA, 8.375% 20201 | 1,375 | 1,430 |
ADS Waste Escrow 8.25% 2020 | 525 | 572 |
Watco Companies 6.375% 20231 | 395 | 393 |
HDTFS Inc. 4.25% 2018 | 325 | 335 |
Hawker Beechcraft Acquisition Co., LLC, Letter of Credit, 0.022% 20142,3,4 | 566 | 308 |
254,253 | ||
Health care 13.12% | ||
inVentiv Health Inc. 9.00% 20181 | 10,225 | 10,736 |
inVentiv Health Inc. 11.00% 20181 | 20,290 | 18,007 |
inVentiv Health Inc. 11.00% 20181 | 7,685 | 6,840 |
Kinetic Concepts, Inc., Term Loan D1, 4.50% 20182,3,4 | 1,656 | 1,671 |
Kinetic Concepts, Inc. 10.50% 2018 | 15,355 | 17,735 |
Kinetic Concepts, Inc. 12.50% 2019 | 10,465 | 11,878 |
VPI Escrow Corp. 6.75% 20181 | 6,800 | 7,506 |
VPI Escrow Corp. 6.375% 20201 | 8,370 | 8,862 |
VPI Escrow Corp. 5.625% 20211 | 2,120 | 2,136 |
VPI Escrow Corp. 7.50% 20211 | 6,665 | 7,348 |
DJO Finance LLC 9.75% 2017 | 4,705 | 4,811 |
DJO Finance LLC 7.75% 2018 | 11,635 | 11,897 |
DJO Finance LLC 8.75% 2018 | 840 | 926 |
DJO Finance LLC 9.875% 2018 | 4,140 | 4,471 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Health care (continued) | (000) | (000) |
Forest Laboratories, Inc. 5.00% 20211 | $15,450 | $ 15,547 |
Tenet Healthcare Corp. 4.75% 2020 | 4,220 | 4,146 |
Tenet Healthcare Corp. 6.00% 20201 | 6,405 | 6,697 |
Tenet Healthcare Corp. 4.50% 2021 | 905 | 861 |
Tenet Healthcare Corp. 8.125% 2022 | 3,365 | 3,634 |
INC Research LLC 11.50% 20191 | 10,690 | 11,946 |
Select Medical Holdings Corp. 6.375% 2021 | 12,155 | 11,942 |
Catalent Pharma Solutions Inc., Term Loan, 6.50% 20172,3,4 | 4,365 | 4,430 |
PTS Acquisition Corp. 9.75% 2017 | €4,445 | 6,368 |
Rotech Healthcare Inc., Term Loan A, 5.50% 20182,3,4,7 | $ 3,092 | 3,092 |
Rotech Healthcare Inc., Term Loan B, 10.00% 20192,3,4,7 | 2,300 | 2,300 |
Rotech Healthcare Inc., Term Loan, 13.00% 20202,3,4,5,7 | 4,317 | 4,317 |
VWR Funding, Inc. 7.25% 2017 | 8,570 | 9,234 |
Patheon Inc., Term Loan B1, 7.25% 20182,3,4 | 9,128 | 9,227 |
ConvaTec Finance International SA 8.25% 20191,5 | 8,065 | 8,277 |
Centene Corp. 5.75% 2017 | 7,280 | 7,771 |
Symbion Inc. 8.00% 2016 | 7,235 | 7,705 |
PRA Holdings, Inc. 9.50% 20231 | 5,685 | 6,083 |
Multiplan Inc. 9.875% 20181 | 3,655 | 4,039 |
Endo Pharmaceuticals Holdings Inc. 7.00% 2019 | 430 | 462 |
Endo Pharmaceuticals Holdings Inc. 5.75% 20221 | 3,175 | 3,199 |
IMS Health Inc. 7.375% 20181,5 | 3,135 | 3,276 |
Accellent Inc. 8.375% 2017 | 2,000 | 2,100 |
HCA Inc. 6.50% 2020 | 650 | 716 |
HCA Inc. 5.875% 2023 | 1,085 | 1,074 |
HealthSouth Corp. 5.75% 2024 | 790 | 784 |
254,051 | ||
Materials 8.16% | ||
FMG Resources 7.00% 20151 | 1,313 | 1,365 |
FMG Resources 6.00% 20171 | 14,855 | 15,858 |
FMG Resources 6.875% 20181 | 5,955 | 6,283 |
FMG Resources 8.25% 20191 | 5,825 | 6,560 |
FMG Resources 6.875% 20221 | 2,400 | 2,628 |
Reynolds Group Inc. 7.125% 2019 | 740 | 792 |
Reynolds Group Inc. 7.875% 2019 | 355 | 394 |
Reynolds Group Inc. 9.875% 2019 | 4,820 | 5,386 |
Reynolds Group Inc. 5.75% 2020 | 19,805 | 20,300 |
Inmet Mining Corp. 8.75% 20201 | 14,780 | 16,110 |
Inmet Mining Corp. 7.50% 20211 | 6,270 | 6,583 |
ArcelorMittal 10.35% 20192 | 500 | 635 |
ArcelorMittal 6.00% 20212 | 2,565 | 2,732 |
ArcelorMittal 6.75% 20222 | 1,100 | 1,202 |
ArcelorMittal 7.25% 20412 | 11,105 | 10,661 |
CEMEX Finance LLC 7.25% 20211 | 4,500 | 4,669 |
CEMEX Finance LLC 9.375% 20221 | 8,125 | 9,202 |
Walter Energy, Inc. 9.50% 20191 | 7,750 | 8,215 |
Walter Energy, Inc. 9.875% 2020 | 2,425 | 2,110 |
JMC Steel Group Inc. 8.25% 20181 | 9,050 | 9,163 |
U.S. Coatings Acquisition Inc. (Flash Dutch 2 BV), Term Loan B, 4.75% 20202,3,4 | 2,069 | 2,087 |
U.S. Coatings Acquisition Inc. (Flash Dutch 2 BV) 5.75% 2021 | €1,000 | 1,444 |
U.S. Coatings Acquisition Inc. (Flash Dutch 2 BV) 7.375% 20211 | $2,945 | 3,155 |
LSB Industries, Inc. 7.75% 20191 | 5,275 | 5,565 |
PQ Corp. 8.75% 20181 | 3,840 | 4,195 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Materials (continued) | (000) | (000) |
Packaging Dynamics Corp. 8.75% 20161 | $ 2,460 | $ 2,535 |
Mirabela Nickle Ltd., Term Loan, 3.50% 20143,4,5,7 | 779 | 779 |
Mirabela Nickel Ltd. 8.75% 20181,6 | 4,225 | 1,162 |
Glencore Xstrata LLC 4.125% 20231 | 2,060 | 1,926 |
Ryerson Inc. 9.00% 2017 | 1,525 | 1,618 |
Ball Corp. 5.75% 2021 | 835 | 883 |
Georgia Gulf Corp. 4.875% 20231 | 800 | 759 |
Smurfit Capital Funding PLC 7.50% 2025 | 665 | 731 |
Ardagh Packaging Finance 4.875% 20221 | 275 | 274 |
157,961 | ||
Information technology 8.09% | ||
First Data Corp. 7.375% 20191 | 2,950 | 3,156 |
First Data Corp. 6.75% 20201 | 1,575 | 1,646 |
First Data Corp. 8.25% 20211 | 1,363 | 1,457 |
First Data Corp. 11.75% 20211 | 26,055 | 27,618 |
First Data Corp. 11.75% 20211 | 4,175 | 4,426 |
First Data Corp. 12.625% 2021 | 11,804 | 13,914 |
First Data Corp. 8.75% 20221,2,5 | 4,154 | 4,455 |
Freescale Semiconductor, Inc. 5.00% 20211 | 10,385 | 10,125 |
Freescale Semiconductor, Inc. 6.00% 20221 | 15,600 | 15,834 |
SRA International, Inc., Term Loan B, 6.50% 20182,3,4 | 16,678 | 16,545 |
SRA International, Inc. 11.00% 2019 | 7,835 | 8,188 |
Dell, Inc. Term Loan B, 4.50% 20202,3,4 | 17,250 | 17,315 |
Alcatel-Lucent USA Inc. 4.625% 20171 | 7,900 | 7,949 |
Alcatel-Lucent USA Inc. 6.75% 20201 | 1,250 | 1,302 |
Alcatel-Lucent USA Inc. 8.875% 20201 | 4,815 | 5,393 |
Serena Software, Inc. 10.375% 2016 | 4,795 | 4,819 |
SunGard Data Systems Inc. 7.625% 2020 | 3,650 | 3,997 |
Lawson Software, Inc. 9.375% 2019 | 3,000 | 3,390 |
Hughes Satellite Systems Corp. 7.625% 2021 | 2,325 | 2,604 |
NXP BV and NXP Funding LLC 3.75% 20181 | 1,275 | 1,291 |
BMC Software, Inc., Term Loan B, 5.00% 20202,3,4 | 1,250 | 1,258 |
156,682 | ||
Energy 7.95% | ||
NGPL PipeCo LLC, Term Loan B, 6.75% 20172,3,4 | 939 | 878 |
NGPL PipeCo LLC 7.119% 20171 | 2,775 | 2,525 |
NGPL PipeCo LLC 9.625% 20191 | 16,825 | 16,531 |
Peabody Energy Corp. 6.00% 2018 | 11,455 | 12,257 |
Peabody Energy Corp. 6.25% 2021 | 5,075 | 5,151 |
Arch Coal, Inc., Term Loan B1, 6.25% 20182,3,4 | 5,860 | 5,791 |
Arch Coal, Inc. 7.00% 2019 | 5,620 | 4,496 |
Arch Coal, Inc. 7.25% 2021 | 4,975 | 3,831 |
Alpha Natural Resources, Inc. 9.75% 2018 | 7,000 | 7,455 |
Alpha Natural Resources, Inc. 6.00% 2019 | 1,992 | 1,728 |
Alpha Natural Resources, Inc. 6.25% 2021 | 3,625 | 3,117 |
QGOG Constellation SA 6.25% 20191 | 11,200 | 10,724 |
CONSOL Energy Inc. 8.00% 2017 | 3,345 | 3,537 |
CONSOL Energy Inc. 8.25% 2020 | 6,500 | 7,069 |
Laredo Petroleum, Inc. 9.50% 2019 | 6,825 | 7,661 |
Laredo Petroleum, Inc. 7.375% 2022 | 2,000 | 2,180 |
Teekay Corp. 8.50% 2020 | 8,543 | 9,280 |
PDC Energy Inc. 7.75% 2022 | 7,925 | 8,599 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Energy (continued) | (000) | (000) |
Odebrecht Drilling Norbe VIII/IX Ltd 6.35% 20211,3 | $ 1,620 | $ 1,669 |
Odebrecht Offshore Drilling Finance Ltd. 6.75% 20221,3 | 6,400 | 6,566 |
Samson Investment Co., Term Loan B, 5.00% 20182,3,4 | 150 | 151 |
Samson Investment Co. 10.50% 20201 | 7,090 | 7,764 |
Pacific Rubiales Energy Corp. 5.375% 20191 | 7,250 | 7,322 |
Sabine Pass Liquefaction, LLC 5.625% 20211 | 4,300 | 4,225 |
Kinder Morgan Energy Partners, LP 5.00% 20211 | 3,225 | 3,189 |
TransCanada PipeLines Ltd., junior subordinated 6.35% 20672 | 2,135 | 2,194 |
Denbury Resources Inc. 8.25% 2020 | 1,096 | 1,212 |
Denbury Resources Inc. 4.625% 2023 | 1,000 | 907 |
QGOG Atlantic/Alaskan Rigs Ltd. 5.25% 20191,3 | 1,362 | 1,417 |
Oasis Petroleum Inc. 6.875% 20221 | 1,275 | 1,358 |
Regency Energy Partners LP and Regency Energy Finance Corp. 5.50% 2023 | 1,275 | 1,249 |
Petrobras International Finance Co. 5.75% 2020 | 1,090 | 1,126 |
Transocean Inc. 7.35% 2041 | 305 | 368 |
Continental Resources Inc. 7.375% 2020 | 275 | 311 |
153,838 | ||
Financials 3.51% | ||
Realogy Corp. 3.375% 20161 | 1,000 | 1,013 |
Realogy Corp., Letter of Credit, 4.25% 20162,3,4 | 1,103 | 1,103 |
Realogy Corp. 7.875% 20191 | 11,850 | 13,065 |
Realogy Corp. 7.625% 20201 | 750 | 846 |
CIT Group Inc. 4.25% 2017 | 2,500 | 2,613 |
CIT Group Inc. 5.00% 2017 | 4,000 | 4,290 |
CIT Group Inc., Series C, 5.50% 20191 | 2,250 | 2,424 |
iStar Financial Inc., Term Loan B, 4.50% 20172,3,4 | 3,787 | 3,814 |
iStar Financial Inc., Series B, 9.00% 2017 | 2,380 | 2,799 |
iStar Financial Inc., 4.875% 2018 | 1,925 | 1,927 |
MetLife Capital Trust IV, junior subordinated 7.875% 20671,2 | 2,005 | 2,311 |
MetLife Capital Trust X, junior subordinated 9.25% 20681,2 | 1,155 | 1,490 |
MetLife Inc., junior subordinated 10.75% 20692 | 500 | 740 |
Developers Diversified Realty Corp. 9.625% 2016 | 3,870 | 4,539 |
Citigroup Inc., Series D, junior subordinated 5.35% (undated)2 | 4,745 | 4,184 |
HBOS PLC 6.00% 20331 | 3,627 | 3,573 |
Crescent Resources 10.25% 20171 | 3,070 | 3,354 |
Liberty Mutual Group Inc., Series B, 7.00% 20671,2 | 1,815 | 1,879 |
Liberty Mutual Group Inc., Series A, 7.80% 20871,2 | 1,200 | 1,296 |
Bank of America Corp., Series U, junior subordinated 5.20% noncumulative (undated)2 | 3,550 | 3,142 |
JPMorgan Chase & Co., Series Q, junior subordinated 5.15% (undated)2 | 3,058 | 2,760 |
Synovus Financial Corp. 7.875% 2019 | 2,105 | 2,373 |
Royal Bank of Scotland Group PLC, junior subordinated 6.99% (undated)1,2,6 | 1,265 | 1,360 |
TitleMax Finance Corp. 8.50% 20181 | 950 | 1,016 |
67,911 | ||
Consumer staples 2.24% | ||
Marfrig Holdings (Europe) BV 9.875% 20171 | 5,625 | 5,583 |
Marfrig Holdings (Europe) BV 8.375% 2018 | 950 | 888 |
Marfrig Overseas Ltd. 9.50% 20201 | 1,505 | 1,415 |
Marfrig Overseas Ltd. 9.50% 2020 | 625 | 587 |
Post Holdings, Inc. 6.75% 20211 | 3,075 | 3,190 |
Post Holdings, Inc. 7.375% 2022 | 3,000 | 3,225 |
Smithfield Foods, Inc. 7.75% 2017 | 3,525 | 4,151 |
Smithfield Foods, Inc. 5.25% 20181 | 1,000 | 1,050 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Corporate bonds & notes — Consumer staples (continued) | (000) | (000) |
JBS SA 7.75% 20201 | $5,050 | $ 5,113 |
Rite Aid Corp. 10.25% 2019 | 4,095 | 4,607 |
Del Monte Corp. 7.625% 2019 | 3,375 | 3,514 |
Stater Bros. Holdings Inc. 7.75% 2015 | 2,950 | 2,965 |
Cott Beverages Inc. 8.125% 2018 | 2,675 | 2,902 |
C&S Group Enterprises LLC 8.375% 20171 | 2,702 | 2,878 |
Constellation Brands, Inc. 6.00% 2022 | 700 | 751 |
Ingles Markets, Inc. 5.75% 2023 | 475 | 468 |
43,287 | ||
Utilities 1.41% | ||
AES Corp. 7.75% 2015 | 500 | 555 |
AES Corp. 8.00% 2017 | 5,500 | 6,490 |
AES Corp. 8.00% 2020 | 3,000 | 3,525 |
AES Corp. 7.375% 2021 | 850 | 962 |
Eskom Holdings SOC Ltd. 6.75% 20231 | 6,895 | 7,108 |
NV Energy, Inc 6.25% 2020 | 3,700 | 4,304 |
NRG Energy, Inc. 6.625% 2023 | 2,575 | 2,607 |
TXU, Term Loan, 3.739% 20172,3,4 | 2,461 | 1,700 |
27,251 | ||
Total corporate bonds & notes | 1,721,961 | |
Bonds & notes of governments outside the U.S. 0.62% | ||
Slovenia (Republic of) 5.85% 20231 | 3,595 | 3,667 |
Greek Government 2.00%/3.00% 20238 | €235 | 219 |
Greek Government 2.00%/3.00% 20248 | 235 | 210 |
Greek Government 2.00%/3.00% 20258 | 235 | 203 |
Greek Government 2.00%/3.00% 20268 | 235 | 199 |
Greek Government 2.00%/3.00% 20278 | 235 | 196 |
Greek Government 2.00%/3.00% 20288 | 235 | 189 |
Greek Government 2.00%/3.00% 20298 | 235 | 185 |
Greek Government 2.00%/3.00% 20308 | 235 | 182 |
Greek Government 2.00%/3.00% 20318 | 235 | 178 |
Greek Government 2.00%/3.00% 20328 | 235 | 177 |
Greek Government 2.00%/3.00% 20338 | 235 | 174 |
Greek Government 2.00%/3.00% 20348 | 235 | 173 |
Greek Government 2.00%/3.00% 20358 | 235 | 170 |
Greek Government 2.00%/3.00% 20368 | 235 | 171 |
Greek Government 2.00%/3.00% 20378 | 235 | 169 |
Greek Government 2.00%/3.00% 20388 | 235 | 169 |
Greek Government 2.00%/3.00% 20398 | 235 | 169 |
Greek Government 2.00%/3.00% 20408 | 235 | 168 |
Greek Government 2.00%/3.00% 20418 | 235 | 166 |
Greek Government 2.00%/3.00% 20428 | 235 | 168 |
Hungarian Government 6.25% 2020 | $850 | 921 |
Hungarian Government 6.375% 2021 | 1,150 | 1,239 |
Hungarian Government 7.625% 2041 | 500 | 549 |
Portuguese Government 5.65% 2024 | €1,470 | 1,955 |
11,966 | ||
U.S. Treasury bonds & notes 0.17% | ||
U.S. Treasury 0.25% 2015 | $3,275 | 3,277 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Municipals 0.04% | (000) | (000) |
State of New Jersey, Economic Development Authority, Energy Facility Revenue Bonds | ||
(ACR Energy Partners, LLC Project), Series 2011-B, 12.00% 20301 | $875 | $ 820 |
Total bonds, notes & other debt instruments (cost: $1,672,973,000) | 1,738,024 | |
Convertible securities 0.96% | ||
Shares or | ||
Industrials 0.56% | principal amount | |
CEVA Group PLC, Series A-2, 2.239% convertible preferred7,9 | 2,211 | 2,780 |
CEVA Group PLC, Series A-1, 3.239% convertible preferred7 | 4,788 | 8,025 |
10,805 | ||
Financials 0.28% | ||
Weyerhaeuser Co., Series A, 6.375% convertible preferred | 60,000 | 3,363 |
Bank of Ireland 10.00% convertible notes 2016 | €1,460,000 | 2,151 |
5,514 | ||
Information technology 0.12% | ||
Linear Technology Corp., Series A, 3.00% convertible notes 2027 | $2,000,000 | 2,285 |
Total convertible securities (cost: $14,032,000) | 18,604 | |
Preferred securities 0.78% | ||
Financials 0.78% | Shares | |
Citigroup Inc., Series K, depositary shares | 354,000 | 8,982 |
Wells Fargo & Co., Class A, Series Q, 5.85% depositary shares preferred noncumulative | 231,575 | 5,458 |
Goldman Sachs Group, Inc., Series J, 5.50% depositary shares | 31,000 | 693 |
Total preferred securities (cost: $15,417,000) | 15,133 | |
Common stocks 2.07% | ||
Industrials 1.40% | ||
Beech Holdings, LLC7,9,10 | 2,447,858 | 19,913 |
CEVA Group PLC1,7,10 | 5,622 | 7,067 |
Atrium Corp.1,7,10 | 361 | 1 |
26,981 | ||
Consumer discretionary 0.34% | ||
Cooper-Standard Holdings Inc.10 | 110,446 | 5,424 |
Revel AC, Inc.7,9,10 | 125,906 | 603 |
Revel AC, Inc. (CVR)7,9,10 | 13,372,726 | 167 |
American Media, Inc.1,7,10 | 87,470 | 448 |
Five Star Travel Corp.1,7,10 | 7,285 | 2 |
Adelphia Recovery Trust, Series ACC-110 | 449,306 | 1 |
Adelphia Recovery Trust, Series Arahova10 | 388,601 | — |
Adelphia Recovery Trust, Series ACC-6B7,10 | 1,000,000 | — |
6,645 | ||
Health care 0.19% | ||
Rotech Healthcare Inc.7,10 | 201,793 | 3,604 |
Common stocks | ||
Value | ||
Materials 0.14% | Shares | (000) |
NewPage Holdings Inc.7,9,10 | 26,880 | $ 2,722 |
Total common stocks (cost: $45,158,000) | 39,952 | |
Rights & warrants 0.01% | ||
Consumer discretionary 0.01% | ||
Cooper-Standard Holdings Inc., warrants, expire 201710 | 13,289 | 286 |
Liberman Broadcasting, Inc., warrant, expires 20227,9,10 | 1 | — |
Total rights & warrants (cost: $165,000) | 286 | |
Principal amount | ||
Short-term securities 4.97% | (000) | |
Fannie Mae 0.055%–0.14% due 2/26–6/2/2014 | $24,000 | 23,991 |
John Deere Financial Ltd. 0.08%–0.09% due 1/8–1/10/20141 | 17,100 | 17,100 |
National Rural Utilities Cooperative Finance Corp. 0.10% due 1/28/2014 | 15,500 | 15,499 |
Federal Home Loan Bank 0.11% due 5/16/2014 | 13,300 | 13,295 |
General Electric Capital Corp. 0.05% due 1/2/2014 | 13,000 | 13,000 |
ExxonMobil Corp. 0.07% due 1/2/2014 | 8,300 | 8,300 |
Federal Farm Credit Banks 0.15% due 5/23/2014 | 5,000 | 4,998 |
Total short-term securities (cost: $96,178,000) | 96,183 | |
Total investment securities (cost: $1,843,923,000) | 1,908,182 | |
Other assets less liabilities | 27,452 | |
Net assets | $1,935,634 |
1 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $805,752,000, which represented 41.63% of the net assets of the fund. |
2 | Coupon rate may change periodically. |
3 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
4 | Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $187,679,000, which represented 9.70% of the net assets of the fund. |
5 | Payment in kind; the issuer has the option of paying additional securities in lieu of cash. |
6 | Scheduled interest and/or principal payment was not received. |
7 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $57,820,000, which represented 2.99% of the net assets of the fund. |
8 | Step bond; coupon rate will increase at a later date. |
9 | 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. |
Percent | ||||
Cost | Value | of net | ||
Acquisition date(s) | (000) | (000) | assets | |
Beech Holdings, LLC | 3/16/2007–2/15/2013 | $ 18,164 | $ 19,913 | 1.03% |
CEVA Group PLC, Series A-2, 2.239% convertible preferred | 3/10/2010–1/23/2012 | 2,214 | 2,780 | .14 |
NewPage Holdings Inc. | 6/23/2011–9/9/2011 | 2,910 | 2,722 | .14 |
Revel AC Inc. | 2/14/2011–12/13/2011 | 6,729 | 603 | .03 |
Revel AC Inc. (CVR) | 2/15/2011–3/15/2013 | 2,419 | 167 | .01 |
Liberman Broadcasting, Inc., warrant, expires 2022 | 12/31/2012 | — | — | .00 |
Total restricted securities | $32,436 | $26,185 | 1.35% |
10 | Security did not produce income during the last 12 months. |
Key to abbreviation and symbol
CVR = Contingent Value Rights
€ = Euros
Mortgage FundSM
Investment portfolio
December 31, 2013
Bonds, notes & other debt instruments 94.51% | ||
Mortgage-backed obligations 74.05% | Principal amount | Value |
Federal agency mortgage-backed obligations1 66.39% | (000) | (000) |
Fannie Mae 2.50% 2027 | $ 172 | $ 171 |
Fannie Mae 2.50% 2027 | 82 | 82 |
Fannie Mae 2.50% 2028 | 2,330 | 2,309 |
Fannie Mae 3.00% 2028 | 4,998 | 5,115 |
Fannie Mae 5.00% 2036 | 949 | 1,011 |
Fannie Mae 3.553% 20402 | 452 | 482 |
Fannie Mae 4.194% 20402 | 701 | 743 |
Fannie Mae 3.426% 20412 | 313 | 329 |
Fannie Mae 3.51% 20412 | 286 | 296 |
Fannie Mae 3.771% 20412 | 353 | 376 |
Fannie Mae 3.00% 2042 | 12,352 | 11,762 |
Fannie Mae 2.513% 20432 | 343 | 340 |
Fannie Mae 3.00% 2043 | 10,864 | 10,347 |
Fannie Mae 3.00% 2043 | 6,872 | 6,545 |
Fannie Mae 3.00% 2043 | 334 | 313 |
Fannie Mae 4.00% 2043 | 5,331 | 5,515 |
Fannie Mae 4.00% 2043 | 2,238 | 2,309 |
Fannie Mae 3.00% 2044 | 9,677 | 9,189 |
Fannie Mae 4.50% 2044 | 10,425 | 11,049 |
Government National Mortgage Assn. 3.75% 2038 | 1,169 | 1,178 |
Government National Mortgage Assn. 4.00% 2039 | 809 | 818 |
Government National Mortgage Assn. 6.00% 2039 | 1,091 | 1,230 |
Government National Mortgage Assn. 4.00% 2040 | 569 | 576 |
Government National Mortgage Assn. 5.50% 2040 | 7,325 | 8,235 |
Government National Mortgage Assn. 4.50% 2041 | 360 | 374 |
Government National Mortgage Assn. 4.50% 2041 | 232 | 249 |
Government National Mortgage Assn. 5.00% 2041 | 3,919 | 4,256 |
Government National Mortgage Assn. 5.00% 2041 | 2,179 | 2,297 |
Government National Mortgage Assn. 6.50% 2041 | 2,732 | 2,965 |
Government National Mortgage Assn. 3.50% 2042 | 1,057 | 1,042 |
Government National Mortgage Assn. 3.50% 2042 | 617 | 605 |
Government National Mortgage Assn. 3.50% 2042 | 554 | 560 |
Government National Mortgage Assn. 4.00% 2042 | 140 | 141 |
Government National Mortgage Assn. 3.50% 2043 | 3,810 | 3,850 |
Government National Mortgage Assn. 3.50% 2043 | 3,598 | 3,637 |
Government National Mortgage Assn. 3.50% 2043 | 2,881 | 2,913 |
Government National Mortgage Assn. 3.50% 2043 | 2,664 | 2,692 |
Government National Mortgage Assn. 3.50% 2043 | 2,359 | 2,384 |
Government National Mortgage Assn. 3.50% 2043 | 569 | 557 |
Government National Mortgage Assn. 3.50% 2043 | 341 | 344 |
Government National Mortgage Assn. 4.00% 2043 | 6,818 | 7,107 |
Government National Mortgage Assn. 4.50% 2043 | 2,484 | 2,661 |
Government National Mortgage Assn. 4.50% 2043 | 1,500 | 1,606 |
Government National Mortgage Assn. 4.00% 2044 | 2,250 | 2,339 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Mortgage-backed obligations — Federal agency mortgage-backed obligations1 (continued) | (000) | (000) |
Freddie Mac 3.00% 2026 | $ 215 | $ 220 |
Freddie Mac 2.50% 2027 | 1,272 | 1,265 |
Freddie Mac 5.00% 2034 | 4,368 | 4,738 |
Freddie Mac 5.50% 2037 | 55 | 60 |
Freddie Mac 5.00% 2038 | 541 | 584 |
Freddie Mac 5.50% 2038 | 222 | 242 |
Freddie Mac 5.50% 2038 | 154 | 168 |
Freddie Mac 5.50% 2038 | 65 | 71 |
Freddie Mac 3.828% 20392 | 253 | 270 |
Freddie Mac 4.50% 2040 | 589 | 625 |
Freddie Mac 4.50% 2040 | 104 | 110 |
Freddie Mac 2.563% 20422 | 249 | 248 |
Freddie Mac 4.00% 2042 | 1,185 | 1,220 |
Freddie Mac 2.351% 20432 | 572 | 559 |
Freddie Mac 3.00% 2043 | 5,125 | 4,871 |
Freddie Mac 4.00% 2043 | 9,232 | 9,516 |
Freddie Mac 4.00% 2043 | 2,121 | 2,186 |
Freddie Mac 4.00% 2043 | 1,491 | 1,537 |
Freddie Mac 4.00% 2043 | 715 | 739 |
Freddie Mac 4.00% 2043 | 359 | 371 |
Freddie Mac 4.00% 2043 | 280 | 289 |
Freddie Mac 4.00% 2043 | 277 | 285 |
Freddie Mac 4.00% 2043 | 270 | 279 |
Freddie Mac 4.00% 2043 | 198 | 204 |
Freddie Mac 4.00% 2043 | 189 | 195 |
Freddie Mac 4.00% 2043 | 184 | 190 |
Freddie Mac 4.00% 2043 | 148 | 152 |
Freddie Mac 4.00% 2043 | 142 | 146 |
Freddie Mac 4.00% 2043 | 79 | 82 |
Freddie Mac 4.00% 2043 | 71 | 73 |
Freddie Mac 4.00% 2043 | 36 | 37 |
Freddie Mac 3.50% 2044 | 1,050 | 1,042 |
Vendee Mortgage Trust, Series 2011-2, Class V, 3.75% 2028 | 5,921 | 6,128 |
Vendee Mortgage Trust, Series 2011-2, Class DA, 3.75% 2033 | 203 | 212 |
Vendee Mortgage Trust, Series 2010-1, Class DA, 4.25% 2035 | 1,776 | 1,826 |
FDIC Structured Sale Guaranteed Notes, Series 2010-S1, Class 1-A, 0.719% 20482,3 | 528 | 529 |
164,168 | ||
Commercial mortgage-backed securities1 4.20% | ||
Bear Stearns Commercial Mortgage Securities Trust, Series 2006-PW14, Class A1A, 5.189% 2038 | 948 | 1,038 |
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW16, Class A1A, 5.706% 20402 | 581 | 652 |
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-T28, Class A-1A, 5.71% 20422 | 362 | 408 |
Morgan Stanley Capital I Trust, Series 2006-IQ12, Class A1A, 5.319% 2043 | 1,888 | 2,065 |
Wachovia Bank Commercial Mortgage Trust, Series 2006-C25, Class A1A, 5.719% 20432 | 1,002 | 1,097 |
Banc of America Commercial Mortgage Inc., Series 2006-1, Class A1A, 5.378% 20452 | 967 | 1,042 |
ML-CFC Commercial Mortgage Trust, Series 2006-4, Class A1A, 5.166% 20492 | 914 | 998 |
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2006-CB-16, Class A1A, 5.546% 2045 | 900 | 987 |
Commercial Mortgage Trust, Series 2006-C8, Class A1A, 5.292% 2046 | 861 | 945 |
Hilton USA Trust, Series 2013-HLF, Series A-F-X, 2.662% 20303 | 795 | 789 |
Morgan Stanley Capital I Trust, Series 2007-TA27, Class A-1-A, 5.648% 20422 | 333 | 373 |
10,394 | ||
Bonds, notes & other debt instruments | ||
Mortgage-backed obligations (continued) | Principal amount | Value |
Other mortgage-backed securities1 3.46% | (000) | (000) |
Westpac Banking Corp. 1.375% 20153 | $ 200 | $ 202 |
Westpac Banking Corp. 2.45% 20163 | 200 | 208 |
Westpac Banking Corp. 1.25% 20183 | 200 | 197 |
Westpac Banking Corp. 1.85% 20183 | 400 | 393 |
Westpac Banking Corp. 1.375% 20193 | 250 | 242 |
Sparebank 1 Boligkreditt AS 2.30% 20183 | 200 | 207 |
Sparebank 1 Boligkreditt AS 1.25% 20193 | 200 | 194 |
Sparebank 1 Boligkreditt AS 1.75% 20203 | 425 | 404 |
Royal Bank of Canada 1.125% 2017 | 250 | 250 |
Royal Bank of Canada 2.00% 2019 | 550 | 548 |
UBS AG 1.875% 20153 | 200 | 203 |
UBS AG 0.75% 20173 | 225 | 226 |
UBS AG 2.25% 20173 | 200 | 206 |
Bank of Nova Scotia 1.25% 20143 | 200 | 202 |
Bank of Nova Scotia 1.75% 20173 | 200 | 204 |
Bank of Nova Scotia 1.95% 20173 | 200 | 205 |
National Australia Bank 1.25% 20183 | 250 | 244 |
National Australia Bank 2.00% 20193 | 300 | 296 |
Bank of Montreal 1.30% 20143 | 250 | 252 |
Bank of Montreal 1.95% 20173 | 250 | 256 |
Commonwealth Bank of Australia 0.75% 20173 | 250 | 250 |
Commonwealth Bank of Australia 2.25% 20173 | 250 | 257 |
Swedbank AB 2.125% 20163 | 200 | 206 |
Swedbank AB 1.375% 20183 | 225 | 220 |
Australia & New Zealand Banking Group Ltd. 2.40% 20163 | 250 | 259 |
National Bank of Canada 2.20% 20163 | 250 | 258 |
Barclays Bank PLC 2.25% 20173 | 250 | 258 |
Caisse Centrale Desjardins 1.60% 20173 | 250 | 253 |
Skandinaviska Enskilda 1.375% 20183 | 250 | 244 |
Stadshypotek AB 1.875% 20193 | 250 | 241 |
DNB ASA 1.45% 20193 | 225 | 221 |
Credit Suisse Group AG 2.60% 20163 | 200 | 208 |
Nordea Eiendomskreditt AS 2.125% 20173 | 200 | 206 |
Credit Mutuel-CIC Home Loan SFH 1.50% 20173 | 200 | 199 |
Northern Rock PLC 5.625% 20173 | 125 | 142 |
8,561 | ||
Total mortgage-backed obligations | 183,123 | |
U.S. Treasury bonds & notes 10.07% | ||
U.S. Treasury inflation-protected securities4 5.69% | ||
U.S. Treasury Inflation-Protected Security 2.00% 2014 | 2,478 | 2,534 |
U.S. Treasury Inflation-Protected Security 2.00% 2014 | 2,528 | 2,528 |
U.S. Treasury Inflation-Protected Security 0.50% 2015 | 5,389 | 5,511 |
U.S. Treasury Inflation-Protected Security 0.625% 2043 | 4,572 | 3,513 |
14,086 | ||
U.S. Treasury 4.38% | ||
U.S. Treasury 1.50% 2018 | 2,175 | 2,163 |
U.S. Treasury 1.75% 2023 | 1,525 | 1,372 |
U.S. Treasury 2.75% 2023 | 1,000 | 977 |
U.S. Treasury 2.875% 20435 | 2,000 | 1,615 |
U.S. Treasury 3.625% 2043 | 5,000 | 4,703 |
10,830 | ||
Total U.S. Treasury bonds & notes | 24,916 | |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Federal agency bonds & notes 9.25% | (000) | (000) |
Freddie Mac, Series K501, Class A1, multifamily 1.337% 20161 | $ 81 | $ 82 |
Freddie Mac, Series K711, Class A1, multifamily 1.321% 20181 | 144 | 144 |
Freddie Mac, Series K705, Class A2, multifamily 2.303% 2018 | 146 | 148 |
Freddie Mac, Series K706, Class A2, multifamily 2.323% 2018 | 200 | 202 |
Freddie Mac, Series K704, Class A2, multifamily 2.412% 2018 | 75 | 77 |
Freddie Mac, Series K711, Class A2, multifamily 1.73% 2019 | 150 | 145 |
Freddie Mac, Series K712, Class A2, multifamily 1.869% 2019 | 170 | 164 |
Freddie Mac, Series K709, Class A2, multifamily 2.086% 2019 | 125 | 124 |
Freddie Mac, Series KGRP, Class A, multifamily 0.546% 20202 | 950 | 952 |
Freddie Mac, Series KF02, Class A-3, multifamily 0.795% 20201,2 | 220 | 220 |
Freddie Mac, Series K015, Class A1, multifamily 2.257% 20201 | 44 | 45 |
Freddie Mac, Series K019, Class A1, multifamily 1.459% 20211 | 139 | 137 |
Freddie Mac, Series K017, Class A2, multifamily 2.873% 2021 | 200 | 196 |
Freddie Mac, Series K022, Class A1, multifamily 1.583% 20221 | 170 | 166 |
Freddie Mac, Series KS01, Class A1, multifamily 1.693% 20221 | 107 | 106 |
Freddie Mac, Series K025, Class A1, multifamily 1.875% 20221 | 172 | 168 |
Freddie Mac, Series K022, Class A2, multifamily 2.355% 2022 | 175 | 163 |
Freddie Mac, Series K020, Class A2, multifamily 2.373% 2022 | 150 | 140 |
Freddie Mac, Series K031, Class A1, multifamily 2.778% 20221 | 296 | 303 |
Freddie Mac, Series K030, Class A1, multifamily 2.779% 20221 | 212 | 217 |
Freddie Mac, Series K029, Class A1, multifamily 2.839% 20221 | 247 | 254 |
Freddie Mac, Series KS01, Class A2, multifamily 2.522% 2023 | 280 | 263 |
Freddie Mac, Series K035, Class A1, multifamily 2.615% 2023 | 300 | 301 |
Freddie Mac, Series K028, Class A2, multifamily 3.111% 2023 | 250 | 244 |
Freddie Mac, Series K031, Class A2, multifamily 3.30% 20231,2 | 5,022 | 4,958 |
Freddie Mac, Series K032, Class A2, multifamily 3.31% 20232 | 1,250 | 1,233 |
Freddie Mac, Series K029, Class A2, multifamily 3.32% 20232 | 200 | 198 |
Freddie Mac, Series K034, Class A-2, multifamily 3.531% 20232 | 190 | 190 |
United States Agency for International Development, Jordan (Kingdom of) 2.503% 2020 | 7,000 | 6,856 |
Federal Home Loan Bank, Series 2816, 1.00% 2017 | 2,970 | 2,964 |
Federal Home Loan Bank 5.50% 2036 | 300 | 347 |
Fannie Mae, Series 2012-M14, multifamily 1.114% 2017 | 150 | 149 |
Fannie Mae, Series 2012-M9, multifamily 1.513% 2017 | 150 | 149 |
Fannie Mae, Series 2012-M5, Class A1, multifamily 1.787% 20221 | 113 | 113 |
Fannie Mae, Series 2013-M4, multifamily 2.608% 2022 | 225 | 216 |
Fannie Mae, Series 2012-M2, Class A2, multifamily 2.717% 2022 | 200 | 193 |
Fannie Mae, Series 2012-M3, Class 1-A2, multifamily 3.044% 2022 | 100 | 99 |
Fannie Mae, Series 2013-M14, Class A2, multifamily 3.329% 20232 | 251 | 245 |
22,871 | ||
Municipals 1.14% | ||
State of Minnesota, Housing Finance Agency, Homeownership Finance Bonds | ||
(GNMA and FNMA Pass-Through Program), Series 2012-B, 2.25% 20421 | 335 | 308 |
State of Minnesota, Housing Finance Agency, Homeownership Finance Bonds | ||
(GNMA and FNMA Pass-Through Program), Series 2013-A, 2.35% 20431 | 313 | 289 |
State of Kentucky, Housing Corp., Housing Revenue Bonds, Series 2013-D, 3.50% 2033 | 445 | 467 |
State of Washington, Housing Finance Commission, Single-family Program Bonds, Series 2014-1-N, 3.00% 2037 | 280 | 290 |
State of Washington, Housing Finance Commission, Single-family Program Revenue Refunding Bonds, | ||
Series 2013-1-N, 3.00% 2043 | 170 | 176 |
State of Illinois, Housing Development Authority, Housing Revenue Bonds, Series 2013-A, 2.45% 20431 | 294 | 262 |
State of New Mexico, Mortgage Finance Authority, Single-family Mortgage Program Revenue Refunding Bonds, | ||
Series 2012-B-1, Class I, AMT, 3.75% 2043 | 235 | 246 |
Bonds, notes & other debt instruments | ||
State of Oklahoma, Housing Finance Agency, Single-family Mortgage Revenue Bonds | ||
(Homeownership Loan Program), Series 2012-A, 5.00% 2043 | 205 | 227 |
State of Iowa, Finance Authority, Single-family Mortgage Bonds (Mortgage-backed Securities Program), | ||
Series 2013-1, 2.15% 2043 | 244 | 223 |
State of Connecticut, Housing Finance Authority, Housing Mortgage Finance Program Revenue Refunding Bonds, | ||
Series 2013-B-2, 4.00% 2032 | 200 | 214 |
State of Mississippi, Home Corp., Single-family Mortgage Revenue Bonds, Series 2009-A-2, 5.00% 2039 | 100 | 108 |
2,810 | ||
Total bonds, notes & other debt instruments (cost: $235,030,000) | 233,720 | |
Short-term securities 10.92% | ||
General Electric Capital Corp. 0.05% due 1/2/2014 | 5,200 | 5,200 |
Federal Farm Credit Banks 0.15% due 5/23/2014 | 5,000 | 4,998 |
National Rural Utilities Cooperative Finance Corp. 0.09% due 1/8/2014 | 4,900 | 4,900 |
John Deere Financial Ltd. 0.08% due 1/17/20143 | 4,500 | 4,500 |
Private Export Funding Corp. 0.08% due 2/20/20143 | 2,500 | 2,500 |
Coca-Cola Co. 0.10% due 1/15/20143 | 2,300 | 2,300 |
Federal Home Loan Bank 0.115% due 5/23/2014 | 1,600 | 1,599 |
Wal-Mart Stores, Inc. 0.05% due 1/6/20143 | 1,000 | 1,000 |
Total short-term securities (cost: $26,996,000) | 26,997 | |
Total investment securities (cost: $262,026,000) | 260,717 | |
Other assets less liabilities | (13,429) | |
Net assets | $247,288 |
1 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
2 | Coupon rate may change periodically. |
3 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $19,381,000, which represented 7.84% of the net assets of the fund. |
4 | Index-linked bond whose principal amount moves with a government price index. |
5 | A portion of this security was pledged as collateral. The total value of pledged collateral was $382,000, which represented ..15% of the net assets of the fund. |
U.S. Government/AAA-Rated Securities FundSM
Investment portfolio
December 31, 2013
Bonds, notes & other debt instruments 89.37% | ||
U.S. Treasury bonds & notes 41.85% | Principal amount | Value |
U.S. Treasury 32.62% | (000) | (000) |
U.S. Treasury 2.625% 2014 | $ 46,100 | $ 46,771 |
U.S. Treasury 1.875% 2015 | 26,550 | 27,197 |
U.S. Treasury 11.25% 2015 | 50,680 | 56,952 |
U.S. Treasury 0.25% 2016 | 13,725 | 13,642 |
U.S. Treasury 1.50% 20161 | 46,250 | 47,307 |
U.S. Treasury 1.50% 2016 | 44,825 | 45,861 |
U.S. Treasury 2.125% 2016 | 22,725 | 23,555 |
U.S. Treasury 2.375% 2016 | 11,750 | 12,258 |
U.S. Treasury 4.50% 2016 | 10,100 | 10,974 |
U.S. Treasury 4.625% 2016 | 28,875 | 32,056 |
U.S. Treasury 5.125% 2016 | 11,500 | 12,746 |
U.S. Treasury 7.50% 2016 | 14,900 | 17,764 |
U.S. Treasury 3.25% 2017 | 25,235 | 27,123 |
U.S. Treasury 4.625% 2017 | 22,600 | 25,209 |
U.S. Treasury 1.375% 2018 | 8,300 | 8,172 |
U.S. Treasury 1.375% 2020 | 27,375 | 25,916 |
U.S. Treasury 1.625% 2022 | 113,298 | 102,119 |
U.S. Treasury 1.625% 2022 | 59,028 | 53,550 |
U.S. Treasury 1.75% 2023 | 37,425 | 33,674 |
U.S. Treasury 2.00% 2023 | 55,789 | 51,666 |
U.S. Treasury 2.50% 2023 | 171,500 | 164,398 |
U.S. Treasury 2.75% 2023 | 121,750 | 118,906 |
U.S. Treasury 6.00% 2026 | 4,750 | 6,054 |
U.S. Treasury 6.50% 2026 | 3,000 | 4,000 |
U.S. Treasury 6.25% 2030 | 5,960 | 7,943 |
U.S. Treasury 3.875% 2040 | 5,955 | 5,935 |
U.S. Treasury 2.875% 2043 | 51,050 | 41,211 |
U.S. Treasury 3.125% 2043 | 23,005 | 19,619 |
U.S. Treasury 3.625% 2043 | 70,350 | 66,178 |
1,108,756 | ||
U.S. Treasury inflation-protected securities2 9.23% | ||
U.S. Treasury Inflation-Protected Security 2.00% 2014 | 44,608 | 45,613 |
U.S. Treasury Inflation-Protected Security 2.00% 2014 | 69,441 | 69,421 |
U.S. Treasury Inflation-Protected Security 0.50% 2015 | 58,146 | 59,461 |
U.S. Treasury Inflation-Protected Security 1.625% 2015 | 16,238 | 16,737 |
U.S. Treasury Inflation-Protected Security 1.875% 2015 | 13,029 | 13,741 |
U.S. Treasury Inflation-Protected Security 0.125% 2022 | 4,367 | 4,182 |
U.S. Treasury Inflation-Protected Security 0.125% 2023 | 4,270 | 4,031 |
U.S. Treasury Inflation-Protected Security 0.375% 2023 | 7,889 | 7,604 |
U.S. Treasury Inflation-Protected Security 0.625% 2043 | 121,019 | 93,004 |
313,794 | ||
Total U.S. Treasury bonds & notes | 1,422,550 | |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Federal agency mortgage-backed obligations3 28.03% | (000) | (000) |
Fannie Mae 3.417% 20174 | $ 2,004 | $ 2,130 |
Fannie Mae 6.00% 2021 | 840 | 918 |
Fannie Mae 2.50% 2027 | 2,507 | 2,491 |
Fannie Mae 2.50% 2027 | 1,200 | 1,192 |
Fannie Mae 3.00% 2027 | 24,181 | 24,750 |
Fannie Mae 6.50% 2028 | 1,116 | 1,234 |
Fannie Mae 2.50% 2029 | 25,430 | 25,176 |
Fannie Mae 2.767% 20364 | 467 | 493 |
Fannie Mae 2.233% 20374 | 223 | 237 |
Fannie Mae 2.335% 20374 | 598 | 634 |
Fannie Mae 6.00% 2037 | 272 | 302 |
Fannie Mae 6.00% 2037 | 194 | 215 |
Fannie Mae 6.00% 2037 | 90 | 100 |
Fannie Mae 6.50% 2037 | 229 | 251 |
Fannie Mae 7.00% 2037 | 282 | 318 |
Fannie Mae 7.00% 2037 | 97 | 109 |
Fannie Mae 2.597% 20384 | 1,170 | 1,241 |
Fannie Mae 5.50% 2038 | 846 | 931 |
Fannie Mae 6.00% 2038 | 293 | 316 |
Fannie Mae 3.618% 20394 | 1,325 | 1,407 |
Fannie Mae 2.589% 20404 | 12,221 | 12,769 |
Fannie Mae 4.194% 20404 | 1,238 | 1,312 |
Fannie Mae 4.395% 20404 | 1,836 | 1,951 |
Fannie Mae 4.50% 2040 | 2,748 | 2,919 |
Fannie Mae 4.50% 2040 | 531 | 565 |
Fannie Mae 5.00% 2040 | 596 | 651 |
Fannie Mae 3.51% 20414 | 1,982 | 2,054 |
Fannie Mae 3.771% 20414 | 3,932 | 4,195 |
Fannie Mae 4.00% 2041 | 7,842 | 8,093 |
Fannie Mae 4.50% 2041 | 4,298 | 4,569 |
Fannie Mae 4.50% 2041 | 2,756 | 2,926 |
Fannie Mae 4.50% 2041 | 1,560 | 1,658 |
Fannie Mae 5.00% 2041 | 1,757 | 1,929 |
Fannie Mae 5.00% 2041 | 1,348 | 1,480 |
Fannie Mae 5.00% 2041 | 874 | 959 |
Fannie Mae 5.00% 2041 | 607 | 666 |
Fannie Mae 2.951% 20424 | 7,504 | 7,575 |
Fannie Mae 3.00% 2042 | 29,977 | 28,545 |
Fannie Mae 3.50% 2042 | 3,955 | 3,940 |
Fannie Mae 3.50% 2042 | 3,276 | 3,264 |
Fannie Mae 2.513% 20434 | 5,109 | 5,058 |
Fannie Mae 3.00% 2043 | 36,678 | 34,929 |
Fannie Mae 3.00% 2043 | 28,710 | 27,342 |
Fannie Mae 3.00% 2043 | 27,603 | 26,288 |
Fannie Mae 3.00% 2043 | 26,412 | 25,151 |
Fannie Mae 3.00% 2043 | 6,865 | 6,537 |
Fannie Mae 3.00% 2043 | 6,633 | 6,316 |
Fannie Mae 3.00% 2043 | 5,540 | 5,189 |
Fannie Mae 3.00% 2043 | 3,383 | 3,165 |
Fannie Mae 3.00% 2043 | 1,138 | 1,066 |
Fannie Mae 3.00% 2043 | 1,035 | 969 |
Fannie Mae 3.00% 2043 | 540 | 515 |
Fannie Mae 3.00% 2043 | 140 | 131 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Federal agency mortgage-backed obligations3 (continued) | (000) | (000) |
Fannie Mae 3.50% 2043 | $ 4,072 | $ 4,057 |
Fannie Mae 3.00% 2044 | 77,350 | 73,452 |
Fannie Mae 4.50% 2044 | 72,600 | 76,948 |
Fannie Mae 5.50% 2044 | 3,120 | 3,432 |
Fannie Mae 6.00% 2044 | 4,320 | 4,792 |
Fannie Mae, Series 2001-4, Class GA, 9.533% 20254 | 5 | 6 |
Fannie Mae, Series 2001-4, Class NA, 10.65% 20254 | 22 | 24 |
Fannie Mae, Series 2006-56, Class OG, principal only, 0% 2036 | 435 | 388 |
Fannie Mae, Series 2007-33, Class HE, 5.50% 2037 | 925 | 1,005 |
Fannie Mae, Series 2007-40, Class PT, 5.50% 2037 | 478 | 521 |
Fannie Mae, Series 2001-T10, Class A-1, 7.00% 2041 | 132 | 154 |
Freddie Mac 5.50% 2024 | 4,138 | 4,499 |
Freddie Mac 6.00% 2026 | 834 | 914 |
Freddie Mac 6.00% 2027 | 1,876 | 2,056 |
Freddie Mac 4.50% 2029 | 212 | 228 |
Freddie Mac 2.476% 20354 | 394 | 415 |
Freddie Mac 2.375% 20364 | 695 | 737 |
Freddie Mac 2.054% 20374 | 160 | 168 |
Freddie Mac 5.50% 2037 | 66 | 72 |
Freddie Mac 2.801% 20384 | 496 | 527 |
Freddie Mac 4.879% 20384 | 946 | 1,006 |
Freddie Mac 5.50% 2038 | 3,474 | 3,792 |
Freddie Mac 5.50% 2038 | 185 | 202 |
Freddie Mac 5.00% 2040 | 2,848 | 3,085 |
Freddie Mac 3.237% 20414 | 7,627 | 8,045 |
Freddie Mac 3.392% 20414 | 2,094 | 2,199 |
Freddie Mac 5.00% 2041 | 4,221 | 4,630 |
Freddie Mac 5.00% 2041 | 2,051 | 2,238 |
Freddie Mac 2.563% 20424 | 3,696 | 3,685 |
Freddie Mac 2.581% 20424 | 1,570 | 1,600 |
Freddie Mac 3.00% 2042 | 24,086 | 22,892 |
Freddie Mac 3.00% 2042 | 19,259 | 18,304 |
Freddie Mac 3.00% 2042 | 1,547 | 1,470 |
Freddie Mac 2.096% 20434 | 1,624 | 1,658 |
Freddie Mac 2.351% 20434 | 6,984 | 6,827 |
Freddie Mac 3.00% 2043 | 9,853 | 9,365 |
Freddie Mac 4.00% 2043 | 19,685 | 20,290 |
Freddie Mac 4.00% 2043 | 19,505 | 20,104 |
Freddie Mac 4.00% 2043 | 15,192 | 15,658 |
Freddie Mac 4.00% 2043 | 4,325 | 4,460 |
Freddie Mac 4.00% 2043 | 2,120 | 2,189 |
Freddie Mac 4.00% 2043 | 1,982 | 2,043 |
Freddie Mac 4.00% 2043 | 1,417 | 1,460 |
Freddie Mac 4.00% 2043 | 1,321 | 1,362 |
Freddie Mac 4.00% 2043 | 766 | 790 |
Freddie Mac 4.00% 2043 | 510 | 526 |
Freddie Mac 4.00% 2044 | 38,000 | 39,036 |
Freddie Mac, Series 2356, Class GD, 6.00% 2016 | 217 | 228 |
Freddie Mac, Series 1567, Class A, 0.567% 20234 | 115 | 115 |
Freddie Mac, Series 3213, Class OG, principal only, 0% 2036 | 699 | 636 |
Freddie Mac, Series 3233, Class PA, 6.00% 2036 | 546 | 605 |
Government National Mortgage Assn. 3.00% 2026 | 12,721 | 13,081 |
Government National Mortgage Assn. 3.00% 2027 | 8,955 | 9,209 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Federal agency mortgage-backed obligations3 (continued) | (000) | (000) |
Government National Mortgage Assn. 5.50% 2038 | $ 1,041 | $ 1,146 |
Government National Mortgage Assn. 5.50% 2038 | 815 | 897 |
Government National Mortgage Assn. 5.50% 2038 | 499 | 550 |
Government National Mortgage Assn. 5.50% 2038 | 430 | 474 |
Government National Mortgage Assn. 6.00% 2038 | 923 | 1,028 |
Government National Mortgage Assn. 6.50% 2038 | 1,396 | 1,567 |
Government National Mortgage Assn. 6.50% 2038 | 402 | 451 |
Government National Mortgage Assn. 3.50% 20394 | 821 | 866 |
Government National Mortgage Assn. 5.00% 2039 | 2,389 | 2,595 |
Government National Mortgage Assn. 5.50% 2039 | 288 | 317 |
Government National Mortgage Assn. 6.00% 2039 | 1,093 | 1,231 |
Government National Mortgage Assn. 4.50% 2040 | 1,542 | 1,657 |
Government National Mortgage Assn. 5.50% 2040 | 26,899 | 30,241 |
Government National Mortgage Assn. 4.50% 2041 | 4,102 | 4,406 |
Government National Mortgage Assn. 5.00% 2041 | 8,347 | 9,064 |
Government National Mortgage Assn. 3.00% 2042 | 117 | 113 |
Government National Mortgage Assn. 3.50% 2043 | 4,403 | 4,451 |
Government National Mortgage Assn. 4.00% 2043 | 57,694 | 60,141 |
Government National Mortgage Assn. 4.50% 2043 | 27,508 | 29,468 |
Government National Mortgage Assn. 4.50% 2043 | 12,513 | 13,401 |
Government National Mortgage Assn. 3.50% 2044 | 16,055 | 16,186 |
Government National Mortgage Assn. 4.50% 2044 | 24,500 | 26,202 |
Government National Mortgage Assn. 6.172% 2058 | 38 | 41 |
Government National Mortgage Assn. 6.22% 2058 | 803 | 857 |
Government National Mortgage Assn., Series 2003, 6.116% 2058 | 660 | 714 |
Vendee Mortgage Trust, Series 2011-2, Class DA, 3.75% 2033 | 24,121 | 25,289 |
Vendee Mortgage Trust, Series 2010-1, Class DA, 4.25% 2035 | 20,051 | 20,619 |
National Credit Union Administration, Series 2011-M1, Class A2, 1.40% 2015 | 760 | 767 |
National Credit Union Administration, Series 2010-R2, Class 1A, 0.539% 20174 | 371 | 372 |
National Credit Union Administration, Series 2011-R3, Class 1A, 0.571% 20204 | 810 | 814 |
National Credit Union Administration, Series 2011-R1, Class 1A, 0.619% 20204 | 455 | 458 |
FDIC Structured Sale Guaranteed Notes, Series 2010-S1, Class 1-A, 0.719% 20484,5 | 264 | 265 |
952,954 | ||
Federal agency bonds & notes 19.32% | ||
Freddie Mac 0.375% 2014 | 26,550 | 26,562 |
Freddie Mac 1.75% 2015 | 23,425 | 23,974 |
Freddie Mac 1.00% 2017 | 1,750 | 1,743 |
Freddie Mac 1.25% 2019 | 18,730 | 17,749 |
Freddie Mac, Series K003, Class A2, multifamily 3.607% 2014 | 965 | 972 |
Freddie Mac, Series K501, Class A1, multifamily 1.337% 2016 | 1,904 | 1,924 |
Freddie Mac, Series K705, Class A2, multifamily 2.303% 2018 | 1,730 | 1,752 |
Freddie Mac, Series K706, Class A2, multifamily 2.323% 2018 | 2,000 | 2,024 |
Freddie Mac, Series K704, Class A2, multifamily 2.412% 2018 | 1,800 | 1,839 |
Freddie Mac, Series K702, Class A2, multifamily 3.154% 2018 | 2,019 | 2,131 |
Freddie Mac, Series K711, Class A2, multifamily 1.73% 2019 | 2,375 | 2,302 |
Freddie Mac, Series K712, Class A2, multifamily 1.869% 2019 | 1,760 | 1,699 |
Freddie Mac, Series K710, Class A2, multifamily 1.883% 2019 | 1,425 | 1,399 |
Freddie Mac, Series K709, Class A2, multifamily 2.086% 2019 | 1,000 | 991 |
Freddie Mac, Series KGRP, Class A, multifamily 0.546% 20204 | 5,465 | 5,475 |
Freddie Mac, Series KF02, Class A3, multifamily 0.795% 20204 | 1,754 | 1,757 |
Freddie Mac, Series K015, Class A1, multifamily 2.257% 2020 | 1,658 | 1,694 |
Freddie Mac, Series K009, Class A1, multifamily 2.757% 2020 | 1,065 | 1,109 |
Freddie Mac, Series K014, Class A1, multifamily 2.788% 2020 | 1,916 | 1,997 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Federal agency bonds & notes (continued) | (000) | (000) |
Freddie Mac, Series K013, Class A1, multifamily 2.902% 2020 | $ 2,008 | $ 2,099 |
Freddie Mac, Series K010, Class A1, multifamily 3.32% 2020 | 1,322 | 1,404 |
Freddie Mac, Series K019, Class A1, multifamily 1.459% 2021 | 7,823 | 7,661 |
Freddie Mac, Series K017, Class A2, multifamily 2.873% 2021 | 2,325 | 2,284 |
Freddie Mac, Series KS01, Class A1, multifamily 1.693% 2022 | 488 | 481 |
Freddie Mac, Series K023, Class A2, multifamily 2.307% 2022 | 8,540 | 7,878 |
Freddie Mac, Series K022, Class A2, multifamily 2.355% 2022 | 2,375 | 2,207 |
Freddie Mac, Series K020, Class A2, multifamily 2.373% 2022 | 11,755 | 10,995 |
Freddie Mac, Series K021, Class A2, multifamily 2.396% 2022 | 8,655 | 8,087 |
Freddie Mac, Series K024, Class A2, multifamily 2.573% 2022 | 2,830 | 2,662 |
Freddie Mac, Series K031, Class A1, multifamily 2.778% 2022 | 1,552 | 1,589 |
Freddie Mac, Series K030, Class A1, multifamily 2.779% 2022 | 1,892 | 1,933 |
Freddie Mac, Series KS01, Class A2, multifamily 2.522% 2023 | 3,460 | 3,248 |
Freddie Mac, Series K035, Class A1, multifamily 2.615% 2023 | 2,075 | 2,081 |
Freddie Mac, Series K033, Class A1, multifamily 2.871% 2023 | 9,815 | 9,974 |
Freddie Mac, Series K032, Class A1, multifamily 3.016% 2023 | 2,787 | 2,876 |
Freddie Mac, Series K033, Class A2, multifamily 3.06% 20234 | 33,313 | 32,175 |
Freddie Mac, Series K028, Class A2, multifamily 3.111% 2023 | 2,250 | 2,195 |
Freddie Mac, Series K030, Class A2, multifamily 3.25% 20234 | 4,327 | 4,263 |
Freddie Mac, Series K031, Class A2, multifamily 3.30% 20233,4 | 7,878 | 7,778 |
Freddie Mac, Series K032, Class A2, multifamily 3.31% 20234 | 28,000 | 27,632 |
Freddie Mac, Series K029, Class A2, multifamily 3.32% 20234 | 3,900 | 3,864 |
Freddie Mac, Series K035, Class A2, multifamily 3.458% 20234 | 15,000 | 14,914 |
Freddie Mac, Series K034, Class A2, multifamily 3.531% 20234 | 1,405 | 1,406 |
Federal Home Loan Bank 5.50% 2014 | 31,410 | 32,439 |
Federal Home Loan Bank 0.375% 2015 | 34,750 | 34,767 |
Federal Home Loan Bank 2.75% 2015 | 9,250 | 9,523 |
Federal Home Loan Bank 0.625% 2016 | 7,230 | 7,194 |
Federal Home Loan Bank 3.375% 2023 | 16,715 | 16,537 |
Federal Home Loan Bank 5.50% 2036 | 600 | 694 |
Federal Home Loan Bank, Series 2816, 1.00% 2017 | 56,095 | 55,990 |
United States Agency for International Development, Jordan (Kingdom of) 2.503% 2020 | 88,000 | 86,187 |
Tennessee Valley Authority, Series A, 3.875% 2021 | 32,975 | 34,805 |
Tennessee Valley Authority 1.875% 2022 | 10,150 | 9,032 |
TVA Southaven 3.846% 20333 | 1,775 | 1,764 |
Tennessee Valley Authority 4.65% 2035 | 2,330 | 2,335 |
Tennessee Valley Authority 5.88% 2036 | 1,750 | 2,021 |
Tennessee Valley Authority 5.25% 2039 | 10,650 | 11,427 |
Tennessee Valley Authority, Series B, 3.50% 2042 | 4,720 | 3,725 |
Tennessee Valley Authority, Series A, 4.625% 2060 | 250 | 224 |
Federal Farm Credit Banks 1.625% 2014 | 18,500 | 18,724 |
Federal Farm Credit Banks 0.60% 2017 | 41,774 | 41,135 |
Fannie Mae 7.125% 2030 | 4,000 | 5,443 |
Fannie Mae, Series 2012-M9, multifamily 1.513% 2017 | 2,375 | 2,361 |
Fannie Mae, Series 2012-M5, Class A1, multifamily 1.787% 2022 | 1,271 | 1,262 |
Fannie Mae, Series 2013-M4, multifamily 2.608% 2022 | 2,300 | 2,204 |
Fannie Mae, Series 2012-M2, Class A2, multifamily 2.717% 2022 | 2,350 | 2,265 |
Fannie Mae, Series 2012-M3, Class 1-A2, multifamily 3.044% 2022 | 2,000 | 1,971 |
Fannie Mae, Series 2013-M14, Class A2, multifamily 3.329% 20234 | 1,841 | 1,800 |
Private Export Funding Corp. 1.45% 2019 | 4,750 | 4,549 |
United States Government-Guaranteed Certificates of Participation, | ||
Overseas Private Investment Corp, 0% 2016 | 594 | 594 |
United States Government-Guaranteed Certificates of Participation, | ||
Overseas Private Investment Corp, 3.49% 20293,6 | 990 | 965 |
Bonds, notes & other debt instruments | ||
Principal amount | Value | |
Federal agency bonds & notes (continued) | (000) | (000) |
United States Government-Guaranteed Certificates of Participation, | ||
Overseas Private Investment Corp, 3.82% 20323 | $ 1,085 | $ 1,080 |
United States Government-Guaranteed Certificates of Participation, | ||
Overseas Private Investment Corp, 3.938% 20323 | 887 | 865 |
Small Business Administration, Series SBIC-PS 2006-10A, Participating Securities, 5.408% 20163 | 370 | 389 |
Small Business Administration, Series 2001-20K, 5.34% 2021 | 185 | 201 |
Small Business Administration, Series 2001-20J, 5.76% 2021 | 111 | 121 |
Small Business Administration, Series 2001-20F, 6.44% 20213 | 370 | 410 |
Small Business Administration, Series 2003-20B, 4.84% 2023 | 849 | 913 |
656,695 | ||
Bonds & notes of government agencies outside the U.S. 0.17% | ||
United Kingdom Government Agency-Guaranteed, Network Rail Infrastructure Ltd 1.50% 20145 | 4,000 | 4,002 |
Kommunalbanken 1.00% 20145 | 1,626 | 1,631 |
5,633 | ||
Total bonds, notes & other debt instruments (cost: $3,087,266,000) | 3,037,832 | |
Short-term securities 16.29% | ||
Federal Farm Credit Banks 0.06%–0.15% due 2/10–8/11/2014 | 120,000 | 119,959 |
Chevron Corp. 0.08%–0.10% due 2/19–3/12/20145 | 78,700 | 78,682 |
National Rural Utilities Cooperative Finance Corp. 0.09%–0.10% due 1/16–2/7/2014 | 76,000 | 75,995 |
Private Export Funding Corp. 0.10%–0.23% due 2/12–4/7/20145 | 70,600 | 70,581 |
John Deere Financial Ltd. 0.08%–0.09% due 1/8–1/10/20145 | 56,200 | 56,199 |
Coca-Cola Co. 0.16%–0.18% due 1/6–1/21/20145 | 30,700 | 30,699 |
IBM Corp. 0.05% due 1/28/20145 | 27,400 | 27,399 |
Tennessee Valley Authority 0.06% due 3/20/2014 | 27,300 | 27,295 |
Abbott Laboratories 0.14% due 1/3/20145 | 20,600 | 20,600 |
Army and Air Force Exchange Service 0.11% due 3/17/20145 | 20,100 | 20,093 |
General Electric Capital Corp. 0.05% due 1/2/2014 | 19,300 | 19,300 |
Honeywell International Inc. 0.15% due 3/26/20145 | 7,100 | 7,098 |
Total short-term securities (cost: $553,887,000) | 553,900 | |
Total investment securities (cost: $3,641,153,000) | 3,591,732 | |
Other assets less liabilities | (192,473) | |
Net assets | $3,399,259 |
1 | A portion of this security was pledged as collateral. The total value of pledged collateral was $7,401,000, which represented ..22% of the net assets of the fund. |
2 | Index-linked bond whose principal amount moves with a government price index. |
3 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
4 | Coupon rate may change periodically. |
5 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $317,249,000, which represented 9.33% of the net assets of the fund. |
6 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $965,000, which represented .03% of the net assets of the fund. |
Cash Management FundSM
Investment portfolio
December 31, 2013
Short-term securities 99.65% | ||
Principal amount | Value | |
Commercial paper 44.30% | (000) | (000) |
Nestlé Capital Corp. 0.10% due 1/7/20141 | $ 20,000 | $ 20,000 |
Gotham Funding Corp. 0.16% due 1/6/20141 | 15,000 | 14,999 |
Victory Receivables Corp. 0.16% due 1/9/20141 | 5,000 | 5,000 |
Merck & Co. Inc. 0.07% due 2/14/20141 | 19,000 | 18,998 |
John Deere Financial Ltd. 0.08% due 1/29/20141 | 18,000 | 17,999 |
Australia & New Zealand Banking Group, Ltd. 0.17% due 3/20/20141 | 17,200 | 17,195 |
Paccar Financial Corp. 0.09% due 1/3/2014 | 16,900 | 16,900 |
KfW 0.15% due 2/28/20141 | 13,400 | 13,399 |
GlaxoSmithKline Finance PLC 0.11% due 1/6/20141 | 12,800 | 12,800 |
Québec (Province of) 0.085%–0.10% due 1/21–2/10/20141 | 11,300 | 11,299 |
Toyota Motor Credit Corp. 0.15% due 2/27/2014 | 11,200 | 11,198 |
National Rural Utilities Cooperative Finance Corp. 0.09% due 1/8/2014 | 11,000 | 11,000 |
Abbott Laboratories 0.11% due 1/3/20141 | 9,500 | 9,500 |
Sumitomo Mitsui Banking Corp. 0.16% due 1/8/20141 | 9,200 | 9,200 |
Mizuho Funding LLC 0.165% due 1/22/20141 | 8,400 | 8,399 |
Army and Air Force Exchange Service 0.11% due 3/11/20141 | 4,000 | 3,999 |
General Electric Capital Corp. 0.05% due 1/2/2014 | 1,900 | 1,900 |
203,785 | ||
Federal agency discount notes 31.23% | ||
Federal Home Loan Bank 0.05%–0.107% due 1/8–3/19/2014 | 107,463 | 107,456 |
Freddie Mac 0.075%–0.13% due 2/24–3/11/2014 | 19,900 | 19,897 |
Federal Farm Credit Banks 0.06% due 1/10/2014 | 10,000 | 10,000 |
Fannie Mae 0.10% due 8/1/2014 | 6,300 | 6,296 |
143,649 | ||
U.S. Treasuries 20.86% | ||
U.S. Treasury Bills 0.032%–0.103% due 1/23–6/5/2014 | 96,000 | 95,988 |
Discount notes 3.26% | ||
International Bank for Reconstruction and Development 0.065% due 1/17/2014 | 15,000 | 14,999 |
Total investment securities (cost: $458,408,000) | 458,421 | |
Other assets less liabilities | 1,612 | |
Net assets | $460,033 |
1 | Acquired in a transaction exempt from registration under section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $162,787,000, which represented 35.39% of the net assets of the fund. |
Managed Risk Growth FundSM
Investment portfolio
December 31, 2013
Growth fund 94.13% | Shares | Value (000) |
American Funds Insurance Series — Growth Fund, Class 1 | 335,489 | $26,349 |
Total growth fund (cost $24,332,000) | 26,349 | |
Short-term securities 5.21% | ||
Government Cash Management Fund | 1,459,936 | 1,460 |
Total short-term securities (cost $1,460,000) | 1,460 | |
Total investment securities (cost $25,792,000) | 27,809 | |
Other assets less liabilities | 184 | |
Net assets | $27,993 |
Managed Risk International FundSM
Investment portfolio
December 31, 2013
Growth fund 93.21% | Shares | Value (000) |
American Funds Insurance Series — International Fund, Class 1 | 741,709 | $15,739 |
Total growth fund (cost $14,596,000) | 15,739 | |
Short-term securities 6.26% | ||
Government Cash Management Fund | 1,057,747 | 1,058 |
Total short-term securities (cost $1,058,000) | 1,058 | |
Total investment securities (cost $15,654,000) | 16,797 | |
Other assets less liabilities | 89 | |
Net assets | $16,886 |
Managed Risk Blue Chip Income
and Growth FundSM
Investment portfolio
December 31, 2013
Value | ||
Growth-and-income fund 94.41% | Shares | (000) |
American Funds Insurance Series — Blue Chip Income and Growth Fund, Class 1 | 1,896,886 | $24,887 |
Total growth-and-income fund (cost $23,016,000) | 24,887 | |
Short-term securities 5.14% | ||
Government Cash Management Fund | 1,353,973 | 1,354 |
Total short-term securities (cost $1,354,000) | 1,354 | |
Total investment securities (cost $24,370,000) | 26,241 | |
Other assets less liabilities | 118 | |
Net assets | $26,359 |
Managed Risk
Growth-Income FundSM
Investment portfolio
December 31, 2013
Value | ||
Growth-and-income fund 94.30% | Shares | (000) |
American Funds Insurance Series — Growth-Income Fund, Class 1 | 449,118 | $22,779 |
Total growth-and-income fund (cost $20,782,000) | 22,779 | |
Short-term securities 5.42% | ||
Government Cash Management Fund | 1,308,599 | 1,309 |
Total short-term securities (cost $1,309,000) | 1,309 | |
Total investment securities (cost $22,091,000) | 24,088 | |
Other assets less liabilities | 67 | |
Net assets | $24,155 |
Managed Risk
Asset Allocation FundSM
Investment portfolio
December 31, 2013
Value | ||
Asset allocation fund 93.48% | Shares | (000) |
American Funds Insurance Series — Asset Allocation Fund, Class 1* | 37,702,567 | $847,930 |
Total asset allocation fund (cost $792,975,000) | 847,930 | |
Short-term securities 6.08% | ||
Government Cash Management Fund | 55,166,587 | 55,167 |
Total short-term securities (cost $55,167,000) | 55,167 | |
Total investment securities (cost $848,142,000) | 903,097 | |
Other assets less liabilities | 3,973 | |
Net assets | $907,070 |
*Represents an affiliated company as defined under the Investment Company Act of 1940.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
American Funds Insurance Series serves as an underlying investment option for multiple insurance products, including variable annuity contracts and variable life insurance policies. The funds can be purchased only through insurance products. This material is not an offer of the funds.
INGEFPX-998-0214O-S37710
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of American Funds Insurance Series
We have audited, in accordance with standards of the Public Company Accounting Oversight Board (United States), the financial statements of Global Growth Fund, Global Small Capitalization Fund, Growth Fund, International Fund, New World Fund, Blue Chip Income and Growth Fund, Global Growth and Income Fund, Growth-Income Fund, International Growth and Income Fund, Asset Allocation Fund, Global Balanced Fund, Bond Fund, Global Bond Fund, High-Income Bond Fund, Mortgage Fund and U.S. Government/AAA-Rated Securities Fund (sixteen of the portfolios constituting American Funds Insurance Series, hereafter referred to as the “Series”) as of December 31, 2013, and for the year then ended and have issued our unqualified report thereon dated February 5, 2014 (which report and financial statements are included in Item 1 of this Certified Shareholder Report on Form N-CSR). Our audits included an audit of each of the Series’ investment portfolios (the “Portfolios”) as of December 31, 2013 appearing in Item 6 of this Form N-CSR. The Portfolios are the responsibility of the Series’ management. Our responsibility is to express an opinion on the Portfolios based on our audits.
In our opinion, the Portfolios referred to above, when read in conjunction with the financial statements of the Series referred to above, present fairly, in all material respects, the information set forth therein.
PricewaterhouseCoopers LLP
Los Angeles, California
February 5, 2014
ITEM 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 8 – Portfolio Managers of Closed-End Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 10 – Submission of Matters to a Vote of Security Holders
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of trustees since the Registrant last submitted a proxy statement to its shareholders. The procedures are as follows. The Registrant has a nominating and governance committee comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full board of trustees. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the board. Such suggestions must be sent in writing to the nominating and governance committee of the Registrant, c/o the Registrant’s Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the nominating and governance committee.
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 such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule. |
(b) | There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
ITEM 12 – Exhibits
(a)(1) | The Code of Ethics that is the subject of the disclosure required by Item 2 is attached as an exhibit hereto. |
(a)(2) | The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto. |
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.
AMERICAN FUNDS INSURANCE SERIES | |
By /s/ Michael J. Downer | |
Michael J. Downer, Executive Vice President and Principal Executive Officer | |
Date: February 28, 2014 |
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/ Michael J. Downer |
Michael J. Downer, Executive Vice President and Principal Executive Officer |
Date: February 28, 2014 |
By /s/ Gregory F. Niland |
Gregory F. Niland, Treasurer and Principal Financial Officer |
Date: February 28, 2014 |