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, 2017
Steven I. Koszalka
American Funds Insurance Series
333 South Hope Street
Los Angeles, California 90071
(Name and Address of Agent for Service)
ITEM 1 – Reports to Stockholders
American Funds
Annual report |
We believe in
investing in global
companies for
the long term.
American Funds Insurance Series, from Capital Group, is the underlying investment vehicle for many variable annuities and insurance products. For more than 85 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. 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 involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries. Investing in small-capitalization stocks can involve greater risk than is customarily associated with investing in stocks of larger, more established companies. The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. High-yield bonds are subject to greater fluctuations in value and risk of loss of income and principal than investment-grade bonds. Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor’s, Moody’s and/or Fitch as an indication of an issuer’s creditworthiness. Futures 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.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Contents
1 | Letter to investors | |
4 | Fund reviews | |
Investment portfolios | ||
46 | Global Growth Fund | |
49 | Global Small Capitalization Fund | |
53 | Growth Fund | |
56 | International Fund | |
59 | New World Fund® | |
63 | Blue Chip Income and Growth Fund | |
65 | Global Growth and Income Fund | |
68 | Growth-Income Fund | |
71 | International Growth and Income Fund | |
74 | Capital Income Builder® | |
78 | Asset Allocation Fund | |
83 | Global Balanced Fund | |
88 | Bond Fund | |
94 | Global Bond Fund | |
99 | High-Income Bond Fund | |
104 | Mortgage Fund | |
108 | Ultra-Short Bond Fund | |
109 | U.S. Government/AAA-Rated Securities Fund | |
113 | Managed Risk Growth Fund | |
114 | Managed Risk International Fund | |
115 | Managed Risk Blue Chip Income and Growth Fund | |
116 | Managed Risk Growth-Income Fund | |
117 | Managed Risk Asset Allocation Fund | |
118 | Financial statements |
Fellow investors:
Equity markets rallied in 2017, with the MSCI ACWI (All Country World Index)1 advancing 23.97%. Against a backdrop of widespread macroeconomic stability, a majority of countries benefited from strong corporate earnings and accommodative monetary policy. Financial markets remained resilient despite challenges stemming from volatile politics in Western democracies, uncertainty in the Middle East, and tensions between the U.S. and North Korea.
The MSCI USA Index1 rose 21.90%, with Gross Domestic Product (GDP) growing an annualized 3.2% in the third quarter. On the whole, the picture remained bright, reflecting an improving jobs market, rising consumer confidence, a surge in retail sales and healthy corporate profits. On the policy front, the Trump administration followed through on its pledge of delivering tax reforms as Congress approved a $1.5 trillion tax bill. Meanwhile, the Federal Reserve raised the benchmark federal funds rate by a quarter percentage point three times over the 12 months and announced it would begin to reduce the size of its balance sheet as the economy continues to strengthen.
European markets improved, diminishing investor concerns about political risk as election victories for Emmanuel Macron in France and Angela Merkel in Germany helped restore a degree of stability. The MSCI Europe Index1 climbed 25.51%, reversing last year’s weakness, with France (+28.75%), Italy (+28.43%), Germany (+27.70%) and the U.K. (+22.30%) all registering double-digit gains. Central bank stimulus measures helped lift Europe’s markets, as officials from the European Central Bank announced they would extend quantitative easing until at least September 2018 to help keep the economy on track. Ultra-low or negative interest rates and a broad-based recovery across the continent, particularly in countries that have engaged in fiscal reform in the past several years, facilitated Europe’s growth trajectory while helping combat deflationary pressures. GDP climbed at an annualized rate of 2.6% in the euro zone as the unemployment rate fell to 8.9%, its lowest level since 2009.
Elsewhere among developed markets, Japanese equities rose 23.99%, buoyed by the country’s longest streak of economic expansion in more than a decade and a weaker yen. On the political front, Prime Minister Shinzo Abe won a majority for his party in a parliamentary election held a year earlier than expected.
Emerging markets recorded some of the most impressive gains with the MSCI EM (Emerging Markets) Index1 up 37.28%. Chinese equities advanced 54.07%, allaying fears about the nation’s debt load. Higher commodity prices, an uptick in industrial activity and government policy measures designed to stimulate the economy boosted the country’s growth. President Xi Jinping’s re-election confirmed support for his policies aimed at hastening development and improving international relations. China continues to build a rich digital ecosystem around e-commerce as it strengthens its position
See page 2 for footnotes.
American Funds Insurance Series | 1 |
as a global competitor. Elsewhere, government leaders in Brazil (+24.11%) and India (+38.76%) unveiled additional plans designed to stoke their respective economies, which expanded at an improving tempo. Russian stocks climbed a more modest 5.20% as oil prices rebounded. OPEC and Russia agreed to extend oil production cuts until the end of 2018 to accelerate rebalancing of inventories around the world.
In bond markets, U.S. investment-grade (as measured by the Bloomberg Barclays U.S. Corporate Investment Grade Index2) and high-yield corporates (as measured by the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index2) advanced 6.42% and 7.50%, respectively, as investors sought higher yields than those offered by U.S. Treasuries amid tightening monetary policy. The Bloomberg Barclays Global Aggregate Index2, a measure of global investment-grade bonds (rated BBB/Baa and above), was up 7.39%, while the Bloomberg Barclays U.S. Aggregate Index2 (which measures U.S. investment-grade bonds) improved 3.54%. The 10-year Treasury yield, which stood at 2.45% on December 31, 2016, was little changed by year-end finishing at 2.40%. U.S. dollar–denominated emerging markets bonds, as measured by the J.P. Morgan EMBI (Emerging Markets Bond Index) Global3, rose 9.32% as their higher yields were popular in a low-rate environment.
In currency markets, the U.S. dollar depreciated against most currencies. The euro (+13.85%), British pound (+9.48%) and Canadian dollar (+7.03%) all benefited from a weaker U.S. dollar. Gainers among developing markets included the Chinese renminbi (+6.72%), Indian rupee (+6.33%) and Russian ruble (+6.03%). The Brazilian real declined 1.88%.
Looking ahead
As the global economy continues to gather momentum, we remain optimistic about the long-term outlook. Lower corporate taxes combined with the prospects of greater infrastructure spending and regulatory reform could help the U.S. set the pace for expansion.
While Europe and Japan are in the midst of a recovery, many emerging markets are enjoying even faster growth amid rising commodities prices, a weakening U.S. dollar and increased consumer spending as the standard of living improves in a number of developing countries. We closely monitor key indicators such as inflation and wage growth, while evaluating the potential impact of a return to more normalized monetary policy from central banks in the future. All these factors are likely to cause interest rates to edge higher. A backdrop of good growth and modestly increasing rates should be positive for equities.
In the short term, we develop some caution whenever the market stages an impressive rally, as it has recently. It would not be uncommon to see a correction or pause after such gains. At these higher levels of valuation, we believe it is particularly important to conduct fundamental research and remain confident in our investment approach.
After a period of record low volatility, we are not surprised to see it pick up again recently. As stock pickers, we believe volatile share prices may present an opportunity to invest in individual companies with sound fundamentals that can ride out short-term turbulence.
Our time-tested approach — based on extensive research, a long-term outlook and close attention to valuation — has served investors well over time. We continue to have confidence this will remain the case. We thank you for your support and look forward to reporting to you again in six months’ time.
Sincerely,
Donald D. O’Neal
Vice Chairman of the Board
Alan N. Berro
President
February 9, 2018
All market indexes referenced in this report are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.
1 | Country returns are based on MSCI indexes, which reflect reinvestment of distributions and dividends net of withholding taxes, except for the MSCI USA Index, which reflects dividends gross of withholding taxes. Source: MSCI. |
2 | Source: Bloomberg Index Services Ltd. |
3 | This report, and any product, index or fund referred to herein, is not sponsored, endorsed or promoted in any way by J.P. Morgan or any of its affiliates who provide no warranties whatsoever, express or implied, and shall have no liability to any prospective investor in connection with this report. J.P. Morgan disclaimer: http://www.jpmorgan.com/pages/jpmorgan/ib/girg. |
2 | American Funds Insurance Series |
Summary investment portfolios
Summary investment portfolios are designed to streamline this report and help investors better focus on the funds’ principal holdings. Ultra-Short Bond Fund, Managed Risk Growth Fund, Managed Risk International Fund, Managed Risk Blue Chip Income and Growth Fund, Managed Risk Growth-Income Fund and Managed Risk Asset Allocation Fund show a complete listing of portfolio holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings for each fund in the series.
Unless otherwise indicated, American Funds Insurance Series investment results are for Class 2 shares (Class P2 shares for managed risk funds). Class 1A shares began operations on January 6, 2017. Class 2 shares began operations on April 30, 1997. Class 3 shares began operations on January 16, 2004. Class 4 shares began operations on December 14, 2012. Results encompassing periods prior to those dates assume a hypothetical investment in Class 1 shares and include the deduction of additional annual expenses (0.25% for Class 1A shares, 0.25% for Class 2 shares, 0.18% for Class 3 shares and 0.50% for Class 4 shares).
The variable annuities and life insurance contracts that use the series funds contain certain fees and expenses not reflected in this report. Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The series investment adviser waived a portion of its management fees for all existing funds from September 1, 2004, through December 31, 2008, for U.S. Government/AAA-Rated Securities Fund from July 1, 2010, through December 31, 2010, and for Blue Chip Income and Growth Fund from February 1, 2014, through January 31, 2015.
For the managed risk funds, the investment adviser is currently waiving a portion of its management fee equal to 0.05% of the funds’ net assets. In addition, the investment adviser is currently reimbursing a portion of miscellaneous expenses for all managed risk funds except Managed Risk Asset Allocation Fund. The funds’ investment results and net expense ratios shown reflect the waivers and reimbursements, without which the results would have been lower and the expenses would have been higher. The waivers and reimbursements will be in effect through at least May 1, 2019, unless modified or terminated by the series board. See the Financial Highlights tables in the report for details.
The Managed Risk Growth Fund pursues its objective by investing in shares of American Funds Insurance Series — Growth FundSM and American Funds Insurance Series — Bond FundSM. The Managed Risk International Fund pursues its objective by investing in shares of American Funds Insurance Series — International FundSM and American Funds Insurance Series — Bond FundSM. The Managed Risk Blue Chip Income and Growth Fund pursues its objective by investing in shares of American Funds Insurance Series — Blue Chip Income and Growth FundSM and American Funds Insurance Series — U.S. Government/AAA-Rated Securities FundSM. The Managed Risk Growth-Income Fund pursues its objective by investing in shares of American Funds Insurance Series — Growth-Income FundSM and American Funds Insurance Series — Bond FundSM. The Managed Risk Asset Allocation Fund pursues its objective by investing in shares of American Funds Insurance Series — Asset Allocation FundSM. The funds seek to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the funds’ managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the funds’ results can be expected to lag those of the underlying fund.
Funds are listed in the report as follows: equity, balanced, fixed income and managed risk.
American Funds Insurance Series | 3 |
Global Growth Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information 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 rose 31.47% for the 12 months ended December 31, 2017, compared with a 23.97% increase for the MSCI ACWI (All Country World Index)1, a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, consisting of more than 40 developed and emerging market country indexes.
U.S. equity markets continued to stage an impressive rally as consumer optimism, healthy corporate earnings and an improving job market provided a boost to the economy. European stocks rose, driven by a powerful combination of central bank stimulus and accelerating corporate earnings. Emerging markets advanced as well, led by rising prices for most commodities and robust profits from leading technology companies.
Larger-than-index investments and strong stock selection in information technology and consumer discretionary benefited fund results. An eclectic mix of stocks boosted the fund’s returns. Nintendo soared as the company’s second-quarter revenues and earnings topped estimates, led by strong sales of the Nintendo Switch console. Amazon reported strong third-quarter earnings and acquired Whole Foods, which helped strengthen its retail platform and contributed to its stock price appreciation.
Investments in energy companies detracted from the fund’s results. OPEC’s production cuts aimed at propping up oil prices had done little for Canadian energy stocks as Seven Generations declined.
On a geographic basis, stocks of companies domiciled in the U.S., China and the Netherlands were additive to relative results, while stocks of companies based in Canada, Spain and Denmark lagged.
Despite soaring valuations, the fund’s portfolio managers are optimistic they will continue to find good companies globally that offer high-quality products, and whose values are not yet fully reflected in their share prices.
Country diversification | Percent of net assets | |||
The Americas | ||||
United States | 38.2 | % | ||
Other | 2.0 | |||
40.2 | ||||
Europe | ||||
United Kingdom | 7.0 | |||
France | 6.2 | |||
Netherlands | 4.4 | |||
Switzerland | 3.7 | |||
Germany | 1.5 | |||
Spain | 1.5 | |||
Russian Federation | 1.3 | |||
Finland | 1.0 | |||
Italy | 1.0 | |||
Other | 2.2 | |||
29.8 | ||||
Asia/Pacific Basin | ||||
Japan | 6.6 | |||
China | 6.0 | |||
Taiwan | 4.0 | |||
Hong Kong | 3.3 | |||
India | 2.9 | |||
South Korea | 1.1 | |||
Other | 1.5 | |||
25.4 | ||||
Other regions | ||||
South Africa | 1.3 | |||
Short-term securities & other assets less liabilities | 3.3 | |||
Total | 100.0 | % |
Largest equity securities | Percent of net assets | |||
Amazon | 5.47 | % | ||
ASML | 3.60 | |||
TSMC | 3.53 | |||
Alphabet | 3.39 | |||
Nintendo | 2.88 | |||
2.54 | ||||
British American Tobacco | 2.17 | |||
AIA Group | 2.05 | |||
Microsoft | 1.86 | |||
Alibaba Group | 1.86 |
4 | American Funds Insurance Series |
Global Growth Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2017
Lifetime | Expense | |||||||||||||||||||
1 year | 5 years | 10 years | (since April 30, 1997) | ratio | ||||||||||||||||
Class 1 | 31.80 | % | 13.61 | % | 7.68 | % | 10.12 | % | .55 | % | ||||||||||
Class 1A | 31.54 | 13.34 | 7.42 | 9.85 | .80 | 2 | ||||||||||||||
Class 2 | 31.47 | 13.33 | 7.42 | 9.84 | .80 | |||||||||||||||
Class 4 | 31.11 | 13.13 | 7.19 | 9.59 | 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, 2018 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: MSCI. The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
2 | Based on estimated amounts for the current fiscal year. |
Where the fund’s assets were invested as of December 31, 2017 | 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 increased 25.89% for the 12 months ended December 31, 2017. Its benchmark, the MSCI All Country World Small Cap Index¹, a free float-adjusted market capitalization-weighted index that is designed to measure equity market results of smaller capitalization companies in both developed and emerging markets, gained 23.81%.
Global stocks advanced on the back of strong corporate earnings, accommodative monetary policy and macroeconomic stability across most regions. Numerous equity market indexes achieved or neared multiyear highs in 2017. European and emerging market equities outpaced U.S. stock markets, as investors set aside concerns about politics and focused on the global economic recovery.
Holdings in the information technology, consumer discretionary and health care sectors — the fund’s largest sectors by concentration — aided returns. Kite Pharma rose as the company was acquired by Gilead for $11.9 billion in an all-cash deal. Sunny surged to all-time highs led by robust demand for technology-related components that helped contribute to earnings growth. Investments in energy stocks, such as Laredo Petroleum and Carrizo, hurt results.
While investments in U.S. companies were additive to relative returns, larger-than-index investments in U.K.–domiciled companies detracted from relative results.
We continue to think powerful long-term investments can be found among companies with innovative products and services that are changing the way people live around the globe. We also continue to believe there are better values outside the U.S. stock market that grow more compelling every day.
While geopolitical uncertainties may result in volatility, the fund’s portfolio managers are optimistic that our investment process can help identify companies outside the U.S. with innovative products and services that are changing the way people live around the globe.
Country diversification | Percent of net assets | |||
The Americas | ||||
United States | 40.3 | % | ||
Canada | 2.7 | |||
Brazil | 1.0 | |||
Other | .2 | |||
44.2 | ||||
Asia/Pacific Basin | ||||
Japan | 7.2 | |||
China | 4.6 | |||
India | 4.4 | |||
Hong Kong | 3.2 | |||
Taiwan | 2.4 | |||
Philippines | 1.8 | |||
Thailand | 1.7 | |||
South Korea | 1.4 | |||
Other | 1.6 | |||
28.3 | ||||
Europe | ||||
United Kingdom | 12.3 | |||
Germany | 2.6 | |||
France | 1.1 | |||
Switzerland | 1.0 | |||
Other | 4.1 | |||
21.1 | ||||
Short-term securities & other assets less liabilities | 6.4 | |||
Total | 100.0 | % |
Largest equity securities | Percent of net assets | |||
GW Pharmaceuticals | 2.28 | % | ||
Insulet | 1.83 | |||
Qorvo | 1.73 | |||
WIN Semiconductors | 1.43 | |||
Kotak Mahindra Bank | 1.20 | |||
Hilton Grand Vacations | 1.19 | |||
Melco International Development | 1.18 | |||
GVC Holdings | 1.17 | |||
Illumina | 1.17 | |||
Integra LifeSciences Holdings | 1.14 |
6 | American Funds Insurance Series |
Global Small Capitalization Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2017
1 year | 5 years | 10 years | Lifetime (since April 30, 1998) | Expense ratio | ||||||||||||||||
Class 1 | 26.22 | % | 11.31 | % | 4.26 | % | 9.80 | % | .74 | % | ||||||||||
Class 1A | 25.99 | 11.05 | 4.01 | 9.53 | .99 | 2 | ||||||||||||||
Class 2 | 25.89 | 11.04 | 4.00 | 9.53 | .99 | |||||||||||||||
Class 4 | 25.62 | 10.78 | 3.76 | 9.26 | 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, 2018 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: MSCI. The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
2 | Based on estimated amounts for the current fiscal year. |
Where the fund’s assets were invested as of December 31, 2017 | 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 28.28% for the 12 months ended December 31, 2017, compared with a 21.83% increase in its benchmark, the Standard & Poor’s 500 Composite Index,1 a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.
U.S. equity markets continued to stage an impressive rally as consumer optimism, healthy corporate earnings and an improving job market provided a boost to the economy. Strong consumer demand and rising optimism fueled the information technology sector higher. European stocks rose, driven by a powerful combination of central bank stimulus and accelerating corporate earnings. Emerging markets also advanced, led by rising prices for most commodities and robust profits from leading technology companies.
Larger-than-index investments and stock selection in information technology and consumer discretionary boosted the fund’s returns. Among the fund’s top contributors to returns (posting double-digit gains) was consumer discretionary company Amazon and information technology company Facebook. Exposure to the energy sector detracted from fund results, despite OPEC’s decision to extend production cuts into 2018. Energy exploration and production company Noble Energy and oil-field services company Schlumberger detracted from returns.
Although U.S. economic growth remained strong with GDP growing at an annualized pace of 3.2% in the third quarter, the fund’s portfolio managers are keeping a close watch on economic indicators, such as wage growth and fiscal policy, including outcomes of the recent U.S. tax bill. Portfolio managers continue to favor well-positioned, growth-oriented companies that are capable of generating free cash flow in myriad economic environments, and remain optimistic that our global research will help us identify attractive long-term investment opportunities.
Largest equity securities | Percent of net assets | |||
Amazon | 6.39 | % | ||
5.89 | ||||
Microsoft | 4.00 | |||
Alphabet | 3.71 | |||
UnitedHealth Group | 3.10 | |||
Broadcom | 2.92 | |||
ASML | 2.49 | |||
Apple | 2.18 | |||
Netflix | 1.96 | |||
Tesla | 1.88 |
8 | American Funds Insurance Series |
Growth Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2017
1 year | 5 years | 10 years | Lifetime (since February 8, 1984) | Expense ratio | ||||||||||||||||
Class 1 | 28.62 | % | 16.50 | % | 8.56 | % | 12.83 | % | .35 | % | ||||||||||
Class 1A | 28.36 | 16.22 | 8.29 | 12.55 | .60 | 2 | ||||||||||||||
Class 2 | 28.28 | 16.21 | 8.29 | 12.55 | .60 | |||||||||||||||
Class 3 | 28.39 | 16.29 | 8.36 | 12.63 | .53 | |||||||||||||||
Class 4 | 27.99 | 15.95 | 8.03 | 12.27 | .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, 2018 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: S&P Dow Jones Indices LLC. |
2 | Based on estimated amounts for the current fiscal year. |
Where the fund’s assets were invested as of December 31, 2017 | 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 gained 32.14% for the 12 months ended December 31, 2017. Its benchmark, the MSCI ACWI (All Country World Index) ex USA1, a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, consisting of more than 40 developed and emerging market country indexes excluding the U.S., rose 27.19%.
Global stocks rallied, led by strong corporate earnings growth and accommodative monetary policy amid a backdrop of macroeconomic stability across most regions. A broad-based recovery and ultra-low interest rates across Europe, particularly in countries that have engaged in fiscal reform over the past few years, facilitated the continent’s growth trajectory while helping combat deflationary pressures. Political fighting in the U.S. and elsewhere was essentially ignored by resilient financial markets.
Investments in the information technology sector contributed most to absolute and relative returns. The fund took advantage of the rally in the information technology sector, helped by investments in Tencent and Alibaba Group. Accelerated revenue growth and strong Chinese consumption promoted an increase in both companies’ stock prices, respectively. Investments in the financials sector were also among the top contributors to the fund’s returns. HDFC Bank surged after the company reported healthy second-quarter profits as the bank continued to gain market share from state-owned banks. Investments in the health care sector hindered the fund’s returns the most on a relative basis. Teva Pharmaceutical was among the top detractors to relative returns, as the company’s share price declined due to worse-than-expected results for the second quarter.
The fund’s portfolio managers continue to monitor key indicators in advanced countries — from wage growth and inflation dynamics to the impact of technology and demographics on productivity — as they seek the flexibility to pivot to areas of opportunity. That is why we take a multilayered approach to research, and invest in different geographies, industries and companies that can control their own destiny through efficiencies or innovative products.
Country diversification | Percent of net assets | |||
Asia/Pacific Basin | ||||
Japan | 14.1 | % | ||
Hong Kong | 10.0 | |||
India | 7.4 | |||
China | 7.3 | |||
South Korea | 7.1 | |||
Australia | 1.6 | |||
Thailand | 1.1 | |||
Philippines | 1.1 | |||
49.7 | ||||
Europe | ||||
United Kingdom | 12.6 | |||
France | 7.3 | |||
Switzerland | 4.5 | |||
Germany | 2.8 | |||
Netherlands | 2.2 | |||
Spain | 1.9 | |||
Italy | 1.6 | |||
Denmark | .9 | |||
Other | 1.4 | |||
35.2 | ||||
The Americas | ||||
Canada | 2.8 | |||
Brazil | 1.6 | |||
United States | .5 | |||
4.9 | ||||
Other regions | ||||
South Africa | 1.0 | |||
Israel | .8 | |||
1.8 | ||||
Short-term securities & other assets less liabilities | 8.4 | |||
Total | 100.0 | % |
Largest equity securities | Percent of net assets | |||
AIA Group | 3.50 | % | ||
Samsung Electronics | 3.12 | |||
Airbus Group | 2.98 | |||
HDFC Bank | 2.69 | |||
Tencent | 2.46 | |||
Alibaba Group | 2.41 | |||
Royal Dutch Shell | 1.92 | |||
Novartis | 1.70 | |||
Galaxy Entertainment Group | 1.37 | |||
Prudential | 1.36 |
10 | American Funds Insurance Series |
International Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2017
1 year | 5 years | 10 years | Lifetime (since May 1, 1990) | Expense ratio | ||||||||||||||||
Class 1 | 32.46 | % | 9.38 | % | 3.63 | % | 8.55 | % | .54 | % | ||||||||||
Class 1A | 32.15 | 9.11 | 3.37 | 8.28 | .79 | 2 | ||||||||||||||
Class 2 | 32.14 | 9.11 | 3.37 | 8.28 | .79 | |||||||||||||||
Class 3 | 32.23 | 9.18 | 3.44 | 8.36 | .72 | |||||||||||||||
Class 4 | 31.89 | 8.88 | 3.13 | 8.02 | 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, 2018 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: MSCI. The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
2 | Based on estimated amounts for the current fiscal year. |
Where the fund’s assets were invested as of December 31, 2017 | 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 gained 29.44% for the 12 months ended December 31, 2017. Its benchmark indexes are the MSCI ACWI (All Country World Index),1 a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, consisting of more than 40 developed and emerging market country indexes, and the MSCI Emerging Markets Index,1 a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global emerging markets, consisting of more than 20 emerging market country indexes. They rose 23.97% and 37.28%, respectively.
Global stocks rallied, led by strong corporate earnings growth and accommodative monetary policy amid a backdrop of macroeconomic stability across most regions. A broad-based recovery and ultra-low interest rates across Europe, particularly in countries that have engaged in fiscal reform over the past few years, facilitated the continent’s growth trajectory while helping combat deflationary pressures. Political fighting in the U.S. and elsewhere was essentially ignored by resilient financial markets. Numerous indexes achieved or neared multiyear highs during the year, led in part by information technology stocks.
Select holdings in the financials and information technology sectors were beneficial to the fund. HDFC Bank surged after the company reported healthy second-quarter profits as the bank continued to gain market share from state-owned banks, while AAC Technologies Holdings jumped to a record high on strong third-quarter earnings. Among detractors, technology company Murata Manufacturing hindered relative returns, hurt by high costs of mass production for a key iPhone component.
While the broad stock market has rallied amid a global economic recovery, new populist policies and tax reform, how it responds to the U.S. presidential administration on matters including trade and spending is worth monitoring. As the fund invests in many different geographies, the fund’s managers continue to carefully monitor the portfolio while searching for undervalued companies with solid foundations around the world.
Country diversification | Percent of net assets | |||
Asia/Pacific Basin | ||||
India | 13.2 | % | ||
China | 11.9 | |||
Japan | 6.8 | |||
Taiwan | 5.9 | |||
Australia | 1.7 | |||
South Korea | 1.7 | |||
Hong Kong | 1.4 | |||
Thailand | 1.2 | |||
Other | .7 | |||
44.5 | ||||
The Americas | ||||
United States | 15.0 | |||
Brazil | 6.7 | |||
Argentina | 3.8 | |||
Mexico | 2.7 | |||
Canada | 1.0 | |||
Other | .6 | |||
29.8 | ||||
Europe | ||||
United Kingdom | 8.1 | |||
France | 3.6 | |||
Russian Federation | 3.4 | |||
Switzerland | 1.8 | |||
Other | 2.3 | |||
19.2 | ||||
Other regions | ||||
South Africa | 1.5 | |||
Other | .6 | |||
2.1 | ||||
Short-term securities & other assets less liabilities | 4.4 | |||
Total | 100.0 | % |
Largest equity securities | Percent of net assets | |||
Reliance Industries | 5.40 | % | ||
TSMC | 2.94 | |||
British American Tobacco | 2.85 | |||
United Microelectronics | 2.79 | |||
Alphabet | 2.69 | |||
HDFC Bank | 2.24 | |||
Murata Manufacturing | 2.21 | |||
Baidu | 2.21 | |||
Grupo Financiero Galicia | 2.09 | |||
Foshan Haitian Flavouring and Food | 1.77 |
12 | American Funds Insurance Series |
New World Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2017
1 year | 5 years | 10 years | Lifetime (since June 17, 1999) | Expense ratio | ||||||||||||||||
Class 1 | 29.73 | % | 6.52 | % | 3.65 | % | 8.80 | % | .76 | % | ||||||||||
Class 1A | 29.42 | 6.25 | 3.39 | 8.53 | 1.01 | 2 | ||||||||||||||
Class 2 | 29.44 | 6.25 | 3.39 | 8.53 | 1.01 | |||||||||||||||
Class 4 | 29.06 | 6.00 | 3.14 | 8.26 | 1.26 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2018 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: MSCI. Results for MSCI indexes reflect dividends net of withholding taxes and reinvestment of distributions. |
2 | Based on estimated amounts for the current fiscal year. |
Where the fund’s assets were invested as of December 31, 2017 | 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 gained 17.04% for the 12 months ended December 31, 2017, trailing its benchmark, the Standard & Poor’s 500 Composite Index (a market capitalization-weighted index based on the results of approximately 500 widely held common stocks),1 which rose 21.83%.
U.S. equity markets continued to stage an impressive rally as consumer optimism, healthy corporate earnings and an improving job market provided a boost to the economy. Strong consumer demand and rising optimism pushed the information technology sector higher. Outside the U.S., European stocks rose, driven by a powerful combination of central bank stimulus and accelerating corporate earnings. Emerging markets also advanced, led by rising prices for most raw materials and robust profits from leading technology companies.
Investments in information technology and health care companies boosted the fund’s returns. Among the fund’s top contributors to returns (posting double-digit gains) was health care company AbbVie, which reported third-quarter earnings above analyst estimates due in part to sales of its flagship drug, Humira. Intel’s stock price also rose as the company reported better-than-expected third-quarter earnings and revenue from its data center.
Investments in the energy sector hindered returns, despite OPEC’s production cuts aimed at bolstering oil prices. Energy exploration and production company Halliburton hindered results. Telecommunication services company CenturyLink was also a drag, as the company missed third-quarter earnings and revenue estimates.
Given the fund’s focus on investing in dividend-paying stocks, a lack of investments in certain growth stocks in the information technology sector, such as Facebook, hampered relative returns. On a country basis, lower-than-index investments in U.S. domiciled companies also detracted from the fund’s relative returns.
The fund’s portfolio managers are keeping a close watch on the U.S. economy. Portfolio managers continue to favor well-managed, high-quality companies that are capable of generating positive cash flow in myriad economic environments, and remain optimistic that our global research will help us identify attractive long-term investment opportunities.
Largest equity securities | Percent of net assets | |||
AbbVie | 6.97 | % | ||
Verizon Communications | 5.42 | |||
JPMorgan Chase | 4.43 | |||
Amgen | 4.39 | |||
Intel | 4.15 | |||
Wells Fargo | 3.89 | |||
Prudential Financial | 3.25 | |||
Texas Instruments | 2.93 | |||
CSX | 2.71 | |||
Canadian Natural Resources | 2.39 |
14 | American Funds Insurance Series |
Blue Chip Income and Growth Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2017
1 year | 5 years | 10 years | Lifetime (since July 5, 2001) | Expense ratio | ||||||||||||||||
Class 1 | 17.30 | % | 15.93 | % | 8.13 | % | 6.85 | % | .41 | % | ||||||||||
Class 1A | 17.08 | 15.66 | 7.87 | 6.59 | .66 | 2 | ||||||||||||||
Class 2 | 17.04 | 15.65 | 7.86 | 6.58 | .66 | |||||||||||||||
Class 4 | 16.70 | 15.48 | 7.65 | 6.35 | .91 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008, and from February 1, 2014, through January 31, 2015. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2018 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: S&P Dow Jones Indices LLC. |
2 | Based on estimated amounts for the current fiscal year. |
Where the fund’s assets were invested as of December 31, 2017 | 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 26.06% for the 12 months ended December 31, 2017, compared with a 23.97% increase in its benchmark, the MSCI ACWI (All Country World Index),1 a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, consisting of more than 40 developed and emerging market country indexes.
Global stocks advanced on the back of strong corporate earnings, accommodative monetary policy and macroeconomic stability across most regions. Numerous indexes achieved or neared multiyear highs in 2017. European and emerging market equities outpaced U.S. stock markets, as investors set aside concerns about politics and focused on the global economic recovery.
Information technology was one of several sectors that contributed to the fund’s absolute returns. The fund’s holdings in Nintendo and Broadcom were among the top contributors to absolute results. Nintendo shares soared as the company’s second-quarter revenues and earnings beat market expectations, led by strong sales of the Nintendo Switch console. Semiconductor manufacturer Broadcom also rose as the company’s fiscal fourth-quarter earnings topped analyst estimates. On the downside, stock selection in materials and financials hindered relative returns.
On a country basis, holdings in the U.S., Japan and India contributed to relative returns, and holdings in Canada, the U.K. and Italy were a drag on relative returns.
The fund’s cash position enables portfolio managers to better navigate a challenging environment by focusing on opportunities when stock prices are favorable. The fund’s portfolio managers are also optimistic they can uncover promising long-term investment opportunities and companies with sustainable dividends and income.
Country diversification | Percent of net assets | |||
The Americas | ||||
United States | 34.4 | % | ||
Brazil | 3.0 | |||
Mexico | 2.9 | |||
Other | .8 | |||
41.1 | ||||
Europe | ||||
United Kingdom | 12.2 | |||
France | 5.8 | |||
Switzerland | 4.4 | |||
Germany | 3.5 | |||
Denmark | 1.6 | |||
Ireland | 1.2 | |||
Netherlands | 1.0 | |||
Other | 1.1 | |||
30.8 | ||||
Asia/Pacific Basin | ||||
Japan | 7.0 | |||
Taiwan | 6.0 | |||
India | 4.3 | |||
China | 2.4 | |||
Hong Kong | 1.2 | |||
Australia | 1.1 | |||
Other | 1.8 | |||
23.8 | ||||
Other regions | ||||
Israel | .3 | |||
Short-term securities & other assets less liabilities | 4.0 | |||
Total | 100.0 | % |
Largest equity securities | Percent of net assets | |||
Nintendo | 4.31 | % | ||
British American Tobacco | 4.13 | |||
TSMC | 3.37 | |||
Microsoft | 3.28 | |||
Airbus Group | 2.38 | |||
Nestlé | 2.28 | |||
UnitedHealth Group | 2.25 | |||
Reliance Industries | 2.00 | |||
Broadcom | 1.67 | |||
United Microelectronics | 1.55 |
16 | American Funds Insurance Series |
Global Growth and Income Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2017
1 year | 5 years | 10 years | Lifetime (since May 1, 2006) | Expense ratio | ||||||||||||||||
Class 1 | 26.40 | % | 11.85 | % | 6.17 | % | 7.29 | % | .63 | % | ||||||||||
Class 1A | 26.35 | 11.61 | 5.93 | 7.04 | .88 | 2 | ||||||||||||||
Class 2 | 26.06 | 11.56 | 5.91 | 7.02 | .88 | |||||||||||||||
Class 4 | 25.83 | 11.36 | 5.67 | 6.78 | 1.13 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from May 1, 2006, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2018 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source MSCI. The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
2 | Based on estimated amounts for the current fiscal year. |
Where the fund’s assets were invested as of December 31, 2017 | 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 22.38% for the 12 months ended December 31, 2017. The Standard & Poor’s 500 Composite Index,1 a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, rose 21.83%.
U.S. stocks staged an impressive rally as the economic picture remained bright. GDP grew an annualized 3.2% in the third quarter. Repeating a common theme, information technology companies advanced, supported by better-than-expected corporate earnings in the sector. Outside the U.S., European stocks rose, driven by a powerful combination of central bank stimulus and accelerating corporate earnings. Emerging markets also advanced, led by rising prices for most commodities and robust profits from leading technology companies.
Fund investments in the consumer discretionary and health care sectors contributed the most to relative returns. Among consumer discretionary companies, Amazon reported strong third-quarter earnings and acquired Whole Foods, which helped strengthen its retail platform and contributed to an increase in its stock price. Health care company AbbVie reported third-quarter earnings above analyst estimates due in part to sales of its flagship drug, Humira. Despite OPEC’s production cuts aimed at propping up oil prices, investments in the energy sector hindered absolute results. Energy exploration and production company Noble Energy and oil-field services company Schlumberger detracted from returns.
As equity markets continue to advance, valuations for many companies are up — calling into question the sustainability of this remarkable bull market. The fund’s portfolio managers exercise caution and continue to conduct global research and fundamental analysis to identify companies that are reasonably valued for their growth prospects, while maintaining a long-term perspective on investing.
Largest equity securities | Percent of net assets | |||
Amazon | 3.98 | % | ||
AbbVie | 2.64 | |||
Microsoft | 2.48 | |||
Alphabet | 2.34 | |||
Netflix | 2.21 | |||
Verizon Communications | 1.88 | |||
JPMorgan Chase | 1.62 | |||
Texas Instruments | 1.61 | |||
Amgen | 1.56 | |||
Broadcom | 1.44 |
18 | American Funds Insurance Series |
Growth-Income Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2017
1 year | 5 years | 10 years | Lifetime (since February 8, 1984) | Expense ratio | ||||||||||||||||
Class 1 | 22.68 | % | 15.67 | % | 8.19 | % | 11.45 | % | .28 | % | ||||||||||
Class 1A | 22.47 | 15.40 | 7.93 | 11.18 | .53 | 2 | ||||||||||||||
Class 2 | 22.38 | 15.38 | 7.92 | 11.17 | .53 | |||||||||||||||
Class 3 | 22.47 | 15.46 | 8.00 | 11.25 | .46 | |||||||||||||||
Class 4 | 22.08 | 15.12 | 7.67 | 10.90 | .78 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2018 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: S&P Dow Jones Indices LLC. |
2 | Based on estimated amounts for the current fiscal year. |
Where the fund’s assets were invested as of December 31, 2017 | 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 rose 25.03% for the 12 months ended December 31, 2017, slightly trailing its benchmark, the MSCI ACWI (All Country World Index) ex USA,1 a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, consisting of more than 40 developed and emerging market country indexes excluding the U.S., which rose 27.19%
U.S. equity markets continued to stage an impressive rally as consumer optimism, healthy corporate earnings and an improving job market provided a boost to the economy. European stocks also rose, driven by a powerful combination of central bank stimulus and accelerating corporate earnings. Rising prices for most commodities and robust profits from leading technology companies lifted emerging markets.
The best contributors to the fund’s relative returns were the financials and industrials sectors, due in part to good stock selection. Among financials, HDFC Bank surged after the company reported healthy second-quarter profits as the bank continued to gain market share from state-owned banks.
On the downside, investment selection in the health care sector hindered relative returns. Teva Pharmaceutical was among the top detractors, as the company’s share price declined due to worse-than-expected results for the second quarter.
The fund’s portfolio managers continue to monitor global geopolitics that may derail economic growth, but are optimistic that global research combined with the fund’s flexible mandate will help us identify attractive investment opportunit
Country diversification | Percent of net assets | |||
Europe | ||||
United Kingdom | 18.9 | % | ||
France | 7.8 | |||
Switzerland | 4.9 | |||
Spain | 3.8 | |||
Italy | 2.5 | |||
Portugal | 2.2 | |||
Germany | 2.1 | |||
Russian Federation | 2.0 | |||
Netherlands | 2.0 | |||
Denmark | 1.9 | |||
Norway | 1.4 | |||
Sweden | 1.0 | |||
Other | 1.5 | |||
52.0 | ||||
Asia/Pacific Basin | ||||
Hong Kong | 8.2 | |||
Japan | 8.0 | |||
South Korea | 5.4 | |||
China | 4.5 | |||
India | 2.8 | |||
Taiwan | 2.0 | |||
Thailand | 1.6 | |||
Other | 1.1 | |||
33.6 | ||||
The Americas | ||||
Brazil | 2.2 | |||
United States | 1.9 | |||
Other | 1.6 | |||
5.7 | ||||
Other regions | ||||
Israel | 1.0 | |||
Other | 1.2 | |||
2.2 | ||||
Short-term securities & other assets less liabilities | 6.5 | |||
Total | 100.0 | % |
Largest equity securities | Percent of net assets | |||
Royal Dutch Shell | 4.08 | % | ||
HDFC Bank | 2.49 | |||
Samsung Electronics | 2.44 | |||
Shanghai International Airport | 2.43 | |||
CK Asset Holdings | 2.29 | |||
British American Tobacco | 2.02 | |||
TSMC | 2.02 | |||
Banco Santander | 2.01 | |||
Sun Hung Kai Properties | 2.01 | |||
Novartis | 1.97 |
20 | American Funds Insurance Series |
International Growth and Income Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2017
1 year | 5 years | Lifetime (since November 18, 2008) | Expense ratio | |||||||||||||
Class 1 | 25.31 | % | 6.93 | % | 10.37 | % | .65 | % | ||||||||
Class 1A | 25.14 | 6.69 | 10.11 | .90 | 2 | |||||||||||
Class 2 | 25.03 | 6.67 | 10.09 | .90 | ||||||||||||
Class 4 | 24.72 | 6.47 | 9.86 | 1.15 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from November 18, 2008, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2018 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: MSCI. The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
2 | Based on estimated amounts for the current fiscal year. |
Where the fund’s assets were invested as of December 31, 2017 | Percent of net assets |
American Funds Insurance Series | 21 |
Capital Income Builder®
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information 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.
Capital Income Builder, a mix of stocks and bonds, rose 13.04% for the 12 months ended December 31, 2017. During the same period, the MSCI ACWI (All Country World Index),1 a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, consisting of more than 40 developed and emerging market country indexes, rose 23.97%. The Bloomberg Barclays U.S. Aggregate Index,2 which measures investment-grade U.S. bonds (rated BBB/Baa and above), gained 3.54%. The index blend of 70%/30% MSCI ACWI/Bloomberg Barclays U.S. Aggregate Index3 rose 17.50%. The Lipper Global Equity Income Funds Average,4 a measure of similar funds, increased 17.29%.
U.S. equity markets continued to stage an impressive rally as consumer optimism, healthy corporate earnings and an improving jobs market provided a boost to the economy. European stocks also rose, driven by a powerful combination of central bank stimulus and accelerating corporate earnings. Emerging markets advanced, led by rising prices for most commodities and robust profits from leading technology companies.
The strongest contributors to the equity portfolio’s relative returns were the industrials and real estate sectors due to good stock selection. Boeing boosted returns and registered double-digit gains as the company beat third-quarter earnings.
On the downside, the energy sector detracted from the fund’s returns. Contract drilling services provider Helmerich & Payne hindered returns as the company reported a loss for the fourth quarter. While the fixed income portfolio detracted from relative returns, investments in bonds continue to provide the opportunity for downside protection.
Portfolio managers expect the current administration to reduce regulation, which should boost companies’ return on equity and result in higher dividends. Greater demand and signs of ebbing U.S. product are expected to help energy prices, which in turn will improve dividend prospects for holdings in the energy sector. While portfolio managers do not expect the new administration to affect legislation that will impact drug pricing, drug prices are a potential headline risk for health care stocks. The portfolio managers are optimistic that our global research will help us identify attractive long-term investment opportunities.
Country diversification | Percent of net assets | |||
The Americas | ||||
United States | 56.0 | % | ||
Canada | 2.7 | |||
58.7 | ||||
Europe | ||||
United Kingdom | 15.1 | |||
France | 3.6 | |||
Switzerland | 2.9 | |||
Netherlands | 1.7 | |||
Italy | 1.3 | |||
Sweden | 1.1 | |||
Other | 2.4 | |||
28.1 | ||||
Asia/Pacific Basin | ||||
Hong Kong | 3.4 | |||
Taiwan | 2.4 | |||
Other | 2.4 | |||
8.2 | ||||
Other regions | ||||
Other | .1 | |||
Short-term securities & other assets less liabilities | 4.9 | |||
Total | 100.0 | % |
22 | American Funds Insurance Series |
Capital Income Builder
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2017
1 year | Lifetime (since May 1, 2014) | Expense ratio | ||||||||||
Class 1 | 13.29 | % | 4.30 | % | .54 | % | ||||||
Class 1A | 13.02 | 4.04 | .79 | 5 | ||||||||
Class 2 | 13.04 | 4.21 | .79 | |||||||||
Class 4 | 12.65 | 3.78 | 1.04 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Expense ratios are as of the fund’s prospectus dated May 1, 2018 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
¹ | Source: MSCI. The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
2 | Source: Bloomberg Index Services Ltd. |
3 | Data sources: MSCI and Bloomberg Index Services Ltd. The 70%/30% MSCI ACWI/Bloomberg Barclays U.S. Aggregate Index blends the MSCI ACWI (All Country World Index) with the Bloomberg Barclays U.S. Aggregate Index by weighting their total returns at 70% and 30%, respectively. Its result assumes the blend is rebalanced monthly. |
4 | Source: Thomson Reuters Lipper. Lipper averages reflect the current composition of all eligible mutual funds (all share classes) within a given category. Lipper categories are dynamic and averages may have few funds, especially over longer periods. To see the number of funds included in the Lipper category for each fund’s lifetime, please see the Quarterly Statistical Update, available on our website. |
5 | Based on estimated amounts for the current fiscal year. |
Where the fund’s assets were invested as of December 31, 2017 | Percent of net assets |
American Funds Insurance Series | 23 |
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, rose 16.23% for the 12 months ended December 31, 2017. In comparison, the Standard & Poor’s 500 Composite Index,1 a market capitalization-weighted index based on the results of approximately 500 widely held common stocks and the fund’s benchmark for equity holdings, gained 21.83% over the same period. The Bloomberg Barclays U.S. Aggregate Index,2 which measures investment-grade U.S. bonds (rated BBB/Baa and above), rose 3.54%. A blend of the two indexes, the 60%/40% S&P 500/Bloomberg Barclays U.S. Aggregate Index,3 advanced 14.21%.
U.S. equity markets continued to stage an impressive rally as consumer optimism, healthy corporate earnings and an improving jobs market provided a boost to the economy. Repeating a common theme, information technology companies advanced, supported by better than expected corporate earnings in the sector. Bonds also advanced, led by high-yield corporates.
Investments in the industrials and information technology sectors contributed the most to the fund’s relative returns. Boeing was additive to the fund’s returns as the company’s strong earnings beat third-quarter analyst estimates. TSMC, a chip contract manufacturer for Apple, was also additive, as the company beat third-quarter sales and earnings estimates.
Investments in the energy sector detracted from the fund’s absolute and relative returns. Within the sector, energy exploration and production company Noble Energy, as well as oil and natural gas services company Weatherford International, detracted from the fund’s returns as both companies reported third-quarter losses.
The fund’s fixed income holdings advanced due to an overweight position in high-yield corporate bonds. The fund’s exposure to short interest duration, or the fund’s relatively low sensitivity to interest rates compared with the benchmark, also helped.
The fund’s portfolio managers continue to evaluate the economic and market sector implications of the Trump administration’s policy decisions regarding health care, infrastructure, fiscal policy, taxes and trade. The fund’s cash position allows portfolio managers to remain flexible and better navigate uncertainty by focusing on opportunities when stock prices are favorable.
Largest equity securities | Percent of net assets | |||
Microsoft | 3.51 | % | ||
TSMC | 2.58 | |||
UnitedHealth Group | 2.18 | |||
ASML | 1.69 | |||
DowDuPont | 1.63 | |||
Lockheed Martin | 1.58 | |||
Johnson & Johnson | 1.55 | |||
Comcast | 1.46 | |||
Boeing | 1.42 | |||
VeriSign | 1.40 |
24 | American Funds Insurance Series |
Asset Allocation Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2017
1 year | 5 years | 10 years | Lifetime (since August 1,1989) | Expense ratio | ||||||||||||||||
Class 1 | 16.51 | % | 11.23 | % | 7.15 | % | 8.69 | % | .29 | % | ||||||||||
Class 1A | 16.31 | 10.97 | 6.89 | 8.42 | .54 | 4 | ||||||||||||||
Class 2 | 16.23 | 10.95 | 6.88 | 8.42 | .54 | |||||||||||||||
Class 3 | 16.29 | 11.02 | 6.96 | 8.50 | .47 | |||||||||||||||
Class 4 | 15.91 | 10.76 | 6.66 | 8.17 | .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, 2018 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: S&P Dow Jones Indices LLC. |
2 | Source: Bloomberg Index Services Ltd. |
3 | Data sources: S&P Dow Jones Indices LLC and Bloomberg Index Services Ltd. The 60%/40% S&P 500/Bloomberg Barclays U.S. Aggregate Index blends the S&P 500 with the Bloomberg Barclays U.S. Aggregate Index by weighting their total returns at 60% and 40%, respectively. Its result assumes the blend is rebalanced monthly. |
4 | Based on estimated amounts for the current fiscal year. |
Where the fund’s assets were invested as of December 31, 2017 | Percent of net assets |
American Funds Insurance Series | 25 |
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 19.57% for the 12 months ended December 31, 2017. The MSCI ACWI (All Country World Index),1 a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, consisting of more than 40 developed and emerging market country indexes, gained 23.97%, while the Bloomberg Barclays Global Aggregate Index,2 a measure of investment-grade bonds (rated BBB/Baa and above), increased 7.39%. The 60%/40% MSCI ACWI/ Bloomberg Barclays Global Aggregate Index3 rose 17.09%.
U.S. equity markets continued to stage an impressive rally as consumer optimism, healthy corporate earnings and an improving job market provided a boost to the economy. The U.S. has been the pacesetter for growth, and it looks likely that it will continue in that role. As such, the Federal Reserve continued to raise rates and additional hikes are anticipated if the economy continues its positive trajectory.
Overseas, emerging markets advanced led by rising prices for most commodities and robust profits from leading technology companies. In Europe, stocks also rose, driven by a powerful combination of central bank stimulus and accelerating corporate earnings.
Investments in the information technology sector boosted the fund’s returns, with Nintendo among the top contributors. Nintendo soared as the company’s second-quarter revenues and earnings topped estimates, led by strong sales of the Nintendo Switch console. Investments in the telecommunications services sector hindered returns, led by Inmarsat. The company indicated market conditions remain challenging and provided a narrower revenue guidance for the year. Holdings in the fixed income portfolio were additive to results.
The fund’s portfolio managers exercise caution and continue to monitor geopolitics that may derail the global economic recovery. Portfolio managers continue to stay the course of focusing on global research and bottom-up analysis.
Largest sectors in common stock holdings | Percent of net assets | |||
Information technology | 11.2 | % | ||
Industrials | 8.3 | |||
Financials | 8.0 | |||
Consumer staples | 7.2 | |||
Health care | 5.0 | |||
Largest fixed income holdings (by issuer) | ||||
U.S. Treasury | 9.6 | |||
Japanese Government | 2.6 | |||
Polish Government | 1.1 | |||
Mexican Government | 1.0 | |||
Italian Government | .8 |
Currency diversification | Percent of net assets | |||||||||||||||||||
Forward | Short–term | |||||||||||||||||||
Equity | Bonds & | currency | securities & other | |||||||||||||||||
securities | notes | contracts | assets less liabilities | Total | ||||||||||||||||
U.S. dollars | 28.9 | % | 17.9 | % | .8 | % | 6.8 | % | 54.4 | % | ||||||||||
Euros | 9.0 | 3.8 | .5 | — | 13.3 | |||||||||||||||
Japanese yen | 4.7 | 2.7 | 1.3 | — | 8.7 | |||||||||||||||
British pounds | 6.7 | .7 | (.7 | ) | — | 6.7 | ||||||||||||||
Swedish krona | 2.0 | — | .3 | — | 2.3 | |||||||||||||||
Swiss francs | 2.1 | — | .1 | — | 2.2 | |||||||||||||||
Hong Kong dollars | 2.1 | — | — | — | 2.1 | |||||||||||||||
New Taiwan dollars | 1.4 | — | — | — | 1.4 | |||||||||||||||
Other currencies | 4.6 | 6.6 | (2.3 | ) | — | 8.9 | ||||||||||||||
100.0 | % |
Largest equity securities | Percent of net assets | |||
British American Tobacco | 2.42 | % | ||
Nintendo | 2.04 | |||
Microsoft | 1.72 | |||
ASML | 1.67 | |||
HSBC | 1.57 | |||
Humana | 1.46 | |||
TSMC | 1.44 | |||
Boeing | 1.40 | |||
JPMorgan Chase | 1.29 | |||
DowDuPont | 1.27 |
26 | American Funds Insurance Series |
Global Balanced Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2017
1 year | 5 years | Lifetime (since May 2, 2011) | Expense ratio | |||||||||||||
Class 1 | 19.91 | % | 7.42 | % | 6.43 | % | .71 | % | ||||||||
Class 1A | 19.78 | 7.18 | 6.19 | .96 | 4 | |||||||||||
Class 2 | 19.57 | 7.13 | 6.16 | .96 | ||||||||||||
Class 4 | 19.38 | 7.14 | 6.08 | 1.21 |
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, 2018 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: MSCI. The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
2 | Source: Bloomberg Index Services Ltd. |
3 | Data sources: MSCI and Bloomberg Index Services Ltd. The 60%/40% MSCI ACWI/Bloomberg Barclays Global Aggregate Index blends the MSCI ACWI (All Country World Index) with the Bloomberg Barclays Global Aggregate Index by weighting their cumulative total returns at 60% and 40%, respectively. Its result assumes the blend is rebalanced monthly. |
4 | Based on estimated amounts for the current fiscal year. |
Where the fund’s assets were invested as of December 31, 2017 | Percent of net assets |
American Funds Insurance Series | 27 |
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 gained 3.67% for the 12 months ended December 31, 2017. In comparison, the fund’s benchmark, the Bloomberg Barclays U.S. Aggregate Index,1 which measures investment-grade U.S. bonds (rated BBB/Baa and above), rose 3.54%.
Bond returns were strong across most sectors. The U.S. Treasury yield curve flattened, as shorter term rates rose and longer term rates fell. This could be attributed in part to the Federal Reserve hiking short-term interest rates by 75 basis points over the course of the year as well as strong demand for longer dated Treasuries. Credit flourished as corporate bond spreads also tightened 30 basis points to 93 basis points, nearing the lowest levels of the recovery. High-yield bonds returned 7.50% and investment-grade bonds rose 6.42%.
Duration management throughout the year contributed significantly to the fund’s relative returns. The fund also benefited from sector allocation, with U.S. Treasuries contributing most to the fund’s relative returns.
On the whole, the U.S. economy appears to be in good shape and is expected to grow at a moderate pace. As U.S. interest rates increase, investors have the opportunity of reinvesting at higher yields. The fund’s portfolio managers expect continued demand for relatively safe, income-producing securities.
Largest holdings (by issuer) | Percent of net assets | |||
U.S. Treasury | 27.2 | % | ||
Fannie Mae | 15.5 | |||
Freddie Mac | 6.7 | |||
Ginnie Mae | 3.4 | |||
Mexican Government | 1.8 | |||
Teva Pharmaceutical | 1.6 | |||
Portuguese Government | 1.6 | |||
State of Illinois | 1.5 | |||
Japanese Government | 1.5 | |||
AT&T | 1.1 |
28 | American Funds Insurance Series |
Bond Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2017
1 year | 5 years | 10 years | Lifetime (since January 2, 1996) | Expense ratio | ||||||||||||||||
Class 1 | 3.88 | % | 2.22 | % | 3.21 | % | 4.74 | % | .38 | % | ||||||||||
Class 1A | 3.64 | 1.97 | 2.96 | 4.48 | .63 | 2 | ||||||||||||||
Class 2 | 3.67 | 1.97 | 2.96 | 4.48 | .63 | |||||||||||||||
Class 4 | 3.29 | 1.73 | 2.71 | 4.23 | .88 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2018 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: Bloomberg Index Services Ltd. |
2 | Based on estimated amounts for the current fiscal year. |
Where the fund’s assets were invested as of December 31, 2017 | Percent of net assets |
American Funds Insurance Series | 29 |
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 rose 6.86% for the 12 months ended December 31, 2017, while the Bloomberg Barclays Global Aggregate Index,1 which measures global investment-grade bonds (rated BBB/Baa and above), rose 7.39%.
Bonds generated solid returns across the board, including developed and emerging markets debt. The U.S. Federal Reserve raised interest rates three times during the year, boosting short-term rates. Long-term rates generally declined amid strong investor demand and massive bond-buying stimulus programs in Europe and Japan. Outside the U.S., the European Central Bank and the Bank of Japan left interest rates unchanged, despite signs of improving economic growth and higher inflation. The euro, the yen and most other currencies appreciated relative to the U.S. dollar.
Low exposure to euro-zone denominated debt combined with above-benchmark investments in Mexican and Polish debt contributed notably to relative returns. On the downside, currency exposure hampered results with the euro hindering relative returns the most.
The fund’s portfolio managers maintain a cautious approach to investing in global bond markets and believe that our global research can help identify attractive long-term investments around the world. Having the flexibility to diversify and adjust exposure by country, sector and currency continues to serve as a hallmark of the fund’s approach to global investing.
Percent of net assets | ||||||||
Currency weighting (after hedging) by country | ||||||||
United States2 | 45.7 | % | ||||||
Japan | 17.3 | |||||||
Euro zone3 | 16.4 | |||||||
Poland | 3.5 | |||||||
Mexico | 3.4 | |||||||
Malaysia | 2.3 | |||||||
Norway | 2.0 | |||||||
India | 1.3 | |||||||
United Kingdom | 1.2 | |||||||
Thailand | 1.2 | |||||||
Other | 5.7 | |||||||
Total | 100.0 | % | ||||||
Non-U.S. government bonds by country | ||||||||
Euro zone3: | ||||||||
Germany | 3.4 | % | ||||||
Italy | 3.4 | |||||||
Portugal | 2.3 | |||||||
Other | 3.1 | 12.2 | % | |||||
Japan | 8.1 | |||||||
Poland | 4.1 | |||||||
Mexico | 3.9 | |||||||
India | 2.5 | |||||||
Malaysia | 2.3 | |||||||
Norway | 1.6 | |||||||
Australia | 1.4 | |||||||
United Kingdom | 1.2 | |||||||
Thailand | 1.2 | |||||||
Other | 8.0 | |||||||
Total | 46.5 | % |
Largest holdings (by issuer) | Percent of net assets | |||
U.S. Treasury | 18.9 | % | ||
Japanese Government | 8.1 | |||
Polish Government | 4.1 | |||
Mexican Government | 3.9 | |||
Italian Government | 3.4 | |||
German Government | 3.2 | |||
Indian Government | 2.4 | |||
Portuguese Government | 2.3 | |||
Malaysian Government | 2.3 | |||
Norwegian Government | 1.6 |
30 | American Funds Insurance Series |
Global Bond Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2017
1 year | 5 years | 10 years | Lifetime (since October 4, 2006) | Expense ratio | ||||||||||||||||
Class 1 | 7.11 | % | 1.05 | % | 3.52 | % | 4.19 | % | .56 | % | ||||||||||
Class 1A | 7.00 | .82 | 3.28 | 3.95 | .81 | 4 | ||||||||||||||
Class 25 | 6.86 | .79 | 3.27 | 3.93 | .81 | |||||||||||||||
Class 4 | 6.63 | .63 | 3.05 | 3.71 | 1.06 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from October 4, 2006, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2018 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: Bloomberg Index Services Ltd. |
2 | Includes U.S. dollar-denominated debt of other countries, totaling 14.4%. |
3 | Countries using the euro as a common currency; those represented in the fund’s portfolio are Belgium, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Portugal and Spain. |
4 | Based on estimated amounts for the current fiscal year. |
5 | Global Bond Fund Class 2 shares were first sold on November 6, 2006. Results prior to that date are hypothetical based on Class 1 share results adjusted for estimated additional annual expenses of 0.25%. |
Where the fund’s assets were invested as of December 31, 2017 | Percent of net assets |
American Funds Insurance Series | 31 |
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 6.89% for the 12 months ended December 31, 2017. In comparison, the fund’s benchmark, the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index,1 which measures non–investment-grade bonds and limits the exposure of an issuer to 2%, rose 7.50%.
Renewed investor expectations of more rapid economic growth led to higher short-term interest rates as the Federal Reserve increased the benchmark federal funds rate by 75 basis points over the course of the year. Bond returns were strong across most credit sectors as corporate bond spreads declined to nearly the lowest levels of the recovery.
Sector allocation and debt exposure across a mix of credit ratings were beneficial to the fund’s relative returns. The fund’s allocation to non–U.S. high-yield debt was also additive on a relative basis. Among individual issuers, Valeant Pharmaceuticals International and First Quantum Minerals boosted results, while Argos Merger Sub Inc detracted from returns. Although exposure to U.S. Treasuries and agency debt detracted from relative returns, it is important to note these investments provide an important source of liquidity and are generally not expected to outperform the market.
The fund’s portfolio managers continue to believe current fundamentals support a constructive high-yield market environment. While we are monitoring the Federal Reserve’s tightening monetary policy, maturities in the high-yield market have tended to be relatively shorter than those in some other markets, which should help dampen the effect of rising rates.
Largest holdings (by issuer) | Percent of net assets | |||
Valeant Pharmaceuticals International | 2.8 | % | ||
First Quantum Minerals | 1.8 | |||
Charter Communications | 1.8 | |||
Tenet Healthcare | 1.7 | |||
Chesapeake Energy | 1.6 | |||
Sprint Nextel | 1.6 | |||
Blackstone | 1.6 | |||
AES | 1.5 | |||
Weatherford International | 1.2 | |||
Frontier Communications | 1.2 |
32 | American Funds Insurance Series |
High-Income Bond Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2017
1 year | 5 years | 10 years | Lifetime (since February 8, 1984) | Expense ratio | ||||||||||||||||
Class 1 | 7.25 | % | 4.85 | % | 6.11 | % | 8.88 | % | .49 | % | ||||||||||
Class 1A | 7.05 | 4.60 | 5.85 | 8.61 | .74 | 2 | ||||||||||||||
Class 2 | 6.89 | 4.58 | 5.85 | 8.61 | .74 | |||||||||||||||
Class 3 | 7.02 | 4.67 | 5.93 | 8.69 | .67 | |||||||||||||||
Class 4 | 6.63 | 4.41 | 5.63 | 8.35 | .99 |
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, 2018 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: Bloomberg Index Services Ltd. |
2 | Based on estimated amounts for the current fiscal year. |
Where the fund’s assets were invested as of December 31, 2017 | Percent of net assets |
American Funds Insurance Series | 33 |
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 gained 1.22% for the 12 months ended December 31, 2017, while the Bloomberg Barclays U.S. Mortgage-Backed Securities Index,1 which covers the mortgage-backed pass-through securities of Ginnie Mae, Fannie Mae and Freddie Mac, rose 2.47%.
The Federal Reserve increased the benchmark federal funds overnight lending rate by 75 basis points over the course of the year. Long maturity U.S. Treasury yields modestly declined, pushing their prices higher. The housing market had a relatively strong year as housing starts continued to pick up. Home prices in most major housing markets rose, supported by low inventories and increasing sales.
The fund’s investments in the agency mortgage-backed securities sector and investment grade securities detracted from relative returns. As the yield curve flattened, the fund’s curve positioning also hampered results.
The fund’s portfolio managers seek to identify high-quality mortgage-backed securities based on our bottom-up approach to investing. In the current environment, demand for flight-to-safety assets and the fund’s low correlation to equities should help investors navigate macroeconomic and geopolitical uncertainty and remain well diversified.
Breakdown of mortgage-backed obligations | Percent of net assets | |||||||
30-year pass-throughs: | ||||||||
Freddie Mac | 20.2 | % | ||||||
Ginnie Mae | 13.3 | |||||||
Fannie Mae | 10.7 | 44.2 | % | |||||
Other | 19.3 | |||||||
Total | 63.5 | % |
34 | American Funds Insurance Series |
Mortgage Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2017
1 year | 5 years | Lifetime (since May 2, 2011) | Expense ratio | |||||||||||||
Class 1 | 1.47 | % | 2.01 | % | 2.61 | % | .47 | % | ||||||||
Class 1A | 1.21 | 1.76 | 2.35 | .72 | 2 | |||||||||||
Class 2 | 1.22 | 1.75 | 2.36 | .72 | ||||||||||||
Class 4 | .97 | 1.62 | 2.19 | .97 |
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, 2018 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: Bloomberg Index Services Ltd. |
2 | Based on estimated amounts for the current fiscal year. |
Where the fund’s assets were invested as of December 31, 2017 | Percent of net assets |
American Funds Insurance Series | 35 |
Ultra-Short Bond Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information 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.
Ultra-Short Bond Fund gained 0.46% for the 12 months ended December 31, 2017, while the Bloomberg Barclays Short-Term Government/Corporate Index,1 which consists of government and corporate sector securities with remaining maturity from one to 12 months, gained 0.98%.
The fund’s returns were higher over the course of 2017 than last year. During the same period, yields on three-month Treasury bills were up by more than 80 basis points since the end of last year.
The Federal Reserve raised the benchmark federal funds rate by a quarter percentage point three times this year, reassuring investors of persistent U.S. economic strength. Given these increases in interest rates, the fund’s portfolio managers believe the fund has the potential to provide current income.
36 | American Funds Insurance Series |
Ultra-Short Bond Fund
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2017
1 year | 5 years | 10 years | Lifetime (since February 8, 1984) | Expense ratio | ||||||||||||||||
Class 1 | .66 | % | .01 | % | .15 | % | 3.49 | % | .35 | % | ||||||||||
Class 1A | .67 | –.19 | –.07 | 3.24 | .60 | 2 | ||||||||||||||
Class 2 | .46 | –.23 | –.10 | 3.24 | .60 | |||||||||||||||
Class 3 | .54 | –.18 | –.03 | 3.31 | .53 | |||||||||||||||
Class 4 | .16 | –.36 | –.28 | 3.00 | .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, 2018 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: Bloomberg Index Services Ltd. |
2 | Based on estimated amounts for the current fiscal year. |
Where the fund’s assets were invested as of December 31, 2017 | Percent of net assets | |||
Commercial paper | 82.9 | % | ||
Federal agency discount notes | 17.4 | |||
Other assets less liabilities | (.3 | ) | ||
Total | 100.0 | % |
American Funds Insurance Series | 37 |
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 gained 1.59% for the 12 months ended December 31, 2017, while the Bloomberg Barclays U.S. Government/Mortgage-Backed Securities Index,1 which covers obligations issued by the U.S. Treasury and U.S. government agencies, rose 2.37%.
Bond returns were strong across most sectors, including U.S. government debt. The U.S. Treasury yield curve flattened, as shorter term rates rose and longer term rates fell. This occurred in part through the Federal Reserve hiking short-term interest rates by 75 basis points over the course of the year and strong demand persisting for longer dated Treasuries.
During the period, the fund’s duration contributed to relative returns. As the yield curve flattened, yield curve positioning detracted from relative returns. A lower-than-index allocation to agency mortgage-backed securities dampened returns as well.
The fund strives to meet its objective of providing a high level of current income consistent with the preservation of capital. The fund’s portfolio managers have positioned the fund with the expectation that rate hikes over the next two to three years will be at a slower pace than is currently priced into the market. They believe this can lead to a steepening yield curve and higher inflation expectations.
Breakdown of mortgage-backed obligations | Percent of net assets | |||||||
30-year pass-throughs: | ||||||||
Fannie Mae | 9.5 | % | ||||||
Freddie Mac | 5.7 | |||||||
Ginnie Mac | 4.6 | 19.8 | % | |||||
15-year pass-throughs | 1.0 | |||||||
Other | 4.5 | |||||||
Total | 25.3 | % |
38 | American Funds Insurance Series |
U.S. Government/AAA-Rated Securities Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2017
1 year | 5 years | 10 years | Lifetime (since December 2, 1985) | Expense ratio | ||||||||||||||||
Class 1 | 1.83 | % | 1.48 | % | 3.37 | % | 5.86 | % | .36 | % | ||||||||||
Class 1A | 1.72 | 1.26 | 3.13 | 5.61 | .61 | 2 | ||||||||||||||
Class 2 | 1.59 | 1.23 | 3.12 | 5.60 | .61 | |||||||||||||||
Class 3 | 1.72 | 1.31 | 3.19 | 5.67 | .54 | |||||||||||||||
Class 4 | 1.28 | 1.04 | 2.90 | 5.35 | .86 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008, and from July 1, 2010, through December 31, 2010. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2018 (unaudited). See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: Bloomberg Index Services Ltd. |
2 | Based on estimated amounts for the current fiscal year. |
Where the fund’s assets were invested as of December 31, 2017 | Percent of net assets |
American Funds Insurance Series | 39 |
Managed Risk Growth Fund1
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.
The fund gained 25.99% for the 12 months ended December 31, 2017, outpacing the Standard & Poor’s 500 Managed Risk Index — Moderate Aggressive,2 which rose 17.94%. In comparison, the Standard & Poor’s 500 Composite Index,3 a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, gained 21.83%. The Bloomberg Barclays U.S. Aggregate Index,4 which measures investment-grade U.S. bonds (rated BBB/Baa and above), rose 3.54%.
The fund pursues its objective by investing in shares of American Funds Insurance Series — Growth FundSM while seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying fund.
The underlying American Funds Insurance Series — Growth Fund’s larger-than-index investments and strong stock selection in information technology and consumer discretionary added to returns, while energy stocks detracted from the fund’s results.
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2017
1 year | Lifetime (since May 1, 2013) | Gross expense ratio | Net expense ratio | |||||||||||||
Class P1 | 26.23 | % | 9.73 | % | .88 | % | .72 | % | ||||||||
Class P2 | 25.99 | 9.41 | 1.13 | .97 |
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Effective November 30, 2017, the Managed Risk Growth Fund also invests in shares of the Bond Fund. |
2 | Source: S&P Dow Jones Indices LLC. Standard & Poor’s Managed Risk Index Series is designed to simulate a dynamic protective portfolio that allocates between the underlying equity index and cash, based on realized volatilities of the underlying equity and bond indexes, while maintaining a fixed allocation to the underlying bond index. These indexes are generated and published under agreements between Standard & Poor’s Dow Jones Indices and Milliman Financial Risk Management LLC. |
3 | Source: S&P Dow Jones Indices LLC. |
4 | Source: Bloomberg Index Services Ltd. |
Milliman Financial Risk Management LLC serves as the subadviser with respect to the management of the fund’s managed risk strategy.
40 | American Funds Insurance Series |
Managed Risk International Fund1
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.
The fund advanced 28.69% for the 12 months ended December 31, 2017, outpacing the Standard & Poor’s EPAC Ex. Korea LargeMidCap Managed Risk Index — Moderate Aggressive,2 which rose 20.74%. In comparison, the MSCI ACWI (All Country World Index) ex USA,3 a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, consisting of more than 40 developed and emerging market country indexes excluding the U.S., rose 27.19%. The Bloomberg Barclays U.S. Aggregate Index,4 which measures investment-grade U.S. bonds (rated BBB/Baa and above), rose 3.54%.
The fund pursues its objective by investing in shares of American Funds Insurance Series — International FundSM while seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying fund.
The underlying American Funds Insurance Series — International Fund’s investments in the information technology sector added to returns, while health care stocks hindered the fund’s relative results.
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2017
1 year | Lifetime (since May 1, 2013) | Gross expense ratio | Net expense ratio | |||||||||||||
Class P1 | 29.28 | % | 4.37 | % | 1.03 | % | .87 | % | ||||||||
Class P2 | 28.69 | 3.96 | 1.28 | 1.12 |
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Effective November 30, 2017, the Managed Risk International Fund also invests in shares of the Bond Fund. |
2 | Source: S&P Dow Jones Indices LLC. Standard & Poor’s Managed Risk Index Series is designed to simulate a dynamic protective portfolio that allocates between the underlying equity index and cash, based on realized volatilities of the underlying equity and bond indexes, while maintaining a fixed allocation to the underlying bond index. These indexes are generated and published under agreements between Standard & Poor’s Dow Jones Indices and Milliman Financial Risk Management LLC. |
3 | Source: MSCI. The MSCI index result reflects reinvestment of distributions and dividends net of withholding taxes. |
4 | Source: Bloomberg Index Services Ltd. |
Milliman Financial Risk Management LLC serves as the subadviser with respect to the management of the fund’s managed risk strategy.
American Funds Insurance Series | 41 |
Managed Risk Blue Chip Income and Growth Fund1
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.
The fund gained 15.03% for the 12 months ended December 31, 2017, trailing the Standard & Poor’s 500 Managed Risk Index — Moderate Aggressive,2 which rose 17.94%. In comparison, the Standard & Poor’s 500 Composite Index,3 a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, gained 21.83%. The Bloomberg Barclays U.S. Government/Mortgage-Backed Securities Index,4 which covers obligations issued by the U.S. Treasury and U.S. government agencies, rose 2.37%.
The fund pursues its objective by investing in shares of American Funds Insurance Series — Blue Chip Income and Growth FundSM while seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying fund.
The underlying American Funds Insurance Series — Blue Chip Income and Growth Fund’s investments in the health care sector added to returns, while energy stocks hindered the fund’s results.
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2017
1 year | Lifetime (since May 1, 2013) | Gross expense ratio | Net expense ratio | |||||||||||||
Class P1 | 15.48 | % | 8.87 | % | .93 | % | .77 | % | ||||||||
Class P2 | 15.03 | 8.48 | 1.18 | 1.02 |
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Effective November 30, 2017, the Managed Risk Blue Chip Income and Growth Fund also invests in shares of the U.S. Government/AAA-Rated Securities Fund. |
2 | Source: S&P Dow Jones Indices LLC. Standard & Poor’s Managed Risk Index Series is designed to simulate a dynamic protective portfolio that allocates between the underlying equity index and cash, based on realized volatilities of the underlying equity and bond indexes, while maintaining a fixed allocation to the underlying bond index. These indexes are generated and published under agreements between Standard & Poor’s Dow Jones Indices and Milliman Financial Risk Management LLC. |
3 | Source: S&P Dow Jones Indices LLC. |
4 | Source: Bloomberg Index Services Ltd. |
Milliman Financial Risk Management LLC serves as the subadviser with respect to the management of the fund’s managed risk strategy.
42 | American Funds Insurance Series |
Managed Risk Growth-Income Fund1
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.
The fund gained 20.40% for the 12 months ended December 31, 2017, outpacing the Standard & Poor’s 500 Managed Risk Index — Moderate Aggressive,2 which rose 17.94%. In comparison, the Standard & Poor’s 500 Composite Index,3 a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, gained 21.83%. The Bloomberg Barclays U.S. Aggregate Index,4 which measures investment-grade U.S. bonds (rated BBB/Baa and above), rose 3.54%.
The fund pursues its objective by investing in shares of American Funds Insurance Series — Growth-Income FundSM while seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying fund.
The underlying American Funds Insurance Series — Growth-Income Fund’s investments in the consumer discretionary and health care sectors added the most to relative returns, while energy stocks detracted from the fund’s absolute results.
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2017
1 year | Lifetime (since May 1, 2013) | Gross expense ratio | Net expense ratio | |||||||||||||
Class P1 | 20.64 | % | 9.28 | % | .33 | % | .67 | % | ||||||||
Class P2 | 20.40 | 8.94 | 1.08 | .92 |
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Effective November 30, 2017, the Managed Risk Growth-Income Fund also invests in shares of the Bond Fund. |
2 | Source: S&P Dow Jones Indices LLC. Standard & Poor’s Managed Risk Index Series is designed to simulate a dynamic protective portfolio that allocates between the underlying equity index and cash, based on realized volatilities of the underlying equity and bond indexes, while maintaining a fixed allocation to the underlying bond index. These indexes are generated and published under agreements between Standard & Poor’s Dow Jones Indices and Milliman Financial Risk Management LLC. |
3 | Source: S&P Dow Jones Indices LLC. |
4 | Source: Bloomberg Index Services Ltd. |
Milliman Financial Risk Management LLC serves as the subadviser with respect to the management of the fund’s managed risk strategy.
American Funds Insurance Series | 43 |
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.
The fund rose 14.80% for the 12 months ended December 31, 2017, trailing the Standard & Poor’s 500 Managed Risk Index — Moderate,1 which rose 16.02%. In comparison, the Standard & Poor’s 500 Composite Index,2 a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, gained 21.83%, while the Bloomberg Barclays U.S. Aggregate Index,3 which measures investment-grade U.S. bonds (rated BBB/Baa and above), rose 3.54%.
The fund pursues its objective by investing in shares of American Funds Insurance Series — Asset Allocation FundSM while seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying fund.
The underlying American Funds Insurance Series — Asset Allocation Fund’s investments in the industrials and information technology sectors contributed the most to relative returns. Holdings in the energy sector hindered absolute and relative returns as oil prices slumped on concerns of oversupply.
44 | American Funds Insurance Series |
Managed Risk Asset Allocation Fund
How a $10,000 investment has grown
Average annual total returns based on a $1,000 investment
For periods ended December 31, 2017
1 year | 5 years | Lifetime (since September 28, 2012) | Gross expense ratio | Net expense ratio | ||||||||||||||||
Class P1 | 15.06 | % | 8.89 | % | 8.69 | % | .71 | % | .66 | % | ||||||||||
Class P2 | 14.80 | 8.62 | 8.43 | .96 | .91 |
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: S&P Dow Jones Indices LLC. Standard & Poor’s Managed Risk Index Series is designed to simulate a dynamic protective portfolio that allocates between the underlying equity index and cash, based on realized volatilities of the underlying equity and bond indexes, while maintaining a fixed allocation to the underlying bond index. These indexes are generated and published under agreements between Standard & Poor’s Dow Jones Indices and Milliman Financial Risk Management LLC. |
2 | Source: S&P Dow Jones Indices LLC. |
3 | Source: Bloomberg Index Services Ltd. |
Milliman Financial Risk Management LLC serves as the subadviser with respect to the management of the fund’s managed risk strategy.
American Funds Insurance Series | 45 |
Global Growth Fund
Summary investment portfolio December 31, 2017
Common stocks 96.68% | Shares | Value (000) | ||||||
Information technology 32.07% | ||||||||
ASML Holding NV1 | 648,442 | $ | 112,497 | |||||
ASML Holding NV (New York registered) | 643,900 | 111,923 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 26,955,000 | 207,124 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 335,000 | 13,283 | ||||||
Alphabet Inc., Class A2 | 130,000 | 136,942 | ||||||
Alphabet Inc., Class C2 | 71,052 | 74,349 | ||||||
Nintendo Co., Ltd.1 | 492,400 | 179,259 | ||||||
Facebook, Inc., Class A2 | 898,500 | 158,549 | ||||||
Microsoft Corp. | 1,355,900 | 115,984 | ||||||
Alibaba Group Holding Ltd. (ADR)2 | 671,050 | 115,709 | ||||||
Visa Inc., Class A | 998,800 | 113,883 | ||||||
Broadcom Ltd. | 373,700 | 96,003 | ||||||
Tencent Holdings Ltd.1 | 1,800,000 | 93,051 | ||||||
Samsung Electronics Co., Ltd.1 | 15,740 | 37,396 | ||||||
Samsung Electronics Co., Ltd., nonvoting preferred1 | 15,845 | 30,888 | ||||||
AAC Technologies Holdings Inc.1 | 3,806,540 | 67,697 | ||||||
Just Eat PLC1,2 | 5,292,000 | 55,515 | ||||||
Murata Manufacturing Co., Ltd.1 | 409,000 | 54,665 | ||||||
Intel Corp. | 1,000,000 | 46,160 | ||||||
TEMENOS Group AG (Switzerland)1 | 318,000 | 40,696 | ||||||
Other securities | 137,838 | |||||||
1,999,411 | ||||||||
Consumer discretionary 18.17% | ||||||||
Amazon.com, Inc.2 | 291,900 | 341,368 | ||||||
Priceline Group Inc.2 | 39,000 | 67,772 | ||||||
Home Depot, Inc. | 350,000 | 66,335 | ||||||
Peugeot SA1 | 3,180,000 | 64,597 | ||||||
Industria de Diseño Textil, SA1 | 1,723,000 | 59,929 | ||||||
Naspers Ltd., Class N1 | 190,820 | 53,168 | ||||||
McDonald’s Corp. | 293,000 | 50,431 | ||||||
NIKE, Inc., Class B | 671,000 | 41,971 | ||||||
Other securities | 387,314 | |||||||
1,132,885 | ||||||||
Health care 11.96% | ||||||||
Regeneron Pharmaceuticals, Inc.2 | 214,000 | 80,455 | ||||||
UnitedHealth Group Inc. | 324,200 | 71,473 | ||||||
Express Scripts Holding Co.2 | 768,500 | 57,361 | ||||||
Bayer AG1 | 421,600 | 52,436 | ||||||
Straumann Holding AG1 | 67,500 | 47,644 | ||||||
AstraZeneca PLC1 | 652,300 | 44,763 | ||||||
Sartorius AG, non-registered shares, nonvoting preferred1 | 444,000 | 42,371 | ||||||
Eurofins Scientific SE, non-registered shares1 | 68,145 | 41,492 | ||||||
Boston Scientific Corp.2 | 1,638,200 | 40,611 | ||||||
Mettler-Toledo International Inc.2 | 65,000 | 40,269 | ||||||
Other securities | 227,014 | |||||||
745,889 | ||||||||
Financials 10.44% | ||||||||
AIA Group Ltd.1 | 15,004,900 | 127,967 | ||||||
JPMorgan Chase & Co. | 853,600 | 91,284 | ||||||
Kotak Mahindra Bank Ltd.1 | 3,471,000 | 54,891 | ||||||
Prudential PLC1 | 1,906,884 | 49,026 | ||||||
Société Générale1 | 923,000 | 47,588 | ||||||
MarketAxess Holdings Inc. | 188,000 | 37,929 | ||||||
Other securities | 242,198 | |||||||
650,883 |
46 | American Funds Insurance Series |
Global Growth Fund
Common stocks | Shares | Value (000) | ||||||
Consumer staples 7.46% | ||||||||
British American Tobacco PLC1 | 2,002,000 | $ | 135,116 | |||||
Nestlé SA1 | 739,650 | 63,560 | ||||||
Altria Group, Inc. | 770,000 | 54,986 | ||||||
Other securities | 211,752 | |||||||
465,414 | ||||||||
Industrials 6.17% | ||||||||
Airbus SE, non-registered shares1 | 1,109,500 | 110,180 | ||||||
KONE Oyj, Class B1 | 880,000 | 47,222 | ||||||
Caterpillar Inc. | 287,000 | 45,226 | ||||||
Other securities | 181,998 | |||||||
384,626 | ||||||||
Materials 2.24% | ||||||||
Sherwin-Williams Co. | 116,000 | 47,565 | ||||||
Other securities | 92,334 | |||||||
139,899 | ||||||||
Telecommunication services 1.12% | ||||||||
SoftBank Group Corp.1 | 776,000 | 61,307 | ||||||
Other securities | 8,238 | |||||||
69,545 | ||||||||
Other 2.09% | ||||||||
Other securities | 130,519 | |||||||
Miscellaneous 4.96% | ||||||||
Other common stocks in initial period of acquisition | 309,116 | |||||||
Total common stocks (cost: $3,842,087,000) | 6,028,187 |
Bonds, notes & other debt instruments 0.03% | Principal amount (000) | |||||||
U.S. Treasury bonds & notes 0.03% | ||||||||
U.S. Treasury 0.03% | ||||||||
Other securities | 1,998 | |||||||
Total bonds, notes & other debt instruments (cost: $1,998,000) | 1,998 | |||||||
Short-term securities 3.57% | ||||||||
Federal Home Loan Bank 1.14%–1.31% due 1/17/2018–3/28/2018 | $ | 97,500 | 97,371 | |||||
Prudential Funding, LLC 1.35% due 1/12/2018 | 39,500 | 39,478 | ||||||
Other securities | 85,475 | |||||||
Total short-term securities (cost: $222,335,000) | 222,324 | |||||||
Total investment securities 100.28% (cost: $4,066,420,000) | 6,252,509 | |||||||
Other assets less liabilities (0.28)% | (17,433 | ) | ||||||
Net assets 100.00% | $ | 6,235,076 |
American Funds Insurance Series | 47 |
Global Growth Fund
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
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. “Other securities” also includes securities (with an aggregate value of $80,835,000, which represented 1.30% of the net assets of the fund) which were acquired in transactions exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933 and may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers.
Forward currency contracts
Unrealized | ||||||||
Contract amount | appreciation | |||||||
Purchases | Sales | at 12/31/2017 | ||||||
(000) | (000) | Counterparty | Settlement date | (000) | ||||
USD5,180 | JPY581,294 | Bank of America, N.A. | 1/22/2018 | $15 |
1 | 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 $3,140,563,000, which represented 50.37% of the net assets of the fund. This amount includes $3,130,602,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Security did not produce income during the last 12 months. |
Key to abbreviations and symbol
ADR = American Depositary Receipts
JPY = Japanese yen
USD/$ = U.S. dollars
See Notes to Financial Statements
48 | American Funds Insurance Series |
Global Small Capitalization Fund
Summary investment portfolio December 31, 2017
Common stocks 93.34% | Shares | Value (000) | ||||||
Consumer discretionary 20.64% | ||||||||
Hilton Grand Vacations Inc.1 | 1,219,200 | $ | 51,145 | |||||
Melco International Development Ltd.2 | 17,379,000 | 50,976 | ||||||
GVC Holdings PLC2 | 4,048,748 | 50,555 | ||||||
Five Below, Inc.1 | 684,000 | 45,363 | ||||||
Cedar Fair, LP | 531,000 | 34,510 | ||||||
Domino’s Pizza, Inc. | 181,100 | 34,221 | ||||||
Entertainment One Ltd.2 | 7,563,697 | 33,123 | ||||||
Hostelworld Group PLC2,3 | 6,212,000 | 32,175 | ||||||
Tele Columbus AG1,2 | 2,743,000 | 30,384 | ||||||
Caesars Entertainment Corp.1 | 2,375,836 | 30,054 | ||||||
Ladbrokes Coral Group PLC2 | 11,120,100 | 27,199 | ||||||
Ted Baker PLC2 | 686,500 | 25,026 | ||||||
Other securities | 445,813 | |||||||
890,544 | ||||||||
Health care 16.56% | ||||||||
GW Pharmaceuticals PLC (ADR)1 | 746,460 | 98,540 | ||||||
Insulet Corp.1 | 1,145,900 | 79,067 | ||||||
Illumina, Inc.1 | 230,200 | 50,296 | ||||||
Integra LifeSciences Holdings Corp.1 | 1,025,423 | 49,077 | ||||||
Bluebird Bio, Inc.1 | 267,765 | 47,689 | ||||||
iRhythm Technologies, Inc.1 | 807,980 | 45,287 | ||||||
China Biologic Products Holdings, Inc.1 | 503,000 | 39,621 | ||||||
athenahealth, Inc.1 | 236,000 | 31,397 | ||||||
WuXi Biologics (Cayman) Inc.1,2 | 4,926,300 | 27,591 | ||||||
Other securities | 245,806 | |||||||
714,371 | ||||||||
Information technology 16.55% | ||||||||
Qorvo, Inc.1 | 1,118,753 | 74,509 | ||||||
WIN Semiconductors Corp.2 | 6,538,400 | 61,796 | ||||||
Mellanox Technologies, Ltd.1 | 653,000 | 42,249 | ||||||
Topcon Corp.2 | 1,707,510 | 36,888 | ||||||
Paycom Software, Inc.1 | 428,885 | 34,452 | ||||||
AAC Technologies Holdings Inc.2 | 1,786,561 | 31,773 | ||||||
VTech Holdings Ltd.2 | 2,189,000 | 28,687 | ||||||
ZPG PLC2 | 6,260,620 | 27,928 | ||||||
Hamamatsu Photonics KK2 | 785,753 | 26,323 | ||||||
Other securities | 349,647 | |||||||
714,252 | ||||||||
Industrials 10.33% | ||||||||
International Container Terminal Services, Inc.2 | 20,180,000 | 42,610 | ||||||
Nabtesco Corp.2 | 728,500 | 27,943 | ||||||
Welbilt Inc.1 | 1,050,000 | 24,685 | ||||||
Other securities | 350,602 | |||||||
445,840 | ||||||||
Financials 9.38% | ||||||||
Kotak Mahindra Bank Ltd.2 | 3,282,732 | 51,914 | ||||||
Essent Group Ltd.1 | 1,058,841 | 45,975 | ||||||
Texas Capital Bancshares, Inc.1 | 496,623 | 44,150 | ||||||
Webster Financial Corp. | 553,000 | 31,056 | ||||||
Other securities | 231,813 | |||||||
404,908 | ||||||||
Materials 4.09% | ||||||||
Lundin Mining Corp. | 6,172,000 | 41,048 | ||||||
Other securities | 135,256 | |||||||
176,304 |
American Funds Insurance Series | 49 |
Global Small Capitalization Fund
Common stocks (continued) | Shares | Value (000) | ||||||
Consumer staples 3.40% | ||||||||
COSMOS Pharmaceutical Corp.2 | 148,500 | $ | 31,014 | |||||
Varun Beverages Ltd.2 | 2,504,974 | 25,528 | ||||||
Other securities | 90,249 | |||||||
146,791 | ||||||||
Energy 2.77% | ||||||||
Whitecap Resources Inc. | 3,404,880 | 24,243 | ||||||
Whitecap Resources Inc.2,4 | 270,000 | 1,865 | ||||||
SM Energy Co. | 1,111,000 | 24,531 | ||||||
Other securities | 68,876 | |||||||
119,515 | ||||||||
Real estate 2.56% | ||||||||
WHA Corp. PCL2 | 372,370,250 | 45,697 | ||||||
MGM Growth Properties LLC REIT, Class A | 1,323,600 | 38,583 | ||||||
Other securities | 26,059 | |||||||
110,339 | ||||||||
Utilities 1.74% | ||||||||
ENN Energy Holdings Ltd.2 | 4,991,400 | 35,414 | ||||||
Other securities | 39,704 | |||||||
75,118 | ||||||||
Telecommunication services 0.43% | ||||||||
Other securities | 18,660 | |||||||
Miscellaneous 4.89% | ||||||||
Other common stocks in initial period of acquisition | 210,986 | |||||||
Total common stocks (cost: $3,076,327,000) | 4,027,628 | |||||||
Rights & warrants 0.01% | ||||||||
Real estate 0.01% | ||||||||
WHA Corp. PCL, warrants, expire 20201 | 1,075,182 | 376 | ||||||
Total rights & warrants (cost: $0) | 376 | |||||||
Convertible bonds 0.20% | Principal amount (000) | |||||||
Consumer discretionary 0.20% | ||||||||
Other securities | 8,667 | |||||||
Total convertible bonds (cost: $8,541,000) | 8,667 | |||||||
Bonds, notes & other debt instruments 0.09% | ||||||||
U.S. Treasury bonds & notes 0.09% | ||||||||
U.S. Treasury 0.09% | ||||||||
U.S. Treasury 0.875% 20185 | $ | 4,125 | 4,110 | |||||
Total bonds, notes & other debt instruments (cost: $4,110,000) | 4,110 |
50 | American Funds Insurance Series |
Global Small Capitalization Fund
Short-term securities 6.36% | Principal amount (000) | Value (000) | ||||||
Bank of Montreal 1.70% due 3/15/2018 | $ | 50,000 | $ | 50,004 | ||||
Federal Home Loan Bank 1.05%–1.21% due 1/2/2018–1/16/2018 | 75,100 | 75,078 | ||||||
Mizuho Bank, Ltd. 1.37%–1.38% due 1/19/2018–1/22/20184 | 49,000 | 48,953 | ||||||
U.S. Treasury Bills 1.41%–1.50% due 5/31/2018–6/28/2018 | 101,100 | 100,436 | ||||||
Total short-term securities (cost: $274,490,000) | 274,471 | |||||||
Total investment securities 100.00% (cost: $3,363,468,000) | 4,315,252 | |||||||
Other assets less liabilities (0.00)% | (214 | ) | ||||||
Net assets 100.00% | $ | 4,315,038 |
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 security in “Other securities” (with a value of $10,408,000, an aggregate cost of $8,280,000, and which represented .24% of the net assets of the fund) was acquired on 5/1/2015 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject it to legal or contractual restrictions on resale.
Forward currency contracts
Unrealized | ||||||||||||||||
(depreciation) | ||||||||||||||||
Contract amount | appreciation | |||||||||||||||
Purchases | Sales | at 12/31/2017 | ||||||||||||||
(000) | (000) | Counterparty | Settlement date | (000) | ||||||||||||
USD45,066 | GBP34,000 | HSBC Bank | 1/22/2018 | $ (878 | ) | |||||||||||
USD15,775 | JPY1,765,175 | JPMorgan Chase | 1/23/2018 | 89 | ||||||||||||
USD16,375 | GBP12,190 | Citibank | 2/23/2018 | (113 | ) | |||||||||||
USD10,114 | INR663,163 | Citibank | �� | 2/26/2018 | (201 | ) | ||||||||||
$(1,103 | ) |
American Funds Insurance Series | 51 |
Global Small Capitalization Fund
Investments in affiliates
A company is an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings in that company represent 5% or more of the outstanding voting shares. The value of the fund’s affiliated-company holdings is shown in the summary investment portfolio. Further details on such holdings and related transactions during the year ended December 31, 2017, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized gain (loss) (000) | Net unrealized appreciation (000) | Dividend income (000) | Value of affiliates at 12/31/2017 (000) | |||||||||||||||||||||||||
Common stocks 0.75% | ||||||||||||||||||||||||||||||||
Consumer discretionary 0.75% | ||||||||||||||||||||||||||||||||
Hostelworld Group PLC2 | — | 6,212,000 | — | 6,212,000 | $ | — | $ | 6,656 | $ | 1,346 | $ | 32,175 | ||||||||||||||||||||
Materials 0.00% | ||||||||||||||||||||||||||||||||
Time Technoplast Ltd.6 | 11,888,000 | — | 11,888,000 | — | 5,933 | 107 | — | — | ||||||||||||||||||||||||
Indochine Mining Ltd.1,2,6 | 182,998 | — | 182,998 | — | (8,032 | ) | 8,032 | — | — | |||||||||||||||||||||||
— | ||||||||||||||||||||||||||||||||
Energy 0.00% | ||||||||||||||||||||||||||||||||
Victoria Oil & Gas PLC1,2,6 | 6,966,560 | — | 6,966,560 | — | (1,438 | ) | 3,759 | — | — | |||||||||||||||||||||||
Total 0.75% | $ | (3,537 | ) | $ | 18,554 | $ | 1,346 | $ | 32,175 |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Security did not produce income during the last 12 months. |
2 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous” and “Other securities,” was $1,969,093,000, which represented 45.63% of the net assets of the fund. This amount includes $1,942,046,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
3 | Represents an affiliated company as defined under the Investment Company Act of 1940. |
4 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $66,572,000, which represented 1.54% of the net assets of the fund. |
5 | A portion of this security was pledged as collateral. The total value of pledged collateral was $677,000, which represented .02% of the net assets of the fund. |
6 | Unaffiliated issuer at 12/31/2017. |
Key to abbreviations and symbol
ADR = American Depositary Receipts
GBP = British pounds
INR = Indian rupees
JPY = Japanese yen
USD/$ = U.S. dollars
See Notes to Financial Statements
52 | American Funds Insurance Series |
Growth Fund
Summary investment portfolio December 31, 2017
Common stocks 93.87% | Shares | Value (000) | ||||||
Information technology 31.06% | ||||||||
Facebook, Inc., Class A1 | 8,340,500 | $ | 1,471,765 | |||||
Microsoft Corp. | 11,676,000 | 998,765 | ||||||
Alphabet Inc., Class C1 | 613,000 | 641,443 | ||||||
Alphabet Inc., Class A1 | 271,500 | 285,998 | ||||||
Broadcom Ltd. | 2,838,300 | 729,159 | ||||||
ASML Holding NV (New York registered) | 2,382,000 | 414,039 | ||||||
ASML Holding NV2 | 1,199,568 | 208,111 | ||||||
Apple Inc. | 3,224,000 | 545,598 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd.2 | 41,360,000 | 317,813 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 2,975,392 | 117,974 | ||||||
Visa Inc., Class A | 2,955,000 | 336,929 | ||||||
Intel Corp. | 4,790,000 | 221,106 | ||||||
ServiceNow, Inc.1 | 1,583,263 | 206,442 | ||||||
Paycom Software, Inc.1 | 1,855,600 | 149,060 | ||||||
Other securities | 1,116,674 | |||||||
7,760,876 | ||||||||
Consumer discretionary 19.34% | ||||||||
Amazon.com, Inc.1 | 1,364,416 | 1,595,644 | ||||||
Netflix, Inc.1 | 2,546,000 | 488,730 | ||||||
Tesla, Inc.1 | 1,506,200 | 468,955 | ||||||
Home Depot, Inc. | 2,300,000 | 435,919 | ||||||
Comcast Corp., Class A | 7,525,000 | 301,376 | ||||||
NIKE, Inc., Class B | 4,255,000 | 266,150 | ||||||
Ulta Beauty, Inc.1 | 1,120,000 | 250,499 | ||||||
Charter Communications, Inc., Class A1 | 698,680 | 234,729 | ||||||
Priceline Group Inc.1 | 131,531 | 228,567 | ||||||
Starbucks Corp. | 2,895,000 | 166,260 | ||||||
Other securities | 395,829 | |||||||
4,832,658 | ||||||||
Health care 13.05% | ||||||||
UnitedHealth Group Inc. | 3,517,500 | 775,468 | ||||||
Intuitive Surgical, Inc.1 | 940,500 | 343,226 | ||||||
Humana Inc. | 993,200 | 246,383 | ||||||
Hologic, Inc.1 | 5,413,398 | 231,423 | ||||||
Regeneron Pharmaceuticals, Inc.1 | 609,500 | 229,148 | ||||||
Centene Corp.1 | 2,243,000 | 226,274 | ||||||
Thermo Fisher Scientific Inc. | 995,000 | 188,931 | ||||||
Aetna Inc. | 1,024,600 | 184,828 | ||||||
Boston Scientific Corp.1 | 7,255,000 | 179,851 | ||||||
Illumina, Inc.1 | 775,000 | 169,330 | ||||||
Other securities | 484,614 | |||||||
3,259,476 | ||||||||
Financials 9.34% | ||||||||
Wells Fargo & Co. | 7,150,000 | 433,790 | ||||||
Goldman Sachs Group, Inc. | 922,400 | 234,991 | ||||||
JPMorgan Chase & Co. | 1,947,000 | 208,212 | ||||||
PNC Financial Services Group, Inc. | 1,083,600 | 156,353 | ||||||
BlackRock, Inc. | 289,000 | 148,462 | ||||||
Legal & General Group PLC2 | 40,158,246 | 147,823 | ||||||
Other securities | 1,004,043 | |||||||
2,333,674 |
American Funds Insurance Series | 53 |
Growth Fund
Common stocks (continued) | Shares | Value (000) | ||||||
Energy 7.37% | ||||||||
Concho Resources Inc.1 | 1,870,000 | $ | 280,911 | |||||
EOG Resources, Inc. | 2,402,400 | 259,243 | ||||||
Suncor Energy Inc. | 4,588,116 | 168,450 | ||||||
Noble Energy, Inc. | 5,663,000 | 165,020 | ||||||
Chevron Corp. | 1,200,000 | 150,228 | ||||||
Other securities | 818,012 | |||||||
1,841,864 | ||||||||
Industrials 6.62% | ||||||||
Boeing Co. | 1,035,000 | 305,232 | ||||||
MTU Aero Engines AG2 | 941,034 | 168,310 | ||||||
Other securities | 1,180,463 | |||||||
1,654,005 | ||||||||
Consumer staples 2.26% | ||||||||
Constellation Brands, Inc., Class A | 815,000 | 186,285 | ||||||
Kerry Group PLC, Class A2 | 1,300,000 | 145,792 | ||||||
Other securities | 231,411 | |||||||
563,488 | ||||||||
Other 2.30% | ||||||||
Other securities | 574,854 | |||||||
Miscellaneous 2.53% | ||||||||
Other common stocks in initial period of acquisition | 632,462 | |||||||
Total common stocks (cost: $13,998,793,000) | 23,453,357 | |||||||
Convertible stocks 0.04% | ||||||||
Consumer discretionary 0.04% | ||||||||
Other securities | 9,173 | |||||||
Total convertible stocks (cost: $10,650,000) | 9,173 | |||||||
Short-term securities 6.31% | Principal amount (000) | |||||||
Federal Home Loan Bank 1.10%–1.30% due 1/12/2018–2/28/2018 | $ | 477,100 | 476,535 | |||||
Procter & Gamble Co. 1.20%–1.30% due 1/2/2018–2/13/20183 | 196,000 | 195,793 | ||||||
U.S. Treasury Bills 1.17%–1.56% due 2/1/2018–11/8/2018 | 253,200 | 252,016 | ||||||
Other securities | 652,388 | |||||||
Total short-term securities (cost: $1,576,948,000) | 1,576,732 | |||||||
Total investment securities 100.22% (cost: $15,586,391,000) | 25,039,262 | |||||||
Other assets less liabilities (0.22)% | (53,804 | ) | ||||||
Net assets 100.00% | $ | 24,985,458 |
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 security in “Other securities” (with a value of $9,173,000, an aggregate cost of $10,650,000, and which represented .04% of the net assets of the fund) was acquired on 5/22/2015 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject it to legal or contractual restrictions on resale.
54 | American Funds Insurance Series |
Growth 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 | 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 $1,648,959,000, which represented 6.60% of the net assets of the fund. This amount includes $1,614,318,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
3 | Acquired 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 $720,144,000, which represented 2.88% of the net assets of the fund. |
Key to abbreviation
ADR = American Depositary Receipts
See Notes to Financial Statements
American Funds Insurance Series | 55 |
International Fund
Summary investment portfolio December 31, 2017
Common stocks 90.84% | Shares | Value (000) | ||||||
Financials 17.81% | ||||||||
AIA Group Ltd.1 | 40,078,700 | $ | 341,804 | |||||
HDFC Bank Ltd.1 | 8,416,569 | 248,893 | ||||||
HDFC Bank Ltd. (ADR) | 130,800 | 13,298 | ||||||
Prudential PLC1 | 5,142,265 | 132,208 | ||||||
UniCredit SpA1,2 | 6,989,092 | 130,202 | ||||||
Kotak Mahindra Bank Ltd.1 | 6,186,048 | 97,828 | ||||||
Barclays PLC1 | 34,317,708 | 93,571 | ||||||
Credit Suisse Group AG1 | 4,798,789 | 85,420 | ||||||
BNP Paribas SA1 | 1,002,776 | 74,781 | ||||||
Sberbank of Russia PJSC (ADR)1 | 4,290,850 | 72,627 | ||||||
Axis Bank Ltd.1,3,4 | 8,530,055 | 68,289 | ||||||
Other securities | 379,123 | |||||||
1,738,044 | ||||||||
Information technology 12.06% | ||||||||
Samsung Electronics Co., Ltd.1 | 128,338 | 304,909 | ||||||
Tencent Holdings Ltd.1 | 4,644,687 | 240,107 | ||||||
Alibaba Group Holding Ltd. (ADR)2 | 1,361,800 | 234,815 | ||||||
ASML Holding NV1 | 628,834 | 109,095 | ||||||
Other securities | 287,922 | |||||||
1,176,848 | ||||||||
Consumer discretionary 11.34% | ||||||||
Galaxy Entertainment Group Ltd.1 | 16,681,000 | 133,389 | ||||||
Techtronic Industries Co. Ltd.1 | 15,689,500 | 102,262 | ||||||
Kering SA1 | 208,638 | 98,357 | ||||||
Hyundai Motor Co.1 | 672,100 | 97,915 | ||||||
Naspers Ltd., Class N1 | 334,100 | 93,090 | ||||||
Altice NV, Class A1,2 | 7,541,269 | 78,890 | ||||||
Other securities | 503,026 | |||||||
1,106,929 | ||||||||
Health care 9.80% | ||||||||
Novartis AG1 | 1,967,000 | 166,294 | ||||||
Grifols, SA, Class B, preferred nonvoting, non-registered shares1 | 3,304,730 | 75,819 | ||||||
Grifols, SA, Class A, non-registered shares1 | 881,000 | 25,761 | ||||||
Grifols, SA, Class B (ADR) | 793,690 | 18,191 | ||||||
Takeda Pharmaceutical Co. Ltd.1 | 1,704,000 | 96,475 | ||||||
Sysmex Corp.1 | 1,055,000 | 83,074 | ||||||
Fresenius SE & Co. KGaA1 | 1,040,000 | 80,975 | ||||||
Teva Pharmaceutical Industries Ltd. (ADR) | 4,217,300 | 79,918 | ||||||
Other securities | 329,344 | |||||||
955,851 | ||||||||
Industrials 9.17% | ||||||||
Airbus SE, non-registered shares1 | 2,926,849 | 290,653 | ||||||
Komatsu Ltd.1 | 3,339,000 | 120,950 | ||||||
Rolls-Royce Holdings PLC1,2 | 10,478,900 | 119,259 | ||||||
Nidec Corp.1 | 503,200 | 70,636 | ||||||
Other securities | 292,827 | |||||||
894,325 | ||||||||
Consumer staples 8.15% | ||||||||
Pernod Ricard SA1 | 717,437 | 113,564 | ||||||
Nestlé SA1 | 1,317,700 | 113,233 | ||||||
AMOREPACIFIC Corp.1 | 349,892 | 99,376 | ||||||
British American Tobacco PLC1 | 1,401,000 | 94,554 | ||||||
Associated British Foods PLC1 | 2,250,488 | 85,555 | ||||||
Treasury Wine Estates Ltd.1 | 6,529,100 | 81,210 | ||||||
Other securities | 207,476 | |||||||
794,968 |
56 | American Funds Insurance Series |
International Fund
Common stocks | Shares | Value (000) | ||||||
Materials 5.72% | ||||||||
Asahi Kasei Corp.1 | 7,293,000 | $ | 93,949 | |||||
Nitto Denko Corp.1 | 893,000 | 79,374 | ||||||
First Quantum Minerals Ltd. | 5,407,000 | 75,750 | ||||||
Vale SA, ordinary nominative (ADR) | 6,023,339 | 73,665 | ||||||
Vale SA, ordinary nominative | 102,481 | 1,244 | ||||||
Other securities | 233,697 | |||||||
557,679 | ||||||||
Utilities 5.28% | ||||||||
Power Grid Corp. of India Ltd.1 | 33,878,213 | 106,142 | ||||||
Ørsted AS1 | 1,580,324 | 86,097 | ||||||
ENN Energy Holdings Ltd.1 | 10,716,000 | 76,029 | ||||||
Other securities | 247,089 | |||||||
515,357 | ||||||||
Energy 4.71% | ||||||||
Royal Dutch Shell PLC, Class B1 | 3,359,624 | 113,310 | ||||||
Royal Dutch Shell PLC, Class A1 | 2,219,608 | 74,305 | ||||||
Other securities | 272,062 | |||||||
459,677 | ||||||||
Telecommunication services 2.50% | ||||||||
Nippon Telegraph and Telephone Corp.1 | 2,323,000 | 109,310 | ||||||
SoftBank Group Corp.1 | 911,900 | 72,043 | ||||||
Other securities | 62,916 | |||||||
244,269 | ||||||||
Real estate 1.95% | ||||||||
CK Asset Holdings Ltd.1 | 12,918,528 | 112,920 | ||||||
Other securities | 77,784 | |||||||
190,704 | ||||||||
Miscellaneous 2.35% | ||||||||
Other common stocks in initial period of acquisition | 229,314 | |||||||
Total common stocks (cost: $6,662,362,000) | 8,863,965 | |||||||
Rights & warrants 0.07% | ||||||||
Miscellaneous 0.07% | ||||||||
Other rights & warrants in initial period of acquisition | 6,390 | |||||||
Total rights & warrants (cost: $5,434,000) | 6,390 | |||||||
Bonds, notes & other debt instruments 0.73% | Principal amount (000) | |||||||
Corporate bonds & notes 0.40% | ||||||||
Materials 0.39% | ||||||||
First Quantum Minerals Ltd. 7.00%–7.25% 2021–20224 | $ | 29,445 | 30,965 | |||||
Other securities | 7,014 | |||||||
37,979 | ||||||||
Energy 0.01% | ||||||||
Other securities | 991 | |||||||
Total corporate bonds & notes | 38,970 | |||||||
U.S. Treasury bonds & notes 0.20% | ||||||||
U.S. Treasury 0.20% | ||||||||
Other securities | 19,983 |
American Funds Insurance Series | 57 |
International Fund
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Bonds & notes of governments & government agencies outside the U.S. 0.13% | ||||||||
Other securities | $ | 12,485 | ||||||
Total bonds, notes & other debt instruments (cost: $60,483,000) | 71,438 | |||||||
Short-term securities 8.34% | ||||||||
BNP Paribas Finance Inc. 1.72% due 2/22/20184 | $ | 50,000 | 49,875 | |||||
Federal Home Loan Bank 1.19%–1.29% due 1/9/2018–2/9/2018 | 170,000 | 169,813 | ||||||
Toronto-Dominion Bank 1.45% due 3/16/20184 | 71,200 | 70,941 | ||||||
Other securities | 523,191 | |||||||
Total short-term securities (cost: $813,936,000) | 813,820 | |||||||
Total investment securities 99.98% (cost: $7,542,215,000) | 9,755,613 | |||||||
Other assets less liabilities 0.02% | 2,209 | |||||||
Net assets 100.00% | $ | 9,757,822 |
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
Unrealized | |||||||||
Contract amount | depreciation | ||||||||
Purchases | Sales | at 12/31/2017 | |||||||
(000) | (000) | Counterparty | Settlement date | (000) | |||||
USD26,911 | INR1,744,071 | Bank of America, N.A. | 1/16/2018 | $(355 | ) |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous” and “Other securities,” was $7,999,131,000, which represented 81.98% of the net assets of the fund. This amount includes $7,669,394,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Security did not produce income during the last 12 months. |
3 | Acquired through a private placement transaction exempt from registration under the Securities Act of 1933. May be subject to legal or contractual restrictions on resale. Further details on this holding appear below. |
4 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $604,006,000, which represented 6.19% of the net assets of the fund. |
Percent | |||||||||
Private placement | Acquisition | Cost | Value | of net | |||||
security | dates | (000) | (000) | assets | |||||
Axis Bank Ltd. | 11/14/2017-12/18/2017 | $60,701 | $68,289 | .70 | % |
Key to abbreviations and symbol
ADR = American Depositary Receipts
INR = Indian rupees
USD/$ = U.S. dollars
See Notes to Financial Statements
58 | American Funds Insurance Series |
New World Fund
Summary investment portfolio December 31, 2017
Common stocks 91.02% | Shares | Value (000) | ||||||
Information technology 25.59% | ||||||||
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 9,887,000 | $ | 75,972 | |||||
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 700,000 | 27,755 | ||||||
United Microelectronics Corp.1 | 207,154,634 | 98,512 | ||||||
Alphabet Inc., Class C2 | 73,700 | 77,120 | ||||||
Alphabet Inc., Class A2 | 16,900 | 17,802 | ||||||
Murata Manufacturing Co., Ltd.1 | 584,000 | 78,054 | ||||||
Baidu, Inc., Class A (ADR)2 | 332,600 | 77,898 | ||||||
Samsung Electronics Co., Ltd.1 | 18,500 | 43,953 | ||||||
Samsung Electronics Co., Ltd., nonvoting preferred1 | 7,750 | 15,108 | ||||||
Intel Corp. | 1,279,460 | 59,060 | ||||||
Alibaba Group Holding Ltd. (ADR)2 | 336,537 | 58,029 | ||||||
Broadcom Ltd. | 159,750 | 41,040 | ||||||
Microsoft Corp. | 369,000 | 31,564 | ||||||
Renesas Electronics Corp.1,2 | 2,461,800 | 28,496 | ||||||
AAC Technologies Holdings Inc.1 | 1,316,563 | 23,415 | ||||||
TravelSky Technology Ltd., Class H1 | 7,580,456 | 22,717 | ||||||
Other securities | 127,658 | |||||||
904,153 | ||||||||
Financials 11.18% | ||||||||
HDFC Bank Ltd.1 | 1,964,100 | 58,082 | ||||||
HDFC Bank Ltd. (ADR) | 208,400 | 21,188 | ||||||
Grupo Financiero Galicia SA, Class B (ADR) | 1,123,355 | 73,973 | ||||||
BM&FBOVESPA SA - Bolsa de Valores, Mercadorias e Futuros, ordinary nominative | 7,928,300 | 54,447 | ||||||
AIA Group Ltd.1 | 4,611,600 | 39,329 | ||||||
Sberbank of Russia PJSC (ADR)1 | 1,150,000 | 19,465 | ||||||
Sberbank of Russia PJSC (ADR) | 682,500 | 11,623 | ||||||
Industrial and Commercial Bank of China Ltd., Class H1 | 27,600,000 | 22,133 | ||||||
Other securities | 94,647 | |||||||
394,887 | ||||||||
Consumer discretionary 9.02% | ||||||||
Maruti Suzuki India Ltd.1 | 244,640 | 37,232 | ||||||
Kroton Educacional SA, ordinary nominative | 6,457,000 | 35,817 | ||||||
Sony Corp.1 | 700,000 | 31,443 | ||||||
Naspers Ltd., Class N1 | 111,519 | 31,073 | ||||||
MakeMyTrip Ltd., non-registered shares2 | 871,500 | 26,014 | ||||||
Other securities | 157,138 | |||||||
318,717 | ||||||||
Energy 8.62% | ||||||||
Reliance Industries Ltd.1 | 13,230,790 | 190,875 | ||||||
Royal Dutch Shell PLC, Class B1 | 1,050,000 | 35,413 | ||||||
Royal Dutch Shell PLC, Class A1 | 21,628 | 724 | ||||||
Other securities | 77,508 | |||||||
304,520 | ||||||||
Consumer staples 8.07% | ||||||||
British American Tobacco PLC1 | 1,494,000 | 100,831 | ||||||
CP ALL PCL1 | 17,121,500 | 40,421 | ||||||
Nestlé SA1 | 312,196 | 26,828 | ||||||
Lenta Ltd. (GDR)1,2 | 4,126,200 | 24,008 | ||||||
Lenta Ltd. (GDR)1,2,3 | 244,500 | 1,423 | ||||||
Foshan Haitian Flavouring and Food Co. Ltd., Class A1 | 2,250,000 | 18,584 | ||||||
Other securities | 73,058 | |||||||
285,153 |
American Funds Insurance Series | 59 |
New World Fund
Common stocks (continued) | Shares | Value (000) | ||||||
Materials 7.77% | ||||||||
Randgold Resources Ltd.1 | 529,600 | $ | 52,539 | |||||
Vale SA, ordinary nominative | 4,093,786 | 49,687 | ||||||
First Quantum Minerals Ltd. | 2,580,100 | 36,146 | ||||||
En+ Group PLC (GDR)1,3 | 1,886,800 | 26,038 | ||||||
Glencore PLC1 | 4,840,000 | 25,465 | ||||||
Klabin SA, units | 4,219,400 | 22,387 | ||||||
Other securities | 62,187 | |||||||
274,449 | ||||||||
Industrials 6.22% | ||||||||
Airbus SE, non-registered shares1 | 612,229 | 60,798 | ||||||
Eicher Motors Ltd.1 | 118,200 | 56,103 | ||||||
Grupo Aeroportuario del Sureste, SA de CV, Series B | 1,315,200 | 23,951 | ||||||
Other securities | 78,759 | |||||||
219,611 | ||||||||
Health care 4.44% | ||||||||
Hypermarcas SA, ordinary nominative | 4,168,700 | 45,242 | ||||||
CSL Ltd.1 | 268,500 | 29,552 | ||||||
Other securities | 82,021 | |||||||
156,815 | ||||||||
Telecommunication services 2.49% | ||||||||
SoftBank Group Corp.1 | 738,000 | 58,304 | ||||||
Other securities | 29,559 | |||||||
87,863 | ||||||||
Utilities 1.88% | ||||||||
Infraestructura Energética Nova, SAB de CV | 6,831,495 | 33,510 | ||||||
Other securities | 32,956 | |||||||
66,466 | ||||||||
Real estate 1.08% | ||||||||
American Tower Corp. REIT | 236,800 | 33,784 | ||||||
Other securities | 4,281 | |||||||
38,065 | ||||||||
Miscellaneous 4.66% | ||||||||
Other common stocks in initial period of acquisition | 164,831 | |||||||
Total common stocks (cost: $2,398,030,000) | 3,215,530 | |||||||
Preferred securities 0.04% | ||||||||
Miscellaneous 0.04% | ||||||||
Meituan Corp., Series C, 8.00% noncumulative1,2,4 | 239,754 | 1,340 | ||||||
Total preferred securities (cost: $1,340,000) | 1,340 | |||||||
Rights & warrants 1.78% | ||||||||
Consumer staples 1.58% | ||||||||
Hypermarcas SA, ordinary nominative1,3 | 5,330,000 | 44,024 | ||||||
Other securities | 11,891 | |||||||
55,915 | ||||||||
Consumer discretionary 0.20% | ||||||||
Other securities | 6,895 | |||||||
Total rights & warrants (cost: $40,814,000) | 62,810 |
60 | American Funds Insurance Series |
New World Fund
Bonds, notes & other debt instruments 2.75% | Principal amount (000) | Value (000) | ||||||
Bonds & notes of governments & government agencies outside the U.S. 2.27% | ||||||||
Other securities | $ | 80,078 | ||||||
Corporate bonds & notes 0.45% | ||||||||
Materials 0.01% | ||||||||
Vale SA 6.25% 2026 | $ | 405 | 470 | |||||
Other 0.44% | ||||||||
Other securities | 15,552 | |||||||
U.S. Treasury bonds & notes 0.03% | ||||||||
U.S. Treasury 0.03% | ||||||||
Other securities | 999 | |||||||
Total bonds, notes & other debt instruments (cost: $93,990,000) | 97,099 | |||||||
Short-term securities 4.85% | ||||||||
Bank of Montreal 1.70% due 3/15/2018 | 25,000 | 25,002 | ||||||
Federal Home Loan Bank 1.25%–1.31% due 2/5/2018–3/28/2018 | 76,900 | 76,758 | ||||||
Liberty Street Funding Corp. 1.78% due 3/21/20183 | 25,000 | 24,901 | ||||||
Other securities | 44,711 | |||||||
Total short-term securities (cost: $171,305,000) | 171,372 | |||||||
Total investment securities 100.44% (cost: $2,705,479,000) | 3,548,151 | |||||||
Other assets less liabilities (0.44)% | (15,438 | ) | ||||||
Net assets 100.00% | $ | 3,532,713 |
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.
American Funds Insurance Series | 61 |
New World Fund
Forward currency contracts
Unrealized | ||||||||||||||||
appreciation | ||||||||||||||||
Contract amount | (depreciation) | |||||||||||||||
Purchases | Sales | at 12/31/2017 | ||||||||||||||
(000) | (000) | Counterparty | Settlement date | (000) | ||||||||||||
USD116 | MXN2,100 | JPMorgan Chase | 1/4/2018 | $ 9 | ||||||||||||
USD910 | BRL3,000 | JPMorgan Chase | 1/5/2018 | 6 | ||||||||||||
USD4,477 | INR289,525 | JPMorgan Chase | 1/5/2018 | (55 | ) | |||||||||||
USD1,426 | BRL4,600 | JPMorgan Chase | 1/11/2018 | 42 | ||||||||||||
USD514 | BRL1,700 | JPMorgan Chase | 1/16/2018 | 3 | ||||||||||||
USD687 | INR44,350 | Citibank | 1/16/2018 | (7 | ) | |||||||||||
USD1,224 | ZAR16,605 | Goldman Sachs | 1/17/2018 | (115 | ) | |||||||||||
USD314 | EUR265 | HSBC Bank | 1/18/2018 | (4 | ) | |||||||||||
USD450 | TRY1,775 | Bank of America, N.A. | 1/18/2018 | (15 | ) | |||||||||||
USD1,452 | ZAR19,250 | Barclays Bank PLC | 1/24/2018 | (97 | ) | |||||||||||
USD1,369 | JPY153,000 | Bank of America, N.A. | 2/15/2018 | 8 | ||||||||||||
USD562 | JPY63,000 | UBS AG | 2/23/2018 | 1 | ||||||||||||
USD633 | EUR530 | HSBC Bank | 2/23/2018 | (5 | ) | |||||||||||
USD1,807 | INR120,000 | Citibank | 3/26/2018 | (52 | ) | |||||||||||
USD151 | EUR125 | Bank of America, N.A. | 12/13/2018 | (2 | ) | |||||||||||
USD1,828 | EUR1,520 | Bank of America, N.A. | 12/13/2018 | (40 | ) | |||||||||||
$(323 | ) |
1 | 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 $2,022,785,000, which represented 57.26% of the net assets of the fund. This amount includes $1,899,212,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Security did not produce income during the last 12 months. |
3 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $160,176,000, which represented 4.53% of the net assets of the fund. |
4 | Value determined using significant unobservable inputs. |
Key to abbreviations and symbol
ADR = American Depositary Receipts
BRL = Brazilian reais
EUR = Euros
GDR = Global Depositary Receipts
INR = Indian rupees
JPY = Japanese yen
MXN = Mexican pesos
TRY = Turkish lira
USD/$ = U.S. dollars
ZAR = South African rand
See Notes to Financial Statements
62 | American Funds Insurance Series |
Blue Chip Income and Growth Fund
Summary investment portfolio December 31, 2017
Common stocks 96.25% | Shares | Value (000) | ||||||
Health care 19.17% | ||||||||
AbbVie Inc. | 6,761,500 | $ | 653,905 | |||||
Amgen Inc. | 2,366,500 | 411,534 | ||||||
Teva Pharmaceutical Industries Ltd. (ADR) | 10,833,800 | 205,300 | ||||||
Abbott Laboratories | 2,945,000 | 168,071 | ||||||
Gilead Sciences, Inc. | 1,808,012 | 129,526 | ||||||
Medtronic PLC | 900,000 | 72,675 | ||||||
Bristol-Myers Squibb Co. | 1,125,000 | 68,940 | ||||||
Other securities | 87,621 | |||||||
1,797,572 | ||||||||
Financials 13.44% | ||||||||
JPMorgan Chase & Co. | 3,884,900 | 415,451 | ||||||
Wells Fargo & Co. | 6,013,000 | 364,809 | ||||||
Prudential Financial, Inc. | 2,649,000 | 304,582 | ||||||
American International Group, Inc. | 1,506,300 | 89,745 | ||||||
Other securities | 85,952 | |||||||
1,260,539 | ||||||||
Information technology 11.95% | ||||||||
Intel Corp. | 8,432,200 | 389,230 | ||||||
Texas Instruments Inc. | 2,630,000 | 274,677 | ||||||
Microsoft Corp. | 2,184,000 | 186,819 | ||||||
Apple Inc. | 694,180 | 117,476 | ||||||
Western Union Co. | 5,375,000 | 102,179 | ||||||
Other securities | 50,629 | |||||||
1,121,010 | ||||||||
Industrials 11.36% | ||||||||
CSX Corp. | 4,616,500 | 253,954 | ||||||
General Electric Co. | 10,209,000 | 178,147 | ||||||
General Dynamics Corp. | 861,000 | 175,170 | ||||||
Illinois Tool Works Inc. | 650,000 | 108,453 | ||||||
Union Pacific Corp. | 750,000 | 100,575 | ||||||
Boeing Co. | 329,000 | 97,025 | ||||||
Rockwell Automation | 450,000 | 88,358 | ||||||
United Technologies Corp. | 500,000 | 63,785 | ||||||
1,065,467 | ||||||||
Consumer staples 10.68% | ||||||||
Altria Group, Inc. | 2,754,000 | 196,663 | ||||||
Kimberly-Clark Corp. | 1,395,800 | 168,417 | ||||||
Kellogg Co. | 2,152,800 | 146,347 | ||||||
Philip Morris International Inc. | 1,250,000 | 132,063 | ||||||
Mondelez International, Inc. | 1,580,000 | 67,624 | ||||||
Kraft Heinz Co. | 776,666 | 60,394 | ||||||
Other securities | 229,727 | |||||||
1,001,235 | ||||||||
Telecommunication services 8.47% | ||||||||
Verizon Communications Inc. | 9,609,171 | 508,614 | ||||||
AT&T Inc. | 4,181,000 | 162,557 | ||||||
CenturyLink, Inc. | 7,398,800 | 123,412 | ||||||
794,583 | ||||||||
Energy 7.82% | ||||||||
Canadian Natural Resources, Ltd. | 6,284,000 | 224,464 | ||||||
Exxon Mobil Corp. | 2,054,000 | 171,797 | ||||||
EOG Resources, Inc. | 1,555,000 | 167,800 | ||||||
Halliburton Co. | 2,419,700 | 118,251 | ||||||
Other securities | 51,217 | |||||||
733,529 |
American Funds Insurance Series | 63 |
Blue Chip Income and Growth Fund
Common stocks (continued) | Shares | Value (000) | ||||||
Consumer discretionary 5.55% | ||||||||
Twenty-First Century Fox, Inc., Class A | 3,955,900 | $ | 136,597 | |||||
Marriott International, Inc., Class A | 671,000 | 91,075 | ||||||
McDonald’s Corp. | 500,000 | 86,060 | ||||||
General Motors Co. | 2,000,000 | 81,980 | ||||||
Viacom Inc., Class B | 2,112,850 | 65,097 | ||||||
Royal Caribbean Cruises Ltd. | 500,000 | 59,640 | ||||||
520,449 | ||||||||
Materials 2.77% | ||||||||
Freeport-McMoRan Inc.1 | 6,163,000 | 116,851 | ||||||
Other securities | 142,876 | |||||||
259,727 | ||||||||
Other 1.19% | ||||||||
Other securities | 112,331 | |||||||
Miscellaneous 3.85% | ||||||||
Other common stocks in initial period of acquisition | 361,132 | |||||||
Total common stocks (cost: $6,732,682,000) | 9,027,574 | |||||||
Short-term securities 3.72% | Principal amount (000) | |||||||
Cisco Systems, Inc. 1.23%–1.60% due 1/10/2018–3/6/20182 | $ | 104,400 | 104,238 | |||||
Federal Home Loan Bank 1.09%–1.24% due 1/10/2018–1/26/2018 | 75,800 | 75,772 | ||||||
General Electric Co. 1.42% due 1/2/2018 | 21,200 | 21,197 | ||||||
Microsoft Corp. 1.41% due 2/14/20182 | 25,300 | 25,252 | ||||||
Other securities | 122,735 | |||||||
Total short-term securities (cost: $349,269,000) | 349,194 | |||||||
Total investment securities 99.97% (cost: $7,081,951,000) | 9,376,768 | |||||||
Other assets less liabilities 0.03% | 3,081 | |||||||
Net assets 100.00% | $ | 9,379,849 |
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 | 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 $166,417,000, which represented 1.77% of the net assets of the fund. |
Key to abbreviation
ADR = American Depositary Receipts
See Notes to Financial Statements
64 | American Funds Insurance Series |
Global Growth and Income Fund
Summary investment portfolio December 31, 2017
Common stocks 93.68% | Shares | Value (000) | ||||||
Information technology 23.74% | ||||||||
Nintendo Co., Ltd.1 | 249,000 | $ | 90,649 | |||||
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 9,226,800 | 70,899 | ||||||
Microsoft Corp. | 807,000 | 69,031 | ||||||
Broadcom Ltd. | 137,000 | 35,195 | ||||||
United Microelectronics Corp.1 | 68,320,000 | 32,489 | ||||||
AAC Technologies Holdings Inc.1 | 1,503,500 | 26,739 | ||||||
Murata Manufacturing Co., Ltd.1 | 190,000 | 25,395 | ||||||
Facebook, Inc., Class A2 | 120,000 | 21,175 | ||||||
Apple Inc. | 118,000 | 19,969 | ||||||
TE Connectivity Ltd. | 200,000 | 19,008 | ||||||
Alibaba Group Holding Ltd. (ADR)2 | 104,000 | 17,933 | ||||||
TEMENOS Group AG (Switzerland)1 | 128,000 | 16,381 | ||||||
Alphabet Inc., Class C2 | 9,000 | 9,418 | ||||||
Alphabet Inc., Class A2 | 6,000 | 6,320 | ||||||
MediaTek Inc.1 | 1,465,000 | 14,442 | ||||||
Other securities | 24,047 | |||||||
499,090 | ||||||||
Financials 10.79% | ||||||||
Prudential PLC1 | 765,000 | 19,668 | ||||||
Wells Fargo & Co. | 272,000 | 16,502 | ||||||
Blackstone Group LP | 453,250 | 14,513 | ||||||
Other securities | 176,199 | |||||||
226,882 | ||||||||
Industrials 10.63% | ||||||||
Airbus SE, non-registered shares1 | 503,000 | 49,951 | ||||||
Grupo Aeroportuario del Pacífico SAB de CV | 2,930,000 | 30,114 | ||||||
Lockheed Martin Corp. | 82,300 | 26,422 | ||||||
Boeing Co. | 87,000 | 25,657 | ||||||
Deutsche Post AG1 | 523,000 | 24,845 | ||||||
Aeroflot - Russian Airlines PJSC1 | 6,632,000 | 15,914 | ||||||
Ryanair Holdings PLC (ADR)2 | 141,375 | 14,730 | ||||||
Other securities | 35,956 | |||||||
223,589 | ||||||||
Consumer staples 8.80% | ||||||||
British American Tobacco PLC1 | 1,285,000 | 86,725 | ||||||
Nestlé SA1 | 558,700 | 48,010 | ||||||
Other securities | 50,309 | |||||||
185,044 | ||||||||
Consumer discretionary 8.45% | ||||||||
Home Depot, Inc. | 122,000 | 23,123 | ||||||
Vivendi SA1 | 715,200 | 19,232 | ||||||
Amazon.com, Inc.2 | 16,000 | 18,711 | ||||||
Sony Corp.1 | 375,000 | 16,845 | ||||||
Nitori Holdings Co., Ltd.1 | 105,000 | 14,972 | ||||||
Other securities | 84,714 | |||||||
177,597 | ||||||||
Health care 7.15% | ||||||||
UnitedHealth Group Inc. | 215,100 | 47,421 | ||||||
Centene Corp.2 | 212,000 | 21,387 | ||||||
Hypermarcas SA, ordinary nominative | 1,662,000 | 18,037 | ||||||
Other securities | 63,489 | |||||||
150,334 |
American Funds Insurance Series | 65 |
Global Growth and Income Fund
Common stocks (continued) | Shares | Value (000) | ||||||
Energy 6.18% | ||||||||
Reliance Industries Ltd.1 | 2,915,148 | $ | 42,056 | |||||
BP PLC1 | 4,570,206 | 32,231 | ||||||
Royal Dutch Shell PLC, Class B (ADR) | 242,000 | 16,526 | ||||||
Royal Dutch Shell PLC, Class B1 | 325,000 | 10,961 | ||||||
Royal Dutch Shell PLC, Class A (ADR) | 7,395 | 494 | ||||||
Coal India Ltd.1 | 4,310,000 | 17,756 | ||||||
Other securities | 9,987 | |||||||
130,011 | ||||||||
Materials 5.87% | ||||||||
Century Aluminum Co.2 | 1,650,000 | 32,406 | ||||||
Randgold Resources Ltd.1 | 271,100 | 26,895 | ||||||
James Hardie Industries PLC (CDI)1 | 850,000 | 14,963 | ||||||
Other securities | 49,157 | |||||||
123,421 | ||||||||
Real estate 3.48% | ||||||||
Gaming and Leisure Properties, Inc. REIT | 604,000 | 22,348 | ||||||
MGM Growth Properties LLC REIT, Class A | 676,200 | 19,711 | ||||||
Other securities | 31,028 | |||||||
73,087 | ||||||||
Utilities 2.24% | ||||||||
Ørsted AS1 | 491,552 | 26,780 | ||||||
Other securities | 20,311 | |||||||
47,091 | ||||||||
Telecommunication services 1.74% | ||||||||
Verizon Communications Inc. | 415,000 | 21,966 | ||||||
Other securities | 14,635 | |||||||
36,601 | ||||||||
Miscellaneous 4.61% | ||||||||
Other common stocks in initial period of acquisition | 96,833 | |||||||
Total common stocks (cost: $1,460,247,000) | 1,969,580 | |||||||
Convertible bonds 0.31% | Principal amount (000) | |||||||
Miscellaneous 0.31% | ||||||||
Other convertible bonds in initial period of acquisition | 6,622 | |||||||
Total convertible bonds (cost: $6,003,000) | 6,622 | |||||||
Bonds, notes & other debt instruments 2.00% | ||||||||
Corporate bonds & notes 1.95% | ||||||||
Telecommunication services 1.67% | ||||||||
Sprint Corp. 7.25% 2021 | $ | 33,000 | 35,021 | |||||
Health care 0.28% | ||||||||
Other securities | 5,975 | |||||||
U.S. Treasury bonds & notes 0.05% | ||||||||
U.S. Treasury 0.05% | ||||||||
Other securities | 999 | |||||||
Total bonds, notes & other debt instruments (cost: $38,839,000) | 41,995 |
66 | American Funds Insurance Series |
Global Growth and Income Fund
Short-term securities 4.19% | Principal amount (000) | Value (000) | ||||||
Caisse d’Amortissement de la Dette Sociale 1.35% due 1/4/20183 | $ | 15,000 | $ | 14,997 | ||||
Canadian Imperial Holdings Inc. 1.52% due 3/8/2018 | 25,000 | 24,926 | ||||||
Federal Home Loan Bank 1.28% due 2/5/2018 | 34,700 | 34,660 | ||||||
Other securities | 13,546 | |||||||
Total short-term securities (cost: $88,134,000) | 88,129 | |||||||
Total investment securities 100.18% (cost: $1,593,223,000) | 2,106,326 | |||||||
Other assets less liabilities (0.18)% | (3,880 | ) | ||||||
Net assets 100.00% | $ | 2,102,446 |
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 | 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 $1,083,748,000, which represented 51.55% of the net assets of the fund. This entire amount relates to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Security did not produce income during the last 12 months. |
3 | Acquired in a transaction exempt from registration under Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $18,995,000, which represented .90% of the net assets of the fund. |
Key to abbreviations
ADR = American Depositary Receipts
CDI = CREST Depository Interest
See Notes to Financial Statements
American Funds Insurance Series | 67 |
Growth-Income Fund
Summary investment portfolio December 31, 2017
Common stocks 94.11% | Shares | Value (000) | ||||||
Information technology 16.93% | ||||||||
Microsoft Corp. | 8,905,427 | $ | 761,770 | |||||
Alphabet Inc., Class A1 | 373,700 | 393,655 | ||||||
Alphabet Inc., Class C1 | 309,284 | 323,635 | ||||||
Texas Instruments Inc. | 4,723,259 | 493,297 | ||||||
Broadcom Ltd. | 1,715,390 | 440,684 | ||||||
Intel Corp. | 9,418,000 | 434,735 | ||||||
Apple Inc. | 1,793,300 | 303,480 | ||||||
Accenture PLC, Class A | 1,654,500 | 253,287 | ||||||
QUALCOMM Inc. | 3,519,175 | 225,298 | ||||||
Other securities | 1,566,268 | |||||||
5,196,109 | ||||||||
Consumer discretionary 16.28% | ||||||||
Amazon.com, Inc.1 | 1,044,100 | 1,221,044 | ||||||
Netflix, Inc.1 | 3,533,077 | 678,209 | ||||||
Twenty-First Century Fox, Inc., Class A | 8,541,000 | 294,921 | ||||||
Twenty-First Century Fox, Inc., Class B | 595,000 | 20,301 | ||||||
Comcast Corp., Class A | 6,346,200 | 254,165 | ||||||
Home Depot, Inc. | 1,243,000 | 235,586 | ||||||
NIKE, Inc., Class B | 2,954,200 | 184,785 | ||||||
Other securities | 2,107,272 | |||||||
4,996,283 | ||||||||
Health care 14.86% | ||||||||
AbbVie Inc. | 8,376,600 | 810,101 | ||||||
Amgen Inc. | 2,761,983 | 480,309 | ||||||
UnitedHealth Group Inc. | 1,513,596 | 333,687 | ||||||
Stryker Corp. | 2,006,441 | 310,677 | ||||||
Gilead Sciences, Inc. | 4,284,100 | 306,913 | ||||||
Express Scripts Holding Co.1 | 3,627,500 | 270,757 | ||||||
Humana Inc. | 938,500 | 232,814 | ||||||
Abbott Laboratories | 3,808,000 | 217,323 | ||||||
Merck & Co., Inc. | 3,714,380 | 209,008 | ||||||
Illumina, Inc.1 | 867,550 | 189,551 | ||||||
Other securities | 1,198,546 | |||||||
4,559,686 | ||||||||
Financials 10.94% | ||||||||
JPMorgan Chase & Co. | 4,639,300 | 496,127 | ||||||
Wells Fargo & Co. | 4,306,000 | 261,245 | ||||||
Bank of New York Mellon Corp. | 4,599,400 | 247,724 | ||||||
Intercontinental Exchange, Inc. | 2,541,065 | 179,298 | ||||||
Other securities | 2,172,144 | |||||||
3,356,538 | ||||||||
Industrials 9.48% | ||||||||
CSX Corp. | 5,387,000 | 296,339 | ||||||
BWX Technologies, Inc. | 4,772,174 | 288,669 | ||||||
General Dynamics Corp. | 1,342,100 | 273,050 | ||||||
Airbus SE, non-registered shares2 | 2,117,764 | 210,306 | ||||||
Textron Inc. | 3,456,100 | 195,581 | ||||||
Union Pacific Corp. | 1,404,933 | 188,402 | ||||||
General Electric Co. | 10,538,000 | 183,888 | ||||||
Other securities | 1,274,657 | |||||||
2,910,892 |
68 | American Funds Insurance Series |
Growth-Income Fund
Common stocks | Shares | Value (000) | ||||||
Consumer staples 7.51% | ||||||||
British American Tobacco PLC2 | 3,746,100 | $ | 252,826 | |||||
British American Tobacco PLC (ADR) | 494,440 | 33,122 | ||||||
Philip Morris International Inc. | 2,702,430 | 285,512 | ||||||
Coca-Cola Co. | 5,964,900 | 273,670 | ||||||
Other securities | 1,459,289 | |||||||
2,304,419 | ||||||||
Energy 6.38% | ||||||||
TOTAL SA2 | 4,561,625 | 251,689 | ||||||
EOG Resources, Inc. | 2,277,300 | 245,743 | ||||||
Chevron Corp. | 1,646,900 | 206,175 | ||||||
Other securities | 1,254,386 | |||||||
1,957,993 | ||||||||
Materials 4.46% | ||||||||
Celanese Corp., Series A | 2,573,233 | 275,542 | ||||||
Vale SA, ordinary nominative (ADR) | 17,367,884 | 212,409 | ||||||
Vale SA, ordinary nominative | 4,147,848 | 50,343 | ||||||
DowDuPont Inc. | 3,554,100 | 253,123 | ||||||
Freeport-McMoRan Inc.1 | 9,055,000 | 171,683 | ||||||
Other securities | 405,702 | |||||||
1,368,802 | ||||||||
Telecommunication services 1.96% | ||||||||
Verizon Communications Inc. | 10,912,400 | 577,593 | ||||||
Other securities | 23,231 | |||||||
600,824 | ||||||||
Real estate 1.74% | ||||||||
Other securities | 535,421 | |||||||
Utilities 0.82% | ||||||||
Sempra Energy | 1,824,600 | 195,086 | ||||||
Other securities | 56,171 | |||||||
251,257 | ||||||||
Mutual funds 0.18% | ||||||||
Other securities | 55,129 | |||||||
Miscellaneous 2.57% | ||||||||
Other common stocks in initial period of acquisition | 789,777 | |||||||
Total common stocks (cost: $20,214,067,000) | 28,883,130 | |||||||
Convertible stocks 0.04% | ||||||||
Financials 0.02% | ||||||||
Other securities | 5,450 | |||||||
Miscellaneous 0.02% | ||||||||
Other convertible stocks in initial period of acquisition | 6,192 | |||||||
Total convertible stocks (cost: $11,900,000) | 11,642 | |||||||
Convertible bonds 0.35% | Principal amount (000) | |||||||
Other 0.35% | ||||||||
Other securities | 107,354 | |||||||
Total convertible bonds (cost: $71,028,000) | 107,354 |
American Funds Insurance Series | 69 |
Growth-Income Fund
Bonds, notes & other debt instruments 0.18% | Principal amount (000) | Value (000) | ||||||
U.S. Treasury bonds & notes 0.18% | ||||||||
U.S. Treasury 0.18% | ||||||||
Other securities | $ | 56,489 | ||||||
Total bonds, notes & other debt instruments (cost: $60,201,000) | 56,489 | |||||||
Short-term securities 5.38% | ||||||||
Apple Inc. 1.50% due 2/20/20183 | $ | 50,000 | 49,892 | |||||
Chariot Funding, LLC 1.45%–1.50% due 3/14/2018–3/19/20183 | 48,000 | 47,822 | ||||||
Coca-Cola Co. 1.26% due 1/31/20183 | 50,000 | 49,932 | ||||||
Federal Home Loan Bank 1.12%–1.31% due 1/3/2018–3/2/2018 | 323,700 | 323,272 | ||||||
Freddie Mac 1.08%–1.28% due 1/26/2018–4/6/2018 | 223,948 | 223,415 | ||||||
Microsoft Corp. 1.30% due 1/23/20183 | 59,300 | 59,241 | ||||||
Other securities | 897,684 | |||||||
Total short-term securities (cost: $1,651,541,000) | 1,651,258 | |||||||
Total investment securities 100.06% (cost: $22,008,737,000) | 30,709,873 | |||||||
Other assets less liabilities (0.06)% | (17,511 | ) | ||||||
Net assets 100.00% | $ | 30,692,362 |
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 security in “Other securities” (with a value of $5,450,000, an aggregate cost of $6,000,000, and which represented .02% of the net assets of the fund) was acquired on 6/28/2012 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject it to legal or contractual restrictions on resale.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Security did not produce income during the last 12 months. |
2 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous” and “Other securities,” was $2,958,273,000, which represented 9.64% of the net assets of the fund. This amount includes $2,749,134,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
3 | Acquired 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 $1,049,318,000, which represented 3.42% of the net assets of the fund. |
Key to abbreviation
ADR = American Depositary Receipts
See Notes to Financial Statements
70 | American Funds Insurance Series |
International Growth and Income Fund
Summary investment portfolio December 31, 2017
Common stocks 90.99% | Shares | Value (000) | ||||||
Financials 22.93% | ||||||||
HDFC Bank Ltd.1 | 1,228,800 | $ | 36,338 | |||||
Banco Santander, SA1 | 4,488,061 | 29,430 | ||||||
Zurich Insurance Group AG1 | 92,200 | 28,041 | ||||||
KB Financial Group Inc.1 | 356,500 | 21,078 | ||||||
Intesa Sanpaolo SpA1 | 5,900,000 | 19,568 | ||||||
Sberbank of Russia PJSC (ADR)1 | 1,141,660 | 19,324 | ||||||
Prudential PLC1 | 738,000 | 18,974 | ||||||
St. James’s Place PLC1 | 1,048,000 | 17,323 | ||||||
UniCredit SpA1,2 | 914,400 | 17,035 | ||||||
AIA Group Ltd.1 | 1,833,000 | 15,632 | ||||||
Sumitomo Mitsui Financial Group, Inc.1 | 308,000 | 13,302 | ||||||
Itaú Unibanco Holding SA, preferred nominative (ADR) | 991,300 | 12,887 | ||||||
Sampo Oyj, Class A1 | 203,000 | 11,152 | ||||||
Lloyds Banking Group PLC1 | 11,968,000 | 10,959 | ||||||
Other securities | 64,168 | |||||||
335,211 | ||||||||
Consumer staples 9.11% | ||||||||
British American Tobacco PLC1 | 437,600 | 29,534 | ||||||
Pernod Ricard SA1 | 128,650 | 20,364 | ||||||
Philip Morris International Inc. | 153,475 | 16,215 | ||||||
Imperial Brands PLC1 | 316,016 | 13,505 | ||||||
Other securities | 53,616 | |||||||
133,234 | ||||||||
Industrials 8.38% | ||||||||
Shanghai International Airport Co., Ltd., Class A1 | 5,134,562 | 35,457 | ||||||
Airbus SE, non-registered shares1 | 253,960 | 25,220 | ||||||
ASSA ABLOY AB, Class B1 | 681,100 | 14,133 | ||||||
Other securities | 47,672 | |||||||
122,482 | ||||||||
Utilities 8.02% | ||||||||
Ørsted AS1 | 497,000 | 27,077 | ||||||
EDP - Energias de Portugal, SA1 | 6,947,820 | 24,049 | ||||||
Korea Electric Power Corp.1 | 346,800 | 12,358 | ||||||
Power Assets Holdings Ltd.1 | 1,313,000 | 11,081 | ||||||
CK Infrastructure Holdings Ltd.1 | 1,282,000 | 11,006 | ||||||
Other securities | 31,740 | |||||||
117,311 | ||||||||
Information technology 7.86% | ||||||||
Samsung Electronics Co., Ltd.1 | 14,996 | 35,628 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 3,840,000 | 29,507 | ||||||
ASML Holding NV1 | 68,600 | 11,901 | ||||||
Flex Ltd.2 | 647,500 | 11,648 | ||||||
Other securities | 26,180 | |||||||
114,864 | ||||||||
Health care 7.72% | ||||||||
Novartis AG1 | 341,145 | 28,841 | ||||||
Hikma Pharmaceuticals PLC1 | 1,317,700 | 20,164 | ||||||
Fresenius SE & Co. KGaA1 | 165,000 | 12,847 | ||||||
Teva Pharmaceutical Industries Ltd. (ADR) | 662,000 | 12,545 | ||||||
Daiichi Sankyo Co., Ltd.1 | 451,900 | 11,770 | ||||||
Other securities | 26,718 | |||||||
112,885 |
American Funds Insurance Series | 71 |
International Growth and Income Fund
Common stocks (continued) | Shares | Value (000) | ||||||
Consumer discretionary 7.36% | ||||||||
Toyota Motor Corp.1 | 226,000 | $ | 14,472 | |||||
LVMH Moët Hennessy-Louis Vuitton SE1 | 48,000 | 14,100 | ||||||
Naspers Ltd., Class N1 | 41,000 | 11,424 | ||||||
Other securities | 67,608 | |||||||
107,604 | ||||||||
Real estate 6.09% | ||||||||
CK Asset Holdings Ltd.1 | 3,833,348 | 33,507 | ||||||
Sun Hung Kai Properties Ltd.1 | 1,760,000 | 29,318 | ||||||
Daito Trust Construction Co., Ltd.1 | 95,500 | 19,453 | ||||||
Other securities | 6,799 | |||||||
89,077 | ||||||||
Energy 5.53% | ||||||||
Royal Dutch Shell PLC, Class A1 | 1,780,359 | 59,601 | ||||||
TOTAL SA1 | 297,739 | 16,428 | ||||||
Other securities | 4,763 | |||||||
80,792 | ||||||||
Materials 5.03% | ||||||||
Rio Tinto PLC1 | 475,800 | 25,111 | ||||||
Yara International ASA1 | 343,000 | 15,700 | ||||||
Other securities | 32,641 | |||||||
73,452 | ||||||||
Telecommunication services 2.96% | ||||||||
BT Group PLC1 | 5,623,761 | 20,591 | ||||||
Nippon Telegraph and Telephone Corp.1 | 409,800 | 19,283 | ||||||
Other securities | 3,419 | |||||||
43,293 | ||||||||
Total common stocks (cost: $1,140,729,000) | 1,330,205 | |||||||
Bonds, notes & other debt instruments 2.52% | Principal amount (000) | |||||||
Corporate bonds & notes 1.26% | ||||||||
Other 1.26% | ||||||||
Other securities | 18,499 | |||||||
Total corporate bonds & notes | 18,499 | |||||||
Bonds & notes of governments & government agencies outside the U.S. 1.23% | ||||||||
Other securities | 17,993 | |||||||
U.S. Treasury bonds & notes 0.03% | ||||||||
U.S. Treasury 0.03% | ||||||||
U.S. Treasury 0.875% 2018 | $ | 420 | 419 | |||||
Total bonds, notes & other debt instruments (cost: $33,615,000) | 36,911 |
72 | American Funds Insurance Series |
International Growth and Income Fund
Short-term securities 6.39% | Principal amount (000) | Value (000) | ||||||
Bank of Tokyo-Mitsubishi UFJ, Ltd. 1.53% due 1/18/2018 | $ | 21,000 | $ | 20,982 | ||||
U.S. Treasury Bills 1.50% due 6/28/2018 | 26,300 | 26,105 | ||||||
United Parcel Service Inc. 1.62% due 3/19/20183 | 20,000 | 19,933 | ||||||
Victory Receivables Corp. 1.43% due 1/16/20183 | 20,900 | 20,884 | ||||||
Other securities | 5,493 | |||||||
Total short-term securities (cost: $93,402,000) | 93,397 | |||||||
Total investment securities 99.90% (cost: $1,267,746,000) | 1,460,513 | |||||||
Other assets less liabilities 0.10% | 1,454 | |||||||
Net assets 100.00% | $ | 1,461,967 |
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. One security in “Other securities” (with a value of $4,549,000, an aggregate cost of $4,634,000, and which represented .31% of the net assets of the fund) was acquired on 12/18/2017 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject it to legal or contractual restrictions on resale.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $1,229,130,000, which represented 84.07% of the net assets of the fund. This amount includes $1,188,243,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Security did not produce income during the last 12 months. |
3 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $61,360,000, which represented 4.20% of the net assets of the fund. |
Key to abbreviation
ADR = American Depositary Receipts
See Notes to Financial Statements
American Funds Insurance Series | 73 |
Capital Income Builder
Summary investment portfolio December 31, 2017
Common stocks 68.87% | Shares | Value (000) | ||||||
Energy 10.19% | ||||||||
Occidental Petroleum Corp. | 146,900 | $ | 10,820 | |||||
Schlumberger Ltd. | 119,800 | 8,073 | ||||||
Royal Dutch Shell PLC, Class B1 | 213,240 | 7,192 | ||||||
Royal Dutch Shell PLC, Class B (ADR) | 8,500 | 581 | ||||||
Royal Dutch Shell PLC, Class A1 | 101 | 3 | ||||||
Enbridge Inc. (CAD denominated) | 174,970 | 6,843 | ||||||
Enbridge Inc. (CAD denominated)1,2 | 12,969 | 497 | ||||||
Williams Companies, Inc. | 215,800 | 6,580 | ||||||
Kinder Morgan, Inc. | 359,000 | 6,487 | ||||||
Inter Pipeline Ltd. | 260,000 | 5,384 | ||||||
Helmerich & Payne, Inc. | 76,300 | 4,932 | ||||||
Other securities | 3,170 | |||||||
60,562 | ||||||||
Financials 10.13% | ||||||||
Wells Fargo & Co. | 124,600 | 7,559 | ||||||
CME Group Inc., Class A | 39,416 | 5,757 | ||||||
Sampo Oyj, Class A1 | 95,858 | 5,266 | ||||||
Zurich Insurance Group AG1 | 16,306 | 4,959 | ||||||
Other securities | 36,663 | |||||||
60,204 | ||||||||
Consumer staples 8.82% | ||||||||
Diageo PLC1 | 259,500 | 9,497 | ||||||
Philip Morris International Inc. | 86,020 | 9,088 | ||||||
Coca-Cola Co. | 129,500 | 5,942 | ||||||
British American Tobacco PLC1 | 79,700 | 5,379 | ||||||
Imperial Brands PLC1 | 123,800 | 5,291 | ||||||
Other securities | 17,225 | |||||||
52,422 | ||||||||
Information technology 8.46% | ||||||||
Microsoft Corp. | 132,120 | 11,302 | ||||||
QUALCOMM Inc. | 172,400 | 11,037 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 1,005,800 | 7,729 | ||||||
Intel Corp. | 151,900 | 7,012 | ||||||
Other securities | 13,193 | |||||||
50,273 | ||||||||
Consumer discretionary 6.27% | ||||||||
Las Vegas Sands Corp. | 176,600 | 12,272 | ||||||
Greene King PLC1 | 948,000 | 7,101 | ||||||
Sands China Ltd.1 | 944,000 | 4,859 | ||||||
Other securities | 13,041 | |||||||
37,273 | ||||||||
Telecommunication services 5.93% | ||||||||
Vodafone Group PLC1 | 4,255,100 | 13,442 | ||||||
HKT Trust and HKT Ltd., units1 | 4,775,340 | 6,090 | ||||||
Koninklijke KPN NV1 | 1,553,475 | 5,420 | ||||||
Other securities | 10,311 | |||||||
35,263 | ||||||||
Real estate 4.88% | ||||||||
Crown Castle International Corp. REIT | 76,900 | 8,537 | ||||||
Link REIT1 | 690,500 | 6,398 | ||||||
Digital Realty Trust, Inc. REIT | 51,200 | 5,832 | ||||||
Other securities | 8,255 | |||||||
29,022 |
74 | American Funds Insurance Series |
Capital Income Builder
Common stocks | Shares | Value (000) | ||||||
Utilities 4.44% | ||||||||
SSE PLC1 | 397,689 | $ | 7,085 | |||||
PG&E Corp. | 115,756 | 5,189 | ||||||
Other securities | 14,125 | |||||||
26,399 | ||||||||
Health care 3.93% | ||||||||
AstraZeneca PLC (ADR) | 113,500 | 3,939 | ||||||
AstraZeneca PLC1 | 39,300 | 2,697 | ||||||
Roche Holding AG, non-registered shares, nonvoting1 | 23,575 | 5,963 | ||||||
Other securities | 10,752 | |||||||
23,351 | ||||||||
Industrials 3.54% | ||||||||
Airbus SE, non-registered shares1 | 82,392 | 8,182 | ||||||
Boeing Co. | 17,600 | 5,190 | ||||||
Other securities | 7,680 | |||||||
21,052 | ||||||||
Materials 2.06% | ||||||||
DowDuPont Inc. | 84,800 | 6,040 | ||||||
Other securities | 6,231 | |||||||
12,271 | ||||||||
Miscellaneous 0.22% | ||||||||
Other common stocks in initial period of acquisition | 1,290 | |||||||
Total common stocks (cost: $377,538,000) | 409,382 | |||||||
Convertible stocks 2.52% | ||||||||
Real estate 2.52% | ||||||||
American Tower Corp., Series B, 5.50% depository share, convertible preferred 2018 | 100,400 | 12,625 | ||||||
Crown Castle International Corp., Series A, 7.00% convertible preferred 2020 | 2,231 | 2,342 | ||||||
14,967 | ||||||||
Total convertible stocks (cost: $14,048,000) | 14,967 | |||||||
Bonds, notes & other debt instruments 23.70% | Principal amount (000) | |||||||
U.S. Treasury bonds & notes 14.63% | ||||||||
U.S. Treasury 13.42% | ||||||||
U.S. Treasury 8.00% 2021 | $ | 5,500 | 6,704 | |||||
U.S. Treasury 8.125% 2021 | 8,200 | 9,933 | ||||||
U.S. Treasury 1.625% 2022 | 6,050 | 5,901 | ||||||
U.S. Treasury 1.75% 2022 | 5,015 | 4,925 | ||||||
U.S. Treasury 1.875% 2022 | 9,000 | 8,879 | ||||||
U.S. Treasury 2.00% 2022 | 15,000 | 14,872 | ||||||
U.S. Treasury 2.00% 2025 | 9,400 | 9,175 | ||||||
U.S. Treasury 0%–2.88% 2020–2047 | 24,078 | 19,350 | ||||||
79,739 | ||||||||
U.S. Treasury inflation-protected securities 1.21% | ||||||||
U.S. Treasury Inflation-Protected Securities 0.38%–0.63% 2025–20273 | 7,202 | 7,206 | ||||||
Total U.S. Treasury bonds & notes | 86,945 |
American Funds Insurance Series | 75 |
Capital Income Builder
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Mortgage-backed obligations 4.78% | ||||||||
Federal agency mortgage-backed obligations 4.70% | ||||||||
Fannie Mae 4.00% 20474 | $ | 13,899 | $ | 14,559 | ||||
Fannie Mae 4.50% 20484,5 | 6,270 | 6,664 | ||||||
Fannie Mae 4.00% 2046–20474 | 2,043 | 2,140 | ||||||
Other securities | 4,609 | |||||||
27,972 | ||||||||
Other 0.08% | ||||||||
Other securities | 461 | |||||||
Total mortgage-backed obligations | 28,433 | |||||||
Corporate bonds & notes 3.62% | ||||||||
Financials 1.19% | ||||||||
Wells Fargo & Co. 3.58%–4.60% 2021–2028 | 385 | 406 | ||||||
Other securities | 6,647 | |||||||
7,053 | ||||||||
Energy 0.52% | ||||||||
Kinder Morgan, Inc. 5.55% 2045 | 200 | 219 | ||||||
Schlumberger BV 3.625% 20222 | 200 | 206 | ||||||
Other securities | 2,653 | |||||||
3,078 | ||||||||
Consumer staples 0.35% | ||||||||
British American Tobacco PLC 3.557% 20272 | 600 | 602 | ||||||
Reynolds American Inc. 6.875% 2020 | 300 | 329 | ||||||
Other securities | 1,161 | |||||||
2,092 | ||||||||
Industrials 0.09% | ||||||||
General Electric Capital Corp. 5.50% 2020 | 150 | 160 | ||||||
Other securities | 395 | |||||||
555 | ||||||||
Information technology 0.09% | ||||||||
Microsoft Corp. 4.00% 2021 | 500 | 525 | ||||||
Other 1.38% | ||||||||
Other securities | 8,211 | |||||||
Total corporate bonds & notes | 21,514 | |||||||
Asset-backed obligations 0.67% | ||||||||
Other securities | 3,981 | |||||||
Total bonds, notes & other debt instruments (cost: $141,713,000) | 140,873 | |||||||
Short-term securities 5.71% | ||||||||
Cisco Systems, Inc. 1.23%–1.60% due 1/10/2018–3/6/20182 | 13,100 | 13,081 | ||||||
Federal Home Loan Bank 1.14% due 1/26/2018 | 8,500 | 8,493 | ||||||
General Electric Co. 1.42% due 1/2/2018 | 12,400 | 12,398 | ||||||
Total short-term securities (cost: $33,975,000) | 33,972 | |||||||
Total investment securities 100.80% (cost: $567,274,000) | 599,194 | |||||||
Other assets less liabilities (0.80)% | (4,737 | ) | ||||||
Net assets 100.00% | $ | 594,457 |
76 | American Funds Insurance Series |
Capital Income Builder
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 | 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 $207,660,000, which represented 34.93% of the net assets of the fund. This amount includes $207,107,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $18,622,000, which represented 3.13% of the net assets of the fund. |
3 | Index-linked bond whose principal amount moves with a government price index. |
4 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
5 | Purchased on a TBA basis. |
Key to abbreviations
ADR = American Depositary Receipts
CAD = Canadian dollars
TBA = To-be-announced
See Notes to Financial Statements
American Funds Insurance Series | 77 |
Asset Allocation Fund
Summary investment portfolio December 31, 2017
Common stocks 64.31% | Shares | Value (000) | ||||||
Information technology 17.88% | ||||||||
Microsoft Corp. | 10,520,000 | $ | 899,881 | |||||
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 15,001,000 | 594,790 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 8,600,000 | 66,083 | ||||||
ASML Holding NV (New York registered) | 2,502,100 | 434,915 | ||||||
VeriSign, Inc.2 | 3,140,000 | 359,342 | ||||||
Intel Corp. | 6,945,000 | 320,581 | ||||||
Broadcom Ltd. | 1,245,000 | 319,840 | ||||||
Facebook, Inc., Class A2 | 1,385,000 | 244,397 | ||||||
Intuit Inc. | 1,100,000 | 173,558 | ||||||
Western Digital Corp. | 2,100,000 | 167,013 | ||||||
Other securities | 1,008,412 | |||||||
4,588,812 | ||||||||
Health care 9.26% | ||||||||
UnitedHealth Group Inc. | 2,542,000 | 560,409 | ||||||
Johnson & Johnson | 2,850,000 | 398,202 | ||||||
Aetna Inc. | 1,600,000 | 288,624 | ||||||
Humana Inc. | 965,000 | 239,388 | ||||||
Express Scripts Holding Co.2 | 3,100,000 | 231,384 | ||||||
Other securities | 659,219 | |||||||
2,377,226 | ||||||||
Financials 9.12% | ||||||||
Chubb Ltd. | 2,410,000 | 352,173 | ||||||
JPMorgan Chase & Co. | 2,600,000 | 278,044 | ||||||
Arch Capital Group Ltd.2 | 2,632,000 | 238,907 | ||||||
First Republic Bank | 2,480,000 | 214,867 | ||||||
Wells Fargo & Co. | 3,406,400 | 206,666 | ||||||
Bank of America Corp. | 7,000,000 | 206,640 | ||||||
Citigroup Inc. | 2,750,000 | 204,628 | ||||||
Other securities | 638,415 | |||||||
2,340,340 | ||||||||
Consumer discretionary 6.76% | ||||||||
Comcast Corp., Class A | 9,350,000 | 374,467 | ||||||
Home Depot, Inc. | 1,500,000 | 284,295 | ||||||
Newell Brands Inc. | 7,168,500 | 221,507 | ||||||
Amazon.com, Inc.2 | 160,225 | 187,378 | ||||||
VF Corp. | 2,250,000 | 166,500 | ||||||
General Motors Co. | 3,500,000 | 143,465 | ||||||
Other securities | 357,289 | |||||||
1,734,901 | ||||||||
Energy 5.61% | ||||||||
Noble Energy, Inc. | 10,500,000 | 305,970 | ||||||
Weatherford International PLC2,3 | 56,000,000 | 233,520 | ||||||
Royal Dutch Shell PLC, Class B (ADR) | 2,412,000 | 164,716 | ||||||
Chevron Corp. | 1,279,750 | 160,212 | ||||||
Suncor Energy Inc. | 4,000,000 | 146,858 | ||||||
Other securities | 427,574 | |||||||
1,438,850 | ||||||||
Consumer staples 4.47% | ||||||||
Nestlé SA1 | 2,908,230 | 249,910 | ||||||
Nestlé SA (ADR) | 900,000 | 77,373 | ||||||
Philip Morris International Inc. | 2,375,000 | 250,919 | ||||||
Associated British Foods PLC1 | 4,600,000 | 174,876 | ||||||
British American Tobacco PLC1 | 2,357,400 | 159,102 | ||||||
Other securities | 233,411 | |||||||
1,145,591 |
78 | American Funds Insurance Series |
Asset Allocation Fund
Common stocks | Shares | Value (000) | ||||||
Materials 3.59% | ||||||||
DowDuPont Inc. | 5,877,000 | $ | 418,560 | |||||
LyondellBasell Industries NV | 2,200,000 | 242,704 | ||||||
Other securities | 260,758 | |||||||
922,022 | ||||||||
Industrials 3.38% | ||||||||
Lockheed Martin Corp. | 1,262,000 | 405,165 | ||||||
Boeing Co. | 1,239,000 | 365,393 | ||||||
Other securities | 95,622 | |||||||
866,180 | ||||||||
Real estate 1.28% | ||||||||
Other securities | 329,533 | |||||||
Telecommunication services 0.39% | ||||||||
Other securities | 99,225 | |||||||
Miscellaneous 2.57% | ||||||||
Other common stocks in initial period of acquisition | 660,297 | |||||||
Total common stocks (cost: $11,282,199,000) | 16,502,977 | |||||||
Convertible stocks 0.05% | ||||||||
Industrials 0.05% | ||||||||
Other securities | 12,787 | |||||||
Total convertible stocks (cost: $19,828,000) | 12,787 | |||||||
Bonds, notes & other debt instruments 26.66% | Principal amount (000) | |||||||
U.S. Treasury bonds & notes 11.42% | ||||||||
U.S. Treasury 9.31% | ||||||||
U.S. Treasury 1.50% 2019 | $ | 400,000 | 398,592 | |||||
U.S. Treasury 1.25% 20204 | 318,117 | 313,985 | ||||||
U.S. Treasury 2.875% 2046 | 147,158 | 150,997 | ||||||
U.S. Treasury 0.63%–4.75% 2018–2047 | 1,531,262 | 1,524,916 | ||||||
2,388,490 | ||||||||
�� | ||||||||
U.S. Treasury inflation-protected securities 2.11% | ||||||||
U.S. Treasury Inflation-Protected Security 0.625% 20245 | 215,862 | 219,605 | ||||||
U.S. Treasury Inflation-Protected Security 1.375% 20445 | 135,765 | 156,816 | ||||||
U.S. Treasury Inflation-Protected Securities 0.13%–2.38% 2021–20475 | 163,593 | 164,355 | ||||||
540,776 | ||||||||
Total U.S. Treasury bonds & notes | 2,929,266 | |||||||
Corporate bonds & notes 8.93% | ||||||||
Energy 1.77% | ||||||||
Noble Energy, Inc. 3.85%–4.95% 2028–2047 | 11,535 | 11,662 | ||||||
Other securities | 441,692 | |||||||
453,354 | ||||||||
Financials 1.37% | ||||||||
ACE INA Holdings Inc. 2.30%–4.35% 2020–2045 | 6,905 | 7,082 | ||||||
Citigroup Inc. 1.70%–3.20% 2018–2026 | 15,011 | 14,938 | ||||||
JPMorgan Chase & Co. 2.55%–5.30% 2020–2049 | 12,277 | 12,517 | ||||||
Other securities | 316,261 | |||||||
350,798 |
American Funds Insurance Series | 79 |
Asset Allocation Fund
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Corporate bonds & notes (continued) | ||||||||
Health care 1.23% | ||||||||
Aetna Inc. 1.70% 2018 | $ | 855 | $ | 854 | ||||
Johnson & Johnson 2.25%–3.75% 2022–2047 | 6,785 | 6,861 | ||||||
Other securities | 307,172 | |||||||
314,887 | ||||||||
Consumer discretionary 0.79% | ||||||||
Comcast Corp. 1.63%–5.88% 2018–2036 | 9,285 | 8,908 | ||||||
Home Depot, Inc. 1.80%–4.25% 2020–2046 | 6,915 | 7,304 | ||||||
Other securities | 187,027 | |||||||
203,239 | ||||||||
Consumer staples 0.52% | ||||||||
Philip Morris International Inc. 1.88%–4.25% 2020–2044 | 19,155 | 19,258 | ||||||
Other securities | 113,383 | |||||||
132,641 | ||||||||
Industrials 0.45% | ||||||||
Lockheed Martin Corp. 2.50%–3.55% 2020–2026 | 15,050 | 15,440 | ||||||
Other securities | 100,152 | |||||||
115,592 | ||||||||
Information technology 0.41% | ||||||||
Broadcom Ltd. 2.38%–3.88% 2020–20276 | 10,300 | 10,188 | ||||||
Microsoft Corp. 4.10%–4.20% 2035–2037 | 7,000 | 7,934 | ||||||
Other securities | 86,459 | |||||||
104,581 | ||||||||
Other 2.39% | ||||||||
Other securities | 615,194 | |||||||
Total corporate bonds & notes | 2,290,286 | |||||||
Mortgage-backed obligations 5.29% | ||||||||
Federal agency mortgage-backed obligations 5.14% | ||||||||
Fannie Mae 0%–7.50% 2021–20487,8,9 | 600,155 | 624,707 | ||||||
Freddie Mac 1.69%–6.50% 2022–20487,8,9 | 497,009 | 513,878 | ||||||
Other securities | 178,667 | |||||||
1,317,252 | ||||||||
Other 0.15% | ||||||||
Other securities | 40,640 | |||||||
Total mortgage-backed obligations | 1,357,892 | |||||||
Federal agency bonds & notes 0.20% | ||||||||
Fannie Mae 1.88%–2.00% 2022–2026 | 16,000 | 15,269 | ||||||
Federal Home Loan Bank 0.875% 2018 | 17,140 | 17,084 | ||||||
Freddie Mac 0.75% 2018 | 18,768 | 18,741 | ||||||
Total federal agency bonds & notes | 51,094 | |||||||
Other 0.82% | ||||||||
Other securities | 211,780 | |||||||
Total bonds, notes & other debt instruments (cost: $6,788,125,000) | 6,840,318 |
80 | American Funds Insurance Series |
Asset Allocation Fund
Short-term securities 10.93% | Principal amount (000) | Value (000) | ||||||
CAFCO, LLC 1.52% due 2/27/20186 | $ | 50,000 | $ | 49,863 | ||||
Chariot Funding, LLC 1.50%–1.85% due 3/14/2018–6/19/20186 | 137,300 | 136,335 | ||||||
Fannie Mae 1.30% due 3/28/2018 | 25,000 | 24,917 | ||||||
Federal Home Loan Bank 1.08%–1.36% due 1/10/2018–3/28/2018 | 1,089,945 | 1,088,477 | ||||||
Freddie Mac 1.06%–1.28% due 2/7/2018–4/6/2018 | 375,000 | 374,036 | ||||||
Procter & Gamble Co. 1.21%–1.30% due 1/12/2018–2/13/20186 | 151,000 | 150,819 | ||||||
U.S. Treasury Bills 1.02%–1.44% due 1/2/2018–6/14/2018 | 360,000 | 359,419 | ||||||
Other securities | 619,433 | |||||||
Total short-term securities (cost: $2,803,685,000) | 2,803,299 | |||||||
Total investment securities 101.95% (cost: $20,893,837,000) | 26,159,381 | |||||||
Other assets less liabilities (1.95)% | (499,287 | ) | ||||||
Net assets 100.00% | $ | 25,660,094 |
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. “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 $49,647,000, which represented ..19% of the net assets of the fund. Some securities in “Other securities” (with an aggregate value of $40,857,000, an aggregate cost of $62,607,000, and which represented .15% of the net assets of the fund) were acquired from 3/10/2010 to 8/9/2017 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject them to legal or contractual restrictions on resale.
Futures contracts
Unrealized | ||||||||||||||
(depreciation) | ||||||||||||||
Notional | Value at | appreciation | ||||||||||||
Number of | amount10 | 12/31/201711 | at 12/31/2017 | |||||||||||
Contracts | Type | contracts | Expiration | (000) | (000) | (000) | ||||||||
10 Year Ultra U.S. Treasury Note Futures | Short | 250 | March 2018 | $(25,000 | ) | $(33,391 | ) | $(235 | ) | |||||
30 Year Ultra U.S. Treasury Bond Futures | Short | 250 | March 2018 | (25,000 | ) | (41,914 | ) | (278 | ) | |||||
5 Year U.S. Treasury Note Futures | Long | 614 | April 2018 | 61,400 | 71,325 | (313 | ) | |||||||
2 Year U.S. Treasury Note Futures | Short | 179 | April 2018 | (35,800 | ) | (38,325 | ) | 73 | ||||||
$(753 | ) |
Swap contracts
Interest rate swaps
Unrealized | |||||||||||||||
Upfront | appreciation | ||||||||||||||
Value at | payments/ | (depreciation) | |||||||||||||
Expiration | Notional | 12/31/2017 | receipts | at 12/31/2017 | |||||||||||
Receive | Pay | date | (000) | (000) | (000) | (000) | |||||||||
3-month USD-LIBOR | 1.501% | 6/8/2019 | $100,000 | $ 658 | $ — | $658 | |||||||||
1.336% | U.S. EFFR | 6/8/2019 | 100,000 | (605 | ) | — | (605 | ) | |||||||
1.6365% | 3-month USD-LIBOR | 10/16/2019 | 124,000 | (866 | ) | — | (866 | ) | |||||||
3-month USD-LIBOR | 3.402% | 6/23/2044 | 18,000 | (3,124 | ) | — | (3,124 | ) | |||||||
3-month USD-LIBOR | 2.945% | 10/16/2044 | 28,000 | (2,311 | ) | — | (2,311 | ) | |||||||
$ — | $(6,248 | ) |
American Funds Insurance Series | 81 |
Asset Allocation Fund
Investments in affiliates
A company is an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings in that company represent 5% or more of the outstanding voting shares. The value of the fund’s affiliated-company holdings is shown in the summary investment portfolio. Further details on such holdings and related transactions during the year ended December 31, 2017, appear below.
Net | Net | Value of | ||||||||||||||||||
realized | unrealized | Dividend | affiliate at | |||||||||||||||||
Beginning | Ending | gain | depreciation | income | 12/31/2017 | |||||||||||||||
shares | Additions | Reductions | shares | (000) | (000) | (000) | (000) | |||||||||||||
Common stocks 0.91% | ||||||||||||||||||||
Energy 0.91% | ||||||||||||||||||||
Weatherford International PLC2 | 42,200,000 | 13,800,000 | — | 56,000,000 | $ — | $(35,533 | ) | $ — | $233,520 |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous” and “Other securities,” was $1,001,357,000, which represented 3.90% of the net assets of the fund. This amount includes $957,800,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Security did not produce income during the last 12 months. |
3 | Represents an affiliated company as defined under the Investment Company Act of 1940. |
4 | A portion of this security was pledged as collateral. The total value of pledged collateral was $8,119,000, which represented .03% of the net assets of the fund. |
5 | Index-linked bond whose principal amount moves with a government price index. |
6 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $1,510,770,000, which represented 5.89% of the net assets of the fund. |
7 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
8 | Coupon rate may change periodically. |
9 | Purchased on a TBA basis. |
10 | Notional amount is calculated based on the number of contracts and notional contract size. |
11 | Value is calculated based on the notional amount and current market price. |
Key to abbreviations and symbol
ADR = American Depositary Receipts
EFFR = Federal Funds Effective Rate
LIBOR = London Interbank Offered Rate
TBA = To-be-announced
USD/$ = U.S. dollars
See Notes to Financial Statements
82 | American Funds Insurance Series |
Global Balanced Fund
Summary investment portfolio December 31, 2017
Common stocks 61.54% | Shares | Value (000) | ||||||
Information technology 11.18% | ||||||||
Nintendo Co., Ltd.1 | 19,800 | $ | 7,208 | |||||
Microsoft Corp. | 71,100 | 6,082 | ||||||
ASML Holding NV1 | 34,000 | 5,899 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 664,000 | 5,102 | ||||||
Keyence Corp.1 | 4,400 | 2,457 | ||||||
Amphenol Corp., Class A | 24,000 | 2,107 | ||||||
Alphabet Inc., Class C2 | 2,005 | 2,098 | ||||||
Other securities | 8,623 | |||||||
39,576 | ||||||||
Industrials 8.31% | ||||||||
Boeing Co. | 16,750 | 4,940 | ||||||
Harmonic Drive Systems Inc.1 | 50,300 | 2,935 | ||||||
Flughafen Zürich AG1 | 12,235 | 2,798 | ||||||
ASSA ABLOY AB, Class B1 | 118,000 | 2,448 | ||||||
BAE Systems PLC1 | 303,000 | 2,330 | ||||||
AB Volvo, Class B1 | 102,000 | 1,898 | ||||||
Other securities | 12,055 | |||||||
29,404 | ||||||||
Financials 8.04% | ||||||||
HSBC Holdings PLC (GBP denominated)1 | 539,633 | 5,565 | ||||||
JPMorgan Chase & Co. | 42,700 | 4,567 | ||||||
BM&FBOVESPA SA - Bolsa de Valores, Mercadorias e Futuros, ordinary nominative | 376,000 | 2,582 | ||||||
Wells Fargo & Co. | 40,200 | 2,439 | ||||||
HDFC Bank Ltd. (ADR) | 21,605 | 2,197 | ||||||
AIA Group Ltd.1 | 250,000 | 2,132 | ||||||
Sberbank of Russia PJSC (ADR)1 | 123,000 | 2,082 | ||||||
Other securities | 6,876 | |||||||
28,440 | ||||||||
Consumer staples 7.20% | ||||||||
British American Tobacco PLC1 | 104,700 | 7,066 | ||||||
British American Tobacco PLC (ADR) | 22,146 | 1,484 | ||||||
Philip Morris International Inc. | 36,700 | 3,877 | ||||||
Nestlé SA1 | 43,800 | 3,764 | ||||||
Altria Group, Inc. | 51,000 | 3,642 | ||||||
Coca-Cola European Partners PLC | 48,000 | 1,913 | ||||||
Other securities | 3,734 | |||||||
25,480 | ||||||||
Health care 5.01% | ||||||||
Humana Inc. | 20,830 | 5,167 | ||||||
Merck & Co., Inc. | 56,120 | 3,158 | ||||||
Mettler-Toledo International Inc.2 | 3,500 | 2,168 | ||||||
Fisher & Paykel Healthcare Corp. Ltd.1 | 204,000 | 2,069 | ||||||
Other securities | 5,186 | |||||||
17,748 | ||||||||
Materials 4.42% | ||||||||
DowDuPont Inc. | 63,075 | 4,492 | ||||||
Linde AG, non-registered shares1,2 | 8,900 | 2,082 | ||||||
Croda International PLC1 | 31,900 | 1,905 | ||||||
Other securities | 7,149 | |||||||
15,628 | ||||||||
Energy 4.37% | ||||||||
Royal Dutch Shell PLC, Class B1 | 109,200 | 3,683 | ||||||
Royal Dutch Shell PLC, Class A1 | 585 | 20 | ||||||
ConocoPhillips | 49,506 | 2,717 | ||||||
Enbridge Inc. (CAD denominated) | 50,594 | 1,979 |
American Funds Insurance Series | 83 |
Global Balanced Fund
Common stocks (continued) | Shares | Value (000) | ||||||
Energy (continued) | ||||||||
Enbridge Inc. (CAD denominated)1,3 | 16,157 | $ | 619 | |||||
LUKOIL Oil Co. PJSC (ADR)1 | 39,800 | 2,277 | ||||||
Other securities | 4,156 | |||||||
15,451 | ||||||||
Consumer discretionary 4.31% | ||||||||
Amazon.com, Inc.2 | 3,400 | 3,976 | ||||||
Peugeot SA1 | 136,500 | 2,773 | ||||||
Nokian Renkaat Oyj1 | 50,634 | 2,294 | ||||||
Home Depot, Inc. | 10,000 | 1,895 | ||||||
Other securities | 4,333 | |||||||
15,271 | ||||||||
Utilities 2.11% | ||||||||
Enel Américas SA (ADR) | 197,000 | 2,201 | ||||||
Other securities | 5,269 | |||||||
7,470 | ||||||||
Real estate 1.73% | ||||||||
Daito Trust Construction Co., Ltd.1 | 11,000 | 2,241 | ||||||
Link REIT1 | 211,697 | 1,962 | ||||||
Equinix, Inc. REIT | 4,240 | 1,921 | ||||||
6,124 | ||||||||
Miscellaneous 4.86% | ||||||||
Other common stocks in initial period of acquisition | 17,202 | |||||||
Total common stocks (cost: $160,781,000) | 217,794 | |||||||
Bonds, notes & other debt instruments 31.65% | Principal amount (000) | |||||||
Bonds & notes of governments & government agencies outside the U.S. 14.13% | ||||||||
Japan 0.10%–2.30% 2018–20464 | ¥ | 1,000,339 | 9,538 | |||||
Poland (Republic of) 3.25%–5.75% 2020–2025 | PLN12,590 | 3,930 | ||||||
Other securities | 36,549 | |||||||
50,017 | ||||||||
U.S. Treasury bonds & notes 9.59% | ||||||||
U.S. Treasury 7.38% | ||||||||
U.S. Treasury 1.625% 2022 | $ | 3,850 | 3,755 | |||||
U.S. Treasury 2.125% 2024 | 2,025 | 2,001 | ||||||
U.S. Treasury 2.25% 2027 | 2,800 | 2,762 | ||||||
U.S. Treasury 0.75%–3.13% 2018–2046 | 17,788 | 17,587 | ||||||
26,105 | ||||||||
U.S. Treasury inflation-protected securities 2.21% | ||||||||
U.S. Treasury Inflation-Protected Securities 0.13%–2.38% 2021–20444 | 7,731 | 7,837 | ||||||
Total U.S. Treasury bonds & notes | 33,942 | |||||||
Corporate bonds & notes 6.33% | ||||||||
Financials 1.43% | ||||||||
HSBC Holdings PLC 3.375% 2024 | € | 100 | 124 | |||||
HSBC Holdings PLC 3.90%–4.30% 2026 | $ | 400 | 421 | |||||
JPMorgan Chase & Co. 2.55%–6.75% 2021–2049 | 389 | 407 | ||||||
Other securities | 4,100 | |||||||
5,052 |
84 | American Funds Insurance Series |
Global Balanced Fund
Bonds, notes & other debt instruments | Principal amount (000) | Value (000) | ||||||
Utilities 1.05% | ||||||||
Other securities | $ | 3,704 | ||||||
Consumer discretionary 0.79% | ||||||||
Amazon.com, Inc. 2.80%–3.15% 2024–20273 | $ | 265 | 265 | |||||
Other securities | 2,516 | |||||||
2,781 | ||||||||
Health care 0.67% | ||||||||
Humana Inc. 3.15% 2022 | 100 | 101 | ||||||
Other securities | 2,275 | |||||||
2,376 | ||||||||
Consumer staples 0.40% | ||||||||
Altria Group, Inc. 2.63%–4.75% 2020–2042 | 400 | 420 | ||||||
British American Tobacco PLC 3.56%–4.39% 2027–20373 | 185 | 189 | ||||||
Philip Morris International Inc. 2.00%–4.25% 2020–2044 | 195 | 197 | ||||||
Reynolds American Inc. 4.00%–4.45% 2022–2025 | 120 | 128 | ||||||
Other securities | 478 | |||||||
1,412 | ||||||||
Information technology 0.34% | ||||||||
Microsoft Corp. 2.40%–3.30% 2026–2027 | 640 | 653 | ||||||
Other securities | 543 | |||||||
�� | 1,196 | |||||||
Other 1.65% | ||||||||
Other securities | 5,862 | |||||||
Total corporate bonds & notes | 22,383 | |||||||
Mortgage-backed obligations 1.54% | ||||||||
Other 1.54% | ||||||||
Other securities | 5,463 | |||||||
Total mortgage-backed obligations | 5,463 | |||||||
Asset-backed obligations 0.06% | ||||||||
Other securities | 200 | |||||||
Total bonds, notes & other debt instruments (cost: $111,365,000) | 112,005 | |||||||
Short-term securities 7.47% | ||||||||
Mitsubishi UFJ Trust and Banking Corp. 1.52% due 1/19/20183 | 5,000 | 4,996 | ||||||
Mizuho Bank, Ltd. 1.59% due 1/25/20183 | 8,300 | 8,290 | ||||||
Royal Bank of Canada 1.34%–1.53% due 1/8/2018–1/16/2018 | 7,500 | 7,494 | ||||||
Thunder Bay Funding, LLC 1.70% due 3/6/20183 | 475 | 473 | ||||||
Victory Receivables Corp. 1.42% due 1/17/20183 | 4,200 | 4,197 | ||||||
Other securities | 998 | |||||||
Total short-term securities (cost: $26,451,000) | 26,448 | |||||||
Total investment securities 100.66% (cost: $298,597,000) | 356,247 | |||||||
Other assets less liabilities (0.66)% | (2,348 | ) | ||||||
Net assets 100.00% | $ | 353,899 |
American Funds Insurance Series | 85 |
Global Balanced Fund
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
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
Unrealized | |||||||||
appreciation | |||||||||
Contract amount | (depreciation) | ||||||||
Purchases | Sales | at 12/31/2017 | |||||||
(000) | (000) | Counterparty | Settlement date | (000) | |||||
USD419 | MXN7,600 | JPMorgan Chase | 1/4/2018 | $33 | |||||
JPY21,922 | AUD250 | UBS AG | 1/5/2018 | — | 5 | ||||
USD207 | INR13,400 | Citibank | 1/5/2018 | (3 | ) | ||||
USD274 | CAD350 | Bank of America, N.A. | 1/5/2018 | (4 | ) | ||||
USD571 | INR36,900 | JPMorgan Chase | 1/5/2018 | (7 | ) | ||||
USD205 | ZAR2,900 | UBS AG | 1/5/2018 | (29 | ) | ||||
EUR266 | USD312 | Goldman Sachs | 1/8/2018 | 8 | |||||
USD428 | ILS1,500 | Bank of America, N.A. | 1/9/2018 | (3 | ) | ||||
USD651 | EUR550 | HSBC Bank | 1/9/2018 | (10 | ) | ||||
EUR502 | USD600 | Bank of America, N.A. | 1/10/2018 | 3 | |||||
USD234 | CAD300 | Bank of America, N.A. | 1/10/2018 | (5 | ) | ||||
JPY96,672 | USD863 | JPMorgan Chase | 1/10/2018 | (5 | ) | ||||
USD228 | AUD300 | Goldman Sachs | 1/10/2018 | (6 | ) | ||||
USD327 | PLN1,158 | JPMorgan Chase | 1/10/2018 | (6 | ) | ||||
USD251 | AUD330 | JPMorgan Chase | 1/10/2018 | (7 | ) | ||||
USD1,103 | JPY125,000 | JPMorgan Chase | 1/10/2018 | (7 | ) | ||||
JPY63,535 | USD573 | JPMorgan Chase | 1/10/2018 | (8 | ) | ||||
USD468 | CAD600 | Goldman Sachs | 1/10/2018 | (9 | ) | ||||
JPY90,073 | USD811 | Barclays Bank PLC | 1/10/2018 | (11 | ) | ||||
JPY40,289 | USD357 | Bank of America, N.A. | 1/11/2018 | 1 | |||||
USD730 | AUD970 | Citibank | 1/12/2018 | (27 | ) | ||||
USD478 | INR31,000 | Bank of America, N.A. | 1/16/2018 | (6 | ) | ||||
JPY134,232 | USD1,190 | JPMorgan Chase | 1/17/2018 | 2 | |||||
USD297 | EUR250 | Bank of America, N.A. | 1/17/2018 | (3 | ) | ||||
USD550 | CAD700 | Bank of America, N.A. | 1/17/2018 | (7 | ) | ||||
USD361 | AUD475 | JPMorgan Chase | 1/17/2018 | (9 | ) | ||||
USD399 | MXN7,700 | Bank of America, N.A. | 1/18/2018 | 9 | |||||
CHF385 | USD391 | Goldman Sachs | 1/18/2018 | 5 | |||||
JPY22,275 | USD198 | Goldman Sachs | 1/18/2018 | — | 5 | ||||
NOK2,700 | USD322 | Bank of America, N.A. | 1/19/2018 | 7 | |||||
USD766 | EUR650 | Bank of America, N.A. | 1/19/2018 | (14 | ) | ||||
EUR645 | USD760 | Citibank | 1/22/2018 | 15 | |||||
EUR349 | USD413 | UBS AG | 1/22/2018 | 6 | |||||
EUR227 | GBP200 | Goldman Sachs | 1/22/2018 | 2 | |||||
JPY31,929 | USD284 | Citibank | 1/22/2018 | (1 | ) | ||||
JPY69,685 | USD623 | Barclays Bank PLC | 1/22/2018 | (4 | ) | ||||
USD2,253 | GBP1,700 | Barclays Bank PLC | 1/22/2018 | (44 | ) | ||||
SEK3,609 | USD430 | Citibank | 1/23/2018 | 11 | |||||
EUR357 | USD422 | Citibank | 1/23/2018 | 6 | |||||
JPY57,092 | USD506 | UBS AG | 1/23/2018 | 1 | |||||
USD171 | ILS600 | JPMorgan Chase | 1/23/2018 | (2 | ) | ||||
USD448 | PLN1,600 | Citibank | 1/23/2018 | (12 | ) | ||||
SEK1,625 | USD192 | Barclays Bank PLC | 1/24/2018 | 7 | |||||
USD216 | MXN4,250 | JPMorgan Chase | 1/31/2018 | 1 | |||||
EUR482 | USD573 | Bank of America, N.A. | 2/6/2018 | 6 | |||||
USD421 | PLN1,500 | Bank of America, N.A. | 2/7/2018 | (9 | ) | ||||
SEK1,270 | USD151 | Bank of America, N.A. | 2/15/2018 | 4 | |||||
USD250 | JPY28,000 | Bank of New York Mellon | 2/15/2018 | 1 | |||||
JPY22,250 | USD198 | HSBC Bank | 2/15/2018 | — | 5 |
86 | American Funds Insurance Series |
Global Balanced Fund
Unrealized | |||||||||
appreciation | |||||||||
Contract amount | (depreciation) | ||||||||
Purchases | Sales | at 12/31/2017 | |||||||
(000) | (000) | Counterparty | Settlement date | (000) | |||||
SEK1,613 | USD191 | UBS AG | 2/23/2018 | $ 7 | |||||
JPY34,577 | USD306 | HSBC Bank | 2/23/2018 | 1 | |||||
USD375 | INR24,900 | Citibank | 3/26/2018 | (11 | ) | ||||
USD371 | BRL1,250 | Citibank | 11/29/2018 | 8 | |||||
$(125 | ) |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous” and “Other securities,” was $114,391,000, which represented 32.32% of the net assets of the fund. This amount includes $112,907,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Security did not produce income during the last 12 months. |
3 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $28,319,000, which represented 8.00% of the net assets of the fund. |
4 | Index-linked bond whose principal amount moves with a government price index. |
5 | Amount less than one thousand. |
Key to abbreviations and symbols
ADR = American Depositary Receipts
AUD = Australian dollars
BRL = Brazilian reais
CAD = Canadian dollars
CHF = Swiss francs
EUR/€ = Euros
GBP = British pounds
ILS = Israeli shekels
INR = Indian rupees
JPY/¥ = Japanese yen
MXN = Mexican pesos
NOK = Norwegian kroner
PLN = Polish zloty
SEK = Swedish kronor
USD/$ = U.S. dollars
ZAR = South African rand
See Notes to Financial Statements
American Funds Insurance Series | 87 |
Bond Fund
Summary investment portfolio December 31, 2017
Bonds, notes & other debt instruments 96.91% | Principal amount (000) | Value (000) | ||||||
Corporate bonds & notes 32.37% | ||||||||
Financials 7.60% | ||||||||
Bank of America Corp. 2.33%–3.59% 2021–20281 | $ | 107,869 | $ | 108,473 | ||||
Intesa Sanpaolo SpA 5.017% 20241 | 54,615 | 55,987 | ||||||
Other securities | 648,915 | |||||||
813,375 | ||||||||
Health care 5.06% | ||||||||
Teva Pharmaceutical Finance Company BV 2.80% 2023 | 72,471 | 63,178 | ||||||
Teva Pharmaceutical Finance Company BV 3.15% 2026 | 73,918 | 61,126 | ||||||
Teva Pharmaceutical Finance Company BV 2.20%–4.10% 2021–2046 | 64,348 | 50,104 | ||||||
Other securities | 366,891 | |||||||
541,299 | ||||||||
Energy 4.94% | ||||||||
Other securities | 528,887 | |||||||
Consumer discretionary 3.64% | ||||||||
Other securities | 389,447 | |||||||
Utilities 3.43% | ||||||||
Other securities | 366,875 | |||||||
Consumer staples 2.65% | ||||||||
Procter & Gamble Co. 3.50% 2047 | 750 | 759 | ||||||
Other securities | 282,353 | |||||||
283,112 | ||||||||
Telecommunication services 1.78% | ||||||||
AT&T Inc. 3.40%–5.30% 2024–2058 | 114,118 | 114,697 | ||||||
Other securities | 76,288 | |||||||
190,985 | ||||||||
Information technology 1.07% | ||||||||
Apple Inc. 1.55%–3.35% 2021–2027 | 27,562 | 27,092 | ||||||
Other securities | 87,012 | |||||||
114,104 | ||||||||
Other 2.20% | ||||||||
Other securities | 235,072 | |||||||
Total corporate bonds & notes | 3,463,156 | |||||||
U.S. Treasury bonds & notes 27.17% | ||||||||
U.S. Treasury 24.87% | ||||||||
U.S. Treasury 2.125% 2022 | 172,737 | 172,069 | ||||||
U.S. Treasury 2.125% 2022 | 150,000 | 149,736 | ||||||
U.S. Treasury 2.25% 2023 | 115,000 | 114,802 | ||||||
U.S. Treasury 2.125% 2024 | 260,000 | 257,452 | ||||||
U.S. Treasury 2.125% 2024 | 200,000 | 197,500 | ||||||
U.S. Treasury 2.125% 2024 | 159,445 | 157,576 | ||||||
U.S. Treasury 2.25% 2024 | 80,000 | 79,831 | ||||||
U.S. Treasury 2.25% 2024 | 77,542 | 77,148 | ||||||
U.S. Treasury 2.25% 2027 | 266,623 | 262,999 | ||||||
U.S. Treasury 2.25% 2027 | 226,075 | 223,315 | ||||||
U.S. Treasury 2.25% 2027 | 150,000 | 147,993 | ||||||
U.S. Treasury 2.375% 2027 | 200,000 | 199,582 |
88 | American Funds Insurance Series |
Bond Fund
Bonds, notes & other debt instruments | Principal amount (000) | Value (000) | ||||||
U.S. Treasury 2.75% 2047 | $ | 304,179 | $ | 304,608 | ||||
U.S. Treasury 2.75% 2047 | 71,680 | 71,820 | ||||||
U.S. Treasury 0.75%–8.75% 2019–2046 | 230,631 | 244,662 | ||||||
2,661,093 | ||||||||
U.S. Treasury inflation-protected securities 2.30% | ||||||||
U.S. Treasury Inflation-Protected Security 0.375% 20272 | 151,257 | 150,475 | ||||||
U.S. Treasury Inflation-Protected Securities 0.38%–2.00% 2025–20262 | 90,669 | 95,441 | ||||||
245,916 | ||||||||
Total U.S. Treasury bonds & notes | 2,907,009 | |||||||
Mortgage-backed obligations 25.85% | ||||||||
Federal agency mortgage-backed obligations 25.54% | ||||||||
Fannie Mae 3.50% 20333,4 | 59,300 | 61,169 | ||||||
Fannie Mae 3.00% 20463 | 75,036 | 75,112 | ||||||
Fannie Mae 3.50% 20473 | 80,119 | 82,381 | ||||||
Fannie Mae 4.00% 20473 | 88,762 | 93,005 | ||||||
Fannie Mae 3.50% 20483,4 | 100,000 | 102,574 | ||||||
Fannie Mae 3.50% 20483,4 | 77,040 | 79,149 | ||||||
Fannie Mae 4.00% 20483,4 | 275,000 | 287,754 | ||||||
Fannie Mae 4.00% 20483,4 | 171,162 | 178,860 | ||||||
Fannie Mae 4.50% 20483,4 | 300,000 | 319,217 | ||||||
Fannie Mae 4.50% 20483,4 | 148,375 | 157,694 | ||||||
Fannie Mae 2.89%–9.25% 2023–20483,4,5 | 203,834 | 213,825 | ||||||
Freddie Mac 3.50% 20473 | 74,888 | 77,080 | ||||||
Freddie Mac 4.00% 20483,4 | 275,000 | 287,699 | ||||||
Freddie Mac 4.00% 20483,4 | 76,000 | 79,403 | ||||||
Freddie Mac 0%–5.50% 2021–20483,4 | 268,392 | 276,461 | ||||||
Government National Mortgage Assn. 4.00% 20483,4 | 125,150 | 130,541 | ||||||
Government National Mortgage Assn. 4.00% 20483,4 | 51,450 | 53,648 | ||||||
Government National Mortgage Assn. 4.50% 20483,4 | 75,550 | 79,256 | ||||||
Government National Mortgage Assn. 4.00%–4.50% 2040–20483,4 | 92,971 | 97,490 | ||||||
2,732,318 | ||||||||
Other 0.31% | ||||||||
Other securities | 32,614 | |||||||
Total mortgage-backed obligations | 2,764,932 | |||||||
Bonds & notes of governments & government agencies outside the U.S. 6.38% | ||||||||
Japan, Series 19, 0.10% 20242 | ¥ | 5,366,380 | 50,151 | |||||
Japan, Series 20, 0.10% 20252 | 11,317,500 | 106,018 | ||||||
Portuguese Republic 5.125% 2024 | $ | 101,050 | 108,779 | |||||
Portuguese Republic 5.65% 2024 | € | 20,000 | 30,550 | |||||
Portuguese Republic 2.88%–4.10% 2025–2045 | 24,375 | 32,318 | ||||||
United Mexican States, Series M, 6.50% 2021 | MXN3,132,700 | 154,042 | ||||||
United Mexican States, Series M, 5.75% 2026 | 527,500 | 23,742 | ||||||
United Mexican States 3.60%–4.35% 2025–2047 | $ | 17,000 | 16,980 | |||||
Other securities | 159,400 | |||||||
681,980 | ||||||||
Asset-backed obligations 2.78% | ||||||||
Other securities | 297,847 | |||||||
Municipals 2.25% | ||||||||
Illinois 1.82% | ||||||||
G.O. Bonds, Pension Funding Series 2003, 4.95% 2023 | 24,805 | 25,903 | ||||||
G.O. Bonds, Pension Funding Series 2003, 5.10% 20333 | 93,475 | 93,483 | ||||||
G.O. Bonds, Pension Funding Series 2013, 5.877% 2019 | 400 | 413 | ||||||
G.O. Bonds, Series 2013-B, 3.65% 2020 | 1,000 | 1,001 | ||||||
G.O. Bonds, Series 2013-B, 4.11% 2022 | 750 | 758 |
American Funds Insurance Series | 89 |
Bond Fund
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Municipals (continued) | ||||||||
G.O. Bonds, Series 2013-B, 4.31% 2023 | $ | 2,125 | $ | 2,140 | ||||
G.O. Bonds, Series 2013-B, 4.91% 2027 | 1,450 | 1,447 | ||||||
G.O. Bonds, Taxable Build America Bonds, Series 2010-1, 6.63% 2035 | 13,780 | 15,316 | ||||||
G.O. Bonds, Taxable Build America Bonds, Series 2010-2, 5.65% 2020 | 250 | 260 | ||||||
G.O. Bonds, Taxable Build America Bonds, Series 2010-2, 5.85% 2022 | 2,370 | 2,544 | ||||||
G.O. Bonds, Taxable Build America Bonds, Series 2010-2, 5.95% 2023 | 2,950 | 3,181 | ||||||
G.O. Bonds, Taxable Build America Bonds, Series 2010-2, 6.15% 2025 | 3,955 | 4,274 | ||||||
G.O. Bonds, Taxable Build America Bonds, Series 2010-3, 5.547% 2019 | 335 | 344 | ||||||
G.O. Bonds, Taxable Build America Bonds, Series 2010-3, 5.727% 2020 | 2,400 | 2,503 | ||||||
G.O. Bonds, Taxable Build America Bonds, Series 2010-5, 6.20% 20213 | 7,784 | 8,148 | ||||||
Other securities | 32,912 | |||||||
194,627 | ||||||||
Other 0.43% | ||||||||
Other securities | 45,699 | |||||||
Total municipals | 240,326 | |||||||
Federal agency bonds & notes 0.11% | ||||||||
Fannie Mae 2.125% 2026 | 12,410 | 12,036 | ||||||
Total bonds, notes & other debt instruments (cost: $10,316,353,000) | 10,367,286 | |||||||
Common stocks 0.01% | Shares | |||||||
Other 0.01% | ||||||||
Other securities | 1,242 | |||||||
Total common stocks (cost: $956,000) | 1,242 | |||||||
Rights & warrants 0.00% | ||||||||
Utilities 0.00% | ||||||||
Other securities | 55 | |||||||
Total rights & warrants (cost: $96,000) | 55 | |||||||
Short-term securities 22.13% | Principal amount (000) | |||||||
Apple Inc. 1.21%–1.50% due 1/4/2018–2/20/20181 | $ | 131,000 | 130,833 | |||||
Bank of Tokyo-Mitsubishi UFJ, Ltd. 1.36%–1.49% due 1/5/2018–1/10/2018 | 61,100 | 61,071 | ||||||
Cisco Systems, Inc. 1.43%–1.52% due 2/15/2018–2/20/20181 | 100,000 | 99,794 | ||||||
Coca-Cola Co. 1.24%–1.27% due 1/12/2018–1/30/20181 | 101,400 | 101,292 | ||||||
Federal Home Loan Bank 1.07%–1.32% due 1/8/2018–3/16/2018 | 620,350 | 619,459 | ||||||
Freddie Mac 1.16%–1.28% due 4/3/2018–4/6/2018 | 141,900 | 141,388 | ||||||
IBM Credit LLC 1.50% due 3/13/20181 | 80,000 | 79,752 | ||||||
Microsoft Corp. 1.26% due 1/16/20181 | 67,500 | 67,452 | ||||||
Pfizer Inc. 1.30%–1.50% due 2/20/2018–3/12/20181 | 100,000 | 99,741 | ||||||
Procter & Gamble Co. 1.21%–1.30% due 1/12/2018–2/22/20181 | 125,000 | 124,848 | ||||||
U.S. Treasury Bills 1.09%–1.44% due 1/2/2018–6/14/2018 | 237,300 | 236,407 | ||||||
Walt Disney Co. 1.29%–1.42% due 1/25/2018–1/26/20181 | 100,000 | 99,888 | ||||||
Other securities | 504,869 | |||||||
Total short-term securities (cost: $2,367,157,000) | 2,366,794 | |||||||
Total investment securities 119.05% (cost: $12,684,562,000) | 12,735,377 | |||||||
Other assets less liabilities (19.05)% | (2,037,683 | ) | ||||||
Net assets 100.00% | $ | 10,697,694 |
90 | American Funds Insurance Series |
Bond Fund
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” includes securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities which were valued under fair value procedures was $4,276,000, which represented .04% of the net assets of the fund. “Other securities” also includes loan participations and assignments, which may be subject to legal or contractual restrictions on resale. The total value of all such loans was $21,361,000, which represented .20% of the net assets of the fund. Some securities in “Other securities” (with an aggregate value of $1,241,000, an aggregate cost of $780,000, and which represented .01% of the net assets of the fund) were acquired on 8/31/2015 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject them to legal or contractual restrictions on resale.
Futures contracts
Unrealized | ||||||||||||||
(depreciation) | ||||||||||||||
Notional | Value at | appreciation | ||||||||||||
Number of | amount6 | 12/31/20177 | at 12/31/2017 | |||||||||||
Contracts | Type | contracts | Expiration | (000) | (000) | (000) | ||||||||
10 Year Euro-Bund Futures | Short | 128 | March 2018 | $ (12,800 | ) | $ (24,831 | ) | $ (16 | ) | |||||
10 Year U.S. Treasury Note Futures | Long | 3,256 | March 2018 | 325,600 | 403,897 | (2,045 | ) | |||||||
30 Year Ultra U.S. Treasury Bond Futures | Short | 51 | March 2018 | (5,100 | ) | (8,551 | ) | (59 | ) | |||||
10 Year Ultra U.S. Treasury Note Futures | Short | 53 | March 2018 | (5,300 | ) | (7,079 | ) | 25 | ||||||
5 Year U.S. Treasury Note Futures | Long | 6,048 | April 2018 | 604,800 | 702,560 | (1,350 | ) | |||||||
2 Year U.S. Treasury Note Futures | Long | 2,099 | April 2018 | 419,800 | 449,416 | (711 | ) | |||||||
$(4,156 | ) |
Forward currency contracts
Unrealized appreciation | ||||||||||
Contract amount | (depreciation) | |||||||||
Purchases | Sales | at 12/31/2017 | ||||||||
(000) | (000) | Counterparty | Settlement date | (000) | ||||||
USD64,742 | MXN1,220,000 | Bank of America, N.A. | 1/9/2018 | $2,829 | ||||||
USD13,016 | JPY1,445,000 | Bank of America, N.A. | 1/10/2018 | 183 | ||||||
USD455 | EUR385 | Citibank | 1/10/2018 | (7 | ) | |||||
USD30,924 | JPY3,430,000 | UBS AG | 1/11/2018 | 462 | ||||||
USD43,780 | JPY4,925,000 | JPMorgan Chase | 1/11/2018 | 41 | ||||||
USD128,051 | MXN2,400,000 | JPMorgan Chase | 1/12/2018 | 6,331 | ||||||
USD13,141 | MXN252,000 | Citibank | 1/17/2018 | 374 | ||||||
USD19,850 | EUR16,750 | Citibank | 1/17/2018 | (272 | ) | |||||
USD64,745 | JPY7,300,000 | HSBC Bank | 1/22/2018 | (121 | ) | |||||
USD4,767 | EUR4,000 | JPMorgan Chase | 1/23/2018 | (40 | ) | |||||
USD26,460 | EUR22,350 | JPMorgan Chase | 1/23/2018 | (399 | ) | |||||
USD57,793 | EUR48,800 | Citibank | 1/23/2018 | (852 | ) | |||||
USD57,533 | AUD75,000 | JPMorgan Chase | 1/23/2018 | (987 | ) | |||||
$7,542 |
American Funds Insurance Series | 91 |
Bond Fund
Swap contracts
Interest rate swaps
Unrealized | |||||||||||||||
Upfront | (depreciation) | ||||||||||||||
Value at | payments/ | appreciation | |||||||||||||
Expiration | Notional | 12/31/2017 | receipts | at 12/31/2017 | |||||||||||
Receive | Pay | date | (000) | (000) | (000) | (000) | |||||||||
1.39% | 3-month Canada BA | 7/13/2018 | C$1,460,000 | $(1,637 | ) | $ — | $ | (1,637 | ) | ||||||
1.77% | 3-month Canada BA | 9/26/2018 | 975,000 | 186 | — | 186 | |||||||||
1.669% | 3-month USD-LIBOR | 10/28/2019 | $112,000 | (729 | ) | — | (729 | ) | |||||||
1.6915% | 3-month USD-LIBOR | 6/3/2020 | 1,600 | (15 | ) | — | (15 | ) | |||||||
1.7345% | 3-month USD-LIBOR | 12/31/2020 | 120,000 | (1,496 | ) | — | (1,496 | ) | |||||||
3-month USD-LIBOR | 1.975% | 4/27/2022 | 15,000 | 148 | — | 148 | |||||||||
3-month USD-LIBOR | 2.1305% | 7/17/2022 | 100,000 | 400 | — | 400 | |||||||||
1.9375% | 3-month USD-LIBOR | 12/18/2022 | 150,000 | (2,128 | ) | — | (2,128 | ) | |||||||
3-month USD-LIBOR | 2.701% | 6/9/2024 | 60,000 | (1,498 | ) | — | (1,498 | ) | |||||||
3-month USD-LIBOR | 2.6815% | 9/24/2024 | 1,600 | (38 | ) | — | (38 | ) | |||||||
3-month USD-LIBOR | 2.54% | 10/3/2024 | 400 | (6 | ) | — | (6 | ) | |||||||
6-month EURIBOR | 0.9852% | 10/17/2024 | €25,000 | (914 | ) | — | (914 | ) | |||||||
3-month USD-LIBOR | 2.342% | 10/21/2024 | $290 | (1 | ) | — | (1 | ) | |||||||
3-month USD-LIBOR | 2.326% | 10/22/2024 | 800 | (1 | ) | — | (1 | ) | |||||||
3-month USD-LIBOR | 2.372% | 10/24/2024 | 1,150 | (5 | ) | — | (5 | ) | |||||||
3-month USD-LIBOR | 2.438% | 11/19/2024 | 2,750 | (24 | ) | — | (24 | ) | |||||||
3-month USD-LIBOR | 2.4585% | 11/24/2024 | 23,000 | (233 | ) | — | (233 | ) | |||||||
3-month USD-LIBOR | 2.4295% | 11/25/2024 | 800 | (7 | ) | — | (7 | ) | |||||||
3-month USD-LIBOR | 2.353% | 12/8/2024 | 700 | (2 | ) | — | (2 | ) | |||||||
3-month USD-LIBOR | 2.2845% | 12/12/2024 | 330 | — | 8 | — | — | 8 | |||||||
3-month USD-LIBOR | 1.8185% | 1/20/2025 | 900 | 29 | — | 29 | |||||||||
3-month USD-LIBOR | 1.9365% | 1/22/2025 | 1,500 | 37 | — | 37 | |||||||||
3-month USD-LIBOR | 2.192% | 3/18/2025 | 1,850 | 15 | — | 15 | |||||||||
3-month USD-LIBOR | 2.0475% | 3/23/2025 | 450 | 8 | — | 8 | |||||||||
3-month USD-LIBOR | 2.3175% | 5/8/2025 | 1,500 | — | 8 | — | — | 8 | |||||||
3-month USD-LIBOR | 2.339% | 5/13/2025 | 375 | (1 | ) | — | (1 | ) | |||||||
3-month USD-LIBOR | 2.351% | 5/15/2025 | 590 | (2 | ) | — | (2 | ) | |||||||
3-month USD-LIBOR | 2.287% | 5/20/2025 | 500 | 1 | — | 1 | |||||||||
3-month USD-LIBOR | 2.227% | 5/28/2025 | 260 | 2 | — | 2 | |||||||||
3-month USD-LIBOR | 2.2125% | 5/29/2025 | 465 | 3 | — | 3 | |||||||||
3-month USD-LIBOR | 2.451% | 6/5/2025 | 650 | (6 | ) | — | (6 | ) | |||||||
3-month USD-LIBOR | 2.46% | 6/10/2025 | 2,536 | (25 | ) | — | (25 | ) | |||||||
3-month USD-LIBOR | 2.455% | 6/24/2025 | 235 | (2 | ) | — | (2 | ) | |||||||
3-month USD-LIBOR | 2.428% | 7/2/2025 | 2,000 | (15 | ) | — | (15 | ) | |||||||
3-month USD-LIBOR | 2.397% | 7/13/2025 | 900 | (5 | ) | — | (5 | ) | |||||||
3-month USD-LIBOR | 2.535% | 7/15/2025 | 800 | (12 | ) | — | (12 | ) | |||||||
3-month USD-LIBOR | 2.4615% | 7/22/2025 | 1,300 | (13 | ) | — | (13 | ) | |||||||
3-month USD-LIBOR | 2.312% | 7/29/2025 | 1,000 | 1 | — | 1 | |||||||||
3-month USD-LIBOR | 2.331% | 7/30/2025 | 435 | — | 8 | — | — | 8 | |||||||
3-month USD-LIBOR | 2.228% | 9/4/2025 | 12,000 | 82 | — | 82 | |||||||||
3-month USD-LIBOR | 2.2135% | 9/4/2025 | 5,000 | 39 | — | 39 | |||||||||
6-month JPY-LIBOR | 0.282% | 2/2/2026 | ¥ 5,500,000 | (175 | ) | — | (175 | ) | |||||||
3-month USD-LIBOR | 1.6705% | 3/4/2026 | $ 248,000 | 12,454 | — | 12,454 | |||||||||
6-month JPY-LIBOR | 0.0875% | 3/10/2026 | ¥11,100,000 | 1,242 | — | 1,242 | |||||||||
3-month USD-LIBOR | 1.5925% | 5/9/2026 | $ 1,000 | 58 | — | 58 | |||||||||
3-month USD-LIBOR | 1.595% | 5/12/2026 | 8,500 | 489 | — | 489 | |||||||||
3-month USD-LIBOR | 1.592% | 5/12/2026 | 4,000 | 231 | — | 231 | |||||||||
3.0865% | 3-month USD-LIBOR | 8/18/2034 | 2,250 | 184 | — | 184 | |||||||||
2.913% | 3-month USD-LIBOR | 11/24/2034 | 10,000 | 579 | — | 579 | |||||||||
2.844% | 3-month USD-LIBOR | 6/11/2035 | 3,250 | 158 | — | 158 | |||||||||
2.9535% | 3-month USD-LIBOR | 6/30/2035 | 2,500 | 161 | — | 161 | |||||||||
2.773% | 3-month USD-LIBOR | 7/13/2035 | 500 | 19 | — | 19 | |||||||||
2.589% | 3-month USD-LIBOR | 9/4/2035 | 3,100 | 35 | — | 35 | |||||||||
3-month USD-LIBOR | 3.0515% | 11/14/2044 | 1,000 | (105 | ) | — | (105 | ) | |||||||
3-month USD-LIBOR | 2.925% | 12/3/2044 | 1,230 | (97 | ) | — | (97 | ) |
92 | American Funds Insurance Series |
Bond Fund
Unrealized | |||||||||||||||
Upfront | (depreciation) | ||||||||||||||
Value at | payments/ | appreciation | |||||||||||||
Expiration | Notional | 12/31/2017 | receipts | at 12/31/2017 | |||||||||||
Receive | Pay | date | (000) | (000) | (000) | (000) | |||||||||
3-month USD-LIBOR | 2.6695% | 12/19/2044 | $200 | $(5 | ) | $ — | $(5 | ) | |||||||
3-month USD-LIBOR | 2.5755% | 3/5/2045 | 1,470 | (12 | ) | — | (12 | ) | |||||||
2.377% | 3-month USD-LIBOR | 4/29/2045 | 1,910 | (63 | ) | — | (63 | ) | |||||||
3-month USD-LIBOR | 2.757% | 5/8/2045 | 1,500 | (68 | ) | — | (68 | ) | |||||||
6-month JPY-LIBOR | 0.58295% | 3/23/2046 | ¥2,000,000 | 1,673 | — | 1,673 | |||||||||
0.64355% | 6-month JPY-LIBOR | 4/27/2046 | 2,000,000 | (1,396 | ) | — | (1,396 | ) | |||||||
3-month USD-LIBOR | 2.1155% | 5/13/2046 | $2,400 | 214 | — | 214 | |||||||||
$ — | $7,712 |
Credit default swaps
Centrally cleared credit default swaps on credit indices — buy protection
Unrealized | |||||||||||||||
Value at | Upfront | depreciation | |||||||||||||
Pay/ | Expiration | Notional | 12/31/2017 | payments | at 12/31/2017 | ||||||||||
Receive | Payment frequency | date | (000) | (000) | (000) | (000) | |||||||||
CDX.NA.IG.29 | 1.00%/Quarterly | 12/20/2022 | $65,000 | $(1,550) | $(1,366) | $(184 | ) |
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 $2,046,793,000, which represented 19.13% of the net assets of the fund. |
2 | Index-linked bond whose principal amount moves with a government price index. |
3 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
4 | Purchased on a TBA basis. |
5 | Coupon rate may change periodically. |
6 | Notional amount is calculated based on the number of contracts and notional contract size. |
7 | Value is calculated based on the notional amount and current market price. |
8 | Amount less than one thousand. |
Key to abbreviations and symbols
AUD = Australian dollars
C$ = Canadian dollars
EUR/€ = Euros
EURIBOR = Euro Interbank Offered Rate
G.O. = General Obligation
JPY/¥ = Japanese yen
LIBOR = London Interbank Offered Rate
MXN = Mexican pesos
TBA = To-be-announced
USD/$ = U.S. dollars
See Notes to Financial Statements
American Funds Insurance Series | 93 |
Global Bond Fund
Summary investment portfolio December 31, 2017
Bonds, notes & other debt instruments 89.68% | Principal amount (000) | Value (000) | ||||||
Euros 14.40% | ||||||||
French Republic O.A.T. 1.85% 20271 | € | 8,228 | $ | 12,539 | ||||
Germany (Federal Republic of) 0.10% 20261 | 31,541 | 41,791 | ||||||
Germany (Federal Republic of) 2.50% 2046 | 10,770 | 16,972 | ||||||
Germany (Federal Republic of) 0.10%–6.25% 2023–20481 | 15,925 | 21,065 | ||||||
Italy (Republic of) 0.90% 2022 | 10,900 | 13,181 | ||||||
Italy (Republic of) 1.45% 2022 | 10,575 | 13,100 | ||||||
Italy (Republic of) 0.95% 2023 | 36,575 | 43,972 | ||||||
Italy (Republic of) 1.50%–4.75% 2023–2025 | 9,750 | 12,975 | ||||||
Portuguese Republic 2.875% 2025 | 12,500 | 16,556 | ||||||
Portuguese Republic 2.875% 2026 | 4,200 | 5,502 | ||||||
Portuguese Republic 4.125% 2027 | 25,015 | 35,655 | ||||||
Spain (Kingdom of) 1.30% 2026 | 10,400 | 12,465 | ||||||
Other securities | 109,670 | |||||||
355,443 | ||||||||
Japanese yen 8.11% | ||||||||
Japan, Series 18, 0.10% 20241 | ¥ | 4,731,720 | 44,073 | |||||
Japan, Series 19, 0.10% 20241 | 2,685,700 | 25,099 | ||||||
Japan, Series 344, 0.10% 2026 | 1,355,000 | 12,125 | ||||||
Japan, Series 346, 0.10% 2027 | 2,335,000 | 20,877 | ||||||
Japan, Series 116, 2.20% 2030 | 1,735,000 | 19,191 | ||||||
Japan, Series 145, 1.70% 2033 | 2,465,000 | 26,412 | ||||||
Japan 0.10%–2.30% 2022–20441 | 5,353,885 | 52,321 | ||||||
200,098 | ||||||||
Polish zloty 3.94% | ||||||||
Poland (Republic of), Series 0420, 1.50% 2020 | PLN60,575 | 17,268 | ||||||
Poland (Republic of), Series 1021, 5.75% 2021 | 128,830 | 41,721 | ||||||
Poland (Republic of), Series 0922, 5.75% 2022 | 46,600 | 15,295 | ||||||
Poland (Republic of) 3.25%–5.25% 2020–2025 | 75,440 | 22,885 | ||||||
97,169 | ||||||||
Mexican pesos 3.91% | ||||||||
United Mexican States, Series M, 6.50% 2021 | MXN660,800 | 32,493 | ||||||
United Mexican States, Series M20, 10.00% 2024 | 209,500 | 12,021 | ||||||
United Mexican States, Series M, 5.75% 2026 | 717,000 | 32,270 | ||||||
United Mexican States 4.00%–10.00% 2019–20421 | 379,751 | 19,716 | ||||||
96,500 | ||||||||
Indian rupees 2.54% | ||||||||
India (Republic of) 7.80% 2021 | INR1,117,600 | 17,937 | ||||||
India (Republic of) 8.83% 2023 | 1,284,200 | 21,441 | ||||||
India (Republic of) 6.97%–7.88% 2023–2030 | 1,223,470 | 19,105 | ||||||
Other securities | 4,181 | |||||||
62,664 | ||||||||
Malaysian ringgits 2.25% | ||||||||
Malaysia (Federation of), Series 0116, 3.80% 2023 | MYR47,413 | 11,729 | ||||||
Malaysia (Federation of) 3.58%–4.50% 2018–2030 | 177,177 | 43,917 | ||||||
55,646 | ||||||||
Norwegian kroner 1.62% | ||||||||
Norway (Kingdom of) 3.75% 2021 | NKr299,750 | 39,988 | ||||||
Australian dollars 1.39% | ||||||||
Australia (Commonwealth of), Series 124, 5.75% 2021 | A$ 22,900 | 19,929 | ||||||
Australia (Commonwealth of), Series 128, 5.75% 2022 | 16,150 | 14,465 | ||||||
34,394 |
94 | American Funds Insurance Series |
Global Bond Fund
Bonds, notes & other debt instruments | Principal amount (000) | Value (000) | ||||||
British pounds 1.33% | ||||||||
United Kingdom 3.25% 2044 | £ | 6,500 | $ | 11,432 | ||||
United Kingdom 1.75%–4.25% 2022–2045 | 10,590 | 18,004 | ||||||
Other securities | 3,319 | |||||||
32,755 | ||||||||
Thai baht 1.16% | ||||||||
Thailand (Kingdom of) 1.49% 2019 | THB491,100 | 15,073 | ||||||
Thailand (Kingdom of) 1.88%–3.85% 2022–2026 | 433,200 | 13,516 | ||||||
28,589 | ||||||||
Danish kroner 1.05% | ||||||||
Nykredit Realkredit AS, Series 01E, 2.00% 20372 | DKr69,099 | 11,607 | ||||||
Realkredit Danmark AS, Series 22S, 2.00% 20372 | 68,140 | 11,451 | ||||||
Other securities | 2,748 | |||||||
25,806 | ||||||||
Chilean pesos 0.89% | ||||||||
Chile (Banco Central de) 4.50% 2021 | CLP13,200,000 | 21,977 | ||||||
Israeli shekels 0.85% | ||||||||
Israel (State of) 5.50% 2042 | ILS29,300 | 12,512 | ||||||
Other securities | 8,381 | |||||||
20,893 | ||||||||
Canadian dollars 0.77% | ||||||||
Canada 2.25% 2025 | C$19,600 | 15,870 | ||||||
Other securities | 3,097 | |||||||
18,967 | ||||||||
U.S. dollars 43.07% | ||||||||
Fannie Mae 4.00% 20482,3 | $ | 24,800 | 25,915 | |||||
Fannie Mae 2.18%–4.50% 2022–20482,3 | 12,330 | 12,682 | ||||||
Poland (Republic of) 3.25% 2026 | 4,100 | 4,195 | ||||||
U.S. Treasury 1.375% 2020 | 41,900 | 41,300 | ||||||
U.S. Treasury 1.625% 2020 | 38,900 | 38,560 | ||||||
U.S. Treasury 1.125% 20214 | 43,160 | 41,977 | ||||||
U.S. Treasury 2.00% 2021 | 23,450 | 23,374 | ||||||
U.S. Treasury 2.00% 2026 | 46,785 | 45,312 | ||||||
U.S. Treasury 2.25% 2027 | 18,700 | 18,446 | ||||||
U.S. Treasury 1.38%–2.13% 2021–2024 | 29,650 | 29,098 | ||||||
U.S. Treasury Inflation-Protected Security 0.125% 20221 | 122,652 | 121,800 | ||||||
U.S. Treasury Inflation-Protected Security 0.625% 20241 | 33,010 | 33,582 | ||||||
U.S. Treasury Inflation-Protected Security 0.25% 20251 | 11,560 | 11,457 | ||||||
U.S. Treasury Inflation-Protected Security 1.00% 20461 | 21,550 | 23,018 | ||||||
U.S. Treasury Inflation-Protected Securities 0.13%–2.38% 2024–20451 | 36,940 | 38,151 | ||||||
Other securities | 554,003 | |||||||
1,062,870 | ||||||||
Other 2.40% | ||||||||
Other securities | 59,260 | |||||||
Total bonds, notes & other debt instruments (cost: $2,173,424,000) | 2,213,019 | |||||||
Convertible stocks 0.05% | Shares | |||||||
U.S. dollars 0.05% | ||||||||
Other securities | 1,210 | |||||||
Total convertible stocks (cost: $1,202,000) | 1,210 |
American Funds Insurance Series | 95 |
Global Bond Fund
Common stocks 0.03% | Shares | Value (000) | ||||||
U.S. dollars 0.03% | ||||||||
Other securities | $ | 696 | ||||||
Total common stocks (cost: $2,528,000) | 696 | |||||||
Short-term securities 11.25% | Principal amount (000) | |||||||
American Honda Finance Corp. 1.43% due 1/24/2018 | $ | 36,000 | 35,962 | |||||
Japanese Treasury Discount Bills (0.16)% due 5/21/2018 | ¥ | 15,300,000 | 135,869 | |||||
Liberty Street Funding Corp. 1.78% due 3/21/20185 | $ | 25,000 | 24,901 | |||||
Mitsubishi UFJ Trust and Banking Corp. 1.52% due 1/19/20185 | 35,400 | 35,369 | ||||||
Royal Bank of Canada 1.53% due 1/16/2018 | 16,000 | 15,988 | ||||||
Victory Receivables Corp. 1.43% due 1/16/20185 | 12,200 | 12,191 | ||||||
Other securities | 17,268 | |||||||
Total short-term securities (cost: $276,867,000) | 277,548 | |||||||
Total investment securities 101.01% (cost: $2,454,021,000) | 2,492,473 | |||||||
Other assets less liabilities (1.01)% | (24,895 | ) | ||||||
Net assets 100.00% | $ | 2,467,578 |
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” includes securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities which were valued under fair value procedures was $2,478,000, which represented .10% of the net assets of the fund. “Other securities” also includes loan participations and assignments, which may be subject to legal or contractual restrictions on resale. The total value of all such loans was $5,582,000, which represented .23% of the net assets of the fund. Some securities in “Other securities” (with an aggregate value of $4,647,000, an aggregate cost of $5,346,000, and which represented .19% of the net assets of the fund) were acquired from 3/10/2010 to 8/9/2017 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject them to legal or contractual restrictions on resale.
Futures contracts
Unrealized | ||||||||||||||
(depreciation) | ||||||||||||||
Notional | Value at | appreciation | ||||||||||||
Number of | amount6 | 12/31/20177 | at 12/31/2017 | |||||||||||
Contracts | Type | contracts | Expiration | (000) | (000) | (000) | ||||||||
10 Year Ultra U.S. Treasury Note Futures | Long | 101 | March 2018 | $10,100 | $13,490 | $(78 | ) | |||||||
10 Year U.S. Treasury Note Futures | Long | 77 | March 2018 | 7,700 | 9,552 | (48 | ) | |||||||
30 Year Ultra U.S. Treasury Bond Futures | Long | 13 | March 2018 | 1,300 | 2,179 | 25 | ||||||||
5 Year U.S. Treasury Note Futures | Long | 1,524 | April 2018 | 152,400 | 177,034 | (428 | ) | |||||||
90 Day Euro Dollar Futures | Short | 366 | September 2018 | (91,500 | ) | (89,634 | ) | 170 | ||||||
$(359 | ) |
Forward currency contracts
Unrealized | ||||||||||
appreciation | ||||||||||
Contract amount | (depreciation) | |||||||||
Purchases | Sales | at 12/31/2017 | ||||||||
(000) | (000) | Counterparty | Settlement date | (000) | ||||||
USD7,771 | MXN140,900 | JPMorgan Chase | 1/4/2018 | $613 | ||||||
USD3,058 | CAD3,900 | Bank of America, N.A. | 1/5/2018 | (45 | ) | |||||
USD4,126 | INR267,100 | Citibank | 1/5/2018 | (55 | ) | |||||
USD7,869 | AUD10,200 | UBS AG | 1/5/2018 | (90 | ) | |||||
USD14,560 | INR941,650 | JPMorgan Chase | 1/5/2018 | (180 | ) |
96 | American Funds Insurance Series |
Global Bond Fund
Unrealized | ||||||||||
appreciation | ||||||||||
Contract amount | (depreciation) | |||||||||
Purchases | Sales | at 12/31/2017 | ||||||||
(000) | (000) | Counterparty | Settlement date | (000) | ||||||
USD2,774 | ZAR39,200 | UBS AG | 1/5/2018 | $(391 | ) | |||||
EUR5,084 | USD5,951 | Goldman Sachs | 1/8/2018 | 153 | ||||||
USD4,970 | ILS17,400 | Bank of America, N.A. | 1/9/2018 | (32 | ) | |||||
USD13,666 | EUR11,550 | HSBC Bank | 1/9/2018 | (202 | ) | |||||
EUR10,463 | USD12,500 | Bank of America, N.A. | 1/10/2018 | 63 | ||||||
USD3,153 | CAD4,050 | Bank of America, N.A. | 1/10/2018 | (70 | ) | |||||
JPY1,392,273 | USD12,434 | JPMorgan Chase | 1/10/2018 | (70 | ) | |||||
USD5,035 | PLN17,827 | JPMorgan Chase | 1/10/2018 | (86 | ) | |||||
USD4,029 | AUD5,300 | Goldman Sachs | 1/10/2018 | (106 | ) | |||||
JPY2,265,955 | USD20,240 | Bank of America, N.A. | 1/10/2018 | (117 | ) | |||||
USD5,171 | AUD6,800 | Bank of America, N.A. | 1/10/2018 | (135 | ) | |||||
USD7,691 | CAD9,850 | Goldman Sachs | 1/10/2018 | (147 | ) | |||||
JPY1,346,098 | USD12,121 | Barclays Bank PLC | 1/10/2018 | (167 | ) | |||||
JPY3,321,365 | USD29,938 | JPMorgan Chase | 1/10/2018 | (442 | ) | |||||
JPY835,989 | USD7,411 | Bank of America, N.A. | 1/11/2018 | 13 | ||||||
USD1,710 | AUD2,250 | Bank of America, N.A. | 1/11/2018 | (46 | ) | |||||
JPY2,218,752 | USD20,004 | UBS AG | 1/11/2018 | (299 | ) | |||||
EUR17,250 | USD20,075 | UBS AG | 1/12/2018 | 640 | ||||||
USD3,762 | MXN72,500 | HSBC Bank | 1/12/2018 | 85 | ||||||
USD12,610 | AUD16,760 | Citibank | 1/12/2018 | (467 | ) | |||||
USD5,694 | INR369,000 | Bank of America, N.A. | 1/16/2018 | (75 | ) | |||||
EUR14,702 | USD17,356 | JPMorgan Chase | 1/17/2018 | 305 | ||||||
JPY2,756,764 | USD24,449 | JPMorgan Chase | 1/17/2018 | 41 | ||||||
JPY1,698,519 | USD15,121 | Citibank | 1/17/2018 | (32 | ) | |||||
USD3,568 | EUR3,000 | Bank of America, N.A. | 1/17/2018 | (36 | ) | |||||
JPY3,324,831 | USD29,698 | HSBC Bank | 1/17/2018 | (162 | ) | |||||
CHF5,774 | USD5,864 | Goldman Sachs | 1/18/2018 | 70 | ||||||
JPY445,496 | USD3,951 | Goldman Sachs | 1/18/2018 | 7 | ||||||
NOK37,200 | USD4,441 | Bank of America, N.A. | 1/19/2018 | 92 | ||||||
EUR2,833 | GBP2,500 | HSBC Bank | 1/19/2018 | 26 | ||||||
USD9,255 | EUR7,850 | Bank of America, N.A. | 1/19/2018 | (176 | ) | |||||
EUR6,645 | USD7,833 | Bank of America, N.A. | 1/22/2018 | 153 | ||||||
JPY351,002 | USD3,128 | Citibank | 1/22/2018 | (9 | ) | |||||
JPY995,097 | USD8,894 | Barclays Bank PLC | 1/22/2018 | (52 | ) | |||||
SEK51,198 | USD6,101 | Citibank | 1/23/2018 | 151 | ||||||
EUR5,439 | USD6,441 | Citibank | 1/23/2018 | 95 | ||||||
JPY1,655,674 | USD14,688 | UBS AG | 1/23/2018 | 25 | ||||||
USD9,075 | ILS31,900 | JPMorgan Chase | 1/23/2018 | (101 | ) | |||||
USD6,140 | PLN21,950 | Citibank | 1/23/2018 | (166 | ) | |||||
SEK60,114 | USD7,094 | Barclays Bank PLC | 1/24/2018 | 247 | ||||||
JPY933,211 | USD8,249 | Goldman Sachs | 1/24/2018 | 45 | ||||||
EUR2,082 | USD2,500 | Citibank | 2/5/2018 | 4 | ||||||
USD6,121 | ILS21,303 | Bank of America, N.A. | 2/6/2018 | (11 | ) | |||||
JPY1,310,000 | USD11,635 | HSBC Bank | 2/15/2018 | 19 | ||||||
NOK32,573 | DKK24,600 | Citibank | 2/15/2018 | (4 | ) | |||||
JPY392,473 | USD3,499 | Citibank | 2/15/2018 | (8 | ) | |||||
SEK30,059 | USD3,588 | Barclays Bank PLC | 2/22/2018 | 88 | ||||||
JPY376,335 | USD3,336 | HSBC Bank | 2/23/2018 | 13 | ||||||
USD7,605 | INR504,900 | Citibank | 3/26/2018 | (221 | ) | |||||
USD5,942 | BRL19,300 | Citibank | 4/23/2018 | 196 | ||||||
USD138,524 | JPY15,300,000 | Citibank | 5/21/2018 | 1,645 | ||||||
USD5,348 | BRL18,000 | Citibank | 11/29/2018 | 117 | ||||||
USD169 | EUR140 | Bank of America, N.A. | 12/13/2018 | (3 | ) | |||||
USD2,008 | EUR1,670 | Bank of America, N.A. | 12/13/2018 | (43 | ) | |||||
$660 |
American Funds Insurance Series | 97 |
Global Bond Fund
Swap contracts
Interest rate swaps
Unrealized | |||||||||||||||
Upfront | (depreciation | ) | |||||||||||||
Value at | payments/ | appreciation | |||||||||||||
Expiration | Notional | 12/31/2017 | receipts | at 12/31/2017 | |||||||||||
Receive | Pay | date | (000) | (000) | (000) | (000) | |||||||||
7.46% | 28-day MXN-TIIE | 11/6/2018 | MXN1,356,000 | $(335 | ) | $ — | $(335 | ) | |||||||
7.455% | 28-day MXN-TIIE | 11/7/2018 | 1,099,000 | (274 | ) | — | (274 | ) | |||||||
7.44% | 28-day MXN-TIIE | 11/7/2018 | 3,045,000 | (779 | ) | — | (779 | ) | |||||||
1.6505% | 3-month USD-LIBOR | 3/21/2019 | $85,000 | (290 | ) | — | (290 | ) | |||||||
3-month USD-LIBOR | 2.0335% | 12/19/2019 | 35,000 | 18 | — | 18 | |||||||||
9.145% | DI-OVER-EXTRA Grupo | 1/4/2021 | BRL108,000 | 244 | — | 244 | |||||||||
6.775% | 28-day MXN-TIIE | 6/20/2022 | MXN280,000 | (590 | ) | — | (590 | ) | |||||||
3-month SEK-STIBOR | 0.425% | 8/4/2022 | SKr140,000 | (16 | ) | — | (16 | ) | |||||||
3-month USD-LIBOR | 2.4275% | 10/31/2027 | $7,050 | (27 | ) | — | (27 | ) | |||||||
3-month USD-LIBOR | 2.556% | 11/27/2045 | 10,000 | (40 | ) | — | (40 | ) | |||||||
3-month USD-LIBOR | 1.909% | 10/11/2046 | 5,750 | 772 | — | 772 | |||||||||
3-month USD-LIBOR | 2.659% | 2/8/2047 | 6,000 | (159 | ) | — | (159 | ) | |||||||
1.4898% | 6-month EURIBOR | 11/24/2047 | €2,150 | (3 | ) | — | (3 | ) | |||||||
$ — | $(1,479 | ) |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Index-linked bond whose principal amount moves with a government price index. |
2 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
3 | Purchased on a TBA basis. |
4 | A portion of this security was pledged as collateral. The total value of pledged collateral was $8,305,000, which represented .34% 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 $259,235,000, which represented 10.51% of the net assets of the fund. |
6 | Notional amount is calculated based on the number of contracts and notional contract size. |
7 | Value is calculated based on the notional amount and current market price. |
Key to abbreviations and symbols
AUD/A$ = Australian dollars
BRL = Brazilian reais
CAD/C$ = Canadian dollars
CHF = Swiss francs
CLP = Chilean pesos
DI-OVER-EXTRA Grupo = Overnight Brazilian Interbank Deposit Rate
DKK/DKr = Danish kroner
EUR/€ = Euros
EURIBOR = Euro Interbank Offered Rate
GBP/£ = British pounds
ILS = Israeli shekels
INR = Indian rupees
JPY/¥ = Japanese yen
LIBOR = London Interbank Offered Rate
MXN = Mexican pesos
MYR = Malaysian ringgits
NKr = Norwegian kroner
PLN = Polish zloty
SEK/SKr = Swedish kronor
STIBOR = Stockholm Interbank Offered Rate
TBA = To-be-announced
THB = Thai baht
TIIE = Equilibrium Interbank Interest Rate
USD/$ = U.S. dollars
ZAR = South African rand
See Notes to Financial Statements
98 | American Funds Insurance Series |
High-Income Bond Fund
Summary investment portfolio December 31, 2017
Bonds, notes & other debt instruments 94.25% | Principal amount (000) | Value (000) | ||||||
Corporate bonds & notes 93.34% | ||||||||
Energy 19.39% | ||||||||
American Energy (Marcellus), Term Loan B, (3-month USD-LIBOR + 4.25%) 5.710% 20201,2,3,4 | $ | 7,533 | $ | 5,574 | ||||
American Energy (Permian Basin) 7.125% 20205 | 7,445 | 6,068 | ||||||
American Energy (Permian Basin) 7.375% 20215 | 6,770 | 5,484 | ||||||
Blackstone CQP Holdco LP, 6.00% 20215,6 | 1,600 | 1,612 | ||||||
Blackstone CQP Holdco LP, 6.50% 20215,6 | 20,685 | 21,099 | ||||||
Chesapeake Energy Corp. 8.00% 20255 | 10,025 | 10,138 | ||||||
Chesapeake Energy Corp. 4.61%–8.00% 2019–20274,5 | 13,838 | 13,716 | ||||||
CONSOL Energy Inc. 5.875% 2022 | 11,299 | 11,596 | ||||||
NGL Energy Partners LP 6.875% 2021 | 6,415 | 6,575 | ||||||
Southwestern Energy Co. 4.10% 2022 | 8,915 | 8,804 | ||||||
Teekay Corp. 8.50% 2020 | 11,168 | 11,419 | ||||||
Weatherford International PLC 6.75% 2040 | 7,755 | 6,398 | ||||||
Weatherford International PLC 4.50%–9.88% 2021–2042 | 12,680 | 11,458 | ||||||
Other securities | 161,929 | |||||||
281,870 | ||||||||
Health care 12.43% | ||||||||
Centene Corp. 4.75% 2022 | 6,515 | 6,792 | ||||||
Molina Healthcare, Inc. 5.375% 2022 | 10,285 | 10,774 | ||||||
Molina Healthcare, Inc. 4.875% 20255 | 3,975 | 3,985 | ||||||
Rotech Healthcare Inc., Term Loan, (3-month USD-LIBOR + 11.00%) 13.00% 2020 (84.62% PIK)2,3,4,7,8,9 | 6,709 | 6,343 | ||||||
Tenet Healthcare Corp. 4.38%–8.13% 2021–20255 | 12,272 | 12,161 | ||||||
Tenet Healthcare Corp., First Lien, 6.00% 2020 | 6,490 | 6,886 | ||||||
Tenet Healthcare Corp., First Lien 4.50%–4.75% 2020–2021 | 5,405 | 5,510 | ||||||
Valeant Pharmaceuticals International, Inc. 5.875% 20235 | 8,860 | 8,229 | ||||||
Valeant Pharmaceuticals International, Inc. 6.125% 20255 | 17,245 | 15,844 | ||||||
Valeant Pharmaceuticals International, Inc. 5.38%–9.00% 2020–20255 | 15,503 | 15,897 | ||||||
Other securities | 88,292 | |||||||
180,713 | ||||||||
Consumer discretionary 12.12% | ||||||||
CCO Holdings LLC and CCO Holdings Capital Corp. 5.75% 20265 | 10,320 | 10,746 | ||||||
CCO Holdings LLC and CCO Holdings Capital Corp. 5.00% 20285 | 6,025 | 5,889 | ||||||
CCO Holdings LLC and CCO Holdings Capital Corp. 4.00%–5.88% 2023–20275 | 9,450 | 9,547 | ||||||
Clear Channel Worldwide Holdings, Inc. 7.625% 2020 | 12,563 | 12,359 | ||||||
iHeartCommunications, Inc. 9.00% 2019 | 10,385 | 7,763 | ||||||
Petsmart, Inc. 5.875% 20255 | 11,175 | 8,633 | ||||||
Petsmart, Inc. 7.13%–8.88% 2023–20255 | 7,785 | 4,702 | ||||||
Petsmart, Inc., Term Loan B-2, (3-month USD-LIBOR + 3.00%) 4.57% 20222,3,4 | 1,952 | 1,573 | ||||||
Sotheby’s 4.875% 20255 | 6,870 | 6,793 | ||||||
Wynn Las Vegas, LLC and Wynn Capital Corp. 5.50% 20255 | 6,525 | 6,737 | ||||||
Other securities | 101,530 | |||||||
176,272 | ||||||||
Materials 12.00% | ||||||||
Cleveland-Cliffs Inc. 4.875% 20245 | 1,800 | 1,800 | ||||||
Cliffs Natural Resources Inc. 5.75% 20255 | 14,550 | 13,932 | ||||||
Cliffs Natural Resources Inc. 6.25% 2040 | 1,735 | 1,366 | ||||||
First Quantum Minerals Ltd. 7.00% 20215 | 8,505 | 8,845 | ||||||
First Quantum Minerals Ltd. 7.50% 20255 | 12,400 | 13,500 | ||||||
First Quantum Minerals Ltd. 7.25% 2022–20235 | 3,900 | 4,141 | ||||||
Freeport-McMoRan Inc. 3.55% 2022 | 6,715 | 6,656 | ||||||
Ryerson Inc. 11.00% 20225 | 6,336 | 7,104 | ||||||
Other securities | 117,113 | |||||||
174,457 |
American Funds Insurance Series | 99 |
High-Income Bond Fund
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Corporate bonds & notes (continued) | ||||||||
Telecommunication services 9.34% | ||||||||
Cequel Communications Holdings I, LLC and Cequel Capital Corp. 6.375% 20205 | $ | 5,367 | $ | 5,461 | ||||
Frontier Communications Corp. 11.00% 2025 | 11,850 | 8,769 | ||||||
Frontier Communications Corp. 8.50%–10.50% 2020–2022 | 11,405 | 9,156 | ||||||
Ligado Networks, Term Loan, (3-month USD-LIBOR + 8.75%) 10.07% 2020 (100% PIK)2,3,4,7 | 8,690 | 8,082 | ||||||
SoftBank Group Corp. 4.50% 20205 | 8,550 | 8,755 | ||||||
Sprint Capital Corp. 8.75% 2032 | 1,025 | 1,166 | ||||||
Sprint Corp. 11.50% 2021 | 5,880 | 7,130 | ||||||
Sprint Nextel Corp. 6.88%–7.88% 2021–2028 | 14,295 | 14,861 | ||||||
Wind Tre SpA 5.00% 20265 | 6,675 | 6,381 | ||||||
Other securities | 65,969 | |||||||
135,730 | ||||||||
Industrials 8.54% | ||||||||
Associated Materials, LLC 9.00% 20245 | 7,125 | 7,713 | ||||||
Brand Energy 8.5% 20255 | 6,005 | 6,320 | ||||||
Corporate Risk Holdings LLC 9.50% 20195 | 12,782 | 13,373 | ||||||
Corporate Risk Holdings LLC 13.50% 2020 (100% PIK)5,7,8,9 | 1,112 | 1,190 | ||||||
DAE Aviation Holdings, Inc. 10.00% 20235 | 7,065 | 7,771 | ||||||
Other securities | 87,784 | |||||||
124,151 | ||||||||
Information technology 8.03% | ||||||||
Camelot Finance SA 7.875% 20245 | 5,630 | 6,024 | ||||||
Gogo Inc. 12.50% 20225 | 11,050 | 12,500 | ||||||
Infor Software 7.125% 20215,7 | 5,785 | 5,944 | ||||||
Kronos Inc., Term Loan B, (3-month USD-LIBOR + 8.25%) 9.627% 20242,3,4 | 7,870 | 8,187 | ||||||
Unisys Corp. 10.75% 20225 | 7,275 | 8,166 | ||||||
Other securities | 75,875 | |||||||
116,696 | ||||||||
Utilities 4.10% | ||||||||
AES Corp. 7.375% 2021 | 5,925 | 6,680 | ||||||
AES Corp. 4.88%–8.00% 2020–20275 | 13,506 | 14,412 | ||||||
Other securities | 38,456 | |||||||
59,548 | ||||||||
Financials 3.23% | ||||||||
CIT Group Inc. 3.875% 2019 | 6,835 | 6,921 | ||||||
Other securities | 40,079 | |||||||
47,000 | ||||||||
Real estate 2.11% | ||||||||
Iron Mountain Inc. 5.75% 2024 | 5,975 | 6,080 | ||||||
Other securities | 24,604 | |||||||
30,684 | ||||||||
Consumer staples 2.05% | ||||||||
Other securities | 29,872 | |||||||
Total corporate bonds & notes | 1,356,993 | |||||||
Other bonds & notes 0.91% | ||||||||
U.S. Treasury 1.25% 2019 | 10,000 | 9,921 | ||||||
Other securities | 3,417 | |||||||
13,338 | ||||||||
Total bonds, notes & other debt instruments (cost: $1,356,968,000) | 1,370,331 |
100 | American Funds Insurance Series |
High-Income Bond Fund
Convertible bonds 0.40% | Principal amount (000) | Value (000) | ||||||
Energy 0.08% | ||||||||
Weatherford International PLC 5.875% 2021 | $ | 527 | $ | 572 | ||||
Other securities | 585 | |||||||
1,157 | ||||||||
Other 0.15% | ||||||||
Other securities | 2,159 | |||||||
Miscellaneous 0.17% | ||||||||
Other convertible bonds in initial period of acquisition | 2,544 | |||||||
Total convertible bonds (cost: $5,582,000) | 5,860 | |||||||
Convertible stocks 0.91% | Shares | |||||||
Industrials 0.68% | ||||||||
Associated Materials, LLC, 14.00% convertible preferred 20208,9 | 4,850 | 5,553 | ||||||
Other securities | 4,257 | |||||||
9,810 | ||||||||
Information technology 0.04% | ||||||||
Other securities | 643 | |||||||
Telecommunication services 0.01% | ||||||||
Frontier Communications Corp., Series A, convertible preferred | 10,000 | 108 | ||||||
Miscellaneous 0.18% | ||||||||
Other convertible stocks in initial period of acquisition | 2,619 | |||||||
Total convertible stocks (cost: $15,788,000) | 13,180 | |||||||
Common stocks 0.75% | ||||||||
Information technology 0.26% | ||||||||
Corporate Risk Holdings I, Inc.6,8,9,10 | 218,504 | 3,863 | ||||||
Other securities | — | |||||||
3,863 | ||||||||
Other 0.32% | ||||||||
Other securities | 4,531 | |||||||
Miscellaneous 0.17% | ||||||||
Other common stocks in initial period of acquisition | 2,462 | |||||||
Total common stocks (cost: $26,386,000) | 10,856 | |||||||
Rights & warrants 0.00% | ||||||||
Utilities 0.00% | ||||||||
Other securities | 36 | |||||||
Total rights & warrants (cost: $63,000) | 36 |
American Funds Insurance Series | 101 |
High-Income Bond Fund
Short-term securities 1.68% | Principal amount (000) | Value (000) | ||||||
General Electric Co. 1.42% due 1/2/2018 | $ | 13,600 | $ | 13,598 | ||||
U.S. Treasury Bills 1.11% due 1/11/2018 | 10,800 | 10,796 | ||||||
Total short-term securities (cost: $24,396,000) | 24,394 | |||||||
Total investment securities 97.99% (cost: $1,429,183,000) | 1,424,657 | |||||||
Other assets less liabilities 2.01% | 29,223 | |||||||
Net assets 100.00% | $ | 1,453,880 |
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.
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2017 (000) | Upfront payments/ receipts (000) | Unrealized appreciation (depreciation) at 12/31/2017 (000) | |||||||||
3-month USD-LIBOR | 2.0745% | 11/21/2026 | $18,600 | $431 | $— | $431 | |||||||||
3-month USD-LIBOR | 2.2825% | 4/13/2027 | 10,700 | 81 | — | 81 | |||||||||
2.2865% | 3-month USD-LIBOR | 10/2/2027 | 10,100 | (90 | ) | — | (90 | ) | |||||||
$— | $422 |
Credit default swaps
Centrally cleared credit default swaps on credit indices — buy protection
Receive | Pay/ Payment frequency | Expiration date | Notional (000) | Value at 12/31/2017 (000) | Upfront payments (000) | Unrealized depreciation at 12/31/2017 (000) | ||||||||
CDX.NA.HY.29 | 5.00%/Quarterly | 12/20/2022 | $108,000 | $(8,915) | $(8,496) | $(419) |
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 | Scheduled interest and/or principal payment was not received. |
2 | Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans, including those in “Other securities,” was $89,280,000, which represented 6.14% 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 $745,292,000, which represented 51.26% of the net assets of the fund. |
6 | 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 on the next page. |
7 | Payment in kind; the issuer has the option of paying additional securities in lieu of cash. Most recent payment was 100% cash unless otherwise noted. |
8 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous” and “Other securities,” was $32,234,000, which represented 2.22% of the net assets of the fund. |
9 | Value determined using significant unobservable inputs. |
10 | Security did not produce income during the last 12 months. |
102 | American Funds Insurance Series |
High-Income Bond Fund
Private placement securities | Acquisition date(s) | Cost (000) | Value (000) | Percent of net assets | ||||||||||
Blackstone CQP Holdco LP, 6.50% 2021 | 3/6/2017 | $ | 20,695 | $ | 21,099 | 1.45 | % | |||||||
Blackstone CQP Holdco LP, 6.00% 2021 | 8/9/2017 | 1,600 | 1,612 | .11 | ||||||||||
Corporate Risk Holdings I, Inc. | 8/31/2015 | 2,428 | 3,863 | .27 | ||||||||||
Corporate Risk Holdings Corp. | 8/31/2015 | — | — | .00 | ||||||||||
Other securities | 12/13/2012-11/15/2016 | 17,830 | 8,493 | .58 | ||||||||||
Total private placement securities | $ | 42,553 | $ | 35,067 | 2.41 | % |
Key to abbreviations and symbol
LIBOR = London Interbank Offered Rate
USD/$ = U.S. dollars
See Notes to Financial Statements
American Funds Insurance Series | 103 |
Mortgage Fund
Summary investment portfolio December 31, 2017
Bonds, notes & other debt instruments 95.14% | Principal amount (000) | Value (000) | ||||||
Mortgage-backed obligations 63.46% | ||||||||
Federal agency mortgage-backed obligations 60.15% | ||||||||
Fannie Mae 4.00% 20471 | $ | 7,816 | $ | 8,189 | ||||
Fannie Mae 4.00% 20471 | 4,844 | 5,075 | ||||||
Fannie Mae 4.00% 20481,2 | 17,250 | 18,026 | ||||||
Fannie Mae 4.50% 20481,2 | 3,700 | 3,932 | ||||||
Fannie Mae 4.00%–5.00% 20361 | 1,133 | 1,196 | ||||||
Freddie Mac 4.00% 20361 | 5,848 | 6,186 | ||||||
Freddie Mac 4.00% 20471 | 9,510 | 9,960 | ||||||
Freddie Mac 4.00% 20481,2 | 25,000 | 26,154 | ||||||
Freddie Mac 4.00% 20481,2 | 22,854 | 23,877 | ||||||
Freddie Mac Pool #760014 2.969% 20451,3 | 2,989 | 3,001 | ||||||
Freddie Mac, Series KJ02, Class A2, Multi Family 2.597% 20201 | 3,704 | 3,722 | ||||||
Freddie Mac, Series K031, Class A2, Multi Family 3.30% 20231,3 | 4,722 | 4,914 | ||||||
Freddie Mac 3.31%–5.00% 2023–20361,3 | 3,696 | 3,916 | ||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-2, Class HA, 2.00% 20561 | 1,814 | 1,803 | ||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-2, Class MA, 3.00% 20561 | 1,675 | 1,675 | ||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-4, Class HT, 2.25% 20571 | 13,810 | 13,780 | ||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-4, Class MT, 3.50% 20571 | 8,325 | 8,518 | ||||||
Government National Mortgage Assn. 5.50% 20401 | 2,246 | 2,499 | ||||||
Government National Mortgage Assn. 3.50% 20431 | 2,453 | 2,558 | ||||||
Government National Mortgage Assn. 3.50% 20431 | 1,754 | 1,816 | ||||||
Government National Mortgage Assn. 3.50% 20431 | 1,714 | 1,783 | ||||||
Government National Mortgage Assn. 4.25% 20441 | 1,764 | 1,867 | ||||||
Government National Mortgage Assn. 4.00% 20471 | 17,763 | 18,613 | ||||||
Government National Mortgage Assn. 4.50% 20481,2 | 4,950 | 5,193 | ||||||
Government National Mortgage Assn. 4.737% 20651 | 1,697 | 1,769 | ||||||
Government National Mortgage Assn. 4.62% 20661 | 1,792 | 1,900 | ||||||
Government National Mortgage Assn. 3.50%–6.50% 2034–20661 | 15,339 | 15,981 | ||||||
Vendee Mortgage Trust, Series 2011-2, Class V, 3.75% 20281 | 4,544 | 4,557 | ||||||
Vendee Mortgage Trust, Series 2010-1, Class DA, 4.25% 20351 | 680 | 700 | ||||||
Other securities | 1,473 | |||||||
204,633 | ||||||||
Collateralized mortgage-backed (privately originated) 3.28% | ||||||||
Towd Point Mortgage Trust, Series 2015-2, Class 2A11, 3.00% 20571,3,4 | 2,160 | 2,175 | ||||||
Other securities | 8,985 | |||||||
11,160 | ||||||||
Commercial mortgage-backed securities 0.03% | ||||||||
Other securities | 91 | |||||||
Total mortgage-backed obligations | 215,884 | |||||||
U.S. Treasury bonds & notes 16.09% | ||||||||
U.S. Treasury 10.57% | ||||||||
U.S. Treasury 1.875% 2022 | 19,800 | 19,515 | ||||||
U.S. Treasury 1.875% 20225 | 5,000 | 4,941 | ||||||
U.S. Treasury 2.00% 2022 | 7,300 | 7,238 | ||||||
U.S. Treasury 2.50% 2024 | 2,500 | 2,528 | ||||||
U.S. Treasury 1.50%–2.13% 2020–2022 | 1,744 | 1,735 | ||||||
35,957 |
104 | American Funds Insurance Series |
Mortgage Fund
Bonds, notes & other debt instruments | Principal amount (000) | Value (000) | ||||||
U.S. Treasury inflation-protected securities 5.52% | ||||||||
U.S. Treasury Inflation-Protected Security 0.375% 20255,6 | $ | 7,489 | $ | 7,501 | ||||
U.S. Treasury Inflation-Protected Security 2.125% 20416 | 124 | 163 | ||||||
U.S. Treasury Inflation-Protected Security 0.75% 20426 | 7,025 | 7,095 | ||||||
U.S. Treasury Inflation-Protected Security 1.375% 20446 | 3,466 | 4,004 | ||||||
18,763 | ||||||||
Total U.S. Treasury bonds & notes | 54,720 | |||||||
Federal agency bonds & notes 12.22% | ||||||||
Fannie Mae 1.88%–2.00% 2022 | 21,800 | 21,617 | ||||||
Federal Home Loan Bank 1.38%–1.88% 2021 | 13,000 | 12,852 | ||||||
United States Agency for International Development, Jordan (Kingdom of) 2.503% 2020 | 7,000 | 7,087 | ||||||
41,556 | ||||||||
Asset-backed obligations 3.32% | ||||||||
Hertz Vehicle Financing LLC, Rental Car Asset-backed Notes, Series 2015-1, Class A, 2.73% 20211,4 | 1,823 | 1,829 | ||||||
Other securities | 9,456 | |||||||
11,285 | ||||||||
Corporate bonds & notes 0.05% | ||||||||
Financials 0.05% | ||||||||
Other securities | 187 | |||||||
Total bonds, notes & other debt instruments (cost: $322,647,000) | 323,632 | |||||||
Short-term securities 27.27% | ||||||||
Apple Inc. 1.22% due 1/12/20184 | 4,000 | 3,998 | ||||||
Bank of Tokyo-Mitsubishi UFJ, Ltd. 1.49% due 1/10/2018 | 7,000 | 6,996 | ||||||
CAFCO, LLC 1.39% due 2/2/20184 | 3,900 | 3,894 | ||||||
Eli Lilly and Co. 1.28% due 1/8/20184 | 9,000 | 8,996 | ||||||
Emerson Electric Co. 1.27% due 1/29/20184 | 5,500 | 5,493 | ||||||
Federal Farm Credit Banks 1.32% due 4/19/2018 | 5,000 | 4,978 | ||||||
Federal Home Loan Bank 1.15%–1.30% due 1/5/2018–2/14/2018 | 25,750 | 25,731 | ||||||
General Electric Co. 1.42% due 1/2/2018 | 6,000 | 5,999 | ||||||
National Rural Utilities Cooperative Finance Corp. 1.51% due 1/17/2018 | 5,000 | 4,996 | ||||||
Paccar Financial Corp. 1.26% due 1/12/2018 | 5,500 | 5,497 | ||||||
Private Export Funding Corp. 1.25% due 1/4/20184 | 8,210 | 8,208 | ||||||
Toronto-Dominion Bank 1.45% due 3/16/20184 | 8,000 | 7,971 | ||||||
Total short-term securities (cost: $92,772,000) | 92,757 | |||||||
Total investment securities 122.41% (cost: $415,419,000) | 416,389 | |||||||
Other assets less liabilities (22.41)% | (76,219 | ) | ||||||
Net assets 100.00% | $ | 340,170 |
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” includes securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities which were valued under fair value procedures was $1,579,000, which represented .46% of the net assets of the fund.
American Funds Insurance Series | 105 |
Mortgage Fund
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount7 (000) | Value at 12/31/20178 (000) | Unrealized (depreciation) appreciation at 12/31/2017 (000) | ||||||||||||
10 Year Ultra U.S. Treasury Note Futures | Long | 95 | March 2018 | $ | 9,500 | $ | 12,689 | $ | (73 | ) | ||||||||
20 Year U.S. Treasury Bond Futures | Long | 48 | March 2018 | 4,800 | 7,344 | 8 | ||||||||||||
30 Year Ultra U.S. Treasury Bond Futures | Long | 11 | March 2018 | 1,100 | 1,844 | 13 | ||||||||||||
5 Year U.S. Treasury Note Futures | Long | 1,136 | April 2018 | 113,600 | 131,962 | (580 | ) | |||||||||||
$ | (632 | ) |
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2017 (000) | Upfront payments/ receipts (000) | Unrealized appreciation (depreciation) at 12/31/2017 (000) | ||||||||||||||
3-month USD-LIBOR | 1.217% | 9/22/2021 | $ | 11,500 | $ | 406 | $ | — | $ | 406 | ||||||||||
3-month USD-LIBOR | 1.225% | 9/22/2021 | 11,500 | 402 | — | 402 | ||||||||||||||
3-month USD-LIBOR | 1.2796% | 10/11/2021 | 14,500 | 485 | — | 485 | ||||||||||||||
2.0135% | 3-month USD-LIBOR | 10/20/2021 | 30,000 | (202 | ) | — | (202 | ) | ||||||||||||
2.012% | 3-month USD-LIBOR | 10/4/2022 | 9,000 | (91 | ) | — | (91 | ) | ||||||||||||
2.00% | 3-month USD-LIBOR | 10/5/2022 | 41,500 | (441 | ) | — | (441 | ) | ||||||||||||
2.1045% | 3-month USD-LIBOR | 10/31/2022 | 4,000 | (23 | ) | — | (23 | ) | ||||||||||||
3-month USD-LIBOR | 2.24% | 12/5/2026 | 10,500 | 104 | — | 104 | ||||||||||||||
3-month USD-LIBOR | 2.27% | 12/5/2026 | 8,500 | 63 | — | 63 | ||||||||||||||
3-month USD-LIBOR | 3.34% | 6/27/2044 | 3,500 | (564 | ) | — | (564 | ) | ||||||||||||
3-month USD-LIBOR | 3.206% | 7/31/2044 | 2,000 | (270 | ) | — | (270 | ) | ||||||||||||
3-month USD-LIBOR | 3.238% | 8/8/2044 | 2,000 | (283 | ) | — | (283 | ) | ||||||||||||
3-month USD-LIBOR | 3.2265% | 9/25/2044 | 3,000 | (418 | ) | — | (418 | ) | ||||||||||||
3-month USD-LIBOR | 2.5055% | 1/9/2045 | 2,000 | 14 | — | 14 | ||||||||||||||
3-month USD-LIBOR | 2.454% | 1/15/2045 | 3,200 | 55 | — | 55 | ||||||||||||||
3-month USD-LIBOR | 2.52822% | 11/23/2045 | 3,560 | 6 | — | 6 | ||||||||||||||
3-month USD-LIBOR | 2.59125% | 12/16/2045 | 2,250 | (25 | ) | — | (25 | ) | ||||||||||||
U.S. EFFR | 2.145% | 11/9/2047 | 2,200 | 4 | — | 4 | ||||||||||||||
U.S. EFFR | 2.153% | 11/10/2047 | 2,200 | — | 9 | — | — | 9 | ||||||||||||
U.S. EFFR | 2.155% | 11/10/2047 | 1,280 | — | 9 | — | — | 9 | ||||||||||||
U.S. EFFR | 2.17% | 11/13/2047 | 2,320 | (8 | ) | — | (8 | ) | ||||||||||||
$ | — | $ | (786 | ) |
106 | American Funds Insurance Series |
Mortgage Fund
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
2 | Purchased on a TBA basis. |
3 | Coupon rate may change periodically. |
4 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $57,740,000, which represented 16.97% of the net assets of the fund. |
5 | A portion of this security was pledged as collateral. The total value of pledged collateral was $7,383,000, which represented 2.17% of the net assets of the fund. |
6 | Index-linked bond whose principal amount moves with a government price index. |
7 | Notional amount is calculated based on the number of contracts and notional contract size. |
8 | Value is calculated based on the notional amount and current market price. |
9 | Amount less than one thousand. |
Key to abbreviations and symbol
EFFR = Federal Funds Effective Rate
LIBOR = London Interbank Offered Rate
TBA = To-be-announced
USD/$ = U.S. dollars
See Notes to Financial Statements
American Funds Insurance Series | 107 |
Ultra-Short Bond Fund
Investment portfolio December 31, 2017
Short-term securities 100.30% | Principal amount (000) | Value (000) | ||||||
Commercial paper 82.90% | ||||||||
American Honda Finance Corp. 1.43% due 1/24/2018 | $ | 8,100 | $ | 8,092 | ||||
Bank of Tokyo-Mitsubishi UFJ, Ltd. 1.56% due 2/14/20181 | 9,000 | 8,980 | ||||||
BMW U.S. Capital LLC 1.59% due 3/19/20181 | 5,000 | 4,983 | ||||||
British Columbia (Province of) 1.27% due 1/16/2018 | 11,000 | 10,992 | ||||||
CAFCO, LLC 1.41% due 2/13/20181 | 10,500 | 10,479 | ||||||
Cisco Systems, Inc. 1.50% due 2/15/20181 | 8,000 | 7,984 | ||||||
DBS Bank Ltd. 1.42%–1.46% due 2/2/2018–2/15/20181 | 10,600 | 10,581 | ||||||
Estée Lauder Companies Inc. 1.49% due 1/22/20181 | 5,000 | 4,995 | ||||||
ExxonMobil Corp. 1.40% due 1/23/2018 | 6,300 | 6,294 | ||||||
General Electric Co. 1.42% due 1/2/2018 | 11,000 | 10,998 | ||||||
IBM Credit LLC 1.62% due 3/13/20181 | 8,600 | 8,573 | ||||||
John Deere Canada ULC 1.32% due 1/5/20181 | 2,200 | 2,199 | ||||||
KfW 1.32% due 1/12/20181 | 12,000 | 11,994 | ||||||
Liberty Street Funding Corp. 1.40% due 2/1/20181 | 10,000 | 9,985 | ||||||
Mizuho Bank, Ltd. 1.40% due 2/15/20181 | 10,000 | 9,978 | ||||||
National Australia Bank Ltd. 1.65% due 4/4/20181 | 8,900 | 8,860 | ||||||
Nordea Bank AB 1.37% due 2/14/20181 | 10,500 | 10,480 | ||||||
Old Line Funding, LLC 1.36% due 1/22/20181 | 4,400 | 4,395 | ||||||
Paccar Financial Corp. 1.28% due 1/9/2018 | 5,100 | 5,098 | ||||||
Province of Alberta 1.45% due 1/10/20181 | 3,700 | 3,698 | ||||||
Prudential Funding, LLC 1.35% due 1/12/2018 | 10,500 | 10,494 | ||||||
Qualcomm Inc. 1.32% due 2/6/20181 | 7,800 | 7,787 | ||||||
Québec (Province of) 1.49% due 1/18/20181 | 11,000 | 10,991 | ||||||
Royal Bank of Canada 1.34% due 1/8/2018 | 6,000 | 5,998 | ||||||
Simon Property Group, L.P. 1.54% due 3/15/20181 | 6,100 | 6,080 | ||||||
Société Générale 1.41% due 1/31/20181 | 10,400 | 10,385 | ||||||
Swedbank AB 1.51% due 3/21/2018 | 5,000 | 4,984 | ||||||
Total Capital Canada Ltd. 1.66% due 3/16/20181 | 10,100 | 10,066 | ||||||
Toyota Industries Commercial Finance, Inc. 1.37% due 1/22/20181 | 6,200 | 6,194 | ||||||
Unilever Capital Corp. 1.43% due 2/26/20181 | 9,600 | 9,577 | ||||||
Walt Disney Co. 1.45% due 1/29/20181 | 10,500 | 10,487 | ||||||
252,681 | ||||||||
Federal agency discount notes 17.40% | ||||||||
Federal Home Loan Bank 1.08%–1.32% due 1/5/2018–2/28/2018 | 53,100 | 53,046 | ||||||
Total short-term securities (cost: $305,768,000) | 305,727 | |||||||
Total investment securities 100.30% (cost: $305,768,000) | 305,727 | |||||||
Other assets less liabilities (0.30)% | (922 | ) | ||||||
Net assets 100.00% | $ | 304,805 |
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 $189,731,000, which represented 62.25% of the net assets of the fund. |
See Notes to Financial Statements
108 | American Funds Insurance Series |
U.S. Government/AAA-Rated Securities Fund
Summary investment portfolio December 31, 2017
Bonds, notes & other debt instruments 92.82% | Principal amount (000) | Value (000) | ||||||
U.S. Treasury bonds & notes 50.54% | ||||||||
U.S. Treasury 40.71% | ||||||||
U.S. Treasury 1.125% 2021 | $ | 31,950 | $ | 30,869 | ||||
U.S. Treasury 1.75% 20211 | 40,540 | 39,981 | ||||||
U.S. Treasury 2.00% 2021 | 46,300 | 46,077 | ||||||
U.S. Treasury 2.00% 2021 | 44,350 | 44,207 | ||||||
U.S. Treasury 2.00% 2021 | 26,500 | 26,461 | ||||||
U.S. Treasury 2.125% 2021 | 23,450 | 23,475 | ||||||
U.S. Treasury 2.25% 2021 | 64,745 | 65,141 | ||||||
U.S. Treasury 2.25% 2021 | 38,000 | 38,258 | ||||||
U.S. Treasury 1.75% 2022 | 198,300 | 194,846 | ||||||
U.S. Treasury 1.875% 2022 | 63,000 | 62,254 | ||||||
U.S. Treasury 1.875% 2022 | 45,000 | 44,395 | ||||||
U.S. Treasury 2.00% 2022 | 80,000 | 79,316 | ||||||
U.S. Treasury 2.00% 2022 | 43,510 | 43,121 | ||||||
U.S. Treasury 1.50% 2023 | 26,020 | 25,111 | ||||||
U.S. Treasury 1.625% 2023 | 38,150 | 36,961 | ||||||
U.S. Treasury 2.125% 2023 | 64,095 | 63,582 | ||||||
U.S. Treasury 2.125% 2024 | 115,975 | 114,525 | ||||||
U.S. Treasury 2.25% 2024 | 40,550 | 40,365 | ||||||
U.S. Treasury 2.50% 2024 | 44,000 | 44,502 | ||||||
U.S. Treasury 2.75% 2047 | 50,501 | 50,572 | ||||||
U.S. Treasury 1.13%–6.25% 2021–2047 | 148,817 | 149,234 | ||||||
1,263,253 | ||||||||
U.S. Treasury inflation-protected securities 9.83% | ||||||||
U.S. Treasury Inflation-Protected Security 0.25% 20252 | 27,223 | 26,981 | ||||||
U.S. Treasury Inflation-Protected Security 0.375% 20252 | 86,645 | 86,784 | ||||||
U.S. Treasury Inflation-Protected Security 2.375% 20252 | 24,864 | 28,333 | ||||||
U.S. Treasury Inflation-Protected Security 0.375% 20272 | 68,267 | 67,914 | ||||||
U.S. Treasury Inflation-Protected Security 1.375% 20441,2 | 45,728 | 52,818 | ||||||
U.S. Treasury Inflation-Protected Securities 0.13%–2.13% 2020–20472 | 41,535 | 42,269 | ||||||
305,099 | ||||||||
Total U.S. Treasury bonds & notes | 1,568,352 | |||||||
Mortgage-backed obligations 25.34% | ||||||||
Federal agency mortgage-backed obligations 25.34% | ||||||||
Fannie Mae 3.50% 20333,4 | 30,000 | 30,946 | ||||||
Fannie Mae 3.00% 20363 | 29,057 | 29,534 | ||||||
Fannie Mae 4.00% 20473 | 34,100 | 35,730 | ||||||
Fannie Mae 4.00% 20473 | 23,761 | 24,893 | ||||||
Fannie Mae 4.50% 20473 | 25,443 | 27,113 | ||||||
Fannie Mae 4.50% 20483,4 | 75,000 | 79,804 | ||||||
Fannie Mae 0%–9.50% 2022–20483,4,5 | 105,743 | 110,011 | ||||||
Freddie Mac 4.00% 20473 | 23,965 | 25,098 | ||||||
Freddie Mac 4.00% 20483,4 | 50,000 | 52,309 | ||||||
Freddie Mac 0%–5.50% 2020–20483,4,5 | 113,700 | 117,766 | ||||||
Government National Mortgage Assn. 4.00% 20473 | 63,961 | 67,023 | ||||||
Government National Mortgage Assn. 4.50% 20483,4 | 30,525 | 32,022 | ||||||
Government National Mortgage Assn. 1.99%–6.64% 2034–20653,5 | 90,528 | 94,637 | ||||||
Other securities | 59,617 | |||||||
786,503 | ||||||||
Federal agency bonds & notes 16.94% | ||||||||
Fannie Mae 1.25%–7.13% 2019–2030 | 31,400 | 32,762 | ||||||
Federal Home Loan Bank 1.75%–5.50% 2018–2036 | 91,315 | 92,402 | ||||||
Freddie Mac 3.75% 2019 | 12,750 | 13,040 | ||||||
Tennessee Valley Authority 2.88%–5.88% 2021–2060 | 47,305 | 50,606 | ||||||
TVA Southaven 3.846% 20333 | 1,418 | 1,444 | ||||||
U.S. Department of Housing and Urban Development 1.33%–3.70% 2018–2034 | 83,632 | 84,747 | ||||||
United States Agency for International Development, Iraq (Republic of), 2.149% 2022 | 6,670 | 6,634 |
American Funds Insurance Series | 109 |
U.S. Government/AAA-Rated Securities Fund
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Federal agency bonds & notes (continued) | ||||||||
United States Agency for International Development, Jordan (Kingdom of) 1.95%–3.00% 2019–2025 | $ | 194,000 | $ | 196,981 | ||||
United States Agency for International Development, Morocco (Kingdom of) 7.55% 20263 | 3,621 | 4,311 | ||||||
United States Agency for International Development, Tunisia (Kingdom of) 1.416% 2021 | 3,000 | 2,904 | ||||||
United States Agency for International Development, Ukraine 1.47%–1.84% 2019–2021 | 5,855 | 5,742 | ||||||
Other securities | 34,007 | |||||||
525,580 | ||||||||
Total bonds, notes & other debt instruments (cost: $2,881,337,000) | 2,880,435 | |||||||
Short-term securities 14.77% | ||||||||
Apple Inc. 1.24% due 1/30/20186 | 35,000 | 34,955 | ||||||
Ciesco LLC 1.87% due 6/25/20186 | 50,000 | 49,544 | ||||||
Cisco Systems, Inc. 1.36% due 3/8/20186 | 45,000 | 44,872 | ||||||
ExxonMobil Corp. 1.40% due 1/23/2018 | 31,400 | 31,370 | ||||||
Federal Home Loan Bank 1.16% due 2/2/2018 | 25,000 | 24,974 | ||||||
Kimberly-Clark Corp. 1.48% due 1/16/20186 | 25,000 | 24,981 | ||||||
Microsoft Corp. 1.27%–1.30% due 1/16/2018–1/23/20186 | 70,000 | 69,945 | ||||||
Paccar Financial Corp. 1.22%–1.28% due 1/8/2018–1/16/2018 | 42,400 | 42,375 | ||||||
Sumitomo Mitsui Banking Corp. 1.44% due 1/11/20186 | 40,000 | 39,979 | ||||||
Walt Disney Co. 1.25% due 1/19/20186 | 35,000 | 34,970 | ||||||
Other securities | 60,315 | |||||||
Total short-term securities (cost: $458,355,000) | 458,280 | |||||||
Total investment securities 107.59% (cost: $3,339,692,000) | 3,338,715 | |||||||
Other assets less liabilities (7.59)% | (235,400 | ) | ||||||
Net assets 100.00% | $ | 3,103,315 |
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount7 (000) | Value at 12/31/20178 (000) | Unrealized (depreciation) appreciation at 12/31/2017 (000) | ||||||||||||
10 Year U.S. Treasury Note Futures | Long | 2,734 | March 2018 | $ | 273,400 | $ | 339,144 | $ | (813 | ) | ||||||||
20 Year U.S. Treasury Bond Futures | Long | 195 | March 2018 | 19,500 | 29,835 | 31 | ||||||||||||
10 Year Ultra U.S. Treasury Note Futures | Short | 175 | March 2018 | (17,500 | ) | (23,373 | ) | 110 | ||||||||||
30 Year Ultra U.S. Treasury Bond Futures | Short | 219 | March 2018 | (21,900 | ) | (36,717 | ) | (23 | ) | |||||||||
5 Year U.S. Treasury Note Futures | Long | 14,014 | April 2018 | 1,401,400 | 1,627,923 | (6,730 | ) | |||||||||||
2 Year U.S. Treasury Note Futures | Long | 2,111 | April 2018 | 422,200 | 451,985 | (380 | ) | |||||||||||
90 Day Euro Dollar Futures | Short | 905 | September 2018 | (226,250 | ) | (221,635 | ) | 245 | ||||||||||
90 Day Euro Dollar Futures | Long | 1,595 | December 2018 | 398,750 | 390,197 | (242 | ) | |||||||||||
90 Day Euro Dollar Futures | Short | 1,920 | December 2019 | (480,000 | ) | (468,816 | ) | 357 | ||||||||||
$ | (7,445 | ) |
110 | American Funds Insurance Series |
U.S. Government/AAA-Rated Securities Fund
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2017 (000) | Upfront payments/ receipts (000) | Unrealized (depreciation) appreciation at 12/31/2017 (000) | |||||||||||||
1.345% | U.S. EFFR | 1/31/2018 | $ | 1,078,000 | $ | (56 | ) | $ | — | $ | (56 | ) | |||||||
1.3475% | U.S. EFFR | 1/31/2018 | 1,747,000 | (86 | ) | — | (86 | ) | |||||||||||
1.329% | U.S. EFFR | 3/27/2019 | 131,000 | (632 | ) | — | (632 | ) | |||||||||||
1.32625% | U.S. EFFR | 4/5/2019 | 68,800 | (345 | ) | — | (345 | ) | |||||||||||
1.34875% | U.S. EFFR | 4/5/2019 | 120,000 | (568 | ) | — | (568 | ) | |||||||||||
1.337% | U.S. EFFR | 6/8/2019 | 121,000 | (730 | ) | — | (730 | ) | |||||||||||
1.367% | U.S. EFFR | 6/12/2019 | 60,500 | (341 | ) | — | (341 | ) | |||||||||||
1.37% | U.S. EFFR | 6/14/2019 | 60,500 | (341 | ) | — | (341 | ) | |||||||||||
1.362% | U.S. EFFR | 6/21/2019 | 60,500 | (355 | ) | — | (355 | ) | |||||||||||
1.351% | U.S. EFFR | 6/28/2019 | 60,500 | (372 | ) | — | (372 | ) | |||||||||||
1.9425% | 3-month USD-LIBOR | 3/17/2020 | 165,000 | (526 | ) | — | (526 | ) | |||||||||||
1.8005% | 3-month USD-LIBOR | 9/28/2020 | 48,000 | (444 | ) | — | (444 | ) | |||||||||||
3-month USD-LIBOR | 1.217% | 9/22/2021 | 60,000 | 2,116 | — | 2,116 | |||||||||||||
3-month USD-LIBOR | 1.225% | 9/22/2021 | 60,000 | 2,099 | — | 2,099 | |||||||||||||
3-month USD-LIBOR | 1.2255% | 9/23/2021 | 5,000 | 175 | — | 175 | |||||||||||||
3-month USD-LIBOR | 2.01215% | 2/2/2022 | 119,000 | 915 | — | 915 | |||||||||||||
3-month USD-LIBOR | 1.9665% | 2/2/2022 | 50,000 | 474 | — | 474 | |||||||||||||
3-month USD-LIBOR | 2.0025% | 2/7/2022 | 59,000 | 477 | — | 477 | |||||||||||||
3-month USD-LIBOR | 2.2175% | 3/17/2022 | 52,000 | (10 | ) | — | (10 | ) | |||||||||||
3-month USD-LIBOR | 1.8675% | 4/19/2022 | 70,000 | 1,002 | — | 1,002 | |||||||||||||
3-month USD-LIBOR | 1.75918% | 4/29/2022 | 58,000 | 1,092 | — | 1,092 | |||||||||||||
3-month USD-LIBOR | 1.948% | 7/28/2022 | 20,000 | 239 | — | 239 | |||||||||||||
2.80% | 3-month USD-LIBOR | 9/2/2022 | 280,000 | 2,280 | — | 2,280 | |||||||||||||
2.75% | 3-month USD-LIBOR | 9/2/2022 | 280,000 | 2,020 | — | 2,020 | |||||||||||||
2.009% | 3-month USD-LIBOR | 10/4/2022 | 50,000 | (511 | ) | — | (511 | ) | |||||||||||
2.00965% | 3-month USD-LIBOR | 10/6/2022 | 49,000 | (498 | ) | — | (498 | ) | |||||||||||
1.9855% | 3-month USD-LIBOR | 10/17/2022 | 29,500 | (331 | ) | — | (331 | ) | |||||||||||
1.98% | 3-month USD-LIBOR | 10/17/2022 | 29,500 | (339 | ) | — | (339 | ) | |||||||||||
2.08613% | 3-month USD-LIBOR | 11/17/2022 | 38,300 | (257 | ) | — | (257 | ) | |||||||||||
2.08934% | 3-month USD-LIBOR | 11/17/2022 | 40,700 | (267 | ) | — | (267 | ) | |||||||||||
2.2025% | 3-month USD-LIBOR | 12/4/2022 | 20,000 | (28 | ) | — | (28 | ) | |||||||||||
3-month USD-LIBOR | 2.2455% | 12/21/2022 | 25,000 | (6 | ) | — | (6 | ) | |||||||||||
2.27403% | 3-month USD-LIBOR | 12/29/2022 | 60,000 | 92 | — | 92 | |||||||||||||
3-month USD-LIBOR | 2.0815% | 2/10/2024 | 28,700 | 321 | — | 321 | |||||||||||||
3-month USD-LIBOR | 2.0955% | 2/10/2024 | 14,300 | 148 | — | 148 | |||||||||||||
3-month USD-LIBOR | 2.3875% | 3/17/2024 | 160,700 | (998 | ) | — | (998 | ) | |||||||||||
3-month USD-LIBOR | 2.12813% | 10/3/2024 | 65,000 | 712 | — | 712 | |||||||||||||
3-month USD-LIBOR | 1.798% | 2/2/2026 | 35,000 | 1,408 | — | 1,408 | |||||||||||||
3-month USD-LIBOR | 2.24% | 12/5/2026 | 55,100 | 545 | — | 545 | |||||||||||||
3-month USD-LIBOR | 2.27% | 12/5/2026 | 44,900 | 335 | — | 335 | |||||||||||||
2.579% | 3-month USD-LIBOR | 3/14/2027 | 53,000 | 929 | — | 929 | |||||||||||||
2.333% | 3-month USD-LIBOR | 3/29/2027 | 42,000 | (144 | ) | — | (144 | ) | |||||||||||
3-month USD-LIBOR | 2.31934% | 11/17/2027 | 21,200 | 127 | — | 127 | |||||||||||||
3-month USD-LIBOR | 2.31613% | 11/17/2027 | 19,800 | 124 | — | 124 | |||||||||||||
3-month USD-LIBOR | 2.97125% | 9/2/2030 | 62,000 | (2,240 | ) | — | (2,240 | ) | |||||||||||
3-month USD-LIBOR | 3.005% | 9/2/2030 | 62,000 | (2,418 | ) | — | (2,418 | ) | |||||||||||
3-month USD-LIBOR | 3.34% | 6/27/2044 | 45,000 | (7,252 | ) | — | (7,252 | ) | |||||||||||
3-month USD-LIBOR | 3.206% | 7/31/2044 | 16,000 | (2,160 | ) | — | (2,160 | ) | |||||||||||
3-month USD-LIBOR | 3.238% | 8/8/2044 | 16,000 | (2,262 | ) | — | (2,262 | ) | |||||||||||
3-month USD-LIBOR | 2.7045% | 1/2/2045 | 12,000 | (404 | ) | — | (404 | ) | |||||||||||
3-month USD-LIBOR | 2.5055% | 1/9/2045 | 11,000 | 75 | — | 75 | |||||||||||||
3-month USD-LIBOR | 2.4945% | 1/9/2045 | 2,000 | 18 | — | 18 | |||||||||||||
3-month USD-LIBOR | 2.7025% | 9/10/2045 | 30,000 | (1,030 | ) | — | (1,030 | ) | |||||||||||
3-month USD-LIBOR | 2.52822% | 11/23/2045 | 13,350 | 24 | — | 24 | |||||||||||||
2.44345% | 3-month USD-LIBOR | 6/29/2047 | 21,000 | (422 | ) | — | (422 | ) |
American Funds Insurance Series | 111 |
U.S. Government/AAA-Rated Securities Fund
Swap contracts (continued)
Interest rate swaps (continued)
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2017 (000) | Upfront payments/ receipts (000) | Unrealized (depreciation) appreciation at 12/31/2017 (000) | |||||||||||||
3-month USD-LIBOR | 2.5015% | 8/17/2047 | $ | 4,600 | $ | 33 | $ | — | $ | 33 | |||||||||
3-month USD-LIBOR | 2.5095% | 8/17/2047 | 4,400 | 24 | — | 24 | |||||||||||||
3-month USD-LIBOR | 2.436% | 9/19/2047 | 10,500 | 230 | — | 230 | |||||||||||||
2.53563% | 3-month USD-LIBOR | 10/3/2047 | 20,000 | (4 | ) | — | (4 | ) | |||||||||||
3-month USD-LIBOR | 2.56315% | 10/6/2047 | 11,000 | (65 | ) | — | (65 | ) | |||||||||||
3-month USD-LIBOR | 2.495% | 10/17/2047 | 6,300 | 56 | — | 56 | |||||||||||||
3-month USD-LIBOR | 2.4975% | 10/17/2047 | 6,300 | 52 | — | 52 | |||||||||||||
U.S. EFFR | 2.166% | 10/23/2047 | 10,000 | (28 | ) | — | (28 | ) | |||||||||||
U.S. EFFR | 2.145% | 11/9/2047 | 15,400 | 29 | — | 29 | |||||||||||||
U.S. EFFR | 2.153% | 11/10/2047 | 15,300 | 1 | — | 1 | |||||||||||||
U.S. EFFR | 2.155% | 11/10/2047 | 8,640 | (3 | ) | — | (3 | ) | |||||||||||
U.S. EFFR | 2.17% | 11/13/2047 | 15,660 | (57 | ) | — | (57 | ) | |||||||||||
2.5735% | 3-month USD-LIBOR | 12/21/2047 | 5,400 | 45 | — | 45 | |||||||||||||
3-month USD-LIBOR | 2.57553% | 12/29/2047 | 13,000 | (115 | ) | — | (115 | ) | |||||||||||
$ | — | $ | (8,428 | ) |
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 $61,762,000, which represented 1.99% of the net assets of the fund. |
2 | Index-linked bond whose principal amount moves with a government price index. |
3 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
4 | Purchased on a TBA basis. |
5 | Coupon rate may change periodically. |
6 | Acquired in a transaction exempt from registration under 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 $339,563,000, which represented 10.94% of the net assets of the fund. |
7 | Notional amount is calculated based on the number of contracts and notional contract size. |
8 | Value is calculated based on the notional amount and current market price. |
Key to abbreviations and symbol
EFFR = Federal Funds Effective Rate
LIBOR = London Interbank Offered Rate
TBA = To-be-announced
USD/$ = U.S. dollars
See Notes to Financial Statements
112 | American Funds Insurance Series |
Managed Risk Growth Fund
Investment portfolio December 31, 2017
Growth funds 80.05% | Shares | Value (000) | ||||||
American Funds Insurance Series – Growth Fund, Class 1 | 2,960,791 | $ | 230,498 | |||||
Total growth funds (cost: $200,842,000) | 230,498 | |||||||
Fixed income funds 15.11% | ||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 4,022,202 | 43,520 | ||||||
Total fixed income funds (cost: $44,022,000) | 43,520 | |||||||
Short-term securities 4.89% | ||||||||
Government Cash Management Fund | 14,078,452 | 14,078 | ||||||
Total short-term securities (cost: $14,078,000) | 14,078 | |||||||
Total investment securities 100.05% (cost: $258,942,000) | 288,096 | |||||||
Other assets less liabilities (0.05)% | (137 | ) | ||||||
Net assets 100.00% | $ | 287,959 |
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount1 (000) | Value at 12/31/20172 (000) | Unrealized depreciation at 12/31/2017 (000) | ||||||||||||
5 Year U.S. Treasury Note Futures | Long | 130 | March 2018 | $13,000 | $15,101 | $(38 | ) |
Investments in affiliates
These holdings are affiliates of the fund under the Investment Company Act of 1940 since they are controlled by the same board of trustees as the series. Further details on these holdings and related transactions during the year ended December 31, 2017, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized loss (000) | Net unrealized appreciation (depreciation) (000) | Dividend income (000) | Value of affiliates at 12/31/2017 (000) | |||||||||||||||||||||||||
Growth funds 80.05% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – Growth Fund, Class 1 | 2,821,842 | 902,012 | 763,063 | 2,960,791 | $ | (2,465 | ) | $ | 35,900 | $ | 1,621 | $ | 230,498 | |||||||||||||||||||
Fixed income funds 15.11% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – Bond Fund, Class 1 | — | 4,068,037 | 45,835 | 4,022,202 | (5 | ) | (502 | ) | 674 | 43,520 | ||||||||||||||||||||||
Total 95.16% | $ | (2,470 | ) | $ | 35,398 | $ | 2,295 | $ | 274,018 |
1 | Notional amount is calculated based on the number of contracts and notional contract size. |
2 | Value is calculated based on the notional amount and current market price. |
See Notes to Financial Statements
American Funds Insurance Series | 113 |
Managed Risk International Fund
Investment portfolio December 31, 2017
Growth funds 80.15% | Shares | Value (000) | ||||||
American Funds Insurance Series – International Fund, Class 1 | 5,479,657 | $ | 118,964 | |||||
Total growth funds (cost: $99,690,000) | 118,964 | |||||||
Fixed income funds 15.04% | ||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 2,063,150 | 22,323 | ||||||
Total fixed income funds (cost: $22,581,000) | 22,323 | |||||||
Short-term securities 4.85% | ||||||||
Government Cash Management Fund | 7,200,311 | 7,200 | ||||||
Total short-term securities (cost: $7,200,000) | 7,200 | |||||||
Total investment securities 100.04% (cost: $129,471,000) | 148,487 | |||||||
Other assets less liabilities (0.04)% | (64 | ) | ||||||
Net assets 100.00% | $ | 148,423 |
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount1 (000) | Value at 12/31/20172 (000) | Unrealized depreciation at 12/31/2017 (000) | ||||||||||||
5 Year U.S. Treasury Note Futures | Long | 66 | March 2018 | $6,600 | $7,667 | $(19 | ) |
Investments in affiliates
These holdings are affiliates of the fund under the Investment Company Act of 1940 since they are controlled by the same board of trustees as the series. Further details on these holdings and related transactions during the year ended December 31, 2017, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized loss (000) | Net unrealized appreciation (depreciation) (000) | Dividend income (000) | Value of affiliates at 12/31/2017 (000) | |||||||||||||||||||||||||
Growth funds 80.15% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – International Fund, Class 1 | 5,381,857 | 1,475,679 | 1,377,879 | 5,479,657 | $ | (584 | ) | $ | 29,000 | $ | 1,667 | $ | 118,964 | |||||||||||||||||||
Fixed income funds 15.04% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – Bond Fund, Class 1 | — | 2,098,231 | 35,081 | 2,063,150 | (2 | ) | (258 | ) | 345 | 22,323 | ||||||||||||||||||||||
Total 95.19% | $ | (586 | ) | $ | 28,742 | $ | 2,012 | $ | 141,287 |
1 | Notional amount is calculated based on the number of contracts and notional contract size. |
2 | Value is calculated based on the notional amount and current market price. |
See Notes to Financial Statements
114 | American Funds Insurance Series |
Managed Risk Blue Chip Income and Growth Fund
Investment portfolio December 31, 2017
Growth-and-income funds 80.32% | Shares | Value (000) | ||||||
American Funds Insurance Series – Blue Chip Income and Growth Fund, Class 1 | 19,699,331 | $ | 294,702 | |||||
Total growth-and-income funds (cost: $263,402,000) | 294,702 | |||||||
Fixed income funds 14.92% | ||||||||
American Funds Insurance Series – U.S. Government/AAA-Rated Securities Fund, Class 1 | 4,530,491 | 54,729 | ||||||
Total fixed income funds (cost: $55,397,000) | 54,729 | |||||||
Short-term securities 4.82% | ||||||||
Government Cash Management Fund | 17,696,252 | 17,696 | ||||||
Total short-term securities (cost: $17,696,000) | 17,696 | |||||||
Total investment securities 100.06% (cost: $336,495,000) | 367,127 | |||||||
Other assets less liabilities (0.06)% | (223 | ) | ||||||
Net assets 100.00% | $ | 366,904 |
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount1 (000) | Value at 12/31/20172 (000) | Unrealized depreciation at 12/31/2017 (000) | ||||||||||||
5 Year U.S. Treasury Note Futures | Long | 167 | March 2018 | $16,700 | $19,399 | $(49 | ) |
Investments in affiliates
These holdings are affiliates of the fund under the Investment Company Act of 1940 since they are controlled by the same board of trustees as the series. Further details on these holdings and related transactions during the year ended December 31, 2017, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized gain (000) | Net unrealized appreciation (depreciation) (000) | Dividend income (000) | Value of affiliates at 12/31/2017 (000) | |||||||||||||||||||||||||
Growth-and-income funds 80.32% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – Blue Chip Income and Growth Fund, Class 1 | 20,295,700 | 6,791,546 | 7,387,915 | 19,699,331 | $ | 228 | $ | 31,593 | $ | 6,425 | $ | 294,702 | ||||||||||||||||||||
Fixed income funds 14.92% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – U.S. Government/AAA-Rated Securities Fund, Class 1 | — | 4,549,444 | 18,953 | 4,530,491 | 1 | (668 | ) | 690 | 54,729 | |||||||||||||||||||||||
Total 95.24% | $ | 229 | $ | 30,925 | $ | 7,115 | $ | 349,431 |
1 | Notional amount is calculated based on the number of contracts and notional contract size. |
2 | Value is calculated based on the notional amount and current market price. |
See Notes to Financial Statements
American Funds Insurance Series | 115 |
Managed Risk Growth-Income Fund
Investment portfolio December 31, 2017
Growth-and-income funds 80.07% | Shares | Value (000) | ||||||
American Funds Insurance Series – Growth-Income Fund, Class 1 | 3,331,787 | $ | 167,322 | |||||
Total growth-and-income funds (cost: $153,163,000) | 167,322 | |||||||
Fixed income funds 15.10% | ||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 2,916,097 | 31,552 | ||||||
Total fixed income funds (cost: $31,921,000) | 31,552 | |||||||
Short-term securities 4.88% | ||||||||
Government Cash Management Fund | 10,195,681 | 10,196 | ||||||
Total short-term securities (cost: $10,196,000) | 10,196 | |||||||
Total investment securities 100.05% (cost: $195,280,000) | 209,070 | |||||||
Other assets less liabilities (0.05)% | (102 | ) | ||||||
Net assets 100.00% | $ | 208,968 |
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount1 (000) | Value at 12/31/20172 (000) | Unrealized depreciation at 12/31/2017 (000) | ||||||||||||
5 Year U.S. Treasury Note Futures | Long | 95 | March 2018 | $9,500 | $11,036 | $(28 | ) |
Investments in affiliates
These holdings are affiliates of the fund under the Investment Company Act of 1940 since they are controlled by the same board of trustees as the series. Further details on these holdings and related transactions during the year ended December 31, 2017, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized loss (000) | Net unrealized appreciation (depreciation) (000) | Dividend income (000) | Value of affiliates at 12/31/2017 (000) | |||||||||||||||||||||||||
Growth-and-income funds 80.07% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – Growth-Income Fund, Class 1 | 3,415,529 | 831,566 | 915,308 | 3,331,787 | $ | (2,960 | ) | $ | 24,457 | $ | 2,622 | $ | 167,322 | |||||||||||||||||||
Fixed income funds 15.10% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – Bond Fund, Class 1 | — | 2,928,337 | 12,240 | 2,916,097 | (1 | ) | (369 | ) | 492 | 31,552 | ||||||||||||||||||||||
Total 95.17% | $ | (2,961 | ) | $ | 24,088 | $ | 3,114 | $ | 198,874 |
1 | Notional amount is calculated based on the number of contracts and notional contract size. |
2 | Value is calculated based on the notional amount and current market price. |
See Notes to Financial Statements
116 | American Funds Insurance Series |
Managed Risk Asset Allocation Fund
Investment portfolio December 31, 2017
Asset allocation funds 95.19% | Shares | Value (000) | ||||||
American Funds Insurance Series – Asset Allocation Fund, Class 1 | 178,833,494 | $ | 4,240,142 | |||||
Total asset allocation funds (cost: $3,901,495,000) | 4,240,142 | |||||||
Short-term securities 4.87% | ||||||||
Government Cash Management Fund | 217,109,926 | 217,110 | ||||||
Total short-term securities (cost: $217,110,000) | 217,110 | |||||||
Total investment securities 100.06% (cost: $4,118,605,000) | 4,457,252 | |||||||
Other assets less liabilities (0.06)% | (2,842 | ) | ||||||
Net assets 100.00% | $ | 4,454,410 |
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount1 (000) | Value at 12/31/20172 (000) | Unrealized depreciation at 12/31/2017 (000) | ||||||||||||
5 Year U.S. Treasury Note Futures | Long | 2,033 | March 2018 | $ | 203,300 | $236,162 | $(592 | ) |
Investment in affiliates
This holding is an affiliate of the fund under the Investment Company Act of 1940 since it is controlled by the same board of trustees as the series. Further details on this holding and related transactions during the year ended December 31, 2017, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized gain (000) | Net unrealized appreciation (000) | Dividend income (000) | Value of affiliate at 12/31/2017 (000) | |||||||||||||||||||||||||
Asset allocation funds 95.19% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – Asset Allocation Fund, Class 1 | 153,453,622 | 27,323,215 | 1,943,343 | 178,833,494 | $ | 4,957 | $ | 329,625 | $ | 70,949 | $ | 4,240,142 |
1 | Notional amount is calculated based on the number of contracts and notional contract size. |
2 | Value is calculated based on the notional amount and current market price. |
See Notes to Financial Statements
American Funds Insurance Series | 117 |
Financial statements
Statements of assets and liabilities
at December 31, 2017
Global Growth Fund | Global Small Capitalization Fund | Growth Fund | International Fund | New World Fund | ||||||||||||||||
Assets: | ||||||||||||||||||||
Investment securities, at value: | ||||||||||||||||||||
Unaffiliated issuers | $ | 6,252,509 | $ | 4,283,077 | $ | 25,039,262 | $ | 9,755,613 | $ | 3,548,151 | ||||||||||
Affiliated issuers | — | 32,175 | — | — | — | |||||||||||||||
Cash | 826 | 285 | 5,966 | 224 | 267 | |||||||||||||||
Cash denominated in currencies other than U.S. dollars | 77 | — | * | — | * | 1,557 | 17 | |||||||||||||
Unrealized appreciation on open forward currency contracts | 15 | 89 | — | — | 69 | |||||||||||||||
Receivables for: | ||||||||||||||||||||
Sales of investments | 244 | 6,683 | — | 10,136 | 4,948 | |||||||||||||||
Sales of fund’s shares | 2,175 | 780 | 5,686 | 2,305 | 1,438 | |||||||||||||||
Dividends and interest | 6,980 | 4,576 | 9,570 | 18,169 | 5,876 | |||||||||||||||
Closed forward currency contracts | — | 44 | — | — | — | |||||||||||||||
Variation margin on futures contracts | — | — | — | — | — | |||||||||||||||
Variation margin on swap contracts | — | — | — | — | — | |||||||||||||||
Other | 91 | 77 | 40 | 325 | 10 | |||||||||||||||
6,262,917 | 4,327,786 | 25,060,524 | 9,788,329 | 3,560,776 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Unrealized depreciation on open forward currency contracts | — | 1,192 | — | 355 | 392 | |||||||||||||||
Payables for: | ||||||||||||||||||||
Purchases of investments | 5,023 | 4,588 | 19,283 | 9,764 | 7,084 | |||||||||||||||
Repurchases of fund’s shares | 14,501 | 2,894 | 43,820 | 10,041 | 1,590 | |||||||||||||||
Investment advisory services | 2,734 | 2,529 | 6,875 | 4,021 | 2,064 | |||||||||||||||
Services provided by related parties | 943 | 599 | 3,764 | 1,069 | 337 | |||||||||||||||
Trustees’ deferred compensation | 71 | 48 | 517 | 220 | 31 | |||||||||||||||
Closed forward currency contracts | — | — | — | — | — | |||||||||||||||
Variation margin on futures contracts | — | — | — | — | — | |||||||||||||||
Variation margin on swap contracts | — | — | — | — | — | |||||||||||||||
Non-U.S. taxes | 4,352 | 754 | 219 | 4,753 | 16,164 | |||||||||||||||
Other | 217 | 144 | 588 | 284 | 401 | |||||||||||||||
27,841 | 12,748 | 75,066 | 30,507 | 28,063 | ||||||||||||||||
Net assets at December 31, 2017 | $ | 6,235,076 | $ | 4,315,038 | $ | 24,985,458 | $ | 9,757,822 | $ | 3,532,713 | ||||||||||
Net assets consist of: | ||||||||||||||||||||
Capital paid in on shares of beneficial interest | $ | 3,621,863 | $ | 3,116,123 | $ | 13,105,139 | $ | 7,085,727 | $ | 2,609,444 | ||||||||||
Undistributed (distributions in excess of) net investment income | 3,242 | 10,507 | 41,109 | 2,852 | 4,643 | |||||||||||||||
Undistributed (accumulated) net realized gain (loss) | 427,988 | 238,153 | 2,386,299 | 458,991 | 92,357 | |||||||||||||||
Net unrealized appreciation (depreciation) | 2,181,983 | 950,255 | 9,452,911 | 2,210,252 | 826,269 | |||||||||||||||
Net assets at December 31, 2017 | $ | 6,235,076 | $ | 4,315,038 | $ | 24,985,458 | $ | 9,757,822 | $ | 3,532,713 | ||||||||||
Investment securities, at cost: | ||||||||||||||||||||
Unaffiliated issuers | $ | 4,066,420 | $ | 3,337,949 | $ | 15,586,391 | $ | 7,542,215 | $ | 2,705,479 | ||||||||||
Affiliated issuers | — | 25,519 | — | — | — | |||||||||||||||
Cash denominated in currencies other than U.S. dollars, at cost | 77 | — | * | — | * | 1,552 | 17 |
See end of statements of assets and liabilities for footnote.
See Notes to Financial Statements
118 | 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 | Capital Income Builder | Asset Allocation Fund | Global Balanced Fund | Bond Fund | Global Bond Fund | ||||||||||||||||||||||||||
$ | 9,376,768 | $ | 2,106,326 | $ | 30,709,873 | $ | 1,460,513 | $ | 599,194 | $ | 25,925,861 | $ | 356,247 | $ | 12,735,377 | $ | 2,492,473 | |||||||||||||||||
— | — | — | — | — | 233,520 | — | — | — | ||||||||||||||||||||||||||
74 | 327 | 2,827 | 190 | 387 | 13,225 | 88 | 6,703 | 48 | ||||||||||||||||||||||||||
— | — | * | 82 | 305 | 99 | 575 | 32 | 8,467 | 1,392 | |||||||||||||||||||||||||
— | — | — | — | — | — | 144 | 10,220 | 4,906 | ||||||||||||||||||||||||||
— | 9,418 | �� | 14 | 420 | 14,350 | 242,667 | 3,300 | 901,567 | 48,509 | |||||||||||||||||||||||||
1,782 | 665 | 8,715 | 339 | 760 | 30,699 | 621 | 5,401 | 1,723 | ||||||||||||||||||||||||||
11,389 | 4,262 | 38,831 | 4,986 | 2,318 | 60,752 | 1,283 | 66,255 | 18,888 | ||||||||||||||||||||||||||
— | — | — | — | — | — | 11 | — | 253 | ||||||||||||||||||||||||||
— | — | — | — | — | 58 | — | 1,377 | 192 | ||||||||||||||||||||||||||
— | — | — | — | — | 68 | — | 651 | 367 | ||||||||||||||||||||||||||
30 | 113 | 225 | 60 | 12 | 365 | 21 | 335 | 286 | ||||||||||||||||||||||||||
9,390,043 | 2,121,111 | 30,760,567 | 1,466,813 | 617,120 | 26,507,790 | 361,747 | 13,736,353 | 2,569,037 | ||||||||||||||||||||||||||
— | — | — | — | — | — | 269 | 2,678 | 4,246 | ||||||||||||||||||||||||||
— | 13,327 | 20,032 | 204 | 22,077 | 827,715 | 7,055 | 3,028,664 | 94,178 | ||||||||||||||||||||||||||
5,780 | 1,249 | 34,294 | 2,188 | 8 | 9,032 | 54 | 1,676 | 162 | ||||||||||||||||||||||||||
3,073 | 1,048 | 6,737 | 740 | 248 | 5,754 | 195 | 3,275 | 1,101 | ||||||||||||||||||||||||||
877 | 358 | 3,401 | 82 | 75 | 2,124 | 57 | 992 | 274 | ||||||||||||||||||||||||||
78 | 22 | 591 | 9 | 2 | 253 | 2 | 115 | 24 | ||||||||||||||||||||||||||
— | — | — | — | — | — | 2 | — | 899 | ||||||||||||||||||||||||||
— | — | — | — | — | 191 | — | 37 | 9 | ||||||||||||||||||||||||||
— | — | — | — | — | 181 | — | 1,058 | 282 | ||||||||||||||||||||||||||
220 | 2,563 | 2,618 | 1,528 | 11 | 131 | 150 | — | 235 | ||||||||||||||||||||||||||
166 | 98 | 532 | 95 | 242 | 2,315 | 64 | 164 | 49 | ||||||||||||||||||||||||||
10,194 | 18,665 | 68,205 | 4,846 | 22,663 | 847,696 | 7,848 | 3,038,659 | 101,459 | ||||||||||||||||||||||||||
$ | 9,379,849 | $ | 2,102,446 | $ | 30,692,362 | $ | 1,461,967 | $ | 594,457 | $ | 25,660,094 | $ | 353,899 | $ | 10,697,694 | $ | 2,467,578 | |||||||||||||||||
$ | 6,329,001 | $ | 1,433,416 | $ | 19,750,659 | $ | 1,270,668 | $ | 560,897 | $ | 19,078,377 | $ | 295,581 | $ | 10,588,572 | $ | 2,421,281 | |||||||||||||||||
37,271 | 6,666 | 88,048 | 4,347 | 261 | 92,516 | (671 | ) | 35,376 | 2,784 | |||||||||||||||||||||||||
718,730 | 151,697 | 2,154,031 | (4,704 | ) | 1,369 | 1,230,620 | 1,590 | 11,921 | 6,180 | |||||||||||||||||||||||||
2,294,847 | 510,667 | 8,699,624 | 191,656 | 31,930 | 5,258,581 | 57,399 | 61,825 | 37,333 | ||||||||||||||||||||||||||
$ | 9,379,849 | $ | 2,102,446 | $ | 30,692,362 | $ | 1,461,967 | $ | 594,457 | $ | 25,660,094 | $ | 353,899 | $ | 10,697,694 | $ | 2,467,578 | |||||||||||||||||
$ | 7,081,951 | $ | 1,593,223 | $ | 22,008,737 | $ | 1,267,746 | $ | 567,274 | $ | 20,455,210 | $ | 298,597 | $ | 12,684,562 | $ | 2,454,021 | |||||||||||||||||
— | — | — | — | — | 438,627 | — | — | — | ||||||||||||||||||||||||||
— | — | * | 82 | 305 | 99 | 575 | 32 | 8,384 | 1,371 |
American Funds Insurance Series | 119 |
Statements of assets and liabilities
at December 31, 2017
High- Income Bond Fund | Mortgage Fund | Ultra-Short Bond Fund | U.S. Government/ AAA-Rated Securities Fund | Managed Risk Growth Fund | ||||||||||||||||
Assets: | ||||||||||||||||||||
Investment securities, at value: | ||||||||||||||||||||
Unaffiliated issuers | $ | 1,424,657 | $ | 416,389 | $ | 305,727 | $ | 3,338,715 | $ | 14,078 | ||||||||||
Affiliated issuers | — | — | — | — | 274,018 | |||||||||||||||
Cash | 7,789 | 184 | 78 | 1,154 | — | |||||||||||||||
Cash denominated in currencies other than U.S. dollars | — | * | — | — | — | — | ||||||||||||||
Receivables for: | ||||||||||||||||||||
Sales of investments | 5,688 | 69,814 | — | 93,294 | — | |||||||||||||||
Sales of fund’s shares | 231 | 159 | 129 | 791 | 424 | |||||||||||||||
Dividends and interest | 22,421 | 1,001 | — | 13,174 | 14 | |||||||||||||||
Deposits at brokers for futures contracts | — | — | — | — | 81 | |||||||||||||||
Variation margin on futures contracts | — | 152 | — | 2,137 | 12 | |||||||||||||||
Variation margin on swap contracts | 23 | 86 | — | 1,629 | — | |||||||||||||||
Other | 168 | 1 | — | 21 | — | |||||||||||||||
1,460,977 | 487,786 | 305,934 | 3,450,915 | 288,627 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Payables for: | ||||||||||||||||||||
Purchases of investments | 5,131 | 147,041 | — | 342,862 | 396 | |||||||||||||||
Repurchases of fund’s shares | 499 | 240 | 924 | 488 | 7 | |||||||||||||||
Investment advisory services | 581 | 121 | 84 | 886 | 24 | |||||||||||||||
Services provided by related parties | 186 | 19 | 60 | 353 | 233 | |||||||||||||||
Trustees’ deferred compensation | 53 | 2 | 19 | 61 | 1 | |||||||||||||||
Variation margin on futures contracts | — | — | — | 264 | — | |||||||||||||||
Variation margin on swap contracts | 184 | 153 | — | 2,614 | — | |||||||||||||||
Bank overdraft | — | — | — | — | 5 | |||||||||||||||
Other | 463 | 40 | 42 | 72 | 2 | |||||||||||||||
7,097 | 147,616 | 1,129 | 347,600 | 668 | ||||||||||||||||
Net assets at December 31, 2017 | $ | 1,453,880 | $ | 340,170 | $ | 304,805 | $ | 3,103,315 | $ | 287,959 | ||||||||||
Net assets consist of: | ||||||||||||||||||||
Capital paid in on shares of beneficial interest | $ | 1,608,594 | $ | 339,464 | $ | 304,384 | $ | 3,108,660 | $ | 245,388 | ||||||||||
Undistributed (distributions in excess of) net investment income | 13,377 | 1,052 | 462 | 9,726 | 1,399 | |||||||||||||||
Undistributed (accumulated) net realized gain (loss) | (163,565 | ) | 101 | — | 1,780 | 12,056 | ||||||||||||||
Net unrealized appreciation (depreciation) | (4,526 | ) | (447 | ) | (41 | ) | (16,851 | ) | 29,116 | |||||||||||
Net assets at December 31, 2017 | $ | 1,453,880 | $ | 340,170 | $ | 304,805 | $ | 3,103,315 | $ | 287,959 | ||||||||||
Investment securities, at cost: | ||||||||||||||||||||
Unaffiliated issuers | $ | 1,429,183 | $ | 415,419 | $ | 305,768 | $ | 3,339,692 | $ | 14,078 | ||||||||||
Affiliated issuers | — | — | — | — | 244,864 | |||||||||||||||
Cash denominated in currencies other than U.S. dollars, at cost | — | * | — | — | — | — |
See end of statements of assets and liabilities for footnote.
See Notes to Financial Statements
120 | American Funds Insurance Series |
(dollars in thousands)
Managed Risk International Fund | Managed Risk Blue Chip Income and Growth Fund | Managed Risk Growth- Income Fund | Managed Risk Asset Allocation Fund | |||||||||||
$ | 7,200 | $ | 17,696 | $ | 10,196 | $ | 217,110 | |||||||
141,287 | 349,431 | 198,874 | 4,240,142 | |||||||||||
— | — | — | — | |||||||||||
— | — | — | — | |||||||||||
— | 233 | 12 | 347 | |||||||||||
390 | 19 | 276 | 20,891 | |||||||||||
7 | 17 | 10 | 206 | |||||||||||
41 | 104 | 59 | 1,271 | |||||||||||
6 | 16 | 9 | 191 | |||||||||||
— | — | — | — | |||||||||||
— | — | — | — | |||||||||||
148,931 | 367,516 | 209,436 | 4,480,158 | |||||||||||
367 | 13 | 258 | 19,185 | |||||||||||
3 | 250 | 16 | 1,062 | |||||||||||
12 | 31 | 18 | 374 | |||||||||||
120 | 301 | 171 | 3,317 | |||||||||||
1 | 1 | 1 | 20 | |||||||||||
— | — | — | — | |||||||||||
— | — | — | — | |||||||||||
5 | 6 | 3 | 72 | |||||||||||
— | * | 10 | 1 | 1,718 | ||||||||||
508 | 612 | 468 | 25,748 | |||||||||||
$ | 148,423 | $ | 366,904 | $ | 208,968 | $ | 4,454,410 | |||||||
$ | 134,213 | $ | 320,903 | $ | 188,490 | $ | 3,888,542 | |||||||
1,323 | 5,669 | 2,167 | 53,091 | |||||||||||
(6,110 | ) | 9,749 | 4,549 | 174,722 | ||||||||||
18,997 | 30,583 | 13,762 | 338,055 | |||||||||||
$ | 148,423 | $ | 366,904 | $ | 208,968 | $ | 4,454,410 | |||||||
$ | 7,200 | $ | 17,696 | $ | 10,196 | $ | 217,110 | |||||||
122,271 | 318,799 | 185,084 | 3,901,495 | |||||||||||
— | — | — | — |
American Funds Insurance Series | 121 |
Statements of assets and liabilities
at December 31, 2017
Global Growth Fund | Global Small Capitalization Fund | Growth Fund | International Fund | New World Fund | ||||||||||||||||
Shares of beneficial interest issued and outstanding (no stated par value) — unlimited shares authorized | ||||||||||||||||||||
Class 1: | ||||||||||||||||||||
Net assets | $ | 2,009,765 | $ | 1,639,002 | $ | 8,100,634 | $ | 5,013,606 | $ | 2,049,765 | ||||||||||
Shares outstanding | 65,876 | 64,573 | 104,059 | 230,943 | 81,020 | |||||||||||||||
Net asset value per share | $ | 30.51 | $ | 25.38 | $ | 77.85 | $ | 21.71 | $ | 25.30 | ||||||||||
Class 1A: | ||||||||||||||||||||
Net assets | $ | 2,331 | $ | 194 | $ | 2,815 | $ | 1,637 | $ | 662 | ||||||||||
Shares outstanding | 77 | 8 | 36 | 76 | 26 | |||||||||||||||
Net asset value per share | $ | 30.46 | $ | 25.36 | $ | 77.74 | $ | 21.67 | $ | 25.25 | ||||||||||
Class 2: | ||||||||||||||||||||
Net assets | $ | 4,012,273 | $ | 2,550,887 | $ | 15,716,541 | $ | 4,422,688 | $ | 1,055,043 | ||||||||||
Shares outstanding | 132,692 | 103,187 | 203,181 | 204,479 | 42,082 | |||||||||||||||
Net asset value per share | $ | 30.24 | $ | 24.72 | $ | 77.35 | $ | 21.63 | $ | 25.07 | ||||||||||
Class 3: | ||||||||||||||||||||
Net assets | $ | 211,654 | $ | 31,264 | ||||||||||||||||
Shares outstanding | 2,702 | 1,437 | ||||||||||||||||||
Net asset value per share | $ | 78.32 | $ | 21.75 | ||||||||||||||||
Class 4: | ||||||||||||||||||||
Net assets | $ | 210,707 | $ | 124,955 | $ | 953,814 | $ | 288,627 | $ | 427,243 | ||||||||||
Shares outstanding | 6,993 | 5,017 | 12,459 | 13,478 | 17,094 | |||||||||||||||
Net asset value per share | $ | 30.13 | $ | 24.91 | $ | 76.56 | $ | 21.42 | $ | 24.99 |
High- Income Bond Fund | Mortgage Fund | Ultra-Short Bond Fund | U.S. Government/ AAA-Rated Securities Fund | Managed Risk Growth Fund | ||||||||||||||||
Shares of beneficial interest issued and outstanding (no stated par value) — unlimited shares authorized | ||||||||||||||||||||
Class 1: | ||||||||||||||||||||
Net assets | $ | 631,391 | $ | 265,116 | $ | 37,092 | $ | 1,557,932 | ||||||||||||
Shares outstanding | 61,972 | 25,328 | 3,286 | 128,979 | ||||||||||||||||
Net asset value per share | $ | 10.19 | $ | 10.47 | $ | 11.29 | $ | 12.08 | ||||||||||||
Class 1A: | ||||||||||||||||||||
Net assets | $ | 398 | $ | 104 | $ | 10 | $ | 303 | ||||||||||||
Shares outstanding | 39 | 10 | 1 | 25 | ||||||||||||||||
Net asset value per share | $ | 10.18 | $ | 10.46 | $ | 11.29 | $ | 12.08 | ||||||||||||
Class 2: | ||||||||||||||||||||
Net assets | $ | 775,849 | $ | 62,581 | $ | 248,306 | $ | 1,472,985 | ||||||||||||
Shares outstanding | 77,355 | 5,990 | 22,562 | 123,162 | ||||||||||||||||
Net asset value per share | $ | 10.03 | $ | 10.45 | $ | 11.01 | $ | 11.96 | ||||||||||||
Class 3: | ||||||||||||||||||||
Net assets | $ | 12,095 | $ | 4,180 | $ | 10,219 | ||||||||||||||
Shares outstanding | 1,182 | 376 | 844 | |||||||||||||||||
Net asset value per share | $ | 10.23 | $ | 11.12 | $ | 12.11 | ||||||||||||||
Class 4: | ||||||||||||||||||||
Net assets | $ | 34,147 | $ | 12,369 | $ | 15,217 | $ | 61,876 | ||||||||||||
Shares outstanding | 3,156 | 1,192 | 1,367 | 5,163 | ||||||||||||||||
Net asset value per share | $ | 10.82 | $ | 10.38 | $ | 11.13 | $ | 11.98 | ||||||||||||
Class P1: | ||||||||||||||||||||
Net assets | $ | 1,672 | ||||||||||||||||||
Shares outstanding | 126 | |||||||||||||||||||
Net asset value per share | $ | 13.22 | ||||||||||||||||||
Class P2: | ||||||||||||||||||||
Net assets | $ | 286,287 | ||||||||||||||||||
Shares outstanding | 21,794 | |||||||||||||||||||
Net asset value per share | $ | 13.14 |
* | Amount less than one thousand. |
See Notes to Financial Statements
122 | 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 | Capital Income Builder | Asset Allocation Fund | Global Balanced Fund | Bond Fund | Global Bond Fund | ||||||||||||||||||||||||||
$ | 5,580,689 | $ | 485,159 | $ | 15,765,468 | $ | 1,120,622 | $ | 254,064 | $ | 16,556,359 | $ | 93,180 | $ | 6,434,289 | $ | 1,272,735 | |||||||||||||||||
373,041 | 30,679 | 313,948 | 63,244 | 24,427 | 698,250 | 7,310 | 594,607 | 107,164 | ||||||||||||||||||||||||||
$ | 14.96 | $ | 15.81 | $ | 50.22 | $ | 17.72 | $ | 10.40 | $ | 23.71 | $ | 12.75 | $ | 10.82 | $ | 11.88 | |||||||||||||||||
$ | 630 | $ | 132 | $ | 2,169 | $ | 2,151 | $ | 906 | $ | 4,226 | $ | 251 | $ | 1,072 | $ | 75 | |||||||||||||||||
42 | 8 | 43 | 122 | 87 | 178 | 20 | 99 | 6 | ||||||||||||||||||||||||||
$ | 14.94 | $ | 15.81 | $ | 50.15 | $ | 17.70 | $ | 10.39 | $ | 23.69 | $ | 12.74 | $ | 10.80 | $ | 11.87 | |||||||||||||||||
$ | 3,551,426 | $ | 1,537,698 | $ | 13,930,265 | $ | 275,757 | $ | 1,470 | $ | 5,479,790 | $ | 209,277 | $ | 3,965,674 | $ | 1,164,070 | |||||||||||||||||
240,001 | 97,416 | 280,230 | 15,612 | 141 | 233,306 | 16,448 | 371,033 | 98,747 | ||||||||||||||||||||||||||
$ | 14.80 | $ | 15.78 | $ | 49.71 | $ | 17.66 | $ | 10.40 | $ | 23.49 | $ | 12.72 | $ | 10.69 | $ | 11.79 | |||||||||||||||||
$ | 167,461 | �� | $ | 37,683 | ||||||||||||||||||||||||||||||
3,330 | 1,588 | |||||||||||||||||||||||||||||||||
$ | 50.29 | $ | 23.73 | |||||||||||||||||||||||||||||||
$ | 247,104 | $ | 79,457 | $ | 826,999 | $ | 63,437 | $ | 338,017 | $ | 3,582,036 | $ | 51,191 | $ | 296,659 | $ | 30,698 | |||||||||||||||||
16,735 | 5,094 | 16,773 | 3,609 | 32,558 | 153,077 | 4,055 | 27,773 | 2,624 | ||||||||||||||||||||||||||
$ | 14.77 | $ | 15.60 | $ | 49.31 | $ | 17.58 | $ | 10.38 | $ | 23.40 | $ | 12.63 | $ | 10.68 | $ | 11.70 | |||||||||||||||||
Managed Risk International Fund | Managed Risk Blue Chip Income and Growth Fund | Managed Risk Growth- Income Fund | Managed Risk Asset Allocation Fund | |||||||||||||||||||||||||||||||
$ | 138 | $ | 217 | $ | 2,485 | $ | 1,655,955 | |||||||||||||||||||||||||||
12 | 17 | 196 | 121,880 | |||||||||||||||||||||||||||||||
$ | 11.25 | $ | 13.04 | $ | 12.66 | $ | 13.59 | |||||||||||||||||||||||||||
$ | 148,285 | $ | 366,687 | $ | 206,483 | $ | 2,798,455 | |||||||||||||||||||||||||||
13,298 | 28,293 | 16,411 | 206,542 | |||||||||||||||||||||||||||||||
$ | 11.15 | $ | 12.96 | $ | 12.58 | $ | 13.55 |
American Funds Insurance Series | 123 |
Statements of operations
for the year ended December 31, 2017
Global Growth Fund | Global Small Capitalization Fund | Growth Fund | International Fund | New World Fund | ||||||||||||||||
Investment income: | ||||||||||||||||||||
Income (net of non-U.S. taxes*): | ||||||||||||||||||||
Dividends | $ | 85,149 | $ | 48,804 | $ | 246,805 | $ | 150,915 | $ | 51,286 | ||||||||||
Interest | 2,573 | 3,295 | 13,115 | 12,542 | 10,886 | |||||||||||||||
87,722 | 52,099 | 259,920 | 163,457 | 62,172 | ||||||||||||||||
Fees and expenses*: | ||||||||||||||||||||
Investment advisory services | 30,510 | 28,827 | 77,148 | 43,433 | 23,033 | |||||||||||||||
Distribution services | 9,963 | 6,320 | 39,735 | 10,764 | 3,328 | |||||||||||||||
Insurance administrative services | 354 | 171 | �� | 1,544 | 305 | 821 | ||||||||||||||
Transfer agent services | 1 | — | † | 3 | 1 | — | † | |||||||||||||
Administrative services | 587 | 413 | 2,369 | 877 | 327 | |||||||||||||||
Reports to shareholders | 284 | 191 | 1,195 | 426 | 157 | |||||||||||||||
Registration statement and prospectus | 68 | 87 | 341 | 67 | 43 | |||||||||||||||
Trustees’ compensation | 50 | 36 | 203 | 73 | 28 | |||||||||||||||
Auditing and legal | 68 | 64 | 60 | 63 | 193 | |||||||||||||||
Custodian | 888 | 596 | 531 | 1,552 | 1,271 | |||||||||||||||
Other | 37 | 82 | 17 | 28 | 53 | |||||||||||||||
Total fees and expenses before waivers/reimbursements | 42,810 | 36,787 | 123,146 | 57,589 | 29,254 | |||||||||||||||
Less waivers/reimbursements of fees and expenses: | ||||||||||||||||||||
Investment advisory services waivers | — | — | — | — | — | |||||||||||||||
Miscellaneous fee reimbursements | — | — | — | — | — | |||||||||||||||
Total waivers/reimbursements of fees and expenses | — | — | — | — | — | |||||||||||||||
Total fees and expenses after waivers/reimbursements | 42,810 | 36,787 | 123,146 | 57,589 | 29,254 | |||||||||||||||
Net investment income | 44,912 | 15,312 | 136,774 | 105,868 | 32,918 | |||||||||||||||
Net realized gain (loss) and unrealized appreciation (depreciation): | ||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Unaffiliated issuers | 434,542 | 215,857 | 2,561,326 | 449,195 | 239,723 | |||||||||||||||
Affiliated issuers* | — | (3,537 | ) | — | — | — | ||||||||||||||
Futures contracts | — | — | — | — | — | |||||||||||||||
Forward currency contracts | 241 | (4,263 | ) | — | (9,021 | ) | (881 | ) | ||||||||||||
Swap contracts | — | — | — | — | — | |||||||||||||||
Currency transactions | (1,592 | ) | (154 | ) | (253 | ) | (1,490 | ) | (1,852 | ) | ||||||||||
433,191 | 207,903 | 2,561,073 | 438,684 | 236,990 | ||||||||||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Unaffiliated issuers | 1,102,369 | 714,910 | 3,159,720 | 1,848,284 | 568,118 | |||||||||||||||
Affiliated issuers | — | 18,554 | — | — | — | |||||||||||||||
Futures contracts | — | — | — | — | — | |||||||||||||||
Forward currency contracts | (344 | ) | (2,489 | ) | — | 1,789 | (333 | ) | ||||||||||||
Swap contracts | — | — | — | — | — | |||||||||||||||
Currency translations | 491 | 111 | 77 | 463 | (197 | ) | ||||||||||||||
1,102,516 | 731,086 | 3,159,797 | 1,850,536 | 567,588 | ||||||||||||||||
Net realized gain (loss) and unrealized appreciation (depreciation) | 1,535,707 | 938,989 | 5,720,870 | 2,289,220 | 804,578 | |||||||||||||||
Net increase in net assets resulting from operations | $ | 1,580,619 | $ | 954,301 | $ | 5,857,644 | $ | 2,395,088 | $ | 837,496 |
See end of statements of operations for footnotes.
See Notes to Financial Statements
124 | 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 | Capital Income Builder | Asset Allocation Fund | Global Balanced Fund | Bond Fund | Global Bond Fund | ||||||||||||||||||||||||||
$ | 237,559 | $ | 56,575 | $ | 539,680 | $ | 41,062 | $ | 16,366 | $ | 306,873 | $ | 4,463 | $ | 1 | $ | 86 | |||||||||||||||||
3,900 | 4,539 | 22,816 | 3,660 | 2,435 | 210,080 | 2,617 | 279,063 | 69,977 | ||||||||||||||||||||||||||
241,459 | 61,114 | 562,496 | 44,722 | 18,801 | 516,953 | 7,080 | 279,064 | 70,063 | ||||||||||||||||||||||||||
35,032 | 12,085 | 74,641 | 8,016 | 2,505 | 63,395 | 1,958 | 39,232 | 12,626 | ||||||||||||||||||||||||||
9,060 | 3,813 | 35,480 | 779 | 748 | 21,595 | 552 | 10,290 | 2,929 | ||||||||||||||||||||||||||
440 | 79 | 1,515 | 123 | 747 | 8,084 | 65 | 360 | 42 | ||||||||||||||||||||||||||
1 | — | † | 3 | — | † | — | † | 3 | — | † | 1 | — | † | |||||||||||||||||||||
901 | 203 | 2,848 | 131 | 50 | 2,366 | 30 | 1,085 | 238 | ||||||||||||||||||||||||||
345 | 64 | 1,221 | 29 | 11 | 1,108 | 6 | 456 | 87 | ||||||||||||||||||||||||||
205 | 16 | 269 | 27 | 28 | 407 | 8 | 211 | 20 | ||||||||||||||||||||||||||
78 | 18 | 243 | 11 | 4 | 200 | 3 | 96 | 21 | ||||||||||||||||||||||||||
40 | 112 | 54 | 53 | 51 | 47 | 55 | 46 | 47 | ||||||||||||||||||||||||||
80 | 346 | 534 | 279 | 43 | 310 | 35 | 268 | 353 | ||||||||||||||||||||||||||
7 | 9 | 22 | 15 | 7 | 146 | 25 | 91 | 54 | ||||||||||||||||||||||||||
46,189 | 16,745 | 116,830 | 9,463 | 4,194 | 97,661 | 2,737 | 52,136 | 16,417 | ||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
46,189 | 16,745 | 116,830 | 9,463 | 4,194 | 97,661 | 2,737 | 52,136 | 16,417 | ||||||||||||||||||||||||||
195,270 | 44,369 | 445,666 | 35,259 | 14,607 | 419,292 | 4,343 | 226,928 | 53,646 | ||||||||||||||||||||||||||
686,740 | 151,815 | 2,103,780 | 6,272 | 9,027 | 1,240,250 | 9,394 | 17,539 | (633 | ) | |||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
— | — | — | — | — | 376 | — | 17,742 | 349 | ||||||||||||||||||||||||||
— | (157 | ) | — | (143 | ) | (16 | ) | — | (136 | ) | (46,710 | ) | (18,259 | ) | ||||||||||||||||||||
— | — | — | — | — | 3,089 | — | 627 | (5,432 | ) | |||||||||||||||||||||||||
(20 | ) | (372 | ) | (1,163 | ) | (493 | ) | (47 | ) | (251 | ) | 18 | 292 | (2,850 | ) | |||||||||||||||||||
686,720 | 151,286 | 2,102,617 | 5,636 | 8,964 | 1,243,464 | 9,276 | (10,510 | ) | (26,825 | ) | ||||||||||||||||||||||||
550,418 | 281,665 | 3,222,476 | 242,530 | 35,686 | 1,919,245 | 38,441 | 191,050 | 128,539 | ||||||||||||||||||||||||||
— | — | — | — | — | (35,533 | ) | — | — | — | |||||||||||||||||||||||||
— | — | — | — | — | (995 | ) | — | (3,048 | ) | (359 | ) | |||||||||||||||||||||||
— | (147 | ) | — | 105 | 5 | — | (227 | ) | 5,615 | 6,025 | ||||||||||||||||||||||||
— | — | — | — | — | (2,619 | ) | — | (933 | ) | (2,601 | ) | |||||||||||||||||||||||
43 | 120 | 170 | 133 | 18 | 133 | 25 | 357 | 583 | ||||||||||||||||||||||||||
550,461 | 281,638 | 3,222,646 | 242,768 | 35,709 | 1,880,231 | 38,239 | 193,041 | 132,187 | ||||||||||||||||||||||||||
1,237,181 | 432,924 | 5,325,263 | 248,404 | 44,673 | 3,123,695 | 47,515 | 182,531 | 105,362 | ||||||||||||||||||||||||||
$ | 1,432,451 | $ | 477,293 | $ | 5,770,929 | $ | 283,663 | $ | 59,280 | $ | 3,542,987 | $ | 51,858 | $ | 409,459 | $ | 159,008 |
American Funds Insurance Series | 125 |
Statements of operations
for the year ended December 31, 2017
High- Income Bond Fund | Mortgage Fund | Ultra-Short Bond Fund | U.S. Government/ AAA-Rated Securities Fund | Managed Risk Growth Fund | ||||||||||||||||
Investment income: | ||||||||||||||||||||
Income (net of non-U.S. taxes*): | ||||||||||||||||||||
Dividends | $ | 1,001 | $ | — | $ | — | $ | — | $ | 2,295 | ||||||||||
Interest | 105,683 | 6,820 | 3,240 | 61,344 | 120 | |||||||||||||||
106,684 | 6,820 | 3,240 | 61,344 | 2,415 | ||||||||||||||||
Fees and expenses*: | ||||||||||||||||||||
Investment advisory services | 7,701 | 1,436 | 1,017 | 10,190 | 371 | |||||||||||||||
Distribution services | 2,084 | 180 | 704 | 3,883 | 616 | |||||||||||||||
Insurance administrative services | 67 | 25 | 38 | 144 | 619 | |||||||||||||||
Transfer agent services | — | — | † | — | † | — | † | — | † | |||||||||||
Administrative services | 165 | 34 | 32 | 301 | — | |||||||||||||||
Accounting and administrative services | — | — | — | — | 56 | |||||||||||||||
Reports to shareholders | 58 | 6 | 10 | 97 | 4 | |||||||||||||||
Registration statement and prospectus | 15 | 4 | 5 | 26 | 10 | |||||||||||||||
Trustees’ compensation | 15 | 3 | 3 | 26 | 2 | |||||||||||||||
Auditing and legal | 56 | 44 | 42 | 43 | 6 | |||||||||||||||
Custodian | 27 | 43 | 1 | 67 | 12 | |||||||||||||||
Other | 38 | 42 | — | † | 64 | 4 | ||||||||||||||
Total fees and expenses before waivers/reimbursements | 10,226 | 1,817 | 1,852 | 14,841 | 1,700 | |||||||||||||||
Less waivers/reimbursements of fees and expenses: | ||||||||||||||||||||
Investment advisory services waivers | — | — | — | — | 124 | |||||||||||||||
Miscellaneous fee reimbursements | — | — | — | — | 20 | |||||||||||||||
Total waivers/reimbursements of fees and expenses | — | — | — | — | 144 | |||||||||||||||
Total fees and expenses after waivers/reimbursements | 10,226 | 1,817 | 1,852 | 14,841 | 1,556 | |||||||||||||||
Net investment income | 96,458 | 5,003 | 1,388 | 46,503 | 859 | |||||||||||||||
Net realized gain (loss) and unrealized appreciation (depreciation): | ||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Unaffiliated issuers | 27,103 | (460 | ) | 9 | (2,118 | ) | — | |||||||||||||
Affiliated issuers* | — | — | — | — | (2,470 | ) | ||||||||||||||
Futures contracts | — | 587 | — | (2,897 | ) | — | ||||||||||||||
Swap contracts | (2,615 | ) | 281 | — | 16,684 | — | ||||||||||||||
Currency transactions | (46 | ) | — | — | — | — | ||||||||||||||
Capital gain distributions received from affiliated issuers | — | — | — | — | 21,738 | |||||||||||||||
24,442 | 408 | 9 | 11,669 | 19,268 | ||||||||||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Unaffiliated issuers | (2,755 | ) | 1,326 | (64 | ) | 12,612 | — | |||||||||||||
Affiliated issuers | — | — | — | — | 35,398 | |||||||||||||||
Futures contracts | — | (315 | ) | — | (1,030 | ) | (38 | ) | ||||||||||||
Swap contracts | (1,068 | ) | (1,442 | ) | — | (18,456 | ) | — | ||||||||||||
(3,823 | ) | (431 | ) | (64 | ) | (6,874 | ) | 35,360 | ||||||||||||
Net realized gain (loss) and unrealized appreciation (depreciation) | 20,619 | (23 | ) | (55 | ) | 4,795 | 54,628 | |||||||||||||
Net increase in net assets resulting from operations | $ | 117,077 | $ | 4,980 | $ | 1,333 | $ | 51,298 | $ | 55,487 |
* | Additional information related to non-U.S. taxes, class-specific fees and expenses and affiliated transactions is included in the Notes to Financial Statements. |
† | Amount less than one thousand. |
See Notes to Financial Statements
126 | American Funds Insurance Series |
(dollars in thousands)
Managed Risk International Fund | Managed Risk Blue Chip Income and Growth Fund | Managed Risk Growth- Income Fund | Managed Risk Asset Allocation Fund | ||||||||||||
$ | 2,012 | $ | 7,115 | $ | 3,114 | $ | 70,949 | ||||||||
55 | 159 | 88 | 1,887 | ||||||||||||
2,067 | 7,274 | 3,202 | 72,836 | ||||||||||||
187 | 530 | 281 | 6,118 | ||||||||||||
311 | 883 | 463 | 6,556 | ||||||||||||
311 | 883 | 467 | 10,196 | ||||||||||||
— | † | — | † | — | † | — | † | ||||||||
— | — | — | — | ||||||||||||
53 | 58 | 54 | 142 | ||||||||||||
2 | 6 | 4 | 86 | ||||||||||||
4 | 19 | 6 | 124 | ||||||||||||
1 | 3 | 2 | 34 | ||||||||||||
6 | 6 | 6 | 7 | ||||||||||||
12 | 12 | 12 | 12 | ||||||||||||
2 | 11 | 3 | 818 | ||||||||||||
889 | 2,411 | 1,298 | 24,093 | ||||||||||||
62 | 177 | 94 | 2,039 | ||||||||||||
43 | 9 | 30 | — | ||||||||||||
105 | 186 | 124 | 2,039 | ||||||||||||
784 | 2,225 | 1,174 | 22,054 | ||||||||||||
1,283 | 5,049 | 2,028 | 50,782 | ||||||||||||
— | — | — | — | ||||||||||||
(586 | ) | 229 | (2,961 | ) | 4,957 | ||||||||||
(506 | ) | — | † | — | † | — | |||||||||
— | — | — | — | ||||||||||||
7 | — | † | — | — | |||||||||||
1,333 | 12,606 | 11,244 | 172,372 | ||||||||||||
248 | 12,835 | 8,283 | 177,329 | ||||||||||||
— | — | — | — | ||||||||||||
28,742 | 30,925 | 24,088 | 329,625 | ||||||||||||
(1 | ) | (49 | ) | (28 | ) | (592 | ) | ||||||||
— | — | — | — | ||||||||||||
28,741 | 30,876 | 24,060 | 329,033 | ||||||||||||
28,989 | 43,711 | 32,343 | 506,362 | ||||||||||||
$ | 30,272 | $ | 48,760 | $ | 34,371 | $ | 557,144 |
American Funds Insurance Series | 127 |
Statements of changes in net assets
Global Growth Fund | Global Small Capitalization Fund | Growth Fund | ||||||||||||||||||||||
Year ended December 31 | Year ended December 31 | Year ended December 31 | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 44,912 | $ | 43,253 | $ | 15,312 | $ | 16,207 | $ | 136,774 | $ | 179,970 | ||||||||||||
Net realized gain (loss) | 433,191 | 182,760 | 207,903 | (26,426 | ) | 2,561,073 | 2,252,045 | |||||||||||||||||
Net unrealized appreciation (depreciation) | 1,102,516 | (192,438 | ) | 731,086 | 93,893 | 3,159,797 | (489,479 | ) | ||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 1,580,619 | 33,575 | 954,301 | 83,674 | 5,857,644 | 1,942,536 | ||||||||||||||||||
Dividends and distributions paid to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | (42,742 | ) | (51,522 | ) | (21,019 | ) | (13,487 | ) | (136,164 | ) | (177,667 | ) | ||||||||||||
Distributions from net realized gain on investments | (174,096 | ) | (443,911 | ) | — | (724,863 | ) | (2,251,429 | ) | (1,900,853 | ) | |||||||||||||
Total dividends and distributions paid to shareholders | (216,838 | ) | (495,433 | ) | (21,019 | ) | (738,350 | ) | (2,387,593 | ) | (2,078,520 | ) | ||||||||||||
Net capital share transactions | (335,425 | ) | 134,946 | (495,098 | ) | 300,027 | (34,343 | ) | (111,950 | ) | ||||||||||||||
Total increase (decrease) in net assets | 1,028,356 | (326,912 | ) | 438,184 | (354,649 | ) | 3,435,708 | (247,934 | ) | |||||||||||||||
Net assets: | ||||||||||||||||||||||||
Beginning of year | 5,206,720 | 5,533,632 | 3,876,854 | 4,231,503 | 21,549,750 | 21,797,684 | ||||||||||||||||||
End of year | $ | 6,235,076 | $ | 5,206,720 | $ | 4,315,038 | $ | 3,876,854 | $ | 24,985,458 | $ | 21,549,750 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | 3,242 | $ | (4,119 | ) | $ | 10,507 | $ | 14,387 | $ | 41,109 | $ | 41,075 | |||||||||||
International Growth and Income Fund | Capital Income Builder | Asset Allocation Fund | ||||||||||||||||||||||
Year ended December 31 | Year ended December 31 | Year ended December 31 | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 35,259 | $ | 30,357 | $ | 14,607 | $ | 10,171 | $ | 419,292 | $ | 356,748 | ||||||||||||
Net realized gain (loss) | 5,636 | (11,768 | ) | 8,964 | (5,074 | ) | 1,243,464 | 1,072,096 | ||||||||||||||||
Net unrealized appreciation (depreciation) | 242,768 | (534 | ) | 35,709 | 5,120 | 1,880,231 | 360,724 | |||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 283,663 | 18,055 | 59,280 | 10,217 | 3,542,987 | 1,789,568 | ||||||||||||||||||
Dividends and distributions paid to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | (32,772 | ) | (30,394 | ) | (14,010 | ) | (11,031 | ) | (405,124 | ) | (347,205 | ) | ||||||||||||
Distributions from net realized gain on investments | — | (4,687 | ) | — | — | (1,069,604 | ) | (465,866 | ) | |||||||||||||||
Total dividends and distributions paid to shareholders | (32,772 | ) | (35,081 | ) | (14,010 | ) | (11,031 | ) | (1,474,728 | ) | (813,071 | ) | ||||||||||||
Net capital share transactions | 109,624 | 125,599 | 137,152 | 175,844 | 2,543,934 | 1,700,837 | ||||||||||||||||||
Total increase (decrease) in net assets | 360,515 | 108,573 | 182,422 | 175,030 | 4,612,193 | 2,677,334 | ||||||||||||||||||
Net assets: | ||||||||||||||||||||||||
Beginning of year | 1,101,452 | 992,879 | 412,035 | 237,005 | 21,047,901 | 18,370,567 | ||||||||||||||||||
End of year | $ | 1,461,967 | $ | 1,101,452 | $ | 594,457 | $ | 412,035 | $ | 25,660,094 | $ | 21,047,901 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | 4,347 | $ | 1,519 | $ | 261 | $ | (948 | ) | $ | 92,516 | $ | 71,334 |
128 | 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 | Year ended December 31 | Year ended December 31 | Year ended December 31 | Year ended December 31 | ||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||||||
$ | 105,868 | $ | 107,613 | $ | 32,918 | $ | 30,850 | $ | 195,270 | $ | 173,682 | $ | 44,369 | $ | 37,944 | $ | 445,666 | $ | 406,211 | |||||||||||||||||||
438,684 | 174,210 | 236,990 | (49,262 | ) | 686,720 | 340,410 | 151,286 | 63,152 | 2,102,617 | 1,870,618 | ||||||||||||||||||||||||||||
1,850,536 | 486 | 567,588 | 165,410 | 550,461 | 803,943 | 281,638 | 36,088 | 3,222,646 | 478,434 | |||||||||||||||||||||||||||||
2,395,088 | 282,309 | 837,496 | 146,998 | 1,432,451 | 1,318,035 | 477,293 | 137,184 | 5,770,929 | 2,755,263 | |||||||||||||||||||||||||||||
(124,236 | ) | (112,086 | ) | (34,131 | ) | (26,290 | ) | (188,626 | ) | (170,997 | ) | (42,795 | ) | (36,671 | ) | (435,451 | ) | (395,167 | ) | |||||||||||||||||||
(100,924 | ) | (637,485 | ) | — | — | (328,660 | ) | (595,206 | ) | (33,692 | ) | — | (1,807,557 | ) | (2,694,334 | ) | ||||||||||||||||||||||
(225,160 | ) | (749,571 | ) | (34,131 | ) | (26,290 | ) | (517,286 | ) | (766,203 | ) | (76,487 | ) | (36,671 | ) | (2,243,008 | ) | (3,089,501 | ) | |||||||||||||||||||
133,019 | 439,487 | (164,517 | ) | 79,376 | (178,554 | ) | 1,193,132 | (289,969 | ) | 114,314 | 1,071,251 | 2,214,035 | ||||||||||||||||||||||||||
2,302,947 | (27,775 | ) | 638,848 | 200,084 | 736,611 | 1,744,964 | 110,837 | 214,827 | 4,599,172 | 1,879,797 | ||||||||||||||||||||||||||||
7,454,875 | 7,482,650 | 2,893,865 | 2,693,781 | 8,643,238 | 6,898,274 | 1,991,609 | 1,776,782 | 26,093,190 | 24,213,393 | |||||||||||||||||||||||||||||
$ | 9,757,822 | $ | 7,454,875 | $ | 3,532,713 | $ | 2,893,865 | $ | 9,379,849 | $ | 8,643,238 | $ | 2,102,446 | $ | 1,991,609 | $ | 30,692,362 | $ | 26,093,190 | |||||||||||||||||||
$ | 2,852 | $ | 29,116 | $ | 4,643 | $ | (14,553 | ) | $ | 37,271 | $ | 30,648 | $ | 6,666 | $ | 6,361 | $ | 88,048 | $ | 79,383 | ||||||||||||||||||
Global Balanced Fund | Bond Fund | Global Bond Fund | High-Income Bond Fund | Mortgage Fund | ||||||||||||||||||||||||||||||||||
Year ended December 31 | Year ended December 31 | Year ended December 31 | Year ended December 31 | Year ended December 31 | ||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||||||
$ | 4,343 | $ | 3,667 | $ | 226,928 | $ | 188,699 | $ | 53,646 | $ | 49,208 | $ | 96,458 | $ | 106,342 | $ | 5,003 | $ | 4,590 | |||||||||||||||||||
9,276 | 1,518 | (10,510 | ) | 163,219 | (26,825 | ) | (11,548 | ) | 24,442 | (82,614 | ) | 408 | 4,966 | |||||||||||||||||||||||||
38,239 | 5,219 | 193,041 | (52,479 | ) | 132,187 | 25,290 | (3,823 | ) | 262,380 | (431 | ) | (1,322 | ) | |||||||||||||||||||||||||
51,858 | 10,404 | 409,459 | 299,439 | 159,008 | 62,950 | 117,077 | 286,108 | 4,980 | 8,234 | |||||||||||||||||||||||||||||
(3,252 | ) | (3,285 | ) | (220,546 | ) | (197,417 | ) | (11,164 | ) | (15,576 | ) | (98,414 | ) | (106,140 | ) | (5,571 | ) | (6,310 | ) | |||||||||||||||||||
(10,070 | ) | — | (157,395 | ) | (35,948 | ) | (14,449 | ) | (4,207 | ) | — | — | (2,214 | ) | (3,532 | ) | ||||||||||||||||||||||
(13,322 | ) | (3,285 | ) | (377,941 | ) | (233,365 | ) | (25,613 | ) | (19,783 | ) | (98,414 | ) | (106,140 | ) | (7,785 | ) | (9,842 | ) | |||||||||||||||||||
63,483 | 25,497 | (223,341 | ) | 898,544 | 85,999 | (40,534 | ) | (346,424 | ) | (193,559 | ) | 2,570 | (117 | ) | ||||||||||||||||||||||||
102,019 | 32,616 | (191,823 | ) | 964,618 | 219,394 | 2,633 | (327,761 | ) | (13,591 | ) | (235 | ) | (1,725 | ) | ||||||||||||||||||||||||
251,880 | 219,264 | 10,889,517 | 9,924,899 | 2,248,184 | 2,245,551 | 1,781,641 | 1,795,232 | 340,405 | 342,130 | |||||||||||||||||||||||||||||
$ | 353,899 | $ | 251,880 | $ | 10,697,694 | $ | 10,889,517 | $ | 2,467,578 | $ | 2,248,184 | $ | 1,453,880 | $ | 1,781,641 | $ | 340,170 | $ | 340,405 | |||||||||||||||||||
$ | (671 | ) | $ | (1,060 | ) | $ | 35,376 | $ | 59,835 | $ | 2,784 | $ | (5,646 | ) | $ | 13,377 | $ | 17,830 | $ | 1,052 | $ | 1,033 |
American Funds Insurance Series | 129 |
Statements of changes in net assets
Ultra-Short Bond Fund | U.S. Government/ AAA-Rated Securities Fund | Managed Risk Growth Fund | ||||||||||||||||||||||
Year ended December 31 | Year ended December 31 | Year ended December 31 | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 1,388 | $ | (452 | ) | $ | 46,503 | $ | 36,028 | $ | 859 | $ | 731 | |||||||||||
Net realized gain (loss) | 9 | — | 11,669 | 9,371 | 19,268 | (560 | ) | |||||||||||||||||
Net unrealized appreciation (depreciation) | (64 | ) | (3 | ) | (6,874 | ) | (5,718 | ) | 35,360 | 6,120 | ||||||||||||||
Net increase (decrease) in net assets resulting from operations | 1,333 | (455 | ) | 51,298 | 39,681 | 55,487 | 6,291 | |||||||||||||||||
Dividends and distributions paid to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | (906 | ) | — | (43,993 | ) | (46,049 | ) | (734 | ) | (330 | ) | |||||||||||||
Distributions from net realized gain on investments | — | — | — | (60,973 | ) | (4,142 | ) | (15,012 | ) | |||||||||||||||
Total dividends and distributions paid to shareholders | (906 | ) | — | (43,993 | ) | (107,022 | ) | (4,876 | ) | (15,342 | ) | |||||||||||||
Net capital share transactions | (46,638 | ) | (11,965 | ) | 58,286 | 43,179 | 36,220 | 64,347 | ||||||||||||||||
Total increase (decrease) in net assets | (46,211 | ) | (12,420 | ) | 65,591 | (24,162 | ) | 86,831 | 55,296 | |||||||||||||||
Net assets: | ||||||||||||||||||||||||
Beginning of year | 351,016 | 363,436 | 3,037,724 | 3,061,886 | 201,128 | 145,832 | ||||||||||||||||||
End of year | $ | 304,805 | $ | 351,016 | $ | 3,103,315 | $ | 3,037,724 | $ | 287,959 | $ | 201,128 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | 462 | $ | (20 | ) | $ | 9,726 | $ | 7,697 | $ | 1,399 | $ | 729 |
See Notes to Financial Statements
130 | American Funds Insurance Series |
(dollars in thousands)
Managed Risk International Fund | Managed Risk Blue Chip Income and Growth Fund | Managed Risk Growth-Income Fund | Managed Risk Asset Allocation Fund | |||||||||||||||||||||||||||
Year ended December 31 | Year ended December 31 | Year ended December 31 | Year ended December 31 | |||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||
$ | 1,283 | $ | 884 | $ | 5,049 | $ | 4,012 | $ | 2,028 | $ | 1,562 | $ | 50,782 | $ | 41,207 | |||||||||||||||
248 | (4,433 | ) | 12,835 | 5,539 | 8,283 | 5,070 | 177,329 | 37,559 | ||||||||||||||||||||||
28,741 | 1,071 | 30,876 | 15,029 | 24,060 | 2,438 | 329,033 | 148,316 | |||||||||||||||||||||||
30,272 | (2,478 | ) | 48,760 | 24,580 | 34,371 | 9,070 | 557,144 | 227,082 | ||||||||||||||||||||||
(900 | ) | (843 | ) | (5,161 | ) | (3,375 | ) | (1,867 | ) | (1,707 | ) | (31,722 | ) | (44,188 | ) | |||||||||||||||
(1,403 | ) | (2,185 | ) | (5,568 | ) | (5,923 | ) | (7,726 | ) | (8,465 | ) | (38,742 | ) | (93,578 | ) | |||||||||||||||
(2,303 | ) | (3,028 | ) | (10,729 | ) | (9,298 | ) | (9,593 | ) | (10,172 | ) | (70,464 | ) | (137,766 | ) | |||||||||||||||
22,849 | 19,951 | 37,657 | 138,529 | 23,434 | 39,189 | 408,750 | 804,645 | |||||||||||||||||||||||
50,818 | 14,445 | 75,688 | 153,811 | 48,212 | 38,087 | 895,430 | 893,961 | |||||||||||||||||||||||
97,605 | 83,160 | 291,216 | 137,405 | 160,756 | 122,669 | 3,558,980 | 2,665,019 | |||||||||||||||||||||||
$ | 148,423 | $ | 97,605 | $ | 366,904 | $ | 291,216 | $ | 208,968 | $ | 160,756 | $ | 4,454,410 | $ | 3,558,980 | |||||||||||||||
$ | 1,323 | $ | 891 | $ | 5,669 | $ | 4,274 | $ | 2,167 | $ | 1,865 | $ | 53,091 | $ | 31,585 |
American Funds Insurance Series | 131 |
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 28 different funds (the “funds”). Twenty-three funds in the series are covered in this report. The other five funds in the series, American Funds Insurance Series - Portfolio Series, are covered in a separate report. The assets of each fund are segregated, with each fund accounted for separately. Capital Research and Management Company (“CRMC”) is the series’ investment adviser. Milliman Financial Risk Management LLC (“Milliman FRM”) is the subadviser for the risk management strategy for eight of the funds (the “managed risk funds”), five of which are covered in this report.
The managed risk funds covered in this report are Managed Risk Growth Fund, Managed Risk International Fund, Managed Risk Blue Chip Income and Growth Fund, Managed Risk Growth-Income Fund and Managed Risk Asset Allocation Fund. The managed risk funds invest in other funds within the series (the “underlying funds”) and employ Milliman FRM to implement the risk management strategy, which consists of using hedging instruments — primarily short positions on exchange-traded futures contracts — to attempt to stabilize the volatility of the funds around target volatility levels and reduce the downside exposure of the funds during periods of significant market declines.
Shareholders approved a proposal to reorganize the series from a Massachusetts business trust to a Delaware statutory trust. The reorganization may be completed in the next 12 months; however, the series reserves the right to delay the implementation.
The investment objectives for each fund covered in this report are as follows:
Global Growth Fund — Seeks to provide long-term growth of capital.
Global Small Capitalization Fund — Seeks to provide long-term growth of capital.
Growth Fund — Seeks to provide growth of capital.
International Fund — Seeks to provide long-term growth of capital.
New World Fund — Seeks long-term capital appreciation.
Blue Chip Income and Growth Fund — Seeks to produce income exceeding the average yield on U.S. stocks generally and to provide an opportunity for growth of principal consistent with sound common stock investing.
Global Growth and Income Fund — Seeks to provide long-term growth of capital while providing current income.
Growth-Income Fund — Seeks to achieve long-term growth of capital and income.
International Growth and Income Fund — Seeks to provide long-term growth of capital while providing current income.
Capital Income Builder — Seeks to provide a level of current income that exceeds the average yield on U.S. stocks generally and to provide a growing stream of income over the years. Secondarily, seeks to provide growth of capital.
Asset Allocation Fund — Seeks to provide high total return consistent with preservation of capital over the long term.
Global Balanced Fund — Seeks the balanced accomplishment of three objectives: long-term growth of capital, conservation of principal and current income.
Bond Fund — Seeks to provide as high a level of current income as is consistent with the preservation of capital.
Global Bond Fund — Seeks to provide, over the long term, a high level of total return consistent with prudent investment management.
High-Income Bond Fund — Seeks to provide a high level of current income and, secondarily, capital appreciation.
Mortgage Fund — Seeks to provide current income and preservation of capital.
132 | American Funds Insurance Series |
Ultra-Short Bond Fund — Seeks to provide current income, consistent with the maturity and quality standards applicable to the fund, and preservation of capital and liquidity.
U.S. Government/AAA-Rated Securities Fund — Seeks to provide a high level of current income consistent with preservation of capital.
Managed Risk Growth Fund — Seeks to provide growth of capital while seeking to manage volatility and provide downside protection.
Managed Risk International Fund — Seeks to provide long-term growth of capital while seeking to manage volatility and provide downside protection.
Managed Risk Blue Chip Income and Growth Fund — Seeks to produce income exceeding the average yield on U.S. stocks generally and to provide an opportunity for growth of principal consistent with sound common stock investing, in each case while seeking to manage volatility and provide downside protection.
Managed Risk Growth-Income Fund — Seeks to achieve long-term growth of capital and income while seeking to manage volatility and provide downside protection.
Managed Risk Asset Allocation Fund — Seeks to provide high total return consistent with preservation of capital over the long term while seeking to manage volatility and provide downside protection.
Each fund in the series, except the managed risk funds, offers either four or five share classes (Classes 1, 1A, 2, 3 or 4); the managed risk funds offer two share classes (Classes P1 and P2). Holders of all share classes of each fund have equal pro rata rights to assets, dividends and liquidation proceeds of each fund held. Each share class of each fund has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses (“class-specific fees and expenses”), primarily due to different arrangements for certain distribution expenses. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class of each fund.
2. Significant accounting policies
Each fund is an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. Each fund’s financial statements have been prepared to comply with U.S. generally accepted accounting principles (“U.S. GAAP”). These principles require the series’ investment adviser to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Subsequent events, if any, have been evaluated through the date of issuance in the preparation of the financial statements. The funds follow the significant accounting policies described in this section, as well as the valuation policies described in the next section on valuation.
Security transactions and related investment income — Security transactions are recorded by the funds as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. In the event a security is purchased with a delayed payment date, the funds will segregate liquid assets sufficient to meet their payment obligations. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.
Fees and expenses — The fees and expenses of the underlying funds held by the managed risk funds are not included in the fees and expenses reported for each of the managed risk funds; however, they are indirectly reflected in the valuation of each of the underlying funds. These fees are included in the net effective expense ratios that are provided as supplementary information in the financial highlights tables.
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.
Dividends and distributions to shareholders — Dividends and distributions to shareholders are recorded on each fund’s ex-dividend date.
American Funds Insurance Series | 133 |
Currency translation — Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates supplied by one or more pricing vendors on the valuation date. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions. The effects of changes in exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments in the funds’ statements of operations. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in currencies other than U.S. dollars are disclosed separately.
3. Valuation
CRMC, the series’ investment adviser, values the funds’ investments at fair value as defined by U.S. GAAP. The net asset value of each share class of each fund is generally determined as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.
Methods and inputs — The series’ investment adviser uses the following methods and inputs to establish the fair value of each fund’s assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.
Equity securities are generally valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market on which the security trades. The value of an underlying fund is based on its reported net asset value.
Fixed-income securities, including short-term securities, are generally valued at prices obtained from one or more pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the funds are authorized to invest. However, these classifications are not exclusive and any of the inputs may be used to value any other class of fixed-income security.
Fixed-income class | Examples of standard inputs |
All | Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”) |
Corporate bonds & notes; convertible securities | Standard inputs and underlying equity of the issuer |
Bonds & notes of governments & government agencies | Standard inputs and interest rate volatilities |
Mortgage-backed; asset-backed obligations | Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information |
Municipal securities | Standard inputs and, for certain distressed securities, cash flows or liquidation values using a net present value calculation based on inputs that include, but are not limited to, financial statements and debt contracts |
When the series’ investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be representative), fixed-income securities will be valued in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask prices are not available) or at prices for securities of comparable maturity, quality and type.
134 | 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. The Government Cash Management Fund held by the managed risk funds is managed to maintain a $1.00 net asset value per share. The net asset value of each share class of each managed risk fund is calculated based on the reported net asset values of the underlying funds in which each fund invests.
Exchange-traded 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. Forward currency contracts are valued at the mean of representative quoted bid and ask prices, generally based on prices supplied by one or more pricing vendors. Interest rate swaps and credit default swaps are generally valued by pricing vendors based on market inputs that include the index and term of index, reset frequency, payer/receiver, currency and pay frequency.
Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the series’ investment adviser are fair valued as determined in good faith under fair value guidelines adopted by authority of the series’ board of trustees as further described. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. In addition, the closing prices of equity securities and futures that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of each fund is determined. Fair valuations and valuations of investments and futures that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.
Processes and structure — The series’ board of trustees has delegated authority to the series’ investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees 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.
American Funds Insurance Series | 135 |
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, 2017 (dollars in thousands):
Global Growth Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2* | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 1,081,264 | $ | 918,147 | $ | — | $ | 1,999,411 | ||||||||
Consumer discretionary | 694,629 | 438,256 | — | 1,132,885 | ||||||||||||
Health care | 382,457 | 363,432 | — | 745,889 | ||||||||||||
Financials | 218,654 | 432,229 | — | 650,883 | ||||||||||||
Consumer staples | 145,849 | 319,565 | — | 465,414 | ||||||||||||
Industrials | 130,560 | 254,066 | — | 384,626 | ||||||||||||
Materials | 79,260 | 60,639 | — | 139,899 | ||||||||||||
Telecommunication services | — | 69,545 | — | 69,545 | ||||||||||||
Other | 54,064 | 76,455 | — | 130,519 | ||||||||||||
Miscellaneous | 100,887 | 208,229 | — | 309,116 | ||||||||||||
Bonds, notes & other debt instruments | — | 1,998 | — | 1,998 | ||||||||||||
Short-term securities | — | 222,324 | — | 222,324 | ||||||||||||
Total | $ | 2,887,624 | $ | 3,364,885 | $ | — | $ | 6,252,509 |
Other investments† | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on open forward currency contracts | $ | — | $ | 15 | $ | — | $ | 15 |
* | Securities with a value of $3,130,602,000, which represented 50.21% of the net assets of the fund, were classified as Level 2 due to 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 | $ | 329,356 | $ | 551,760 | $ | 9,428 | $ | 890,544 | ||||||||
Health care | 603,611 | 110,760 | — | 714,371 | ||||||||||||
Information technology | 412,279 | 301,973 | — | 714,252 | ||||||||||||
Industrials | 151,501 | 294,339 | — | 445,840 | ||||||||||||
Financials | 214,438 | 190,470 | — | 404,908 | ||||||||||||
Materials | 104,305 | 71,999 | — | 176,304 | ||||||||||||
Consumer staples | 3,788 | 143,003 | — | 146,791 | ||||||||||||
Energy | 84,263 | 24,844 | 10,408 | 119,515 | ||||||||||||
Real estate | 41,034 | 69,305 | — | 110,339 | ||||||||||||
Utilities | 11,606 | 63,512 | — | 75,118 | ||||||||||||
Telecommunication services | — | 18,660 | — | 18,660 | ||||||||||||
Miscellaneous | 102,354 | 108,632 | — | 210,986 | ||||||||||||
Rights & warrants | 376 | — | — | 376 | ||||||||||||
Convertible bonds | — | 8,667 | — | 8,667 | ||||||||||||
Bonds, notes & other debt instruments | — | 4,110 | — | 4,110 | ||||||||||||
Short-term securities | — | 274,471 | — | 274,471 | ||||||||||||
Total | $ | 2,058,911 | $ | 2,236,505 | $ | 19,836 | $ | 4,315,252 |
136 | American Funds Insurance Series |
Other investments† | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on open forward currency contracts | $ | — | $ | 89 | $ | — | $ | 89 | ||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | — | (1,192 | ) | — | (1,192 | ) | ||||||||||
Total | $ | — | $ | (1,103 | ) | $ | — | $ | (1,103 | ) |
* | Securities with a value of $1,942,046,000, which represented 45.01% of the net assets of the fund, were classified as Level 2 due to significant market movements following the close of local trading. |
† | Forward currency contracts are not included in the investment portfolio. |
Growth Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2* | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 6,845,509 | $ | 915,367 | $ | — | $ | 7,760,876 | ||||||||
Consumer discretionary | 4,738,236 | 94,422 | — | 4,832,658 | ||||||||||||
Health care | 3,259,476 | — | — | 3,259,476 | ||||||||||||
Financials | 2,185,851 | 147,823 | — | 2,333,674 | ||||||||||||
Energy | 1,816,396 | 25,468 | — | 1,841,864 | ||||||||||||
Industrials | 1,358,459 | 295,546 | — | 1,654,005 | ||||||||||||
Consumer staples | 417,696 | 145,792 | — | 563,488 | ||||||||||||
Other | 574,854 | — | — | 574,854 | ||||||||||||
Miscellaneous | 617,094 | 15,368 | — | 632,462 | ||||||||||||
Convertible stocks | — | — | 9,173 | 9,173 | ||||||||||||
Short-term securities | — | 1,576,732 | — | 1,576,732 | ||||||||||||
Total | $ | 21,813,571 | $ | 3,216,518 | $ | 9,173 | $ | 25,039,262 |
* | Securities with a value of $1,614,318,000, which represented 6.46% of the net assets of the fund, were classified as Level 2 due to significant market movements following the close of local trading. |
International Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2* | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Financials | $ | 41,115 | $ | 1,696,929 | $ | — | $ | 1,738,044 | ||||||||
Information technology | 234,815 | 942,033 | — | 1,176,848 | ||||||||||||
Consumer discretionary | 93,697 | 1,013,232 | — | 1,106,929 | ||||||||||||
Health care | 98,109 | 857,742 | — | 955,851 | ||||||||||||
Industrials | 32,143 | 862,182 | — | 894,325 | ||||||||||||
Consumer staples | 25,429 | 769,539 | — | 794,968 | ||||||||||||
Materials | 195,900 | 361,779 | — | 557,679 | ||||||||||||
Utilities | — | 515,357 | — | 515,357 | ||||||||||||
Energy | 143,691 | 315,986 | — | 459,677 | ||||||||||||
Telecommunication services | — | 244,269 | — | 244,269 | ||||||||||||
Real estate | — | 190,704 | — | 190,704 | ||||||||||||
Miscellaneous | 6,325 | 222,989 | — | 229,314 | ||||||||||||
Rights & warrants | — | 6,390 | — | 6,390 | ||||||||||||
Bonds, notes & other debt instruments | — | 71,438 | — | 71,438 | ||||||||||||
Short-term securities | — | 813,820 | — | 813,820 | ||||||||||||
Total | $ | 871,224 | $ | 8,884,389 | $ | — | $ | 9,755,613 |
See next page for footnote.
American Funds Insurance Series | 137 |
Other investments† | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | $ | — | $ | (355 | ) | $ | — | $ | (355 | ) |
* | Securities with a value of $7,669,394,000, which represented 78.60% of the net assets of the fund, were classified as Level 2 due to significant market movements following the close of local trading. |
† | Forward currency contracts are not included in the investment portfolio. |
New World Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2* | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 456,159 | $ | 447,994 | $ | — | $ | 904,153 | ||||||||
Financials | 161,231 | 233,656 | — | 394,887 | ||||||||||||
Consumer discretionary | 147,598 | 171,119 | — | 318,717 | ||||||||||||
Energy | 44,789 | 259,731 | — | 304,520 | ||||||||||||
Consumer staples | 37,317 | 247,836 | — | 285,153 | ||||||||||||
Materials | 133,930 | 140,519 | — | 274,449 | ||||||||||||
Industrials | 53,846 | 165,765 | — | 219,611 | ||||||||||||
Health care | 77,782 | 79,033 | — | 156,815 | ||||||||||||
Telecommunication services | 4,339 | 83,524 | — | 87,863 | ||||||||||||
Utilities | 54,367 | 12,099 | — | 66,466 | ||||||||||||
Real estate | 38,038 | — | 27 | 38,065 | ||||||||||||
Miscellaneous | 47,500 | 117,331 | — | 164,831 | ||||||||||||
Preferred securities | — | — | 1,340 | 1,340 | ||||||||||||
Rights & warrants | — | 62,810 | — | 62,810 | ||||||||||||
Bonds, notes & other debt instruments | — | 97,099 | — | 97,099 | ||||||||||||
Short-term securities | — | 171,372 | — | 171,372 | ||||||||||||
Total | $ | 1,256,896 | $ | 2,289,888 | $ | 1,367 | $ | 3,548,151 |
Other investments† | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on open forward currency contracts | $ | — | $ | 69 | $ | — | $ | 69 | ||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | — | (392 | ) | — | (392 | ) | ||||||||||
Total | $ | — | $ | (323 | ) | $ | — | $ | (323 | ) |
* | Securities with a value of $1,899,212,000, which represented 53.76% of the net assets of the fund, were classified as Level 2 due to significant market movements following the close of local trading. |
† | Forward currency contracts are not included in the investment portfolio. |
138 | American Funds Insurance Series |
Blue Chip Income and Growth Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Health care | $ | 1,797,572 | $ | — | $ | — | $ | 1,797,572 | ||||||||
Financials | 1,260,539 | — | — | 1,260,539 | ||||||||||||
Information technology | 1,121,010 | — | — | 1,121,010 | ||||||||||||
Industrials | 1,065,467 | — | — | 1,065,467 | ||||||||||||
Consumer staples | 1,001,235 | — | — | 1,001,235 | ||||||||||||
Telecommunication services | 794,583 | — | — | 794,583 | ||||||||||||
Energy | 733,529 | — | — | 733,529 | ||||||||||||
Consumer discretionary | 520,449 | — | — | 520,449 | ||||||||||||
Materials | 259,727 | — | — | 259,727 | ||||||||||||
Other | 112,331 | — | — | 112,331 | ||||||||||||
Miscellaneous | 361,132 | — | — | 361,132 | ||||||||||||
Short-term securities | — | 349,194 | — | 349,194 | ||||||||||||
Total | $ | 9,027,574 | $ | 349,194 | $ | — | $ | 9,376,768 |
Global Growth and Income Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2* | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 203,616 | $ | 295,474 | $ | — | $ | 499,090 | ||||||||
Financials | 120,856 | 106,026 | — | 226,882 | ||||||||||||
Industrials | 96,923 | 126,666 | — | 223,589 | ||||||||||||
Consumer staples | 46,060 | 138,984 | — | 185,044 | ||||||||||||
Consumer discretionary | 77,851 | 99,746 | — | 177,597 | ||||||||||||
Health care | 131,217 | 19,117 | — | 150,334 | ||||||||||||
Energy | 23,032 | 106,979 | — | 130,011 | ||||||||||||
Materials | 53,553 | 69,868 | — | 123,421 | ||||||||||||
Real estate | 61,482 | 11,605 | — | 73,087 | ||||||||||||
Utilities | 11,028 | 36,063 | — | 47,091 | ||||||||||||
Telecommunication services | 21,966 | 14,635 | — | 36,601 | ||||||||||||
Miscellaneous | 38,248 | 58,585 | — | 96,833 | ||||||||||||
Convertible bonds | — | 6,622 | — | 6,622 | ||||||||||||
Bonds, notes & other debt instruments | — | 41,995 | — | 41,995 | ||||||||||||
Short-term securities | — | 88,129 | — | 88,129 | ||||||||||||
Total | $ | 885,832 | $ | 1,220,494 | $ | — | $ | 2,106,326 |
* | Securities with a value of $1,083,748,000, which represented 51.55% of the net assets of the fund, were classified as Level 2 due to significant market movements following the close of local trading. |
American Funds Insurance Series | 139 |
Growth-Income Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2* | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 5,040,128 | $ | 155,981 | $ | — | $ | 5,196,109 | ||||||||
Consumer discretionary | 4,770,317 | 225,966 | — | 4,996,283 | ||||||||||||
Health care | 4,376,528 | 183,158 | — | 4,559,686 | ||||||||||||
Financials | 2,910,454 | 446,084 | — | 3,356,538 | ||||||||||||
Industrials | 2,578,432 | 332,460 | — | 2,910,892 | ||||||||||||
Consumer staples | 1,489,742 | 814,677 | — | 2,304,419 | ||||||||||||
Energy | 1,559,365 | 398,628 | — | 1,957,993 | ||||||||||||
Materials | 1,277,722 | 91,080 | — | 1,368,802 | ||||||||||||
Telecommunication services | 600,824 | — | — | 600,824 | ||||||||||||
Real estate | 535,421 | — | — | 535,421 | ||||||||||||
Utilities | 250,402 | 855 | — | 251,257 | ||||||||||||
Mutual funds | 55,129 | — | — | 55,129 | ||||||||||||
Miscellaneous | 480,393 | 309,384 | — | 789,777 | ||||||||||||
Convertible stocks | 6,192 | 5,450 | — | 11,642 | ||||||||||||
Convertible bonds | — | 107,354 | — | 107,354 | ||||||||||||
Bonds, notes & other debt instruments | — | 56,489 | — | 56,489 | ||||||||||||
Short-term securities | — | 1,651,258 | — | 1,651,258 | ||||||||||||
Total | $ | 25,931,049 | $ | 4,778,824 | $ | — | $ | 30,709,873 |
* | Securities with a value of $2,749,134,000, which represented 8.96% of the net assets of the fund, were classified as Level 2 due to significant market movements following the close of local trading. |
International Growth and Income Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2* | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Financials | $ | 21,988 | $ | 313,223 | $ | — | $ | 335,211 | ||||||||
Consumer staples | 16,215 | 117,019 | — | 133,234 | ||||||||||||
Industrials | — | 122,482 | — | 122,482 | ||||||||||||
Utilities | — | 117,311 | — | 117,311 | ||||||||||||
Information technology | 25,969 | 88,895 | — | 114,864 | ||||||||||||
Health care | 12,545 | 100,340 | — | 112,885 | ||||||||||||
Consumer discretionary | 8,917 | 98,687 | — | 107,604 | ||||||||||||
Real estate | — | 89,077 | — | 89,077 | ||||||||||||
Energy | 4,763 | 76,029 | — | 80,792 | ||||||||||||
Materials | 10,678 | 62,774 | — | 73,452 | ||||||||||||
Telecommunication services | — | 43,293 | — | 43,293 | ||||||||||||
Bonds, notes & other debt instruments | — | 36,911 | — | 36,911 | ||||||||||||
Short-term securities | — | 93,397 | — | 93,397 | ||||||||||||
Total | $ | 101,075 | $ | 1,359,438 | $ | — | $ | 1,460,513 |
* | Securities with a value of $1,188,243,000, which represented 81.28% of the net assets of the fund, were classified as Level 2 due to significant market movements following the close of local trading. |
140 | American Funds Insurance Series |
Capital Income Builder
Investment securities | ||||||||||||||||
Level 1 | Level 2* | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Energy | $ | 52,870 | $ | 7,692 | $ | — | $ | 60,562 | ||||||||
Financials | 18,600 | 41,604 | — | 60,204 | ||||||||||||
Consumer staples | 19,698 | 32,724 | — | 52,422 | ||||||||||||
Information technology | 33,208 | 17,065 | — | 50,273 | ||||||||||||
Consumer discretionary | 16,007 | 21,266 | — | 37,273 | ||||||||||||
Telecommunication services | 5,072 | 30,191 | — | 35,263 | ||||||||||||
Real estate | 18,738 | 10,284 | — | 29,022 | ||||||||||||
Utilities | 5,189 | 21,210 | — | 26,399 | ||||||||||||
Health care | 14,691 | 8,660 | — | 23,351 | ||||||||||||
Industrials | 8,324 | 12,728 | — | 21,052 | ||||||||||||
Materials | 9,381 | 2,890 | — | 12,271 | ||||||||||||
Miscellaneous | — | 1,290 | — | 1,290 | ||||||||||||
Convertible stocks | 14,967 | — | — | 14,967 | ||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
U.S. Treasury bonds & notes | — | 86,945 | — | 86,945 | ||||||||||||
Mortgage-backed obligations | — | 28,433 | — | 28,433 | ||||||||||||
Corporate bonds & notes | — | 21,514 | — | 21,514 | ||||||||||||
Asset-backed obligations | — | 3,981 | — | 3,981 | ||||||||||||
Short-term securities | — | 33,972 | — | 33,972 | ||||||||||||
Total | $ | 216,745 | $ | 382,449 | $ | — | $ | 599,194 |
* | Securities with a value of $207,107,000, which represented 34.84% of the net assets of the fund, were classified as Level 2 due to significant market movements following the close of local trading. |
Asset Allocation Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2* | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 4,377,468 | $ | 208,359 | $ | 2,985 | $ | 4,588,812 | ||||||||
Health care | 2,376,858 | — | 368 | 2,377,226 | ||||||||||||
Financials | 2,219,696 | 120,644 | — | 2,340,340 | ||||||||||||
Consumer discretionary | 1,734,901 | — | — | 1,734,901 | ||||||||||||
Energy | 1,436,851 | 1,999 | — | 1,438,850 | ||||||||||||
Consumer staples | 561,703 | 583,888 | — | 1,145,591 | ||||||||||||
Materials | 922,022 | — | — | 922,022 | ||||||||||||
Industrials | 863,216 | 2,948 | 16 | 866,180 | ||||||||||||
Real estate | 329,533 | — | — | 329,533 | ||||||||||||
Telecommunication services | 99,225 | — | — | 99,225 | ||||||||||||
Miscellaneous | 606,605 | 53,692 | — | 660,297 | ||||||||||||
Convertible stocks | — | 7,062 | 5,725 | 12,787 | ||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
U.S. Treasury bonds & notes | — | 2,929,266 | — | 2,929,266 | ||||||||||||
Corporate bonds & notes | — | 2,277,205 | 13,081 | 2,290,286 | ||||||||||||
Mortgage-backed obligations | — | 1,357,892 | — | 1,357,892 | ||||||||||||
Federal agency bonds & notes | — | 51,094 | — | 51,094 | ||||||||||||
Other | — | 211,780 | — | 211,780 | ||||||||||||
Short-term securities | — | 2,803,299 | — | 2,803,299 | ||||||||||||
Total | $ | 15,528,078 | $ | 10,609,128 | $ | 22,175 | $ | 26,159,381 |
See next page for footnote.
American Funds Insurance Series | 141 |
Other investments† | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 73 | $ | — | $ | — | $ | 73 | ||||||||
Unrealized appreciation on interest rate swaps | — | 658 | — | 658 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (826 | ) | — | — | (826 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | — | (6,906 | ) | — | (6,906 | ) | ||||||||||
Total | $ | (753 | ) | $ | (6,248 | ) | $ | — | $ | (7,001 | ) |
* | Securities with a value of $957,800,000, which represented 3.73% of the net assets of the fund, were classified as Level 2 due to significant market movements following the close of local trading. |
† | Futures contracts and interest rate swaps are not included in the investment portfolio. |
Global Balanced Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2* | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 16,700 | $ | 22,876 | $ | — | $ | 39,576 | ||||||||
Industrials | 11,393 | 18,011 | — | 29,404 | ||||||||||||
Financials | 15,563 | 12,877 | — | 28,440 | ||||||||||||
Consumer staples | 13,257 | 12,223 | — | 25,480 | ||||||||||||
Health care | 13,467 | 4,281 | — | 17,748 | ||||||||||||
Materials | 7,529 | 8,099 | — | 15,628 | ||||||||||||
Energy | 7,323 | 8,128 | — | 15,451 | ||||||||||||
Consumer discretionary | 7,808 | 7,463 | — | 15,271 | ||||||||||||
Utilities | 2,201 | 5,269 | — | 7,470 | ||||||||||||
Real estate | 1,921 | 4,203 | — | 6,124 | ||||||||||||
Miscellaneous | 6,241 | 10,961 | — | 17,202 | ||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
Bonds & notes of governments & government agencies outside the U.S. | — | 50,017 | — | 50,017 | ||||||||||||
U.S. Treasury bonds & notes | — | 33,942 | — | 33,942 | ||||||||||||
Corporate bonds & notes | — | 22,383 | — | 22,383 | ||||||||||||
Mortgage-backed obligations | — | 5,463 | — | 5,463 | ||||||||||||
Asset-backed obligations | — | 200 | — | 200 | ||||||||||||
Short-term securities | — | 26,448 | — | 26,448 | ||||||||||||
Total | $ | 103,403 | $ | 252,844 | $ | — | $ | 356,247 |
Other investments† | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on open forward currency contracts | $ | — | $ | 144 | $ | — | $ | 144 | ||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | — | (269 | ) | — | (269 | ) | ||||||||||
Total | $ | — | $ | (125 | ) | $ | — | $ | (125 | ) |
* | Securities with a value of $112,907,000, which represented 31.90% of the net assets of the fund, were classified as Level 2 due to significant market movements following the close of local trading. |
† | Forward currency contracts are not included in the investment portfolio. |
142 | American Funds Insurance Series |
Bond Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
Corporate bonds & notes | $ | — | $ | 3,460,122 | $ | 3,034 | $ | 3,463,156 | ||||||||
U.S. Treasury bonds & notes | — | 2,907,009 | — | 2,907,009 | ||||||||||||
Mortgage-backed obligations | — | 2,764,932 | — | 2,764,932 | ||||||||||||
Bonds & notes of governments & government agencies outside the U.S. | — | 681,980 | — | 681,980 | ||||||||||||
Asset-backed obligations | — | 297,847 | — | 297,847 | ||||||||||||
Municipals | — | 240,326 | — | 240,326 | ||||||||||||
Federal agency bonds & notes | — | 12,036 | — | 12,036 | ||||||||||||
Common stocks | — | — | 1,242 | 1,242 | ||||||||||||
Rights & warrants | — | 55 | — | 55 | ||||||||||||
Short-term securities | — | 2,366,794 | — | 2,366,794 | ||||||||||||
Total | $ | — | $ | 12,731,101 | $ | 4,276 | $ | 12,735,377 |
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 25 | $ | — | $ | — | $ | 25 | ||||||||
Unrealized appreciation on open forward currency contracts | — | 10,220 | — | 10,220 | ||||||||||||
Unrealized appreciation on interest rate swaps | — | 18,448 | — | 18,448 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (4,181 | ) | — | — | (4,181 | ) | ||||||||||
Unrealized depreciation on open forward currency contracts | — | (2,678 | ) | — | (2,678 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | — | (10,736 | ) | — | (10,736 | ) | ||||||||||
Unrealized depreciation on credit default swaps | — | (184 | ) | — | (184 | ) | ||||||||||
Total | $ | (4,156 | ) | $ | 15,070 | $ | — | $ | 10,914 |
* | Futures contracts, forward currency contracts, interest rate swaps and credit default swaps are not included in the investment portfolio. |
Global Bond Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
Euros | $ | — | $ | 355,443 | $ | — | $ | 355,443 | ||||||||
Japanese yen | — | 200,098 | — | 200,098 | ||||||||||||
Polish zloty | — | 97,169 | — | 97,169 | ||||||||||||
Mexican pesos | — | 96,500 | — | 96,500 | ||||||||||||
Indian rupees | — | 62,664 | — | 62,664 | ||||||||||||
Malaysian ringgits | — | 55,646 | — | 55,646 | ||||||||||||
Norwegian kroner | — | 39,988 | — | 39,988 | ||||||||||||
Australian dollars | — | 34,394 | — | 34,394 | ||||||||||||
British pounds | — | 32,755 | — | 32,755 | ||||||||||||
Thai baht | — | 28,589 | — | 28,589 | ||||||||||||
Danish kroner | — | 25,806 | — | 25,806 | ||||||||||||
Chilean pesos | — | 21,977 | — | 21,977 | ||||||||||||
Israeli shekels | — | 20,893 | — | 20,893 | ||||||||||||
Canadian dollars | — | 18,967 | — | 18,967 | ||||||||||||
U.S. dollars | — | 1,062,266 | 604 | 1,062,870 | ||||||||||||
Other | — | 59,260 | — | 59,260 | ||||||||||||
Convertible stocks | — | 237 | 973 | 1,210 | ||||||||||||
Common stocks | 32 | 207 | 457 | 696 | ||||||||||||
Short-term securities | — | 277,548 | — | 277,548 | ||||||||||||
Total | $ | 32 | $ | 2,490,407 | $ | 2,034 | $ | 2,492,473 |
American Funds Insurance Series | 143 |
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 195 | $ | — | $ | — | $ | 195 | ||||||||
Unrealized appreciation on open forward currency contracts | — | 4,906 | — | 4,906 | ||||||||||||
Unrealized appreciation on interest rate swaps | — | 1,034 | — | 1,034 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (554 | ) | — | — | (554 | ) | ||||||||||
Unrealized depreciation on open forward currency contracts | — | (4,246 | ) | — | (4,246 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | — | (2,513 | ) | — | (2,513 | ) | ||||||||||
Total | $ | (359 | ) | $ | (819 | ) | $ | — | $ | (1,178 | ) |
* | Futures contracts, forward currency contracts and interest rate swaps 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 | $ | — | $ | 1,344,219 | $ | 12,774 | $ | 1,356,993 | ||||||||
Other | — | 13,338 | — | 13,338 | ||||||||||||
Convertible bonds | — | 5,860 | — | 5,860 | ||||||||||||
Convertible stocks | 2,727 | 4,900 | 5,553 | 13,180 | ||||||||||||
Common stocks | 2,744 | 2,698 | 5,414 | 10,856 | ||||||||||||
Rights & warrants | — | 36 | — | 36 | ||||||||||||
Short-term securities | — | 24,394 | — | 24,394 | ||||||||||||
Total | $ | 5,471 | $ | 1,395,445 | $ | 23,741 | $ | 1,424,657 |
Other investments1 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on interest rate swaps | $ | — | $ | 512 | $ | — | $ | 512 | ||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on interest rate swaps | — | (90 | ) | — | (90 | ) | ||||||||||
Unrealized depreciation on credit default swaps | — | (419 | ) | — | (419 | ) | ||||||||||
Total | $ | — | $ | 3 | $ | — | $ | 3 |
1 | Interest rate swaps and credit default swaps are not included in the investment portfolio. |
The following table reconciles the valuation of the fund’s Level 3 investment securities and related transactions for the year ended December 31, 2017 (dollars in thousands):
Beginning | Transfers | Net | Transfers | Ending | ||||||||||||||||||||||||||||
value at | into | realized | Unrealized | out of | value at | |||||||||||||||||||||||||||
1/1/2017 | Level 32 | Purchases | Sales | gain3 | appreciation3 | Level 32 | 12/31/2017 | |||||||||||||||||||||||||
Investment securities | $ | 22,631 | $ | 47 | $ | 859 | $ | (340) | $ | 5 | $ | 585 | $ | (46 | ) | $ | 23,741 | |||||||||||||||
Net unrealized appreciation during the period on Level 3 investment securities held at December 31, 2017 | $ | 585 |
2 | Transfers into or out of Level 3 are based on the beginning market value of the quarter in which they occurred. |
3 | Net realized gain and unrealized appreciation are included in the related amounts on investments in the statement of operations. |
144 | American Funds Insurance Series |
Unobservable inputs — Valuation of the fund’s Level 3 securities is based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The following table provides additional information used by the fund’s investment adviser to fair value the fund’s Level 3 securities (dollars in thousands):
Impact to | |||||||||||||
valuation from | |||||||||||||
Value at | Valuation | Unobservable | an increase in | ||||||||||
12/31/2017 | techniques | inputs | Range | input* | |||||||||
Bonds, notes & other debt instruments | $ | 12,774 | Yield analysis | Yield risk premium | 75 - 700 bps | Decrease | |||||||
Convertible stocks | 5,553 | Market comparable companies | EBITDA multiple | 13.3x | Increase | ||||||||
Common stocks | Market comparable companies | EBITDA multiple | 5.3x - 10.6x | Increase | |||||||||
DLOM | 24% - 35% | Decrease | |||||||||||
5,414 | Inputs to market comparables and transaction price | Weight ascribed to market comparables | 50% | N/A | |||||||||
Weight ascribed to transaction price | 50% | N/A | |||||||||||
$ | 23,741 |
* | 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
EBITDA = Earnings before income taxes, depreciation and amortization
DLOM = Discount for lack of marketability
Mortgage Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
Mortgage-backed obligations | $ | — | $ | 215,884 | $ | — | $ | 215,884 | ||||||||
U.S. Treasury bonds & notes | — | 54,720 | — | 54,720 | ||||||||||||
Federal agency bonds & notes | — | 41,556 | — | 41,556 | ||||||||||||
Asset-backed obligations | — | 11,285 | — | 11,285 | ||||||||||||
Corporate bonds & notes | — | — | 187 | 187 | ||||||||||||
Short-term securities | — | 92,757 | — | 92,757 | ||||||||||||
Total | $ | — | $ | 416,202 | $ | 187 | $ | 416,389 |
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 21 | $ | — | $ | — | $ | 21 | ||||||||
Unrealized appreciation on interest rate swaps | — | 1,539 | — | 1,539 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (653 | ) | — | — | (653 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | — | (2,325 | ) | — | (2,325 | ) | ||||||||||
Total | $ | (632 | ) | $ | (786 | ) | $ | — | $ | (1,418 | ) |
* | Futures contracts and interest rate swaps are not included in the investment portfolio. |
Ultra-Short Bond Fund
At December 31, 2017, all of the fund’s investment securities were classified as Level 2.
American Funds Insurance Series | 145 |
U.S. Government/AAA-Rated Securities Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
U.S. Treasury bonds & notes | $ | — | $ | 1,568,352 | $ | — | $ | 1,568,352 | ||||||||
Mortgage-backed obligations | — | 786,503 | — | 786,503 | ||||||||||||
Federal agency bonds & notes | — | 525,580 | — | 525,580 | ||||||||||||
Short-term securities | — | 458,280 | — | 458,280 | ||||||||||||
Total | $ | — | $ | 3,338,715 | $ | — | $ | 3,338,715 |
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 743 | $ | — | $ | — | $ | 743 | ||||||||
Unrealized appreciation on interest rate swaps | — | 18,217 | — | 18,217 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (8,188 | ) | — | — | (8,188 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | — | (26,645 | ) | — | (26,645 | ) | ||||||||||
Total | $ | (7,445 | ) | $ | (8,428 | ) | $ | — | $ | (15,873 | ) |
* | Futures contracts and interest rate swaps are not included in the investment portfolio. |
Managed Risk Growth Fund
At December 31, 2017, all of the fund’s investments were classified as Level 1.
Managed Risk International Fund
At December 31, 2017, all of the fund’s investments were classified as Level 1.
Managed Risk Blue Chip Income and Growth Fund
At December 31, 2017, all of the fund’s investments were classified as Level 1.
Managed Risk Growth-Income Fund
At December 31, 2017, all of the fund’s investments were classified as Level 1.
Managed Risk Asset Allocation Fund
At December 31, 2017, all of the fund’s investments were classified as Level 1.
4. Risk factors
Investing in the funds may involve certain risks including, but not limited to, those described below.
Market conditions — The prices of, and the income generated by, the common stocks, bonds and other securities held by a fund may decline — sometimes rapidly or unpredictably — due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental or governmental agency responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.
Issuer risks — The prices of, and the income generated by, securities held by a fund may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.
Investing in growth-oriented stocks — Growth-oriented common stocks and other equity-type securities (such as preferred stocks, convertible preferred stocks and convertible bonds) may involve larger price swings and greater potential for loss than other types of investments. These risks may be even greater in the case of smaller capitalization stocks.
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 for dividend payments at, the companies in which the fund invests.
146 | American Funds Insurance Series |
Investing in small companies — Investing in smaller companies may pose additional risks. For example, it is often more difficult to value or dispose of small company stocks and more difficult to obtain information about smaller companies than about larger companies. Furthermore, smaller companies often have limited product lines, operating histories, markets and/or financial resources, may be dependent on one or a few key persons for management, and can be more susceptible to losses. Moreover, the prices of their stocks may be more volatile than stocks of larger, more established companies.
Investing outside the U.S. — Securities of issuers domiciled outside the U.S., or with significant operations or revenues outside the U.S., may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as the imposition of price controls or punitive taxes, that could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the U.S. Investments outside the U.S. may also be subject to different accounting practices and different regulatory, legal and reporting standards and practices, and may be more difficult to value, than those in the U.S. In addition, the value of investments outside the U.S. may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by the fund. The risks of investing outside the U.S. may be heightened in connection with investments in emerging markets.
Investing in developing countries — Investing in countries with developing economies and/or markets may involve risks in addition to and greater than those generally associated with investing in developed countries. For instance, 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. Less certainty with respect to security valuations may lead to additional challenges and risks in calculating the fund’s net asset value. Additionally, there may be increased settlement risks for transactions in local securities.
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. Less certainty with respect to security valuations may lead to additional challenges and risks in calculating a fund’s net asset value. Additionally, there may be increased settlement risks for transactions in local securities.
Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by a fund may be affected by changing interest rates and by changes in the effective maturities and credit ratings of these securities.
Rising interest rates will generally cause the prices of bonds and other debt securities to fall. 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. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.
Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer 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.
American Funds Insurance Series | 147 |
Investing in lower rated debt instruments — Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to investments in junk bonds.
Investing in derivatives — The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional cash securities, such as stocks and bonds. Changes in the value of a derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a derivative instrument may expose a fund to losses in excess of its initial investment. Derivatives may be difficult for a fund to buy or sell at an opportune time or price and may be difficult to terminate or otherwise offset. A fund’s use of derivatives may result in losses to the fund, and investing in derivatives may reduce a fund’s returns and increase a fund’s price volatility. A fund’s counterparty to a derivative transaction (including, if applicable, the fund’s clearing broker, the derivatives exchange or the clearinghouse) may be unable or unwilling to honor its financial obligations in respect of the transaction.
Currency — The prices of, and the income generated by, most debt securities held by a fund may also be affected by changes in relative currency values. If the U.S. dollar appreciates against foreign currencies, the value in U.S. dollars of a fund’s securities denominated in such currencies would generally fall and vice versa. U.S. dollar-denominated securities of foreign issuers may also be affected by changes in relative currency values.
Investing in mortgage-related and other asset-backed securities — Mortgage-related securities, such as mortgage-backed securities, and other asset-backed securities, include debt obligations that represent interests in pools of mortgages or other income-bearing assets, such as consumer loans or receivables. Such securities often involve risks that are different from or more acute than the risks associated with investing in other types of debt securities. Mortgage-backed and other asset-backed securities are subject to changes in the payment patterns of borrowers of the underlying debt. When interest rates fall, borrowers are more likely to refinance or prepay their debt before its stated maturity. This may result in a fund having to reinvest the proceeds in lower yielding securities, effectively reducing a fund’s income. Conversely, if interest rates rise and borrowers repay their debt more slowly than expected, the time in which the mortgage-backed and other asset-backed securities are paid off could be extended, reducing a fund’s cash available for reinvestment in higher yielding securities.
Investing in future delivery contracts — A fund may enter into contracts, such as to-be-announced contracts and mortgage dollar rolls, that involve a fund selling mortgage-related securities and simultaneously contracting to repurchase similar securities for delivery at a future date at a predetermined price. This can increase a fund’s market exposure, and the market price of the securities that the fund contracts to repurchase could drop below their purchase price. While a fund can preserve and generate capital through the use of such contracts by, for example, realizing the difference between the sale price and the future purchase price, the income generated by the fund may be reduced by engaging in such transactions. In addition, these transactions may increase the turnover rate of a fund.
Investing in inflation linked bonds — The values of inflation linked bonds generally fluctuate in response to changes in real interest rates — i.e., rates of interest after factoring in inflation. A rise in real interest rates may cause the prices of inflation linked securities to fall, while a decline in real interest rates may cause the prices to increase. Inflation linked bonds may experience greater losses than other debt securities with similar durations when real interest rates rise faster than nominal interest rates. There can be no assurance that the value of an inflation linked security will be directly correlated to changes in interest rates; for example, if interest rates rise for reasons other than inflation, the increase may not be reflected in the security’s inflation measure.
Investing in inflation linked bonds may also reduce a fund’s distributable income during periods of extreme deflation. If prices for goods and services decline throughout the economy, the principal and income on inflation linked securities may decline and result in losses to a fund.
Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates. Securities issued by government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.
Investing in repurchase agreements — Upon entering into a repurchase agreement, a fund purchases a security from a bank or broker-dealer, which simultaneously commits to repurchase the security within a specified time at the fund’s cost with interest. The security purchased by the fund constitutes collateral for the seller’s repurchase obligation. If the party agreeing to repurchase should default, the fund may seek to sell the security it holds as collateral. The fund may incur a loss if the value of the collateral securing the
148 | American Funds Insurance Series |
repurchase obligation falls below the repurchase price. The fund may also incur disposition costs and encounter procedural delays in connection with liquidating the collateral.
Interest rate risk — The values and liquidity of the securities held by a fund may be affected by changing interest rates. For example, the values of these securities may decline when interest rates rise and increase when interest rates fall. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities. A fund may invest in variable and floating rate securities. Although the values of such securities are generally less sensitive to interest rate changes than those of other debt securities, the value of variable and floating rate securities may decline if their interest rates do not rise as quickly, or as much, as general interest rates. Conversely, floating rate securities will not generally increase in value if interest rates decline. During periods of extremely low short-term interest rates, a fund may not be able to maintain a positive yield and, given the current historically low interest rate environment, risks associated with rising rates are currently heightened.
Credit and liquidity support — Changes in the credit quality of banks and financial institutions providing credit and liquidity support features with respect to securities held by a fund could cause the values of these securities to decline.
Asset allocation — A fund’s percentage allocation to equity securities, debt securities and money market instruments could cause the fund to underperform relative to relevant benchmarks and other funds with similar investment objectives.
Nondiversification risk — As nondiversified funds, certain funds have the ability to invest a larger percentage of their assets in the securities of a smaller number of issuers than diversified funds. Although the funds do not intend to limit their investments to the securities of a small number of issuers, if they were to do so, poor performance by a single large holding could adversely impact the funds’ investment results more than if the funds were invested in a larger number of issuers.
Liquidity risk — Certain fund holdings may be deemed to be less liquid or illiquid because they cannot be readily sold without significantly impacting the value of the holdings. Liquidity risk may result from the lack of an active market for a holding, legal or contractual restrictions on resale, or the reduced number and capacity of market participants to make a market in such holding. Market prices for less liquid or illiquid holdings may be volatile, and reduced liquidity may have an adverse impact on the market price of such holdings. Additionally, the sale of less liquid or illiquid holdings may involve substantial delays (including delays in settlement) and additional costs and the fund may be unable to sell such holdings when necessary to meet its liquidity needs.
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 managed risk strategy.
Management — The managed risk funds are subject to the risk that the managed risk strategy or the methods employed by the subadviser in implementing the managed risk strategy may not produce the desired results. This could cause the managed risk funds to lose value or their investment results to lag relevant benchmarks or other funds with similar objectives.
Underlying fund risks — Because the managed risk funds’ investments consist of investments in underlying funds, the managed risk funds’ risks are directly related to the risks of the respective underlying fund in which each managed fund invests. For this reason, it is important to understand the risks associated with investing both in the managed risk fund and in each of the underlying funds.
Investing in futures contracts — In addition to the risks generally associated with investing in derivative instruments, futures contracts are subject to the creditworthiness of the clearing organizations, exchanges and futures commission merchants with which a fund transacts. Additionally, although futures require only a small initial investment in the form of a deposit of initial margin, the amount of a potential loss on a futures contract could greatly exceed the initial amount invested. While futures contracts are generally liquid instruments, under certain market conditions, futures may be deemed to be illiquid. For example, a fund may be temporarily prohibited from closing out its position in a futures contract if intraday price change limits or limits on trading volume imposed by the applicable futures exchange are triggered. If a fund is unable to close out a position on a futures contract, the fund would remain subject to the risk of adverse price movements until the fund is able to close out the futures position. The ability of a fund to successfully utilize futures contracts may depend in part upon the ability of the fund’s investment adviser or subadviser to accurately forecast interest rates and other economic factors and to assess and predict the impact of such economic factors on the futures in which the fund invests. If the
American Funds Insurance Series | 149 |
investment adviser or subadviser incorrectly forecasts economic developments or incorrectly predicts the impact of such developments on the futures in which it invests, a fund could be exposed to the risk of loss.
Hedging — There may be imperfect or even negative correlation between the prices of the futures contracts and the prices of the underlying securities. For example, futures contracts may not provide an effective hedge because changes in futures contract prices may not track those of the underlying securities or indexes they are intended to hedge. In addition, there are significant differences between the securities and futures markets that could result in an imperfect correlation between the markets, causing a given hedge not to achieve its objectives. The degree of imperfection of correlation depends on circumstances such as variations in speculative market demand for futures, including technical influences in futures trading, and differences between the financial instruments being hedged and the instruments underlying the standard contracts available for trading. A decision as to whether, when and how to hedge involves the exercise of skill and judgment, and even a well-conceived hedge may be unsuccessful to some degree because of market behavior or unexpected interest rate trends. In addition, the fund’s investment in exchange-traded futures and their resulting costs could limit the fund’s gains in rising markets relative to those of the underlying funds, or to those of unhedged funds in general.
Short positions — Losses from short positions in futures contracts occur when the underlying index increases in value. As the underlying index increases in value, the holder of the short position in the corresponding futures contract is required to pay the difference in value of the futures contract resulting from the increase in the index on a daily basis. Losses from a short position in an index futures contract could potentially be very large if the value of the underlying index rises dramatically in a short period of time.
5. Certain investment techniques
Index-linked bonds — Some of the funds have invested in index-linked bonds, which are fixed-income securities whose principal value is periodically adjusted to a government price index. Over the life of an index-linked bond, interest is paid on the adjusted principal value. Increases or decreases in the principal value of index-linked bonds are recorded as interest income in the fund’s statement of operations.
Mortgage dollar rolls — Some of the funds have entered into mortgage dollar roll transactions in which the fund sells a mortgage-backed security to a counterparty and simultaneously enters into an agreement with the same counterparty to buy back a similar security on a specific future date at a predetermined price. Mortgage dollar rolls are accounted for as purchase and sale transactions, which may increase the funds’ portfolio turnover rates.
Loan transactions — Some of the funds have entered into loan transactions in which the fund acquires a loan either through an agent, by assignment from another holder, or as a participation interest in another holder’s portion of a loan. The loan is often administered by a financial institution that acts as agent for the holders of the loan, and the fund may be required to receive approval from the agent and/or borrower prior to the sale of the investment. The loan’s interest rate and maturity date may change based on the terms of the loan, including potential early payments of principal.
Short-term securities — The managed risk funds hold shares of the Government Cash Management Fund, a cash management vehicle offered by the Bank of New York Mellon (“BNY Mellon”), the funds’ custodian bank. The Government Cash Management Fund is managed by the Dreyfus Corporation.
Futures contracts — Some of the funds have entered into futures contracts, which provide for the future sale by one party and purchase by another party of a specified amount of a specific financial instrument for a specified price, date, time and place designated at the time the contract is made. Futures contracts are used to strategically manage portfolio volatility and downside equity risk.
Upon entering into futures contracts, and to maintain the fund’s open positions in futures contracts, the fund is required to deposit with a futures broker, or FCM, in a segregated account in the name of the FCM an amount of cash, U.S. government securities, suitable money market instruments, or other liquid securities, known as “initial margin.” The margin required for a particular futures contract is set by the exchange on which the contract is traded to serve as collateral, and may be significantly modified from time to time by the exchange during the term of the contract. 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 each fund’s statement of assets and liabilities. In addition, each fund segregates liquid assets equivalent to the fund’s outstanding obligations under the contract in excess of the initial margin and variation margin, if any. Futures contracts may involve a risk of loss in excess of the variation margin shown on each fund’s statement of assets and liabilities.
150 | American Funds Insurance Series |
Each fund records realized gains or losses at the time the futures contract is closed or expires. Net realized gains or losses and net unrealized appreciation or depreciation from futures contracts are recorded in each fund’s statement of operations.
Forward currency contracts — Some of the funds have entered into forward currency contracts, which represent agreements to exchange currencies on specific future dates at predetermined rates. The series’ investment adviser uses forward currency contracts to manage the fund’s exposure to changes in exchange rates. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from possible movements in exchange rates.
On a daily basis, the series’ investment adviser values forward currency contracts based on the applicable exchange rates and records unrealized appreciation or depreciation for open forward currency contracts in each fund’s statement of assets and liabilities. Realized gains or losses are recorded at the time the forward contract is closed or offset by another contract with the same broker for the same settlement date and currency. Closed forward currency contracts that have not reached their settlement date are included in the respective receivables or payables for closed forward currency contracts in each fund’s statement of assets and liabilities. Net realized gains or losses from closed forward currency contracts and net unrealized appreciation or depreciation from open forward currency contracts are recorded in each fund’s statement of operations.
Interest rate swaps — Some of the funds have entered into interest rate swaps, which are agreements to exchange one stream of future interest payments for another based on a specified notional amount. Typically, interest rate swaps exchange a fixed interest rate for a payment that floats relative to a benchmark or vice versa. The series’ investment adviser uses interest rate swaps to manage the interest rate sensitivity of the fund by increasing or decreasing the duration of the fund or a portion of the fund’s portfolio. Risks may arise as a result of the series’ investment adviser incorrectly anticipating changes in interest rates, increased volatility, reduced liquidity and the potential inability of counterparties to meet the terms of their agreements.
Upon entering into an interest rate swap contract, the fund is required to deposit cash, U.S. government securities or other liquid securities, which is known as “initial margin.” Generally, the initial margin required for a particular interest rate swap is set and held as collateral by the clearinghouse on which the contract is cleared. The amount of initial margin required may be significantly modified from time to time by the clearinghouse during the term of the contract.
On a daily basis, the series’ investment adviser records daily interest accruals related to the exchange of future payments as a receivable and payable in each fund’s statement of assets and liabilities. Each fund also pays or receives a “variation margin” based on the increase or decrease in the value of the interest rate swaps, including accrued interest, and records variation margin on interest rate swaps in each fund’s statement of assets and liabilities. Each fund records realized gains and losses on both the net accrued interest and any gain or loss recognized at the time the interest rate swap is closed or expires. Net realized gains or losses, as well as any net unrealized appreciation or depreciation, from interest rate swaps are recorded in each fund’s statement of operations.
Credit default swap indices — Some of the funds have entered into centrally cleared credit default swap agreements on credit indices (“CDSI”) that involve one party (the protection buyer) making a stream of payments to another party (the protection seller) in exchange for the right to receive a specified return upon the occurrence of a credit event, such as a default or restructuring, with respect to any of the underlying issuers (reference obligations) in the referenced index. The series’ investment adviser uses credit default swaps to assume exposure to a diversified portfolio of credits or to hedge against existing credit risks.
CDSI are portfolios of credit instruments or exposures designed to be representative of some part of the credit market, such as the high-yield or investment-grade credit market. CDSI are generally traded using standardized terms, including a fixed spread and standard maturity dates, and reference all the names in the index. If there is a credit event, it is settled based on that name’s weight in the index. The composition of the underlying issuers or obligations within a particular index may change periodically, usually every six months. A specified credit event may affect all or individual underlying reference obligations included in the index, and will be settled based upon the relative weighting of the affected obligation(s) within the index. The value of each CDSI can be used as a measure of the current payment/performance risk of the CDSI and represents the likelihood of an expected liability or profit should the notional amount of the CDSI be closed or sold as of the period end. An increasing value, as compared to the notional amount of the CDSI, represents a deterioration of the referenced indices’ credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement. When a fund provides sell protection, its maximum exposure is the notional amount of the credit default swap agreement.
Upon entering into a centrally cleared CDSI contract, the fund is required to deposit with a derivatives clearing member (“DCM”) in a segregated account in the name of the DCM an amount of cash, U.S. government securities or other liquid securities, which is known as initial margin. Generally, the initial margin required for a particular credit default swap is set and held as collateral by the clearinghouse on which the contract is cleared. The amount of initial margin required may be significantly modified from time to time by the clearinghouse during the term of the contract. Securities deposited as initial margin are designated on the investment portfolio.
American Funds Insurance Series | 151 |
On a daily basis, interest accruals related to the exchange of future payments are recorded as a receivable and payable in each fund’s statement of assets and liabilities. Each fund also pays or receives a variation margin based on the increase or decrease in the value of the centrally cleared swaps, and records variation margin in each fund’s statement of assets and liabilities. Each fund records realized gains and losses on both the net accrued interest and any gain or loss recognized at the time the swap is closed or expires. Net realized gains or losses, as well as any net unrealized appreciation or depreciation, from credit default swaps are recorded in each fund’s statement of operations.
The following table presents the average month-end notional amounts of futures contracts, forward currency contracts, interest rate swaps and credit default swaps while held for each fund (dollars in thousands):
Interest | Credit | |||||||
rate | default | |||||||
Futures | Forwards | swaps | swaps | |||||
Global Growth Fund | Not applicable | $5,216 | Not applicable | Not applicable | ||||
Global Small Capitalization Fund | Not applicable | 92,699 | Not applicable | Not applicable | ||||
International Fund | Not applicable | 75,210 | Not applicable | Not applicable | ||||
New World Fund | Not applicable | 16,057 | Not applicable | Not applicable | ||||
Global Growth and Income Fund | Not applicable | 4,243 | * | Not applicable | Not applicable | |||
International Growth and Income Fund | Not applicable | 14,332 | * | Not applicable | Not applicable | |||
Capital Income Builder Fund | Not applicable | 382 | * | Not applicable | Not applicable | |||
Asset Allocation Fund | $258,722 | Not applicable | $2,104,283 | Not applicable | ||||
Global Balanced Fund | Not applicable | 20,573 | Not applicable | Not applicable | ||||
Bond Fund | 1,981,823 | 500,381 | 2,184,779 | $65,000 | ||||
Global Bond Fund | 139,311 | 655,462 | 508,390 | Not applicable | ||||
High-Income Bond Fund | Not applicable | Not applicable | 30,592 | 74,354 | ||||
Mortgage Fund | 252,976 | Not applicable | 1,144,902 | Not applicable | ||||
U.S. Government/AAA-Rated Securities Fund | 2,770,411 | Not applicable | 12,472,783 | Not applicable | ||||
Managed Risk Growth Fund | 13,000 | Not applicable | Not applicable | Not applicable | ||||
Managed Risk International Fund | 6,600 | Not applicable | Not applicable | Not applicable | ||||
Managed Risk Blue Chip Income and Growth Fund | 16,700 | Not applicable | Not applicable | Not applicable | ||||
Managed Risk Growth-Income Fund | 9,500 | Not applicable | Not applicable | Not applicable | ||||
Managed Risk Asset Allocation Fund | 203,300 | Not applicable | Not applicable | Not applicable |
* | No contracts were held at the end of the reporting period; amount represents the average month-end notional amount of contracts while they were held. |
152 | American Funds Insurance Series |
The following tables present the financial statement impacts resulting from the funds’ use of futures contracts, forward currency contracts, interest rate swaps and/or credit default swaps as of, or for the year ended, December 31, 2017 (dollars in thousands):
Global Growth Fund | Global Small Capitalization Fund | International Fund | ||||||||||||||
Assets | Risk type | Location on statements of assets and liabilities | ||||||||||||||
Futures contracts | Interest | Net unrealized appreciation* | $ | — | $ | — | $ | — | ||||||||
Futures contracts | Equity | Net unrealized appreciation* | — | — | — | |||||||||||
Futures contracts | Currency | Net unrealized appreciation* | — | — | — | |||||||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | 15 | 89 | — | |||||||||||
Forward currency | Currency | Receivables for closed forward currency contracts | — | 44 | — | |||||||||||
Swap contracts | Interest | Net unrealized appreciation* | — | — | — | |||||||||||
Swap contracts | Credit | Net unrealized appreciation* | — | — | — | |||||||||||
$ | 15 | $ | 133 | $ | — | |||||||||||
Liabilities | Risk type | Location on statements of assets and liabilities | ||||||||||||||
Futures contracts | Interest | Net unrealized depreciation* | $ | — | �� | $ | — | $ | — | |||||||
Futures contracts | Equity | Net unrealized depreciation* | — | — | — | |||||||||||
Futures contracts | Currency | Net unrealized depreciation* | — | — | — | |||||||||||
Forward currency | Currency | Unrealized depreciation on open forward currency contracts | — | 1,192 | 355 | |||||||||||
Forward currency | Currency | Payables for closed forward currency contracts | — | — | — | |||||||||||
Swap contracts | Interest | Net unrealized depreciation* | — | — | — | |||||||||||
Swap contracts | Credit | Net unrealized depreciation* | — | — | — | |||||||||||
$ | — | $ | 1,192 | $ | 355 | |||||||||||
Net realized gain (loss) | Risk type | Location on statements of operations | ||||||||||||||
Futures contracts | Interest | Net realized gain on futures contracts | $ | — | $ | — | $ | — | ||||||||
Futures contracts | Equity | Net realized gain on futures contracts | — | — | — | |||||||||||
Futures contracts | Currency | Net realized gain on futures contracts | — | — | — | |||||||||||
Forward currency | Currency | Net realized gain (loss) on forward currency contracts | 241 | (4,263 | ) | (9,021 | ) | |||||||||
Swap contracts | Interest | Net realized gain on swap contracts | — | — | — | |||||||||||
Swap contracts | Credit | Net realized gain on swap contracts | — | — | — | |||||||||||
$ | 241 | $ | (4,263 | ) | $ | (9,021 | ) | |||||||||
Net unrealized (depreciation) appreciation | Risk type | Location on statements of operations | ||||||||||||||
Futures contracts | Interest | Net unrealized appreciation on futures contracts | $ | — | $ | — | $ | — | ||||||||
Futures contracts | Equity | Net unrealized appreciation on futures contracts | — | — | — | |||||||||||
Futures contracts | Currency | Net unrealized appreciation on futures contracts | — | — | — | |||||||||||
Forward currency | Currency | Net unrealized (depreciation) appreciation on forward currency contracts | (344 | ) | (2,489 | ) | 1,789 | |||||||||
Swap contracts | Interest | Net unrealized appreciation on swap contracts | — | — | — | |||||||||||
Swap contracts | Credit | Net unrealized appreciation on swap contracts | — | — | — | |||||||||||
$ | (344 | ) | $ | (2,489 | ) | $ | 1,789 |
See end of tables for footnotes.
American Funds Insurance Series | 153 |
New World Fund | Global Growth and Income Fund | International Growth and Income Fund | ||||||||||||||
Assets | Risk type | Location on statements of assets and liabilities | ||||||||||||||
Futures contracts | Interest | Net unrealized appreciation* | $ | — | $ | — | $ | — | ||||||||
Futures contracts | Equity | Net unrealized appreciation* | — | — | — | |||||||||||
Futures contracts | Currency | Net unrealized appreciation* | — | — | — | |||||||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | 69 | — | — | |||||||||||
Forward currency | Currency | Receivables for closed forward currency contracts | — | — | — | |||||||||||
Swap contracts | Interest | Net unrealized appreciation* | — | — | — | |||||||||||
Swap contracts | Credit | Net unrealized appreciation* | — | — | — | |||||||||||
$ | 69 | $ | — | $ | — | |||||||||||
Liabilities | Risk type | Location on statements of assets and liabilities | ||||||||||||||
Futures contracts | Interest | Net unrealized depreciation* | $ | — | $ | — | $ | — | ||||||||
Futures contracts | Equity | Net unrealized depreciation* | — | — | — | |||||||||||
Futures contracts | Currency | Net unrealized depreciation* | — | — | — | |||||||||||
Forward currency | Currency | Unrealized depreciation on open forward currency contracts | 392 | — | — | |||||||||||
Forward currency | Currency | Payables for closed forward currency contracts | — | — | — | |||||||||||
Swap contracts | Interest | Net unrealized depreciation* | — | — | — | |||||||||||
Swap contracts | Credit | Net unrealized depreciation* | — | — | — | |||||||||||
$ | 392 | $ | — | $ | — | |||||||||||
Net realized loss | Risk type | Location on statements of operations | ||||||||||||||
Futures contracts | Interest | Net realized gain on futures contracts | $ | — | $ | — | $ | — | ||||||||
Futures contracts | Equity | Net realized gain on futures contracts | — | — | — | |||||||||||
Futures contracts | Currency | Net realized gain on futures contracts | — | — | — | |||||||||||
Forward currency | Currency | Net realized loss on forward currency contracts | (881 | ) | (157 | ) | (143 | ) | ||||||||
Swap contracts | Interest | Net realized gain on swap contracts | — | — | — | |||||||||||
Swap contracts | Credit | Net realized gain on swap contracts | — | — | — | |||||||||||
$ | (881 | ) | $ | (157 | ) | $ | (143 | ) | ||||||||
Net unrealized (depreciation) appreciation | Risk type | Location on statements of operations | ||||||||||||||
Futures contracts | Interest | Net unrealized appreciation on futures contracts | $ | — | $ | — | $ | — | ||||||||
Futures contracts | Equity | Net unrealized appreciation on futures contracts | — | — | — | |||||||||||
Futures contracts | Currency | Net unrealized appreciation on futures contracts | — | — | — | |||||||||||
Forward currency | Currency | Net unrealized (depreciation) appreciation on forward currency contracts | (333 | ) | (147 | ) | 105 | |||||||||
Swap contracts | Interest | Net unrealized appreciation on swap contracts | — | — | — | |||||||||||
Swap contracts | Credit | Net unrealized appreciation on swap contracts | — | — | — | |||||||||||
$ | (333 | ) | $ | (147 | ) | $ | 105 |
154 | American Funds Insurance Series |
Capital Income Builder | Asset Allocation Fund | Global Balanced Fund | ||||||||||||||
Assets | Risk type | Location on statements of assets and liabilities | ||||||||||||||
Futures contracts | Interest | Net unrealized appreciation* | $ | — | $ | 73 | $ | — | ||||||||
Futures contracts | Equity | Net unrealized appreciation* | — | — | — | |||||||||||
Futures contracts | Currency | Net unrealized appreciation* | — | — | — | |||||||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | — | — | 144 | |||||||||||
Forward currency | Currency | Receivables for closed forward currency contracts | — | — | 11 | |||||||||||
Swap contracts | Interest | Net unrealized appreciation* | — | 658 | — | |||||||||||
Swap contracts | Credit | Net unrealized appreciation* | — | — | — | |||||||||||
$ | — | $ | 731 | $ | 155 | |||||||||||
Liabilities | Risk type | Location on statements of assets and liabilities | ||||||||||||||
Futures contracts | Interest | Net unrealized depreciation* | $ | — | $ | 826 | $ | — | ||||||||
Futures contracts | Equity | Net unrealized depreciation* | — | — | — | |||||||||||
Futures contracts | Currency | Net unrealized depreciation* | — | — | — | |||||||||||
Forward currency | Currency | Unrealized depreciation on open forward currency contracts | — | — | 269 | |||||||||||
Forward currency | Currency | Payables for closed forward currency contracts | — | — | 2 | |||||||||||
Swap contracts | Interest | Net unrealized depreciation* | — | 6,906 | — | |||||||||||
Swap contracts | Credit | Net unrealized depreciation* | — | — | — | |||||||||||
$ | — | $ | 7,732 | $ | 271 | |||||||||||
Net realized gain (loss) | Risk type | Location on statements of operations | ||||||||||||||
Futures contracts | Interest | Net realized gain on futures contracts | $ | — | $ | 376 | $ | — | ||||||||
Futures contracts | Equity | Net realized gain on futures contracts | — | — | — | |||||||||||
Futures contracts | Currency | Net realized gain on futures contracts | — | — | — | |||||||||||
Forward currency | Currency | Net realized loss on forward currency contracts | (16 | ) | — | (136 | ) | |||||||||
Swap contracts | Interest | Net realized gain on swap contracts | — | 3,089 | — | |||||||||||
Swap contracts | Credit | Net realized gain on swap contracts | — | — | — | |||||||||||
$ | (16 | ) | $ | 3,465 | $ | (136 | ) | |||||||||
Net unrealized (depreciation) appreciation | Risk type | Location on statements of operations | ||||||||||||||
Futures contracts | Interest | Net unrealized depreciation on futures contracts | $ | — | $ | (995 | ) | $ | — | |||||||
Futures contracts | Equity | Net unrealized appreciation on futures contracts | — | — | — | |||||||||||
Futures contracts | Currency | Net unrealized appreciation on futures contracts | — | — | — | |||||||||||
Forward currency | Currency | Net unrealized appreciation (depreciation) on forward currency contracts | 5 | — | (227 | ) | ||||||||||
Swap contracts | Interest | Net unrealized depreciation on swap contracts | — | (2,619 | ) | — | ||||||||||
Swap contracts | Credit | Net unrealized appreciation on swap contracts | — | — | — | |||||||||||
$ | 5 | $ | (3,614 | ) | $ | (227 | ) |
See end of tables for footnotes.
American Funds Insurance Series | 155 |
Bond Fund | Global Bond Fund | High- Income Bond Fund | ||||||||||||||
Assets | Risk type | Location on statements of assets and liabilities | ||||||||||||||
Futures contracts | Interest | Net unrealized appreciation* | $ | 25 | $ | 195 | $ | — | ||||||||
Futures contracts | Equity | Net unrealized appreciation* | — | — | — | |||||||||||
Futures contracts | Currency | Net unrealized appreciation* | — | — | — | |||||||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | 10,220 | 4,906 | — | |||||||||||
Forward currency | Currency | Receivables for closed forward currency contracts | — | 253 | — | |||||||||||
Swap contracts | Interest | Net unrealized appreciation* | 18,448 | 1,034 | 512 | |||||||||||
Swap contracts | Credit | Net unrealized appreciation* | — | — | — | |||||||||||
$ | 28,693 | $ | 6,388 | $ | 512 | |||||||||||
Liabilities | Risk type | Location on statements of assets and liabilities | ||||||||||||||
Futures contracts | Interest | Net unrealized depreciation* | $ | 4,181 | $ | 554 | $ | — | ||||||||
Futures contracts | Equity | Net unrealized depreciation* | — | — | — | |||||||||||
Futures contracts | Currency | Net unrealized depreciation* | — | — | — | |||||||||||
Forward currency | Currency | Unrealized depreciation on open forward currency contracts | 2,678 | 4,246 | — | |||||||||||
Forward currency | Currency | Payables for closed forward currency contracts | — | 899 | — | |||||||||||
Swap contracts | Interest | Net unrealized depreciation* | 10,736 | 2,513 | 90 | |||||||||||
Swap contracts | Credit | Net unrealized depreciation* | 184 | — | 419 | |||||||||||
$ | 17,779 | $ | 8,212 | $ | 509 | |||||||||||
Net realized gain (loss) | Risk type | Location on statements of operations | ||||||||||||||
Futures contracts | Interest | Net realized gain on futures contracts | $ | 17,742 | $ | 349 | $ | — | ||||||||
Futures contracts | Equity | Net realized gain on futures contracts | — | — | — | |||||||||||
Futures contracts | Currency | Net realized gain on futures contracts | — | — | — | |||||||||||
Forward currency | Currency | Net realized loss on forward currency contracts | (46,710 | ) | (18,259 | ) | — | |||||||||
Swap contracts | Interest | Net realized gain (loss) on swap contracts | 30,366 | (5,432 | ) | (349 | ) | |||||||||
Swap contracts | Credit | Net realized loss on swap contracts | (29,739 | ) | — | (2,266 | ) | |||||||||
$ | (28,341 | ) | $ | (23,342 | ) | $ | (2,615 | ) | ||||||||
Net unrealized (depreciation) appreciation | Risk type | Location on statements of operations | ||||||||||||||
Futures contracts | Interest | Net unrealized (depreciation) on futures contracts | $ | (3,048 | ) | $ | (359 | ) | $ | — | ||||||
Futures contracts | Equity | Net unrealized appreciation on futures contracts | — | — | — | |||||||||||
Futures contracts | Currency | Net unrealized appreciation on futures contracts | — | — | — | |||||||||||
Forward currency | Currency | Net unrealized appreciation on forward currency contracts | 5,615 | 6,025 | — | |||||||||||
Swap contracts | Interest | Net unrealized depreciation on swap contracts | (749 | ) | (2,601 | ) | (5 | ) | ||||||||
Swap contracts | Credit | Net unrealized depreciation on swap contracts | (184 | ) | — | (1,063 | ) | |||||||||
$ | 1,634 | $ | 3,065 | $ | (1,068 | ) |
156 | American Funds Insurance Series |
Mortgage Fund | U.S. Government/ AAA-Rated Securities Fund | Managed Risk Growth Fund | ||||||||||||||
Assets | Risk type | Location on statements of assets and liabilities | ||||||||||||||
Futures contracts | Interest | Net unrealized appreciation* | $ | 21 | $ | 743 | $ | — | ||||||||
Futures contracts | Equity | Net unrealized appreciation* | — | — | — | |||||||||||
Futures contracts | Currency | Net unrealized appreciation* | — | — | — | |||||||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | — | — | — | |||||||||||
Forward currency | Currency | Receivables for closed forward currency contracts | — | — | — | |||||||||||
Swap contracts | Interest | Net unrealized appreciation* | 1,539 | 18,217 | — | |||||||||||
Swap contracts | Credit | Net unrealized appreciation* | — | — | — | |||||||||||
$ | 1,560 | $ | 18,960 | $ | — | |||||||||||
Liabilities | Risk type | Location on statements of assets and liabilities | ||||||||||||||
Futures contracts | Interest | Net unrealized depreciation* | $ | 653 | $ | 8,188 | $ | 38 | ||||||||
Futures contracts | Equity | Net unrealized depreciation* | — | — | — | |||||||||||
Futures contracts | Currency | Net unrealized depreciation* | — | — | — | |||||||||||
Forward currency | Currency | Unrealized depreciation on open forward currency contracts | — | — | — | |||||||||||
Forward currency | Currency | Payables for closed forward currency contracts | — | — | — | |||||||||||
Swap contracts | Interest | Net unrealized depreciation* | 2,325 | 26,645 | — | |||||||||||
Swap contracts | Credit | Net unrealized depreciation* | — | — | — | |||||||||||
$ | 2,978 | $ | 34,833 | $ | 38 | |||||||||||
Net realized gain (loss) | Risk type | Location on statements of operations | ||||||||||||||
Futures contracts | Interest | Net realized gain (loss) on futures contracts | $ | 587 | $ | (2,897 | ) | $ | — | |||||||
Futures contracts | Equity | Net realized gain on futures contracts | — | — | — | |||||||||||
Futures contracts | Currency | Net realized loss on futures contracts | — | — | — | |||||||||||
Forward currency | Currency | Net realized gain on forward currency contracts | — | — | — | |||||||||||
Swap contracts | Interest | Net realized gain on swap contracts | 281 | 16,684 | — | |||||||||||
Swap contracts | Credit | Net realized gain on swap contracts | — | — | — | |||||||||||
$ | 868 | $ | 13,787 | $ | — | |||||||||||
Net unrealized depreciation | Risk type | Location on statements of operations | ||||||||||||||
Futures contracts | Interest | Net unrealized depreciation on futures contracts | $ | (315 | ) | $ | (1,030 | ) | $ | (38 | ) | |||||
Futures contracts | Equity | Net unrealized depreciation on futures contracts | — | — | — | |||||||||||
Futures contracts | Currency | Net unrealized appreciation on futures contracts | — | — | — | |||||||||||
Forward currency | Currency | Net unrealized appreciation on forward currency contracts | — | — | — | |||||||||||
Swap contracts | Interest | Net unrealized depreciation on swap contracts | (1,442 | ) | (18,456 | ) | — | |||||||||
Swap contracts | Credit | Net unrealized appreciation on swap contracts | — | — | — | |||||||||||
$ | (1,757 | ) | $ | (19,486 | ) | $ | (38 | ) |
See end of tables for footnotes.
American Funds Insurance Series | 157 |
Managed Risk International Fund | Managed Risk Blue Chip Income and Growth Fund | Managed Risk Growth- Income Fund | ||||||||||||||
Assets | Risk type | Location on statements of assets and liabilities | ||||||||||||||
Futures contracts | Interest | Net unrealized appreciation* | $ | — | $ | — | $ | — | ||||||||
Futures contracts | Equity | Net unrealized appreciation* | — | — | — | |||||||||||
Futures contracts | Currency | Net unrealized appreciation* | — | — | — | |||||||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | — | — | — | |||||||||||
Forward currency | Currency | Receivables for closed forward currency contracts | — | — | — | |||||||||||
Swap contracts | Interest | Net unrealized appreciation* | — | — | — | |||||||||||
Swap contracts | Credit | Net unrealized appreciation* | — | — | — | |||||||||||
$ | — | $ | — | $ | — | |||||||||||
Liabilities | Risk type | Location on statements of assets and liabilities | ||||||||||||||
Futures contracts | Interest | Net unrealized depreciation* | $ | 19 | $ | 49 | $ | 28 | ||||||||
Futures contracts | Equity | Net unrealized depreciation* | — | — | — | |||||||||||
Futures contracts | Currency | Net unrealized depreciation* | — | — | — | |||||||||||
Forward currency | Currency | Unrealized depreciation on open forward currency contracts | — | — | — | |||||||||||
Forward currency | Currency | Payables for closed forward currency contracts | — | — | — | |||||||||||
Swap contracts | Interest | Net unrealized depreciation* | — | — | — | |||||||||||
Swap contracts | Credit | Net unrealized depreciation* | — | — | — | |||||||||||
$ | 19 | $ | 49 | $ | 28 | |||||||||||
Net realized loss | Risk type | Location on statements of operations | ||||||||||||||
Futures contracts | Interest | Net realized loss on futures contracts | $ | (506 | ) | $ | — | † | $ | — | † | |||||
Futures contracts | Equity | Net realized gain on futures contracts | — | — | — | |||||||||||
Futures contracts | Currency | Net realized gain on futures contracts | — | — | — | |||||||||||
Forward currency | Currency | Net realized gain on forward currency contracts | — | — | — | |||||||||||
Swap contracts | Interest | Net realized gain on swap contracts | — | — | — | |||||||||||
Swap contracts | Credit | Net realized gain on swap contracts | — | — | — | |||||||||||
$ | (506 | ) | $ | — | † | $ | — | † | ||||||||
Net unrealized depreciation | Risk type | Location on statements of operations | ||||||||||||||
Futures contracts | Interest | Net unrealized depreciation on futures contracts | $ | (1 | ) | $ | (49 | ) | $ | (28 | ) | |||||
Futures contracts | Equity | Net unrealized appreciation on futures contracts | — | — | — | |||||||||||
Futures contracts | Currency | Net unrealized appreciation (depreciation) on futures contracts | — | — | — | |||||||||||
Forward currency | Currency | Net unrealized appreciation on forward currency contracts | — | — | — | |||||||||||
Swap contracts | Interest | Net unrealized appreciation on swap contracts | — | — | — | |||||||||||
Swap contracts | Credit | Net unrealized appreciation on swap contracts | — | — | — | |||||||||||
$ | (1 | ) | $ | (49 | ) | $ | (28 | ) |
158 | American Funds Insurance Series |
Managed Risk Asset Allocation Fund | ||||||||
Assets | Risk type | Location on statements of assets and liabilities | ||||||
Futures contracts | Interest | Net unrealized appreciation* | $ | — | ||||
Futures contracts | Equity | Net unrealized appreciation* | — | |||||
Futures contracts | Currency | Net unrealized appreciation* | — | |||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | — | |||||
Forward currency | Currency | Receivables for closed forward currency contracts | — | |||||
Swap contracts | Interest | Net unrealized appreciation* | — | |||||
Swap contracts | Credit | Net unrealized appreciation* | — | |||||
$ | — | |||||||
Liabilities | Risk type | Location on statements of assets and liabilities | ||||||
Futures contracts | Interest | Net unrealized depreciation* | $ | 592 | ||||
Futures contracts | Equity | Net unrealized depreciation* | — | |||||
Futures contracts | Currency | Net unrealized depreciation* | — | |||||
Forward currency | Currency | Unrealized depreciation on open forward currency contracts | — | |||||
Forward currency | Currency | Payables for closed forward currency contracts | — | |||||
Swap contracts | Interest | Net unrealized depreciation* | — | |||||
Swap contracts | Credit | Net unrealized depreciation* | — | |||||
$ | 592 | |||||||
Net realized gain | Risk type | Location on statements of operations | ||||||
Futures contracts | Interest | Net realized gain on futures contracts | $ | — | ||||
Futures contracts | Equity | Net realized gain on futures contracts | — | |||||
Futures contracts | Currency | Net realized loss on futures contracts | — | |||||
Forward currency | Currency | Net realized gain on forward currency contracts | — | |||||
Swap contracts | Interest | Net realized gain on swap contracts | — | |||||
Swap contracts | Credit | Net realized gain on swap contracts | — | |||||
$ | — | |||||||
Net unrealized depreciation | Risk type | Location on statements of operations | ||||||
Futures contracts | Interest | Net unrealized depreciation on futures contracts | $ | (592 | ) | |||
Futures contracts | Equity | Net unrealized appreciation on futures contracts | — | |||||
Futures contracts | Currency | Net unrealized depreciation on futures contracts | — | |||||
Forward currency | Currency | Net unrealized appreciation on forward currency contracts | — | |||||
Swap contracts | Interest | Net unrealized appreciation on swap contracts | — | |||||
Swap contracts | Credit | Net unrealized appreciation on swap contracts | — | |||||
$ | (592 | ) |
* | Includes cumulative appreciation/depreciation on futures contracts, interest rate swaps and/or credit default swaps as reported in the applicable table(s) following each fund’s investment portfolio. Only current day’s variation margin is reported within the statements of assets and liabilities. |
† | Amount less than one thousand. |
American Funds Insurance Series | 159 |
Collateral — Funds that invest in futures contracts, forward currency contracts, interest rate swaps, credit default swaps and/or future delivery contracts participate in a collateral program. For futures contracts, interest rate swaps and credit default swaps, the program calls for the fund to pledge highly liquid assets, such as cash or U.S. Treasury bills, as collateral for initial and variation margin by contract. 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. For future delivery contracts, the program calls for the fund to either receive or pledge collateral based on the net gain or loss on unsettled contracts by certain counterparties. The purpose of the collateral is to cover potential losses that could occur in the event that either party cannot meet its contractual obligations.
Rights of offset — Funds that hold forward currency contracts have enforceable master netting agreements with certain counterparties, where amounts payable by each party to the other in the same currency (with the same settlement date and with the same counter-party) are settled net of each party’s payment obligation. If an early termination date occurs under these agreements following an event of default or termination event, all obligations of each party to its counterparty are settled net through a single payment in a single currency (“close-out netting”). For financial reporting purposes, the funds do not offset financial assets and financial liabilities that are subject to these master netting arrangements in the statements of assets and liabilities.
The following tables present each fund’s forward currency contracts by counterparty that are subject to master netting agreements but that are not offset in the funds’ statements of assets and liabilities. The net amount column shows the impact of offsetting on the funds’ statement of assets and liabilities as of December 31, 2017, if close-out netting was exercised (dollars in thousands):
Global Growth Fund
Gross amounts not offset in the | ||||||||||||||||||||
Gross amounts | statement of assets and liabilities and | |||||||||||||||||||
recognized in the | subject to a master netting agreement | |||||||||||||||||||
statement of assets | Available | Non-cash | Cash | Net | ||||||||||||||||
Counterparty | and liabilities | to offset | collateral* | collateral | amount | |||||||||||||||
Assets: | ||||||||||||||||||||
Bank of America, N.A. | $ | 15 | $ | — | $ | — | $ | — | $ | 15 | ||||||||||
Global Small Capitalization Fund | ||||||||||||||||||||
Gross amounts not offset in the | ||||||||||||||||||||
Gross amounts | statement of assets and liabilities and | |||||||||||||||||||
recognized in the | subject to a master netting agreement | |||||||||||||||||||
statement of assets | Available | Non-cash | Cash | Net | ||||||||||||||||
Counterparty | and liabilities | to offset | collateral* | collateral | amount | |||||||||||||||
Assets: | ||||||||||||||||||||
JPMorgan Chase | $ | 89 | $ | — | $ | — | $ | — | $ | 89 | ||||||||||
UBS AG | 44 | — | — | — | 44 | |||||||||||||||
Total | $ | 133 | $ | — | $ | — | $ | — | $ | 133 | ||||||||||
Liabilities: | ||||||||||||||||||||
Citibank | $ | 314 | $ | — | $ | (152 | ) | $ | — | $ | 162 | |||||||||
HSBC Bank | 878 | — | (521 | ) | — | 357 | ||||||||||||||
Total | $ | 1,192 | $ | — | $ | (673 | ) | $ | — | $ | 519 | |||||||||
International Fund | ||||||||||||||||||||
Gross amounts not offset in the | ||||||||||||||||||||
Gross amounts | statement of assets and liabilities and | |||||||||||||||||||
recognized in the | subject to a master netting agreement | |||||||||||||||||||
statement of assets | Available | Non-cash | Cash | Net | ||||||||||||||||
Counterparty | and liabilities | to offset | collateral* | collateral | amount | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Bank of America, N.A. | $ | 355 | $ | — | $ | (228 | ) | $ | — | $ | 127 |
160 | American Funds Insurance Series |
New World Fund
Gross amounts not offset in the | ||||||||||||||||||||
Gross amounts | statement of assets and liabilities and | |||||||||||||||||||
recognized in the | subject to a master netting agreement | |||||||||||||||||||
statement of assets | Available | Non-cash | Cash | Net | ||||||||||||||||
Counterparty | and liabilities | to offset | collateral* | collateral | amount | |||||||||||||||
Assets: | ||||||||||||||||||||
Bank of America, N.A. | $ | 8 | $ | (8 | ) | $ | — | $ | — | $ | — | |||||||||
JPMorgan Chase | 60 | (55 | ) | — | — | 5 | ||||||||||||||
UBS AG | 1 | — | — | — | 1 | |||||||||||||||
Total | $ | 69 | $ | (63 | ) | $ | — | $ | — | $ | 6 | |||||||||
Liabilities: | ||||||||||||||||||||
Bank of America, N.A. | $ | 57 | $ | (8 | ) | $ | — | $ | — | $ | 49 | |||||||||
Barclays Bank PLC | 97 | — | — | — | 97 | |||||||||||||||
Citibank | 59 | — | — | — | 59 | |||||||||||||||
Goldman Sachs | 115 | — | — | — | 115 | |||||||||||||||
HSBC Bank | 9 | — | — | — | 9 | |||||||||||||||
JPMorgan Chase | 55 | (55 | ) | — | — | — | ||||||||||||||
Total | $ | 392 | $ | (63 | ) | $ | — | $ | — | $ | 329 | |||||||||
Global Balanced Fund | ||||||||||||||||||||
Gross amounts not offset in the | ||||||||||||||||||||
Gross amounts | statement of assets and liabilities and | |||||||||||||||||||
recognized in the | subject to a master netting agreement | |||||||||||||||||||
statement of assets | Available | Non-cash | Cash | Net | ||||||||||||||||
Counterparty | and liabilities | to offset | collateral* | collateral | amount | |||||||||||||||
Assets: | ||||||||||||||||||||
Bank of America, N.A. | $ | 30 | $ | (30 | ) | $ | — | $ | — | $ | — | |||||||||
Bank of New York Mellon | 1 | — | — | — | 1 | |||||||||||||||
Barclays Bank PLC | 7 | (7 | ) | — | — | — | ||||||||||||||
Citibank | 40 | (40 | ) | — | — | — | ||||||||||||||
Goldman Sachs | 15 | (15 | ) | — | — | — | ||||||||||||||
HSBC Bank | 2 | (2 | ) | — | — | — | ||||||||||||||
JPMorgan Chase | 46 | (46 | ) | — | — | — | ||||||||||||||
UBS AG | 14 | (14 | ) | — | — | — | ||||||||||||||
Total | $ | 155 | $ | (154 | ) | $ | — | $ | — | $ | 1 | |||||||||
Liabilities: | ||||||||||||||||||||
Bank of America, N.A. | $ | 52 | $ | (30 | ) | $ | — | $ | — | $ | 22 | |||||||||
Barclays Bank PLC | 59 | (7 | ) | — | — | 52 | ||||||||||||||
Citibank | 54 | (40 | ) | — | — | 14 | ||||||||||||||
Goldman Sachs | 15 | (15 | ) | — | — | — | ||||||||||||||
HSBC Bank | 10 | (2 | ) | — | — | 8 | ||||||||||||||
JPMorgan Chase | 52 | (46 | ) | — | — | 6 | ||||||||||||||
UBS AG | 29 | (14 | ) | — | — | 15 | ||||||||||||||
Total | $ | 271 | $ | (154 | ) | $ | — | $ | — | $ | 117 |
See end of tables for footnote.
American Funds Insurance Series | 161 |
Bond Fund
Gross amounts not offset in the | ||||||||||||||||||||
Gross amounts | statement of assets and liabilities and | |||||||||||||||||||
recognized in the | subject to a master netting agreement | |||||||||||||||||||
statement of assets | Available | Non-cash | Cash | Net | ||||||||||||||||
Counterparty | and liabilities | to offset | collateral* | collateral | amount | |||||||||||||||
Assets: | ||||||||||||||||||||
Bank of America, N.A. | $ | 3,012 | $ | — | $ | (2,182 | ) | $ | (830 | ) | $ | — | ||||||||
Citibank | 374 | (374 | ) | — | — | — | ||||||||||||||
JPMorgan Chase | 6,372 | (1,426 | ) | (4,946 | ) | — | — | |||||||||||||
UBS AG | 462 | — | (382 | ) | — | 80 | ||||||||||||||
Total | $ | 10,220 | $ | (1,800 | ) | $ | (7,510 | ) | $ | (830 | ) | $ | 80 | |||||||
Liabilities: | ||||||||||||||||||||
Citibank | $ | 1,131 | $ | (374 | ) | $ | (280 | ) | $ | — | $ | 477 | ||||||||
HSBC Bank | 121 | — | — | — | 121 | |||||||||||||||
JPMorgan Chase | 1,426 | (1,426 | ) | — | — | — | ||||||||||||||
Total | $ | 2,678 | $ | (1,800 | ) | $ | (280 | ) | $ | — | $ | 598 | ||||||||
Global Bond Fund | ||||||||||||||||||||
Gross amounts not offset in the | ||||||||||||||||||||
Gross amounts | statement of assets and liabilities and | |||||||||||||||||||
recognized in the | subject to a master netting agreement | |||||||||||||||||||
statement of assets | Available | Non-cash | Cash | Net | ||||||||||||||||
Counterparty | and liabilities | to offset | collateral* | collateral | amount | |||||||||||||||
Assets: | ||||||||||||||||||||
Bank of America, N.A. | $ | 321 | $ | (321 | ) | $ | — | $ | — | $ | — | |||||||||
Barclays Bank PLC | 335 | (219 | ) | — | — | 116 | ||||||||||||||
Citibank | 2,208 | (1,250 | ) | — | (958 | ) | — | |||||||||||||
Goldman Sachs | 275 | (275 | ) | — | — | — | ||||||||||||||
HSBC Bank | 143 | (143 | ) | — | — | — | ||||||||||||||
JPMorgan Chase | 1,212 | (1,130 | ) | — | — | 82 | ||||||||||||||
UBS AG | 665 | (665 | ) | — | — | — | ||||||||||||||
Total | $ | 5,159 | $ | (4,003 | ) | $ | — | $ | (958 | ) | $ | 198 | ||||||||
Liabilities: | ||||||||||||||||||||
Bank of America, N.A. | $ | 789 | $ | (321 | ) | $ | (468 | ) | $ | — | $ | — | ||||||||
Barclays Bank PLC | 219 | (219 | ) | — | — | — | ||||||||||||||
Citibank | 1,250 | (1,250 | ) | — | — | — | ||||||||||||||
Goldman Sachs | 569 | (275 | ) | (260 | ) | — | 34 | |||||||||||||
HSBC Bank | 408 | (143 | ) | (250 | ) | — | 15 | |||||||||||||
JPMorgan Chase | 1,130 | (1,130 | ) | — | — | — | ||||||||||||||
UBS AG | 780 | (665 | ) | (115 | ) | — | — | |||||||||||||
Total | $ | 5,145 | $ | (4,003 | ) | $ | (1,093 | ) | $ | — | $ | 49 |
* | Non-cash collateral is shown on a settlement basis. |
6. Taxation and distributions
Federal income taxation — Each fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and each intends to distribute substantially all of its net taxable income and net capital gains each year. The funds are not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.
As of and during the period ended December 31, 2017, 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 significant interest or penalties.
Each fund’s tax returns are not subject to examination by federal, state and, if applicable, non-U.S. tax authorities after the expiration of each jurisdiction’s statute of limitations, which is generally three years after the date of filing but can be extended in certain jurisdictions.
162 | American Funds Insurance Series |
Non-U.S. taxation — Dividend and interest income, if any, are recorded net of non-U.S. taxes paid. The funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. As a result of rulings from European courts, the funds filed for additional reclaims related to prior years. These reclaims are recorded when the amount is known and there are no significant uncertainties on collectability. Gains realized by the funds on the sale of securities in certain countries, if any, may be subject to non-U.S. taxes. If applicable, the funds record an estimated deferred tax liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.
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; non-U.S. taxes on capital gains 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. The funds may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
Additional tax basis disclosures for each fund as of December 31, 2017, were as follows (dollars in thousands):
Global | Blue Chip | |||||||||||||||||||||||
Global | Small | New | Income and | |||||||||||||||||||||
Growth | Capitalization | Growth | International | World | Growth | |||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||
Undistributed ordinary income | $ | 31,444 | $ | 44,103 | $ | 112,122 | $ | 158,459 | $ | 8,129 | $ | 233,361 | ||||||||||||
Undistributed long-term capital gain | 402,492 | 147,040 | 2,434,009 | 324,550 | 93,323 | 502,967 | ||||||||||||||||||
Capital loss carryforward utilized | — | 55,253 | — | — | 123,342 | — | ||||||||||||||||||
Gross unrealized appreciation on investments | 2,228,168 | 1,203,855 | 9,792,218 | 2,530,645 | 890,201 | 2,526,460 | ||||||||||||||||||
Gross unrealized depreciation on investments | (44,698 | ) | (195,609 | ) | (457,553 | ) | (338,548 | ) | (52,274 | ) | (211,893 | ) | ||||||||||||
Net unrealized appreciation (depreciation) on investments | 2,183,470 | 1,008,246 | 9,334,665 | 2,192,097 | 837,927 | 2,314,567 | ||||||||||||||||||
Cost of investments | 4,069,054 | 3,305,903 | 15,704,597 | 7,563,161 | 2,709,901 | 7,062,201 | ||||||||||||||||||
Reclassification to (from) undistributed/distributions in excess of net investment income from (to) undistributed net realized gain/accumulated net realized loss | 5,191 | 1,827 | (576 | ) | (7,896 | ) | 20,408 | (21 | ) | |||||||||||||||
Reclassification to (from) undistributed/distributions in excess of net investment income from (to) capital paid in on shares of beneficial interest | — | — | — | — | 1 | — |
American Funds Insurance Series | 163 |
Global | International | |||||||||||||||||||||||
Growth | Growth- | Growth | Capital | Asset | Global | |||||||||||||||||||
and Income | Income | and Income | Income | Allocation | Balanced | |||||||||||||||||||
Fund | Fund | Fund | Builder | Fund | Fund | |||||||||||||||||||
Undistributed ordinary income | $ | 30,483 | $ | 199,924 | $ | 4,856 | $ | 2,111 | $ | 180,609 | $ | — | ||||||||||||
Late year ordinary loss deferral* | — | — | — | — | — | (316 | ) | |||||||||||||||||
Undistributed long-term capital gain | 127,553 | 2,005,758 | — | 1,388 | 1,027,497 | — | ||||||||||||||||||
Post-October capital loss deferral* | — | — | — | — | — | (158 | ) | |||||||||||||||||
Capital loss carryforward† | — | — | (4,708 | ) | — | — | — | |||||||||||||||||
Capital loss carryforward utilized | — | — | 7,616 | 6,972 | — | — | ||||||||||||||||||
Gross unrealized appreciation on investments | 537,511 | 9,497,980 | 226,556 | 44,448 | 5,969,515 | 63,652 | ||||||||||||||||||
Gross unrealized depreciation on investments | (24,059 | ) | (759,857 | ) | (34,284 | ) | (14,396 | ) | (591,767 | ) | (4,747 | ) | ||||||||||||
Net unrealized appreciation (depreciation) on investments | 513,452 | 8,738,123 | 192,272 | 30,052 | 5,377,748 | 58,905 | ||||||||||||||||||
Cost of investments | 1,592,874 | 21,971,750 | 1,268,241 | 569,142 | 20,774,632 | 297,217 | ||||||||||||||||||
Reclassification to (from) undistributed/distributions in excess of net investment income from (to) undistributed net realized gain/accumulated net realized loss | (1,269 | ) | (1,550 | ) | 341 | 611 | 7,014 | (702 | ) | |||||||||||||||
Reclassification to (from) undistributed/distributions in excess of net investment income from (to) capital paid in on shares of beneficial interest | — | — | — | 1 | — | — | ||||||||||||||||||
U.S. | ||||||||||||||||||||||||
High- | Government/ | |||||||||||||||||||||||
Global | Income | Ultra-Short | AAA-Rated | |||||||||||||||||||||
Bond | Bond | Bond | Mortgage | Bond | Securities | |||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||
Undistributed ordinary income | $ | 43,324 | $ | 5,555 | $ | 14,711 | $ | 1,055 | $ | 481 | $ | 9,342 | ||||||||||||
Undistributed long-term capital gain | 14,531 | 6,778 | — | — | — | — | ||||||||||||||||||
Capital loss carryforward† | — | — | (146,596 | ) | (490 | ) | — | (1,300 | ) | |||||||||||||||
Capital loss carryforward utilized | — | — | 23,967 | — | — | 4,995 | ||||||||||||||||||
Capital loss carryforward expired | — | — | 45,026 | — | — | — | ||||||||||||||||||
Gross unrealized appreciation on investments | 162,798 | 81,621 | 32,856 | 4,807 | 4 | 47,238 | ||||||||||||||||||
Gross unrealized depreciation on investments | (107,507 | ) | (47,515 | ) | (54,535 | ) | (4,665 | ) | (45 | ) | (58,565 | ) | ||||||||||||
Net unrealized appreciation (depreciation) on investments | 55,291 | 34,106 | (21,679 | ) | 142 | (41 | ) | (11,327 | ) | |||||||||||||||
Cost of investments | 12,692,366 | 2,457,189 | 1,454,834 | 414,829 | 305,768 | 3,334,169 | ||||||||||||||||||
Reclassification to (from) undistributed/distributions in excess of net investment income from (to) undistributed net realized gain/accumulated net realized loss | (30,841 | ) | (34,052 | ) | (2,497 | ) | 585 | — | (481 | ) | ||||||||||||||
Reclassification to (from) undistributed/distributions in excess of net investment income from (to) capital paid in on shares of beneficial interest | — | — | — | 2 | — | — | ||||||||||||||||||
Reclassification to (from) capital paid in on shares of beneficial interest from (to) accumulated net realized loss/distribution in excess of net realized gain | — | — | (45,026 | ) | — | 9 | — |
164 | American Funds Insurance Series |
Managed | Managed | Managed | ||||||||||||||||||
Managed | Managed | Risk Blue | Risk | Risk | ||||||||||||||||
Risk | Risk | Chip Income | Growth- | Asset | ||||||||||||||||
Growth | International | and Growth | Income | Allocation | ||||||||||||||||
Fund | Fund | Fund | Fund | Fund | ||||||||||||||||
Undistributed ordinary income | $ | 1,399 | $ | 1,323 | $ | 5,669 | $ | 2,167 | $ | 53,091 | ||||||||||
Undistributed long-term capital gain | 20,518 | 732 | 12,104 | 9,926 | 174,185 | |||||||||||||||
Gross unrealized appreciation on investments | 29,694 | 19,293 | 31,349 | 14,187 | 339,240 | |||||||||||||||
Gross unrealized depreciation on investments | (9,040 | ) | (7,137 | ) | (3,121 | ) | (5,803 | ) | (648 | ) | ||||||||||
Net unrealized appreciation (depreciation) on investments | 20,654 | 12,156 | 28,228 | 8,384 | 338,592 | |||||||||||||||
Cost of investments | 267,404 | 136,312 | 338,850 | 200,658 | 4,118,068 | |||||||||||||||
Reclassification to (from) undistributed/distributions in excess of net investment income from (to) undistributed net realized gain/accumulated net realized loss | 545 | 49 | 1,507 | 141 | 2,446 |
* | These deferrals are considered incurred in the subsequent year. |
† | Capital loss carryforwards will be used to offset any capital gains realized by the funds in future years. Funds with capital loss carryforwards will not make distributions from capital gains while a capital loss carryforwards remains. |
Distributions paid by each fund were characterized for tax purposes as follows (dollars in thousands):
Global Growth Fund
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
dividends and | dividends and | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 16,830 | $ | 55,298 | $ | 72,128 | $ | 24,109 | $ | 126,735 | $ | 150,844 | ||||||||||||
Class 1A* | 15 | 16 | 31 | |||||||||||||||||||||
Class 2 | 24,835 | 114,893 | 139,728 | 44,725 | 291,772 | 336,497 | ||||||||||||||||||
Class 4 | 1,062 | 3,889 | 4,951 | 945 | 7,147 | 8,092 | ||||||||||||||||||
Total | $ | 42,742 | $ | 174,096 | $ | 216,838 | $ | 69,779 | $ | 425,654 | $ | 495,433 | ||||||||||||
Global Small Capitalization Fund | ||||||||||||||||||||||||
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Total | ||||||||||||||||||||||||
Total | dividends and | |||||||||||||||||||||||
Ordinary | Long-term | dividends | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 10,151 | $ | — | $ | 10,151 | $ | 11,807 | $ | 273,687 | $ | 285,494 | ||||||||||||
Class 1A* | 1 | — | 1 | |||||||||||||||||||||
Class 2 | 10,597 | — | 10,597 | 12,193 | 433,806 | 445,999 | ||||||||||||||||||
Class 4 | 270 | — | 270 | 142 | 6,715 | 6,857 | ||||||||||||||||||
Total | $ | 21,019 | $ | — | $ | 21,019 | $ | 24,142 | $ | 714,208 | $ | 738,350 |
See end of tables for footnotes.
American Funds Insurance Series | 165 |
Growth Fund
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
dividends and | dividends and | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 75,247 | $ | 713,987 | $ | 789,234 | $ | 68,458 | $ | 603,135 | $ | 671,593 | ||||||||||||
Class 1A* | 15 | 63 | 78 | |||||||||||||||||||||
Class 2 | 110,909 | 1,409,266 | 1,520,175 | 105,243 | 1,244,603 | 1,349,846 | ||||||||||||||||||
Class 3 | 1,601 | 18,484 | 20,085 | 1,482 | 16,336 | 17,818 | ||||||||||||||||||
Class 4 | 4,893 | 53,128 | 58,021 | 2,484 | 36,779 | 39,263 | ||||||||||||||||||
Total | $ | 192,665 | $ | 2,194,928 | $ | 2,387,593 | $ | 177,667 | $ | 1,900,853 | $ | 2,078,520 | ||||||||||||
International Fund | ||||||||||||||||||||||||
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
dividends and | dividends and | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 70,384 | $ | 49,783 | $ | 120,167 | $ | 59,237 | $ | 296,124 | $ | 355,361 | ||||||||||||
Class 1A* | 17 | 3 | 20 | |||||||||||||||||||||
Class 2 | 53,513 | 46,642 | 100,155 | 51,666 | 334,251 | 385,917 | ||||||||||||||||||
Class 3 | 396 | 331 | 727 | 389 | 2,445 | 2,834 | ||||||||||||||||||
Class 4 | 3,025 | 1,066 | 4,091 | 794 | 4,665 | 5,459 | ||||||||||||||||||
Total | $ | 127,335 | $ | 97,825 | $ | 225,160 | $ | 112,086 | $ | 637,485 | $ | 749,571 | ||||||||||||
New World Fund | ||||||||||||||||||||||||
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
Ordinary | Long-term | dividends | Ordinary | Long-term | dividends | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 21,960 | $ | — | $ | 21,960 | $ | 17,725 | $ | — | $ | 17,725 | ||||||||||||
Class 1A* | 6 | — | 6 | |||||||||||||||||||||
Class 2 | 9,149 | — | 9,149 | 7,100 | — | 7,100 | ||||||||||||||||||
Class 4 | 3,016 | — | 3,016 | 1,465 | — | 1,465 | ||||||||||||||||||
Total | $ | 34,131 | $ | — | $ | 34,131 | $ | 26,290 | $ | — | $ | 26,290 | ||||||||||||
Blue Chip Income and Growth Fund | ||||||||||||||||||||||||
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
dividends and | dividends and | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 140,306 | $ | 170,748 | $ | 311,054 | $ | 137,434 | $ | 292,079 | $ | 429,513 | ||||||||||||
Class 1A* | 12 | 5 | 17 | |||||||||||||||||||||
Class 2 | 82,680 | 113,013 | 195,693 | 92,301 | 236,696 | 328,997 | ||||||||||||||||||
Class 4 | 4,917 | 5,605 | 10,522 | 2,759 | 4,934 | 7,693 | ||||||||||||||||||
Total | $ | 227,915 | $ | 289,371 | $ | 517,286 | $ | 232,494 | $ | 533,709 | $ | 766,203 |
166 | American Funds Insurance Series |
Global Growth and Income Fund
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Total | ||||||||||||||||||||||||
dividends and | Total | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | dividends | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 10,516 | $ | 7,109 | $ | 17,625 | $ | 11,131 | $ | — | $ | 11,131 | ||||||||||||
Class 1A* | 2 | — | * | 2 | ||||||||||||||||||||
Class 2 | 30,799 | 26,178 | 56,977 | 25,283 | — | 25,283 | ||||||||||||||||||
Class 4 | 1,478 | 405 | 1,883 | 257 | — | 257 | ||||||||||||||||||
Total | $ | 42,795 | $ | 33,692 | $ | 76,487 | $ | 36,671 | $ | — | $ | 36,671 | ||||||||||||
Growth-Income Fund | ||||||||||||||||||||||||
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
dividends and | dividends and | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 250,221 | $ | 884,958 | $ | 1,135,179 | $ | 263,296 | $ | 1,172,060 | $ | 1,435,356 | ||||||||||||
Class 1A* | 24 | 16 | 40 | |||||||||||||||||||||
Class 2 | 195,450 | 853,292 | 1,048,742 | 250,881 | 1,329,722 | 1,580,603 | ||||||||||||||||||
Class 3 | 2,421 | 10,140 | 12,561 | 3,141 | 16,262 | 19,403 | ||||||||||||||||||
Class 4 | 9,973 | 36,513 | 46,486 | 8,305 | 45,834 | 54,139 | ||||||||||||||||||
Total | $ | 458,089 | $ | 1,784,919 | $ | 2,243,008 | $ | 525,623 | $ | 2,563,878 | $ | 3,089,501 | ||||||||||||
International Growth and Income Fund | ||||||||||||||||||||||||
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Total | ||||||||||||||||||||||||
Total | dividends and | |||||||||||||||||||||||
Ordinary | Long-term | dividends | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 25,860 | $ | — | $ | 25,860 | $ | 23,268 | $ | 3,458 | $ | 26,726 | ||||||||||||
Class 1A* | 14 | — | 14 | |||||||||||||||||||||
Class 2 | 5,714 | — | 5,714 | 6,231 | 1,080 | 7,311 | ||||||||||||||||||
Class 4 | 1,184 | — | 1,184 | 895 | 149 | 1,044 | ||||||||||||||||||
Total | $ | 32,772 | $ | — | $ | 32,772 | $ | 30,394 | $ | 4,687 | $ | 35,081 | ||||||||||||
Capital Income Builder | ||||||||||||||||||||||||
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Total | ||||||||||||||||||||||||
Total | dividends and | |||||||||||||||||||||||
Ordinary | Long-term | dividends | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 6,303 | $ | — | $ | 6,303 | $ | 4,372 | $ | — | $ | 4,372 | ||||||||||||
Class 1A* | 8 | — | 8 | |||||||||||||||||||||
Class 2 | 23 | — | 23 | 2 | — | 2 | ||||||||||||||||||
Class 4 | 7,676 | — | 7,676 | 6,657 | — | 6,657 | ||||||||||||||||||
Total | $ | 14,010 | $ | — | $ | 14,010 | $ | 11,031 | $ | — | $ | 11,031 |
See end of tables for footnotes.
American Funds Insurance Series | 167 |
Asset Allocation Fund
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
dividends and | dividends and | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 287,347 | $ | 666,425 | $ | 953,772 | $ | 229,739 | $ | 280,306 | $ | 510,045 | ||||||||||||
Class 1A* | 50 | 70 | 120 | |||||||||||||||||||||
Class 2 | 84,847 | 241,077 | 325,924 | 81,019 | 120,303 | 201,322 | ||||||||||||||||||
Class 3 | 601 | 1,646 | 2,247 | 580 | 860 | 1,440 | ||||||||||||||||||
Class 4 | 47,458 | 145,207 | 192,665 | 38,591 | 61,673 | 100,264 | ||||||||||||||||||
Total | $ | 420,303 | $ | 1,054,425 | $ | 1,474,728 | $ | 349,929 | $ | 463,142 | $ | 813,071 | ||||||||||||
Global Balanced Fund | ||||||||||||||||||||||||
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Total | ||||||||||||||||||||||||
dividends and | Total | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | dividends | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 1,298 | $ | 2,309 | $ | 3,607 | $ | 939 | $ | — | $ | 939 | ||||||||||||
Class 1A* | 3 | 5 | 8 | |||||||||||||||||||||
Class 2 | 2,516 | 5,414 | 7,930 | 2,225 | — | 2,225 | ||||||||||||||||||
Class 4 | 582 | 1,195 | 1,777 | 121 | — | 121 | ||||||||||||||||||
Total | $ | 4,399 | $ | 8,923 | $ | 13,322 | $ | 3,285 | $ | — | $ | 3,285 | ||||||||||||
Bond Fund | ||||||||||||||||||||||||
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
dividends and | dividends and | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 211,473 | $ | 25,594 | $ | 237,067 | $ | 138,255 | $ | 11,305 | $ | 149,560 | ||||||||||||
Class 1A* | 19 | 1 | 20 | |||||||||||||||||||||
Class 2 | 119,175 | 15,280 | 134,455 | 74,576 | 7,465 | 82,041 | ||||||||||||||||||
Class 4 | 5,958 | 441 | 6,399 | 1,614 | 150 | 1,764 | ||||||||||||||||||
Total | $ | 336,625 | $ | 41,316 | $ | 377,941 | $ | 214,445 | $ | 18,920 | $ | 233,365 | ||||||||||||
Global Bond Fund | ||||||||||||||||||||||||
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
dividends and | dividends and | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 14,181 | $ | 103 | $ | 14,284 | $ | 10,101 | $ | 872 | $ | 10,973 | ||||||||||||
Class 1A* | — | † | — | † | — | † | ||||||||||||||||||
Class 2 | 11,033 | 99 | 11,132 | 7,811 | 923 | 8,734 | ||||||||||||||||||
Class 4 | 196 | 1 | 197 | 68 | 8 | 76 | ||||||||||||||||||
Total | $ | 25,410 | $ | 203 | $ | 25,613 | $ | 17,980 | $ | 1,803 | $ | 19,783 |
168 | American Funds Insurance Series |
High-Income Bond Fund
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Total | ||||||||||||||||||||||||
Total | dividends and | |||||||||||||||||||||||
Ordinary | Long-term | dividends | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 43,976 | $ | — | $ | 43,976 | $ | 57,104 | $ | — | $ | 57,104 | ||||||||||||
Class 1A* | 12 | — | 12 | |||||||||||||||||||||
Class 2 | 51,640 | — | 51,640 | 47,007 | — | 47,007 | ||||||||||||||||||
Class 3 | 805 | — | 805 | 746 | — | 746 | ||||||||||||||||||
Class 4 | 1,981 | — | 1,981 | 1,283 | — | 1,283 | ||||||||||||||||||
Total | $ | 98,414 | $ | — | $ | 98,414 | $ | 106,140 | $ | — | $ | 106,140 | ||||||||||||
Mortgage Fund | ||||||||||||||||||||||||
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
dividends and | dividends and | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 5,106 | $ | 1,186 | $ | 6,292 | $ | 7,780 | $ | 152 | $ | 7,932 | ||||||||||||
Class 1A* | 2 | — | † | 2 | ||||||||||||||||||||
Class 2 | 1,025 | 262 | 1,287 | 1,648 | 35 | 1,683 | ||||||||||||||||||
Class 4 | 165 | 39 | 204 | 222 | 5 | 227 | ||||||||||||||||||
Total | $ | 6,298 | $ | 1,487 | $ | 7,785 | $ | 9,650 | $ | 192 | $ | 9,842 | ||||||||||||
Ultra-Short Bond Fund | ||||||||||||||||||||||||
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
Ordinary | Long-term | dividends | Ordinary | Long-term | dividends | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 184 | $ | — | $ | 184 | $ | — | $ | — | $ | — | ||||||||||||
Class 1A* | — | † | — | — | † | |||||||||||||||||||
Class 2 | 697 | — | 697 | — | — | — | ||||||||||||||||||
Class 3 | 15 | — | 15 | — | — | — | ||||||||||||||||||
Class 4 | 10 | — | 10 | — | — | — | ||||||||||||||||||
Total | $ | 906 | $ | — | $ | 906 | $ | — | $ | — | $ | — | ||||||||||||
U.S. Government/AAA-Rated Securities Fund | ||||||||||||||||||||||||
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Total | ||||||||||||||||||||||||
Total | dividends and | |||||||||||||||||||||||
Ordinary | Long-term | dividends | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 23,690 | $ | — | $ | 23,690 | $ | 44,429 | $ | 7,982 | $ | 52,411 | ||||||||||||
Class 1A* | 1 | — | 1 | |||||||||||||||||||||
Class 2 | 19,498 | — | 19,498 | 43,530 | 8,728 | 52,258 | ||||||||||||||||||
Class 3 | 141 | — | 141 | 307 | 60 | 367 | ||||||||||||||||||
Class 4 | 663 | — | 663 | 1,615 | 371 | 1,986 | ||||||||||||||||||
Total | $ | 43,993 | $ | — | $ | 43,993 | $ | 89,881 | $ | 17,141 | $ | 107,022 |
See end of tables for footnotes.
American Funds Insurance Series | 169 |
Managed Risk Growth Fund
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
dividends and | dividends and | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class P1 | $ | 7 | $ | 22 | $ | 29 | $ | 3 | $ | 57 | $ | 60 | ||||||||||||
Class P2 | 727 | 4,120 | 4,847 | 327 | 14,955 | 15,282 | ||||||||||||||||||
Total | $ | 734 | $ | 4,142 | $ | 4,876 | $ | 330 | $ | 15,012 | $ | 15,342 | ||||||||||||
Managed Risk International Fund | ||||||||||||||||||||||||
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
dividends and | dividends and | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class P1 | $ | 1 | $ | 1 | $ | 2 | $ | 2 | $ | 4 | $ | 6 | ||||||||||||
Class P2 | 899 | 1,402 | 2,301 | 841 | 2,181 | 3,022 | ||||||||||||||||||
Total | $ | 900 | $ | 1,403 | $ | 2,303 | $ | 843 | $ | 2,185 | $ | 3,028 | ||||||||||||
Managed Risk Blue Chip Income and Growth Fund | ||||||||||||||||||||||||
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
dividends and | dividends and | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class P1 | $ | 4 | $ | 3 | $ | 7 | $ | 5 | $ | 8 | $ | 13 | ||||||||||||
Class P2 | 5,157 | 5,565 | 10,722 | 3,370 | 5,915 | 9,285 | ||||||||||||||||||
Total | $ | 5,161 | $ | 5,568 | $ | 10,729 | $ | 3,375 | $ | 5,923 | $ | 9,298 | ||||||||||||
Managed Risk Growth-Income Fund | ||||||||||||||||||||||||
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
dividends and | dividends and | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class P1 | $ | 19 | $ | 73 | $ | 92 | $ | 15 | $ | 64 | $ | 79 | ||||||||||||
Class P2 | 1,848 | 7,653 | 9,501 | 1,692 | 8,401 | 10,093 | ||||||||||||||||||
Total | $ | 1,867 | $ | 7,726 | $ | 9,593 | $ | 1,707 | $ | 8,465 | $ | 10,172 | ||||||||||||
Managed Risk Asset Allocation Fund | ||||||||||||||||||||||||
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
dividends and | dividends and | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class P1 | $ | 11,453 | $ | 13,811 | $ | 25,264 | $ | 16,330 | $ | 29,417 | $ | 45,747 | ||||||||||||
Class P2 | 20,269 | 24,931 | 45,200 | 27,858 | 64,161 | 92,019 | ||||||||||||||||||
Total | $ | 31,722 | $ | 38,742 | $ | 70,464 | $ | 44,188 | $ | 93,578 | $ | 137,766 |
* | Class 1A shares began investment operations on January 6, 2017. |
† | Amount less than one thousand. |
170 | American Funds Insurance Series |
7. Fees and transactions
CRMC, the series’ investment adviser, is the parent company of American Funds Distributors,® Inc. (“AFD”), the distributor of the series’ shares, and American Funds Service Company® (“AFS”), the series’ transfer agent. CRMC, AFD and AFS are considered related parties to the series.
Investment advisory services — The series has an investment advisory and service agreement with CRMC that provides for monthly fees accrued daily. These fees are based on annual rates that generally decrease as average net asset levels increase. CRMC receives investment advisory fees from the underlying funds held by the managed risk funds. These fees are included in the net effective expense ratios that are provided as supplementary information in the financial highlights tables. Subadvisory fees for the managed risk funds are paid by CRMC to Milliman FRM. The managed risk funds are not responsible for paying any subadvisory fees.
Investment advisory services waivers — On December 4, 2017, the series’ board of trustees approved amended agreements effective February 1, 2018, decreasing the annual rate to 0.580% on average daily net assets in excess of $4 billion for New World Fund, decreasing the annual rate to 0.350% on average daily net assets in excess of $10.5 billion for Blue Chip Income and Growth Fund, and decreasing the annual rate to 0.320% on average daily net assets in excess of $13 billion for Bond Fund. CRMC is 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, 2017, total investment advisory services fees waived by CRMC were $2,496,000.
The range of rates, net asset levels and the current annualized rates of average net assets for each fund before and after any investment advisory services waivers (if applicable), are as follows:
Rates | Net asset level (in billions) | For the year ended December 31, | For the year ended December 31, | |||||||||||||||||||||
Beginning | Ending | In excess | 2017, | 2017, | ||||||||||||||||||||
Fund | with | with | Up to | of | before waiver | after waiver | ||||||||||||||||||
Global Growth Fund | .690 | % | .460 | % | $ | .6 | $ | 5.0 | .520 | % | .520 | % | ||||||||||||
Global Small Capitalization Fund | .800 | .635 | .6 | 5.0 | .697 | .697 | ||||||||||||||||||
Growth Fund | .500 | .280 | .6 | 34.0 | .326 | .326 | ||||||||||||||||||
International Fund | .690 | .430 | .5 | 21.0 | .495 | .495 | ||||||||||||||||||
New World Fund | .850 | .620 | .5 | 2.5 | .704 | .704 | ||||||||||||||||||
Blue Chip Income and Growth Fund | .500 | .360 | .6 | 6.5 | .389 | .389 | ||||||||||||||||||
Global Growth and Income Fund | .690 | .480 | .6 | 3.0 | .594 | .594 | ||||||||||||||||||
Growth-Income Fund | .500 | .219 | .6 | 34.0 | .262 | .262 | ||||||||||||||||||
International Growth and Income Fund | .690 | .530 | .5 | 1.0 | .614 | .614 | ||||||||||||||||||
Capital Income Builder Fund | .500 | all | .500 | .500 | ||||||||||||||||||||
Asset Allocation Fund | .500 | .240 | .6 | 21.0 | .268 | .268 | ||||||||||||||||||
Global Balanced Fund | .660 | .510 | .5 | 1.0 | .660 | .660 | ||||||||||||||||||
Bond Fund | .480 | .330 | .6 | 8.0 | .362 | .362 | ||||||||||||||||||
Global Bond Fund | .570 | .450 | 1.0 | 3.0 | .529 | .529 | ||||||||||||||||||
High-Income Bond Fund | .500 | .420 | .6 | 2.0 | .467 | .467 | ||||||||||||||||||
Mortgage Fund | .420 | .290 | .6 | 3.0 | .420 | .420 | ||||||||||||||||||
Ultra-Short Bond Fund | .320 | .270 | 1.0 | 2.0 | .320 | .320 | ||||||||||||||||||
U.S. Government/AAA-Rated Securities Fund | .420 | .290 | .6 | 3.0 | .338 | .338 | ||||||||||||||||||
Managed Risk Growth Fund | .150 | all | .150 | .100 | ||||||||||||||||||||
Managed Risk International Fund | .150 | all | .150 | .100 | ||||||||||||||||||||
Managed Risk Blue Chip Income and Growth Fund | .150 | all | .150 | .100 | ||||||||||||||||||||
Managed Risk Growth-Income Fund | .150 | all | .150 | .100 | ||||||||||||||||||||
Managed Risk Asset Allocation Fund | .150 | all | .150 | .100 |
American Funds Insurance Series | 171 |
Distribution services — The series has plans of distribution for all share classes except Class 1. Under the plans, the board of trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares. The plans provide for payments to pay service fees to firms that have entered into agreements with the series. These payments, based on an annualized percentage of average daily net assets, range from 0.18% to 0.50% as noted in the table below. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans.
Share class | Currently approved limits | Plan limits | ||||||
Class 1A | 0.00 | % | 0.25 | % | ||||
Class 2 | 0.25 | 0.25 | ||||||
Class 3 | 0.18 | 0.18 | ||||||
Class 4 | 0.25 | 0.25 | ||||||
Class P1 | 0.00 | 0.25 | ||||||
Class P2 | 0.25 | 0.50 |
Insurance administrative services — The series has an insurance administrative services plan for Class 1A, 4, P1 and P2 shares. Under the plan, these share classes pay 0.25% of each insurance company’s respective average daily net assets in each share class to compensate the insurance companies for services provided to their separate accounts and contractholders for which the shares of the fund are beneficially owned as underlying investments of such contractholders’ annuities. These services include, but are not limited to, maintenance, shareholder communications and transactional services. The insurance companies are not related parties to the series.
Transfer agent services — The series has a shareholder services agreement with AFS under which the funds compensate AFS for providing transfer agent services to all of the funds’ share classes. These services include recordkeeping, shareholder communications and transaction processing. In addition, the managed risk funds reimburse AFS for amounts paid to third parties for performing transfer agent services on behalf of fund shareholders.
Administrative services — The series has an administrative services agreement with CRMC to provide administrative services to all of the funds’ share classes. The services include, but are not limited to, coordinating, monitoring, assisting and overseeing third parties that provide services to fund shareholders. Under the agreement, each share class of each fund, except the managed risk funds, pays an annual fee of 0.01% based on its respective average daily net assets to compensate CRMC for providing administrative services. For the managed risk funds, CRMC receives administrative services fees of 0.01% of average daily net assets from Class 1 shares of the underlying funds for administrative services provided to the series.
Accounting and administrative services — The managed risk funds have a subadministration agreement with BNY Mellon under which the fund compensates BNY Mellon for providing accounting and administrative services to each of the managed risk funds’ share classes. These services include, but are not limited to, fund accounting (including calculation of net asset value), financial reporting and tax services. BNY Mellon is not a related party to the managed risk funds.
Miscellaneous fee reimbursements — CRMC is currently reimbursing a portion of miscellaneous fees and expenses for Managed Risk Growth Fund, Managed Risk International Fund, Managed Risk Blue Chip Income and Growth Fund and Managed Risk Growth-Income Fund. Miscellaneous expenses exclude investment advisory services and distribution services fees. For the year ended December 31, 2017, total expenses reimbursed by CRMC were $102,000.
Class-specific expenses under the agreements described above were as follows (dollars in thousands):
Global Growth Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 188 | ||||||||
Class 1A* | $ | — | $ | 2 | — | † | ||||||
Class 2 | 9,611 | Not applicable | 385 | |||||||||
Class 4 | 352 | 352 | 14 | |||||||||
Total class-specific expenses | $ | 9,963 | $ | 354 | $ | 587 |
Global Small Capitalization Fund
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 160 | ||||||||
Class 1A* | $ | — | $ | — | † | — | † | |||||
Class 2 | 6,149 | Not applicable | 246 | |||||||||
Class 4 | 171 | 171 | 7 | |||||||||
Total class-specific expenses | $ | 6,320 | $ | 171 | $ | 413 |
172 | American Funds Insurance Series |
Growth Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
Share class | services | services | services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 774 | ||||||||
Class 1A* | $ | — | $ | 2 | — | † | ||||||
Class 2 | 37,831 | Not applicable | 1,513 | |||||||||
Class 3 | 362 | Not applicable | 20 | |||||||||
Class 4 | 1,542 | 1,542 | 62 | |||||||||
Total class-specific expenses | $ | 39,735 | $ | 1,544 | $ | 2,369 |
International Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
Share class | services | services | services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 446 | ||||||||
Class 1A* | $ | — | $ | 1 | — | † | ||||||
Class 2 | 10,407 | Not applicable | 416 | |||||||||
Class 3 | 53 | Not applicable | 3 | |||||||||
Class 4 | 304 | 304 | 12 | |||||||||
Total class-specific expenses | $ | 10,764 | $ | 305 | $ | 877 |
New World Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
Share class | services | services | services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 194 | ||||||||
Class 1A* | $ | — | $ | 1 | — | † | ||||||
Class 2 | 2,507 | Not applicable | 100 | |||||||||
Class 4 | 821 | 820 | 33 | |||||||||
Total class-specific expenses | $ | 3,328 | $ | 821 | $ | 327 |
Blue Chip Income and Growth Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
Share class | services | services | services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 538 | ||||||||
Class 1A* | $ | — | $ | — | † | — | † | |||||
Class 2 | 8,620 | Not applicable | 345 | |||||||||
Class 4 | 440 | 440 | 18 | |||||||||
Total class-specific expenses | $ | 9,060 | $ | 440 | $ | 901 |
Global Growth and Income Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
Share class | services | services | services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 51 | ||||||||
Class 1A* | $ | — | $ | — | † | — | † | |||||
Class 2 | 3,734 | Not applicable | 149 | |||||||||
Class 4 | 79 | 79 | 3 | |||||||||
Total class-specific expenses | $ | 3,813 | $ | 79 | $ | 203 |
Growth-Income Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
Share class | services | services | services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 1,424 | ||||||||
Class 1A* | $ | — | $ | 2 | — | † | ||||||
Class 2 | 33,675 | Not applicable | 1,347 | |||||||||
Class 3 | 292 | Not applicable | 16 | |||||||||
Class 4 | 1,513 | 1,513 | 61 | |||||||||
Total class-specific expenses | $ | 35,480 | $ | 1,515 | $ | 2,848 |
International Growth and Income Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
Share class | services | services | services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 100 | ||||||||
Class 1A* | $ | — | $ | 1 | — | † | ||||||
Class 2 | 656 | Not applicable | 26 | |||||||||
Class 4 | 123 | 122 | 5 | |||||||||
Total class-specific expenses | $ | 779 | $ | 123 | $ | 131 |
Capital Income Builder
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
Share class | services | services | services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 20 | ||||||||
Class 1A* | $ | — | $ | 1 | — | † | ||||||
Class 2 | 2 | Not applicable | — | † | ||||||||
Class 4 | 746 | 746 | 30 | |||||||||
Total class-specific expenses | $ | 748 | $ | 747 | $ | 50 |
See end of tables for footnotes.
American Funds Insurance Series | 173 |
Asset Allocation Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
Share class | services | services | services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 1,501 | ||||||||
Class 1A* | $ | — | $ | 4 | — | † | ||||||
Class 2 | 13,450 | Not applicable | 538 | |||||||||
Class 3 | 66 | Not applicable | 4 | |||||||||
Class 4 | 8,079 | 8,080 | 323 | |||||||||
Total class-specific expenses | $ | 21,595 | $ | 8,084 | $ | 2,366 |
Global Balanced Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
Share class | services | services | services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 8 | ||||||||
Class 1A* | $ | — | $ | — | — | † | ||||||
Class 2 | 487 | Not applicable | 19 | |||||||||
Class 4 | 65 | 65 | 3 | |||||||||
Total class-specific expenses | $ | 552 | $ | 65 | $ | 30 |
Bond Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
Share class | services | services | services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 673 | ||||||||
Class 1A* | $ | — | $ | 1 | — | † | ||||||
Class 2 | 9,931 | Not applicable | 397 | |||||||||
Class 4 | 359 | 359 | 15 | |||||||||
Total class-specific expenses | $ | 10,290 | $ | 360 | $ | 1,085 |
Global Bond Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
Share class | services | services | services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 121 | ||||||||
Class 1A* | $ | — | $ | — | † | — | † | |||||
Class 2 | 2,887 | Not applicable | 115 | |||||||||
Class 4 | 42 | 42 | 2 | |||||||||
Total class-specific expenses | $ | 2,929 | $ | 42 | $ | 238 |
High-Income Bond Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
Share class | services | services | services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 81 | ||||||||
Class 1A* | $ | — | $ | — | † | — | † | |||||
Class 2 | 1,994 | Not applicable | 80 | |||||||||
Class 3 | 23 | Not applicable | 1 | |||||||||
Class 4 | 67 | 67 | 3 | |||||||||
Total class-specific expenses | $ | 2,084 | $ | 67 | $ | 165 |
Mortgage Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
Share class | services | services | services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 27 | ||||||||
Class 1A* | $ | — | $ | — | † | — | † | |||||
Class 2 | 156 | Not applicable | 6 | |||||||||
Class 4 | 24 | 25 | 1 | |||||||||
Total class-specific expenses | $ | 180 | $ | 25 | $ | 34 |
Ultra-Short Bond Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
Share class | services | services | services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 4 | ||||||||
Class 1A* | $ | — | $ | — | — | |||||||
Class 2 | 659 | Not applicable | 26 | |||||||||
Class 3 | 7 | Not applicable | — | † | ||||||||
Class 4 | 38 | 38 | 2 | |||||||||
Total class-specific expenses | $ | 704 | $ | 38 | $ | 32 |
U.S. Government/AAA-Rated Securities Fund
Insurance | ||||||||||||
Distribution | administrative | Administrative | ||||||||||
Share class | services | services | services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 145 | ||||||||
Class 1A* | $ | — | $ | — | † | — | † | |||||
Class 2 | 3,721 | Not applicable | 149 | |||||||||
Class 3 | 19 | Not applicable | 1 | |||||||||
Class 4 | 143 | 144 | 6 | |||||||||
Total class-specific expenses | $ | 3,883 | $ | 144 | $ | 301 |
174 | American Funds Insurance Series |
Managed Risk Growth Fund
Insurance | ||||||||||||
Distribution | administrative | |||||||||||
Share class | services | services | ||||||||||
Class P1 | Not applicable | $ | 3 | |||||||||
Class P2 | $ | 616 | 616 | |||||||||
Total class-specific expenses | $ | 616 | $ | 619 |
Managed Risk International Fund
Insurance | ||||||||||||
Distribution | administrative | |||||||||||
Share class | services | services | ||||||||||
Class P1 | Not applicable | $ | — | † | ||||||||
Class P2 | $ | 311 | 311 | |||||||||
Total class-specific expenses | $ | 311 | $ | 311 |
Managed Risk Blue Chip Income and Growth Fund
Insurance | ||||||||||||
Distribution | administrative | |||||||||||
Share class | services | services | ||||||||||
Class P1 | Not applicable | $ | — | † | ||||||||
Class P2 | $ | 883 | 883 | |||||||||
Total class-specific expenses | $ | 883 | $ | 883 |
Managed Risk Growth-Income Fund
Insurance | ||||||||||||
Distribution | administrative | |||||||||||
Share class | services | services | ||||||||||
Class P1 | Not applicable | $ | 5 | |||||||||
Class P2 | $ | 463 | 463 | |||||||||
Total class-specific expenses | $ | 463 | $ | 468 |
Managed Risk Asset Allocation Fund
Insurance | ||||||||||||
Distribution | administrative | |||||||||||
Share class | services | services | ||||||||||
Class P1 | Not applicable | $ | 3,640 | |||||||||
Class P2 | $ | 6,556 | 6,556 | |||||||||
Total class-specific expenses | $ | 6,556 | $ | 10,196 |
* | Class 1A shares began investment operations on January 6, 2017. |
† | Amount less than one thousand. |
American Funds Insurance Series | 175 |
Trustees’ deferred compensation — Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the funds, are treated as if invested in one or more of the American Funds. These amounts represent general, unsecured liabilities of the funds and vary according to the total returns of the selected funds. Trustees’ compensation, shown on the accompanying financial statements, reflects current fees (either paid in cash or deferred) and a net increase in the value of the deferred amounts as follows (dollars in thousands):
Current fees | Increase in value of deferred amounts | Total trustees’ compensation | ||||||||||
Global Growth Fund | $ | 36 | $ | 14 | $ | 50 | ||||||
Global Small Capitalization Fund | 26 | 10 | 36 | |||||||||
Growth Fund | 146 | 57 | 203 | |||||||||
International Fund | 52 | 21 | 73 | |||||||||
New World Fund | 20 | 8 | 28 | |||||||||
Blue Chip Income and Growth Fund | 56 | 22 | 78 | |||||||||
Global Growth and Income Fund | 13 | 5 | 18 | |||||||||
Growth-Income Fund | 175 | 68 | 243 | |||||||||
International Growth and Income Fund | 8 | 3 | 11 | |||||||||
Capital Income Builder | 3 | 1 | 4 | |||||||||
Asset Allocation Fund | 144 | 56 | 200 | |||||||||
Global Balanced Fund | 2 | 1 | 3 | |||||||||
Bond Fund | 70 | 26 | 96 | |||||||||
Global Bond Fund | 15 | 6 | 21 | |||||||||
High-Income Bond Fund | 11 | 4 | 15 | |||||||||
Mortgage Fund | 2 | 1 | 3 | |||||||||
Ultra-Short Bond Fund | 2 | 1 | 3 | |||||||||
U.S. Government/AAA-Rated Securities Fund | 19 | 7 | 26 | |||||||||
Managed Risk Growth Fund | 1 | 1 | 2 | |||||||||
Managed Risk International Fund | 1 | — | * | 1 | ||||||||
Managed Risk Blue Chip Income and Growth Fund | 2 | 1 | 3 | |||||||||
Managed Risk Growth-Income Fund | 2 | — | * | 2 | ||||||||
Managed Risk Asset Allocation Fund | 24 | 10 | 34 |
* | Amount less than one thousand. |
Affiliated officers and trustees — Officers and certain trustees of the series are or may be considered to be affiliated with CRMC, AFD and AFS. No affiliated officers or trustees received any compensation directly from any fund in the series.
Security transactions with related funds — The funds may purchase from, or sell securities to, other CRMC-managed funds (or funds managed by certain affiliates of CRMC) under procedures adopted by the fund’s board of trustees. The funds involved in such transactions are considered related by virtue of having a common investment adviser (or affiliated investment advisers), common trustees and/or common officers. When such transactions occur, each transaction is executed at the current market price of the security and no brokerage commissions or fees are paid in accordance with Rule 17a-7 of the 1940 Act.
The following table presents purchase and sales transactions between each fund and related funds as of December 31, 2017 (dollars in thousands):
Purchases | Sales | |||||||
Global Small Capitalization Fund | $ 15,273 | $109,018 | ||||||
Blue Chip Income and Growth Fund | 80,277 | 170,978 |
8. Committed line of credit
Global Small Capitalization Fund, New World Fund and High-Income Bond Fund participate with other funds managed by CRMC in a $1 billion credit facility (the “line of credit”) to be utilized for temporary purposes to fund shareholder redemptions. Each fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which are reflected in other expenses in each fund’s statement of operations. None of the funds borrowed on this line of credit at any time during the year ended December 31, 2017.
176 | American Funds Insurance Series |
9. Capital share transactions
Capital share transactions in the funds were as follows (dollars and shares in thousands):
Global Growth Fund
Sales1 | Reinvestments of dividends and distributions | Repurchases1 | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 202,598 | 7,210 | $ | 72,128 | 2,554 | $ | (331,323 | ) | (11,655 | ) | $ | (56,597 | ) | (1,891 | ) | ||||||||||||||||
Class 1A2 | 2,333 | 80 | 31 | 1 | (125 | ) | (4 | ) | 2,239 | 77 | ||||||||||||||||||||||
Class 2 | 55,435 | 2,042 | 139,728 | 5,015 | (563,057 | ) | (20,391 | ) | (367,894 | ) | (13,334 | ) | ||||||||||||||||||||
Class 4 | 92,931 | 3,271 | 4,951 | 178 | (11,055 | ) | (400 | ) | 86,827 | 3,049 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 353,297 | 12,603 | $ | 216,838 | 7,748 | $ | (905,560 | ) | (32,450 | ) | $ | (335,425 | ) | (12,099 | ) | ||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 214,321 | 8,771 | $ | 150,842 | 6,520 | $ | (225,629 | ) | (9,136 | ) | $ | 139,534 | 6,155 | ||||||||||||||||||
Class 2 | 98,924 | 4,087 | 336,499 | 14,694 | (451,495 | ) | (18,489 | ) | (16,072 | ) | 292 | |||||||||||||||||||||
Class 4 | 31,776 | 1,313 | 8,092 | 354 | (28,384 | ) | (1,172 | ) | 11,484 | 495 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 345,021 | 14,171 | $ | 495,433 | 21,568 | $ | (705,508 | ) | (28,797 | ) | $ | 134,946 | 6,942 | ||||||||||||||||||
Global Small Capitalization Fund | ||||||||||||||||||||||||||||||||
Sales1 | Reinvestments of dividends and distributions | Repurchases1 | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 128,448 | 5,651 | $ | 10,108 | 429 | $ | (396,272 | ) | (17,174 | ) | $ | (257,716 | ) | (11,094 | ) | ||||||||||||||||
Class 1A2 | 169 | 8 | 1 | — | 3 | — | 3 | — | 3 | 170 | 8 | |||||||||||||||||||||
Class 2 | 27,876 | 1,267 | 10,597 | 472 | (343,593 | ) | (15,314 | ) | (305,120 | ) | (13,575 | ) | ||||||||||||||||||||
Class 4 | 73,197 | 3,126 | 270 | 12 | (5,899 | ) | (258 | ) | 67,568 | 2,880 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 229,690 | 10,052 | $ | 20,976 | 913 | $ | (745,764 | ) | (32,746 | ) | $ | (495,098 | ) | (21,781 | ) | ||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 161,105 | 7,595 | $ | 285,447 | 14,932 | $ | (368,707 | ) | (16,753 | ) | $ | 77,845 | 5,774 | ||||||||||||||||||
Class 2 | 54,521 | 2,619 | 445,999 | 23,986 | (293,447 | ) | (14,137 | ) | 207,073 | 12,468 | ||||||||||||||||||||||
Class 4 | 16,563 | 792 | 6,857 | 365 | (8,311 | ) | (402 | ) | 15,109 | 755 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 232,189 | 11,006 | $ | 738,303 | 39,283 | $ | (670,465 | ) | (31,292 | ) | $ | 300,027 | 18,997 |
See end of tables for footnotes.
American Funds Insurance Series | 177 |
Growth Fund
Sales1 | Reinvestments of dividends and distributions | Repurchases1 | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 505,734 | 6,906 | $ | 786,807 | 11,094 | $ | (1,258,545 | ) | (16,930 | ) | $ | 33,996 | 1,070 | ||||||||||||||||||
Class 1A2 | 2,708 | 36 | 78 | 1 | (94 | ) | (1 | ) | 2,692 | 36 | ||||||||||||||||||||||
Class 2 | 206,092 | 2,819 | 1,520,175 | 21,621 | (2,205,078 | ) | (30,135 | ) | (478,811 | ) | (5,695 | ) | ||||||||||||||||||||
Class 3 | 468 | 6 | 20,085 | 282 | (21,851 | ) | (295 | ) | (1,298 | ) | (7 | ) | ||||||||||||||||||||
Class 4 | 407,312 | 5,509 | 58,020 | 832 | (56,254 | ) | (776 | ) | 409,078 | 5,565 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 1,122,314 | 15,276 | $ | 2,385,165 | 33,830 | $ | (3,541,822 | ) | (48,137 | ) | $ | (34,343 | ) | 969 | |||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 458,166 | 7,079 | $ | 669,418 | 10,693 | $ | (964,251 | ) | (14,691 | ) | $ | 163,333 | 3,081 | ||||||||||||||||||
Class 2 | 177,712 | 2,745 | 1,349,846 | 21,732 | (1,859,064 | ) | (28,538 | ) | (331,506 | ) | (4,061 | ) | ||||||||||||||||||||
Class 3 | 1,102 | 18 | 17,818 | 284 | (27,723 | ) | (425 | ) | (8,803 | ) | (123 | ) | ||||||||||||||||||||
Class 4 | 75,062 | 1,167 | 39,264 | 638 | (49,300 | ) | (768 | ) | 65,026 | 1,037 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 712,042 | 11,009 | $ | 2,076,346 | 33,347 | $ | (2,900,338 | ) | (44,422 | ) | $ | (111,950 | ) | (66 | ) | ||||||||||||||||
International Fund | ||||||||||||||||||||||||||||||||
Sales1 | Reinvestments of dividends and distributions | Repurchases1 | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 760,186 | 38,348 | $ | 119,937 | 5,881 | $ | (613,463 | ) | (30,471 | ) | $ | 266,660 | 13,758 | ||||||||||||||||||
Class 1A2 | 1,638 | 80 | 20 | 1 | (119 | ) | (5 | ) | 1,539 | 76 | ||||||||||||||||||||||
Class 2 | 174,876 | 8,941 | 100,155 | 4,954 | (605,647 | ) | (30,845 | ) | (330,616 | ) | (16,950 | ) | ||||||||||||||||||||
Class 3 | 274 | 13 | 726 | 36 | (3,886 | ) | (197 | ) | (2,886 | ) | (148 | ) | ||||||||||||||||||||
Class 4 | 209,217 | 10,089 | 4,092 | 200 | (14,987 | ) | (752 | ) | 198,322 | 9,537 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 1,146,191 | 57,471 | $ | 224,930 | 11,072 | $ | (1,238,102 | ) | (62,270 | ) | $ | 133,019 | 6,273 | ||||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 502,624 | 29,474 | $ | 355,240 | 22,171 | $ | (416,969 | ) | (24,055 | ) | $ | 440,895 | 27,590 | ||||||||||||||||||
Class 2 | 190,542 | 11,247 | 385,917 | 24,231 | (598,017 | ) | (34,790 | ) | (21,558 | ) | 688 | |||||||||||||||||||||
Class 3 | 122 | 7 | 2,834 | 177 | (5,902 | ) | (343 | ) | (2,946 | ) | (159 | ) | ||||||||||||||||||||
Class 4 | 25,077 | 1,477 | 5,458 | 345 | (7,439 | ) | (436 | ) | 23,096 | 1,386 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 718,365 | 42,205 | $ | 749,449 | 46,924 | $ | (1,028,327 | ) | (59,624 | ) | $ | 439,487 | 29,505 | ||||||||||||||||||
New World Fund | ||||||||||||||||||||||||||||||||
Sales1 | Reinvestments of dividends | Repurchases1 | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 280,518 | 12,105 | $ | 21,909 | 893 | $ | (475,480 | ) | (20,394 | ) | $ | (173,053 | ) | (7,396 | ) | ||||||||||||||||
Class 1A2 | 629 | 27 | 6 | — | 3 | (13 | ) | (1 | ) | 622 | 26 | |||||||||||||||||||||
Class 2 | 143,361 | 6,559 | 9,149 | 376 | (254,737 | ) | (11,445 | ) | (102,227 | ) | (4,510 | ) | ||||||||||||||||||||
Class 4 | 127,556 | 5,560 | 3,016 | 124 | (20,431 | ) | (895 | ) | 110,141 | 4,789 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 552,064 | 24,251 | $ | 34,080 | 1,393 | $ | (750,661 | ) | (32,735 | ) | $ | (164,517 | ) | (7,091 | ) | ||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 343,390 | 17,604 | $ | 17,686 | 901 | $ | (250,303 | ) | (12,858 | ) | $ | 110,773 | 5,647 | ||||||||||||||||||
Class 2 | 51,238 | 2,661 | 7,100 | 365 | (149,682 | ) | (7,790 | ) | (91,344 | ) | (4,764 | ) | ||||||||||||||||||||
Class 4 | 71,177 | 3,754 | 1,465 | 75 | (12,695 | ) | (670 | ) | 59,947 | 3,159 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 465,805 | 24,019 | $ | 26,251 | 1,341 | $ | (412,680 | ) | (21,318 | ) | $ | 79,376 | 4,042 |
178 | American Funds Insurance Series |
Blue Chip Income and Growth Fund
Sales1 | Reinvestments of dividends and distributions | Repurchases1 | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 458,480 | 32,688 | $ | 309,238 | 21,989 | $ | (834,928 | ) | (58,499 | ) | $ | (67,210 | ) | (3,822 | ) | ||||||||||||||||
Class 1A2 | 593 | 42 | 17 | 1 | (15 | ) | (1 | ) | 595 | 42 | ||||||||||||||||||||||
Class 2 | 34,639 | 2,502 | 195,693 | 14,095 | (439,009 | ) | (31,376 | ) | (208,677 | ) | (14,779 | ) | ||||||||||||||||||||
Class 4 | 129,429 | 9,259 | 10,522 | 756 | (43,213 | ) | (3,132 | ) | 96,738 | 6,883 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 623,141 | 44,491 | $ | 515,470 | 36,841 | $ | (1,317,165 | ) | (93,008 | ) | $ | (178,554 | ) | (11,676 | ) | ||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 986,168 | 74,990 | $ | 426,031 | 33,628 | $ | (260,962 | ) | (20,029 | ) | $ | 1,151,237 | 88,589 | ||||||||||||||||||
Class 2 | 42,572 | 3,274 | 328,996 | 26,334 | (424,524 | ) | (32,897 | ) | (52,956 | ) | (3,289 | ) | ||||||||||||||||||||
Class 4 | 105,759 | 8,137 | 7,693 | 611 | (18,601 | ) | (1,441 | ) | 94,851 | 7,307 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 1,134,499 | 86,401 | $ | 762,720 | 60,573 | $ | (704,087 | ) | (54,367 | ) | $ | 1,193,132 | 92,607 | ||||||||||||||||||
Global Growth and Income Fund | ||||||||||||||||||||||||||||||||
Sales1 | Reinvestments of dividends and distributions | Repurchases1 | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 133,943 | 8,899 | $ | 16,607 | 1,095 | $ | (345,498 | ) | (23,190 | ) | $ | (194,948 | ) | (13,196 | ) | ||||||||||||||||
Class 1A2 | 125 | 8 | 3 | — | 3 | (3 | ) | — | 3 | 125 | 8 | |||||||||||||||||||||
Class 2 | 25,134 | 1,709 | 56,976 | 3,780 | (236,596 | ) | (16,119 | ) | (154,486 | ) | (10,630 | ) | ||||||||||||||||||||
Class 4 | 63,660 | 4,175 | 1,883 | 123 | (6,203 | ) | (417 | ) | 59,340 | 3,881 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 222,862 | 14,791 | $ | 75,469 | 4,998 | $ | (588,300 | ) | (39,726 | ) | $ | (289,969 | ) | (19,937 | ) | ||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 292,208 | 23,201 | $ | 10,481 | 808 | $ | (49,576 | ) | (3,887 | ) | $ | 253,113 | 20,122 | ||||||||||||||||||
Class 2 | 25,520 | 2,043 | 25,283 | 1,955 | (199,986 | ) | (15,865 | ) | (149,183 | ) | (11,867 | ) | ||||||||||||||||||||
Class 4 | 12,357 | 989 | 257 | 20 | (2,230 | ) | (180 | ) | 10,384 | 829 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 330,085 | 26,233 | $ | 36,021 | 2,783 | $ | (251,792 | ) | (19,932 | ) | $ | 114,314 | 9,084 | ||||||||||||||||||
Growth-Income Fund | ||||||||||||||||||||||||||||||||
Sales1 | Reinvestments of dividends and distributions | Repurchases1 | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 1,521,886 | 32,100 | $ | 1,132,034 | 24,392 | $ | (1,241,004 | ) | (26,012 | ) | $ | 1,412,916 | 30,480 | ||||||||||||||||||
Class 1A2 | 2,070 | 43 | 40 | 1 | (24 | ) | (1 | ) | 2,086 | 43 | ||||||||||||||||||||||
Class 2 | 120,223 | 2,558 | 1,048,742 | 22,899 | (1,761,342 | ) | (37,375 | ) | (592,377 | ) | (11,918 | ) | ||||||||||||||||||||
Class 3 | 473 | 10 | 12,561 | 271 | (21,746 | ) | (457 | ) | (8,712 | ) | (176 | ) | ||||||||||||||||||||
Class 4 | 267,835 | 5,641 | 46,486 | 1,020 | (56,983 | ) | (1,217 | ) | 257,338 | 5,444 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 1,912,487 | 40,352 | $ | 2,239,863 | 48,583 | $ | (3,081,099 | ) | (65,062 | ) | $ | 1,071,251 | 23,873 | ||||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 1,364,357 | 31,261 | $ | 1,429,866 | 34,358 | $ | (830,642 | ) | (18,888 | ) | $ | 1,963,581 | 46,731 | ||||||||||||||||||
Class 2 | 142,903 | 3,288 | 1,580,603 | 38,422 | (1,561,195 | ) | (35,880 | ) | 162,311 | 5,830 | ||||||||||||||||||||||
Class 3 | 1,293 | 30 | 19,402 | 467 | (23,792 | ) | (543 | ) | (3,097 | ) | (46 | ) | ||||||||||||||||||||
Class 4 | 72,892 | 1,695 | 54,139 | 1,325 | (35,791 | ) | (829 | ) | 91,240 | 2,191 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 1,581,445 | 36,274 | $ | 3,084,010 | 74,572 | $ | (2,451,420 | ) | (56,140 | ) | $ | 2,214,035 | 54,706 |
See end of tables for footnotes.
American Funds Insurance Series | 179 |
International Growth and Income Fund
Sales1 | Reinvestments of dividends and distributions | Repurchases1 | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 186,307 | 11,140 | $ | 25,860 | 1,487 | $ | (101,536 | ) | (6,072 | ) | $ | 110,631 | 6,555 | ||||||||||||||||||
Class 1A2 | 2,100 | 121 | 14 | 1 | (1 | ) | — | 3 | 2,113 | 122 | ||||||||||||||||||||||
Class 2 | 8,391 | 510 | 5,714 | 329 | (34,542 | ) | (2,118 | ) | (20,437 | ) | (1,279 | ) | ||||||||||||||||||||
Class 4 | 19,465 | 1,164 | 1,184 | 69 | (3,332 | ) | (202 | ) | 17,317 | 1,031 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 216,263 | 12,935 | $ | 32,772 | 1,886 | $ | (139,411 | ) | (8,392 | ) | $ | 109,624 | 6,429 | ||||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 105,994 | 7,226 | $ | 26,726 | 1,853 | $ | (5,982 | ) | (396 | ) | $ | 126,738 | 8,683 | ||||||||||||||||||
Class 2 | 17,101 | 1,182 | 7,312 | 508 | (30,910 | ) | (2,088 | ) | (6,497 | ) | (398 | ) | ||||||||||||||||||||
Class 4 | 8,076 | 551 | 1,044 | 73 | (3,762 | ) | (258 | ) | 5,358 | 366 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 131,171 | 8,959 | $ | 35,082 | 2,434 | $ | (40,654 | ) | (2,742 | ) | $ | 125,599 | 8,651 | ||||||||||||||||||
Capital Income Builder | ||||||||||||||||||||||||||||||||
Sales1 | Reinvestments of dividends | Repurchases1 | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 84,130 | 8,355 | $ | 6,303 | 622 | $ | (9,923 | ) | (984 | ) | $ | 80,510 | 7,993 | ||||||||||||||||||
Class 1A2 | 1,245 | 122 | 8 | 1 | (365 | ) | (36 | ) | 888 | 87 | ||||||||||||||||||||||
Class 2 | 1,371 | 136 | 23 | 2 | (122 | ) | (12 | ) | 1,272 | 126 | ||||||||||||||||||||||
Class 4 | 66,028 | 6,590 | 7,676 | 760 | (19,222 | ) | (1,922 | ) | 54,482 | 5,428 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 152,774 | 15,203 | $ | 14,010 | 1,385 | $ | (29,632 | ) | (2,954 | ) | $ | 137,152 | 13,634 | ||||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 95,122 | 9,946 | $ | 4,372 | 458 | $ | (23,129 | ) | (2,439 | ) | $ | 76,365 | 7,965 | ||||||||||||||||||
Class 2 | 144 | 15 | 2 | — | (2 | ) | — | 144 | 15 | |||||||||||||||||||||||
Class 4 | 113,152 | 11,813 | 6,657 | 699 | (20,474 | ) | (2,162 | ) | 99,335 | 10,350 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 208,418 | 21,774 | $ | 11,031 | 1,157 | $ | (43,605 | ) | (4,601 | ) | $ | 175,844 | 18,330 | ||||||||||||||||||
Asset Allocation Fund | ||||||||||||||||||||||||||||||||
Sales1 | Reinvestments of dividends and distributions | Repurchases1 | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 1,929,702 | 84,102 | $ | 953,771 | 41,982 | $ | (641,572 | ) | (27,828 | ) | $ | 2,241,901 | 98,256 | ||||||||||||||||||
Class 1A2 | 4,261 | 184 | 121 | 5 | (253 | ) | (11 | ) | 4,129 | 178 | ||||||||||||||||||||||
Class 2 | 109,962 | 4,876 | 325,924 | 14,513 | (579,020 | ) | (25,433 | ) | (143,134 | ) | (6,044 | ) | ||||||||||||||||||||
Class 3 | 1,400 | 61 | 2,246 | 99 | (4,469 | ) | (195 | ) | (823 | ) | (35 | ) | ||||||||||||||||||||
Class 4 | 408,549 | 18,017 | 192,666 | 8,617 | (159,354 | ) | (7,104 | ) | 441,861 | 19,530 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 2,453,874 | 107,240 | $ | 1,474,728 | 65,216 | $ | (1,384,668 | ) | (60,571 | ) | $ | 2,543,934 | 111,885 | ||||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 1,419,998 | 67,404 | $ | 510,045 | 24,119 | $ | (436,287 | ) | (20,771 | ) | $ | 1,493,756 | 70,752 | ||||||||||||||||||
Class 2 | 190,550 | 9,074 | 201,323 | 9,626 | (504,479 | ) | (24,294 | ) | (112,606 | ) | (5,594 | ) | ||||||||||||||||||||
Class 3 | 672 | 32 | 1,439 | 68 | (4,926 | ) | (233 | ) | (2,815 | ) | (133 | ) | ||||||||||||||||||||
Class 4 | 385,933 | 18,332 | 100,264 | 4,812 | (163,695 | ) | (7,917 | ) | 322,502 | 15,227 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 1,997,153 | 94,842 | $ | 813,071 | 38,625 | $ | (1,109,387 | ) | (53,215 | ) | $ | 1,700,837 | 80,252 |
180 | American Funds Insurance Series |
Global Balanced Fund
Sales1 | Reinvestments of dividends and distributions | Repurchases1 | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 22,241 | 1,783 | $ | 3,607 | 285 | $ | (6,039 | ) | (501 | ) | $ | 19,809 | 1,567 | ||||||||||||||||||
Class 1A2 | 244 | 19 | 9 | 1 | — | 3 | — | 3 | 253 | 20 | ||||||||||||||||||||||
Class 2 | 16,382 | 1,346 | 7,928 | 628 | (20,169 | ) | (1,671 | ) | 4,141 | 303 | ||||||||||||||||||||||
Class 4 | 39,763 | 3,218 | 1,778 | 142 | (2,261 | ) | (182 | ) | 39,280 | 3,178 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 78,630 | 6,366 | $ | 13,322 | 1,056 | $ | (28,469 | ) | (2,354 | ) | $ | 63,483 | 5,068 | ||||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 20,046 | 1,826 | $ | 939 | 85 | $ | (6,690 | ) | (590 | ) | $ | 14,295 | 1,321 | ||||||||||||||||||
Class 2 | 22,939 | 2,066 | 2,226 | 201 | (22,938 | ) | (2,086 | ) | 2,227 | 181 | ||||||||||||||||||||||
Class 4 | 9,506 | 864 | 121 | 11 | (652 | ) | (59 | ) | 8,975 | 816 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 52,491 | 4,756 | $ | 3,286 | 297 | $ | (30,280 | ) | (2,735 | ) | $ | 25,497 | 2,318 | ||||||||||||||||||
Bond Fund | ||||||||||||||||||||||||||||||||
Sales1 | Reinvestments of dividends and distributions | Repurchases1 | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 967,669 | 88,718 | $ | 235,240 | 21,678 | $ | (1,624,503 | ) | (147,887 | ) | $ | (421,594 | ) | (37,491 | ) | ||||||||||||||||
Class 1A2 | 1,338 | 122 | 21 | 2 | (272 | ) | (25 | ) | 1,087 | 99 | ||||||||||||||||||||||
Class 2 | 138,965 | 12,898 | 134,455 | 12,545 | (273,010 | ) | (25,301 | ) | 410 | 142 | ||||||||||||||||||||||
Class 4 | 212,848 | 19,725 | 6,398 | 597 | (22,490 | ) | (2,080 | ) | 196,756 | 18,242 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 1,320,820 | 121,463 | $ | 376,114 | 34,822 | $ | (1,920,275 | ) | (175,293 | ) | $ | (223,341 | ) | (19,008 | ) | ||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 1,345,167 | 121,199 | $ | 148,075 | 13,631 | $ | (420,052 | ) | (38,234 | ) | $ | 1,073,190 | 96,596 | ||||||||||||||||||
Class 2 | 144,585 | 13,214 | 82,041 | 7,631 | (444,145 | ) | (40,888 | ) | (217,519 | ) | (20,043 | ) | ||||||||||||||||||||
Class 4 | 57,784 | 5,273 | 1,763 | 164 | (16,674 | ) | (1,523 | ) | 42,873 | 3,914 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 1,547,536 | 139,686 | $ | 231,879 | 21,426 | $ | (880,871 | ) | (80,645 | ) | $ | 898,544 | 80,467 | ||||||||||||||||||
Global Bond Fund | ||||||||||||||||||||||||||||||||
Sales1 | Reinvestments of dividends and distributions | Repurchases1 | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 177,200 | 15,155 | $ | 14,284 | 1,210 | $ | (100,697 | ) | (8,588 | ) | $ | 90,787 | 7,777 | ||||||||||||||||||
Class 1A2 | 74 | 6 | — | 3 | — | 3 | — | 3 | — | 3 | 74 | 6 | ||||||||||||||||||||
Class 2 | 45,841 | 3,978 | 11,132 | 952 | (79,734 | ) | (6,868 | ) | (22,761 | ) | (1,938 | ) | ||||||||||||||||||||
Class 4 | 20,651 | 1,777 | 197 | 17 | (2,949 | ) | (255 | ) | 17,899 | 1,539 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 243,766 | 20,916 | $ | 25,613 | 2,179 | $ | (183,380 | ) | (15,711 | ) | $ | 85,999 | 7,384 | ||||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 213,129 | 18,309 | $ | 10,956 | 974 | $ | (159,412 | ) | (13,652 | ) | $ | 64,673 | 5,631 | ||||||||||||||||||
Class 2 | 36,347 | 3,158 | 8,734 | 780 | (156,676 | ) | (13,741 | ) | (111,595 | ) | (9,803 | ) | ||||||||||||||||||||
Class 4 | 10,946 | 954 | 76 | 7 | (4,634 | ) | (404 | ) | 6,388 | 557 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 260,422 | 22,421 | $ | 19,766 | 1,761 | $ | (320,722 | ) | (27,797 | ) | $ | (40,534 | ) | (3,615 | ) |
See end of tables for footnotes.
American Funds Insurance Series | 181 |
High-Income Bond Fund
Sales1 | Reinvestments of dividends | Repurchases1 | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 43,584 | 4,162 | $ | 43,816 | 4,273 | $ | (422,269 | ) | (39,685 | ) | $ | (334,869 | ) | (31,250 | ) | ||||||||||||||||
Class 1A2 | 400 | 39 | 12 | 1 | (7 | ) | (1 | ) | 405 | 39 | ||||||||||||||||||||||
Class 2 | 15,931 | 1,540 | 51,640 | 5,121 | (92,969 | ) | (8,946 | ) | (25,398 | ) | (2,285 | ) | ||||||||||||||||||||
Class 3 | 397 | 38 | 805 | 78 | (1,921 | ) | (181 | ) | (719 | ) | (65 | ) | ||||||||||||||||||||
Class 4 | 84,996 | 7,657 | 1,981 | 182 | (72,820 | ) | (6,577 | ) | 14,157 | 1,262 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 145,308 | 13,436 | $ | 98,254 | 9,655 | $ | (589,986 | ) | (55,390 | ) | $ | (346,424 | ) | (32,299 | ) | ||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 69,042 | 6,945 | $ | 56,592 | 5,626 | $ | (291,328 | ) | (30,021 | ) | $ | (165,694 | ) | (17,450 | ) | ||||||||||||||||
Class 2 | 22,831 | 2,394 | 47,007 | 4,738 | (116,168 | ) | (11,943 | ) | (46,330 | ) | (4,811 | ) | ||||||||||||||||||||
Class 3 | 2,650 | 279 | 746 | 74 | (3,553 | ) | (365 | ) | (157 | ) | (12 | ) | ||||||||||||||||||||
Class 4 | 90,979 | 8,413 | 1,283 | 120 | (73,640 | ) | (6,754 | ) | 18,622 | 1,779 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 185,502 | 18,031 | $ | 105,628 | 10,558 | $ | (484,689 | ) | (49,083 | ) | $ | (193,559 | ) | (20,494 | ) | ||||||||||||||||
Mortgage Fund | ||||||||||||||||||||||||||||||||
Sales1 | Reinvestments of dividends and distributions | Repurchases1 | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 52,151 | 4,904 | $ | 5,982 | 566 | $ | (59,926 | ) | (5,621 | ) | $ | (1,793 | ) | (151 | ) | ||||||||||||||||
Class 1A2 | 109 | 10 | 2 | — | 3 | (6 | ) | — | 3 | 105 | 10 | |||||||||||||||||||||
Class 2 | 7,132 | 672 | 1,287 | 122 | (8,011 | ) | (755 | ) | 408 | 39 | ||||||||||||||||||||||
Class 4 | 8,522 | 808 | 204 | 20 | (4,876 | ) | (462 | ) | 3,850 | 366 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 67,914 | 6,394 | $ | 7,475 | 708 | $ | (72,819 | ) | (6,838 | ) | $ | 2,570 | 264 | ||||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 28,827 | 2,669 | $ | 7,933 | 749 | $ | (38,385 | ) | (3,569 | ) | $ | (1,625 | ) | (151 | ) | ||||||||||||||||
Class 2 | 18,388 | 1,714 | 1,683 | 159 | (15,825 | ) | (1,473 | ) | 4,246 | 400 | ||||||||||||||||||||||
Class 4 | 14,879 | 1,395 | 227 | 22 | (17,844 | ) | (1,676 | ) | (2,738 | ) | (259 | ) | ||||||||||||||||||||
Total net increase (decrease) | $ | 62,094 | 5,778 | $ | 9,843 | 930 | $ | (72,054 | ) | (6,718 | ) | $ | (117 | ) | (10 | ) | ||||||||||||||||
Ultra-Short Bond Fund | ||||||||||||||||||||||||||||||||
Sales1 | Reinvestments of dividends | Repurchases1 | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 14,832 | 1,312 | $ | 184 | 16 | $ | (15,478 | ) | (1,371 | ) | $ | (462 | ) | (43 | ) | ||||||||||||||||
Class 1A2 | 10 | 1 | — | 3 | — | 3 | — | — | 10 | 1 | ||||||||||||||||||||||
Class 2 | 62,145 | 5,646 | 697 | 63 | (111,628 | ) | (10,146 | ) | (48,786 | ) | (4,437 | ) | ||||||||||||||||||||
Class 3 | 1,448 | 130 | 15 | 2 | (1,233 | ) | (111 | ) | 230 | 21 | ||||||||||||||||||||||
Class 4 | 16,767 | 1,507 | 10 | 1 | (14,407 | ) | (1,294 | ) | 2,370 | 214 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 95,202 | 8,596 | $ | 906 | 82 | $ | (142,746 | ) | (12,922 | ) | $ | (46,638 | ) | (4,244 | ) | ||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 15,562 | 1,382 | $ | — | — | $ | (17,527 | ) | (1,556 | ) | $ | (1,965 | ) | (174 | ) | ||||||||||||||||
Class 2 | 128,178 | 11,656 | — | — | (133,142 | ) | (12,108 | ) | (4,964 | ) | (452 | ) | ||||||||||||||||||||
Class 3 | 2,647 | 238 | — | — | (4,768 | ) | (429 | ) | (2,121 | ) | (191 | ) | ||||||||||||||||||||
Class 4 | 18,372 | 1,649 | — | — | (21,287 | ) | (1,911 | ) | (2,915 | ) | (262 | ) | ||||||||||||||||||||
Total net increase (decrease) | $ | 164,759 | 14,925 | $ | — | — | $ | (176,724 | ) | (16,004 | ) | $ | (11,965 | ) | (1,079 | ) |
182 | American Funds Insurance Series |
U.S. Government/AAA-Rated Securities Fund
Sales1 | Reinvestments of dividends and distributions | Repurchases1 | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 291,253 | 23,702 | $ | 23,401 | 1,927 | $ | (226,514 | ) | (18,425 | ) | $ | 88,140 | 7,204 | ||||||||||||||||||
Class 1A2 | 1,016 | 83 | 2 | — | 3 | (714 | ) | (58 | ) | 304 | 25 | |||||||||||||||||||||
Class 2 | 49,410 | 4,091 | 19,498 | 1,621 | (103,407 | ) | (8,550 | ) | (34,499 | ) | (2,838 | ) | ||||||||||||||||||||
Class 3 | 1,050 | 86 | 141 | 12 | (1,501 | ) | (123 | ) | (310 | ) | (25 | ) | ||||||||||||||||||||
Class 4 | 27,872 | 2,299 | 663 | 55 | (23,884 | ) | (1,976 | ) | 4,651 | 378 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 370,601 | 30,261 | $ | 43,705 | 3,615 | $ | (356,020 | ) | (29,132 | ) | $ | 58,286 | 4,744 | ||||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 111,564 | 8,949 | $ | 52,411 | 4,280 | $ | (89,943 | ) | (7,217 | ) | $ | 74,032 | 6,012 | ||||||||||||||||||
Class 2 | 65,544 | 5,287 | 52,257 | 4,303 | (160,525 | ) | (13,019 | ) | (42,724 | ) | (3,429 | ) | ||||||||||||||||||||
Class 3 | 1,568 | 125 | 368 | 30 | (2,199 | ) | (176 | ) | (263 | ) | (21 | ) | ||||||||||||||||||||
Class 4 | 58,794 | 4,745 | 1,986 | 163 | (48,646 | ) | (3,930 | ) | 12,134 | 978 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 237,470 | 19,106 | $ | 107,022 | 8,776 | $ | (301,313 | ) | (24,342 | ) | $ | 43,179 | 3,540 | ||||||||||||||||||
Managed Risk Growth Fund | ||||||||||||||||||||||||||||||||
Sales1 | Reinvestments of dividends and distributions | Repurchases1 | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 836 | 70 | $ | 29 | 2 | $ | (230 | ) | (19 | ) | $ | 635 | 53 | ||||||||||||||||||
Class P2 | 46,748 | 3,893 | 4,847 | 408 | (16,010 | ) | (1,330 | ) | 35,585 | 2,971 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 47,584 | 3,963 | $ | 4,876 | 410 | $ | (16,240 | ) | (1,349 | ) | $ | 36,220 | 3,024 | ||||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 492 | 46 | $ | 60 | 6 | $ | (168 | ) | (16 | ) | $ | 384 | 36 | ||||||||||||||||||
Class P2 | 63,452 | 5,983 | 15,282 | 1,507 | (14,771 | ) | (1,388 | ) | 63,963 | 6,102 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 63,944 | 6,029 | $ | 15,342 | 1,513 | $ | (14,939 | ) | (1,404 | ) | $ | 64,347 | 6,138 | ||||||||||||||||||
Managed Risk International Fund | ||||||||||||||||||||||||||||||||
Sales1 | Reinvestments of dividends and distributions | Repurchases1 | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 130 | 14 | $ | 2 | — | 3 | $ | (166 | ) | (17 | ) | $ | (34 | ) | (3 | ) | |||||||||||||||
Class P2 | 30,462 | 3,002 | 2,301 | 230 | (9,880 | ) | (967 | ) | 22,883 | 2,265 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 30,592 | 3,016 | $ | 2,303 | 230 | $ | (10,046 | ) | (984 | ) | $ | 22,849 | 2,262 | ||||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 41 | 4 | $ | 6 | 1 | $ | (53 | ) | (6 | ) | $ | (6 | ) | (1 | ) | ||||||||||||||||
Class P2 | 25,545 | 2,830 | 3,022 | 346 | (8,610 | ) | (948 | ) | 19,957 | 2,228 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 25,586 | 2,834 | $ | 3,028 | 347 | $ | (8,663 | ) | (954 | ) | $ | 19,951 | 2,227 |
See end of tables for footnotes.
American Funds Insurance Series | 183 |
Managed Risk Blue Chip Income and Growth Fund
Sales1 | Reinvestments of dividends and distributions | Repurchases1 | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 59 | 5 | $ | 7 | 1 | $ | (136 | ) | (11 | ) | $ | (70 | ) | (5 | ) | ||||||||||||||||
Class P2 | 83,072 | 6,949 | 10,722 | 898 | (56,067 | ) | (4,624 | ) | 37,727 | 3,223 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 83,131 | 6,954 | $ | 10,729 | 899 | $ | (56,203 | ) | (4,635 | ) | $ | 37,657 | 3,218 | ||||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 60 | 6 | $ | 13 | 1 | $ | (20 | ) | (2 | ) | $ | 53 | 5 | ||||||||||||||||||
Class P2 | 139,800 | 12,424 | 9,285 | 848 | (10,609 | ) | (952 | ) | 138,476 | 12,320 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 139,860 | 12,430 | $ | 9,298 | 849 | $ | (10,629 | ) | (954 | ) | $ | 138,529 | 12,325 | ||||||||||||||||||
Managed Risk Growth-Income Fund | ||||||||||||||||||||||||||||||||
Sales1 | Reinvestments of dividends and distributions | Repurchases1 | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 1,093 | 92 | $ | 92 | 8 | $ | (154 | ) | (13 | ) | $ | 1,031 | 87 | ||||||||||||||||||
Class P2 | 27,997 | 2,382 | 9,501 | 835 | (15,095 | ) | (1,278 | ) | 22,403 | 1,939 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 29,090 | 2,474 | $ | 9,593 | 843 | $ | (15,249 | ) | (1,291 | ) | $ | 23,434 | 2,026 | ||||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 746 | 68 | $ | 79 | 7 | $ | (343 | ) | (31 | ) | $ | 482 | 44 | ||||||||||||||||||
Class P2 | 41,955 | 3,864 | 10,093 | 964 | (13,341 | ) | (1,227 | ) | 38,707 | 3,601 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 42,701 | 3,932 | $ | 10,172 | 971 | $ | (13,684 | ) | (1,258 | ) | $ | 39,189 | 3,645 | ||||||||||||||||||
Managed Risk Asset Allocation Fund | ||||||||||||||||||||||||||||||||
Sales1 | Reinvestments of dividends and distributions | Repurchases1 | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 264,545 | 20,631 | $ | 25,264 | 1,986 | $ | (25,397 | ) | (1,973 | ) | $ | 264,412 | 20,644 | ||||||||||||||||||
Class P2 | 253,137 | 19,936 | 45,200 | 3,559 | (153,999 | ) | (11,957 | ) | 144,338 | 11,538 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 517,682 | 40,567 | $ | 70,464 | 5,545 | $ | (179,396 | ) | (13,930 | ) | $ | 408,750 | 32,182 | ||||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 443,537 | 37,855 | $ | 45,747 | 3,957 | $ | (14,583 | ) | (1,270 | ) | $ | 474,701 | 40,542 | ||||||||||||||||||
Class P2 | 369,887 | 31,502 | 92,019 | 7,990 | (131,962 | ) | (11,243 | ) | 329,944 | 28,249 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 813,424 | 69,357 | $ | 137,766 | 11,947 | $ | (146,545 | ) | (12,513 | ) | $ | 804,645 | 68,791 |
1 | Includes exchanges between share classes of the fund. |
2 | Class 1A shares began investment operations on January 6, 2017. |
3 | Amount less than one thousand. |
184 | American Funds Insurance Series |
10. Investment transactions and other disclosures
The following tables present additional information for each of the funds for the year ended December 31, 2017 (dollars in thousands):
Global Growth Fund | Global Small Capitalization Fund | Growth Fund | International Fund | New World Fund | Blue Chip Income and Growth Fund | |||||||||||||||||||
Purchases of investment securities* | $ | 1,709,869 | $ | 1,284,211 | $ | 5,381,976 | $ | 2,353,764 | $ | 1,716,759 | $ | 2,884,969 | ||||||||||||
Sales of investment securities* | 2,095,865 | 1,778,593 | 8,015,869 | 2,597,007 | 1,716,842 | 2,992,025 | ||||||||||||||||||
Non-U.S. taxes paid on interest income | — | — | — | (11 | ) | 37 | — | |||||||||||||||||
Non-U.S. taxes paid on realized gains | 903 | 5 | — | 527 | 13 | — | ||||||||||||||||||
Non-U.S. taxes provided on unrealized gains | 4,211 | 502 | — | 3,115 | 16,043 | — | ||||||||||||||||||
Dividends from affiliated issuers | — | 1,346 | — | — | — | — | ||||||||||||||||||
Net realized (loss) gain from affiliated issuers | — | (3,537 | ) | — | — | — | — | |||||||||||||||||
Global Growth and Income Fund | Growth- Income Fund | International Growth and Income Fund | Capital Income Builder | Asset Allocation Fund | Global Balanced Fund | |||||||||||||||||||
Purchases of investment securities* | $ | 801,855 | $ | 7,282,680 | $ | 737,253 | $ | 448,150 | $ | 17,391,526 | $ | 152,879 | ||||||||||||
Sales of investment securities* | 1,084,942 | 7,556,491 | 619,618 | 379,687 | 16,903,042 | 107,452 | ||||||||||||||||||
Non-U.S. taxes paid on interest income | — | — | 3 | — | — | 14 | ||||||||||||||||||
Non-U.S. taxes paid on realized gains | 763 | 10 | 99 | — | 102 | 41 | ||||||||||||||||||
Non-U.S. taxes provided on unrealized gains | 2,538 | 1,737 | 1,168 | — | 108 | 140 | ||||||||||||||||||
Bond Fund | Global Bond Fund | High- Income Bond Fund | Mortgage Fund | Ultra-Short Bond Fund | U.S. Government/ AAA-Rated Securities Fund | |||||||||||||||||||
Purchases of investment securities* | $ | 41,383,822 | $ | 1,826,715 | $ | 1,183,191 | $ | 2,202,832 | $ | — | $ | 13,557,389 | ||||||||||||
Sales of investment securities* | 40,443,825 | 1,968,533 | 1,483,385 | 2,197,044 | — | 13,732,439 | ||||||||||||||||||
Non-U.S. taxes paid on interest income | 1 | 390 | (2 | ) | — | — | — | |||||||||||||||||
Non-U.S. taxes paid on realized gains | — | 564 | — | — | — | — | ||||||||||||||||||
Non-U.S. taxes provided on unrealized gains | 10 | 188 | 5 | — | — | — | ||||||||||||||||||
Managed Risk Growth Fund | Managed Risk International Fund | Managed Risk Blue Chip Income and Growth Fund | Managed Risk Growth- Income Fund | Managed Risk Asset Allocation Fund | ||||||||||||||||||||
Purchases of investment securities* | $ | 110,122 | $ | 52,041 | $ | 150,702 | $ | 71,239 | $ | 623,590 | ||||||||||||||
Sales of investment securities* | 58,914 | 29,432 | 107,026 | 45,175 | 44,905 | |||||||||||||||||||
Dividends from affiliated issuers | 2,295 | 2,012 | 7,115 | 3,114 | 70,949 | |||||||||||||||||||
Net realized (loss) gain from affiliated issuers | (2,470 | ) | (586 | ) | 229 | (2,961 | ) | 4,957 |
* | Excludes short-term securities and U.S. government obligations, if any. |
American Funds Insurance Series | 185 |
11. Ownership concentration
At December 31, 2017, American Funds Insurance Series - Managed Risk Growth and Income Portfolio, American Funds Insurance Series - Managed Risk Global Allocation Portfolio and Managed Risk Asset Allocation Fund held 36%, 18% and 16% of the outstanding shares of Capital Income Builder, Global Balanced Fund and Asset Allocation Fund, respectively.
186 | American Funds Insurance Series |
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: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 24.05 | $ | .26 | $ | 7.30 | $ | 7.56 | $ | (.26 | ) | $ | (.84 | ) | $ | (1.10 | ) | $ | 30.51 | 31.80 | % | $ | 2,010 | .55 | % | .94 | % | |||||||||||||||||||||
12/31/16 | 26.39 | .25 | (.14 | ) | .11 | (.29 | ) | (2.16 | ) | (2.45 | ) | 24.05 | .87 | 1,630 | .56 | 1.00 | ||||||||||||||||||||||||||||||||
12/31/15 | 27.48 | .25 | 1.80 | 2.05 | (.35 | ) | (2.79 | ) | (3.14 | ) | 26.39 | 7.24 | 1,626 | .55 | .90 | |||||||||||||||||||||||||||||||||
12/31/14 | 30.11 | .31 | 2 | .40 | .71 | (.40 | ) | (2.94 | ) | (3.34 | ) | 27.48 | 2.52 | 1,558 | .55 | 1.08 | 2 | |||||||||||||||||||||||||||||||
12/31/13 | 23.58 | .31 | 6.62 | 6.93 | (.40 | ) | — | (.40 | ) | 30.11 | 29.51 | 1,508 | .55 | 1.17 | ||||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/173,4 | 24.50 | .11 | 6.94 | 7.05 | (.25 | ) | (.84 | ) | (1.09 | ) | 30.46 | 29.13 | 5 | 2 | .80 | 6 | .39 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 23.85 | .19 | 7.23 | 7.42 | (.19 | ) | (.84 | ) | (1.03 | ) | 30.24 | 31.47 | 4,012 | .80 | .69 | |||||||||||||||||||||||||||||||||
12/31/16 | 26.19 | .18 | (.14 | ) | .04 | (.22 | ) | (2.16 | ) | (2.38 | ) | 23.85 | .62 | 3,483 | .81 | .76 | ||||||||||||||||||||||||||||||||
12/31/15 | 27.30 | .18 | 1.78 | 1.96 | (.28 | ) | (2.79 | ) | (3.07 | ) | 26.19 | 6.94 | 3,817 | .80 | .66 | |||||||||||||||||||||||||||||||||
12/31/14 | 29.92 | .24 | 2 | .41 | .65 | (.33 | ) | (2.94 | ) | (3.27 | ) | 27.30 | 2.31 | 3,992 | .80 | .85 | 2 | |||||||||||||||||||||||||||||||
12/31/13 | 23.44 | .24 | 6.58 | 6.82 | (.34 | ) | — | (.34 | ) | 29.92 | 29.18 | 4,379 | .80 | .91 | ||||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 23.81 | .10 | 7.22 | 7.32 | (.16 | ) | (.84 | ) | (1.00 | ) | 30.13 | 31.11 | 211 | 1.05 | .37 | |||||||||||||||||||||||||||||||||
12/31/16 | 26.16 | .12 | (.14 | ) | (.02 | ) | (.17 | ) | (2.16 | ) | (2.33 | ) | 23.81 | .37 | 94 | 1.06 | .50 | |||||||||||||||||||||||||||||||
12/31/15 | 27.34 | .09 | 1.81 | 1.90 | (.29 | ) | (2.79 | ) | (3.08 | ) | 26.16 | 6.69 | 91 | 1.05 | .34 | |||||||||||||||||||||||||||||||||
12/31/14 | 30.07 | .07 | 2 | .50 | .57 | (.36 | ) | (2.94 | ) | (3.30 | ) | 27.34 | 2.01 | 19 | 1.05 | .26 | 2 | |||||||||||||||||||||||||||||||
12/31/13 | 23.58 | .13 | 6.77 | 6.90 | (.41 | ) | — | (.41 | ) | 30.07 | 29.36 | 1 | 1.06 | .43 | ||||||||||||||||||||||||||||||||||
Global Small Capitalization Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 20.24 | $ | .12 | $ | 5.17 | $ | 5.29 | $ | (.15 | ) | $ | — | $ | (.15 | ) | $ | 25.38 | 26.22 | % | $ | 1,639 | .73 | % | .54 | % | ||||||||||||||||||||||
12/31/16 | 24.41 | .12 | .17 | .29 | (.11 | ) | (4.35 | ) | (4.46 | ) | 20.24 | 2.35 | 1,532 | .74 | .57 | |||||||||||||||||||||||||||||||||
12/31/15 | 26.09 | .04 | .36 | .40 | — | (2.08 | ) | (2.08 | ) | 24.41 | .50 | 1,706 | .73 | .15 | ||||||||||||||||||||||||||||||||||
12/31/14 | 25.69 | .09 | .52 | .61 | (.09 | ) | (.12 | ) | (.21 | ) | 26.09 | 2.36 | 1,411 | .74 | .34 | |||||||||||||||||||||||||||||||||
12/31/13 | 20.16 | .04 | 5.70 | 5.74 | (.21 | ) | — | (.21 | ) | 25.69 | 28.60 | 1,241 | .74 | .17 | ||||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/173,4 | 20.70 | .08 | 4.71 | 4.79 | (.13 | ) | — | (.13 | ) | 25.36 | 23.19 | 5 | — | 7 | .96 | 6 | .35 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 19.72 | .06 | 5.04 | 5.10 | (.10 | ) | — | (.10 | ) | 24.72 | 25.89 | 2,551 | .98 | .27 | ||||||||||||||||||||||||||||||||||
12/31/16 | 23.90 | .07 | .15 | .22 | (.05 | ) | (4.35 | ) | (4.40 | ) | 19.72 | 2.10 | 2,303 | .99 | .31 | |||||||||||||||||||||||||||||||||
12/31/15 | 25.64 | (.03 | ) | .37 | .34 | — | (2.08 | ) | (2.08 | ) | 23.90 | .27 | 2,492 | .98 | (.10 | ) | ||||||||||||||||||||||||||||||||
12/31/14 | 25.25 | .03 | .51 | .54 | (.03 | ) | (.12 | ) | (.15 | ) | 25.64 | 2.12 | 2,738 | .99 | .10 | |||||||||||||||||||||||||||||||||
12/31/13 | 19.86 | (.01 | ) | 5.60 | 5.59 | (.20 | ) | — | (.20 | ) | 25.25 | 28.28 | 2,955 | .99 | (.05 | ) | ||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 19.91 | — | 8 | 5.09 | 5.09 | (.09 | ) | — | (.09 | ) | 24.91 | 25.62 | 125 | 1.23 | — | 9 | ||||||||||||||||||||||||||||||||
12/31/16 | 24.11 | .01 | .16 | .17 | (.02 | ) | (4.35 | ) | (4.37 | ) | 19.91 | 1.85 | 42 | 1.24 | .03 | |||||||||||||||||||||||||||||||||
12/31/15 | 25.92 | (.10 | ) | .37 | .27 | — | (2.08 | ) | (2.08 | ) | 24.11 | (.02 | ) | 34 | 1.23 | (.37 | ) | |||||||||||||||||||||||||||||||
12/31/14 | 25.57 | (.05 | ) | .54 | .49 | (.02 | ) | (.12 | ) | (.14 | ) | 25.92 | 1.88 | 12 | 1.24 | (.17 | ) | |||||||||||||||||||||||||||||||
12/31/13 | 20.16 | (.12 | ) | 5.74 | 5.62 | (.21 | ) | — | (.21 | ) | 25.57 | 28.01 | 4 | 1.24 | (.50 | ) |
See end of tables for footnotes.
American Funds Insurance Series | 187 |
Financial highlights (continued)
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
Growth Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 67.29 | $ | .55 | $ | 17.89 | $ | 18.44 | $ | (.55 | ) | $ | (7.33 | ) | $ | (7.88 | ) | $ | 77.85 | 28.62 | % | $ | 8,100 | .35 | % | .75 | % | |||||||||||||||||||||
12/31/16 | 68.02 | .67 | 5.40 | 6.07 | (.67 | ) | (6.13 | ) | (6.80 | ) | 67.29 | 9.77 | 6,931 | .35 | 1.03 | |||||||||||||||||||||||||||||||||
12/31/15 | 80.15 | .64 | 5.08 | 5.72 | (.61 | ) | (17.24 | ) | (17.85 | ) | 68.02 | 7.12 | 6,796 | .35 | .87 | |||||||||||||||||||||||||||||||||
12/31/14 | 78.54 | .88 | 2 | 5.79 | 6.67 | (1.16 | ) | (3.90 | ) | (5.06 | ) | 80.15 | 8.78 | 7,118 | .35 | 1.12 | 2 | |||||||||||||||||||||||||||||||
12/31/13 | 60.90 | .64 | 17.84 | 18.48 | (.84 | ) | — | (.84 | ) | 78.54 | 30.43 | 7,003 | .35 | .93 | ||||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/173,4 | 68.84 | .35 | 16.38 | 16.73 | (.50 | ) | (7.33 | ) | (7.83 | ) | 77.74 | 25.47 | 5 | 3 | .59 | 6 | .47 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 66.92 | .37 | 17.76 | 18.13 | (.37 | ) | (7.33 | ) | (7.70 | ) | 77.35 | 28.28 | 15,716 | .60 | .50 | |||||||||||||||||||||||||||||||||
12/31/16 | 67.69 | .51 | 5.36 | 5.87 | (.51 | ) | (6.13 | ) | (6.64 | ) | 66.92 | 9.49 | 13,978 | .60 | .78 | |||||||||||||||||||||||||||||||||
12/31/15 | 79.84 | .46 | 5.06 | 5.52 | (.43 | ) | (17.24 | ) | (17.67 | ) | 67.69 | 6.86 | 14,414 | .60 | .62 | |||||||||||||||||||||||||||||||||
12/31/14 | 77.94 | .68 | 2 | 5.75 | 6.43 | (.63 | ) | (3.90 | ) | (4.53 | ) | 79.84 | 8.51 | 15,413 | .60 | .87 | 2 | |||||||||||||||||||||||||||||||
12/31/13 | 60.45 | .47 | 17.68 | 18.15 | (.66 | ) | — | (.66 | ) | 77.94 | 30.11 | 16,334 | .60 | .68 | ||||||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 67.67 | .42 | 17.98 | 18.40 | (.42 | ) | (7.33 | ) | (7.75 | ) | 78.32 | 28.39 | 212 | .53 | .57 | |||||||||||||||||||||||||||||||||
12/31/16 | 68.37 | .56 | 5.42 | 5.98 | (.55 | ) | (6.13 | ) | (6.68 | ) | 67.67 | 9.56 | 183 | .53 | .85 | |||||||||||||||||||||||||||||||||
12/31/15 | 80.47 | .51 | 5.11 | 5.62 | (.48 | ) | (17.24 | ) | (17.72 | ) | 68.37 | 6.92 | 194 | .53 | .69 | |||||||||||||||||||||||||||||||||
12/31/14 | 78.62 | .74 | 2 | 5.79 | 6.53 | (.78 | ) | (3.90 | ) | (4.68 | ) | 80.47 | 8.58 | 208 | .53 | .94 | 2 | |||||||||||||||||||||||||||||||
12/31/13 | 60.97 | .52 | 17.84 | 18.36 | (.71 | ) | — | (.71 | ) | 78.62 | 30.20 | 216 | .53 | .75 | ||||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 66.41 | .18 | 17.61 | 17.79 | (.31 | ) | (7.33 | ) | (7.64 | ) | 76.56 | 27.99 | 954 | .85 | .25 | |||||||||||||||||||||||||||||||||
12/31/16 | 67.26 | .34 | 5.32 | 5.66 | (.38 | ) | (6.13 | ) | (6.51 | ) | 66.41 | 9.22 | 458 | .85 | .53 | |||||||||||||||||||||||||||||||||
12/31/15 | 79.74 | .29 | 5.02 | 5.31 | (.55 | ) | (17.24 | ) | (17.79 | ) | 67.26 | 6.59 | 394 | .85 | .42 | |||||||||||||||||||||||||||||||||
12/31/14 | 78.32 | .37 | 2 | 5.87 | 6.24 | (.92 | ) | (3.90 | ) | (4.82 | ) | 79.74 | 8.25 | 24 | .85 | .47 | 2 | |||||||||||||||||||||||||||||||
12/31/13 | 60.90 | .29 | 17.90 | 18.19 | (.77 | ) | — | (.77 | ) | 78.32 | 29.96 | 5 | .85 | .40 | ||||||||||||||||||||||||||||||||||
International Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 16.82 | $ | .26 | $ | 5.16 | $ | 5.42 | $ | (.30 | ) | $ | (.23 | ) | $ | (.53 | ) | $ | 21.71 | 32.46 | % | $ | 5,014 | .53 | % | 1.33 | % | |||||||||||||||||||||
12/31/16 | 18.08 | .27 | .30 | .57 | (.28 | ) | (1.55 | ) | (1.83 | ) | 16.82 | 3.78 | 3,652 | .54 | 1.57 | |||||||||||||||||||||||||||||||||
12/31/15 | 20.35 | .29 | (1.03 | ) | (.74 | ) | (.35 | ) | (1.18 | ) | (1.53 | ) | 18.08 | (4.25 | ) | 3,427 | .54 | 1.41 | ||||||||||||||||||||||||||||||
12/31/14 | 21.22 | .30 | (.81 | ) | (.51 | ) | (.36 | ) | — | (.36 | ) | 20.35 | (2.41 | ) | 3,282 | .54 | 1.43 | |||||||||||||||||||||||||||||||
12/31/13 | 17.68 | .27 | 3.59 | 3.86 | (.32 | ) | — | (.32 | ) | 21.22 | 21.91 | 3,324 | .54 | 1.41 | ||||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/173,4 | 17.17 | .09 | 4.93 | 5.02 | (.29 | ) | (.23 | ) | (.52 | ) | 21.67 | 29.46 | 5 | 2 | .77 | 6 | .43 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 16.76 | .22 | 5.13 | 5.35 | (.25 | ) | (.23 | ) | (.48 | ) | 21.63 | 32.14 | 4,422 | .78 | 1.10 | |||||||||||||||||||||||||||||||||
12/31/16 | 18.02 | .23 | .30 | .53 | (.24 | ) | (1.55 | ) | (1.79 | ) | 16.76 | 3.53 | 3,710 | .79 | 1.35 | |||||||||||||||||||||||||||||||||
12/31/15 | 20.29 | .24 | (1.03 | ) | (.79 | ) | (.30 | ) | (1.18 | ) | (1.48 | ) | 18.02 | (4.53 | ) | 3,978 | .79 | 1.17 | ||||||||||||||||||||||||||||||
12/31/14 | 21.15 | .25 | (.81 | ) | (.56 | ) | (.30 | ) | — | (.30 | ) | 20.29 | (2.65 | ) | 4,374 | .79 | 1.19 | |||||||||||||||||||||||||||||||
12/31/13 | 17.62 | .22 | 3.58 | 3.80 | (.27 | ) | — | (.27 | ) | 21.15 | 21.64 | 5,916 | .79 | 1.15 | ||||||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 16.85 | .23 | 5.17 | 5.40 | (.27 | ) | (.23 | ) | (.50 | ) | 21.75 | 32.23 | 31 | .71 | 1.17 | |||||||||||||||||||||||||||||||||
12/31/16 | 18.11 | .24 | .30 | .54 | (.25 | ) | (1.55 | ) | (1.80 | ) | 16.85 | 3.57 | 27 | .72 | 1.42 | |||||||||||||||||||||||||||||||||
12/31/15 | 20.38 | .25 | (1.03 | ) | (.78 | ) | (.31 | ) | (1.18 | ) | (1.49 | ) | 18.11 | (4.44 | ) | 32 | .72 | 1.24 | ||||||||||||||||||||||||||||||
12/31/14 | 21.24 | .27 | (.82 | ) | (.55 | ) | (.31 | ) | — | (.31 | ) | 20.38 | (2.56 | ) | 38 | .72 | 1.28 | |||||||||||||||||||||||||||||||
12/31/13 | 17.70 | .23 | 3.59 | 3.82 | (.28 | ) | — | (.28 | ) | 21.24 | 21.67 | 46 | .72 | 1.22 | ||||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 16.64 | .11 | 5.16 | 5.27 | (.26 | ) | (.23 | ) | (.49 | ) | 21.42 | 31.89 | 289 | 1.03 | .55 | |||||||||||||||||||||||||||||||||
12/31/16 | 17.93 | .18 | .29 | .47 | (.21 | ) | (1.55 | ) | (1.76 | ) | 16.64 | 3.21 | 66 | 1.04 | 1.03 | |||||||||||||||||||||||||||||||||
12/31/15 | 20.23 | .17 | (1.00 | ) | (.83 | ) | (.29 | ) | (1.18 | ) | (1.47 | ) | 17.93 | (4.75 | ) | 46 | 1.04 | .88 | ||||||||||||||||||||||||||||||
12/31/14 | 21.16 | .07 | (.68 | ) | (.61 | ) | (.32 | ) | — | (.32 | ) | 20.23 | (2.88 | ) | 18 | 1.04 | .31 | |||||||||||||||||||||||||||||||
12/31/13 | 17.68 | (.01 | ) | 3.79 | 3.78 | (.30 | ) | — | (.30 | ) | 21.16 | 21.48 | 2 | 1.04 | (.07 | ) |
188 | 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 asset | ||||||||||||||||||||||||||||||||||||
New World Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 19.72 | $ | .26 | $ | 5.59 | $ | 5.85 | $ | (.27 | ) | $ | — | $ | (.27 | ) | $ | 25.30 | 29.73 | % | $ | 2,050 | .77 | % | 1.14 | % | ||||||||||||||||||||||
12/31/16 | 18.87 | .24 | .81 | 1.05 | (.20 | ) | — | (.20 | ) | 19.72 | 5.59 | 1,743 | .78 | 1.25 | ||||||||||||||||||||||||||||||||||
12/31/15 | 20.72 | .19 | (.71 | ) | (.52 | ) | (.17 | ) | (1.16 | ) | (1.33 | ) | 18.87 | (2.96 | ) | 1,562 | .79 | .92 | ||||||||||||||||||||||||||||||
12/31/14 | 25.08 | .29 | 2 | (1.92 | ) | (1.63 | ) | (.29 | ) | (2.44 | ) | (2.73 | ) | 20.72 | (7.63 | ) | 1,433 | .78 | 1.23 | 2 | ||||||||||||||||||||||||||||
12/31/13 | 22.93 | .34 | 2.31 | 2.65 | (.39 | ) | (.11 | ) | (.50 | ) | 25.08 | 11.66 | 1,388 | .78 | 1.45 | |||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/173,4 | 20.14 | .13 | 5.24 | 5.37 | (.26 | ) | — | (.26 | ) | 25.25 | 26.72 | 5 | 1 | 1.00 | 6 | .53 | 6 | |||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 19.54 | .20 | 5.55 | 5.75 | (.22 | ) | — | (.22 | ) | 25.07 | 29.44 | 1,055 | 1.02 | .89 | ||||||||||||||||||||||||||||||||||
12/31/16 | 18.71 | .19 | .79 | .98 | (.15 | ) | — | (.15 | ) | 19.54 | 5.26 | 911 | 1.03 | 1.00 | ||||||||||||||||||||||||||||||||||
12/31/15 | 20.54 | .14 | (.69 | ) | (.55 | ) | (.12 | ) | (1.16 | ) | (1.28 | ) | 18.71 | (3.14 | ) | 961 | 1.04 | .68 | ||||||||||||||||||||||||||||||
12/31/14 | 24.88 | .24 | 2 | (1.91 | ) | (1.67 | ) | (.23 | ) | (2.44 | ) | (2.67 | ) | 20.54 | (7.87 | ) | 1,084 | 1.03 | 1.01 | 2 | ||||||||||||||||||||||||||||
12/31/13 | 22.75 | .28 | 2.29 | 2.57 | (.33 | ) | (.11 | ) | (.44 | ) | 24.88 | 11.38 | 1,307 | 1.03 | 1.22 | |||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 19.51 | .14 | 5.52 | 5.66 | (.18 | ) | — | (.18 | ) | 24.99 | 29.06 | 427 | 1.27 | .61 | ||||||||||||||||||||||||||||||||||
12/31/16 | 18.69 | .14 | .80 | .94 | (.12 | ) | — | (.12 | ) | 19.51 | 5.04 | 240 | 1.28 | .75 | ||||||||||||||||||||||||||||||||||
12/31/15 | 20.56 | .08 | (.68 | ) | (.60 | ) | (.11 | ) | (1.16 | ) | (1.27 | ) | 18.69 | (3.37 | ) | 171 | 1.29 | .39 | ||||||||||||||||||||||||||||||
12/31/14 | 24.99 | .09 | 2 | (1.83 | ) | (1.74 | ) | (.25 | ) | (2.44 | ) | (2.69 | ) | 20.56 | (8.13 | ) | 64 | 1.28 | .40 | 2 | ||||||||||||||||||||||||||||
12/31/13 | 22.93 | .14 | 2.41 | 2.55 | (.38 | ) | (.11 | ) | (.49 | ) | 24.99 | 11.20 | 8 | 1.29 | .56 | |||||||||||||||||||||||||||||||||
Blue Chip Income and Growth Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 13.53 | $ | .32 | $ | 1.96 | $ | 2.28 | $ | (.32 | ) | $ | (.53 | ) | $ | (.85 | ) | $ | 14.96 | 17.30 | % | $ | 5,581 | .41 | % | 2.27 | % | |||||||||||||||||||||
12/31/16 | 12.62 | .31 | 1.97 | 2.28 | (.29 | ) | (1.08 | ) | (1.37 | ) | 13.53 | 19.06 | 5,099 | .41 | 2.39 | |||||||||||||||||||||||||||||||||
12/31/15 | 14.69 | .31 | (.64 | ) | (.33 | ) | (.29 | ) | (1.45 | ) | (1.74 | ) | 12.62 | (2.72 | ) | 3,638 | .41 | 2.23 | ||||||||||||||||||||||||||||||
12/31/14 | 13.12 | .46 | 2 | 1.59 | 2.05 | (.48 | ) | — | (.48 | ) | 14.69 | 15.69 | 3,542 | .42 | 3.31 | 2 | ||||||||||||||||||||||||||||||||
12/31/13 | 10.05 | .27 | 3.06 | 3.33 | (.26 | ) | — | (.26 | ) | 13.12 | 33.26 | 2,814 | .42 | 2.27 | ||||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/173,4 | 13.75 | .28 | 1.75 | 2.03 | (.31 | ) | (.53 | ) | (.84 | ) | 14.94 | 15.21 | 5 | 1 | .65 | 6 | 2.01 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 13.39 | .28 | 1.94 | 2.22 | (.28 | ) | (.53 | ) | (.81 | ) | 14.80 | 17.04 | 3,551 | .66 | 2.02 | |||||||||||||||||||||||||||||||||
12/31/16 | 12.51 | .28 | 1.94 | 2.22 | (.26 | ) | (1.08 | ) | (1.34 | ) | 13.39 | 18.70 | 3,412 | .66 | 2.16 | |||||||||||||||||||||||||||||||||
12/31/15 | 14.57 | .27 | (.62 | ) | (.35 | ) | (.26 | ) | (1.45 | ) | (1.71 | ) | 12.51 | (2.93 | ) | 3,228 | .66 | 1.97 | ||||||||||||||||||||||||||||||
12/31/14 | 13.02 | .44 | 2 | 1.55 | 1.99 | (.44 | ) | — | (.44 | ) | 14.57 | 15.36 | 3,722 | .67 | 3.14 | 2 | ||||||||||||||||||||||||||||||||
12/31/13 | 9.97 | .23 | 3.05 | 3.28 | (.23 | ) | — | (.23 | ) | 13.02 | 33.00 | 3,755 | .67 | 2.03 | ||||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 13.39 | .25 | 1.93 | 2.18 | (.27 | ) | (.53 | ) | (.80 | ) | 14.77 | 16.70 | 247 | .91 | 1.76 | |||||||||||||||||||||||||||||||||
12/31/16 | 12.53 | .24 | 1.96 | 2.20 | (.26 | ) | (1.08 | ) | (1.34 | ) | 13.39 | 18.49 | 132 | .91 | 1.81 | |||||||||||||||||||||||||||||||||
12/31/15 | 14.63 | .24 | (.63 | ) | (.39 | ) | (.26 | ) | (1.45 | ) | (1.71 | ) | 12.53 | (3.21 | ) | 32 | .91 | 1.75 | ||||||||||||||||||||||||||||||
12/31/14 | 13.12 | .34 | 2 | 1.63 | 1.97 | (.46 | ) | — | (.46 | ) | 14.63 | 15.13 | 9 | .92 | 2.33 | 2 | ||||||||||||||||||||||||||||||||
12/31/13 | 10.05 | .18 | 3.15 | 3.33 | (.26 | ) | — | (.26 | ) | 13.12 | 33.27 | — | 7 | .86 | 1.39 |
See end of tables for footnotes.
American Funds Insurance Series | 189 |
Financial highlights (continued)
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net asset | ||||||||||||||||||||||||||||||||||||
Global Growth and Income Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 13.02 | $ | .35 | $ | 3.06 | $ | 3.41 | $ | (.36 | ) | $ | (.26 | ) | $ | (.62 | ) | $ | 15.81 | 26.40 | % | $ | 485 | .63 | % | 2.43 | % | |||||||||||||||||||||
12/31/16 | 12.35 | .28 | .66 | .94 | (.27 | ) | — | (.27 | ) | 13.02 | 7.61 | 571 | .63 | 2.18 | ||||||||||||||||||||||||||||||||||
12/31/15 | 12.78 | .36 | (.50 | ) | (.14 | ) | (.29 | ) | — | (.29 | ) | 12.35 | (1.14 | ) | 293 | .64 | 2.79 | |||||||||||||||||||||||||||||||
12/31/14 | 12.53 | .43 | 2 | .31 | .74 | (.49 | ) | — | (.49 | ) | 12.78 | 6.00 | 200 | .63 | 3.34 | 2 | ||||||||||||||||||||||||||||||||
12/31/13 | 10.56 | .39 | 2.00 | 2.39 | (.42 | ) | — | (.42 | ) | 12.53 | 22.81 | 206 | .62 | 3.35 | ||||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/173,4 | 13.21 | .18 | 3.03 | 3.21 | (.35 | ) | (.26 | ) | (.61 | ) | 15.81 | 24.54 | 5 | — | 7 | .84 | 6 | 1.20 | 6 | |||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 13.00 | .31 | 3.05 | 3.36 | (.32 | ) | (.26 | ) | (.58 | ) | 15.78 | 26.06 | 1,538 | .88 | 2.11 | |||||||||||||||||||||||||||||||||
12/31/16 | 12.33 | .25 | .65 | .90 | (.23 | ) | — | (.23 | ) | 13.00 | 7.34 | 1,405 | .88 | 1.98 | ||||||||||||||||||||||||||||||||||
12/31/15 | 12.75 | .22 | (.39 | ) | (.17 | ) | (.25 | ) | — | (.25 | ) | 12.33 | (1.34 | ) | 1,479 | .89 | 1.73 | |||||||||||||||||||||||||||||||
12/31/14 | 12.51 | .41 | 2 | .29 | .70 | (.46 | ) | — | (.46 | ) | 12.75 | 5.64 | 1,685 | .88 | 3.22 | 2 | ||||||||||||||||||||||||||||||||
12/31/13 | 10.54 | .36 | 2.00 | 2.36 | (.39 | ) | — | (.39 | ) | 12.51 | 22.54 | 1,822 | .87 | 3.09 | ||||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 12.89 | .22 | 3.08 | 3.30 | (.33 | ) | (.26 | ) | (.59 | ) | 15.60 | 25.83 | 79 | 1.14 | 1.49 | |||||||||||||||||||||||||||||||||
12/31/16 | 12.26 | .21 | .65 | .86 | (.23 | ) | — | (.23 | ) | 12.89 | 7.04 | 16 | 1.13 | 1.63 | ||||||||||||||||||||||||||||||||||
12/31/15 | 12.71 | .17 | (.37 | ) | (.20 | ) | (.25 | ) | — | (.25 | ) | 12.26 | (1.60 | ) | 5 | 1.14 | 1.32 | |||||||||||||||||||||||||||||||
12/31/14 | 12.50 | .30 | 2 | .37 | .67 | (.46 | ) | — | (.46 | ) | 12.71 | 5.41 | 1 | 1.13 | 2.30 | 2 | ||||||||||||||||||||||||||||||||
12/31/13 | 10.55 | .28 | 2.09 | 2.37 | (.42 | ) | — | (.42 | ) | 12.50 | 22.60 | 1 | 1.12 | 2.27 | ||||||||||||||||||||||||||||||||||
Growth-Income Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 44.41 | $ | .81 | $ | 8.89 | $ | 9.70 | $ | (.78 | ) | $ | (3.11 | ) | $ | (3.89 | ) | $ | 50.22 | 22.68 | % | $ | 15,765 | .28 | % | 1.69 | % | |||||||||||||||||||||
12/31/16 | 45.40 | .79 | 4.09 | 4.88 | (.75 | ) | (5.12 | ) | (5.87 | ) | 44.41 | 11.80 | 12,588 | .29 | 1.79 | |||||||||||||||||||||||||||||||||
12/31/15 | 52.76 | .79 | .37 | 1.16 | (.75 | ) | (7.77 | ) | (8.52 | ) | 45.40 | 1.72 | 10,747 | .29 | 1.59 | |||||||||||||||||||||||||||||||||
12/31/14 | 50.72 | .81 | 4.57 | 5.38 | (.80 | ) | (2.54 | ) | (3.34 | ) | 52.76 | 10.91 | 10,812 | .29 | 1.56 | |||||||||||||||||||||||||||||||||
12/31/13 | 38.48 | .66 | 12.31 | 12.97 | (.73 | ) | — | (.73 | ) | 50.72 | 33.82 | 9,857 | .29 | 1.49 | ||||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/173,4 | 45.39 | .67 | 7.96 | 8.63 | (.76 | ) | (3.11 | ) | (3.87 | ) | 50.15 | 19.83 | 5 | 2 | .52 | 6 | 1.41 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 44.00 | .68 | 8.80 | 9.48 | (.66 | ) | (3.11 | ) | (3.77 | ) | 49.71 | 22.38 | 13,930 | .53 | 1.45 | |||||||||||||||||||||||||||||||||
12/31/16 | 45.04 | .67 | 4.05 | 4.72 | (.64 | ) | (5.12 | ) | (5.76 | ) | 44.00 | 11.51 | 12,854 | .54 | 1.54 | |||||||||||||||||||||||||||||||||
12/31/15 | 52.41 | .66 | .37 | 1.03 | (.63 | ) | (7.77 | ) | (8.40 | ) | 45.04 | 1.45 | 12,895 | .54 | 1.34 | |||||||||||||||||||||||||||||||||
12/31/14 | 50.40 | .67 | 4.55 | 5.22 | (.67 | ) | (2.54 | ) | (3.21 | ) | 52.41 | 10.63 | 14,337 | .54 | 1.31 | |||||||||||||||||||||||||||||||||
12/31/13 | 38.24 | .55 | 12.23 | 12.78 | (.62 | ) | — | (.62 | ) | 50.40 | 33.50 | 14,980 | .54 | 1.25 | ||||||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 44.47 | .72 | 8.90 | 9.62 | (.69 | ) | (3.11 | ) | (3.80 | ) | 50.29 | 22.47 | 168 | .46 | 1.52 | |||||||||||||||||||||||||||||||||
12/31/16 | 45.46 | .71 | 4.09 | 4.80 | (.67 | ) | (5.12 | ) | (5.79 | ) | 44.47 | 11.59 | 156 | .47 | 1.61 | |||||||||||||||||||||||||||||||||
12/31/15 | 52.82 | .70 | .37 | 1.07 | (.66 | ) | (7.77 | ) | (8.43 | ) | 45.46 | 1.53 | 161 | .47 | 1.41 | |||||||||||||||||||||||||||||||||
12/31/14 | 50.77 | .71 | 4.59 | 5.30 | (.71 | ) | (2.54 | ) | (3.25 | ) | 52.82 | 10.71 | 185 | .47 | 1.38 | |||||||||||||||||||||||||||||||||
12/31/13 | 38.52 | .58 | 12.32 | 12.90 | (.65 | ) | — | (.65 | ) | 50.77 | 33.58 | 193 | .47 | 1.32 | ||||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 43.73 | .56 | 8.73 | 9.29 | (.60 | ) | (3.11 | ) | (3.71 | ) | 49.31 | 22.08 | 827 | .78 | 1.19 | |||||||||||||||||||||||||||||||||
12/31/16 | 44.82 | .56 | 4.02 | 4.58 | (.55 | ) | (5.12 | ) | (5.67 | ) | 43.73 | 11.25 | 495 | .79 | 1.29 | |||||||||||||||||||||||||||||||||
12/31/15 | 52.39 | .58 | .33 | .91 | (.71 | ) | (7.77 | ) | (8.48 | ) | 44.82 | 1.21 | 410 | .79 | 1.25 | |||||||||||||||||||||||||||||||||
12/31/14 | 50.56 | .58 | 4.51 | 5.09 | (.72 | ) | (2.54 | ) | (3.26 | ) | 52.39 | 10.34 | 30 | .79 | 1.11 | |||||||||||||||||||||||||||||||||
12/31/13 | 38.47 | .45 | 12.33 | 12.78 | (.69 | ) | — | (.69 | ) | 50.56 | 33.32 | 3 | .79 | .96 |
190 | 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 asset | ||||||||||||||||||||||||||||||||||||
International Growth and Income Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 14.48 | $ | .46 | $ | 3.20 | $ | 3.66 | $ | (.42 | ) | $ | — | $ | (.42 | ) | $ | 17.72 | 25.31 | % | $ | 1,121 | .66 | % | 2.75 | % | ||||||||||||||||||||||
12/31/16 | 14.72 | .43 | (.19 | ) | .24 | (.42 | ) | (.06 | ) | (.48 | ) | 14.48 | 1.71 | 820 | .68 | 2.93 | ||||||||||||||||||||||||||||||||
12/31/15 | 16.27 | .42 | (1.25 | ) | (.83 | ) | (.38 | ) | (.34 | ) | (.72 | ) | 14.72 | (5.34 | ) | 707 | .68 | 2.60 | ||||||||||||||||||||||||||||||
12/31/14 | 17.48 | .58 | 2 | (1.09 | ) | (.51 | ) | (.53 | ) | (.17 | ) | (.70 | ) | 16.27 | (2.93 | ) | 740 | .68 | 3.32 | 2 | ||||||||||||||||||||||||||||
12/31/13 | 15.29 | .44 | 2.50 | 2.94 | (.47 | ) | (.28 | ) | (.75 | ) | 17.48 | 19.39 | 696 | .69 | 2.63 | |||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/173,4 | 14.69 | .34 | 3.08 | 3.42 | (.41 | ) | — | (.41 | ) | 17.70 | 23.36 | 5 | 2 | .91 | 6 | 1.99 | 6 | |||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 14.43 | .43 | 3.17 | 3.60 | (.37 | ) | — | (.37 | ) | 17.66 | 25.03 | 276 | .91 | 2.60 | ||||||||||||||||||||||||||||||||||
12/31/16 | 14.68 | .40 | (.21 | ) | .19 | (.38 | ) | (.06 | ) | (.44 | ) | 14.43 | 1.44 | 244 | .93 | 2.72 | ||||||||||||||||||||||||||||||||
12/31/15 | 16.22 | .38 | (1.24 | ) | (.86 | ) | (.34 | ) | (.34 | ) | (.68 | ) | 14.68 | (5.60 | ) | 254 | .93 | 2.32 | ||||||||||||||||||||||||||||||
12/31/14 | 17.43 | .56 | 2 | (1.10 | ) | (.54 | ) | (.50 | ) | (.17 | ) | (.67 | ) | 16.22 | (3.15 | ) | 248 | .93 | 3.21 | 2 | ||||||||||||||||||||||||||||
12/31/13 | 15.25 | .38 | 2.51 | 2.89 | (.43 | ) | (.28 | ) | (.71 | ) | 17.43 | 19.09 | 257 | .94 | 2.28 | |||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 14.38 | .37 | 3.18 | 3.55 | (.35 | ) | — | (.35 | ) | 17.58 | 24.72 | 63 | 1.16 | 2.24 | ||||||||||||||||||||||||||||||||||
12/31/16 | 14.63 | .36 | (.19 | ) | .17 | (.36 | ) | (.06 | ) | (.42 | ) | 14.38 | 1.18 | 37 | 1.18 | 2.43 | ||||||||||||||||||||||||||||||||
12/31/15 | 16.19 | .33 | (1.23 | ) | (.90 | ) | (.32 | ) | (.34 | ) | (.66 | ) | 14.63 | (5.82 | ) | 32 | 1.18 | 2.02 | ||||||||||||||||||||||||||||||
12/31/14 | 17.45 | .26 | 2 | (.85 | ) | (.59 | ) | (.50 | ) | (.17 | ) | (.67 | ) | 16.19 | (3.39 | ) | 20 | 1.18 | 1.52 | 2 | ||||||||||||||||||||||||||||
12/31/13 | 15.29 | .03 | 2.87 | 2.90 | (.46 | ) | (.28 | ) | (.74 | ) | 17.45 | 19.16 | 1 | 1.19 | .18 | |||||||||||||||||||||||||||||||||
Capital Income Builder | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 9.46 | $ | .32 | $ | .93 | $ | 1.25 | $ | (.31 | ) | $ | — | $ | (.31 | ) | $ | 10.40 | 13.29 | % | $ | 254 | .54 | % | 3.21 | % | ||||||||||||||||||||||
12/31/16 | 9.40 | .32 | .07 | .39 | (.33 | ) | — | (.33 | ) | 9.46 | 4.17 | 156 | .54 | 3.39 | ||||||||||||||||||||||||||||||||||
12/31/15 | 9.81 | .28 | (.40 | ) | (.12 | ) | (.29 | ) | — | (.29 | ) | 9.40 | (1.23 | ) | 80 | .56 | 2.88 | |||||||||||||||||||||||||||||||
12/31/143,10 | 10.00 | .19 | (.18 | ) | .01 | (.19 | ) | (.01 | ) | (.20 | ) | 9.81 | .12 | 5 | 20 | .56 | 6 | 2.87 | 6 | |||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/173,4 | 9.57 | .27 | .84 | 1.11 | (.29 | ) | — | (.29 | ) | 10.39 | 11.72 | 5 | 1 | .79 | 6 | 2.63 | 6 | |||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 9.46 | .29 | .93 | 1.22 | (.28 | ) | — | (.28 | ) | 10.40 | 13.04 | 1 | .79 | 2.82 | ||||||||||||||||||||||||||||||||||
12/31/16 | 9.40 | .27 | .11 | .38 | (.32 | ) | — | (.32 | ) | 9.46 | 4.08 | — | 7 | .80 | 2.82 | |||||||||||||||||||||||||||||||||
12/31/15 | 9.81 | .31 | (.43 | ) | (.12 | ) | (.29 | ) | — | (.29 | ) | 9.40 | (1.23 | )11 | — | 7 | .46 | 11 | 3.12 | 11 | ||||||||||||||||||||||||||||
12/31/143,10 | 10.00 | .20 | (.19 | ) | .01 | (.19 | ) | (.01 | ) | (.20 | ) | 9.81 | .12 | 5,11 | — | 7 | .47 | 6,11 | 2.94 | 6,11 | ||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 9.45 | .27 | .92 | 1.19 | (.26 | ) | — | (.26 | ) | 10.38 | 12.65 | 338 | 1.04 | 2.72 | ||||||||||||||||||||||||||||||||||
12/31/16 | 9.38 | .27 | .08 | .35 | (.28 | ) | — | (.28 | ) | 9.45 | 3.78 | 256 | 1.04 | 2.88 | ||||||||||||||||||||||||||||||||||
12/31/15 | 9.80 | .25 | (.42 | ) | (.17 | ) | (.25 | ) | — | (.25 | ) | 9.38 | (1.79 | ) | 157 | 1.05 | 2.55 | |||||||||||||||||||||||||||||||
12/31/143,10 | 10.00 | .14 | (.16 | ) | (.02 | ) | (.17 | ) | (.01 | ) | (.18 | ) | 9.80 | (.21 | )5 | 55 | 1.06 | 6 | 2.08 | 6 |
See end of tables for footnotes.
American Funds Insurance Series | 191 |
Financial highlights (continued)
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
Asset Allocation Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 21.68 | $ | .44 | $ | 3.06 | $ | 3.50 | $ | (.41 | ) | $ | (1.06 | ) | $ | (1.47 | ) | $ | 23.71 | 16.51 | % | $ | 16,556 | .29 | % | 1.90 | % | |||||||||||||||||||||
12/31/16 | 20.62 | .42 | 1.54 | 1.96 | (.39 | ) | (.51 | ) | (.90 | ) | 21.68 | 9.69 | 13,008 | .29 | 1.97 | |||||||||||||||||||||||||||||||||
12/31/15 | 22.23 | .40 | (.02 | ) | .38 | (.40 | ) | (1.59 | ) | (1.99 | ) | 20.62 | 1.64 | 10,913 | .29 | 1.85 | ||||||||||||||||||||||||||||||||
12/31/14 | 22.49 | .44 | .81 | 1.25 | (.39 | ) | (1.12 | ) | (1.51 | ) | 22.23 | 5.66 | 11,997 | .30 | 1.95 | |||||||||||||||||||||||||||||||||
12/31/13 | 18.43 | .35 | 4.07 | 4.42 | (.36 | ) | — | (.36 | ) | 22.49 | 24.04 | 10,515 | .31 | 1.71 | ||||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/173,4 | 21.97 | .39 | 2.78 | 3.17 | (.39 | ) | (1.06 | ) | (1.45 | ) | 23.69 | 14.78 | 5 | 4 | .53 | 6 | 1.69 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 21.49 | .37 | 3.04 | 3.41 | (.35 | ) | (1.06 | ) | (1.41 | ) | 23.49 | 16.23 | 5,480 | .54 | 1.64 | |||||||||||||||||||||||||||||||||
12/31/16 | 20.45 | .36 | 1.53 | 1.89 | (.34 | ) | (.51 | ) | (.85 | ) | 21.49 | 9.41 | 5,144 | .54 | 1.72 | |||||||||||||||||||||||||||||||||
12/31/15 | 22.06 | .34 | (.01 | ) | .33 | (.35 | ) | (1.59 | ) | (1.94 | ) | 20.45 | 1.40 | 5,008 | .54 | 1.60 | ||||||||||||||||||||||||||||||||
12/31/14 | 22.33 | .37 | .81 | 1.18 | (.33 | ) | (1.12 | ) | (1.45 | ) | 22.06 | 5.40 | 5,494 | .55 | 1.69 | |||||||||||||||||||||||||||||||||
12/31/13 | 18.31 | .30 | 4.03 | 4.33 | (.31 | ) | — | (.31 | ) | 22.33 | 23.69 | 5,760 | .56 | 1.47 | ||||||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 21.70 | .39 | 3.07 | 3.46 | (.37 | ) | (1.06 | ) | (1.43 | ) | 23.73 | 16.29 | 38 | .47 | 1.72 | |||||||||||||||||||||||||||||||||
12/31/16 | 20.64 | .38 | 1.54 | 1.92 | (.35 | ) | (.51 | ) | (.86 | ) | 21.70 | 9.49 | 35 | .47 | 1.79 | |||||||||||||||||||||||||||||||||
12/31/15 | 22.25 | .36 | (.02 | ) | .34 | (.36 | ) | (1.59 | ) | (1.95 | ) | 20.64 | 1.46 | 36 | .47 | 1.67 | ||||||||||||||||||||||||||||||||
12/31/14 | 22.51 | .39 | .81 | 1.20 | (.34 | ) | (1.12 | ) | (1.46 | ) | 22.25 | 5.47 | 40 | .48 | 1.76 | |||||||||||||||||||||||||||||||||
12/31/13 | 18.45 | .32 | 4.06 | 4.38 | (.32 | ) | — | (.32 | ) | 22.51 | 23.81 | 42 | .49 | 1.54 | ||||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 21.43 | .32 | 3.02 | 3.34 | (.31 | ) | (1.06 | ) | (1.37 | ) | 23.40 | 15.91 | 3,582 | .79 | 1.40 | |||||||||||||||||||||||||||||||||
12/31/16 | 20.40 | .31 | 1.53 | 1.84 | (.30 | ) | (.51 | ) | (.81 | ) | 21.43 | 9.16 | 2,861 | .79 | 1.47 | |||||||||||||||||||||||||||||||||
12/31/15 | 22.11 | .30 | (.02 | ) | .28 | (.40 | ) | (1.59 | ) | (1.99 | ) | 20.40 | 1.14 | 2,414 | .79 | 1.45 | ||||||||||||||||||||||||||||||||
12/31/14 | 22.46 | .34 | .79 | 1.13 | (.36 | ) | (1.12 | ) | (1.48 | ) | 22.11 | 5.16 | 32 | .80 | 1.55 | |||||||||||||||||||||||||||||||||
12/31/13 | 18.43 | .27 | 4.12 | 4.39 | (.36 | ) | — | (.36 | ) | 22.46 | 23.89 | 1 | .79 | 1.22 | ||||||||||||||||||||||||||||||||||
Global Balanced Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 11.08 | $ | .21 | $ | 1.99 | $ | 2.20 | $ | (.15 | ) | $ | (.38 | ) | $ | (.53 | ) | $ | 12.75 | 19.91 | % | $ | 93 | .72 | % | 1.68 | % | |||||||||||||||||||||
12/31/16 | 10.74 | .19 | .32 | .51 | (.17 | ) | — | (.17 | ) | 11.08 | 4.73 | 64 | .72 | 1.73 | ||||||||||||||||||||||||||||||||||
12/31/15 | 11.11 | .20 | (.28 | ) | (.08 | ) | (.14 | ) | (.15 | ) | (.29 | ) | 10.74 | (.69 | ) | 47 | .72 | 1.80 | ||||||||||||||||||||||||||||||
12/31/14 | 11.37 | .25 | 2 | (.03 | ) | .22 | (.18 | ) | (.30 | ) | (.48 | ) | 11.11 | 1.87 | 37 | .71 | 2.14 | 2 | ||||||||||||||||||||||||||||||
12/31/13 | 10.34 | .22 | 1.07 | 1.29 | (.18 | ) | (.08 | ) | (.26 | ) | 11.37 | 12.56 | 36 | .70 | 2.05 | |||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/173,4 | 11.18 | .16 | 1.92 | 2.08 | (.14 | ) | (.38 | ) | (.52 | ) | 12.74 | 18.71 | 5 | — | 7 | .94 | 6 | 1.27 | 6 | |||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 11.06 | .18 | 1.98 | 2.16 | (.12 | ) | (.38 | ) | (.50 | ) | 12.72 | 19.57 | 210 | .96 | 1.43 | |||||||||||||||||||||||||||||||||
12/31/16 | 10.72 | .16 | .32 | .48 | (.14 | ) | — | (.14 | ) | 11.06 | 4.48 | 178 | .97 | 1.48 | ||||||||||||||||||||||||||||||||||
12/31/15 | 11.09 | .18 | (.28 | ) | (.10 | ) | (.12 | ) | (.15 | ) | (.27 | ) | 10.72 | (.95 | ) | 171 | .97 | 1.60 | ||||||||||||||||||||||||||||||
12/31/14 | 11.35 | .22 | 2 | (.03 | ) | .19 | (.15 | ) | (.30 | ) | (.45 | ) | 11.09 | 1.63 | 179 | .96 | 1.88 | 2 | ||||||||||||||||||||||||||||||
12/31/13 | 10.33 | .20 | 1.06 | 1.26 | (.16 | ) | (.08 | ) | (.24 | ) | 11.35 | 12.23 | 156 | .95 | 1.79 | |||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 11.00 | .13 | 1.99 | 2.12 | (.11 | ) | (.38 | ) | (.49 | ) | 12.63 | 19.38 | 51 | 1.22 | 1.07 | |||||||||||||||||||||||||||||||||
12/31/16 | 10.69 | .12 | .33 | .45 | (.14 | ) | — | (.14 | ) | 11.00 | 4.21 | 10 | 1.24 | 1.12 | ||||||||||||||||||||||||||||||||||
12/31/15 | 11.09 | .06 | (.17 | ) | (.11 | ) | (.14 | ) | (.15 | ) | (.29 | ) | 10.69 | (1.00 | ) | 1 | 1.34 | .58 | ||||||||||||||||||||||||||||||
12/31/14 | 11.35 | .24 | 2 | (.02 | ) | .22 | (.18 | ) | (.30 | ) | (.48 | ) | 11.09 | 1.88 | 11 | — | 7 | .67 | 11 | 2.07 | 2,11 | |||||||||||||||||||||||||||
12/31/13 | 10.33 | .22 | 1.06 | 1.28 | (.18 | ) | (.08 | ) | (.26 | ) | 11.35 | 12.49 | 11 | — | 7 | .71 | 11 | 1.98 | 11 |
192 | 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 | ||||||||||||||||||||||||||||||||||||
Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 10.80 | $ | .24 | $ | .18 | $ | .42 | $ | (.24 | ) | $ | (.16 | ) | $ | (.40 | ) | $ | 10.82 | 3.88 | % | $ | 6,434 | .38 | % | 2.19 | % | |||||||||||||||||||||
12/31/16 | 10.70 | .21 | .14 | .35 | (.21 | ) | (.04 | ) | (.25 | ) | 10.80 | 3.27 | 6,829 | .38 | 1.91 | |||||||||||||||||||||||||||||||||
12/31/15 | 11.08 | .22 | (.17 | ) | .05 | (.21 | ) | (.22 | ) | (.43 | ) | 10.70 | .45 | 5,731 | .38 | 1.95 | ||||||||||||||||||||||||||||||||
12/31/14 | 10.73 | .23 | .37 | .60 | (.25 | ) | — | 8 | (.25 | ) | 11.08 | 5.59 | 4,977 | .39 | 2.03 | |||||||||||||||||||||||||||||||||
12/31/13 | 11.29 | .22 | (.43 | ) | (.21 | ) | (.23 | ) | (.12 | ) | (.35 | ) | 10.73 | (1.89 | ) | 4,506 | .39 | 2.01 | ||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/173,4 | 10.82 | .22 | .15 | .37 | (.23 | ) | (.16 | ) | (.39 | ) | 10.80 | 3.46 | 5 | 1 | .62 | 6 | 2.01 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 10.67 | .21 | .18 | .39 | (.21 | ) | (.16 | ) | (.37 | ) | 10.69 | 3.67 | 3,966 | .63 | 1.94 | |||||||||||||||||||||||||||||||||
12/31/16 | 10.58 | .18 | .13 | .31 | (.18 | ) | (.04 | ) | (.22 | ) | 10.67 | 2.95 | 3,959 | .63 | 1.65 | |||||||||||||||||||||||||||||||||
12/31/15 | 10.95 | .18 | (.15 | ) | .03 | (.18 | ) | (.22 | ) | (.40 | ) | 10.58 | .28 | 4,135 | .63 | 1.69 | ||||||||||||||||||||||||||||||||
12/31/14 | 10.61 | .20 | .36 | .56 | (.22 | ) | — | 8 | (.22 | ) | 10.95 | 5.28 | 4,565 | .64 | 1.79 | |||||||||||||||||||||||||||||||||
12/31/13 | 11.17 | .19 | (.43 | ) | (.24 | ) | (.20 | ) | (.12 | ) | (.32 | ) | 10.61 | (2.16 | ) | 4,763 | .64 | 1.76 | ||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 10.70 | .19 | .16 | .35 | (.21 | ) | (.16 | ) | (.37 | ) | 10.68 | 3.29 | 297 | .88 | 1.72 | |||||||||||||||||||||||||||||||||
12/31/16 | 10.61 | .15 | .15 | .30 | (.17 | ) | (.04 | ) | (.21 | ) | 10.70 | 2.80 | 102 | .88 | 1.41 | |||||||||||||||||||||||||||||||||
12/31/15 | 11.01 | .16 | (.16 | ) | — | (.18 | ) | (.22 | ) | (.40 | ) | 10.61 | (.08 | ) | 59 | .88 | 1.47 | |||||||||||||||||||||||||||||||
12/31/14 | 10.69 | .16 | .39 | .55 | (.23 | ) | — | 8 | (.23 | ) | 11.01 | 5.15 | 29 | .89 | 1.43 | |||||||||||||||||||||||||||||||||
12/31/13 | 11.29 | .17 | (.43 | ) | (.26 | ) | (.22 | ) | (.12 | ) | (.34 | ) | 10.69 | (2.34 | ) | 3 | .89 | 1.58 | ||||||||||||||||||||||||||||||
Global Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 11.22 | $ | .28 | $ | .52 | $ | .80 | $ | (.07 | ) | $ | (.07 | ) | $ | (.14 | ) | $ | 11.88 | 7.11 | % | $ | 1,273 | .56 | % | 2.37 | % | |||||||||||||||||||||
12/31/16 | 11.01 | .26 | .06 | .32 | (.09 | ) | (.02 | ) | (.11 | ) | 11.22 | 2.92 | 1,115 | .57 | 2.26 | |||||||||||||||||||||||||||||||||
12/31/15 | 11.77 | .27 | (.71 | ) | (.44 | ) | (.01 | ) | (.31 | ) | (.32 | ) | 11.01 | (3.75 | ) | 1,032 | .57 | 2.34 | ||||||||||||||||||||||||||||||
12/31/14 | 11.88 | .29 | (.08 | ) | .21 | (.21 | ) | (.11 | ) | (.32 | ) | 11.77 | 1.71 | 1,194 | .57 | 2.35 | ||||||||||||||||||||||||||||||||
12/31/13 | 12.32 | .28 | (.58 | ) | (.30 | ) | — | (.14 | ) | (.14 | ) | 11.88 | (2.40 | ) | 1,093 | .56 | 2.37 | |||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/173,4 | 11.22 | .26 | .52 | .78 | (.06 | ) | (.07 | ) | (.13 | ) | 11.87 | 7.00 | 5 | — | 7 | .72 | 6 | 2.27 | 6 | |||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 11.14 | .25 | .51 | .76 | (.04 | ) | (.07 | ) | (.11 | ) | 11.79 | 6.86 | 1,164 | .81 | 2.12 | |||||||||||||||||||||||||||||||||
12/31/16 | 10.93 | .23 | .07 | .30 | (.07 | ) | (.02 | ) | (.09 | ) | 11.14 | 2.71 | 1,121 | .82 | 2.01 | |||||||||||||||||||||||||||||||||
12/31/15 | 11.72 | .24 | (.71 | ) | (.47 | ) | (.01 | ) | (.31 | ) | (.32 | ) | 10.93 | (4.07 | ) | 1,208 | .82 | 2.09 | ||||||||||||||||||||||||||||||
12/31/14 | 11.81 | .26 | (.09 | ) | .17 | (.15 | ) | (.11 | ) | (.26 | ) | 11.72 | 1.39 | 1,386 | .82 | 2.11 | ||||||||||||||||||||||||||||||||
12/31/13 | 12.27 | .25 | (.57 | ) | (.32 | ) | — | (.14 | ) | (.14 | ) | 11.81 | (2.58 | ) | 1,496 | .81 | 2.11 | |||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 11.08 | .22 | .51 | .73 | (.04 | ) | (.07 | ) | (.11 | ) | 11.70 | 6.63 | 31 | 1.06 | 1.89 | |||||||||||||||||||||||||||||||||
12/31/16 | 10.89 | .20 | .06 | .26 | (.05 | ) | (.02 | ) | (.07 | ) | 11.08 | 2.42 | 12 | 1.07 | 1.76 | |||||||||||||||||||||||||||||||||
12/31/15 | 11.70 | .21 | (.71 | ) | (.50 | ) | — | 8 | (.31 | ) | (.31 | ) | 10.89 | (4.27 | ) | 6 | 1.07 | 1.86 | ||||||||||||||||||||||||||||||
12/31/14 | 11.87 | .20 | (.05 | ) | .15 | (.21 | ) | (.11 | ) | (.32 | ) | 11.70 | 1.16 | 4 | 1.09 | 1.66 | ||||||||||||||||||||||||||||||||
12/31/13 | 12.31 | .27 | (.57 | ) | (.30 | ) | — | (.14 | ) | (.14 | ) | 11.87 | (2.41 | ) | — | 7 | .79 | 2.25 |
See end of tables for footnotes.
American Funds Insurance Series | 193 |
Financial highlights (continued)
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
High-Income Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 10.18 | $ | .63 | $ | .10 | $ | .73 | $ | (.72 | ) | $ | — | $ | (.72 | ) | $ | 10.19 | 7.25 | % | $ | 632 | .49 | % | 5.98 | % | ||||||||||||||||||||||
12/31/16 | 9.19 | .61 | 1.02 | 1.63 | (.64 | ) | — | (.64 | ) | 10.18 | 17.83 | 949 | .49 | 6.18 | ||||||||||||||||||||||||||||||||||
12/31/15 | 10.54 | .64 | (1.36 | ) | (.72 | ) | (.63 | ) | — | (.63 | ) | 9.19 | (6.94 | ) | 1,017 | .48 | 6.12 | |||||||||||||||||||||||||||||||
12/31/14 | 11.13 | .67 | (.59 | ) | .08 | (.67 | ) | — | (.67 | ) | 10.54 | .80 | 1,017 | .48 | 5.90 | |||||||||||||||||||||||||||||||||
12/31/13 | 11.16 | .75 | .01 | .76 | (.79 | ) | — | (.79 | ) | 11.13 | 6.89 | 856 | .48 | 6.54 | ||||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/173,4 | 10.28 | .60 | .02 | .62 | (.72 | ) | — | (.72 | ) | 10.18 | 6.02 | 5 | — | 7 | .72 | 6 | 5.74 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 10.04 | .59 | .10 | .69 | (.70 | ) | — | (.70 | ) | 10.03 | 6.89 | 776 | .74 | 5.72 | ||||||||||||||||||||||||||||||||||
12/31/16 | 9.06 | .58 | 1.01 | 1.59 | (.61 | ) | — | (.61 | ) | 10.04 | 17.69 | 799 | .74 | 5.92 | ||||||||||||||||||||||||||||||||||
12/31/15 | 10.41 | .60 | (1.35 | ) | (.75 | ) | (.60 | ) | — | (.60 | ) | 9.06 | (7.30 | ) | 765 | .73 | 5.85 | |||||||||||||||||||||||||||||||
12/31/14 | 10.99 | .63 | (.57 | ) | .06 | (.64 | ) | — | (.64 | ) | 10.41 | .63 | 929 | .73 | 5.67 | |||||||||||||||||||||||||||||||||
12/31/13 | 11.03 | .71 | .01 | .72 | (.76 | ) | — | (.76 | ) | 10.99 | 6.60 | 1,061 | .73 | 6.29 | ||||||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 10.22 | .61 | .10 | .71 | (.70 | ) | — | (.70 | ) | 10.23 | 7.02 | 12 | .67 | 5.79 | ||||||||||||||||||||||||||||||||||
12/31/16 | 9.22 | .59 | 1.03 | 1.62 | (.62 | ) | — | (.62 | ) | 10.22 | 17.68 | 13 | .67 | 5.99 | ||||||||||||||||||||||||||||||||||
12/31/15 | 10.57 | .62 | (1.37 | ) | (.75 | ) | (.60 | ) | — | (.60 | ) | 9.22 | (7.13 | ) | 12 | .66 | 5.91 | |||||||||||||||||||||||||||||||
12/31/14 | 11.16 | .65 | (.59 | ) | .06 | (.65 | ) | — | (.65 | ) | 10.57 | .59 | 16 | .66 | 5.74 | |||||||||||||||||||||||||||||||||
12/31/13 | 11.18 | .73 | .02 | .75 | (.77 | ) | — | (.77 | ) | 11.16 | 6.77 | 19 | .66 | 6.36 | ||||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 10.79 | .61 | .10 | .71 | (.68 | ) | — | (.68 | ) | 10.82 | 6.63 | 34 | .99 | 5.46 | ||||||||||||||||||||||||||||||||||
12/31/16 | 9.73 | .60 | 1.07 | 1.67 | (.61 | ) | — | (.61 | ) | 10.79 | 17.29 | 21 | .99 | 5.55 | ||||||||||||||||||||||||||||||||||
12/31/15 | 11.05 | .62 | (1.43 | ) | (.81 | ) | (.51 | ) | — | (.51 | ) | 9.73 | (7.42 | ) | 1 | .98 | 5.51 | |||||||||||||||||||||||||||||||
12/31/14 | 11.12 | .63 | (.59 | ) | .04 | (.11 | ) | — | (.11 | ) | 11.05 | .35 | — | 7 | .98 | 5.49 | ||||||||||||||||||||||||||||||||
12/31/13 | 11.16 | .67 | .08 | .75 | (.79 | ) | — | (.79 | ) | 11.12 | 6.81 | — | 7 | .93 | 5.82 | |||||||||||||||||||||||||||||||||
Mortgage Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 10.56 | $ | .16 | $ | — | 8 | $ | .16 | $ | (.18 | ) | $ | (.07 | ) | $ | (.25 | ) | $ | 10.47 | 1.47 | % | $ | 265 | .47 | % | 1.52 | % | ||||||||||||||||||||
12/31/16 | 10.61 | .15 | .11 | .26 | (.20 | ) | (.11 | ) | (.31 | ) | 10.56 | 2.50 | 269 | .46 | 1.39 | |||||||||||||||||||||||||||||||||
12/31/15 | 10.70 | .10 | .13 | .23 | (.18 | ) | (.14 | ) | (.32 | ) | 10.61 | 2.09 | 272 | .45 | .89 | |||||||||||||||||||||||||||||||||
12/31/14 | 10.23 | .12 | .45 | .57 | (.10 | ) | — | (.10 | ) | 10.70 | 5.54 | 292 | .45 | 1.12 | ||||||||||||||||||||||||||||||||||
12/31/13 | 10.47 | .04 | (.18 | ) | (.14 | ) | (.08 | ) | (.02 | ) | (.10 | ) | 10.23 | (1.41 | ) | 198 | .44 | .35 | ||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/173,4 | 10.55 | .14 | — | 8 | .14 | (.16 | ) | (.07 | ) | (.23 | ) | 10.46 | 1.31 | 5 | — | 7 | .70 | 6 | 1.38 | 6 | ||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 10.54 | .14 | (.01 | ) | .13 | (.15 | ) | (.07 | ) | (.22 | ) | 10.45 | 1.22 | 63 | .72 | 1.27 | ||||||||||||||||||||||||||||||||
12/31/16 | 10.59 | .12 | .12 | .24 | (.18 | ) | (.11 | ) | (.29 | ) | 10.54 | 2.25 | 63 | .71 | 1.14 | |||||||||||||||||||||||||||||||||
12/31/15 | 10.68 | .07 | .13 | .20 | (.15 | ) | (.14 | ) | (.29 | ) | 10.59 | 1.86 | 59 | .70 | .65 | |||||||||||||||||||||||||||||||||
12/31/14 | 10.22 | .10 | .44 | .54 | (.08 | ) | — | (.08 | ) | 10.68 | 5.23 | 52 | .70 | .91 | ||||||||||||||||||||||||||||||||||
12/31/13 | 10.46 | — | 8 | (.17 | ) | (.17 | ) | (.05 | ) | (.02 | ) | (.07 | ) | 10.22 | (1.68 | ) | 49 | .69 | (.02 | ) | ||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 10.48 | .11 | — | 8 | .11 | (.14 | ) | (.07 | ) | (.21 | ) | 10.38 | .97 | 12 | .97 | 1.03 | ||||||||||||||||||||||||||||||||
12/31/16 | 10.52 | .09 | .12 | .21 | (.14 | ) | (.11 | ) | (.25 | ) | 10.48 | 2.01 | 8 | .96 | .86 | |||||||||||||||||||||||||||||||||
12/31/15 | 10.65 | .04 | .14 | .18 | (.17 | ) | (.14 | ) | (.31 | ) | 10.52 | 1.62 | 11 | .97 | .37 | |||||||||||||||||||||||||||||||||
12/31/14 | 10.23 | .05 | .46 | .51 | (.09 | ) | — | (.09 | ) | 10.65 | 4.98 | 1 | .94 | .47 | ||||||||||||||||||||||||||||||||||
12/31/13 | 10.47 | .02 | (.16 | ) | (.14 | ) | (.08 | ) | (.02 | ) | (.10 | ) | 10.23 | (1.41 | )11 | — | 7 | .38 | 11 | .23 | 11 |
194 | 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 | ||||||||||||||||||||||||||||||||||||
Ultra-Short Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 11.27 | $ | .08 | $ | (.01 | ) | $ | .07 | $ | (.05 | ) | $ | — | $ | (.05 | ) | $ | 11.29 | .66 | % | $ | 37 | .35 | % | .68 | % | |||||||||||||||||||||
12/31/1612 | 11.26 | .01 | — | 8 | .01 | — | — | — | 11.27 | .09 | 37 | .35 | .11 | |||||||||||||||||||||||||||||||||||
12/31/15 | 11.28 | (.03 | ) | .01 | (.02 | ) | — | — | — | 11.26 | (.18 | ) | 39 | .34 | (.24 | ) | ||||||||||||||||||||||||||||||||
12/31/14 | 11.31 | (.03 | ) | — | (.03 | ) | — | — | — | 11.28 | (.27 | ) | 49 | .34 | (.26 | ) | ||||||||||||||||||||||||||||||||
12/31/13 | 11.34 | (.03 | ) | — | 8 | (.03 | ) | — | — | — | 11.31 | (.27 | ) | 57 | .34 | (.24 | ) | |||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/173,4 | 11.27 | .08 | — | 8 | .08 | (.06 | ) | — | (.06 | ) | 11.29 | .67 | 5 | — | 7 | .34 | 6 | .69 | 6 | |||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 10.99 | .05 | — | 8 | .05 | (.03 | ) | — | (.03 | ) | 11.01 | .46 | 249 | .60 | .42 | |||||||||||||||||||||||||||||||||
12/31/1612 | 11.01 | (.02 | ) | — | 8 | (.02 | ) | — | — | — | 10.99 | (.18 | ) | 297 | .60 | (.14 | ) | |||||||||||||||||||||||||||||||
12/31/15 | 11.06 | (.05 | ) | — | 8 | (.05 | ) | — | — | — | 11.01 | (.45 | ) | 302 | .59 | (.49 | ) | |||||||||||||||||||||||||||||||
12/31/14 | 11.12 | (.06 | ) | — | (.06 | ) | — | — | — | 11.06 | (.54 | ) | 331 | .59 | (.51 | ) | ||||||||||||||||||||||||||||||||
12/31/13 | 11.17 | (.05 | ) | — | 8 | (.05 | ) | — | — | — | 11.12 | (.45 | ) | 395 | .59 | (.49 | ) | |||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 11.10 | .06 | — | 8 | .06 | (.04 | ) | — | (.04 | ) | 11.12 | .54 | 4 | .53 | .50 | |||||||||||||||||||||||||||||||||
12/31/1612 | 11.11 | (.01 | ) | — | 8 | (.01 | ) | — | — | — | 11.10 | (.09 | ) | 4 | .53 | (.08 | ) | |||||||||||||||||||||||||||||||
12/31/15 | 11.16 | (.05 | ) | — | 8 | (.05 | ) | — | — | — | 11.11 | (.45 | ) | 6 | .52 | (.42 | ) | |||||||||||||||||||||||||||||||
12/31/14 | 11.21 | (.05 | ) | — | (.05 | ) | — | — | — | 11.16 | (.45 | ) | 8 | .52 | (.44 | ) | ||||||||||||||||||||||||||||||||
12/31/13 | 11.26 | (.05 | ) | — | 8 | (.05 | ) | — | — | — | 11.21 | (.44 | ) | 8 | .52 | (.42 | ) | |||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 11.12 | .02 | — | 8 | .02 | (.01 | ) | — | (.01 | ) | 11.13 | .16 | 15 | .85 | .19 | |||||||||||||||||||||||||||||||||
12/31/1612 | 11.17 | (.04 | ) | (.01 | ) | (.05 | ) | — | — | — | 11.12 | (.45 | ) | 13 | .85 | (.40 | ) | |||||||||||||||||||||||||||||||
12/31/15 | 11.25 | (.08 | ) | — | 8 | (.08 | ) | — | — | — | 11.17 | (.71 | ) | 16 | .85 | (.74 | ) | |||||||||||||||||||||||||||||||
12/31/14 | 11.30 | (.09 | ) | .04 | (.05 | ) | — | — | — | 11.25 | (.44 | ) | 7 | .84 | (.77 | ) | ||||||||||||||||||||||||||||||||
12/31/13 | 11.34 | (.04 | ) | — | 8 | (.04 | ) | — | — | — | 11.30 | (.35 | )11 | — | 7 | .37 | 11 | (.32 | )11 |
See end of tables for footnotes.
American Funds Insurance Series | 195 |
Financial highlights (continued) |
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net asset end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
U.S. Government/AAA-Rated Securities Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 12.05 | $ | .21 | $ | .01 | $ | .22 | $ | (.19 | ) | $ | — | $ | (.19 | ) | $ | 12.08 | 1.83 | % | $ | 1,558 | .36 | % | 1.68 | % | ||||||||||||||||||||||
12/31/16 | 12.31 | .16 | .03 | .19 | (.20 | ) | (.25 | ) | (.45 | ) | 12.05 | 1.44 | 1,467 | .36 | 1.31 | |||||||||||||||||||||||||||||||||
12/31/15 | 12.40 | .13 | .09 | .22 | (.21 | ) | (.10 | ) | (.31 | ) | 12.31 | 1.93 | 1,426 | .35 | 1.02 | |||||||||||||||||||||||||||||||||
12/31/14 | 11.94 | .15 | .48 | .63 | (.17 | ) | — | (.17 | ) | 12.40 | 5.24 | 1,723 | .35 | 1.24 | ||||||||||||||||||||||||||||||||||
12/31/13 | 12.75 | .08 | (.44 | ) | (.36 | ) | (.11 | ) | (.34 | ) | (.45 | ) | 11.94 | (2.87 | ) | 1,584 | .35 | .67 | ||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/173,4 | 12.05 | .18 | .03 | .21 | (.18 | ) | — | (.18 | ) | 12.08 | 1.73 | 5 | — | 7 | .58 | 6 | 1.53 | 6 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 11.93 | .17 | .02 | .19 | (.16 | ) | — | (.16 | ) | 11.96 | 1.59 | 1,473 | .61 | 1.43 | ||||||||||||||||||||||||||||||||||
12/31/16 | 12.20 | .13 | .02 | .15 | (.17 | ) | (.25 | ) | (.42 | ) | 11.93 | 1.19 | 1,503 | .61 | 1.05 | |||||||||||||||||||||||||||||||||
12/31/15 | 12.29 | .10 | .09 | .19 | (.18 | ) | (.10 | ) | (.28 | ) | 12.20 | 1.59 | 1,579 | .60 | .79 | |||||||||||||||||||||||||||||||||
12/31/14 | 11.83 | .12 | .47 | .59 | (.13 | ) | — | (.13 | ) | 12.29 | 5.01 | 1,717 | .60 | 1.00 | ||||||||||||||||||||||||||||||||||
12/31/13 | 12.63 | .05 | (.43 | ) | (.38 | ) | (.08 | ) | (.34 | ) | (.42 | ) | 11.83 | (3.08 | ) | 1,801 | .60 | .42 | ||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 12.07 | .18 | .03 | .21 | (.17 | ) | — | (.17 | ) | 12.11 | 1.72 | 10 | .54 | 1.50 | ||||||||||||||||||||||||||||||||||
12/31/16 | 12.34 | .14 | .02 | .16 | (.18 | ) | (.25 | ) | (.43 | ) | 12.07 | 1.24 | 11 | .54 | 1.12 | |||||||||||||||||||||||||||||||||
12/31/15 | 12.43 | .11 | .09 | .20 | (.19 | ) | (.10 | ) | (.29 | ) | 12.34 | 1.64 | 11 | .53 | .85 | |||||||||||||||||||||||||||||||||
12/31/14 | 11.96 | .13 | .48 | .61 | (.14 | ) | — | (.14 | ) | 12.43 | 5.11 | 13 | .53 | 1.08 | ||||||||||||||||||||||||||||||||||
12/31/13 | 12.76 | .06 | (.43 | ) | (.37 | ) | (.09 | ) | (.34 | ) | (.43 | ) | 11.96 | (3.00 | ) | 14 | .53 | .47 | ||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 11.96 | .14 | .01 | .15 | (.13 | ) | — | (.13 | ) | 11.98 | 1.28 | 62 | .86 | 1.18 | ||||||||||||||||||||||||||||||||||
12/31/16 | 12.22 | .10 | .03 | .13 | (.14 | ) | (.25 | ) | (.39 | ) | 11.96 | .99 | 57 | .86 | .82 | |||||||||||||||||||||||||||||||||
12/31/15 | 12.34 | .07 | .08 | .15 | (.17 | ) | (.10 | ) | (.27 | ) | 12.22 | 1.29 | 46 | .85 | .56 | |||||||||||||||||||||||||||||||||
12/31/14 | 11.93 | .06 | .51 | .57 | (.16 | ) | — | (.16 | ) | 12.34 | 4.76 | 21 | .85 | .50 | ||||||||||||||||||||||||||||||||||
12/31/13 | 12.75 | .08 | (.44 | ) | (.36 | ) | (.12 | ) | (.34 | ) | (.46 | ) | 11.93 | (2.95 | ) | — | 7 | .84 | .68 |
Income (loss) from investment operations | 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) | Distribu- tions (from capital gains) | Total dividends and distribu- tions | Net asset value, end of period | Total return13 | Net asset, end of period (in millions) | Ratio of expenses to average net assets before waivers/ reimburse- ments | Ratio of expenses to average net assets after waivers/ reimburse- ments13 | Net effective expense ratio13,14 | Ratio of net income to average net assets13 | |||||||||||||||||||||||||||||||||||||||||
Managed Risk Growth Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 10.71 | $ | .08 | $ | 2.70 | $ | 2.78 | $ | (.07 | ) | $ | (.20 | ) | $ | (.27 | ) | $ | 13.22 | 26.23 | %11 | $ | 2 | .42 | %11 | .36 | %11 | .70 | %11 | .69 | %11 | ||||||||||||||||||||||||
12/31/16 | 11.49 | .08 | .20 | .28 | (.05 | ) | (1.01 | ) | (1.06 | ) | 10.71 | 2.89 | 11 | 1 | .50 | 11 | .34 | 11 | .68 | 11 | .79 | 11 | |||||||||||||||||||||||||||||||||
12/31/15 | 11.37 | .09 | .03 | .12 | — | — | — | 11.49 | 1.06 | 11 | — | 7 | .53 | 11 | .29 | 11 | .63 | 11 | .80 | 11 | |||||||||||||||||||||||||||||||||||
12/31/14 | 11.43 | .31 | (.06 | ) | .25 | (.12 | ) | (.19 | ) | (.31 | ) | 11.37 | 2.18 | 11 | — | 7 | .50 | 11 | .32 | 11 | .65 | 11 | 2.71 | 11 | |||||||||||||||||||||||||||||||
12/31/133,15 | 10.00 | .12 | 1.38 | 1.50 | (.07 | ) | — | (.07 | ) | 11.43 | 15.05 | 5,11 | — | 7 | .88 | 6,11 | .25 | 6,11 | .58 | 6,11 | 1.64 | 6,11 | |||||||||||||||||||||||||||||||||
Class P2: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 10.64 | .04 | 2.70 | 2.74 | (.04 | ) | (.20 | ) | (.24 | ) | 13.14 | 25.99 | 286 | .69 | .63 | .97 | .34 | ||||||||||||||||||||||||||||||||||||||
12/31/16 | 11.43 | .05 | .19 | .24 | (.02 | ) | (1.01 | ) | (1.03 | ) | 10.64 | 2.52 | 200 | .79 | .63 | .97 | .43 | ||||||||||||||||||||||||||||||||||||||
12/31/15 | 11.35 | .04 | .04 | .08 | — | — | — | 11.43 | .71 | 146 | .89 | .66 | 1.00 | .31 | |||||||||||||||||||||||||||||||||||||||||
12/31/14 | 11.43 | .12 | .08 | .20 | (.09 | ) | (.19 | ) | (.28 | ) | 11.35 | 1.77 | 79 | .87 | .69 | 1.02 | 1.01 | ||||||||||||||||||||||||||||||||||||||
12/31/133,15 | 10.00 | .12 | 1.37 | 1.49 | (.06 | ) | — | (.06 | ) | 11.43 | 14.94 | 5,11 | 28 | 1.05 | 6,11 | .52 | 6,11 | .85 | 6,11 | 1.69 | 6,11 |
196 | American Funds Insurance Series |
Income (loss) from investment operations | 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) | Distribu- tions (from capital gains) | Total dividends and distribu- tions | Net asset value, end of period | Total return13 | Net asset, end of period (in millions) | Ratio of expenses to average net assets before waivers/ reimburse- ments | Ratio of expenses to average net assets after waivers/ reimburse- ments13 | Net effective expense ratio13,14 | Ratio of net income to average net assets13 | |||||||||||||||||||||||||||||||||||||||||
Managed Risk International Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 8.89 | $ | .11 | $ | 2.47 | $ | 2.58 | $ | (.10 | ) | $ | (.12 | ) | $ | (.22 | ) | $ | 11.25 | 29.28 | %11 | $ | — | 7 | .28 | %11 | .20 | %11 | .69 | %11 | 1.13 | %11 | |||||||||||||||||||||||
12/31/16 | 9.48 | .10 | (.35 | ) | (.25 | ) | (.12 | ) | (.22 | ) | (.34 | ) | 8.89 | (2.59 | )11 | — | 7 | .39 | 11 | .23 | 11 | .74 | 11 | 1.15 | 11 | ||||||||||||||||||||||||||||||
12/31/15 | 10.10 | .18 | (.80 | ) | (.62 | ) | — | 8 | — | — | 8 | 9.48 | (6.12 | )11 | — | 7 | .45 | 11 | .21 | 11 | .72 | 11 | 1.75 | 11 | |||||||||||||||||||||||||||||||
12/31/14 | 10.82 | .14 | (.71 | ) | (.57 | ) | (.15 | ) | — | (.15 | ) | 10.10 | (5.31 | )11 | — | 7 | .50 | 11 | .25 | 11 | .76 | 11 | 1.33 | 11 | |||||||||||||||||||||||||||||||
12/31/133,15 | 10.00 | .13 | .78 | .91 | (.09 | ) | — | (.09 | ) | 10.82 | 9.08 | 5,11 | — | 7 | 1.05 | 6,11 | .23 | 6,11 | .73 | 6,11 | 1.92 | 6,11 | |||||||||||||||||||||||||||||||||
Class P2: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 8.83 | .11 | 2.41 | 2.52 | (.08 | ) | (.12 | ) | (.20 | ) | 11.15 | 28.69 | 148 | .71 | .63 | 1.12 | 1.03 | ||||||||||||||||||||||||||||||||||||||
12/31/16 | 9.43 | .09 | (.38 | ) | (.29 | ) | (.09 | ) | (.22 | ) | (.31 | ) | 8.83 | (3.05 | ) | 97 | .79 | .63 | 1.14 | .97 | |||||||||||||||||||||||||||||||||||
12/31/15 | 10.09 | .13 | (.79 | ) | (.66 | ) | — | 8 | — | — | 8 | 9.43 | (6.52 | ) | 83 | .90 | �� | .66 | 1.17 | 1.30 | |||||||||||||||||||||||||||||||||||
12/31/14 | 10.82 | .16 | (.77 | ) | (.61 | ) | (.12 | ) | — | (.12 | ) | 10.09 | (5.68 | ) | 46 | .91 | .67 | 1.18 | 1.51 | ||||||||||||||||||||||||||||||||||||
12/31/133,15 | 10.00 | .18 | .72 | .90 | (.08 | ) | — | (.08 | ) | 10.82 | 8.99 | 5,11 | 17 | 1.19 | 6,11 | .44 | 6,11 | .94 | 6,11 | 2.66 | 6,11 | ||||||||||||||||||||||||||||||||||
Managed Risk Blue Chip Income and Growth Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 11.67 | $ | .19 | $ | 1.59 | $ | 1.78 | $ | (.22 | ) | $ | (.19 | ) | $ | (.41 | ) | $ | 13.04 | 15.48 | %11 | $ | — | 7 | 30 | %11 | .25 | %11 | 64 | %11 | 1.59 | %11 | |||||||||||||||||||||||
12/31/16 | 10.80 | .20 | 1.25 | 1.45 | (.21 | ) | (.37 | ) | (.58 | ) | 11.67 | 13.77 | 11 | — | 7 | .43 | 11 | .27 | 11 | .67 | 11 | 1.83 | 11 | ||||||||||||||||||||||||||||||||
12/31/15 | 11.70 | .19 | (1.02 | ) | (.83 | ) | (.07 | ) | — | (.07 | ) | 10.80 | (7.07 | )11 | — | 7 | .50 | 11 | .27 | 11 | .66 | 11 | 1.64 | 11 | |||||||||||||||||||||||||||||||
12/31/14 | 11.05 | .40 | .55 | .95 | (.30 | ) | — | (.30 | ) | 11.70 | 8.58 | 11 | — | 7 | .50 | 11 | .31 | 11 | .70 | 11 | 3.43 | 11 | |||||||||||||||||||||||||||||||||
12/31/133,15 | 10.00 | .20 | 1.01 | 1.21 | (.16 | ) | — | (.16 | ) | 11.05 | 12.16 | 5,11 | — | 7 | .84 | 6,11 | .24 | 6,11 | .64 | 6,11 | 2.80 | 6,11 | |||||||||||||||||||||||||||||||||
Class P2: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 11.61 | .17 | 1.55 | 1.72 | (.18 | ) | (.19 | ) | (.37 | ) | 12.96 | 15.03 | 367 | .68 | .63 | 1.02 | 1.43 | ||||||||||||||||||||||||||||||||||||||
12/31/16 | 10.76 | .23 | 1.18 | 1.41 | (.19 | ) | (.37 | ) | (.56 | ) | 11.61 | 13.39 | 291 | .79 | .63 | 1.03 | 2.04 | ||||||||||||||||||||||||||||||||||||||
12/31/15 | 11.67 | .18 | (1.05 | ) | (.87 | ) | (.04 | ) | — | (.04 | ) | 10.76 | (7.43 | ) | 137 | .89 | .66 | 1.05 | 1.57 | ||||||||||||||||||||||||||||||||||||
12/31/14 | 11.05 | .50 | .40 | .90 | (.28 | ) | — | (.28 | ) | 11.67 | 8.10 | 98 | .88 | .69 | 1.08 | 4.27 | |||||||||||||||||||||||||||||||||||||||
12/31/133,15 | 10.00 | .28 | .92 | 1.20 | (.15 | ) | — | (.15 | ) | 11.05 | 12.05 | 5,11 | 26 | 1.04 | 6,11 | .54 | 6,11 | .94 | 6,11 | 3.91 | 6,11 | ||||||||||||||||||||||||||||||||||
Managed Risk Growth-Income Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 11.07 | $ | .19 | $ | 2.03 | $ | 2.22 | $ | (.13 | ) | $ | (.50 | ) | $ | (.63 | ) | $ | 12.66 | 20.64 | %11 | $ | 2 | .44 | %11 | .37 | %11 | .66 | %11 | 1.61 | %11 | ||||||||||||||||||||||||
12/31/16 | 11.25 | .16 | .52 | .68 | (.16 | ) | (.70 | ) | (.86 | ) | 11.07 | 6.49 | 11 | 1 | .52 | 11 | .36 | 11 | .64 | 11 | 1.46 | 11 | |||||||||||||||||||||||||||||||||
12/31/15 | 11.67 | .25 | (.63 | ) | (.38 | ) | (.04 | ) | — | (.04 | ) | 11.25 | (3.27 | )11 | 1 | .56 | 11 | .31 | 11 | .59 | 11 | 2.17 | 11 | ||||||||||||||||||||||||||||||||
12/31/14 | 11.50 | .35 | .21 | .56 | (.14 | ) | (.25 | ) | (.39 | ) | 11.67 | 4.85 | 11 | — | 7 | .45 | 11 | .25 | 11 | .52 | 11 | 2.94 | 11 | ||||||||||||||||||||||||||||||||
12/31/133,15 | 10.00 | .14 | 1.47 | 1.61 | (.11 | ) | — | (.11 | ) | 11.50 | 16.15 | 5,11 | — | 7 | .92 | 6,11 | .23 | 6,11 | .50 | 6,11 | 2.01 | 6,11 | |||||||||||||||||||||||||||||||||
Class P2: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 11.02 | .13 | 2.05 | 2.18 | (.12 | ) | (.50 | ) | (.62 | ) | 12.58 | 20.40 | 206 | .70 | .63 | .92 | 1.08 | ||||||||||||||||||||||||||||||||||||||
12/31/16 | 11.22 | .12 | .52 | .64 | (.14 | ) | (.70 | ) | (.84 | ) | 11.02 | 6.08 | 160 | .79 | .63 | .91 | 1.13 | ||||||||||||||||||||||||||||||||||||||
12/31/15 | 11.65 | .12 | (.54 | ) | (.42 | ) | (.01 | ) | — | (.01 | ) | 11.22 | (3.64 | ) | 122 | .89 | .66 | .94 | 1.04 | ||||||||||||||||||||||||||||||||||||
12/31/14 | 11.50 | .16 | .35 | .51 | (.11 | ) | (.25 | ) | (.36 | ) | 11.65 | 4.42 | 76 | .87 | .69 | .96 | 1.38 | ||||||||||||||||||||||||||||||||||||||
12/31/133,15 | 10.00 | .20 | 1.40 | 1.60 | (.10 | ) | — | (.10 | ) | 11.50 | 16.04 | 5,11 | 24 | 1.09 | 6,11 | .50 | 6,11 | .77 | 6,11 | 2.73 | 6,11 |
See end of tables for footnotes.
American Funds Insurance Series | 197 |
Financial highlights (continued)
Income (loss) from investment operations | 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) | Distribu- tions (from capital gains) | Total dividends and distribu- tions | Net asset value, end of period | Total return13 | Net asset, end of period (in millions) | Ratio of expenses to average net assets before waivers/ reimburse- ments | Ratio of expenses to average net assets after waivers/ reimburse- ments13 | Net effective expense ratio13,14 | Ratio of net income to average net assets13 | ||||||||||||||||||||||||||||||||||||||||||
Managed Risk Asset Allocation Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 12.02 | $ | .19 | $ | 1.60 | $ | 1.79 | $ | (.10 | ) | $ | (.12 | ) | $ | (.22 | ) | $ | 13.59 | 15.06 | % | $ | 1,656 | .43 | % | .38 | % | .66 | % | 1.45 | % | |||||||||||||||||||||||||
12/31/16 | 11.72 | .19 | .67 | .86 | (.19 | ) | (.37 | ) | (.56 | ) | 12.02 | 7.57 | 1,217 | .43 | .38 | .66 | 1.65 | |||||||||||||||||||||||||||||||||||||||
12/31/15 | 12.29 | .25 | (.34 | ) | (.09 | ) | (.22 | ) | (.26 | ) | (.48 | ) | 11.72 | (.83 | ) | 712 | .54 | .40 | .68 | 2.06 | ||||||||||||||||||||||||||||||||||||
12/31/14 | 11.93 | .13 | .26 | .39 | (.03 | ) | — | (.03 | ) | 12.29 | 3.24 | 277 | .53 | .48 | .76 | 1.04 | ||||||||||||||||||||||||||||||||||||||||
12/31/13 | 9.99 | .27 | 1.81 | 2.08 | (.14 | ) | — | (.14 | ) | 11.93 | 20.82 | 11 | 112 | .55 | 11 | .47 | 11 | .75 | 11 | 2.37 | 11 | |||||||||||||||||||||||||||||||||||
Class P2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | 12.01 | .15 | 1.61 | 1.76 | (.10 | ) | (.12 | ) | (.22 | ) | 13.55 | 14.80 | 2,798 | .68 | .63 | .91 | 1.13 | |||||||||||||||||||||||||||||||||||||||
12/31/16 | 11.71 | .14 | .69 | .83 | (.16 | ) | (.37 | ) | (.53 | ) | 12.01 | 7.27 | 2,342 | .68 | .63 | .91 | 1.20 | |||||||||||||||||||||||||||||||||||||||
12/31/15 | 12.27 | .14 | (.26 | ) | (.12 | ) | (.18 | ) | (.26 | ) | (.44 | ) | 11.71 | (1.07 | ) | 1,953 | .79 | .66 | .94 | 1.16 | ||||||||||||||||||||||||||||||||||||
12/31/14 | 11.93 | .16 | .19 | .35 | (.01 | ) | — | (.01 | ) | 12.27 | 2.91 | 1,780 | .79 | .73 | 1.01 | 1.33 | ||||||||||||||||||||||||||||||||||||||||
12/31/13 | 9.99 | .28 | 1.77 | 2.05 | (.11 | ) | — | (.11 | ) | 11.93 | 20.58 | 11 | 795 | .80 | 11 | .73 | 11 | 1.01 | 11 | 2.43 | 11 |
198 | American Funds Insurance Series |
Portfolio turnover rate for all share classes | Period ended December 31 | ||||||||||||||||
excluding mortgage dollar roll transactions16 | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||
Capital Income Builder | 59 | % | 41 | % | 38 | % | 24 | %5,10 | |||||||||
Asset Allocation Fund | 39 | 43 | 28 | 42 | |||||||||||||
Global Balanced Fund | 28 | 43 | 36 | 40 | |||||||||||||
Bond Fund | 153 | 108 | 141 | 121 | Not available | ||||||||||||
Global Bond Fund | 74 | 70 | 88 | 134 | |||||||||||||
Mortgage Fund | 98 | 113 | 138 | 108 | |||||||||||||
U.S. Government/AAA-Rated Securities Fund | 120 | 273 | 352 | 88 |
Portfolio turnover rate for all share classes | Period ended December 31 | |||||||||||||||||||
including mortgage dollar roll transactions, if applicable16 | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Global Growth Fund | 31 | % | 27 | % | 29 | % | 22 | % | 39 | % | ||||||||||
Global Small Capitalization Fund | 33 | 40 | 36 | 28 | 36 | |||||||||||||||
Growth Fund | 24 | 26 | 20 | 29 | 19 | |||||||||||||||
International Fund | 29 | 31 | 37 | 18 | 21 | |||||||||||||||
New World Fund | 56 | 32 | 39 | 36 | 43 | |||||||||||||||
Blue Chip Income and Growth Fund | 34 | 30 | 26 | 37 | 30 | |||||||||||||||
Global Growth and Income Fund | 41 | 57 | 37 | 28 | 31 | |||||||||||||||
Growth-Income Fund | 27 | 27 | 25 | 25 | 19 | |||||||||||||||
International Growth and Income Fund | 51 | 32 | 35 | 34 | 34 | |||||||||||||||
Capital Income Builder Fund | 88 | 53 | 128 | 35 | 5,10 | |||||||||||||||
Asset Allocation Fund | 85 | 83 | 76 | 88 | 74 | |||||||||||||||
Global Balanced Fund | 41 | 65 | 76 | 73 | 81 | |||||||||||||||
Bond Fund | 502 | 375 | 434 | 365 | 354 | |||||||||||||||
Global Bond Fund | 105 | 154 | 159 | 200 | 213 | |||||||||||||||
High-Income Bond Fund | 78 | 89 | 66 | 54 | 64 | |||||||||||||||
Mortgage Fund | 680 | 713 | 1103 | 790 | 715 | |||||||||||||||
Ultra-Short Bond Fund | — | 17 | — | 12,17 | N/A | N/A | N/A | |||||||||||||
U.S. Government/AAA-Rated Securities Fund | 551 | 539 | 901 | 387 | 621 | |||||||||||||||
Managed Risk Growth Fund | 25 | 15 | 16 | 22 | 10 | 3,5,15 | ||||||||||||||
Managed Risk International Fund | 25 | 26 | 15 | 22 | 6 | 3,5,15 | ||||||||||||||
Managed Risk Blue Chip Income and Growth Fund | 32 | 9 | 20 | 22 | 3 | 3,5,15 | ||||||||||||||
Managed Risk Growth-Income Fund | 26 | 14 | 11 | 28 | 2 | 3,5,15 | ||||||||||||||
Managed Risk Asset Allocation Fund | 1 | 3 | 3 | 3 | 3 |
1 | Based on average shares outstanding. |
2 | For the year ended December 31, 2014, reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, the net investment income per share and ratio of net income to average net assets would have been lower for all share classes. |
3 | Based on operations for a period that is less than a full year. |
4 | Class 1A shares began investment operations on January 6, 2017. |
5 | Not annualized. |
6 | Annualized. |
7 | Amount less than $1 million. |
8 | Amount less than $.01. |
9 | Amount less than .01%. |
10 | For the period May 1, 2014, commencement of operations, through December 31, 2014. |
11 | All or a significant portion of assets in this class consisted of seed capital invested by CRMC and/or its affiliates. Certain fees (including, where applicable, fees for distribution services) are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower. |
12 | On May 1, 2016, the fund converted from a cash fund to an ultra-short-term bond fund and changed its name from Cash Management Fund to Ultra-Short Bond Fund. |
13 | This column reflects the impact of certain waivers/reimbursements by CRMC. CRMC waived a portion of investment advisory services fees for all of the managed risk funds. CRMC also reimbursed a portion of miscellaneous fees and expenses during some of the periods shown for some of the managed risk funds. |
14 | 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. |
15 | For the period May 1, 2013, commencement of operations, through December 31, 2013. |
16 | Refer to Note 5 for further information on mortgage dollar rolls. |
17 | Amount is either less than 1% or there is no turnover. |
See Notes to Financial Statements
American Funds Insurance Series | 199 |
Report of Independent Registered Public Accounting Firm
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including summary investment portfolios of Global Growth Fund, Global Small Capitalization Fund, Growth Fund, International Fund, New World Fund®, Blue Chip Income and Growth Fund, Global Growth and Income Fund, Growth-Income Fund, International Growth and Income Fund, Capital Income Builder®, Asset Allocation Fund, Global Balanced Fund, Bond Fund, Global Bond Fund, High-Income Bond Fund, Mortgage Fund, Ultra-Short Bond Fund, U.S. Government/AAA-Rated Securities Fund and investment portfolios for Ultra-Short Bond Fund, Managed Risk Growth Fund, Managed Risk International Fund, Managed Risk Blue Chip Income and Growth Fund, Managed Risk Growth-Income Fund and Managed Risk Asset Allocation Fund, Managed Risk Growth Fund, Managed Risk International Fund, Managed Risk Blue Chip Income and Growth Fund, Managed Risk Growth-Income Fund and Managed Risk Asset Allocation Fund (twenty-three of the funds constituting American Funds Insurance Series, hereafter collectively referred to as the “Funds”) as of December 31, 2017, the related statements of operations for the year ended December 31, 2017, the statements of changes in net assets for each of the two years in the period ended December 31, 2017, including the related notes, and the financial highlights for each of the periods indicated herein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2017, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended December 31, 2017 and each of the financial highlights for each of the periods indicated herein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2017 by correspondence with the custodians, transfer agents and brokers. We believe that our audits provide a reasonable basis for our opinions.
PricewaterhouseCoopers LLP
Los Angeles, California
February 9, 2018
We have served as the auditor of one or more investment companies in The Capital Group Companies Investment Company Complex since 1934.
200 | American Funds Insurance Series |
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, 2017, through December 31, 2017).
Actual expenses:
The first line of each share class in the table on the following pages provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading titled “Expenses paid during period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes:
The second line of each share class in the table on the following pages provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.
Notes:
Additional fees are charged by the insurance companies related to the various benefits they provide. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.
Note that the expenses shown in the table on the following pages are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the second line of each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
American Funds Insurance Series | 201 |
Beginning account value 7/1/2017 | Ending account value 12/31/2017 | Expenses paid during period1 | Annualized expense ratio | |||||||||||||
Global Growth Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,109.92 | $ | 2.98 | .56 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,022.38 | 2.85 | .56 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,108.56 | 4.25 | .80 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,021.17 | 4.08 | .80 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,108.84 | 4.31 | .81 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,021.12 | 4.13 | .81 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,106.95 | 5.63 | 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 | $ | 1,118.73 | $ | 3.95 | .74 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,021.48 | 3.77 | .74 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,117.26 | 5.18 | .97 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,020.32 | 4.94 | .97 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,117.00 | 5.28 | .99 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,020.21 | 5.04 | .99 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,116.02 | 6.61 | 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 | $ | 1,116.99 | $ | 1.87 | .35 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,023.44 | 1.79 | .35 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,115.57 | 3.15 | .59 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,022.23 | 3.01 | .59 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,115.54 | 3.20 | .60 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,022.18 | 3.06 | .60 | ||||||||||||
Class 3 – actual return | 1,000.00 | 1,115.90 | 2.83 | .53 | ||||||||||||
Class 3 – assumed 5% return | 1,000.00 | 1,022.53 | 2.70 | .53 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,114.18 | 4.53 | .85 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,020.92 | 4.33 | .85 | ||||||||||||
International Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,115.85 | $ | 2.83 | .53 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,022.53 | 2.70 | .53 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,114.40 | 4.16 | .78 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,021.27 | 3.97 | .78 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,114.72 | 4.16 | .78 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,021.27 | 3.97 | .78 | ||||||||||||
Class 3 – actual return | 1,000.00 | 1,114.58 | 3.78 | .71 | ||||||||||||
Class 3 – assumed 5% return | 1,000.00 | 1,021.63 | 3.62 | .71 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,113.20 | 5.49 | 1.03 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,020.01 | 5.24 | 1.03 | ||||||||||||
New World Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,132.10 | $ | 4.19 | .78 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,021.27 | 3.97 | .78 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,130.42 | 5.42 | 1.01 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,020.11 | 5.14 | 1.01 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,130.73 | 5.53 | 1.03 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,020.01 | 5.24 | 1.03 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,128.90 | 6.87 | 1.28 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,018.75 | 6.51 | 1.28 |
202 | American Funds Insurance Series |
Beginning account value 7/1/2017 | Ending account value 12/31/2017 | Expenses paid during period1 | Annualized expense ratio | |||||||||||||
Blue Chip Income and Growth Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,108.43 | $ | 2.18 | .41 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,023.14 | 2.09 | .41 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,107.22 | 3.45 | .65 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,021.93 | 3.31 | .65 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,106.66 | 3.50 | .66 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,021.88 | 3.36 | .66 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,105.98 | 4.83 | .91 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,020.62 | 4.63 | .91 | ||||||||||||
Global Growth and Income Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,100.31 | $ | 3.39 | .64 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,021.98 | 3.26 | .64 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,099.92 | 4.55 | .86 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,020.87 | 4.38 | .86 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,099.08 | 4.71 | .89 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,020.72 | 4.53 | .89 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,098.18 | 6.03 | 1.14 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,019.46 | 5.80 | 1.14 | ||||||||||||
Growth-Income Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,116.34 | $ | 1.49 | .28 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,023.79 | 1.43 | .28 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,114.88 | 2.83 | .53 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,022.53 | 2.70 | .53 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,114.95 | 2.83 | .53 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,022.53 | 2.70 | .53 | ||||||||||||
Class 3 – actual return | 1,000.00 | 1,114.98 | 2.45 | .46 | ||||||||||||
Class 3 – assumed 5% return | 1,000.00 | 1,022.89 | 2.35 | .46 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,113.47 | 4.16 | .78 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,021.27 | 3.97 | .78 | ||||||||||||
International Growth and Income Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,084.53 | $ | 3.42 | .65 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,021.93 | 3.31 | .65 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,083.17 | 4.83 | .92 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,020.57 | 4.69 | .92 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,082.65 | 4.72 | .90 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,020.67 | 4.58 | .90 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,081.77 | 6.03 | 1.15 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,019.41 | 5.85 | 1.15 | ||||||||||||
Capital Income Builder | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,046.34 | $ | 2.84 | .55 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,022.43 | 2.80 | .55 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,045.28 | 4.12 | .80 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,021.17 | 4.08 | .80 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,045.17 | 4.12 | .80 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,021.17 | 4.08 | .80 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,043.83 | 5.41 | 1.05 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,019.91 | 5.35 | 1.05 |
See end of tables for footnotes.
American Funds Insurance Series | 203 |
Beginning account value 7/1/2017 | Ending account value 12/31/2017 | Expenses paid during period1 | Annualized expense ratio | |||||||||||||
Asset Allocation Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,075.96 | $ | 1.52 | .29 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,023.74 | 1.48 | .29 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,074.67 | 2.77 | .53 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,022.53 | 2.70 | .53 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,074.53 | 2.82 | .54 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,022.48 | 2.75 | .54 | ||||||||||||
Class 3 – actual return | 1,000.00 | 1,074.80 | 2.46 | .47 | ||||||||||||
Class 3 – assumed 5% return | 1,000.00 | 1,022.84 | 2.40 | .47 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,073.03 | 4.13 | .79 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,021.22 | 4.02 | .79 | ||||||||||||
Global Balanced Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,078.42 | $ | 3.82 | .73 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,021.53 | 3.72 | .73 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,077.23 | 5.08 | .97 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,020.32 | 4.94 | .97 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,076.06 | 5.13 | .98 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,020.27 | 4.99 | .98 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,075.47 | 6.43 | 1.23 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,019.00 | 6.26 | 1.23 | ||||||||||||
Bond Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,012.27 | $ | 1.93 | .38 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,023.29 | 1.94 | .38 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,010.94 | 3.19 | .63 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,022.03 | 3.21 | .63 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,011.27 | 3.19 | .63 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,022.03 | 3.21 | .63 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,009.80 | 4.46 | .88 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,020.77 | 4.48 | .88 | ||||||||||||
Global Bond Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,019.28 | $ | 2.85 | .56 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,022.38 | 2.85 | .56 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,018.24 | 3.82 | .75 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,021.42 | 3.82 | .75 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,018.21 | 4.12 | .81 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,021.12 | 4.13 | .81 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,016.69 | 5.39 | 1.06 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,019.86 | 5.40 | 1.06 | ||||||||||||
High-Income Bond Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,025.31 | $ | 2.55 | .50 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,022.68 | 2.55 | .50 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,023.44 | 3.72 | .73 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,021.53 | 3.72 | .73 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,023.54 | 3.83 | .75 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,021.42 | 3.82 | .75 | ||||||||||||
Class 3 – actual return | 1,000.00 | 1,024.55 | 3.47 | .68 | ||||||||||||
Class 3 – assumed 5% return | 1,000.00 | 1,021.78 | 3.47 | .68 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,022.46 | 5.10 | 1.00 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,020.16 | 5.09 | 1.00 |
204 | American Funds Insurance Series |
Beginning account value 7/1/2017 | Ending account value 12/31/2017 | Expenses paid during period1 | Annualized expense ratio | |||||||||||||
Mortgage Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 999.60 | $ | 2.52 | .50 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,022.68 | 2.55 | .50 | ||||||||||||
Class 1A – actual return | 1,000.00 | 998.01 | 3.63 | .72 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,021.58 | 3.67 | .72 | ||||||||||||
Class 2 – actual return | 1,000.00 | 998.48 | 3.78 | .75 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,021.42 | 3.82 | .75 | ||||||||||||
Class 4 – actual return | 1,000.00 | 997.26 | 5.03 | 1.00 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,020.16 | 5.09 | 1.00 | ||||||||||||
Ultra-Short Bond Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,003.97 | $ | 1.87 | .37 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,023.34 | 1.89 | .37 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,004.05 | 1.77 | .35 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,023.44 | 1.79 | .35 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,003.68 | 3.08 | .61 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,022.13 | 3.11 | .61 | ||||||||||||
Class 3 – actual return | 1,000.00 | 1,003.57 | 2.73 | .54 | ||||||||||||
Class 3 – assumed 5% return | 1,000.00 | 1,022.48 | 2.75 | .54 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,001.58 | 4.34 | .86 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,020.87 | 4.38 | .86 | ||||||||||||
U.S. Government/AAA-Rated Securities Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 999.63 | $ | 1.81 | .36 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,023.39 | 1.84 | .36 | ||||||||||||
Class 1A – actual return | 1,000.00 | 998.61 | 2.97 | .59 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,022.23 | 3.01 | .59 | ||||||||||||
Class 2 – actual return | 1,000.00 | 998.34 | 3.07 | .61 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,022.13 | 3.11 | .61 | ||||||||||||
Class 3 – actual return | 1,000.00 | 998.91 | 2.72 | .54 | ||||||||||||
Class 3 – assumed 5% return | 1,000.00 | 1,022.48 | 2.75 | .54 | ||||||||||||
Class 4 – actual return | 1,000.00 | 996.62 | 4.33 | .86 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,020.87 | 4.38 | .86 |
See end of tables for footnotes.
American Funds Insurance Series | 205 |
Beginning account value 7/1/2017 | Ending account value 12/31/2017 | 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 | $ | 1,106.28 | $ | 1.91 | .36 | % | $ | 3.72 | .70 | % | ||||||||||||
Class P1 – assumed 5% return | 1,000.00 | 1,023.39 | 1.84 | .36 | 3.57 | .70 | ||||||||||||||||||
Class P2 – actual return | 1,000.00 | 1,106.06 | 3.34 | .63 | 5.15 | .97 | ||||||||||||||||||
Class P2 – assumed 5% return | 1,000.00 | 1,022.03 | 3.21 | .63 | 4.94 | .97 | ||||||||||||||||||
Managed Risk International Fund | ||||||||||||||||||||||||
Class P1 – actual return | $ | 1,000.00 | $ | 1,106.19 | $ | .90 | .17 | % | $ | 3.66 | .69 | % | ||||||||||||
Class P1 – assumed 5% return | 1,000.00 | 1,024.35 | .87 | .17 | 3.52 | .69 | ||||||||||||||||||
Class P2 – actual return | 1,000.00 | 1,103.96 | 3.34 | .63 | 5.94 | 1.12 | ||||||||||||||||||
Class P2 – assumed 5% return | 1,000.00 | 1,022.03 | 3.21 | .63 | 5.70 | 1.12 | ||||||||||||||||||
Managed Risk Blue Chip Income and Growth Fund | ||||||||||||||||||||||||
Class P1 – actual return | $ | 1,000.00 | $ | 1,096.01 | $ | 1.22 | .23 | % | $ | 3.38 | .64 | % | ||||||||||||
Class P1 – assumed 5% return | 1,000.00 | 1,024.05 | 1.17 | .23 | 3.26 | .64 | ||||||||||||||||||
Class P2 – actual return | 1,000.00 | 1,094.42 | 3.33 | .63 | 5.38 | 1.02 | ||||||||||||||||||
Class P2 – assumed 5% return | 1,000.00 | 1,022.03 | 3.21 | .63 | 5.19 | 1.02 | ||||||||||||||||||
Managed Risk Growth-Income Fund | ||||||||||||||||||||||||
Class P1 – actual return | $ | 1,000.00 | $ | 1,105.67 | $ | 1.96 | .37 | % | $ | 3.50 | .66 | % | ||||||||||||
Class P1 – assumed 5% return | 1,000.00 | 1,023.34 | 1.89 | .37 | 3.36 | .66 | ||||||||||||||||||
Class P2 – actual return | 1,000.00 | 1,103.51 | 3.34 | .63 | 4.88 | .92 | ||||||||||||||||||
Class P2 – assumed 5% return | 1,000.00 | 1,022.03 | 3.21 | .63 | 4.69 | .92 | ||||||||||||||||||
Managed Risk Asset Allocation Fund | ||||||||||||||||||||||||
Class P1 – actual return | $ | 1,000.00 | $ | 1,070.08 | $ | 1.98 | .38 | % | $ | 3.44 | .66 | % | ||||||||||||
Class P1 – assumed 5% return | 1,000.00 | 1,023.29 | 1.94 | .38 | 3.36 | .66 | ||||||||||||||||||
Class P2 – actual return | 1,000.00 | 1,068.61 | 3.28 | .63 | 4.74 | .91 | ||||||||||||||||||
Class P2 – assumed 5% return | 1,000.00 | 1,022.03 | 3.21 | .63 | 4.63 | .91 |
1 | The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 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 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. |
206 | American Funds Insurance Series |
Approval of Investment Advisory and Service Agreement — American Funds Insurance Series
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 January 31, 2019. The agreement was amended to add an additional advisory fee breakpoint for New World Fund when the fund’s net assets exceed $4 billion, for Blue Chip Income and Growth Fund when the fund’s net assets exceed $10.5 billion, and for Bond Fund when the fund’s net assets exceed $13 billion. 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 in the exercise of their business judgment 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 following factors, among others, but did not identify any single issue or particular piece of information that, in isolation, was the controlling factor, and each board and committee member did not necessarily attribute the same weight to each factor.
1. Nature, extent and quality of services
The board and the committee considered the depth and quality of CRMC’s investment management process, including its global research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of CRMC and the Capital Group organization; the resources and systems CRMC devotes to investment management, compliance, trading, portfolio accounting and other services; and the ongoing evolution of CRMC’s organizational structure designed to maintain and strengthen these qualities. The board and the committee also considered the nature, extent and quality of administrative, 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 relevant benchmarks, such as market indexes and fund averages, over various periods through June 30, 2017. 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 and (ii) the MSCI All Country World Index. They noted that the fund’s investment results were higher than all of the comparisons.
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 and (ii) the MSCI All Country World Small Cap Index. They noted that the fund’s investment results were higher than the benchmarks for the six-month period and over the lifetime of the fund since April 30, 1998, below the benchmarks for the one-year, three-year, five-year and 10-year periods, and were mixed for the 15-year period.
American Funds Insurance Series | 207 |
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 and (iii) the Standard & Poor’s 500 Composite Index. They noted that the fund’s investment results were higher than all of the comparisons.
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 and (ii) the MSCI All Country World Index ex USA. They noted that the fund’s investment results were higher than all of the comparisons.
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, (ii) the MSCI All Country World Index and (iii) the MSCI Emerging Markets Index. They noted that the fund’s investment results were higher than the benchmarks over the 10-year period and lifetime of the fund since June 17, 1999, below the benchmarks for the one-year period, and mixed for the six-month, three-year, five-year and 15-year periods.
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 and (ii) the Standard & Poor’s 500 Composite Index. They noted that the fund’s investment results were above both benchmarks over the five-year period, below the benchmarks for the six-month period, and mixed for the one-year, three-year and 10-year periods and 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 and (ii) the MSCI All Country World Index. They noted that the fund’s investment results were higher than all of the comparisons.
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 and (ii) the Standard & Poor’s 500 Composite Index. They noted that the fund’s investment results were higher than both benchmarks over the six-month, one-year, five-year and 20-year periods and lifetime of the fund since February 8, 1984, and were mixed for the three-year, 10-year and 15-year periods.
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 and (ii) the MSCI All Country World Index ex USA. They noted that the fund’s investment results were higher than both benchmarks over the six-month period and lifetime of the fund since November 18, 2008, and were below the benchmarks for the one-year and three-year periods.
208 | American Funds Insurance Series |
Capital Income Builder seeks to provide a level of current income that exceeds the average yield on U.S. stocks generally and to provide a growing stream of income over the years. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Global Equity Income Funds Average, (ii) the MSCI All Country World Index, (iii) the Bloomberg Barclays U.S. Aggregate Index and (iv) a customized index composed of 70% MSCI index and 30% Bloomberg Barclays index. They noted that for all periods, the fund’s investment results were above the Bloomberg Barclays index and below all other benchmarks.
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, (ii) the Bloomberg Barclays U.S. Aggregate Index, (iii) the Standard & Poor’s 500 Composite Index and (iv) a customized index composed of 60% S&P 500 index and 40% Bloomberg Barclays index. They noted that for the 20-year period, the fund’s investment results were above all benchmarks, and for the six-month, one-year, three-year, five-year and 15-year periods, the fund’s investment results were above all benchmarks except the S&P 500 index. They also noted that for the 10-year period and lifetime of the fund since August 1, 1989, the fund’s investment results were mixed.
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 Flexible Portfolio Funds Average, (ii) the Bloomberg Barclays Global Aggregate Bond Index, (iii) the MSCI All Country World Index and (iv) a customized index composed of 60% MSCI index and 40% Bloomberg Barclays index. They noted that the fund’s results were above all benchmarks except the MSCI index for all 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 Core Bond Funds Average and (ii) the Bloomberg Barclays U.S. Aggregate Index. They noted that the fund’s investment results were above the Lipper average and the Bloomberg Barclays index for the six-month, three-year, five-year and 15-year periods, but below both benchmarks for the 10-year and 20-year periods, and mixed for the one-year period and for the lifetime of the fund since January 2, 1996.
American Funds Insurance Series | 209 |
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 denominated 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 Index and (ii) the Bloomberg Barclays Global Aggregate Bond Index. They noted that the fund’s results were higher than both benchmarks for the six-month and 10-year periods and for the lifetime of the fund since October 4, 2006. They also noted that the fund’s investment results were mixed for the one-year, three-year and five-year periods.
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 and (ii) the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index. They noted that the fund’s investment results were higher than both benchmarks for the one-year period, higher than the Lipper average over the lifetime of the fund since February 8, 1984 (data for the Bloomberg Barclays index was not available for the period), below both benchmarks for the 10-year period, and were mixed for the six-month, three-year, five-year, 15-year and 20-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 Intermediate U.S. Government Funds Average and (iii) the Bloomberg Barclays U.S. Mortgage-Backed Securities Index. They noted that the fund’s investment results were higher than all of the comparisons.
Ultra-Short Bond 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 (i) the Lipper Ultra-Short Obligation Funds Average, (ii) the Lipper Money Market Funds Average and (iii) the Bloomberg Barclays Short-Term Government/Corporate Index. They noted that the fund’s investment results were lower than all the benchmarks for the three-year, five-year, 10-year and 20-year periods, and were mixed for the six-month period and lifetime of the fund since February 8, 1984.
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 and (ii) the Bloomberg Barclays U.S. Government/Mortgage-Backed Securities Index. They noted that the fund’s investment results were above both benchmarks for the six-month, one-year, three-year and five-year periods. They also noted that the fund’s results were above the Lipper average but below the Bloomberg Barclays index for the 10-year, 15-year and 20-year periods, as well as over the lifetime of the fund since December 2, 1985.
210 | American Funds Insurance Series |
The board and the committee concluded that each fund’s investment results have been satisfactory for renewal of the agreement, and that CRMC’s record in managing the funds indicated that its continued management should benefit each fund and its shareholders.
3. Advisory fees and total expenses
The board and the committee compared the advisory fees and total expense levels of each fund to those of other relevant funds. They observed that the expenses of each 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, other than the Mortgage Fund, Bond Fund and Ultra-Short Bond Fund.
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. The board and the committee noted that CRMC had agreed to additional breakpoints for the advisory fee schedules of AFIS — New World Fund, AFIS — Blue Chip Income and Growth Fund and AFIS — Bond Fund. 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 the benefits CRMC receives from the research obtained with commissions from portfolio transactions made on behalf of the funds. The board and the committee took these ancillary benefits into account in evaluating the reasonableness of the advisory fees and other amounts paid to CRMC by each fund.
5. Adviser financial information
The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, including personnel, systems and resources of investment, compliance, trading, accounting and other administrative operations. They considered CRMC’s costs and related cost allocation methodology as well as its 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 also considered CRMC’s sharing of any economies of scale, or efficiencies, through breakpoints and other fee reductions and costs voluntarily absorbed. 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. They further considered the breakpoint discounts in the fund’s advisory fee structure. 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. The board and the committee concluded that each fund’s investment results have been satisfactory for renewal of the agreement, and that CRMC’s record in managing the funds indicated that its continued management should benefit each fund and its shareholders.
American Funds Insurance Series | 211 |
Approval of Investment Advisory and Service Agreement and Subadvisory Agreement — American Funds Insurance Series Managed Risk Funds
American Funds Insurance Series’ board has approved the series’ Investment Advisory and Service Agreement (the “advisory agreement”) with Capital Research and Management Company (“CRMC”) with respect to the Managed Risk Funds for an additional one-year term through January 31, 2019. The board has also approved the series’ Subadvisory Agreement (the “subadvisory agreement”) with CRMC and Milliman Financial Risk Management LLC (“Milliman FRM”) with respect to these funds for the same term. The advisory and subadvisory agreements are jointly referred to below as the “agreements.” The board approved the agreements following the recommendation of the series’ Contracts Committee (the “committee”), which is composed of all of the series’ independent board members. The board and the committee determined in the exercise of their business judgment 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 following factors, among others, but did not identify any single issue or particular piece of information that, in isolation, was the controlling factor, and each board and committee member did not necessarily attribute the same weight to each factor.
1. Nature, extent and quality of services
The board and the committee considered the depth and quality of CRMC’s investment management process, including its global research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of CRMC and the Capital Group organization; the resources and systems CRMC devotes to investment management, compliance, trading, portfolio accounting and other services; and the ongoing evolution of CRMC’s organizational structure designed to maintain and strengthen these qualities. The board and the committee also considered the nature, extent and quality of the oversight of Milliman FRM’s services provided by CRMC, the administrative, compliance and shareholder services 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 and the committee also considered the depth and quality of Milliman FRM’s investment management process, including its experience in applying the Milliman Managed Risk Strategy to other funds of the series and risk management services for other clients; the experience, capability and integrity of its senior management and other personnel; and the services provided to each fund under the subadvisory agreement. The board and the committee concluded that the nature, extent and quality of the services provided by Milliman FRM have benefited and should continue to benefit each fund and its shareholders.
2. Investment results
The board and the committee considered the investment results of each fund in light of its objectives. They compared each fund’s investment results with relevant benchmarks, such as market indexes and fund averages, over various periods through June 30, 2017. 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 Standard & Poor’s 500 Composite Index and (ii) the Standard & Poor’s 500 Managed Risk Index — Moderate Aggressive. They noted that the fund’s investment results were above both benchmarks for the three-month, six-month and one-year periods, and below both benchmarks for the three-year period and lifetime of the fund since May 1, 2013.
212 | 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 MSCI All Country World Index ex USA and (ii) the Standard & Poor’s EPAC Ex. Korea LargeMidCap Managed Risk Index —Moderate Aggressive. They noted that the fund’s investment results were above both benchmarks for the three-month and six-month periods. They also noted that for the one-year and three-year periods, the fund’s investment results were above the S&P EPAC index and below the MSCI index, and for the lifetime of the fund since May 1, 2013, the fund’s results were below both the MSCI index and the S&P EPAC 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 Standard & Poor’s 500 Composite Index and (ii) the Standard & Poor’s 500 Managed Risk Index — Moderate Aggressive. They noted that the fund’s investment results were lower than all of the comparisons.
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 Standard & Poor’s 500 Composite Index and (ii) the Standard & Poor’s 500 Managed Risk Index — Moderate Aggressive. They noted that the fund’s investment results were below all benchmarks for the three-month and three-year periods and for the lifetime of the fund since May 1, 2015, and were mixed for the six-month and one-year periods.
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 Bloomberg Barclays U.S. Aggregate Index, (ii) the Standard & Poor’s 500 Composite Index and (iii) the Standard & Poor’s 500 Managed Risk Index — Moderate. They noted that the fund’s investment results were higher than the Bloomberg Barclays index for all periods, but below both S&P 500 indexes for the three-month and three-year periods and for the lifetime of the fund since October 1, 2012. They also noted the fund’s investment results were mixed for the six-month and one-year periods.
The board and the committee also considered the volatility of the funds compared with the Standard & Poor’s 500 Managed Risk indexes noted above, and those of a group of funds with volatility management strategies identified by management for the three-month, six-month, one-year and three-year periods and lifetime of the fund, through June 30, 2017. They noted that the volatility of Managed Risk Growth Fund, Managed Risk Blue Chip Income and Growth Fund, and Managed Risk Growth-Income Fund was greater than that of the S&P 500 Managed Risk indexes and most of the selected funds for all periods. They also noted that the volatility of Managed Risk International Fund was lower than all comparisons, except for the S&P 500 Managed Risk index for the six-month period. In addition, they noted that the volatility of Managed Risk Asset Allocation Fund was lower than that of the S&P 500 Managed Risk index for all periods, and lower than most of the selected funds for all periods, except for the three-year period and lifetime of the fund through June 30, 2017. The board and the committee also noted, however, that for those periods the equity markets did not sustain large market declines of the type that Milliman FRM’s volatility management program was designed to protect against. The board and the committee concluded that each fund’s investment results, and the results of the services provided by Milliman FRM, have been satisfactory for renewal of the agreement, and that CRMC’s and Milliman FRM’s record in managing the funds indicated that their continued management should benefit each fund and its shareholders.
American Funds Insurance Series | 213 |
3. Advisory fees and total expenses
The board and the committee compared the advisory fees and total expense levels of each fund to those of other relevant funds. The board and the committee noted CRMC’s waiver of a portion of the advisory fee payable by each fund under the advisory agreement, CRMC’s commitment not to remove the waiver without board approval and CRMC’s agreement to pay the fees due Milliman FRM under the subadvisory agreement. They observed that the total advisory fees and expenses for Managed Risk Growth Fund were lower than the median and average for the Lipper Growth Funds Average (variable insurance), and that the total advisory fees and expenses for Managed Risk International Fund were lower than the median and average for the Lipper International Funds Average (variable insurance), and that the total advisory fees and expenses for Managed Risk Blue Chip Income and Growth Fund were at or slightly above the median of the Lipper Growth and Income Funds Average (variable insurance). They also noted that the total advisory fees and expenses for Managed Risk Growth-Income Fund were lower than the median and average for the Lipper Growth and Income Funds Average (variable insurance), and that the total advisory fees and expenses for Managed Risk Asset Allocation Fund were lower than the Lipper Flexible Portfolio Funds Average (variable insurance).
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, regulatory and marketing differences between advising the funds and the other clients. They also reviewed the fees paid to Milliman FRM by other funds which it advised or subadvised. The board and the committee concluded that each fund’s cost structure was fair and reasonable in relation to the services that CRMC provided, directly and through Milliman FRM, and that each fund’s shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC (and indirectly to Milliman FRM) by the funds.
4. Ancillary benefits
The board and the committee considered a variety of other benefits that CRMC and its affiliates receive as a result of CRMC’s relationship with the series and the other American Funds, including fees for administrative services provided to certain share classes; fees paid to CRMC’s affiliated transfer agent; sales charges and distribution fees received and retained by the series’ principal underwriter, an affiliate of CRMC; and possible ancillary benefits to CRMC and its institutional management affiliates in managing other investment vehicles. The board and the committee reviewed CRMC’s portfolio trading practices, noting the benefits CRMC receives from the research obtained with commissions from portfolio transactions made on behalf of the funds. The board and the committee also reviewed similar ancillary benefits received by Milliman FRM as a result of its relationship with the series. The board and the committee took these ancillary benefits into account in evaluating the reasonableness of the advisory fees and other amounts paid to CRMC (and indirectly to Milliman FRM) by the funds.
5. Adviser financial information
The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, including personnel, systems and resources of investment, compliance, trading, accounting and other administrative operations. They considered CRMC’s costs and related cost allocation methodology as well as its 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 also considered CRMC’s sharing of any economies of scale, or efficiencies, through breakpoints and other fee reductions and costs voluntarily absorbed. 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.
214 | American Funds Insurance Series |
Board of trustees and other officers
Independent trustees1
Name and year of birth | 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, 1945 | 2009 | CEO and President, Richard Nixon Foundation; Chairman of the Board and CEO, Oakwood Enterprises (private investment and consulting) | 80 | General Finance Corporation | ||||
James G. Ellis, 1947 | 2010 | Dean and Professor of Marketing, Marshall School of Business, University of Southern California | 80 | Mercury General Corporation | ||||
Nariman Farvardin, PhD, 1956 | 2018 | President, Stevens Institute of Technology | 77 | None | ||||
Leonard R. Fuller, 1946 | 1999 | Private investor; former President and CEO, Fuller Consulting (financial management consulting) | 80 | None | ||||
Mary Davis Holt, 1950 | 2015–2016 2017 | Principal, Mary Davis Holt Enterprises, LLC (leadership development consulting); former Partner, Flynn Heath Holt Leadership, LLC (leadership consulting); former COO, Time Life Inc. (1993–2003) | 77 | None | ||||
R. Clark Hooper, 1946 Chairman of the Board (Independent and Non-Executive) | 2010 | Private investor | 80 | None | ||||
Merit E. Janow, 1958 | 2007 | Dean and Professor, Columbia University, School of International and Public Affairs | 79 | Mastercard Incorporated; Trimble Inc. | ||||
Laurel B. Mitchell, PhD, 1955 | 2010 | Chair, California Jump$tart Coalition for Personal Financial Literacy; Part-time faculty, Pomona College; former Distinguished Professor of Accounting, University of Redlands; former Director, Accounting Program, University of Redlands | 76 | None | ||||
Frank M. Sanchez, 1943 | 2010 | Principal, The Sanchez Family Corporation dba McDonald’s Restaurants (McDonald’s licensee) | 76 | None | ||||
Margaret Spellings, 1957 | 2010 | President, The University of North Carolina; former 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 | 81 | None | ||||
Alexandra Trower, 1964 | 2018 | Executive Vice President, Global Communications and Corporate Officer, The Estée Lauder Companies | 67 | None |
We are deeply saddened by the loss of Dr. Steadman Upham, who passed away on July 30, 2017. Dr. Upham served as an independent trustee on the boards of several American Funds since 2001. His wise counsel and friendship will be missed.
Interested trustee4,5
Name, year of birth 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, 1960 Vice Chairman of the Board | 1998 | Partner — Capital Research Global Investors, Capital Research and Management Company; Director, Capital Research and Management Company | 31 | None |
The series statement of additional information includes further details about the series trustees and is available without charge upon request by calling American Funds Service Company at (800) 421-4225 or by visiting the American Funds website at americanfunds.com. The address for all trustees and officers of the series is 333 South Hope Street, Los Angeles, CA 90071, Attention: Secretary.
American Funds Insurance Series | 215 |
Other officers5
Name, year of birth and position with series | Year first elected an officer of the series2 | Principal occupation(s) during past five years and positions held with affiliated entities or the principal underwriter of the series | ||
Alan N. Berro, 1960 President | 1998 | Partner — Capital World Investors, Capital Research and Management Company; Director, Capital Research and Management Company | ||
Michael J. Downer, 1955 Executive Vice President | 1991 | Director, Senior Vice President and Secretary, Capital Research and Management Company; Chairman of the Board, Capital Bank and Trust Company6 | ||
John H. Smet, 1956 Senior Vice President | 1994 | Partner — Capital Fixed Income Investors, Capital Research and Management Company; Director, Capital Research and Management Company
| ||
Martin Jacobs, 1962 Vice President | 2016 | Partner — Capital World Investors, Capital Research and Management Company | ||
Carl M. Kawaja, 1964 Vice President | 2008 | Partner — Capital World Investors, Capital Research and Management Company; Director, The Capital Group Companies, Inc.6 | ||
Sung Lee, 1966 Vice President | 2008 | Partner — Capital Research Global Investors, Capital International, Inc.6 | ||
S. Keiko McKibben, 1969 Vice President | 2010 | Partner — Capital Research Global Investors, Capital Research and Management Company | ||
Maria T. Manotok Pathria, 1974 Vice President | 2012 | Senior Vice President and Senior Counsel — Fund Business Management Group, Capital Research and Management Company; Director, Capital Guardian Trust Company6 | ||
Renaud H. Samyn, 1974 Vice President | 2010 | Partner — Capital Research Global Investors, Capital International, Inc.6 | ||
Dylan Yolles, 1969 Vice President | 2012 | Partner — Capital International Investors, Capital Research and Management Company | ||
Steven I. Koszalka, 1964 Secretary | 2003 | Vice President — Fund Business Management Group, Capital Research and Management Company | ||
Gregory F. Niland, 1971 Treasurer | 2008 | Vice President — Investment Operations, Capital Research and Management Company | ||
Susan K. Countess, 1966 Assistant Secretary | 2014 | Associate — Fund Business Management Group, Capital Research and Management Company | ||
Brian C. Janssen, 1972 Assistant Treasurer | 2015 | Vice President — Investment Operations, Capital Research and Management Company | ||
Dori Laskin, 1951 Assistant Treasurer | 2010 | Vice President — Investment Operations, Capital Research and Management Company |
1 | The term independent trustee refers to a trustee who is not an “interested person” of the series within the meaning of the Investment Company Act of 1940. |
2 | Trustees and officers of the series serve until their resignation, removal or retirement. |
3 | This includes all directorships/trusteeships (other than those in the American Funds or other funds managed by Capital Research and Management Company or its affiliates) that are held by each trustee as a trustee or director of a public company or a registered investment company. |
4 | The term interested trustee refers to a trustee who is an “interested person” within the meaning of the Investment Company Act of 1940, on the basis of their affiliation with the series investment adviser, Capital Research and Management Company, or affiliated entities (including the series principal underwriter). |
5 | All of the trustees and/or officers listed, with the exception of Martin Jacobs, S. Keiko McKibben and Renaud H. Samyn, are officers and/or directors/trustees of one or more of the other funds for which Capital Research and Management Company serves as investment adviser. |
6 | Company affiliated with Capital Research and Management Company. |
Offices of the series and of the investment adviser
Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406
6455 Irvine Center Drive
Irvine, CA 92618-4518
Investment subadviser
Milliman Financial Risk Management LLC
(Managed Risk Funds only)
71 South Wacker Drive, 31st Floor
Chicago, IL 60606
Custodians of assets
State Street Bank and Trust Company
One Lincoln Street
Boston, MA 02111
Bank of New York Mellon
(Managed Risk Funds only)
One Wall Street
New York, NY 10286
Counsel
Morgan, Lewis & Bockius LLP
300 South Grand Avenue, 22nd Floor
Los Angeles, CA 90071-3132
Independent registered public accounting firm
PricewaterhouseCoopers LLP
601 South Figueroa Street
Los Angeles, CA 90017-3874
216 | American Funds Insurance Series |
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the series prospectuses and summary prospectuses, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the American Funds website at americanfunds.com. Fund shares offered through American Funds Distributors, Inc.
“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities —is available on the American Funds website or upon request by calling AFS. The series files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on the American Funds website.
Complete December 31, 2017, 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, 2018, this report must be accompanied by a statistical update for the most recently completed calendar quarter.
Fund attribution data was produced using FactSet, a third-party software system, based on daily portfolios. Securities in their initial period of acquisition may not be included in this analysis. The analysis includes equity investments only and excludes forward contracts and fixed income investments, if applicable. It does not account for buy-and-sell transactions that might have occurred intraday. As a result, average portfolio weight percentages are approximate, and the actual average portfolio weight percentages might be higher or lower. Data elements, such as pricing, income, market cap, etc., were provided by FactSet. The indexes provided for attribution are based on FactSet’s methodology. The indexes are broad-based market benchmarks and may not be used by Capital Group® as the sole comparative index for the funds. Capital Group believes the software and information from FactSet to be reliable. However, Capital Group cannot be responsible for inaccuracies, incomplete information or updating of information by FactSet.
Futures 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 fund from market declines and will limit the fund’s participation in market gains. The use of the managed risk strategy could cause the fund’s return to lag that of the underlying fund in certain rising market conditions.
Bloomberg® is a trademark and service mark of Bloomberg Finance L.P. (collectively with its affiliates, “Bloomberg”). Barclays® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Neither Bloomberg nor Barclays approve or endorse this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products. The S&P 500 is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group. Copyright © 2018 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.
American Funds from Capital Group
The Capital 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 27 years of investment experience, including 22 years at our company, reflecting a career commitment to our long-term approach.1 | |
The Capital System | |
The Capital System combines individual accountability with teamwork. Funds using The Capital System are divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. An extensive global research effort is the backbone of our system. | |
Superior long-term track record | |
AFIS equity funds have beaten their comparable Lipper indexes in 93% of 10-year periods and 100% of 20-year periods. AFIS fixed income funds have beaten comparable Lipper indexes in 69% of 10-year periods and 84% 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 the American Funds Insurance Series prospectus dated May 1, 2017. | |
2 | Based on Class 1 share results for rolling periods through December 31, 2017. Periods covered are the shorter of the fund’s lifetime or since the inception date of the comparable Lipper index. The comparable Lipper indexes are: Global Funds Index (Global Growth Fund, Global Growth and Income Fund), Growth Funds Index (Growth Fund), International Funds Index (International Fund), Emerging Markets Funds Index (New World Fund), Growth & Income Funds Index (Blue Chip Income and Growth Fund, Growth-Income Fund), Balanced Funds Index (Asset Allocation Fund), Core Bond Funds Index (Bond Fund), Global Income Funds Index (Global Bond Fund), High Yield Funds Index (High-Income Bond Fund), Ultra-Short Obligation Funds Index (Ultra-Short Bond Fund) and General U.S. Government Funds Index (U.S. Government/AAA-Rated Securities Fund). The Lipper Global Small-/Mid-Cap Funds Average was used for Global Small Capitalization Fund. | |
3 | Based on management fees for the 20-year period ended December 31, 2017, versus comparable Lipper categories, excluding funds of funds. | |
Lit. No. INGEARX-998-0218P Litho in USA RCG/RRD/8074-S60219 |
American Funds
Annual report |
Portfolios that invest
in global companies
for the long term.
American Funds Insurance Series — Portfolio Series, from Capital Group, serves as an underlying investment vehicle for variable annuities and insurance products. For more than 85 years, Capital has invested with a long-term focus based on thorough research and attention to risk.
American Funds Global Growth PortfolioSM seeks to provide long-term growth of capital.
American Funds Growth and Income PortfolioSM seeks to provide long-term growth of capital while providing current income.
American Funds Managed Risk Growth PortfolioSM seeks to provide long-term growth of capital while seeking to manage volatility and provide downside protection.
American Funds Managed Risk Growth and Income PortfolioSM seeks to provide long-term growth of capital and current income while seeking to manage volatility and provide downside protection.
American Funds Managed Risk Global Allocation PortfolioSM 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.
Investing for short periods makes losses more likely. 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.
Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended December 31, 2017. Also shown are the estimated gross and net expense ratios as of the series prospectus dated May 1, 2018 (unaudited):
Lifetime | Gross | Net | ||||||||||||||
1 year | (since 5/1/15) | expense ratio | expense ratio | |||||||||||||
American Funds Global Growth Portfolio, Class 4 | 28.11 | % | 9.18 | % | 1.24 | % | 1.18 | % | ||||||||
American Funds Growth and Income Portfolio, Class 4 | 15.43 | 6.43 | .97 | .97 | ||||||||||||
American Funds Managed Risk Growth Portfolio, Class P2 | 18.00 | 5.82 | 1.17 | 1.03 | ||||||||||||
American Funds Managed Risk Growth and Income Portfolio, Class P2 | 16.55 | 5.11 | 1.22 | 1.08 | ||||||||||||
American Funds Managed Risk Global Allocation Portfolio, Class P2 | 19.03 | 4.42 | 1.33 | 1.19 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The investment adviser is currently waiving a portion of its management fee equal to 0.05% of the funds’ net assets for the three managed risk portfolios. In addition, the investment adviser is currently reimbursing a portion of the other expenses for all portfolio series funds except American Funds Growth and Income Portfolio. 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. This waiver and reimbursement will be in effect through at least May 1, 2019, unless modified or terminated by the series board. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time. The waiver may only be modified or terminated with the approval of the series board. Refer to the series most recent prospectus for details.
Investment allocations may not achieve fund objectives. There are expenses associated with the underlying funds in addition to fund of funds expenses. The funds’ risks are directly related to the risks of the underlying funds. Underlying fund allocations are as of December 31, 2017. Allocation percentages and underlying funds are subject to the Portfolio Oversight Committee’s discretion and will evolve over time. Underlying funds may be added or removed during the year. Investing outside the United States involves risks such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the funds’ prospectuses. These risks may be heightened in connection with investments in developing countries. Small-company stocks entail additional risks, and they can fluctuate in price more than larger company stocks. The return of principal for bond funds and 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. Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. 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.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Contents
1 | Letter to investors |
3 | The value of a $10,000 investment |
Investment portfolios | |
7 | American Funds Global Growth Portfolio |
8 | American Funds Growth and Income Portfolio |
10 | American Funds Managed Risk Growth Portfolio |
12 | American Funds Managed Risk Growth and Income Portfolio |
14 | American Funds Managed Risk Global Allocation Portfolio |
16 | Financial statements |
Fellow investors:
It is our pleasure to present the annual report for American Funds Insurance Series (AFIS) — Portfolio Series, a suite of funds that offers variable annuity investors objective-based portfolios to help meet retirement goals. The fund’s portfolios are actively monitored to keep them aligned with their objectives; this monitoring is conducted by the Portfolio Oversight Committee, a group of seven investment professionals with decades of industry experience.
A combination of strong corporate earnings, accommodative monetary policy and macroeconomic stability across much of the globe lifted stocks in 2017. U.S. stocks closed higher, led by generally positive economic data and hope that the new $1.5 trillion tax bill passed in late December would make the country more competitive. Over the course of the year, the Federal Reserve raised the benchmark federal funds rate by 75 basis points.
European stocks advanced, diminishing investor concerns about political risk. Central bank stimulus measures also provided a boost to Europe’s economy and financial markets. Emerging markets registered impressive gains, helped by a weaker U.S. dollar and supportive fiscal policy in China that curbed fears of a hard landing for the nation.
For the 12 months ended December 31, 2017, the Standard & Poor’s 500 Composite Index1, a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, increased 21.83%. The Bloomberg Barclays U.S. Aggregate Index2, which measures investment-grade U.S. bonds (rated BBB/Baa and above)3, registered a gain of 3.54%, while the Bloomberg Barclays Global Aggregate Index2, a measure of global investment-grade bonds (rated BBB/Baa and above)3, rose 7.39%.
For the fiscal year, all five funds in the series recorded double-digit returns, of which we are very pleased.
American Funds Global Growth Portfolio rose 28.11%. By comparison, the MSCI ACWI (All Country World Index)4, a free float-adjusted, market capitalization-weighted index designed to measure the results of more than 40 developed and emerging equity markets, advanced 23.97%.
See page 2 for footnotes.
American Funds Insurance Series – Portfolio Series | 1 |
American Funds Growth and Income Portfolio gained 15.43%. The 70%/30% Blended Index5 climbed 16.08%.
American Funds Managed Risk Growth Portfolio recorded a return of 18.00%. The Standard & Poor’s 500 Managed Risk Index — Moderate6 gained 16.02%, while the Standard & Poor’s 500 Managed Risk Index — Moderate Aggressive6 advanced 17.94%. The 75%/25% Blended Index5 rose 17.02%.
American Funds Managed Risk Growth and Income Portfolio increased 16.55%. In comparison, the Standard & Poor’s 500 Managed Risk Index — Moderate6 gained 16.02%. The Standard & Poor’s 500 Managed Risk Index — Moderate Conservative6 advanced 14.14%. The 70%/30% Blended Index5 was up 16.08%.
American Funds Managed Risk Global Allocation Portfolio climbed 19.03%. The Standard & Poor’s Global LargeMidCap Managed Risk Index — Moderate6 gained 17.96%, and the Standard & Poor’s Global LargeMidCap Managed Risk Index —Moderate Aggressive6 advanced 20.19%. The 65%/35% Blended Index5 recorded a gain of 17.93%.
It is important to note that the managed risk portfolios employ a risk management overlay. As such, the portfolios may lag in a strong market environment, but they have been designed to reduce volatility and provide downside protection — a key component for many investors.
Thank you for your interest in AFIS — Portfolio Series. We look forward to reporting to you again in six months’ time.
Sincerely,
Donald D. O’Neal
Vice Chairman of the Board
Alan N. Berro
President
February 14, 2018
The market indexes shown are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.
1 | Standard & Poor’s 500 source: S&P Dow Jones Indices LLC. |
2 | Bloomberg Barclays source: Bloomberg Index Services Ltd. |
3 | 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. |
4 | MSCI index results reflect dividends net of withholding taxes. Source: MSCI. |
5 | The 70%/30% Blended Index weights the total returns of the S&P 500 and the Bloomberg Barclays U.S. Aggregate indexes at the corresponding percentages. The 75%/25% Blended Index weights the total returns of the S&P 500 and the Bloomberg Barclays U.S. Aggregate indexes at the corresponding percentages. The 65%/35% Blended Index weights the total returns of the MSCI ACWI and the Bloomberg Barclays Global Aggregate indexes at the corresponding percentages. The results assume that each blend is rebalanced monthly. |
6 | Source: S&P Dow Jones Indices LLC. The Standard & Poor’s Managed Risk Index Series is designed to simulate a dynamic protective portfolio that allocates between the underlying equity index and cash, based on realized volatilities of the underlying equity and bond indices, while maintaining a fixed allocation to the underlying bond index. These indices are generated and published under agreements between Standard and Poor’s Dow Jones Indices and Milliman Financial Risk Management LLC. |
2 | American Funds Insurance Series – Portfolio Series |
The value of a $10,000 investment
(for the year ended December 31, 2017, with all distributions reinvested)
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 Portfolio
Average annual total returns2 based on a $1,000 investment
(for the periods ended December 31, 2017)
1 year | Lifetime (since 5/1/15) | ||
Class 4 shares | 28.11% | 9.18% |
Growth and Income Portfolio
Average annual total returns2 based on a $1,000 investment
(for the periods ended December 31, 2017)
1 year | Lifetime (since 5/1/15) | ||
Class 4 shares | 15.43% | 6.43% |
The market indexes shown are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.
See page 4 for footnotes.
American Funds Insurance Series – Portfolio Series | 3 |
Managed Risk Growth Portfolio
Average annual total returns2 based on a $1,000 investment
(for the periods ended December 31, 2017)
1 year | Lifetime (since 5/1/15) | ||
Class P2 shares | 18.00% | 5.82% |
Managed Risk Global Allocation Portfolio
Average annual total returns2 based on a $1,000 investment
(for the periods ended December 31, 2017)
1 year | Lifetime (since 5/1/15) | ||
Class P2 shares | 19.03% | 4.42% |
Managed Risk Growth and Income Portfolio
Average annual total returns2 based on a $1,000 investment
(for the periods ended December 31, 2017)
1 year | Lifetime (since 5/1/15) | ||
Class P2 shares | 16.55% | 5.11% |
The market indexes shown are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.
1 | Results reflect dividends net of withholding taxes. Source: MSCI. |
2 | The investment results assume all distributions are reinvested and reflect applicable fees and expenses. For the managed risk portfolios, the series investment adviser waived a portion of its management fee equal to 0.05% of the funds’ net assets. In addition, the investment adviser is currently reimbursing a portion of the other expenses for all portfolio series funds except American Funds Growth and Income Portfolio. The investment results shown reflect the waiver and reimbursements, without which the results would have been lower. This waiver and reimbursement will be in effect through at least May 1, 2019, unless modified or terminated by the series board. See the Financial Highlights tables in the report for details. |
3 | Source: S&P Dow Jones Indices. |
4 | Source: Bloomberg Index Services. |
5 | Source: S&P Dow Jones Indices LLC. Standard & Poor’s Managed Risk Index Series is designed to simulate a dynamic protective portfolio that allocates between the underlying equity index and cash, based on realized volatilities of the underlying equity and bond indexes, while maintaining a fixed allocation to the underlying bond index. These indexes are generated and published under agreements between Standard & Poor’s Dow Jones Indices and Milliman Financial Risk Management LLC. |
Milliman Financial Risk Management LLC serves as the subadviser with respect to the management of the fund’s managed risk strategy.
4 | American Funds Insurance Series – Portfolio Series |
American Funds Global Growth Portfolio
Underlying allocations as of 12/31/17: | |
30.0% | Global Growth Fund |
10.0% | Global Small Capitalization Fund |
10.0% | Growth Fund |
20.0% | New World Fund® |
30.0% | Global Growth and Income Fund |
The fund’s investment objective is to provide long-term growth of capital. The fund will attempt to achieve its investment objective by investing in a mix of American Funds Insurance Series funds (AFIS) in different combinations and weightings. The underlying AFIS funds will primarily consist of growth funds. The fund may also invest in growth-and-income funds. Through its investments in the underlying funds, the fund will have significant exposure to growth-oriented common stocks.
For the 12 months ended December 31, 2017, the fund’s shares had a return of 28.11%. All of the fund’s underlying funds recorded positive returns during this period.
American Funds Growth and Income Portfolio
Underlying allocations as of 12/31/17: | |
15.0% | Growth Fund |
10.0% | Global Growth and Income Fund |
20.0% | Growth-Income Fund |
25.0% | Capital Income Builder® |
20.0% | Bond Fund |
10.0% | Global Bond Fund |
The fund’s investment objective is to provide long-term growth of capital while providing current income. The fund will attempt to achieve its investment objective by investing in a mix of AFIS funds in different combinations and weightings. The underlying AFIS funds will primarily consist of equity funds in the growth, growth-and-income and equity-income categories. However, the fund may also invest in fixed income funds.
For the 12 months ended December 31, 2017, the fund’s shares had a return of 15.43%. All of the fund’s underlying funds recorded positive returns during this period.
American Funds Managed Risk Growth Portfolio
Underlying allocations as of 12/31/17: | |
10.0% | Global Small Capitalization Fund |
25.0% | Growth Fund |
10.1% | International Fund |
10.0% | Blue Chip Income and Growth Fund |
20.0% | Growth-Income Fund |
20.1% | Bond Fund |
4.8% | Cash & equivalents in support of managed risk strategy*,† |
The fund’s investment objective is to provide long-term growth of capital while seeking to manage volatility and provide downside protection. The fund will attempt to achieve its investment objective by investing in a mix of AFIS funds in different combinations and weightings, while seeking to manage portfolio volatility and provide downside protection primarily through the use of exchange-traded futures contracts. The underlying AFIS funds will primarily consist of growth funds. The fund may also invest in growth-and-income and fixed income funds.
For the 12 months ended December 31, 2017, the fund’s shares had a return of 18.00%. All of the fund’s underlying funds recorded positive returns during this period.
See page 6 for footnotes.
American Funds Insurance Series – Portfolio Series | 5 |
American Funds Managed Risk Growth and Income Portfolio
Underlying allocations as of 12/31/17: | |
15.0% | Growth Fund |
20.0% | Global Growth and Income Fund |
20.0% | Growth-Income Fund |
25.1% | Capital Income Builder® |
7.5% | Bond Fund |
7.6% | Global Bond Fund |
4.8% | Cash & equivalents in support of managed risk strategy*,† |
The fund’s investment objective is to provide long-term growth of capital and current income while seeking to manage volatility and provide downside protection. The fund will attempt to achieve its investment objective by investing in a mix of AFIS funds in different combinations and weightings, while seeking to manage portfolio volatility and provide downside protection primarily through the use of exchange-traded futures contracts. The underlying AFIS funds will primarily consist of equity funds in the growth, growth-and-income and equity-income categories. However, the fund may also invest in fixed income funds.
For the 12 months ended December 31, 2017, the fund’s shares had a return of 16.55%. All of the fund’s underlying funds recorded positive returns during this period.
American Funds Managed Risk Global Allocation Portfolio
Underlying allocations as of 12/31/17: | |
15.0% | Global Growth Fund |
10.0% | International Fund |
20.1% | Global Growth and Income Fund |
10.0% | Asset Allocation Fund |
25.0% | Global Balanced Fund |
15.1% | Global Bond Fund |
4.8% | Cash & equivalents in support of managed risk strategy*,† |
The fund’s investment objective is 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 fund will attempt to achieve its investment objective by investing in a mix of AFIS funds in different combinations and weightings, while seeking to manage portfolio volatility and provide downside protection primarily through the use of exchange-traded futures contracts. The underlying AFIS funds may include growth, growth-and-income, equity-income, balanced, asset allocation and fixed income funds.
For the 12 months ended December 31, 2017, the fund’s shares had a return of 19.03%. All of the fund’s underlying funds recorded positive returns during this period.
The Portfolio Series funds are actively monitored; allocations and funds may change.
* | Cash and equivalents include short-term securities, accrued income, Treasury futures and other assets less liabilities. |
† | The managed risk strategy is operated by Milliman Financial Risk Management LLC. 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 fund from market declines and will limit the fund’s participation in market gains. The use of the managed risk strategy could cause the fund’s return to lag that of the underlying funds in certain rising market conditions. |
6 | American Funds Insurance Series – Portfolio Series |
American Funds Global Growth Portfolio
Investment portfolio December 31, 2017
Growth funds 70.01% | Shares | Value (000) | ||||||
American Funds Insurance Series – Global Growth Fund, Class 1 | 293,679 | $ | 8,960 | |||||
American Funds Insurance Series – Global Small Capitalization Fund, Class 1 | 117,487 | 2,982 | ||||||
American Funds Insurance Series – Growth Fund, Class 1 | 38,188 | 2,973 | ||||||
American Funds Insurance Series – New World Fund, Class 1 | 236,744 | 5,990 | ||||||
Total growth funds (cost: $18,247,000) | 20,905 | |||||||
Growth-and-income funds 30.07% | ||||||||
American Funds Insurance Series – Global Growth and Income Fund, Class 1 | 567,886 | 8,978 | ||||||
Total growth-and-income funds (cost: $7,847,000) | 8,978 | |||||||
Total investment securities 100.08% (cost: $26,094,000) | 29,883 | |||||||
Other assets less liabilities (0.08)% | (25 | ) | ||||||
Net assets 100.00% | $ | 29,858 |
Investments in affiliates
These holdings are affiliates of the fund under the Investment Company Act of 1940 since they are controlled by the same board of trustees as the series. Further details on these holdings and related transactions during the year ended December 31, 2017, appear below.
Net | Net | Value of | ||||||||||||||||||||||
realized | unrealized | Dividend | affiliates at | |||||||||||||||||||||
Beginning | Ending | gain | appreciation | income | 12/31/2017 | |||||||||||||||||||
shares | Additions | Reductions | shares | (000) | (000) | (000) | (000) | |||||||||||||||||
Growth funds 70.01% | ||||||||||||||||||||||||
American Funds Insurance Series - Global Growth Fund, Class 1 | 164,578 | 154,598 | 25,497 | 293,679 | $ | 55 | $ | 1,364 | $ | 70 | $ | 8,960 | ||||||||||||
American Funds Insurance Series - New World Fund, Class 1 | 133,810 | 121,991 | 19,057 | 236,744 | 38 | 965 | 61 | 5,990 | ||||||||||||||||
American Funds Insurance Series - Global Small Capitalization Fund, Class 1 | 65,186 | 63,887 | 11,586 | 117,487 | 20 | 455 | 16 | 2,982 | ||||||||||||||||
American Funds Insurance Series - Growth Fund, Class 1 | 19,607 | 21,913 | 3,332 | 38,188 | 14 | 289 | 19 | 2,973 | ||||||||||||||||
Growth-and-income funds 30.07% | ||||||||||||||||||||||||
American Funds Insurance Series - Global Growth and Income Fund, Class 1 | 304,002 | 300,667 | 36,783 | 567,886 | 40 | 1,115 | 186 | 8,978 | ||||||||||||||||
Total 100.08% | $ | 167 | $ | 4,188 | $ | 352 | $ | 29,883 |
See Notes to Financial Statements
American Funds Insurance Series – Portfolio Series | 7 |
American Funds Growth and Income Portfolio
Investment portfolio December 31, 2017
Growth funds 15.00% | Shares | Value (000) | ||||||
American Funds Insurance Series – Growth Fund, Class 1 | 258,406 | $ | 20,117 | |||||
Total growth funds (cost: $17,970,000) | 20,117 | |||||||
Growth-and-income funds 30.01% | ||||||||
American Funds Insurance Series – Global Growth and Income Fund, Class 1 | 848,766 | 13,419 | ||||||
American Funds Insurance Series – Growth-Income Fund, Class 1 | 534,210 | 26,828 | ||||||
Total growth-and-income funds (cost: $36,007,000) | 40,247 | |||||||
Equity-income and Balanced funds 25.02% | ||||||||
American Funds Insurance Series – Capital Income Builder, Class 1 | 3,226,866 | 33,560 | ||||||
Total equity-income and balanced funds (cost: $31,548,000) | 33,560 | |||||||
Fixed income funds 30.06% | ||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 2,482,578 | 26,861 | ||||||
American Funds Insurance Series – Global Bond Fund, Class 1 | 1,132,056 | 13,449 | ||||||
Total fixed income funds (cost: $40,436,000) | 40,310 | |||||||
Total investment securities 100.09% (cost: $125,961,000) | 134,234 | |||||||
Other assets less liabilities (0.09)% | (117 | ) | ||||||
Net assets 100.00% | $ | 134,117 |
8 | American Funds Insurance Series – Portfolio Series |
American Funds Growth and Income Portfolio
Investments in affiliates
These holdings are affiliates of the fund under the Investment Company Act of 1940 since they are controlled by the same board of trustees as the series. Further details on these holdings and related transactions during the year ended December 31, 2017, appear below.
Net | ||||||||||||||||||||||||
Net | unrealized | Value of | ||||||||||||||||||||||
realized | appreciation | Dividend | affiliates at | |||||||||||||||||||||
Beginning | Ending | gain | (depreciation) | income | 12/31/2017 | |||||||||||||||||||
shares | Additions | Reductions | shares | (000) | (000) | (000) | (000) | |||||||||||||||||
Growth funds 15.00% | ||||||||||||||||||||||||
American Funds Insurance Series - Growth Fund, Class 1 | 147,587 | 137,782 | 26,963 | 258,406 | $ | 207 | $ | 1,989 | $ | 134 | $ | 20,117 | ||||||||||||
Growth-and-income funds 30.01% | ||||||||||||||||||||||||
American Funds Insurance Series - Growth-Income Fund, Class 1 | 298,183 | 284,866 | 48,839 | 534,210 | 192 | 2,340 | 396 | 26,828 | ||||||||||||||||
American Funds Insurance Series - Global Growth and Income Fund, Class 1 | 508,443 | 400,558 | 60,235 | 848,766 | 74 | 1,842 | 287 | 13,419 | ||||||||||||||||
Equity-income and Balanced funds 25.02% | ||||||||||||||||||||||||
American Funds Insurance Series - Capital Income Builder, Class 1 | 1,749,839 | 1,691,130 | 214,103 | 3,226,866 | 103 | 2,199 | 831 | 33,560 | ||||||||||||||||
Fixed income funds 30.06% | ||||||||||||||||||||||||
American Funds Insurance Series - Bond Fund, Class 1 | 1,226,059 | 1,452,849 | 196,330 | 2,482,578 | 6 | (94 | ) | 534 | 26,861 | |||||||||||||||
American Funds Insurance Series - Global Bond Fund, Class 1 | 591,390 | 630,306 | 89,640 | 1,132,056 | 38 | 487 | 73 | 13,449 | ||||||||||||||||
Total 100.09% | $ | 620 | $ | 8,763 | $ | 2,255 | $ | 134,234 |
See Notes to Financial Statements
American Funds Insurance Series – Portfolio Series | 9 |
American Funds Managed Risk Growth Portfolio
Investment portfolio December 31, 2017
Growth funds 45.04% | Shares | Value (000) | ||||||
American Funds Insurance Series – Global Small Capitalization Fund, Class 1 | 3,558,907 | $ | 90,325 | |||||
American Funds Insurance Series – Growth Fund, Class 1 | 2,900,062 | 225,770 | ||||||
American Funds Insurance Series – International Fund, Class 1 | 4,185,102 | 90,859 | ||||||
Total growth funds (cost: $353,818,000) | 406,954 | |||||||
Growth-and-income funds 30.00% | ||||||||
American Funds Insurance Series – Blue Chip Income and Growth Fund, Class 1 | 6,018,449 | 90,036 | ||||||
American Funds Insurance Series – Growth-Income Fund, Class 1 | 3,605,094 | 181,048 | ||||||
Total growth-and-income funds (cost: $244,073,000) | 271,084 | |||||||
Fixed income funds 20.14% | ||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 16,821,550 | 182,009 | ||||||
Total fixed income funds (cost: $184,288,000) | 182,009 | |||||||
Short-term securities 4.88% | ||||||||
Government Cash Management Fund | 44,088,239 | 44,088 | ||||||
Total short-term securities (cost: $44,088,000) | 44,088 | |||||||
Total investment securities 100.06% (cost: $826,267,000) | 904,135 | |||||||
Other assets less liabilities (0.06)% | (514 | ) | ||||||
Net assets 100.00% | $ | 903,621 |
Futures contracts
Unrealized | ||||||||||||||||||
Notional | Value at | depreciation | ||||||||||||||||
Number of | amount1 | 12/31/20172 | at 12/31/2017 | |||||||||||||||
Contracts | Type | contracts | Expiration | (000) | (000) | (000) | ||||||||||||
5 Year U.S. Treasury Note Futures | Long | 406 | March 2018 | $ | 40,600 | $ | 47,163 | $ | (112 | ) |
10 | American Funds Insurance Series – Portfolio Series |
American Funds Managed Risk Growth Portfolio
Investments in affiliates
These holdings are affiliates of the fund under the Investment Company Act of 1940 since they are controlled by the same board of trustees as the series. Further details on these holdings and related transactions during the year ended December 31, 2017, appear below.
Net | ||||||||||||||||||||||||
Net | unrealized | Value of | ||||||||||||||||||||||
realized | appreciation | Dividend | affiliates at | |||||||||||||||||||||
Beginning | Ending | gain (loss) | (depreciation) | income | 12/31/2017 | |||||||||||||||||||
shares | Additions | Reductions | shares | (000) | (000) | (000) | (000) | |||||||||||||||||
Growth funds 45.04% | ||||||||||||||||||||||||
American Funds Insurance Series – Growth Fund, Class 1 | 1,968,342 | 1,005,952 | 74,232 | 2,900,062 | $ | 405 | $ | 24,837 | $ | 1,499 | $ | 225,770 | ||||||||||||
American Funds Insurance Series – International Fund, Class 1 | 3,173,873 | 1,144,612 | 133,383 | 4,185,102 | (182 | ) | 17,410 | 1,204 | 90,859 | |||||||||||||||
American Funds Insurance Series – Global Small Capitalization Fund, Class 1 | 2,622,287 | 1,024,042 | 87,422 | 3,558,907 | (400 | ) | 16,033 | 501 | 90,325 | |||||||||||||||
Growth-and-income funds 30.00% | ||||||||||||||||||||||||
American Funds Insurance Series – Growth-Income Fund, Class 1 | 2,384,349 | 1,252,854 | 32,109 | 3,605,094 | 2 | 17,089 | 2,665 | 181,048 | ||||||||||||||||
American Funds Insurance Series – Blue Chip Income and Growth Fund, Class 1 | 3,900,025 | 2,221,808 | 103,384 | 6,018,449 | 111 | 7,354 | 1,830 | 90,036 | ||||||||||||||||
Fixed income funds 20.14% | ||||||||||||||||||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 12,375,045 | 7,569,664 | 3,123,159 | 16,821,550 | 222 | (286 | ) | 3,808 | 182,009 | |||||||||||||||
Total 95.18% | $ | 158 | $ | 82,437 | $ | 11,507 | $ | 860,047 |
1 | Notional amount is calculated based on the number of contracts and notional contract size. |
2 | Value is calculated based on the notional amount and current market price. |
See Notes to Financial Statements
American Funds Insurance Series – Portfolio Series | 11 |
American Funds Managed Risk Growth and Income Portfolio
Investment portfolio December 31, 2017
Growth funds 14.99% | Shares | Value (000) | ||||||
American Funds Insurance Series – Growth Fund, Class 1 | 1,639,050 | $ | 127,600 | |||||
Total growth funds (cost: $111,613,000) | 127,600 | |||||||
Growth-and-income funds 40.03% | ||||||||
American Funds Insurance Series – Global Growth and Income Fund, Class 1 | 10,798,048 | 170,717 | ||||||
American Funds Insurance Series – Growth-Income Fund, Class 1 | 3,387,876 | 170,139 | ||||||
Total growth-and-income funds (cost: $296,528,000) | 340,856 | |||||||
Equity-income and Balanced funds 25.07% | ||||||||
American Funds Insurance Series – Capital Income Builder, Class 1 | 20,529,514 | 213,507 | ||||||
Total equity-income and balanced funds (cost: $200,168,000) | 213,507 | |||||||
Fixed income funds 15.07% | ||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 5,924,284 | 64,101 | ||||||
American Funds Insurance Series – Global Bond Fund, Class 1 | 5,404,346 | 64,204 | ||||||
Total fixed income funds (cost: $127,823,000) | 128,305 | |||||||
Short-term securities 4.90% | ||||||||
Government Cash Management Fund | 41,727,309 | 41,727 | ||||||
Total short-term securities (cost: $41,727,000) | 41,727 | |||||||
Total investment securities 100.06% (cost: $777,859,000) | 851,995 | |||||||
Other assets less liabilities (0.06)% | (508 | ) | ||||||
Net assets 100.00% | $ | 851,487 |
Futures contracts
Unrealized | ||||||||||||||||||
Notional | Value at | depreciation | ||||||||||||||||
Number of | amount1 | 12/31/20172 | at 12/31/2017 | |||||||||||||||
Contracts | Type | contracts | Expiration | (000) | (000) | (000) | ||||||||||||
5 Year U.S. Treasury Note Futures | Long | 383 | March 2018 | $ | 38,300 | $ | 44,491 | $ | (105 | ) |
12 | American Funds Insurance Series – Portfolio Series |
American Funds Managed Risk Growth and Income Portfolio
Investments in affiliates
These holdings are affiliates of the fund under the Investment Company Act of 1940 since they are controlled by the same board of trustees as the series. Further details on these holdings and related transactions during the year ended December 31, 2017, appear below.
Net | ||||||||||||||||||||||||
Net | unrealized | Value of | ||||||||||||||||||||||
realized | appreciation | Dividend | affiliates at | |||||||||||||||||||||
Beginning | Ending | gain | (depreciation) | income | 12/31/2017 | |||||||||||||||||||
shares | Additions | Reductions | shares | (000) | (000) | (000) | (000) | |||||||||||||||||
Growth funds 14.99% | ||||||||||||||||||||||||
American Funds Insurance Series – Growth Fund, Class 1 | 1,188,104 | 574,176 | 123,230 | 1,639,050 | $ | 638 | $ | 13,992 | $ | 851 | $ | 127,600 | ||||||||||||
Growth-and-income funds 40.03% | ||||||||||||||||||||||||
American Funds Insurance Series – Global Growth and Income Fund, Class 1 | 8,229,914 | 3,122,205 | 554,071 | 10,798,048 | 806 | 24,124 | 3,644 | 170,717 | ||||||||||||||||
American Funds Insurance Series – Growth-Income Fund, Class 1 | 2,404,014 | 1,121,713 | 137,851 | 3,387,876 | 50 | 16,459 | 2,508 | 170,139 | ||||||||||||||||
Equity-income and Balanced funds 25.07% | ||||||||||||||||||||||||
American Funds Insurance Series – Capital Income Builder, Class 1 | 14,199,706 | 7,045,244 | 715,436 | 20,529,514 | 190 | 15,061 | 5,297 | 213,507 | ||||||||||||||||
Fixed income funds 15.07% | ||||||||||||||||||||||||
American Funds Insurance Series – Global Bond Fund, Class 1 | 4,817,205 | 2,160,135 | 1,572,994 | 5,404,346 | 1,142 | 2,466 | 348 | 64,204 | ||||||||||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 5,004,889 | 2,597,349 | 1,677,954 | 5,924,284 | 110 | (50 | ) | 1,370 | 64,101 | |||||||||||||||
Total 95.16% | $ | 2,936 | $ | 72,052 | $ | 14,018 | $ | 810,268 |
1 | Notional amount is calculated based on the number of contracts and notional contract size. |
2 | Value is calculated based on the notional amount and current market price. |
See Notes to Financial Statements
American Funds Insurance Series – Portfolio Series | 13 |
American Funds Managed Risk Global Allocation Portfolio
Investment portfolio December 31, 2017
Growth funds 25.02% | Shares | Value (000) | ||||||
American Funds Insurance Series – Global Growth Fund, Class 1 | 1,234,700 | $ | 37,671 | |||||
American Funds Insurance Series – International Fund, Class 1 | 1,154,138 | 25,056 | ||||||
Total growth funds (cost: $53,722,000) | 62,727 | |||||||
Growth-and-income funds 20.07% | ||||||||
American Funds Insurance Series – Global Growth and Income Fund, Class 1 | 3,182,280 | 50,312 | ||||||
Total growth-and-income funds (cost: $42,917,000) | 50,312 | |||||||
Equity-income and Balanced funds 25.02% | ||||||||
American Funds Insurance Series – Global Balanced Fund, Class 1 | 4,918,785 | 62,714 | ||||||
Total equity-income and balanced funds (cost: $56,971,000) | 62,714 | |||||||
Asset allocation funds 9.99% | ||||||||
American Funds Insurance Series – Asset Allocation Fund, Class 1 | 1,055,652 | 25,029 | ||||||
Total asset allocation funds (cost: $23,035,000) | 25,029 | |||||||
Fixed income funds 15.05% | ||||||||
American Funds Insurance Series – Global Bond Fund, Class 1 | 3,175,896 | 37,730 | ||||||
Total fixed income funds (cost: $37,132,000) | 37,730 | |||||||
Short-term securities 4.89% | ||||||||
Government Cash Management Fund | 12,257,955 | 12,258 | ||||||
Total short-term securities (cost: $12,258,000) | 12,258 | |||||||
Total investment securities 100.04% (cost: $226,035,000) | 250,770 | |||||||
Other assets less liabilities (0.04)% | (102 | ) | ||||||
Net assets 100.00% | $ | 250,668 |
Futures contracts
Unrealized | ||||||||||||||||||
Notional | Value at | depreciation | ||||||||||||||||
Number of | amount1 | 12/31/20172 | at 12/31/2017 | |||||||||||||||
Contracts | Type | contracts | Expiration | (000) | (000) | (000) | ||||||||||||
5 Year U.S. Treasury Note Futures | Long | 108 | March 2018 | $ | 10,800 | $ | 12,546 | $ | (32 | ) |
14 | American Funds Insurance Series – Portfolio Series |
American Funds Managed Risk Global Allocation Portfolio
Investments in affiliates
These holdings are affiliates of the fund under the Investment Company Act of 1940 since they are controlled by the same board of trustees as the series. Further details on these holdings and related transactions during the year ended December 31, 2017, appear below.
Net | Net | Value of | ||||||||||||||||||||||
realized | unrealized | Dividend | affiliates at | |||||||||||||||||||||
Beginning | Ending | (loss) gain | appreciation | income | 12/31/2017 | |||||||||||||||||||
shares | Additions | Reductions | shares | (000) | (000) | (000) | (000) | |||||||||||||||||
Growth funds 25.02% | ||||||||||||||||||||||||
American Funds Insurance Series – Global Growth Fund, Class 1 | 837,041 | 454,601 | 56,942 | 1,234,700 | $ | (9 | ) | $ | 6,018 | $ | 294 | $ | 37,671 | |||||||||||
American Funds Insurance Series – International Fund, Class 1 | 797,892 | 395,711 | 39,465 | 1,154,138 | (67 | ) | 4,381 | 320 | 25,056 | |||||||||||||||
Growth-and-income funds 20.07% | ||||||||||||||||||||||||
American Funds Insurance Series – Global Growth and Income Fund, Class 1 | 2,061,528 | 1,178,579 | 57,827 | 3,182,280 | 35 | 6,428 | 1,037 | 50,312 | ||||||||||||||||
Equity-income and Balanced funds 25.02% | ||||||||||||||||||||||||
American Funds Insurance Series – Global Balanced Fund, Class 1 | 3,028,102 | 1,970,429 | 79,746 | 4,918,785 | 48 | 5,435 | 665 | 62,714 | ||||||||||||||||
Asset allocation funds 9.99% | ||||||||||||||||||||||||
American Funds Insurance Series – Asset Allocation Fund, Class 1 | 619,029 | 454,191 | 17,568 | 1,055,652 | 33 | 1,462 | 391 | 25,029 | ||||||||||||||||
Fixed income funds 15.05% | ||||||||||||||||||||||||
American Funds Insurance Series – Global Bond Fund, Class 1 | 2,392,255 | 1,695,474 | 911,833 | 3,175,896 | 691 | 1,139 | 200 | 37,730 | ||||||||||||||||
Total 95.15% | $ | 731 | $ | 24,863 | $ | 2,907 | $ | 238,512 |
1 | Notional amount is calculated based on the number of contracts and notional contract size. |
2 | Value is calculated based on the notional amount and current market price. |
See Notes to Financial Statements
American Funds Insurance Series – Portfolio Series | 15 |
Financial statements
Statements of assets and liabilities at December 31, 2017 | (dollars and shares in thousands, except per-share amounts) |
Managed | |||||||||||||||||||||
Managed Risk | Risk | ||||||||||||||||||||
Global | Growth and | Managed Risk | Growth and | Global | |||||||||||||||||
Growth | Income | Growth | Income | Allocation | |||||||||||||||||
Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | |||||||||||||||||
Assets: | |||||||||||||||||||||
Investment securities, at value: | |||||||||||||||||||||
Unaffiliated issuers | $ | — | $ | — | $ | 44,088 | $ | 41,727 | $ | 12,258 | |||||||||||
Affiliated issuers | 29,883 | 134,234 | 860,047 | 810,268 | 238,512 | ||||||||||||||||
Receivables for: | |||||||||||||||||||||
Sales of investments | 5 | — | — | — | — | ||||||||||||||||
Sales of fund’s shares | — | 272 | 1,317 | 659 | 692 | ||||||||||||||||
Dividends and interest | — | — | 41 | 41 | 12 | ||||||||||||||||
Deposits at brokers for futures contracts | — | — | 254 | 239 | 67 | ||||||||||||||||
Variation margin on futures contracts | — | — | 38 | 36 | 10 | ||||||||||||||||
29,888 | 134,506 | 905,785 | 852,970 | 251,551 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Payables for: | |||||||||||||||||||||
Purchases of investments | — | 271 | 1,246 | 626 | 649 | ||||||||||||||||
Repurchases of fund’s shares | 3 | 2 | 5 | — | 9 | ||||||||||||||||
Investment advisory services | — | — | 76 | 71 | 21 | ||||||||||||||||
Services provided by related parties | — | 27 | 724 | 683 | 195 | ||||||||||||||||
Trustees’ deferred compensation | — | * | — | * | 3 | 3 | 1 | ||||||||||||||
Bank overdraft | — | — | 29 | 27 | 7 | ||||||||||||||||
Insurance administrative services | 18 | 80 | — | — | — | ||||||||||||||||
Audit fees | 9 | 9 | — | — | — | ||||||||||||||||
Other | — | — | 81 | 73 | 1 | ||||||||||||||||
30 | 389 | 2,164 | 1,483 | 883 | |||||||||||||||||
Net assets at December 31, 2017 | $ | 29,858 | $ | 134,117 | $ | 903,621 | $ | 851,487 | $ | 250,668 | |||||||||||
Net assets consist of: | |||||||||||||||||||||
Capital paid in on shares of beneficial interest | $ | 25,205 | $ | 120,848 | $ | 792,834 | $ | 747,592 | $ | 221,384 | |||||||||||
Undistributed net investment income | 234 | 1,312 | 8,599 | 8,572 | 2,208 | ||||||||||||||||
Undistributed net realized gain | 630 | 3,684 | 24,432 | 21,292 | 2,373 | ||||||||||||||||
Net unrealized appreciation | 3,789 | 8,273 | 77,756 | 74,031 | 24,703 | ||||||||||||||||
Net assets at December 31, 2017 | $ | 29,858 | $ | 134,117 | $ | 903,621 | $ | 851,487 | $ | 250,668 | |||||||||||
Investment securities, at cost: | |||||||||||||||||||||
Unaffiliated issuers | $ | — | $ | — | $ | 44,088 | $ | 41,727 | $ | 12,258 | |||||||||||
Affiliated issuers | 26,094 | 125,961 | 782,179 | 736,132 | 213,777 | ||||||||||||||||
Shares of beneficial interest issued and outstanding (no stated par value) — unlimited shares authorized | |||||||||||||||||||||
Class 4: | Net assets | $ | 29,858 | $ | 134,117 | ||||||||||||||||
Shares outstanding | 2,453 | 11,767 | |||||||||||||||||||
Net asset value per share | $ | 12.17 | $ | 11.40 | |||||||||||||||||
Class P2: | Net assets | $ | 903,621 | $ | 851,487 | $ | 250,668 | ||||||||||||||
Shares outstanding | 80,967 | 76,499 | 22,704 | ||||||||||||||||||
Net asset value per share | $ | 11.16 | $ | 11.13 | $ | 11.04 |
* | Amount less than one thousand. |
See Notes to Financial Statements
16 | American Funds Insurance Series – Portfolio Series |
Statements of operations for the year ended December 31, 2017 | (dollars in thousands) |
Managed | ||||||||||||||||||||
Managed Risk | Risk | |||||||||||||||||||
Global | Growth and | Managed Risk | Growth and | Global | ||||||||||||||||
Growth | Income | Growth | Income | Allocation | ||||||||||||||||
Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | ||||||||||||||||
Investment income: | ||||||||||||||||||||
Income: | ||||||||||||||||||||
Dividends from affiliated issuers | $ | 352 | $ | 2,255 | $ | 11,507 | $ | 14,018 | $ | 2,907 | ||||||||||
Interest | — | — | 350 | 325 | 90 | |||||||||||||||
352 | 2,255 | 11,857 | 14,343 | 2,997 | ||||||||||||||||
Fees and expenses: | ||||||||||||||||||||
Investment advisory services | — | — | 1,127 | 1,071 | 286 | |||||||||||||||
Distribution services | 54 | 266 | 1,879 | 1,785 | 477 | |||||||||||||||
Insurance administrative services | 54 | 266 | 1,879 | 1,785 | 477 | |||||||||||||||
Transfer agent services | — | * | — | * | — | * | — | * | — | * | ||||||||||
Accounting and administrative services | — | — | 67 | 66 | 54 | |||||||||||||||
Reports to shareholders | 2 | 6 | 40 | 39 | 11 | |||||||||||||||
Registration statement and prospectus | 3 | 7 | 39 | 42 | 11 | |||||||||||||||
Trustees’ compensation | — | * | 1 | 6 | 6 | 1 | ||||||||||||||
Auditing and legal | 15 | 15 | 6 | 5 | 5 | |||||||||||||||
Custodian | 6 | 6 | 12 | 12 | 12 | |||||||||||||||
Other | — | * | — | * | 67 | 60 | 1 | |||||||||||||
Total fees and expenses before waivers/reimbursements | 134 | 567 | 5,122 | 4,871 | 1,335 | |||||||||||||||
Less waivers/reimbursements of fees and expenses: | ||||||||||||||||||||
Investment advisory services waivers | — | — | 376 | 357 | 95 | |||||||||||||||
Miscellaneous fee reimbursements | 12 | — | 11 | 15 | 39 | |||||||||||||||
Total waivers/reimbursements of fees and expenses | 12 | — | 387 | 372 | 134 | |||||||||||||||
Total fees and expenses after waivers/reimbursements | 122 | 567 | 4,735 | 4,499 | 1,201 | |||||||||||||||
Net investment income | 230 | 1,688 | 7,122 | 9,844 | 1,796 | |||||||||||||||
Net realized gain and unrealized appreciation: | ||||||||||||||||||||
Net realized gain on: | ||||||||||||||||||||
Investments in affiliated issuers | 167 | 620 | 158 | 2,936 | 731 | |||||||||||||||
Currency transactions | — | — | — | * | — | * | — | * | ||||||||||||
Capital gain distributions received from affiliated issuers | 484 | 3,417 | 31,481 | 21,652 | 4,270 | |||||||||||||||
651 | 4,037 | 31,639 | 24,588 | 5,001 | ||||||||||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||||||||||
Investments in affiliated issuers | 4,188 | 8,763 | 82,437 | 72,052 | 24,863 | |||||||||||||||
Futures contracts | — | — | (112 | ) | (105 | ) | (32 | ) | ||||||||||||
4,188 | 8,763 | 82,325 | 71,947 | 24,831 | ||||||||||||||||
Net realized gain and unrealized appreciation | 4,839 | 12,800 | 113,964 | 96,535 | 29,832 | |||||||||||||||
Net increase in net assets resulting from operations | $ | 5,069 | $ | 14,488 | $ | 121,086 | $ | 106,379 | $ | 31,628 |
* | Amount less than one thousand. |
See Notes to Financial Statements
American Funds Insurance Series – Portfolio Series | 17 |
Statements of changes in net assets | (dollars in thousands) |
Global Growth | Growth and Income | Managed Risk | ||||||||||||||||||||||
Portfolio | Portfolio | Growth Portfolio | ||||||||||||||||||||||
Year ended December 31 | Year ended December 31 | Year ended December 31 | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 230 | $ | 107 | $ | 1,688 | $ | 750 | $ | 7,122 | $ | 4,685 | ||||||||||||
Net realized gain (loss) | 651 | 465 | 4,037 | 1,458 | 31,639 | 14,743 | ||||||||||||||||||
Net unrealized appreciation (depreciation) | 4,188 | (156 | ) | 8,763 | (148 | ) | 82,325 | 2,059 | ||||||||||||||||
Net increase in net assets resulting from operations | 5,069 | 416 | 14,488 | 2,060 | 121,086 | 21,487 | ||||||||||||||||||
Dividends and distributions paid to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | (117 | ) | (40 | ) | (1,380 | ) | (264 | ) | (6,769 | ) | (170 | ) | ||||||||||||
Distributions from net realized gain on investments | (461 | ) | (34 | ) | (1,424 | ) | (65 | ) | (16,589 | ) | — | |||||||||||||
Total dividends and distributions paid to shareholders | (578 | ) | (74 | ) | (2,804 | ) | (329 | ) | (23,358 | ) | (170 | ) | ||||||||||||
Net capital share transactions | 12,183 | 7,024 | 56,254 | 49,365 | 237,525 | 292,939 | ||||||||||||||||||
Total increase in net assets | 16,674 | 7,366 | 67,938 | 51,096 | 335,253 | 314,256 | ||||||||||||||||||
Net assets: | ||||||||||||||||||||||||
Beginning of year | 13,184 | 5,818 | 66,179 | 15,083 | 568,368 | 254,112 | ||||||||||||||||||
End of year | $ | 29,858 | $ | 13,184 | $ | 134,117 | $ | 66,179 | $ | 903,621 | $ | 568,368 | ||||||||||||
Undistributed net investment income | $ | 234 | $ | 116 | $ | 1,312 | $ | 660 | $ | 8,599 | $ | 5,502 |
Managed Risk | Managed Risk | |||||||||||||||||||||||
Growth and Income | Global Allocation | |||||||||||||||||||||||
Portfolio | Portfolio | |||||||||||||||||||||||
Year ended December 31 | Year ended December 31 | |||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 9,844 | $ | 6,875 | $ | 1,796 | $ | 1,195 | ||||||||||||||||
Net realized gain (loss) | 24,588 | 2,110 | 5,001 | (1,431 | ) | |||||||||||||||||||
Net unrealized appreciation (depreciation) | 71,947 | 6,713 | 24,831 | 1,747 | ||||||||||||||||||||
Net increase in net assets resulting from operations | 106,379 | 15,698 | 31,628 | 1,511 | ||||||||||||||||||||
Dividends and distributions paid to shareholders: | ||||||||||||||||||||||||
Dividends from net investment income | (8,603 | ) | (1,501 | ) | (1,285 | ) | — | |||||||||||||||||
Distributions from net realized gain on investments | (1,336 | ) | — | — | — | |||||||||||||||||||
Total dividends and distributions paid to shareholders | (9,939 | ) | (1,501 | ) | (1,285 | ) | — | |||||||||||||||||
Net capital share transactions | 185,598 | 324,108 | 76,579 | 76,917 | ||||||||||||||||||||
Total increase in net assets | 282,038 | 338,305 | 106,922 | 78,428 | ||||||||||||||||||||
Net assets: | ||||||||||||||||||||||||
Beginning of year | 569,449 | 231,144 | 143,746 | 65,318 | ||||||||||||||||||||
End of year | $ | 851,487 | $ | 569,449 | $ | 250,668 | $ | 143,746 | ||||||||||||||||
Undistributed net investment income | $ | 8,572 | $ | 5,880 | $ | 2,208 | $ | 1,276 |
See Notes to Financial Statements
18 | American Funds Insurance Series – Portfolio Series |
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 28 different funds, including the Global Growth Portfolio, Growth and Income Portfolio, Managed Risk Growth Portfolio, Managed Risk Growth and Income Portfolio and Managed Risk Global Allocation Portfolio (the “funds”). The other 23 funds in the series are covered in a separate report. The assets of each fund are segregated, with each fund accounted for separately. Capital Research and Management Company (“CRMC”) is the series’ investment adviser. Milliman Financial Risk Management LLC (“Milliman FRM”) is the subadviser for the risk management strategy for eight of the funds (the “managed risk funds”), three of which are covered in this report.
The managed risk funds covered in this report are Managed Risk Growth Portfolio, Managed Risk Growth and Income Portfolio and Managed Risk Global Allocation Portfolio. The managed risk funds invest in other funds within the series (the “underlying funds”) and employ Milliman FRM to implement the risk management strategy, which consists of using hedging instruments — primarily short positions on exchange-traded futures contracts — to attempt to stabilize the volatility of the funds around target volatility levels and reduce the downside exposure of the funds during periods of significant market declines.
Shareholders approved a proposal to reorganize the series from a Massachusetts business trust to a Delaware statutory trust. The reorganization may be completed in the next 12 months; however, the series reserves the right to delay the implementation.
The investment objectives for each fund covered in this report are as follows:
Global Growth Portfolio — Seeks to provide long-term growth of capital.
Growth and Income Portfolio — Seeks to provide long-term growth of capital while providing current income.
Managed Risk Growth Portfolio — Seeks to provide long-term growth of capital while seeking to manage volatility and provide downside protection.
Managed Risk Growth and Income Portfolio — Seeks to provide long-term growth of capital and current income while seeking to manage volatility and provide downside protection.
Managed Risk Global Allocation Portfolio — 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.
Each fund offers one share class (Class 4 for Global Growth Portfolio and Growth and Income Portfolio, and Class P2 for the three managed risk funds). Share classes have different fees and expenses (“class-specific fees and expenses”), primarily due to different arrangements for certain distribution expenses. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class of each fund.
2. Significant accounting policies
Each fund is an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. Each fund’s financial statements have been prepared to comply with U.S. generally accepted accounting principles (“U.S. GAAP”). These principles require the series’ investment adviser to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Subsequent events, if any, have been evaluated through the date of issuance in the preparation of the financial statements. The funds follow the significant accounting policies described in this section, as well as the valuation policies described in the next section on valuation.
Security transactions and related investment income — Security transactions are recorded by the funds as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. In the event a security is purchased with a delayed payment date, the funds will segregate liquid assets sufficient to meet their payment obligations. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.
American Funds Insurance Series – Portfolio Series | 19 |
Fees and expenses — The fees and expenses of the underlying 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.
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 fund’s statement 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
Security valuation — The net asset value of each share class of each fund is calculated based on the reported net asset values of the underlying funds in which each fund invests. The net asset value of each underlying fund is calculated based on the policies and procedures of the underlying fund contained in each underlying fund’s statement of additional information. Generally, the funds and the underlying funds determine the net asset value of each share class as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open. 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.
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. 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 each fund’s assets and liabilities into three levels based on the method 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. 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. At December 31, 2017, all of the investment securities held by each fund were classified as Level 1.
4. Risk factors
Investing in the funds may involve certain risks including, but not limited to, those described below.
Allocation risk — Investments in a fund are subject to risks related to the investment adviser’s allocation choices. The selection of the underlying funds and the allocation of a fund’s assets could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives. Certain of the funds may invest in an underlying fixed-income fund that is a non-diversified investment company under the Investment Company Act of 1940. Poor performance by a single large holding in a non-diversified underlying fund would adversely affect such a fund’s investment results more than if the underlying fund were invested in a larger number of issuers.
20 | American Funds Insurance Series – Portfolio Series |
Fund structure — Each fund invests in underlying funds and incurs expenses related to the underlying funds. In addition, investors in each fund will incur fees to pay for certain expenses related to the operations of the fund. An investor holding the underlying funds directly and in the same proportions as a fund would incur lower overall expenses but would not receive the benefit of the portfolio management and other services provided by the fund, including the managed risk strategy.
Underlying fund risks — Because a fund’s investments consist of underlying funds, the fund’s risks are directly related to the risks of the underlying funds. For this reason, it is important to understand the risks associated with investing both in a fund and the applicable underlying funds.
Market conditions — The prices of, and the income generated by, the securities held by the underlying funds may decline — sometimes rapidly or unpredictably — due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental or governmental agency responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.
Issuer risks — The prices of, and the income generated by, securities held by the underlying funds may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance and strategic initiatives such as mergers, acquisitions or dispositions, and the market response to any such initiatives.
Investing in growth-oriented stocks — Growth-oriented common stocks and other equity-type securities (such as preferred stocks, convertible preferred stocks and convertible bonds) may involve larger price swings and greater potential for loss than other types of investments. These risks may be even greater in the case of smaller capitalization stocks.
Investing in income-oriented stocks — Income provided by an underlying fund may be reduced by changes in the dividend policies of, and the capital resources available for dividend payments at, the companies in which the underlying fund invests.
Investing outside the U.S. — Securities of issuers domiciled outside the U.S., or with significant operations or revenues outside the U.S., may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as the imposition of price controls or punitive taxes, that could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the U.S. Investments outside the U.S. may also be subject to different accounting practices and different regulatory, legal and reporting standards and practices, and may be more difficult to value, than those in the U.S. In addition, the value of investments outside the U.S. may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by the underlying funds. 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. Less certainty with respect to security valuations may lead to additional challenges and risks in calculating an underlying fund’s net asset value and, accordingly, in calculating the fund’s net asset value. Additionally, there may be increased settlement risks for transactions in local securities.
Investing in small companies — Investing in smaller companies may pose additional risks. For example, it is often more difficult to value or dispose of small company stocks and more difficult to obtain information about smaller companies than about larger companies. Furthermore, smaller companies often have limited product lines, operating histories, markets and/or financial resources, may be dependent on one or a few key persons for management, and can be more susceptible to losses. Moreover, the prices of their stocks may be more volatile than stocks of larger, more established companies.
American Funds Insurance Series – Portfolio Series | 21 |
Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by an underlying fund may be affected by changing interest rates and by changes in the effective maturities and credit ratings of these securities.
Rising interest rates will generally cause the prices of bonds and other debt securities to fall. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.
Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer 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. Credit risk is gauged, in part, by the credit ratings of the debt securities in which an underlying 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 underlying 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 debt instruments — Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to investments in junk bonds.
Investing in mortgage-related and other asset-backed securities — Mortgage-related securities, such as mortgage-backed securities, and other asset-backed securities, include debt obligations that represent interests in pools of mortgages or other income-bearing assets, such as consumer loans or receivables. Such securities often involve risks that are different from or more acute than the risks associated with investing in other types of debt securities. Mortgage-backed and other asset-backed securities are subject to changes in the payment patterns of borrowers of the underlying debt. When interest rates fall, borrowers are more likely to refinance or prepay their debt before its stated maturity. This may result in an underlying fund having to reinvest the proceeds in lower yielding securities, effectively reducing the fund’s income. Conversely, if interest rates rise and borrowers repay their debt more slowly than expected, the time in which the mortgage-backed and other asset-backed securities are paid off could be extended, reducing the underlying fund’s cash available for reinvestment in higher yielding securities.
Investing in future delivery contracts — The underlying funds may enter into contracts, such as to-be-announced contracts and mortgage dollar rolls, that involve the underlying 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 the underlying fund’s market exposure, and the market price of the securities that the underlying fund contracts to repurchase could drop below their purchase price. While the underlying fund can preserve and generate capital through the use of such contracts by, for example, realizing the difference between the sale price and the future purchase price, the income generated by the underlying fund may be reduced by engaging in such transactions. In addition, these transactions may increase the turnover rate of the underlying 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.
Asset allocation — A certain fund’s percentage allocation to equity securities, debt securities and money market instruments (through its investments in the underlying funds) could cause the fund to underperform relative to relevant benchmarks and other funds with similar investment objectives.
Currency — The prices of, and the income generated by, most debt securities held by the underlying funds 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 an underlying 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.
Liquidity risk — Certain underlying fund holdings may be deemed to be less liquid or illiquid because they cannot be readily sold without significantly impacting the value of the holdings. Liquidity risk may result from the lack of an active market for a holding, legal or contractual restrictions on resale, or the reduced number and capacity of market participants to make a market in such holding. Market
22 | American Funds Insurance Series – Portfolio Series |
prices for less liquid or illiquid holdings may be volatile, and reduced liquidity may have an adverse impact on the market price of such holdings. Additionally, the sale of less liquid or illiquid holdings may involve substantial delays (including delays in settlement) and additional costs and the underlying fund may be unable to sell such holdings when necessary to meet its liquidity needs.
Management — The investment adviser to the funds and to the underlying funds actively manages each underlying fund’s investments. Consequently, the underlying 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 an underlying fund to lose value or its 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.
Investing in futures contracts — In addition to the risks generally associated with investing in derivative instruments, futures contracts are subject to the creditworthiness of the clearing organizations, exchanges and futures commission merchants with which a fund transacts. Additionally, although futures require only a small initial investment in the form of a deposit of initial margin, the amount of a potential loss on a futures contract could greatly exceed the initial amount invested. While futures contracts are generally liquid instruments, under certain market conditions, futures may be deemed to be illiquid. For example, a fund may be temporarily prohibited from closing out its position in a futures contract if intraday price change limits or limits on trading volume imposed by the applicable futures exchange are triggered. If a fund is unable to close out a position on a futures contract, the fund would remain subject to the risk of adverse price movements until the fund is able to close out the futures position. The ability of a fund to successfully utilize futures contracts may depend in part upon the ability of the fund’s investment adviser or subadviser to accurately forecast interest rates and other economic factors and to assess and predict the impact of such economic factors on the futures in which the fund invests. If the investment adviser or subadviser incorrectly forecasts economic developments or incorrectly predicts the impact of such developments on the futures in which it invests, a fund could be exposed to the risk of loss.
Hedging — There may be imperfect or even negative correlation between the prices of the futures contracts and the prices of the underlying securities. For example, futures contracts may not provide an effective hedge because changes in futures contract prices may not track those of the underlying securities or indexes they are intended to hedge. In addition, there are significant differences between the securities and futures markets that could result in an imperfect correlation between the markets, causing a given hedge not to achieve its objectives. The degree of imperfection of correlation depends on circumstances such as variations in speculative market demand for futures, including technical influences in futures trading, and differences between the financial instruments being hedged and the instruments underlying the standard contracts available for trading. A decision as to whether, when and how to hedge involves the exercise of skill and judgment, and even a well-conceived hedge may be unsuccessful to some degree because of market behavior or unexpected interest rate trends. In addition, a fund’s investment in exchange-traded futures and their resulting costs could limit the fund’s gains in rising markets relative to those of the underlying fund, or to those of unhedged funds in general.
Short positions — Losses from short positions in futures contracts occur when the underlying index increases in value. As the underlying index increases in value, the holder of the short position in the corresponding futures contract is required to pay the difference in value of the futures contract resulting from the increase in the index on a daily basis. Losses from a short position in an index futures contract could potentially be very large if the value of the underlying index rises dramatically in a short period of time.
Nondiversification — As nondiversified funds, the managed risk funds have the ability to invest a larger percentage of their assets in the securities of a smaller number of issuers than a diversified fund. Therefore, poor performance by a single large holding could adversely impact a managed risk fund’s investment results more than if the fund were invested in a larger number of issuers.
Management — The managed risk funds are subject to the risk that the methods employed by the subadviser in implementing the managed risk strategy may not produce the desired results. This could cause the managed risk funds to lose value or their investment results to lag relevant benchmarks or other funds with similar objectives.
5. Certain investment techniques
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.
American Funds Insurance Series – Portfolio Series | 23 |
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 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 each 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. The average month-end notional amount of futures contracts while held by Managed Risk Growth Portfolio, Managed Risk Growth and Income Portfolio and Managed Risk Global Allocation Portfolio was $40,600,000, $38,300,000 and $10,800,000, respectively.
The following tables present the financial statement impacts resulting from the managed risk funds’ use of futures contracts as of December 31, 2017 (dollars in thousands):
Managed Risk Growth Portfolio | Managed Risk Growth and Income Portfolio | Managed Risk Global Allocation Portfolio | ||||||||||||
Assets | Risk type | Location on statements of assets and liabilities | ||||||||||||
Futures contracts | Interest | Net unrealized appreciation* | $ | — | $ | — | $ | — | ||||||
Liabilities | Risk type | Location on statements of assets and liabilities | ||||||||||||
Futures contracts | Interest | Net unrealized depreciation* | $ | 112 | $ | 105 | $ | 32 | ||||||
Net realized gain | Risk type | Location on statements of operations | ||||||||||||
Futures contracts | Interest | Net realized gain on futures contracts | $ | — | $ | — | $ | — | ||||||
Net unrealized depreciation | Risk type | Location on statements of operations | ||||||||||||
Futures contracts | Interest | Net unrealized depreciation on futures contracts | $ | (112 | ) | $ | (105 | ) | $ | (32 | ) |
* | Includes cumulative appreciation (depreciation) on futures contracts as reported in the applicable table after each fund’s investment portfolio. Only current day’s variation margin is reported within the statements of assets and liabilities. |
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 each intends to distribute substantially all of its net taxable income and net capital gains each year. The funds are not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.
As of and during the period ended December 31, 2017, 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.
Each fund’s tax returns are not subject to examination by federal, state and, if applicable, non-U.S. tax authorities after the expiration of each jurisdiction’s statute of limitations, which is generally three years after the date of filing but can be extended in certain jurisdictions.
24 | American Funds Insurance Series – Portfolio Series |
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 short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase and cost of investments sold. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the funds for financial reporting purposes.
Additional tax basis disclosures for each fund as of December 31, 2017, were as follows (dollars in thousands):
Global Growth Portfolio | Growth and Income Portfolio | Managed Risk Growth Portfolio | Managed Risk Growth and Income Portfolio | Managed Risk Global Allocation Portfolio | ||||||||||||||||
Undistributed ordinary income | $ | 329 | $ | 1,722 | $ | 8,599 | $ | 8,572 | $ | 2,208 | ||||||||||
Undistributed long-term capital gain | 559 | 3,307 | 29,361 | 23,104 | 3,594 | |||||||||||||||
Capital loss carryforward utilized | — | — | — | — | 1,033 | |||||||||||||||
Gross unrealized appreciation on investments | 3,766 | 8,707 | 80,258 | 75,225 | 24,768 | |||||||||||||||
Gross unrealized depreciation on investments | — | (466 | ) | (7,431 | ) | (3,006 | ) | (1,286 | ) | |||||||||||
Net unrealized appreciation on investments | 3,766 | 8,241 | 72,827 | 72,219 | 23,482 | |||||||||||||||
Cost of investments | 26,117 | 125,993 | 831,196 | 779,671 | 227,256 | |||||||||||||||
Reclassification to undistributed net investment income from undistributed net realized gain | 5 | 344 | 2,744 | 1,451 | 421 |
Distributions paid by each fund were characterized for tax purposes as follows (dollars in thousands):
Global Growth Portfolio
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total dividends and distributions paid | Ordinary income | Long-term capital gains | Total dividends and distributions paid | ||||||||||||||||||
Class 4 | $ | 180 | $ | 398 | $ | 578 | $ | 59 | $ | 15 | $ | 74 | ||||||||||||
Growth and Income Portfolio | ||||||||||||||||||||||||
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total dividends and distributions paid | Ordinary income | Long-term capital gains | Total dividends and distributions paid | ||||||||||||||||||
Class 4 | $ | 1,842 | $ | 962 | $ | 2,804 | $ | 295 | $ | 34 | $ | 329 | ||||||||||||
Managed Risk Growth Portfolio | ||||||||||||||||||||||||
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total dividends and distributions paid | Ordinary income | Long-term capital gains | Total dividends paid | ||||||||||||||||||
Class P2 | $ | 6,769 | $ | 16,589 | $ | 23,358 | $ | 170 | $ | — | $ | 170 |
American Funds Insurance Series – Portfolio Series | 25 |
Managed Risk Growth and Income Portfolio
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total dividends and distributions paid | Ordinary income | Long-term capital gains | Total dividends paid | ||||||||||||||||||
Class P2 | $ | 8,603 | $ | 1,336 | $ | 9,939 | $ | 1,501 | $ | — | $ | 1,501 | ||||||||||||
Managed Risk Global Allocation Portfolio | ||||||||||||||||||||||||
Year ended December 31, 2017 | Year ended December 31, 2016 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total dividends paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class P2 | $ | 1,285 | $ | — | $ | 1,285 | $ | — | $ | — | $ | — |
7. Fees and transactions
CRMC, the series’ investment adviser, is the parent company of American Funds Distributors,® Inc. (“AFD”), the distributor of the series’ shares, and American Funds Service Company® (“AFS”), the series’ transfer agent. CRMC, AFD and AFS are considered related parties to the series.
Investment advisory services — The series has an investment advisory and service agreement with CRMC that provides for monthly fees accrued daily. These fees are based on an annual rate of 0.150% of average daily net assets for the three managed risk funds. CRMC receives investment advisory fees from the underlying funds. These fees are included in the net effective expense ratios that are provided as supplementary information in the financial highlights tables. Subadvisory fees for the managed risk funds are paid by CRMC to Milliman FRM. The managed risk funds are not responsible for paying any subadvisory fees.
Investment advisory services waivers — CRMC has agreed to waive a portion of the investment advisory services fees for the three 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, 2017, total investment advisory services fees waived by CRMC were $828,000.
Distribution services — The series has plans of distribution for all share classes. 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 0.25% to 0.50% as noted in the table below. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans.
Share class | Currently approved limits | Plan limits | |||||||
Class 4 | 0.25 | % | 0.25 | % | |||||
Class P2 | 0.25 | 0.50 |
Insurance administrative services — The series has an insurance administrative services plan for all share classes. Under the plan, each share class pays 0.25% of each insurance company’s respective average daily net assets to compensate the insurance companies for services provided to their separate accounts and contractholders for which the shares of the fund are beneficially owned as underlying investments of such contractholders’ annuities. These services include, but are not limited to, maintenance, shareholder communications and transactional services. The insurance companies are not related parties to the series.
Transfer agent services — The series has a shareholder services agreement with AFS under which the funds compensate AFS for providing transfer agent services to the funds. 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.
26 | American Funds Insurance Series – Portfolio Series |
Administrative services — The series has an administrative services agreement with CRMC to provide administrative services to all of the funds. The services include, but are not limited to, coordinating, monitoring, assisting and overseeing third parties that provide services to fund shareholders. CRMC receives administrative services fees of 0.01% of average daily net assets from the Class 1 shares of the underlying funds for administrative services provided to the series.
Accounting and administrative services — The three managed risk funds have a subadministration agreement with BNY Mellon under which each fund compensates BNY Mellon for providing accounting and administrative services. 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.
Miscellaneous fee reimbursements — CRMC is currently reimbursing a portion of miscellaneous fees and expenses for Global Growth Portfolio, Managed Risk Growth Portfolio, Managed Risk Growth and Income Portfolio and Managed Risk Global Allocation Portfolio. Miscellaneous expenses exclude investment advisory services and distribution services fees. For the year ended December 31, 2017, total expenses reimbursed by CRMC were $77,000.
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 in the fund’s statement of operations reflects the current fees (either paid in cash or deferred) and the net increase or decrease in the value of the deferred amounts.
Affiliated officers and trustees — Officers and certain trustees of the series are or may be considered to be affiliated with CRMC, AFD and AFS. No affiliated officers or trustees received any compensation directly from any fund in the series.
Security transactions with related funds — The funds may purchase from, or sell securities to, other CRMC-managed funds (or funds managed by certain affiliates of CRMC) under procedures adopted by the fund’s board of trustees. The funds involved in such transactions are considered related by virtue of having a common investment adviser (or affiliated investment advisers), common trustees and/or common officers. When such transactions occur, each transaction is executed at the current market price of the security and no brokerage commissions or fees are paid in accordance with Rule 17a-7 of the 1940 Act.
American Funds Insurance Series – Portfolio Series | 27 |
8. Capital share transactions
Capital share transactions in the funds were as follows (dollars and shares in thousands):
Global Growth Portfolio
Sales | Reinvestments of dividends and distributions | Repurchases | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 4 | $ | 13,946 | 1,261 | $ | 578 | 53 | $ | (2,341 | ) | (211 | ) | $ | 12,183 | 1,103 | ||||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class 4 | $ | 8,315 | 872 | $ | 74 | 8 | $ | (1,365 | ) | (145 | ) | $ | 7,024 | 735 | ||||||||||||||||||
Growth and Income Portfolio | ||||||||||||||||||||||||||||||||
Sales | Reinvestments of dividends and distributions | Repurchases | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class 4 | $ | 64,274 | 5,981 | $ | 2,804 | 257 | $ | (10,824 | ) | (1,003 | ) | $ | 56,254 | 5,235 | ||||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class 4 | $ | 51,768 | 5,207 | $ | 330 | 33 | $ | (2,733 | ) | (277 | ) | $ | 49,365 | 4,963 | ||||||||||||||||||
Managed Risk Growth Portfolio | ||||||||||||||||||||||||||||||||
Sales | Reinvestments of dividends and distributions | Repurchases | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class P2 | $ | 234,896 | 22,474 | $ | 23,358 | 2,255 | $ | (20,729 | ) | (1,977 | ) | $ | 237,525 | 22,752 | ||||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class P2 | $ | 300,584 | 31,967 | $ | 170 | 18 | $ | (7,815 | ) | (827 | ) | $ | 292,939 | 31,158 | ||||||||||||||||||
Managed Risk Growth and Income Portfolio | ||||||||||||||||||||||||||||||||
Sales | Reinvestments of dividends and distributions | Repurchases | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class P2 | $ | 200,646 | 19,165 | $ | 9,939 | 937 | $ | (24,987 | ) | (2,414 | ) | $ | 185,598 | 17,688 | ||||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class P2 | $ | 326,402 | 34,352 | $ | 1,501 | 155 | $ | (3,795 | ) | (397 | ) | $ | 324,108 | 34,110 |
28 | American Funds Insurance Series – Portfolio Series |
Managed Risk Global Allocation Portfolio
Sales | Reinvestments of dividends | Repurchases | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Class P2 | $ | 82,444 | 7,903 | $ | 1,285 | 125 | $ | (7,150 | ) | (714 | ) | $ | 76,579 | 7,314 | ||||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||
Class P2 | $ | 87,466 | 9,446 | $ | — | — | $ | (10,549 | ) | (1,122 | ) | $ | 76,917 | 8,324 |
9. Investment transactions
Each fund made purchases and sales of investment securities during the year ended December 31, 2017, as follows (dollars in thousands):
Global Growth Portfolio | Growth and Income Portfolio | Managed Risk Growth Portfolio | Managed Risk Growth and Income Portfolio | Managed Risk Global Allocation Portfolio | ||||||||||||||||
Purchases of investment securities* | $ | 14,527 | $ | 69,112 | $ | 293,460 | $ | 267,205 | $ | 93,978 | ||||||||||
Sales of investment securities* | 2,193 | 10,485 | 47,224 | 68,219 | 15,266 |
* | Excludes short-term securities and U.S. government obligations, if any. |
American Funds Insurance Series – Portfolio Series | 29 |
Financial highlights
Income (loss) from | Ratio of | Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
investment operations1 | Dividends and distributions | expenses | expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net gains | to average | to average | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(losses) on | Total | net assets | net assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset | securities | Dividends | dividends | Net assets, | before | after | Net | Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||
value, | Net | (both | Total from | (from net | Distributions | and | Net asset | end of | waivers/ | waivers/ | effective | net income | ||||||||||||||||||||||||||||||||||||||||||||
beginning | investment | realized and | investment | investment | (from capital | distribu- | value, end | Total | period | reimburse- | reimburse- | expense | to average | |||||||||||||||||||||||||||||||||||||||||||
Period ended | of period | income | unrealized) | operations | income) | gains) | tions | of period | return2 | (in millions) | ments3 | ments2,3 | ratio2,4 | net assets2 | ||||||||||||||||||||||||||||||||||||||||||
Global Growth Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 9.77 | $ | .12 | $ | 2.59 | $ | 2.71 | $ | (.06 | ) | $ | (.25 | ) | $ | (.31 | ) | $ | 12.17 | 28.11 | % | $ | 30 | .62 | % | .56 | % | 1.18 | % | 1.05 | % | |||||||||||||||||||||||||
12/31/16 | 9.45 | .12 | .29 | .41 | (.05 | ) | (.04 | ) | (.09 | ) | 9.77 | 4.42 | 13 | .75 | .56 | 1.18 | 1.30 | |||||||||||||||||||||||||||||||||||||||
12/31/155,6 | 10.00 | .12 | (.67 | ) | (.55 | ) | — | — | — | 9.45 | (5.50 | )7 | 6 | 1.02 | 8 | .58 | 8 | 1.20 | 8 | 1.91 | 8 | |||||||||||||||||||||||||||||||||||
Growth and Income Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 10.13 | $ | .17 | $ | 1.38 | $ | 1.55 | $ | (.13 | ) | $ | (.15 | ) | $ | (.28 | ) | $ | 11.40 | 15.43 | % | $ | 134 | .53 | % | .53 | % | .97 | % | 1.59 | % | |||||||||||||||||||||||||
12/31/16 | 9.61 | .23 | .38 | .61 | (.07 | ) | (.02 | ) | (.09 | ) | 10.13 | 6.41 | 66 | .57 | .55 | .99 | 2.31 | |||||||||||||||||||||||||||||||||||||||
12/31/155,6 | 10.00 | .20 | (.58 | ) | (.38 | ) | (.01 | ) | — | (.01 | ) | 9.61 | (3.85 | )7 | 15 | .79 | 8 | .58 | 8 | 1.05 | 8 | 3.14 | 8 | |||||||||||||||||||||||||||||||||
Managed Risk Growth Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class P2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 9.76 | $ | .10 | $ | 1.63 | $ | 1.73 | $ | (.09 | ) | $ | (.24 | ) | $ | (.33 | ) | $ | 11.16 | 18.00 | % | $ | 904 | .68 | % | .63 | % | 1.03 | % | .95 | % | |||||||||||||||||||||||||
12/31/16 | 9.39 | .11 | .26 | .37 | — | 9 | — | — | 9 | 9.76 | 3.97 | 568 | .77 | .63 | 1.02 | 1.12 | ||||||||||||||||||||||||||||||||||||||||
12/31/155,6 | 10.00 | .18 | (.70 | ) | (.52 | ) | (.09 | ) | — | (.09 | ) | 9.39 | (5.20 | )7 | 254 | .86 | 8 | .61 | 8 | 1.01 | 8 | 2.77 | 8 | |||||||||||||||||||||||||||||||||
Managed Risk Growth and Income Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class P2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 9.68 | $ | .15 | $ | 1.44 | $ | 1.59 | $ | (.12 | ) | $ | (.02 | ) | $ | (.14 | ) | $ | 11.13 | 16.55 | % | $ | 851 | .68 | % | .63 | % | 1.08 | % | 1.38 | % | |||||||||||||||||||||||||
12/31/16 | 9.36 | .16 | .19 | .35 | (.03 | ) | — | (.03 | ) | 9.68 | 3.70 | 569 | .77 | .63 | 1.08 | 1.68 | ||||||||||||||||||||||||||||||||||||||||
12/31/155,6 | 10.00 | .18 | (.73 | ) | (.55 | ) | (.09 | ) | — | (.09 | ) | 9.36 | (5.50 | )7 | 231 | .86 | 8 | .61 | 8 | 1.08 | 8 | 2.85 | 8 | |||||||||||||||||||||||||||||||||
Managed Risk Global Allocation Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class P2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/17 | $ | 9.34 | $ | .10 | $ | 1.67 | $ | 1.77 | $ | (.07 | ) | $ | — | $ | (.07 | ) | $ | 11.04 | 19.03 | % | $ | 251 | .70 | % | .63 | % | 1.19 | % | .94 | % | ||||||||||||||||||||||||||
12/31/16 | 9.24 | .10 | — | 9 | .10 | — | — | — | 9.34 | 1.08 | 144 | .77 | .63 | 1.20 | 1.08 | |||||||||||||||||||||||||||||||||||||||||
12/31/155,6 | 10.00 | .14 | (.81 | ) | (.67 | ) | (.09 | ) | — | (.09 | ) | 9.24 | (6.71 | )7 | 65 | .90 | 8 | .56 | 8 | 1.13 | 8 | 2.22 | 8 |
Year ended December 31 | For the period ended | |||||||||||
Portfolio turnover rate | 2017 | 2016 | December 31, 20155,6,7 | |||||||||
Global Growth Portfolio | 10 | % | 17 | % | 32 | % | ||||||
Growth and Income Portfolio | 10 | 18 | 10 | |||||||||
Managed Risk Growth Portfolio | 7 | 6 | 4 | |||||||||
Managed Risk Growth and Income Portfolio | 10 | 3 | 4 | |||||||||
Managed Risk Global Allocation Portfolio | 8 | 13 | 15 |
1 | Based on average shares outstanding. |
2 | This column reflects the impact of certain waivers/reimbursements by CRMC. During some of the periods shown, CRMC waived a portion of investment advisory services fees and reimbursed a portion of miscellaneous fees and expenses for Global Growth Portfolio and Growth and Income Portfolio. During all of the periods shown, CRMC waived a portion of advisory services fees and reimbursed a portion of miscellaneous fees and expenses for the managed risk funds. |
3 | This column does not include expenses of the underlying funds in which each fund invests. |
4 | This column reflects the net effective expense ratios for each fund and class, which are unaudited. These ratios include each class’s expense ratio combined with the weighted average net expense ratio of the underlying funds for the periods presented. See Expense Example for further information regarding fees and expenses. |
5 | Based on operations for a period that is less than a full year. |
6 | For the period May 1, 2015, commencement of operations, through December 31, 2015. |
7 | Not annualized. |
8 | Annualized. |
9 | Amount less than $.01. |
30 | American Funds Insurance Series – Portfolio Series |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of American Funds Insurance Series and Shareholders of American Funds Global Growth Portfolio, American Funds Growth and Income Portfolio, American Funds Managed Risk Growth Portfolio, American Funds Managed Risk Growth and Income Portfolio and American Funds Managed Risk Global Allocation Portfolio
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the investment portfolios, of American Funds Global Growth Portfolio, American Funds Growth and Income Portfolio, American Funds Managed Risk Growth Portfolio, American Funds Managed Risk Growth and Income Portfolio and American Funds Managed Risk Global Allocation Portfolio (five of the funds constituting American Funds Insurance Series, hereafter collectively referred to as the “Funds”) as of December 31, 2017, the related statements of operations for the year ended December 31, 2017, the statements of changes in net assets for each of the two years in the period ended December 31, 2017, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2017, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended December 31, 2017 and each of the financial highlights for each of the periods indicated herein, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2017 by correspondence with the custodians, transfer agents and brokers. We believe that our audits provide a reasonable basis for our opinions.
PricewaterhouseCoopers, LLP
Los Angeles, California
February 14, 2018
We have served as the auditor of one or more investment companies in The Capital Group Companies Investment Companies Complex since 1934.
American Funds Insurance Series – Portfolio Series | 31 |
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, 2017, through December 31, 2017).
Actual expenses:
The first line of each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading titled “Expenses paid during period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes:
The second line of each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.
Notes:
Additional fees are charged by the insurance companies related to the various benefits they provide. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.
Note that the expenses shown in the table on the following page are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the second line of each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
32 | American Funds Insurance Series – Portfolio Series |
Beginning account value 7/1/2017 | Ending account value 12/31/2017 | Expenses paid during period1,2 | Annualized expense ratio2 | Effective expenses paid during period3 | Effective annualized expense ratio4 | |||||||||||||||||||
Global Growth Portfolio | ||||||||||||||||||||||||
Class 4 – actual return | $ | 1,000.00 | $ | 1,109.39 | $ | 2.98 | .56 | % | $ | 6.27 | 1.18 | % | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,022.38 | 2.85 | .56 | 6.01 | 1.18 | ||||||||||||||||||
Growth and Income Portfolio | ||||||||||||||||||||||||
Class 4 – actual return | $ | 1,000.00 | $ | 1,063.30 | $ | 2.81 | .54 | % | $ | 5.10 | .98 | % | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,022.48 | 2.75 | .54 | 4.99 | .98 | ||||||||||||||||||
Managed Risk Growth Portfolio | ||||||||||||||||||||||||
Class P2 – actual return | $ | 1,000.00 | $ | 1,080.78 | $ | 3.30 | .63 | % | $ | 5.40 | 1.03 | % | ||||||||||||
Class P2 – assumed 5% return | 1,000.00 | 1,022.03 | 3.21 | .63 | 5.24 | 1.03 | ||||||||||||||||||
Managed Risk Growth and Income Portfolio | ||||||||||||||||||||||||
Class P2 – actual return | $ | 1,000.00 | $ | 1,067.44 | $ | 3.28 | .63 | % | $ | 5.63 | 1.08 | % | ||||||||||||
Class P2 – assumed 5% return | 1,000.00 | 1,022.03 | 3.21 | .63 | 5.50 | 1.08 | ||||||||||||||||||
Managed Risk Global Allocation Portfolio | ||||||||||||||||||||||||
Class P2 – actual return | $ | 1,000.00 | $ | 1,070.80 | $ | 3.29 | .63 | % | $ | 6.21 | 1.19 | % | ||||||||||||
Class P2 – assumed 5% return | 1,000.00 | 1,022.03 | 3.21 | .63 | 6.06 | 1.19 |
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 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. |
American Funds Insurance Series – Portfolio Series | 33 |
Approval of Investment Advisory and Service Agreement — American Funds Insurance Series
Portfolio Series — American Funds Global Growth Portfolio
Portfolio Series — American Funds Growth and Income Portfolio
American Funds Insurance Series’ board has approved the series’ Investment Advisory and Service Agreement (the “agreement”) with Capital Research and Management Company (“CRMC”) with respect to the Portfolio Series — American Funds Global Growth Portfolio and Portfolio Series — American Funds Growth and Income Portfolio for an additional one-year term through January 31, 2019. 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 in the exercise of their business judgment 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 following factors, among others, but did not identify any single issue or particular piece of information that, in isolation, was the controlling factor, and each board and committee member did not necessarily attribute the same weight to each factor.
1. Nature, extent and quality of services
The board and the committee considered the depth and quality of CRMC’s investment management process, including its global research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of CRMC and the Capital Group organization; the resources and systems CRMC devotes to investment management, compliance, trading, portfolio accounting and other services; and the ongoing evolution of CRMC’s organizational structure designed to maintain and strengthen these qualities. The board and the committee also considered the nature, extent and quality of administrative, 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 relevant benchmarks, such as market indexes and fund averages, over various periods through June 30, 2017. This report, including the letter to shareholders and related disclosures, contains certain information about each fund’s investment results.
Portfolio Series — American Funds Global Growth Portfolio seeks to grow assets through investments in a wide variety of growth-oriented and dividend-paying companies around the world. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Global Multi-Cap Growth Funds Average and (ii) the MSCI ACWI (All Country World Index). They noted that the fund’s investment results were higher than the benchmarks for the three-month and one-year periods and lifetime of the fund since May 1, 2015, and were mixed for the six-month period.
Portfolio Series — American Funds Growth and Income Portfolio seeks to grow assets through a wide variety of stock investments, while providing income from dividend-paying companies and fixed income securities. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Mixed-Asset Target Allocation Moderate Funds Average, (ii) the Standard & Poor’s 500 Composite Index, (iii) the Bloomberg Barclays U.S. Aggregate Index and (iii) a customized index composed of 70% S&P 500 index and 30% Bloomberg Barclays index. They noted that the fund’s investment results were higher than all benchmarks over the three-month period, below the S&P 500 index and higher than all other benchmarks for the six-month period, and were mixed for the one-year period and lifetime of the fund since May 1, 2015.
The board and the committee concluded that each fund’s investment results have been satisfactory for renewal of the agreement, and that CRMC’s record in managing the funds indicated that its continued management should benefit each fund and its shareholders.
34 | American Funds Insurance Series – Portfolio Series |
3. Advisory fees and total expenses
The board and the committee compared the total expense levels of each fund to those of other relevant funds. They observed that the total expenses for Portfolio Series — American Funds Global Growth Portfolio were below the median and above the average expenses of those of the other funds included in the Lipper category described above, and that the total expenses for Portfolio Series — American Funds Growth and Income Portfolio were lower than the median and average of the funds in the Lipper category described above.
The board and the committee also reviewed the fee schedule of the funds (including the fees and expenses of the underlying American Funds in which the funds invest) to those of other relevant funds. The board and committee noted CRMC’s prior elimination of the entire advisory fee payable by the funds under the agreement. The board and committee also considered the breakpoint discounts in each underlying fund’s advisory fee structure that reduce the level of fees charged by CRMC to the underlying fund as its assets increase. In addition, they reviewed information regarding the effective advisory fees charged to other clients by CRMC and its affiliates. They noted that, to the extent there were differences between the advisory fees paid by the funds and the advisory fees paid by those clients, the differences appropriately reflected the investment, operational, regulatory and market differences between advising the funds and the other clients. The board and the committee concluded that each fund’s cost structure was fair and reasonable in relation to the services provided, 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 the benefits CRMC receives from the research obtained with commissions from portfolio transactions made on behalf of the funds. 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 the funds.
5. Adviser financial information
The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, including personnel, systems and resources of investment, compliance, trading, accounting and other administrative operations. They considered CRMC’s costs and related cost allocation methodology as well as its 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 also considered CRMC’s sharing of any economies of scale, or efficiencies, through breakpoints and other fee reductions and costs voluntarily absorbed. 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 – Portfolio Series | 35 |
Approval of Investment Advisory and Service Agreement and Subadvisory Agreement — American Funds Insurance Series
Portfolio Series — American Funds Managed Risk Growth Portfolio
Portfolio Series — American Funds Managed Risk Growth and Income Portfolio
Portfolio Series — American Funds Managed Risk Global Allocation Portfolio
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 January 31, 2019. The board has also approved the series’ Subadvisory Agreement (the “subadvisory agreement”) with CRMC and Milliman Financial Risk Management LLC (“Milliman FRM”) for the same term. The advisory and subadvisory agreements are jointly referred to below as the “agreements.” The board approved the agreements following the recommendation of the series’ Contracts Committee (the “committee”), which is composed of all of the series’ independent board members. The board and the committee determined in the exercise of their business judgment 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 following factors, among others, but did not identify any single issue or particular piece of information that, in isolation, was the controlling factor, and each board and committee member did not necessarily attribute the same weight to each factor.
1. Nature, extent and quality of services
The board and the committee considered the depth and quality of CRMC’s investment management process, including its global research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of CRMC and the Capital Group organization; the resources and systems CRMC devotes to investment management, compliance, trading, portfolio accounting and other services; and the ongoing evolution of CRMC’s organizational structure designed to maintain and strengthen these qualities. The board and the committee also considered the nature, extent and quality of the oversight of Milliman FRM’s services provided by CRMC, the administrative, compliance and shareholder services provided by CRMC to the funds under the agreement and other agreements, as well as the benefits to each fund’s shareholders from investing in a fund that is part of a large family of funds. The board and the committee concluded that the nature, extent and quality of the services provided by CRMC have benefited and should continue to benefit each fund and its shareholders.
The board and the committee also considered the depth and quality of Milliman FRM’s investment management process, including its experience in applying the Milliman Managed Risk Strategy to other funds of the series and risk management services for other clients; the experience, capability and integrity of its senior management and other personnel; and the services provided to each fund under the subadvisory agreement. The board and the committee concluded that the nature, extent and quality of the services provided by Milliman FRM have benefited and should continue to benefit each fund and its shareholders.
2. Investment results
The board and the committee considered the investment results of each fund in light of its objectives. They compared each fund’s investment results with relevant benchmarks, such as market indexes and fund averages, over various periods through June 30, 2017. This report, including the letter to shareholders and related disclosures, contains certain information about each fund’s investment results.
Portfolio Series — American Funds Managed Risk Growth Portfolio seeks to grow assets through exposure to a diverse mix of stocks of companies around the world with strong growth potential. The board and the committee reviewed the fund’s investment results measured against (i) the Standard & Poor’s 500 Composite Index, (ii) the Standard & Poor’s 500 Managed Risk Index — Moderate and (iii) the Bloomberg Barclays U.S. Aggregate Index. They noted that the fund’s investment results were higher than the benchmarks for the three-month period. They also noted that for the six-month and one-year periods, the fund’s investment results were above all benchmarks except the S&P 500 Composite index, and that for the lifetime of the fund since May 1, 2015, the fund’s investment results were below all benchmarks except the Bloomberg Barclays index.
36 | American Funds Insurance Series – Portfolio Series |
Portfolio Series — American Funds Managed Risk Growth and Income Portfolio seeks to grow assets through a wide variety of stock investments, while providing income from dividend-paying companies and fixed income securities, and striving to manage volatility. The board and the committee reviewed the fund’s investment results measured against (i) the Standard & Poor’s 500 Composite Index, (ii) the Standard & Poor’s 500 Managed Risk Index — Moderate and (iii) the Bloomberg Barclays U.S. Aggregate Index. They noted that the fund’s investment results were higher than the benchmarks for the three-month period. They also noted that for the six-month period, the fund’s investment results were above all benchmarks except the S&P 500 Composite index, and for the one-year period and lifetime of the fund since May 1, 2015, the fund’s results were below all benchmarks except the Bloomberg Barclays index.
Portfolio Series — American Funds Managed Risk Global Allocation Portfolio seeks to grow assets through a wide variety of investments in stocks and bonds from issuers around the world. The board and the committee reviewed the fund’s investment results measured against (i) the Standard & Poor’s Global LargeMidCap Managed Risk Index — Moderate, (ii) the MSCI ACWI (All Country World Index) and (iii) the Bloomberg Barclays Global Aggregate Index. They noted that the fund’s investment results were higher than the benchmarks for the three-month period. They also noted that for the six-month period and lifetime of the fund since May 1, 2015, the fund’s investment results were above all benchmarks except the MSCI index, and for the one-year period the fund’s results were below all benchmarks except the Bloomberg Barclays index.
The board and the committee also considered the volatility of the funds compared with the S&P 500 Managed Risk indexes noted above, and those of asset allocation and balanced funds with volatility management analytics for the six-month and one-year periods and lifetime of each fund through June 30, 2017. They noted that the volatility of each fund was above or near the volatility of the S&P index and most of the selected funds for all periods. The board and the committee concluded that each fund’s investment results and the services provided by Milliman FRM have been satisfactory for renewal of the agreement, and that CRMC’s and Milliman FRM’s record in managing the funds indicated that their continued management should benefit each fund and its shareholders.
3. Advisory fees and total expenses
The board and the committee compared the advisory fees and total expense levels of each fund to those of other relevant funds. The board and the committee noted CRMC’s waiver of a portion of the advisory fee payable by each fund under the advisory agreement, CRMC’s commitment not to remove the waiver without board approval and CRMC’s agreement to pay the fees due Milliman FRM under the subadvisory agreement. They observed that the total advisory fees and expenses for Portfolio Series — American Funds Managed Risk Growth Portfolio were lower than the median and average of the other funds in the Lipper International Small/Mid-Cap Growth Funds Average, that the total advisory fees and expenses for Portfolio Series — American Funds Managed Risk Growth and Income Portfolio were lower than the median and average of the other funds in the Lipper International Multi-Cap Growth Funds Average, and that the total advisory fees and expenses for Portfolio Series — American Funds Managed Risk Global Allocation Portfolio were above the median and average of the other funds in the Lipper Mixed-Asset Target Allocation Growth Funds Average.
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, regulatory and marketing differences between advising the funds and the other clients. They also reviewed the fees paid to Milliman FRM by other funds which it advised or subadvised. The board and the committee concluded that each fund’s cost structure was fair and reasonable in relation to the services that CRMC provided, directly and through Milliman FRM, and that each fund’s shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC (and indirectly to Milliman FRM) by the funds.
American Funds Insurance Series – Portfolio Series | 37 |
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 the benefits CRMC receives from the research obtained with commissions from portfolio transactions made on behalf of the funds. The board and the committee also reviewed similar ancillary benefits received by Milliman FRM as a result of its relationship with the series. The board and the committee took these ancillary benefits into account in evaluating the reasonableness of the advisory fees and other amounts paid to CRMC (and indirectly to Milliman FRM) by each fund.
5. Adviser financial information
The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, including personnel, systems and resources of investment, compliance, trading, accounting and other administrative operations. They considered CRMC’s costs and related cost allocation methodology as well as its 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 also considered CRMC’s sharing of any economies of scale, or efficiencies, through breakpoints and other fee reductions and costs voluntarily absorbed. 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.
38 | American Funds Insurance Series – Portfolio Series |
Board of trustees and other officers
Independent trustees1
Name and year of birth | 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, 1945 | 2009 | CEO and President, Richard Nixon Foundation; Chairman of the Board and CEO, Oakwood Enterprises (private investment and consulting) | 80 | General Finance Corporation | ||||
James G. Ellis, 1947 | 2010 | Dean and Professor of Marketing, Marshall School of Business, University of Southern California | 80 | Mercury General Corporation | ||||
Nariman Farvadin, PhD, 1956 | 2018 | President, Stevens Institute of Technology | 77 | None | ||||
Leonard R. Fuller, 1946 | 1999 | Private investor; former President and CEO, Fuller Consulting (financial management consulting) | 80 | None | ||||
Mary Davis Holt, 1950 | 2015–2016 2017 | Principal, Mary Davis Holt Enterprises, LLC (leadership development consulting); former Partner, Flynn Heath Holt Leadership, LLC (leadership consulting) | 77 | None | ||||
R. Clark Hooper, 1946 Chairman of the Board (Independent and Non-Executive) | 2010 | Private investor | 80 | None | ||||
Merit E. Janow, 1958 | 2007 | Dean and Professor, Columbia University, School of International and Public Affairs | 79 | Mastercard Incorporated; Trimble Inc. | ||||
Laurel B. Mitchell, PhD, 1955 | 2010 | Chair, California Jump$tart Coalition for Personal Financial Literacy; Part-time faculty, Pomona College; former Distinguished Professor of Accounting, University of Redlands; former Director, Accounting Program, University of Redlands | 76 | None | ||||
Frank M. Sanchez, 1943 | 2010 | Principal, The Sanchez Family Corporation dba McDonald’s Restaurants (McDonald’s licensee) | 76 | None | ||||
Margaret Spellings, 1957 | 2010 | President, The University of North Carolina; former 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 | 81 | None | ||||
Alexandra Trower, 1964 | 2018 | Executive Vice President, Global Communications and Corporate Officer, The Estée Lauder Companies | 67 | None |
We are deeply saddened by the loss of Dr. Steadman Upham, who passed away on July 30, 2017. Dr. Upham served as an independent trustee on the boards of several American Funds since 2001. His wise counsel and friendship will be missed.
Interested trustee4,5
Name, year of birth 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, 1960 Vice Chairman of the Board | 1998 | Partner — Capital Research Global Investors, Capital Research and Management Company; Director, Capital Research and Management Company | 31 | None |
The series statement of additional information includes further details about the series trustees and is available without charge upon request by calling American Funds Service Company at (800) 421-4225 or by visiting the American Funds website at americanfunds.com. The address for all trustees and officers of the series is 333 South Hope Street, Los Angeles, CA 90071, Attention: Secretary.
American Funds Insurance Series – Portfolio Series | 39 |
Other officers5
Name, year of birth and position with series | Year first elected an officer of the series2 | Principal occupation(s) during past five years and positions held with affiliated entities or the principal underwriter of the series | ||
Alan N. Berro, 1960 President | 1998 | Partner — Capital World Investors, Capital Research and Management Company; Director, Capital Research and Management Company | ||
Michael J. Downer, 1955 Executive Vice President | 1991 | Director, Senior Vice President and Secretary, Capital Research and Management Company; Chairman of the Board, Capital Bank and Trust Company6 | ||
John H. Smet, 1956 Senior Vice President | 1994 | Partner — Capital Fixed Income Investors, Capital Research and Management Company; Director, Capital Research and Management Company | ||
Martin Jacobs, 1962 Vice President | 2016 | Partner — Capital World Investors, Capital Research and Management Company | ||
Carl M. Kawaja, 1964 Vice President | 2008 | Partner — Capital World Investors, Capital Research and Management Company; Director, The Capital Group Companies, Inc.6 | ||
Sung Lee, 1966 Vice President | 2008 | Partner — Capital Research Global Investors, Capital International, Inc.6 | ||
S. Keiko McKibben, 1969 Vice President | 2010 | Partner — Capital Research Global Investors, Capital Research and Management Company | ||
Maria T. Manotok Pathria, 1974 Vice President | 2012 | Senior Vice President and Senior Counsel — Fund Business Management Group, Capital Research and Management Company; Director, Capital Guardian Trust Company6 | ||
Renaud H. Samyn, 1974 Vice President | 2010 | Partner — Capital Research Global Investors, Capital International, Inc.6 | ||
Dylan Yolles, 1969 Vice President | 2012 | Partner — Capital International Investors, Capital Research and Management Company | ||
Steven I. Koszalka, 1964 Secretary | 2003 | Vice President — Fund Business Management Group, Capital Research and Management Company | ||
Gregory F. Niland, 1971 Treasurer | 2008 | Vice President — Investment Operations, Capital Research and Management Company | ||
Susan K. Countess, 1966 Assistant Secretary | 2014 | Associate — Fund Business Management Group, Capital Research and Management Company | ||
Brian C. Janssen, 1972 Assistant Treasurer | 2015 | Vice President — Investment Operations, Capital Research and Management Company | ||
Dori Laskin, 1951 Assistant Treasurer | 2010 | Vice President — Investment Operations, Capital Research and Management Company |
1 | The term independent trustee refers to a trustee who is not an “interested person” of the series within the meaning of the Investment Company Act of 1940. |
2 | Trustees and officers of the series serve until their resignation, removal or retirement. |
3 | This includes all directorships/trusteeships (other than those in the American Funds or other funds managed by Capital Research and Management Company or its affiliates) that are held by each trustee as a trustee or director of a public company or a registered investment company. |
4 | The term interested trustee refers to a trustee who is an “interested person” within the meaning of the Investment Company Act of 1940, on the basis of their affiliation with the series investment adviser, Capital Research and Management Company, or affiliated entities (including the series principal underwriter). |
5 | All of the trustees and/or officers listed, with the exception of Martin Jacobs, S. Keiko McKibben and Renaud H. Samyn, are officers and/or directors/trustees of one or more of the other funds for which Capital Research and Management Company serves as investment adviser. |
6 | Company affiliated with Capital Research and Management Company. |
40 | American Funds Insurance Series – Portfolio Series |
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American Funds Insurance Series – Portfolio Series | 43 |
Offices of the series and of the investment adviser
Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406
6455 Irvine Center Drive
Irvine, CA 92618-4518
Investment subadviser
Milliman Financial Risk Management LLC
(Managed Risk Funds only)
71 South Wacker Drive, 31st Floor
Chicago, IL 60606
Custodians of assets
State Street Bank and Trust Company
One Lincoln Street
Boston, MA 02111
Bank of New York Mellon
(Managed Risk Funds only)
One Wall Street
New York, NY 10286
Counsel
Morgan, Lewis & Bockius LLP
300 South Grand Avenue, 22nd Floor
Los Angeles, CA 90071-3132
Independent registered public accounting firm
PricewaterhouseCoopers LLP
601 South Figueroa Street
Los Angeles, CA 90017-3874
44 | American Funds Insurance Series – Portfolio Series |
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the series prospectuses and summary prospectuses, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the American Funds website at americanfunds.com. Fund shares offered through American Funds Distributors, Inc.
“Proxy Voting Guidelines for American Funds Insurance Series — Portfolio Series” — which describes how we vote proxies relating to the underlying funds held in the portfolios — 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.
American Funds Insurance Series — Portfolio 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 — Portfolio 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 — Portfolio 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, 2018, this report must be accompanied by a statistical update for the most recently completed calendar quarter.
Bloomberg® is a trademark of Bloomberg Finance L.P. (collectively with its affiliates, “Bloomberg”). Barclays® is a trademark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Neither Bloomberg nor Barclays approves or endorses this material, guarantees the accuracy or completeness of any information herein and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products. Standard & Poor’s 500 Composite Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group. Copyright © 2018 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC.
American Funds from Capital Group
The Capital 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 27 years of investment experience, including 22 years at our company, reflecting a career commitment to our long-term approach.1 | |
The Capital System | |
The Capital System combines individual accountability with teamwork. Funds using The Capital System are divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. An extensive global research effort is the backbone of our system. | |
Superior long-term track record | |
AFIS equity funds have beaten their comparable Lipper indexes in 93% of 10-year periods and 100% of 20-year periods. AFIS fixed income funds have beaten comparable Lipper indexes in 69% of 10-year periods and 84% 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 | Based on the American Funds Insurance Series prospectus dated May 1, 2017. | |
2 | Based on Class 1 share results for rolling periods through December 31, 2017. Periods covered are the shorter of the fund’s lifetime or since the inception date of the comparable Lipper index. The comparable Lipper indexes are: Global Funds Index (Global Growth Fund, Global Growth and Income Fund), Growth Funds Index (Growth Fund), International Funds Index (International Fund), Emerging Markets Funds Index (New World Fund), Growth & Income Funds Index (Blue Chip Income and Growth Fund, Growth-Income Fund), Balanced Funds Index (Asset Allocation Fund), Core Bond Funds Index (Bond Fund), Global Income Funds Index (Global Bond Fund), High Yield Funds Index (High-Income Bond Fund), Ultra-Short Obligation Funds Index (Ultra-Short Bond Fund) and General U.S. Government Funds Index (U.S. Government/AAA-Rated Securities Fund). The Lipper Global Small-/Mid-Cap Funds Average was used for Global Small Capitalization Fund. | |
3 | Based on management fees for the 20-year period ended December 31, 2017, versus comparable Lipper categories, excluding funds of funds. |
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: | ||
2016 | $703,000 | |
2017 | $701,000 | |
b) Audit-Related Fees: | ||
2016 | None | |
2017 | None | |
c) Tax Fees: | ||
2016 | $155,000 | |
2017 | $168,000 | |
The tax fees consist of professional services relating to the preparation of the Registrant’s tax returns. | ||
d) All Other Fees: | ||
2016 | None | |
2017 | 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: | ||
2016 | $17,000 | |
2017 | $0 | |
The audit-related fees consist of assurance and related services relating to the examination of the Registrant’s transfer agent, principal underwriter and investment adviser conducted in accordance with Statement on Standards for Attestation Engagements Number 16 issued by the American Institute of Certified Public Accountants. | ||
c) Tax Fees: | ||
2016 | $9,000 | |
2017 | $0 | |
The tax fees consist of consulting services relating to the Registrant’s investments. | ||
d) All Other Fees: | ||
2016 | $2,000 | |
2017 | $0 | |
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 $185,000 for fiscal year 2016 and $168,000 for fiscal year 2017. 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 Fund
Investment portfolio
December 31, 2017
Common stocks 96.68% Information technology 32.07% | Shares | Value (000) |
ASML Holding NV1 | 648,442 | $112,497 |
ASML Holding NV (New York registered) | 643,900 | 111,923 |
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 26,955,000 | 207,124 |
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 335,000 | 13,283 |
Alphabet Inc., Class A2 | 130,000 | 136,942 |
Alphabet Inc., Class C2 | 71,052 | 74,349 |
Nintendo Co., Ltd.1 | 492,400 | 179,259 |
Facebook, Inc., Class A2 | 898,500 | 158,549 |
Microsoft Corp. | 1,355,900 | 115,984 |
Alibaba Group Holding Ltd. (ADR)2 | 671,050 | 115,709 |
Visa Inc., Class A | 998,800 | 113,883 |
Broadcom Ltd. | 373,700 | 96,003 |
Tencent Holdings Ltd.1 | 1,800,000 | 93,051 |
Samsung Electronics Co., Ltd.1 | 15,740 | 37,396 |
Samsung Electronics Co., Ltd., nonvoting preferred1 | 15,845 | 30,888 |
AAC Technologies Holdings Inc.1 | 3,806,540 | 67,697 |
Just Eat PLC1,2 | 5,292,000 | 55,515 |
Murata Manufacturing Co., Ltd.1 | 409,000 | 54,665 |
Intel Corp. | 1,000,000 | 46,160 |
TEMENOS Group AG (Switzerland)1 | 318,000 | 40,696 |
Largan Precision Co., Ltd.1 | 215,000 | 28,955 |
Baidu, Inc., Class A (ADR)2 | 112,000 | 26,231 |
Amphenol Corp., Class A | 265,000 | 23,267 |
Symantec Corp. | 491,000 | 13,777 |
VeriSign, Inc.2 | 107,800 | 12,337 |
Jack Henry & Associates, Inc. | 98,000 | 11,462 |
TE Connectivity Ltd. | 120,000 | 11,405 |
Tech Mahindra Ltd.1 | 1,319,000 | 10,404 |
1,999,411 | ||
Consumer discretionary 18.17% | ||
Amazon.com, Inc.2 | 291,900 | 341,368 |
Priceline Group Inc.2 | 39,000 | 67,772 |
Home Depot, Inc. | 350,000 | 66,335 |
Peugeot SA1 | 3,180,000 | 64,597 |
Industria de Diseño Textil, SA1 | 1,723,000 | 59,929 |
Naspers Ltd., Class N1 | 190,820 | 53,168 |
McDonald’s Corp. | 293,000 | 50,431 |
NIKE, Inc., Class B | 671,000 | 41,971 |
Luxottica Group SpA1 | 587,617 | 36,010 |
Ctrip.com International, Ltd. (ADR)2 | 797,000 | 35,148 |
Suzuki Motor Corp.1 | 580,000 | 33,594 |
ASOS PLC1,2 | 370,000 | 33,532 |
MGM China Holdings, Ltd.1 | 10,962,000 | 33,159 |
Wynn Macau, Ltd.1 | 9,902,000 | 31,197 |
Sodexo SA1 | 200,000 | 26,853 |
CBS Corp., Class B | 334,850 | 19,756 |
American Funds Insurance Series — Global Growth Fund — Page 1 of 171
Common stocks Consumer discretionary (continued) | Shares | Value (000) |
Tiffany & Co. | 190,000 | $19,751 |
GVC Holdings PLC1 | 1,559,000 | 19,467 |
Burberry Group PLC1 | 692,400 | 16,739 |
Ulta Beauty, Inc.2 | 68,200 | 15,254 |
Starbucks Corp. | 202,500 | 11,630 |
Cie. Financière Richemont SA, Class A1 | 121,450 | 10,996 |
Sony Corp.1 | 243,000 | 10,915 |
MGM Resorts International | 255,000 | 8,514 |
Twenty-First Century Fox, Inc., Class A | 242,000 | 8,356 |
Newell Brands Inc. | 270,000 | 8,343 |
Hermès International1 | 15,131 | 8,100 |
1,132,885 | ||
Health care 11.96% | ||
Regeneron Pharmaceuticals, Inc.2 | 214,000 | 80,455 |
UnitedHealth Group Inc. | 324,200 | 71,473 |
Express Scripts Holding Co.2 | 768,500 | 57,361 |
Bayer AG1 | 421,600 | 52,436 |
Straumann Holding AG1 | 67,500 | 47,644 |
AstraZeneca PLC1 | 652,300 | 44,763 |
Sartorius AG, non-registered shares, nonvoting preferred1 | 444,000 | 42,371 |
Eurofins Scientific SE, non-registered shares1 | 68,145 | 41,492 |
Boston Scientific Corp.2 | 1,638,200 | 40,611 |
Mettler-Toledo International Inc.2 | 65,000 | 40,269 |
Fisher & Paykel Healthcare Corp. Ltd.1 | 3,680,000 | 37,318 |
Vertex Pharmaceuticals Inc.2 | 210,000 | 31,471 |
Novartis AG1 | 366,000 | 30,942 |
Genmab A/S1,2 | 167,000 | 27,693 |
Hypermarcas SA, ordinary nominative | 2,220,000 | 24,093 |
Aetna Inc. | 110,000 | 19,843 |
Merck & Co., Inc. | 300,000 | 16,881 |
CSL Ltd.1 | 147,000 | 16,179 |
bioMérieux SA1 | 135,000 | 12,096 |
Novo Nordisk A/S, Class B1 | 195,330 | 10,498 |
745,889 | ||
Financials 10.44% | ||
AIA Group Ltd.1 | 15,004,900 | 127,967 |
JPMorgan Chase & Co. | 853,600 | 91,284 |
Kotak Mahindra Bank Ltd.1 | 3,471,000 | 54,891 |
Prudential PLC1 | 1,906,884 | 49,026 |
Société Générale1 | 923,000 | 47,588 |
MarketAxess Holdings Inc. | 188,000 | 37,929 |
Indiabulls Housing Finance Ltd.1 | 1,515,000 | 28,371 |
AXA SA1 | 901,700 | 26,725 |
ORIX Corp.1 | 1,502,000 | 25,396 |
SunTrust Banks, Inc. | 317,000 | 20,475 |
Banco Santander, SA1 | 2,946,020 | 19,318 |
Berkshire Hathaway Inc., Class A2 | 54 | 16,070 |
BlackRock, Inc. | 30,600 | 15,720 |
CME Group Inc., Class A | 97,200 | 14,196 |
SVB Financial Group2 | 53,000 | 12,390 |
Bankinter, SA1 | 1,281,000 | 12,125 |
Sberbank of Russia PJSC (ADR)1 | 645,500 | 10,926 |
Itaú Unibanco Holding SA, preferred nominative | 825,000 | 10,590 |
American Funds Insurance Series — Global Growth Fund — Page 2 of 171
Common stocks Financials (continued) | Shares | Value (000) |
Svenska Handelsbanken AB, Class A1 | 760,000 | $10,374 |
GT Capital Holdings, Inc.1 | 399,000 | 10,328 |
Credit Suisse Group AG1 | 516,522 | 9,194 |
650,883 | ||
Consumer staples 7.46% | ||
British American Tobacco PLC1 | 2,002,000 | 135,116 |
Nestlé SA1 | 739,650 | 63,560 |
Altria Group, Inc. | 770,000 | 54,986 |
Coca-Cola European Partners PLC | 832,000 | 33,155 |
Pernod Ricard SA1 | 200,000 | 31,658 |
Philip Morris International Inc. | 290,000 | 30,638 |
Uni-Charm Corp.1 | 1,157,000 | 30,076 |
Shoprite Holdings Ltd.1 | 1,432,000 | 25,600 |
Coca-Cola FEMSA, SAB de CV, Series L | 1,965,000 | 13,686 |
Alimentation Couche-Tard Inc., Class B | 256,500 | 13,384 |
Lenta Ltd. (GDR)1,2,3 | 1,211,900 | 7,051 |
Lenta Ltd. (GDR)1,2 | 974,100 | 5,668 |
Coca-Cola HBC AG (CDI)1 | 336,700 | 10,952 |
Associated British Foods PLC1 | 260,000 | 9,884 |
465,414 | ||
Industrials 6.17% | ||
Airbus SE, non-registered shares1 | 1,109,500 | 110,180 |
KONE Oyj, Class B1 | 880,000 | 47,222 |
Caterpillar Inc. | 287,000 | 45,226 |
ASSA ABLOY AB, Class B1 | 1,677,000 | 34,798 |
Ryanair Holdings PLC (ADR)2 | 307,000 | 31,986 |
Geberit AG1 | 65,000 | 28,601 |
IDEX Corp. | 122,400 | 16,153 |
Aalberts Industries NV, non-registered shares1 | 315,000 | 15,994 |
Boeing Co. | 51,300 | 15,129 |
Johnson Controls International PLC | 315,250 | 12,014 |
Ingersoll-Rand PLC | 112,700 | 10,052 |
Rockwool International A/S, Class B1 | 33,293 | 9,436 |
NIBE Industrier AB, Class B1 | 817,914 | 7,835 |
384,626 | ||
Materials 2.24% | ||
Sherwin-Williams Co. | 116,000 | 47,565 |
Glencore PLC1 | 6,150,000 | 32,357 |
Praxair, Inc. | 137,400 | 21,253 |
Outokumpu Oy, Class A (Finland)1 | 1,974,000 | 18,321 |
DowDuPont Inc. | 146,616 | 10,442 |
Air Liquide SA, bonus shares1 | 79,200 | 9,961 |
139,899 | ||
Energy 2.03% | ||
Reliance Industries Ltd.1 | 2,090,000 | 30,152 |
Gazprom PJSC (ADR)1 | 4,173,000 | 18,400 |
LUKOIL Oil Co. PJSC (ADR)1 | 306,700 | 17,545 |
Enbridge Inc. (CAD denominated) | 407,638 | 15,942 |
Seven Generations Energy Ltd., Class A2 | 798,000 | 11,288 |
Concho Resources Inc.2 | 65,000 | 9,764 |
Schlumberger Ltd. | 132,000 | 8,895 |
American Funds Insurance Series — Global Growth Fund — Page 3 of 171
Common stocks Energy (continued) | Shares | Value (000) |
Cimarex Energy Co. | 67,000 | $8,175 |
Royal Dutch Shell PLC, Class B1 | 190,000 | 6,408 |
126,569 | ||
Telecommunication services 1.12% | ||
SoftBank Group Corp.1 | 776,000 | 61,307 |
BT Group PLC1 | 2,250,000 | 8,238 |
69,545 | ||
Utilities 0.06% | ||
China Gas Holdings Ltd.1 | 1,432,000 | 3,950 |
Miscellaneous 4.96% | ||
Other common stocks in initial period of acquisition | 309,116 | |
Total common stocks (cost: $3,842,087,000) | 6,028,187 | |
Bonds, notes & other debt instruments 0.03% U.S. Treasury bonds & notes 0.03% U.S. Treasury 0.03% | Principal amount (000) | |
U.S. Treasury 0.75% 2018 | $2,000 | 1,998 |
Total bonds, notes & other debt instruments (cost: $1,998,000) | 1,998 | |
Short-term securities 3.57% | ||
Federal Home Loan Bank 1.14%–1.31% due 1/17/2018–3/28/2018 | 97,500 | 97,371 |
Liberty Street Funding Corp. 1.78% due 3/21/20183 | 25,000 | 24,902 |
Mitsubishi UFJ Trust and Banking Corp. 1.52% due 1/19/20183 | 19,000 | 18,983 |
Prudential Funding, LLC 1.35% due 1/12/2018 | 39,500 | 39,478 |
Royal Bank of Canada 1.53% due 1/16/2018 | 11,700 | 11,691 |
United Parcel Service Inc. 1.62% due 3/19/20183 | 30,000 | 29,899 |
Total short-term securities (cost: $222,335,000) | 222,324 | |
Total investment securities 100.28% (cost: $4,066,420,000) | 6,252,509 | |
Other assets less liabilities (0.28)% | (17,433) | |
Net assets 100.00% | $6,235,076 |
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.
Forward currency contracts
Contract amount | Counterparty | Settlement date | Unrealized appreciation at 12/31/2017 (000) | |
Purchases (000) | Sales (000) | |||
USD5,180 | JPY581,294 | Bank of America, N.A. | 1/22/2018 | $15 |
American Funds Insurance Series — Global Growth Fund — Page 4 of 171
1 | 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 $3,140,563,000, which represented 50.37% of the net assets of the fund. This amount includes $3,130,602,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Security did not produce income during the last 12 months. |
3 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $80,835,000, which represented 1.30% of the net assets of the fund. |
Key to abbreviations and symbol |
ADR = American Depositary Receipts |
CAD = Canadian dollars |
CDI = CREST Depository Interest |
GDR = Global Depositary Receipts |
JPY = Japanese yen |
USD/$ = U.S. dollars |
American Funds Insurance Series — Global Growth Fund — Page 5 of 171
Global Small Capitalization Fund
Investment portfolio
December 31, 2017
Common stocks 93.34% Consumer discretionary 20.64% | Shares | Value (000) |
Hilton Grand Vacations Inc.1 | 1,219,200 | $51,145 |
Melco International Development Ltd.2 | 17,379,000 | 50,976 |
GVC Holdings PLC2 | 4,048,748 | 50,555 |
Five Below, Inc.1 | 684,000 | 45,363 |
Cedar Fair, LP | 531,000 | 34,510 |
Domino’s Pizza, Inc. | 181,100 | 34,221 |
Entertainment One Ltd.2 | 7,563,697 | 33,123 |
Hostelworld Group PLC2,3 | 6,212,000 | 32,175 |
Tele Columbus AG1,2 | 2,743,000 | 30,384 |
Caesars Entertainment Corp.1 | 2,375,836 | 30,054 |
Ladbrokes Coral Group PLC2 | 11,120,100 | 27,199 |
Ted Baker PLC2 | 686,500 | 25,026 |
Belmond Ltd., Class A1 | 1,624,000 | 19,894 |
Countryside Properties PLC2 | 4,005,566 | 19,084 |
Kyoritsu Maintenance Co., Ltd.2 | 466,800 | 18,858 |
AA PLC2 | 7,894,804 | 18,109 |
Vail Resorts, Inc. | 81,940 | 17,410 |
National Vision Holdings, Inc.1 | 397,500 | 16,143 |
Taiwan Paiho Ltd.2 | 3,921,000 | 15,940 |
Nifco Inc.2 | 233,000 | 15,907 |
zooplus AG, non-registered shares1,2 | 85,600 | 15,399 |
Lions Gate Entertainment Corp., Class A1 | 330,291 | 11,167 |
Lions Gate Entertainment Corp., Class B1 | 123,414 | 3,917 |
Inchcape PLC2 | 1,204,600 | 12,700 |
Grand Canyon Education, Inc.1 | 141,000 | 12,624 |
Paddy Power Betfair PLC2 | 106,393 | 12,622 |
BCA Marketplace PLC2 | 4,514,000 | 12,437 |
Melco Resorts & Entertainment Ltd. (ADR) | 425,000 | 12,342 |
Hyundai Wia Corp.2 | 193,748 | 11,768 |
ServiceMaster Global Holdings, Inc.1 | 218,000 | 11,177 |
Texas Roadhouse, Inc. | 210,000 | 11,063 |
Stella International Holdings Ltd.2 | 7,008,500 | 10,552 |
Shop Apotheke Europe NV1,2 | 182,357 | 10,140 |
Minor International PCL, nonvoting depositary receipt2 | 7,230,000 | 9,692 |
Cuckoo Electronics Co., Ltd.2,4 | 62,400 | 9,428 |
ElringKlinger AG2 | 421,200 | 9,420 |
Elang Mahkota Teknologi Tbk PT2 | 13,386,100 | 9,372 |
Brunello Cucinelli SpA2 | 280,865 | 9,101 |
Aritzia Inc., subordinate voting shares1 | 837,700 | 8,457 |
Cie. Plastic Omnium SA2 | 178,600 | 8,119 |
POLYTEC Holding AG, non-registered shares2 | 364,350 | 8,119 |
Zhongsheng Group Holdings Ltd.2 | 3,419,000 | 7,770 |
Chow Sang Sang Holdings International Ltd.2 | 2,942,000 | 7,100 |
Greggs PLC2 | 375,200 | 7,054 |
Greene King PLC2 | 911,618 | 6,828 |
Hathway Cable and Datacom Ltd.1,2 | 9,780,000 | 6,106 |
American Funds Insurance Series — Global Small Capitalization Fund — Page 6 of 171
Common stocks Consumer discretionary (continued) | Shares | Value (000) |
L’Occitane International SA2 | 2,859,671 | $5,239 |
Talwalkars Better Value Fitness Ltd.2 | 1,020,000 | 5,079 |
Toll Brothers, Inc. | 105,000 | 5,042 |
Wowprime Corp.2 | 1,104,000 | 4,978 |
DineEquity, Inc. | 84,920 | 4,308 |
PT Surya Citra Media Tbk2 | 21,510,000 | 3,923 |
Daily Mail and General Trust PLC, Class A, nonvoting2 | 485,000 | 3,898 |
DO & CO AG, non-registered shares2 | 68,190 | 3,862 |
I.T Limited2 | 8,666,000 | 3,693 |
ASOS PLC1,2 | 40,600 | 3,679 |
Eclat Textile Co., Ltd.2 | 305,120 | 3,053 |
Mulberry Group PLC2 | 191,000 | 2,721 |
China Zenix Auto International Ltd. (ADR)1 | 428,500 | 519 |
890,544 | ||
Health care 16.56% | ||
GW Pharmaceuticals PLC (ADR)1 | 746,460 | 98,540 |
Insulet Corp.1 | 1,145,900 | 79,067 |
Illumina, Inc.1 | 230,200 | 50,296 |
Integra LifeSciences Holdings Corp.1 | 1,025,423 | 49,077 |
Bluebird Bio, Inc.1 | 267,765 | 47,689 |
iRhythm Technologies, Inc.1 | 807,980 | 45,287 |
China Biologic Products Holdings, Inc.1 | 503,000 | 39,621 |
athenahealth, Inc.1 | 236,000 | 31,397 |
WuXi Biologics (Cayman) Inc.1,2 | 4,926,300 | 27,591 |
Osstem Implant Co., Ltd.1,2 | 412,245 | 22,740 |
NuVasive, Inc.1 | 387,836 | 22,685 |
Evolent Health, Inc., Class A1 | 1,436,000 | 17,663 |
CryoLife, Inc.1 | 898,000 | 17,197 |
Nakanishi Inc.2 | 323,000 | 16,846 |
BioMarin Pharmaceutical Inc.1 | 172,000 | 15,337 |
PRA Health Sciences, Inc.1 | 160,546 | 14,621 |
CONMED Corp. | 264,714 | 13,492 |
Hikma Pharmaceuticals PLC2 | 869,000 | 13,298 |
Wright Medical Group NV1 | 557,500 | 12,377 |
Hypermarcas SA, ordinary nominative | 1,130,000 | 12,264 |
Divi’s Laboratories Ltd.2 | 584,864 | 10,074 |
Sawai Pharmaceutical Co., Ltd.2 | 215,400 | 9,622 |
Ultragenyx Pharmaceutical Inc.1 | 203,374 | 9,432 |
Capio AB2 | 1,540,214 | 8,251 |
Almost Family, Inc.1 | 137,000 | 7,583 |
Genomma Lab Internacional, SAB de CV, Series B1 | 5,400,000 | 5,635 |
NuCana PLC (ADR)1 | 416,620 | 4,212 |
Teleflex Inc. | 14,810 | 3,685 |
NantKwest, Inc.1 | 773,700 | 3,474 |
Hologic, Inc.1 | 69,700 | 2,980 |
Mitra Keluarga Karyasehat Tbk PT2 | 17,500,000 | 2,338 |
714,371 | ||
Information technology 16.55% | ||
Qorvo, Inc.1 | 1,118,753 | 74,509 |
WIN Semiconductors Corp.2 | 6,538,400 | 61,796 |
Mellanox Technologies, Ltd.1 | 653,000 | 42,249 |
Topcon Corp.2 | 1,707,510 | 36,888 |
Paycom Software, Inc.1 | 428,885 | 34,452 |
American Funds Insurance Series — Global Small Capitalization Fund — Page 7 of 171
Common stocks Information technology (continued) | Shares | Value (000) |
AAC Technologies Holdings Inc.2 | 1,786,561 | $31,773 |
VTech Holdings Ltd.2 | 2,189,000 | 28,687 |
ZPG PLC2 | 6,260,620 | 27,928 |
Hamamatsu Photonics KK2 | 785,753 | 26,323 |
Mitel Networks Corp.1 | 2,748,000 | 22,616 |
II-VI, Inc.1 | 456,000 | 21,409 |
Moneysupermarket.com Group PLC2 | 4,295,000 | 20,631 |
ANGI Homeservices Inc., Class A1 | 1,911,913 | 19,999 |
Lumentum Holdings Inc.1 | 364,500 | 17,824 |
Zebra Technologies Corp., Class A1 | 170,000 | 17,646 |
MACOM Technology Solutions Holdings, Inc.1 | 517,000 | 16,823 |
Cognex Corp. | 250,000 | 15,290 |
Cypress Semiconductor Corp. | 1,000,000 | 15,240 |
Inphi Corp.1 | 405,000 | 14,823 |
X-Fab Silicon Foundries SE1,2 | 1,260,947 | 14,471 |
Cray Inc.1 | 596,231 | 14,429 |
RIB Software SE2 | 477,898 | 14,187 |
Silicon Laboratories Inc.1 | 152,000 | 13,422 |
Viavi Solutions Inc.1 | 1,310,600 | 11,455 |
Integrated Device Technology, Inc.1 | 366,000 | 10,881 |
Vanguard International Semiconductor Corp.2 | 4,700,000 | 10,398 |
Sunny Optical Technology (Group) Co., Ltd.2 | 800,000 | 10,134 |
j2 Global, Inc. | 133,000 | 9,979 |
Endurance International Group Holdings, Inc.1 | 1,082,000 | 9,089 |
YY Inc., Class A (ADR)1 | 76,000 | 8,593 |
Finisar Corp.1 | 331,300 | 6,742 |
Kakaku.com, Inc.2 | 385,000 | 6,511 |
Gridsum Holding Inc., Class B (ADR)1 | 605,000 | 5,536 |
AGTech Holdings Ltd.1,2 | 30,000,000 | 4,646 |
Acacia Communications, Inc.1 | 92,000 | 3,333 |
Ribbon Communications Inc.1 | 410,584 | 3,174 |
Infinera Corp.1 | 437,000 | 2,766 |
istyle Inc.2 | 317,834 | 2,483 |
Tobii AB1,2 | 569,811 | 2,459 |
Xurpas Inc.2 | 13,926,000 | 1,552 |
Alten SA, non-registered shares2 | 13,253 | 1,106 |
714,252 | ||
Industrials 10.33% | ||
International Container Terminal Services, Inc.2 | 20,180,000 | 42,610 |
Nabtesco Corp.2 | 728,500 | 27,943 |
Welbilt Inc.1 | 1,050,000 | 24,685 |
Johnson Electric Holdings Ltd.2 | 5,162,000 | 21,636 |
Curtiss-Wright Corp. | 167,684 | 20,432 |
Nihon M&A Center Inc.2 | 418,696 | 19,957 |
Tsubaki Nakashima Co., Ltd.2 | 828,361 | 19,744 |
ABM Industries Inc. | 522,800 | 19,720 |
Grafton Group PLC, units2 | 1,557,000 | 16,846 |
Air Lease Corp., Class A | 350,000 | 16,832 |
NORMA Group SE, non-registered shares2 | 215,718 | 14,404 |
AKR Corporindo Tbk PT2 | 30,527,800 | 14,272 |
BWX Technologies, Inc. | 235,665 | 14,255 |
J. Kumar Infraprojects Ltd.2 | 2,901,000 | 13,579 |
Amara Raja Batteries Ltd.2 | 969,766 | 12,763 |
Allegiant Travel Co. | 81,600 | 12,628 |
American Funds Insurance Series — Global Small Capitalization Fund — Page 8 of 171
Common stocks Industrials (continued) | Shares | Value (000) |
Fujitec Co., Ltd.2 | 815,000 | $11,760 |
Boyd Group Income Fund | 131,200 | 10,530 |
Generac Holdings Inc.1 | 210,000 | 10,399 |
Bossard Holding AG2 | 44,100 | 10,381 |
Harmonic Drive Systems Inc.2 | 176,400 | 10,294 |
Carborundum Universal Ltd.2 | 1,740,000 | 10,252 |
Clean Harbors, Inc.1 | 159,000 | 8,618 |
Havells India Ltd.2 | 977,874 | 8,589 |
Geberit AG2 | 16,500 | 7,260 |
Unique Engineering and Construction PCL2 | 13,885,800 | 6,945 |
PayPoint PLC2 | 520,000 | 6,408 |
va-Q-tec AG1,2 | 262,000 | 5,763 |
Europcar Groupe SA2 | 464,040 | 5,695 |
Landstar System, Inc. | 46,600 | 4,851 |
KEYW Holding Corp.1 | 750,000 | 4,403 |
Matson, Inc. | 139,000 | 4,148 |
Alliance Global Group, Inc.1,2 | 10,998,000 | 3,520 |
Talgo SA, non-registered shares2 | 583,000 | 2,978 |
Gujarat Pipavav Port Ltd.2 | 345,384 | 740 |
445,840 | ||
Financials 9.38% | ||
Kotak Mahindra Bank Ltd.2 | 3,282,732 | 51,914 |
Essent Group Ltd.1 | 1,058,841 | 45,975 |
Texas Capital Bancshares, Inc.1 | 496,623 | 44,150 |
Webster Financial Corp. | 553,000 | 31,056 |
EFG International AG2 | 2,231,703 | 23,597 |
Avanza Bank Holding AB2 | 560,129 | 23,492 |
Close Brothers Group PLC2 | 905,303 | 17,694 |
Trupanion, Inc.1 | 549,000 | 16,069 |
NMI Holdings, Inc.1 | 928,075 | 15,777 |
First Hawaiian, Inc. | 507,800 | 14,818 |
City Union Bank Ltd.2 | 5,185,775 | 14,591 |
Bharat Financial Inclusion Ltd.1,2 | 914,511 | 14,328 |
Deutsche Pfandbriefbank AG, non-registered shares2 | 869,110 | 13,898 |
Eagle Bancorp, Inc.1 | 236,000 | 13,653 |
IRB Brasil Resseguros SA | 1,140,600 | 11,691 |
Numis Corp. PLC2 | 2,022,302 | 9,114 |
BPER Banca SPA2 | 1,472,000 | 7,409 |
Eurobank Ergasias SA1,2 | 5,950,000 | 6,066 |
Signature Bank1 | 42,000 | 5,765 |
Bank of Hawaii Corp. | 63,100 | 5,408 |
Great Western Bancorp, Inc. | 127,500 | 5,074 |
KKR Real Estate Finance Trust Inc. REIT | 250,000 | 5,002 |
Bank of Ireland Group PLC1,2 | 469,984 | 4,023 |
National Bank of Pakistan2 | 5,270,000 | 2,319 |
Permanent TSB Group Holdings PLC1,2 | 750,000 | 2,025 |
404,908 | ||
Materials 4.09% | ||
Lundin Mining Corp. | 6,172,000 | 41,048 |
HudBay Minerals Inc. | 1,907,600 | 16,891 |
PolyOne Corp. | 350,000 | 15,225 |
Victrex PLC2 | 399,000 | 14,211 |
Sirius Minerals PLC1,2 | 44,273,655 | 14,057 |
American Funds Insurance Series — Global Small Capitalization Fund — Page 9 of 171
Common stocks Materials (continued) | Shares | Value (000) |
Century Aluminum Co.1 | 640,000 | $12,570 |
United States Steel Corp. | 345,980 | 12,175 |
Buzzi Unicem SPA2 | 429,000 | 11,578 |
CPMC Holdings Ltd.2 | 11,300,000 | 8,953 |
Mayr-Melnhof Karton AG, non-registered shares2 | 45,300 | 6,658 |
Steel Dynamics, Inc. | 148,300 | 6,396 |
Indorama Ventures PCL, foreign registered2 | 3,658,000 | 5,978 |
KOLON Industries, Inc.2 | 50,000 | 4,150 |
Arkema SA2 | 27,400 | 3,330 |
S H Kelkar and Co. Ltd.2 | 663,128 | 3,084 |
176,304 | ||
Consumer staples 3.40% | ||
COSMOS Pharmaceutical Corp.2 | 148,500 | 31,014 |
Varun Beverages Ltd.2 | 2,504,974 | 25,528 |
Treasury Wine Estates Ltd.2 | 1,834,975 | 22,824 |
Century Pacific Food, Inc.2 | 32,693,000 | 10,595 |
Philip Morris CR as2 | 10,500 | 8,162 |
Milbon Co., Ltd.2 | 226,800 | 7,615 |
Kernel Holding SA2 | 493,041 | 6,730 |
Emperador Inc.2 | 45,300,000 | 6,672 |
Morinaga & Co., Ltd.2 | 119,400 | 6,052 |
Puregold Price Club, Inc.2 | 5,958,707 | 5,960 |
Del Monte Pacific Ltd.2 | 20,169,223 | 4,136 |
Delfi Ltd.2 | 3,729,800 | 3,958 |
PriceSmart, Inc. | 44,000 | 3,788 |
Hyundai Department Store Co., Ltd.2 | 38,500 | 3,757 |
146,791 | ||
Energy 2.77% | ||
Whitecap Resources Inc. | 3,404,880 | 24,243 |
Whitecap Resources Inc.2,5 | 270,000 | 1,865 |
SM Energy Co. | 1,111,000 | 24,531 |
Kosmos Energy Ltd.1 | 1,765,000 | 12,090 |
Venture Global LNG, Inc., Series C1,2,4,5,6 | 2,760 | 10,408 |
Tullow Oil PLC1,2 | 3,314,866 | 9,237 |
Source Energy Services Ltd.1,2,5 | 770,000 | 5,346 |
Source Energy Services Ltd.1 | 320,000 | 2,314 |
Independence Contract Drilling, Inc.1 | 1,606,817 | 6,395 |
Golar LNG Ltd. | 209,900 | 6,257 |
Ophir Energy PLC1,2 | 6,652,492 | 6,063 |
RSP Permian, Inc.1 | 110,000 | 4,475 |
Carrizo Oil & Gas, Inc.1 | 162,123 | 3,450 |
Savannah Petroleum PLC1,2 | 4,124,000 | 1,573 |
Africa Oil Corp. (SEK denominated)1,2 | 678,100 | 760 |
Denbury Resources Inc.1 | 230,000 | 508 |
119,515 | ||
Real estate 2.56% | ||
WHA Corp. PCL2 | 372,370,250 | 45,697 |
MGM Growth Properties LLC REIT, Class A | 1,323,600 | 38,583 |
Inmobiliaria Colonial Socimi SA2 | 1,123,000 | 11,137 |
Mahindra Lifespace Developers Ltd.2 | 1,069,195 | 7,674 |
American Funds Insurance Series — Global Small Capitalization Fund — Page 10 of 171
Common stocks Real estate (continued) | Shares | Value (000) |
K. Wah International Holdings Ltd.2 | 8,789,639 | $4,797 |
Prologis Property Mexico, SA de CV REIT | 1,417,000 | 2,451 |
110,339 | ||
Utilities 1.74% | ||
ENN Energy Holdings Ltd.2 | 4,991,400 | 35,414 |
REN - Redes Energéticas Nacionais, SGPS, SA, non-registered shares2 | 6,201,733 | 18,423 |
EDP - Energias do Brasil SA | 2,750,000 | 11,606 |
Banpu Power PCL, foreign registered2 | 8,348,351 | 6,515 |
Energy World Corp. Ltd.1,2 | 10,883,000 | 3,160 |
75,118 | ||
Telecommunication services 0.43% | ||
Play Communications SA, non-registered shares1,2 | 795,000 | 7,721 |
Indosat Tbk PT2 | 12,616,000 | 4,462 |
Zegona Communications PLC2 | 1,980,903 | 3,719 |
TalkTalk Telecom Group PLC2 | 1,337,000 | 2,758 |
18,660 | ||
Miscellaneous 4.89% | ||
Other common stocks in initial period of acquisition | 210,986 | |
Total common stocks (cost: $3,076,327,000) | 4,027,628 | |
Rights & warrants 0.01% Real estate 0.01% | ||
WHA Corp. PCL, warrants, expire 20201 | 1,075,182 | 376 |
Total rights & warrants (cost: $0) | 376 | |
Convertible bonds 0.20% Consumer discretionary 0.20% | Principal amount (000) | |
Caesars Entertainment Corp. 5.00% 2024 | $4,469 | 8,667 |
Total convertible bonds (cost: $8,541,000) | 8,667 | |
Bonds, notes & other debt instruments 0.09% U.S. Treasury bonds & notes 0.09% U.S. Treasury 0.09% | ||
U.S. Treasury 0.875% 20187 | 4,125 | 4,110 |
Total bonds, notes & other debt instruments (cost: $4,110,000) | 4,110 |
American Funds Insurance Series — Global Small Capitalization Fund — Page 11 of 171
Short-term securities 6.36% | Principal amount (000) | Value (000) |
Bank of Montreal 1.70% due 3/15/2018 | $50,000 | $50,004 |
Federal Home Loan Bank 1.05%–1.21% due 1/2/2018–1/16/2018 | 75,100 | 75,078 |
Mizuho Bank, Ltd. 1.37%–1.38% due 1/19/2018–1/22/20185 | 49,000 | 48,953 |
U.S. Treasury Bills 1.41%–1.50% due 5/31/2018–6/28/2018 | 101,100 | 100,436 |
Total short-term securities (cost: $274,490,000) | 274,471 | |
Total investment securities 100.00% (cost: $3,363,468,000) | 4,315,252 | |
Other assets less liabilities (0.00)% | (214) | |
Net assets 100.00% | $4,315,038 |
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.
Forward currency contracts
Contract amount | Counterparty | Settlement date | Unrealized (depreciation) appreciation at 12/31/2017 (000) | |
Purchases (000) | Sales (000) | |||
USD45,066 | GBP34,000 | HSBC Bank | 1/22/2018 | $(878) |
USD15,775 | JPY1,765,175 | JPMorgan Chase | 1/23/2018 | 89 |
USD16,375 | GBP12,190 | Citibank | 2/23/2018 | (113) |
USD10,114 | INR663,163 | Citibank | 2/26/2018 | (201) |
$(1,103) |
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 $1,969,093,000, which represented 45.63% of the net assets of the fund. This amount includes $1,942,046,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
3 | Represents an affiliated company as defined under the Investment Company Act of 1940. |
4 | Value determined using significant unobservable inputs. |
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 $66,572,000, which represented 1.54% of the net assets of the fund. |
6 | Acquired through a private placement transaction exempt from registration under the Securities Act of 1933. May be subject to legal or contractual restrictions on resale. Further details on this holding appear below. |
7 | A portion of this security was pledged as collateral. The total value of pledged collateral was $677,000, which represented .02% of the net assets of the fund. |
Private placement security | Acquisition date | Cost (000) | Value (000) | Percent of net assets |
Venture Global LNG, Inc., Class C | 5/1/2015 | $8,280 | $10,408 | .24% |
Key to abbreviations and symbol | |
ADR = American Depositary Receipts | |
GBP = British pounds | |
INR = Indian rupees | |
JPY = Japanese yen | |
USD/$ = U.S. dollars |
American Funds Insurance Series — Global Small Capitalization Fund — Page 12 of 171
Growth Fund
Investment portfolio
December 31, 2017
Common stocks 93.87% Information technology 31.06% | Shares | Value (000) |
Facebook, Inc., Class A1 | 8,340,500 | $1,471,765 |
Microsoft Corp. | 11,676,000 | 998,765 |
Alphabet Inc., Class C1 | 613,000 | 641,443 |
Alphabet Inc., Class A1 | 271,500 | 285,998 |
Broadcom Ltd. | 2,838,300 | 729,159 |
ASML Holding NV (New York registered) | 2,382,000 | 414,039 |
ASML Holding NV2 | 1,199,568 | 208,111 |
Apple Inc. | 3,224,000 | 545,598 |
Taiwan Semiconductor Manufacturing Co., Ltd.2 | 41,360,000 | 317,813 |
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 2,975,392 | 117,974 |
Visa Inc., Class A | 2,955,000 | 336,929 |
Intel Corp. | 4,790,000 | 221,106 |
ServiceNow, Inc.1 | 1,583,263 | 206,442 |
Samsung Electronics Co., Ltd.2 | 56,930 | 135,256 |
Samsung Electronics Co., Ltd., nonvoting preferred2 | 11,300 | 22,028 |
Paycom Software, Inc.1 | 1,855,600 | 149,060 |
Activision Blizzard, Inc. | 2,246,300 | 142,236 |
Alibaba Group Holding Ltd. (ADR)1 | 675,000 | 116,390 |
TE Connectivity Ltd. | 1,065,000 | 101,218 |
Nintendo Co., Ltd.2 | 249,960 | 90,998 |
Hexagon AB, Class B2 | 1,788,300 | 89,437 |
Square, Inc., Class A1 | 1,985,000 | 68,820 |
Workday, Inc., Class A1 | 603,700 | 61,421 |
Amphenol Corp., Class A | 650,000 | 57,070 |
Murata Manufacturing Co., Ltd.2 | 387,000 | 51,724 |
Fiserv, Inc.1 | 332,700 | 43,627 |
PayPal Holdings, Inc.1 | 513,000 | 37,767 |
Jack Henry & Associates, Inc. | 285,000 | 33,334 |
Sabre Corp. | 1,314,300 | 26,943 |
VeriSign, Inc.1 | 185,000 | 21,171 |
Snap Inc., Class A1 | 1,179,600 | 17,234 |
7,760,876 | ||
Consumer discretionary 19.34% | ||
Amazon.com, Inc.1 | 1,364,416 | 1,595,644 |
Netflix, Inc.1 | 2,546,000 | 488,730 |
Tesla, Inc.1 | 1,506,200 | 468,955 |
Home Depot, Inc. | 2,300,000 | 435,919 |
Comcast Corp., Class A | 7,525,000 | 301,376 |
NIKE, Inc., Class B | 4,255,000 | 266,150 |
Ulta Beauty, Inc.1 | 1,120,000 | 250,499 |
Charter Communications, Inc., Class A1 | 698,680 | 234,729 |
Priceline Group Inc.1 | 131,531 | 228,567 |
Starbucks Corp. | 2,895,000 | 166,260 |
CBS Corp., Class B | 1,802,500 | 106,348 |
Newell Brands Inc. | 1,818,900 | 56,204 |
American Funds Insurance Series — Growth Fund — Page 13 of 171
Common stocks Consumer discretionary (continued) | Shares | Value (000) |
Paddy Power Betfair PLC2 | 440,000 | $52,199 |
MGM Resorts International | 1,293,500 | 43,190 |
Luxottica Group SpA2 | 689,000 | 42,223 |
Norwegian Cruise Line Holdings Ltd.1 | 670,000 | 35,678 |
Sturm, Ruger & Co., Inc. | 557,788 | 31,152 |
Domino’s Pizza, Inc. | 152,600 | 28,835 |
4,832,658 | ||
Health care 13.05% | ||
UnitedHealth Group Inc. | 3,517,500 | 775,468 |
Intuitive Surgical, Inc.1 | 940,500 | 343,226 |
Humana Inc. | 993,200 | 246,383 |
Hologic, Inc.1 | 5,413,398 | 231,423 |
Regeneron Pharmaceuticals, Inc.1 | 609,500 | 229,148 |
Centene Corp.1 | 2,243,000 | 226,274 |
Thermo Fisher Scientific Inc. | 995,000 | 188,931 |
Aetna Inc. | 1,024,600 | 184,828 |
Boston Scientific Corp.1 | 7,255,000 | 179,851 |
Illumina, Inc.1 | 775,000 | 169,330 |
Express Scripts Holding Co.1 | 1,885,000 | 140,696 |
Vertex Pharmaceuticals Inc.1 | 704,200 | 105,531 |
Celgene Corp.1 | 635,000 | 66,269 |
ResMed Inc. | 755,000 | 63,941 |
Incyte Corp.1 | 440,000 | 41,672 |
Merck & Co., Inc. | 700,000 | 39,389 |
Intercept Pharmaceuticals, Inc.1 | 325,000 | 18,986 |
ACADIA Pharmaceuticals Inc.1 | 270,000 | 8,130 |
3,259,476 | ||
Financials 9.34% | ||
Wells Fargo & Co. | 7,150,000 | 433,790 |
Goldman Sachs Group, Inc. | 922,400 | 234,991 |
JPMorgan Chase & Co. | 1,947,000 | 208,212 |
Berkshire Hathaway Inc., Class A1 | 410 | 122,016 |
Berkshire Hathaway Inc., Class B1 | 363,734 | 72,099 |
PNC Financial Services Group, Inc. | 1,083,600 | 156,353 |
BlackRock, Inc. | 289,000 | 148,462 |
Legal & General Group PLC2 | 40,158,246 | 147,823 |
Bank of America Corp. | 4,015,000 | 118,523 |
Capital One Financial Corp. | 1,111,100 | 110,643 |
Onex Corp. | 1,342,800 | 98,483 |
FCB Financial Holdings, Inc., Class A1 | 1,680,000 | 85,344 |
Fifth Third Bancorp | 2,500,000 | 75,850 |
T. Rowe Price Group, Inc. | 627,500 | 65,844 |
First Republic Bank | 755,000 | 65,413 |
Financial Engines, Inc. | 1,800,000 | 54,540 |
CME Group Inc., Class A | 350,100 | 51,132 |
Chubb Ltd. | 250,000 | 36,533 |
Webster Financial Corp. | 464,000 | 26,058 |
Morgan Stanley | 411,000 | 21,565 |
2,333,674 |
American Funds Insurance Series — Growth Fund — Page 14 of 171
Common stocks Energy 7.37% | Shares | Value (000) |
Concho Resources Inc.1 | 1,870,000 | $280,911 |
EOG Resources, Inc. | 2,402,400 | 259,243 |
Suncor Energy Inc. | 4,588,116 | 168,450 |
Noble Energy, Inc. | 5,663,000 | 165,020 |
Chevron Corp. | 1,200,000 | 150,228 |
Halliburton Co. | 2,500,000 | 122,175 |
Schlumberger Ltd. | 1,650,000 | 111,194 |
Pioneer Natural Resources Co. | 630,000 | 108,896 |
Enbridge Inc. (CAD denominated) | 1,592,622 | 62,286 |
Enbridge Inc. (CAD denominated)2,3 | 664,506 | 25,468 |
Tourmaline Oil Corp.1 | 3,427,000 | 62,106 |
Royal Dutch Shell PLC, Class B (ADR) | 760,100 | 51,907 |
Royal Dutch Shell PLC, Class A (ADR) | 70,279 | 4,689 |
Seven Generations Energy Ltd., Class A1 | 3,958,478 | 55,992 |
Weatherford International PLC1 | 12,540,839 | 52,295 |
Diamondback Energy, Inc.1 | 371,721 | 46,930 |
Murphy Oil Corp. | 1,043,200 | 32,391 |
Core Laboratories NV | 286,000 | 31,331 |
Peyto Exploration & Development Corp. | 2,344,000 | 28,027 |
Hess Corp. | 470,300 | 22,325 |
1,841,864 | ||
Industrials 6.62% | ||
Boeing Co. | 1,035,000 | 305,232 |
MTU Aero Engines AG2 | 941,034 | 168,310 |
TransDigm Group Inc. | 524,000 | 143,901 |
Fortive Corp. | 1,889,397 | 136,698 |
Norfolk Southern Corp. | 934,000 | 135,336 |
Raytheon Co. | 458,025 | 86,040 |
Grafton Group PLC, units2 | 7,866,000 | 85,105 |
Northrop Grumman Corp. | 269,000 | 82,559 |
On Assignment, Inc.1 | 1,279,500 | 82,233 |
Caterpillar Inc. | 505,000 | 79,578 |
General Dynamics Corp. | 285,000 | 57,983 |
Johnson Controls International PLC | 1,355,000 | 51,639 |
Huntington Ingalls Industries, Inc. | 217,000 | 51,147 |
Meggitt PLC2 | 6,506,647 | 42,131 |
FedEx Corp. | 168,000 | 41,923 |
AECOM1 | 1,000,000 | 37,150 |
Lockheed Martin Corp. | 110,000 | 35,315 |
Masco Corp. | 722,000 | 31,725 |
1,654,005 | ||
Consumer staples 2.26% | ||
Constellation Brands, Inc., Class A | 815,000 | 186,285 |
Kerry Group PLC, Class A2 | 1,300,000 | 145,792 |
Philip Morris International Inc. | 800,000 | 84,520 |
Costco Wholesale Corp. | 280,000 | 52,114 |
Coca-Cola Co. | 990,000 | 45,421 |
Pinnacle Foods Inc. | 515,000 | 30,627 |
Coca-Cola European Partners PLC | 470,000 | 18,729 |
563,488 |
American Funds Insurance Series — Growth Fund — Page 15 of 171
Common stocks Materials 0.88% | Shares | Value (000) |
Goldcorp Inc. | 5,095,000 | $65,063 |
DowDuPont Inc. | 903,810 | 64,369 |
Praxair, Inc. | 314,200 | 48,601 |
Sherwin-Williams Co. | 105,000 | 43,054 |
221,087 | ||
Telecommunication services 0.74% | ||
Zayo Group Holdings, Inc.1 | 3,245,000 | 119,416 |
T-Mobile US, Inc.1 | 1,017,000 | 64,590 |
184,006 | ||
Real estate 0.41% | ||
Iron Mountain Inc. REIT | 2,000,000 | 75,460 |
American Tower Corp. REIT | 190,000 | 27,107 |
102,567 | ||
Utilities 0.27% | ||
Exelon Corp. | 1,705,000 | 67,194 |
Miscellaneous 2.53% | ||
Other common stocks in initial period of acquisition | 632,462 | |
Total common stocks (cost: $13,998,793,000) | 23,453,357 | |
Convertible stocks 0.04% Consumer discretionary 0.04% | ||
Uber Technologies, Inc., Series F, convertible preferred2,4,5 | 268,677 | 9,173 |
Total convertible stocks (cost: $10,650,000) | 9,173 | |
Short-term securities 6.31% | Principal amount (000) | |
Army and Air Force Exchange Service 1.24% due 1/12/20183 | $42,000 | 41,977 |
Bank of New York Mellon Corp. 1.31% due 2/12/2018 | 50,000 | 49,904 |
Cisco Systems, Inc. 1.38%–1.60% due 2/15/2018–3/8/20183 | 137,100 | 136,743 |
Coca-Cola Co. 1.25%–1.26% due 1/29/2018–1/31/20183 | 24,600 | 24,567 |
Emerson Electric Co. 1.34% due 2/7/20183 | 14,000 | 13,977 |
Estée Lauder Companies Inc. 1.48% due 1/16/20183 | 29,000 | 28,978 |
ExxonMobil Corp. 1.31% due 1/22/2018 | 60,000 | 59,944 |
Fannie Mae 1.30% due 3/26/2018 | 43,800 | 43,657 |
Federal Home Loan Bank 1.10%–1.30% due 1/12/2018–2/28/2018 | 477,100 | 476,535 |
IBM Credit LLC 1.45% due 3/7/20183 | 9,700 | 9,672 |
John Deere Canada ULC 1.35%–1.40% due 1/22/2018–2/6/20183 | 59,700 | 59,613 |
John Deere Financial Inc. 1.32% due 1/10/20183 | 30,000 | 29,986 |
Pfizer Inc. 1.30%–1.49% due 2/20/2018–3/12/20183 | 110,000 | 109,685 |
Procter & Gamble Co. 1.20%–1.30% due 1/2/2018–2/13/20183 | 196,000 | 195,793 |
U.S. Treasury Bills 1.17%–1.56% due 2/1/2018–11/8/2018 | 253,200 | 252,016 |
American Funds Insurance Series — Growth Fund — Page 16 of 171
Short-term securities | Principal amount (000) | Value (000) |
Wal-Mart Stores, Inc. 1.21% due 1/2/20183 | $33,700 | $33,695 |
Walt Disney Co. 1.50% due 1/22/20183 | 10,000 | 9,990 |
Total short-term securities (cost: $1,576,948,000) | 1,576,732 | |
Total investment securities 100.22% (cost: $15,586,391,000) | 25,039,262 | |
Other assets less liabilities (0.22)% | (53,804) | |
Net assets 100.00% | $24,985,458 |
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.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Security did not produce income during the last 12 months. |
2 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous,“ was $1,648,959,000, which represented 6.60% of the net assets of the fund. This amount includes $1,614,318,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
3 | Acquired 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 $720,144,000, which represented 2.88% of the net assets of the fund. |
4 | Value determined using significant unobservable inputs. |
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 this holding appear below. |
Private placement security | Acquisition date | Cost (000) | Value (000) | Percent of net assets |
Uber Technologies, Inc., Series F, convertible preferred | 5/22/2015 | $10,650 | $9,173 | .04% |
Key to abbreviations |
ADR = American Depositary Receipts |
CAD = Canadian dollars |
American Funds Insurance Series — Growth Fund — Page 17 of 171
International Fund
Investment portfolio
December 31, 2017
Common stocks 90.84% Financials 17.81% | Shares | Value (000) |
AIA Group Ltd.1 | 40,078,700 | $341,804 |
HDFC Bank Ltd.1 | 8,416,569 | 248,893 |
HDFC Bank Ltd. (ADR) | 130,800 | 13,298 |
Prudential PLC1 | 5,142,265 | 132,208 |
UniCredit SpA1,2 | 6,989,092 | 130,202 |
Kotak Mahindra Bank Ltd.1 | 6,186,048 | 97,828 |
Barclays PLC1 | 34,317,708 | 93,571 |
Credit Suisse Group AG1 | 4,798,789 | 85,420 |
BNP Paribas SA1 | 1,002,776 | 74,781 |
Sberbank of Russia PJSC (ADR)1 | 4,290,850 | 72,627 |
Axis Bank Ltd.1,3,4 | 8,530,055 | 68,289 |
UBS Group AG1 | 3,307,651 | 60,775 |
State Bank of India1 | 12,103,000 | 58,631 |
Banco Santander, SA1 | 6,790,485 | 44,528 |
Hana Financial Group Inc.1 | 704,000 | 32,757 |
HSBC Holdings PLC (HKD denominated)1 | 3,157,616 | 32,257 |
Metropolitan Bank & Trust Co.1 | 12,130,000 | 24,624 |
Commerzbank AG, non-registered shares1,2 | 1,537,000 | 23,054 |
KB Financial Group Inc.1 | 320,000 | 18,920 |
Société Générale1 | 303,575 | 15,652 |
Itaú Unibanco Holding SA, preferred nominative (ADR) | 1,050,000 | 13,650 |
RSA Insurance Group PLC1 | 1,542,100 | 13,141 |
Royal Bank of Canada | 135,000 | 11,024 |
ICICI Bank Ltd.1 | 1,485,235 | 7,283 |
ICICI Bank Ltd. (ADR) | 323,062 | 3,143 |
Aditya Birla Capital Ltd.1,2 | 3,338,772 | 9,594 |
Bangkok Bank PCL, nonvoting depository receipt1 | 1,394,900 | 8,644 |
Siam Commercial Bank PCL, foreign registered1 | 314,504 | 1,446 |
1,738,044 | ||
Information technology 12.06% | ||
Samsung Electronics Co., Ltd.1 | 128,338 | 304,909 |
Tencent Holdings Ltd.1 | 4,644,687 | 240,107 |
Alibaba Group Holding Ltd. (ADR)2 | 1,361,800 | 234,815 |
ASML Holding NV1 | 628,834 | 109,095 |
Nintendo Co., Ltd.1 | 162,739 | 59,245 |
Worldpay Group PLC1 | 7,809,200 | 44,756 |
Murata Manufacturing Co., Ltd.1 | 290,500 | 38,827 |
Samsung SDI Co., Ltd.1 | 189,653 | 36,011 |
Hamamatsu Photonics KK1 | 944,400 | 31,637 |
SK hynix, Inc.1 | 421,000 | 29,726 |
Keyence Corp.1 | 50,800 | 28,365 |
AAC Technologies Holdings Inc.1 | 668,500 | 11,889 |
Infineon Technologies AG1 | 273,346 | 7,466 |
1,176,848 |
American Funds Insurance Series — International Fund — Page 18 of 171
Common stocks Consumer discretionary 11.34% | Shares | Value (000) |
Galaxy Entertainment Group Ltd.1 | 16,681,000 | $133,389 |
Techtronic Industries Co. Ltd.1 | 15,689,500 | 102,262 |
Kering SA1 | 208,638 | 98,357 |
Hyundai Motor Co.1 | 672,100 | 97,915 |
Naspers Ltd., Class N1 | 334,100 | 93,090 |
Altice NV, Class A1,2 | 7,541,269 | 78,890 |
Altice NV, Class B1,2 | 1,077,927 | 11,387 |
Sands China Ltd.1 | 13,028,000 | 67,053 |
Ctrip.com International, Ltd. (ADR)2 | 1,140,600 | 50,300 |
Sony Corp.1 | 1,075,000 | 48,288 |
Toyota Motor Corp.1 | 733,800 | 46,989 |
Melco Resorts & Entertainment Ltd. (ADR) | 1,494,400 | 43,397 |
Ryohin Keikaku Co., Ltd.1 | 129,000 | 40,165 |
Li & Fung Ltd.1 | 60,242,000 | 33,030 |
Hyundai Mobis Co., Ltd.1 | 133,600 | 32,842 |
William Hill PLC1 | 6,980,000 | 30,298 |
Paddy Power Betfair PLC1 | 226,000 | 26,811 |
ITV PLC1 | 8,011,191 | 17,836 |
Industria de Diseño Textil, SA1 | 444,000 | 15,443 |
LVMH Moët Hennessy-Louis Vuitton SE1 | 41,500 | 12,191 |
Midea Group Co., Ltd., Class A1 | 1,341,000 | 11,400 |
B&M European Value Retail SA1 | 1,543,700 | 8,803 |
Global Brands Group Holding Ltd.1,2 | 83,074,000 | 6,793 |
1,106,929 | ||
Health care 9.80% | ||
Novartis AG1 | 1,967,000 | 166,294 |
Grifols, SA, Class B, preferred nonvoting, non-registered shares1 | 3,304,730 | 75,819 |
Grifols, SA, Class A, non-registered shares1 | 881,000 | 25,761 |
Grifols, SA, Class B (ADR) | 793,690 | 18,191 |
Takeda Pharmaceutical Co. Ltd.1 | 1,704,000 | 96,475 |
Sysmex Corp.1 | 1,055,000 | 83,074 |
Fresenius SE & Co. KGaA1 | 1,040,000 | 80,975 |
Teva Pharmaceutical Industries Ltd. (ADR) | 4,217,300 | 79,918 |
Chugai Pharmaceutical Co., Ltd.1 | 1,254,500 | 64,147 |
Daiichi Sankyo Co., Ltd.1 | 2,287,800 | 59,585 |
Shire PLC1 | 1,118,250 | 58,002 |
Hikma Pharmaceuticals PLC1 | 3,044,380 | 46,586 |
Merck KGaA1 | 420,900 | 45,326 |
Fresenius Medical Care AG & Co. KGaA1 | 351,000 | 36,968 |
Essilor International SA1 | 112,800 | 15,554 |
ConvaTec Group PLC1 | 1,149,100 | 3,176 |
955,851 | ||
Industrials 9.17% | ||
Airbus SE, non-registered shares1 | 2,926,849 | 290,653 |
Komatsu Ltd.1 | 3,339,000 | 120,950 |
Rolls-Royce Holdings PLC1,2 | 10,478,900 | 119,259 |
Nidec Corp.1 | 503,200 | 70,636 |
Recruit Holdings Co., Ltd.1 | 1,965,000 | 48,803 |
SMC Corp.1 | 105,000 | 43,237 |
Airports of Thailand PCL, foreign registered1 | 20,557,000 | 42,804 |
Jardine Matheson Holdings Ltd.1 | 646,600 | 39,258 |
Ryanair Holdings PLC (ADR)2 | 308,500 | 32,143 |
International Container Terminal Services, Inc.1 | 12,890,350 | 27,218 |
American Funds Insurance Series — International Fund — Page 19 of 171
Common stocks Industrials (continued) | Shares | Value (000) |
Babcock International Group PLC1 | 1,574,000 | $14,919 |
Hyundai Heavy Industries Co., Ltd. 1,2 | 146,600 | 13,747 |
Thales1 | 105,000 | 11,299 |
BAE Systems PLC1 | 1,141,000 | 8,776 |
Alliance Global Group, Inc.1,2 | 20,000,000 | 6,402 |
Leonardo SPA1 | 355,000 | 4,221 |
894,325 | ||
Consumer staples 8.15% | ||
Pernod Ricard SA1 | 717,437 | 113,564 |
Nestlé SA1 | 1,317,700 | 113,233 |
AMOREPACIFIC Corp.1 | 349,892 | 99,376 |
British American Tobacco PLC1 | 1,401,000 | 94,554 |
Associated British Foods PLC1 | 2,250,488 | 85,555 |
Treasury Wine Estates Ltd.1 | 6,529,100 | 81,210 |
Thai Beverage PCL1 | 73,460,000 | 50,553 |
Meiji Holdings Co., Ltd.1 | 433,400 | 36,830 |
Imperial Brands PLC1 | 760,000 | 32,479 |
Philip Morris International Inc. | 240,694 | 25,429 |
LG Household & Health Care Ltd.1 | 19,000 | 21,064 |
Kao Corp.1 | 184,000 | 12,445 |
Glanbia PLC1 | 605,527 | 10,847 |
Kirin Holdings Co., Ltd.1 | 383,000 | 9,636 |
AMOREPACIFIC Group1 | 62,190 | 8,193 |
794,968 | ||
Materials 5.72% | ||
Asahi Kasei Corp.1 | 7,293,000 | 93,949 |
Nitto Denko Corp.1 | 893,000 | 79,374 |
First Quantum Minerals Ltd. | 5,407,000 | 75,750 |
Vale SA, ordinary nominative (ADR) | 6,023,339 | 73,665 |
Vale SA, ordinary nominative | 102,481 | 1,244 |
Glencore PLC1 | 11,661,000 | 61,352 |
Teck Resources Ltd., Class B | 1,730,100 | 45,241 |
Grasim Industries Ltd.1 | 2,280,575 | 41,542 |
Ambuja Cements Ltd.1 | 5,704,000 | 24,305 |
Fortescue Metals Group Ltd.1 | 5,768,500 | 21,920 |
BASF SE1 | 160,500 | 17,614 |
Akzo Nobel NV1 | 133,401 | 11,668 |
Evonik Industries AG1 | 268,010 | 10,055 |
557,679 | ||
Utilities 5.28% | ||
Power Grid Corp. of India Ltd.1 | 33,878,213 | 106,142 |
Ørsted AS1 | 1,580,324 | 86,097 |
ENN Energy Holdings Ltd.1 | 10,716,000 | 76,029 |
CK Infrastructure Holdings Ltd.1 | 7,942,000 | 68,179 |
China Gas Holdings Ltd.1 | 22,790,000 | 62,868 |
EDP - Energias de Portugal, SA1 | 14,824,615 | 51,314 |
Engie SA1 | 1,798,515 | 30,901 |
SSE PLC1 | 1,270,916 | 22,641 |
China Resources Gas Group Ltd.1 | 3,096,000 | 11,186 |
515,357 |
American Funds Insurance Series — International Fund — Page 20 of 171
Common stocks Energy 4.71% | Shares | Value (000) |
Royal Dutch Shell PLC, Class B1 | 3,359,624 | $113,310 |
Royal Dutch Shell PLC, Class A1 | 2,219,608 | 74,305 |
Suncor Energy Inc. | 1,433,000 | 52,612 |
Oil Search Ltd.1 | 8,643,000 | 52,578 |
TOTAL SA1 | 763,963 | 42,152 |
Petróleo Brasileiro SA (Petrobras), preferred nominative (ADR)2 | 4,085,000 | 40,155 |
Canadian Natural Resources, Ltd. | 943,000 | 33,699 |
Enbridge Inc. (CAD denominated) | 440,444 | 17,225 |
Enbridge Inc. (CAD denominated)1,4 | 160,859 | 6,165 |
BP PLC1 | 2,728,761 | 19,245 |
Tullow Oil PLC1,2 | 2,953,795 | 8,231 |
459,677 | ||
Telecommunication services 2.50% | ||
Nippon Telegraph and Telephone Corp.1 | 2,323,000 | 109,310 |
SoftBank Group Corp.1 | 911,900 | 72,043 |
BT Group PLC1 | 6,873,500 | 25,167 |
Bharti Airtel Ltd.1 | 2,530,000 | 20,937 |
TalkTalk Telecom Group PLC1 | 4,279,000 | 8,828 |
Intouch Holdings PCL, foreign registered1 | 4,631,000 | 7,984 |
244,269 | ||
Real estate 1.95% | ||
CK Asset Holdings Ltd.1 | 12,918,528 | 112,920 |
Ayala Land, Inc.1 | 53,650,700 | 47,822 |
Sun Hung Kai Properties Ltd.1 | 1,798,666 | 29,962 |
190,704 | ||
Miscellaneous 2.35% | ||
Other common stocks in initial period of acquisition | 229,314 | |
Total common stocks (cost: $6,662,362,000) | 8,863,965 | |
Rights & warrants 0.07% Miscellaneous 0.07% | ||
Other rights & warrants in initial period of acquisition | 6,390 | |
Total rights & warrants (cost: $5,434,000) | 6,390 | |
Bonds, notes & other debt instruments 0.73% Corporate bonds & notes 0.40% Materials 0.39% | Principal amount (000) | |
First Quantum Minerals Ltd. 7.00% 20214 | $3,725 | 3,874 |
First Quantum Minerals Ltd. 7.25% 20224 | 25,720 | 27,091 |
Vale SA 6.875% 2036 | 955 | 1,175 |
Vale SA 6.875% 2039 | 4,685 | 5,768 |
Vale SA 5.625% 2042 | 65 | 71 |
37,979 | ||
Energy 0.01% | ||
Genel Energy Finance 2 Limited 10.00% 20224,5 | 996 | 991 |
Total corporate bonds & notes | 38,970 |
American Funds Insurance Series — International Fund — Page 21 of 171
Bonds, notes & other debt instruments U.S. Treasury bonds & notes 0.20% U.S. Treasury 0.20% | Principal amount (000) | Value (000) |
U.S. Treasury 0.75% 20186 | $20,000 | $19,983 |
Total U.S. Treasury bonds & notes | 19,983 | |
Bonds & notes of governments & government agencies outside the U.S. 0.13% | ||
Brazil (Federative Republic of) 0% 2021 | BRL42,802 | 9,448 |
Brazil (Federative Republic of) 10.00% 2027 | 8,345 | 2,484 |
Brazil (Federative Republic of) Global 4.875% 2021 | $520 | 553 |
12,485 | ||
Total bonds, notes & other debt instruments (cost: $60,483,000) | 71,438 | |
Short-term securities 8.34% | ||
American Honda Finance Corp. 1.53% due 2/22/2018 | 35,000 | 34,920 |
Bank of Montreal 1.33% due 1/11/2018 | 30,000 | 29,983 |
BMW U.S. Capital LLC 1.52%–1.56% due 1/10/2018–2/20/20184 | 60,000 | 59,935 |
BNP Paribas Finance Inc. 1.72% due 2/22/20184 | 50,000 | 49,875 |
Caisse d’Amortissement de la Dette Sociale 1.35% due 1/4/20184 | 30,000 | 29,993 |
Canadian Imperial Holdings Inc. 1.52% due 3/8/2018 | 20,000 | 19,940 |
Commonwealth Bank of Australia 1.64% due 2/27/20184 | 50,000 | 49,863 |
DBS Bank Ltd. 1.37% due 1/16/20184 | 35,000 | 34,973 |
Fairway Finance Corp. 1.33% due 1/8/20184 | 25,000 | 24,990 |
Federal Home Loan Bank 1.19%–1.29% due 1/9/2018–2/9/2018 | 170,000 | 169,813 |
General Electric Co. 1.42% due 1/2/2018 | 6,850 | 6,849 |
John Deere Canada ULC 1.30% due 1/3/20184 | 33,200 | 33,193 |
Kells Funding, LLC 1.54% due 2/26/20184 | 24,000 | 23,935 |
KfW 1.29% due 1/4/20184 | 30,000 | 29,993 |
Mizuho Bank, Ltd. 1.36% due 1/17/20184 | 50,000 | 49,959 |
Royal Bank of Canada 1.45% due 2/6/2018 | 15,000 | 14,975 |
Toronto-Dominion Bank 1.45% due 3/16/20184 | 71,200 | 70,941 |
Total Capital Canada Ltd. 1.58% due 1/22/20184 | 30,000 | 29,970 |
U.S. Treasury Bills 1.42% due 6/7/2018 | 40,000 | 39,744 |
Westpac Banking Corp. 1.66% due 2/21/20184 | 10,000 | 9,976 |
Total short-term securities (cost: $813,936,000) | 813,820 | |
Total investment securities 99.98% (cost: $7,542,215,000) | 9,755,613 | |
Other assets less liabilities 0.02% | 2,209 | |
Net assets 100.00% | $9,757,822 |
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.
Forward currency contracts
Contract amount | Counterparty | Settlement date | Unrealized depreciation at 12/31/2017 (000) | |
Purchases (000) | Sales (000) | |||
USD26,911 | INR1,744,071 | Bank of America, N.A. | 1/16/2018 | $(355) |
American Funds Insurance Series — International Fund — Page 22 of 171
1 | 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 $7,999,131,000, which represented 81.98% of the net assets of the fund. This amount includes $7,669,394,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Security did not produce income during the last 12 months. |
3 | Acquired through a private placement transaction exempt from registration under the Securities Act of 1933. May be subject to legal or contractual restrictions on resale. Further details on this holding appear below. |
4 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $604,006,000, which represented 6.19% of the net assets of the fund. |
5 | Step bond; coupon rate will increase at a later date. |
6 | A portion of this security was pledged as collateral. The total value of pledged collateral was $230,000, which represented less than .01% of the net assets of the fund. |
Private placement security | Acquisition dates | Cost (000) | Value (000) | Percent of net assets |
Axis Bank Ltd. | 11/14/2017 - 12/18/2017 | $60,701 | $68,289 | .70% |
Key to abbreviations and symbol |
ADR = American Depositary Receipts |
BRL = Brazilian reais |
CAD = Canadian dollars |
HKD = Hong Kong dollars |
INR = Indian rupees |
USD/$ = U.S. dollars |
American Funds Insurance Series — International Fund — Page 23 of 171
New World Fund®
Investment portfolio
December 31, 2017
Common stocks 91.02% Information technology 25.59% | Shares | Value (000) |
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 9,887,000 | $75,972 |
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 700,000 | 27,755 |
United Microelectronics Corp.1 | 207,154,634 | 98,512 |
Alphabet Inc., Class C2 | 73,700 | 77,120 |
Alphabet Inc., Class A2 | 16,900 | 17,802 |
Murata Manufacturing Co., Ltd.1 | 584,000 | 78,054 |
Baidu, Inc., Class A (ADR)2 | 332,600 | 77,898 |
Samsung Electronics Co., Ltd.1 | 18,500 | 43,953 |
Samsung Electronics Co., Ltd., nonvoting preferred1 | 7,750 | 15,108 |
Intel Corp. | 1,279,460 | 59,060 |
Alibaba Group Holding Ltd. (ADR)2 | 336,537 | 58,029 |
Broadcom Ltd. | 159,750 | 41,040 |
Microsoft Corp. | 369,000 | 31,564 |
Renesas Electronics Corp.1,2 | 2,461,800 | 28,496 |
AAC Technologies Holdings Inc.1 | 1,316,563 | 23,415 |
TravelSky Technology Ltd., Class H1 | 7,580,456 | 22,717 |
MasterCard Inc., Class A | 123,500 | 18,693 |
TEMENOS Group AG (Switzerland)1 | 141,500 | 18,108 |
Applied Materials, Inc. | 350,000 | 17,892 |
Facebook, Inc., Class A2 | 76,200 | 13,446 |
Tencent Holdings Ltd.1 | 207,300 | 10,716 |
Halma PLC1 | 527,600 | 8,954 |
ASML Holding NV1 | 48,500 | 8,414 |
Largan Precision Co., Ltd.1 | 48,000 | 6,464 |
Amadeus IT Group SA, Class A, non-registered shares1 | 85,000 | 6,118 |
Yandex NV, Class A2 | 180,000 | 5,895 |
EPAM Systems, Inc.2 | 40,500 | 4,351 |
Apple Inc. | 21,000 | 3,554 |
Hexagon AB, Class B1 | 59,840 | 2,993 |
VeriSign, Inc.2 | 18,000 | 2,060 |
904,153 | ||
Financials 11.18% | ||
HDFC Bank Ltd.1 | 1,964,100 | 58,082 |
HDFC Bank Ltd. (ADR) | 208,400 | 21,188 |
Grupo Financiero Galicia SA, Class B (ADR) | 1,123,355 | 73,973 |
BM&FBOVESPA SA - Bolsa de Valores, Mercadorias e Futuros, ordinary nominative | 7,928,300 | 54,447 |
AIA Group Ltd.1 | 4,611,600 | 39,329 |
Sberbank of Russia PJSC (ADR)1 | 1,150,000 | 19,465 |
Sberbank of Russia PJSC (ADR) | 682,500 | 11,623 |
Industrial and Commercial Bank of China Ltd., Class H1 | 27,600,000 | 22,133 |
UniCredit SpA1,2 | 1,120,800 | 20,880 |
Société Générale1 | 306,000 | 15,777 |
Capitec Bank Holdings Ltd.1 | 164,876 | 14,597 |
Moscow Exchange MICEX-RTS PJSC1 | 5,880,000 | 11,115 |
Kotak Mahindra Bank Ltd.1 | 670,000 | 10,596 |
American Funds Insurance Series — New World Fund — Page 24 of 171
Common stocks Financials (continued) | Shares | Value (000) |
Housing Development Finance Corp. Ltd.1 | 350,000 | $9,367 |
Prudential PLC1 | 249,520 | 6,415 |
Bank Central Asia Tbk PT1 | 3,660,000 | 5,900 |
China Construction Bank Corp., Class H1 | 535 | — |
394,887 | ||
Consumer discretionary 9.02% | ||
Maruti Suzuki India Ltd.1 | 244,640 | 37,232 |
Kroton Educacional SA, ordinary nominative | 6,457,000 | 35,817 |
Sony Corp.1 | 700,000 | 31,443 |
Naspers Ltd., Class N1 | 111,519 | 31,073 |
MakeMyTrip Ltd., non-registered shares2 | 871,500 | 26,014 |
Starbucks Corp. | 380,000 | 21,823 |
Ctrip.com International, Ltd. (ADR)2 | 380,068 | 16,761 |
NIKE, Inc., Class B | 236,000 | 14,762 |
Domino’s Pizza, Inc. | 60,100 | 11,357 |
TVS Motor Co Ltd.1 | 910,648 | 10,982 |
Ryohin Keikaku Co., Ltd.1 | 35,000 | 10,897 |
Suzuki Motor Corp.1 | 145,000 | 8,398 |
Priceline Group Inc.2 | 3,800 | 6,603 |
Motherson Sumi Systems Ltd.1 | 1,068,041 | 6,348 |
Lojas Renner SA, ordinary nominative | 547,500 | 5,858 |
Samsonite International SA1 | 1,272,000 | 5,843 |
Gree Electric Appliances, Inc. of Zhuhai, Class A1 | 815,955 | 5,468 |
Peugeot SA1 | 268,272 | 5,450 |
MGM China Holdings, Ltd.1 | 1,727,400 | 5,225 |
Twenty-First Century Fox, Inc., Class A | 136,000 | 4,696 |
Steinhoff International Holdings NV1 | 12,242,887 | 4,598 |
Accor SA1 | 85,000 | 4,381 |
MGM Resorts International | 117,000 | 3,907 |
Wynn Macau, Ltd.1 | 1,200,000 | 3,781 |
318,717 | ||
Energy 8.62% | ||
Reliance Industries Ltd.1 | 13,230,790 | 190,875 |
Royal Dutch Shell PLC, Class B1 | 1,050,000 | 35,413 |
Royal Dutch Shell PLC, Class A1 | 21,628 | 724 |
LUKOIL Oil Co. PJSC (ADR)1 | 303,000 | 17,333 |
Petróleo Brasileiro SA (Petrobras), ordinary nominative (ADR)2 | 1,641,674 | 16,893 |
Oil Search Ltd.1 | 2,529,200 | 15,386 |
Noble Energy, Inc. | 480,000 | 13,987 |
Hess Corp. | 293,000 | 13,909 |
304,520 | ||
Consumer staples 8.07% | ||
British American Tobacco PLC1 | 1,494,000 | 100,831 |
CP ALL PCL1 | 17,121,500 | 40,421 |
Nestlé SA1 | 312,196 | 26,828 |
Lenta Ltd. (GDR)1,2 | 4,126,200 | 24,008 |
Lenta Ltd. (GDR)1,2,3 | 244,500 | 1,423 |
Foshan Haitian Flavouring and Food Co. Ltd., Class A1 | 2,250,000 | 18,584 |
Lion Corp.1 | 965,000 | 18,217 |
Philip Morris International Inc. | 150,000 | 15,847 |
GRUMA, SAB de CV, Series B | 913,399 | 11,581 |
Uni-Charm Corp.1 | 294,000 | 7,642 |
American Funds Insurance Series — New World Fund — Page 25 of 171
Common stocks Consumer staples (continued) | Shares | Value (000) |
Fomento Económico Mexicano, SAB de CV | 670,000 | $6,302 |
Pernod Ricard SA1 | 32,200 | 5,097 |
Coca-Cola HBC AG (CDI)1 | 147,100 | 4,785 |
Coca-Cola FEMSA, SAB de CV, Series L | 515,000 | 3,587 |
285,153 | ||
Materials 7.77% | ||
Randgold Resources Ltd.1 | 529,600 | 52,539 |
Vale SA, ordinary nominative | 4,093,786 | 49,687 |
First Quantum Minerals Ltd. | 2,580,100 | 36,146 |
En+ Group PLC (GDR)1,3 | 1,886,800 | 26,038 |
Glencore PLC1 | 4,840,000 | 25,465 |
Klabin SA, units | 4,219,400 | 22,387 |
DowDuPont Inc. | 250,000 | 17,805 |
ArcelorMittal SA1,2 | 430,000 | 13,926 |
Koninklijke DSM NV1 | 102,900 | 9,809 |
Vedanta Resources PLC1 | 638,100 | 6,865 |
Air Products and Chemicals, Inc. | 36,000 | 5,907 |
Dalmia Bharat Ltd.1 | 90,803 | 4,563 |
Platform Specialty Products Corp.2 | 201,400 | 1,998 |
Air Liquide SA1 | 10,450 | 1,314 |
274,449 | ||
Industrials 6.22% | ||
Airbus SE, non-registered shares1 | 612,229 | 60,798 |
Eicher Motors Ltd.1 | 118,200 | 56,103 |
Grupo Aeroportuario del Sureste, SA de CV, Series B | 1,315,200 | 23,951 |
Deutsche Post AG1 | 350,000 | 16,627 |
BAE Systems PLC1 | 2,045,500 | 15,732 |
Johnson Controls International PLC | 379,975 | 14,481 |
Boeing Co. | 35,000 | 10,322 |
ASSA ABLOY AB, Class B1 | 323,158 | 6,706 |
Edenred SA1 | 211,700 | 6,133 |
Grupo Aeroportuario del Pacífico SAB de CV | 495,482 | 5,092 |
MTU Aero Engines AG1 | 20,500 | 3,666 |
219,611 | ||
Health care 4.44% | ||
Hypermarcas SA, ordinary nominative | 4,168,700 | 45,242 |
CSL Ltd.1 | 268,500 | 29,552 |
BioMarin Pharmaceutical Inc.2 | 200,000 | 17,834 |
Cochlear Ltd.1 | 112,500 | 15,019 |
Straumann Holding AG1 | 20,100 | 14,187 |
bioMérieux SA1 | 98,280 | 8,806 |
Thermo Fisher Scientific Inc. | 45,200 | 8,583 |
AstraZeneca PLC1 | 99,000 | 6,794 |
Zoetis Inc., Class A | 85,000 | 6,123 |
Novartis AG1 | 55,300 | 4,675 |
156,815 |
American Funds Insurance Series — New World Fund — Page 26 of 171
Common stocks Telecommunication services 2.49% | Shares | Value (000) |
SoftBank Group Corp.1 | 738,000 | $58,304 |
China Unicom (Hong Kong) Ltd.1,2 | 16,224,000 | 21,957 |
Vodafone Group PLC (ADR) | 136,000 | 4,339 |
Advanced Info Service PCL, foreign registered1 | 556,900 | 3,263 |
87,863 | ||
Utilities 1.88% | ||
Infraestructura Energética Nova, SAB de CV | 6,831,495 | 33,510 |
Pampa Energía SA (ADR)2 | 310,000 | 20,857 |
China Gas Holdings Ltd.1 | 4,385,842 | 12,099 |
66,466 | ||
Real estate 1.08% | ||
American Tower Corp. REIT | 236,800 | 33,784 |
Fibra Uno Administración, SA de CV REIT | 2,870,496 | 4,254 |
Ayala Land, Inc., preference shares1,2,4 | 15,000,000 | 27 |
38,065 | ||
Miscellaneous 4.66% | ||
Other common stocks in initial period of acquisition | 164,831 | |
Total common stocks (cost: $2,398,030,000) | 3,215,530 | |
Preferred securities 0.04% Miscellaneous 0.04% | ||
Other preferred securities in initial period of acquisition | 1,340 | |
Total preferred securities (cost: $1,340,000) | 1,340 | |
Rights & warrants 1.78% Consumer staples 1.58% | ||
Foshan Haitian Flavouring and Food Co., Ltd., Class A, warrants, expire 20181,3 | 5,330,000 | 44,024 |
Shanghai Jahwa United Co., Ltd., Class A, warrants, expire 20181,3 | 2,100,000 | 11,891 |
55,915 | ||
Consumer discretionary 0.20% | ||
Gree Electric Appliances, Inc. of Zhuhai, Class A, warrants, expire 20181,3 | 1,028,900 | 6,895 |
Total rights & warrants (cost: $40,814,000) | 62,810 | |
Bonds, notes & other debt instruments 2.75% Bonds & notes of governments & government agencies outside the U.S. 2.27% | Principal amount (000) | |
Argentine Republic 2.50% 20215 | ARS6,637 | 340 |
Argentine Republic 6.875% 2021 | $700 | 764 |
Argentine Republic 7.50% 2026 | 525 | 595 |
Argentine Republic 8.28% 20336,7 | 1,318 | 1,560 |
Argentine Republic 0% 2035 | 5,800 | 613 |
Argentine Republic 2.26% 20386 | €2,275 | 2,000 |
Argentine Republic (Badlar Private Banks ARS Index + 2.00%) 22.548% 20228 | ARS5,500 | 294 |
Bahrain (Kingdom of) 6.75% 20293 | $500 | 494 |
Brazil (Federative Republic of) 0% 2021 | BRL12,000 | 2,649 |
Brazil (Federative Republic of) 10.00% 2023 | 1,000 | 305 |
American Funds Insurance Series — New World Fund — Page 27 of 171
Bonds, notes & other debt instruments Bonds & notes of governments & government agencies outside the U.S. (continued) | Principal amount (000) | Value (000) |
Brazil (Federative Republic of) 5.625% 2047 | $2,245 | $2,299 |
Buenos Aires (City of) 8.95% 20216 | 1,055 | 1,174 |
Buenos Aires (City of) (Badlar Private Banks ARS Index + 3.75%) 29.00% 20288 | ARS9,200 | 494 |
Colombia (Republic of) 4.50% 2026 | $250 | 267 |
Dominican Republic 7.50% 20216 | 800 | 875 |
Dominican Republic 5.50% 20253 | 970 | 1,029 |
Dominican Republic 10.375% 2026 | DOP24,000 | 533 |
Dominican Republic 8.625% 20273,6 | $575 | 709 |
Dominican Republic 11.25% 2027 | DOP22,900 | 540 |
Dominican Republic 7.45% 20443 | $1,125 | 1,347 |
Dominican Republic 7.45% 2044 | 1,100 | 1,317 |
Dominican Republic 6.85% 20453 | 500 | 564 |
Egypt (Arab Republic of) 7.50% 20273 | 640 | 709 |
Egypt (Arab Republic of) 8.50% 2047 | 1,000 | 1,151 |
Egypt (Arab Republic of) 8.50% 20473 | 490 | 564 |
Ghana (Republic of) 7.875% 2023 | 1,950 | 2,148 |
Hungary 5.75% 2023 | 1,900 | 2,177 |
India (Republic of) 7.80% 2021 | INR149,700 | 2,403 |
India (Republic of) 8.83% 2023 | 114,800 | 1,917 |
India (Republic of) 8.40% 2024 | 52,100 | 857 |
India (Republic of) 7.59% 2029 | 46,280 | 724 |
India (Republic of) 7.61% 2030 | 145,440 | 2,273 |
India (Republic of) 7.88% 2030 | 25,000 | 401 |
Indonesia (Republic of) 4.875% 2021 | $1,500 | 1,603 |
Indonesia (Republic of) 3.75% 2022 | 2,100 | 2,166 |
Indonesia (Republic of) 4.75% 20263 | 2,100 | 2,287 |
Indonesia (Republic of) 5.25% 2042 | 550 | 617 |
Jordan (Hashemite Kingdom of) 6.125% 20263 | 230 | 237 |
Jordan (Hashemite Kingdom of) 5.75% 20273 | 230 | 229 |
Kazakhstan (Republic of) 5.125% 20253 | 400 | 446 |
Kazakhstan (Republic of) 6.50% 20453 | 800 | 1,029 |
Kenya (Republic of) 6.875% 2024 | 1,350 | 1,441 |
Kenya (Republic of) 6.875% 20243 | 900 | 961 |
Kuwait (State of) 2.75% 20223 | 550 | 549 |
Morocco (Kingdom of) 4.25% 2022 | 1,400 | 1,479 |
Morocco (Kingdom of) 4.25% 20223 | 250 | 264 |
Morocco (Kingdom of) 5.50% 2042 | 2,200 | 2,502 |
Nigeria (Federal Republic of) 6.375% 2023 | 1,025 | 1,091 |
Pakistan (Islamic Republic of) 5.50% 20213 | 900 | 911 |
Pakistan (Islamic Republic of) 8.25% 2024 | 300 | 332 |
Pakistan (Islamic Republic of) 8.25% 20253 | 410 | 457 |
Pakistan (Islamic Republic of) 6.875% 20273 | 500 | 503 |
Panama (Republic of) 4.50% 20476 | 2,075 | 2,239 |
Paraguay (Republic of) 5.00% 20263 | 500 | 539 |
Paraguay (Republic of) 5.00% 2026 | 500 | 539 |
Paraguay (Republic of) 4.70% 20273 | 500 | 525 |
Paraguay (Republic of) 4.70% 2027 | 500 | 525 |
Peru (Republic of) 2.75% 2026 | €855 | 1,144 |
Peru (Republic of) 6.55% 20376 | $382 | 519 |
Peru (Republic of) 5.625% 2050 | 130 | 167 |
Poland (Republic of) 3.25% 2026 | 300 | 307 |
Russian Federation 7.50% 2021 | RUB42,900 | 758 |
Russian Federation 7.00% 2023 | 49,000 | 851 |
Saudi Arabia (Kingdom of) 2.375% 20213 | $375 | 366 |
Saudi Arabia (Kingdom of) 2.894% 20223 | 1,000 | 994 |
American Funds Insurance Series — New World Fund — Page 28 of 171
Bonds, notes & other debt instruments Bonds & notes of governments & government agencies outside the U.S. (continued) | Principal amount (000) | Value (000) |
Saudi Arabia (Kingdom of) 3.25% 20263 | $810 | $796 |
Saudi Arabia (Kingdom of) 3.625% 20283 | 800 | 794 |
South Africa (Republic of), Series R-186, 10.50% 2026 | ZAR6,600 | 596 |
South Africa (Republic of), Series R-214, 6.50% 2041 | 14,450 | 825 |
Sri Lanka (Democratic Socialist Republic of) 6.00% 2019 | $400 | 410 |
Sri Lanka (Democratic Socialist Republic of) 5.75% 2022 | 250 | 262 |
Sri Lanka (Democratic Socialist Republic of) 5.875% 2022 | 200 | 211 |
Sri Lanka (Democratic Socialist Republic of) 6.125% 2025 | 410 | 435 |
Sri Lanka (Democratic Socialist Republic of) 6.85% 2025 | 200 | 221 |
Sri Lanka (Democratic Socialist Republic of) 6.825% 2026 | 1,010 | 1,114 |
Sri Lanka (Democratic Socialist Republic of) 6.20% 20273 | 200 | 211 |
Turkey (Republic of) 9.00% 2024 | TRY3,455 | 803 |
Turkey (Republic of) 8.00% 2025 | 3,750 | 804 |
Turkey (Republic of) 4.875% 2026 | $1,820 | 1,799 |
Turkey (Republic of) 6.75% 2040 | 1,000 | 1,103 |
Turkey (Republic of) 6.00% 2041 | 650 | 659 |
Turkey (Republic of) 4.875% 2043 | 300 | 264 |
United Mexican States 4.00% 2023 | 932 | 978 |
United Mexican States 4.15% 2027 | 700 | 727 |
United Mexican States 4.00% 20405 | MXN5,345 | 286 |
United Mexican States 4.35% 2047 | $540 | 517 |
United Mexican States, Series M, 6.50% 2021 | MXN7,500 | 369 |
United Mexican States, Series M20, 10.00% 2024 | 11,000 | 631 |
United Mexican States, Series M, 5.75% 2026 | 10,000 | 450 |
United Mexican States Government Global, Series A, 5.75% 2110 | $140 | 150 |
80,078 | ||
Corporate bonds & notes 0.45% Energy 0.21% | ||
Ecopetrol SA 5.875% 2045 | 210 | 215 |
Gazprom OJSC 6.51% 20223 | 600 | 665 |
Pemex Project Funding Master Trust, Series 13, 6.625% 2035 | 300 | 322 |
Petrobras Global Finance Co. 6.125% 2022 | 640 | 681 |
Petrobras Global Finance Co. 4.375% 2023 | 310 | 307 |
Petrobras Global Finance Co. 6.25% 2024 | 90 | 96 |
Petrobras Global Finance Co. 8.75% 2026 | 850 | 1,018 |
Petrobras Global Finance Co. 6.85% 2115 | 890 | 860 |
Petróleos Mexicanos 5.50% 2021 | 95 | 101 |
Petróleos Mexicanos 6.375% 2021 | 545 | 594 |
Petróleos Mexicanos 3.50% 2023 | 145 | 142 |
Petróleos Mexicanos 6.875% 2026 | 600 | 682 |
Petróleos Mexicanos 5.625% 2046 | 660 | 612 |
YPF SA 8.50% 20253 | 860 | 1,000 |
7,295 | ||
Utilities 0.11% | ||
Cemig Geracao e Transmissao SA 9.25% 20243 | 480 | 519 |
Eskom Holdings Ltd. 5.75% 20213 | 985 | 976 |
State Grid Overseas Investment Ltd. 3.50% 20273 | 2,500 | 2,514 |
4,009 |
American Funds Insurance Series — New World Fund — Page 29 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Financials 0.07% | Principal amount (000) | Value (000) |
BBVA Bancomer SA 6.50% 20213 | $525 | $573 |
HSBK (Europe) BV 7.25% 20213 | 1,125 | 1,239 |
VEB Finance Ltd. 6.902% 2020 | 600 | 649 |
2,461 | ||
Telecommunication services 0.02% | ||
Digicel Group Ltd. 6.00% 20213 | 750 | 741 |
Other mortgage-backed securities 0.02% | ||
Export Credit Bank of Turkey 5.375% 20213 | 590 | 605 |
Materials 0.01% | ||
Vale SA 6.25% 2026 | 405 | 470 |
Industrials 0.01% | ||
Lima Metro Line Finance Ltd. 5.875% 20343,6 | 335 | 363 |
Consumer discretionary 0.00% | ||
Grupo Televisa, SAB 7.25% 2043 | MXN2,000 | 78 |
Total corporate bonds & notes | 16,022 | |
U.S. Treasury bonds & notes 0.03% U.S. Treasury 0.03% | ||
U.S. Treasury 0.75% 2018 | $1,000 | 999 |
Total U.S. Treasury bonds & notes | 999 | |
Total bonds, notes & other debt instruments (cost: $93,990,000) | 97,099 | |
Short-term securities 4.85% | ||
Bank of Montreal 1.70% due 3/15/2018 | 25,000 | 25,002 |
Egypt (Arab Republic of) 18.94% due 1/16/2018 | EGP10,300 | 577 |
Egyptian Treasury Bills 16.45%–17.00% due 1/30/2018–5/8/2018 | 49,775 | 2,706 |
Federal Home Loan Bank 1.25%–1.31% due 2/5/2018–3/28/2018 | $76,900 | 76,758 |
Liberty Street Funding Corp. 1.78% due 3/21/20183 | 25,000 | 24,901 |
Nigerian Treasury Bills 16.65%–17.80% due 3/8/2018–9/13/2018 | NGN810,930 | 2,090 |
Oversea-Chinese Banking Corp. Ltd. 1.42% due 1/5/20183 | $18,300 | 18,295 |
U.S. Treasury Bills 1.50% due 6/28/2018 | 21,200 | 21,043 |
Total short-term securities (cost: $171,305,000) | 171,372 | |
Total investment securities 100.44% (cost: $2,705,479,000) | 3,548,151 | |
Other assets less liabilities (0.44)% | (15,438) | |
Net assets 100.00% | $3,532,713 |
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.
American Funds Insurance Series — New World Fund — Page 30 of 171
Forward currency contracts
Contract amount | Counterparty | Settlement date | Unrealized appreciation (depreciation) at 12/31/2017 (000) | |
Purchases (000) | Sales (000) | |||
USD116 | MXN2,100 | JPMorgan Chase | 1/4/2018 | $9 |
USD910 | BRL3,000 | JPMorgan Chase | 1/5/2018 | 6 |
USD4,477 | INR289,525 | JPMorgan Chase | 1/5/2018 | (55) |
USD1,426 | BRL4,600 | JPMorgan Chase | 1/11/2018 | 42 |
USD514 | BRL1,700 | JPMorgan Chase | 1/16/2018 | 3 |
USD687 | INR44,350 | Citibank | 1/16/2018 | (7) |
USD1,224 | ZAR16,605 | Goldman Sachs | 1/17/2018 | (115) |
USD314 | EUR265 | HSBC Bank | 1/18/2018 | (4) |
USD450 | TRY1,775 | Bank of America, N.A. | 1/18/2018 | (15) |
USD1,452 | ZAR19,250 | Barclays Bank PLC | 1/24/2018 | (97) |
USD1,369 | JPY153,000 | Bank of America, N.A. | 2/15/2018 | 8 |
USD562 | JPY63,000 | UBS AG | 2/23/2018 | 1 |
USD633 | EUR530 | HSBC Bank | 2/23/2018 | (5) |
USD1,807 | INR120,000 | Citibank | 3/26/2018 | (52) |
USD151 | EUR125 | Bank of America, N.A. | 12/13/2018 | (2) |
USD1,828 | EUR1,520 | Bank of America, N.A. | 12/13/2018 | (40) |
$(323) |
1 | 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 $2,022,785,000, which represented 57.26% of the net assets of the fund. This amount includes $1,899,212,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Security did not produce income during the last 12 months. |
3 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $160,176,000, which represented 4.53% of the net assets of the fund. |
4 | Value determined using significant unobservable inputs. |
5 | Index-linked bond whose principal amount moves with a government price index. |
6 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
7 | Payment in kind; the issuer has the option of paying additional securities in lieu of cash. Most recent payment was 100% cash unless otherwise noted. |
8 | Coupon rate may change periodically. |
Key to abbreviations and symbols | |
ADR = American Depositary Receipts | INR = Indian rupees |
ARS = Argentine pesos | JPY = Japanese yen |
BRL = Brazilian reais | MXN = Mexican pesos |
CDI = CREST Depository Interest | NGN = Nigerian naira |
DOP = Dominican pesos | RUB = Russian rubles |
EGP = Egyptian pounds | TRY = Turkish lira |
EUR/€ = Euros | USD/$ = U.S. dollars |
GDR = Global Depositary Receipts | ZAR = South African rand |
American Funds Insurance Series — New World Fund — Page 31 of 171
Blue Chip Income and Growth Fund
Investment portfolio
December 31, 2017
Common stocks 96.25% Health care 19.17% | Shares | Value (000) |
AbbVie Inc. | 6,761,500 | $653,905 |
Amgen Inc. | 2,366,500 | 411,534 |
Teva Pharmaceutical Industries Ltd. (ADR) | 10,833,800 | 205,300 |
Abbott Laboratories | 2,945,000 | 168,071 |
Gilead Sciences, Inc. | 1,808,012 | 129,526 |
Medtronic PLC | 900,000 | 72,675 |
Bristol-Myers Squibb Co. | 1,125,000 | 68,940 |
Novartis AG (ADR) | 708,500 | 59,486 |
Merck & Co., Inc. | 500,000 | 28,135 |
1,797,572 | ||
Financials 13.44% | ||
JPMorgan Chase & Co. | 3,884,900 | 415,451 |
Wells Fargo & Co. | 6,013,000 | 364,809 |
Prudential Financial, Inc. | 2,649,000 | 304,582 |
American International Group, Inc. | 1,506,300 | 89,745 |
U.S. Bancorp | 1,000,000 | 53,580 |
HSBC Holdings PLC (ADR) | 626,866 | 32,372 |
1,260,539 | ||
Information technology 11.95% | ||
Intel Corp. | 8,432,200 | 389,230 |
Texas Instruments Inc. | 2,630,000 | 274,677 |
Microsoft Corp. | 2,184,000 | 186,819 |
Apple Inc. | 694,180 | 117,476 |
Western Union Co. | 5,375,000 | 102,179 |
International Business Machines Corp. | 330,000 | 50,629 |
1,121,010 | ||
Industrials 11.36% | ||
CSX Corp. | 4,616,500 | 253,954 |
General Electric Co. | 10,209,000 | 178,147 |
General Dynamics Corp. | 861,000 | 175,170 |
Illinois Tool Works Inc. | 650,000 | 108,453 |
Union Pacific Corp. | 750,000 | 100,575 |
Boeing Co. | 329,000 | 97,025 |
Rockwell Automation | 450,000 | 88,358 |
United Technologies Corp. | 500,000 | 63,785 |
1,065,467 | ||
Consumer staples 10.68% | ||
Altria Group, Inc. | 2,754,000 | 196,663 |
Kimberly-Clark Corp. | 1,395,800 | 168,417 |
Kellogg Co. | 2,152,800 | 146,347 |
Philip Morris International Inc. | 1,250,000 | 132,063 |
Mondelez International, Inc. | 1,580,000 | 67,624 |
American Funds Insurance Series — Blue Chip Income and Growth Fund — Page 32 of 171
Common stocks Consumer staples (continued) | Shares | Value (000) |
Kraft Heinz Co. | 776,666 | $60,394 |
Coca-Cola Co. | 1,250,000 | 57,350 |
British American Tobacco PLC (ADR) | 845,282 | 56,625 |
PepsiCo, Inc. | 400,000 | 47,968 |
Conagra Brands, Inc. | 1,200,000 | 45,204 |
Lamb Weston Holdings, Inc. | 400,000 | 22,580 |
1,001,235 | ||
Telecommunication services 8.47% | ||
Verizon Communications Inc. | 9,609,171 | 508,614 |
AT&T Inc. | 4,181,000 | 162,557 |
CenturyLink, Inc. | 7,398,800 | 123,412 |
794,583 | ||
Energy 7.82% | ||
Canadian Natural Resources, Ltd. | 6,284,000 | 224,464 |
Exxon Mobil Corp. | 2,054,000 | 171,797 |
EOG Resources, Inc. | 1,555,000 | 167,800 |
Halliburton Co. | 2,419,700 | 118,251 |
Royal Dutch Shell PLC, Class B (ADR) | 750,000 | 51,217 |
733,529 | ||
Consumer discretionary 5.55% | ||
Twenty-First Century Fox, Inc., Class A | 3,955,900 | 136,597 |
Marriott International, Inc., Class A | 671,000 | 91,075 |
McDonald’s Corp. | 500,000 | 86,060 |
General Motors Co. | 2,000,000 | 81,980 |
Viacom Inc., Class B | 2,112,850 | 65,097 |
Royal Caribbean Cruises Ltd. | 500,000 | 59,640 |
520,449 | ||
Materials 2.77% | ||
Freeport-McMoRan Inc.1 | 6,163,000 | 116,851 |
Vale SA, ordinary nominative (ADR) | 4,843,277 | 59,233 |
Praxair, Inc. | 375,000 | 58,005 |
International Flavors & Fragrances Inc. | 168,000 | 25,638 |
259,727 | ||
Utilities 0.72% | ||
Southern Co. | 1,000,000 | 48,090 |
Xcel Energy Inc. | 250,000 | 12,027 |
NextEra Energy, Inc. | 50,000 | 7,810 |
67,927 | ||
Real estate 0.47% | ||
Crown Castle International Corp. REIT | 400,000 | 44,404 |
Miscellaneous 3.85% | ||
Other common stocks in initial period of acquisition | 361,132 | |
Total common stocks (cost: $6,732,682,000) | 9,027,574 |
American Funds Insurance Series — Blue Chip Income and Growth Fund — Page 33 of 171
Short-term securities 3.72% | Principal amount (000) | Value (000) |
Army and Air Force Exchange Service 1.30% due 1/24/20182 | $25,000 | $24,974 |
Bank of New York Mellon Corp. 1.21% due 1/22/2018 | 56,300 | 56,243 |
CAFCO, LLC 1.75% due 3/21/20182 | 12,000 | 11,953 |
Cisco Systems, Inc. 1.23%–1.60% due 1/10/2018–3/6/20182 | 104,400 | 104,238 |
Federal Home Loan Bank 1.09%–1.24% due 1/10/2018–1/26/2018 | 75,800 | 75,772 |
General Electric Co. 1.42% due 1/2/2018 | 21,200 | 21,197 |
Microsoft Corp. 1.41% due 2/14/20182 | 25,300 | 25,252 |
U.S. Treasury Bills 1.56% due 11/8/2018 | 30,000 | 29,565 |
Total short-term securities (cost: $349,269,000) | 349,194 | |
Total investment securities 99.97% (cost: $7,081,951,000) | 9,376,768 | |
Other assets less liabilities 0.03% | 3,081 | |
Net assets 100.00% | $9,379,849 |
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.
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 was $166,417,000, which represented 1.77% of the net assets of the fund. |
Key to abbreviation |
ADR = American Depositary Receipts |
American Funds Insurance Series — Blue Chip Income and Growth Fund — Page 34 of 171
Global Growth and Income Fund
Investment portfolio
December 31, 2017
Common stocks 93.68% Information technology 23.74% | Shares | Value (000) |
Nintendo Co., Ltd.1 | 249,000 | $90,649 |
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 9,226,800 | 70,899 |
Microsoft Corp. | 807,000 | 69,031 |
Broadcom Ltd. | 137,000 | 35,195 |
United Microelectronics Corp.1 | 68,320,000 | 32,489 |
AAC Technologies Holdings Inc.1 | 1,503,500 | 26,739 |
Murata Manufacturing Co., Ltd.1 | 190,000 | 25,395 |
Facebook, Inc., Class A2 | 120,000 | 21,175 |
Apple Inc. | 118,000 | 19,969 |
TE Connectivity Ltd. | 200,000 | 19,008 |
Alibaba Group Holding Ltd. (ADR)2 | 104,000 | 17,933 |
TEMENOS Group AG (Switzerland)1 | 128,000 | 16,381 |
Alphabet Inc., Class C2 | 9,000 | 9,418 |
Alphabet Inc., Class A2 | 6,000 | 6,320 |
MediaTek Inc.1 | 1,465,000 | 14,442 |
Halma PLC1 | 610,000 | 10,352 |
Vanguard International Semiconductor Corp.1 | 3,674,000 | 8,128 |
Intel Corp. | 120,600 | 5,567 |
499,090 | ||
Financials 10.79% | ||
Prudential PLC1 | 765,000 | 19,668 |
Wells Fargo & Co. | 272,000 | 16,502 |
Blackstone Group LP | 453,250 | 14,513 |
First Republic Bank | 145,000 | 12,563 |
CenterState Bank Corp. | 475,945 | 12,246 |
BNP Paribas SA1 | 150,000 | 11,186 |
PNC Financial Services Group, Inc. | 76,000 | 10,966 |
YES Bank Ltd.1 | 2,200,000 | 10,844 |
BM&FBOVESPA SA - Bolsa de Valores, Mercadorias e Futuros, ordinary nominative | 1,566,000 | 10,754 |
HSBC Holdings PLC (GBP denominated)1 | 1,030,000 | 10,622 |
AIA Group Ltd.1 | 1,220,000 | 10,405 |
CIT Group Inc. | 201,750 | 9,932 |
JPMorgan Chase & Co. | 92,000 | 9,839 |
ABN AMRO Group NV, depository receipts1 | 275,000 | 8,849 |
CME Group Inc., Class A | 58,500 | 8,544 |
Crédit Agricole SA1 | 515,000 | 8,508 |
AXA SA1 | 262,000 | 7,765 |
Bank Central Asia Tbk PT1 | 4,775,000 | 7,697 |
BlackRock, Inc. | 13,500 | 6,935 |
Itaú Unibanco Holding SA, preferred nominative (ADR) | 375,000 | 4,875 |
Indiabulls Housing Finance Ltd.1 | 259,625 | 4,862 |
Macquarie Group Ltd.1 | 59,000 | 4,574 |
Capital One Financial Corp. | 32,000 | 3,187 |
UniCredit SpA1,2 | 56,160 | 1,046 |
226,882 |
American Funds Insurance Series — Global Growth and Income Fund — Page 35 of 171
Common stocks Industrials 10.63% | Shares | Value (000) |
Airbus SE, non-registered shares1 | 503,000 | $49,951 |
Grupo Aeroportuario del Pacífico SAB de CV | 2,930,000 | 30,114 |
Lockheed Martin Corp. | 82,300 | 26,422 |
Boeing Co. | 87,000 | 25,657 |
Deutsche Post AG1 | 523,000 | 24,845 |
Aeroflot - Russian Airlines PJSC1 | 6,632,000 | 15,914 |
Ryanair Holdings PLC (ADR)2 | 141,375 | 14,730 |
Safran SA1 | 90,000 | 9,255 |
Flughafen Zürich AG1 | 39,000 | 8,918 |
ACS, Actividades de Construcción y Servicios SA1 | 227,645 | 8,907 |
Eicher Motors Ltd.1 | 18,700 | 8,876 |
223,589 | ||
Consumer staples 8.80% | ||
British American Tobacco PLC1 | 1,285,000 | 86,725 |
Nestlé SA1 | 558,700 | 48,010 |
Wal-Mart de México, SAB de CV, Series V | 4,485,000 | 10,992 |
Pinnacle Foods Inc. | 160,000 | 9,515 |
Coca-Cola FEMSA, SAB de CV, Series L | 1,251,000 | 8,713 |
Walgreens Boots Alliance, Inc. | 100,000 | 7,262 |
Booker Group PLC1 | 1,380,000 | 4,249 |
Procter & Gamble Co. | 40,741 | 3,744 |
Costco Wholesale Corp. | 17,000 | 3,164 |
Coca-Cola European Partners PLC | 67,000 | 2,670 |
185,044 | ||
Consumer discretionary 8.45% | ||
Home Depot, Inc. | 122,000 | 23,123 |
Vivendi SA1 | 715,200 | 19,232 |
Amazon.com, Inc.2 | 16,000 | 18,711 |
Sony Corp.1 | 375,000 | 16,845 |
Nitori Holdings Co., Ltd.1 | 105,000 | 14,972 |
Accor SA1 | 256,300 | 13,211 |
Comcast Corp., Class A | 296,000 | 11,855 |
Paddy Power Betfair PLC1 | 90,000 | 10,677 |
Axel Springer SE1 | 125,000 | 9,740 |
Carnival Corp., units | 138,000 | 9,159 |
Las Vegas Sands Corp. | 125,000 | 8,686 |
Starbucks Corp. | 110,000 | 6,317 |
Continental AG1 | 23,000 | 6,209 |
adidas AG1 | 28,000 | 5,589 |
ProSiebenSat.1 Media SE1 | 95,000 | 3,271 |
177,597 | ||
Health care 7.15% | ||
UnitedHealth Group Inc. | 215,100 | 47,421 |
Centene Corp.2 | 212,000 | 21,387 |
Hypermarcas SA, ordinary nominative | 1,662,000 | 18,037 |
Novartis AG1 | 124,000 | 10,483 |
Thermo Fisher Scientific Inc. | 55,000 | 10,443 |
Fleury SA, ordinary nominative | 1,150,000 | 10,266 |
ResMed Inc. | 114,000 | 9,655 |
Hologic, Inc.2 | 200,000 | 8,550 |
Merck & Co., Inc. | 97,000 | 5,458 |
American Funds Insurance Series — Global Growth and Income Fund — Page 36 of 171
Common stocks Health care (continued) | Shares | Value (000) |
Hikma Pharmaceuticals PLC1 | 340,000 | $5,203 |
AstraZeneca PLC1 | 50,000 | 3,431 |
150,334 | ||
Energy 6.18% | ||
Reliance Industries Ltd.1 | 2,915,148 | 42,056 |
BP PLC1 | 4,570,206 | 32,231 |
Royal Dutch Shell PLC, Class B (ADR) | 242,000 | 16,526 |
Royal Dutch Shell PLC, Class B1 | 325,000 | 10,961 |
Royal Dutch Shell PLC, Class A (ADR) | 7,395 | 494 |
Coal India Ltd.1 | 4,310,000 | 17,756 |
Pilipinas Shell Petroleum Corp.1 | 3,254,065 | 3,975 |
Tallgrass Energy GP, LP, Class A | 150,000 | 3,861 |
Enbridge Inc. | 55,000 | 2,151 |
130,011 | ||
Materials 5.87% | ||
Century Aluminum Co.2 | 1,650,000 | 32,406 |
Randgold Resources Ltd.1 | 271,100 | 26,895 |
James Hardie Industries PLC (CDI)1 | 850,000 | 14,963 |
DowDuPont Inc. | 172,044 | 12,253 |
Rio Tinto PLC1 | 199,000 | 10,503 |
Koninklijke DSM NV1 | 95,000 | 9,056 |
CCL Industries Inc., Class B, nonvoting | 192,500 | 8,894 |
LafargeHolcim Ltd.1 | 150,000 | 8,451 |
123,421 | ||
Real estate 3.48% | ||
Gaming and Leisure Properties, Inc. REIT | 604,000 | 22,348 |
MGM Growth Properties LLC REIT, Class A | 676,200 | 19,711 |
Vonovia SE1 | 234,442 | 11,605 |
Public Storage REIT | 37,000 | 7,733 |
Crown Castle International Corp. REIT | 53,000 | 5,884 |
Prologis, Inc. REIT | 90,000 | 5,806 |
73,087 | ||
Utilities 2.24% | ||
Ørsted AS1 | 491,552 | 26,780 |
Infraestructura Energética Nova, SAB de CV | 2,248,184 | 11,028 |
Power Assets Holdings Ltd.1 | 1,100,000 | 9,283 |
47,091 | ||
Telecommunication services 1.74% | ||
Verizon Communications Inc. | 415,000 | 21,966 |
Advanced Info Service PCL, foreign registered1 | 1,350,000 | 7,911 |
TalkTalk Telecom Group PLC1 | 1,728,000 | 3,565 |
Vodafone Group PLC1 | 1,000,000 | 3,159 |
36,601 | ||
Miscellaneous 4.61% | ||
Other common stocks in initial period of acquisition | 96,833 | |
Total common stocks (cost: $1,460,247,000) | 1,969,580 |
American Funds Insurance Series — Global Growth and Income Fund — Page 37 of 171
Convertible bonds 0.31% Miscellaneous 0.31% | Principal amount (000) | Value (000) |
Other convertible bonds in initial period of acquisition | $6,622 | |
Total convertible bonds (cost: $6,003,000) | 6,622 | |
Bonds, notes & other debt instruments 2.00% Corporate bonds & notes 1.95% Telecommunication services 1.67% | ||
Sprint Corp. 7.25% 2021 | $33,000 | 35,021 |
Health care 0.28% | ||
Teva Pharmaceutical Finance Company BV 3.15% 2026 | 7,225 | 5,975 |
Total corporate bonds & notes | 40,996 | |
U.S. Treasury bonds & notes 0.05% U.S. Treasury 0.05% | ||
U.S. Treasury 0.75% 2018 | 1,000 | 999 |
Total U.S. Treasury bonds & notes | 999 | |
Total bonds, notes & other debt instruments (cost: $38,839,000) | 41,995 | |
Short-term securities 4.19% | ||
BMW U.S. Capital LLC 1.27% due 1/12/20183 | 4,000 | 3,998 |
Caisse d’Amortissement de la Dette Sociale 1.35% due 1/4/20183 | 15,000 | 14,997 |
Canadian Imperial Holdings Inc. 1.52% due 3/8/2018 | 25,000 | 24,926 |
Federal Home Loan Bank 1.28% due 2/5/2018 | 34,700 | 34,660 |
General Electric Co. 1.42% due 1/2/2018 | 9,550 | 9,548 |
Total short-term securities (cost: $88,134,000) | 88,129 | |
Total investment securities 100.18% (cost: $1,593,223,000) | 2,106,326 | |
Other assets less liabilities (0.18)% | (3,880) | |
Net assets 100.00% | $2,102,446 |
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 | 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 $1,083,748,000, which represented 51.55% of the net assets of the fund. This entire amount relates to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Security did not produce income during the last 12 months. |
3 | Acquired in a transaction exempt from registration under 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 $18,995,000, which represented .90% of the net assets of the fund. |
Key to abbreviations |
ADR = American Depositary Receipts |
CDI = CREST Depository Interest |
GBP = British pounds |
American Funds Insurance Series — Global Growth and Income Fund — Page 38 of 171
Growth-Income Fund
Investment portfolio
December 31, 2017
Common stocks 94.11% Information technology 16.93% | Shares | Value (000) |
Microsoft Corp. | 8,905,427 | $761,770 |
Alphabet Inc., Class A1 | 373,700 | 393,655 |
Alphabet Inc., Class C1 | 309,284 | 323,635 |
Texas Instruments Inc. | 4,723,259 | 493,297 |
Broadcom Ltd. | 1,715,390 | 440,684 |
Intel Corp. | 9,418,000 | 434,735 |
Apple Inc. | 1,793,300 | 303,480 |
Accenture PLC, Class A | 1,654,500 | 253,287 |
QUALCOMM Inc. | 3,519,175 | 225,298 |
MasterCard Inc., Class A | 1,100,000 | 166,496 |
Samsung Electronics Co., Ltd.2 | 54,350 | 129,126 |
GoDaddy Inc., Class A1 | 2,247,200 | 112,989 |
Harris Corp. | 690,000 | 97,738 |
ASML Holding NV (New York registered) | 553,800 | 96,262 |
Visa Inc., Class A | 835,100 | 95,218 |
Vantiv, Inc., Class A1 | 1,250,000 | 91,937 |
IAC/InterActiveCorp1 | 716,000 | 87,552 |
NetApp, Inc. | 1,471,690 | 81,414 |
Xilinx, Inc. | 1,175,000 | 79,219 |
International Business Machines Corp. | 500,000 | 76,710 |
ON Semiconductor Corp.1 | 3,270,900 | 68,493 |
Symantec Corp. | 2,317,000 | 65,015 |
MercadoLibre, Inc. | 200,000 | 62,932 |
Oracle Corp. | 1,300,000 | 61,464 |
Arista Networks, Inc.1 | 250,828 | 59,090 |
Teradata Corp.1 | 1,286,300 | 49,471 |
SAP SE2 | 239,500 | 26,855 |
Trimble Inc.1 | 340,000 | 13,818 |
First Data Corp., Class A1 | 788,541 | 13,177 |
VeriSign, Inc.1 | 101,400 | 11,604 |
Motorola Solutions, Inc. | 100,000 | 9,034 |
Western Union Co. | 400,000 | 7,604 |
Juniper Networks, Inc. | 107,000 | 3,050 |
5,196,109 | ||
Consumer discretionary 16.28% | ||
Amazon.com, Inc.1 | 1,044,100 | 1,221,044 |
Netflix, Inc.1 | 3,533,077 | 678,209 |
Twenty-First Century Fox, Inc., Class A | 8,541,000 | 294,921 |
Twenty-First Century Fox, Inc., Class B | 595,000 | 20,301 |
Comcast Corp., Class A | 6,346,200 | 254,165 |
Home Depot, Inc. | 1,243,000 | 235,586 |
NIKE, Inc., Class B | 2,954,200 | 184,785 |
Harley-Davidson, Inc. | 3,013,580 | 153,331 |
Charter Communications, Inc., Class A1 | 447,669 | 150,399 |
Viacom Inc., Class B | 4,600,800 | 141,751 |
American Funds Insurance Series — Growth-Income Fund — Page 39 of 171
Common stocks Consumer discretionary (continued) | Shares | Value (000) |
Las Vegas Sands Corp. | 1,964,600 | $136,520 |
Carnival Corp., units | 1,999,800 | 132,727 |
Time Warner Inc. | 1,421,902 | 130,061 |
Aramark | 2,655,200 | 113,483 |
Dollar General Corp. | 1,134,400 | 105,511 |
Wynn Resorts, Ltd. | 597,966 | 100,811 |
Toyota Motor Corp.2 | 1,525,000 | 97,654 |
Signet Jewelers Ltd. | 1,674,500 | 94,693 |
Royal Caribbean Cruises Ltd. | 771,600 | 92,036 |
Priceline Group Inc.1 | 51,000 | 88,625 |
Newell Brands Inc. | 2,605,000 | 80,494 |
Marriott International, Inc., Class A | 572,700 | 77,733 |
Starbucks Corp. | 1,353,200 | 77,714 |
Ferrari NV2 | 600,000 | 62,937 |
Cedar Fair, LP | 896,500 | 58,264 |
Daily Mail and General Trust PLC, Class A, nonvoting2 | 5,560,000 | 44,683 |
CBS Corp., Class B | 720,000 | 42,480 |
Wyndham Worldwide Corp. | 272,000 | 31,517 |
Tapestry, Inc. | 630,000 | 27,865 |
Advance Auto Parts, Inc. | 275,200 | 27,435 |
Marks and Spencer Group PLC2 | 4,879,000 | 20,692 |
YUM! Brands, Inc. | 218,800 | 17,856 |
4,996,283 | ||
Health care 14.86% | ||
AbbVie Inc. | 8,376,600 | 810,101 |
Amgen Inc. | 2,761,983 | 480,309 |
UnitedHealth Group Inc. | 1,513,596 | 333,687 |
Stryker Corp. | 2,006,441 | 310,677 |
Gilead Sciences, Inc. | 4,284,100 | 306,913 |
Express Scripts Holding Co.1 | 3,627,500 | 270,757 |
Humana Inc. | 938,500 | 232,814 |
Abbott Laboratories | 3,808,000 | 217,323 |
Merck & Co., Inc. | 3,714,380 | 209,008 |
Illumina, Inc.1 | 867,550 | 189,551 |
Eli Lilly and Co. | 1,548,300 | 130,769 |
Incyte Corp.1 | 1,330,900 | 126,050 |
Johnson & Johnson | 890,000 | 124,351 |
Hologic, Inc.1 | 2,573,300 | 110,009 |
Medtronic PLC | 1,279,000 | 103,279 |
Takeda Pharmaceutical Co. Ltd.2 | 1,764,000 | 99,872 |
Novartis AG2 | 985,150 | 83,286 |
Seattle Genetics, Inc.1 | 1,536,306 | 82,192 |
Thermo Fisher Scientific Inc. | 397,500 | 75,477 |
Pfizer Inc. | 1,995,851 | 72,290 |
AstraZeneca PLC (ADR) | 1,228,600 | 42,632 |
Cerner Corp.1 | 579,100 | 39,026 |
Agios Pharmaceuticals, Inc.1 | 639,500 | 36,560 |
Quest Diagnostics, Inc. | 342,100 | 33,693 |
Ultragenyx Pharmaceutical Inc.1 | 695,200 | 32,243 |
Alexion Pharmaceuticals, Inc.1 | 57,000 | 6,817 |
4,559,686 |
American Funds Insurance Series — Growth-Income Fund — Page 40 of 171
Common stocks Financials 10.94% | Shares | Value (000) |
JPMorgan Chase & Co. | 4,639,300 | $496,127 |
Wells Fargo & Co. | 4,306,000 | 261,245 |
Bank of New York Mellon Corp. | 4,599,400 | 247,724 |
Intercontinental Exchange, Inc. | 2,541,065 | 179,298 |
Aon PLC, Class A | 1,214,800 | 162,783 |
American International Group, Inc. | 2,716,489 | 161,848 |
PNC Financial Services Group, Inc. | 1,078,276 | 155,584 |
State Street Corp. | 1,544,100 | 150,720 |
M&T Bank Corp. | 865,900 | 148,060 |
Charles Schwab Corp. | 2,580,500 | 132,560 |
Marsh & McLennan Companies, Inc. | 1,594,100 | 129,744 |
HSBC Holdings PLC (HKD denominated)2 | 11,346,929 | 115,914 |
Goldman Sachs Group, Inc. | 429,980 | 109,542 |
Banco Santander, SA2 | 16,095,805 | 105,546 |
UniCredit SpA1,2 | 5,468,000 | 101,865 |
EXOR NV2 | 1,600,000 | 98,070 |
Prudential Financial, Inc. | 650,000 | 74,737 |
CME Group Inc., Class A | 502,900 | 73,448 |
Chubb Ltd. | 493,500 | 72,115 |
Moody’s Corp. | 447,458 | 66,049 |
Leucadia National Corp. | 2,340,000 | 61,987 |
Bank of Montreal | 718,327 | 57,483 |
Citigroup Inc. | 600,000 | 44,646 |
BB&T Corp. | 554,000 | 27,545 |
UBS Group AG2 | 1,343,666 | 24,689 |
Invesco Ltd. | 500,000 | 18,270 |
KeyCorp | 893,000 | 18,012 |
Ameriprise Financial, Inc. | 101,100 | 17,133 |
East West Bancorp, Inc. | 252,000 | 15,329 |
Sun Life Financial Inc. | 266,200 | 10,987 |
U.S. Bancorp | 201,000 | 10,770 |
Progressive Corp. | 119,100 | 6,708 |
3,356,538 | ||
Industrials 9.48% | ||
CSX Corp. | 5,387,000 | 296,339 |
BWX Technologies, Inc. | 4,772,174 | 288,669 |
General Dynamics Corp. | 1,342,100 | 273,050 |
Airbus SE, non-registered shares2 | 2,117,764 | 210,306 |
Textron Inc. | 3,456,100 | 195,581 |
Union Pacific Corp. | 1,404,933 | 188,402 |
General Electric Co. | 10,538,000 | 183,888 |
United Technologies Corp. | 978,300 | 124,802 |
Norfolk Southern Corp. | 840,000 | 121,716 |
C.H. Robinson Worldwide, Inc. | 1,363,035 | 121,433 |
Equifax Inc. | 978,000 | 115,326 |
Deere & Co. | 697,500 | 109,166 |
TransDigm Group Inc. | 364,300 | 100,044 |
Nielsen Holdings PLC | 2,211,300 | 80,491 |
Safran SA2 | 757,903 | 77,935 |
Air Lease Corp., Class A | 1,415,000 | 68,047 |
Waste Management, Inc. | 767,700 | 66,253 |
Waste Connections, Inc. | 662,000 | 46,962 |
Siemens AG (ADR) | 315,000 | 21,820 |
Siemens AG2 | 150,000 | 20,812 |
American Funds Insurance Series — Growth-Income Fund — Page 41 of 171
Common stocks Industrials (continued) | Shares | Value (000) |
Rockwell Automation | 202,700 | $39,800 |
Lockheed Martin Corp. | 109,900 | 35,283 |
Covanta Holding Corp. | 2,019,800 | 34,135 |
Boeing Co. | 96,000 | 28,311 |
Huntington Ingalls Industries, Inc. | 116,500 | 27,459 |
Meggitt PLC2 | 3,615,000 | 23,407 |
IDEX Corp. | 86,800 | 11,455 |
2,910,892 | ||
Consumer staples 7.51% | ||
British American Tobacco PLC2 | 3,746,100 | 252,826 |
British American Tobacco PLC (ADR) | 494,440 | 33,122 |
Philip Morris International Inc. | 2,702,430 | 285,512 |
Coca-Cola Co. | 5,964,900 | 273,670 |
Procter & Gamble Co. | 1,602,178 | 147,208 |
Carlsberg A/S, Class B2 | 1,056,094 | 126,495 |
Costco Wholesale Corp. | 656,000 | 122,095 |
Lamb Weston Holdings, Inc. | 2,116,000 | 119,448 |
Pernod Ricard SA2 | 751,476 | 118,952 |
Altria Group, Inc. | 1,545,000 | 110,329 |
Kirin Holdings Co., Ltd.2 | 4,229,000 | 106,401 |
L’Oreal SA2 | 470,000 | 104,119 |
Kellogg Co. | 1,369,000 | 93,065 |
CVS Health Corp. | 1,109,300 | 80,424 |
Mondelez International, Inc. | 1,774,400 | 75,944 |
Nestlé SA2 | 712,589 | 61,234 |
PepsiCo, Inc. | 498,419 | 59,770 |
Diageo PLC2 | 1,220,000 | 44,650 |
Herbalife Ltd.1 | 645,300 | 43,700 |
Avon Products, Inc.1 | 19,099,000 | 41,063 |
Kroger Co. | 160,000 | 4,392 |
2,304,419 | ||
Energy 6.38% | ||
TOTAL SA2 | 4,561,625 | 251,689 |
EOG Resources, Inc. | 2,277,300 | 245,743 |
Chevron Corp. | 1,646,900 | 206,175 |
Enbridge Inc. (CAD denominated) | 2,952,217 | 115,458 |
Enbridge Inc. (CAD denominated)2,3 | 1,340,553 | 51,379 |
Canadian Natural Resources, Ltd. | 4,279,440 | 152,930 |
Schlumberger Ltd. | 2,055,000 | 138,486 |
Royal Dutch Shell PLC, Class A (ADR) | 1,167,705 | 77,898 |
Royal Dutch Shell PLC, Class B (ADR) | 680,000 | 46,437 |
Royal Dutch Shell PLC, Class B2 | 292,716 | 9,872 |
Royal Dutch Shell PLC, Class A2 | 32,389 | 1,084 |
ConocoPhillips | 2,099,410 | 115,237 |
Exxon Mobil Corp. | 1,088,000 | 91,000 |
Concho Resources Inc.1 | 574,000 | 86,226 |
Kinder Morgan, Inc. | 4,108,300 | 74,237 |
BP PLC2 | 6,978,185 | 49,214 |
Apache Corp. | 1,100,000 | 46,442 |
Baker Hughes, a GE Co., Class A | 1,247,600 | 39,474 |
Occidental Petroleum Corp. | 489,000 | 36,020 |
Suncor Energy Inc. | 953,650 | 35,013 |
Whitecap Resources Inc. | 2,775,000 | 19,758 |
American Funds Insurance Series — Growth-Income Fund — Page 42 of 171
Common stocks Energy (continued) | Shares | Value (000) |
Whitecap Resources Inc.2,3 | 1,344,000 | $9,283 |
Tullow Oil PLC1,2 | 9,369,306 | 26,107 |
Halliburton Co. | 349,800 | 17,095 |
Noble Energy, Inc. | 540,000 | 15,736 |
1,957,993 | ||
Materials 4.46% | ||
Celanese Corp., Series A | 2,573,233 | 275,542 |
Vale SA, ordinary nominative (ADR) | 17,367,884 | 212,409 |
Vale SA, ordinary nominative | 4,147,848 | 50,343 |
DowDuPont Inc. | 3,554,100 | 253,123 |
Freeport-McMoRan Inc.1 | 9,055,000 | 171,683 |
Monsanto Co. | 1,043,385 | 121,846 |
Rio Tinto PLC2 | 1,574,655 | 83,106 |
Mosaic Co. | 2,522,400 | 64,725 |
International Flavors & Fragrances Inc. | 418,500 | 63,867 |
Praxair, Inc. | 318,300 | 49,235 |
Centerra Gold Inc.1 | 2,917,909 | 14,949 |
Asahi Kasei Corp.2 | 619,000 | 7,974 |
1,368,802 | ||
Telecommunication services 1.96% | ||
Verizon Communications Inc. | 10,912,400 | 577,593 |
AT&T Inc. | 597,500 | 23,231 |
600,824 | ||
Real estate 1.74% | ||
Crown Castle International Corp. REIT | 1,428,200 | 158,544 |
Iron Mountain Inc. REIT | 3,811,921 | 143,824 |
Weyerhaeuser Co. REIT1 | 4,034,541 | 142,258 |
American Tower Corp. REIT | 515,800 | 73,589 |
MGM Growth Properties LLC REIT, Class A | 590,262 | 17,206 |
535,421 | ||
Utilities 0.82% | ||
Sempra Energy | 1,824,600 | 195,086 |
Exelon Corp. | 775,000 | 30,543 |
AES Corp. | 2,287,400 | 24,773 |
SSE PLC2 | 48,002 | 855 |
251,257 | ||
Mutual funds 0.18% | ||
Altaba Inc.1 | 789,243 | 55,129 |
Miscellaneous 2.57% | ||
Other common stocks in initial period of acquisition | 789,777 | |
Total common stocks (cost: $20,214,067,000) | 28,883,130 | |
Convertible stocks 0.04% Financials 0.02% | ||
OFG Bancorp, Series C, 8.75% noncumulative convertible preferred4 | 6,000 | 5,450 |
American Funds Insurance Series — Growth-Income Fund — Page 43 of 171
Convertible stocks Miscellaneous 0.02% | Shares | Value (000) |
Other convertible stocks in initial period of acquisition | $6,192 | |
Total convertible stocks (cost: $11,900,000) | 11,642 | |
Convertible bonds 0.35% Information technology 0.20% | Principal amount (000) | |
VeriSign, Inc., convertible notes, 3.25% 2037 | $ 18,020 | 60,255 |
Energy 0.15% | ||
Weatherford International PLC, convertible notes 5.875% 2021 | 0 | 47,099 |
Total convertible bonds (cost: $71,028,000) | 107,354 | |
Bonds, notes & other debt instruments 0.18% U.S. Treasury bonds & notes 0.18% U.S. Treasury 0.18% | ||
U.S. Treasury 1.625% 2026 | 59,900 | 56,489 |
Total bonds, notes & other debt instruments (cost: $60,201,000) | 56,489 | |
Short-term securities 5.38% | ||
Apple Inc. 1.50% due 2/20/20183 | 50,000 | 49,892 |
Bank of New York Mellon Corp. 1.23% due 1/30/2018 | 17,700 | 17,676 |
CAFCO, LLC 1.36%–1.57% due 2/1/2018–3/13/20183 | 100,000 | 99,754 |
Chariot Funding, LLC 1.45%–1.50% due 3/14/2018–3/19/20183 | 48,000 | 47,822 |
Chevron Corp. 1.23% due 1/9/2018–2/5/20183 | 96,100 | 96,005 |
Cisco Systems, Inc. 1.50%–1.52% due 2/20/2018–2/22/20183 | 100,000 | 99,780 |
Coca-Cola Co. 1.26% due 1/31/20183 | 50,000 | 49,932 |
Eli Lilly and Co. 1.24% due 1/10/20183 | 30,000 | 29,986 |
Emerson Electric Co. 1.34% due 2/1/20183 | 34,700 | 34,652 |
ExxonMobil Corp. 1.31% due 1/22/2018 | 60,000 | 59,944 |
Federal Home Loan Bank 1.12%–1.31% due 1/3/2018–3/2/2018 | 323,700 | 323,272 |
Freddie Mac 1.08%–1.28% due 1/26/2018–4/6/2018 | 223,948 | 223,415 |
Hershey Co. 1.40% due 1/12/20183 | 20,000 | 19,989 |
IBM Credit LLC 1.53% due 2/13/20183 | 50,000 | 49,905 |
Microsoft Corp. 1.30% due 1/23/20183 | 59,300 | 59,241 |
New York Life Capital Corp. 1.21% due 1/16/20183 | 25,000 | 24,982 |
PepsiCo Inc. 1.20% due 1/10/20183 | 50,000 | 49,976 |
Pfizer Inc. 1.26%–1.50% due 2/7/2018–3/12/20183 | 154,600 | 154,231 |
Procter & Gamble Co. 1.20%–1.24% due 1/3/2018–2/12/20183 | 122,600 | 122,509 |
U.S. Treasury Bills 1.02% due 1/2/2018 | 38,300 | 38,295 |
Total short-term securities (cost: $1,651,541,000) | 1,651,258 | |
Total investment securities 100.06% (cost: $22,008,737,000) | 30,709,873 | |
Other assets less liabilities (0.06)% | (17,511) | |
Net assets 100.00% | $30,692,362 |
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.
American Funds Insurance Series — Growth-Income Fund — Page 44 of 171
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Security did not produce income during the last 12 months. |
2 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous,“ was $2,958,273,000, which represented 9.64% of the net assets of the fund. This amount includes $2,749,134,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
3 | Acquired 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 $1,049,318,000, which represented 3.42% 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 this holding appear below. |
Private placement security | Acquisition date | Cost (000) | Value (000) | Percent of net assets |
OFG Bancorp, Series C, 8.75% noncumulative convertible preferred | 6/28/2012 | $6,000 | $5,450 | .02% |
Key to abbreviations | |
ADR = American Depositary Receipts | |
CAD = Canadian dollars | |
HKD = Hong Kong dollars |
American Funds Insurance Series — Growth-Income Fund — Page 45 of 171
International Growth and Income Fund
Investment portfolio
December 31, 2017
Common stocks 90.99% Financials 22.93% | Shares | Value (000) |
HDFC Bank Ltd.1 | 1,228,800 | $36,338 |
Banco Santander, SA1 | 4,488,061 | 29,430 |
Zurich Insurance Group AG1 | 92,200 | 28,041 |
KB Financial Group Inc.1 | 356,500 | 21,078 |
Intesa Sanpaolo SpA1 | 5,900,000 | 19,568 |
Sberbank of Russia PJSC (ADR)1 | 1,141,660 | 19,324 |
Prudential PLC1 | 738,000 | 18,974 |
St. James’s Place PLC1 | 1,048,000 | 17,323 |
UniCredit SpA1,2 | 914,400 | 17,035 |
AIA Group Ltd.1 | 1,833,000 | 15,632 |
Sumitomo Mitsui Financial Group, Inc.1 | 308,000 | 13,302 |
Itaú Unibanco Holding SA, preferred nominative (ADR) | 991,300 | 12,887 |
Sampo Oyj, Class A1 | 203,000 | 11,152 |
Lloyds Banking Group PLC1 | 11,968,000 | 10,959 |
Credit Suisse Group AG1 | 576,077 | 10,254 |
BNP Paribas SA1 | 137,300 | 10,239 |
Banco Bilbao Vizcaya Argentaria, SA1 | 825,000 | 7,023 |
Banco Bilbao Vizcaya Argentaria, SA (ADR) | 337,643 | 2,870 |
ABN AMRO Group NV, depository receipts1 | 260,000 | 8,366 |
Grupo Financiero Galicia SA, Class B (ADR) | 94,625 | 6,231 |
Bank Rakyat Indonesia (Persero) Tbk PT1 | 20,420,000 | 5,467 |
Jupiter Fund Management PLC1 | 587,000 | 4,978 |
Axis Bank Ltd.1,3,4 | 565,899 | 4,549 |
Moscow Exchange MICEX-RTS PJSC1 | 2,217,000 | 4,191 |
335,211 | ||
Consumer staples 9.11% | ||
British American Tobacco PLC1 | 437,600 | 29,534 |
Pernod Ricard SA1 | 128,650 | 20,364 |
Philip Morris International Inc. | 153,475 | 16,215 |
Imperial Brands PLC1 | 316,016 | 13,505 |
CALBEE, Inc.1 | 284,400 | 9,252 |
Thai Beverage PCL1 | 13,413,900 | 9,231 |
Kirin Holdings Co., Ltd.1 | 313,000 | 7,875 |
Coca-Cola Icecek AS, Class C1 | 767,000 | 6,920 |
Glanbia PLC1 | 380,473 | 6,815 |
Associated British Foods PLC1 | 171,680 | 6,527 |
Nestlé SA1 | 58,975 | 5,068 |
Orion Corp.1 | 19,739 | 1,928 |
133,234 | ||
Industrials 8.38% | ||
Shanghai International Airport Co., Ltd., Class A1 | 5,134,562 | 35,457 |
Airbus SE, non-registered shares1 | 253,960 | 25,220 |
ASSA ABLOY AB, Class B1 | 681,100 | 14,133 |
Airports of Thailand PCL, foreign registered1 | 5,250,000 | 10,932 |
American Funds Insurance Series — International Growth and Income Fund — Page 46 of 171
Common stocks Industrials (continued) | Shares | Value (000) |
Capita PLC1 | 1,806,000 | $9,764 |
Rolls-Royce Holdings PLC1,2 | 838,400 | 9,542 |
CK Hutchison Holdings Ltd.1 | 423,348 | 5,315 |
Komatsu Ltd.1 | 143,000 | 5,180 |
ALD SA1,2 | 312,000 | 4,827 |
International Container Terminal Services, Inc.1 | 1,000,000 | 2,112 |
122,482 | ||
Utilities 8.02% | ||
Ørsted AS1 | 497,000 | 27,077 |
EDP - Energias de Portugal, SA1 | 6,947,820 | 24,049 |
Korea Electric Power Corp.1 | 346,800 | 12,358 |
Power Assets Holdings Ltd.1 | 1,313,000 | 11,081 |
CK Infrastructure Holdings Ltd.1 | 1,282,000 | 11,006 |
Engie SA1 | 498,000 | 8,556 |
Iberdrola, SA, non-registered shares1 | 1,052,000 | 8,141 |
ENN Energy Holdings Ltd.1 | 858,000 | 6,088 |
Red Eléctrica de Corporación, SA1 | 185,600 | 4,162 |
National Grid PLC1 | 345,970 | 4,064 |
SSE PLC1 | 40,943 | 729 |
117,311 | ||
Information technology 7.86% | ||
Samsung Electronics Co., Ltd.1 | 14,996 | 35,628 |
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 3,840,000 | 29,507 |
ASML Holding NV1 | 68,600 | 11,901 |
Flex Ltd.2 | 647,500 | 11,648 |
Alibaba Group Holding Ltd. (ADR)2 | 42,600 | 7,345 |
Yandex NV, Class A2 | 213,000 | 6,976 |
Rightmove PLC1 | 107,700 | 6,541 |
AAC Technologies Holdings Inc.1 | 299,000 | 5,318 |
114,864 | ||
Health care 7.72% | ||
Novartis AG1 | 341,145 | 28,841 |
Hikma Pharmaceuticals PLC1 | 1,317,700 | 20,164 |
Fresenius SE & Co. KGaA1 | 165,000 | 12,847 |
Teva Pharmaceutical Industries Ltd. (ADR) | 662,000 | 12,545 |
Daiichi Sankyo Co., Ltd.1 | 451,900 | 11,770 |
Takeda Pharmaceutical Co. Ltd.1 | 169,200 | 9,579 |
Merck KGaA1 | 63,950 | 6,887 |
ConvaTec Group PLC1 | 1,515,000 | 4,187 |
Grifols, SA, Class B, preferred nonvoting, non-registered shares1 | 143,479 | 3,292 |
WuXi Biologics (Cayman) Inc.1,2 | 495,200 | 2,773 |
112,885 | ||
Consumer discretionary 7.36% | ||
Toyota Motor Corp.1 | 226,000 | 14,472 |
LVMH Moët Hennessy-Louis Vuitton SE1 | 48,000 | 14,100 |
Naspers Ltd., Class N1 | 41,000 | 11,424 |
ProSiebenSat.1 Media SE1 | 259,300 | 8,928 |
Ctrip.com International, Ltd. (ADR)2 | 202,200 | 8,917 |
Galaxy Entertainment Group Ltd.1 | 1,100,000 | 8,796 |
NEXT PLC1 | 131,000 | 8,021 |
Kering SA1 | 16,600 | 7,825 |
American Funds Insurance Series — International Growth and Income Fund — Page 47 of 171
Common stocks Consumer discretionary (continued) | Shares | Value (000) |
Inchcape PLC1 | 589,000 | $6,210 |
Sands China Ltd.1 | 972,000 | 5,003 |
Hyundai Motor Co.1 | 28,300 | 4,123 |
Paddy Power Betfair PLC1 | 32,000 | 3,796 |
Hyundai Mobis Co., Ltd.1 | 13,875 | 3,411 |
RTL Group SA, non-registered shares1 | 32,100 | 2,578 |
107,604 | ||
Real estate 6.09% | ||
CK Asset Holdings Ltd.1 | 3,833,348 | 33,507 |
Sun Hung Kai Properties Ltd.1 | 1,760,000 | 29,318 |
Daito Trust Construction Co., Ltd.1 | 95,500 | 19,453 |
Japan Real Estate Investment Corp. REIT1 | 1,432 | 6,799 |
89,077 | ||
Energy 5.53% | ||
Royal Dutch Shell PLC, Class A1 | 1,780,359 | 59,601 |
TOTAL SA1 | 297,739 | 16,428 |
Canadian Natural Resources, Ltd. | 133,300 | 4,763 |
80,792 | ||
Materials 5.03% | ||
Rio Tinto PLC1 | 475,800 | 25,111 |
Yara International ASA1 | 343,000 | 15,700 |
Vale SA, ordinary nominative (ADR) | 873,111 | 10,678 |
Akzo Nobel NV1 | 105,700 | 9,246 |
Air Liquide SA, non-registered shares1 | 47,000 | 5,911 |
Norsk Hydro ASA1 | 576,000 | 4,355 |
Fortescue Metals Group Ltd.1 | 645,000 | 2,451 |
73,452 | ||
Telecommunication services 2.96% | ||
BT Group PLC1 | 5,623,761 | 20,591 |
Nippon Telegraph and Telephone Corp.1 | 409,800 | 19,283 |
Intouch Holdings PCL, foreign registered1 | 1,983,000 | 3,419 |
43,293 | ||
Total common stocks (cost: $1,140,729,000) | 1,330,205 | |
Bonds, notes & other debt instruments 2.52% Corporate bonds & notes 1.26% Materials 0.45% | Principal amount (000) | |
FMG Resources 9.75% 20224 | $5,900 | 6,543 |
Energy 0.42% | ||
Petróleos Mexicanos 6.875% 2026 | 3,617 | 4,110 |
Petróleos Mexicanos 5.50% 2044 | 491 | 453 |
Petróleos Mexicanos 5.625% 2046 | 700 | 650 |
Petróleos Mexicanos 6.75% 2047 | 978 | 1,023 |
6,236 |
American Funds Insurance Series — International Growth and Income Fund — Page 48 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Health care 0.39% | Principal amount (000) | Value (000) |
Teva Pharmaceutical Finance Company BV 3.15% 2026 | $1,060 | $876 |
Teva Pharmaceutical Finance Company BV 4.10% 2046 | 1,160 | 886 |
Valeant Pharmaceuticals International, Inc. 6.375% 20204 | 2,217 | 2,245 |
Valeant Pharmaceuticals International, Inc. 6.125% 20254 | 1,865 | 1,713 |
5,720 | ||
Total corporate bonds & notes | 18,499 | |
Bonds & notes of governments & government agencies outside the U.S. 1.23% | ||
Brazil (Federative Republic of) 10.00% 2025 | BRL22,000 | 6,632 |
Brazil (Federative Republic of) 10.00% 2027 | 3,500 | 1,042 |
Colombia (Republic of), Series B, 7.50% 2026 | COP6,736,400 | 2,416 |
Portuguese Republic 4.125% 2027 | €2,600 | 3,706 |
Portuguese Republic 3.875% 2030 | 3,010 | 4,197 |
17,993 | ||
U.S. Treasury bonds & notes 0.03% U.S. Treasury 0.03% | ||
U.S. Treasury 0.875% 2018 | $420 | 419 |
Total U.S. Treasury bonds & notes | 419 | |
Total bonds, notes & other debt instruments (cost: $33,615,000) | 36,911 | |
Short-term securities 6.39% | ||
Bank of Tokyo-Mitsubishi UFJ, Ltd. 1.53% due 1/18/2018 | 21,000 | 20,982 |
Mizuho Bank, Ltd. 1.59% due 1/25/20184 | 5,500 | 5,493 |
U.S. Treasury Bills 1.50% due 6/28/2018 | 26,300 | 26,105 |
United Parcel Service Inc. 1.62% due 3/19/20184 | 20,000 | 19,933 |
Victory Receivables Corp. 1.43% due 1/16/20184 | 20,900 | 20,884 |
Total short-term securities (cost: $93,402,000) | 93,397 | |
Total investment securities 99.90% (cost: $1,267,746,000) | 1,460,513 | |
Other assets less liabilities 0.10% | 1,454 | |
Net assets 100.00% | $1,461,967 |
1 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $1,229,130,000, which represented 84.07% of the net assets of the fund. This amount includes $1,188,243,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Security did not produce income during the last 12 months. |
3 | Acquired through a private placement transaction exempt from registration under the Securities Act of 1933. May be subject to legal or contractual restrictions on resale. Further details on this holding appear below. |
4 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $61,360,000, which represented 4.20% of the net assets of the fund. |
Private placement security | Acquisition date | Cost (000) | Value (000) | Percent of net assets |
Axis Bank Ltd. | 12/18/2017 | $4,634 | $4,549 | .31% |
Key to abbreviations and symbol | ||
ADR = American Depositary Receipts | COP = Colombian pesos | |
BRL = Brazilian reais | € = Euros |
American Funds Insurance Series — International Growth and Income Fund — Page 49 of 171
Capital Income Builder®
Investment portfolio
December 31, 2017
Common stocks 68.87% Energy 10.19% | Shares | Value (000) |
Occidental Petroleum Corp. | 146,900 | $10,820 |
Schlumberger Ltd. | 119,800 | 8,073 |
Royal Dutch Shell PLC, Class B1 | 213,240 | 7,192 |
Royal Dutch Shell PLC, Class B (ADR) | 8,500 | 581 |
Royal Dutch Shell PLC, Class A1 | 101 | 3 |
Enbridge Inc. (CAD denominated) | 174,970 | 6,843 |
Enbridge Inc. (CAD denominated)1,2 | 12,969 | 497 |
Williams Companies, Inc. | 215,800 | 6,580 |
Kinder Morgan, Inc. | 359,000 | 6,487 |
Inter Pipeline Ltd. | 260,000 | 5,384 |
Helmerich & Payne, Inc. | 76,300 | 4,932 |
Exxon Mobil Corp. | 37,900 | 3,170 |
60,562 | ||
Financials 10.13% | ||
Wells Fargo & Co. | 124,600 | 7,559 |
CME Group Inc., Class A | 39,416 | 5,757 |
Sampo Oyj, Class A1 | 95,858 | 5,266 |
Zurich Insurance Group AG1 | 16,306 | 4,959 |
ABN AMRO Group NV, depository receipts1 | 141,555 | 4,555 |
HSBC Holdings PLC (GBP denominated)1 | 437,200 | 4,509 |
Intesa Sanpaolo SpA1 | 1,056,817 | 3,370 |
Standard Life Aberdeen PLC1 | 519,907 | 3,063 |
Invesco Ltd. | 76,400 | 2,792 |
Svenska Handelsbanken AB, Class A1 | 195,040 | 2,662 |
JPMorgan Chase & Co. | 23,300 | 2,492 |
Oversea-Chinese Banking Corp. Ltd.1 | 261,900 | 2,420 |
KBC Groep NV1 | 27,025 | 2,302 |
BNP Paribas SA1 | 30,300 | 2,260 |
Lloyds Banking Group PLC1 | 2,325,300 | 2,129 |
Skandinaviska Enskilda Banken AB, Class A1 | 169,016 | 1,980 |
Bank of China Ltd., Class H1 | 1,894,000 | 929 |
Union National Bank PJSC1 | 646,598 | 670 |
MONETA Money Bank, AS, non-registered shares1 | 137,053 | 530 |
60,204 | ||
Consumer staples 8.82% | ||
Diageo PLC1 | 259,500 | 9,497 |
Philip Morris International Inc. | 86,020 | 9,088 |
Coca-Cola Co. | 129,500 | 5,942 |
British American Tobacco PLC1 | 79,700 | 5,379 |
Imperial Brands PLC1 | 123,800 | 5,291 |
Altria Group, Inc. | 65,370 | 4,668 |
Reckitt Benckiser Group PLC1 | 36,100 | 3,372 |
Danone SA1 | 30,200 | 2,532 |
Japan Tobacco Inc.1 | 75,700 | 2,438 |
American Funds Insurance Series — Capital Income Builder — Page 50 of 171
Common stocks Consumer staples (continued) | Shares | Value (000) |
Nestlé SA1 | 26,616 | $2,287 |
Carlsberg A/S, Class B1 | 16,100 | 1,928 |
52,422 | ||
Information technology 8.46% | ||
Microsoft Corp. | 132,120 | 11,302 |
QUALCOMM Inc. | 172,400 | 11,037 |
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 1,005,800 | 7,729 |
Intel Corp. | 151,900 | 7,012 |
HP Inc. | 183,600 | 3,857 |
Vanguard International Semiconductor Corp.1 | 1,659,000 | 3,670 |
VTech Holdings Ltd.1 | 217,400 | 2,849 |
Delta Electronics, Inc.1 | 585,000 | 2,817 |
50,273 | ||
Consumer discretionary 6.27% | ||
Las Vegas Sands Corp. | 176,600 | 12,272 |
Greene King PLC1 | 948,000 | 7,101 |
Sands China Ltd.1 | 944,000 | 4,859 |
SES SA, Class A (FDR)1 | 233,286 | 3,635 |
Intercontinental Hotels Group PLC1 | 41,900 | 2,665 |
Starbucks Corp. | 38,200 | 2,194 |
Modern Times Group MTG AB, Class B1 | 41,372 | 1,739 |
Gannett Co., Inc. | 132,999 | 1,541 |
BCA Marketplace PLC1 | 460,000 | 1,267 |
37,273 | ||
Telecommunication services 5.93% | ||
Vodafone Group PLC1 | 4,255,100 | 13,442 |
HKT Trust and HKT Ltd., units1 | 4,775,340 | 6,090 |
Koninklijke KPN NV1 | 1,553,475 | 5,420 |
NTT DoCoMo, Inc.1 | 121,700 | 2,875 |
AT&T Inc. | 65,600 | 2,550 |
Verizon Communications Inc. | 47,650 | 2,522 |
Inmarsat PLC1 | 260,191 | 1,724 |
Singapore Telecommunications Ltd.1 | 239,800 | 640 |
35,263 | ||
Real estate 4.88% | ||
Crown Castle International Corp. REIT | 76,900 | 8,537 |
Link REIT1 | 690,500 | 6,398 |
Digital Realty Trust, Inc. REIT | 51,200 | 5,832 |
Iron Mountain Inc. REIT | 115,800 | 4,369 |
Nexity SA, Class A, non-registered shares1 | 65,289 | 3,886 |
29,022 | ||
Utilities 4.44% | ||
SSE PLC1 | 397,689 | 7,085 |
PG&E Corp. | 115,756 | 5,189 |
Enel SPA1 | 734,176 | 4,513 |
National Grid PLC1 | 357,100 | 4,195 |
Infratil Ltd.1 | 1,291,737 | 3,038 |
Iberdrola, SA, non-registered shares1 | 307,404 | 2,379 |
26,399 |
American Funds Insurance Series — Capital Income Builder — Page 51 of 171
Common stocks Health care 3.93% | Shares | Value (000) |
AstraZeneca PLC (ADR) | 113,500 | $3,939 |
AstraZeneca PLC1 | 39,300 | 2,697 |
Roche Holding AG, non-registered shares, nonvoting1 | 23,575 | 5,963 |
Gilead Sciences, Inc. | 59,200 | 4,241 |
Pfizer Inc. | 94,900 | 3,437 |
Johnson & Johnson | 22,000 | 3,074 |
23,351 | ||
Industrials 3.54% | ||
Airbus SE, non-registered shares1 | 82,392 | 8,182 |
Boeing Co. | 17,600 | 5,190 |
Lockheed Martin Corp. | 9,760 | 3,134 |
BAE Systems PLC1 | 278,100 | 2,139 |
Capita PLC1 | 294,400 | 1,592 |
Air New Zealand Ltd.1 | 361,960 | 815 |
21,052 | ||
Materials 2.06% | ||
DowDuPont Inc. | 84,800 | 6,040 |
Potash Corp. of Saskatchewan Inc. | 161,800 | 3,341 |
Givaudan SA1 | 1,253 | 2,890 |
12,271 | ||
Miscellaneous 0.22% | ||
Other common stocks in initial period of acquisition | 1,290 | |
Total common stocks (cost: $377,538,000) | 409,382 | |
Convertible stocks 2.52% Real estate 2.52% | ||
American Tower Corp., Series B, 5.50% depository share, convertible preferred 2018 | 100,400 | 12,625 |
Crown Castle International Corp., Series A, 7.00% convertible preferred 2020 | 2,231 | 2,342 |
Total convertible stocks (cost: $14,048,000) | 14,967 | |
Bonds, notes & other debt instruments 23.70% U.S. Treasury bonds & notes 14.63% U.S. Treasury 13.42% | Principal amount (000) | |
U.S. Treasury 1.875% 2020 | $ 78 | 78 |
U.S. Treasury 8.00% 2021 | 5,500 | 6,704 |
U.S. Treasury 8.125% 2021 | 8,200 | 9,933 |
U.S. Treasury 1.625% 2022 | 6,050 | 5,901 |
U.S. Treasury 1.75% 2022 | 5,015 | 4,925 |
U.S. Treasury 1.875% 2022 | 9,000 | 8,879 |
U.S. Treasury 1.875% 2022 | 1,000 | 986 |
U.S. Treasury 2.00% 2022 | 15,000 | 14,872 |
U.S. Treasury 2.00% 2022 | 3,000 | 2,973 |
U.S. Treasury 2.00% 2025 | 9,400 | 9,175 |
U.S. Treasury 2.00% 2026 | 3,500 | 3,390 |
U.S. Treasury 2.25% 2027 | 3,700 | 3,650 |
U.S. Treasury 2.875% 2045 | 4,500 | 4,616 |
U.S. Treasury 0% 2047 | 8,300 | 3,657 |
79,739 |
American Funds Insurance Series — Capital Income Builder — Page 52 of 171
Bonds, notes & other debt instruments U.S. Treasury bonds & notes (continued) U.S. Treasury inflation-protected securities 1.21% | Principal amount (000) | Value (000) |
U.S. Treasury Inflation-Protected Security 0.375% 20253 | $1,144 | $1,146 |
U.S. Treasury Inflation-Protected Security 0.625% 20263 | 1,973 | 2,004 |
U.S. Treasury Inflation-Protected Security 0.375% 20273 | 4,085 | 4,056 |
7,206 | ||
Total U.S. Treasury bonds & notes | 86,945 | |
Mortgage-backed obligations 4.78% Federal agency mortgage-backed obligations 4.70% | ||
Fannie Mae 4.00% 20464 | 1,171 | 1,226 |
Fannie Mae 4.00% 20474 | 13,899 | 14,559 |
Fannie Mae 4.00% 20474 | 872 | 914 |
Fannie Mae 4.50% 20484,5 | 6,270 | 6,664 |
Freddie Mac 2.50% 20324 | 110 | 110 |
Freddie Mac 2.50% 20334 | 153 | 153 |
Freddie Mac 4.00% 20474 | 476 | 498 |
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-2, Class HA, 2.00% 20564 | 562 | 558 |
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-1, Class HA, 2.00% 20564 | 277 | 276 |
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-2, Class MA, 3.00% 20564 | 519 | 519 |
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-4, Class HT, 2.25% 20574 | 230 | 229 |
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-4, Class MT, 3.50% 20574 | 175 | 179 |
Government National Mortgage Assn. 4.50% 20454 | 359 | 380 |
Government National Mortgage Assn. 4.50% 20454 | 231 | 244 |
Government National Mortgage Assn. 4.50% 20484,5 | 475 | 498 |
Government National Mortgage Assn. 5.637% 20594 | 4 | 4 |
Government National Mortgage Assn. 4.812% 20604 | 25 | 25 |
Government National Mortgage Assn. 5.46% 20604 | 64 | 66 |
Government National Mortgage Assn. 4.661% 20614 | 89 | 91 |
Government National Mortgage Assn. 4.801% 20614 | 55 | 55 |
Government National Mortgage Assn. 6.87% 20614 | 12 | 13 |
Government National Mortgage Assn. 4.566% 20624 | 51 | 53 |
Government National Mortgage Assn. 4.633% 20624 | 316 | 324 |
Government National Mortgage Assn. 4.307% 20634 | 123 | 127 |
Government National Mortgage Assn. 4.479% 20634 | 55 | 57 |
Government National Mortgage Assn. 4.565% 20634 | 145 | 150 |
27,972 | ||
Collateralized mortgage-backed (privately originated) 0.07% | ||
Finance of America Structured Securities Trust, Series 2017-HB1, Class A, 2.3207% 20272,4 | 374 | 377 |
Nationstar HECM Loan Trust, Series 2017-1A, Class A, 1.968 % 20271,2,4 | 56 | 56 |
433 | ||
Commercial mortgage-backed securities 0.01% | ||
Citigroup Commercial Mortgage Trust, Series 2008-C7, Class A1A, 6.105% 20494,6 | 28 | 28 |
Total mortgage-backed obligations | 28,433 | |
Corporate bonds & notes 3.62% Financials 1.19% | ||
Bank of America Corp. 3.004% 20232 | 325 | 326 |
Bank of America Corp. 4.10% 2023 | 1,000 | 1,063 |
Bank of America Corp. 3.419% 20282 | 1,106 | 1,107 |
BB&T Corp. 6.85% 2019 | 100 | 106 |
Berkshire Hathaway Inc. 4.25% 2021 | 100 | 106 |
BNP Paribas 5.00% 2021 | 300 | 323 |
American Funds Insurance Series — Capital Income Builder — Page 53 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Financials (continued) | Principal amount (000) | Value (000) |
BPCE SA group 4.00% 2024 | $1,000 | $1,058 |
Citigroup Inc. 4.50% 2022 | 230 | 245 |
Goldman Sachs Group, Inc. 5.25% 2021 | 500 | 542 |
Goldman Sachs Group, Inc., Series D, 6.00% 2020 | 300 | 324 |
JPMorgan Chase & Co. 6.30% 2019 | 200 | 211 |
JPMorgan Chase & Co. 4.25% 2020 | 300 | 315 |
JPMorgan Chase & Co. 3.54% 2028 | 75 | 76 |
Morgan Stanley 7.30% 2019 | 200 | 213 |
Morgan Stanley 5.50% 2020 | 300 | 322 |
US Bancorp. 2.00% 2020 | 250 | 249 |
US Bancorp. 2.375% 2026 | 65 | 61 |
Wells Fargo & Co. 4.60% 2021 | 300 | 319 |
Wells Fargo & Co. 3.584% 2028 | 85 | 87 |
7,053 | ||
Energy 0.52% | ||
Anadarko Petroleum Corp. 4.85% 2021 | 500 | 528 |
Anadarko Petroleum Corp. 6.60% 2046 | 65 | 84 |
Andeavor Logistics LP 4.25% 2027 | 100 | 101 |
Baker Hughes, a GE Co. 4.08% 20472 | 150 | 153 |
Canadian Natural Resources Ltd. 4.95% 2047 | 75 | 84 |
Cenovus Energy Inc. 4.25% 2027 | 105 | 105 |
Cenovus Energy Inc. 5.40% 2047 | 65 | 69 |
Enbridge Energy Partners, LP 7.375% 2045 | 225 | 300 |
Energy Transfer Partners, LP 4.00% 2027 | 215 | 211 |
Energy Transfer Partners, LP 5.40% 2047 | 125 | 127 |
EQT Corp. 3.90% 2027 | 200 | 199 |
Halliburton Co. 5.00% 2045 | 80 | 92 |
Kinder Morgan, Inc. 5.55% 2045 | 200 | 219 |
Marathon Oil Corp. 4.40% 2027 | 5 | 5 |
MPLX LP 5.20% 2047 | 35 | 39 |
Phillips 66 Partners LP 4.90% 2046 | 50 | 53 |
Sabine Pass Liquefaction, LLC 5.625% 2021 | 275 | 295 |
Schlumberger BV 3.625% 20222 | 200 | 206 |
Williams Partners LP 4.125% 2020 | 200 | 208 |
3,078 | ||
Utilities 0.46% | ||
EDP Finance BV 6.00% 20182 | 400 | 401 |
Enel Finance International SA 3.50% 20282 | 200 | 196 |
Entergy Corp. 5.125% 2020 | 200 | 211 |
Entergy Corp. 4.00% 2022 | 500 | 522 |
FirstEnergy Corp. 3.90% 2027 | 175 | 180 |
FirstEnergy Corp. 3.50% 20282 | 60 | 60 |
Nevada Power Co., General and Refunding Mortgage Notes, Series V, 7.125% 2019 | 100 | 106 |
NV Energy, Inc 6.25% 2020 | 200 | 220 |
Pacific Gas and Electric Co. 3.30% 20272 | 200 | 198 |
Progress Energy, Inc. 7.05% 2019 | 100 | 106 |
Public Service Electric and Gas Co. 3.60% 2047 | 115 | 118 |
SCANA Corp. 6.25% 2020 | 400 | 425 |
2,743 |
American Funds Insurance Series — Capital Income Builder — Page 54 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Consumer staples 0.35% | Principal amount (000) | Value (000) |
Altria Group, Inc. 9.25% 2019 | $200 | $222 |
Anheuser-Busch InBev NV 4.90% 2046 | 170 | 198 |
British American Tobacco PLC 3.557% 20272 | 600 | 602 |
Constellation Brands, Inc. 6.00% 2022 | 600 | 675 |
Molson Coors Brewing Co. 4.20% 2046 | 65 | 66 |
Reynolds American Inc. 6.875% 2020 | 300 | 329 |
2,092 | ||
Telecommunication services 0.31% | ||
AT&T Inc. 5.15% 20462 | 225 | 231 |
AT&T Inc. 5.15% 2050 | 70 | 70 |
Deutsche Telekom International Finance BV 6.75% 2018 | 450 | 463 |
Deutsche Telekom International Finance BV 6.00% 2019 | 450 | 475 |
Deutsche Telekom International Finance BV 3.60% 20272 | 150 | 151 |
Verizon Communications Inc. 4.60% 2021 | 300 | 319 |
Verizon Communications Inc. 4.522% 2048 | 150 | 148 |
1,857 | ||
Health care 0.30% | ||
Abbott Laboratories 3.40% 2023 | 290 | 295 |
AbbVie Inc. 4.45% 2046 | 125 | 136 |
Allergan PLC 4.75% 2045 | 50 | 53 |
Becton, Dickinson and Co. 3.70% 2027 | 220 | 222 |
Boston Scientific Corp. 6.00% 2020 | 200 | 214 |
McKesson Corp. 7.50% 2019 | 100 | 106 |
Medtronic, Inc. 4.125% 2021 | 200 | 210 |
Teva Pharmaceutical Finance Company BV 3.15% 2026 | 425 | 351 |
Thermo Fisher Scientific Inc. 4.70% 2020 | 200 | 210 |
1,797 | ||
Consumer discretionary 0.28% | ||
Amazon.com, Inc. 4.05% 20472 | 95 | 103 |
Bayerische Motoren Werke AG 2.80% 20262 | 75 | 73 |
CCO Holdings LLC and CCO Holdings Capital Corp. 4.20% 2028 | 310 | 308 |
Comcast Corp. 5.15% 2020 | 100 | 106 |
Comcast Corp. 4.00% 2047 | 100 | 105 |
Ford Motor Credit Co. 8.125% 2020 | 300 | 332 |
General Motors Financial Co. 4.375% 2021 | 400 | 421 |
Time Warner Inc. 4.75% 2021 | 200 | 213 |
1,661 | ||
Industrials 0.09% | ||
3M Co. 2.25% 2023 | 110 | 109 |
General Electric Capital Corp. 5.50% 2020 | 150 | 160 |
Johnson Controls, Inc. 5.00% 2020 | 200 | 211 |
United Technologies Corp. 3.125% 2027 | 75 | 75 |
555 | ||
Information technology 0.09% | ||
Microsoft Corp. 4.00% 2021 | 500 | 525 |
American Funds Insurance Series — Capital Income Builder — Page 55 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Real estate 0.03% | Principal amount (000) | Value (000) |
Hospitality Properties Trust 3.95% 2028 | $70 | $68 |
UDR, Inc. 3.50% 2028 | 85 | 85 |
153 | ||
Total corporate bonds & notes | 21,514 | |
Asset-backed obligations 0.67% | ||
Chase Issuance Trust, Series 2015-A2, Class A, 1.59% 20204 | 3,000 | 3,000 |
CPS Auto Receivables Trust, Series 2015-A, Class A, 1.53% 20192,4 | 4 | 4 |
CPS Auto Receivables Trust, Series 2016-B, Class A, 2.07% 20192,4 | 96 | 96 |
Santander Drive Auto Receivables Trust, Series 2015-2, Class B, 1.83% 20204 | 18 | 18 |
Santander Drive Auto Receivables Trust, Series 2014-1, Class C, 2.36% 20204 | 159 | 159 |
Westlake Automobile Receivables Trust, Series 2017-2A, Class A2A, 1.80% 20202,4 | 705 | 704 |
�� | 3,981 | |
Total bonds, notes & other debt instruments (cost: $141,713,000) | 140,873 | |
Short-term securities 5.71% | ||
Cisco Systems, Inc. 1.23%–1.60% due 1/10/2018–3/6/20182 | 13,100 | 13,081 |
Federal Home Loan Bank 1.14% due 1/26/2018 | 8,500 | 8,493 |
General Electric Co. 1.42% due 1/2/2018 | 12,400 | 12,398 |
Total short-term securities (cost: $33,975,000) | 33,972 | |
Total investment securities 100.80% (cost: $567,274,000) | 599,194 | |
Other assets less liabilities (0.80)% | (4,737) | |
Net assets 100.00% | $594,457 |
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.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous,“ was $207,660,000, which represented 34.93% of the net assets of the fund. This amount includes $207,107,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Acquired 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 $18,622,000, which represented 3.13% of the net assets of the fund. |
3 | Index-linked bond whose principal amount moves with a government price index. |
4 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
5 | Purchased on a TBA basis. |
6 | Coupon rate may change periodically. |
Key to abbreviations |
ADR = American Depositary Receipts |
CAD = Canadian dollars |
FDR = Fiduciary Depositary Receipts |
GBP = British pounds |
TBA = To-be-announced |
American Funds Insurance Series — Capital Income Builder — Page 56 of 171
Asset Allocation Fund
Investment portfolio
December 31, 2017
Common stocks 64.31% Information technology 17.88% | Shares | Value (000) |
Microsoft Corp. | 10,520,000 | $899,881 |
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 15,001,000 | 594,790 |
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 8,600,000 | 66,083 |
ASML Holding NV (New York registered) | 2,502,100 | 434,915 |
VeriSign, Inc.2 | 3,140,000 | 359,342 |
Intel Corp. | 6,945,000 | 320,581 |
Broadcom Ltd. | 1,245,000 | 319,840 |
Facebook, Inc., Class A2 | 1,385,000 | 244,397 |
Alphabet Inc., Class C2 | 133,985 | 140,202 |
Alphabet Inc., Class A2 | 83,000 | 87,432 |
Intuit Inc. | 1,100,000 | 173,558 |
Western Digital Corp. | 2,100,000 | 167,013 |
AAC Technologies Holdings Inc.1 | 8,000,000 | 142,276 |
Symantec Corp. | 5,000,000 | 140,300 |
Visa Inc., Class A | 1,150,200 | 131,146 |
Apple Inc. | 750,000 | 126,922 |
Amphenol Corp., Class A | 1,300,000 | 114,140 |
RingCentral, Inc., Class A2 | 1,415,000 | 68,486 |
Fiserv, Inc.2 | 350,000 | 45,895 |
MasterCard Inc., Class A | 57,000 | 8,628 |
Corporate Risk Holdings I, Inc.1,2,3,4 | 168,812 | 2,985 |
Corporate Risk Holdings Corp.1,2,3,4 | 854 | — |
4,588,812 | ||
Health care 9.26% | ||
UnitedHealth Group Inc. | 2,542,000 | 560,409 |
Johnson & Johnson | 2,850,000 | 398,202 |
Aetna Inc. | 1,600,000 | 288,624 |
Humana Inc. | 965,000 | 239,388 |
Express Scripts Holding Co.2 | 3,100,000 | 231,384 |
Merck & Co., Inc. | 2,170,300 | 122,123 |
Molina Healthcare, Inc.2 | 1,500,000 | 115,020 |
Gilead Sciences, Inc. | 1,500,000 | 107,460 |
Regeneron Pharmaceuticals, Inc.2 | 220,467 | 82,887 |
Incyte Corp.2 | 764,450 | 72,401 |
Bristol-Myers Squibb Co. | 978,000 | 59,932 |
AbbVie Inc. | 575,000 | 55,608 |
AstraZeneca PLC (ADR) | 1,251,300 | 43,420 |
Rotech Healthcare Inc.1,2,3,4 | 184,138 | 368 |
2,377,226 | ||
Financials 9.12% | ||
Chubb Ltd. | 2,410,000 | 352,173 |
JPMorgan Chase & Co. | 2,600,000 | 278,044 |
Arch Capital Group Ltd.2 | 2,632,000 | 238,907 |
First Republic Bank | 2,480,000 | 214,867 |
American Funds Insurance Series — Asset Allocation Fund — Page 57 of 171
Common stocks Financials (continued) | Shares | Value (000) |
Wells Fargo & Co. | 3,406,400 | $206,666 |
Bank of America Corp. | 7,000,000 | 206,640 |
Citigroup Inc. | 2,750,000 | 204,628 |
BNP Paribas SA1 | 1,500,000 | 111,861 |
PNC Financial Services Group, Inc. | 708,000 | 102,157 |
Capital One Financial Corp. | 1,000,000 | 99,580 |
Oaktree Capital Group, LLC | 2,335,000 | 98,304 |
Goldman Sachs Group, Inc. | 275,000 | 70,059 |
Blackstone Group LP | 1,510,000 | 48,350 |
RenaissanceRe Holdings Ltd. | 329,500 | 41,382 |
SunTrust Banks, Inc. | 510,000 | 32,941 |
Berkshire Hathaway Inc., Class A2 | 84 | 24,998 |
HDFC Bank Ltd.1 | 297,000 | 8,783 |
2,340,340 | ||
Consumer discretionary 6.76% | ||
Comcast Corp., Class A | 9,350,000 | 374,467 |
Home Depot, Inc. | 1,500,000 | 284,295 |
Newell Brands Inc. | 7,168,500 | 221,507 |
Amazon.com, Inc.2 | 160,225 | 187,378 |
VF Corp. | 2,250,000 | 166,500 |
General Motors Co. | 3,500,000 | 143,465 |
NIKE, Inc., Class B | 1,980,000 | 123,849 |
Starbucks Corp. | 1,339,700 | 76,939 |
CBS Corp., Class B | 1,000,000 | 59,000 |
Charter Communications, Inc., Class A2 | 138,126 | 46,405 |
Netflix, Inc.2 | 181,000 | 34,745 |
McDonald’s Corp. | 95,000 | 16,351 |
1,734,901 | ||
Energy 5.61% | ||
Noble Energy, Inc. | 10,500,000 | 305,970 |
Weatherford International PLC2,5 | 56,000,000 | 233,520 |
Royal Dutch Shell PLC, Class B (ADR) | 2,412,000 | 164,716 |
Royal Dutch Shell PLC, Class A (ADR) | 10,061 | 671 |
Chevron Corp. | 1,279,750 | 160,212 |
Suncor Energy Inc. | 4,000,000 | 146,858 |
Enbridge Inc. | 2,242,200 | 87,693 |
Enbridge Inc. (CAD denominated)1,6 | 52,155 | 1,999 |
Enbridge Inc. (CAD denominated) | 47,742 | 1,867 |
Cabot Oil & Gas Corp. | 3,000,000 | 85,800 |
Concho Resources Inc.2 | 500,000 | 75,110 |
Halliburton Co. | 1,500,000 | 73,305 |
Schlumberger Ltd. | 660,000 | 44,477 |
Extraction Oil & Gas, Inc.2 | 3,000,000 | 42,930 |
ConocoPhillips | 250,000 | 13,722 |
1,438,850 | ||
Consumer staples 4.47% | ||
Nestlé SA1 | 2,908,230 | 249,910 |
Nestlé SA (ADR) | 900,000 | 77,373 |
Philip Morris International Inc. | 2,375,000 | 250,919 |
Associated British Foods PLC1 | 4,600,000 | 174,876 |
British American Tobacco PLC1 | 2,357,400 | 159,102 |
Altria Group, Inc. | 1,400,000 | 99,974 |
American Funds Insurance Series — Asset Allocation Fund — Page 58 of 171
Common stocks Consumer staples (continued) | Shares | Value (000) |
Colgate-Palmolive Co. | 1,000,000 | $75,450 |
Mondelez International, Inc. | 1,025,000 | 43,870 |
Coca-Cola Co. | 307,700 | 14,117 |
1,145,591 | ||
Materials 3.59% | ||
DowDuPont Inc. | 5,877,000 | 418,560 |
LyondellBasell Industries NV | 2,200,000 | 242,704 |
Nucor Corp. | 1,750,000 | 111,265 |
Royal Gold, Inc. | 695,000 | 57,074 |
Praxair, Inc. | 355,000 | 54,911 |
Franco-Nevada Corp. | 290,918 | 23,250 |
Newmont Mining Corp. | 380,000 | 14,258 |
922,022 | ||
Industrials 3.38% | ||
Lockheed Martin Corp. | 1,262,000 | 405,165 |
Boeing Co. | 1,239,000 | 365,393 |
IDEX Corp. | 406,100 | 53,593 |
TransDigm Group Inc. | 75,000 | 20,597 |
Waste Management, Inc. | 214,000 | 18,468 |
CEVA Group PLC1,2,4 | 6,143 | 2,948 |
Atrium Corp.1,2,3,6 | 535 | 16 |
866,180 | ||
Real estate 1.28% | ||
Simon Property Group, Inc. REIT | 700,000 | 120,218 |
Crown Castle International Corp. REIT | 705,000 | 78,262 |
American Tower Corp. REIT | 479,100 | 68,353 |
Public Storage REIT | 300,000 | 62,700 |
329,533 | ||
Telecommunication services 0.39% | ||
AT&T Inc. | 2,000,000 | 77,760 |
Verizon Communications Inc. | 400,000 | 21,172 |
NII Holdings, Inc.2 | 690,145 | 293 |
99,225 | ||
Miscellaneous 2.57% | ||
Other common stocks in initial period of acquisition | 660,297 | |
Total common stocks (cost: $11,282,199,000) | 16,502,977 | |
Rights & warrants 0.00% Industrials 0.00% | ||
Associated Materials, LLC, warrants, expire 20231,2,3 | 71,030 | — |
Total rights & warrants (cost: $0) | — |
American Funds Insurance Series — Asset Allocation Fund — Page 59 of 171
Convertible stocks 0.05% Industrials 0.05% | Shares | Value (000) |
CEVA Group PLC, Series A-1, convertible preferred, (3-month USD-LIBOR + 3.00%) 4.731%1,2,4 | 6,267 | $4,183 |
CEVA Group PLC, Series A-2, convertible preferred, (3-month USD-LIBOR + 2.00%) 3.731%1,2,4 | 5,998 | 2,879 |
Associated Materials, LLC, 14.00% convertible preferred 20201,3 | 5,000 | 5,725 |
Total convertible stocks (cost: $19,828,000) | 12,787 | |
Bonds, notes & other debt instruments 26.66% U.S. Treasury bonds & notes 11.42% U.S. Treasury 9.31% | Principal amount (000) | |
U.S. Treasury 0.625% 2018 | $ 25,930 | 25,864 |
U.S. Treasury 0.75% 2018 | 39,002 | 38,942 |
U.S. Treasury 3.50% 2018 | 20,000 | 20,052 |
U.S. Treasury 0.875% 2019 | 40,000 | 39,334 |
U.S. Treasury 1.125% 2019 | 35,000 | 34,714 |
U.S. Treasury 1.25% 2019 | 7,500 | 7,445 |
U.S. Treasury 1.25% 2019 | 5,000 | 4,961 |
U.S. Treasury 1.375% 2019 | 4,500 | 4,456 |
U.S. Treasury 1.50% 2019 | 400,000 | 398,592 |
U.S. Treasury 1.50% 2019 | 59,825 | 59,397 |
U.S. Treasury 1.75% 2019 | 21,800 | 21,756 |
U.S. Treasury 1.25% 20207 | 318,117 | 313,985 |
U.S. Treasury 1.25% 2020 | 93,000 | 91,753 |
U.S. Treasury 1.375% 2020 | 55,000 | 54,403 |
U.S. Treasury 1.375% 2020 | 21,500 | 21,253 |
U.S. Treasury 1.50% 2020 | 500 | 495 |
U.S. Treasury 1.625% 2020 | 125,000 | 124,041 |
U.S. Treasury 1.625% 2020 | 10,000 | 9,941 |
U.S. Treasury 1.125% 2021 | 42,000 | 40,580 |
U.S. Treasury 1.125% 2021 | 10,000 | 9,673 |
U.S. Treasury 1.375% 2021 | 49,410 | 48,472 |
U.S. Treasury 1.375% 2021 | 23,500 | 22,975 |
U.S. Treasury 1.375% 2021 | 13,500 | 13,210 |
U.S. Treasury 1.75% 2021 | 9,500 | 9,369 |
U.S. Treasury 2.25% 2021 | 9,730 | 9,790 |
U.S. Treasury 1.75% 2022 | 31,750 | 31,181 |
U.S. Treasury 1.875% 2022 | 100,000 | 98,922 |
U.S. Treasury 1.875% 2022 | 20,500 | 20,225 |
U.S. Treasury 1.875% 2022 | 8,000 | 7,885 |
U.S. Treasury 2.00% 2022 | 25,000 | 24,776 |
U.S. Treasury 1.375% 2023 | 8,000 | 7,621 |
U.S. Treasury 1.375% 2023 | 5,000 | 4,767 |
U.S. Treasury 1.625% 2023 | 5,000 | 4,844 |
U.S. Treasury 2.125% 2023 | 15,250 | 15,128 |
U.S. Treasury 2.25% 2023 | 5,000 | 4,991 |
U.S. Treasury 2.00% 2024 | 12,000 | 11,785 |
U.S. Treasury 2.00% 2024 | 7,500 | 7,357 |
U.S. Treasury 2.125% 2024 | 52,500 | 51,986 |
U.S. Treasury 2.125% 2024 | 15,500 | 15,318 |
U.S. Treasury 2.125% 2024 | 10,250 | 10,122 |
U.S. Treasury 2.125% 2024 | 10,000 | 9,899 |
U.S. Treasury 2.25% 2024 | 15,500 | 15,429 |
U.S. Treasury 2.25% 2024 | 5,000 | 4,989 |
U.S. Treasury 2.375% 2024 | 70,000 | 70,235 |
U.S. Treasury 2.50% 2024 | 700 | 708 |
American Funds Insurance Series — Asset Allocation Fund — Page 60 of 171
Bonds, notes & other debt instruments U.S. Treasury bonds & notes (continued) U.S. Treasury (continued) | Principal amount (000) | Value (000) |
U.S. Treasury 2.00% 2025 | $44,800 | $43,728 |
U.S. Treasury 1.50% 2026 | 500 | 466 |
U.S. Treasury 1.625% 2026 | 7,000 | 6,616 |
U.S. Treasury 1.625% 2026 | 1,500 | 1,415 |
U.S. Treasury 2.00% 2026 | 8,000 | 7,748 |
U.S. Treasury 2.25% 2027 | 126,075 | 124,536 |
U.S. Treasury 2.25% 2027 | 47,000 | 46,361 |
U.S. Treasury 2.375% 2027 | 880 | 878 |
U.S. Treasury 4.75% 2041 | 15,000 | 20,370 |
U.S. Treasury 2.50% 2046 | 5,000 | 4,760 |
U.S. Treasury 2.875% 2046 | 147,158 | 150,997 |
U.S. Treasury 2.75% 2047 | 33,400 | 33,447 |
U.S. Treasury 3.00% 2047 | 70,000 | 73,620 |
U.S. Treasury 3.00% 2047 | 28,460 | 29,927 |
2,388,490 | ||
U.S. Treasury inflation-protected securities 2.11% | ||
U.S. Treasury Inflation-Protected Security 0.125% 20218 | 38,924 | 38,767 |
U.S. Treasury Inflation-Protected Security 0.125% 20248 | 675 | 667 |
U.S. Treasury Inflation-Protected Security 0.625% 20248 | 215,862 | 219,605 |
U.S. Treasury Inflation-Protected Security 0.25% 20258 | 1,661 | 1,646 |
U.S. Treasury Inflation-Protected Security 0.375% 20258 | 15,967 | 15,992 |
U.S. Treasury Inflation-Protected Security 2.375% 20258 | 196 | 224 |
U.S. Treasury Inflation-Protected Security 0.125% 20268 | 20,581 | 20,113 |
U.S. Treasury Inflation-Protected Security 0.625% 20268 | 23,124 | 23,492 |
U.S. Treasury Inflation-Protected Security 0.375% 20278 | 18,125 | 17,996 |
U.S. Treasury Inflation-Protected Security 0.375% 20278 | 5,042 | 5,016 |
U.S. Treasury Inflation-Protected Security 0.75% 20428 | 18,765 | 18,954 |
U.S. Treasury Inflation-Protected Security 1.375% 20448 | 135,765 | 156,816 |
U.S. Treasury Inflation-Protected Security 1.00% 20468 | 5,205 | 5,560 |
U.S. Treasury Inflation-Protected Security 0.875% 20478 | 15,328 | 15,928 |
540,776 | ||
Total U.S. Treasury bonds & notes | 2,929,266 | |
Corporate bonds & notes 8.93% Energy 1.77% | ||
American Energy (Marcellus), Term Loan A, (3-month USD-LIBOR + 7.50%) 8.960% 20219,10,11,12 | 5,189 | 208 |
American Energy (Marcellus), Term Loan B, (3-month USD-LIBOR + 4.25%) 5.710% 20209,10,11,12 | 6,933 | 5,130 |
American Energy (Permian Basin) (3-month USD-LIBOR + 6.50%) 7.885% 20196,12 | 1,050 | 950 |
American Energy (Permian Basin) 7.125% 20206 | 7,345 | 5,986 |
American Energy (Permian Basin) 7.375% 20216 | 5,725 | 4,637 |
Anadarko Petroleum Corp. 4.85% 2021 | 3,455 | 3,651 |
Anadarko Petroleum Corp. 5.55% 2026 | 2,250 | 2,528 |
Anadarko Petroleum Corp. 6.60% 2046 | 2,300 | 2,967 |
APT Pipelines Ltd. 4.20% 20256 | 3,565 | 3,707 |
Blackstone CQP Holdco LP, 6.00% 20214,6 | 5,700 | 5,743 |
Blackstone CQP Holdco LP, 6.50% 20214,6 | 21,325 | 21,751 |
Boardwalk Pipelines, LP 5.95% 2026 | 2,000 | 2,234 |
Boardwalk Pipelines, LP 4.45% 2027 | 735 | 749 |
Canadian Natural Resources Ltd. 2.95% 2023 | 7,975 | 7,947 |
Canadian Natural Resources Ltd. 3.85% 2027 | 1,000 | 1,022 |
Canadian Natural Resources Ltd. 4.95% 2047 | 1,000 | 1,123 |
Cenovus Energy Inc. 3.80% 2023 | 3,970 | 4,014 |
American Funds Insurance Series — Asset Allocation Fund — Page 61 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Energy (continued) | Principal amount (000) | Value (000) |
Cenovus Energy Inc. 4.25% 2027 | $6,625 | $6,620 |
Cenovus Energy Inc. 5.25% 2037 | 2,000 | 2,065 |
Cenovus Energy Inc. 5.40% 2047 | 2,000 | 2,111 |
Chesapeake Energy Corp. (3-month USD-LIBOR + 3.25%) 4.609% 201912 | 4,525 | 4,525 |
Chesapeake Energy Corp. 4.875% 2022 | 6,250 | 5,953 |
Chesapeake Energy Corp. 8.00% 20256 | 5,450 | 5,511 |
Chesapeake Energy Corp. 8.00% 20276 | 3,375 | 3,248 |
Chesapeake Energy Corp., Term Loan, (3-month USD-LIBOR + 7.50%) 8.954% 202110,11,12 | 1,150 | 1,227 |
Chevron Corp. 2.498% 2022 | 2,730 | 2,735 |
Chevron Corp. 2.566% 2023 | 2,000 | 1,997 |
Chevron Corp. 3.326% 2025 | 1,165 | 1,200 |
ConocoPhillips 4.20% 2021 | 2,640 | 2,778 |
ConocoPhillips 4.95% 2026 | 1,750 | 1,989 |
CONSOL Energy Inc. 5.875% 2022 | 18,950 | 19,447 |
Convey Park Energy LLC 7.50% 20256 | 2,000 | 2,089 |
DCP Midstream Operating LP 4.95% 2022 | 4,775 | 4,984 |
Devon Energy Corp. 5.00% 2045 | 3,590 | 4,017 |
Diamond Offshore Drilling, Inc. 7.875% 2025 | 2,550 | 2,687 |
Diamond Offshore Drilling, Inc. 4.875% 2043 | 4,685 | 3,443 |
Enbridge Energy Partners, LP 5.20% 2020 | 120 | 126 |
Enbridge Energy Partners, LP 5.875% 2025 | 3,825 | 4,338 |
Enbridge Energy Partners, LP, Series B, 6.50% 2018 | 3,900 | 3,952 |
Enbridge Energy Partners, LP, Series B, 7.50% 2038 | 2,000 | 2,595 |
Enbridge Inc. 4.00% 2023 | 3,035 | 3,162 |
Enbridge Inc. 3.50% 2024 | 1,000 | 1,012 |
Enbridge Inc. 4.25% 2026 | 370 | 387 |
Enbridge Inc. 5.50% 2046 | 965 | 1,164 |
Energy Transfer Partners, LP 4.15% 2020 | 3,500 | 3,616 |
Energy Transfer Partners, LP 7.50% 2020 | 1,175 | 1,295 |
Energy Transfer Partners, LP 5.875% 2024 | 2,775 | 2,928 |
Energy Transfer Partners, LP 4.75% 2026 | 6,500 | 6,753 |
Energy Transfer Partners, LP 4.00% 2027 | 1,126 | 1,106 |
Energy Transfer Partners, LP 4.20% 2027 | 430 | 428 |
Energy Transfer Partners, LP 5.50% 2027 | 6,420 | 6,564 |
Energy Transfer Partners, LP 5.30% 2047 | 3,000 | 2,990 |
Energy Transfer Partners, LP 5.40% 2047 | 7,686 | 7,783 |
EnLink Midstream Partners, LP 4.15% 2025 | 7,330 | 7,416 |
EnLink Midstream Partners, LP 4.85% 2026 | 2,500 | 2,623 |
EnLink Midstream Partners, LP 5.05% 2045 | 3,135 | 3,105 |
EnLink Midstream Partners, LP 5.45% 2047 | 1,415 | 1,500 |
Ensco PLC 5.75% 2044 | 6,295 | 4,344 |
Enterprise Products Operating LLC 4.90% 2046 | 1,000 | 1,105 |
EOG Resources, Inc. 4.15% 2026 | 2,980 | 3,176 |
EQT Corp. 3.00% 2022 | 975 | 966 |
EQT Corp. 3.90% 2027 | 1,810 | 1,802 |
Exxon Mobil Corp. 2.222% 2021 | 5,070 | 5,060 |
Exxon Mobil Corp. 2.726% 2023 | 3,000 | 3,023 |
Exxon Mobil Corp. 3.043% 2026 | 2,250 | 2,287 |
Genesis Energy, LP 6.75% 2022 | 3,750 | 3,909 |
Genesis Energy, LP 6.50% 2025 | 2,050 | 2,091 |
Halliburton Co. 3.80% 2025 | 6,915 | 7,197 |
Halliburton Co. 4.85% 2035 | 1,000 | 1,124 |
Halliburton Co. 5.00% 2045 | 1,000 | 1,152 |
Jonah Energy LLC 7.25% 20256 | 1,475 | 1,488 |
American Funds Insurance Series — Asset Allocation Fund — Page 62 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Energy (continued) | Principal amount (000) | Value (000) |
Jupiter Resources Inc. 8.50% 20226 | $1,500 | $938 |
Kinder Morgan Energy Partners, LP 3.50% 2021 | 40 | 41 |
Kinder Morgan Energy Partners, LP 5.40% 2044 | 1,380 | 1,463 |
Kinder Morgan Energy Partners, LP 5.50% 2044 | 3,578 | 3,822 |
Kinder Morgan Finance Co. 5.05% 2046 | 1,500 | 1,561 |
Kinder Morgan, Inc. 3.05% 2019 | 2,520 | 2,543 |
Kinder Morgan, Inc. 4.30% 2025 | 1,625 | 1,695 |
Kinder Morgan, Inc. 5.55% 2045 | 1,000 | 1,097 |
Marathon Oil Corp. 4.40% 2027 | 4,955 | 5,187 |
MPLX LP 4.125% 2027 | 2,680 | 2,749 |
MPLX LP 5.20% 2047 | 1,000 | 1,101 |
NGL Energy Partners LP 6.875% 2021 | 5,505 | 5,643 |
NGL Energy Partners LP 6.125% 2025 | 6,935 | 6,796 |
Noble Corp. PLC 7.70% 2025 | 3,175 | 2,683 |
Noble Corp. PLC 8.70% 2045 | 3,525 | 2,811 |
Noble Energy, Inc. 3.85% 2028 | 10,485 | 10,535 |
Noble Energy, Inc. 4.95% 2047 | 1,050 | 1,127 |
Peabody Energy Corp. 6.00% 20226 | 1,000 | 1,041 |
Peabody Energy Corp. 6.375% 20256 | 600 | 626 |
Petróleos Mexicanos 6.75% 2047 | 4,115 | 4,306 |
Petróleos Mexicanos 6.75% 20476 | 1,125 | 1,177 |
Phillips 66 Partners LP 3.55% 2026 | 335 | 333 |
Phillips 66 Partners LP 3.75% 2028 | 1,055 | 1,057 |
Phillips 66 Partners LP 4.68% 2045 | 800 | 824 |
Phillips 66 Partners LP 4.90% 2046 | 5,975 | 6,340 |
Pioneer Natural Resources Co. 3.45% 2021 | 3,345 | 3,414 |
QGOG Constellation SA 9.50% 2024 (5.26% PIK)6,11,13 | 851 | 575 |
Sabine Pass Liquefaction, LLC 5.875% 2026 | 1,235 | 1,389 |
Sabine Pass Liquefaction, LLC 4.20% 2028 | 12,540 | 12,709 |
Schlumberger BV 3.625% 20226 | 2,800 | 2,885 |
Schlumberger BV 4.00% 20256 | 120 | 126 |
Seven Generations Energy Ltd. 6.75% 20236 | 2,000 | 2,135 |
Shell International Finance BV 2.25% 2020 | 1,965 | 1,965 |
SM Energy Co. 6.50% 2021 | 2,325 | 2,366 |
SM Energy Co. 5.625% 2025 | 3,300 | 3,218 |
Southwestern Energy Co. 4.10% 2022 | 10,660 | 10,527 |
Southwestern Energy Co. 7.50% 2026 | 1,155 | 1,229 |
Spectra Energy Partners, LP 3.375% 2026 | 615 | 609 |
Statoil ASA 2.75% 2021 | 1,925 | 1,952 |
Statoil ASA 3.25% 2024 | 2,850 | 2,932 |
Statoil ASA 4.25% 2041 | 2,000 | 2,166 |
Sunoco LP 6.25% 2021 | 5,015 | 5,226 |
Targa Resources Partners LP 4.125% 2019 | 7,330 | 7,394 |
Targa Resources Partners LP 6.75% 2024 | 2,965 | 3,191 |
Teekay Corp. 8.50% 2020 | 15,180 | 15,522 |
Tesoro Logistics LP 5.50% 2019 | 3,410 | 3,544 |
Tesoro Logistics LP 5.25% 2025 | 350 | 369 |
TransCanada Corp. 6.50% 2018 | 475 | 488 |
TransCanada PipeLines Ltd. 7.625% 2039 | 5,000 | 7,542 |
Transocean Inc. 9.00% 20236 | 2,100 | 2,279 |
Ultra Petroleum Corp. 6.875% 20226 | 3,310 | 3,331 |
Ultra Petroleum Corp. 7.125% 20256 | 1,775 | 1,777 |
Vine Oil & Gas LP 8.75% 20236 | 2,500 | 2,431 |
Weatherford International PLC 4.50% 20225 | 2,670 | 2,430 |
American Funds Insurance Series — Asset Allocation Fund — Page 63 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Energy (continued) | Principal amount (000) | Value (000) |
Weatherford International PLC 8.25% 20235 | $5,500 | $5,569 |
Weatherford International PLC 6.50% 20365 | 7,595 | 6,285 |
Weatherford International PLC 6.75% 20405 | 7,825 | 6,456 |
Western Gas Partners LP 4.65% 2026 | 925 | 963 |
Williams Companies, Inc. 3.70% 2023 | 2,620 | 2,620 |
Williams Partners LP 3.60% 2022 | 1,500 | 1,536 |
Williams Partners LP 4.30% 2024 | 160 | 168 |
453,354 | ||
Financials 1.37% | ||
ACE INA Holdings Inc. 2.30% 2020 | 1,345 | 1,343 |
ACE INA Holdings Inc. 2.875% 2022 | 3,880 | 3,935 |
ACE INA Holdings Inc. 3.35% 2026 | 880 | 899 |
ACE INA Holdings Inc. 4.35% 2045 | 800 | 905 |
Allstate Corp. 3.28% 2026 | 5,095 | 5,180 |
American Express Co. 2.20% 2020 | 6,000 | 5,954 |
Bank of America Corp. 2.625% 2020 | 4,037 | 4,072 |
Bank of America Corp. 2.625% 2021 | 2,000 | 2,011 |
Bank of America Corp. 3.248% 2027 | 1,500 | 1,490 |
Bank of America Corp. 3.419% 20286 | 8,949 | 8,959 |
Bank of America Corp. 3.593% 2028 | 4,250 | 4,324 |
Bank of America Corp. 3.824% 2028 | 1,250 | 1,294 |
Bank of America Corp. 4.244% 2038 | 1,000 | 1,086 |
BB&T Corp. 2.45% 2020 | 6,000 | 6,021 |
BB&T Corp. 2.625% 2022 | 2,500 | 2,506 |
BB&T Corp. 2.75% 2022 | 6,000 | 6,045 |
Berkshire Hathaway Finance Corp. 1.30% 2019 | 1,070 | 1,057 |
Berkshire Hathaway Inc. 2.20% 2021 | 1,000 | 997 |
Berkshire Hathaway Inc. 2.75% 2023 | 2,615 | 2,634 |
Berkshire Hathaway Inc. 3.125% 2026 | 1,000 | 1,012 |
BPCE SA group 5.70% 20236 | 4,460 | 4,948 |
BPCE SA group 5.15% 20246 | 3,000 | 3,257 |
CIT Group Inc. 3.875% 2019 | 14,485 | 14,666 |
Citigroup Inc. 1.70% 2018 | 150 | 150 |
Citigroup Inc. 2.35% 2021 | 8,650 | 8,562 |
Citigroup Inc. 2.90% 2021 | 4,000 | 4,030 |
Citigroup Inc. 3.20% 2026 | 2,211 | 2,196 |
Commonwealth Bank of Australia 2.25% 20206 | 1,000 | 997 |
Commonwealth Bank of Australia 2.75% 20226 | 1,000 | 1,003 |
Crédit Agricole SA 4.375% 20256 | 1,700 | 1,779 |
Credit Suisse Group AG 1.70% 2018 | 4,000 | 3,997 |
Credit Suisse Group AG 3.00% 2021 | 250 | 253 |
Credit Suisse Group AG 3.80% 2023 | 1,625 | 1,678 |
Danske Bank AS 2.00% 20216 | 2,365 | 2,314 |
Danske Bank AS 2.70% 20226 | 2,000 | 2,003 |
DNB ASA 2.375% 20216 | 3,000 | 2,982 |
Goldman Sachs Group, Inc. 1.95% 2019 | 3,900 | 3,878 |
Goldman Sachs Group, Inc. 2.55% 2019 | 4,000 | 4,009 |
Goldman Sachs Group, Inc. 2.875% 2021 | 231 | 233 |
Goldman Sachs Group, Inc. 5.25% 2021 | 200 | 217 |
Goldman Sachs Group, Inc. 3.00% 2022 | 4,750 | 4,770 |
Goldman Sachs Group, Inc. 2.905% 2023 | 10,900 | 10,834 |
Goldman Sachs Group, Inc. 2.908% 2023 | 3,000 | 2,983 |
Goldman Sachs Group, Inc. 3.50% 2025 | 280 | 285 |
American Funds Insurance Series — Asset Allocation Fund — Page 64 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Financials (continued) | Principal amount (000) | Value (000) |
Goldman Sachs Group, Inc. 3.691% 2028 | $2,000 | $2,031 |
HSBC Holdings PLC 3.262% 2023 | 5,250 | 5,326 |
HSBC Holdings PLC 4.25% 2024 | 3,000 | 3,137 |
HSBC Holdings PLC 3.90% 2026 | 200 | 208 |
HSBC Holdings PLC 4.30% 2026 | 200 | 213 |
Icahn Enterprises Finance Corp. 6.25% 2022 | 4,150 | 4,254 |
Intercontinentalexchange, Inc. 2.50% 2018 | 4,000 | 4,017 |
Intesa Sanpaolo SpA 5.017% 20246 | 2,730 | 2,799 |
JPMorgan Chase & Co. 2.55% 2020 | 2,750 | 2,759 |
JPMorgan Chase & Co. 2.55% 2021 | 497 | 497 |
JPMorgan Chase & Co. 3.25% 2022 | 180 | 184 |
JPMorgan Chase & Co. 2.70% 2023 | 125 | 124 |
JPMorgan Chase & Co. 3.54% 2028 | 5,525 | 5,626 |
JPMorgan Chase & Co., Series Z, junior subordinated 5.30% 2049 | 3,200 | 3,327 |
Lloyds Banking Group PLC 3.00% 2022 | 4,000 | 4,023 |
Lloyds Banking Group PLC 2.907% 2023 | 1,525 | 1,513 |
Lloyds Banking Group PLC 4.582% 2025 | 1,500 | 1,575 |
MetLife, Inc. 1.55% 20196 | 3,500 | 3,461 |
MetLife, Inc. 2.50% 20206 | 8,000 | 8,020 |
MetLife, Inc. 1.95% 20216 | 2,500 | 2,450 |
Morgan Stanley 2.50% 2021 | 3,000 | 2,996 |
Morgan Stanley (3-month USD-LIBOR + 1.22%) 2.617% 202412 | 3,000 | 3,065 |
Morgan Stanley 3.875% 2026 | 2,650 | 2,764 |
Morgan Stanley 3.625% 2027 | 2,775 | 2,843 |
National Australia Bank Ltd. 1.375% 2019 | 975 | 963 |
National Australia Bank Ltd. 1.875% 2021 | 975 | 955 |
Navient Corp. 4.875% 2019 | 7,800 | 7,951 |
Navient Corp. 6.50% 2022 | 3,325 | 3,492 |
Navient Corp. 5.50% 2023 | 3,640 | 3,645 |
Navient Corp. 6.125% 2024 | 2,550 | 2,595 |
New York Life Global Funding 1.50% 20196 | 1,525 | 1,505 |
New York Life Global Funding 1.70% 20216 | 1,500 | 1,457 |
New York Life Global Funding 2.35% 20266 | 1,190 | 1,137 |
Nordea Bank AB 2.50% 20206 | 4,450 | 4,456 |
PNC Bank 1.45% 2019 | 3,340 | 3,298 |
PNC Bank 2.30% 2020 | 250 | 250 |
PNC Bank 2.55% 2021 | 8,000 | 8,000 |
PNC Financial Services Group, Inc. 2.854% 2022 | 1,445 | 1,451 |
PNC Financial Services Group, Inc. 3.90% 2024 | 2,000 | 2,097 |
Prudential Financial, Inc. 3.50% 2024 | 4,000 | 4,160 |
Rabobank Nederland 2.75% 2022 | 2,825 | 2,849 |
Rabobank Nederland 4.375% 2025 | 5,500 | 5,814 |
Skandinaviska Enskilda Banken AB 2.625% 2021 | 250 | 251 |
Skandinaviska Enskilda Banken AB 2.80% 2022 | 4,750 | 4,790 |
Starwood Property Trust, Inc. 5.00% 2021 | 2,550 | 2,652 |
Travelers Companies, Inc. 4.00% 2047 | 1,735 | 1,851 |
UBS Group AG 4.125% 20256 | 2,750 | 2,888 |
UniCredit SPA 3.75% 20226 | 8,350 | 8,503 |
UniCredit SPA 4.625% 20276 | 3,125 | 3,302 |
UniCredit SPA 5.861% 20326 | 3,050 | 3,256 |
US Bancorp. 2.625% 2022 | 1,805 | 1,816 |
US Bancorp. 3.70% 2024 | 7,000 | 7,356 |
US Bancorp. 2.375% 2026 | 6,500 | 6,125 |
US Bancorp. 3.15% 2027 | 10,500 | 10,529 |
American Funds Insurance Series — Asset Allocation Fund — Page 65 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Financials (continued) | Principal amount (000) | Value (000) |
Wells Fargo & Co. 2.50% 2021 | $7,500 | $7,499 |
Wells Fargo & Co. 2.625% 2022 | 3,000 | 2,985 |
Wells Fargo & Co. 3.584% 2028 | 4,425 | 4,515 |
Westpac Banking Corp. 2.15% 2020 | 12,000 | 11,950 |
Westpac Banking Corp. 2.75% 2023 | 3,500 | 3,495 |
350,798 | ||
Health care 1.23% | ||
Abbott Laboratories 2.90% 2021 | 1,130 | 1,144 |
Abbott Laboratories 3.40% 2023 | 270 | 275 |
Abbott Laboratories 3.75% 2026 | 6,695 | 6,886 |
Abbott Laboratories 4.75% 2036 | 460 | 518 |
Abbott Laboratories 4.90% 2046 | 500 | 575 |
AbbVie Inc. 2.50% 2020 | 360 | 361 |
AbbVie Inc. 2.90% 2022 | 115 | 115 |
AbbVie Inc. 3.20% 2022 | 4,680 | 4,757 |
AbbVie Inc. 3.60% 2025 | 110 | 113 |
AbbVie Inc. 4.30% 2036 | 650 | 698 |
AbbVie Inc. 4.45% 2046 | 6,850 | 7,470 |
Aetna Inc. 1.70% 2018 | 855 | 854 |
Allergan PLC 2.35% 2018 | 2,000 | 2,002 |
Allergan PLC 3.00% 2020 | 1,050 | 1,060 |
Allergan PLC 3.45% 2022 | 7,645 | 7,774 |
Allergan PLC 3.80% 2025 | 1,253 | 1,277 |
Allergan PLC 4.55% 2035 | 2,202 | 2,335 |
Allergan PLC 4.75% 2045 | 795 | 849 |
Amgen Inc. 2.65% 2022 | 7,000 | 6,987 |
Amgen Inc. 2.70% 2022 | 3,400 | 3,399 |
Amgen Inc. 4.40% 2045 | 2,000 | 2,183 |
AstraZeneca PLC 3.375% 2025 | 7,890 | 8,033 |
Bayer AG 2.375% 20196 | 2,750 | 2,752 |
Becton, Dickinson and Co. 2.133% 2019 | 2,250 | 2,246 |
Becton, Dickinson and Co. 2.404% 2020 | 2,250 | 2,239 |
Becton, Dickinson and Co. 2.894% 2022 | 6,360 | 6,326 |
Becton, Dickinson and Co. 3.363% 2024 | 860 | 863 |
Boston Scientific Corp. 3.85% 2025 | 5,500 | 5,662 |
Centene Corp. 4.75% 2022 | 10,495 | 10,941 |
Centene Corp. 4.75% 2025 | 3,825 | 3,902 |
Concordia Healthcare Corp., Term Loan B, (3-month USD-LIBOR + 4.25%) 5.819% 202110,11,12 | 2,132 | 1,769 |
Concordia Healthcare Corp. 9.50% 20226 | 4,210 | 400 |
Concordia Healthcare Corp. 7.00% 20236 | 7,380 | 701 |
DaVita HealthCare Partners Inc. 5.00% 2025 | 3,875 | 3,884 |
DJO Finance LLC 8.125% 20216 | 900 | 846 |
EMD Finance LLC 2.40% 20206 | 210 | 210 |
EMD Finance LLC 2.95% 20226 | 1,010 | 1,015 |
EMD Finance LLC 3.25% 20256 | 6,170 | 6,213 |
Endo Finance LLC & Endo Finco Inc. 6.00% 20256 | 3,280 | 2,558 |
Endo International PLC 5.75% 20226 | 5,865 | 4,912 |
HCA Inc. 5.25% 2026 | 1,250 | 1,328 |
Healthsouth Corp. 5.75% 2024 | 6,850 | 7,038 |
Healthsouth Corp. 5.75% 2025 | 3,285 | 3,433 |
Jaguar Holding Co. 6.375% 20236 | 1,600 | 1,620 |
Johnson & Johnson 2.25% 2022 | 3,750 | 3,747 |
Johnson & Johnson 2.45% 2026 | 1,285 | 1,254 |
American Funds Insurance Series — Asset Allocation Fund — Page 66 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Health care (continued) | Principal amount (000) | Value (000) |
Johnson & Johnson 3.625% 2037 | $1,000 | $1,058 |
Johnson & Johnson 3.75% 2047 | 750 | 802 |
Kinetic Concepts, Inc. 12.50% 20216 | 2,430 | 2,740 |
Mallinckrodt PLC 4.875% 20206 | 5,360 | 5,172 |
Medtronic, Inc. 3.50% 2025 | 3,000 | 3,114 |
Medtronic, Inc. 3.35% 2027 | 1,500 | 1,541 |
Medtronic, Inc. 4.375% 2035 | 4,537 | 5,121 |
Medtronic, Inc. 4.625% 2045 | 3,260 | 3,804 |
Molina Healthcare, Inc. 5.375% 2022 | 8,985 | 9,412 |
Molina Healthcare, Inc. 4.875% 20256 | 4,725 | 4,737 |
Multiplan, Inc. 8.50% 20226,13 | 2,535 | 2,636 |
Quintiles Transnational Corp. 4.875% 20236 | 2,475 | 2,562 |
Roche Holdings, Inc. 2.875% 20216 | 8,625 | 8,756 |
Roche Holdings, Inc. 1.75% 20226 | 2,340 | 2,276 |
Roche Holdings, Inc. 3.35% 20246 | 1,200 | 1,242 |
Roche Holdings, Inc. 3.00% 20256 | 6,000 | 6,049 |
Rotech Healthcare Inc., Term Loan, (3-month USD-LIBOR + 11.00%) 13.00% 2020 (84.62% PIK)1,3,10,11,12,13 | 7,108 | 6,721 |
Rotech Healthcare Inc., Term Loan A, (3-month USD-LIBOR + 4.25%) 5.943% 20181,3,10,11,12 | 2,968 | 2,953 |
Rotech Healthcare Inc., Term Loan B, (3-month USD-LIBOR + 8.75%) 10.443% 20191,3,10,11,12 | 2,400 | 2,388 |
Shire PLC 1.90% 2019 | 2,130 | 2,111 |
Shire PLC 2.40% 2021 | 6,465 | 6,368 |
Shire PLC 3.20% 2026 | 1,500 | 1,469 |
Team Health Holdings, Inc. 6.375% 20256 | 2,525 | 2,266 |
Tenet Healthcare Corp. 4.375% 2021 | 3,650 | 3,659 |
Tenet Healthcare Corp. 4.625% 20246 | 3,153 | 3,086 |
Tenet Healthcare Corp., First Lien, 4.75% 2020 | 3,290 | 3,364 |
Tenet Healthcare Corp., First Lien, 6.00% 2020 | 10,405 | 11,040 |
Tenet Healthcare Corp., First Lien, 4.50% 2021 | 2,525 | 2,550 |
Teva Pharmaceutical Finance Company BV 1.40% 2018 | 735 | 730 |
Teva Pharmaceutical Finance Company BV 1.70% 2019 | 725 | 705 |
Teva Pharmaceutical Finance Company BV 2.20% 2021 | 10,720 | 9,800 |
Teva Pharmaceutical Finance Company BV 2.80% 2023 | 8,413 | 7,334 |
Teva Pharmaceutical Finance Company BV 3.15% 2026 | 12,876 | 10,648 |
Teva Pharmaceutical Finance Company BV 4.10% 2046 | 3,550 | 2,711 |
Thermo Fisher Scientific Inc. 2.40% 2019 | 4,025 | 4,036 |
Thermo Fisher Scientific Inc. 4.15% 2024 | 2,000 | 2,124 |
Valeant Pharmaceuticals International, Inc. 6.375% 20206 | 12,165 | 12,317 |
Valeant Pharmaceuticals International, Inc. 6.125% 20256 | 13,500 | 12,403 |
Valeant Pharmaceuticals International, Inc. 9.00% 20256 | 1,405 | 1,468 |
Zimmer Holdings, Inc. 3.15% 2022 | 6,070 | 6,090 |
314,887 | ||
Utilities 0.81% | ||
AEP Transmission Company LLC 3.75% 20476 | 2,390 | 2,462 |
AES Corp. 5.50% 2025 | 5,525 | 5,829 |
AES Corp. 6.00% 2026 | 2,990 | 3,244 |
Ameren Corp. 3.70% 2047 | 4,240 | 4,346 |
American Electric Power Co., Inc. 2.95% 2022 | 4,020 | 4,081 |
American Electric Power Co., Inc. 2.75% 2026 | 670 | 646 |
American Electric Power Co., Inc. 3.20% 2027 | 1,275 | 1,268 |
Berkshire Hathaway Energy Co. 2.40% 2020 | 1,245 | 1,251 |
Calpine Corp. 5.375% 2023 | 4,210 | 4,115 |
Calpine Corp. 5.25% 20266 | 4,970 | 4,889 |
Centerpoint Energy, Inc. 2.50% 2022 | 900 | 887 |
American Funds Insurance Series — Asset Allocation Fund — Page 67 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Utilities (continued) | Principal amount (000) | Value (000) |
CMS Energy Corp. 8.75% 2019 | $667 | $726 |
Comision Federal de Electricidad 4.75% 20276 | 1,270 | 1,334 |
Commonwealth Edison Company 2.55% 2026 | 750 | 726 |
Commonwealth Edison Company 4.35% 2045 | 2,085 | 2,347 |
Commonwealth Edison Company 3.65% 2046 | 2,000 | 2,023 |
Consumers Energy Co. 3.375% 2023 | 475 | 488 |
Consumers Energy Co. 3.125% 2024 | 3,785 | 3,828 |
Consumers Energy Co. 3.25% 2046 | 940 | 904 |
Dominion Resources, Inc. 1.875% 20186 | 2,500 | 2,493 |
Dominion Resources, Inc. 1.60% 2019 | 890 | 880 |
Dominion Resources, Inc. 2.962% 2019 | 300 | 302 |
Dominion Resources, Inc. 2.579% 2020 | 950 | 951 |
Dominion Resources, Inc. 2.00% 2021 | 790 | 773 |
Dominion Resources, Inc. 2.75% 2022 | 800 | 799 |
Dominion Resources, Inc. 2.85% 2026 | 1,500 | 1,451 |
Duke Energy Carolinas, Inc. 3.70% 2047 | 1,325 | 1,367 |
Duke Energy Corp. 1.80% 2021 | 275 | 268 |
Duke Energy Corp. 3.75% 2024 | 150 | 157 |
Duke Energy Corp. 2.65% 2026 | 2,325 | 2,231 |
Duke Energy Corp. 3.15% 2027 | 1,855 | 1,845 |
Duke Energy Florida, LLC 3.20% 2027 | 2,420 | 2,452 |
Duke Energy Ohio, Inc. 3.70% 2046 | 1,950 | 1,986 |
Duke Energy Progress Inc. 4.15% 2044 | 3,020 | 3,299 |
Duke Energy Progress Inc. 3.70% 2046 | 4,350 | 4,450 |
EDP Finance BV 4.125% 20206 | 3,402 | 3,510 |
EDP Finance BV 3.625% 20246 | 12,250 | 12,347 |
Electricité de France SA 2.35% 20206 | 650 | 649 |
Electricité de France SA 6.95% 20396 | 4,000 | 5,470 |
Emera US Finance LP 2.15% 2019 | 300 | 299 |
Emera US Finance LP 2.70% 2021 | 770 | 769 |
Emera US Finance LP 3.55% 2026 | 645 | 648 |
Enel Finance International SA 3.50% 20286 | 5,800 | 5,684 |
Enersis Américas SA 4.00% 2026 | 495 | 505 |
Entergy Corp. 2.95% 2026 | 1,160 | 1,130 |
Exelon Corp. 3.497% 2022 | 5,250 | 5,355 |
Exelon Corp. 3.40% 2026 | 200 | 200 |
FirstEnergy Corp. 3.90% 2027 | 3,660 | 3,756 |
FirstEnergy Corp. 7.375% 2031 | 2,250 | 3,041 |
FirstEnergy Corp. 4.85% 2047 | 6,395 | 7,159 |
FirstEnergy Corp., Series B, 4.25% 2023 | 1,540 | 1,610 |
Great Plains Energy Inc. 4.20% 2047 | 2,100 | 2,231 |
MidAmerican Energy Co. 2.40% 2019 | 1,500 | 1,506 |
MidAmerican Energy Co. 3.10% 2027 | 2,000 | 2,012 |
National Rural Utilities Cooperative Finance Corp. 3.05% 2027 | 6,000 | 5,961 |
NiSource Finance Corp. 2.65% 2022 | 675 | 671 |
Northern States Power Co. 4.125% 2044 | 6,000 | 6,555 |
NRG Energy, Inc. 6.25% 2022 | 4,790 | 5,006 |
Pacific Gas and Electric Co. 3.25% 2023 | 1,220 | 1,233 |
Pacific Gas and Electric Co. 3.85% 2023 | 6,929 | 7,230 |
Pacific Gas and Electric Co. 3.40% 2024 | 1,310 | 1,336 |
Pacific Gas and Electric Co. 3.30% 20276 | 5,305 | 5,265 |
Pacific Gas and Electric Co. 3.30% 2027 | 1,545 | 1,535 |
Pacific Gas and Electric Co. 4.30% 2045 | 1,270 | 1,329 |
Pacific Gas and Electric Co. 3.95% 20476 | 3,750 | 3,733 |
American Funds Insurance Series — Asset Allocation Fund — Page 68 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Utilities (continued) | Principal amount (000) | Value (000) |
PacifiCorp., First Mortgage Bonds, 5.65% 2018 | $1,250 | $1,276 |
PacifiCorp., First Mortgage Bonds, 3.60% 2024 | 6,695 | 7,003 |
Public Service Co. of Colorado 2.25% 2022 | 2,000 | 1,970 |
Public Service Enterprise Group Inc. 2.65% 2022 | 1,900 | 1,885 |
Public Service Enterprise Group Inc. 2.25% 2026 | 385 | 363 |
Puget Energy, Inc. 6.50% 2020 | 1,245 | 1,379 |
Puget Energy, Inc. 6.00% 2021 | 1,823 | 2,018 |
Puget Energy, Inc. 5.625% 2022 | 1,965 | 2,172 |
Puget Energy, Inc. 3.65% 2025 | 3,135 | 3,218 |
Sierra Pacific Power Co., General and Refunding Mortgage Notes, Series T, 3.375% 2023 | 3,500 | 3,612 |
South Carolina Electric & Gas Co. 4.10% 2046 | 2,595 | 2,645 |
Talen Energy Corp. 9.50% 20226 | 770 | 793 |
Talen Energy Corp. 10.50% 20266 | 675 | 671 |
Tampa Electric Co. 4.35% 2044 | 3,805 | 4,152 |
Tri-State Generation and Transmission Assn. Inc., Pass Through Trust, Series 2003-A, 6.04% 20186,11 | 58 | 58 |
Virginia Electric and Power Co. 2.95% 2026 | 1,700 | 1,686 |
Virginia Electric and Power Co. 3.50% 2027 | 4,300 | 4,453 |
208,187 | ||
Consumer discretionary 0.79% | ||
Amazon.com, Inc. 2.40% 20236 | 3,000 | 2,972 |
Amazon.com, Inc. 2.80% 20246 | 5,875 | 5,865 |
Amazon.com, Inc. 3.15% 20276 | 2,250 | 2,257 |
American Axle & Manufacturing Holdings, Inc. 6.50% 20276 | 3,275 | 3,476 |
Bayerische Motoren Werke AG 2.25% 20236 | 600 | 583 |
Cablevision Systems Corp. 6.75% 2021 | 5,975 | 6,423 |
CCO Holdings LLC and CCO Holdings Capital Corp. 4.464% 2022 | 6,000 | 6,266 |
CCO Holdings LLC and CCO Holdings Capital Corp. 4.908% 2025 | 1,000 | 1,065 |
CCO Holdings LLC and CCO Holdings Capital Corp. 5.75% 20266 | 5,850 | 6,091 |
CCO Holdings LLC and CCO Holdings Capital Corp. 4.20% 2028 | 1,920 | 1,904 |
CCO Holdings LLC and CCO Holdings Capital Corp. 5.00% 20286 | 4,250 | 4,154 |
CCO Holdings LLC and CCO Holdings Capital Corp. 6.484% 2045 | 585 | 684 |
CCO Holdings LLC and CCO Holdings Capital Corp. 5.375% 2047 | 2,615 | 2,689 |
Clear Channel Worldwide Holdings, Inc. 7.625% 2020 | 15,760 | 15,504 |
Comcast Corp. 5.875% 2018 | 100 | 101 |
Comcast Corp. 1.625% 2022 | 2,000 | 1,935 |
Comcast Corp. 2.35% 2027 | 5,435 | 5,137 |
Comcast Corp. 3.30% 2027 | 1,000 | 1,021 |
Comcast Corp. 3.20% 2036 | 750 | 714 |
Cumulus Media Inc., Term Loan B, (3-month USD-LIBOR + 3.25%) 4.82% 202010,11,12 | 2,000 | 1,727 |
DaimlerChrysler North America Holding Corp. 2.25% 20196 | 6,000 | 5,983 |
DaimlerChrysler North America Holding Corp. 2.25% 20206 | 2,765 | 2,755 |
DaimlerChrysler North America Holding Corp. 2.00% 20216 | 200 | 196 |
DaimlerChrysler North America Holding Corp. 3.45% 20276 | 2,505 | 2,566 |
Ford Motor Credit Co. 1.897% 2019 | 2,500 | 2,482 |
Ford Motor Credit Co. 2.597% 2019 | 3,000 | 3,003 |
Ford Motor Credit Co. 2.343% 2020 | 7,635 | 7,567 |
Ford Motor Credit Co. 3.157% 2020 | 1,000 | 1,013 |
Ford Motor Credit Co. 3.20% 2021 | 2,250 | 2,283 |
Ford Motor Credit Co. 4.134% 2025 | 5,000 | 5,178 |
Ford Motor Credit Co. 5.291% 2046 | 750 | 819 |
General Motors Co. 6.75% 2046 | 250 | 316 |
General Motors Financial Co. 2.35% 2019 | 3,500 | 3,491 |
General Motors Financial Co. 3.70% 2020 | 6,355 | 6,528 |
American Funds Insurance Series — Asset Allocation Fund — Page 69 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Consumer discretionary (continued) | Principal amount (000) | Value (000) |
General Motors Financial Co. 3.45% 2022 | $3,625 | $3,676 |
General Motors Financial Co. 3.45% 2022 | 2,000 | 2,029 |
General Motors Financial Co. 3.50% 2024 | 6,600 | 6,595 |
General Motors Financial Co. 4.30% 2025 | 1,250 | 1,304 |
General Motors Financial Co. 4.35% 2027 | 1,000 | 1,042 |
Hanesbrands Inc. 4.625% 20246 | 660 | 677 |
Hanesbrands Inc. 4.875% 20266 | 725 | 747 |
Home Depot, Inc. 1.80% 2020 | 3,415 | 3,389 |
Home Depot, Inc. 4.25% 2046 | 3,500 | 3,915 |
iHeartCommunications, Inc. 9.00% 2019 | 8,920 | 6,668 |
Liberty Global PLC 5.50% 20286 | 2,725 | 2,657 |
Limited Brands, Inc. 6.875% 2035 | 1,785 | 1,812 |
Lowe’s Companies, Inc. 2.50% 2026 | 2,720 | 2,617 |
McDonald’s Corp. 2.75% 2020 | 1,750 | 1,769 |
McDonald’s Corp. 2.625% 2022 | 1,105 | 1,108 |
McDonald’s Corp. 4.875% 2045 | 1,600 | 1,859 |
Meritage Homes Corp. 5.125% 2027 | 2,675 | 2,728 |
NBC Universal Enterprise, Inc. 1.974% 20196 | 100 | 100 |
Neiman Marcus Group LTD Inc., Term Loan B, (3-month USD-LIBOR + 3.25%) 4.642% 202010,11,12 | 2,700 | 2,211 |
Newell Rubbermaid Inc. 2.60% 2019 | 188 | 189 |
Newell Rubbermaid Inc. 3.15% 2021 | 2,050 | 2,074 |
Newell Rubbermaid Inc. 3.85% 2023 | 1,850 | 1,916 |
Petsmart, Inc. 5.875% 20256 | 11,385 | 8,795 |
Petsmart, Inc. 8.875% 20256 | 7,875 | 4,784 |
Sally Holdings LLC and Sally Capital Inc. 5.625% 2025 | 3,390 | 3,390 |
Scientific Games Corp. 7.00% 20226 | 1,975 | 2,086 |
Sirius XM Radio Inc 3.875% 20226 | 2,175 | 2,191 |
Sotheby’s 5.25% 20226 | 2,435 | 2,512 |
Starbucks Corp. 2.70% 2022 | 1,500 | 1,505 |
Starbucks Corp. 3.75% 2047 | 875 | 888 |
TI Automotive Ltd. 8.75% 20236 | 873 | 941 |
Time Warner Inc. 3.80% 2027 | 605 | 605 |
Wynn Las Vegas, LLC and Wynn Capital Corp. 4.25% 20236 | 4,018 | 4,103 |
Wynn Las Vegas, LLC and Wynn Capital Corp. 5.50% 20256 | 4,425 | 4,569 |
Wynn Las Vegas, LLC and Wynn Capital Corp. 5.25% 20276 | 1,025 | 1,040 |
203,239 | ||
Telecommunication services 0.65% | ||
AT&T Inc. 2.85% 2023 | 5,205 | 5,231 |
AT&T Inc. 3.40% 2024 | 1,560 | 1,570 |
AT&T Inc. 3.90% 2027 | 1,500 | 1,513 |
AT&T Inc. 4.10% 20286 | 4,464 | 4,487 |
AT&T Inc. 4.90% 2037 | 4,675 | 4,755 |
AT&T Inc. 5.15% 2050 | 2,160 | 2,179 |
British Telecommunications PLC 9.125% 2030 | 4,225 | 6,324 |
CenturyLink, Inc. 6.75% 2023 | 7,675 | 7,550 |
Cequel Communications Holdings I, LLC and Cequel Capital Corp. 6.375% 20206 | 5,643 | 5,742 |
Deutsche Telekom International Finance BV 1.50% 20196 | 2,628 | 2,591 |
Deutsche Telekom International Finance BV 1.95% 20216 | 1,000 | 973 |
Deutsche Telekom International Finance BV 2.82% 20226 | 2,535 | 2,540 |
Deutsche Telekom International Finance BV 3.60% 20276 | 3,750 | 3,774 |
Deutsche Telekom International Finance BV 9.25% 2032 | 3,570 | 5,618 |
France Télécom 4.125% 2021 | 5,000 | 5,288 |
France Télécom 9.00% 2031 | 33 | 50 |
American Funds Insurance Series — Asset Allocation Fund — Page 70 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Telecommunication services (continued) | Principal amount (000) | Value (000) |
Frontier Communications Corp. 11.00% 2025 | $14,475 | $10,712 |
Inmarsat PLC 4.875% 20226 | 7,775 | 7,794 |
Inmarsat PLC 6.50% 20246 | 5,450 | 5,545 |
Intelsat Jackson Holding Co. 6.625% 202410,11 | 1,400 | 1,418 |
Intelsat Jackson Holding Co. 8.00% 20246 | 4,275 | 4,510 |
Ligado Networks, Term Loan, (3-month USD-LIBOR + 8.75%) 10.07% 2020 (100% PIK)10,11,12,13 | 16,454 | 15,302 |
MetroPCS Wireless, Inc. 6.625% 2023 | 3,850 | 4,023 |
Orange SA 1.625% 2019 | 2,250 | 2,223 |
Orange SA 5.50% 2044 | 3,000 | 3,693 |
SoftBank Group Corp. 4.50% 20206 | 13,190 | 13,507 |
T-Mobile US, Inc. 6.50% 2026 | 275 | 301 |
Trilogy International Partners, LLC 8.875% 20226 | 7,250 | 7,449 |
Verizon Communications Inc. 2.946% 2022 | 2,940 | 2,961 |
Verizon Communications Inc. 4.50% 2033 | 3,500 | 3,679 |
Verizon Communications Inc. 4.125% 2046 | 4,228 | 3,918 |
Wind Tre SpA 5.00% 20266 | 3,925 | 3,752 |
Windstream Holdings, Inc. 8.75% 20246 | 10,822 | 7,616 |
Ziggo Bond Finance BV 5.50% 20276 | 9,150 | 9,162 |
167,750 | ||
Materials 0.60% | ||
Aleris International, Inc. 7.875% 2020 | 1,625 | 1,617 |
Anglo American Capital PLC 3.625% 20246 | 2,035 | 2,027 |
Anglo American Capital PLC 4.00% 20276 | 2,365 | 2,352 |
Ball Corp. 4.375% 2020 | 2,450 | 2,545 |
CF Industries, Inc. 4.50% 20266 | 1,155 | 1,206 |
CF Industries, Inc. 4.95% 2043 | 4,830 | 4,588 |
Chemours Co. 6.625% 2023 | 4,990 | 5,302 |
Cleveland-Cliffs Inc. 4.875% 20246 | 1,175 | 1,175 |
Cliffs Natural Resources Inc. 5.75% 20256 | 17,195 | 16,464 |
Eastman Chemical Co. 2.70% 2020 | 7,000 | 7,048 |
First Quantum Minerals Ltd. 7.00% 20216 | 7,177 | 7,464 |
First Quantum Minerals Ltd. 7.25% 20226 | 7,925 | 8,347 |
First Quantum Minerals Ltd. 7.50% 20256 | 10,200 | 11,105 |
FMG Resources 9.75% 20226 | 7,595 | 8,423 |
Freeport-McMoRan Inc. 3.55% 2022 | 8,710 | 8,634 |
Georgia Gulf Corp. 4.625% 2021 | 3,550 | 3,656 |
Georgia-Pacific Corp. 2.539% 20196 | 7,000 | 7,026 |
H.I.G. Capital, LLC 6.75% 20246 | 1,441 | 1,441 |
Holcim Ltd. 5.15% 20236 | 7,395 | 8,090 |
Huntsman International LLC 4.875% 2020 | 4,935 | 5,151 |
International Paper Co. 7.30% 2039 | 2,005 | 2,831 |
Mosaic Co. 3.25% 2022 | 2,250 | 2,233 |
Mosaic Co. 4.05% 2027 | 2,125 | 2,134 |
Nova Chemicals Corp 5.25% 20276 | 1,700 | 1,700 |
Novelis Corp. 5.875% 20266 | 2,600 | 2,659 |
Rayonier Advanced Materials Inc. 5.50% 20246 | 3,304 | 3,308 |
Reynolds Group Inc. 5.75% 202011 | 3,629 | 3,688 |
Ryerson Inc. 11.00% 20226 | 6,190 | 6,941 |
Sherwin-Williams Co. 2.25% 2020 | 2,250 | 2,244 |
Sherwin-Williams Co. 2.75% 2022 | 1,185 | 1,181 |
Sherwin-Williams Co. 3.125% 2024 | 550 | 554 |
Sherwin-Williams Co. 3.45% 2027 | 1,395 | 1,420 |
American Funds Insurance Series — Asset Allocation Fund — Page 71 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Materials (continued) | Principal amount (000) | Value (000) |
Vale SA 6.25% 2026 | $3,340 | $3,878 |
Venator Materials 5.75% 20256 | 1,060 | 1,124 |
Warrior Met Coal, Inc. 8.00% 20246 | 975 | 1,009 |
Westlake Chemical Corp. 4.375% 2047 | 2,915 | 3,037 |
153,602 | ||
Consumer staples 0.52% | ||
Altria Group, Inc. 2.625% 2020 | 2,350 | 2,366 |
Altria Group, Inc. 4.00% 2024 | 1,250 | 1,327 |
Altria Group, Inc. 2.625% 2026 | 1,275 | 1,234 |
Altria Group, Inc. 4.50% 2043 | 3,000 | 3,265 |
Altria Group, Inc. 5.375% 2044 | 750 | 914 |
Altria Group, Inc. 3.875% 2046 | 975 | 969 |
Anheuser-Busch InBev NV 2.65% 2021 | 1,000 | 1,006 |
Anheuser-Busch InBev NV 3.30% 2023 | 5,940 | 6,084 |
Anheuser-Busch InBev NV 3.65% 2026 | 4,985 | 5,152 |
Anheuser-Busch InBev NV 4.90% 2046 | 550 | 639 |
Avon Products, Inc. 7.875% 20226 | 1,650 | 1,687 |
BJ’s Wholesale Club, Term Loan, (3-month USD-LIBOR + 7.50%) 8.953% 202510,11,12 | 1,275 | 1,248 |
British American Tobacco International Finance PLC 3.95% 20256 | 5,500 | 5,737 |
British American Tobacco PLC 3.222% 20246 | 5,000 | 5,006 |
British American Tobacco PLC 4.39% 20376 | 5,500 | 5,769 |
British American Tobacco PLC 4.54% 20476 | 1,000 | 1,056 |
Constellation Brands, Inc. 2.00% 2019 | 2,250 | 2,236 |
Constellation Brands, Inc. 2.25% 2020 | 2,250 | 2,231 |
Constellation Brands, Inc. 2.65% 2022 | 4,835 | 4,788 |
Constellation Brands, Inc. 2.70% 2022 | 395 | 393 |
Constellation Brands, Inc. 3.50% 2027 | 1,030 | 1,053 |
Constellation Brands, Inc. 4.50% 2047 | 445 | 490 |
Costco Wholesale Corp. 2.15% 2021 | 2,250 | 2,241 |
Costco Wholesale Corp. 2.30% 2022 | 2,250 | 2,233 |
Costco Wholesale Corp. 2.75% 2024 | 12,250 | 12,247 |
Costco Wholesale Corp. 3.00% 2027 | 2,250 | 2,255 |
Imperial Tobacco Finance PLC 3.50% 20236 | 4,000 | 4,080 |
Molson Coors Brewing Co. 1.45% 2019 | 425 | 420 |
Molson Coors Brewing Co. 1.90% 2019 | 2,015 | 2,006 |
Molson Coors Brewing Co. 2.25% 2020 | 1,725 | 1,717 |
Molson Coors Brewing Co. 2.10% 2021 | 165 | 162 |
Molson Coors Brewing Co. 3.00% 2026 | 460 | 451 |
Molson Coors Brewing Co. 4.20% 2046 | 2,250 | 2,300 |
PepsiCo, Inc. 1.35% 2019 | 1,290 | 1,275 |
PepsiCo, Inc. 3.00% 2027 | 2,500 | 2,494 |
Philip Morris International Inc. 2.00% 2020 | 2,000 | 1,988 |
Philip Morris International Inc. 1.875% 2021 | 2,000 | 1,964 |
Philip Morris International Inc. 2.375% 2022 | 1,960 | 1,932 |
Philip Morris International Inc. 2.50% 2022 | 2,250 | 2,231 |
Philip Morris International Inc. 2.625% 2022 | 2,395 | 2,396 |
Philip Morris International Inc. 3.25% 2024 | 5,000 | 5,086 |
Philip Morris International Inc. 3.125% 2028 | 1,500 | 1,497 |
Philip Morris International Inc. 4.25% 2044 | 2,050 | 2,164 |
Procter & Gamble Co. 1.70% 2021 | 825 | 805 |
Reckitt Benckiser Group PLC 2.375% 20226 | 2,545 | 2,496 |
Reynolds American Inc. 3.25% 2020 | 1,035 | 1,052 |
Reynolds American Inc. 4.00% 2022 | 1,035 | 1,082 |
American Funds Insurance Series — Asset Allocation Fund — Page 72 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Consumer staples (continued) | Principal amount (000) | Value (000) |
Reynolds American Inc. 4.45% 2025 | $2,455 | $2,621 |
Reynolds American Inc. 5.70% 2035 | 755 | 902 |
Reynolds American Inc. 5.85% 2045 | 2,030 | 2,542 |
Walgreens Boots Alliance, Inc. 3.30% 2021 | 7,000 | 7,122 |
Wal-Mart Stores, Inc. 2.65% 2024 | 6,250 | 6,230 |
132,641 | ||
Industrials 0.45% | ||
3M Co. 2.25% 2026 | 1,000 | 951 |
Allison Transmission Holdings, Inc. 5.00% 20246 | 2,975 | 3,075 |
Associated Materials, LLC 9.00% 20246 | 9,025 | 9,770 |
Avis Budget Group, Inc. 5.50% 2023 | 3,055 | 3,143 |
Bohai Financial Investment Holding Co., Ltd. 5.50% 20246 | 2,250 | 2,239 |
Canadian National Railway Co. 3.20% 2046 | 2,635 | 2,558 |
Corporate Risk Holdings LLC 9.50% 20196 | 3,878 | 4,057 |
Corporate Risk Holdings LLC 13.50% 2020 (100% PIK)1,3,6,13 | 952 | 1,019 |
Euramax International, Inc. 12.00% 20206 | 4,350 | 4,720 |
General Electric Co. 2.70% 2022 | 6,535 | 6,528 |
General Electric Co. 4.125% 2042 | 2,500 | 2,623 |
Hardwoods Acquisition Inc 7.50% 20216 | 2,635 | 2,437 |
Hertz Global Holdings Inc. 7.625% 20226 | 6,650 | 6,983 |
Kratos Defense & Security Solutions, Inc. 6.50% 20256 | 620 | 646 |
Lockheed Martin Corp. 2.50% 2020 | 6,015 | 6,057 |
Lockheed Martin Corp. 3.10% 2023 | 545 | 554 |
Lockheed Martin Corp. 3.55% 2026 | 8,490 | 8,829 |
LSC Communications, Inc. 8.75% 20236 | 2,100 | 2,166 |
Navios Maritime Acquisition Corp. and Navios Acquisition Finance (US) Inc. 8.125% 20216 | 2,350 | 2,003 |
Northrop Grumman Corp., 2.93% 2025 | 3,645 | 3,628 |
Northrop Grumman Corp. 3.25% 2028 | 5,995 | 6,015 |
Northrop Grumman Corp. 4.03% 2047 | 1,405 | 1,473 |
Ply Gem Industries, Inc. 6.50% 2022 | 3,550 | 3,696 |
R.R. Donnelley & Sons Co. 7.875% 2021 | 4,625 | 4,833 |
R.R. Donnelley & Sons Co. 6.50% 2023 | 3,310 | 3,211 |
Rockwell Collins, Inc. 1.95% 2019 | 1,125 | 1,120 |
Rockwell Collins, Inc. 2.80% 2022 | 3,025 | 3,032 |
Rockwell Collins, Inc. 3.20% 2024 | 2,275 | 2,295 |
Roper Technologies, Inc. 2.80% 2021 | 2,065 | 2,070 |
Roper Technologies, Inc. 3.80% 2026 | 835 | 862 |
Siemens AG 2.70% 20226 | 3,360 | 3,381 |
United Technologies Corp. 3.125% 2027 | 7,000 | 7,011 |
Virgin Australia Holdings Ltd. 8.50% 20196 | 2,500 | 2,607 |
115,592 | ||
Information technology 0.41% | ||
Almonde Inc., Term Loan, (3-month USD-LIBOR + 7.25%) 8.729% 202510,11,12 | 1,750 | 1,760 |
Alphabet Inc. 1.998% 2026 | 5,150 | 4,860 |
Apple Inc. 2.50% 2022 | 2,355 | 2,358 |
Apple Inc. 3.00% 2024 | 1,250 | 1,267 |
Apple Inc. 2.75% 2025 | 6,000 | 5,952 |
Apple Inc. 2.90% 2027 | 9,000 | 8,902 |
Apple Inc. 3.35% 2027 | 90 | 92 |
Applied Systems, Inc., Term Loan, (3-month USD-LIBOR + 7.00%) 8.693% 202510,11,12 | 600 | 622 |
BMC Software, Inc. 8.125% 20216 | 5,275 | 5,334 |
Broadcom Ltd. 2.375% 20206 | 1,500 | 1,490 |
American Funds Insurance Series — Asset Allocation Fund — Page 73 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Information technology (continued) | Principal amount (000) | Value (000) |
Broadcom Ltd. 3.00% 20226 | $1,500 | $1,488 |
Broadcom Ltd. 3.625% 20246 | 1,500 | 1,493 |
Broadcom Ltd. 3.875% 20276 | 5,800 | 5,717 |
EchoStar Corp. 6.625% 2026 | 3,450 | 3,622 |
First Data Corp. 5.375% 20236 | 2,850 | 2,974 |
First Data Corp. 5.00% 20246 | 2,400 | 2,478 |
Gogo Inc. 12.50% 20226 | 14,275 | 16,149 |
Harris Corp. 3.832% 2025 | 1,000 | 1,038 |
Infor Software 7.125% 20216,13 | 1,275 | 1,310 |
Kronos Inc., Term Loan B, (3-month USD-LIBOR + 8.25%) 9.627% 202410,11,12 | 3,000 | 3,121 |
McAfee, LLC, Term Loan, (3-month USD-LIBOR + 4.50%) 6.069% 202410,11,12 | 1,845 | 1,842 |
Microsoft Corp. 4.20% 2035 | 6,000 | 6,816 |
Microsoft Corp. 4.10% 2037 | 1,000 | 1,118 |
Oracle Corp. 2.65% 2026 | 2,000 | 1,952 |
Qorvo, Inc. 7.00% 2025 | 1,950 | 2,186 |
Solera Holdings, Inc. 10.50% 20246 | 1,125 | 1,271 |
Unisys Corp. 10.75% 20226 | 3,125 | 3,508 |
Visa Inc. 2.80% 2022 | 2,000 | 2,030 |
Visa Inc. 3.15% 2025 | 10,000 | 10,231 |
Visa Inc. 2.75% 2027 | 1,620 | 1,600 |
104,581 | ||
Real estate 0.33% | ||
Alexandria Real Estate Equities, Inc. 3.95% 2028 | 1,220 | 1,248 |
American Campus Communities, Inc. 3.35% 2020 | 1,765 | 1,801 |
American Campus Communities, Inc. 3.75% 2023 | 4,375 | 4,492 |
American Campus Communities, Inc. 4.125% 2024 | 6,225 | 6,491 |
American Campus Communities, Inc. 3.625% 2027 | 5,745 | 5,692 |
American Tower Corp. 3.55% 2027 | 1,425 | 1,417 |
American Tower Corp. 3.60% 2028 | 2,000 | 1,992 |
Brandywine Operating Partnership, LP 3.95% 2023 | 1,070 | 1,093 |
Communications Sales & Leasing, Inc. 6.00% 20236 | 1,300 | 1,280 |
Corporate Office Properties LP 3.60% 2023 | 765 | 766 |
Corporate Office Properties LP 5.25% 2024 | 3,595 | 3,882 |
EPR Properties 4.75% 2026 | 6,070 | 6,240 |
EPR Properties 4.50% 2027 | 4,365 | 4,397 |
Essex Portfolio LP 3.875% 2024 | 1,000 | 1,038 |
Essex Portfolio LP 3.50% 2025 | 5,865 | 5,923 |
Hospitality Properties Trust 4.50% 2023 | 2,295 | 2,402 |
Hospitality Properties Trust 4.50% 2025 | 325 | 338 |
Hospitality Properties Trust 4.95% 2027 | 1,000 | 1,056 |
Hospitality Properties Trust 3.95% 2028 | 3,825 | 3,717 |
Host Hotels & Resorts LP 4.50% 2026 | 705 | 739 |
Kimco Realty Corp. 3.125% 2023 | 2,820 | 2,817 |
Kimco Realty Corp. 2.70% 2024 | 1,220 | 1,183 |
Kimco Realty Corp. 3.80% 2027 | 1,295 | 1,310 |
Public Storage 2.37% 2022 | 1,115 | 1,101 |
Public Storage 3.094% 2027 | 2,705 | 2,690 |
Scentre Group 3.25% 20256 | 2,000 | 1,967 |
Scentre Group 3.50% 20256 | 4,075 | 4,100 |
Scentre Group 3.75% 20276 | 2,930 | 2,977 |
UDR, Inc. 2.95% 2026 | 1,510 | 1,454 |
WEA Finance LLC 2.70% 20196 | 200 | 201 |
American Funds Insurance Series — Asset Allocation Fund — Page 74 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Real estate (continued) | Principal amount (000) | Value (000) |
WEA Finance LLC 3.25% 20206 | $4,105 | $4,179 |
Westfield Corp. Ltd. 3.15% 20226 | 5,615 | 5,672 |
85,655 | ||
Total corporate bonds & notes | 2,290,286 | |
Mortgage-backed obligations 5.29% Federal agency mortgage-backed obligations 5.14% | ||
Fannie Mae 6.00% 202111 | 24 | 25 |
Fannie Mae 6.00% 202611 | 338 | 378 |
Fannie Mae 5.50% 203311 | 588 | 652 |
Fannie Mae 5.50% 203311 | 402 | 447 |
Fannie Mae 3.00% 203611 | 22,460 | 22,828 |
Fannie Mae 5.50% 203611 | 917 | 1,018 |
Fannie Mae 6.00% 203611 | 2,090 | 2,366 |
Fannie Mae 6.00% 203611 | 680 | 770 |
Fannie Mae 6.00% 203611 | 113 | 128 |
Fannie Mae 5.50% 203711 | 322 | 357 |
Fannie Mae 5.50% 203711 | 178 | 197 |
Fannie Mae 6.00% 203711 | 2,011 | 2,269 |
Fannie Mae 6.00% 203711 | 1,852 | 2,080 |
Fannie Mae 6.00% 203711 | 209 | 235 |
Fannie Mae 6.00% 203711 | 31 | 35 |
Fannie Mae 6.00% 203811 | 3,098 | 3,496 |
Fannie Mae 6.00% 203811 | 2,149 | 2,425 |
Fannie Mae 6.00% 203811 | 1,037 | 1,168 |
Fannie Mae 6.00% 203811 | 977 | 1,096 |
Fannie Mae 6.00% 203811 | 500 | 565 |
Fannie Mae 6.00% 203811 | 498 | 561 |
Fannie Mae 6.00% 203811 | 64 | 72 |
Fannie Mae 6.00% 203811 | 55 | 62 |
Fannie Mae 6.00% 203811 | 41 | 46 |
Fannie Mae 6.00% 203911 | 1 | 1 |
Fannie Mae 6.00% 204011 | 556 | 627 |
Fannie Mae 6.00% 204011 | 181 | 204 |
Fannie Mae 4.00% 204111 | 3,897 | 4,125 |
Fannie Mae 4.00% 204111 | 2,989 | 3,166 |
Fannie Mae 6.00% 204111 | 962 | 1,086 |
Fannie Mae 6.00% 204111 | 724 | 818 |
Fannie Mae 3.50% 204211 | 10,597 | 10,952 |
Fannie Mae 4.00% 204311 | 4,004 | 4,259 |
Fannie Mae 4.00% 204311 | 2,571 | 2,735 |
Fannie Mae 4.00% 204311 | 2,112 | 2,236 |
Fannie Mae 3.50% 204511 | 17,236 | 17,807 |
Fannie Mae 3.50% 204511 | 4,312 | 4,458 |
Fannie Mae 3.00% 204611 | 37,518 | 37,556 |
Fannie Mae 3.50% 204611 | 7,870 | 8,136 |
Fannie Mae 3.50% 204611 | 4,602 | 4,746 |
Fannie Mae 3.50% 204611 | 3,137 | 3,235 |
Fannie Mae 4.00% 204611 | 3,494 | 3,682 |
Fannie Mae 4.00% 204611 | 1,109 | 1,171 |
Fannie Mae 3.50% 204711 | 64,293 | 66,108 |
Fannie Mae 3.50% 204711 | 6,786 | 6,978 |
Fannie Mae 3.50% 204711 | 5,914 | 6,099 |
American Funds Insurance Series — Asset Allocation Fund — Page 75 of 171
Bonds, notes & other debt instruments Mortgage-backed obligations (continued) Federal agency mortgage-backed obligations (continued) | Principal amount (000) | Value (000) |
Fannie Mae 4.00% 204711 | $25,361 | $26,783 |
Fannie Mae 4.00% 204711 | 15,559 | 16,317 |
Fannie Mae 7.00% 204711 | 66 | 74 |
Fannie Mae 7.00% 204711 | 3 | 4 |
Fannie Mae 3.50% 204811,14 | 25,000 | 25,684 |
Fannie Mae 3.50% 204811,14 | 3,700 | 3,795 |
Fannie Mae 4.00% 204811,14 | 102,000 | 106,587 |
Fannie Mae 4.00% 204811,14 | 75,000 | 78,478 |
Fannie Mae 4.50% 204811,14 | 50,000 | 53,203 |
Fannie Mae 4.50% 204811,14 | 17,790 | 18,907 |
Fannie Mae, Series 2012-M14, Class A2, Multi Family 2.301% 202211,12 | 2,145 | 2,136 |
Fannie Mae, Series 2012-M9, Class A2, Multi Family 2.482% 202211 | 4,787 | 4,794 |
Fannie Mae, Series 2012-M5, Class A2, Multi Family 2.715% 202211 | 4,000 | 4,053 |
Fannie Mae, Series 2014-M1, Class A2, Multi Family 3.217% 202311,12 | 9,125 | 9,414 |
Fannie Mae, Series 2013-M14, Class A2, Multi Family 3.329% 202311,12 | 7,530 | 7,807 |
Fannie Mae, Series 2014-M2, Class A2, Multi Family 3.513% 202311,12 | 6,450 | 6,760 |
Fannie Mae, Series 2014-M9, Class A2, Multi Family 3.103% 202411,12 | 6,215 | 6,396 |
Fannie Mae, Series 2014-M3, Class A2, Multi Family 3.466% 202411,12 | 7,000 | 7,341 |
Fannie Mae, Series 2017-M3, Class A2, Multi Family 2.486% 202611,12 | 9,665 | 9,405 |
Fannie Mae, Series 2017-M7, Class A2, Multi Family 2.961% 202711,12 | 2,891 | 2,912 |
Fannie Mae, Series 2006-43, Class JO, principal only, 0% 203611 | 119 | 105 |
Fannie Mae, Series 2001-T10, Class A1, 7.00% 204111 | 201 | 234 |
Fannie Mae, Series 2002-W3, Class A5, 7.50% 204111 | 49 | 57 |
Freddie Mac 5.00% 202311 | 177 | 186 |
Freddie Mac 3.50% 203411 | 10,427 | 10,867 |
Freddie Mac 3.00% 203711 | 33,742 | 34,289 |
Freddie Mac 3.50% 203711 | 26,595 | 27,602 |
Freddie Mac 3.50% 203711 | 24,318 | 25,239 |
Freddie Mac 5.00% 203811 | 1,285 | 1,400 |
Freddie Mac 6.50% 203811 | 156 | 173 |
Freddie Mac 4.50% 203911 | 236 | 252 |
Freddie Mac 5.00% 204011 | 2,314 | 2,512 |
Freddie Mac 4.00% 204211 | 5,120 | 5,410 |
Freddie Mac 4.00% 204311 | 6,533 | 6,911 |
Freddie Mac 4.00% 204311 | 2,635 | 2,809 |
Freddie Mac 4.00% 204311 | 2,552 | 2,705 |
Freddie Mac 4.00% 204511 | 16,056 | 16,978 |
Freddie Mac 4.00% 204511 | 16,048 | 16,971 |
Freddie Mac 3.50% 204611 | 5,268 | 5,429 |
Freddie Mac 4.50% 204611 | 2,385 | 2,536 |
Freddie Mac 4.50% 204611 | 1,547 | 1,645 |
Freddie Mac 3.50% 204711 | 48,255 | 49,667 |
Freddie Mac 3.50% 204711 | 24,893 | 25,622 |
Freddie Mac 3.50% 204711 | 12,880 | 13,258 |
Freddie Mac 3.50% 204711 | 5,122 | 5,279 |
Freddie Mac 4.00% 204711 | 6,834 | 7,158 |
Freddie Mac 3.50% 204811,14 | 36,680 | 37,688 |
Freddie Mac 3.50% 204811,14 | 100 | 103 |
Freddie Mac 4.00% 204811,14 | 73,700 | 77,103 |
Freddie Mac 4.00% 204811,14 | 18,000 | 18,806 |
Freddie Mac 4.50% 204811,14 | 2,000 | 2,127 |
Freddie Mac Pool #760014 2.969% 204511,12 | 1,594 | 1,600 |
Freddie Mac, Series KS01, Class A1, Multi Family 1.693% 202211 | 1,511 | 1,496 |
Freddie Mac, Series K019, Class A2, Multi Family 2.272% 202211 | 4,000 | 3,983 |
American Funds Insurance Series — Asset Allocation Fund — Page 76 of 171
Bonds, notes & other debt instruments Mortgage-backed obligations (continued) Federal agency mortgage-backed obligations (continued) | Principal amount (000) | Value (000) |
Freddie Mac, Series K021, Class A2, Multi Family 2.396% 202211 | $3,680 | $3,681 |
Freddie Mac, Series K025, Class A2, Multi Family 2.682% 202211 | 4,000 | 4,051 |
Freddie Mac, Series K030, Class A1, Multi Family 2.779% 202211 | 4,545 | 4,594 |
Freddie Mac, Series K723, Class A2, Multi Family 2.454% 202311 | 3,025 | 3,016 |
Freddie Mac, Series K034, Class A1, Multi Family 2.669% 202311 | 1,822 | 1,840 |
Freddie Mac, Series K028, Class A2, Multi Family 3.111% 202311 | 5,900 | 6,084 |
Freddie Mac, Series K725, Class A2, Multi Family 3.002% 202411 | 5,555 | 5,685 |
Freddie Mac, Series K044, Class A2, Multi Family 2.811% 202511 | 4,265 | 4,307 |
Freddie Mac, Series K047, Class A2, Multi Family 3.329% 202511 | 4,000 | 4,167 |
Freddie Mac, Series K057, Class A2, Multi Family 2.57% 202611 | 9,510 | 9,368 |
Freddie Mac, Series K055, Class A2, Multi Family 2.673% 202611 | 10,050 | 9,983 |
Freddie Mac, Series K062, Class A2, Multi Family 3.413% 202611 | 7,175 | 7,504 |
Freddie Mac, Series K066, Class A2, Multi Family 3.117% 202711 | 4,755 | 4,859 |
Freddie Mac, Series K067, Class A2, Multi Family 3.194% 202711 | 17,070 | 17,553 |
Freddie Mac, Series K069, Class A2, Multi Family 3.187% 202711 | 2,280 | 2,341 |
Freddie Mac, Series K064, Class A2, Multi Family 3.224% 202711 | 5,265 | 5,433 |
Freddie Mac, Series K070, Class A2, Multi Family 3.303% 202711 | 6,465 | 6,697 |
Freddie Mac, Series K063, Class A2, Multi Family 3.43% 202711 | 4,375 | 4,581 |
Freddie Mac, Series T-041, Class 3A, 5.649% 203211,12 | 309 | 330 |
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-2, Class HA, 2.00% 205611 | 12,235 | 12,160 |
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-1, Class HA, 2.00% 205611 | 6,374 | 6,350 |
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-3, Class HA, 2.25% 205611 | 2,818 | 2,832 |
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-2, Class MA, 3.00% 205611 | 11,298 | 11,298 |
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-4, Class HT, 2.25% 205711 | 2,165 | 2,160 |
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-4, Class MT, 3.50% 205711 | 1,645 | 1,683 |
Government National Mortgage Assn. 4.50% 204511 | 6,852 | 7,243 |
Government National Mortgage Assn. 4.00% 204711 | 7,655 | 7,995 |
Government National Mortgage Assn. 4.00% 204711 | 4,860 | 5,076 |
Government National Mortgage Assn. 4.50% 204711 | 9,496 | 10,012 |
Government National Mortgage Assn. 4.00% 204811,14 | 70,000 | 73,015 |
Government National Mortgage Assn. 4.00% 204811,14 | 23,000 | 23,984 |
Government National Mortgage Assn. 4.00% 204811,14 | 14,250 | 14,859 |
1,317,252 | ||
Commercial mortgage-backed securities 0.06% | ||
Citigroup Commercial Mortgage Trust, Series 2015-GC29, Class AAB, 2.984% 204811 | 1,185 | 1,198 |
Commercial Mortgage Trust, Series 2015-PC1, Class A5, 3.902% 205011 | 4,735 | 4,997 |
CSAIL Commercial Mortgage Trust, Series 2015-C4, Class ASB, 3.617% 204811 | 1,400 | 1,453 |
LB-UBS Commercial Mortgage Trust, Series 2007-C6, Class AM, 6.114% 204011,12 | 1,451 | 1,450 |
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C27, Class ASB, 3.557% 204711 | 1,000 | 1,041 |
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C22, Class ASB, 3.04% 204811 | 1,180 | 1,198 |
Morgan Stanley Capital I Trust, Series 2014-CPT, Class A, 3.35% 20296,11 | 2,650 | 2,713 |
Wachovia Bank Commercial Mortgage Trust, Series 2007-C33, Class AM, 6.011% 205111,12 | 1,566 | 1,564 |
15,614 | ||
Collateralized mortgage-backed (privately originated) 0.05% | ||
Connecticut Avenue Securities, Series 2014-C02, Class 1M1, (1-month USD-LIBOR + 0.95%) 2.502% 202411,12 | 40 | 40 |
CS First Boston Mortgage Securities Corp., Series 2004-5, Class IVA1, 6.00% 203411 | 434 | 443 |
MASTR Alternative Loan Trust, Series 2004-2, Class 2A1, 6.00% 203411 | 966 | 1,030 |
Mortgage Repurchase Agreement Financing Trust, Series 2017-1, Class A1, (1-month USD-LIBOR + 0.85%) 2.282% 20196,11,12 | 2,070 | 2,070 |
Nationstar HECM Loan Trust, Series 2016-2A, Class A, 2.2394% 20261,6,11,12 | 238 | 238 |
Nationstar HECM Loan Trust, Series 2017-1A, Class A, 1.968 % 20271,6,11 | 353 | 352 |
American Funds Insurance Series — Asset Allocation Fund — Page 77 of 171
Bonds, notes & other debt instruments Mortgage-backed obligations (continued) Collateralized mortgage-backed (privately originated) (continued) | Principal amount (000) | Value (000) |
Nationstar HECM Loan Trust, Series 2017-1A, Class M1, 2.9419% 20276,11 | $420 | $421 |
Station Place Securitization Trust, Series 2017-1, Class A, (1-month USD-LIBOR + 0.90%) 2.452% 20496,11,12 | 648 | 649 |
Towd Point Mortgage Trust, Series 2016-4, Class A1, 2.25% 20566,11,12 | 1,265 | 1,258 |
Towd Point Mortgage Trust, Series 2017-1, Class A1, 2.75% 20566,11,12 | 5,363 | 5,369 |
Towd Point Mortgage Trust, Series 2017-4, Class A1, 2.75% 20576,11,12 | 3,220 | 3,214 |
15,084 | ||
Other mortgage-backed securities 0.04% | ||
National Australia Bank 1.25% 20186,11 | 3,000 | 2,998 |
Royal Bank of Canada 1.875% 202011 | 7,000 | 6,944 |
9,942 | ||
Total mortgage-backed obligations | 1,357,892 | |
Asset-backed obligations 0.53% | ||
AmeriCredit Automobile Receivables Trust, Series 2016-4, Class A2A, 1.34% 202011 | 211 | 211 |
AmeriCredit Automobile Receivables Trust, Series 2016-3, Class A3, 1.46% 202111 | 1,500 | 1,493 |
AmeriCredit Automobile Receivables Trust, Series 2016-3, Class B, 1.80% 202111 | 500 | 497 |
AmeriCredit Automobile Receivables Trust, Series 2015-3, Class C, 2.73% 202111 | 3,455 | 3,474 |
Angel Oak Capital Advisors, LLC, Series 2013-9A, Class A1R, CLO, (3-month USD-LIBOR + 1.01%) 2.373% 20256,11,12 | 3,665 | 3,671 |
BlueMountain CLO Ltd., Series 2013-4A, Class AR, (3-month USD-LIBOR + 1.01%) 2.369% 20256,11,12 | 2,945 | 2,956 |
BlueMountain CLO Ltd., Series 2014-2A, Class AR, (3-month USD LIBOR + 0.93%) 2.293% 20266,11,12 | 4,515 | 4,528 |
Chrysler Capital Auto Receivables Trust, Series 2015-BA, Class A3, 1.91% 20206,11 | 182 | 182 |
Chrysler Capital Auto Receivables Trust, Series 2015-AA, Class B, 2.07% 20216,11 | 500 | 500 |
CIFC Funding Ltd., Series 2014-3A, Class AR, (3-month USD-LIBOR + 0.95%) 2.313% 20266,11,12 | 6,000 | 6,006 |
Citibank Credit Card Issuance Trust, Series 2008-A2, Class A2, (1-month USD-LIBOR + 1.15%) 2.702% 202011,12 | 2,000 | 2,002 |
Citibank Credit Card Issuance Trust, Series 2014-A6, Class A6, 2.15% 202111 | 275 | 275 |
CPS Auto Receivables Trust, Series 2017-B, Class A, 1.75% 20206,11 | 1,551 | 1,549 |
Discover Card Execution Note Trust, Series 2015-A1, Class A1, (1-month USD-LIBOR + 0.35%) 1.827% 202011,12 | 200 | 200 |
Drive Auto Receivables Trust, Series 2017-AA, Class C, 2.98% 20226,11 | 850 | 856 |
Drivetime Auto Owner Trust, Series 2016-3A, Class C, 3.15% 20226,11 | 2,395 | 2,403 |
Enterprise Fleet Financing LLC, Series 2015-1, Class A2, 1.30% 20206,11 | 177 | 177 |
Enterprise Fleet Financing LLC, Series 2016-2, Class A2, 1.74% 20226,11 | 558 | 557 |
Enterprise Fleet Financing LLC, Series 2017-1, Class A2, 2.13% 20226,11 | 621 | 622 |
Enterprise Fleet Financing LLC, Series 2017-1, Class A3, 2.60% 20226,11 | 655 | 659 |
Ford Credit Auto Owner Trust, Series 2016-2, Class A, 2.03% 20276,11 | 2,900 | 2,860 |
Ford Credit Auto Owner Trust, Series 2017-1, Class A, 2.62% 20286,11 | 3,330 | 3,335 |
Ford Credit Auto Owner Trust, Series 2017-2, Class A, 2.36% 20296,11 | 6,590 | 6,536 |
Ford Credit Floorplan Master Owner Trust, Series 2015-1, Class A1, 1.42% 202011 | 5,740 | 5,739 |
Ford Credit Floorplan Master Owner Trust, Series 2016-3, Class A1, 1.55% 202111 | 3,500 | 3,470 |
Global SC Finance II SRL, Series 2013-1A, Class A, 2.98% 20286,11 | 133 | 132 |
Global SC Finance II SRL, Series 2014-1A, Class A1, 3.19% 20296,11 | 293 | 291 |
Global SC Finance II SRL, Series 2017-1A, Class A, 3.85% 20376,11 | 1,883 | 1,916 |
Hertz Vehicle Financing LLC, Rental Car Asset-backed Notes, Series 2013-1A, Class A2, 1.83% 20196,11 | 2,000 | 1,997 |
Madison Park Funding Ltd., Series 2014-13A, Class AR, CLO, (3-month USD-LIBOR + 1.11%) 2.467% 20256,11,12 | 6,800 | 6,807 |
Santander Drive Auto Receivables Trust, Series 2017-1, Class A2, 1.49% 202011 | 320 | 319 |
Santander Drive Auto Receivables Trust, Series 2016-1, Class A3, 1.62% 202011 | 163 | 163 |
Santander Drive Auto Receivables Trust, Series 2017-1, Class A3, 1.77% 202011 | 1,255 | 1,253 |
Santander Drive Auto Receivables Trust, Series 2015-2, Class B, 1.83% 202011 | 88 | 88 |
Santander Drive Auto Receivables Trust, Series 2016-1, Class B, 2.47% 202011 | 100 | 100 |
American Funds Insurance Series — Asset Allocation Fund — Page 78 of 171
��
Bonds, notes & other debt instruments Asset-backed obligations (continued) | Principal amount (000) | Value (000) |
Santander Drive Auto Receivables Trust, Series 2017-1, Class B, 2.10% 202111 | $740 | $738 |
Santander Drive Auto Receivables Trust, Series 2015-3, Class C, 2.74% 202111 | 5,000 | 5,024 |
Santander Drive Auto Receivables Trust, Series 2015-4, Class C, 2.97% 202111 | 300 | 302 |
Santander Drive Auto Receivables Trust, Series 2017-1, Class C, 2.58% 202211 | 740 | 738 |
Sound Point CLO Ltd, Series 2013-2A, Class A1R, CLO, (3-month USD LIBOR + 0.99%) 2.349% 20256,11,12 | 3,177 | 3,179 |
Symphony CLO Ltd, Series 2013-12A, Class AR, CLO, (3-month USD-LIBOR + 1.03%) 2.389% 20256,11,12 | 8,775 | 8,781 |
TAL Advantage V LLC, Series 2013-2A, Class A, 3.55% 20386,11 | 1,550 | 1,548 |
TAL Advantage V LLC, Series 2014-1A, Class A, 3.51% 20396,11 | 1,418 | 1,418 |
Triton Container Finance LLC, Series 2017-1A, Class A, 3.52% 20426,11 | 2,324 | 2,311 |
Triton Container Finance LLC, Series 2017-2A, Class A, 3.62% 20426,11 | 1,984 | 1,987 |
Verizon Owner Trust, Series 2016-2A, Class A, 1.68% 20216,11 | 5,925 | 5,886 |
Verizon Owner Trust, Series 2017-2A, Class A, 1.92% 20216,11 | 7,900 | 7,850 |
Verizon Owner Trust, Series 2017-1A, Class A, 2.06% 20216,11 | 8,215 | 8,197 |
Volkswagen Auto Loan Enhanced Trust, Series 2014-2, Class A3, 0.95% 201911 | 246 | 246 |
Westlake Automobile Receivables Trust, Series 2017-1A, Class A2, 1.78% 20206,11 | 761 | 760 |
Wheels SPV 2 LLC, Series 2016-1A, Class A2, 1.59% 20256,11 | 611 | 609 |
World Financial Network Credit Card Master Note Trust, Series 2016-B, Class A, 1.44% 202211 | 4,000 | 3,989 |
World Financial Network Credit Card Master Note Trust, Series 2012-A, Class A, 3.14% 202311 | 14,170 | 14,346 |
135,733 | ||
Bonds & notes of governments & government agencies outside the U.S. 0.22% | ||
CPPIB Capital Inc. 1.25% 20196 | 3,900 | 3,843 |
CPPIB Capital Inc. 2.25% 20226 | 4,286 | 4,261 |
CPPIB Capital Inc. 2.75% 20276 | 6,600 | 6,561 |
European Investment Bank 2.25% 2022 | 4,470 | 4,450 |
KfW 2.125% 2022 | 375 | 372 |
Landwirtschaftliche Rentenbank 1.75% 2019 | 130 | 130 |
Manitoba (Province of) 3.05% 2024 | 2,600 | 2,654 |
Quebec (Province of) 2.375% 2022 | 6,232 | 6,195 |
Quebec (Province of) 2.75% 2027 | 9,000 | 8,922 |
Saudi Arabia (Kingdom of) 2.875% 20236 | 1,320 | 1,300 |
Saudi Arabia (Kingdom of) 3.625% 20286 | 2,060 | 2,045 |
Saudi Arabia (Kingdom of) 4.625% 20476 | 1,330 | 1,361 |
Spain (Kingdom of) 4.00% 20186 | 15,000 | 15,063 |
57,157 | ||
Federal agency bonds & notes 0.20% | ||
Fannie Mae 2.00% 2022 | 3,000 | 2,977 |
Fannie Mae 1.875% 2026 | 13,000 | 12,292 |
Federal Home Loan Bank 0.875% 2018 | 17,140 | 17,084 |
Freddie Mac 0.75% 2018 | 11,880 | 11,855 |
Freddie Mac 0.75% 2018 | 6,888 | 6,886 |
51,094 | ||
Municipals 0.07% Illinois 0.06% | ||
G.O. Bonds, Pension Funding Series 2003, 5.10% 203311 | 13,715 | 13,716 |
Sales Tax Securitization Corp., Sales Tax Rev. Ref. Bonds, Series 2017-B, 3.587% 2043 | 2,000 | 2,003 |
15,719 | ||
California 0.01% | ||
High-Speed Passenger Train G.O. Ref. Bonds, Series 2017-B, 2.193% 2047 (put 2020) | 2,500 | 2,507 |
American Funds Insurance Series — Asset Allocation Fund — Page 79 of 171
Bonds, notes & other debt instruments Municipals (continued) Minnesota 0.00% | Principal amount (000) | Value (000) |
Housing Fin. Agcy., Homeownership Fin. Bonds (GNMA and FNMA Pass-Through Program), Series 2013-A, 2.35% 204311 | $31 | $30 |
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2013-A, AMT, 3.00% 2031 | 10 | 10 |
Housing Fin. Agcy., Residential Housing Fin. Bonds, Series 2014-A, 4.00% 2038 | 235 | 246 |
286 | ||
Connecticut 0.00% | ||
Housing Fin. Auth., Housing Mortgage Fin. Program Bonds, Series 2014-A-1, 4.00% 2044 | 65 | 68 |
Housing Fin. Auth., Housing Mortgage Fin. Program Bonds, Series 2014-C-1, 4.00% 2044 | 95 | 101 |
169 | ||
Maryland 0.00% | ||
Community Dev. Administration, Dept. of Housing and Community Dev., Residential Rev. Ref. Bonds, Series 2014-E, 2.857% 2040 | 75 | 75 |
South Carolina 0.00% | ||
Housing Fin. Auth., Mortgage Rev. Ref. Bonds, AMT, 4.00% 2041 | 60 | 63 |
Nebraska 0.00% | ||
Investment Fin. Auth., Single Family Housing Rev. Bonds, Series 2013-A, 3.00% 2043 | 15 | 15 |
Investment Fin. Auth., Single Family Housing Rev. Bonds, Series 2013-C, 4.50% 2043 | 10 | 10 |
25 | ||
Tennessee 0.00% | ||
Housing Dev. Agcy., Residential Fin. Program Bonds, Series 2013-2-A, AMT, 4.00% 2043 | 20 | 21 |
South Dakota 0.00% | ||
Housing Dev. Auth., Homeownership Mortgage Bonds, Series 2014-F, 4.00% 2034 | 15 | 15 |
Massachusetts 0.00% | ||
Housing Fin. Agcy., Single Family Housing Rev. Bonds, Series 167, 4.00% 2043 | 10 | 10 |
Total municipals | 18,890 | |
Total bonds, notes & other debt instruments (cost: $6,788,125,000) | 6,840,318 | |
Short-term securities 10.93% | ||
Bank of New York Mellon Corp. 1.21%–1.23% due 1/23/2018–2/1/2018 | 84,200 | 84,099 |
CAFCO, LLC 1.52% due 2/27/20186 | 50,000 | 49,863 |
Chariot Funding, LLC 1.50%–1.85% due 3/14/2018–6/19/20186 | 137,300 | 136,335 |
Cisco Systems, Inc. 1.21%–1.50% due 1/10/2018–3/8/20186 | 130,000 | 129,779 |
Coca-Cola Co. 1.25%–1.28% due 1/25/2018–2/13/20186 | 88,670 | 88,535 |
ExxonMobil Corp. 1.41% due 2/7/2018 | 75,000 | 74,881 |
Fannie Mae 1.30% due 3/28/2018 | 25,000 | 24,917 |
Federal Home Loan Bank 1.08%–1.36% due 1/10/2018–3/28/2018 | 1,089,945 | 1,088,477 |
Freddie Mac 1.06%–1.28% due 2/7/2018–4/6/2018 | 375,000 | 374,036 |
GE Capital Treasury Services (U.S.) LLC 1.39% due 3/6/2018 | 50,000 | 49,859 |
General Electric Co. 1.42% due 1/2/2018 | 7,800 | 7,799 |
IBM Credit LLC 1.50% due 3/13/20186 | 25,000 | 24,922 |
John Deere Canada ULC 1.32% due 1/9/20186 | 25,000 | 24,989 |
American Funds Insurance Series — Asset Allocation Fund — Page 80 of 171
Short-term securities | Principal amount (000) | Value (000) |
National Rural Utilities Cooperative Finance Corp. 1.51% due 1/25/2018 | $25,000 | $24,972 |
Paccar Financial Corp. 1.26% due 1/10/2018 | 13,000 | 12,994 |
Pfizer Inc. 1.31% due 2/21/20186 | 43,000 | 42,905 |
Private Export Funding Corp. 1.37% due 3/19/20186 | 21,200 | 21,126 |
Procter & Gamble Co. 1.21%–1.30% due 1/12/2018–2/13/20186 | 151,000 | 150,819 |
Qualcomm Inc. 1.27% due 1/18/20186 | 32,600 | 32,573 |
U.S. Treasury Bills 1.02%–1.44% due 1/2/2018–6/14/2018 | 360,000 | 359,419 |
Total short-term securities (cost: $2,803,685,000) | 2,803,299 | |
Total investment securities 101.95% (cost: $20,893,837,000) | 26,159,381 | |
Other assets less liabilities (1.95)% | (499,287) | |
Net assets 100.00% | $25,660,094 |
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.
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount15 (000) | Value at 12/31/201716 (000) | Unrealized (depreciation) appreciation at 12/31/2017 (000) |
10 Year Ultra U.S. Treasury Note Futures | Short | 250 | March 2018 | $(25,000) | $(33,391) | $(235) |
30 Year Ultra U.S. Treasury Bond Futures | Short | 250 | March 2018 | (25,000) | (41,914) | (278) |
5 Year U.S. Treasury Note Futures | Long | 614 | April 2018 | 61,400 | 71,325 | (313) |
2 Year U.S. Treasury Note Futures | Short | 179 | April 2018 | (35,800) | (38,325) | 73 |
$(753) |
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2017 (000) | Upfront payments/ receipts (000) | Unrealized appreciation (depreciation) at 12/31/2017 (000) |
3-month USD-LIBOR | 1.501% | 6/8/2019 | $100,000 | $658 | $— | $658 |
1.336% | U.S. EFFR | 6/8/2019 | 100,000 | (605) | — | (605) |
1.6365% | 3-month USD-LIBOR | 10/16/2019 | 124,000 | (866) | — | (866) |
3-month USD-LIBOR | 3.402% | 6/23/2044 | 18,000 | (3,124) | — | (3,124) |
3-month USD-LIBOR | 2.945% | 10/16/2044 | 28,000 | (2,311) | — | (2,311) |
$— | $(6,248) |
American Funds Insurance Series — Asset Allocation Fund — Page 81 of 171
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous,“ was $1,001,357,000, which represented 3.90% of the net assets of the fund. This amount includes $957,800,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Security did not produce income during the last 12 months. |
3 | Value determined using significant unobservable inputs. |
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. |
5 | Represents an affiliated company as defined under the Investment Company Act of 1940. |
6 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $1,510,770,000, which represented 5.89% of the net assets of the fund. |
7 | A portion of this security was pledged as collateral. The total value of pledged collateral was $8,119,000, which represented .03% of the net assets of the fund. |
8 | Index-linked bond whose principal amount moves with a government price index. |
9 | Scheduled interest and/or principal payment was not received. |
10 | Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $49,647,000, which represented .19% of the net assets of the fund. |
11 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
12 | Coupon rate may change periodically. |
13 | Payment in kind; the issuer has the option of paying additional securities in lieu of cash. Most recent payment was 100% cash unless otherwise noted. |
14 | Purchased on a TBA basis. |
15 | Notional amount is calculated based on the number of contracts and notional contract size. |
16 | Value is calculated based on the notional amount and current market price. |
Private placement securities | Acquisition date(s) | Cost (000) | Value (000) | Percent of net assets |
Blackstone CQP Holdco LP, 6.50% 2021 | 3/6/2017 | $21,325 | $21,751 | .08% |
Blackstone CQP Holdco LP, 6.00% 2021 | 8/9/2017 | 5,700 | 5,743 | .02 |
CEVA Group PLC, Series A-1, convertible preferred, (3-month USD-LIBOR + 3.00%) 4.359% | 5/2/2013 | 6,354 | 4,183 | .02 |
CEVA Group PLC, Series A-2, convertible preferred, (3-month USD-LIBOR + 2.00%) 3.359% | 3/10/2010-1/23/2012 | 8,675 | 2,879 | .01 |
CEVA Group PLC | 5/2/2013 | 11,716 | 2,948 | .01 |
Corporate Risk Holdings I, Inc. | 8/31/2015-4/21/2017 | 1,888 | 2,985 | .01 |
Corporate Risk Holdings Corp. | 8/31/2015-4/21/2017 | — | — | .00 |
Rotech Healthcare Inc. | 9/26/2013 | 6,949 | 368 | .00 |
Total private placement securities | $ 62,607 | $ 40,857 | .15% |
Key to abbreviations and symbol |
ADR = American Depositary Receipts |
Agcy. = Agency |
AMT = Alternative Minimum Tax |
Auth. = Authority |
CAD = Canadian dollars |
CLO = Collateralized Loan Obligations |
Dept. = Department |
Dev. = Development |
EFFR = Federal Funds Effective Rate |
Fin. = Finance |
G.O. = General Obligation |
LIBOR = London Interbank Offered Rate |
Ref. = Refunding |
Rev. = Revenue |
TBA = To-be-announced |
USD/$ = U.S. dollars |
American Funds Insurance Series — Asset Allocation Fund — Page 82 of 171
Global Balanced Fund
Investment portfolio
December 31, 2017
Common stocks 61.54% Information technology 11.18% | Shares | Value (000) |
Nintendo Co., Ltd.1 | 19,800 | $7,208 |
Microsoft Corp. | 71,100 | 6,082 |
ASML Holding NV1 | 34,000 | 5,899 |
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 664,000 | 5,102 |
Keyence Corp.1 | 4,400 | 2,457 |
Amphenol Corp., Class A | 24,000 | 2,107 |
Alphabet Inc., Class C2 | 2,005 | 2,098 |
Symantec Corp. | 62,565 | 1,756 |
Visa Inc., Class A | 14,600 | 1,665 |
Broadcom Ltd. | 5,850 | 1,503 |
Apple Inc. | 8,800 | 1,489 |
Samsung Electronics Co., Ltd.1 | 615 | 1,461 |
TravelSky Technology Ltd., Class H1 | 250,000 | 749 |
39,576 | ||
Industrials 8.31% | ||
Boeing Co. | 16,750 | 4,940 |
Harmonic Drive Systems Inc.1 | 50,300 | 2,935 |
Flughafen Zürich AG1 | 12,235 | 2,798 |
ASSA ABLOY AB, Class B1 | 118,000 | 2,448 |
BAE Systems PLC1 | 303,000 | 2,330 |
AB Volvo, Class B1 | 102,000 | 1,898 |
Caterpillar Inc. | 12,000 | 1,891 |
Edenred SA1 | 65,000 | 1,883 |
MTU Aero Engines AG1 | 9,000 | 1,610 |
Cummins Inc. | 8,600 | 1,519 |
Northrop Grumman Corp. | 3,450 | 1,059 |
KONE Oyj, Class B1 | 19,700 | 1,057 |
International Consolidated Airlines Group, SA (CDI)1 | 120,000 | 1,052 |
General Electric Co. | 57,000 | 995 |
Lockheed Martin Corp. | 3,080 | 989 |
29,404 | ||
Financials 8.04% | ||
HSBC Holdings PLC (GBP denominated)1 | 539,633 | 5,565 |
JPMorgan Chase & Co. | 42,700 | 4,567 |
BM&FBOVESPA SA - Bolsa de Valores, Mercadorias e Futuros, ordinary nominative | 376,000 | 2,582 |
Wells Fargo & Co. | 40,200 | 2,439 |
HDFC Bank Ltd. (ADR) | 21,605 | 2,197 |
AIA Group Ltd.1 | 250,000 | 2,132 |
Sberbank of Russia PJSC (ADR)1 | 123,000 | 2,082 |
Bank Central Asia Tbk PT1 | 1,080,000 | 1,741 |
BlackRock, Inc. | 3,000 | 1,541 |
BNP Paribas SA1 | 18,200 | 1,357 |
American Funds Insurance Series — Global Balanced Fund — Page 83 of 171
Common stocks Financials (continued) | Shares | Value (000) |
Grupo Financiero Galicia SA, Class B (ADR) | 18,500 | $1,218 |
Goldman Sachs Group, Inc. | 4,000 | 1,019 |
28,440 | ||
Consumer staples 7.20% | ||
British American Tobacco PLC1 | 104,700 | 7,066 |
British American Tobacco PLC (ADR) | 22,146 | 1,484 |
Philip Morris International Inc. | 36,700 | 3,877 |
Nestlé SA1 | 43,800 | 3,764 |
Altria Group, Inc. | 51,000 | 3,642 |
Coca-Cola European Partners PLC | 48,000 | 1,913 |
Pernod Ricard SA1 | 8,800 | 1,393 |
Coca-Cola Co. | 29,000 | 1,330 |
Procter & Gamble Co. | 11,000 | 1,011 |
25,480 | ||
Health care 5.01% | ||
Humana Inc. | 20,830 | 5,167 |
Merck & Co., Inc. | 56,120 | 3,158 |
Mettler-Toledo International Inc.2 | 3,500 | 2,168 |
Fisher & Paykel Healthcare Corp. Ltd.1 | 204,000 | 2,069 |
AstraZeneca PLC1 | 17,700 | 1,215 |
Medtronic PLC | 15,000 | 1,211 |
Express Scripts Holding Co.2 | 14,000 | 1,045 |
Novartis AG1 | 11,800 | 997 |
UnitedHealth Group Inc. | 3,255 | 718 |
17,748 | ||
Materials 4.42% | ||
DowDuPont Inc. | 63,075 | 4,492 |
Linde AG, non-registered shares1,2 | 8,900 | 2,082 |
Croda International PLC1 | 31,900 | 1,905 |
WestRock Co. | 24,570 | 1,553 |
Koninklijke DSM NV1 | 14,000 | 1,334 |
LyondellBasell Industries NV | 12,000 | 1,324 |
Boral Ltd.1 | 185,000 | 1,121 |
Air Liquide SA, bonus shares1 | 6,875 | 865 |
Rio Tinto PLC1 | 15,000 | 792 |
The Chemours Co. | 3,200 | 160 |
15,628 | ||
Energy 4.37% | ||
Royal Dutch Shell PLC, Class B1 | 109,200 | 3,683 |
Royal Dutch Shell PLC, Class A1 | 585 | 20 |
ConocoPhillips | 49,506 | 2,717 |
Enbridge Inc. (CAD denominated) | 50,594 | 1,979 |
Enbridge Inc. (CAD denominated)1,3 | 16,157 | 619 |
LUKOIL Oil Co. PJSC (ADR)1 | 39,800 | 2,277 |
Reliance Industries Ltd.1 | 106,000 | 1,529 |
Schlumberger Ltd. | 20,400 | 1,375 |
Chevron Corp. | 10,000 | 1,252 |
15,451 |
American Funds Insurance Series — Global Balanced Fund — Page 84 of 171
Common stocks Consumer discretionary 4.31% | Shares | Value (000) |
Amazon.com, Inc.2 | 3,400 | $3,976 |
Peugeot SA1 | 136,500 | 2,773 |
Nokian Renkaat Oyj1 | 50,634 | 2,294 |
Home Depot, Inc. | 10,000 | 1,895 |
LVMH Moët Hennessy-Louis Vuitton SE1 | 4,195 | 1,232 |
General Motors Co. | 25,000 | 1,025 |
Priceline Group Inc.2 | 525 | 912 |
ProSiebenSat.1 Media SE1 | 20,000 | 689 |
HUGO BOSS AG1 | 5,600 | 475 |
15,271 | ||
Utilities 2.11% | ||
Enel Américas SA (ADR) | 197,000 | 2,201 |
Ørsted AS1 | 33,800 | 1,841 |
ENN Energy Holdings Ltd.1 | 232,000 | 1,646 |
Power Assets Holdings Ltd.1 | 120,500 | 1,017 |
EDP - Energias de Portugal, SA1 | 221,000 | 765 |
7,470 | ||
Real estate 1.73% | ||
Daito Trust Construction Co., Ltd.1 | 11,000 | 2,241 |
Link REIT1 | 211,697 | 1,962 |
Equinix, Inc. REIT | 4,240 | 1,921 |
6,124 | ||
Miscellaneous 4.86% | ||
Other common stocks in initial period of acquisition | 17,202 | |
Total common stocks (cost: $160,781,000) | 217,794 | |
Bonds, notes & other debt instruments 31.65% Bonds & notes of governments & government agencies outside the U.S. 14.13% | Principal amount (000) | |
Abu Dhabi (Emirate of) 2.50% 20223 | $200 | 196 |
Abu Dhabi (Emirate of) 3.125% 20273 | 200 | 196 |
Australia (Commonwealth of), Series 124, 5.75% 2021 | A$1,225 | 1,066 |
Australia (Commonwealth of), Series 128, 5.75% 2022 | 1,120 | 1,003 |
Belgium (Kingdom of), Series 77, 1.00% 2026 | €275 | 345 |
Brazil (Federative Republic of) 0% 2021 | BRL1,900 | 419 |
Canada 1.00% 2022 | C$300 | 229 |
Canada 2.25% 2025 | 2,050 | 1,660 |
Chile (Republic of) 5.50% 2020 | CLP50,000 | 85 |
Colombia (Republic of) 4.375% 2021 | $200 | 211 |
Colombia (Republic of), Series B, 7.50% 2026 | COP1,200,000 | 430 |
European Investment Bank 2.25% 2022 | $225 | 224 |
French Republic O.A.T. 0.50% 2026 | €250 | 301 |
French Republic O.A.T. 1.00% 2027 | 350 | 434 |
French Republic O.A.T. 3.25% 2045 | 100 | 162 |
French Republic O.A.T. 2.00% 2048 | 150 | 190 |
Germany (Federal Republic of) 2.25% 2021 | 60 | 79 |
Germany (Federal Republic of) 0.10% 20234 | 53 | 68 |
Germany (Federal Republic of) 0.50% 2026 | 670 | 823 |
Germany (Federal Republic of) 2.50% 2046 | 670 | 1,056 |
Germany (Federal Republic of) 1.25% 2048 | 400 | 479 |
India (Republic of) 7.80% 2021 | INR39,200 | 629 |
American Funds Insurance Series — Global Balanced Fund — Page 85 of 171
Bonds, notes & other debt instruments Bonds & notes of governments & government agencies outside the U.S. (continued) | Principal amount (000) | Value (000) |
India (Republic of) 7.68% 2023 | INR36,900 | $590 |
India (Republic of) 8.83% 2023 | 10,400 | 174 |
India (Republic of) 6.97% 2026 | 74,000 | 1,137 |
Indonesia (Republic of) 3.75% 2022 | $410 | 423 |
Indonesia (Republic of) 3.85% 20273 | 400 | 411 |
Ireland (Republic of) 3.90% 2023 | €100 | 144 |
Ireland (Republic of) 3.40% 2024 | 325 | 466 |
Ireland (Republic of) 5.40% 2025 | 260 | 422 |
Ireland (Republic of) 1.00% 2026 | 500 | 616 |
Ireland (Republic of) 2.40% 2030 | 30 | 42 |
Ireland (Republic of) 2.00% 2045 | 125 | 158 |
Israel (State of) 3.15% 2023 | $400 | 410 |
Israel (State of) 2.00% 2027 | ILS1,400 | 415 |
Israel (State of) 5.50% 2042 | 1,000 | 427 |
Italy (Republic of) 0.90% 2022 | €800 | 967 |
Italy (Republic of) 1.45% 2022 | 850 | 1,053 |
Italy (Republic of) 0.95% 2023 | 150 | 180 |
Italy (Republic of) 4.75% 2023 | 100 | 145 |
Italy (Republic of) 4.50% 2024 | 200 | 286 |
Italy (Republic of) 1.50% 2025 | 250 | 299 |
Japan, Series 362, 0.10% 2018 | ¥40,000 | 355 |
Japan, Series 115, 0.20% 2018 | 5,000 | 45 |
Japan, Series 315, 1.20% 2021 | 65,000 | 603 |
Japan, Series 326, 0.70% 2022 | 10,000 | 92 |
Japan, Series 17, 0.10% 20234 | 10,380 | 96 |
Japan, Series 19, 0.10% 20244 | 30,120 | 281 |
Japan, Series 18, 0.10% 20244 | 20,640 | 192 |
Japan, Series 337, 0.30% 2024 | 105,000 | 955 |
Japan, Series 340, 0.40% 2025 | 20,000 | 183 |
Japan, Series 344, 0.10% 2026 | 70,000 | 626 |
Japan, Series 21, 0.10% 20264 | 40,199 | 378 |
Japan, Series 346, 0.10% 2027 | 140,000 | 1,252 |
Japan, Series 116, 2.20% 2030 | 14,000 | 155 |
Japan, Series 145, 1.70% 2033 | 165,000 | 1,768 |
Japan, Series 21, 2.30% 2035 | 20,000 | 233 |
Japan, Series 161, 0.60% 2037 | 170,000 | 1,524 |
Japan, Series 36, 2.00% 2042 | 10,000 | 115 |
Japan, Series 42, 1.70% 2044 | 55,000 | 601 |
Japan, Series 53, 0.60% 2046 | 10,000 | 84 |
KfW 2.125% 2022 | $250 | 248 |
Kuwait (State of) 2.75% 20223 | 200 | 200 |
Lithuania (Republic of) 7.375% 2020 | 100 | 111 |
Malaysia (Federation of), Series 0511, 3.58% 2018 | MYR293 | 73 |
Malaysia (Federation of), Series 0515, 3.759% 2019 | 550 | 137 |
Malaysia (Federation of), Series 0315, 3.659% 2020 | 58 | 14 |
Malaysia (Federation of), Series 0314, 4.048% 2021 | 350 | 88 |
Malaysia (Federation of), Series 0215, 3.795% 2022 | 400 | 99 |
Malaysia (Federation of), Series 0116, 3.80% 2023 | 1,750 | 433 |
Malaysia (Federation of), Series 0115, 3.955% 2025 | 2,000 | 491 |
Malaysia (Federation of), Series 0316, 3.90% 2026 | 1,200 | 293 |
Malaysia (Federation of), Series 0310, 4.498% 2030 | 1,600 | 396 |
Morocco (Kingdom of) 4.25% 2022 | $200 | 211 |
National Highways Authority of India 7.17% 2021 | INR30,000 | 465 |
Netherlands (Kingdom of the) 5.50% 2028 | €100 | 178 |
Norway (Kingdom of) 3.75% 2021 | NKr6,900 | 921 |
American Funds Insurance Series — Global Balanced Fund — Page 86 of 171
Bonds, notes & other debt instruments Bonds & notes of governments & government agencies outside the U.S. (continued) | Principal amount (000) | Value (000) |
Peru (Republic of) 6.15% 2032 | PEN675 | $222 |
Peru (Republic of) 5.625% 2050 | $20 | 26 |
Poland (Republic of), Series 1020, 5.25% 2020 | PLN4,750 | 1,486 |
Poland (Republic of), Series 1021, 5.75% 2021 | 2,670 | 865 |
Poland (Republic of), Series 0922, 5.75% 2022 | 870 | 286 |
Poland (Republic of), Series 1023, 4.00% 2023 | 2,800 | 858 |
Poland (Republic of), Series 0725, 3.25% 2025 | 1,500 | 435 |
Portuguese Republic 5.125% 2024 | $250 | 269 |
Portuguese Republic 2.875% 2025 | €900 | 1,192 |
Portuguese Republic 2.875% 2026 | 490 | 642 |
Quebec (Province of) 2.375% 2022 | $114 | 113 |
Saudi Arabia (Kingdom of) 2.894% 20223 | 200 | 199 |
Saudi Arabia (Kingdom of) 3.625% 20283 | 200 | 199 |
South Africa (Republic of), Series R-2023, 7.75% 2023 | ZAR1,950 | 157 |
South Africa (Republic of), Series R-214, 6.50% 2041 | 8,050 | 460 |
South Korea (Republic of), Series 2106, 4.25% 2021 | KRW262,000 | 261 |
South Korea (Republic of), Series 2209, 2.00% 2022 | 475,000 | 437 |
Spain (Kingdom of) 4.00% 20183 | $500 | 502 |
Spain (Kingdom of) 2.75% 2024 | €355 | 481 |
Spain (Kingdom of) 3.80% 2024 | 320 | 457 |
Spain (Kingdom of) 1.30% 2026 | 370 | 443 |
Spain (Kingdom of) 1.95% 2026 | 150 | 190 |
Sweden (Kingdom of) 1.125% 20193 | $200 | 197 |
Thailand (Kingdom of) 1.49% 2019 | THB7,000 | 215 |
Thailand (Kingdom of) 1.875% 2022 | 14,100 | 435 |
Thailand (Kingdom of) 3.85% 2025 | 3,000 | 103 |
Thailand (Kingdom of) 2.125% 2026 | 6,000 | 181 |
United Kingdom 3.75% 2020 | £75 | 110 |
United Kingdom 1.75% 2022 | 280 | 396 |
United Kingdom 2.75% 2024 | 50 | 76 |
United Kingdom 4.25% 2027 | 300 | 521 |
United Kingdom 4.25% 2040 | 50 | 99 |
United Kingdom 3.25% 2044 | 250 | 440 |
United Kingdom 3.50% 2045 | 150 | 277 |
United Mexican States 4.00% 20194 | MXN3,564 | 183 |
United Mexican States 4.15% 2027 | $200 | 208 |
United Mexican States 4.00% 20404 | MXN2,970 | 159 |
United Mexican States 4.60% 2046 | $200 | 198 |
United Mexican States, Series M, 8.00% 2020 | MXN2,000 | 103 |
United Mexican States, Series M, 6.50% 2021 | 6,000 | 295 |
United Mexican States, Series M, 6.50% 2022 | 7,000 | 341 |
United Mexican States, Series M20, 10.00% 2024 | 11,000 | 631 |
United Mexican States, Series M, 5.75% 2026 | 25,000 | 1,125 |
United Mexican States, Series M30, 10.00% 2036 | 2,500 | 155 |
Uruguay (Oriental Republic of) 9.875% 2022 | UYU3,334 | 123 |
Uruguay (Oriental Republic of) 8.50% 2028 | 9,188 | 320 |
50,017 | ||
U.S. Treasury bonds & notes 9.59% U.S. Treasury 7.38% | ||
U.S. Treasury 0.75% 2018 | $280 | 279 |
U.S. Treasury 1.375% 2018 | 200 | 200 |
U.S. Treasury 1.375% 2018 | 150 | 150 |
U.S. Treasury 1.50% 2018 | 100 | 100 |
U.S. Treasury 1.00% 2019 | 1,000 | 984 |
American Funds Insurance Series — Global Balanced Fund — Page 87 of 171
Bonds, notes & other debt instruments U.S. Treasury bonds & notes (continued) U.S. Treasury (continued) | Principal amount (000) | Value (000) |
U.S. Treasury 1.25% 2019 | $50 | $50 |
U.S. Treasury 1.625% 2019 | 1,075 | 1,071 |
U.S. Treasury 1.625% 2019 | 300 | 299 |
U.S. Treasury 1.75% 2019 | 600 | 599 |
U.S. Treasury 3.125% 2019 | 225 | 229 |
U.S. Treasury 1.375% 2020 | 900 | 888 |
U.S. Treasury 1.50% 2020 | 350 | 346 |
U.S. Treasury 1.75% 2020 | 1,600 | 1,589 |
U.S. Treasury 2.125% 2020 | 200 | 201 |
U.S. Treasury 1.125% 2021 | 1,025 | 991 |
U.S. Treasury 1.375% 2021 | 550 | 538 |
U.S. Treasury 2.00% 2021 | 108 | 108 |
U.S. Treasury 1.625% 2022 | 3,850 | 3,755 |
U.S. Treasury 1.875% 2022 | 850 | 839 |
U.S. Treasury 1.875% 2022 | 700 | 693 |
U.S. Treasury 2.00% 2022 | 500 | 496 |
U.S. Treasury 2.00% 2022 | 455 | 451 |
U.S. Treasury 2.00% 2022 | 75 | 75 |
U.S. Treasury 1.375% 2023 | 300 | 287 |
U.S. Treasury 1.75% 2023 | 100 | 98 |
U.S. Treasury 2.00% 2024 | 750 | 736 |
U.S. Treasury 2.125% 2024 | 2,025 | 2,001 |
U.S. Treasury 2.125% 2024 | 500 | 494 |
U.S. Treasury 2.25% 2024 | 200 | 199 |
U.S. Treasury 2.125% 2025 | 200 | 197 |
U.S. Treasury 1.625% 2026 | 535 | 506 |
U.S. Treasury 1.625% 2026 | 440 | 415 |
U.S. Treasury 2.25% 2027 | 2,800 | 2,762 |
U.S. Treasury 2.25% 2027 | 700 | 691 |
U.S. Treasury 2.375% 2027 | 1,500 | 1,497 |
U.S. Treasury 3.00% 2044 | 355 | 373 |
U.S. Treasury 2.50% 2045 | 315 | 300 |
U.S. Treasury 3.00% 2045 | 100 | 105 |
U.S. Treasury 2.875% 2046 | 500 | 513 |
26,105 | ||
U.S. Treasury inflation-protected securities 2.21% | ||
U.S. Treasury Inflation-Protected Security 0.125% 20214 | 1,093 | 1,088 |
U.S. Treasury Inflation-Protected Security 0.125% 20224 | 214 | 213 |
U.S. Treasury Inflation-Protected Security 0.375% 20234 | 318 | 321 |
U.S. Treasury Inflation-Protected Security 0.125% 20244 | 519 | 513 |
U.S. Treasury Inflation-Protected Security 0.625% 20244 | 1,771 | 1,801 |
U.S. Treasury Inflation-Protected Security 0.25% 20254 | 844 | 836 |
U.S. Treasury Inflation-Protected Security 0.375% 20254 | 234 | 234 |
U.S. Treasury Inflation-Protected Security 2.375% 20254 | 65 | 75 |
U.S. Treasury Inflation-Protected Security 0.625% 20264 | 830 | 844 |
U.S. Treasury Inflation-Protected Security 0.375% 20274 | 1,123 | 1,115 |
U.S. Treasury Inflation-Protected Security 0.375% 20274 | 217 | 216 |
U.S. Treasury Inflation-Protected Security 1.375% 20444 | 503 | 581 |
7,837 | ||
Total U.S. Treasury bonds & notes | 33,942 |
American Funds Insurance Series — Global Balanced Fund — Page 88 of 171
Bonds, notes & other debt instruments Corporate bonds & notes 6.33% Financials 1.43% | Principal amount (000) | Value (000) |
ACE INA Holdings Inc. 2.875% 2022 | $20 | $20 |
ACE INA Holdings Inc. 3.35% 2026 | 20 | 20 |
ACE INA Holdings Inc. 4.35% 2045 | 35 | 40 |
Allianz SE, 4.75% 2049 | €100 | 143 |
Aviva PLC, subordinated 6.875% 2058 | £75 | 140 |
AXA SA, junior subordinated 5.453% 2049 | 100 | 155 |
Banco Nacional de Comercio Exterior SNC 3.80% 20263 | $200 | 201 |
Bank of America Corp. 3.419% 20283 | 394 | 394 |
Barclays Bank PLC 10.00% 2021 | £100 | 170 |
Berkshire Hathaway Inc. 3.00% 2022 | $75 | 77 |
BPCE SA group 5.70% 20233 | 200 | 222 |
CaixaBank, SA 5.00% 2023 | €100 | 125 |
Goldman Sachs Group, Inc. 5.75% 2022 | $70 | 78 |
Goldman Sachs Group, Inc. 2.905% 2023 | 130 | 129 |
Goldman Sachs Group, Inc. 3.625% 2023 | 150 | 155 |
Goldman Sachs Group, Inc. 3.50% 2025 | 210 | 213 |
Goldman Sachs Group, Inc. 3.75% 2026 | 25 | 26 |
Goldman Sachs Group, Inc. 4.75% 2045 | 70 | 80 |
HSBC Holdings PLC 3.375% 2024 | €100 | 124 |
HSBC Holdings PLC 3.90% 2026 | $200 | 208 |
HSBC Holdings PLC 4.30% 2026 | 200 | 213 |
Intesa Sanpaolo SpA 6.625% 2023 | €125 | 189 |
JPMorgan Chase & Co. 2.55% 2021 | $76 | 76 |
JPMorgan Chase & Co. 3.25% 2022 | 28 | 29 |
JPMorgan Chase & Co. 2.70% 2023 | 150 | 149 |
JPMorgan Chase & Co., Series S, junior subordinated 6.75% (undated) | 135 | 153 |
Lloyds Banking Group PLC 6.50% 2020 | €210 | 287 |
Morgan Stanley 3.125% 2026 | $110 | 109 |
Morgan Stanley 3.875% 2026 | 75 | 78 |
NN Group NV, 4.50% 2049 | €100 | 136 |
PNC Financial Services Group, Inc. 2.854% 2022 | $100 | 100 |
Rabobank Nederland 3.875% 2023 | €100 | 140 |
Skandinaviska Enskilda Banken AB 2.80% 2022 | $250 | 252 |
UniCredit SPA 4.625% 20273 | 200 | 211 |
VEB Finance Ltd. 6.902% 20203 | 100 | 108 |
Wells Fargo & Co. 3.584% 2028 | 100 | 102 |
5,052 | ||
Utilities 1.05% | ||
Abu Dhabi National Energy Co. PJSC (TAQA) 3.625% 20233 | 200 | 203 |
American Electric Power Co., Inc. 2.15% 2020 | 215 | 214 |
American Electric Power Co., Inc. 2.75% 2026 | 50 | 48 |
CMS Energy Corp. 3.60% 2025 | 150 | 154 |
Duke Energy Carolinas, Inc. 3.70% 2047 | 50 | 52 |
Duke Energy Corp. 3.75% 2024 | 110 | 115 |
Duke Energy Corp. 2.65% 2026 | 225 | 216 |
Duke Energy Florida, LLC 3.20% 2027 | 100 | 101 |
E.ON International Finance BV 5.80% 20183 | 25 | 25 |
Enel Finance International SA 2.75% 20233 | 200 | 197 |
Enel Finance International SA 3.625% 20273 | 200 | 199 |
Enel Finance International SA 3.50% 20283 | 400 | 392 |
Enersis Américas SA 4.00% 2026 | 110 | 112 |
Exelon Corp. 3.497% 2022 | 25 | 26 |
Exelon Corp. 3.40% 2026 | 150 | 150 |
American Funds Insurance Series — Global Balanced Fund — Page 89 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Utilities (continued) | Principal amount (000) | Value (000) |
FirstEnergy Corp. 3.90% 2027 | $385 | $395 |
FirstEnergy Corp. 3.50% 20283 | 65 | 65 |
FirstEnergy Corp. 4.85% 2047 | 60 | 67 |
Niagara Mohawk Power Corp. 3.508% 20243 | 85 | 88 |
NiSource Finance Corp. 2.65% 2022 | 50 | 50 |
Pacific Gas and Electric Co. 3.85% 2023 | 70 | 73 |
Pacific Gas and Electric Co. 2.95% 2026 | 25 | 24 |
Pacific Gas and Electric Co. 3.30% 20273 | 275 | 273 |
Pacific Gas and Electric Co. 4.25% 2046 | 75 | 79 |
PacifiCorp. 3.35% 2025 | 30 | 31 |
Sierra Pacific Power Co., General and Refunding Mortgage Notes, Series T, 3.375% 2023 | 100 | 103 |
State Grid Overseas Investment Ltd. 3.50% 20273 | 250 | 252 |
3,704 | ||
Consumer discretionary 0.79% | ||
Amazon.com, Inc. 2.80% 20243 | 170 | 170 |
Amazon.com, Inc. 3.15% 20273 | 95 | 95 |
CCO Holdings LLC and CCO Holdings Capital Corp. 4.20% 2028 | 45 | 45 |
DaimlerChrysler North America Holding Corp. 1.875% 20183 | 150 | 150 |
DaimlerChrysler North America Holding Corp. 2.00% 20213 | 200 | 196 |
Ford Motor Credit Co. 3.20% 2021 | 200 | 203 |
Hyundai Capital America 2.55% 20203 | 135 | 134 |
Hyundai Capital America 3.25% 20223 | 65 | 65 |
McDonald’s Corp. 3.50% 2020 | 50 | 51 |
McDonald’s Corp. 3.70% 2026 | 35 | 36 |
McDonald’s Corp. 4.875% 2045 | 25 | 29 |
Myriad International Holdings 6.00% 2020 | 250 | 269 |
Myriad International Holdings 5.50% 2025 | 250 | 273 |
NBCUniversal Media, LLC 4.375% 2021 | 50 | 53 |
Newell Rubbermaid Inc. 3.85% 2023 | 40 | 41 |
Newell Rubbermaid Inc. 4.20% 2026 | 245 | 256 |
Nissan Motor Co., Ltd. 2.15% 20203 | 120 | 119 |
Nissan Motor Co., Ltd. 2.60% 20223 | 115 | 114 |
President & Fellows of Harvard College 3.619% 2037 | 150 | 160 |
Thomson Reuters Corp. 4.30% 2023 | 75 | 79 |
Time Warner Inc. 4.75% 2021 | 150 | 160 |
Toyota Motor Credit Corp. 2.25% 2023 | 85 | 83 |
2,781 | ||
Health care 0.67% | ||
Abbott Laboratories 3.75% 2026 | 90 | 93 |
AbbVie Inc. 2.50% 2020 | 180 | 181 |
AbbVie Inc. 2.90% 2022 | 60 | 60 |
AbbVie Inc. 3.60% 2025 | 50 | 51 |
AbbVie Inc. 3.20% 2026 | 173 | 173 |
AbbVie Inc. 4.50% 2035 | 15 | 16 |
Aetna Inc. 2.75% 2022 | 50 | 50 |
Aetna Inc. 2.80% 2023 | 10 | 10 |
Allergan PLC 3.00% 2020 | 30 | 30 |
Allergan PLC 3.80% 2025 | 275 | 280 |
Allergan PLC 4.55% 2035 | 45 | 48 |
Allergan PLC 4.75% 2045 | 31 | 33 |
Amgen Inc. 1.85% 2021 | 20 | 19 |
Amgen Inc. 2.25% 2023 | 180 | 175 |
American Funds Insurance Series — Global Balanced Fund — Page 90 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Health care (continued) | Principal amount (000) | Value (000) |
AstraZeneca PLC 2.375% 2022 | $110 | $109 |
Baxalta Inc. 4.00% 2025 | 80 | 83 |
Becton, Dickinson and Co. 2.894% 2022 | 55 | 55 |
Becton, Dickinson and Co. 3.734% 2024 | 35 | 36 |
Becton, Dickinson and Co. 3.70% 2027 | 65 | 66 |
EMD Finance LLC 3.25% 20253 | 150 | 151 |
Humana Inc. 3.15% 2022 | 100 | 101 |
Medtronic, Inc. 3.50% 2025 | 100 | 104 |
Roche Holdings, Inc. 3.35% 20243 | 200 | 207 |
Shire PLC 2.40% 2021 | 180 | 177 |
Shire PLC 2.875% 2023 | 45 | 44 |
Shire PLC 3.20% 2026 | 25 | 24 |
2,376 | ||
Energy 0.63% | ||
Cenovus Energy Inc. 4.25% 2027 | 65 | 65 |
Chevron Corp. 2.954% 2026 | 75 | 75 |
Ecopetrol SA 5.875% 2045 | 20 | 20 |
El Paso Pipeline Partners Operating Co., LLC 4.70% 2042 | 75 | 73 |
Enbridge Inc. 4.25% 2026 | 70 | 73 |
Enbridge Inc. 3.70% 2027 | 132 | 133 |
Energy Transfer Partners, LP 4.00% 2027 | 67 | 66 |
Energy Transfer Partners, LP 4.20% 2027 | 15 | 15 |
Halliburton Co. 3.80% 2025 | 110 | 114 |
Kinder Morgan Energy Partners, LP 3.50% 2021 | 30 | 31 |
Kinder Morgan Energy Partners, LP 5.50% 2044 | 200 | 214 |
Kinder Morgan, Inc. 4.30% 2025 | 100 | 104 |
Petrobras Global Finance Co. 5.299% 20253 | 85 | 85 |
Petróleos Mexicanos 6.50% 20273 | 130 | 142 |
Petróleos Mexicanos 5.625% 2046 | 310 | 288 |
Phillips 66 Partners LP 4.68% 2045 | 5 | 5 |
Schlumberger BV 4.00% 20253 | 80 | 84 |
Statoil ASA 3.15% 2022 | 160 | 164 |
Statoil ASA 3.70% 2024 | 50 | 53 |
Total Capital International 2.875% 2022 | 150 | 152 |
Williams Partners LP 4.50% 2023 | 100 | 106 |
Williams Partners LP 4.30% 2024 | 100 | 105 |
Williams Partners LP 4.00% 2025 | 75 | 77 |
2,244 | ||
Telecommunication services 0.47% | ||
AT&T Inc. 3.40% 2024 | 150 | 151 |
AT&T Inc. 3.90% 2027 | 95 | 96 |
AT&T Inc. 4.25% 2027 | 60 | 61 |
AT&T Inc. 4.10% 20283 | 238 | 239 |
AT&T Inc. 4.90% 2037 | 80 | 81 |
Deutsche Telekom International Finance BV 1.95% 20213 | 150 | 146 |
Deutsche Telekom International Finance BV 9.25% 2032 | 45 | 71 |
France Télécom 9.00% 2031 | 65 | 98 |
France Télécom 5.375% 2050 | £50 | 98 |
Orange SA 2.75% 2019 | $140 | 141 |
Verizon Communications Inc. 2.45% 2022 | 125 | 123 |
American Funds Insurance Series — Global Balanced Fund — Page 91 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Telecommunication services (continued) | Principal amount (000) | Value (000) |
Verizon Communications Inc. 4.50% 2033 | $90 | $94 |
Verizon Communications Inc. 4.272% 2036 | 248 | 247 |
1,646 | ||
Consumer staples 0.40% | ||
Altria Group, Inc. 2.625% 2020 | 100 | 101 |
Altria Group, Inc. 4.75% 2021 | 150 | 161 |
Altria Group, Inc. 4.25% 2042 | 150 | 158 |
Anheuser-Busch InBev NV 3.30% 2023 | 35 | 36 |
Anheuser-Busch InBev NV 4.90% 2046 | 35 | 41 |
British American Tobacco PLC 3.557% 20273 | 105 | 105 |
British American Tobacco PLC 4.39% 20373 | 80 | 84 |
Kraft Foods Inc. 3.50% 2022 | 100 | 102 |
Kroger Co. 3.50% 2026 | 140 | 140 |
Pernod Ricard SA 4.45% 20223 | 150 | 159 |
Philip Morris International Inc. 2.00% 2020 | 55 | 55 |
Philip Morris International Inc. 2.90% 2021 | 100 | 101 |
Philip Morris International Inc. 2.625% 2022 | 15 | 15 |
Philip Morris International Inc. 4.25% 2044 | 25 | 26 |
Reynolds American Inc. 4.00% 2022 | 15 | 16 |
Reynolds American Inc. 4.45% 2025 | 105 | 112 |
1,412 | ||
Information technology 0.34% | ||
Apple Inc. 2.50% 2022 | 75 | 75 |
Apple Inc. 3.35% 2027 | 65 | 67 |
Broadcom Ltd. 3.875% 20273 | 190 | 187 |
Microsoft Corp. 2.40% 2026 | 110 | 106 |
Microsoft Corp. 3.30% 2027 | 530 | 547 |
Oracle Corp. 3.25% 2027 | 210 | 214 |
1,196 | ||
Real estate 0.30% | ||
American Campus Communities, Inc. 3.35% 2020 | 15 | 15 |
American Campus Communities, Inc. 3.75% 2023 | 145 | 149 |
American Campus Communities, Inc. 4.125% 2024 | 90 | 94 |
Corporate Office Properties LP 3.60% 2023 | 65 | 65 |
Essex Portfolio LP 3.50% 2025 | 120 | 121 |
Essex Portfolio LP 3.375% 2026 | 140 | 139 |
Kimco Realty Corp. 3.40% 2022 | 10 | 10 |
Kimco Realty Corp. 2.70% 2024 | 45 | 44 |
Scentre Group 3.75% 20273 | 20 | 20 |
WEA Finance LLC 2.70% 20193 | 200 | 201 |
WEA Finance LLC 3.75% 20243 | 200 | 207 |
1,065 | ||
Industrials 0.20% | ||
General Electric Capital Corp. 3.15% 2022 | 50 | 51 |
Lima Metro Line Finance Ltd. 5.875% 20343,5 | 200 | 217 |
Lockheed Martin Corp. 3.10% 2023 | 10 | 10 |
Lockheed Martin Corp. 3.55% 2026 | 15 | 16 |
Red de Carreteras de Occidente 9.00% 20285 | MXN2,000 | 98 |
American Funds Insurance Series — Global Balanced Fund — Page 92 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Industrials (continued) | Principal amount (000) | Value (000) |
Union Pacific Corp. 2.95% 2023 | $100 | $102 |
United Technologies Corp. 3.10% 2022 | 215 | 219 |
713 | ||
Materials 0.05% | ||
Monsanto Co. 4.40% 2044 | 100 | 107 |
Vale SA 6.25% 2026 | 75 | 87 |
194 | ||
Total corporate bonds & notes | 22,383 | |
Mortgage-backed obligations 1.54% | ||
Core Industrial Trust, Series 2015-CALW, Class A, 3.04% 20343,5 | 50 | 51 |
Fannie Mae 3.50% 20485,6 | 450 | 462 |
Fannie Mae 4.00% 20485,6 | 1,780 | 1,860 |
Fannie Mae 4.50% 20485,6 | 175 | 186 |
Freddie Mac 3.00% 20335,6 | 300 | 305 |
Freddie Mac 3.50% 20485,6 | 300 | 308 |
Government National Mortgage Assn. 4.00% 20485,6 | 170 | 177 |
Korea Housing Finance Corp. 2.50% 20203 | 250 | 247 |
Korea Housing Finance Corp. 2.00% 20213 | 250 | 241 |
Nordea Kredit 2.00% 20375 | DKr1,300 | 218 |
Nykredit Realkredit AS, Series 01E, 2.00% 20375 | 4,554 | 765 |
Nykredit Realkredit AS, Series 01E, 2.50% 20475 | 835 | 140 |
Realkredit Danmark AS, Series 22S, 2.00% 20375 | 2,992 | 503 |
5,463 | ||
Asset-backed obligations 0.06% | ||
Discover Card Execution Note Trust, Series 2015-A1, Class A1, (1-month USD-LIBOR + 0.35%) 1.827% 20205,7 | $200 | 200 |
Total bonds, notes & other debt instruments (cost: $111,365,000) | 112,005 | |
Short-term securities 7.47% | ||
Mitsubishi UFJ Trust and Banking Corp. 1.52% due 1/19/20183 | 5,000 | 4,996 |
Mizuho Bank, Ltd. 1.59% due 1/25/20183 | 8,300 | 8,290 |
Québec (Province of) 1.51% due 2/15/20183 | 1,000 | 998 |
Royal Bank of Canada 1.34%–1.53% due 1/8/2018–1/16/2018 | 7,500 | 7,494 |
Thunder Bay Funding, LLC 1.70% due 3/6/20183 | 475 | 473 |
Victory Receivables Corp. 1.42% due 1/17/20183 | 4,200 | 4,197 |
Total short-term securities (cost: $26,451,000) | 26,448 | |
Total investment securities 100.66% (cost: $298,597,000) | 356,247 | |
Other assets less liabilities (0.66)% | (2,348) | |
Net assets 100.00% | $353,899 |
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.
American Funds Insurance Series — Global Balanced Fund — Page 93 of 171
Forward currency contracts
Contract amount | Counterparty | Settlement date | Unrealized appreciation (depreciation) at 12/31/2017 (000) | |
Purchases (000) | Sales (000) | |||
USD419 | MXN7,600 | JPMorgan Chase | 1/4/2018 | $33 |
JPY21,922 | AUD250 | UBS AG | 1/5/2018 | —8 |
USD207 | INR13,400 | Citibank | 1/5/2018 | (3) |
USD274 | CAD350 | Bank of America, N.A. | 1/5/2018 | (4) |
USD571 | INR36,900 | JPMorgan Chase | 1/5/2018 | (7) |
USD205 | ZAR2,900 | UBS AG | 1/5/2018 | (29) |
EUR266 | USD312 | Goldman Sachs | 1/8/2018 | 8 |
USD428 | ILS1,500 | Bank of America, N.A. | 1/9/2018 | (3) |
USD651 | EUR550 | HSBC Bank | 1/9/2018 | (10) |
EUR502 | USD600 | Bank of America, N.A. | 1/10/2018 | 3 |
USD234 | CAD300 | Bank of America, N.A. | 1/10/2018 | (5) |
JPY96,672 | USD863 | JPMorgan Chase | 1/10/2018 | (5) |
USD228 | AUD300 | Goldman Sachs | 1/10/2018 | (6) |
USD327 | PLN1,158 | JPMorgan Chase | 1/10/2018 | (6) |
USD251 | AUD330 | JPMorgan Chase | 1/10/2018 | (7) |
USD1,103 | JPY125,000 | JPMorgan Chase | 1/10/2018 | (7) |
JPY63,535 | USD573 | JPMorgan Chase | 1/10/2018 | (8) |
USD468 | CAD600 | Goldman Sachs | 1/10/2018 | (9) |
JPY90,073 | USD811 | Barclays Bank PLC | 1/10/2018 | (11) |
JPY40,289 | USD357 | Bank of America, N.A. | 1/11/2018 | 1 |
USD730 | AUD970 | Citibank | 1/12/2018 | (27) |
USD478 | INR31,000 | Bank of America, N.A. | 1/16/2018 | (6) |
JPY134,232 | USD1,190 | JPMorgan Chase | 1/17/2018 | 2 |
USD297 | EUR250 | Bank of America, N.A. | 1/17/2018 | (3) |
USD550 | CAD700 | Bank of America, N.A. | 1/17/2018 | (7) |
USD361 | AUD475 | JPMorgan Chase | 1/17/2018 | (9) |
USD399 | MXN7,700 | Bank of America, N.A. | 1/18/2018 | 9 |
CHF385 | USD391 | Goldman Sachs | 1/18/2018 | 5 |
JPY22,275 | USD198 | Goldman Sachs | 1/18/2018 | —8 |
NOK2,700 | USD322 | Bank of America, N.A. | 1/19/2018 | 7 |
USD766 | EUR650 | Bank of America, N.A. | 1/19/2018 | (14) |
EUR645 | USD760 | Citibank | 1/22/2018 | 15 |
EUR349 | USD413 | UBS AG | 1/22/2018 | 6 |
EUR227 | GBP200 | Goldman Sachs | 1/22/2018 | 2 |
JPY31,929 | USD284 | Citibank | 1/22/2018 | (1) |
JPY69,685 | USD623 | Barclays Bank PLC | 1/22/2018 | (4) |
USD2,253 | GBP1,700 | Barclays Bank PLC | 1/22/2018 | (44) |
SEK3,609 | USD430 | Citibank | 1/23/2018 | 11 |
EUR357 | USD422 | Citibank | 1/23/2018 | 6 |
JPY57,092 | USD506 | UBS AG | 1/23/2018 | 1 |
USD171 | ILS600 | JPMorgan Chase | 1/23/2018 | (2) |
USD448 | PLN1,600 | Citibank | 1/23/2018 | (12) |
SEK1,625 | USD192 | Barclays Bank PLC | 1/24/2018 | 7 |
USD216 | MXN4,250 | JPMorgan Chase | 1/31/2018 | 1 |
EUR482 | USD573 | Bank of America, N.A. | 2/6/2018 | 6 |
USD421 | PLN1,500 | Bank of America, N.A. | 2/7/2018 | (9) |
SEK1,270 | USD151 | Bank of America, N.A. | 2/15/2018 | 4 |
USD250 | JPY28,000 | Bank of New York Mellon | 2/15/2018 | 1 |
JPY22,250 | USD198 | HSBC Bank | 2/15/2018 | —8 |
SEK1,613 | USD191 | UBS AG | 2/23/2018 | 7 |
JPY34,577 | USD306 | HSBC Bank | 2/23/2018 | 1 |
American Funds Insurance Series — Global Balanced Fund — Page 94 of 171
Contract amount | Counterparty | Settlement date | Unrealized appreciation (depreciation) at 12/31/2017 (000) | |
Purchases (000) | Sales (000) | |||
USD375 | INR24,900 | Citibank | 3/26/2018 | $(11) |
USD371 | BRL1,250 | Citibank | 11/29/2018 | 8 |
$(125) |
1 | 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 $114,391,000, which represented 32.32% of the net assets of the fund. This amount includes $112,907,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Security did not produce income during the last 12 months. |
3 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $28,319,000, which represented 8.00% of the net assets of the fund. |
4 | Index-linked bond whose principal amount moves with a government price index. |
5 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
6 | Purchased on a TBA basis. |
7 | Coupon rate may change periodically. |
8 | Amount less than one thousand. |
Key to abbreviations and symbols | |
ADR = American Depositary Receipts | JPY/¥ = Japanese yen |
AUD/A$ = Australian dollars | KRW = South Korean won |
BRL = Brazilian reais | MXN = Mexican pesos |
£ = British pounds | MYR = Malaysian ringgits |
CAD/C$ = Canadian dollars | NKr = Norwegian kroner |
CDI = CREST Depository Interest | PEN = Peruvian nuevos soles |
CHF = Swiss francs | PLN = Polish zloty |
CLP = Chilean pesos | SEK = Swedish kronor |
COP = Colombian pesos | TBA = To-be-announced |
DKK/DKr = Danish kroner | THB = Thai baht |
EUR/€ = Euros | USD/$ = U.S. dollars |
GBP = British pounds | UYU = Uruguayan pesos |
ILS = Israeli shekels | ZAR = South African rand |
INR = Indian rupees |
American Funds Insurance Series — Global Balanced Fund — Page 95 of 171
Bond Fund
Investment portfolio
December 31, 2017
Bonds, notes & other debt instruments 96.91% Corporate bonds & notes 32.37% Financials 7.60% | Principal amount (000) | Value (000) |
ACE INA Holdings Inc. 2.30% 2020 | $2,105 | $2,102 |
ACE INA Holdings Inc. 2.875% 2022 | 3,725 | 3,778 |
ACE INA Holdings Inc. 3.35% 2026 | 2,625 | 2,681 |
ACE INA Holdings Inc. 4.35% 2045 | 2,320 | 2,624 |
Allstate Corp. 4.20% 2046 | 205 | 224 |
Ally Financial Inc. 4.25% 2021 | 34,100 | 35,038 |
Ally Financial Inc. 5.125% 2024 | 2,800 | 3,035 |
Ally Financial Inc. 8.00% 2031 | 14,495 | 18,880 |
Ally Financial Inc. 8.00% 2031 | 10,220 | 13,337 |
American Express Co. 2.20% 2020 | 17,000 | 16,871 |
American Express Co. 3.00% 2024 | 1,500 | 1,499 |
Assicurazioni Generali SPA 7.75% 2042 | €3,100 | 4,806 |
Assicurazioni Generali SPA 10.125% 2042 | 3,800 | 6,307 |
AXA SA 8.60% 2030 | $2,625 | 3,783 |
Banco Santander, SA 2.70% 2019 | 2,500 | 2,506 |
Bank of America Corp. 2.328% 2021 | 4,500 | 4,489 |
Bank of America Corp. 2.816% 2023 | 48,040 | 47,971 |
Bank of America Corp. 3.124% 2023 | 42,500 | 43,132 |
Bank of America Corp. 3.419% 20281 | 10,529 | 10,541 |
Bank of America Corp. 3.593% 2028 | 2,300 | 2,340 |
BB&T Corp. 2.45% 2020 | 5,200 | 5,218 |
Berkshire Hathaway Finance Corp. 1.30% 2019 | 865 | 854 |
BPCE SA group 2.75% 2021 | 9,500 | 9,534 |
BPCE SA group 5.70% 20231 | 31,666 | 35,134 |
BPCE SA group 5.15% 20241 | 5,211 | 5,657 |
Capital One Financial Corp. 1.85% 2019 | 1,500 | 1,486 |
Capital One Financial Corp. 2.40% 2020 | 11,650 | 11,586 |
Capital One Financial Corp. 2.50% 2020 | 45,100 | 45,066 |
Charles Schwab Corp, Series E, junior subordinated 4.625% 2049 | 2,400 | 2,450 |
CIT Group Inc., Series C, 5.50% 20191 | 585 | 603 |
Citigroup Inc. 2.90% 2021 | 8,500 | 8,563 |
Citigroup Inc. 2.75% 2022 | 24,000 | 23,973 |
Citigroup Inc. 2.876% 2023 | 20,663 | 20,579 |
Crédit Agricole SA 3.25% 20241 | 1,125 | 1,119 |
Credit Suisse Group AG 3.574% 20231 | 14,000 | 14,246 |
Credit Suisse Group AG 3.80% 2023 | 13,925 | 14,376 |
Deutsche Bank AG 2.50% 2019 | 2,900 | 2,899 |
Deutsche Bank AG 2.85% 2019 | 8,700 | 8,731 |
Discover Financial Services 10.25% 2019 | 2,700 | 2,982 |
Discover Financial Services 4.10% 2027 | 12,500 | 12,824 |
Goldman Sachs Group, Inc. 2.30% 2019 | 1,500 | 1,500 |
Goldman Sachs Group, Inc. 2.875% 2021 | 4,000 | 4,032 |
Goldman Sachs Group, Inc. 5.75% 2022 | 5,000 | 5,547 |
Goldman Sachs Group, Inc. 2.905% 2023 | 52,821 | 52,501 |
Goldman Sachs Group, Inc. 3.077% 20232 | 3,000 | 3,125 |
American Funds Insurance Series — Bond Fund — Page 96 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Financials (continued) | Principal amount (000) | Value (000) |
Goldman Sachs Group, Inc. 3.75% 2025 | $638 | $658 |
Goldman Sachs Group, Inc. 5.30% (undated) | 1,850 | 1,970 |
HSBC Holdings PLC 3.033% 2023 | 450 | 451 |
HSBC Holdings PLC 4.041% 2028 | 1,000 | 1,043 |
Intercontinentalexchange, Inc. 2.50% 2018 | 1,295 | 1,301 |
Intesa Sanpaolo SpA 3.875% 2019 | 1,485 | 1,505 |
Intesa Sanpaolo SpA 5.017% 20241 | 54,615 | 55,987 |
Intesa Sanpaolo SpA 5.71% 20261 | 16,675 | 17,591 |
Intesa Sanpaolo SpA 3.875% 20271 | 300 | 300 |
JPMorgan Chase & Co. 2.70% 2023 | 17,325 | 17,222 |
JPMorgan Chase & Co. 2.776% 2023 | 12,000 | 12,017 |
JPMorgan Chase & Co. 3.54% 2028 | 2,696 | 2,745 |
Leucadia National Corp. 5.50% 2023 | 520 | 560 |
Lloyds Banking Group PLC 2.907% 2023 | 11,950 | 11,859 |
MetLife Global Funding I 1.75% 20181 | 1,455 | 1,452 |
MetLife, Inc. 2.30% 20191 | 675 | 676 |
MetLife, Inc. 2.00% 20201 | 7,785 | 7,727 |
MetLife, Inc. 3.60% 2025 | 3,590 | 3,737 |
MetLife, Inc. 7.875% 20671 | 1,505 | 2,013 |
Morgan Stanley 2.125% 2018 | 7,500 | 7,501 |
Morgan Stanley 2.50% 2021 | 44,400 | 44,342 |
Morgan Stanley 2.625% 2021 | 7,200 | 7,170 |
Morgan Stanley (3-month USD-LIBOR + 1.22%) 2.617% 20242 | 750 | 766 |
Morgan Stanley 3.125% 2026 | 7,270 | 7,177 |
Morgan Stanley 3.875% 2026 | 7,525 | 7,850 |
Morgan Stanley 3.625% 2027 | 1,942 | 1,989 |
New York Life Global Funding 2.10% 20191 | 1,000 | 1,001 |
New York Life Global Funding 1.95% 20201 | 145 | 144 |
New York Life Global Funding 1.70% 20211 | 2,250 | 2,186 |
New York Life Global Funding 2.30% 20221 | 500 | 493 |
NN Group NV, 4.50% 2049 | €8,750 | 11,865 |
Nordea Bank AB 2.50% 20201 | $7,425 | 7,436 |
PNC Bank 1.70% 2018 | 1,000 | 997 |
PNC Bank 2.55% 2021 | 1,000 | 1,000 |
PNC Financial Services Group, Inc. 2.854% 2022 | 6,050 | 6,075 |
PNC Funding Corp. 3.30% 2022 | 9,000 | 9,245 |
Royal Bank of Canada 1.50% 2018 | 2,700 | 2,700 |
Sumitomo Mitsui Banking Corp. 2.784% 2022 | 1,600 | 1,592 |
Travelers Companies, Inc. 3.75% 2046 | 200 | 204 |
Travelers Companies, Inc. 4.00% 2047 | 405 | 432 |
UniCredit SPA 4.625% 20271 | 425 | 449 |
UniCredit SPA 5.861% 20321 | 1,125 | 1,201 |
Unum Group 3.00% 2021 | 520 | 524 |
US Bancorp. 2.00% 2020 | 1,000 | 996 |
US Bancorp. 3.15% 2027 | 2,800 | 2,808 |
Wells Fargo & Co. 2.10% 2021 | 17,500 | 17,214 |
Wells Fargo & Co. 2.625% 2022 | 1,000 | 995 |
Wells Fargo & Co. 3.00% 2026 | 3,320 | 3,257 |
Wells Fargo & Co. 3.584% 2028 | 2,375 | 2,423 |
813,375 |
American Funds Insurance Series — Bond Fund — Page 97 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Health care 5.06% | Principal amount (000) | Value (000) |
Abbott Laboratories 2.90% 2021 | $26,905 | $27,238 |
Abbott Laboratories 3.40% 2023 | 2,055 | 2,093 |
Abbott Laboratories 3.75% 2026 | 7,170 | 7,374 |
Abbott Laboratories 4.75% 2036 | 4,765 | 5,367 |
AbbVie Inc. 1.80% 2018 | 5,900 | 5,898 |
AbbVie Inc. 2.50% 2020 | 17,215 | 17,277 |
AbbVie Inc. 2.90% 2022 | 6,565 | 6,585 |
AbbVie Inc. 3.20% 2022 | 11,970 | 12,166 |
AbbVie Inc. 2.85% 2023 | 4,800 | 4,795 |
AbbVie Inc. 3.20% 2026 | 500 | 499 |
AbbVie Inc. 4.45% 2046 | 2,285 | 2,492 |
Aetna Inc. 1.70% 2018 | 3,525 | 3,520 |
Allergan PLC 2.35% 2018 | 7,500 | 7,506 |
Allergan PLC 3.00% 2020 | 8,275 | 8,353 |
Allergan PLC 3.45% 2022 | 11,060 | 11,247 |
Allergan PLC 3.80% 2025 | 11,997 | 12,229 |
Allergan PLC 4.55% 2035 | 3,820 | 4,051 |
Allergan PLC 4.75% 2045 | 200 | 214 |
AmerisourceBergen Corp. 4.30% 2047 | 500 | 503 |
Amgen Inc. 2.65% 2022 | 1,000 | 998 |
Amgen Inc. 4.40% 2045 | 7,500 | 8,186 |
Anthem, Inc. 2.50% 2020 | 10,900 | 10,884 |
Anthem, Inc. 3.65% 2027 | 1,500 | 1,532 |
AstraZeneca PLC 2.375% 2022 | 370 | 366 |
Becton, Dickinson and Co. 2.675% 2019 | 2,287 | 2,296 |
Becton, Dickinson and Co. 2.894% 2022 | 1,560 | 1,552 |
Becton, Dickinson and Co. 3.734% 2024 | 903 | 926 |
Becton, Dickinson and Co. 3.70% 2027 | 2,630 | 2,655 |
Becton, Dickinson and Co. 4.669% 2047 | 3,695 | 4,013 |
Boston Scientific Corp. 2.85% 2020 | 470 | 474 |
Boston Scientific Corp. 6.00% 2020 | 3,675 | 3,924 |
Boston Scientific Corp. 3.375% 2022 | 700 | 711 |
Boston Scientific Corp. 3.85% 2025 | 500 | 515 |
Cardinal Health, Inc. 4.368% 2047 | 375 | 374 |
Centene Corp. 5.625% 2021 | 1,780 | 1,833 |
Centene Corp. 4.75% 2022 | 200 | 209 |
Centene Corp. 6.125% 2024 | 375 | 398 |
Centene Corp. 4.75% 2025 | 575 | 586 |
EMD Finance LLC 2.40% 20201 | 15,295 | 15,269 |
EMD Finance LLC 2.95% 20221 | 2,200 | 2,211 |
HCA Inc. 6.50% 2020 | 1,550 | 1,647 |
Johnson & Johnson 2.625% 2025 | 420 | 418 |
Johnson & Johnson 2.90% 2028 | 1,500 | 1,504 |
Johnson & Johnson 3.50% 2048 | 430 | 441 |
Laboratory Corporation of America Holdings 3.60% 2027 | 500 | 502 |
Laboratory Corporation of America Holdings 4.70% 2045 | 9,360 | 10,156 |
Medtronic, Inc. 3.35% 2027 | 450 | 462 |
Medtronic, Inc. 4.625% 2045 | 5,015 | 5,852 |
Molina Healthcare, Inc. 5.375% 2022 | 1,165 | 1,220 |
Mylan Laboratories Inc. 2.50% 2019 | 3,500 | 3,497 |
Pfizer Inc. 7.20% 2039 | 100 | 154 |
Roche Holdings, Inc. 2.375% 20271 | 500 | 476 |
Shire PLC 1.90% 2019 | 25,600 | 25,376 |
Shire PLC 2.40% 2021 | 31,545 | 31,073 |
American Funds Insurance Series — Bond Fund — Page 98 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Health care (continued) | Principal amount (000) | Value (000) |
Shire PLC 2.875% 2023 | $11,810 | $11,623 |
Shire PLC 3.20% 2026 | 17,000 | 16,649 |
Tenet Healthcare Corp. 4.625% 20241 | 506 | 495 |
Tenet Healthcare Corp., First Lien, 4.75% 2020 | 10,000 | 10,225 |
Tenet Healthcare Corp., First Lien, 6.00% 2020 | 1,340 | 1,422 |
Teva Pharmaceutical Finance Company BV 2.20% 2021 | 6,382 | 5,834 |
Teva Pharmaceutical Finance Company BV 2.80% 2023 | 72,471 | 63,178 |
Teva Pharmaceutical Finance Company BV 3.15% 2026 | 73,918 | 61,126 |
Teva Pharmaceutical Finance Company BV 4.10% 2046 | 57,966 | 44,270 |
Thermo Fisher Scientific Inc. 2.40% 2019 | 4,050 | 4,061 |
UnitedHealth Group Inc. 1.90% 2018 | 6,820 | 6,823 |
UnitedHealth Group Inc. 3.35% 2022 | 4,585 | 4,737 |
UnitedHealth Group Inc. 3.75% 2025 | 5,610 | 5,917 |
UnitedHealth Group Inc. 3.375% 2027 | 500 | 514 |
Valeant Pharmaceuticals International, Inc. 5.50% 20251 | 4,350 | 4,448 |
WellPoint, Inc. 2.30% 2018 | 7,440 | 7,457 |
WellPoint, Inc. 2.25% 2019 | 1,250 | 1,248 |
Zimmer Holdings, Inc. 3.15% 2022 | 9,145 | 9,175 |
541,299 | ||
Energy 4.94% | ||
American Energy (Marcellus), Term Loan A, (3-month USD-LIBOR + 7.50%) 8.960% 20212,3,4,5 | 1,875 | 75 |
American Energy (Marcellus), Term Loan B, (3-month USD-LIBOR + 4.25%) 5.710% 20202,3,4,5 | 520 | 384 |
Anadarko Petroleum Corp. 4.85% 2021 | 4,810 | 5,083 |
Anadarko Petroleum Corp. 5.55% 2026 | 11,730 | 13,179 |
Anadarko Petroleum Corp. 6.20% 2040 | 1,000 | 1,216 |
Anadarko Petroleum Corp. 6.60% 2046 | 3,596 | 4,638 |
Andeavor Logistics LP 3.50% 2022 | 830 | 829 |
Andeavor Logistics LP 4.25% 2027 | 2,015 | 2,036 |
Baker Hughes, a GE Co. 3.337% 20271 | 1,000 | 999 |
Baker Hughes, a GE Co. 4.08% 20471 | 3,500 | 3,565 |
Boardwalk Pipeline Partners 3.375% 2023 | 2,000 | 1,993 |
Boardwalk Pipelines, LP 4.45% 2027 | 3,580 | 3,648 |
Boardwalk Pipelines, LP 4.95% 2024 | 1,290 | 1,384 |
Canadian Natural Resources Ltd. 2.95% 2023 | 190 | 189 |
Canadian Natural Resources Ltd. 3.80% 2024 | 180 | 186 |
Canadian Natural Resources Ltd. 3.85% 2027 | 14,265 | 14,584 |
Canadian Natural Resources Ltd. 4.95% 2047 | 2,350 | 2,638 |
Cenovus Energy Inc. 3.80% 2023 | 1,120 | 1,132 |
Cenovus Energy Inc. 4.25% 2027 | 18,130 | 18,116 |
Cenovus Energy Inc. 5.25% 2037 | 193 | 199 |
Cenovus Energy Inc. 5.40% 2047 | 22,275 | 23,509 |
Cheniere Energy, Inc. 7.00% 2024 | 14,175 | 16,159 |
Chevron Corp. 2.355% 2022 | 5,000 | 4,963 |
Chevron Corp. 2.498% 2022 | 605 | 606 |
Columbia Pipeline Partners LP 2.45% 2018 | 6,700 | 6,705 |
Columbia Pipeline Partners LP 5.80% 2045 | 1,910 | 2,391 |
ConocoPhillips 4.95% 2026 | 4,774 | 5,427 |
DCP Midstream Operating LP 4.95% 2022 | 500 | 522 |
Devon Energy Corp. 5.00% 2045 | 2,000 | 2,238 |
Diamond Offshore Drilling, Inc. 4.875% 2043 | 3,375 | 2,481 |
Enbridge Energy Partners, LP 9.875% 2019 | 10,500 | 11,366 |
Enbridge Energy Partners, LP 4.375% 2020 | 7,700 | 8,029 |
Enbridge Energy Partners, LP 5.20% 2020 | 5,655 | 5,954 |
American Funds Insurance Series — Bond Fund — Page 99 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Energy (continued) | Principal amount (000) | Value (000) |
Enbridge Energy Partners, LP 4.20% 2021 | $6,525 | $6,787 |
Enbridge Energy Partners, LP 5.875% 2025 | 13,960 | 15,832 |
Enbridge Energy Partners, LP 7.375% 2045 | 27,830 | 37,078 |
Enbridge Energy Partners, LP, Series B, 6.50% 2018 | 7,940 | 8,046 |
Enbridge Inc. 4.00% 2023 | 1,600 | 1,667 |
Energy Transfer Partners, LP 4.15% 2020 | 1,000 | 1,033 |
Energy Transfer Partners, LP 6.25% 2023 | 8,150 | 7,931 |
Energy Transfer Partners, LP 4.75% 2026 | 475 | 493 |
Energy Transfer Partners, LP 4.20% 2027 | 260 | 259 |
Energy Transfer Partners, LP 6.125% 2045 | 12,405 | 13,507 |
Energy Transfer Partners, LP 5.30% 2047 | 33,995 | 33,879 |
Energy Transfer Partners, LP 5.40% 2047 | 6,690 | 6,774 |
Energy Transfer Partners, LP 6.625% 2049 | 500 | 487 |
EnLink Midstream Partners, LP 2.70% 2019 | 1,850 | 1,849 |
EnLink Midstream Partners, LP 4.40% 2024 | 365 | 377 |
EnLink Midstream Partners, LP 5.05% 2045 | 1,015 | 1,005 |
EnLink Midstream Partners, LP 5.45% 2047 | 475 | 503 |
Ensco PLC 5.20% 2025 | 340 | 291 |
Ensco PLC 5.75% 2044 | 80 | 55 |
EQT Corp. 2.50% 2020 | 5,910 | 5,872 |
EQT Corp. 3.00% 2022 | 2,385 | 2,362 |
EQT Corp. 3.90% 2027 | 1,205 | 1,200 |
Exxon Mobil Corp. 3.043% 2026 | 4,825 | 4,903 |
Exxon Mobil Corp. 4.114% 2046 | 498 | 557 |
Halliburton Co. 3.80% 2025 | 4,975 | 5,178 |
Halliburton Co. 5.00% 2045 | 845 | 973 |
Husky Energy Inc. 7.25% 2019 | 3,390 | 3,692 |
Kinder Morgan Energy Partners, LP 6.85% 2020 | 7,650 | 8,290 |
Kinder Morgan Energy Partners, LP 6.50% 2037 | 900 | 1,056 |
Kinder Morgan Energy Partners, LP 5.40% 2044 | 5,270 | 5,587 |
Kinder Morgan Energy Partners, LP 5.50% 2044 | 925 | 988 |
Kinder Morgan Finance Co. 5.05% 2046 | 248 | 258 |
Kinder Morgan, Inc. 4.30% 2025 | 257 | 268 |
Kinder Morgan, Inc. 5.30% 2034 | 760 | 812 |
Kinder Morgan, Inc. 5.55% 2045 | 6,000 | 6,585 |
Marathon Oil Corp. 4.40% 2027 | 10,765 | 11,268 |
MPLX LP 4.125% 2027 | 315 | 323 |
MPLX LP 5.20% 2047 | 320 | 352 |
NGL Energy Partners LP 6.875% 2021 | 1,000 | 1,025 |
NGPL PipeCo LLC 4.375% 20221 | 45 | 46 |
NGPL PipeCo LLC 4.875% 20271 | 55 | 57 |
Noble Corp. PLC 5.75% 2018 | 180 | 181 |
Noble Corp. PLC 7.70% 2025 | 1,995 | 1,686 |
Noble Corp. PLC 8.70% 2045 | 1,760 | 1,404 |
Odebrecht Drilling Norbe 6.35% 20211,5,6,7 | 1,667 | 1,143 |
Odebrecht Drilling Norbe 6.72% 20221,5,6,7 | 100 | 40 |
Odebrecht Drilling Norbe 7.35% 20261,5,6,7,8 | 1,970 | 1,351 |
Odebrecht Drilling Norbe 7.72% 20261,5,6,7,8 | 275 | 111 |
Odebrecht Drilling Norbe 0% (undated)1,5,6,7 | 1,195 | — |
Petrobras Global Finance Co. 6.125% 2022 | 7,260 | 7,723 |
Petrobras Global Finance Co. 5.299% 20251 | 409 | 411 |
Petrobras Global Finance Co. 8.75% 2026 | 12,000 | 14,370 |
Petrobras Global Finance Co. 7.375% 2027 | 390 | 430 |
Petrobras Global Finance Co. 5.999% 20281 | 1,053 | 1,057 |
American Funds Insurance Series — Bond Fund — Page 100 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Energy (continued) | Principal amount (000) | Value (000) |
Petrobras Global Finance Co. 7.25% 2044 | $45 | $47 |
Petrobras Global Finance Co. 6.85% 2115 | 335 | 324 |
Petróleos Mexicanos 7.47% 2026 | MXN295,000 | 13,257 |
Petróleos Mexicanos 6.50% 20271 | $9,880 | 10,811 |
Petróleos Mexicanos 6.75% 20471 | 8,994 | 9,411 |
Petróleos Mexicanos 6.75% 2047 | 460 | 481 |
Phillips 66 Partners LP 3.55% 2026 | 570 | 566 |
Phillips 66 Partners LP 3.75% 2028 | 160 | 160 |
Phillips 66 Partners LP 4.68% 2045 | 125 | 129 |
Phillips 66 Partners LP 4.90% 2046 | 210 | 223 |
Pioneer Natural Resources Co. 3.45% 2021 | 185 | 189 |
Plains All American Pipeline, LP 4.50% 2026 | 1,250 | 1,269 |
QGOG Atlantic/Alaskan Rigs Ltd. 5.25% 20191,5 | 500 | 493 |
Ras Laffan Liquefied Natural Gas II 5.298% 20205 | 357 | 370 |
Royal Dutch Shell PLC 3.75% 2046 | 910 | 930 |
Sabine Pass Liquefaction, LLC 5.625% 2021 | 1,100 | 1,180 |
Sabine Pass Liquefaction, LLC 6.25% 2022 | 2,800 | 3,118 |
Sabine Pass Liquefaction, LLC 5.625% 2023 | 1,000 | 1,099 |
Sabine Pass Liquefaction, LLC 5.75% 2024 | 9,000 | 10,014 |
Sabine Pass Liquefaction, LLC 5.625% 2025 | 11,980 | 13,230 |
Sabine Pass Liquefaction, LLC 5.875% 2026 | 13,800 | 15,525 |
Sabine Pass Liquefaction, LLC 5.00% 2027 | 4,670 | 5,014 |
Sabine Pass Liquefaction, LLC 4.20% 2028 | 790 | 801 |
Schlumberger BV 3.00% 20201 | 600 | 608 |
Schlumberger BV 3.625% 20221 | 222 | 229 |
Schlumberger BV 4.00% 20251 | 9,185 | 9,666 |
Southwestern Energy Co. 4.10% 2022 | 3,625 | 3,580 |
Southwestern Energy Co. 6.70% 2025 | 6,705 | 6,998 |
Spectra Energy Partners, LP 2.95% 2018 | 1,615 | 1,625 |
Sunoco LP 6.25% 2021 | 775 | 808 |
Targa Resources Partners LP 5.125% 2025 | 175 | 180 |
Targa Resources Partners LP 5.375% 2027 | 175 | 180 |
TC PipeLines, LP 4.375% 2025 | 1,285 | 1,338 |
Total Capital Canada Ltd. 2.75% 2023 | 2,140 | 2,153 |
Transocean Inc. 5.80% 2022 | 2,195 | 2,173 |
Transocean Inc. 9.00% 20231 | 5,000 | 5,425 |
Valero Energy Partners LP 4.375% 2026 | 500 | 523 |
Western Gas Partners LP 2.60% 2018 | 280 | 281 |
Western Gas Partners LP 3.95% 2025 | 665 | 666 |
Western Gas Partners LP 4.65% 2026 | 310 | 323 |
Western Gas Partners LP 5.45% 2044 | 1,350 | 1,438 |
Williams Partners LP 5.25% 2020 | 3,000 | 3,170 |
Williams Partners LP 4.50% 2023 | 500 | 529 |
Williams Partners LP 4.30% 2024 | 595 | 624 |
Williams Partners LP 4.00% 2025 | 500 | 512 |
Williams Partners LP 5.40% 2044 | 555 | 625 |
Williams Partners LP 4.90% 2045 | 250 | 266 |
Williams Partners LP 5.10% 2045 | 445 | 491 |
528,887 | ||
Consumer discretionary 3.64% | ||
Amazon.com, Inc. 3.15% 20271 | 13,865 | 13,910 |
Amazon.com, Inc. 3.875% 20371 | 500 | 532 |
Amazon.com, Inc. 4.05% 20471 | 1,355 | 1,465 |
American Funds Insurance Series — Bond Fund — Page 101 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Consumer discretionary (continued) | Principal amount (000) | Value (000) |
Bayerische Motoren Werke AG 1.45% 20191 | $13,610 | $13,465 |
CBS Corp. 3.50% 2025 | 150 | 151 |
CCO Holdings LLC and CCO Holdings Capital Corp. 3.579% 2020 | 6,805 | 6,935 |
CCO Holdings LLC and CCO Holdings Capital Corp. 4.464% 2022 | 760 | 794 |
CCO Holdings LLC and CCO Holdings Capital Corp. 5.125% 20271 | 5,000 | 4,937 |
CCO Holdings LLC and CCO Holdings Capital Corp. 3.75% 2028 | 750 | 719 |
CCO Holdings LLC and CCO Holdings Capital Corp. 4.20% 2028 | 3,555 | 3,526 |
CCO Holdings LLC and CCO Holdings Capital Corp. 5.375% 2047 | 3,315 | 3,409 |
Comcast Corp. 3.00% 2024 | 1,000 | 1,007 |
Comcast Corp. 3.30% 2027 | 925 | 944 |
Comcast Corp. 3.15% 2028 | 8,170 | 8,204 |
Comcast Corp. 4.00% 2047 | 670 | 700 |
Cumulus Media Inc. 7.75% 20193 | 1,715 | 326 |
Cumulus Media Inc., Term Loan B, (3-month USD-LIBOR + 3.25%) 4.82% 20202,4,5 | 1,620 | 1,400 |
DaimlerChrysler North America Holding Corp. (3-month USD-LIBOR + 0.86%) 2.237% 20181,2 | 7,500 | 7,529 |
DaimlerChrysler North America Holding Corp. 1.50% 20191 | 1,000 | 988 |
DaimlerChrysler North America Holding Corp. 2.85% 20221 | 500 | 502 |
DaimlerChrysler North America Holding Corp. 3.25% 20241 | 755 | 771 |
DaimlerChrysler North America Holding Corp. 3.30% 20251 | 5,500 | 5,583 |
Delphi Automotive PLC 5.00% 20251 | 255 | 259 |
Discovery Communications, Inc. 2.20% 2019 | 7,855 | 7,821 |
Discovery Communications, Inc. 2.95% 2023 | 4,185 | 4,146 |
Dollar General Corp. 1.875% 2018 | 1,211 | 1,210 |
Dollar Tree Inc. 5.75% 2023 | 1,225 | 1,285 |
Ford Motor Credit Co. 2.262% 2019 | 9,700 | 9,688 |
Ford Motor Credit Co. 2.375% 2019 | 18,650 | 18,661 |
Ford Motor Credit Co. 2.597% 2019 | 9,410 | 9,419 |
Ford Motor Credit Co. 2.343% 2020 | 17,500 | 17,344 |
Ford Motor Credit Co. 2.681% 2020 | 17,750 | 17,801 |
Ford Motor Credit Co. 3.157% 2020 | 2,000 | 2,026 |
Ford Motor Credit Co. 3.336% 2021 | 300 | 305 |
Ford Motor Credit Co. 3.219% 2022 | 7,315 | 7,366 |
Ford Motor Credit Co. 3.81% 2024 | 6,050 | 6,183 |
Ford Motor Credit Co. 4.134% 2025 | 10,000 | 10,357 |
Ford Motor Credit Co. 5.291% 2046 | 1,610 | 1,757 |
General Motors Financial Co. 2.40% 2019 | 17,990 | 17,999 |
General Motors Financial Co. 2.45% 2020 | 9,000 | 8,938 |
General Motors Financial Co. 3.70% 2020 | 15,895 | 16,327 |
General Motors Financial Co. 4.20% 2021 | 1,500 | 1,561 |
General Motors Financial Co. 3.15% 2022 | 12,500 | 12,502 |
General Motors Financial Co. 3.70% 2023 | 11,500 | 11,741 |
General Motors Financial Co. 3.50% 2024 | 1,575 | 1,574 |
Hilton Worldwide Holdings Inc. 4.25% 2024 | 2,850 | 2,886 |
Home Depot, Inc. 4.40% 2021 | 7,500 | 7,968 |
Home Depot, Inc. 2.80% 2027 | 12,000 | 11,816 |
Home Depot, Inc. 3.90% 2047 | 830 | 877 |
Hyundai Capital America 2.00% 20191 | 365 | 361 |
Hyundai Capital America 2.55% 20201 | 4,700 | 4,664 |
Hyundai Capital America 2.60% 20201 | 325 | 323 |
Hyundai Capital America 2.75% 20201 | 3,821 | 3,796 |
Hyundai Capital America 3.25% 20221 | 2,021 | 2,021 |
Hyundai Capital Services Inc. 1.625% 20191 | 1,600 | 1,566 |
Lowe’s Companies, Inc. 4.05% 2047 | 500 | 533 |
McDonald’s Corp. 4.875% 2045 | 7,365 | 8,559 |
American Funds Insurance Series — Bond Fund — Page 102 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Consumer discretionary (continued) | Principal amount (000) | Value (000) |
MGM Resorts International 7.75% 2022 | $2,000 | $2,285 |
NBC Universal Enterprise, Inc. 5.25% 20491 | 5,170 | 5,506 |
NBC Universal Media, LLC 5.15% 2020 | 10,000 | 10,657 |
Newell Rubbermaid Inc. 3.85% 2023 | 2,380 | 2,465 |
Newell Rubbermaid Inc. 4.20% 2026 | 3,965 | 4,144 |
Newell Rubbermaid Inc. 5.50% 2046 | 6,975 | 8,328 |
News America Inc. 4.00% 2023 | 1,100 | 1,152 |
NIKE, Inc. 3.875% 2045 | 7,145 | 7,494 |
Nissan Motor Co., Ltd. 2.60% 20221 | 1,415 | 1,398 |
RCI Banque 3.50% 20181 | 8,280 | 8,309 |
S.A.C.I. Falabella 3.75% 20271 | 860 | 843 |
Sally Holdings LLC and Sally Capital Inc. 5.625% 2025 | 300 | 300 |
Schaeffler Verwaltungs 4.75% 20261,8 | 340 | 346 |
Starbucks Corp. 3.75% 2047 | 3,885 | 3,944 |
Thomson Reuters Corp. 4.30% 2023 | 240 | 254 |
Time Warner Inc. 3.80% 2027 | 4,535 | 4,538 |
Toyota Motor Credit Corp. 2.125% 2019 | 500 | 500 |
Volkswagen Group of America Finance, LLC 1.65% 20181 | 3,500 | 3,497 |
Volkswagen Group of America Finance, LLC 2.45% 20191 | 520 | 520 |
Volkswagen Group of America Finance, LLC 2.40% 20201 | 3,055 | 3,048 |
Volkswagen International Finance NV 4.00% 20201 | 4,200 | 4,355 |
Walt Disney Co. 5.50% 2019 | 5,000 | 5,197 |
Warner Music Group 5.625% 20221 | 900 | 930 |
389,447 | ||
Utilities 3.43% | ||
AES Corp. 7.375% 2021 | 500 | 564 |
Alliant Energy Corporation 3.25% 2024 | 1,000 | 1,014 |
Ameren Corp. 3.70% 2047 | 340 | 348 |
American Electric Power Co., Inc. 2.15% 2020 | 1,000 | 996 |
American Electric Power Co., Inc. 2.75% 2026 | 2,170 | 2,093 |
American Electric Power Co., Inc. 3.20% 2027 | 2,825 | 2,810 |
Berkshire Hathaway Energy Co. 4.50% 2045 | 6,095 | 6,835 |
Calpine Corp. 5.375% 2023 | 410 | 401 |
Centerpoint Energy, Inc. 2.50% 2022 | 240 | 237 |
Cleveland Electric Illuminating Co. 8.875% 2018 | 7,475 | 7,899 |
CMS Energy Corp. 8.75% 2019 | 786 | 855 |
CMS Energy Corp. 5.05% 2022 | 2,669 | 2,904 |
Commonwealth Edison Company 2.95% 2027 | 250 | 247 |
Consolidated Edison Company of New York, Inc. 3.875% 2047 | 9,600 | 10,057 |
Consolidated Edison Company of New York, Inc. 4.00% 2057 | 500 | 524 |
Consumers Energy Co. 3.25% 2046 | 3,765 | 3,622 |
Dominion Resources, Inc. 1.875% 20181 | 5,450 | 5,434 |
Dominion Resources, Inc. 1.60% 2019 | 1,140 | 1,128 |
Dominion Resources, Inc. 2.962% 2019 | 500 | 504 |
Dominion Resources, Inc. 2.579% 2020 | 20,575 | 20,595 |
Duke Energy Carolinas, Inc. 3.70% 2047 | 450 | 464 |
Duke Energy Corp. 3.75% 2024 | 4,026 | 4,210 |
Duke Energy Corp. 2.65% 2026 | 4,660 | 4,472 |
Duke Energy Corp. 3.15% 2027 | 370 | 368 |
Duke Energy Florida, LLC 3.40% 2046 | 6,745 | 6,546 |
EDP Finance BV 3.625% 20241 | 23,650 | 23,837 |
Electricité de France SA 2.15% 20191 | 145 | 145 |
Emera Inc. 6.75% 2076 | 1,950 | 2,204 |
American Funds Insurance Series — Bond Fund — Page 103 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Utilities (continued) | Principal amount (000) | Value (000) |
Emera US Finance LP 2.70% 2021 | $954 | $952 |
Emera US Finance LP 3.55% 2026 | 495 | 497 |
Emera US Finance LP 4.75% 2046 | 500 | 549 |
Enel Finance International SA 2.75% 20231 | 2,400 | 2,367 |
Enel Finance International SA 3.625% 20271 | 1,000 | 995 |
Enel Finance International SA 3.50% 20281 | 1,200 | 1,176 |
Enel Finance International SA 4.75% 20471 | 491 | 533 |
Enel Società per Azioni 8.75% 20731 | 1,000 | 1,246 |
Entergy Corp. 2.95% 2026 | 595 | 580 |
Eversource Energy 2.75% 2022 | 527 | 528 |
Exelon Corp. 3.497% 2022 | 825 | 842 |
Exelon Corp. 3.40% 2026 | 1,570 | 1,573 |
FirstEnergy Corp. 3.90% 2027 | 19,790 | 20,311 |
FirstEnergy Corp. 3.50% 20281 | 3,825 | 3,836 |
FirstEnergy Corp. 7.375% 2031 | 7,200 | 9,730 |
FirstEnergy Corp. 4.85% 2047 | 13,480 | 15,091 |
FirstEnergy Corp., Series B, 4.25% 2023 | 4,505 | 4,710 |
Great Plains Energy Inc. 5.30% 2041 | 100 | 119 |
Great Plains Energy Inc. 4.20% 2047 | 2,221 | 2,359 |
Iberdrola Finance Ireland 5.00% 20191 | 1,825 | 1,900 |
IPALCO Enterprises, Inc. 3.70% 20241 | 200 | 200 |
MidAmerican Energy Holdings Co. 5.75% 2018 | 7,740 | 7,813 |
MidAmerican Energy Holdings Co. 3.75% 2023 | 5,890 | 6,140 |
Mississippi Power Co. 4.25% 2042 | 12,747 | 12,497 |
National Grid Plc 3.15% 20271 | 275 | 274 |
National Rural Utilities Cooperative Finance Corp. 10.375% 2018 | 13,750 | 14,691 |
Nevada Power Co., General and Refunding Mortgage Notes, Series V, 7.125% 2019 | 5,500 | 5,817 |
Niagara Mohawk Power Corp. 3.508% 20241 | 7,875 | 8,157 |
Niagara Mohawk Power Corp. 4.278% 20341 | 1,000 | 1,099 |
NiSource Finance Corp. 2.65% 2022 | 400 | 397 |
NV Energy, Inc 6.25% 2020 | 2,950 | 3,242 |
Pacific Gas and Electric Co. 2.45% 2022 | 7,875 | 7,730 |
Pacific Gas and Electric Co. 3.25% 2023 | 6,490 | 6,557 |
Pacific Gas and Electric Co. 3.40% 2024 | 850 | 867 |
Pacific Gas and Electric Co. 3.50% 2025 | 225 | 230 |
Pacific Gas and Electric Co. 3.30% 20271 | 1,100 | 1,092 |
Pacific Gas and Electric Co. 3.30% 2027 | 734 | 729 |
Pacific Gas and Electric Co. 4.75% 2044 | 336 | 373 |
Pacific Gas and Electric Co. 3.95% 20471 | 1,525 | 1,518 |
Pennsylvania Electric Co. 3.25% 20281 | 1,355 | 1,336 |
PG&E Corp. 2.40% 2019 | 3,810 | 3,813 |
Progress Energy, Inc. 7.05% 2019 | 3,180 | 3,358 |
Progress Energy, Inc. 7.75% 2031 | 1,920 | 2,693 |
Public Service Co. of Colorado 5.80% 2018 | 7,860 | 8,027 |
Public Service Electric and Gas Co. 3.60% 2047 | 500 | 513 |
Public Service Enterprise Group Inc. 2.00% 2021 | 3,061 | 2,991 |
Public Service Enterprise Group Inc. 2.65% 2022 | 3,906 | 3,876 |
Puget Energy, Inc. 6.50% 2020 | 5,896 | 6,531 |
Puget Energy, Inc. 6.00% 2021 | 8,286 | 9,174 |
Puget Energy, Inc. 5.625% 2022 | 8,104 | 8,958 |
Puget Energy, Inc. 3.65% 2025 | 3,000 | 3,080 |
SCANA Corp. 6.25% 2020 | 1,300 | 1,381 |
SCANA Corp. 4.75% 2021 | 2,600 | 2,698 |
SCANA Corp. 4.125% 2022 | 2,175 | 2,223 |
American Funds Insurance Series — Bond Fund — Page 104 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Utilities (continued) | Principal amount (000) | Value (000) |
South Carolina Electric & Gas Co. 5.30% 2033 | $515 | $585 |
South Carolina Electric & Gas Co. 5.45% 2041 | 1,325 | 1,571 |
South Carolina Electric & Gas Co. 4.35% 2042 | 225 | 236 |
South Carolina Electric & Gas Co. 4.10% 2046 | 350 | 357 |
South Carolina Electric & Gas Co. 5.10% 2065 | 200 | 230 |
Southwestern Public Service Co. 3.70% 2047 | 1,120 | 1,148 |
Tampa Electric Co. 2.60% 2022 | 4,550 | 4,497 |
Teco Finance, Inc. 5.15% 2020 | 4,871 | 5,129 |
Virginia Electric and Power Co. 1.20% 2018 | 2,700 | 2,699 |
Virginia Electric and Power Co. 4.45% 2044 | 8,295 | 9,388 |
Virginia Electric and Power Co., Series B, 3.80% 2047 | 500 | 519 |
Xcel Energy Inc. 4.70% 2020 | 12,750 | 13,297 |
Xcel Energy Inc. 3.30% 2025 | 5,850 | 5,937 |
366,875 | ||
Consumer staples 2.65% | ||
Altria Group, Inc. 2.85% 2022 | 5,000 | 5,035 |
Altria Group, Inc. 2.625% 2026 | 500 | 484 |
Altria Group, Inc. 4.50% 2043 | 3,000 | 3,264 |
Altria Group, Inc. 5.375% 2044 | 6,600 | 8,040 |
Altria Group, Inc. 3.875% 2046 | 1,800 | 1,789 |
Anheuser-Busch InBev NV 2.65% 2021 | 5,775 | 5,808 |
Anheuser-Busch InBev NV 3.65% 2026 | 18,635 | 19,259 |
Anheuser-Busch InBev NV 4.90% 2046 | 1,000 | 1,163 |
British American Tobacco International Finance PLC 2.75% 20201 | 5,550 | 5,580 |
British American Tobacco International Finance PLC 3.50% 20221 | 4,020 | 4,116 |
British American Tobacco International Finance PLC 3.95% 20251 | 5,550 | 5,790 |
British American Tobacco PLC 2.764% 20221 | 930 | 926 |
British American Tobacco PLC 3.222% 20241 | 2,000 | 2,002 |
British American Tobacco PLC 3.557% 20271 | 12,860 | 12,899 |
British American Tobacco PLC 4.39% 20371 | 2,000 | 2,098 |
British American Tobacco PLC 4.54% 20471 | 2,500 | 2,641 |
Church & Dwight Co., Inc. 3.15% 2027 | 750 | 740 |
Colgate-Palmolive Co. 3.70% 2047 | 555 | 569 |
Constellation Brands, Inc. 2.25% 2020 | 9,000 | 8,923 |
Constellation Brands, Inc. 2.65% 2022 | 3,285 | 3,253 |
Constellation Brands, Inc. 2.70% 2022 | 40 | 40 |
Constellation Brands, Inc. 3.50% 2027 | 170 | 174 |
Costco Wholesale Corp. 2.15% 2021 | 1,500 | 1,494 |
CVS Health Corp. 1.90% 2018 | 4,550 | 4,549 |
CVS Health Corp. 2.125% 2021 | 11,310 | 11,045 |
Herbalife Ltd., Term Loan, (3-month USD-LIBOR + 5.50%) 7.069% 20232,4,5 | 16,563 | 16,573 |
Imperial Tobacco Finance PLC 2.05% 20181 | 3,360 | 3,360 |
Imperial Tobacco Finance PLC 3.50% 20231 | 2,835 | 2,892 |
Kroger Co. 2.00% 2019 | 4,005 | 3,999 |
Kroger Co. 2.60% 2021 | 9,500 | 9,516 |
Molson Coors Brewing Co. 1.90% 2019 | 5,865 | 5,840 |
Molson Coors Brewing Co. 2.25% 2020 | 5,025 | 5,002 |
Molson Coors Brewing Co. 2.10% 2021 | 2,515 | 2,467 |
Molson Coors Brewing Co. 3.00% 2026 | 5,730 | 5,617 |
Molson Coors Brewing Co. 4.20% 2046 | 4,730 | 4,835 |
Mondelez International, Inc. 1.625% 20191 | 18,600 | 18,338 |
Pernod Ricard SA 4.45% 20221 | 7,870 | 8,366 |
Philip Morris International Inc. 2.375% 2022 | 280 | 276 |
American Funds Insurance Series — Bond Fund — Page 105 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Consumer staples (continued) | Principal amount (000) | Value (000) |
Philip Morris International Inc. 2.50% 2022 | $2,500 | $2,479 |
Philip Morris International Inc. 2.625% 2022 | 465 | 465 |
Philip Morris International Inc. 3.125% 2028 | 1,500 | 1,497 |
Philip Morris International Inc. 4.25% 2044 | 10,840 | 11,444 |
Procter & Gamble Co. 3.50% 2047 | 750 | 759 |
Reckitt Benckiser Group PLC 2.75% 20241 | 845 | 827 |
Reynolds American Inc. 2.30% 2018 | 1,790 | 1,792 |
Reynolds American Inc. 3.25% 2020 | 4,960 | 5,042 |
Reynolds American Inc. 3.25% 2022 | 2,250 | 2,283 |
Reynolds American Inc. 4.00% 2022 | 4,330 | 4,528 |
Reynolds American Inc. 4.85% 2023 | 6,430 | 7,009 |
Reynolds American Inc. 4.45% 2025 | 15,670 | 16,730 |
Reynolds American Inc. 5.70% 2035 | 1,255 | 1,499 |
Reynolds American Inc. 5.85% 2045 | 9,000 | 11,272 |
Wal-Mart Stores, Inc. 2.35% 2022 | 3,000 | 2,991 |
WM. Wrigley Jr. Co 3.375% 20201 | 13,405 | 13,733 |
283,112 | ||
Telecommunication services 1.78% | ||
AT&T Inc. 3.40% 2024 | 10,470 | 10,537 |
AT&T Inc. 3.40% 2025 | 24,515 | 24,135 |
AT&T Inc. 4.125% 2026 | 11,800 | 12,087 |
AT&T Inc. 3.90% 2027 | 14,405 | 14,525 |
AT&T Inc. 4.90% 2037 | 10,910 | 11,097 |
AT&T Inc. 4.50% 2048 | 656 | 617 |
AT&T Inc. 5.15% 2050 | 28,297 | 28,549 |
AT&T Inc. 5.30% 2058 | 13,065 | 13,150 |
British Telecommunications PLC 9.125% 2030 | 169 | 253 |
CenturyLink, Inc. 7.50% 2024 | 9,500 | 9,500 |
CenturyLink, Inc., Series T, 5.80% 2022 | 3,500 | 3,441 |
Deutsche Telekom International Finance BV 1.95% 20211 | 16,364 | 15,925 |
Deutsche Telekom International Finance BV 2.485% 20231 | 300 | 291 |
Deutsche Telekom International Finance BV 3.60% 20271 | 500 | 503 |
France Télécom 9.00% 2031 | 1,748 | 2,628 |
Frontier Communications Corp. 11.00% 2025 | 300 | 222 |
Orange SA 2.75% 2019 | 3,570 | 3,591 |
SoftBank Group Corp. 3.36% 20231,5 | 11,719 | 11,821 |
Verizon Communications Inc. 4.125% 2027 | 4,676 | 4,884 |
Verizon Communications Inc. 4.50% 2033 | 15,685 | 16,487 |
Verizon Communications Inc. 4.272% 2036 | 5,280 | 5,265 |
Verizon Communications Inc. 4.862% 2046 | 1,414 | 1,477 |
190,985 | ||
Information technology 1.07% | ||
Analog Devices, Inc. 2.50% 2021 | 6,535 | 6,476 |
Analog Devices, Inc. 3.125% 2023 | 1,450 | 1,455 |
Analog Devices, Inc. 3.50% 2026 | 6,455 | 6,543 |
Apple Inc. 1.55% 2021 | 12,130 | 11,789 |
Apple Inc. 3.00% 2024 | 170 | 172 |
Apple Inc. 2.90% 2027 | 13,500 | 13,353 |
Apple Inc. 3.00% 2027 | 750 | 746 |
Apple Inc. 3.20% 2027 | 510 | 517 |
Apple Inc. 3.35% 2027 | 502 | 515 |
Broadcom Ltd. 3.00% 20221 | 15,500 | 15,381 |
American Funds Insurance Series — Bond Fund — Page 106 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Information technology (continued) | Principal amount (000) | Value (000) |
Broadcom Ltd. 3.625% 20241 | $2,950 | $2,937 |
Broadcom Ltd. 3.875% 20271 | 12,360 | 12,182 |
Dell Inc. 2.65% 2020 | 6,075 | 6,001 |
Harris Corp. 1.999% 2018 | 6,400 | 6,394 |
Harris Corp. 2.70% 2020 | 1,400 | 1,406 |
Harris Corp. 3.832% 2025 | 945 | 981 |
Infor (US), Inc. 5.75% 20201 | 225 | 232 |
Itron, Inc. 5.00% 20261 | 100 | 101 |
Microsoft Corp. 1.85% 2020 | 250 | 249 |
Microsoft Corp. 2.40% 2022 | 397 | 397 |
Microsoft Corp. 3.30% 2027 | 369 | 381 |
Microsoft Corp. 4.25% 2047 | 12,750 | 14,601 |
NXP BV and NXP Funding LLC 4.125% 20211 | 2,000 | 2,045 |
Oracle Corp. 1.90% 2021 | 500 | 492 |
Oracle Corp. 3.25% 2027 | 1,615 | 1,644 |
Oracle Corp. 4.125% 2045 | 2,525 | 2,728 |
Oracle Corp. 4.00% 2046 | 250 | 266 |
Vantiv, Inc. 4.375% 20251 | 1,775 | 1,802 |
Visa Inc. 2.75% 2027 | 300 | 296 |
Xerox Corp. 3.50% 2020 | 2,000 | 2,022 |
114,104 | ||
Industrials 0.94% | ||
3M Co. 2.25% 2023 | 1,220 | 1,211 |
Airbus Group SE 2.70% 20231 | 2,220 | 2,220 |
ARAMARK Corp. 5.125% 2024 | 1,200 | 1,262 |
BNSF Funding Trust I 6.613% 2055 | 1,680 | 1,940 |
Canadian National Railway Co. 5.55% 2018 | 5,000 | 5,068 |
CEVA Group PLC, Term Loan B, (3-month USD-LIBOR + 5.50%) 6.878% 20212,4,5 | 1,195 | 1,142 |
CEVA Group PLC 7.00% 20211 | 775 | 756 |
CEVA Group PLC, Apollo Global Securities LLC LOC, (3-month USD-LIBOR + 5.50%) 6.50% 20212,4,5 | 853 | 816 |
CEVA Logistics Canada, ULC, Term Loan, (3-month USD-LIBOR + 5.50%) 6.878% 20212,4,5 | 149 | 143 |
CEVA Logistics Holdings BV, Term Loan, (3-month USD-LIBOR + 5.50%) 6.878% 20212,4,5 | 866 | 828 |
Continental Airlines, Inc., Series 1997-4, Class A, 6.90% 20195 | 100 | 100 |
Continental Airlines, Inc., Series 1999-1, Class A, 6.545% 20205 | 312 | 318 |
Continental Airlines, Inc., Series 1999-2, Class B, 7.566% 20215 | — | — |
Continental Airlines, Inc., Series 2001-1, Class A1, 6.703% 20225 | 63 | 69 |
Continental Airlines, Inc., Series 2000-2, Class A1, 7.707% 20225 | 892 | 977 |
Continental Airlines, Inc., Series 2000-1, Class A1, 8.048% 20225 | 453 | 498 |
Corporate Risk Holdings LLC 9.50% 20191 | 1,804 | 1,887 |
Corporate Risk Holdings LLC 13.50% 2020 (100% PIK)1,6,7,8 | 364 | 389 |
Deck Chassis Acquisition Inc. 10.00% 20231 | 1,000 | 1,117 |
ERAC USA Finance Co. 4.20% 20461 | 750 | 737 |
FedEx Corp. 4.40% 2047 | 490 | 525 |
General Electric Capital Corp. 2.342% 2020 | 4,788 | 4,768 |
General Electric Capital Corp. 3.10% 2023 | 1,850 | 1,880 |
General Electric Capital Corp. 3.373% 2025 | 4,815 | 4,901 |
General Electric Co. 2.70% 2022 | 5,000 | 4,995 |
JELD-WEN Holding, Inc. 4.625% 20251 | 155 | 157 |
Lockheed Martin Corp. 2.50% 2020 | 3,155 | 3,177 |
Lockheed Martin Corp. 3.10% 2023 | 1,155 | 1,175 |
Lockheed Martin Corp. 3.55% 2026 | 3,045 | 3,166 |
Lockheed Martin Corp. 4.50% 2036 | 2,155 | 2,422 |
Lockheed Martin Corp. 4.70% 2046 | 5,695 | 6,666 |
American Funds Insurance Series — Bond Fund — Page 107 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Industrials (continued) | Principal amount (000) | Value (000) |
Northrop Grumman Corp. 3.25% 2028 | $12,745 | $12,787 |
Northrop Grumman Corp. 4.03% 2047 | 955 | 1,001 |
Republic Services, Inc. 5.00% 2020 | 5,000 | 5,270 |
Republic Services, Inc. 3.375% 2027 | 1,215 | 1,226 |
Rockwell Collins, Inc. 2.80% 2022 | 245 | 246 |
Roper Technologies, Inc. 2.80% 2021 | 175 | 175 |
Roper Technologies, Inc. 3.80% 2026 | 420 | 434 |
United Parcel Service, Inc. 2.50% 2023 | 1,500 | 1,492 |
United Parcel Service, Inc. 3.05% 2027 | 1,125 | 1,126 |
United Rentals, Inc. 5.50% 2027 | 5,000 | 5,275 |
United Technologies Corp. 3.125% 2027 | 15,900 | 15,924 |
100,266 | ||
Real estate 0.82% | ||
Alexandria Real Estate Equities, Inc. 2.75% 2020 | 2,075 | 2,085 |
Alexandria Real Estate Equities, Inc. 3.90% 2023 | 3,690 | 3,817 |
Alexandria Real Estate Equities, Inc. 3.95% 2028 | 1,830 | 1,872 |
Alexandria Real Estate Equities, Inc. 4.50% 2029 | 150 | 159 |
American Campus Communities, Inc. 3.35% 2020 | 2,910 | 2,969 |
American Campus Communities, Inc. 3.75% 2023 | 3,000 | 3,080 |
American Campus Communities, Inc. 3.625% 2027 | 305 | 302 |
American Tower Corp. 3.40% 2019 | 7,525 | 7,612 |
Corporate Office Properties LP 5.25% 2024 | 10 | 11 |
Corporate Office Properties LP 5.00% 2025 | 130 | 139 |
DCT Industrial Trust Inc. 4.50% 2023 | 2,340 | 2,455 |
Developers Diversified Realty Corp. 3.90% 2024 | 1,480 | 1,493 |
EPR Properties 4.50% 2025 | 385 | 395 |
EPR Properties 4.75% 2026 | 760 | 781 |
Essex Portfolio LP 3.25% 2023 | 335 | 338 |
Essex Portfolio LP 3.875% 2024 | 1,000 | 1,038 |
Hospitality Properties Trust 4.25% 2021 | 4,750 | 4,915 |
Hospitality Properties Trust 5.00% 2022 | 1,370 | 1,463 |
Hospitality Properties Trust 4.50% 2025 | 855 | 889 |
Hospitality Properties Trust 3.95% 2028 | 1,990 | 1,934 |
Howard Hughes Corp. 5.375% 20251 | 5,700 | 5,857 |
Kimco Realty Corp. 6.875% 2019 | 3,500 | 3,763 |
Kimco Realty Corp. 3.40% 2022 | 1,045 | 1,067 |
Omega Healthcare Investors, Inc. 4.375% 2023 | 900 | 914 |
Piedmont Operating Partnership LP 4.45% 2024 | 1,000 | 1,042 |
Prologis, Inc. 4.25% 2023 | 7,410 | 7,941 |
Public Storage 2.37% 2022 | 350 | 345 |
Public Storage 3.094% 2027 | 460 | 457 |
Scentre Group 2.375% 20191 | 2,465 | 2,460 |
Scentre Group 2.375% 20211 | 175 | 173 |
Scentre Group 3.50% 20251 | 4,765 | 4,794 |
UDR, Inc. 3.50% 2028 | 490 | 490 |
WEA Finance LLC 2.70% 20191 | 5,675 | 5,707 |
WEA Finance LLC 3.25% 20201 | 14,375 | 14,635 |
87,392 | ||
Materials 0.44% | ||
Anglo American Capital PLC 4.00% 20271 | 750 | 746 |
BHP Billiton Finance Ltd. 6.25% 20751 | 5,265 | 5,715 |
FMG Resources 9.75% 20221 | 2,465 | 2,734 |
American Funds Insurance Series — Bond Fund — Page 108 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Materials (continued) | Principal amount (000) | Value (000) |
Holcim Ltd. 5.15% 20231 | $1,760 | $1,925 |
LYB International Finance BV 3.50% 2027 | 435 | 438 |
Mosaic Co. 3.25% 2022 | 500 | 496 |
Mosaic Co. 4.05% 2027 | 470 | 472 |
Sherwin-Williams Co. 2.75% 2022 | 250 | 249 |
Sherwin-Williams Co. 3.125% 2024 | 145 | 146 |
Sherwin-Williams Co. 3.45% 2027 | 1,550 | 1,577 |
Sherwin-Williams Co. 4.50% 2047 | 235 | 258 |
Vale SA 5.875% 2021 | 22,390 | 24,439 |
Vale SA 4.375% 2022 | 2,610 | 2,705 |
Vale SA 6.25% 2026 | 4,538 | 5,269 |
Westlake Chemical Corp. 4.375% 2047 | 235 | 245 |
47,414 | ||
Total corporate bonds & notes | 3,463,156 | |
U.S. Treasury bonds & notes 27.17% U.S. Treasury 24.87% | ||
U.S. Treasury 0.75% 2019 | 1,678 | 1,648 |
U.S. Treasury 1.00% 2019 | 1,489 | 1,467 |
U.S. Treasury 1.125% 2019 | 7,190 | 7,131 |
U.S. Treasury 1.50% 2019 | 26,790 | 26,615 |
U.S. Treasury 1.875% 2019 | 336 | 336 |
U.S. Treasury 1.625% 2020 | 46,870 | 46,460 |
U.S. Treasury 1.875% 2020 | 2,060 | 2,054 |
U.S. Treasury 8.75% 2020 | 40,000 | 46,934 |
U.S. Treasury 2.00% 2021 | 225 | 224 |
U.S. Treasury 1.75% 2022 | 5,684 | 5,585 |
U.S. Treasury 1.75% 2022 | 893 | 877 |
U.S. Treasury 1.875% 2022 | 635 | 628 |
U.S. Treasury 2.125% 2022 | 172,737 | 172,069 |
U.S. Treasury 2.125% 2022 | 150,000 | 149,736 |
U.S. Treasury 2.25% 2023 | 115,000 | 114,802 |
U.S. Treasury 2.125% 2024 | 260,000 | 257,452 |
U.S. Treasury 2.125% 2024 | 200,000 | 197,500 |
U.S. Treasury 2.125% 2024 | 159,445 | 157,576 |
U.S. Treasury 2.25% 2024 | 80,000 | 79,831 |
U.S. Treasury 2.25% 2024 | 77,542 | 77,148 |
U.S. Treasury 2.25% 2027 | 266,623 | 262,999 |
U.S. Treasury 2.25% 2027 | 226,075 | 223,315 |
U.S. Treasury 2.25% 2027 | 150,000 | 147,993 |
U.S. Treasury 2.375% 2027 | 200,000 | 199,582 |
U.S. Treasury 6.125% 2027 | 25,000 | 33,145 |
U.S. Treasury 2.875% 2045 | 413 | 424 |
U.S. Treasury 3.00% 2045 | 30,000 | 31,517 |
U.S. Treasury 2.50% 2046 | 38,000 | 36,162 |
U.S. Treasury 2.875% 2046 | 3,368 | 3,455 |
U.S. Treasury 2.75% 2047 | 304,179 | 304,608 |
U.S. Treasury 2.75% 2047 | 71,680 | 71,820 |
2,661,093 |
American Funds Insurance Series — Bond Fund — Page 109 of 171
Bonds, notes & other debt instruments U.S. Treasury bonds & notes (continued) U.S. Treasury inflation-protected securities 2.30% | Principal amount (000) | Value (000) |
U.S. Treasury Inflation-Protected Security 0.375% 20259 | $53,074 | $53,159 |
U.S. Treasury Inflation-Protected Security 2.00% 20269 | 37,595 | 42,282 |
U.S. Treasury Inflation-Protected Security 0.375% 20279 | 151,257 | 150,475 |
245,916 | ||
Total U.S. Treasury bonds & notes | 2,907,009 | |
Mortgage-backed obligations 25.85% Federal agency mortgage-backed obligations 25.54% | ||
Fannie Mae 5.50% 20235 | 701 | 733 |
Fannie Mae 4.50% 20255 | 412 | 435 |
Fannie Mae 6.00% 20265 | 301 | 336 |
Fannie Mae 5.50% 20275 | 182 | 200 |
Fannie Mae 6.00% 20275 | 486 | 543 |
Fannie Mae 3.50% 20335,10 | 59,300 | 61,169 |
Fannie Mae 3.50% 20335,10 | 25,000 | 25,809 |
Fannie Mae 4.00% 20365 | 629 | 665 |
Fannie Mae 6.00% 20375 | 1,197 | 1,346 |
Fannie Mae 6.00% 20375 | 80 | 86 |
Fannie Mae 5.50% 20385 | 2,887 | 3,191 |
Fannie Mae 5.50% 20385 | 397 | 436 |
Fannie Mae 4.00% 20405 | 1,504 | 1,582 |
Fannie Mae 5.00% 20405 | 543 | 594 |
Fannie Mae 5.00% 20415 | 3,964 | 4,285 |
Fannie Mae 5.00% 20415 | 3,598 | 3,876 |
Fannie Mae 5.00% 20415 | 2,383 | 2,618 |
Fannie Mae 5.00% 20415 | 1,569 | 1,720 |
Fannie Mae 5.00% 20415 | 1,256 | 1,383 |
Fannie Mae 5.00% 20415 | 927 | 1,021 |
Fannie Mae 4.00% 20435 | 15,131 | 15,904 |
Fannie Mae 4.00% 20435 | 1,925 | 2,021 |
Fannie Mae 3.00% 20465 | 75,036 | 75,112 |
Fannie Mae 3.50% 20465 | 2,598 | 2,686 |
Fannie Mae 4.00% 20465 | 16,050 | 16,935 |
Fannie Mae 4.00% 20465 | 4,172 | 4,396 |
Fannie Mae 3.50% 20475 | 80,119 | 82,381 |
Fannie Mae 3.50% 20475 | 21,732 | 22,346 |
Fannie Mae 3.50% 20475 | 16,182 | 16,639 |
Fannie Mae 3.50% 20475 | 11,146 | 11,461 |
Fannie Mae 4.00% 20475 | 88,762 | 93,005 |
Fannie Mae 4.00% 20475 | 21,045 | 22,070 |
Fannie Mae 4.00% 20475 | 9,897 | 10,370 |
Fannie Mae 4.50% 20475 | 31,199 | 33,246 |
Fannie Mae 3.50% 20485,10 | 100,000 | 102,574 |
Fannie Mae 3.50% 20485,10 | 77,040 | 79,149 |
Fannie Mae 3.50% 20485 | 3,727 | 3,832 |
Fannie Mae 4.00% 20485,10 | 275,000 | 287,754 |
Fannie Mae 4.00% 20485,10 | 171,162 | 178,860 |
Fannie Mae 4.50% 20485,10 | 300,000 | 319,217 |
Fannie Mae 4.50% 20485,10 | 148,375 | 157,694 |
Fannie Mae Pool #924866 2.89% 20372,5 | 882 | 910 |
Fannie Mae, Series 2001-4, Class GA, 9.251% 20252,5 | 4 | 4 |
Fannie Mae, Series 2001-T10, Class A1, 7.00% 20415 | 30 | 35 |
Fannie Mae, Series 2001-50, Class BA, 7.00% 20415 | 19 | 22 |
American Funds Insurance Series — Bond Fund — Page 110 of 171
Bonds, notes & other debt instruments Mortgage-backed obligations (continued) Federal agency mortgage-backed obligations (continued) | Principal amount (000) | Value (000) |
Fannie Mae, Series 2002-W3, Class A5, 7.50% 20415 | $36 | $41 |
Fannie Mae, Series 2002-W1, Class 2A, 7.50% 20422,5 | 43 | 48 |
Freddie Mac 5.50% 20335 | 146 | 160 |
Freddie Mac 3.50% 20365 | 203 | 210 |
Freddie Mac 4.00% 20365 | 830 | 878 |
Freddie Mac 3.50% 20375 | 30,462 | 31,615 |
Freddie Mac 3.50% 20375 | 27,952 | 29,011 |
Freddie Mac 3.50% 20375 | 20,027 | 20,786 |
Freddie Mac 3.50% 20375 | 11,541 | 11,978 |
Freddie Mac 3.50% 20375 | 8,195 | 8,506 |
Freddie Mac 3.50% 20375 | 5,475 | 5,682 |
Freddie Mac 5.50% 20385 | 162 | 179 |
Freddie Mac 5.50% 20385 | 125 | 138 |
Freddie Mac 5.50% 20395 | 238 | 263 |
Freddie Mac 4.50% 20405 | 518 | 553 |
Freddie Mac 5.50% 20405 | 913 | 1,008 |
Freddie Mac 4.50% 20415 | 606 | 647 |
Freddie Mac 5.50% 20415 | 1,295 | 1,432 |
Freddie Mac 3.50% 20455 | 39,794 | 41,249 |
Freddie Mac 3.50% 20475 | 74,888 | 77,080 |
Freddie Mac 3.50% 20475 | 8,787 | 9,044 |
Freddie Mac 4.00% 20475 | 4,066 | 4,261 |
Freddie Mac 3.00% 20485,10 | 41,200 | 41,228 |
Freddie Mac 3.50% 20485,10 | 33,110 | 33,966 |
Freddie Mac 4.00% 20485,10 | 275,000 | 287,699 |
Freddie Mac 4.00% 20485,10 | 76,000 | 79,403 |
Freddie Mac 4.50% 20485,10 | 10,500 | 11,166 |
Freddie Mac, Series K716, Class A2, Multi Family 3.13% 20215 | 6,875 | 7,045 |
Freddie Mac, Series K020, Class A2, Multi Family 2.373% 20225 | 4,500 | 4,493 |
Freddie Mac, Series K718, Class A2, Multi Family 2.791% 20225 | 9,640 | 9,779 |
Freddie Mac, Series 3061, Class PN, 5.50% 20355 | 157 | 173 |
Freddie Mac, Series 3146, Class PO, principal only, 0% 20365 | 355 | 305 |
Freddie Mac, Series 3156, Class PO, principal only, 0% 20365 | 314 | 272 |
Freddie Mac, Series 3318, Class JT, 5.50% 20375 | 406 | 434 |
Government National Mortgage Assn. 4.50% 20405 | 1,232 | 1,308 |
Government National Mortgage Assn. 4.50% 20455 | 17,090 | 18,047 |
Government National Mortgage Assn. 4.00% 20475 | 48,599 | 50,760 |
Government National Mortgage Assn. 4.50% 20475 | 8,950 | 9,447 |
Government National Mortgage Assn. 4.00% 20485,10 | 125,150 | 130,541 |
Government National Mortgage Assn. 4.00% 20485,10 | 51,450 | 53,648 |
Government National Mortgage Assn. 4.50% 20485,10 | 75,550 | 79,256 |
Government National Mortgage Assn. 4.50% 20485,10 | 17,100 | 17,928 |
2,732,318 | ||
Collateralized mortgage-backed (privately originated) 0.23% | ||
Mill City Mortgage Trust, Series 2017-1, Class A1, 2.75% 20581,2,5 | 6,494 | 6,507 |
Nationstar HECM Loan Trust, Series 2017-2A, Class M1, 2.8154% 20271,5 | 1,115 | 1,118 |
Nationstar HECM Loan Trust, Series 2017-1A, Class M1, 2.9419% 20271,5 | 1,055 | 1,059 |
Towd Point Mortgage Trust, Series 2017-1, Class A1, 2.75% 20561,2,5 | 15,426 | 15,443 |
24,127 |
American Funds Insurance Series — Bond Fund — Page 111 of 171
Bonds, notes & other debt instruments Mortgage-backed obligations (continued) Commercial mortgage-backed securities 0.08% | Principal amount (000) | Value (000) |
Citigroup Commercial Mortgage Trust, Series 2008-C7, Class AM, 6.191% 20492,5 | $4,306 | $4,294 |
L.A. Arena Funding, LLC, Series 1, Class A, 7.656% 20261,5 | 551 | 575 |
LB-UBS Commercial Mortgage Trust, Series 2007-C6, Class AM, 6.114% 20402,5 | 3,620 | 3,618 |
8,487 | ||
Total mortgage-backed obligations | 2,764,932 | |
Bonds & notes of governments & government agencies outside the U.S. 6.38% | ||
Dominican Republic 5.95% 20271 | 8,100 | 8,768 |
Germany (Federal Republic of) 0.10% 20269 | €25,685 | 34,032 |
Japan, Series 19, 0.10% 20249 | ¥5,366,380 | 50,151 |
Japan, Series 20, 0.10% 20259 | 11,317,500 | 106,018 |
Kuwait (State of) 3.50% 20271 | $14,200 | 14,447 |
Malaysia (Federation of), Series 0315, 3.659% 2020 | MYR49,000 | 12,219 |
Malaysia (Federation of), Series 0416, 3.62% 2021 | 42,750 | 10,618 |
Manitoba (Province of) 3.05% 2024 | $5,050 | 5,154 |
Ontario (Province of) 3.20% 2024 | 9,000 | 9,287 |
Peru (Republic of) 4.125% 2027 | 9,540 | 10,389 |
Portuguese Republic 5.125% 2024 | 101,050 | 108,779 |
Portuguese Republic 5.65% 2024 | €20,000 | 30,550 |
Portuguese Republic 2.875% 2025 | 24,000 | 31,789 |
Portuguese Republic 4.10% 2045 | 375 | 529 |
Saudi Arabia (Kingdom of) 2.875% 20231 | $6,895 | 6,788 |
Saudi Arabia (Kingdom of) 3.628% 20271 | 5,000 | 5,055 |
Saudi Arabia (Kingdom of) 3.625% 20281 | 11,435 | 11,353 |
Saudi Arabia (Kingdom of) 4.625% 20471 | 225 | 230 |
Turkey (Republic of) 5.625% 2021 | 20,800 | 21,928 |
Turkey (Republic of) 5.75% 2047 | 9,350 | 9,132 |
United Mexican States 3.60% 2025 | 12,000 | 12,192 |
United Mexican States 4.35% 2047 | 5,000 | 4,788 |
United Mexican States, Series M, 6.50% 2021 | MXN3,132,700 | 154,042 |
United Mexican States, Series M, 5.75% 2026 | 527,500 | 23,742 |
681,980 | ||
Asset-backed obligations 2.78% | ||
AmeriCredit Automobile Receivables Trust, Series 2016-2, Class C, 2.87% 20215 | $175 | 176 |
AmeriCredit Automobile Receivables Trust, Series 2017-1, Class C, 2.71% 20225 | 5,970 | 5,968 |
AmeriCredit Automobile Receivables Trust, Series 2016-1, Class C, 2.89% 20225 | 2,485 | 2,503 |
BlueMountain CLO Ltd., Series 2014-2A, Class AR, (3-month USD LIBOR + 0.93%) 2.293% 20261,2,5 | 8,280 | 8,304 |
Capital One Multi-asset Execution Trust, Series 2015-A5, Class A5, 1.60% 20215 | 11,585 | 11,574 |
CenterPoint Energy Transition Bond Co. III, LLC, Series 2008, Class A2, 5.234% 20235 | 1,107 | 1,143 |
Chase Issuance Trust, Series 2013-A7, Class A, (1-month USD-LIBOR + 0.43%) 1.907% 20202,5 | 9,565 | 9,590 |
Citibank Credit Card Issuance Trust, Series 2008-A2, Class A2, (1-month USD-LIBOR + 1.15%) 2.702% 20202,5 | 10,870 | 10,878 |
CPS Auto Receivables Trust, Series 2016-A, Class B, 3.34% 20201,5 | 7,100 | 7,147 |
CPS Auto Receivables Trust, Series 2017-B, Class C, 2.92% 20221,5 | 5,700 | 5,682 |
Discover Card Execution Note Trust, Series 2015-A1, Class A1, (1-month USD-LIBOR + 0.35%) 1.827% 20202,5 | 7,980 | 7,984 |
Drive Auto Receivables Trust, Series 2017-AA, Class A3, 1.77% 20201,5 | 6,405 | 6,403 |
Drive Auto Receivables Trust, Series 2017-BA, Class C, 2.61% 20211,5 | 19,400 | 19,448 |
Drive Auto Receivables Trust, Series 2015-BA, Class C, 2.76% 20211,5 | 2,856 | 2,865 |
Drive Auto Receivables Trust, Series 2015-CA, Class C, 3.01% 20211,5 | 2,125 | 2,134 |
Drive Auto Receivables Trust, Series 2016-CA, Class C, 3.02% 20211,5 | 2,500 | 2,519 |
Drive Auto Receivables Trust, Series 2015-DA, Class C, 3.38% 20211,5 | 2,542 | 2,558 |
American Funds Insurance Series — Bond Fund — Page 112 of 171
Bonds, notes & other debt instruments Asset-backed obligations (continued) | Principal amount (000) | Value (000) |
Drive Auto Receivables Trust, Series 2016-AA, Class C, 3.91% 20211,5 | $10,000 | $10,076 |
Drive Auto Receivables Trust, Series 2017-1, Class C, 2.84% 20225 | 12,000 | 12,058 |
Drive Auto Receivables Trust, Series 2017-AA, Class C, 2.98% 20221,5 | 9,760 | 9,829 |
Drive Auto Receivables Trust, Series 2017-2, Class C, 2.75% 20235 | 3,500 | 3,506 |
Drivetime Auto Owner Trust, Series 2017-1A, Class B, 2.26% 20211,5 | 4,100 | 4,102 |
Drivetime Auto Owner Trust, Series 2017-1A, Class C, 2.70% 20221,5 | 6,625 | 6,610 |
Drivetime Auto Owner Trust, Series 2016-3A, Class C, 3.15% 20221,5 | 2,650 | 2,659 |
Drivetime Auto Owner Trust, Series 2017-4A, Class C, 2.86% 20231,5 | 4,440 | 4,445 |
Drivetime Auto Owner Trust, Series 2017-3A, Class C, 3.01% 20231,5 | 6,000 | 6,012 |
Enterprise Fleet Financing LLC, Series 2017-1, Class A2, 2.13% 20221,5 | 11,913 | 11,916 |
Exeter Automobile Receivables Trust, Series 2015-1A, Class C, 4.10% 20201,5 | 7,500 | 7,595 |
Exeter Automobile Receivables Trust, Series 2015-2A, Class C, 3.90% 20211,5 | 3,000 | 3,038 |
Exeter Automobile Receivables Trust, Series 2015-3A, Class C, 4.83% 20211,5 | 1,000 | 1,021 |
Exeter Automobile Receivables Trust, Series 2014-1A, Class D, 5.53% 20211,5 | 3,500 | 3,557 |
Exeter Automobile Receivables Trust, Series 2017-3A, Class B, 2.81% 20221,5 | 8,100 | 8,048 |
Ford Credit Floorplan Master Owner Trust, Series 2016-3, Class B, 1.75% 20215 | 1,620 | 1,605 |
GMF Floorplan Owner Revolving Trust, Series 2017-1, Class A1, 2.22% 20221,5 | 7,365 | 7,348 |
Hertz Vehicle Financing LLC, Rental Car Asset-backed Notes, Series 2013-1A, Class A2, 1.83% 20191,5 | 11,000 | 10,986 |
Home Equity Mortgage Trust, Series 2006-6, Class 2A1, (1-month USD-LIBOR + 0.10%) 1.752% 20372,5 | 1,367 | 125 |
Santander Drive Auto Receivables Trust, Series 2016-1, Class B, 2.47% 20205 | 4,000 | 4,007 |
Santander Drive Auto Receivables Trust, Series 2016-3, Class C, 2.46% 20225 | 1,200 | 1,201 |
Santander Drive Auto Receivables Trust, Series 2017-1, Class C, 2.58% 20225 | 13,605 | 13,570 |
Santander Drive Auto Receivables Trust, Series 2017-3, Class C, 2.76% 20225 | 3,955 | 3,959 |
Santander Drive Auto Receivables Trust, Series 2016-1, Class C, 3.09% 20225 | 10,775 | 10,888 |
Social Professional Loan Program LLC, Series 2015-C, Class A2, 2.51% 20331,5 | 2,610 | 2,602 |
Verizon Owner Trust, Series 2016-1A, Class A, 1.42% 20211,5 | 490 | 487 |
Verizon Owner Trust, Series 2017-1A, Class A, 2.06% 20211,5 | 18,255 | 18,215 |
Verizon Owner Trust, Series 2017-1A, Class B, 2.45% 20211,5 | 2,000 | 2,001 |
Verizon Owner Trust, Series 2017-1A, Class C, 2.65% 20211,5 | 2,500 | 2,498 |
Verizon Owner Trust, Series 2017-3A, Class A1A, 2.06% 20221,5 | 5,235 | 5,215 |
Verizon Owner Trust, Series 2017-3A, Class B, 2.38% 20221,5 | 2,950 | 2,943 |
Voya CLO Ltd., Series 2014-3A, Class A1R, (3-month USD-LIBOR + 0.72%) 2.236% 20261,2,5 | 5,560 | 5,560 |
Westlake Automobile Receivables Trust, Series 2017-1A, Class C, 2.70% 20221,5 | 3,000 | 3,001 |
Wheels SPV 2 LLC, Series 2016-1A, Class A2, 1.59% 20251,5 | 288 | 288 |
297,847 | ||
Municipals 2.25% Illinois 1.82% | ||
Board of Education of the City of Chicago, Unlimited Tax G.O. Bonds (Dedicated Rev.), Series 2009-E, 6.138% 2039 | 27,130 | 25,937 |
Board of Education of the City of Chicago, Unlimited Tax G.O. Bonds (Dedicated Rev.), Series 2010-C, 6.319% 2029 | 2,150 | 2,114 |
Board of Education of the City of Chicago, Unlimited Tax G.O. Bonds (Dedicated Rev.), Series 2010-D, 6.519% 2040 | 5,000 | 4,861 |
G.O. Bonds, Pension Funding Series 2003, 4.95% 2023 | 24,805 | 25,903 |
G.O. Bonds, Pension Funding Series 2003, 5.10% 20335 | 93,475 | 93,483 |
G.O. Bonds, Pension Funding Series 2013, 5.877% 2019 | 400 | 413 |
G.O. Bonds, Series 2013-B, 3.65% 2020 | 1,000 | 1,001 |
G.O. Bonds, Series 2013-B, 4.11% 2022 | 750 | 758 |
G.O. Bonds, Series 2013-B, 4.31% 2023 | 2,125 | 2,140 |
G.O. Bonds, Series 2013-B, 4.91% 2027 | 1,450 | 1,447 |
G.O. Bonds, Taxable Build America Bonds, Series 2010-1, 6.63% 2035 | 13,780 | 15,316 |
G.O. Bonds, Taxable Build America Bonds, Series 2010-2, 5.65% 2020 | 250 | 260 |
G.O. Bonds, Taxable Build America Bonds, Series 2010-2, 5.85% 2022 | 2,370 | 2,544 |
G.O. Bonds, Taxable Build America Bonds, Series 2010-2, 5.95% 2023 | 2,950 | 3,181 |
American Funds Insurance Series — Bond Fund — Page 113 of 171
Bonds, notes & other debt instruments Municipals (continued) Illinois (continued) | Principal amount (000) | Value (000) |
G.O. Bonds, Taxable Build America Bonds, Series 2010-2, 6.15% 2025 | $3,955 | $4,274 |
G.O. Bonds, Taxable Build America Bonds, Series 2010-3, 5.547% 2019 | 335 | 344 |
G.O. Bonds, Taxable Build America Bonds, Series 2010-3, 5.727% 2020 | 2,400 | 2,503 |
G.O. Bonds, Taxable Build America Bonds, Series 2010-5, 6.20% 20215 | 7,784 | 8,148 |
194,627 | ||
Florida 0.14% | ||
Hurricane Catastrophe Fund Fin. Corp., Rev. Bonds, Series 2013-A, 2.995% 2020 | 15,000 | 15,204 |
California 0.14% | ||
High-Speed Passenger Train G.O. Ref. Bonds, Series 2017-A, 2.367% 2022 | 3,875 | 3,866 |
Industry Public Facs. Auth., Tax Allocation Rev. Ref. Bonds (Civic - Recreational-Industrial Redev. Project No. 1), Series 2015-A, Assured Guaranty Municipal insured, 2.203% 2018 | 8,000 | 8,000 |
Various Purpose G.O. Bonds, 7.50% 2034 | 2,200 | 3,265 |
15,131 | ||
Puerto Rico 0.07% | ||
Sales Tax Fncg. Corp., Sales Tax Rev. Bonds, Series 2007-A, National insured, 0% 2041 | 36,750 | 7,728 |
South Carolina 0.05% | ||
Public Service Auth., Rev. Obligations (Santee Cooper), Series 2014-A, 5.50% 2054 | 875 | 999 |
Public Service Auth., Rev. Obligations (Santee Cooper), Series 2015-A, 5.00% 2050 | 800 | 899 |
Public Service Auth., Rev. Obligations (Santee Cooper), Series 2015-E, 5.25% 2055 | 2,765 | 3,175 |
5,073 | ||
New Jersey 0.03% | ||
Econ. Dev. Auth., School Facs. Construction Rev. Ref. Bonds, Series 2015-YY, 4.447% 2020 | 2,500 | 2,563 |
240,326 | ||
Federal agency bonds & notes 0.11% | ||
Fannie Mae 2.125% 2026 | 12,410 | 12,036 |
Total bonds, notes & other debt instruments (cost: $10,316,353,000) | 10,367,286 | |
Common stocks 0.01% Information technology 0.01% | Shares | |
Corporate Risk Holdings I, Inc.6,7,11,12 | 70,193 | 1,241 |
Corporate Risk Holdings Corp.6,7,11,12 | 355 | — |
1,241 | ||
Consumer discretionary 0.00% | ||
Adelphia Recovery Trust, Series ACC-16,7,11 | 2,409,545 | 1 |
Total common stocks (cost: $956,000) | 1,242 | |
Rights & warrants 0.00% Utilities 0.00% | ||
Vistra Energy Corp., rights1,10,11 | 62,508 | 55 |
Total rights & warrants (cost: $96,000) | 55 |
American Funds Insurance Series — Bond Fund — Page 114 of 171
Short-term securities 22.13% | Principal amount (000) | Value (000) |
3M Co. 1.47% due 1/18/20181 | $50,000 | $49,960 |
Apple Inc. 1.21%–1.50% due 1/4/2018–2/20/20181 | 131,000 | 130,833 |
Bank of New York Mellon Corp. 1.33% due 2/27/2018 | 50,000 | 49,871 |
Bank of Tokyo-Mitsubishi UFJ, Ltd. 1.36%–1.49% due 1/5/2018–1/10/2018 | 61,100 | 61,071 |
CAFCO, LLC 1.52% due 2/23/20181 | 27,000 | 26,932 |
Chariot Funding, LLC 1.85% due 6/19/20181 | 50,000 | 49,556 |
Cisco Systems, Inc. 1.43%–1.52% due 2/15/2018–2/20/20181 | 100,000 | 99,794 |
Coca-Cola Co. 1.24%–1.27% due 1/12/2018–1/30/20181 | 101,400 | 101,292 |
Emerson Electric Co. 1.37% due 1/10/20181 | 13,800 | 13,793 |
Federal Home Loan Bank 1.07%–1.32% due 1/8/2018–3/16/2018 | 620,350 | 619,459 |
Freddie Mac 1.16%–1.28% due 4/3/2018–4/6/2018 | 141,900 | 141,388 |
Hershey Co. 1.40% due 1/12/20181 | 30,000 | 29,983 |
IBM Credit LLC 1.50% due 3/13/20181 | 80,000 | 79,752 |
Microsoft Corp. 1.26% due 1/16/20181 | 67,500 | 67,452 |
National Rural Utilities Cooperative Finance Corp. 1.51% due 1/17/2018 | 25,000 | 24,980 |
PepsiCo Inc. 1.43% due 1/24/20181 | 50,000 | 49,947 |
Pfizer Inc. 1.30%–1.50% due 2/20/2018–3/12/20181 | 100,000 | 99,741 |
Procter & Gamble Co. 1.21%–1.30% due 1/12/2018–2/22/20181 | 125,000 | 124,848 |
Qualcomm Inc. 1.27% due 1/18/20181 | 50,000 | 49,958 |
Simon Property Group, L.P. 1.33% due 1/22/20181 | 25,000 | 24,975 |
U.S. Bank, N.A. 1.41% due 4/24/2018 | 35,000 | 34,979 |
U.S. Treasury Bills 1.09%–1.44% due 1/2/2018–6/14/2018 | 237,300 | 236,407 |
United Parcel Service Inc. 1.50% due 1/25/20181 | 50,000 | 49,945 |
Wal-Mart Stores, Inc. 1.22% due 1/3/20181 | 50,000 | 49,990 |
Walt Disney Co. 1.29%–1.42% due 1/25/2018–1/26/20181 | 100,000 | 99,888 |
Total short-term securities (cost: $2,367,157,000) | 2,366,794 | |
Total investment securities 119.05% (cost: $12,684,562,000) | 12,735,377 | |
Other assets less liabilities (19.05)% | (2,037,683) | |
Net assets 100.00% | $10,697,694 |
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount13 (000) | Value at 12/31/201714 (000) | Unrealized (depreciation) appreciation at 12/31/2017 (000) |
10 Year Euro-Bund Futures | Short | 128 | March 2018 | $(12,800) | $(24,831) | $(16) |
10 Year U.S. Treasury Note Futures | Long | 3,256 | March 2018 | 325,600 | 403,897 | (2,045) |
30 Year Ultra U.S. Treasury Bond Futures | Short | 51 | March 2018 | (5,100) | (8,551) | (59) |
10 Year Ultra U.S. Treasury Note Futures | Short | 53 | March 2018 | (5,300) | (7,079) | 25 |
5 Year U.S. Treasury Note Futures | Long | 6,048 | April 2018 | 604,800 | 702,560 | (1,350) |
2 Year U.S. Treasury Note Futures | Long | 2,099 | April 2018 | 419,800 | 449,416 | (711) |
$(4,156) |
American Funds Insurance Series — Bond Fund — Page 115 of 171
Forward currency contracts
Contract amount | Counterparty | Settlement date | Unrealized appreciation (depreciation) at 12/31/2017 (000) | |
Purchases (000) | Sales (000) | |||
USD64,742 | MXN1,220,000 | Bank of America, N.A. | 1/9/2018 | $2,829 |
USD13,016 | JPY1,445,000 | Bank of America, N.A. | 1/10/2018 | 183 |
USD455 | EUR385 | Citibank | 1/10/2018 | (7) |
USD30,924 | JPY3,430,000 | UBS AG | 1/11/2018 | 462 |
USD43,780 | JPY4,925,000 | JPMorgan Chase | 1/11/2018 | 41 |
USD128,051 | MXN2,400,000 | JPMorgan Chase | 1/12/2018 | 6,331 |
USD13,141 | MXN252,000 | Citibank | 1/17/2018 | 374 |
USD19,850 | EUR16,750 | Citibank | 1/17/2018 | (272) |
USD64,745 | JPY7,300,000 | HSBC Bank | 1/22/2018 | (121) |
USD4,767 | EUR4,000 | JPMorgan Chase | 1/23/2018 | (40) |
USD26,460 | EUR22,350 | JPMorgan Chase | 1/23/2018 | (399) |
USD57,793 | EUR48,800 | Citibank | 1/23/2018 | (852) |
USD57,533 | AUD75,000 | JPMorgan Chase | 1/23/2018 | (987) |
$7,542 |
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2017 (000) | Upfront payments/ receipts (000) | Unrealized (depreciation) appreciation at 12/31/2017 (000) |
1.39% | 3-month Canada BA | 7/13/2018 | C$1,460,000 | $(1,637) | $— | $(1,637) |
1.77% | 3-month Canada BA | 9/26/2018 | 975,000 | 186 | — | 186 |
1.669% | 3-month USD-LIBOR | 10/28/2019 | $112,000 | (729) | — | (729) |
1.6915% | 3-month USD-LIBOR | 6/3/2020 | 1,600 | (15) | — | (15) |
1.7345% | 3-month USD-LIBOR | 12/31/2020 | 120,000 | (1,496) | — | (1,496) |
3-month USD-LIBOR | 1.975% | 4/27/2022 | 15,000 | 148 | — | 148 |
3-month USD-LIBOR | 2.1305% | 7/17/2022 | 100,000 | 400 | — | 400 |
1.9375% | 3-month USD-LIBOR | 12/18/2022 | 150,000 | (2,128) | — | (2,128) |
3-month USD-LIBOR | 2.701% | 6/9/2024 | 60,000 | (1,498) | — | (1,498) |
3-month USD-LIBOR | 2.6815% | 9/24/2024 | 1,600 | (38) | — | (38) |
3-month USD-LIBOR | 2.54% | 10/3/2024 | 400 | (6) | — | (6) |
6-month EURIBOR | 0.9852% | 10/17/2024 | €25,000 | (914) | — | (914) |
3-month USD-LIBOR | 2.342% | 10/21/2024 | $290 | (1) | — | (1) |
3-month USD-LIBOR | 2.326% | 10/22/2024 | 800 | (1) | — | (1) |
3-month USD-LIBOR | 2.372% | 10/24/2024 | 1,150 | (5) | — | (5) |
3-month USD-LIBOR | 2.438% | 11/19/2024 | 2,750 | (24) | — | (24) |
3-month USD-LIBOR | 2.4585% | 11/24/2024 | 23,000 | (233) | — | (233) |
3-month USD-LIBOR | 2.4295% | 11/25/2024 | 800 | (7) | — | (7) |
3-month USD-LIBOR | 2.353% | 12/8/2024 | 700 | (2) | — | (2) |
3-month USD-LIBOR | 2.2845% | 12/12/2024 | 330 | —15 | — | —15 |
3-month USD-LIBOR | 1.8185% | 1/20/2025 | 900 | 29 | — | 29 |
3-month USD-LIBOR | 1.9365% | 1/22/2025 | 1,500 | 37 | — | 37 |
3-month USD-LIBOR | 2.192% | 3/18/2025 | 1,850 | 15 | — | 15 |
3-month USD-LIBOR | 2.0475% | 3/23/2025 | 450 | 8 | — | 8 |
3-month USD-LIBOR | 2.3175% | 5/8/2025 | 1,500 | —15 | — | —15 |
3-month USD-LIBOR | 2.339% | 5/13/2025 | 375 | (1) | — | (1) |
3-month USD-LIBOR | 2.351% | 5/15/2025 | 590 | (2) | — | (2) |
American Funds Insurance Series — Bond Fund — Page 116 of 171
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2017 (000) | Upfront payments/ receipts (000) | Unrealized (depreciation) appreciation at 12/31/2017 (000) |
3-month USD-LIBOR | 2.287% | 5/20/2025 | $500 | $1 | $— | $1 |
3-month USD-LIBOR | 2.227% | 5/28/2025 | 260 | 2 | — | 2 |
3-month USD-LIBOR | 2.2125% | 5/29/2025 | 465 | 3 | — | 3 |
3-month USD-LIBOR | 2.451% | 6/5/2025 | 650 | (6) | — | (6) |
3-month USD-LIBOR | 2.46% | 6/10/2025 | 2,536 | (25) | — | (25) |
3-month USD-LIBOR | 2.455% | 6/24/2025 | 235 | (2) | — | (2) |
3-month USD-LIBOR | 2.428% | 7/2/2025 | 2,000 | (15) | — | (15) |
3-month USD-LIBOR | 2.397% | 7/13/2025 | 900 | (5) | — | (5) |
3-month USD-LIBOR | 2.535% | 7/15/2025 | 800 | (12) | — | (12) |
3-month USD-LIBOR | 2.4615% | 7/22/2025 | 1,300 | (13) | — | (13) |
3-month USD-LIBOR | 2.312% | 7/29/2025 | 1,000 | 1 | — | 1 |
3-month USD-LIBOR | 2.331% | 7/30/2025 | 435 | —15 | — | —15 |
3-month USD-LIBOR | 2.228% | 9/4/2025 | 12,000 | 82 | — | 82 |
3-month USD-LIBOR | 2.2135% | 9/4/2025 | 5,000 | 39 | — | 39 |
6-month JPY-LIBOR | 0.282% | 2/2/2026 | ¥5,500,000 | (175) | — | (175) |
3-month USD-LIBOR | 1.6705% | 3/4/2026 | $248,000 | 12,454 | — | 12,454 |
6-month JPY-LIBOR | 0.0875% | 3/10/2026 | ¥11,100,000 | 1,242 | — | 1,242 |
3-month USD-LIBOR | 1.5925% | 5/9/2026 | $1,000 | 58 | — | 58 |
3-month USD-LIBOR | 1.595% | 5/12/2026 | 8,500 | 489 | — | 489 |
3-month USD-LIBOR | 1.592% | 5/12/2026 | 4,000 | 231 | — | 231 |
3.0865% | 3-month USD-LIBOR | 8/18/2034 | 2,250 | 184 | — | 184 |
2.913% | 3-month USD-LIBOR | 11/24/2034 | 10,000 | 579 | — | 579 |
2.844% | 3-month USD-LIBOR | 6/11/2035 | 3,250 | 158 | — | 158 |
2.9535% | 3-month USD-LIBOR | 6/30/2035 | 2,500 | 161 | — | 161 |
2.773% | 3-month USD-LIBOR | 7/13/2035 | 500 | 19 | — | 19 |
2.589% | 3-month USD-LIBOR | 9/4/2035 | 3,100 | 35 | — | 35 |
3-month USD-LIBOR | 3.0515% | 11/14/2044 | 1,000 | (105) | — | (105) |
3-month USD-LIBOR | 2.925% | 12/3/2044 | 1,230 | (97) | — | (97) |
3-month USD-LIBOR | 2.6695% | 12/19/2044 | 200 | (5) | — | (5) |
3-month USD-LIBOR | 2.5755% | 3/5/2045 | 1,470 | (12) | — | (12) |
2.377% | 3-month USD-LIBOR | 4/29/2045 | 1,910 | (63) | — | (63) |
3-month USD-LIBOR | 2.757% | 5/8/2045 | 1,500 | (68) | — | (68) |
6-month JPY-LIBOR | 0.58295% | 3/23/2046 | ¥2,000,000 | 1,673 | — | 1,673 |
0.64355% | 6-month JPY-LIBOR | 4/27/2046 | 2,000,000 | (1,396) | — | (1,396) |
3-month USD-LIBOR | 2.1155% | 5/13/2046 | $2,400 | 214 | — | 214 |
$— | $7,712 |
American Funds Insurance Series — Bond Fund — Page 117 of 171
Credit default swaps
Centrally cleared credit default swaps on credit indices — buy protection
Receive | Pay/ Payment frequency | Expiration date | Notional (000) | Value at 12/31/2017 (000) | Upfront payments (000) | Unrealized depreciation at 12/31/2017 (000) |
CDX.NA.IG.29 | 1.00%/Quarterly | 12/20/2022 | $65,000 | $(1,550) | $(1,366) | $(184) |
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 was $2,046,793,000, which represented 19.13% of the net assets of the fund. |
2 | Coupon rate may change periodically. |
3 | Scheduled interest and/or principal payment was not received. |
4 | Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $21,361,000, which represented .20% of the net assets of the fund. |
5 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
6 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $4,276,000, which represented .04% of the net assets of the fund. |
7 | Value determined using significant unobservable inputs. |
8 | Payment in kind; the issuer has the option of paying additional securities in lieu of cash. Most recent payment was 100% cash unless otherwise noted. |
9 | Index-linked bond whose principal amount moves with a government price index. |
10 | Purchased on a TBA basis. |
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. |
13 | Notional amount is calculated based on the number of contracts and notional contract size. |
14 | Value is calculated based on the notional amount and current market price. |
15 | Amount less than one thousand. |
Private placement securities | Acquisition date | Cost (000) | Value (000) | Percent of net assets |
Corporate Risk Holdings I, Inc. | 8/31/2015 | $780 | $1,241 | .01% |
Corporate Risk Holdings Corp. | 8/31/2015 | — | — | .00 |
Total private placement securities | $780 | $1,241 | .01% |
Key to abbreviations and symbols | |
AUD = Australian dollars | G.O. = General Obligation |
Auth. = Authority | JPY/¥ = Japanese yen |
BA = Banker’s acceptances | LIBOR = London Interbank Offered Rate |
C$ = Canadian dollars | LOC = Letter of Credit |
CLO = Collateralized Loan Obligations | MXN = Mexican pesos |
Dev. = Development | MYR = Malaysian ringgits |
Econ. = Economic | Redev. = Redevelopment |
EUR/€ = Euros | Ref. = Refunding |
Facs. = Facilities | Rev. = Revenue |
Fin. = Finance | TBA = To-be-announced |
Fncg. = Financing | USD/$ = U.S. dollars |
American Funds Insurance Series — Bond Fund — Page 118 of 171
Global Bond Fund
Investment portfolio
December 31, 2017
Bonds, notes & other debt instruments 89.68% Euros 14.40% | Principal amount (000) | Value (000) |
Allianz SE, 4.75% 2049 | €3,000 | $4,286 |
Argentine Republic 2.26% 20381 | 2,500 | 2,197 |
Assicurazioni Generali SPA 7.75% 2042 | 1,500 | 2,325 |
Aviva PLC 6.125% 2043 | 3,000 | 4,482 |
Banco Bilbao Vizcaya Argentaria SA 3.50% 2024 | 3,100 | 3,874 |
Barclays Bank PLC 6.00% 2021 | 1,000 | 1,387 |
Barclays Bank PLC 6.625% 2022 | 1,070 | 1,577 |
Belgium (Kingdom of), Series 77, 1.00% 2026 | 7,800 | 9,779 |
BNP Paribas 2.875% 2026 | 1,975 | 2,534 |
BPCE SA group 4.625% 2023 | 1,200 | 1,721 |
CaixaBank, SA 5.00% 2023 | 2,300 | 2,869 |
Canada 3.50% 2020 | 2,500 | 3,242 |
Croatia (Republic of) 3.00% 2025 | 3,500 | 4,537 |
Croatia (Republic of) 3.00% 2027 | 3,850 | 4,966 |
Deutsche Telekom International Finance BV 7.50% 2033 | 200 | 418 |
French Republic O.A.T. 0.50% 2026 | 1,950 | 2,351 |
French Republic O.A.T. 1.85% 20272 | 8,228 | 12,539 |
French Republic O.A.T. 3.25% 2045 | 1,200 | 1,943 |
French Republic O.A.T. 2.00% 2048 | 1,100 | 1,395 |
Germany (Federal Republic of) 0.10% 20232 | 1,425 | 1,844 |
Germany (Federal Republic of) 0.10% 20262 | 31,541 | 41,791 |
Germany (Federal Republic of) 0.50% 2026 | 8,400 | 10,313 |
Germany (Federal Republic of) 6.25% 2030 | 1,800 | 3,580 |
Germany (Federal Republic of) 4.75% 2040 | 200 | 419 |
Germany (Federal Republic of) 2.50% 2046 | 10,770 | 16,972 |
Germany (Federal Republic of) 1.25% 2048 | 4,100 | 4,909 |
Greece (Hellenic Republic of) 3.50% 2023 | 506 | 604 |
Greece (Hellenic Republic of) 3.75% 2028 | 684 | 798 |
Greece (Hellenic Republic of) 3.90% 2033 | 715 | 805 |
Greece (Hellenic Republic of) 4.00% 2037 | 570 | 635 |
Greece (Hellenic Republic of) 4.20% 2042 | 559 | 622 |
HSBC Holdings PLC 3.375% 2024 | 1,700 | 2,107 |
Hungary 6.00% 2019 | 1,200 | 1,533 |
Hungary 3.875% 2020 | 1,000 | 1,304 |
Intesa Sanpaolo SpA 6.625% 2023 | 3,610 | 5,445 |
Ireland (Republic of) 3.40% 2024 | 6,110 | 8,757 |
Ireland (Republic of) 2.40% 2030 | 5,365 | 7,421 |
Ireland (Republic of) 2.00% 2045 | 2,000 | 2,523 |
Italy (Republic of) 0.90% 2022 | 10,900 | 13,181 |
Italy (Republic of) 1.45% 2022 | 10,575 | 13,100 |
Italy (Republic of) 0.95% 2023 | 36,575 | 43,972 |
Italy (Republic of) 4.75% 2023 | 2,900 | 4,192 |
Italy (Republic of) 4.50% 2024 | 2,500 | 3,580 |
Italy (Republic of) 1.50% 2025 | 4,350 | 5,203 |
Lloyds Banking Group PLC 6.50% 2020 | 2,290 | 3,134 |
Merrill Lynch & Co., Inc. 4.625% 20183 | 900 | 1,116 |
American Funds Insurance Series — Global Bond Fund — Page 119 of 171
Bonds, notes & other debt instruments Euros (continued) | Principal amount (000) | Value (000) |
NN Group NV, 4.625% 2044 | €1,320 | $1,839 |
NN Group NV, 4.50% 2049 | 2,720 | 3,688 |
Portuguese Republic 2.875% 2025 | 12,500 | 16,556 |
Portuguese Republic 2.875% 2026 | 4,200 | 5,502 |
Portuguese Republic 4.125% 2027 | 25,015 | 35,655 |
Spain (Kingdom of) 3.80% 2024 | 6,150 | 8,785 |
Spain (Kingdom of) 1.30% 2026 | 10,400 | 12,465 |
Svenska Handelsbanken AB 2.656% 2024 | 2,170 | 2,671 |
355,443 | ||
Japanese yen 8.11% | ||
Japan, Series 326, 0.70% 2022 | ¥580,000 | 5,353 |
Japan, Series 18, 0.10% 20242 | 4,731,720 | 44,073 |
Japan, Series 19, 0.10% 20242 | 2,685,700 | 25,099 |
Japan, Series 337, 0.30% 2024 | 580,000 | 5,276 |
Japan, Series 336, 0.50% 2024 | 800,000 | 7,377 |
Japan, Series 20, 0.10% 20252 | 674,020 | 6,314 |
Japan, Series 340, 0.40% 2025 | 435,000 | 3,989 |
Japan, Series 344, 0.10% 2026 | 1,355,000 | 12,125 |
Japan, Series 21, 0.10% 20262 | 979,865 | 9,214 |
Japan, Series 346, 0.10% 2027 | 2,335,000 | 20,877 |
Japan, Series 116, 2.20% 2030 | 1,735,000 | 19,191 |
Japan, Series 145, 1.70% 2033 | 2,465,000 | 26,412 |
Japan, Series 21, 2.30% 2035 | 720,000 | 8,404 |
Japan, Series 42, 1.70% 2044 | 585,000 | 6,394 |
200,098 | ||
Polish zloty 3.94% | ||
Poland (Republic of), Series 0420, 1.50% 2020 | PLN60,575 | 17,268 |
Poland (Republic of), Series 1020, 5.25% 2020 | 21,800 | 6,821 |
Poland (Republic of), Series 1021, 5.75% 2021 | 128,830 | 41,721 |
Poland (Republic of), Series 0922, 5.75% 2022 | 46,600 | 15,295 |
Poland (Republic of), Series 1023, 4.00% 2023 | 31,140 | 9,541 |
Poland (Republic of), Series 0725, 3.25% 2025 | 22,500 | 6,523 |
97,169 | ||
Mexican pesos 3.91% | ||
United Mexican States 4.00% 20192 | MXN41,576 | 2,132 |
United Mexican States 4.00% 20402 | 41,575 | 2,223 |
United Mexican States, Series M, 8.00% 2020 | 92,500 | 4,746 |
United Mexican States, Series M, 6.50% 2021 | 660,800 | 32,493 |
United Mexican States, Series M, 6.50% 2022 | 119,100 | 5,804 |
United Mexican States, Series M20, 10.00% 2024 | 209,500 | 12,021 |
United Mexican States, Series M, 5.75% 2026 | 717,000 | 32,270 |
United Mexican States, Series M30, 10.00% 2036 | 35,000 | 2,174 |
United Mexican States, Series M30, 8.50% 2038 | 27,000 | 1,473 |
United Mexican States, Series M, 7.75% 2042 | 23,000 | 1,164 |
96,500 | ||
Indian rupees 2.54% | ||
India (Republic of) 7.80% 2021 | INR1,117,600 | 17,937 |
India (Republic of) 7.68% 2023 | 224,400 | 3,587 |
India (Republic of) 8.83% 2023 | 1,284,200 | 21,441 |
India (Republic of) 6.97% 2026 | 431,000 | 6,624 |
India (Republic of) 7.59% 2029 | 375,800 | 5,879 |
American Funds Insurance Series — Global Bond Fund — Page 120 of 171
Bonds, notes & other debt instruments Indian rupees (continued) | Principal amount (000) | Value (000) |
India (Republic of) 7.61% 2030 | INR167,270 | $2,614 |
India (Republic of) 7.88% 2030 | 25,000 | 401 |
National Highways Authority of India 7.17% 2021 | 220,000 | 3,407 |
National Highways Authority of India 7.27% 2022 | 50,000 | 774 |
62,664 | ||
Malaysian ringgits 2.25% | ||
Malaysia (Federation of), Series 0511, 3.58% 2018 | MYR6,155 | 1,530 |
Malaysia (Federation of), Series 0515, 3.759% 2019 | 14,650 | 3,650 |
Malaysia (Federation of), Series 0315, 3.659% 2020 | 35,935 | 8,961 |
Malaysia (Federation of), Series 0314, 4.048% 2021 | 7,600 | 1,910 |
Malaysia (Federation of), Series 0215, 3.795% 2022 | 6,000 | 1,486 |
Malaysia (Federation of), Series 0117, 3.882% 2022 | 17,437 | 4,367 |
Malaysia (Federation of), Series 0116, 3.80% 2023 | 47,413 | 11,729 |
Malaysia (Federation of), Series 0115, 3.955% 2025 | 28,150 | 6,914 |
Malaysia (Federation of), Series 0316, 3.90% 2026 | 19,000 | 4,638 |
Malaysia (Federation of), Series 0310, 4.498% 2030 | 42,250 | 10,461 |
55,646 | ||
Norwegian kroner 1.62% | ||
Norway (Kingdom of) 3.75% 2021 | NKr299,750 | 39,988 |
Australian dollars 1.39% | ||
Australia (Commonwealth of), Series 124, 5.75% 2021 | A$22,900 | 19,929 |
Australia (Commonwealth of), Series 128, 5.75% 2022 | 16,150 | 14,465 |
34,394 | ||
British pounds 1.33% | ||
Aviva PLC, subordinated 6.875% 2058 | £470 | 881 |
AXA SA, junior subordinated 5.453% 2049 | 300 | 464 |
Electricité de France SA 6.00% 2114 | 100 | 197 |
France Télécom 5.375% 2050 | 300 | 589 |
Lloyds Banking Group PLC 7.625 % 2025 | 655 | 1,188 |
United Kingdom 1.75% 2022 | 950 | 1,344 |
United Kingdom 2.25% 2023 | 1,550 | 2,257 |
United Kingdom 4.25% 2027 | 4,800 | 8,334 |
United Kingdom 3.25% 2044 | 6,500 | 11,432 |
United Kingdom 3.50% 2045 | 3,290 | 6,069 |
32,755 | ||
Thai baht 1.16% | ||
Thailand (Kingdom of) 1.49% 2019 | THB491,100 | 15,073 |
Thailand (Kingdom of) 1.875% 2022 | 258,200 | 7,962 |
Thailand (Kingdom of) 3.85% 2025 | 65,000 | 2,230 |
Thailand (Kingdom of) 2.125% 2026 | 110,000 | 3,324 |
28,589 | ||
Danish kroner 1.05% | ||
Nykredit Realkredit AS, Series 01E, 2.00% 20371 | DKr69,099 | 11,607 |
Nykredit Realkredit AS, Series 01E, 2.50% 20471 | 16,364 | 2,748 |
Realkredit Danmark AS, Series 22S, 2.00% 20371 | 68,140 | 11,451 |
25,806 |
American Funds Insurance Series — Global Bond Fund — Page 121 of 171
Bonds, notes & other debt instruments Chilean pesos 0.89% | Principal amount (000) | Value (000) |
Chile (Banco Central de) 4.50% 2021 | CLP13,200,000 | $21,977 |
Israeli shekels 0.85% | ||
Israel (State of) 2.00% 2027 | ILS28,300 | 8,381 |
Israel (State of) 5.50% 2042 | 29,300 | 12,512 |
20,893 | ||
Canadian dollars 0.77% | ||
Canada 1.00% 2022 | C$4,050 | 3,097 |
Canada 2.25% 2025 | 19,600 | 15,870 |
18,967 | ||
Brazilian reais 0.48% | ||
Brazil (Federative Republic of) 0% 2020 | BRL15,000 | 3,877 |
Brazil (Federative Republic of) 0% 2020 | 8,000 | 1,965 |
Brazil (Federative Republic of) 0% 2021 | 27,600 | 6,092 |
11,934 | ||
South African rand 0.41% | ||
South Africa (Republic of), Series R-186, 10.50% 2026 | ZAR19,900 | 1,798 |
South Africa (Republic of), Series R-214, 6.50% 2041 | 145,850 | 8,331 |
10,129 | ||
Turkish lira 0.39% | ||
Turkey (Republic of) 10.50% 2020 | TRY11,450 | 2,897 |
Turkey (Republic of) 11.00% 2022 | 26,500 | 6,746 |
9,643 | ||
South Korean won 0.34% | ||
South Korea (Republic of), Series 2209, 2.00% 2022 | KRW9,155,400 | 8,428 |
Colombian pesos 0.28% | ||
Colombia (Republic of), Series B, 7.50% 2026 | COP18,930,000 | 6,788 |
Uruguayan pesos 0.26% | ||
Uruguay (Oriental Republic of) 9.875% 2022 | UYU53,553 | 1,982 |
Uruguay (Oriental Republic of) 8.50% 2028 | 128,291 | 4,464 |
6,446 | ||
Argentine pesos 0.24% | ||
Argentine Republic 2.50% 20212 | ARS68,941 | 3,530 |
Argentine Republic (Badlar Private Banks ARS Index + 2.00%) 22.548% 20224 | 44,100 | 2,362 |
5,892 | ||
U.S. dollars 43.07% | ||
Abbott Laboratories 2.35% 2019 | $550 | 550 |
Abbott Laboratories 2.90% 2021 | 420 | 425 |
Abbott Laboratories 3.40% 2023 | 195 | 199 |
Abbott Laboratories 3.75% 2026 | 1,400 | 1,440 |
AbbVie Inc. 1.80% 2018 | 600 | 600 |
AbbVie Inc. 2.50% 2020 | 3,155 | 3,166 |
AbbVie Inc. 2.90% 2022 | 1,170 | 1,174 |
American Funds Insurance Series — Global Bond Fund — Page 122 of 171
Bonds, notes & other debt instruments U.S. dollars (continued) | Principal amount (000) | Value (000) |
AbbVie Inc. 3.20% 2022 | $200 | $203 |
AbbVie Inc. 3.60% 2025 | 1,055 | 1,086 |
AbbVie Inc. 3.20% 2026 | 3,157 | 3,153 |
AbbVie Inc. 4.50% 2035 | 410 | 451 |
ACE INA Holdings Inc. 2.30% 2020 | 180 | 180 |
ACE INA Holdings Inc. 2.875% 2022 | 365 | 370 |
ACE INA Holdings Inc. 3.35% 2026 | 365 | 373 |
ACE INA Holdings Inc. 4.35% 2045 | 665 | 752 |
AES Corp. 5.50% 2025 | 650 | 686 |
AES Corp. 6.00% 2026 | 425 | 461 |
Aetna Inc. 1.70% 2018 | 320 | 320 |
Aetna Inc. 2.80% 2023 | 340 | 335 |
Aleris International, Inc. 7.875% 2020 | 201 | 200 |
Alexandria Real Estate Equities, Inc. 2.75% 2020 | 180 | 181 |
Allergan PLC 2.35% 2018 | 1,750 | 1,751 |
Allergan PLC 3.00% 2020 | 2,820 | 2,847 |
Allergan PLC 3.45% 2022 | 850 | 864 |
Allergan PLC 3.80% 2025 | 4,455 | 4,541 |
Allergan PLC 4.55% 2035 | 1,780 | 1,888 |
Allergan PLC 4.75% 2045 | 514 | 549 |
Allison Transmission Holdings, Inc. 5.00% 20243 | 400 | 414 |
Almonde Inc., Term Loan, (3-month USD-LIBOR + 7.25%) 8.729% 20251,4,5 | 1,000 | 1,006 |
Altria Group, Inc. 2.625% 2020 | 1,800 | 1,812 |
Altria Group, Inc. 4.50% 2043 | 350 | 381 |
Amazon.com, Inc. 2.80% 20243 | 2,920 | 2,915 |
Amazon.com, Inc. 3.15% 20273 | 1,960 | 1,966 |
American Axle & Manufacturing Holdings, Inc. 6.50% 20273 | 450 | 478 |
American Campus Communities, Inc. 3.75% 2023 | 2,485 | 2,551 |
American Campus Communities, Inc. 4.125% 2024 | 1,195 | 1,246 |
American Electric Power Co., Inc. 2.75% 2026 | 1,050 | 1,013 |
American Energy (Marcellus), Term Loan A, (3-month USD-LIBOR + 7.50%) 8.960% 20211,4,5,6 | 884 | 35 |
American Energy (Marcellus), Term Loan B, (3-month USD-LIBOR + 4.25%) 5.710% 20201,4,5,6 | 1,190 | 881 |
American Energy (Permian Basin) (3-month USD-LIBOR + 6.50%) 7.885% 20193,4 | 200 | 181 |
American Energy (Permian Basin) 7.125% 20203 | 1,295 | 1,055 |
American Energy (Permian Basin) 7.375% 20213 | 340 | 275 |
Amgen Inc. 1.85% 2021 | 420 | 410 |
Amgen Inc. 2.25% 2023 | 2,000 | 1,942 |
Anglo American Capital PLC 4.00% 20273 | 1,470 | 1,462 |
Anheuser-Busch InBev NV 3.75% 2022 | 775 | 811 |
Anheuser-Busch InBev NV 3.30% 2023 | 635 | 650 |
Anheuser-Busch InBev NV 4.95% 2042 | 1,230 | 1,428 |
Anheuser-Busch InBev NV 4.90% 2046 | 440 | 512 |
Apple Inc. 2.50% 2022 | 1,200 | 1,202 |
Apple Inc. 3.35% 2027 | 1,075 | 1,102 |
Applied Systems, Inc., Term Loan, (3-month USD-LIBOR + 7.00%) 8.693% 20251,4,5 | 80 | 83 |
Argentine Republic 6.875% 2021 | 3,575 | 3,900 |
Argentine Republic 7.50% 2026 | 2,200 | 2,494 |
Associated Materials, LLC 9.00% 20243 | 1,175 | 1,272 |
AT&T Inc. 3.90% 2027 | 1,535 | 1,548 |
AT&T Inc. 4.25% 2027 | 4,655 | 4,753 |
AT&T Inc. 4.10% 20283 | 4,731 | 4,755 |
AT&T Inc. 4.30% 20303 | 2,248 | 2,251 |
AT&T Inc. 4.90% 2037 | 1,220 | 1,241 |
Autoridad del Canal de Panama 4.95% 20351,3 | 1,000 | 1,119 |
Avis Budget Group, Inc. 5.50% 2023 | 400 | 412 |
American Funds Insurance Series — Global Bond Fund — Page 123 of 171
Bonds, notes & other debt instruments U.S. dollars (continued) | Principal amount (000) | Value (000) |
Avon Products, Inc. 7.875% 20223 | $225 | $230 |
AXA SA 8.60% 2030 | 220 | 317 |
Ball Corp. 4.375% 2020 | 300 | 312 |
Banco Nacional de Comercio Exterior SNC 3.80% 20263 | 880 | 883 |
Banco Santander, SA 3.70% 20223 | 4,475 | 4,533 |
Bank of America Corp. 2.625% 2020 | 1,550 | 1,564 |
Bank of America Corp. 3.419% 20283 | 1,252 | 1,253 |
Baxalta Inc. 4.00% 2025 | 1,580 | 1,635 |
Bayer AG 3.375% 20243 | 840 | 855 |
Becton, Dickinson and Co. 2.675% 2019 | 353 | 354 |
Becton, Dickinson and Co. 2.894% 2022 | 1,260 | 1,253 |
Becton, Dickinson and Co. 3.70% 2027 | 1,430 | 1,443 |
BJ’s Wholesale Club, Term Loan, (3-month USD-LIBOR + 7.50%) 8.953% 20251,4,5 | 175 | 171 |
Blackstone CQP Holdco LP, 6.00% 20213,7 | 225 | 227 |
Blackstone CQP Holdco LP, 6.50% 20213,7 | 3,450 | 3,519 |
BMC Software, Inc. 8.125% 20213 | 725 | 733 |
Bohai Financial Investment Holding Co., Ltd. 5.50% 20243 | 375 | 373 |
BPCE SA group 5.70% 20233 | 1,800 | 1,997 |
Brandywine Operating Partnership, LP 3.95% 2023 | 190 | 194 |
British American Tobacco International Finance PLC 2.75% 20203 | 530 | 533 |
British American Tobacco International Finance PLC 3.50% 20223 | 385 | 394 |
British American Tobacco PLC 3.557% 20273 | 1,545 | 1,550 |
British American Tobacco PLC 4.39% 20373 | 1,190 | 1,248 |
Cablevision Systems Corp. 6.75% 2021 | 1,125 | 1,209 |
Calpine Corp. 5.375% 2023 | 230 | 225 |
Calpine Corp. 5.25% 20263 | 655 | 644 |
CCO Holdings LLC and CCO Holdings Capital Corp. 5.75% 20263 | 800 | 833 |
CCO Holdings LLC and CCO Holdings Capital Corp. 4.20% 2028 | 675 | 670 |
CCO Holdings LLC and CCO Holdings Capital Corp. 5.00% 20283 | 575 | 562 |
Centene Corp. 4.75% 2022 | 1,590 | 1,658 |
Centene Corp. 4.75% 2025 | 225 | 230 |
CenterPoint Energy Transition Bond Co. III, LLC, Series 2008, Class A2, 5.234% 20231 | 295 | 305 |
CenturyLink, Inc. 6.75% 2023 | 1,000 | 984 |
Cequel Communications Holdings I, LLC and Cequel Capital Corp. 6.375% 20203 | 763 | 776 |
CF Industries, Inc. 4.50% 20263 | 200 | 209 |
CF Industries, Inc. 4.95% 2043 | 630 | 599 |
Chemours Co. 6.625% 2023 | 680 | 723 |
Chesapeake Energy Corp. (3-month USD-LIBOR + 3.25%) 4.609% 20194 | 300 | 300 |
Chesapeake Energy Corp. 4.875% 2022 | 1,400 | 1,334 |
Chesapeake Energy Corp. 8.00% 20253 | 750 | 758 |
Chesapeake Energy Corp. 8.00% 20273 | 500 | 481 |
Chevron Corp. 2.954% 2026 | 1,175 | 1,176 |
Chile (Republic of) 3.86% 2047 | 750 | 772 |
CIT Group Inc. 3.875% 2019 | 1,975 | 2,000 |
Citigroup Commercial Mortgage Trust, Series 2014-CG19, Class A1, 1.199% 20471 | 9 | 9 |
Citigroup Inc. 1.70% 2018 | 375 | 375 |
Citigroup Inc. 2.50% 2018 | 200 | 201 |
Citigroup Inc. 2.55% 2019 | 2,800 | 2,811 |
Citigroup Inc. 2.35% 2021 | 1,500 | 1,485 |
Clear Channel Worldwide Holdings, Inc. 7.625% 2020 | 1,700 | 1,672 |
Cleveland-Cliffs Inc. 4.875% 20243 | 150 | 150 |
Cliffs Natural Resources Inc. 5.75% 20253 | 2,300 | 2,202 |
CMS Energy Corp. 8.75% 2019 | 86 | 94 |
CMS Energy Corp. 5.05% 2022 | 392 | 426 |
CMS Energy Corp. 3.875% 2024 | 100 | 105 |
American Funds Insurance Series — Global Bond Fund — Page 124 of 171
Bonds, notes & other debt instruments U.S. dollars (continued) | Principal amount (000) | Value (000) |
CMS Energy Corp. 4.875% 2044 | $1,121 | $1,314 |
Columbia Pipeline Partners LP 2.45% 2018 | 620 | 620 |
Columbia Pipeline Partners LP 3.30% 2020 | 85 | 86 |
Commercial Mortgage Trust, Series 2014-UBS2, Class A1, 1.298% 20471 | 512 | 511 |
Communications Sales & Leasing, Inc. 6.00% 20233 | 175 | 172 |
Concordia Healthcare Corp., Term Loan B, (3-month USD-LIBOR + 4.25%) 5.819% 20211,4,5 | 286 | 237 |
Concordia Healthcare Corp. 9.50% 20223 | 580 | 55 |
Concordia Healthcare Corp. 7.00% 20233 | 1,090 | 104 |
CONSOL Energy Inc. 5.875% 2022 | 2,400 | 2,463 |
Consumers Energy Co. 3.375% 2023 | 345 | 355 |
Continental Airlines, Inc., Series 1999-1, Class A, 6.545% 20201 | 15 | 15 |
Continental Airlines, Inc., Series 2000-2, Class A1, 7.707% 20221 | 17 | 19 |
Continental Airlines, Inc., Series 2000-1, Class A1, 8.048% 20221 | 57 | 62 |
Convey Park Energy LLC 7.50% 20253 | 275 | 287 |
Core Industrial Trust, Series 2015-CALW, Class A, 3.04% 20341,3 | 1,460 | 1,484 |
Corporate Risk Holdings LLC 9.50% 20193 | 1,353 | 1,416 |
Corporate Risk Holdings LLC 13.50% 2020 (100% PIK)3,8,9,10 | 155 | 166 |
Crédit Agricole SA 4.375% 20253 | 1,100 | 1,151 |
CVS Health Corp. 1.90% 2018 | 430 | 430 |
CVS Health Corp. 2.80% 2020 | 430 | 432 |
CVS Health Corp. 3.50% 2022 | 430 | 438 |
DaimlerChrysler North America Holding Corp. 2.25% 20203 | 2,000 | 1,993 |
DaimlerChrysler North America Holding Corp. 2.00% 20213 | 2,100 | 2,055 |
DaimlerChrysler North America Holding Corp. 2.875% 20213 | 2,275 | 2,294 |
DaVita HealthCare Partners Inc. 5.00% 2025 | 480 | 481 |
DCP Midstream Operating LP 4.95% 2022 | 640 | 668 |
Deutsche Telekom International Finance BV 1.95% 20213 | 575 | 560 |
Deutsche Telekom International Finance BV 2.82% 20223 | 1,675 | 1,678 |
Deutsche Telekom International Finance BV 3.60% 20273 | 2,343 | 2,358 |
Deutsche Telekom International Finance BV 9.25% 2032 | 2,450 | 3,856 |
Devon Energy Corp. 3.25% 2022 | 170 | 173 |
Diamond Offshore Drilling, Inc. 7.875% 2025 | 350 | 369 |
Diamond Offshore Drilling, Inc. 4.875% 2043 | 675 | 496 |
Digicel Group Ltd. 8.25% 20203 | 200 | 197 |
Discover Card Execution Note Trust, Series 2015-A1, Class A1, (1-month USD-LIBOR + 0.35%) 1.827% 20201,4 | 4,185 | 4,187 |
DJO Finance LLC 8.125% 20213 | 100 | 94 |
Dominican Republic 7.50% 20211,3 | 2,000 | 2,187 |
Dominican Republic 5.50% 20253 | 1,375 | 1,459 |
Dominican Republic 8.625% 20271,3 | 225 | 277 |
Duke Energy Corp. 3.75% 2024 | 550 | 575 |
Duke Energy Corp. 2.65% 2026 | 2,695 | 2,586 |
Duke Energy Florida, LLC 3.20% 2027 | 805 | 816 |
EchoStar Corp. 6.625% 2026 | 450 | 473 |
Egypt (Arab Republic of) 7.50% 20273 | 2,200 | 2,436 |
Electricité de France SA 6.95% 20393 | 625 | 855 |
EMD Finance LLC 2.40% 20203 | 1,485 | 1,482 |
EMD Finance LLC 2.95% 20223 | 225 | 226 |
EMD Finance LLC 3.25% 20253 | 1,650 | 1,662 |
Enbridge Energy Partners, LP 9.875% 2019 | 750 | 812 |
Enbridge Energy Partners, LP 4.375% 2020 | 480 | 501 |
Enbridge Energy Partners, LP 5.20% 2020 | 1,535 | 1,616 |
Enbridge Energy Partners, LP, Series B, 6.50% 2018 | 820 | 831 |
Enbridge Inc. 4.00% 2023 | 600 | 625 |
Enbridge Inc. 4.25% 2026 | 655 | 686 |
American Funds Insurance Series — Global Bond Fund — Page 125 of 171
Bonds, notes & other debt instruments U.S. dollars (continued) | Principal amount (000) | Value (000) |
Enbridge Inc. 3.70% 2027 | $754 | $758 |
Endo International PLC 5.75% 20223 | 780 | 653 |
Enel Finance International SA 2.75% 20233 | 5,000 | 4,932 |
Enel Finance International SA 3.625% 20273 | 2,375 | 2,364 |
Enel Finance International SA 3.50% 20283 | 1,800 | 1,764 |
Energy Transfer Partners, LP 5.875% 2024 | 600 | 633 |
Energy Transfer Partners, LP 4.00% 2027 | 1,054 | 1,035 |
Energy Transfer Partners, LP 4.20% 2027 | 260 | 259 |
Energy Transfer Partners, LP 5.50% 2027 | 775 | 792 |
Enersis Américas SA 4.00% 2026 | 1,960 | 2,000 |
Ensco PLC 5.75% 2044 | 930 | 642 |
Essex Portfolio LP 3.50% 2025 | 2,835 | 2,863 |
Essex Portfolio LP 3.375% 2026 | 2,385 | 2,370 |
Euramax International, Inc. 12.00% 20203 | 575 | 624 |
European Investment Bank 2.25% 2022 | 3,567 | 3,551 |
Exelon Corp. 3.497% 2022 | 525 | 535 |
Exelon Corp. 3.40% 2026 | 1,465 | 1,468 |
Exxon Mobil Corp. 2.222% 2021 | 570 | 569 |
Fannie Mae 3.50% 20421 | 808 | 836 |
Fannie Mae 3.50% 20421 | 388 | 401 |
Fannie Mae 3.50% 20421 | 284 | 294 |
Fannie Mae 3.50% 20481,11 | 6,250 | 6,411 |
Fannie Mae 4.00% 20481,11 | 24,800 | 25,915 |
Fannie Mae 4.50% 20481,11 | 2,600 | 2,763 |
Fannie Mae, Series 2012-M17, Class A2, Multi Family 2.184% 20221 | 2,000 | 1,977 |
First Data Corp. 5.375% 20233 | 375 | 391 |
First Data Corp. 5.00% 20243 | 225 | 232 |
First Quantum Minerals Ltd. 7.00% 20213 | 2,031 | 2,112 |
First Quantum Minerals Ltd. 7.50% 20253 | 1,375 | 1,497 |
FirstEnergy Corp. 3.90% 2027 | 4,010 | 4,116 |
FirstEnergy Corp. 3.50% 20283 | 645 | 647 |
FirstEnergy Corp. 4.85% 2047 | 380 | 425 |
FMG Resources 9.75% 20223 | 990 | 1,098 |
Ford Motor Credit Co. 2.375% 2019 | 2,550 | 2,551 |
Ford Motor Credit Co. 2.597% 2019 | 2,020 | 2,022 |
Ford Motor Credit Co. 3.20% 2021 | 3,170 | 3,216 |
Ford Motor Credit Co. 3.339% 2022 | 620 | 628 |
France Télécom 9.00% 2031 | 1,824 | 2,742 |
Freddie Mac 3.00% 20331,11 | 4,200 | 4,275 |
Freddie Mac, Series 3213, Class OG, principal only, 0% 20361 | 14 | 13 |
Freddie Mac, Series 3292, Class BO, principal only, 0% 20371 | 49 | 43 |
Freeport-McMoRan Inc. 3.55% 2022 | 1,175 | 1,165 |
Frontier Communications Corp. 11.00% 2025 | 1,925 | 1,425 |
Genesis Energy, LP 6.75% 2022 | 425 | 443 |
Genesis Energy, LP 6.50% 2025 | 275 | 281 |
Georgia Gulf Corp. 4.625% 2021 | 625 | 644 |
Gogo Inc. 12.50% 20223 | 1,900 | 2,149 |
Goldman Sachs Group, Inc. 2.00% 2019 | 850 | 848 |
Goldman Sachs Group, Inc. 2.55% 2019 | 1,530 | 1,533 |
Goldman Sachs Group, Inc. 2.875% 2021 | 3,702 | 3,732 |
Goldman Sachs Group, Inc. 2.905% 2023 | 2,200 | 2,187 |
Goldman Sachs Group, Inc. 3.50% 2025 | 5,970 | 6,069 |
Goldman Sachs Group, Inc. 3.75% 2026 | 580 | 596 |
Goldman Sachs Group, Inc. 4.75% 2045 | 1,805 | 2,071 |
Government National Mortgage Assn. 4.50% 20451 | 978 | 1,033 |
American Funds Insurance Series — Global Bond Fund — Page 126 of 171
Bonds, notes & other debt instruments U.S. dollars (continued) | Principal amount (000) | Value (000) |
Government National Mortgage Assn. 4.00% 20481,11 | $7,241 | $7,550 |
H.I.G. Capital, LLC 6.75% 20243 | 193 | 193 |
Halliburton Co. 3.80% 2025 | 2,220 | 2,310 |
Hanesbrands Inc. 4.625% 20243 | 85 | 87 |
Hanesbrands Inc. 4.875% 20263 | 100 | 103 |
Hardwoods Acquisition Inc 7.50% 20213 | 355 | 328 |
Harris Corp. 1.999% 2018 | 700 | 699 |
Harris Corp. 2.70% 2020 | 155 | 156 |
HCA Inc. 5.25% 2026 | 250 | 266 |
Healthsouth Corp. 5.75% 2025 | 720 | 752 |
Hertz Global Holdings Inc. 7.625% 20223 | 895 | 940 |
Holcim Ltd. 5.15% 20233 | 1,290 | 1,411 |
HSBC Bank PLC 1.50% 20183 | 200 | 200 |
HSBC Holdings PLC 4.00% 2022 | 305 | 319 |
HSBC Holdings PLC 3.90% 2026 | 4,200 | 4,360 |
HSBC Holdings PLC 4.30% 2026 | 1,180 | 1,256 |
Humana Inc. 3.85% 2024 | 1,000 | 1,041 |
Hungary 5.375% 2024 | 2,700 | 3,060 |
Huntsman International LLC 4.875% 2020 | 600 | 626 |
Husky Energy Inc. 7.25% 2019 | 250 | 272 |
Hyundai Capital America 2.55% 20203 | 2,580 | 2,560 |
Hyundai Capital America 3.25% 20223 | 25 | 25 |
Hyundai Capital Services Inc. 2.625% 20203 | 500 | 495 |
Icahn Enterprises Finance Corp. 6.25% 2022 | 550 | 564 |
iHeartCommunications, Inc. 9.00% 2019 | 1,515 | 1,132 |
Imperial Tobacco Finance PLC 3.50% 20233 | 2,000 | 2,040 |
Indonesia (Republic of) 4.875% 2021 | 2,600 | 2,778 |
Indonesia (Republic of) 3.75% 2022 | 2,960 | 3,053 |
Indonesia (Republic of) 4.75% 2026 | 3,500 | 3,811 |
Infor Software 7.125% 20213,10 | 175 | 180 |
Inmarsat PLC 4.875% 20223 | 1,075 | 1,078 |
Inmarsat PLC 6.50% 20243 | 675 | 687 |
Intelsat Jackson Holding Co. 6.625% 20241,5 | 175 | 177 |
Intelsat Jackson Holding Co. 8.00% 20243 | 575 | 607 |
International Paper Co. 7.30% 2039 | 600 | 847 |
Intesa Sanpaolo SpA 5.017% 20243 | 2,510 | 2,573 |
Iraq (Republic of) 6.752% 20233 | 545 | 559 |
Jaguar Holding Co. 6.375% 20233 | 225 | 228 |
Jonah Energy LLC 7.25% 20253 | 200 | 202 |
Jordan (Hashemite Kingdom of) 5.75% 20273 | 1,035 | 1,029 |
JPMorgan Chase & Co. 2.55% 2021 | 6,039 | 6,044 |
JPMorgan Chase & Co. 3.25% 2022 | 1,000 | 1,024 |
Jupiter Resources Inc. 8.50% 20223 | 150 | 94 |
KfW 2.125% 2022 | 3,955 | 3,923 |
Kimco Realty Corp. 6.875% 2019 | 1,250 | 1,344 |
Kimco Realty Corp. 3.40% 2022 | 175 | 179 |
Kimco Realty Corp. 2.70% 2024 | 695 | 674 |
Kinder Morgan Energy Partners, LP 3.50% 2021 | 175 | 178 |
Kinder Morgan Energy Partners, LP 3.45% 2023 | 2,250 | 2,264 |
Kinder Morgan Energy Partners, LP 3.50% 2023 | 1,600 | 1,605 |
Kinder Morgan Energy Partners, LP 4.15% 2024 | 1,700 | 1,765 |
Kinder Morgan Energy Partners, LP 5.50% 2044 | 4,225 | 4,513 |
Kinder Morgan, Inc. 4.30% 2025 | 1,085 | 1,132 |
Kinetic Concepts, Inc. 12.50% 20213 | 325 | 366 |
Korea Housing Finance Corp. 2.50% 20201,3 | 2,250 | 2,224 |
American Funds Insurance Series — Global Bond Fund — Page 127 of 171
Bonds, notes & other debt instruments U.S. dollars (continued) | Principal amount (000) | Value (000) |
Korea Housing Finance Corp. 2.00% 20211,3 | $2,525 | $2,431 |
Kraft Heinz Co. 4.375% 2046 | 825 | 820 |
Kratos Defense & Security Solutions, Inc. 6.50% 20253 | 85 | 89 |
Kronos Inc., Term Loan B, (3-month USD-LIBOR + 8.25%) 9.627% 20241,4,5 | 425 | 442 |
Kuwait (State of) 2.75% 20223 | 3,550 | 3,542 |
Latvia (Republic of) 2.75% 2020 | 900 | 909 |
Liberty Global PLC 5.50% 20283 | 375 | 366 |
Ligado Networks, Term Loan, (3-month USD-LIBOR + 8.75%) 10.07% 2020 (100% PIK)1,4,5,10 | 2,158 | 2,006 |
Lima Metro Line Finance Ltd. 5.875% 20341,3 | 2,000 | 2,168 |
Limited Brands, Inc. 6.875% 2035 | 225 | 228 |
Lithuania (Republic of) 7.375% 2020 | 2,475 | 2,737 |
Lithuania (Republic of) 6.125% 20213 | 450 | 501 |
Lithuania (Republic of) 6.625% 20223 | 200 | 232 |
Lockheed Martin Corp. 2.50% 2020 | 205 | 206 |
Lockheed Martin Corp. 3.10% 2023 | 170 | 173 |
Lockheed Martin Corp. 3.55% 2026 | 270 | 281 |
LSC Communications, Inc. 8.75% 20233 | 300 | 309 |
Mallinckrodt PLC 4.875% 20203 | 785 | 758 |
McAfee, LLC, Term Loan, (3-month USD-LIBOR + 4.50%) 6.069% 20241,4,5 | 249 | 249 |
McDonald’s Corp. 3.70% 2026 | 650 | 679 |
McDonald’s Corp. 4.875% 2045 | 430 | 500 |
Medtronic, Inc. 3.50% 2025 | 3,500 | 3,633 |
Meritage Homes Corp. 5.125% 2027 | 375 | 383 |
Microsoft Corp. 3.30% 2027 | 2,510 | 2,591 |
MidAmerican Energy Co. 4.40% 2044 | 240 | 274 |
Molina Healthcare, Inc. 5.375% 2022 | 1,225 | 1,283 |
Molina Healthcare, Inc. 4.875% 20253 | 420 | 421 |
Morgan Stanley 2.125% 2018 | 775 | 775 |
Morgan Stanley 3.125% 2026 | 1,421 | 1,403 |
Morgan Stanley 3.875% 2026 | 1,580 | 1,648 |
Morocco (Kingdom of) 5.50% 2042 | 3,100 | 3,525 |
Multiplan, Inc. 8.50% 20223,10 | 335 | 348 |
National Rural Utilities Cooperative Finance Corp. 10.375% 2018 | 550 | 588 |
Navient Corp. 4.875% 2019 | 890 | 907 |
Navient Corp. 6.50% 2022 | 515 | 541 |
Navient Corp. 5.50% 2023 | 770 | 771 |
Navient Corp. 6.125% 2024 | 75 | 76 |
Navios Maritime Acquisition Corp. and Navios Acquisition Finance (US) Inc. 8.125% 20213 | 200 | 171 |
Neiman Marcus Group LTD Inc., Term Loan B, (3-month USD-LIBOR + 3.25%) 4.642% 20201,4,5 | 360 | 295 |
Newell Rubbermaid Inc. 3.85% 2023 | 580 | 601 |
Newell Rubbermaid Inc. 4.20% 2026 | 4,760 | 4,975 |
NGL Energy Partners LP 6.875% 2021 | 950 | 974 |
NGL Energy Partners LP 6.125% 2025 | 710 | 696 |
Niagara Mohawk Power Corp. 3.508% 20243 | 180 | 186 |
Niagara Mohawk Power Corp. 4.278% 20343 | 300 | 330 |
Nigeria (Federal Republic of) 6.50% 20273 | 465 | 486 |
Noble Corp. PLC 7.70% 2025 | 250 | 211 |
Noble Corp. PLC 8.70% 2045 | 650 | 518 |
Nova Chemicals Corp 5.25% 20273 | 200 | 200 |
Novelis Corp. 5.875% 20263 | 325 | 332 |
NRG Energy, Inc. 6.25% 2022 | 805 | 841 |
Odebrecht Drilling Norbe 6.72% 20221,3,8,9 | 289 | 117 |
Odebrecht Drilling Norbe 7.72% 20261,3,8,9,10 | 793 | 321 |
Odebrecht Drilling Norbe 0% (undated)1,3,8,9 | 131 | — |
American Funds Insurance Series — Global Bond Fund — Page 128 of 171
Bonds, notes & other debt instruments U.S. dollars (continued) | Principal amount (000) | Value (000) |
Oracle Corp. 3.25% 2027 | $4,140 | $4,214 |
Pacific Gas and Electric Co. 3.25% 2023 | 580 | 586 |
Pacific Gas and Electric Co. 3.85% 2023 | 300 | 313 |
Pacific Gas and Electric Co. 2.95% 2026 | 590 | 575 |
Pacific Gas and Electric Co. 3.30% 2027 | 2,625 | 2,607 |
Pacific Gas and Electric Co. 3.30% 20273 | 1,125 | 1,116 |
Pacific Gas and Electric Co. 3.75% 2042 | 630 | 608 |
Pacific Gas and Electric Co. 4.25% 2046 | 1,900 | 1,997 |
Pacific Gas and Electric Co. 3.95% 20473 | 1,250 | 1,244 |
PacifiCorp. 3.35% 2025 | 1,015 | 1,038 |
Pakistan (Islamic Republic of) 5.50% 20213 | 3,535 | 3,580 |
Pakistan (Islamic Republic of) 8.25% 2024 | 2,240 | 2,479 |
Peabody Energy Corp. 6.00% 20223 | 150 | 156 |
Peabody Energy Corp. 6.375% 20253 | 100 | 104 |
Pernod Ricard SA 4.45% 20223 | 730 | 776 |
Peru (Republic of) 5.625% 2050 | 280 | 360 |
Petrobras Global Finance Co. 6.125% 2022 | 1,935 | 2,058 |
Petrobras Global Finance Co. 5.299% 20253 | 1,650 | 1,657 |
Petrobras Global Finance Co. 6.85% 2115 | 2,000 | 1,932 |
Petróleos Mexicanos 6.50% 20273 | 2,675 | 2,927 |
Petróleos Mexicanos 5.625% 2046 | 1,000 | 928 |
Petsmart, Inc. 5.875% 20253 | 1,525 | 1,178 |
Petsmart, Inc. 8.875% 20253 | 1,055 | 641 |
PG&E Corp. 2.40% 2019 | 555 | 555 |
Philip Morris International Inc. 2.00% 2020 | 950 | 944 |
Philip Morris International Inc. 2.625% 2022 | 280 | 280 |
Philip Morris International Inc. 4.25% 2044 | 475 | 501 |
Phillips 66 Partners LP 4.68% 2045 | 110 | 113 |
Ply Gem Industries, Inc. 6.50% 2022 | 500 | 521 |
PNC Bank 2.40% 2019 | 1,225 | 1,227 |
PNC Bank 2.30% 2020 | 865 | 864 |
PNC Bank 2.60% 2020 | 275 | 277 |
Poland (Republic of) 3.25% 2026 | 4,100 | 4,195 |
Progress Energy, Inc. 7.05% 2019 | 910 | 961 |
Progress Energy, Inc. 7.75% 2031 | 550 | 771 |
Prologis, Inc. 4.25% 2023 | 2,075 | 2,224 |
Public Service Electric and Gas Co., Series E, 5.30% 2018 | 1,520 | 1,537 |
Puget Energy, Inc. 6.50% 2020 | 335 | 371 |
Puget Energy, Inc. 6.00% 2021 | 1,023 | 1,133 |
Puget Energy, Inc. 5.625% 2022 | 480 | 531 |
QGOG Constellation SA 9.50% 2024 (5.26% PIK)1,3,10 | 2,153 | 1,453 |
Qorvo, Inc. 7.00% 2025 | 275 | 308 |
Quebec (Province of) 2.375% 2022 | 1,748 | 1,738 |
Quintiles Transnational Corp. 4.875% 20233 | 400 | 414 |
R.R. Donnelley & Sons Co. 7.875% 2021 | 300 | 314 |
R.R. Donnelley & Sons Co. 6.50% 2023 | 625 | 606 |
Rabobank Nederland 4.625% 2023 | 2,180 | 2,340 |
Rayonier Advanced Materials Inc. 5.50% 20243 | 350 | 350 |
RCI Banque 3.50% 20183 | 1,500 | 1,505 |
Reynolds American Inc. 2.30% 2018 | 230 | 230 |
Reynolds American Inc. 3.25% 2020 | 640 | 651 |
Reynolds American Inc. 4.00% 2022 | 455 | 476 |
Reynolds American Inc. 4.45% 2025 | 2,115 | 2,258 |
Reynolds American Inc. 5.70% 2035 | 50 | 60 |
Reynolds Group Inc. 5.75% 20201 | 402 | 409 |
American Funds Insurance Series — Global Bond Fund — Page 129 of 171
Bonds, notes & other debt instruments U.S. dollars (continued) | Principal amount (000) | Value (000) |
Roche Holdings, Inc. 2.875% 20213 | $1,250 | $1,269 |
Roche Holdings, Inc. 3.35% 20243 | 3,050 | 3,156 |
Roche Holdings, Inc. 2.375% 20273 | 725 | 690 |
Royal Dutch Shell PLC 1.375% 2019 | 2,000 | 1,976 |
Royal Dutch Shell PLC 1.75% 2021 | 1,740 | 1,699 |
Ryerson Inc. 11.00% 20223 | 835 | 936 |
Sally Holdings LLC and Sally Capital Inc. 5.625% 2025 | 450 | 450 |
Saudi Arabia (Kingdom of) 2.894% 20223 | 1,900 | 1,889 |
Saudi Arabia (Kingdom of) 3.628% 20273 | 1,900 | 1,921 |
Saudi Arabia (Kingdom of) 3.625% 20283 | 3,840 | 3,812 |
Scentre Group 3.50% 20253 | 600 | 604 |
Scentre Group 3.75% 20273 | 300 | 305 |
Schlumberger BV 4.00% 20253 | 1,460 | 1,536 |
Scientific Games Corp. 7.00% 20223 | 325 | 343 |
Shire PLC 1.90% 2019 | 2,000 | 1,983 |
Shire PLC 2.40% 2021 | 4,350 | 4,285 |
Shire PLC 2.875% 2023 | 445 | 438 |
Shire PLC 3.20% 2026 | 405 | 397 |
Sierra Pacific Power Co., General and Refunding Mortgage Notes, Series T, 3.375% 2023 | 2,450 | 2,528 |
Sirius XM Radio Inc 3.875% 20223 | 300 | 302 |
Skandinaviska Enskilda Banken AB 2.625% 2021 | 2,250 | 2,259 |
Skandinaviska Enskilda Banken AB 2.80% 2022 | 5,100 | 5,143 |
SM Energy Co. 6.50% 2021 | 375 | 382 |
SM Energy Co. 5.625% 2025 | 450 | 439 |
SoftBank Group Corp. 4.50% 20203 | 1,775 | 1,818 |
Solera Holdings, Inc. 10.50% 20243 | 150 | 169 |
Sotheby’s 5.25% 20223 | 300 | 309 |
Southwestern Energy Co. 4.10% 2022 | 1,415 | 1,397 |
Southwestern Energy Co. 7.50% 2026 | 155 | 165 |
Starwood Property Trust, Inc. 5.00% 2021 | 350 | 364 |
State Grid Overseas Investment Ltd. 3.50% 20273 | 5,600 | 5,632 |
Statoil ASA 3.70% 2024 | 1,950 | 2,050 |
Statoil ASA 4.25% 2041 | 1,000 | 1,083 |
Sunoco LP 6.25% 2021 | 630 | 656 |
Sweden (Kingdom of) 1.125% 20193 | 3,000 | 2,953 |
Talen Energy Corp. 9.50% 20223 | 110 | 113 |
Talen Energy Corp. 10.50% 20263 | 85 | 84 |
Targa Resources Partners LP 4.125% 2019 | 1,000 | 1,009 |
Targa Resources Partners LP 6.75% 2024 | 390 | 420 |
Team Health Holdings, Inc. 6.375% 20253 | 325 | 292 |
Teco Finance, Inc. 5.15% 2020 | 75 | 79 |
Teekay Corp. 8.50% 2020 | 2,050 | 2,096 |
Tenet Healthcare Corp. 4.375% 2021 | 250 | 251 |
Tenet Healthcare Corp. 4.625% 20243 | 421 | 412 |
Tenet Healthcare Corp., First Lien, 4.75% 2020 | 175 | 179 |
Tenet Healthcare Corp., First Lien, 6.00% 2020 | 355 | 377 |
Tenet Healthcare Corp., First Lien, 4.50% 2021 | 1,925 | 1,944 |
Tesoro Logistics LP 5.50% 2019 | 520 | 540 |
Tesoro Logistics LP 5.25% 2025 | 45 | 47 |
Teva Pharmaceutical Finance Company BV 1.40% 2018 | 380 | 378 |
Teva Pharmaceutical Finance Company BV 2.20% 2021 | 270 | 247 |
Teva Pharmaceutical Finance Company BV 2.80% 2023 | 410 | 357 |
Teva Pharmaceutical Finance Company BV 3.15% 2026 | 145 | 120 |
Teva Pharmaceutical Finance Company BV 4.10% 2046 | 140 | 107 |
Thermo Fisher Scientific Inc. 2.40% 2019 | 390 | 391 |
American Funds Insurance Series — Global Bond Fund — Page 130 of 171
Bonds, notes & other debt instruments U.S. dollars (continued) | Principal amount (000) | Value (000) |
TI Automotive Ltd. 8.75% 20233 | $117 | $126 |
Transocean Inc. 9.00% 20233 | 275 | 298 |
Trilogy International Partners, LLC 8.875% 20223 | 950 | 976 |
Turkey (Republic of) 6.25% 2022 | 1,880 | 2,044 |
Turkey (Republic of) 6.75% 2040 | 210 | 232 |
U.S. Treasury 1.375% 2020 | 41,900 | 41,300 |
U.S. Treasury 1.625% 2020 | 38,900 | 38,560 |
U.S. Treasury 1.125% 202112 | 43,160 | 41,977 |
U.S. Treasury 1.375% 2021 | 5,000 | 4,888 |
U.S. Treasury 1.75% 2021 | 6,000 | 5,917 |
U.S. Treasury 2.00% 2021 | 23,450 | 23,374 |
U.S. Treasury 1.875% 2022 | 2,650 | 2,614 |
U.S. Treasury 2.00% 2022 | 3,500 | 3,470 |
U.S. Treasury 1.875% 2024 | 9,400 | 9,148 |
U.S. Treasury 2.125% 2024 | 3,100 | 3,061 |
U.S. Treasury 2.00% 2026 | 46,785 | 45,312 |
U.S. Treasury 2.25% 2027 | 18,700 | 18,446 |
U.S. Treasury Inflation-Protected Security 0.125% 20222 | 122,652 | 121,800 |
U.S. Treasury Inflation-Protected Security 0.125% 20242 | 7,064 | 6,980 |
U.S. Treasury Inflation-Protected Security 0.625% 20242 | 33,010 | 33,582 |
U.S. Treasury Inflation-Protected Security 0.25% 20252 | 11,560 | 11,457 |
U.S. Treasury Inflation-Protected Security 0.375% 20252 | 5,721 | 5,730 |
U.S. Treasury Inflation-Protected Security 2.375% 20252 | 1,505 | 1,715 |
U.S. Treasury Inflation-Protected Security 0.625% 20262 | 10,070 | 10,230 |
U.S. Treasury Inflation-Protected Security 0.375% 20272 | 3,727 | 3,701 |
U.S. Treasury Inflation-Protected Security 0.75% 20422 | 682 | 689 |
U.S. Treasury Inflation-Protected Security 0.625% 20432 | 1,288 | 1,261 |
U.S. Treasury Inflation-Protected Security 1.375% 20442 | 6,181 | 7,139 |
U.S. Treasury Inflation-Protected Security 0.75% 20452 | 702 | 706 |
U.S. Treasury Inflation-Protected Security 1.00% 20462 | 21,550 | 23,018 |
Ultra Petroleum Corp. 6.875% 20223 | 455 | 458 |
Ultra Petroleum Corp. 7.125% 20253 | 250 | 250 |
UniCredit SPA 3.75% 20223 | 1,750 | 1,782 |
UniCredit SPA 4.625% 20273 | 1,350 | 1,427 |
Unisys Corp. 10.75% 20223 | 425 | 477 |
UnitedHealth Group Inc. 2.70% 2020 | 520 | 526 |
Vale SA 6.25% 2026 | 1,310 | 1,521 |
Valeant Pharmaceuticals International, Inc. 6.375% 20203 | 2,050 | 2,076 |
Valeant Pharmaceuticals International, Inc. 6.125% 20253 | 1,325 | 1,217 |
Valeant Pharmaceuticals International, Inc. 9.00% 20253 | 180 | 188 |
Venator Materials 5.75% 20253 | 150 | 159 |
Verizon Communications Inc. 4.50% 2033 | 1,920 | 2,018 |
Verizon Communications Inc. 4.125% 2046 | 1,814 | 1,681 |
Vine Oil & Gas LP 8.75% 20233 | 325 | 316 |
Virgin Australia Holdings Ltd. 8.50% 20193 | 325 | 339 |
Volkswagen Group of America Finance, LLC 2.45% 20193 | 545 | 545 |
Warrior Met Coal, Inc. 8.00% 20243 | 100 | 104 |
WEA Finance LLC 2.70% 20193 | 1,185 | 1,192 |
WEA Finance LLC 3.25% 20203 | 3,030 | 3,085 |
WEA Finance LLC 3.75% 20243 | 535 | 552 |
Weatherford International PLC 4.50% 2022 | 175 | 159 |
Weatherford International PLC 8.25% 2023 | 1,025 | 1,038 |
Weatherford International PLC 6.50% 2036 | 650 | 538 |
Weatherford International PLC 6.75% 2040 | 1,280 | 1,056 |
WellPoint, Inc. 2.30% 2018 | 585 | 586 |
American Funds Insurance Series — Global Bond Fund — Page 131 of 171
Bonds, notes & other debt instruments U.S. dollars (continued) | Principal amount (000) | Value (000) |
Wells Fargo & Co. 3.584% 2028 | $900 | $918 |
Western Gas Partners LP 4.00% 2022 | 1,500 | 1,532 |
Western Gas Partners LP 3.95% 2025 | 2,900 | 2,904 |
Westfield Corp. Ltd. 3.15% 20223 | 245 | 247 |
Williams Companies, Inc. 3.70% 2023 | 345 | 345 |
Williams Partners LP 4.125% 2020 | 375 | 390 |
Williams Partners LP 5.25% 2020 | 225 | 238 |
Williams Partners LP 4.50% 2023 | 760 | 805 |
Williams Partners LP 4.30% 2024 | 1,380 | 1,447 |
Wind Tre SpA 5.00% 20263 | 525 | 502 |
Windstream Holdings, Inc. 8.75% 20243 | 1,464 | 1,030 |
WM. Wrigley Jr. Co 3.375% 20203 | 515 | 528 |
Wynn Las Vegas, LLC and Wynn Capital Corp. 4.25% 20233 | 643 | 657 |
Wynn Las Vegas, LLC and Wynn Capital Corp. 5.50% 20253 | 400 | 413 |
Wynn Las Vegas, LLC and Wynn Capital Corp. 5.25% 20273 | 150 | 152 |
Ziggo Bond Finance BV 5.50% 20273 | 1,200 | 1,202 |
Zimmer Holdings, Inc. 3.15% 2022 | 790 | 793 |
1,062,870 | ||
Total bonds, notes & other debt instruments (cost: $2,173,424,000) | 2,213,019 | |
Convertible stocks 0.05% U.S. dollars 0.05% | Shares | |
CEVA Group PLC, Series A-1, convertible preferred, (3-month USD-LIBOR + 3.00%) 4.731%7,8,13 | 329 | 220 |
CEVA Group PLC, Series A-2, convertible preferred, (3-month USD-LIBOR + 2.00%) 3.731%7,8,13 | 36 | 17 |
Associated Materials, LLC, 14.00% convertible preferred 20208,9 | 850 | 973 |
Total convertible stocks (cost: $1,202,000) | 1,210 | |
Common stocks 0.03% U.S. dollars 0.03% | ||
Corporate Risk Holdings I, Inc.7,8,9,13 | 25,840 | 457 |
Corporate Risk Holdings Corp.7,8,9,13 | 131 | — |
CEVA Group PLC7,8,13 | 431 | 207 |
NII Holdings, Inc.13 | 76,468 | 32 |
Atrium Corp.3,8,9,13 | 2 | — |
Total common stocks (cost: $2,528,000) | 696 | |
Rights & warrants 0.00% U.S. dollars 0.00% | ||
Associated Materials, LLC, warrants, expire 20238,9,13 | 12,075 | — |
Total rights & warrants (cost: $0) | — | |
Short-term securities 11.25% | Principal amount (000) | |
American Honda Finance Corp. 1.43% due 1/24/2018 | $ 36,000 | 35,962 |
Egyptian Treasury Bills 15.61%–16.87% due 3/27/2018–4/10/2018 | EGP165,250 | 8,907 |
Japanese Treasury Discount Bills (0.16)% due 5/21/2018 | ¥15,300,000 | 135,869 |
Liberty Street Funding Corp. 1.78% due 3/21/20183 | $25,000 | 24,901 |
Mitsubishi UFJ Trust and Banking Corp. 1.52% due 1/19/20183 | 35,400 | 35,369 |
American Funds Insurance Series — Global Bond Fund — Page 132 of 171
Short-term securities | Principal amount (000) | Value (000) |
Nigerian Treasury Bills 16.65%–16.91% due 7/5/2018–9/13/2018 | NGN3,314,200 | $8,361 |
Royal Bank of Canada 1.53% due 1/16/2018 | $16,000 | 15,988 |
Victory Receivables Corp. 1.43% due 1/16/20183 | 12,200 | 12,191 |
Total short-term securities (cost: $276,867,000) | 277,548 | |
Total investment securities 101.01% (cost: $2,454,021,000) | 2,492,473 | |
Other assets less liabilities (1.01)% | (24,895) | |
Net assets 100.00% | $2,467,578 |
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount14 (000) | Value at 12/31/201715 (000) | Unrealized (depreciation) appreciation at 12/31/2017 (000) |
10 Year Ultra U.S. Treasury Note Futures | Long | 101 | March 2018 | $10,100 | $13,490 | $(78) |
10 Year U.S. Treasury Note Futures | Long | 77 | March 2018 | 7,700 | 9,552 | (48) |
30 Year Ultra U.S. Treasury Bond Futures | Long | 13 | March 2018 | 1,300 | 2,179 | 25 |
5 Year U.S. Treasury Note Futures | Long | 1,524 | April 2018 | 152,400 | 177,034 | (428) |
90 Day Euro Dollar Futures | Short | 366 | September 2018 | (91,500) | (89,634) | 170 |
$(359) |
Forward currency contracts
Contract amount | Counterparty | Settlement date | Unrealized appreciation (depreciation) at 12/31/2017 (000) | |
Purchases (000) | Sales (000) | |||
USD7,771 | MXN140,900 | JPMorgan Chase | 1/4/2018 | $613 |
USD3,058 | CAD3,900 | Bank of America, N.A. | 1/5/2018 | (45) |
USD4,126 | INR267,100 | Citibank | 1/5/2018 | (55) |
USD7,869 | AUD10,200 | UBS AG | 1/5/2018 | (90) |
USD14,560 | INR941,650 | JPMorgan Chase | 1/5/2018 | (180) |
USD2,774 | ZAR39,200 | UBS AG | 1/5/2018 | (391) |
EUR5,084 | USD5,951 | Goldman Sachs | 1/8/2018 | 153 |
USD4,970 | ILS17,400 | Bank of America, N.A. | 1/9/2018 | (32) |
USD13,666 | EUR11,550 | HSBC Bank | 1/9/2018 | (202) |
EUR10,463 | USD12,500 | Bank of America, N.A. | 1/10/2018 | 63 |
USD3,153 | CAD4,050 | Bank of America, N.A. | 1/10/2018 | (70) |
JPY1,392,273 | USD12,434 | JPMorgan Chase | 1/10/2018 | (70) |
USD5,035 | PLN17,827 | JPMorgan Chase | 1/10/2018 | (86) |
USD4,029 | AUD5,300 | Goldman Sachs | 1/10/2018 | (106) |
JPY2,265,955 | USD20,240 | Bank of America, N.A. | 1/10/2018 | (117) |
USD5,171 | AUD6,800 | Bank of America, N.A. | 1/10/2018 | (135) |
USD7,691 | CAD9,850 | Goldman Sachs | 1/10/2018 | (147) |
JPY1,346,098 | USD12,121 | Barclays Bank PLC | 1/10/2018 | (167) |
JPY3,321,365 | USD29,938 | JPMorgan Chase | 1/10/2018 | (442) |
JPY835,989 | USD7,411 | Bank of America, N.A. | 1/11/2018 | 13 |
USD1,710 | AUD2,250 | Bank of America, N.A. | 1/11/2018 | (46) |
JPY2,218,752 | USD20,004 | UBS AG | 1/11/2018 | (299) |
EUR17,250 | USD20,075 | UBS AG | 1/12/2018 | 640 |
USD3,762 | MXN72,500 | HSBC Bank | 1/12/2018 | 85 |
American Funds Insurance Series — Global Bond Fund — Page 133 of 171
Contract amount | Counterparty | Settlement date | Unrealized appreciation (depreciation) at 12/31/2017 (000) | |
Purchases (000) | Sales (000) | |||
USD12,610 | AUD16,760 | Citibank | 1/12/2018 | $(467) |
USD5,694 | INR369,000 | Bank of America, N.A. | 1/16/2018 | (75) |
EUR14,702 | USD17,356 | JPMorgan Chase | 1/17/2018 | 305 |
JPY2,756,764 | USD24,449 | JPMorgan Chase | 1/17/2018 | 41 |
JPY1,698,519 | USD15,121 | Citibank | 1/17/2018 | (32) |
USD3,568 | EUR3,000 | Bank of America, N.A. | 1/17/2018 | (36) |
JPY3,324,831 | USD29,698 | HSBC Bank | 1/17/2018 | (162) |
CHF5,774 | USD5,864 | Goldman Sachs | 1/18/2018 | 70 |
JPY445,496 | USD3,951 | Goldman Sachs | 1/18/2018 | 7 |
NOK37,200 | USD4,441 | Bank of America, N.A. | 1/19/2018 | 92 |
EUR2,833 | GBP2,500 | HSBC Bank | 1/19/2018 | 26 |
USD9,255 | EUR7,850 | Bank of America, N.A. | 1/19/2018 | (176) |
EUR6,645 | USD7,833 | Bank of America, N.A. | 1/22/2018 | 153 |
JPY351,002 | USD3,128 | Citibank | 1/22/2018 | (9) |
JPY995,097 | USD8,894 | Barclays Bank PLC | 1/22/2018 | (52) |
SEK51,198 | USD6,101 | Citibank | 1/23/2018 | 151 |
EUR5,439 | USD6,441 | Citibank | 1/23/2018 | 95 |
JPY1,655,674 | USD14,688 | UBS AG | 1/23/2018 | 25 |
USD9,075 | ILS31,900 | JPMorgan Chase | 1/23/2018 | (101) |
USD6,140 | PLN21,950 | Citibank | 1/23/2018 | (166) |
SEK60,114 | USD7,094 | Barclays Bank PLC | 1/24/2018 | 247 |
JPY933,211 | USD8,249 | Goldman Sachs | 1/24/2018 | 45 |
EUR2,082 | USD2,500 | Citibank | 2/5/2018 | 4 |
USD6,121 | ILS21,303 | Bank of America, N.A. | 2/6/2018 | (11) |
JPY1,310,000 | USD11,635 | HSBC Bank | 2/15/2018 | 19 |
NOK32,573 | DKK24,600 | Citibank | 2/15/2018 | (4) |
JPY392,473 | USD3,499 | Citibank | 2/15/2018 | (8) |
SEK30,059 | USD3,588 | Barclays Bank PLC | 2/22/2018 | 88 |
JPY376,335 | USD3,336 | HSBC Bank | 2/23/2018 | 13 |
USD7,605 | INR504,900 | Citibank | 3/26/2018 | (221) |
USD5,942 | BRL19,300 | Citibank | 4/23/2018 | 196 |
USD138,524 | JPY15,300,000 | Citibank | 5/21/2018 | 1,645 |
USD5,348 | BRL18,000 | Citibank | 11/29/2018 | 117 |
USD169 | EUR140 | Bank of America, N.A. | 12/13/2018 | (3) |
USD2,008 | EUR1,670 | Bank of America, N.A. | 12/13/2018 | (43) |
$660 |
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2017 (000) | Upfront payments/ receipts (000) | Unrealized (depreciation) appreciation at 12/31/2017 (000) |
7.46% | 28-day MXN-TIIE | 11/6/2018 | MXN1,356,000 | $(335) | $— | $(335) |
7.455% | 28-day MXN-TIIE | 11/7/2018 | 1,099,000 | (274) | — | (274) |
7.44% | 28-day MXN-TIIE | 11/7/2018 | 3,045,000 | (779) | — | (779) |
1.6505% | 3-month USD-LIBOR | 3/21/2019 | $85,000 | (290) | — | (290) |
3-month USD-LIBOR | 2.0335% | 12/19/2019 | 35,000 | 18 | — | 18 |
9.145% | DI-OVER-EXTRA Grupo | 1/4/2021 | BRL108,000 | 244 | — | 244 |
6.775% | 28-day MXN-TIIE | 6/20/2022 | MXN280,000 | (590) | — | (590) |
American Funds Insurance Series — Global Bond Fund — Page 134 of 171
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2017 (000) | Upfront payments/ receipts (000) | Unrealized (depreciation) appreciation at 12/31/2017 (000) |
3-month SEK-STIBOR | 0.425% | 8/4/2022 | SKr140,000 | $(16) | $— | $(16) |
3-month USD-LIBOR | 2.4275% | 10/31/2027 | $7,050 | (27) | — | (27) |
3-month USD-LIBOR | 2.556% | 11/27/2045 | 10,000 | (40) | — | (40) |
3-month USD-LIBOR | 1.909% | 10/11/2046 | 5,750 | 772 | — | 772 |
3-month USD-LIBOR | 2.659% | 2/8/2047 | 6,000 | (159) | — | (159) |
1.4898% | 6-month EURIBOR | 11/24/2047 | €2,150 | (3) | — | (3) |
$— | $(1,479) |
1 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
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 was $259,235,000, which represented 10.51% of the net assets of the fund. |
4 | Coupon rate may change periodically. |
5 | Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $5,582,000, which represented .23% of the net assets of the fund. |
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. |
8 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $2,478,000, which represented .10% of the net assets of the fund. |
9 | Value determined using significant unobservable inputs. |
10 | Payment in kind; the issuer has the option of paying additional securities in lieu of cash. Most recent payment was 100% cash unless otherwise noted. |
11 | Purchased on a TBA basis. |
12 | A portion of this security was pledged as collateral. The total value of pledged collateral was $8,305,000, which represented .34% of the net assets of the fund. |
13 | Security did not produce income during the last 12 months. |
14 | Notional amount is calculated based on the number of contracts and notional contract size. |
15 | Value is calculated based on the notional amount and current market price. |
Private placement securities | Acquisition date | Cost (000) | Value (000) | Percent of net assets |
Blackstone CQP Holdco LP, 6.50% 2021 | 3/6/2017 | $3,450 | $3,519 | .14% |
Blackstone CQP Holdco LP, 6.00% 2021 | 8/9/2017 | 225 | 227 | .01 |
CEVA Group PLC, Series A-1, convertible preferred, (3-month USD-LIBOR + 3.00%) 4.359% | 4/3/2013 | 334 | 220 | .01 |
CEVA Group PLC, Series A-2, convertible preferred, (3-month USD-LIBOR + 2.00%) 3.359% | 3/10/2010 | 52 | 17 | .00 |
CEVA Group PLC | 3/10/2010 | 998 | 207 | .01 |
Corporate Risk Holdings I, Inc. | 8/31/2015 | 287 | 457 | .02 |
Corporate Risk Holdings Corp. | 8/31/2015 | — | — | .00 |
Total private placement securities | $5,346 | $4,647 | .19% |
American Funds Insurance Series — Global Bond Fund — Page 135 of 171
Key to abbreviations and symbols | ||
ARS = Argentine pesos | EGP = Egyptian pounds | NGN = Nigerian naira |
AUD/A$ = Australian dollars | EURIBOR = Euro Interbank Offered Rate | NOK/NKr = Norwegian kroner |
BRL = Brazilian reais | EUR/€ = Euros | PLN = Polish zloty |
CAD/C$ = Canadian dollars | GBP/£ = British pounds | SEK/SKr = Swedish kronor |
CHF = Swiss francs | ILS = Israeli shekels | STIBOR = Stockholm Interbank Offered Rate |
CLP = Chilean pesos | INR = Indian rupees | TBA = To-be-announced |
CMS = Constant Maturity Swap | JPY/¥ = Japanese yen | THB = Thai baht |
COP = Colombian pesos | KRW = South Korean won | TIIE = Equilibrium Interbank Interest Rate |
DI-OVER-EXTRA Grupo = | LIBOR = London Interbank Offered Rate | TRY = Turkish lira |
Overnight Brazilian Interbank Deposit Rate | MXN = Mexican pesos | USD/$ = U.S. dollars |
DKK/DKr = Danish kroner | MYR = Malaysian ringgits | UYU = Uruguayan pesos |
ZAR = South African rand |
American Funds Insurance Series — Global Bond Fund — Page 136 of 171
High-Income Bond Fund
Investment portfolio
December 31, 2017
Bonds, notes & other debt instruments 94.25% Corporate bonds & notes 93.34% Energy 19.39% | Principal amount (000) | Value (000) |
American Energy (Marcellus), Term Loan A, (3-month USD-LIBOR + 7.50%) 8.960% 20211,2,3,4 | $5,601 | $224 |
American Energy (Marcellus), Term Loan B, (3-month USD-LIBOR + 4.25%) 5.710% 20201,2,3,4 | 7,533 | 5,574 |
American Energy (Permian Basin) 7.125% 20205 | 7,445 | 6,068 |
American Energy (Permian Basin) 7.375% 20215 | 6,770 | 5,484 |
American Midstream Partners, LP, 8.50% 20215 | 1,675 | 1,729 |
Antero Resources Corp. 5.375% 2024 | 1,085 | 1,123 |
Antero Resources Corp. 5.00% 2025 | 1,000 | 1,025 |
Ascent Resources - Utica LLC, 10.00% 20225 | 675 | 727 |
Blackstone CQP Holdco LP, 6.00% 20215,6 | 1,600 | 1,612 |
Blackstone CQP Holdco LP, 6.50% 20215,6 | 20,685 | 21,099 |
Blue Racer Midstream LLC / Blue Racer Finance Corp. 6.125% 20225 | 2,000 | 2,090 |
California Resources Corp., Term Loan B1, (3-month USD-LIBOR + 10.375%) 11.876% 20212,3,4 | 1,325 | 1,457 |
California Resources Corp., Term Loan B, (3-month USD-LIBOR + 4.75%) 6.016% 20222,3,4 | 3,200 | 3,216 |
Carrizo Oil & Gas Inc. 6.25% 2023 | 1,050 | 1,095 |
Cheniere Energy Partners, LP 5.25% 20255 | 1,700 | 1,734 |
Chesapeake Energy Corp. (3-month USD-LIBOR + 3.25%) 4.609% 20194 | 2,220 | 2,220 |
Chesapeake Energy Corp. 4.875% 2022 | 4,500 | 4,286 |
Chesapeake Energy Corp. 8.00% 20225 | 2,993 | 3,240 |
Chesapeake Energy Corp. 8.00% 20255 | 10,025 | 10,138 |
Chesapeake Energy Corp. 8.00% 20275 | 4,125 | 3,970 |
CONSOL Energy Inc. 5.875% 2022 | 11,299 | 11,596 |
Continental Resources Inc. 5.00% 2022 | 725 | 739 |
Convey Park Energy LLC 7.50% 20255 | 2,950 | 3,082 |
DCP Midstream LP 7.375% 2022 | 1,500 | 1,491 |
DCP Midstream Operating LP 4.95% 2022 | 3,030 | 3,163 |
Denbury Resources Inc. 9.00% 20215 | 851 | 873 |
Diamond Offshore Drilling, Inc. 7.875% 2025 | 2,800 | 2,950 |
Diamond Offshore Drilling, Inc. 5.70% 2039 | 641 | 522 |
Diamond Offshore Drilling, Inc. 4.875% 2043 | 3,260 | 2,396 |
Enbridge Inc., Series A, 6.00% 2077 | 2,225 | 2,320 |
Endeavor Energy Resources, LP 5.50% 20265 | 1,000 | 1,020 |
Endeavor Energy Resources, LP 5.75% 20285 | 1,000 | 1,031 |
Energy Transfer Partners, LP 4.25% 2023 | 3,500 | 3,482 |
Energy Transfer Partners, LP 6.25% 2023 | 1,750 | 1,703 |
Energy Transfer Partners, LP 5.875% 2024 | 4,500 | 4,747 |
Energy Transfer Partners, LP 5.50% 2027 | 3,620 | 3,701 |
Ensco PLC 5.75% 2044 | 4,645 | 3,205 |
EP Energy Corp. 9.375% 2020 | 1,600 | 1,360 |
EP Energy Corp. 8.00% 20245 | 1,300 | 1,349 |
Genesis Energy, LP 6.75% 2022 | 2,300 | 2,398 |
Genesis Energy, LP 6.50% 2025 | 2,275 | 2,320 |
Jonah Energy LLC 7.25% 20255 | 4,925 | 4,968 |
Jupiter Resources Inc. 8.50% 20225 | 1,250 | 781 |
Laredo Petroleum, Inc. 6.25% 2023 | 725 | 754 |
Murphy Oil Corp. 6.875% 2024 | 1,400 | 1,498 |
American Funds Insurance Series — High-Income Bond Fund — Page 137 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Energy (continued) | Principal amount (000) | Value (000) |
Murphy Oil Corp. 5.75% 2025 | $2,340 | $2,398 |
Murphy Oil Corp. 5.625% 2027 | 925 | 975 |
NGL Energy Partners LP 6.875% 2021 | 6,415 | 6,575 |
NGL Energy Partners LP 7.50% 2023 | 1,450 | 1,508 |
NGL Energy Partners LP 6.125% 2025 | 3,865 | 3,788 |
NGPL PipeCo LLC 4.375% 20225 | 315 | 321 |
NGPL PipeCo LLC 4.875% 20275 | 230 | 239 |
NGPL PipeCo LLC 7.768% 20375 | 2,095 | 2,593 |
Noble Corp. PLC 7.70% 2025 | 2,225 | 1,880 |
Noble Corp. PLC 8.70% 2045 | 2,650 | 2,113 |
NuStar Logistics, LP 5.625% 2027 | 3,000 | 3,060 |
ONEOK, Inc. 7.50% 2023 | 1,250 | 1,491 |
Parsley Energy, Inc. 6.25% 20245 | 500 | 529 |
Parsley Energy, Inc. 5.25% 20255 | 500 | 504 |
Parsley Energy, Inc. 5.375% 20255 | 2,375 | 2,411 |
PDC Energy Inc. 5.75% 20265 | 2,250 | 2,309 |
Peabody Energy Corp. 6.00% 20225 | 1,050 | 1,093 |
Peabody Energy Corp. 6.375% 20255 | 775 | 809 |
Petrobras Global Finance Co. 6.125% 2022 | 935 | 995 |
Petrobras Global Finance Co. 7.375% 2027 | 1,330 | 1,467 |
Petrobras Global Finance Co. 5.999% 20285 | 1,663 | 1,669 |
Petróleos Mexicanos 6.75% 20475 | 2,240 | 2,344 |
QEP Resources, Inc. 5.625% 2026 | 3,080 | 3,134 |
QGOG Constellation SA 9.50% 2024 (5.26% PIK)3,5,7 | 6,114 | 4,127 |
Range Resources Corp. 5.00% 2022 | 575 | 575 |
Range Resources Corp. 4.875% 2025 | 1,600 | 1,552 |
Seven Generations Energy Ltd. 5.375% 20255 | 950 | 962 |
SM Energy Co. 6.50% 2021 | 750 | 763 |
SM Energy Co. 6.125% 2022 | 750 | 768 |
SM Energy Co. 5.625% 2025 | 3,130 | 3,052 |
SM Energy Co. 6.75% 2026 | 475 | 492 |
Southwestern Energy Co. 4.10% 2022 | 8,915 | 8,804 |
Southwestern Energy Co. 7.50% 2026 | 3,605 | 3,835 |
Southwestern Energy Co. 7.75% 2027 | 750 | 802 |
Sunoco LP 6.25% 2021 | 4,475 | 4,663 |
Sunoco LP 6.375% 2023 | 1,200 | 1,267 |
Tapstone Energy Inc. 9.75% 20225 | 2,075 | 1,787 |
Targa Resources Partners LP 4.125% 2019 | 4,525 | 4,565 |
Targa Resources Partners LP 6.75% 2024 | 1,910 | 2,056 |
Targa Resources Partners LP 5.125% 2025 | 375 | 385 |
Teekay Corp. 8.50% 2020 | 11,168 | 11,419 |
Tesoro Logistics LP 5.25% 2025 | 220 | 232 |
Transocean Inc. 8.375% 2021 | 1,855 | 2,013 |
Transocean Inc. 9.00% 20235 | 3,350 | 3,635 |
Transocean Inc. 7.50% 20265 | 1,000 | 1,027 |
Transocean Inc. 7.75% 20243,5 | 1,688 | 1,854 |
Tullow Oil PLC 6.00% 2020 | 525 | 532 |
Ultra Petroleum Corp. 6.875% 20225 | 4,390 | 4,417 |
Ultra Petroleum Corp. 7.125% 20255 | 1,675 | 1,677 |
Vine Oil & Gas LP 8.75% 20235 | 1,625 | 1,580 |
Vine Oil & Gas LP, Term Loan, (3-month USD-LIBOR + 6.875%) 8.444% 20212,3,4,8 | 1,550 | 1,538 |
Weatherford International PLC 7.75% 2021 | 2,635 | 2,696 |
Weatherford International PLC 4.50% 2022 | 2,540 | 2,311 |
Weatherford International PLC 8.25% 2023 | 275 | 278 |
American Funds Insurance Series — High-Income Bond Fund — Page 138 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Energy (continued) | Principal amount (000) | Value (000) |
Weatherford International PLC 9.875% 2024 | $915 | $977 |
Weatherford International PLC 6.50% 2036 | 5,615 | 4,646 |
Weatherford International PLC 6.75% 2040 | 7,755 | 6,398 |
Weatherford International PLC 5.95% 2042 | 700 | 550 |
Whiting Petroleum Corp. 6.625% 20265 | 2,950 | 3,013 |
Williams Companies, Inc. 3.70% 2023 | 1,670 | 1,670 |
Williams Companies, Inc. 4.55% 2024 | 500 | 521 |
WPX Energy Inc. 7.50% 2020 | 469 | 510 |
WPX Energy Inc. 6.00% 2022 | 710 | 746 |
YPF SA 6.95% 20275 | 1,325 | 1,410 |
281,870 | ||
Health care 12.43% | ||
Centene Corp. 4.75% 2022 | 6,515 | 6,792 |
Centene Corp. 6.125% 2024 | 2,000 | 2,120 |
Centene Corp. 4.75% 2025 | 4,300 | 4,386 |
Community Health Systems Inc. 6.25% 2023 | 850 | 769 |
Concordia Healthcare Corp., Term Loan B, (3-month USD-LIBOR + 4.25%) 5.819% 20212,3,4 | 1,538 | 1,276 |
Concordia Healthcare Corp. 9.50% 20225 | 1,645 | 156 |
Concordia Healthcare Corp. 7.00% 20235 | 6,590 | 626 |
DaVita HealthCare Partners Inc. 5.125% 2024 | 750 | 759 |
DaVita HealthCare Partners Inc. 5.00% 2025 | 2,815 | 2,821 |
DJO Finance LLC 8.125% 20215 | 2,350 | 2,209 |
Eagle Holding Co II LLC 7.625% 20225,7 | 810 | 826 |
Endo Finance LLC & Endo Finco Inc. 5.375% 20235 | 600 | 471 |
Endo Finance LLC & Endo Finco Inc. 6.00% 20255 | 2,345 | 1,829 |
Endo International PLC 5.75% 20225 | 3,475 | 2,910 |
Endo International PLC 6.00% 20235 | 4,335 | 3,425 |
Endo International PLC 5.875% 20245 | 950 | 967 |
HCA Inc. 7.50% 2022 | 360 | 406 |
HCA Inc. 5.875% 2023 | 625 | 669 |
HCA Inc. 5.00% 2024 | 2,900 | 3,023 |
HCA Inc. 5.375% 2025 | 650 | 674 |
HCA Inc. 5.25% 2026 | 1,100 | 1,169 |
HCA Inc. 5.875% 2026 | 1,805 | 1,913 |
HCA Inc. 4.50% 2027 | 2,025 | 2,040 |
HCA Inc. 7.50% 2033 | 315 | 354 |
HCA Inc. 7.75% 2036 | 205 | 233 |
HCA Inc. 5.50% 2047 | 2,475 | 2,475 |
Healthsouth Corp. 5.75% 2024 | 3,575 | 3,673 |
Healthsouth Corp. 5.75% 2025 | 2,480 | 2,592 |
IMS Health Holdings, Inc. 5.00% 20265 | 2,350 | 2,418 |
inVentiv Health, Inc. 7.50% 20245 | 1,340 | 1,454 |
Jaguar Holding Co. 6.375% 20235 | 1,000 | 1,012 |
Kindred Healthcare, Inc. 8.00% 2020 | 300 | 327 |
Kinetic Concepts, Inc. 7.875% 20215 | 375 | 392 |
Kinetic Concepts, Inc. 12.50% 20215 | 4,813 | 5,427 |
Mallinckrodt PLC 4.875% 20205 | 4,160 | 4,014 |
Mallinckrodt PLC 5.625% 20235 | 1,955 | 1,672 |
MEDNAX, Inc. 5.25% 20235 | 275 | 280 |
Molina Healthcare, Inc. 5.375% 2022 | 10,285 | 10,774 |
Molina Healthcare, Inc. 4.875% 20255 | 3,975 | 3,985 |
Multiplan, Inc. 8.50% 20225,7 | 3,760 | 3,910 |
Multiplan, Inc. 7.125% 20245 | 2,575 | 2,749 |
American Funds Insurance Series — High-Income Bond Fund — Page 139 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Health care (continued) | Principal amount (000) | Value (000) |
PAREXEL International Corp. 6.375% 20255 | $3,065 | $3,088 |
Prestige Brands International Inc. 6.375% 20245 | 900 | 937 |
Quintiles Transnational Corp. 4.875% 20235 | 2,625 | 2,717 |
Rotech Healthcare Inc., Term Loan, (3-month USD-LIBOR + 11.00%) 13.00% 2020 (84.62% PIK)2,3,4,7,8,9 | 6,709 | 6,343 |
Rotech Healthcare Inc., Term Loan A, (3-month USD-LIBOR + 4.25%) 5.943% 20182,3,4,8,9 | 2,968 | 2,953 |
Rotech Healthcare Inc., Term Loan B, (3-month USD-LIBOR + 8.75%) 10.443% 20192,3,4,8,9 | 2,300 | 2,288 |
Team Health Holdings, Inc. 6.375% 20255 | 1,600 | 1,436 |
Teleflex Inc. 4.625% 2027 | 1,435 | 1,453 |
Tenet Healthcare Corp. 4.375% 2021 | 4,255 | 4,266 |
Tenet Healthcare Corp. 8.125% 2022 | 1,400 | 1,430 |
Tenet Healthcare Corp. 6.75% 2023 | 2,125 | 2,069 |
Tenet Healthcare Corp. 4.625% 20245 | 4,042 | 3,956 |
Tenet Healthcare Corp. 5.125% 20255 | 450 | 440 |
Tenet Healthcare Corp., First Lien, 4.75% 2020 | 4,050 | 4,141 |
Tenet Healthcare Corp., First Lien, 6.00% 2020 | 6,490 | 6,886 |
Tenet Healthcare Corp., First Lien, 4.50% 2021 | 1,355 | 1,369 |
Teva Pharmaceutical Finance Company BV 2.20% 2021 | 775 | 708 |
Teva Pharmaceutical Finance Company BV 2.80% 2023 | 2,125 | 1,853 |
Valeant Pharmaceuticals International, Inc. 5.375% 20205 | 1,250 | 1,258 |
Valeant Pharmaceuticals International, Inc. 6.375% 20205 | 2,448 | 2,479 |
Valeant Pharmaceuticals International, Inc. 5.625% 20215 | 1,175 | 1,153 |
Valeant Pharmaceuticals International, Inc. 7.50% 20215 | 3,540 | 3,615 |
Valeant Pharmaceuticals International, Inc. 6.50% 20225 | 350 | 368 |
Valeant Pharmaceuticals International, Inc. 7.25% 20225 | 1,150 | 1,167 |
Valeant Pharmaceuticals International, Inc. 5.875% 20235 | 8,860 | 8,229 |
Valeant Pharmaceuticals International, Inc. 7.00% 20245 | 1,375 | 1,475 |
Valeant Pharmaceuticals International, Inc. 5.50% 20255 | 975 | 997 |
Valeant Pharmaceuticals International, Inc. 6.125% 20255 | 17,245 | 15,844 |
Valeant Pharmaceuticals International, Inc. 9.00% 20255 | 3,240 | 3,385 |
Vizient Inc. 10.375% 20245 | 985 | 1,111 |
WellCare Health Plans, Inc. 5.25% 2025 | 1,250 | 1,322 |
180,713 | ||
Consumer discretionary 12.12% | ||
AMC Networks Inc. 4.75% 2025 | 700 | 696 |
American Axle & Manufacturing Holdings, Inc. 6.25% 20255 | 495 | 522 |
American Axle & Manufacturing Holdings, Inc. 6.50% 20275 | 2,775 | 2,945 |
Cablevision Systems Corp. 6.75% 2021 | 4,475 | 4,811 |
Cablevision Systems Corp. 5.50% 20275 | 1,200 | 1,227 |
Caesars Resort Collection LLC, Term Loan, (3-month USD-LIBOR + 2.75%) 2.75% 20242,3,4 | 1,000 | 1,005 |
CBS Corp. 7.25% 20245 | 950 | 1,006 |
CCO Holdings LLC and CCO Holdings Capital Corp. 4.00% 20235 | 1,825 | 1,811 |
CCO Holdings LLC and CCO Holdings Capital Corp. 5.875% 20245 | 1,350 | 1,411 |
CCO Holdings LLC and CCO Holdings Capital Corp. 5.375% 20255 | 550 | 568 |
CCO Holdings LLC and CCO Holdings Capital Corp. 5.50% 20265 | 2,600 | 2,671 |
CCO Holdings LLC and CCO Holdings Capital Corp. 5.75% 20265 | 10,320 | 10,746 |
CCO Holdings LLC and CCO Holdings Capital Corp. 5.125% 20275 | 3,125 | 3,086 |
CCO Holdings LLC and CCO Holdings Capital Corp. 5.00% 20285 | 6,025 | 5,889 |
Churchill Downs Inc. 4.75% 20285 | 1,880 | 1,877 |
Clear Channel Worldwide Holdings, Inc. 7.625% 2020 | 12,563 | 12,359 |
ClubCorp Holdings, Inc., Term Loan B, (3-month USD-LIBOR + 3.25%) 4.943% 20242,3,4 | 2,047 | 2,058 |
Constellation Merger Sub Inc. 8.50% 20255 | 1,025 | 1,004 |
CRC Escrow Issuer LLC 5.25% 20255 | 2,050 | 2,076 |
Cumulus Media Inc. 7.75% 20191 | 1,480 | 281 |
American Funds Insurance Series — High-Income Bond Fund — Page 140 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Consumer discretionary (continued) | Principal amount (000) | Value (000) |
Delphi Automotive PLC 5.00% 20255 | $950 | $964 |
Delta 2 (Formula One), Term Loan B3, 4.569% 20242,3,4 | 1,190 | 1,198 |
DISH DBS Corp. 5.00% 2023 | 450 | 429 |
Fertitta Entertainment, Inc. 8.75% 20255 | 2,100 | 2,210 |
Goodyear Tire & Rubber Co. 4.875% 2027 | 750 | 770 |
Hanesbrands Inc. 4.625% 20245 | 1,435 | 1,471 |
Hanesbrands Inc. 4.875% 20265 | 500 | 515 |
iHeartCommunications, Inc., Term Loan D, (3-month USD-LIBOR + 6.75%) 8.443% 20192,3,4 | 4,350 | 3,282 |
iHeartCommunications, Inc. 9.00% 2019 | 10,385 | 7,763 |
iHeartCommunications, Inc. 10.625% 2023 | 515 | 366 |
International Game Technology 6.25% 20225 | 200 | 217 |
Landry’s, Inc. 6.75% 20245 | 2,100 | 2,142 |
Levi Strauss & Co. 5.00% 2025 | 1,280 | 1,341 |
Liberty Global PLC 6.125% 20255 | 900 | 954 |
Liberty Global PLC 5.50% 20285 | 3,675 | 3,583 |
Limited Brands, Inc. 6.875% 2035 | 975 | 990 |
LKQ Corp. 4.75% 2023 | 1,040 | 1,069 |
Loral Space & Communications Inc. 8.875% 20245 | 1,225 | 1,375 |
M.D.C. Holdings, Inc. 6.00% 2043 | 1,600 | 1,572 |
McGraw-Hill Global Education Holdings, LLC 7.875% 20245 | 225 | 223 |
MDC Partners Inc. 6.50% 20245 | 750 | 758 |
Melco Crown Entertainment Ltd. 5.875% 20195 | 1,750 | 1,833 |
Meritage Homes Corp. 5.125% 2027 | 1,875 | 1,912 |
MGM Growth Properties LLC 5.625% 2024 | 1,525 | 1,632 |
MGM Resorts International 7.75% 2022 | 750 | 857 |
MGM Resorts International 6.00% 2023 | 2,030 | 2,197 |
MHGE Parent LLC/Finance 8.50% 20195,7 | 325 | 325 |
Mohegan Tribal Gaming Authority 7.875% 20245 | 975 | 1,003 |
Neiman Marcus Group LTD Inc., Term Loan B, (3-month USD-LIBOR + 3.25%) 4.642% 20202,3,4 | 5,200 | 4,259 |
Neiman Marcus Group LTD Inc. 8.00% 20215 | 675 | 392 |
Netflix, Inc. 5.75% 2024 | 1,480 | 1,578 |
NMG Finco PLC 5.75% 20225 | 2,910 | 2,972 |
Petsmart, Inc. 7.125% 20235 | 2,770 | 1,655 |
Petsmart, Inc. 5.875% 20255 | 11,175 | 8,633 |
Petsmart, Inc. 8.875% 20255 | 5,015 | 3,047 |
Petsmart, Inc., Term Loan B-2, (3-month USD-LIBOR + 3.00%) 4.57% 20222,3,4 | 1,952 | 1,573 |
Sally Holdings LLC and Sally Capital Inc. 5.625% 2025 | 5,300 | 5,300 |
Sally Holdings LLC and Sally Capital Inc., Term Loan, (3-month USD-LIBOR + 4.50%) 4.50% 20242,3 | 130 | 130 |
Schaeffler Verwaltungs 4.75% 20265,7 | 1,350 | 1,374 |
Scientific Games Corp. 6.25% 2020 | 1,240 | 1,260 |
Scientific Games Corp. 7.00% 20225 | 2,425 | 2,561 |
Scientific Games Corp. 10.00% 2022 | 262 | 289 |
Scientific Games Corp. 5.00% 20255 | 890 | 894 |
Service Corp. International 5.375% 2024 | 245 | 259 |
Service Corp. International 4.625% 2027 | 1,040 | 1,058 |
Sirius XM Radio Inc 3.875% 20225 | 1,875 | 1,889 |
Sirius XM Radio Inc 5.375% 20255 | 790 | 825 |
Six Flags Entertainment Corp. 4.875% 20245 | 2,500 | 2,544 |
Sotheby’s 5.25% 20225 | 1,525 | 1,573 |
Sotheby’s 4.875% 20255 | 6,870 | 6,793 |
Tenneco Inc. 5.00% 2026 | 1,050 | 1,079 |
TI Automotive Ltd. 8.75% 20235 | 1,119 | 1,206 |
Univision Communications Inc. 5.125% 20235 | 2,975 | 2,975 |
Univision Communications Inc. 5.125% 20255 | 700 | 684 |
American Funds Insurance Series — High-Income Bond Fund — Page 141 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Consumer discretionary (continued) | Principal amount (000) | Value (000) |
Warner Music Group 5.625% 20225 | $2,114 | $2,185 |
Warner Music Group 5.00% 20235 | 2,670 | 2,773 |
Warner Music Group 4.875% 20245 | 1,500 | 1,552 |
Wynn Las Vegas, LLC and Wynn Capital Corp. 4.25% 20235 | 2,823 | 2,883 |
Wynn Las Vegas, LLC and Wynn Capital Corp. 5.50% 20255 | 6,525 | 6,737 |
Wynn Las Vegas, LLC and Wynn Capital Corp. 5.25% 20275 | 725 | 736 |
ZF Friedrichshafen AG 4.75% 20255 | 1,510 | 1,604 |
176,272 | ||
Materials 12.00% | ||
AK Steel Holding Corp. 7.625% 2021 | 2,000 | 2,085 |
AK Steel Holding Corp. 6.375% 2025 | 1,325 | 1,318 |
Aleris International, Inc. 7.875% 2020 | 2,635 | 2,622 |
Aleris International, Inc. 9.50% 20215 | 980 | 1,039 |
ArcelorMittal 6.125% 2025 | 500 | 578 |
Ardagh Group SA 7.125% 20237 | 450 | 471 |
Ardagh Packaging Finance 6.00% 20255 | 2,080 | 2,194 |
Axalta Coating Systems LLC 4.875% 20245 | 1,450 | 1,526 |
Ball Corp. 4.375% 2020 | 1,775 | 1,844 |
Ball Corp. 5.25% 2025 | 805 | 878 |
Berry Plastics Corp. 5.50% 2022 | 820 | 846 |
Building Materials Corp. 6.00% 20255 | 1,750 | 1,877 |
BWAY Holding Co. 7.25% 20255 | 3,525 | 3,648 |
Bway Parent Co. Inc., Term Loan, (3-month USD-LIBOR + 3.25%) 4.599% 20242,3,4 | 339 | 341 |
Bway Parent Co. Inc. 5.50% 20245 | 990 | 1,032 |
CEMEX SAB de CV 7.75% 20265 | 1,725 | 1,958 |
CF Industries, Inc. 3.45% 2023 | 75 | 74 |
CF Industries, Inc. 4.50% 20265 | 720 | 752 |
CF Industries, Inc. 4.95% 2043 | 3,110 | 2,954 |
CF Industries, Inc. 5.375% 2044 | 165 | 164 |
Chemours Co. 6.625% 2023 | 2,410 | 2,561 |
Cleveland-Cliffs Inc. 4.875% 20245 | 1,800 | 1,800 |
Cliffs Natural Resources Inc. 5.75% 20255 | 14,550 | 13,932 |
Cliffs Natural Resources Inc. 6.25% 2040 | 1,735 | 1,366 |
Commercial Metals Co. 5.375% 2027 | 1,200 | 1,227 |
Consolidated Energy Finance SA 6.875% 20255 | 2,570 | 2,731 |
Constellium NV 5.875% 20265 | 1,200 | 1,226 |
CVR Partners, LP 9.25% 20235 | 320 | 346 |
First Quantum Minerals Ltd. 7.00% 20215 | 8,505 | 8,845 |
First Quantum Minerals Ltd. 7.25% 20225 | 2,675 | 2,818 |
First Quantum Minerals Ltd. 7.25% 20235 | 1,225 | 1,323 |
First Quantum Minerals Ltd. 7.50% 20255 | 12,400 | 13,500 |
Flex Acquisition Company, Inc. 6.875% 20255 | 2,075 | 2,153 |
FMG Resources 9.75% 20225 | 4,905 | 5,440 |
Freeport-McMoRan Inc. 3.55% 2022 | 6,715 | 6,656 |
Freeport-McMoRan Inc. 3.875% 2023 | 500 | 500 |
Freeport-McMoRan Inc. 6.875% 2023 | 1,000 | 1,095 |
FXI Holdings, Inc. 7.875% 20245 | 830 | 830 |
Georgia Gulf Corp. 4.625% 2021 | 3,325 | 3,425 |
Georgia Gulf Corp. 4.875% 2023 | 800 | 829 |
H.I.G. Capital, LLC 6.75% 20245 | 3,574 | 3,574 |
Hexion Inc. 6.625% 2020 | 2,250 | 2,031 |
Hexion Inc. 10.375% 20225 | 575 | 538 |
Huntsman International LLC 4.875% 2020 | 2,470 | 2,578 |
American Funds Insurance Series — High-Income Bond Fund — Page 142 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Materials (continued) | Principal amount (000) | Value (000) |
INEOS Group Holdings SA 5.625% 20245 | $875 | $914 |
Nova Chemicals Corp 4.875% 20245 | 2,525 | 2,525 |
Nova Chemicals Corp 5.25% 20275 | 1,100 | 1,100 |
Novelis Corp. 6.25% 20245 | 760 | 798 |
Novelis Corp. 5.875% 20265 | 2,195 | 2,244 |
Olin Corp. 5.125% 2027 | 600 | 633 |
Owens-Illinois, Inc. 5.00% 20225 | 560 | 582 |
Owens-Illinois, Inc. 5.875% 20235 | 2,660 | 2,871 |
Owens-Illinois, Inc. 6.375% 20255 | 2,125 | 2,379 |
Plastipak Holdings, Inc., Term Loan, (3-month USD-LIBOR + 2.75%) 4.45% 20242,3,4 | 329 | 332 |
Plastipak Holdings, Inc. 6.25% 20255 | 1,145 | 1,182 |
Platform Specialty Products Corp. 6.50% 20225 | 1,525 | 1,578 |
Platform Specialty Products Corp. 5.875% 20255 | 4,260 | 4,233 |
PQ Group Holdings Inc. 5.75% 20255 | 1,485 | 1,515 |
Rayonier Advanced Materials Inc. 5.50% 20245 | 1,860 | 1,862 |
Reynolds Group Inc. 5.75% 20203 | 2,127 | 2,162 |
Reynolds Group Inc. 7.00% 20245 | 3,255 | 3,492 |
Ryerson Inc. 11.00% 20225 | 6,336 | 7,104 |
Scotts Miracle-Gro Co. 5.25% 2026 | 650 | 683 |
Sealed Air Corp. 5.25% 20235 | 930 | 995 |
Sealed Air Corp. 5.125% 20245 | 640 | 688 |
SPCM SA 4.875% 20255 | 1,000 | 1,011 |
Summit Materials, Inc. 6.125% 2023 | 350 | 366 |
Summit Materials, Inc. 5.125% 20255 | 4,890 | 5,000 |
SunCoke Energy Partners, LP 7.50% 20255 | 1,950 | 2,048 |
Teck Resources Ltd. 3.75% 2023 | 1,000 | 1,006 |
Trident Merger Sub, Inc. 6.625% 20255 | 1,000 | 1,000 |
Trinseo SA 5.375% 20255 | 820 | 851 |
Tronox Ltd. 5.75% 20255 | 1,280 | 1,318 |
United States Steel Corp. 7.375% 2020 | 925 | 1,008 |
United States Steel Corp. 6.875% 2025 | 1,325 | 1,390 |
Vale SA 6.875% 2039 | 805 | 991 |
Valvoline Inc. 4.375% 2025 | 1,230 | 1,244 |
Venator Materials 5.75% 20255 | 3,585 | 3,800 |
Warrior Met Coal, Inc. 8.00% 20245 | 3,325 | 3,441 |
Zekelman Industries Inc. 9.875% 20235 | 520 | 586 |
174,457 | ||
Telecommunication services 9.34% | ||
Altice NV 6.625% 20235 | 835 | 876 |
Altice NV 5.50% 20265 | 1,300 | 1,328 |
Altice NV 7.50% 20265 | 1,250 | 1,334 |
CenturyLink, Inc. 6.75% 2023 | 4,850 | 4,771 |
CenturyLink, Inc. 7.50% 2024 | 1,300 | 1,300 |
Cequel Communications Holdings I, LLC and Cequel Capital Corp. 6.375% 20205 | 5,367 | 5,461 |
Colorado Buyer Inc., Term Loan, (3-month USD-LIBOR + 7.25%) 8.63% 20252,3,4 | 1,063 | 1,078 |
Digicel Group Ltd. 8.25% 20205 | 1,450 | 1,430 |
Frontier Communications Corp. 8.50% 2020 | 3,000 | 2,498 |
Frontier Communications Corp. 8.875% 2020 | 2,875 | 2,422 |
Frontier Communications Corp. 9.25% 2021 | 1,275 | 1,007 |
Frontier Communications Corp. 10.50% 2022 | 4,255 | 3,229 |
Frontier Communications Corp. 11.00% 2025 | 11,850 | 8,769 |
Inmarsat PLC 4.875% 20225 | 3,575 | 3,584 |
Inmarsat PLC 6.50% 20245 | 4,775 | 4,859 |
American Funds Insurance Series — High-Income Bond Fund — Page 143 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Telecommunication services (continued) | Principal amount (000) | Value (000) |
Intelsat Jackson Holding Co. 7.25% 2020 | $2,975 | $2,811 |
Intelsat Jackson Holding Co. 5.50% 2023 | 1,500 | 1,230 |
Intelsat Jackson Holding Co. 6.625% 20242,3 | 3,450 | 3,495 |
Intelsat Jackson Holding Co. 8.00% 20245 | 3,600 | 3,798 |
Level 3 Communications, Inc. 5.125% 2023 | 2,150 | 2,161 |
Ligado Networks, Term Loan, (3-month USD-LIBOR + 8.75%) 10.07% 2020 (100% PIK)2,3,4,7 | 8,690 | 8,082 |
Neptune Finco Corp. (Altice NV) 6.625% 20255 | 3,050 | 3,309 |
Numericable Group SA 6.00% 20225 | 675 | 684 |
Numericable Group SA 7.375% 20265 | 525 | 543 |
SoftBank Group Corp. 4.50% 20205 | 8,550 | 8,755 |
Softbank Group Corp., junior subordinated 6.875% (undated) | 1,550 | 1,572 |
Sprint Capital Corp. 8.75% 2032 | 1,025 | 1,166 |
Sprint Corp. 7.25% 2021 | 4,265 | 4,526 |
Sprint Corp. 11.50% 2021 | 5,880 | 7,130 |
Sprint Corp. 7.875% 2023 | 3,305 | 3,528 |
Sprint Corp. 7.125% 2024 | 2,025 | 2,066 |
Sprint Corp. 6.875% 2028 | 4,700 | 4,741 |
T-Mobile US, Inc. 6.375% 2025 | 2,675 | 2,869 |
T-Mobile US, Inc. 6.50% 2026 | 900 | 984 |
Trilogy International Partners, LLC 8.875% 20225 | 4,700 | 4,829 |
Wind Tre SpA 5.00% 20265 | 6,675 | 6,381 |
Windstream Holdings, Inc. 7.75% 2020 | 350 | 298 |
Windstream Holdings, Inc. 8.75% 20245 | 7,133 | 5,020 |
Zayo Group Holdings, Inc. 6.375% 2025 | 2,225 | 2,361 |
Zayo Group Holdings, Inc. 5.75% 20275 | 3,200 | 3,272 |
Ziggo Bond Finance BV 5.875% 20255 | 950 | 941 |
Ziggo Bond Finance BV 5.50% 20275 | 5,225 | 5,232 |
135,730 | ||
Industrials 8.54% | ||
ACCO Brands Corp. 5.25% 20245 | 1,190 | 1,226 |
Allison Transmission Holdings, Inc. 5.00% 20245 | 3,150 | 3,256 |
Allison Transmission Holdings, Inc. 4.75% 20275 | 720 | 726 |
APX Group, Inc. 8.75% 2020 | 1,685 | 1,725 |
APX Group, Inc. 7.625% 2023 | 2,410 | 2,561 |
ARAMARK Corp. 5.125% 2024 | 2,460 | 2,588 |
Ashtead Group PLC 4.125% 20255 | 920 | 930 |
Ashtead Group PLC 4.375% 20275 | 1,530 | 1,557 |
Associated Materials, LLC 9.00% 20245 | 7,125 | 7,713 |
Avis Budget Group, Inc. 5.50% 2023 | 2,030 | 2,088 |
Beacon Roofing Supply, Inc. 4.875% 20255 | 2,675 | 2,698 |
Bohai Financial Investment Holding Co., Ltd. 5.25% 20225 | 675 | 673 |
Bohai Financial Investment Holding Co., Ltd. 4.50% 20235 | 925 | 886 |
Bohai Financial Investment Holding Co., Ltd. 5.50% 20245 | 1,625 | 1,617 |
Brand Energy 8.5% 20255 | 6,005 | 6,320 |
Builders FirstSource, Inc. 5.625% 20245 | 4,835 | 5,050 |
CD&R Waterworks Merger Sub, LLC, Term Loan B, (3-month USD-LIBOR + 3.00%) 4.455% 20242,3,4,5 | 700 | 705 |
CD&R Waterworks Merger Sub, LLC 6.125% 20255 | 2,190 | 2,228 |
CEVA Group PLC, Term Loan B, (3-month USD-LIBOR + 5.50%) 6.878% 20212,3,4 | 590 | 564 |
CEVA Group PLC 9.00% 20215 | 1,700 | 1,556 |
Cloud Crane LLC 10.125% 20245 | 1,175 | 1,328 |
CNH Capital LLC 4.875% 2021 | 350 | 368 |
Continental Airlines, Inc., Series 2000-2, Class B, 8.307% 20193 | 31 | 32 |
American Funds Insurance Series — High-Income Bond Fund — Page 144 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Industrials (continued) | Principal amount (000) | Value (000) |
Continental Airlines, Inc., Series 1999-1, Class A, 6.545% 20203 | $190 | $194 |
Corporate Risk Holdings LLC 9.50% 20195 | 12,782 | 13,373 |
Corporate Risk Holdings LLC 13.50% 2020 (100% PIK)5,7,8,9 | 1,112 | 1,190 |
Covanta Holding Corp. 5.875% 2024 | 505 | 514 |
DAE Aviation Holdings, Inc. 10.00% 20235 | 7,065 | 7,771 |
Deck Chassis Acquisition Inc. 10.00% 20235 | 3,940 | 4,403 |
Euramax International, Inc. 12.00% 20205 | 2,850 | 3,092 |
Hardwoods Acquisition Inc 7.50% 20215 | 2,330 | 2,155 |
HD Supply, Inc. 5.75% 20245 | 650 | 692 |
Hertz Global Holdings Inc. 7.625% 20225 | 4,250 | 4,462 |
JELD-WEN Holding, Inc. 4.625% 20255 | 535 | 540 |
JELD-WEN Holding, Inc. 4.875% 20275 | 2,155 | 2,182 |
KAR Auction Services, Inc. 5.125% 20255 | 1,860 | 1,911 |
Kratos Defense & Security Solutions, Inc. 6.50% 20255 | 1,005 | 1,046 |
LSC Communications, Inc. 8.75% 20235 | 3,205 | 3,305 |
Multi-Color Corp. 4.875% 20255 | 1,810 | 1,821 |
Navios Maritime Acquisition Corp. and Navios Acquisition Finance (US) Inc. 8.125% 20215 | 1,250 | 1,066 |
Navistar International Corp., Term Loan, (3-month USD-LIBOR + 4.75%) 4.90% 20242,3,4 | 1,105 | 1,112 |
Navistar International Corp. 6.625% 20255 | 970 | 1,015 |
Nielsen Finance LLC and Nielsen Finance Co. 5.00% 20225 | 650 | 670 |
Ply Gem Industries, Inc. 6.50% 2022 | 1,275 | 1,328 |
Prime Security Services Borrower, LLC 9.25% 20235 | 3,825 | 4,255 |
PrimeSource Building Products Inc 9.00% 20235 | 171 | 182 |
R.R. Donnelley & Sons Co. 7.875% 2021 | 1,700 | 1,777 |
R.R. Donnelley & Sons Co. 6.50% 2023 | 2,400 | 2,328 |
Rexnord Corp. 4.875% 20255 | 2,610 | 2,643 |
Sensata Technologies Holding NV 6.25% 20265 | 1,000 | 1,093 |
TransDigm Inc. 5.50% 2020 | 1,725 | 1,749 |
United Rentals, Inc. 4.625% 2025 | 3,630 | 3,666 |
United Rentals, Inc. 4.875% 2028 | 1,170 | 1,179 |
Virgin Australia Holdings Ltd. 8.50% 20195 | 2,125 | 2,216 |
Virgin Australia Holdings Ltd. 7.875% 20215 | 800 | 826 |
124,151 | ||
Information technology 8.03% | ||
Alcatel-Lucent USA Inc. 6.45% 2029 | 1,800 | 1,958 |
Almonde Inc., Term Loan B, (3-month USD-LIBOR + 3.50%) 4.979% 20242,3,4 | 698 | 701 |
Almonde Inc., Term Loan, (3-month USD-LIBOR + 7.25%) 8.729% 20252,3,4 | 4,375 | 4,400 |
Applied Systems, Inc., Term Loan, (3-month USD-LIBOR + 3.25%) 4.943% 20242,3,4 | 424 | 429 |
Applied Systems, Inc., Term Loan, (3-month USD-LIBOR + 7.00%) 8.693% 20252,3,4 | 1,925 | 1,997 |
BMC Software, Inc. 9.00% 20195,7 | 930 | 933 |
BMC Software, Inc. 8.125% 20215 | 5,250 | 5,309 |
Camelot Finance SA 7.875% 20245 | 5,630 | 6,024 |
Cardtronics Inc 5.50% 20255 | 1,775 | 1,611 |
EchoStar Corp. 6.625% 2026 | 2,175 | 2,284 |
First Data Corp. 5.375% 20235 | 2,775 | 2,895 |
First Data Corp. 7.00% 20235 | 3,805 | 4,033 |
First Data Corp. 5.00% 20245 | 1,100 | 1,136 |
First Data Corp. 5.75% 20245 | 2,525 | 2,632 |
Gartner, Inc. 5.125% 20255 | 1,500 | 1,571 |
Genesys Telecommunications Laboratories, Inc. 10.00% 20245 | 4,200 | 4,599 |
Genesys Telecommunications Laboratories, Inc., Term Loan B2, (3-month USD-LIBOR + 3.75%) 5.443% 20232,3,4 | 569 | 573 |
Gogo Inc. 12.50% 20225 | 11,050 | 12,500 |
American Funds Insurance Series — High-Income Bond Fund — Page 145 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Information technology (continued) | Principal amount (000) | Value (000) |
GTT Communications, Inc. 7.875% 20245 | $1,650 | $1,745 |
Infor (US), Inc. 6.50% 2022 | 3,725 | 3,874 |
Infor Software 7.125% 20215,7 | 5,785 | 5,944 |
Internet Brands, Inc., Term Loan, (3-month USD-LIBOR + 3.75%) 5.338% 20242,3,4 | 1,561 | 1,567 |
Internet Brands, Inc., Term Loan, (3-month USD-LIBOR + 7.50%) 9.088% 20252,3,4 | 2,475 | 2,492 |
Itron, Inc. 5.00% 20265 | 400 | 403 |
j2 Global, Inc. 6.00% 20255 | 1,130 | 1,195 |
Kronos Inc., Term Loan B, (3-month USD-LIBOR + 8.25%) 9.627% 20242,3,4 | 7,870 | 8,187 |
Match Group, Inc. 5.00% 20275 | 1,050 | 1,068 |
McAfee, LLC, Term Loan, (3-month USD-LIBOR + 4.50%) 6.069% 20242,3,4 | 3,915 | 3,908 |
McAfee, LLC, Term Loan, (3-month USD-LIBOR + 8.50%) 10.069% 20252,3,4 | 875 | 879 |
Mitchell International, Inc., Term Loan B, (3-month USD-LIBOR + 7.25%) 8.943% 20252,3,4 | 2,050 | 2,078 |
PE Cortes NP Holdings LLC 12.00% 20225,7 | 1,375 | 1,483 |
PE Cortes NP Holdings LLC 9.25% 20245 | 1,825 | 1,957 |
Qorvo, Inc. 7.00% 2025 | 1,275 | 1,430 |
Solera Holdings, Inc. 10.50% 20245 | 3,150 | 3,559 |
Symantec Corp 5.00% 20255 | 650 | 678 |
Tempo Acquisition LLC 6.75% 20255 | 1,650 | 1,683 |
Unisys Corp. 10.75% 20225 | 7,275 | 8,166 |
Vantiv, Inc. 4.375% 20255 | 3,575 | 3,629 |
VeriSign, Inc. 5.25% 2025 | 2,320 | 2,537 |
VeriSign, Inc. 4.75% 2027 | 1,900 | 1,952 |
Western Digital Corp. 10.50% 2024 | 600 | 697 |
116,696 | ||
Utilities 4.10% | ||
AES Corp. 8.00% 2020 | 701 | 789 |
AES Corp. 7.375% 2021 | 5,925 | 6,680 |
AES Corp. 4.875% 2023 | 600 | 614 |
AES Corp. 5.50% 2024 | 2,025 | 2,116 |
AES Corp. 7.75% 20245 | 1,000 | 1,086 |
AES Corp. 5.50% 2025 | 3,475 | 3,666 |
AES Corp. 6.00% 2026 | 4,190 | 4,546 |
AES Corp. 5.125% 2027 | 1,515 | 1,595 |
AmeriGas Partners, LP 5.50% 2025 | 3,150 | 3,197 |
Calpine Corp. 6.00% 20225 | 425 | 439 |
Calpine Corp. 5.375% 2023 | 2,910 | 2,845 |
Calpine Corp. 5.875% 20245 | 1,020 | 1,040 |
Calpine Corp. 5.75% 2025 | 1,385 | 1,321 |
Calpine Corp. 5.25% 20265 | 5,525 | 5,435 |
Dynegy Finance Inc. 7.375% 2022 | 3,485 | 3,685 |
Dynegy Finance Inc. 7.625% 2024 | 260 | 280 |
Emera Inc. 6.75% 2076 | 4,200 | 4,746 |
Enel Società per Azioni 8.75% 20735 | 2,000 | 2,493 |
Mississippi Power Co. 4.25% 2042 | 930 | 912 |
NRG Energy, Inc. 6.25% 2022 | 4,885 | 5,105 |
NRG Energy, Inc. 7.25% 2026 | 500 | 547 |
NRG Energy, Inc. 6.625% 2027 | 2,240 | 2,380 |
Talen Energy Corp. 4.60% 2021 | 295 | 271 |
Talen Energy Corp. 9.50% 20225 | 495 | 510 |
Talen Energy Corp. 10.50% 20265 | 1,270 | 1,262 |
TerraForm Power, Inc. 4.25% 20235 | 2,000 | 1,988 |
59,548 |
American Funds Insurance Series — High-Income Bond Fund — Page 146 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Financials 3.23% | Principal amount (000) | Value (000) |
Acrisure LLC 7.00% 20255 | $1,545 | $1,493 |
Ally Financial Inc. 8.00% 2020 | 1,915 | 2,116 |
Bank of America Corp., Series M, junior subordinated 8.125% noncumulative (undated) | 975 | 988 |
Carlyle Group LP 6.375% 20225 | 1,090 | 1,143 |
CIT Group Inc. 3.875% 2019 | 6,835 | 6,921 |
General Motors Acceptance Corp. 7.50% 2020 | 1,470 | 1,632 |
Hub International Ltd., 7.875% 20215 | 1,920 | 2,002 |
Icahn Enterprises Finance Corp. 6.25% 2022 | 2,625 | 2,691 |
International Lease Finance Corp. 8.25% 2020 | 875 | 1,007 |
Jefferies Finance, LLC 7.25% 20245 | 1,850 | 1,903 |
JPMorgan Chase & Co., Series I, junior subordinated 7.90% 2049 | 1,695 | 1,718 |
Ladder Capital Corp. 5.25% 20255 | 850 | 848 |
LPL Financial Holdings Inc. 5.75% 20255 | 2,600 | 2,652 |
MGIC Investment Corp. 5.75% 2023 | 1,025 | 1,124 |
Navient Corp. 4.875% 2019 | 3,100 | 3,160 |
Navient Corp. 6.50% 2022 | 4,840 | 5,083 |
Navient Corp. 5.50% 2023 | 3,935 | 3,940 |
Navient Corp. 6.125% 2024 | 75 | 76 |
Navient Corp. 6.75% 2025 | 1,800 | 1,854 |
Springleaf Finance Corp. 8.25% 2020 | 1,175 | 1,295 |
Starwood Property Trust, Inc. 5.00% 2021 | 1,650 | 1,716 |
Wells Fargo & Co., Series K, junior subordinated 7.98% 2049 | 1,610 | 1,638 |
47,000 | ||
Real estate 2.11% | ||
Communications Sales & Leasing, Inc. 6.00% 20235 | 775 | 763 |
Crescent Resources 8.875% 20215 | 1,211 | 1,290 |
Equinix, Inc. 5.75% 2025 | 275 | 293 |
Equinix, Inc. 5.875% 2026 | 1,725 | 1,856 |
Equinix, Inc. 5.375% 2027 | 1,750 | 1,877 |
Five Point Holdings LLC 7.875% 20255 | 1,950 | 1,989 |
Howard Hughes Corp. 5.375% 20255 | 4,950 | 5,086 |
Iron Mountain Inc. 6.00% 2023 | 350 | 367 |
Iron Mountain Inc. 5.75% 2024 | 5,975 | 6,080 |
Iron Mountain Inc. 4.875% 20275 | 135 | 136 |
Iron Mountain Inc. 5.25% 20285 | 1,500 | 1,500 |
Medical Properties Trust, Inc. 5.00% 2027 | 2,020 | 2,063 |
Realogy Corp. 4.50% 20195 | 1,825 | 1,857 |
Realogy Corp. 4.875% 20235 | 4,325 | 4,293 |
SBA Communications Corp. 4.00% 20225 | 510 | 513 |
SBA Communications Corp. 4.875% 2022 | 700 | 721 |
30,684 | ||
Consumer staples 2.05% | ||
Avon Products, Inc. 7.875% 20225 | 1,050 | 1,074 |
B&G Foods, Inc. 5.25% 2025 | 2,775 | 2,829 |
BJ’s Wholesale Club, Term Loan, (3-month USD-LIBOR + 7.50%) 8.953% 20252,3,4 | 3,915 | 3,831 |
Chobani LLC 7.50% 20255 | 1,855 | 1,973 |
Cott Beverages Inc. 5.50% 20255 | 1,170 | 1,207 |
First Quality Enterprises, Inc. 5.00% 20255 | 1,020 | 1,043 |
Herbalife Ltd., Term Loan, (3-month USD-LIBOR + 5.50%) 7.069% 20232,3,4 | 4,153 | 4,155 |
JBS USA LLC 5.875% 20245 | 1,250 | 1,214 |
Pilgrim’s Pride Corp. 5.75% 20255 | 2,145 | 2,215 |
Pinnacle Foods Inc. 5.875% 2024 | 800 | 850 |
American Funds Insurance Series — High-Income Bond Fund — Page 147 of 171
Bonds, notes & other debt instruments Corporate bonds & notes (continued) Consumer staples (continued) | Principal amount (000) | Value (000) |
Post Holdings, Inc. 8.00% 20255 | $1,550 | $1,749 |
Post Holdings, Inc. 5.00% 20265 | 1,840 | 1,815 |
Post Holdings, Inc. 5.625% 20285 | 1,855 | 1,864 |
Simmons Foods Inc. 5.75% 20245 | 1,450 | 1,439 |
Spectrum Brands Inc. 6.125% 2024 | 750 | 798 |
Vector Group Ltd. 6.125% 20255 | 1,750 | 1,816 |
29,872 | ||
Total corporate bonds & notes | 1,356,993 | |
U.S. Treasury bonds & notes 0.68% U.S. Treasury 0.68% | ||
U.S. Treasury 1.25% 2019 | 10,000 | 9,921 |
Total U.S. Treasury bonds & notes | 9,921 | |
Bonds & notes of governments & government agencies outside the U.S. 0.11% | ||
Argentine Republic 18.20% 2021 | ARS12,500 | 692 |
Argentine Republic (Badlar Private Banks ARS Index + 2.00%) 22.548% 20224 | 17,500 | 937 |
1,629 | ||
Municipals 0.12% Illinois 0.12% | ||
Board of Education of the City of Chicago, Unlimited Tax G.O. Bonds (Dedicated Rev.), Series 2009-E, 6.138% 2039 | $1,870 | 1,788 |
Total bonds, notes & other debt instruments (cost: $1,356,968,000) | 1,370,331 | |
Convertible bonds 0.40% Energy 0.08% | ||
Golar LNG Ltd., convertible notes 2.75% 20225 | 550 | 585 |
Weatherford International PLC, convertible notes 5.875% 2021 | 527 | 572 |
1,157 | ||
Consumer discretionary 0.06% | ||
DISH DBS Corp., convertible notes 3.375% 2026 | 760 | 829 |
Information technology 0.06% | ||
Weibo Corp., convertible notes 1.25% 20225 | 747 | 822 |
Health care 0.03% | ||
Insulet Corp., convertible notes 1.375% 20245 | 500 | 508 |
Miscellaneous 0.17% | ||
Other convertible bonds in initial period of acquisition | 2,544 | |
Total convertible bonds (cost: $5,582,000) | 5,860 |
American Funds Insurance Series — High-Income Bond Fund — Page 148 of 171
Convertible stocks 0.91% Industrials 0.68% | Shares | Value (000) |
Associated Materials, LLC, 14.00% convertible preferred 20208,9 | 4,850 | $5,553 |
CEVA Group PLC, Series A-1, convertible preferred, (3-month USD-LIBOR + 3.00%) 4.731%6,8,10 | 4,788 | 3,196 |
CEVA Group PLC, Series A-2, convertible preferred, (3-month USD-LIBOR + 2.00%) 3.731%6,8,10 | 2,212 | 1,061 |
9,810 | ||
Information technology 0.04% | ||
Alibaba Mandatory Exchangeable Trust, convertible preferred 20195 | 3,300 | 643 |
Telecommunication services 0.01% | ||
Frontier Communications Corp., Series A, convertible preferred 2018 | 10,000 | 108 |
Miscellaneous 0.18% | ||
Other convertible stocks in initial period of acquisition | 2,619 | |
Total convertible stocks (cost: $15,788,000) | 13,180 | |
Common stocks 0.75% Information technology 0.26% | ||
Corporate Risk Holdings I, Inc.6,8,9,10 | 218,504 | 3,863 |
Corporate Risk Holdings Corp.6,8,9,10 | 1,104 | — |
3,863 | ||
Industrials 0.19% | ||
CEVA Group PLC6,8,10 | 5,622 | 2,698 |
Atrium Corp.5,8,9,10 | 361 | 11 |
Quad/Graphics, Inc., Class A | 90 | 2 |
2,711 | ||
Energy 0.08% | ||
Ascent Resources - Utica, LLC, Class A6,8,9,10 | 6,297,894 | 1,134 |
Health care 0.03% | ||
Rotech Healthcare Inc.6,8,9,10 | 201,793 | 404 |
Telecommunication services 0.02% | ||
NII Holdings, Inc.10 | 660,555 | 280 |
Consumer discretionary 0.00% | ||
Adelphia Recovery Trust, Series Arahova8,9,10 | 388,601 | 2 |
Adelphia Recovery Trust, Series ACC-18,9,10 | 449,306 | — |
2 | ||
Miscellaneous 0.17% | ||
Other common stocks in initial period of acquisition | 2,462 | |
Total common stocks (cost: $26,386,000) | 10,856 |
American Funds Insurance Series — High-Income Bond Fund — Page 149 of 171
Rights & warrants 0.00% Utilities 0.00% | Shares | Value (000) |
Vistra Energy Corp., rights5,10,11 | 41,035 | $36 |
Industrials 0.00% | ||
Associated Materials, LLC, warrants, expire 20238,9,10 | 68,899 | — |
Total rights & warrants (cost: $63,000) | 36 | |
Short-term securities 1.68% | Principal amount (000) | |
General Electric Co. 1.42% due 1/2/2018 | $13,600 | 13,598 |
U.S. Treasury Bills 1.11% due 1/11/2018 | 10,800 | 10,796 |
Total short-term securities (cost: $24,396,000) | 24,394 | |
Total investment securities 97.99% (cost: $1,429,183,000) | 1,424,657 | |
Other assets less liabilities 2.01% | 29,223 | |
Net assets 100.00% | $1,453,880 |
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2017 (000) | Upfront payments/ receipts (000) | Unrealized appreciation (depreciation) at 12/31/2017 (000) |
3-month USD-LIBOR | 2.0745% | 11/21/2026 | $18,600 | $431 | $— | $431 |
3-month USD-LIBOR | 2.2825% | 4/13/2027 | 10,700 | 81 | — | 81 |
2.2865% | 3-month USD-LIBOR | 10/2/2027 | 10,100 | (90) | — | (90) |
$— | $422 |
Credit default swaps
Centrally cleared credit default swaps on credit indices — buy protection
Receive | Pay/ Payment frequency | Expiration date | Notional (000) | Value at 12/31/2017 (000) | Upfront payments (000) | Unrealized depreciation at 12/31/2017 (000) |
CDX.NA.HY.29 | 5.00%/Quarterly | 12/20/2022 | $108,000 | $(8,915) | $(8,496) | $(419) |
1 | Scheduled interest and/or principal payment was not received. |
2 | Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $89,280,000, which represented 6.14% 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 was $745,292,000, which represented 51.26% of the net assets of the fund. |
6 | 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 on the next page. |
7 | Payment in kind; the issuer has the option of paying additional securities in lieu of cash. Most recent payment was 100% cash unless otherwise noted. |
8 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous,“ was $32,234,000, which represented 2.22% of the net assets of the fund. |
9 | Value determined using significant unobservable inputs. |
10 | Security did not produce income during the last 12 months. |
11 | Purchased on a TBA basis. |
American Funds Insurance Series — High-Income Bond Fund — Page 150 of 171
Private placement securities | Acquisition date(s) | Cost (000) | Value (000) | Percent of net assets |
Blackstone CQP Holdco LP, 6.50% 2021 | 3/6/2017 | $20,695 | $21,099 | 1.45% |
Blackstone CQP Holdco LP, 6.00% 2021 | 8/9/2017 | 1,600 | 1,612 | .11 |
Corporate Risk Holdings I, Inc. | 8/31/2015 | 2,428 | 3,863 | .27 |
Corporate Risk Holdings Corp. | 8/31/2015 | — | — | .00 |
CEVA Group PLC, Series A-1, convertible preferred, (3-month USD-LIBOR + 3.00%) 4.359% | 5/2/2013-8/22-2014 | 4,855 | 3,196 | .22 |
CEVA Group PLC | 5/2/2013 | 6,128 | 2,698 | .19 |
CEVA Group PLC, Series A-2, convertible preferred, (3-month USD-LIBOR + 2.00%) 3.359% | 5/2/2013 | 2,214 | 1,061 | .07 |
Ascent Resources - Utica, LLC, Class A | 11/15/2016 | 302 | 1,134 | .08 |
Rotech Healthcare Inc. | 9/26/2013 | 4,331 | 404 | .02 |
Liberman Broadcasting, Inc., warrants, expire 2022 | 12/13/2012-11/26/2014 | — | — | .00 |
Total private placement securities | $42,553 | $35,067 | 2.41% |
Key to abbreviations and symbol |
ARS = Argentine pesos |
G.O. = General Obligation |
LIBOR = London Interbank Offered Rate |
Rev. = Revenue |
TBA = To-be-announced |
USD/$ = U.S. dollars |
American Funds Insurance Series — High-Income Bond Fund — Page 151 of 171
Mortgage Fund
December 31, 2017
Bonds, notes & other debt instruments 95.14% Mortgage-backed obligations 63.46% Federal agency mortgage-backed obligations 60.15% | Principal amount (000) | Value (000) |
Fannie Mae 4.00% 20471 | $7,816 | $8,189 |
Fannie Mae 4.00% 20471 | 4,844 | 5,075 |
Fannie Mae 4.00% 20481,2 | 17,250 | 18,026 |
Fannie Mae 4.50% 20481,2 | 3,700 | 3,932 |
Fannie Mae 4.00% 20361 | 579 | 612 |
Fannie Mae 4.00% 20361 | 470 | 497 |
Fannie Mae 5.00% 20361 | 84 | 87 |
Freddie Mac 5.00% 20341 | 1,360 | 1,465 |
Freddie Mac 4.00% 20361 | 5,848 | 6,186 |
Freddie Mac 4.00% 20361 | 1,086 | 1,149 |
Freddie Mac 4.00% 20471 | 9,510 | 9,960 |
Freddie Mac 4.00% 20481,2 | 25,000 | 26,154 |
Freddie Mac 4.00% 20481,2 | 22,854 | 23,877 |
Freddie Mac Pool #760014 2.969% 20451,3 | 2,989 | 3,001 |
Freddie Mac, Series KJ02, Class A2, Multi Family 2.597% 20201 | 3,704 | 3,722 |
Freddie Mac, Series K031, Class A2, Multi Family 3.30% 20231,3 | 4,722 | 4,914 |
Freddie Mac, Series K032, Class A2, Multi Family 3.31% 20231,3 | 1,250 | 1,302 |
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-2, Class HA, 2.00% 20561 | 1,814 | 1,803 |
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-1, Class HA, 2.00% 20561 | 1,478 | 1,473 |
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-2, Class MA, 3.00% 20561 | 1,675 | 1,675 |
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-4, Class HT, 2.25% 20571 | 13,810 | 13,780 |
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-4, Class MT, 3.50% 20571 | 8,325 | 8,518 |
Government National Mortgage Assn. 3.75% 20341 | 1,323 | 1,382 |
Government National Mortgage Assn. 3.75% 20381 | 846 | 887 |
Government National Mortgage Assn. 3.75% 20391 | 912 | 957 |
Government National Mortgage Assn. 4.00% 20391 | 565 | 573 |
Government National Mortgage Assn. 6.00% 20391 | 281 | 315 |
Government National Mortgage Assn. 4.00% 20401 | 393 | 398 |
Government National Mortgage Assn. 5.50% 20401 | 2,246 | 2,499 |
Government National Mortgage Assn. 4.50% 20411 | 59 | 61 |
Government National Mortgage Assn. 5.00% 20411 | 1,269 | 1,356 |
Government National Mortgage Assn. 5.00% 20411 | 804 | 835 |
Government National Mortgage Assn. 6.50% 20411 | 650 | 715 |
Government National Mortgage Assn. 3.50% 20421 | 475 | 481 |
Government National Mortgage Assn. 3.50% 20421 | 315 | 326 |
Government National Mortgage Assn. 3.50% 20421 | 228 | 229 |
Government National Mortgage Assn. 3.50% 20431 | 2,453 | 2,558 |
Government National Mortgage Assn. 3.50% 20431 | 1,754 | 1,816 |
Government National Mortgage Assn. 3.50% 20431 | 1,714 | 1,783 |
Government National Mortgage Assn. 3.50% 20431 | 1,165 | 1,206 |
Government National Mortgage Assn. 3.50% 20431 | 1,104 | 1,143 |
Government National Mortgage Assn. 3.50% 20431 | 525 | 528 |
Government National Mortgage Assn. 3.50% 20431 | 218 | 226 |
Government National Mortgage Assn. 3.75% 20441 | 934 | 979 |
Government National Mortgage Assn. 4.25% 20441 | 1,764 | 1,867 |
American Funds Insurance Series — Mortgage Fund — Page 152 of 171
Bonds, notes & other debt instruments Mortgage-backed obligations (continued) Federal agency mortgage-backed obligations (continued) | Principal amount (000) | Value (000) |
Government National Mortgage Assn. 4.00% 20461 | $1,456 | $1,499 |
Government National Mortgage Assn. 4.00% 20471 | 17,763 | 18,613 |
Government National Mortgage Assn. 4.50% 20481,2 | 4,950 | 5,193 |
Government National Mortgage Assn. 4.685% 20651 | 1,006 | 1,045 |
Government National Mortgage Assn. 4.696% 20651 | 609 | 633 |
Government National Mortgage Assn. 4.737% 20651 | 1,697 | 1,769 |
Government National Mortgage Assn. 4.62% 20661 | 1,792 | 1,900 |
Government National Mortgage Assn. 5.20% 20661 | 202 | 207 |
Vendee Mortgage Trust, Series 2011-2, Class V, 3.75% 20281 | 4,544 | 4,557 |
Vendee Mortgage Trust, Series 2010-1, Class DA, 4.25% 20351 | 680 | 700 |
204,633 | ||
Collateralized mortgage-backed (privately originated) 3.28% | ||
Connecticut Avenue Securities, Series 2014-C02, Class 1M1, (1-month USD-LIBOR + 0.95%) 2.502% 20241,3 | 22 | 22 |
Finance of America Structured Securities Trust, Series 2017-HB1, Class A, 2.3207% 20271,4 | 563 | 567 |
Mill City Mortgage Trust, Series 2017-1, Class A1, 2.75% 20581,3,4 | 564 | 565 |
Mortgage Repurchase Agreement Financing Trust, Series 2017-1, Class A1, (1-month USD-LIBOR + 0.85%) 2.282% 20191,3,4 | 1,620 | 1,620 |
Nationstar HECM Loan Trust, Series 2016-3A, Class A, 2.013% 20261,4,5 | 261 | 261 |
Nationstar HECM Loan Trust, Series 2016-2A, Class A, 2.2394% 20261,3,4,5 | 236 | 236 |
Nationstar HECM Loan Trust, Series 2017-1A, Class A, 1.968 % 20271,4,5 | 294 | 293 |
Nationstar HECM Loan Trust, Series 2017-2A, Class A1, 2.0383% 20271,4,5 | 602 | 602 |
Towd Point Mortgage Trust, Series 2016-4, Class A1, 2.25% 20561,3,4 | 506 | 503 |
Towd Point Mortgage Trust, Series 2016-5, Class A1, 2.50% 20561,3,4 | 898 | 894 |
Towd Point Mortgage Trust, Series 2017-1, Class A1, 2.75% 20561,3,4 | 1,526 | 1,527 |
Towd Point Mortgage Trust, Series 2017-5, Class A1, 2.152% 20571,3,4 | 287 | 288 |
Towd Point Mortgage Trust, Series 2017-4, Class A1, 2.75% 20571,3,4 | 1,610 | 1,607 |
Towd Point Mortgage Trust, Series 2015-2, Class 2A11, 3.00% 20571,3,4 | 2,160 | 2,175 |
11,160 | ||
Commercial mortgage-backed securities 0.03% | ||
Citigroup Commercial Mortgage Trust, Series 2008-C7, Class A1A, 6.105% 20491,3 | 91 | 91 |
Total mortgage-backed obligations | 215,884 | |
U.S. Treasury bonds & notes 16.09% U.S. Treasury 10.57% | ||
U.S. Treasury 1.50% 2020 | 444 | 440 |
U.S. Treasury 2.00% 2021 | 300 | 299 |
U.S. Treasury 1.875% 2022 | 19,800 | 19,515 |
U.S. Treasury 1.875% 20226 | 5,000 | 4,941 |
U.S. Treasury 2.00% 2022 | 7,300 | 7,238 |
U.S. Treasury 2.125% 2022 | 1,000 | 996 |
U.S. Treasury 2.50% 2024 | 2,500 | 2,528 |
35,957 | ||
U.S. Treasury inflation-protected securities 5.52% | ||
U.S. Treasury Inflation-Protected Security 0.375% 20256,7 | 7,489 | 7,501 |
U.S. Treasury Inflation-Protected Security 2.125% 20417 | 124 | 163 |
U.S. Treasury Inflation-Protected Security 0.75% 20427 | 7,025 | 7,095 |
U.S. Treasury Inflation-Protected Security 1.375% 20447 | 3,466 | 4,004 |
18,763 | ||
Total U.S. Treasury bonds & notes | 54,720 |
American Funds Insurance Series — Mortgage Fund — Page 153 of 171
Bonds, notes & other debt instruments Federal agency bonds & notes 12.22% | Principal amount (000) | Value (000) |
Fannie Mae 1.875% 2022 | $3,000 | $2,961 |
Fannie Mae 2.00% 2022 | 18,800 | 18,656 |
Federal Home Loan Bank 1.375% 2021 | 3,000 | 2,940 |
Federal Home Loan Bank 1.875% 2021 | 10,000 | 9,912 |
United States Agency for International Development, Jordan (Kingdom of) 2.503% 2020 | 7,000 | 7,087 |
41,556 | ||
Asset-backed obligations 3.32% | ||
AmeriCredit Automobile Receivables Trust, Series 2014-3, Class B, 1.92% 20191 | 101 | 101 |
AmeriCredit Automobile Receivables Trust, Series 2017-1, Class A2A, 1.51% 20201 | 329 | 329 |
AmeriCredit Automobile Receivables Trust, Series 2017-2, Class A2A, 1.65% 20201 | 476 | 476 |
AmeriCredit Automobile Receivables Trust, Series 2014-1, Class C, 2.15% 20201 | 243 | 244 |
Angel Oak Capital Advisors, LLC, Series 2013-9A, Class A1R, CLO, (3-month USD-LIBOR + 1.01%) 2.373% 20251,3,4 | 250 | 250 |
BlueMountain CLO Ltd., Series 2013-4A, Class AR, (3-month USD-LIBOR + 1.01%) 2.369% 20251,3,4 | 300 | 301 |
BlueMountain CLO Ltd., Series 2014-2A, Class AR, (3-month USD LIBOR + 0.93%) 2.293% 20261,3,4 | 500 | 501 |
Consumer Loan Underlying Bond Credit, Series 2017-NP1, Class A, 2.39% 20231,4 | 168 | 169 |
CPS Auto Receivables Trust, Series 2015-A, Class A, 1.53% 20191,4 | 53 | 52 |
CPS Auto Receivables Trust, Series 2016-B, Class A, 2.07% 20191,4 | 48 | 48 |
CPS Auto Receivables Trust, Series 2016-A, Class A, 2.25% 20191,4 | 173 | 173 |
CPS Auto Receivables Trust, Series 2017-A, Class A, 1.68% 20201,4 | 323 | 322 |
CPS Auto Receivables Trust, Series 2017-C, Class A, 1.78% 20201,4 | 85 | 85 |
Drive Auto Receivables Trust, Series 2017-2, Class A2A, 1.63% 20191 | 307 | 306 |
Drive Auto Receivables Trust, Series 2017-1, Class A2A, 1.67% 20191 | 395 | 395 |
Drivetime Auto Owner Trust, Series 2017-1A, Class A, 1.56% 20201,4 | 199 | 199 |
Drivetime Auto Owner Trust, Series 2017-2A, Class A, 1.72% 20201,4 | 277 | 277 |
Emerson Park CLO Ltd, Series 2013-1A, Class A1AR, CLO, (3-month USD-LIBOR + 0.98%) 2.339% 20251,3,4 | 219 | 219 |
Exeter Automobile Receivables Trust, Series 2017-3A, Class A, 2.05% 20211,4 | 924 | 923 |
Hertz Vehicle Financing LLC, Rental Car Asset-backed Notes, Series 2015-1, Class A, 2.73% 20211,4 | 1,823 | 1,829 |
Palmer Square Ltd., Series 2013-1, Class A1R, (3-month USD-LIBOR + 0.97%) 2.386% 20251,3,4 | 185 | 186 |
Santander Drive Auto Receivables Trust, Series 2017-2, Class A2, 1.60% 20201 | 1,028 | 1,028 |
Santander Drive Auto Receivables Trust, Series 2015-2, Class B, 1.83% 20201 | 53 | 53 |
Santander Drive Auto Receivables Trust, Series 2015-4, Class B, 2.26% 20201 | 242 | 242 |
SLM Private Credit Student Loan Trust, Series 2008-9, Class A, (3-month USD-LIBOR + 1.50%) 2.867% 20231,3 | 229 | 234 |
SLM Private Credit Student Loan Trust, Series 2010-1, Class A, (1-month USD-LIBOR + 0.40%) 1.925% 20251,3 | 22 | 22 |
Sound Point CLO Ltd, Series 2013-2A, Class A1R, CLO, (3-month USD LIBOR + 0.99%) 2.349% 20251,3,4 | 226 | 226 |
Symphony CLO Ltd, Series 2013-12A, Class AR, CLO, (3-month USD-LIBOR + 1.03%) 2.389% 20251,3,4 | 360 | 360 |
Voya CLO Ltd., Series 2014-4A, Class A1R, CLO, (3-month USD-LIBOR + 0.95%) 2.309% 20261,3,4 | 450 | 451 |
Westlake Automobile Receivables Trust, Series 2017-1A, Class A2, 1.78% 20201,4 | 761 | 760 |
Westlake Automobile Receivables Trust, Series 2017-2A, Class A2A, 1.80% 20201,4 | 525 | 524 |
11,285 | ||
Corporate bonds & notes 0.05% Financials 0.05% | ||
Carlyle Investment Management (1-month USD-LIBOR + 2.00%) 3.354% 20191,3,4,5,8 | 187 | 187 |
Total corporate bonds & notes | 187 | |
Total bonds, notes & other debt instruments (cost: $322,647,000) | 323,632 | |
Short-term securities 27.27% | ||
Apple Inc. 1.22% due 1/12/20184 | 4,000 | 3,998 |
Bank of Tokyo-Mitsubishi UFJ, Ltd. 1.49% due 1/10/2018 | 7,000 | 6,996 |
CAFCO, LLC 1.39% due 2/2/20184 | 3,900 | 3,894 |
Eli Lilly and Co. 1.28% due 1/8/20184 | 9,000 | 8,996 |
American Funds Insurance Series — Mortgage Fund — Page 154 of 171
Short-term securities | Principal amount (000) | Value (000) |
Emerson Electric Co. 1.27% due 1/29/20184 | $5,500 | $5,493 |
Federal Farm Credit Banks 1.32% due 4/19/2018 | 5,000 | 4,978 |
Federal Home Loan Bank 1.15%–1.30% due 1/5/2018–2/14/2018 | 25,750 | 25,731 |
General Electric Co. 1.42% due 1/2/2018 | 6,000 | 5,999 |
National Rural Utilities Cooperative Finance Corp. 1.51% due 1/17/2018 | 5,000 | 4,996 |
Paccar Financial Corp. 1.26% due 1/12/2018 | 5,500 | 5,497 |
Private Export Funding Corp. 1.25% due 1/4/20184 | 8,210 | 8,208 |
Toronto-Dominion Bank 1.45% due 3/16/20184 | 8,000 | 7,971 |
Total short-term securities (cost: $92,772,000) | 92,757 | |
Total investment securities 122.41% (cost: $415,419,000) | 416,389 | |
Other assets less liabilities (22.41)% | (76,219) | |
Net assets 100.00% | $340,170 |
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount9 (000) | Value at 12/31/201710 (000) | Unrealized (depreciation) appreciation at 12/31/2017 (000) |
10 Year Ultra U.S. Treasury Note Futures | Long | 95 | March 2018 | $9,500 | $12,689 | $(73) |
20 Year U.S. Treasury Bond Futures | Long | 48 | March 2018 | 4,800 | 7,344 | 8 |
30 Year Ultra U.S. Treasury Bond Futures | Long | 11 | March 2018 | 1,100 | 1,844 | 13 |
5 Year U.S. Treasury Note Futures | Long | 1,136 | April 2018 | 113,600 | 131,962 | (580) |
$(632) |
American Funds Insurance Series — Mortgage Fund — Page 155 of 171
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2017 (000) | Upfront payments/ receipts (000) | Unrealized appreciation (depreciation) at 12/31/2017 (000) |
3-month USD-LIBOR | 1.217% | 9/22/2021 | $11,500 | $406 | $— | $406 |
3-month USD-LIBOR | 1.225% | 9/22/2021 | 11,500 | 402 | — | 402 |
3-month USD-LIBOR | 1.2796% | 10/11/2021 | 14,500 | 485 | — | 485 |
2.0135% | 3-month USD-LIBOR | 10/20/2021 | 30,000 | (202) | — | (202) |
2.012% | 3-month USD-LIBOR | 10/4/2022 | 9,000 | (91) | — | (91) |
2.00% | 3-month USD-LIBOR | 10/5/2022 | 41,500 | (441) | — | (441) |
2.1045% | 3-month USD-LIBOR | 10/31/2022 | 4,000 | (23) | — | (23) |
3-month USD-LIBOR | 2.24% | 12/5/2026 | 10,500 | 104 | — | 104 |
3-month USD-LIBOR | 2.27% | 12/5/2026 | 8,500 | 63 | — | 63 |
3-month USD-LIBOR | 3.34% | 6/27/2044 | 3,500 | (564) | — | (564) |
3-month USD-LIBOR | 3.206% | 7/31/2044 | 2,000 | (270) | — | (270) |
3-month USD-LIBOR | 3.238% | 8/8/2044 | 2,000 | (283) | — | (283) |
3-month USD-LIBOR | 3.2265% | 9/25/2044 | 3,000 | (418) | — | (418) |
3-month USD-LIBOR | 2.5055% | 1/9/2045 | 2,000 | 14 | — | 14 |
3-month USD-LIBOR | 2.454% | 1/15/2045 | 3,200 | 55 | — | 55 |
3-month USD-LIBOR | 2.52822% | 11/23/2045 | 3,560 | 6 | — | 6 |
3-month USD-LIBOR | 2.59125% | 12/16/2045 | 2,250 | (25) | — | (25) |
U.S. EFFR | 2.145% | 11/9/2047 | 2,200 | 4 | — | 4 |
U.S. EFFR | 2.153% | 11/10/2047 | 2,200 | —11 | — | —11 |
U.S. EFFR | 2.155% | 11/10/2047 | 1,280 | —11 | — | —11 |
U.S. EFFR | 2.17% | 11/13/2047 | 2,320 | (8) | — | (8) |
$— | $(786) |
1 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
2 | Purchased on a TBA basis. |
3 | Coupon rate may change periodically. |
4 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $57,740,000, which represented 16.97% of the net assets of the fund. |
5 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $1,579,000, which represented .46% of the net assets of the fund. |
6 | A portion of this security was pledged as collateral. The total value of pledged collateral was $7,383,000, which represented 2.17% of the net assets of the fund. |
7 | Index-linked bond whose principal amount moves with a government price index. |
8 | Value determined using significant unobservable inputs. |
9 | Notional amount is calculated based on the number of contracts and notional contract size. |
10 | Value is calculated based on the notional amount and current market price. |
11 | Amount less than one thousand. |
Key to abbreviations and symbol |
CLO = Collateralized Loan Obligations |
EFFR = Federal Funds Effective Rate |
LIBOR = London Interbank Offered Rate |
TBA = To-be-announced |
USD/$ = U.S. dollars |
American Funds Insurance Series — Mortgage Fund — Page 156 of 171
Ultra-Short Bond Fund
Investment portfolio
December 31, 2017
Short-term securities 100.30% Commercial paper 82.90% | Principal amount (000) | Value (000) |
American Honda Finance Corp. 1.43% due 1/24/2018 | $8,100 | $8,092 |
Bank of Tokyo-Mitsubishi UFJ, Ltd. 1.56% due 2/14/20181 | 9,000 | 8,980 |
BMW U.S. Capital LLC 1.59% due 3/19/20181 | 5,000 | 4,983 |
British Columbia (Province of) 1.27% due 1/16/2018 | 11,000 | 10,992 |
CAFCO, LLC 1.41% due 2/13/20181 | 10,500 | 10,479 |
Cisco Systems, Inc. 1.50% due 2/15/20181 | 8,000 | 7,984 |
DBS Bank Ltd. 1.42%–1.46% due 2/2/2018–2/15/20181 | 10,600 | 10,581 |
Estée Lauder Companies Inc. 1.49% due 1/22/20181 | 5,000 | 4,995 |
ExxonMobil Corp. 1.40% due 1/23/2018 | 6,300 | 6,294 |
General Electric Co. 1.42% due 1/2/2018 | 11,000 | 10,998 |
IBM Credit LLC 1.62% due 3/13/20181 | 8,600 | 8,573 |
John Deere Canada ULC 1.32% due 1/5/20181 | 2,200 | 2,199 |
KfW 1.32% due 1/12/20181 | 12,000 | 11,994 |
Liberty Street Funding Corp. 1.40% due 2/1/20181 | 10,000 | 9,985 |
Mizuho Bank, Ltd. 1.40% due 2/15/20181 | 10,000 | 9,978 |
National Australia Bank Ltd. 1.65% due 4/4/20181 | 8,900 | 8,860 |
Nordea Bank AB 1.37% due 2/14/20181 | 10,500 | 10,480 |
Old Line Funding, LLC 1.36% due 1/22/20181 | 4,400 | 4,395 |
Paccar Financial Corp. 1.28% due 1/9/2018 | 5,100 | 5,098 |
Province of Alberta 1.45% due 1/10/20181 | 3,700 | 3,698 |
Prudential Funding, LLC 1.35% due 1/12/2018 | 10,500 | 10,494 |
Qualcomm Inc. 1.32% due 2/6/20181 | 7,800 | 7,787 |
Québec (Province of) 1.49% due 1/18/20181 | 11,000 | 10,991 |
Royal Bank of Canada 1.34% due 1/8/2018 | 6,000 | 5,998 |
Simon Property Group, LP 1.54% due 3/15/20181 | 6,100 | 6,080 |
Société Générale 1.41% due 1/31/20181 | 10,400 | 10,385 |
Swedbank AB 1.51% due 3/21/2018 | 5,000 | 4,984 |
Total Capital Canada Ltd. 1.66% due 3/16/20181 | 10,100 | 10,066 |
Toyota Industries Commercial Finance, Inc. 1.37% due 1/22/20181 | 6,200 | 6,194 |
Unilever Capital Corp. 1.43% due 2/26/20181 | 9,600 | 9,577 |
Walt Disney Co. 1.45% due 1/29/20181 | 10,500 | 10,487 |
252,681 | ||
Federal agency discount notes 17.40% | ||
Federal Home Loan Bank 1.08%–1.32% due 1/5/2018–2/28/2018 | 53,100 | 53,046 |
Total short-term securities (cost: $305,768,000) | 305,727 | |
Total investment securities 100.30% (cost: $305,768,000) | 305,727 | |
Other assets less liabilities (0.30)% | (922) | |
Net assets 100.00% | $304,805 |
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 $189,731,000, which represented 62.25% of the net assets of the fund. |
American Funds Insurance Series — Ultra-Short Bond Fund — Page 157 of 171
U.S. Government/AAA-Rated Securities Fund
Investment portfolio
December 31, 2017
Bonds, notes & other debt instruments 92.82% U.S. Treasury bonds & notes 50.54% U.S. Treasury 40.71% | Principal amount (000) | Value (000) |
U.S. Treasury 1.125% 2021 | $31,950 | $30,869 |
U.S. Treasury 1.125% 2021 | 7,971 | 7,710 |
U.S. Treasury 1.375% 2021 | 20,000 | 19,620 |
U.S. Treasury 1.75% 20211 | 40,540 | 39,981 |
U.S. Treasury 2.00% 2021 | 46,300 | 46,077 |
U.S. Treasury 2.00% 2021 | 44,350 | 44,207 |
U.S. Treasury 2.00% 2021 | 26,500 | 26,461 |
U.S. Treasury 2.00% 2021 | 4,000 | 3,985 |
U.S. Treasury 2.125% 2021 | 23,450 | 23,475 |
U.S. Treasury 2.25% 2021 | 64,745 | 65,141 |
U.S. Treasury 2.25% 2021 | 38,000 | 38,258 |
U.S. Treasury 3.625% 2021 | 3,800 | 3,986 |
U.S. Treasury 1.625% 2022 | 100 | 98 |
U.S. Treasury 1.75% 2022 | 198,300 | 194,846 |
U.S. Treasury 1.75% 2022 | 11,700 | 11,510 |
U.S. Treasury 1.875% 2022 | 63,000 | 62,254 |
U.S. Treasury 1.875% 2022 | 45,000 | 44,395 |
U.S. Treasury 1.875% 2022 | 23,000 | 22,669 |
U.S. Treasury 2.00% 2022 | 80,000 | 79,316 |
U.S. Treasury 2.00% 2022 | 43,510 | 43,121 |
U.S. Treasury 2.125% 2022 | 23,166 | 23,076 |
U.S. Treasury 1.50% 2023 | 26,020 | 25,111 |
U.S. Treasury 1.625% 2023 | 38,150 | 36,961 |
U.S. Treasury 2.125% 2023 | 64,095 | 63,582 |
U.S. Treasury 2.125% 2024 | 115,975 | 114,525 |
U.S. Treasury 2.25% 2024 | 40,550 | 40,365 |
U.S. Treasury 2.25% 2024 | 6,500 | 6,486 |
U.S. Treasury 2.50% 2024 | 44,000 | 44,502 |
U.S. Treasury 2.00% 2026 | 18,000 | 17,433 |
U.S. Treasury 6.25% 2030 | 2,980 | 4,191 |
U.S. Treasury 2.75% 2047 | 50,501 | 50,572 |
U.S. Treasury 2.75% 2047 | 11,200 | 11,222 |
U.S. Treasury 3.00% 2047 | 16,400 | 17,248 |
1,263,253 | ||
U.S. Treasury inflation-protected securities 9.83% | ||
U.S. Treasury Inflation-Protected Security 0.125% 20202 | 10,797 | 10,777 |
U.S. Treasury Inflation-Protected Security 0.25% 20252 | 27,223 | 26,981 |
U.S. Treasury Inflation-Protected Security 0.375% 20252 | 86,645 | 86,784 |
U.S. Treasury Inflation-Protected Security 2.375% 20252 | 24,864 | 28,333 |
U.S. Treasury Inflation-Protected Security 0.375% 20272 | 68,267 | 67,914 |
U.S. Treasury Inflation-Protected Security 2.125% 20412 | 349 | 458 |
U.S. Treasury Inflation-Protected Security 0.75% 20422 | 21,494 | 21,711 |
U.S. Treasury Inflation-Protected Security 1.375% 20441,2 | 45,728 | 52,818 |
American Funds Insurance Series — U.S. Government/AAA-Rated Securities Fund — Page 158 of 171
Bonds, notes & other debt instruments U.S. Treasury bonds & notes (continued) U.S. Treasury inflation-protected securities (continued) | Principal amount (000) | Value (000) |
U.S. Treasury Inflation-Protected Security 1.00% 20462 | $2,764 | $2,952 |
U.S. Treasury Inflation-Protected Security 0.875% 20472 | 6,131 | 6,371 |
305,099 | ||
Total U.S. Treasury bonds & notes | 1,568,352 | |
Mortgage-backed obligations 25.34% Federal agency mortgage-backed obligations 25.34% | ||
Fannie Mae 6.50% 20283 | 192 | 214 |
Fannie Mae 3.50% 20333,4 | 30,000 | 30,946 |
Fannie Mae 3.00% 20363 | 29,057 | 29,534 |
Fannie Mae 4.00% 20363 | 9,191 | 9,719 |
Fannie Mae 4.00% 20363 | 7,476 | 7,905 |
Fannie Mae 4.00% 20363 | 2,303 | 2,435 |
Fannie Mae 3.00% 20373 | 18,538 | 18,842 |
Fannie Mae 6.50% 20373 | 52 | 57 |
Fannie Mae 7.00% 20373 | 72 | 81 |
Fannie Mae 7.00% 20373 | 10 | 11 |
Fannie Mae 6.00% 20383 | 17 | 17 |
Fannie Mae 4.50% 20413 | 1,307 | 1,402 |
Fannie Mae 5.00% 20413 | 931 | 1,023 |
Fannie Mae 5.00% 20413 | 613 | 672 |
Fannie Mae 5.00% 20413 | 491 | 540 |
Fannie Mae 5.00% 20413 | 362 | 399 |
Fannie Mae 3.50% 20473 | 16,272 | 16,732 |
Fannie Mae 4.00% 20473 | 34,100 | 35,730 |
Fannie Mae 4.00% 20473 | 23,761 | 24,893 |
Fannie Mae 4.00% 20473 | 5,404 | 5,661 |
Fannie Mae 4.50% 20473 | 25,443 | 27,113 |
Fannie Mae 3.50% 20483,4 | 5,300 | 5,436 |
Fannie Mae 4.00% 20483,4 | 19,450 | 20,325 |
Fannie Mae 4.50% 20483,4 | 75,000 | 79,804 |
Fannie Mae 4.50% 20483,4 | 7,300 | 7,759 |
Fannie Mae, Series 2012-M2, Class A2, Multi Family 2.717% 20223 | 2,350 | 2,383 |
Fannie Mae, Series 2012-M3, Class 1A2, Multi Family 3.044% 20223 | 2,000 | 2,043 |
Fannie Mae, Series 2014-M1, Class A2, Multi Family 3.217% 20233,5 | 2,050 | 2,115 |
Fannie Mae, Series 2014-M3, Class A2, Multi Family 3.466% 20243,5 | 3,825 | 4,011 |
Fannie Mae, Series 2001-4, Class GA, 9.251% 20253,5 | 1 | 1 |
Fannie Mae, Series 2001-4, Class NA, 9.503% 20253,5 | 1 | 1 |
Fannie Mae, Series 2006-56, Class OG, principal only, 0% 20363 | 155 | 134 |
Fannie Mae, Series 2001-T10, Class A1, 7.00% 20413 | 80 | 93 |
Freddie Mac 5.50% 20243 | 519 | 545 |
Freddie Mac 5.00% 20403 | 1,127 | 1,224 |
Freddie Mac 5.00% 20413 | 2,121 | 2,327 |
Freddie Mac 4.00% 20433 | 488 | 518 |
Freddie Mac 3.50% 20473 | 17,923 | 18,447 |
Freddie Mac 3.50% 20473 | 14,389 | 14,810 |
Freddie Mac 4.00% 20473 | 23,965 | 25,098 |
Freddie Mac 4.00% 20473 | 19,950 | 20,906 |
Freddie Mac 4.00% 20473 | 19,833 | 20,783 |
Freddie Mac 4.50% 20473 | 762 | 813 |
Freddie Mac 3.00% 20483,4 | 6,200 | 6,204 |
Freddie Mac 4.00% 20483,4 | 50,000 | 52,309 |
Freddie Mac 4.00% 20483,4 | 12,500 | 13,060 |
American Funds Insurance Series — U.S. Government/AAA-Rated Securities Fund — Page 159 of 171
Bonds, notes & other debt instruments Mortgage-backed obligations (continued) Federal agency mortgage-backed obligations (continued) | Principal amount (000) | Value (000) |
Freddie Mac Pool #1H1354 3.43% 20363,5 | $354 | $374 |
Freddie Mac Pool #760014 2.969% 20453,5 | 2,391 | 2,400 |
Freddie Mac, Series KGRP, Class A, Multi Family (1-month USD-LIBOR + 0.38%) 1.752% 20203,5 | 3,668 | 3,674 |
Freddie Mac, Series K013, Class A1, Multi Family 2.902% 20203 | 511 | 517 |
Freddie Mac, Series K010, Class A1, Multi Family 3.32% 20203 | 161 | 162 |
Freddie Mac, Series K019, Class A1, Multi Family 1.459% 20213 | 1,586 | 1,568 |
Freddie Mac, Series K031, Class A1, Multi Family 2.778% 20223 | 1,001 | 1,012 |
Freddie Mac, Series 1567, Class A, (1-month USD-LIBOR + 0.40%) 1.877% 20233,5 | 40 | 41 |
Freddie Mac, Series KS01, Class A2, Multi Family 2.522% 20233 | 1,735 | 1,741 |
Freddie Mac, Series K029, Class A2, Multi Family 3.32% 20233 | 400 | 416 |
Freddie Mac, Series K070, Class A2, Multi Family 3.303% 20273 | 5,765 | 5,972 |
Freddie Mac, Series 3213, Class OG, principal only, 0% 20363 | 276 | 252 |
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-2, Class HA, 2.00% 20563 | 13,329 | 13,248 |
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-1, Class HA, 2.00% 20563 | 12,471 | 12,425 |
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-2, Class MA, 3.00% 20563 | 12,312 | 12,312 |
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-4, Class HT, 2.25% 20573 | 2,630 | 2,624 |
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-4, Class MT, 3.50% 20573 | 2,000 | 2,046 |
Government National Mortgage Assn. 3.75% 20343 | 1,289 | 1,347 |
Government National Mortgage Assn. 5.50% 20383 | 370 | 407 |
Government National Mortgage Assn. 5.50% 20383 | 140 | 154 |
Government National Mortgage Assn. 5.50% 20383 | 136 | 149 |
Government National Mortgage Assn. 5.50% 20383 | 99 | 108 |
Government National Mortgage Assn. 6.00% 20383 | 280 | 324 |
Government National Mortgage Assn. 6.50% 20383 | 467 | 532 |
Government National Mortgage Assn. 6.50% 20383 | 137 | 158 |
Government National Mortgage Assn. 5.00% 20393 | 699 | 759 |
Government National Mortgage Assn. 6.00% 20393 | 281 | 315 |
Government National Mortgage Assn. 4.50% 20403 | 550 | 584 |
Government National Mortgage Assn. 5.50% 20403 | 8,247 | 9,177 |
Government National Mortgage Assn. 4.50% 20413 | 1,501 | 1,581 |
Government National Mortgage Assn. 5.00% 20413 | 2,853 | 3,046 |
Government National Mortgage Assn. 3.00% 20423 | 61 | 61 |
Government National Mortgage Assn. 3.50% 20433 | 2,093 | 2,177 |
Government National Mortgage Assn. 4.50% 20453 | 3,362 | 3,553 |
Government National Mortgage Assn. 4.50% 20453 | 2,179 | 2,303 |
Government National Mortgage Assn. 4.50% 20453 | — | 1 |
Government National Mortgage Assn. 4.00% 20463 | 2,576 | 2,653 |
Government National Mortgage Assn. 4.00% 20473 | 63,961 | 67,023 |
Government National Mortgage Assn. 4.00% 20473 | 13,273 | 13,864 |
Government National Mortgage Assn. 4.50% 20473 | 2,000 | 2,113 |
Government National Mortgage Assn. 4.50% 20483,4 | 30,525 | 32,022 |
Government National Mortgage Assn. 4.623% 20613 | 706 | 717 |
Government National Mortgage Assn. 4.663% 20613 | 1,512 | 1,536 |
Government National Mortgage Assn. 4.664% 20613 | 1,261 | 1,283 |
Government National Mortgage Assn. 4.685% 20613 | 487 | 495 |
Government National Mortgage Assn. 4.70% 20613 | 2,812 | 2,843 |
Government National Mortgage Assn. 4.70% 20613 | 1,223 | 1,238 |
Government National Mortgage Assn. 4.72% 20613 | 145 | 147 |
Government National Mortgage Assn. 4.801% 20613 | 354 | 357 |
Government National Mortgage Assn. 5.091% 20613 | 1,340 | 1,376 |
Government National Mortgage Assn. 4.682% 20623 | 1,366 | 1,396 |
Government National Mortgage Assn. 4.756% 20623 | 64 | 66 |
Government National Mortgage Assn. 4.818% 20623 | 160 | 162 |
Government National Mortgage Assn. 5.172% 20623 | 103 | 106 |
American Funds Insurance Series — U.S. Government/AAA-Rated Securities Fund — Page 160 of 171
Bonds, notes & other debt instruments Mortgage-backed obligations (continued) Federal agency mortgage-backed obligations (continued) | Principal amount (000) | Value (000) |
Government National Mortgage Assn. 4.702% 20633 | $83 | $85 |
Government National Mortgage Assn. 4.917% 20633 | 73 | 75 |
Government National Mortgage Assn. 4.719% 20643 | 966 | 988 |
Government National Mortgage Assn. 4.772% 20643 | 564 | 574 |
Government National Mortgage Assn. 4.868% 20643 | 290 | 297 |
Government National Mortgage Assn. 5.172% 20643 | 508 | 523 |
Government National Mortgage Assn. 5.175% 20643 | 511 | 526 |
Government National Mortgage Assn. 5.393% 20643 | 12 | 12 |
Government National Mortgage Assn. 6.48% 20643 | 387 | 394 |
Government National Mortgage Assn. 6.64% 20643 | 1,838 | 1,909 |
Government National Mortgage Assn. 4.676% 20653 | 1,064 | 1,081 |
Government National Mortgage Assn. Pool #892950 2.678% 20603,5 | 1,443 | 1,480 |
Government National Mortgage Assn. Pool #894475 3.487% 20633,5 | 4,276 | 4,515 |
Government National Mortgage Assn. Pool #AG8149 1.989% 20643,5 | 470 | 476 |
Government National Mortgage Assn. Pool #AG8156 2.446% 20643,5 | 648 | 662 |
Government National Mortgage Assn. Pool #894482 3.488% 20643,5 | 5,692 | 6,023 |
Government National Mortgage Assn., Series 2010-H23, Class PT, 5.422% 20603,5 | 11,791 | 12,087 |
Government National Mortgage Assn., Series 2012-H20, Class PT, 2.092% 20623,5 | 3,065 | 3,099 |
Government National Mortgage Assn., Series 2012-H12, Class FT, (1-year CMT Weekly Rate + 0.70%) 2.13% 20623,5 | 2,721 | 2,743 |
National Credit Union Administration, Series 2011-R3, Class 1A, (1-month USD-LIBOR + 0.40%) 1.729% 20203,5 | 383 | 384 |
National Credit Union Administration, Series 2011-R1, Class 1A, (1-month USD-LIBOR + 0.45%) 1.779% 20203,5 | 252 | 253 |
National Credit Union Administration, Series 2011-R2, Class 1A, (1-month USD-LIBOR + 0.40%) 1.803% 20203,5 | 114 | 115 |
Vendee Mortgage Trust, Series 2011-2, Class DA, 3.75% 20333 | 8,182 | 8,308 |
Vendee Mortgage Trust, Series 2010-1, Class DA, 4.25% 20353 | 7,682 | 7,902 |
Total mortgage-backed obligations | 786,503 | |
Federal agency bonds & notes 16.94% | ||
Export-Import Bank of the United States-Guaranteed, Ethiopian Leasing 2012 LLC 2.646% 20263 | 733 | 735 |
Export-Import Bank of the United States-Guaranteed, VCK Lease SA 2.591% 20263 | 1,014 | 1,016 |
Fannie Mae 1.75% 2019 | 16,000 | 15,942 |
Fannie Mae 1.25% 2021 | 11,400 | 11,057 |
Fannie Mae 7.125% 2030 | 4,000 | 5,763 |
Federal Home Loan Bank 1.75% 2018 | 74,000 | 73,933 |
Federal Home Loan Bank 3.375% 2023 | 16,715 | 17,642 |
Federal Home Loan Bank 5.50% 2036 | 600 | 827 |
Freddie Mac 3.75% 2019 | 12,750 | 13,040 |
Private Export Funding Corp. 1.45% 2019 | 17,500 | 17,350 |
Private Export Funding Corp. 2.25% 2020 | 5,000 | 5,014 |
Private Export Funding Corp. 3.55% 2024 | 6,340 | 6,723 |
Small Business Administration, Series 2001-20K, 5.34% 20213 | 48 | 50 |
Small Business Administration, Series 2001-20J, 5.76% 20213 | 23 | 24 |
Small Business Administration, Series 2001-20F, 6.44% 20213 | 88 | 92 |
Small Business Administration, Series 2003-20B, 4.84% 20233 | 221 | 230 |
Tennessee Valley Authority 2.875% 2027 | 10,000 | 10,229 |
Tennessee Valley Authority 4.65% 2035 | 2,330 | 2,856 |
Tennessee Valley Authority 5.88% 2036 | 1,750 | 2,460 |
Tennessee Valley Authority, Series A, 3.875% 2021 | 32,975 | 34,743 |
Tennessee Valley Authority, Series A, 4.625% 2060 | 250 | 318 |
TVA Southaven 3.846% 20333 | 1,418 | 1,444 |
U.S. Department of Housing and Urban Development, Series 2015-A-4, 1.33% 2018 | 10,000 | 9,973 |
American Funds Insurance Series — U.S. Government/AAA-Rated Securities Fund — Page 161 of 171
Bonds, notes & other debt instruments Federal agency bonds & notes (continued) | Principal amount (000) | Value (000) |
U.S. Department of Housing and Urban Development, Series 2015-A-6, 1.98% 2020 | $11,510 | $11,479 |
U.S. Department of Housing and Urban Development, Series 2015-A-7, 2.35% 2021 | 5,000 | 5,026 |
U.S. Department of Housing and Urban Development, Series 2015-A-8, 2.45% 2022 | 8,000 | 8,057 |
U.S. Department of Housing and Urban Development, Series 2015-A-9, 2.80% 2023 | 2,000 | 2,046 |
U.S. Department of Housing and Urban Development, Series 2015-A-10, 2.85% 2024 | 3,000 | 3,069 |
U.S. Department of Housing and Urban Development, Series 2015-A-11, 2.95% 2025 | 3,515 | 3,591 |
U.S. Department of Housing and Urban Development, Series 2015-A-12, 3.10% 2026 | 3,500 | 3,577 |
U.S. Department of Housing and Urban Development, Series 2015-A-13, 3.15% 2027 | 15,332 | 15,633 |
U.S. Department of Housing and Urban Development, Series 2015-A-14, 3.25% 2028 | 5,106 | 5,227 |
U.S. Department of Housing and Urban Development, Series 2015-A-15, 3.35% 2029 | 3,500 | 3,616 |
U.S. Department of Housing and Urban Development, Series 2015-A-16, 3.50% 2030 | 3,307 | 3,429 |
U.S. Department of Housing and Urban Development, Series 2015-A-17, 3.55% 2031 | 3,300 | 3,361 |
U.S. Department of Housing and Urban Development, Series 2015-A-18, 3.60% 2032 | 3,177 | 3,204 |
U.S. Department of Housing and Urban Development, Series 2015-A-19, 3.65% 2033 | 2,734 | 2,792 |
U.S. Department of Housing and Urban Development, Series 2015-A-20, 3.70% 2034 | 651 | 667 |
United States Agency for International Development, Iraq (Republic of), 2.149% 2022 | 6,670 | 6,634 |
United States Agency for International Development, Jordan (Kingdom of) 1.945% 2019 | 19,750 | 19,775 |
United States Agency for International Development, Jordan (Kingdom of) 2.503% 2020 | 88,000 | 89,096 |
United States Agency for International Development, Jordan (Kingdom of) 2.578% 2022 | 43,000 | 43,673 |
United States Agency for International Development, Jordan (Kingdom of) 3.00% 2025 | 43,250 | 44,437 |
United States Agency for International Development, Morocco (Kingdom of) 7.55% 20263 | 3,621 | 4,311 |
United States Agency for International Development, Tunisia (Kingdom of) 1.416% 2021 | 3,000 | 2,904 |
United States Agency for International Development, Ukraine, 1.844% 2019 | 1,445 | 1,445 |
United States Agency for International Development, Ukraine, 1.471% 2021 | 4,410 | 4,297 |
United States Government-Guaranteed Certificates of Participation, Overseas Private Investment Corp, 3.49% 20293 | 869 | 901 |
United States Government-Guaranteed Certificates of Participation, Overseas Private Investment Corp, 3.82% 20323 | 972 | 1,019 |
United States Government-Guaranteed Certificates of Participation, Overseas Private Investment Corp, 3.938% 20323 | 795 | 853 |
525,580 | ||
Total bonds, notes & other debt instruments (cost: $2,881,337,000) | 2,880,435 | |
Short-term securities 14.77% | ||
Apple Inc. 1.24% due 1/30/20186 | 35,000 | 34,955 |
Ciesco LLC 1.87% due 6/25/20186 | 50,000 | 49,544 |
Cisco Systems, Inc. 1.36% due 3/8/20186 | 45,000 | 44,872 |
ExxonMobil Corp. 1.40% due 1/23/2018 | 31,400 | 31,370 |
Federal Farm Credit Banks 1.14% due 1/5/2018 | 20,000 | 19,998 |
Federal Home Loan Bank 1.16% due 2/2/2018 | 25,000 | 24,974 |
IBM Credit LLC 1.50% due 3/13/20186 | 20,000 | 19,938 |
John Deere Capital Corp. 1.35% due 1/23/20186 | 20,400 | 20,379 |
Kimberly-Clark Corp. 1.48% due 1/16/20186 | 25,000 | 24,981 |
Microsoft Corp. 1.27%–1.30% due 1/16/2018–1/23/20186 | 70,000 | 69,945 |
Paccar Financial Corp. 1.22%–1.28% due 1/8/2018–1/16/2018 | 42,400 | 42,375 |
Sumitomo Mitsui Banking Corp. 1.44% due 1/11/20186 | 40,000 | 39,979 |
Walt Disney Co. 1.25% due 1/19/20186 | 35,000 | 34,970 |
Total short-term securities (cost: $458,355,000) | 458,280 | |
Total investment securities 107.59% (cost: $3,339,692,000) | 3,338,715 | |
Other assets less liabilities (7.59)% | (235,400) | |
Net assets 100.00% | $3,103,315 |
American Funds Insurance Series — U.S. Government/AAA-Rated Securities Fund — Page 162 of 171
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount7 (000) | Value at 12/31/20178 (000) | Unrealized (depreciation) appreciation at 12/31/2017 (000) |
10 Year U.S. Treasury Note Futures | Long | 2,734 | March 2018 | $273,400 | $339,144 | $(813) |
20 Year U.S. Treasury Bond Futures | Long | 195 | March 2018 | 19,500 | 29,835 | 31 |
10 Year Ultra U.S. Treasury Note Futures | Short | 175 | March 2018 | (17,500) | (23,373) | 110 |
30 Year Ultra U.S. Treasury Bond Futures | Short | 219 | March 2018 | (21,900) | (36,717) | (23) |
5 Year U.S. Treasury Note Futures | Long | 14,014 | April 2018 | 1,401,400 | 1,627,923 | (6,730) |
2 Year U.S. Treasury Note Futures | Long | 2,111 | April 2018 | 422,200 | 451,985 | (380) |
90 Day Euro Dollar Futures | Short | 905 | September 2018 | (226,250) | (221,635) | 245 |
90 Day Euro Dollar Futures | Long | 1,595 | December 2018 | 398,750 | 390,197 | (242) |
90 Day Euro Dollar Futures | Short | 1,920 | December 2019 | (480,000) | (468,816) | 357 |
$(7,445) |
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2017 (000) | Upfront payments/ receipts (000) | Unrealized (depreciation) appreciation at 12/31/2017 (000) |
1.345% | U.S. EFFR | 1/31/2018 | $1,078,000 | $(56) | $— | $(56) |
1.3475% | U.S. EFFR | 1/31/2018 | 1,747,000 | (86) | — | (86) |
1.329% | U.S. EFFR | 3/27/2019 | 131,000 | (632) | — | (632) |
1.32625% | U.S. EFFR | 4/5/2019 | 68,800 | (345) | — | (345) |
1.34875% | U.S. EFFR | 4/5/2019 | 120,000 | (568) | — | (568) |
1.337% | U.S. EFFR | 6/8/2019 | 121,000 | (730) | — | (730) |
1.367% | U.S. EFFR | 6/12/2019 | 60,500 | (341) | — | (341) |
1.37% | U.S. EFFR | 6/14/2019 | 60,500 | (341) | — | (341) |
1.362% | U.S. EFFR | 6/21/2019 | 60,500 | (355) | — | (355) |
1.351% | U.S. EFFR | 6/28/2019 | 60,500 | (372) | — | (372) |
1.9425% | 3-month USD-LIBOR | 3/17/2020 | 165,000 | (526) | — | (526) |
1.8005% | 3-month USD-LIBOR | 9/28/2020 | 48,000 | (444) | — | (444) |
3-month USD-LIBOR | 1.217% | 9/22/2021 | 60,000 | 2,116 | — | 2,116 |
3-month USD-LIBOR | 1.225% | 9/22/2021 | 60,000 | 2,099 | — | 2,099 |
3-month USD-LIBOR | 1.2255% | 9/23/2021 | 5,000 | 175 | — | 175 |
3-month USD-LIBOR | 2.01215% | 2/2/2022 | 119,000 | 915 | — | 915 |
3-month USD-LIBOR | 1.9665% | 2/2/2022 | 50,000 | 474 | — | 474 |
3-month USD-LIBOR | 2.0025% | 2/7/2022 | 59,000 | 477 | — | 477 |
3-month USD-LIBOR | 2.2175% | 3/17/2022 | 52,000 | (10) | — | (10) |
3-month USD-LIBOR | 1.8675% | 4/19/2022 | 70,000 | 1,002 | — | 1,002 |
3-month USD-LIBOR | 1.75918% | 4/29/2022 | 58,000 | 1,092 | — | 1,092 |
3-month USD-LIBOR | 1.948% | 7/28/2022 | 20,000 | 239 | — | 239 |
2.80% | 3-month USD-LIBOR | 9/2/2022 | 280,000 | 2,280 | — | 2,280 |
2.75% | 3-month USD-LIBOR | 9/2/2022 | 280,000 | 2,020 | — | 2,020 |
2.009% | 3-month USD-LIBOR | 10/4/2022 | 50,000 | (511) | — | (511) |
2.00965% | 3-month USD-LIBOR | 10/6/2022 | 49,000 | (498) | — | (498) |
1.9855% | 3-month USD-LIBOR | 10/17/2022 | 29,500 | (331) | — | (331) |
1.98% | 3-month USD-LIBOR | 10/17/2022 | 29,500 | (339) | — | (339) |
2.08613% | 3-month USD-LIBOR | 11/17/2022 | 38,300 | (257) | — | (257) |
2.08934% | 3-month USD-LIBOR | 11/17/2022 | 40,700 | (267) | — | (267) |
2.2025% | 3-month USD-LIBOR | 12/4/2022 | 20,000 | (28) | — | (28) |
American Funds Insurance Series — U.S. Government/AAA-Rated Securities Fund — Page 163 of 171
Receive | Pay | Expiration date | Notional (000) | Value at 12/31/2017 (000) | Upfront payments/ receipts (000) | Unrealized (depreciation) appreciation at 12/31/2017 (000) |
3-month USD-LIBOR | 2.2455% | 12/21/2022 | $25,000 | $(6) | $— | $(6) |
2.27403% | 3-month USD-LIBOR | 12/29/2022 | 60,000 | 92 | — | 92 |
3-month USD-LIBOR | 2.0815% | 2/10/2024 | 28,700 | 321 | — | 321 |
3-month USD-LIBOR | 2.0955% | 2/10/2024 | 14,300 | 148 | — | 148 |
3-month USD-LIBOR | 2.3875% | 3/17/2024 | 160,700 | (998) | — | (998) |
3-month USD-LIBOR | 2.12813% | 10/3/2024 | 65,000 | 712 | — | 712 |
3-month USD-LIBOR | 1.798% | 2/2/2026 | 35,000 | 1,408 | — | 1,408 |
3-month USD-LIBOR | 2.24% | 12/5/2026 | 55,100 | 545 | — | 545 |
3-month USD-LIBOR | 2.27% | 12/5/2026 | 44,900 | 335 | — | 335 |
2.579% | 3-month USD-LIBOR | 3/14/2027 | 53,000 | 929 | — | 929 |
2.333% | 3-month USD-LIBOR | 3/29/2027 | 42,000 | (144) | — | (144) |
3-month USD-LIBOR | 2.31934% | 11/17/2027 | 21,200 | 127 | — | 127 |
3-month USD-LIBOR | 2.31613% | 11/17/2027 | 19,800 | 124 | — | 124 |
3-month USD-LIBOR | 2.97125% | 9/2/2030 | 62,000 | (2,240) | — | (2,240) |
3-month USD-LIBOR | 3.005% | 9/2/2030 | 62,000 | (2,418) | — | (2,418) |
3-month USD-LIBOR | 3.34% | 6/27/2044 | 45,000 | (7,252) | — | (7,252) |
3-month USD-LIBOR | 3.206% | 7/31/2044 | 16,000 | (2,160) | — | (2,160) |
3-month USD-LIBOR | 3.238% | 8/8/2044 | 16,000 | (2,262) | — | (2,262) |
3-month USD-LIBOR | 2.7045% | 1/2/2045 | 12,000 | (404) | — | (404) |
3-month USD-LIBOR | 2.5055% | 1/9/2045 | 11,000 | 75 | — | 75 |
3-month USD-LIBOR | 2.4945% | 1/9/2045 | 2,000 | 18 | — | 18 |
3-month USD-LIBOR | 2.7025% | 9/10/2045 | 30,000 | (1,030) | — | (1,030) |
3-month USD-LIBOR | 2.52822% | 11/23/2045 | 13,350 | 24 | — | 24 |
2.44345% | 3-month USD-LIBOR | 6/29/2047 | 21,000 | (422) | — | (422) |
3-month USD-LIBOR | 2.5015% | 8/17/2047 | 4,600 | 33 | — | 33 |
3-month USD-LIBOR | 2.5095% | 8/17/2047 | 4,400 | 24 | — | 24 |
3-month USD-LIBOR | 2.436% | 9/19/2047 | 10,500 | 230 | — | 230 |
2.53563% | 3-month USD-LIBOR | 10/3/2047 | 20,000 | (4) | — | (4) |
3-month USD-LIBOR | 2.56315% | 10/6/2047 | 11,000 | (65) | — | (65) |
3-month USD-LIBOR | 2.495% | 10/17/2047 | 6,300 | 56 | — | 56 |
3-month USD-LIBOR | 2.4975% | 10/17/2047 | 6,300 | 52 | — | 52 |
U.S. EFFR | 2.166% | 10/23/2047 | 10,000 | (28) | — | (28) |
U.S. EFFR | 2.145% | 11/9/2047 | 15,400 | 29 | — | 29 |
U.S. EFFR | 2.153% | 11/10/2047 | 15,300 | 1 | — | 1 |
U.S. EFFR | 2.155% | 11/10/2047 | 8,640 | (3) | — | (3) |
U.S. EFFR | 2.17% | 11/13/2047 | 15,660 | (57) | — | (57) |
2.5735% | 3-month USD-LIBOR | 12/21/2047 | 5,400 | 45 | — | 45 |
3-month USD-LIBOR | 2.57553% | 12/29/2047 | 13,000 | (115) | — | (115) |
$— | $(8,428) |
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 $61,762,000, which represented 1.99% of the net assets of the fund. |
2 | Index-linked bond whose principal amount moves with a government price index. |
3 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
4 | Purchased on a TBA basis. |
5 | Coupon rate may change periodically. |
6 | Acquired in a transaction exempt from registration under 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 $339,563,000, which represented 10.94% of the net assets of the fund. |
7 | Notional amount is calculated based on the number of contracts and notional contract size. |
8 | Value is calculated based on the notional amount and current market price. |
American Funds Insurance Series — U.S. Government/AAA-Rated Securities Fund — Page 164 of 171
Key to abbreviations and symbol |
CMT = Constant Maturity Treasury |
EFFR = Federal Funds Effective Rate |
LIBOR = London Interbank Offered Rate |
TBA = To-be-announced |
USD/$ = U.S. dollars |
American Funds Insurance Series — U.S. Government/AAA-Rated Securities Fund — Page 165 of 171
Managed Risk Growth Fund
Investment portfolio
December 31, 2017
Growth funds 80.05% | Shares | Value (000) |
American Funds Insurance Series – Growth Fund, Class 1 | 2,960,791 | $230,498 |
Total growth funds (cost: $200,842,000) | 230,498 | |
Fixed income funds 15.11% | ||
American Funds Insurance Series – Bond Fund, Class 1 | 4,022,202 | 43,520 |
Total fixed income funds (cost: $44,022,000) | 43,520 | |
Short-term securities 4.89% | ||
Government Cash Management Fund | 14,078,452 | 14,078 |
Total short-term securities (cost: $14,078,000) | 14,078 | |
Total investment securities 100.05% (cost: $258,942,000) | 288,096 | |
Other assets less liabilities (0.05)% | (137) | |
Net assets 100.00% | $287,959 |
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount1 (000) | Value at 12/31/20172 (000) | Unrealized depreciation at 12/31/2017 (000) |
5 Year U.S. Treasury Note Futures | Long | 130 | March 2018 | $13,000 | $15,101 | $(38) |
1 | Notional amount is calculated based on the number of contracts and notional contract size. |
2 | Value is calculated based on the notional amount and current market price. |
American Funds Insurance Series — Managed Risk Growth Fund — Page 166 of 171
Managed Risk International Fund
Investment portfolio
December 31, 2017
Growth funds 80.15% | Shares | Value (000) |
American Funds Insurance Series – International Fund, Class 1 | 5,479,657 | $118,964 |
Total growth funds (cost: $99,690,000) | 118,964 | |
Fixed income funds 15.04% | ||
American Funds Insurance Series – Bond Fund, Class 1 | 2,063,150 | 22,323 |
Total fixed income funds (cost: $22,581,000) | 22,323 | |
Short-term securities 4.85% | ||
Government Cash Management Fund | 7,200,311 | 7,200 |
Total short-term securities (cost: $7,200,000) | 7,200 | |
Total investment securities 100.04% (cost: $129,471,000) | 148,487 | |
Other assets less liabilities (0.04)% | (64) | |
Net assets 100.00% | $148,423 |
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount1 (000) | Value at 12/31/20172 (000) | Unrealized depreciation at 12/31/2017 (000) |
5 Year U.S. Treasury Note Futures | Long | 66 | March 2018 | $6,600 | $7,667 | $(19) |
1 | Notional amount is calculated based on the number of contracts and notional contract size. |
2 | Value is calculated based on the notional amount and current market price. |
American Funds Insurance Series — Managed Risk International Fund — Page 167 of 171
Managed Risk Blue Chip
Income and Growth Fund
Investment portfolio
December 31, 2017
Growth-and-income funds 80.32% | Shares | Value (000) |
American Funds Insurance Series – Blue Chip Income and Growth Fund, Class 1 | 19,699,331 | $294,702 |
Total growth-and-income funds (cost: $263,402,000) | 294,702 | |
Fixed income funds 14.92% | ||
American Funds Insurance Series – U.S. Government/AAA-Rated Securities Fund, Class 1 | 4,530,491 | 54,729 |
Total fixed income funds (cost: $55,397,000) | 54,729 | |
Short-term securities 4.82% | ||
Government Cash Management Fund | 17,696,252 | 17,696 |
Total short-term securities (cost: $17,696,000) | 17,696 | |
Total investment securities 100.06% (cost: $336,495,000) | 367,127 | |
Other assets less liabilities (0.06)% | (224) | |
Net assets 100.00% | $366,903 |
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount1 (000) | Value at 12/31/20172 (000) | Unrealized depreciation at 12/31/2017 (000) |
5 Year U.S. Treasury Note Futures | Long | 167 | March 2018 | $16,700 | $19,399 | $(49) |
1 | Notional amount is calculated based on the number of contracts and notional contract size. |
2 | Value is calculated based on the notional amount and current market price. |
American Funds Insurance Series — Managed Risk Blue Chip Income and Growth Fund — Page 168 of 171
Managed Risk Growth-Income Fund
Investment portfolio
December 31, 2017
Growth-and-income funds 80.07% | Shares | Value (000) |
American Funds Insurance Series – Growth-Income Fund, Class 1 | 3,331,787 | $167,322 |
Total growth-and-income funds (cost: $153,163,000) | 167,322 | |
Fixed income funds 15.10% | ||
American Funds Insurance Series – Bond Fund, Class 1 | 2,916,097 | 31,552 |
Total fixed income funds (cost: $31,921,000) | 31,552 | |
Short-term securities 4.88% | ||
Government Cash Management Fund | 10,195,681 | 10,196 |
Total short-term securities (cost: $10,196,000) | 10,196 | |
Total investment securities 100.05% (cost: $195,280,000) | 209,070 | |
Other assets less liabilities (0.05)% | (102) | |
Net assets 100.00% | $208,968 |
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount1 (000) | Value at 12/31/20172 (000) | Unrealized depreciation at 12/31/2017 (000) |
5 Year U.S. Treasury Note Futures | Long | 95 | March 2018 | $9,500 | $11,036 | $(28) |
1 | Notional amount is calculated based on the number of contracts and notional contract size. |
2 | Value is calculated based on the notional amount and current market price. |
American Funds Insurance Series — Managed Risk Growth-Income Fund — Page 169 of 171
Managed Risk Asset Allocation Fund
Investment portfolio
December 31, 2017
Asset allocation funds 95.19% | Shares | Value (000) |
American Funds Insurance Series – Asset Allocation Fund, Class 1 | 178,833,494 | $4,240,142 |
Total asset allocation funds (cost: $3,901,495,000) | 4,240,142 | |
Short-term securities 4.87% | ||
Government Cash Management Fund | 217,109,926 | 217,110 |
Total short-term securities (cost: $217,110,000) | 217,110 | |
Total investment securities 100.06% (cost: $4,118,605,000) | 4,457,252 | |
Other assets less liabilities (0.06)% | (2,842) | |
Net assets 100.00% | $4,454,410 |
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount1 (000) | Value at 12/31/20172 (000) | Unrealized depreciation at 12/31/2017 (000) |
5 Year U.S. Treasury Note Futures | Long | 2,033 | March 2018 | $203,300 | $236,162 | $(592) |
1 | Notional amount is calculated based on the number of contracts and notional contract size. |
2 | Value is calculated based on the notional amount and current market price. |
American Funds Insurance Series — Managed Risk Asset Allocation Fund — Page 170 of 171
Additional financial disclosures are included in the fund’s current shareholder report and should be read in conjunction with this report.
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 series prospectus and summary prospectuses, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the American Funds website at americanfunds.com. Fund shares offered through American Funds Distributors, Inc.
INGEFPX-998-0218O-S60687 | American Funds Insurance Series — Managed Risk Asset Allocation Fund — Page 171 of 171 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of American Funds Insurance Series and Shareholders of Global Growth Fund, Global Small Capitalization Fund, Growth Fund, International Fund, New World Fund®, Blue Chip Income and Growth Fund, Global Growth and Income Fund, Growth-Income Fund, International Growth and Income Fund, Capital Income Builder®, Asset Allocation Fund, Global Balanced Fund, Bond Fund, Global Bond Fund, High-Income Bond Fund, Mortgage Fund and U.S. Government/AAA-Rated Securities Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the summary investment portfolios, of Global Growth Fund, Global Small Capitalization Fund, Growth Fund, International Fund, New World Fund®, Blue Chip Income and Growth Fund, Global Growth and Income Fund, Growth-Income Fund, International Growth and Income Fund, Capital Income Builder®, Asset Allocation Fund, Global Balanced Fund, Bond Fund, Global Bond Fund, High-Income Bond Fund, Mortgage Fund and U.S. Government/AAA-Rated Securities Fund (seventeen of the funds constituting American Funds Insurance Series, hereafter collectively referred to as the "Funds") as of December 31, 2017, the related statements of operations for the year ended December 31, 2017, the statements of changes in net assets for each of the two years in the period ended December 31, 2017, including the related notes, and the financial highlights for each of the periods indicated therein (included in Item 1 of this Form N-CSR) and the investment portfolios (included in Item 6 of this Form N-CSR) as of December 31, 2017 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2017, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended December 31, 2017 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2017 by correspondence with the custodians, transfer agents and brokers. We believe that our audits provide a reasonable basis for our opinions.
PricewaterhouseCoopers LLP
Los Angeles, California
February 9, 2018
We have served as the auditor of one or more investment companies in The Capital Group Companies Investment Company Complex since 1934.
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, 2018 |
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, 2018 |
By /s/ Gregory F. Niland |
Gregory F. Niland, Treasurer and Principal Financial Officer |
Date: February 28, 2018 |