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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 33-12791 & 811-5069
EquiTrust Variable Insurance Series Fund
5400 University Avenue, West Des Moines IA 50266-5997
(Address of principal executive offices) (Zip code)
Kristi Rojohn, 5400 University Avenue, West Des Moines IA 50266-5997
(Name and address of agent for service)
Registrant’s telephone number, including area code: 515/225-5400
Date of fiscal year end: December 31, 2010
Date of reporting period: June 30, 2010
TABLE OF CONTENTS
Table of Contents
Item 1. | Reports to Stockholders. |
EquiTrust Variable Insurance Series Fund
![](https://capedge.com/proxy/N-CSRS/0000950123-10-081709/c59572c5957201.gif)
![](https://capedge.com/proxy/N-CSRS/0000950123-10-081709/c59572c5957200.gif)
5400 University Avenue
West Des Moines, IA 50266
West Des Moines, IA 50266
1-877-860-2904
1-515-225-5586
1-515-225-5586
This report is not to be distributed unless preceded or accompanied by a current prospectus.
Table of Contents
PRESIDENT’S LETTER | August 12, 2010 |
Dear Shareholders:
The U.S. economy has managed four consecutive quarters of growth since emerging from its deep recession in mid-2009. In the first half of 2010, businesses invested in new equipment and software for their operations while building inventories depleted during the recession. Both contributed positively towards growth in U.S. gross domestic product (“GDP”). Trade rebounded, as imports and exports both recovered from their recession plunge.
It’s becoming clear that this one-year-old recovery is slowing, however. U.S. GDP grew 3.7% in the first quarter of 2010, easing to 2.4% in the second quarter. The manufacturing sector continues to expand, but at a slowing pace. Robust employment growth remains elusive, as small businesses aren’t hiring and large companies have capacity to increase hours without adding more employees. Housing activity is approaching the recession’s lows following the expiration of the government’s first-time homebuyer tax credit. The consumer has contributed only modestly to the recovery, likely attributable to the still-discouraging jobs environment.
The downshift in the U.S. economy was only one element impacting the financial markets during the first half of 2010. Members of the eurozone endured a crisis of confidence as Greece’s debt and budget issues elevated concerns of the financial health of other members, particularly Portugal, Italy and Spain. A growing call for European government fiscal responsibility and reduced spending then raised concerns about global economic growth. Further, China instituted fiscal measures to slow its red-hot expansion, prompting fears of an outright evaporation of the country’s contribution to global growth.
These events sent investors out of stocks and into the relatively U.S. Treasury securities. For the six-month period ended June 30, 2010, the S&P 500 Composite Stock Index (the “S&P 500”) declined 6.65%. Performance was favorable in the periods around corporate earnings announcements, but the macroeconomic factors caused stocks to stumble repeatedly throughout the period. Investors’ rush into U.S. Treasuries has driven overall market yields to low levels. This has benefited bond values, but at the expense of falling coupon income. The broad Barclays Capital U.S. Aggregate Index returned 5.33% for the period, with the majority of the gain attributable to price return.
The markets appear to be adjusting for moderating economic growth, and investors will continue to see broad financial market volatility as long the scale of moderation remains unknown. We appreciate your support during this tough financial environment through your investment in the Fund. We take seriously our tasks of growing and protecting that investment. Thank you for continued support of the Fund.
![s\ Craig A. Lang](https://capedge.com/proxy/N-CSRS/0000950123-10-081709/c59572c5957203.gif)
Craig A. Lang
President
Past performance is not a guarantee of future results.
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EQUITRUST VARIABLE INSURANCE SERIES FUND
June 30, 2010
June 30, 2010
Value Growth Portfolio
Portfolio Holdings by Industry Sector
Portfolio Holdings by Industry Sector
![](https://capedge.com/proxy/N-CSRS/0000950123-10-081709/c59572c5957204.gif)
High Grade Bond Portfolio
Portfolio Holdings by Credit Quality and Type of Security**
Portfolio Holdings by Credit Quality and Type of Security**
![](https://capedge.com/proxy/N-CSRS/0000950123-10-081709/c59572c5957205.gif)
Strategic Yield Portfolio
Portfolio Holdings by Credit Quality and Type of Security**
Portfolio Holdings by Credit Quality and Type of Security**
![](https://capedge.com/proxy/N-CSRS/0000950123-10-081709/c59572c5957206.gif)
* | This category may include short-term investments in commercial paper, money market mutual funds and U.S. government agencies, along with cash, receivables, prepaid expenses and other assets, less liabilities. |
** | Credit quality as reported by Standard & Poor’s. |
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EQUITRUST VARIABLE INSURANCE SERIES FUND
June 30, 2010
June 30, 2010
Managed Portfolio
Portfolio Holdings by Industry Sector
Portfolio Holdings by Industry Sector
![](https://capedge.com/proxy/N-CSRS/0000950123-10-081709/c59572c5957207.gif)
Money Market Portfolio
Portfolio Holdings by Asset Type
Portfolio Holdings by Asset Type
![](https://capedge.com/proxy/N-CSRS/0000950123-10-081709/c59572c5957208.gif)
Blue Chip Portfolio
Portfolio Holdings by Industry Sector
Portfolio Holdings by Industry Sector
![](https://capedge.com/proxy/N-CSRS/0000950123-10-081709/c59572c5957209.gif)
* | This category may include short-term investments in commercial paper, money market mutual funds and U.S. government agencies, along with cash, receivables, prepaid expenses and other assets, less liabilities. |
4
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Expense Example:
As a shareholder of the Fund, you may incur ongoing costs, including management fees and other Fund expenses. In addition, Service Class (SC) shares also incur distribution (12b-1) fees. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a given Portfolio and Share Class of the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested on January 1, 2010 and held until June 30, 2010.
Actual Expenses —
The first line for each Portfolio and Share Class in the following table provides information about actual account values and actual expenses for that Portfolio and Share Class. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” for the same Portfolio and Share Class to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes —
The second line for each Portfolio and Share Class in the following table provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of that Portfolio and Share Class and an assumed rate of return of 5% per year before expenses, which is not the actual return of the Portfolio and 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 a given Portfolio and Share Class of the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
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Beginning Account | Ending Account | Expenses Paid | Annualized | |||||||||||||
Value | Value | During Period | Expense | |||||||||||||
Portfolio and Share Class | 1/1/2010 | 6/30/2010 | 1/1/2010 - 6/30/2010 | Ratio (1) | ||||||||||||
Value Growth — IC | 0.59 | % | ||||||||||||||
Actual | $ | 1,000 | $ | 943.40 | $ | 2.84 | ||||||||||
Hypothetical (2) | $ | 1,000 | $ | 1,022.08 | $ | 2.96 | ||||||||||
Value Growth — SC | 0.84 | % | ||||||||||||||
Actual | $ | 1,000 | $ | 941.70 | $ | 4.03 | ||||||||||
Hypothetical (2) | $ | 1,000 | $ | 1,020.85 | $ | 4.20 | ||||||||||
High Grade Bond — IC | 0.45 | % | ||||||||||||||
Actual | $ | 1,000 | $ | 1,061.80 | $ | 2.28 | ||||||||||
Hypothetical (2) | $ | 1,000 | $ | 1,022.79 | $ | 2.23 | ||||||||||
High Grade Bond — SC | 0.69 | % | ||||||||||||||
Actual | $ | 1,000 | $ | 1,061.50 | $ | 3.54 | ||||||||||
Hypothetical (2) | $ | 1,000 | $ | 1,021.56 | $ | 3.48 | ||||||||||
Strategic Yield — IC | 0.60 | % | ||||||||||||||
Actual | $ | 1,000 | $ | 1,075.30 | $ | 3.07 | ||||||||||
Hypothetical (2) | $ | 1,000 | $ | 1,022.04 | $ | 3.00 | ||||||||||
Strategic Yield — SC | 0.85 | % | ||||||||||||||
Actual | $ | 1,000 | $ | 1,074.10 | $ | 4.35 | ||||||||||
Hypothetical (2) | $ | 1,000 | $ | 1,020.81 | $ | 4.24 | ||||||||||
Managed — IC | 0.57 | % | ||||||||||||||
Actual | $ | 1,000 | $ | 988.50 | $ | 2.83 | ||||||||||
Hypothetical (2) | $ | 1,000 | $ | 1,022.15 | $ | 2.88 | ||||||||||
Managed — SC | 0.82 | % | ||||||||||||||
Actual | $ | 1,000 | $ | 987.10 | $ | 4.05 | ||||||||||
Hypothetical (2) | $ | 1,000 | $ | 1,020.92 | $ | 4.12 | ||||||||||
Money Market — IC | 0.00 | % | ||||||||||||||
Actual | $ | 1,000 | $ | 1,000.50 | $ | 0.00 | ||||||||||
Hypothetical (2) | $ | 1,000 | $ | 1,025.00 | $ | 0.00 | ||||||||||
Money Market — SC | 0.00 | % | ||||||||||||||
Actual | $ | 1,000 | $ | 1,000.50 | $ | 0.00 | ||||||||||
Hypothetical (2) | $ | 1,000 | $ | 1,025.00 | $ | 0.00 | ||||||||||
Blue Chip — IC | 0.33 | % | ||||||||||||||
Actual | $ | 1,000 | $ | 939.40 | $ | 1.57 | ||||||||||
Hypothetical (2) | $ | 1,000 | $ | 1,023.39 | $ | 1.63 | ||||||||||
Blue Chip — SC | 0.57 | % | ||||||||||||||
Actual | $ | 1,000 | $ | 938.30 | $ | 2.76 | ||||||||||
Hypothetical (2) | $ | 1,000 | $ | 1,022.16 | $ | 2.88 | ||||||||||
(1) | Expenses are equal to the Annualized Expense Ratio as shown in the table for each Portfolio and Class, multiplied by the average account value over the period, multiplied by 181 days, and divided by 365 to reflect the one-half year period. | |
(2) | Hypothetical examples are based on 5% return before expenses. |
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EQUITRUST VARIABLE INSURANCE SERIES FUND
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2010
(Unaudited)
(Unaudited)
High | Strategic | |||||||||||||||||||||||
Value Growth | Grade Bond | Yield | Managed | Money Market | Blue Chip | |||||||||||||||||||
Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Investments in securities, at value (cost—$49,838,362; $52,127,017; $38,798,973; $70,066,443; $9,958,666; and $61,565,778, respectively) | $ | 47,702,798 | $ | 54,196,161 | $ | 40,148,054 | $ | 72,520,786 | $ | 9,958,666 | $ | 66,154,636 | ||||||||||||
Cash | — | — | — | — | 471,344 | — | ||||||||||||||||||
Receivables: | ||||||||||||||||||||||||
Accrued dividends and interest | 68,436 | 396,318 | 616,261 | 162,746 | 117 | 100,639 | ||||||||||||||||||
Fund shares sold | 12,284 | 5,429 | 4,880 | 12,858 | 11,089 | 26,995 | ||||||||||||||||||
Prepaid expense and other assets | 3,345 | 3,367 | 2,604 | 4,921 | 739 | 4,567 | ||||||||||||||||||
Total Assets | 47,786,863 | 54,601,275 | 40,771,799 | 72,701,311 | 10,441,955 | 66,286,837 | ||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||
Fund shares redeemed | 49,499 | 174,082 | 42,885 | 79,009 | 90,912 | 72,410 | ||||||||||||||||||
Dividends | — | 18 | 26 | — | 168 | — | ||||||||||||||||||
Accrued expenses | 4,017 | 4,462 | 3,761 | 4,541 | 3,155 | 4,818 | ||||||||||||||||||
Total Liabilities | 53,516 | 178,562 | 46,672 | 83,550 | 94,235 | 77,228 | ||||||||||||||||||
NET ASSETS | $ | 47,733,347 | $ | 54,422,713 | $ | 40,725,127 | $ | 72,617,761 | $ | 10,347,720 | $ | 66,209,609 | ||||||||||||
ANALYSIS OF NET ASSETS | ||||||||||||||||||||||||
Paid-in capital | $ | 53,866,575 | $ | 52,403,748 | $ | 43,351,210 | $ | 73,798,944 | $ | 10,347,720 | $ | 67,142,462 | ||||||||||||
Accumulated undistributed net investment income | 303,546 | 12,539 | 3,080 | 1,087,247 | — | 786,015 | ||||||||||||||||||
Accumulated net realized loss from investment transactions | (4,301,210 | ) | (62,718 | ) | (3,978,244 | ) | (4,722,773 | ) | — | (6,307,726 | ) | |||||||||||||
Net unrealized appreciation (depreciation) of investments | (2,135,564 | ) | 2,069,144 | 1,349,081 | 2,454,343 | — | 4,588,858 | |||||||||||||||||
NET ASSETS | $ | 47,733,347 | $ | 54,422,713 | $ | 40,725,127 | $ | 72,617,761 | $ | 10,347,720 | $ | 66,209,609 | ||||||||||||
See accompanying notes.
7
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EQUITRUST VARIABLE INSURANCE SERIES FUND
STATEMENTS OF ASSETS AND LIABILITIES (continued)
June 30, 2010
(Unaudited)
(Unaudited)
High | Strategic | |||||||||||||||||||||||
Value Growth | Grade Bond | Yield | Managed | Money Market | Blue Chip | |||||||||||||||||||
Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | |||||||||||||||||||
NET ASSET VALUE PER SHARE | ||||||||||||||||||||||||
Initial Class: Net Assets | $ | 47,153,358 | $ | 45,250,551 | $ | 39,735,802 | $ | 71,345,034 | $ | 9,427,133 | $ | 63,028,040 | ||||||||||||
Shares issued and outstanding | 4,187,726 | 4,316,376 | 4,361,879 | 5,438,424 | 9,427,133 | 2,092,245 | ||||||||||||||||||
Net asset value per share | $ | 11.26 | $ | 10.48 | $ | 9.11 | $ | 13.12 | $ | 1.00 | $ | 30.12 | ||||||||||||
Service Class: Net Assets | $ | 579,989 | $ | 9,172,162 | $ | 989,325 | $ | 1,272,727 | $ | 920,587 | $ | 3,181,569 | ||||||||||||
Shares issued and outstanding | 50,420 | 874,788 | 108,586 | 93,778 | 920,587 | 101,740 | ||||||||||||||||||
Net asset value per share | $ | 11.50 | $ | 10.49 | $ | 9.11 | $ | 13.57 | $ | 1.00 | $ | 31.27 | ||||||||||||
See accompanying notes.
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EQUITRUST VARIABLE INSURANCE SERIES FUND
STATEMENTS OF OPERATIONS
Six Months Ended June 30, 2010
(Unaudited)
(Unaudited)
Value | High | Strategic | ||||||||||||||||||||||
Growth | Grade Bond | Yield | Managed | Money Market | Blue Chip | |||||||||||||||||||
Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | |||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||
Dividends | $ | 457,535 | $ | — | $ | 31,000 | $ | 632,777 | $ | — | $ | 904,498 | ||||||||||||
Interest | 1,412 | 1,186,786 | 1,225,014 | 490,239 | 5,769 | 1,838 | ||||||||||||||||||
Less foreign tax withholding | — | — | — | (2,153 | ) | — | — | |||||||||||||||||
Total Investment Income | 458,947 | 1,186,786 | 1,256,014 | 1,120,863 | 5,769 | 906,336 | ||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||
Paid to Affiliates: | ||||||||||||||||||||||||
Investment advisory and management fees | 117,990 | 78,141 | 89,943 | 173,567 | 13,609 | 71,562 | ||||||||||||||||||
Distribution fees | 708 | 9,904 | 1,110 | 1,556 | 993 | 3,764 | ||||||||||||||||||
Accounting fees | 13,110 | 13,023 | 9,994 | 14,974 | 2,722 | 14,974 | ||||||||||||||||||
Custodian fees | 3,098 | 3,455 | 2,276 | 4,120 | 1,906 | 3,214 | ||||||||||||||||||
Professional fees | 9,417 | 9,761 | 7,942 | 13,528 | 3,171 | 12,000 | ||||||||||||||||||
Trustees’ fees and expenses | 4,043 | 4,113 | 1,750 | 5,995 | 478 | 5,510 | ||||||||||||||||||
Reports to shareholders | 1,071 | 1,032 | 798 | 1,581 | 240 | 1,458 | ||||||||||||||||||
Insurance and bonds | 2,570 | 2,620 | 2,053 | 3,906 | 651 | 3,442 | ||||||||||||||||||
Miscellaneous | 3,396 | 3,886 | 4,694 | 3,976 | 2,719 | 4,400 | ||||||||||||||||||
Total Expenses | 155,403 | 125,935 | 120,560 | 223,203 | 26,489 | 120,324 | ||||||||||||||||||
Waiver of fees | — | — | — | — | (26,489 | ) | — | |||||||||||||||||
Fees paid indirectly | (2 | ) | (2 | ) | (2 | ) | (3 | ) | (1 | ) | (3 | ) | ||||||||||||
Net Expenses | 155,401 | 125,933 | 120,558 | 223,200 | (1 | ) | 120,321 | |||||||||||||||||
Net Investment Income | 303,546 | 1,060,853 | 1,135,456 | 897,663 | 5,770 | 786,015 | ||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||||||||||||||||||
Net realized gain (loss) from investment transactions | 307,585 | (508 | ) | 22,164 | 76,853 | — | 950,631 | |||||||||||||||||
Change in unrealized appreciation (depreciation) of investments | (3,452,519 | ) | 2,086,296 | 1,776,680 | (1,721,673 | ) | — | (6,003,196 | ) | |||||||||||||||
Net Gain (Loss) on Investments | (3,144,934 | ) | 2,085,788 | 1,798,844 | (1,644,820 | ) | — | (5,052,565 | ) | |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (2,841,388 | ) | $ | 3,146,641 | $ | 2,934,300 | $ | (747,157 | ) | $ | 5,770 | $ | (4,266,550 | ) | |||||||||
See accompanying notes.
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EQUITRUST VARIABLE INSURANCE SERIES FUND
STATEMENTS OF CHANGES IN NET ASSETS
Value Growth Portfolio | High Grade Bond Portfolio | Strategic Yield Portfolio | ||||||||||||||||||||||
Six Months Ended | Six Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, 2010 | Year Ended | June 30, 2010 | Year Ended | June 30, 2010 | Year Ended | |||||||||||||||||||
(Unaudited) | December 31, 2009 | (Unaudited) | December 31, 2009 | (Unaudited) | December 31, 2009 | |||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||
Net investment income | $ | 303,546 | $ | 705,061 | $ | 1,060,853 | $ | 2,208,639 | $ | 1,135,456 | $ | 2,352,460 | ||||||||||||
Net realized gain (loss) from investment transactions | 307,585 | (3,427,768 | ) | (508 | ) | (65,458 | ) | 22,164 | (1,943,335 | ) | ||||||||||||||
Change in unrealized appreciation (depreciation) of investments | (3,452,519 | ) | 13,974,641 | 2,086,296 | 3,135,143 | 1,776,680 | 7,568,331 | |||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (2,841,388 | ) | 11,251,934 | 3,146,641 | 5,278,324 | 2,934,300 | 7,977,456 | |||||||||||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Initial Class | (701,627 | ) | (952,784 | ) | (896,707 | ) | (2,018,829 | ) | (1,100,642 | ) | (2,325,728 | ) | ||||||||||||
Service Class | (3,433 | ) | (872 | ) | (151,607 | ) | (189,810 | ) | (23,984 | ) | (26,732 | ) | ||||||||||||
Net realized gain from investment transactions: | ||||||||||||||||||||||||
Initial Class | — | — | — | (146,224 | ) | — | — | |||||||||||||||||
Service Class | — | — | — | (11,409 | ) | — | — | |||||||||||||||||
Total Dividends and Distributions | (705,060 | ) | (953,656 | ) | (1,048,314 | ) | (2,366,272 | ) | (1,124,626 | ) | (2,352,460 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS | (1,573,105 | ) | (2,203,492 | ) | 1,414,827 | 3,596,181 | (474,286 | ) | (2,816,721 | ) | ||||||||||||||
Total Increase (Decrease) in Net Assets | (5,119,553 | ) | 8,094,786 | 3,513,154 | 6,508,233 | 1,335,388 | 2,808,275 | |||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||
Beginning of period | 52,852,900 | 44,758,114 | 50,909,559 | 44,401,326 | 39,389,739 | 36,581,464 | ||||||||||||||||||
End of period (including accumulated undistributed net investment income as set forth below) | $ | 47,733,347 | $ | 52,852,900 | $ | 54,422,713 | $ | 50,909,559 | $ | 40,725,127 | $ | 39,389,739 | ||||||||||||
Accumulated Undistributed (Over-distributed) Net Investment Income | $ | 303,546 | $ | 705,060 | $ | 12,539 | $ | — | $ | 3,080 | $ | (7,750 | ) | |||||||||||
See accompanying notes.
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EQUITRUST VARIABLE INSURANCE SERIES FUND
STATEMENTS OF CHANGES IN NET ASSETS (continued)
Managed | Money Market | Blue Chip | ||||||||||||||||||||||
Portfolio | Portfolio | Portfolio | ||||||||||||||||||||||
Six Months Ended | Six Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, 2010 | Year Ended | June 30, 2010 | Year Ended | June 30, 2010 | Year Ended | |||||||||||||||||||
(Unaudited) | December 31, 2009 | (Unaudited) | December 31, 2009 | (Unaudited) | December 31, 2009 | |||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||
Net investment income | $ | 897,663 | $ | 1,907,332 | $ | 5,770 | $ | 15,235 | $ | 786,015 | $ | 1,601,198 | ||||||||||||
Net realized gain (loss) from investment transactions | 76,853 | (4,522,755 | ) | — | — | 950,631 | (789,775 | ) | ||||||||||||||||
Change in unrealized appreciation (depreciation) of investments | (1,721,673 | ) | 14,931,133 | — | — | (6,003,196 | ) | 10,179,669 | ||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (747,157 | ) | 12,315,710 | 5,770 | 15,235 | (4,266,550 | ) | 10,991,092 | ||||||||||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Initial Class | (1,881,816 | ) | (2,332,629 | ) | (5,305 | ) | (14,775 | ) | (1,569,649 | ) | (1,945,486 | ) | ||||||||||||
Service Class | (20,999 | ) | (3,856 | ) | (465 | ) | (460 | ) | (31,549 | ) | (5,662 | ) | ||||||||||||
Net realized gain from investment transactions: | ||||||||||||||||||||||||
Initial Class | — | — | — | — | — | — | ||||||||||||||||||
Service Class | — | — | — | — | — | — | ||||||||||||||||||
Total Dividends and Distributions | (1,902,815 | ) | (2,336,485 | ) | (5,770 | ) | (15,235 | ) | (1,601,198 | ) | (1,951,148 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS | (2,722,575 | ) | (3,741,537 | ) | (1,486,022 | ) | (2,994,789 | ) | 138,051 | 37,674 | ||||||||||||||
Total Increase (Decrease) in Net Assets | (5,372,547 | ) | 6,237,688 | (1,486,022 | ) | (2,994,789 | ) | (5,729,697 | ) | 9,077,618 | ||||||||||||||
NET ASSETS | ||||||||||||||||||||||||
Beginning of period | 77,990,308 | 71,752,620 | 11,833,742 | 14,828,531 | 71,939,306 | 62,861,688 | ||||||||||||||||||
End of period (including accumulated undistributed net investment income as set forth below) | $ | 72,617,761 | $ | 77,990,308 | $ | 10,347,720 | $ | 11,833,742 | $ | 66,209,609 | $ | 71,939,306 | ||||||||||||
Accumulated Undistributed (Over-distributed) Net Investment Income | $ | 1,087,247 | $ | 1,902,815 | $ | — | $ | — | $ | 786,015 | $ | 1,601,198 | ||||||||||||
See accompanying notes.
11
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EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
VALUE GROWTH PORTFOLIO
June 30, 2010
(Unaudited)
Shares | ||||||||
Held | Value | |||||||
COMMON STOCKS (94.41%) | ||||||||
AMUSEMENT AND RECREATION SERVICES (0.59%) | ||||||||
Bally Technologies, Inc. (1) | 8,700 | $ | 281,793 | |||||
AUTOMOTIVE DEALERS AND GASOLINE SERVICE STATIONS (2.15%) | ||||||||
AutoZone, Inc. (1) | 2,700 | 521,694 | ||||||
O’Reilly Automotive, Inc. (1) | 10,600 | 504,136 | ||||||
1,025,830 | ||||||||
BUSINESS SERVICES (7.83%) | ||||||||
Adobe Systems Inc. (1) | 11,700 | 309,231 | ||||||
Automatic Data Processing Inc. | 6,700 | 269,742 | ||||||
eBay Inc. (1) | 13,135 | 257,577 | ||||||
ManTech International Corp.-Series A (1) | 5,900 | 251,163 | ||||||
Microsoft Corp. | 55,255 | 1,271,418 | ||||||
Oracle Corp. | 46,070 | 988,662 | ||||||
Symantec Corp. (1) | 28,002 | 388,668 | ||||||
3,736,461 | ||||||||
CHEMICALS AND ALLIED PRODUCTS (12.51%) | ||||||||
Abbott Laboratories | 7,600 | 355,528 | ||||||
Amgen Inc. (1) | 7,625 | 401,075 | ||||||
Colgate-Palmolive Co. | 2,605 | 205,170 | ||||||
Dow Chemical Co. (The) | 5,330 | 126,428 | ||||||
E. I. du Pont de | ||||||||
Nemours and Co. | 16,005 | 553,613 | ||||||
Johnson & Johnson | 16,700 | 986,302 | ||||||
Merck & Co., Inc. | 8,638 | 302,071 | ||||||
Mylan Inc. (1) | 10,050 | 171,252 | ||||||
Myriad Genetics, Inc. (1) | 17,000 | 254,150 | ||||||
Pfizer Inc. | 44,486 | 634,370 | ||||||
Procter & Gamble Co. (The) | 19,425 | 1,165,111 | ||||||
Teva Pharmaceutical Industries Ltd. | 9,691 | 503,835 | ||||||
United Therapeutics Corp. (1) | 6,400 | 312,384 | ||||||
5,971,289 | ||||||||
COMMUNICATIONS (2.29%) | ||||||||
AT&T Inc. | 17,660 | 427,195 | ||||||
Comcast Corp.-Class A | 14,065 | 244,309 | ||||||
Verizon Communications Inc. | 15,065 | 422,121 | ||||||
1,093,625 | ||||||||
DEPOSITORY INSTITUTIONS (3.31%) | ||||||||
Bank of America Corp. | 16,089 | 231,199 | ||||||
Bank of New York Mellon Corp. (The) | 7,150 | 176,534 | ||||||
JPMorgan Chase & Co. | 6,600 | 241,626 | ||||||
New York Community Bancorp, Inc. | 23,156 | 353,592 | ||||||
Northern Trust Corp. | 6,900 | 322,230 | ||||||
U.S. Bancorp | 9,135 | 204,167 | ||||||
Wells Fargo & Co. | 1,981 | 50,714 | ||||||
1,580,062 | ||||||||
EATING AND DRINKING PLACES (0.30%) | ||||||||
McDonald’s Corp. | 2,200 | 144,914 | ||||||
ELECTRIC, GAS AND SANITARY SERVICES (3.87%) | ||||||||
Atmos Energy Corp. | 11,267 | 304,660 | ||||||
CMS Energy Corp. | 28,300 | 414,595 | ||||||
Integrys Energy Group, Inc. | 9,886 | 432,414 | ||||||
Pepco Holdings, Inc. | 12,335 | 193,413 | ||||||
Pinnacle West Capital Corp. | 9,200 | 334,512 | ||||||
Waste Management, Inc. | 5,300 | 165,837 | ||||||
1,845,431 | ||||||||
ELECTRONIC AND OTHER ELECTRICAL EQUIPMENT (5.89%) | ||||||||
BigBand Networks, Inc. (1) | 42,700 | 128,954 | ||||||
Cisco Systems, Inc. (1) | 46,570 | 992,407 | ||||||
Energy Conversion Devices, Inc. (1) | 13,100 | 53,710 | ||||||
General Electric Co. | 66,480 | 958,642 | ||||||
Helen of Troy Ltd.(1) | 8,966 | 197,790 | ||||||
Intel Corp. | 17,500 | 340,375 | ||||||
QUALCOMM Inc. | 4,200 | 137,928 | ||||||
2,809,806 | ||||||||
FABRICATED METAL PRODUCTS (1.09%) | ||||||||
Illinois Tool Works Inc. | 12,580 | 519,302 | ||||||
FOOD AND KINDRED PRODUCTS (3.17%) | ||||||||
Coca-Cola Co. (The) | 6,870 | 344,324 | ||||||
Coca-Cola FEMSA, S.A.B. de C.V. | 3,700 | 231,583 | ||||||
H.J. Heinz Co. | 6,100 | 263,642 | ||||||
Kraft Foods Inc. | 12,708 | 355,824 | ||||||
PepsiCo, Inc. | 5,180 | 315,721 | ||||||
1,511,094 | ||||||||
GENERAL MERCHANDISE STORES (2.35%) | ||||||||
Target Corp. | 8,415 | 413,766 | ||||||
Wal-Mart Stores, Inc. | 14,735 | 708,311 | ||||||
1,122,077 | ||||||||
HOLDING AND OTHER INVESTMENT OFFICES (2.93%) | ||||||||
Adams Express Co. (The) | 69,169 | 624,596 | ||||||
H&Q Life Sciences Investors | 38,359 | 336,792 | ||||||
ProShares UltraShort 20+ Year Treasury (1) | 6,900 | 244,812 | ||||||
Redwood Trust, Inc. | 13,200 | 193,248 | ||||||
1,399,448 | ||||||||
INDUSTRIAL MACHINERY AND EQUIPMENT (6.02%) | ||||||||
3M Co. | 5,890 | 465,251 | ||||||
Apple Inc. (1) | 4,160 | 1,046,365 | ||||||
EMC Corp. (1) | 62,025 | 1,135,057 | ||||||
Hewlett-Packard Co. | 5,270 | 228,086 | ||||||
2,874,759 | ||||||||
INSTRUMENTS AND RELATED PRODUCTS (3.39%) | ||||||||
Agilent Technologies, Inc. (1) | 7,000 | 199,010 | ||||||
Becton, Dickinson and Co. | 5,326 | 360,144 | ||||||
Bio-Rad Laboratories, Inc.-Class A (1) | 3,300 | 285,417 | ||||||
Danaher Corp. | 4,800 | 178,176 | ||||||
Mettler-Toledo International Inc. (1) | 3,375 | 376,751 | ||||||
Stryker Corp. | 4,380 | 219,263 | ||||||
1,618,761 |
12
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SCHEDULE OF INVESTMENTS
VALUE GROWTH PORTFOLIO (continued)
Shares | ||||||||
Held | Value | |||||||
COMMON STOCKS (continued) | ||||||||
INSURANCE AGENTS, BROKERS AND SERVICE (0.63%) | ||||||||
Arthur J. Gallagher & Co. | 12,365 | $ | 301,459 | |||||
INSURANCE CARRIERS (6.07%) | ||||||||
Allstate Corp. (The) | 4,910 | 141,064 | ||||||
American Equity Investment Life Holding Co. | 29,300 | 302,376 | ||||||
CIGNA Corp. | 10,400 | 323,024 | ||||||
CNO Financial Group, Inc. (1) | 50,000 | 247,500 | ||||||
EMC Insurance Group Inc. | 13,610 | 298,467 | ||||||
Hartford Financial Services | ||||||||
Group, Inc. (The) | 11,100 | 245,643 | ||||||
Kansas City Life Insurance Co. | 9,600 | 283,872 | ||||||
Lincoln National Corp. | 11,300 | 274,477 | ||||||
MetLife, Inc. | 8,705 | 328,701 | ||||||
Protective Life Corp. | 21,200 | 453,468 | ||||||
2,898,592 | ||||||||
LEGAL SERVICES (1.13%) | ||||||||
FTI Consulting, Inc. (1) | 12,400 | 540,516 | ||||||
METAL MINING (4.18%) | ||||||||
Agnico-Eagle Mines Ltd. | 2,000 | 121,560 | ||||||
Barrick Gold Corp. | 24,946 | 1,132,798 | ||||||
Newmont Mining Corp. | 12,000 | 740,880 | ||||||
1,995,238 | ||||||||
MISCELLANEOUS RETAIL (2.47%) | ||||||||
Cash America International, Inc. | 12,800 | 438,656 | ||||||
EZCORP, Inc. (1) | 28,000 | 519,400 | ||||||
GameStop Corp.-Class A (1) | 11,700 | 219,843 | ||||||
1,177,899 | ||||||||
MOTION PICTURES (0.59%) | ||||||||
Time Warner Inc. | 9,796 | 283,202 | ||||||
MOTOR FREIGHT TRANSPORTATION AND WAREHOUSING (0.68%) | ||||||||
United Parcel Service, Inc.- Class B | 5,675 | 322,851 | ||||||
OIL AND GAS EXTRACTION (6.38%) | ||||||||
Anadarko Petroleum Corp. | 10,200 | 368,118 | ||||||
Apache Corp. | 2,600 | 218,894 | ||||||
Baker Hughes Inc. | 6,200 | 257,734 | ||||||
Devon Energy Corp. | 4,600 | 280,232 | ||||||
Helmerich & Payne, Inc. | 14,600 | 533,192 | ||||||
Noble Corp. | 8,600 | 265,826 | ||||||
Occidental Petroleum Corp. | 6,800 | 524,620 | ||||||
Rowan Companies, Inc. (1) | 8,800 | 193,072 | ||||||
Transocean Ltd. (1) | 4,600 | 213,118 | ||||||
Weatherford International Ltd. (1) | 14,600 | 191,844 | ||||||
3,046,650 | ||||||||
PAPER AND ALLIED PRODUCTS (0.51%) | ||||||||
Kimberly-Clark Corp. | 4,020 | 243,733 | ||||||
PETROLEUM AND COAL PRODUCTS (3.29%) | ||||||||
Chevron Corp. | 10,300 | 698,958 | ||||||
ConocoPhillips | 10,257 | 503,516 | ||||||
Exxon Mobil Corp. | 4,500 | 256,815 | ||||||
Valero Energy Corp. | 6,300 | 113,274 | ||||||
1,572,563 | ||||||||
PRINTING AND PUBLISHING (0.90%) | ||||||||
John Wiley & Sons, Inc. | 11,100 | 429,237 | ||||||
RAILROAD TRANSPORTATION (0.46%) | ||||||||
Union Pacific Corp. | 3,140 | 218,261 | ||||||
RETAIL-DRUG AND PROPRIETARY STORES (0.29%) | ||||||||
Walgreen Co. | 5,245 | 140,042 | ||||||
RETAIL-FURNISHINGS AND HOME FURNITURE STORES (0.54%) | ||||||||
Bed Bath & Beyond Inc. (1) | 7,010 | $ | 259,931 | |||||
RUBBER AND MISCELLANEOUS PLASTICS PRODUCTS (0.67%) | ||||||||
Tupperware Brands Corp. | 8,000 | 318,800 | ||||||
SECURITY AND COMMODITY BROKERS (2.02%) | ||||||||
BGC Partners, Inc.-Class A | 68,775 | 351,440 | ||||||
Investment Technology | ||||||||
Group, Inc. (1) | 9,600 | 154,176 | ||||||
SEI Investments Co. | 22,450 | 457,082 | ||||||
962,698 | ||||||||
SERVICES-ENGINEERING, ACCOUNTING, RESEARCH & MANAGEMENT (0.75%) | ||||||||
Quest Diagnostics Inc. | 7,200 | 358,344 | ||||||
TOBACCO PRODUCTS (0.85%) | ||||||||
Philip Morris International Inc. | 8,810 | 403,850 | ||||||
TRANSPORTATION EQUIPMENT (3.45%) | ||||||||
Federal Signal Corp. | 13,300 | 80,332 | ||||||
Genuine Parts Co. | 6,200 | 244,590 | ||||||
Honeywell International Inc. | 18,835 | 735,130 | ||||||
ITT Corp. | 13,020 | 584,858 | ||||||
1,644,910 | ||||||||
WHOLESALE TRADE-NONDURABLE GOODS (0.86%) | ||||||||
Sysco Corp. | 14,390 | 411,122 | ||||||
Total Common Stocks (Cost $47,200,114) | 45,064,550 | |||||||
SHORT-TERM INVESTMENTS (5.53%) | ||||||||
MONEY MARKET MUTUAL FUND (0.92%) | ||||||||
JP Morgan U.S. Treasury Plus Money Market Fund (Cost $438.472) | 438,472 | 438,472 |
13
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EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
VALUE GROWTH PORTFOLIO (continued)
Principal | ||||||||
Amount | Value | |||||||
SHORT-TERM INVESTMENTS (continued) | ||||||||
Principal | ||||||||
Amount | Value | |||||||
COMMERCIAL PAPER (1.57%) | ||||||||
NON-DEPOSITORY CREDIT INSTITUTIONS | ||||||||
Citigroup Inc., due 07/09/10 (Cost $749,937) | $ | 750,000 | $ | 749,937 | ||||
UNITED STATES GOVERNMENT AGENCIES (3.04%) | ||||||||
Federal Home Loan Bank, due 07/21/10 | 750,000 | 749,946 | ||||||
Federal Home Loan Bank, due 08/25/10 | 700,000 | 699,893 | ||||||
Total United States Government | ||||||||
Agencies (Cost $1,449,839) | 1,449,839 | |||||||
Total Short-Term Investments (Cost $2,638,248) | 2,638,248 | |||||||
Total Investments (99.94%) (Cost $49,838,362) | 47,702,798 | |||||||
OTHER ASSETS LESS LIABILITIES (0.06%) | ||||||||
Cash, receivables, prepaid expense and other assets, less liabilities | 30,549 | |||||||
Total Net Assets (100.00%) | $ | 47,733,347 | ||||||
(1) | Non-income producing securities. |
See accompanying notes.
14
Table of Contents
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
HIGH GRADE BOND PORTFOLIO
June 30, 2010
(Unaudited)
Principal | ||||||||
Amount | Value | |||||||
CORPORATE BONDS (44.66%) | ||||||||
CHEMICALS AND ALLIED PRODUCTS (9.82%) | ||||||||
E. I. du Pont de Nemours and Co., 4.625%, due 01/15/20 | $ | 1,500,000 | $ | 1,620,060 | ||||
Merck & Co., Inc., 5.00%, due 06/30/19 | 1,500,000 | 1,679,190 | ||||||
Pfizer Inc., 5.35%, due 03/15/15 | 1,800,000 | 2,043,162 | ||||||
5,342,412 | ||||||||
DEPOSITORY INSTITUTIONS (7.61%) | ||||||||
Comerica Bank, 5.20%, due 08/22/17 | 1,000,000 | 1,028,460 | ||||||
Fifth Third Bancorp, 5.45%, due 01/15/17 | 1,000,000 | 1,032,980 | ||||||
Goldman Sachs Group, Inc. (The), 5.125%, due 01/15/15 | 900,000 | 949,491 | ||||||
PNC Preferred FD, 144A, 6.517%, due 12/31/49 (1) | 1,500,000 | 1,130,072 | ||||||
Washington Mutual Bank, FA, 5.65%, due 08/15/14 | 750,000 | 938 | ||||||
4,141,941 | ||||||||
ELECTRIC, GAS AND SANITARY SERVICES (15.19%) | ||||||||
Entergy LA LLC, 5.40%, due 11/01/24 | 375,000 | 406,830 | ||||||
Kinder Morgan Energy Partners, L.P., 5.30%, due 09/15/20 | 1,600,000 | 1,650,160 | ||||||
NorthWestern Corp., 6.34%, due 04/01/19 | 700,000 | 785,547 | ||||||
Oglethorpe Power Corp., 6.974%, due 06/30/11 | 71,000 | 74,157 | ||||||
PacifiCorp, 6.90%, due 11/15/11 | 750,000 | 807,630 | ||||||
Public Service of Colorado, 5.125%, due 06/01/19 | 1,500,000 | 1,682,280 | ||||||
South Carolina Electric & Gas Co., 6.50%, due 11/01/18 | 1,500,000 | 1,807,785 | ||||||
Westar Energy, Inc., 5.15%, due 01/01/17 | 1,000,000 | 1,052,120 | ||||||
8,266,509 | ||||||||
FOOD AND KINDRED PRODUCTS (1.89%) | ||||||||
Archer Daniels Midland Co., 5.935%, due 10/01/32 | 900,000 | 1,027,287 | ||||||
FURNITURE AND FIXTURES (0.94%) | ||||||||
Steelcase Inc., 6.50%, due 08/15/11 | 500,000 | 509,910 | ||||||
HOLDING AND OTHER INVESTMENT OFFICES (1.37%) | ||||||||
Washington Real Estate Investment Trust, 5.25%, due 01/15/14 | 700,000 | 748,524 | ||||||
INSURANCE CARRIERS (4.34%) | ||||||||
Prudential Financial, Inc., 6.10%, due 06/15/17 | 1,500,000 | 1,625,685 | ||||||
SunAmerica Inc., 8.125%, due 04/28/23 | 700,000 | 735,497 | ||||||
2,361,182 | ||||||||
PETROLEUM & COAL PRODUCTS (2.72%) | ||||||||
Conoco Inc., 6.95%, due 04/15/29 | 1,200,000 | 1,480,356 | ||||||
TRANSPORTATION — BY AIR (0.78%) | ||||||||
Continental Airlines, Inc. Pass- Through Certificates 1991-1 Class A, 6.545%, due 08/02/20 | 237,399 | 240,308 | ||||||
FedEx Corp. Pass-Through Certificates, 7.50%, due 01/15/18 | 171,994 | 184,816 | ||||||
425,124 | ||||||||
Total Corporate Bonds (Cost $23,559,228) | 24,303,245 | |||||||
COMMERCIAL MORTGAGE PASS — THROUGH CERTIFICATES (2.60%) | ||||||||
TIAA Seasoned Commercial Mortgage Trust 2007-C4 Class AJ, 6.07%, due 08/01/39 | 1,500,000 | 1,413,887 | ||||||
Total Commercial Mortgage Pass- Through Certificates (Cost $1,486,183) | 1,413,887 | |||||||
MORTGAGE-BACKED SECURITIES (35.36%) | ||||||||
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) (9.37%) | ||||||||
3023 Class TG, 5.50%, due 08/01/35 | 609,639 | 619,503 | ||||||
3051 Class MY, 5.50% due 10/01/25 | 1,000,000 | 1,084,770 | ||||||
Pool # A53146, 5.50%, due 10/01/36 | 832,570 | 895,325 | ||||||
Pool # A69436, 6.00%, due 12/01/37 | 380,707 | 413,421 | ||||||
Pool # G02562, 6.00%, due 01/01/37 | 603,002 | 656,085 | ||||||
Pool # G02648, 5.50%, due 12/01/36 | 760,706 | 818,044 | ||||||
Pool # G03803, 5.50%, due 01/01/38 | 569,469 | 611,916 | ||||||
5,099,064 | ||||||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (8.99%) | ||||||||
Pool # 50276, 9.50%, due 02/01/20 | 477 | 553 | ||||||
Pool # 256103, 5.50%, due 02/01/26 | 443,027 | 478,653 |
15
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EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
HIGH GRADE BOND PORTFOLIO (continued)
Principal | ||||||||
Amount | Value | |||||||
MORTGAGE-BACKED SECURITIES (continued) | ||||||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (continued) | ||||||||
Pool # 257306, 5.50%, due 08/01/38 | $ | 1,996,517 | $ | 2,145,916 | ||||
Pool # 897144, 6.00%, due 09/01/36 | 422,053 | 459,404 | ||||||
Pool # 906224, 5.50%, due 01/01/37 | 1,017,885 | 1,094,449 | ||||||
Pool # 928570, 6.00%, due 08/01/37 | 654,588 | 711,291 | ||||||
4,890,266 | ||||||||
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (17.00%) | ||||||||
2003-1 Class PE, 5.50%, due 07/01/32 | 1,000,000 | 1,096,455 | ||||||
2003-116 Class JC, 5.00%, due 05/01/30 | 1,000,000 | 1,012,551 | ||||||
Pool # 1512, 7.50%, due 12/01/23 | 8,856 | 10,021 | ||||||
Pool # 2631, 7.00%, due 08/01/28 | 13,719 | 15,355 | ||||||
Pool # 2658, 6.50%, due 10/01/28 | 23,448 | 26,627 | ||||||
Pool # 2701, 6.50%, due 01/01/29 | 30,651 | 34,745 | ||||||
Pool # 2796, 7.00%, due 08/01/29 | 22,469 | 25,162 | ||||||
Pool # 3039, 6.50%, due 02/01/31 | 8,276 | 9,271 | ||||||
Pool # 3040, 7.00%, due 02/01/31 | 15,001 | 16,815 | ||||||
Pool # 3188, 6.50%, due 01/01/32 | 49,281 | 55,018 | ||||||
Pool # 3239, 6.50%, due 05/01/32 | 45,319 | 50,595 | ||||||
Pool # 3261, 6.50%, due 07/01/32 | 93,397 | 104,271 | ||||||
Pool # 3320, 5.50%, due 12/01/32 | 382,857 | 417,362 | ||||||
Pool # 3333, 5.50%, due 01/01/33 | 322,686 | 351,665 | ||||||
Pool # 3375, 5.50%, due 04/01/33 | 48,862 | 53,250 | ||||||
Pool # 3390, 5.50%, due 05/01/33 | 214,632 | 233,907 | ||||||
Pool # 3403, 5.50%, due 06/01/33 | 364,867 | 397,634 | ||||||
Pool # 3458, 5.00%, due 10/01/33 | 370,123 | 397,719 | ||||||
Pool # 3499, 5.00%, due 01/01/34 | 528,538 | 567,282 | ||||||
Pool # 3556, 5.50%, due 05/01/34 | 528,545 | 575,108 | ||||||
Pool # 3623, 5.00%, due 10/01/34 | 875,981 | 940,194 | ||||||
Pool # 22630, 6.50%, due 08/01/28 | 12,896 | 14,644 | ||||||
Pool # 276337, 10.00%, due 08/01/19 | 3,337 | 3,887 | ||||||
Pool # 643816, 6.00%, due 07/01/25 | 770,657 | 846,037 | ||||||
Pool # 704189, 5.50%, due 01/01/39 | 674,134 | 729,708 | ||||||
Pool # 782604, 5.50%, due 03/01/39 | 1,171,392 | 1,267,960 | ||||||
9,253,243 | ||||||||
Total Mortgage-Backed Securities (Cost $17,845,150) | 19,242,573 | |||||||
SHORT-TERM INVESTMENTS (16.96%) | ||||||||
COMMERCIAL PAPER (5.69%) | ||||||||
NON-DEPOSITORY CREDIT INSTITUTIONS (3.86%) | ||||||||
Citigroup Inc., due 07/06/10 | 1,100,000 | 1,099,951 | ||||||
Citigroup Inc., due 08/18/10 | 1,000,000 | 999,427 | ||||||
2,099,378 | ||||||||
PETROLEUM AND COAL PRODUCTS (1.83%) | ||||||||
Chevron Corp., 0.19%, due 07/13/10 | 1,000,000 | 1,000,000 | ||||||
Total Commercial Paper (Cost $3,099,378) | 3,099,378 | |||||||
UNITED STATES GOVERNMENT AGENCIES (9.18%) | ||||||||
Federal Home Loan Bank, due 07/09/10 | 1,000,000 | 999,973 | ||||||
Federal Home Loan Bank, due 07/28/10 | 1,000,000 | 999,940 | ||||||
Federal Home Loan Mortgage Corp., due 08/23/10 | 1,000,000 | 999,882 | ||||||
Federal National Mortgage Assoc., due 08/02/10 | 1,000,000 | 999,876 | ||||||
Federal National Mortgage Assoc., due 08/11/10 | 1,000,000 | 999,898 | ||||||
Total United States Government Agencies (Cost $4,999,569) | 4,999,569 | |||||||
Shares | ||||||||
Held | ||||||||
MONEY MARKET MUTUAL FUND (2.09%) | ||||||||
JPMorgan U.S. Treasury Plus Money Market Fund (Cost $1,137,509) | 1,137,509 | 1,137,509 | ||||||
Total Short-Term Investments (Cost $9,236,456) | 9,236,456 | |||||||
Total Investments (99.58%) (Cost $52,127,017) | 54,196,161 |
16
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EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
HIGH GRADE BOND PORTFOLIO (continued)
Shares | ||||||||
Held | Value | |||||||
OTHER ASSETS LESS LIABILITIES (0.42%) | ||||||||
Cash, receivables, prepaid expense and other assets, less liabilities | $ | 226,552 | ||||||
Total Net Assets (100.00)% | $ | 54,422,713 | ||||||
(1) | Restricted Securities: | |
PNC Preferred FD, was purchased at 100.000 on 11/29/06. As of 06/30/10, the carrying value of each unit was 75.338, representing $1,130,072 or 2.08% of total net assets. |
See accompanying notes.
17
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EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
STRATEGIC YIELD PORTFOLIO
June 30, 2010
(Unaudited)
Shares | ||||||||
Held | Value | |||||||
PREFERRED STOCKS (1.93%) | ||||||||
DEPOSITORY INSTITUTIONS | ||||||||
Sovereign Capital Trust V, 7.75% (Cost $800,000) | 32,000 | $ | 785,280 | |||||
Principal | ||||||||
Amount | ||||||||
CORPORATE BONDS (77.79%) | ||||||||
APPAREL AND ACCESSORY STORES (3.20%) | ||||||||
Woolworth (FW) Corp., 8.50%, due 01/15/22 | $ | 1,400,000 | 1,302,000 | |||||
CHEMICALS AND ALLIED PRODUCTS (4.05%) | ||||||||
Lubrizol Corp. (The), 8.875%, due 02/01/19 | 750,000 | 937,402 | ||||||
Nova Chemicals Corp., 7.875%, due 09/15/25 | 800,000 | 713,192 | ||||||
1,650,594 | ||||||||
COMMUNICATIONS (2.52%) | ||||||||
Time Warner Inc., 8.375%, due 03/15/23 | 800,000 | 1,027,456 | ||||||
DEPOSITORY INSTITUTIONS (2.77%) | ||||||||
PNC Preferred FD, 144A, 6.517%, due 12/31/49 (1) | 1,500,000 | 1,130,072 | ||||||
ELECTRIC, GAS AND SANITARY SERVICES (15.10%) | ||||||||
Avista Corp., 5.95%, due 06/01/18 | 1,400,000 | 1,551,130 | ||||||
Bruce Mansfield Unit 1, 6.85%, due 06/01/34 | 1,471,660 | 1,589,216 | ||||||
Entergy Corp., 6.18%, due 03/01/35 | 1,700,000 | 1,753,431 | ||||||
ESI Tractebel Acquisition Corp., 7.99%, due 12/30/11 | 129,000 | 130,900 | ||||||
South Carolina Electric & Gas Co., 6.50%, due 11/01/18 | 800,000 | 964,152 | ||||||
Waterford 3 Nuclear Power Plant, 8.09%, due 01/02/17 | 151,622 | 159,084 | ||||||
6,147,913 | ||||||||
FABRICATED METAL PRODUCTS (3.54%) | ||||||||
Valmont Industries, Inc., 6.625%, due 04/20/20 | 1,400,000 | 1,443,358 | ||||||
FOOD STORES (3.61%) | ||||||||
Safeway Inc., 7.45%, due 09/15/27 | 1,200,000 | 1,468,996 | ||||||
FURNITURE AND FIXTURES (3.25%) | ||||||||
Steelcase Inc., 6.50%, due 08/15/11 | 1,300,000 | 1,325,766 | ||||||
HOLDING AND OTHER INVESTMENT OFFICES (14.97%) | ||||||||
First Industrial L.P., 7.60%, due 07/15/28 | 700,000 | 612,066 | ||||||
First Industrial L.P., 7.75%, due 04/15/32 | 500,000 | 439,740 | ||||||
Hospitality Properties Trust, 6.75%, due 02/15/13 | 1,300,000 | 1,363,271 | ||||||
HRPT Properties Trust, 6.25%, due 08/15/16 | 1,075,000 | 1,128,556 | ||||||
iStar Financial, Inc.-Series B, 5.70%, due 03/01/14 | 1,171,000 | 878,250 | ||||||
Realty Income Corp., 6.75%, due 08/15/19 | 1,500,000 | 1,675,770 | ||||||
6,097,653 | ||||||||
INSURANCE CARRIERS (1.48%) | ||||||||
PXRE Capital Trust, 8.85%, due 02/01/27 | 670,000 | 603,000 | ||||||
METAL MINING (2.71%) | ||||||||
Freeport McMoRan & Copper Gold Inc., 8.375%, due 04/01/17 | 1,000,000 | 1,102,960 | ||||||
OIL AND GAS EXTRACTION (4.18%) | ||||||||
Nabors Industries, Inc., 9.25%, due 01/15/19 | 700,000 | 858,459 | ||||||
Sabine Pass LNG, L.P., 7.50%, due 11/30/16 | 1,000,000 | 842,500 | ||||||
1,700,959 | ||||||||
PAPER AND ALLIED PRODUCTS (2.92%) | ||||||||
International Paper Co., 7.95%, due 06/15/18 | 1,000,000 | 1,190,620 | ||||||
PIPELINES (4.52%) | ||||||||
NuStar Logistics, L.P., 7.65%, due 04/15/18 | 1,600,000 | 1,840,048 | ||||||
STONE, CLAY, GLASS AND CONCRETE PRODUCTS (1.75%) | ||||||||
Owens Corning, 9.00%, due 06/15/19 | 600,000 | 710,724 | ||||||
TRANSPORTATION — BY AIR (2.14%) | ||||||||
Continental Airlines, Inc. Pass- Through Certificates 1997-1 Class 1A, 7.461%, due 10/01/16 | 872,403 | 872,403 | ||||||
WATER TRANSPORTATION (5.08%) | ||||||||
Overseas Shipholding Group, Inc., 8.75%, due 12/01/13 | 1,100,000 | 1,133,000 | ||||||
Windsor Petroleum Transportation, 144A, 7.84%, due 01/15/21 (1) | 988,394 | 936,187 | ||||||
2,069,187 | ||||||||
Total Corporate Bonds (Cost $30,700,822) | 31,683,709 |
18
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EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
STRATEGIC YIELD PORTFOLIO (continued)
Principal | ||||||||
Amount | Value | |||||||
MORTGAGE-BACKED SECURITIES (12.16%) | ||||||||
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) (8.11%) | ||||||||
3023 Class TG, 5.50%, due 08/01/35 | $ | 457,229 | $ | 464,627 | ||||
3051 Class MY, 5.50%, due 10/01/25 | 1,000,000 | 1,084,770 | ||||||
Pool # A53146, 5.50%, due 10/01/36 | 291,399 | 313,363 | ||||||
Pool # A69436, 6.00%, due 12/01/37 | 571,060 | 620,132 | ||||||
Pool # G02648, 5.50%, due 12/01/36 | 760,706 | 818,044 | ||||||
3,300,936 | ||||||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (4.05%) | ||||||||
Pool # 256103, 5.50%, due 02/01/26 | 443,027 | 478,653 | ||||||
Pool # 897144, 6.00%, due 09/01/36 | 422,053 | 459,404 | ||||||
Pool # 928570, 6.00%, due 08/01/37 | 654,588 | 711,291 | ||||||
1,649,348 | ||||||||
Total Mortgage-Backed Securities (Cost $4,569,370) | 4,950,284 | |||||||
SHORT-TERM INVESTMENTS (6.70%) | ||||||||
UNITED STATES GOVERNMENT AGENCIES (4.91%) | ||||||||
Federal Home Loan Bank, due 07/14/10 | 1,000,000 | 999,950 | ||||||
Federal Home Loan Mortgage Corp., due 08/23/10 | 1,000,000 | 999,882 | ||||||
Total United States Government Agencies (Cost $1,999,832) | 1,999,832 | |||||||
Shares | ||||||||
Held | Value | |||||||
MONEY MARKET MUTUAL FUND (1.79%) | ||||||||
JPMorgan U.S. Treasury Plus | ||||||||
Money Market Fund (Cost $728,949) | 728,949 | $ | 728,949 | |||||
Total Short-Term Investments (Cost $2,728,781) | 2,728,781 | |||||||
Total Investments (98.58%) (Cost $38,798,973) | 40,148,054 | |||||||
OTHER ASSETS LESS LIABILITIES (1.42%) | ||||||||
Cash, receivables, prepaid expense and other assets, less liabilities | 577,073 | |||||||
Total Net Assets (100.00)% | $ | 40,725,127 | ||||||
(1) | Restricted Securities: | |
PNC Preferred FD, was purchased at 100.000 on 11/29/06. As of 06/30/10, the carrying value of each unit was 75.338, representing $1,130,072 or 2.77% of total net assets. | ||
Windsor Petroleum Transportation was purchased at 80.500 on 08/26/99. As of 06/30/10, the carrying value of each unit was 94.718, representing $936,187 or 2.30% of total net assets. | ||
As of 06/30/10, the carrying value of all restricted securities was $2,066,259 or 5.07% of total net assets. |
See accompanying notes.
19
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EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
MANAGED PORTFOLIO
June 30, 2010
(Unaudited)
Shares | ||||||||
Held | Value | |||||||
COMMON STOCKS (72.89%) | ||||||||
AUTOMOTIVE DEALERS AND GASOLINE SERVICE STATIONS (1.41%) | ||||||||
AutoZone, Inc. (1) | 2,700 | $ | 521,694 | |||||
O’Reilly Automotive, Inc. (1) | 10,600 | 504,136 | ||||||
1,025,830 | ||||||||
BUSINESS SERVICES (3.48%) | ||||||||
Automatic Data Processing, Inc. | 11,300 | 454,938 | ||||||
eBay Inc. (1) | 8,900 | 174,529 | ||||||
Microsoft Corp. | 59,400 | 1,366,794 | ||||||
Oracle Corp. | 24,830 | 532,852 | ||||||
2,529,113 | ||||||||
CHEMICALS AND ALLIED PRODUCTS (10.12%) | ||||||||
Abbott Laboratories | 17,500 | 818,650 | ||||||
Amgen Inc. (1) | 3,900 | 205,140 | ||||||
Colgate-Palmolive Co. | 4,330 | 341,031 | ||||||
Dow Chemical Co. (The) | 13,965 | 331,250 | ||||||
E. I. du Pont de Nemours and Co. | 22,875 | 791,246 | ||||||
Johnson & Johnson | 26,912 | 1,589,423 | ||||||
Merck & Co., Inc. | 9,054 | 316,618 | ||||||
Mylan Inc. (1) | 19,050 | 324,612 | ||||||
Pfizer Inc. | 67,084 | 956,618 | ||||||
Procter & Gamble Co. (The) | 18,005 | 1,079,940 | ||||||
Teva Pharmaceutical Industries Ltd. | 11,399 | 592,634 | ||||||
7,347,162 | ||||||||
COMMUNICATIONS (1.54%) | ||||||||
AT&T Inc. | 12,600 | 304,794 | ||||||
Comcast Corp.-Class A | 13,590 | 236,058 | ||||||
Verizon Communications Inc. | 20,675 | 579,314 | ||||||
1,120,166 | ||||||||
DEPOSITORY INSTITUTIONS (3.36%) | ||||||||
Bank of America Corp. | 17,202 | 247,193 | ||||||
Bank of New York Mellon Corp. (The) | 12,108 | 298,947 | ||||||
JPMorgan Chase & Co. | 10,400 | 380,744 | ||||||
New York Community Bancorp, Inc. | 44,834 | 684,615 | ||||||
Northern Trust Corp. | 10,625 | 496,188 | ||||||
U.S. Bancorp | 12,895 | 288,203 | ||||||
Wells Fargo & Co. | 1,658 | 42,445 | ||||||
2,438,335 | ||||||||
ELECTRIC, GAS AND SANITARY SERVICES (5.69%) | ||||||||
Atmos Energy Corp. | 22,952 | 620,622 | ||||||
Integrys Energy Group, Inc. | 14,304 | 625,657 | ||||||
Pepco Holdings, Inc. | 17,790 | 278,947 | ||||||
Pinnacle West Capital Corp. | 24,200 | 879,912 | ||||||
Tortoise Energy Capital Corp. | 54,267 | 1,243,257 | ||||||
Waste Management, Inc. | 15,400 | 481,866 | ||||||
4,130,261 | ||||||||
ELECTRONIC AND OTHER ELECTRICAL EQUIPMENT (4.75%) | ||||||||
Cisco Systems, Inc. (1) | 35,830 | 763,537 | ||||||
Energy Conversion Devices, Inc. (1) | 14,000 | 57,400 | ||||||
General Electric Co. | 106,965 | 1,542,435 | ||||||
Helen of Troy Ltd. (1) | 12,334 | 272,088 | ||||||
Intel Corp. | 42,000 | 816,900 | ||||||
3,452,360 | ||||||||
FABRICATED METAL PRODUCTS (0.58%) | ||||||||
Illinois Tool Works Inc. | 10,155 | 419,198 | ||||||
FOOD AND KINDRED PRODUCTS (2.99%) | ||||||||
Coca-Cola Co. (The) | 10,380 | 520,246 | ||||||
Diageo plc | 7,200 | 451,728 | ||||||
Kraft Foods Inc. | 15,399 | 431,172 | ||||||
PepsiCo, Inc. | 12,650 | 771,018 | ||||||
2,174,164 | ||||||||
GENERAL MERCHANDISE STORES (1.67%) | ||||||||
Target Corp. | 4,760 | 234,049 | ||||||
Wal-Mart Stores, Inc. | 20,290 | 975,340 | ||||||
1,209,389 | ||||||||
HOLDING AND OTHER INVESTMENT OFFICES (0.68%) | ||||||||
H&Q Life Sciences Investors | 21,230 | 186,399 | ||||||
Redwood Trust, Inc. | 20,900 | 305,976 | ||||||
492,375 | ||||||||
INDUSTRIAL MACHINERY AND EQUIPMENT (4.47%) | ||||||||
3M Co. | 6,535 | 516,200 | ||||||
Apple Inc. (1) | 4,400 | 1,106,732 | ||||||
EMC Corp. (1) | 36,800 | 673,440 | ||||||
Hewlett-Packard Co. | 5,460 | 236,309 | ||||||
Ingersoll-Rand plc | 20,634 | 711,667 | ||||||
3,244,348 | ||||||||
INSTRUMENTS AND RELATED PRODUCTS (0.94%) | ||||||||
Becton, Dickinson and Co. | 6,235 | 421,611 | ||||||
Stryker Corp. | 5,140 | 257,308 | ||||||
678,919 | ||||||||
INSURANCE AGENTS, BROKERS AND SERVICE (0.59%) | ||||||||
Arthur J. Gallagher & Co. | 17,455 | 425,553 | ||||||
INSURANCE CARRIERS (5.79%) | ||||||||
Allstate Corp. (The) | 7,140 | 205,132 | ||||||
CNO Financial Group, Inc. (1) | 75,000 | 371,250 | ||||||
EMC Insurance Group Inc. | 43,593 | 955,994 | ||||||
Hartford Financial Services Group, Inc. (The) | 16,600 | 367,358 | ||||||
Kansas City Life Insurance Co. | 14,300 | 422,851 | ||||||
Lincoln National Corp. | 16,700 | 405,643 | ||||||
MetLife, Inc. | 11,370 | 429,331 | ||||||
Old Republic International Corp. | 31,100 | 377,243 | ||||||
Protective Life Corp. | 31,400 | 671,646 | ||||||
4,206,448 | ||||||||
LEGAL SERVICES (0.56%) | ||||||||
FTI Consulting, Inc. (1) | 9,300 | 405,387 |
20
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EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
MANAGED PORTFOLIO (continued)
Shares | ||||||||
Held | Value | |||||||
COMMON STOCKS (continued) | ||||||||
METAL MINING (5.11%) | ||||||||
Barrick Gold Corp. | 57,916 | $ | 2,629,966 | |||||
Newmont Mining Corp. | 17,500 | 1,080,450 | ||||||
3,710,416 | ||||||||
MISCELLANEOUS RETAIL (1.32%) | ||||||||
Cash America International, Inc. | 12,800 | 438,656 | ||||||
EZCORP, Inc. (1) | 28,000 | 519,400 | ||||||
958,056 | ||||||||
MOTOR FREIGHT TRANSPORTATION AND WAREHOUSING (0.53%) | ||||||||
United Parcel Service, Inc.-Class B | 6,720 | 382,301 | ||||||
OIL AND GAS EXTRACTION (5.36%) | ||||||||
Anadarko Petroleum Corp. | 13,700 | 494,433 | ||||||
Apache Corp. | 3,400 | 286,246 | ||||||
Baker Hughes Inc. | 8,700 | 361,659 | ||||||
Devon Energy Corp. | 6,400 | 389,888 | ||||||
Occidental Petroleum Corp. | 22,250 | 1,716,588 | ||||||
Rowan Companies, Inc. (1) | 16,700 | 366,398 | ||||||
Weatherford International Ltd. (1) | 21,000 | 275,940 | ||||||
3,891,152 | ||||||||
PAPER AND ALLIED PRODUCTS (0.51%) | ||||||||
Kimberly-Clark Corp. | 6,115 | 370,752 | ||||||
PETROLEUM AND COAL PRODUCTS (1.91%) | ||||||||
ConocoPhillips | 17,170 | 842,875 | ||||||
Exxon Mobil Corp. | 6,100 | 348,127 | ||||||
Valero Energy Corp. | 11,100 | 199,578 | ||||||
1,390,580 | ||||||||
PIPELINES (2.50%) | ||||||||
Kinder Morgan Management, LLC (1) | 32,025 | 1,812,295 | ||||||
PRINTING AND PUBLISHING (0.59%) | ||||||||
John Wiley & Sons, Inc. | 11,100 | 429,237 | ||||||
RETAIL-DRUG AND PROPRIETARY STORES (0.23%) | ||||||||
Walgreen Co. | 6,360 | 169,812 | ||||||
RUBBER AND MISCELLANEOUS PLASTICS PRODUCTS (0.72%) | ||||||||
Tupperware Brands Corp. | 13,100 | 522,035 | ||||||
SECURITY AND COMMODITY BROKERS (0.76%) | ||||||||
BGC Partners, Inc.,-Class A | 108,505 | 554,461 | ||||||
SERVICES-ENGINEERING, ACCOUNTING, RESEARCH & MANAGEMENT (0.86%) | ||||||||
Quest Diagnostics Inc. | 12,600 | 627,102 | ||||||
TOBACCO PRODUCTS (0.62%) | ||||||||
Philip Morris International Inc. | 9,835 | 450,836 | ||||||
TRANSPORTATION EQUIPMENT (2.58%) | ||||||||
Federal Signal Corp. | 36,400 | 219,856 | ||||||
Genuine Parts Co. | 13,600 | 536,520 | ||||||
Honeywell International Inc. | 16,905 | 659,802 | ||||||
ITT Corp. | 10,190 | 457,735 | ||||||
1,873,913 | ||||||||
WHOLESALE TRADE — NONDURABLE GOODS (0.67%) | ||||||||
Sysco Corp. | 17,085 | 488,118 | ||||||
Total Common Stocks | ||||||||
(Cost $51,983,868) | 52,930,074 | |||||||
Principal | ||||||||
Amount | ||||||||
MORTGAGE-BACKED SECURITIES (24.36%) | ||||||||
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) | ||||||||
2003-1 Class PE, 5.50%, due 07/01/32 | $ | 2,250,000 | 2,467,024 | |||||
2003-11 Class QC, 5.50%, due 02/01/33 | 2,500,000 | 2,782,652 | ||||||
2003-71 Class AK, 5.00%, due 09/01/29 | 600,000 | 596,139 | ||||||
2003-116 Class JC, 5.00%, due 05/01/30 | 1,560,000 | 1,579,580 | ||||||
2004-22 Class BK, 3.47%, due 04/01/34 | 64,546 | 65,179 | ||||||
2004-26 Class GC, 5.00%, due 06/01/31 | 1,300,000 | 1,373,372 | ||||||
2004-72 Class DE, 5.00%, due 07/01/32 | 500,000 | 532,415 | ||||||
2004-76 Class VG, 5.00%, due 09/01/23 | 700,000 | 697,422 | ||||||
2004-89 Class KC, 4.00%, due 10/01/34 | 256,320 | 264,185 | ||||||
2004-105 Class VE, 5.50%, due 05/01/24 | 2,000,000 | 2,209,878 | ||||||
2004-109 Class WE, 5.00%, due 05/01/33 | 780,000 | 845,145 | ||||||
2005-44 Class KC, 5.00%, due 04/01/31 | 1,125,676 | 1,159,645 | ||||||
2005-80 Class VC, 5.00%, due 05/01/29 | 1,000,000 | 1,094,364 | ||||||
2006-38 Class OG, 5.00%, due 06/01/36 | 1,448,667 | 1,546,445 | ||||||
Pool # 2796, 7.00%, due 08/01/29 | 33,704 | 37,743 | ||||||
Pool # 3040, 7.00%, due 02/01/31 | 18,752 | 21,019 | ||||||
Pool # 3188, 6.50%, due 01/01/32 | 49,281 | 55,018 | ||||||
Pool # 3239, 6.50%, due 05/01/32 | 75,898 | 84,735 | ||||||
Pool # 3333, 5.50%, due 01/01/33 | 141,175 | 153,854 |
21
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EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
MANAGED PORTFOLIO (continued)
Principal | ||||||||
Amount | Value | |||||||
MORTGAGE-BACKED SECURITIES (continued) | ||||||||
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (continued) | ||||||||
Pool # 3403, 5.50%, due 06/01/33 | $ | 115,019 | $ | 125,348 | ||||
Total Mortgage-Backed Securities (Cost $16,183,025) | 17,691,162 | |||||||
SHORT-TERM INVESTMENTS (2.62%) | ||||||||
UNITED STATES GOVERNMENT AGENCIES (1.38%) | ||||||||
Federal Home Loan Bank, due 07/09/10 (Cost $999,973) | 1,000,000 | 999,973 | ||||||
Shares | ||||||||
Held | ||||||||
MONEY MARKET MUTUAL FUND (1.24%) | ||||||||
JPMorgan U.S. Treasury Plus | ||||||||
Money Market Fund (Cost $899,577) | 899,577 | 899,577 | ||||||
Total Short-Term Investments (Cost $1,899,550) | 1,899,550 | |||||||
Total Investments (99.87%) (Cost $70,066,443) | 72,520,786 | |||||||
OTHER ASSETS LESS LIABILITIES (0.13%) | ||||||||
Cash, receivables, prepaid expense and other assets, less liabilities | 96,975 | |||||||
Total Net Assets (100.00)% | $ | 72,617,761 | ||||||
(1) | Non-income producing securities. |
See accompanying notes.
22
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EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
MONEY MARKET PORTFOLIO
June 30, 2010
(Unaudited)
Annualized | ||||||||||||
Yield on | ||||||||||||
Purchase | Principal | |||||||||||
Date | Amount | Value | ||||||||||
SHORT-TERM INVESTMENTS (96.24%) | ||||||||||||
COMMERCIAL PAPER (13.14%) | ||||||||||||
NONDEPOSITORY INSTITUTIONS (8.79%) | ||||||||||||
Citigroup Inc., due 07/06/10 | 0.320 | % | $ | 450,000 | $ | 449,980 | ||||||
General Electric Co., due 08/26/10 | 0.140 | 460,000 | 460,000 | |||||||||
909,980 | ||||||||||||
PETROLEUM AND COAL PRODUCTS (4.35%) | ||||||||||||
Chevron Corp., due 07/01/10 | 0.210 | 450,000 | 450,000 | |||||||||
Total Commercial Paper (Cost $1,359,980) | 1,359,980 | |||||||||||
UNITED STATES GOVERNMENT AGENCIES (69.09%) | �� | |||||||||||
Federal Farm Credit Bank, due 07/09/10 | 0.142 | 400,000 | 399,988 | |||||||||
Federal Farm Credit Bank, due 07/23/10 | 0.142 | 500,000 | 499,957 | |||||||||
Federal Home Loan Bank, due 08/05/10 | 0.112 | 350,000 | 349,963 | |||||||||
Federal Home Loan Bank, due 08/09/10 | 0.122 | 300,000 | 299,961 | |||||||||
Federal Home Loan Bank, due 08/20/10 | 0.162 | 500,000 | 499,889 | |||||||||
Federal Home Loan Bank, due 08/23/10 | 0.183 | 500,000 | 499,867 | |||||||||
Federal Home Loan Bank, due 09/03/10 | 0.122 | 300,000 | 299,936 | |||||||||
Federal Home Loan Bank, due 09/14/10 | 0.112 | 350,000 | 349,920 | |||||||||
Federal Home Loan Mortgage Corp., due 07/14/10 | 0.142 | 475,000 | 474,976 | |||||||||
Federal Home Loan Mortgage Corp., due 08/16/10 | 0.157 | 525,000 | 524,896 | |||||||||
Federal Home Loan Mortgage Corp., due 08/25/10 | 0.071 | 400,000 | 399,957 | |||||||||
Federal Home Loan Mortgage Corp., due 09/07/10 | 0.122 | 400,000 | 399,909 | |||||||||
Federal Home Loan Mortgage Corp., due 09/21/10 | 0.122 | 300,000 | 299,918 | |||||||||
Federal National Mortgage Assoc., due 07/21/10 | 0.142 | 450,000 | 449,965 | |||||||||
Federal National Mortgage Assoc., due 07/28/10 | 0.142 | 500,000 | 499,947 | |||||||||
Federal National Mortgage Assoc., due 08/02/10 | 0.147 | 500,000 | 499,936 | |||||||||
Federal National Mortgage Assoc., due 08/11/10 | 0.162 | 400,000 | 399,927 | |||||||||
Total United States Government Agencies (Cost $7,148,912) | 7,148,912 | |||||||||||
UNITED STATES TREASURY OBLIGATIONS (14.01%) | ||||||||||||
U.S. Treasury Bills, due 07/15/10 | 0.157 | 600,000 | 599,964 | |||||||||
U.S. Treasury Bills, due 09/09/10 | 0.132 | 500,000 | 499,874 | |||||||||
U.S. Treasury Bills, due 09/16/10 | 0.086 | 350,000 | 349,936 | |||||||||
Total United States Treasury Obligations (Cost $1,449,774) | 1,449,774 | |||||||||||
Total Short-Term Investments (Cost $9,958,666) | 9,958,666 | |||||||||||
OTHER ASSETS LESS LIABILITIES (3.76%) | ||||||||||||
Cash, receivables, prepaid expense and other assets, less liabilities | 389,054 | |||||||||||
Total Net Assets (100.00)% | $ | 10,347,720 | ||||||||||
See accompanying notes.
23
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EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
BLUE CHIP PORTFOLIO
June 30, 2010
(Unaudited)
Shares | ||||||||
Held | Value | |||||||
COMMON STOCKS (93.74%) | ||||||||
BUSINESS SERVICES (5.04%) | ||||||||
Microsoft Corp. | 91,883 | $ | 2,114,228 | |||||
Oracle Corp. | 57,149 | 1,226,418 | ||||||
3,340,646 | ||||||||
CHEMICALS AND ALLIED PRODUCTS (18.02%) | ||||||||
Abbott Laboratories | 24,755 | 1,158,039 | ||||||
Amgen Inc. (1) | 17,835 | 938,121 | ||||||
Bristol-Myers Squibb Co. | 41,053 | 1,023,862 | ||||||
Colgate-Palmolive Co. | 6,950 | 547,382 | ||||||
Dow Chemical Co. (The) | 10,505 | 249,179 | ||||||
E. I. du Pont de Nemours and Co. | 15,756 | 545,000 | ||||||
Eli Lilly and Co. | 17,662 | 591,677 | ||||||
Johnson & Johnson | 42,710 | 2,522,453 | ||||||
Merck & Co., Inc. | 31,708 | 1,108,829 | ||||||
Pfizer Inc. | 44,377 | 632,816 | ||||||
Procter & Gamble Co. (The) | 43,542 | 2,611,649 | ||||||
11,929,007 | ||||||||
COMMUNICATIONS (3.69%) | ||||||||
AT&T Inc. | 34,855 | 843,143 | ||||||
Comcast Corp.-Class A | 33,054 | 574,148 | ||||||
Verizon Communications Inc. | 36,562 | 1,024,467 | ||||||
2,441,758 | ||||||||
DEPOSITORY INSTITUTIONS (5.53%) | ||||||||
Bank of America Corp. | 45,666 | 656,220 | ||||||
Citigroup Inc. (1) | 48,341 | 181,762 | ||||||
JPMorgan Chase & Co. | 46,325 | 1,695,958 | ||||||
Wells Fargo & Co. | 44,074 | 1,128,294 | ||||||
3,662,234 | ||||||||
EATING AND DRINKING PLACES (4.42%) | ||||||||
McDonald’s Corp. | 44,467 | 2,929,041 | ||||||
ELECTRIC, GAS AND SANITARY SERVICES (2.45%) | ||||||||
Exelon Corp. | 24,105 | 915,267 | ||||||
Southern Co. (The) | 21,215 | 706,035 | ||||||
1,621,302 | ||||||||
ELECTRONIC AND OTHER ELECTRICAL EQUIPMENT (6.77%) | ||||||||
Cisco Systems, Inc. (1) | 61,023 | 1,300,400 | ||||||
General Electric Co. | 84,256 | 1,214,972 | ||||||
Intel Corp. | 57,041 | 1,109,448 | ||||||
Motorola, Inc. (1) | 37,189 | 242,472 | ||||||
Texas Instruments Inc. | 26,461 | 616,012 | ||||||
4,483,304 | ||||||||
FOOD AND KINDRED PRODUCTS (4.87%) | ||||||||
Coca-Cola Co. (The) | 31,034 | 1,555,424 | ||||||
Kraft Foods Inc. | 26,424 | 739,872 | ||||||
PepsiCo, Inc. | 15,208 | 926,928 | ||||||
3,222,224 | ||||||||
GENERAL MERCHANDISE STORES (3.92%) | ||||||||
Target Corp. | 11,900 | 585,123 | ||||||
Wal-Mart Stores, Inc. | 41,773 | 2,008,028 | ||||||
2,593,151 | ||||||||
LUMBER AND WOOD PRODUCTS (0.33%) | ||||||||
Weyerhaeuser Co. | 6,270 | 220,704 | ||||||
INDUSTRIAL MACHINERY AND EQUIPMENT (11.99%) | ||||||||
3M Co. | 17,453 | 1,378,613 | ||||||
Applied Materials, Inc. | 23,520 | 282,710 | ||||||
Caterpillar Inc. | 28,044 | 1,684,603 | ||||||
Dell Inc. (1) | 30,585 | 368,855 | ||||||
EMC Corp. (1) | 37,308 | 682,736 | ||||||
Hewlett-Packard Co. | 40,454 | 1,750,849 | ||||||
International Business Machines Corp. | 14,526 | 1,793,671 | ||||||
7,942,037 | ||||||||
MOTION PICTURES (2.44%) | ||||||||
Time Warner Inc. | 16,497 | 476,928 | ||||||
Walt Disney Co. (The) | 36,092 | 1,136,898 | ||||||
1,613,826 | ||||||||
NON-DEPOSITORY CREDIT INSTITUTIONS (3.28%) | ||||||||
American Express Co. | 54,692 | 2,171,272 | ||||||
PETROLEUM AND COAL PRODUCTS (9.99%) | ||||||||
Chevron Corp. | 38,610 | 2,620,075 | ||||||
Exxon Mobil Corp. | 69,936 | 3,991,248 | ||||||
6,611,323 | ||||||||
PRIMARY METAL INDUSTRIES (0.46%) | ||||||||
Alcoa Inc. | 30,278 | 304,597 | ||||||
SECURITY AND COMMODITY BROKERS (0.56%) | ||||||||
Ameriprise Financial, Inc. | 10,349 | 373,909 | ||||||
TOBACCO PRODUCTS (3.27%) | ||||||||
Altria Group, Inc. | 38,185 | 765,227 | ||||||
Philip Morris International Inc. | 30,485 | 1,397,432 | ||||||
2,162,659 | ||||||||
TRANSPORTATION EQUIPMENT (6.71%) | ||||||||
Boeing Co. (The) | 26,912 | 1,688,728 | ||||||
Honeywell International Inc. | 37,254 | 1,454,024 | ||||||
United Technologies Corp. | 20,007 | 1,298,654 | ||||||
4,441,406 | ||||||||
Total Common Stocks (Cost $57,475,542) | 62,064,400 | |||||||
SHORT-TERM INVESTMENTS (6.18%) | ||||||||
MONEY MARKET MUTUAL FUND (0.52%) | ||||||||
JPMorgan U.S. Treasury Plus Money Market Fund (Cost $340,546) | 340,546 | 340,546 | ||||||
Principal | ||||||||
Amount | ||||||||
UNITED STATES GOVERNMENT AGENCIES (4.15%) | ||||||||
Federal Home Loan Bank, due 07/14/10 | $ | 1,000,000 | 999,949 | |||||
Federal Home Loan Bank, due 08/12/10 | 750,000 | 749,921 | ||||||
Federal National Mortgage Assoc., due 08/11/10 | 1,000,000 | 999,898 | ||||||
Total United States Government Agencies (Cost $2,749,768) | 2,749,768 |
24
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EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
BLUE CHIP PORTFOLIO (continued)
Principal | ||||||||
Amount | Value | |||||||
SHORT-TERM INVESTMENTS (continued) | ||||||||
COMMERCIAL PAPER (1.51%) | ||||||||
NON-DEPOSITORY CREDIT INSTITUTIONS | ||||||||
Citigroup Inc., due 07/08/10 (Cost $999,922) | $ | 1,000,000 | $ | 999,922 | ||||
Total Short-Term Investments (Cost $4,090,236) | 4,090,236 | |||||||
Total Investments (99.92%) (Cost $61,565,778) | 66,154,636 | |||||||
OTHER ASSETS LESS LIABILITIES (0.08%) | ||||||||
Cash, receivables, prepaid expense and other assets, less liabilities | 54,973 | |||||||
Total Net Assets (100.00)% | $ | 66,209,609 | ||||||
(1) | Non-income producing securities. |
See accompanying notes.
25
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EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
(Unaudited)
1. | Significant Accounting Policies |
Organization
EquiTrust Variable Insurance Series Fund (the “Fund”) is registered under the Investment Company Act of 1940, as amended, as a no-load, open-end diversified management investment company, or mutual fund. The Fund is authorized to issue an unlimited number of shares of beneficial interest with no par value. The Fund currently consists of six portfolios (known as the Value Growth, High Grade Bond, Strategic Yield, Managed, Money Market and Blue Chip Portfolios). The Fund offers Initial Class (IC) and Service Class (SC) shares. The Fund began offering SC shares on June 1, 2008. Shares of the Fund are sold only to certain life insurance companies’ separate accounts to fund the benefits under variable insurance contracts issued by such life insurance companies, including Farm Bureau Life Insurance Company and EquiTrust Life Insurance Company (see Note 3).
SC shares are charged distribution fees while IC shares are not. The shares of each Portfolio have equal rights and privileges with all other shares of that Portfolio, except SC shares have separate and exclusive voting rights with respect to the Fund’s Rule 12b-1 Plan. Each share of a Portfolio represents an equal proportionate interest in that Portfolio with each other share, subject to any preferences (such as resulting from Rule 12b-1 distribution fees with respect to the SC shares). In addition, the Board of Trustees of the Fund declares separate dividends on each class of shares.
The Fund allocates daily all income, expenses (other than distribution fees which are only charged to SC shares), and realized and unrealized gains or losses to each class of shares based upon the relative proportion of the value of shares outstanding of each class. Expenses not directly attributed to a Portfolio are apportioned among each of the Portfolios based upon the relative value of each Portfolio. Expenses specifically attributable to a particular class are charged directly to such class.
Security Valuation
All Portfolios, other than the Money Market Portfolio, value their investment securities that are traded on any national exchange at the last sale price on the day of valuation or, lacking any sales, at the mean between the closing bid and asked prices. Investments traded in the over-the-counter market are valued at the mean between the bid and asked prices or yield equivalent. In situations where market quotations are not readily available or quoted market prices are not reliable, investments are valued at fair value in accordance with the procedures adopted by the Fund’s Board of Trustees. Short-term investments are valued at market value, except that obligations maturing in one year or less are valued using the amortized cost method of valuation described below with respect to the Money Market Portfolio, which approximates market value.
The Money Market Portfolio values investments at amortized cost, which approximates market value. Under the amortized cost method, a security is valued at its cost on the date of purchase and thereafter is adjusted to reflect a constant amortization to maturity of the difference between the principal amount due at maturity and the cost of the investment to the portfolio.
Income and Investment Transactions
For financial reporting purposes, investment transactions are recorded on the trade date. The identified cost basis has been used in determining the net realized gain or loss from investment transactions and unrealized appreciation or depreciation on investments. Dividend income is recorded on the ex-dividend date and interest is recognized on an accrual basis. Discounts and premiums on investments purchased are amortized over the life of the respective investments.
Dividends and Distributions to Shareholders
On each day that the net asset value per share is calculated in the High Grade Bond and Strategic Yield Portfolios, that Portfolio’s net investment income will be declared, as of the close of the New York Stock Exchange, as a dividend to shareholders of record prior to the declaration. With respect to the Money Market Portfolio, each day the net asset value per share is calculated, net investment income and any realized gains and losses from investment transactions will be declared, as of the close of the New York Stock Exchange, as a dividend to shareholders of record prior to the declaration. With respect to the High Grade Bond and Strategic Yield Portfolios, any net short-term and long-term gains will be declared and distributed periodically, but in no event less frequently than annually. Dividends and distributions of the other portfolios are recorded on the ex-dividend date. Dividends and distributions from net investment income and net realized gain from investments are determined in accordance with federal tax regulations, which may
26
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EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS (continued)
NOTES TO FINANCIAL STATEMENTS (continued)
1. | Significant Accounting Policies (continued) |
differ from U.S. generally accepted accounting principles (see Note 2). Permanent book and tax basis differences are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences do not require reclassification.
Dividends and distributions which exceed current and accumulated earnings and profits for federal income tax purposes are reported as return of capital distributions.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
Under the Fund’s organizational documents, its present and past officers and trustees are indemnified against certain liability arising out of the performance of their duties to the Fund. At the discretion of the Board of Trustees, employees and agents may also be indemnified. In addition, in the normal course of business the Fund enters into contracts that contain a variety of representations and warranties which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred.
New Accounting Pronouncements
In January 2010, the FASB issued an ASU, Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements which provides guidance on how investment assets and liabilities are to be valued and disclosed. Specifically, the amendment requires reporting entities to disclose i) the input and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements, for Level 2 or Level 3 positions ii) transfers between all levels (including Level 1 and Level 2) will be required to be disclosed on a gross basis (i.e. transfers out must be disclosed separately from transfers in) as well as the reason(s) for the transfer and iii) purchases, sales, issuances, and settlements must be shown on a gross basis in the Level 3 rollforward rather than as one net number.
During the period January 1, through June 30, 2010, the Fund had no Level 3 positions and there were no transfers between all levels.
2. | Federal Income Taxes |
No provision for federal income taxes is considered necessary because the Fund is qualified as a “regulated investment company” under Subchapter M of the Internal Revenue Code and intends to distribute each year substantially all of its net investment income and realized capital gains to shareholders. Management of the Fund has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Generally, the tax authorities can examine all tax returns filed for open tax years (December 31, 2006 through December 31, 2009).
As of June 30, 2010, the following Portfolios had approximate net capital loss carryforwards set forth below:
Portfolio | ||||||||||||||||||||
Value | High Grade | Strategic | Blue | |||||||||||||||||
Net Capital Loss Carryforwards Expire In: | Growth | Bond | Yield | Managed | Chip | |||||||||||||||
2010 | $ | — | $ | — | $ | 1,477,000 | $ | — | $ | — | ||||||||||
2011 | — | — | 571,000 | — | 3,000,000 | |||||||||||||||
2012 | — | — | — | — | 556,000 | |||||||||||||||
2013 | — | — | — | — | 60,000 | |||||||||||||||
2016 | 1,118,000 | — | 1,000 | 19,000 | 1,902,000 | |||||||||||||||
2017 | 3,142,000 | — | 1,929,000 | 4,398,000 | 790,000 | |||||||||||||||
2018 | — | 63,000 | — | — | — | |||||||||||||||
$ | 4,260,000 | $ | 63,000 | $ | 3,978,000 | $ | 4,417,000 | $ | 6,308,000 | |||||||||||
27
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EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS (continued)
NOTES TO FINANCIAL STATEMENTS (continued)
2. | Federal Income Taxes (continued) |
For the period ended June 30, 2010, the Value Growth, Strategic Yield, Managed and Blue Chip utilized approximately $264,000, $18,000, $77,000 and $950,000, respectively, of capital loss carryforwards.
The tax character of distributions for the years indicated were as follows:
Period Ended | ||||||||||||||||
June 30, | Year Ended December 31, 2009 | |||||||||||||||
2010 | Long-Term | |||||||||||||||
Ordinary | Ordinary | Capital | Return of | |||||||||||||
Portfolio | Income | Income | Gains | Capital | ||||||||||||
Value Growth | $ | 705,060 | $ | 953,656 | $ | — | $ | — | ||||||||
High Grade Bond | 1,048,314 | 2,180,873 | 182,152 | 3,247 | ||||||||||||
Strategic Yield | 1,124,626 | 2,350,027 | — | 2,433 | ||||||||||||
Managed | 1,902,815 | 2,336,485 | — | — | ||||||||||||
Money Market | 5,770 | 15,235 | — | — | ||||||||||||
Blue Chip | 1,601,198 | 1,951,148 | — | — |
The Fund designates long-term capital gain dividends per Internal Revenue Code Section 852(b)(3)(C). Distributions of short-term capital gain are treated as ordinary income distributions for tax purposes.
As of June 30, 2010, the components of accumulated earnings (deficit) and capital gains (losses) on a tax basis were identical to those reported in the statements of assets and liabilities, except as follows:
Portfolio | ||||||||||||
Value Growth | Strategic Yield | Managed | ||||||||||
Undistributed ordinary income | $ | 303,546 | $ | 10,830 | $ | 1,087,247 | ||||||
Accumulated capital losses | (4,259,858 | ) | (3,978,244 | ) | (4,743,553 | ) | ||||||
Net unrealized appreciation of investments | (2,176,916 | ) | 1,349,081 | 2,475,123 | ||||||||
Other timing differences | — | (7,750 | ) | — | ||||||||
Total accumulated earnings | $ | (6,133,228 | ) | $ | (2,626,083 | ) | $ | (1,181,183 | ) | |||
Differences between book and tax are primarily attributable to taxable spin-offs, mergers and corporate inversions.
3. | Management Contract and Transactions with Affiliates |
The Fund has entered into agreements with EquiTrust Investment Management Services, Inc. (“EquiTrust Investment”) relating to the management of the Portfolios and the investment of their assets. Pursuant to these agreements, fees paid to EquiTrust Investment are as follows: (1) annual investment advisory and management fees, which are based on each Portfolio’s average daily net assets as follows: Value Growth Portfolio — 0.45%; High Grade Bond Portfolio — 0.30%; Strategic Yield Portfolio — 0.45%; Managed Portfolio — 0.45%; Money Market Portfolio — 0.25% ; and Blue Chip Portfolio — 0.20%, and (2) accounting fees, which are based on each portfolio’s daily net assets at an annual rate of 0.05%, with a maximum per portfolio annual expense of $30,000.
The Fund has entered into agreements with EquiTrust Investment whereby EquiTrust Investment also serves as the Fund’s shareholder service, transfer and dividend disbursing agent. EquiTrust Marketing Services, LLC serves as the principal underwriter and distributor. Pursuant to these agreements, SC pays a 12b-1 distribution fee at an annual rate of 0.25% of the average daily net asset value attributable to the class of shares. There are no other fees paid by the Fund associated with these services.
EquiTrust Investment has agreed to reimburse the Portfolios annually for total expenses (excluding brokerage, interest, taxes and extraordinary expenses) in excess of 1.50% of each Portfolio’s average daily net assets. The amount reimbursed, however, shall not exceed the amount of the investment advisory and management fee paid by the Portfolio for such period. During the period ended June 30, 2010, EquiTrust Investment further agreed to reimburse any IC Portfolio, to the extent that annual operating expenses, including the investment advisory fee, exceed 0.65%. For the period ended June 30, 2010, no excess expense reimbursements were made to the Fund by EquiTrust Investment.
28
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EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS (continued)
NOTES TO FINANCIAL STATEMENTS (continued)
3. | Management Contract and Transactions with Affiliates (continued) |
During the period ended June 30, 2010, EquiTrust Investment voluntarily waived various Portfolio and class level expenses in the Money Market IC and SC Portfolios. These voluntary waivers may be revoked at any time. For the period ended June 30, 2010, the voluntary waiver amounts were as follows:
Money Market Portfolio | ||||||||
Fees | IC | SC | ||||||
Management Fees | $ | 12,616 | $ | 993 | ||||
Distribution Fees | — | 993 | ||||||
Accounting Fees | 2,523 | 199 | ||||||
Custodial Fees | 1,776 | 130 | ||||||
Miscellaneous Expenses | 6,725 | 534 |
Certain officers and trustees of the Fund are also officers of EquiTrust Investment, Farm Bureau Life Insurance Company and other affiliated entities. As of June 30, 2010, the total number of the shares of each Portfolio owned by Farm Bureau Life Insurance Company, EquiTrust Life Insurance Company and related separate accounts were as follows:
IC Portfolio | Shares | |||
Value Growth | 4,069,709 | |||
High Grade Bond | 3,665,741 | |||
Strategic Yield | 3,583,678 | |||
Managed | 5,063,550 | |||
Money Market | 7,830,116 | |||
Blue Chip | 2,015,530 |
SC Portfolio | Shares | |||
Value Growth | 49,601 | |||
High Grade Bond | 869,555 | |||
Strategic Yield | 107,928 | |||
Managed | 93,449 | |||
Money Market | 565,695 | |||
Blue Chip | 101,738 |
4. | Fair Value |
Various inputs are used in determining the value of the Portfolio’s investments. These inputs are summarized in three broad levels listed below:
• | Level 1 — Quoted prices in active markets for identical securities on the measurement date | |
• | Level 2 — Other significant observable inputs (including quoted prices in active markets for similar securities, interest rates, prepayment speeds, credit risk, etc.) | |
• | Level 3 — Significant unobservable inputs (including the Portfolio’s own assumptions in determining the fair value of the investments) |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, short-term investments are valued using amortized cost, in accordance with rules under the Investment Company Act of 1940. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.
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EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS (continued)
NOTES TO FINANCIAL STATEMENTS (continued)
4. | Fair Value (continued) |
The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2010:
Investments in Securities | ||||||||||||||||||||||||
High Grade | Strategic | Money | ||||||||||||||||||||||
Value Growth | Bond | Yield | Managed | Market | Blue Chip | |||||||||||||||||||
Valuation Inputs | Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | Portfolio | ||||||||||||||||||
Level 1 — Quoted Prices: | ||||||||||||||||||||||||
Common Stocks* | $ | 45,064,550 | $ | — | $ | — | $ | 52,930,074 | $ | — | $ | 62,064,400 | ||||||||||||
Preferred Stocks* | — | — | 785,280 | — | — | — | ||||||||||||||||||
Money market mutual fund | 438,472 | 1,137,509 | 728,949 | 899,577 | — | 340,546 | ||||||||||||||||||
Level 2 — Other Significant Observable Inputs: | ||||||||||||||||||||||||
Debt securities issued by US government agencies* | 1,449,839 | 4,999,569 | 1,999,832 | 999,973 | 8,598,686 | 2,749,768 | ||||||||||||||||||
Corporate debt securities* | 749,937 | 27,402,623 | 31,683,709 | — | 1,359,980 | 999,922 | ||||||||||||||||||
Residential mortgage-backed securities* | — | 19,242,573 | 4,950,284 | 17,691,162 | — | — | ||||||||||||||||||
Commercial mortgage-backed securities* | — | 1,413,887 | — | — | — | — | ||||||||||||||||||
Level 3 — Significant Unobservable Inputs | — | — | — | — | — | — | ||||||||||||||||||
Total | $ | 47,702,798 | $ | 54,196,161 | $ | 40,148,054 | $ | 72,520,786 | $ | 9,958,666 | $ | 66,154,636 | ||||||||||||
* | For further breakdown of securities by industry type, please refer to the Schedule of Investments. |
5. | Expense Offset Arrangements |
The Fund and other mutual funds managed by EquiTrust Investment have an agreement with the custodian banks to indirectly pay a portion of the custodians’ fees through credits earned by the Funds’ cash on deposit with the bank. This deposit agreement is an alternative to overnight investments. Custodial fees have been adjusted to reflect amounts that would have been paid without this agreement, with a corresponding adjustment reflected as fees paid indirectly in the statements of operations.
30
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EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS (continued)
NOTES TO FINANCIAL STATEMENTS (continued)
6. | Capital Share Transactions |
Transactions in shares of beneficial interest for each Portfolio were as follows:
Shares Issued In | ||||||||||||||||||||||||||||||||
Reinvestment of | ||||||||||||||||||||||||||||||||
Dividends and | Net Increase | |||||||||||||||||||||||||||||||
Shares Sold | Distributions | Shares Redeemed | (Decrease) | |||||||||||||||||||||||||||||
Portfolio | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||
Period ended June 30, 2010: | ||||||||||||||||||||||||||||||||
Value Growth IC | 49,274 | $ | 603,766 | 58,861 | $ | 701,627 | 249,910 | $ | 3,031,908 | (141,775 | ) | $ | (1,726,515 | ) | ||||||||||||||||||
Value Growth SC | 17,270 | 215,591 | 280 | 3,405 | 5,386 | 65,586 | 12,164 | 153,410 | ||||||||||||||||||||||||
High Grade Bond IC | 194,936 | 2,007,887 | 86,881 | 896,707 | 373,129 | 3,835,611 | (91,312 | ) | (931,017 | ) | ||||||||||||||||||||||
High Grade Bond SC | 280,365 | 2,881,778 | 14,664 | 151,508 | 66,380 | 687,442 | 228,649 | 2,345,844 | ||||||||||||||||||||||||
Strategic Yield IC | 105,987 | 950,895 | 122,253 | 1,100,642 | 302,356 | 2,716,872 | (74,116 | ) | (665,335 | ) | ||||||||||||||||||||||
Strategic Yield SC | 28,947 | 259,913 | 2,646 | 23,845 | 10,231 | 92,709 | 21,362 | 191,049 | ||||||||||||||||||||||||
Managed IC | 80,150 | 1,106,334 | 140,225 | 1,881,816 | 431,385 | 5,913,359 | (211,010 | ) | (2,925,209 | ) | ||||||||||||||||||||||
Managed SC | 15,216 | 216,039 | 1,506 | 20,917 | 2,447 | 34,322 | 14,275 | 202,634 | ||||||||||||||||||||||||
Money Market IC | 6,931,799 | 6,931,799 | 4,645 | 4,645 | 8,857,775 | 8,857,775 | (1,921,331 | ) | (1,921,331 | ) | ||||||||||||||||||||||
Money Market SC | 5,793,828 | 5,793,828 | 463 | 463 | 5,358,982 | 5,358,982 | 435,309 | 435,309 | ||||||||||||||||||||||||
Blue Chip IC | 26,618 | 875,973 | 49,391 | 1,569,649 | 99,668 | 3,247,997 | (23,659 | ) | (802,375 | ) | ||||||||||||||||||||||
Blue Chip SC | 34,496 | 1,170,681 | 954 | 31,501 | 7,961 | 261,756 | 27,489 | 940,426 | ||||||||||||||||||||||||
Year Ended December 31, 2009: | ||||||||||||||||||||||||||||||||
Value Growth IC | 164,824 | $ | 1,649,861 | 112,756 | $ | 952,784 | 498,527 | $ | 5,030,897 | (220,947 | ) | $ | (2,428,252 | ) | ||||||||||||||||||
Value Growth SC | 32,904 | 335,438 | 99 | 855 | 11,364 | 111,533 | 21,639 | 224,760 | ||||||||||||||||||||||||
High Grade Bond IC | 664,177 | 6,394,763 | 222,806 | 2,165,053 | 872,651 | 8,412,488 | 14,332 | 147,328 | ||||||||||||||||||||||||
High Grade Bond SC | 458,663 | 4,479,473 | 20,556 | 200,980 | 128,588 | 1,231,600 | 350,631 | 3,448,853 | ||||||||||||||||||||||||
Strategic Yield IC | 228,470 | 1,834,089 | 292,069 | 2,325,728 | 954,143 | 7,425,518 | (433,604 | ) | (3,265,701 | ) | ||||||||||||||||||||||
Strategic Yield SC | 69,881 | 557,146 | 3,240 | 26,446 | 17,586 | 134,612 | 55,535 | 448,980 | ||||||||||||||||||||||||
Managed IC | 124,908 | 1,503,725 | 222,792 | 2,332,629 | 655,634 | 7,809,556 | (307,934 | ) | (3,973,202 | ) | ||||||||||||||||||||||
Managed SC | 43,327 | 519,917 | 356 | 3,835 | 23,719 | 292,087 | 19,964 | 231,665 | ||||||||||||||||||||||||
Money Market IC | 9,647,035 | 9,647,035 | 13,349 | 13,349 | 12,943,360 | 12,943,360 | (3,282,976 | ) | (3,282,976 | ) | ||||||||||||||||||||||
Money Market SC | 4,333,636 | 4,333,636 | 454 | 454 | 4,045,903 | 4,045,903 | 288,187 | 288,187 | ||||||||||||||||||||||||
Blue Chip IC | 102,005 | 2,740,177 | 83,105 | 1,945,486 | 218,619 | 6,086,776 | (33,509 | ) | (1,401,113 | ) | ||||||||||||||||||||||
Blue Chip SC | 54,656 | 1,591,763 | 234 | 5,639 | 5,697 | 158,615 | 49,193 | 1,438,787 |
7. | Investment Transactions |
For the period ended June 30, 2010, the cost of investment securities purchased and proceeds from investment securities sold (not including short-term investments and U.S. Government securities) by Portfolio, were as follows:
Portfolio | Purchases | Sales | ||||||
Value Growth | $ | 717,844 | $ | 2,834,966 | ||||
High Grade Bond | 3,906,532 | 1,205,977 | ||||||
Strategic Yield | 2,984,972 | 728,416 | ||||||
Managed | 449,106 | 1,050,579 | ||||||
Blue Chip | — | 2,546,337 |
31
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EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS (continued)
NOTES TO FINANCIAL STATEMENTS (continued)
7. | Investment Transactions (continued) |
The basis of the Fund’s investments in securities and the net unrealized appreciation (depreciation) of investments for U.S. federal income tax purposes as of June 30, 2010, by Portfolio, was composed of the following:
Tax Cost of | Net Unrealized | |||||||||||||||
Investments | Gross Unrealized | Appreciation (Depreciation) | ||||||||||||||
Portfolio | in Securities | Appreciation | Depreciation | of Investments | ||||||||||||
Value Growth | $ | 49,879,714 | $ | 5,731,072 | $ | 7,907,988 | $ | (2,176,916 | ) | |||||||
High Grade Bond | 52,127,017 | 3,341,211 | 1,272,067 | 2,069,144 | ||||||||||||
Strategic Yield | 38,798,973 | 2,653,920 | 1,304,839 | 1,349,081 | ||||||||||||
Managed | 70,045,663 | 10,586,120 | 8,110,997 | 2,475,123 | ||||||||||||
Blue Chip | 61,565,778 | 18,175,999 | 13,587,141 | 4,588,858 |
The basis for U.S. federal income tax purposes and financial reporting purposes for investments in the Money Market Portfolio is the same and is equal to the underlying investments’ carrying value.
8. | Subsequent Events |
The fund is not aware of any other transactions or events, which occurred after the balance sheet date and before the financial statements were issued, August 27, 2010, which would require recognition or disclosure.
32
Table of Contents
EQUITRUST VARIABLE INSURANCE SERIES FUND
FINANCIAL HIGHLIGHTS
Period Ended June 30, 2010 (Unaudited) and
Years Ended December 31, 2009, 2008, 2007, 2006 and 2005
Income from Investment Operations | Less Distributions | |||||||||||||||||||||||||||
Net Realized | ||||||||||||||||||||||||||||
and | ||||||||||||||||||||||||||||
Net Asset | Net | Unrealized | Total | Dividends | Distributions | |||||||||||||||||||||||
Value at | Invest- | Gain | from | from Net | from | |||||||||||||||||||||||
Beginning | ment | (Loss) on | Investment | Investment | Capital | Total | ||||||||||||||||||||||
of Period | Income | Investments | Operations | Income | Gains | Distributions | ||||||||||||||||||||||
Value Growth Portfolio | ||||||||||||||||||||||||||||
Initial Class: | ||||||||||||||||||||||||||||
2010 | $ | 12.10 | $ | 0.07 | $ | (0.75 | ) | $ | (0.68 | ) | $ | (0.16 | ) | $ | — | $ | (0.16 | ) | ||||||||||
2009 | 9.80 | 0.16 | 2.35 | 2.51 | (0.21 | ) | — | (0.21 | ) | |||||||||||||||||||
2008 | 15.06 | 0.21 | (4.53 | ) | (4.32 | ) | (0.33 | ) | (0.61 | ) | (0.94 | ) | ||||||||||||||||
2007 | 15.09 | 0.33 | 0.43 | 0.76 | (0.27 | ) | (0.52 | ) | (0.79 | ) | ||||||||||||||||||
2006 | 13.65 | 0.27 | 1.36 | 1.63 | (0.19 | ) | — | (0.19 | ) | |||||||||||||||||||
2005 | 12.98 | 0.19 | 0.63 | 0.82 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||
Service Class: | ||||||||||||||||||||||||||||
2010 | $ | 12.29 | $ | 0.04 | $ | (0.75 | ) | $ | (0.71 | ) | $ | (0.08 | ) | $ | — | $ | (0.08 | ) | ||||||||||
2009 | 9.79 | 0.09 | 2.46 | 2.55 | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||||
2008(3) | 13.97 | 0.05 | (4.23 | ) | (4.18 | ) | — | — | — | |||||||||||||||||||
High Grade Bond Portfolio | ||||||||||||||||||||||||||||
Initial Class: | ||||||||||||||||||||||||||||
2010 | $ | 10.07 | $ | 0.21 | $ | 0.41 | $ | 0.62 | $ | (0.21 | ) | $ | — | $ | (0.21 | ) | ||||||||||||
2009 | 9.47 | 0.46 | 0.63 | 1.09 | (0.46 | ) | (0.03 | ) | (0.49 | ) | ||||||||||||||||||
2008 | 10.12 | 0.49 | (0.65 | ) | (0.16 | ) | (0.49 | ) | — | (0.49 | ) | |||||||||||||||||
2007 | 10.12 | 0.53 | 0.01 | 0.54 | (0.53 | ) | (0.01 | ) | (0.54 | ) | ||||||||||||||||||
2006 | 10.16 | 0.51 | (0.04 | ) | 0.47 | (0.51 | ) | — | (0.51 | ) | ||||||||||||||||||
2005 | 10.38 | 0.47 | (0.20 | ) | 0.27 | (0.47 | ) | (0.02 | ) | (0.49 | ) | |||||||||||||||||
Service Class: | ||||||||||||||||||||||||||||
2010 | $ | 10.07 | $ | 0.20 | $ | 0.41 | $ | 0.61 | $ | (0.19 | ) | $ | — | $ | (0.19 | ) | ||||||||||||
2009 | 9.47 | 0.44 | 0.63 | 1.07 | (0.44 | ) | (0.03 | ) | (0.47 | ) | ||||||||||||||||||
2008(3) | 9.87 | 0.27 | (0.40 | ) | (0.13 | ) | (0.27 | ) | — | (0.27 | ) | |||||||||||||||||
Strategic Yield Portfolio | ||||||||||||||||||||||||||||
Initial Class: | ||||||||||||||||||||||||||||
2010 | $ | 8.71 | $ | 0.25 | $ | 0.40 | $ | 0.65 | $ | (0.25 | ) | $ | — | $ | (0.25 | ) | ||||||||||||
2009 | 7.46 | 0.51 | 1.25 | 1.76 | (0.51 | ) | — | (0.51 | ) | |||||||||||||||||||
2008 | 8.94 | 0.53 | (1.48 | ) | (0.95 | ) | (0.53 | ) | — | (0.53 | ) | |||||||||||||||||
2007 | 9.19 | 0.57 | (0.25 | ) | 0.32 | (0.57 | ) | — | (0.57 | ) | ||||||||||||||||||
2006 | 9.14 | 0.55 | 0.05 | 0.60 | (0.55 | ) | — | (0.55 | ) | |||||||||||||||||||
2005 | 9.37 | 0.53 | (0.23 | ) | 0.30 | (0.53 | ) | — | (0.53 | ) | ||||||||||||||||||
Service Class: | ||||||||||||||||||||||||||||
2010 | $ | 8.71 | $ | 0.24 | $ | 0.40 | $ | 0.64 | $ | (0.24 | ) | $ | — | $ | (0.24 | ) | ||||||||||||
2009 | 7.46 | 0.49 | 1.25 | 1.74 | (0.49 | ) | — | (0.49 | ) | |||||||||||||||||||
2008(3) | 8.60 | 0.30 | (1.14 | ) | (0.84 | ) | (0.30 | ) | — | (0.30 | ) | |||||||||||||||||
Managed Portfolio | ||||||||||||||||||||||||||||
Initial Class: | ||||||||||||||||||||||||||||
2010 | $ | 13.61 | $ | 0.20 | $ | (0.35 | ) | $ | (0.15 | ) | $ | (0.34 | ) | $ | — | $ | (0.34 | ) | ||||||||||
2009 | 11.93 | 0.34 | 1.74 | 2.08 | (0.40 | ) | — | (0.40 | ) | |||||||||||||||||||
2008 | 16.05 | 0.40 | (3.40 | ) | (3.00 | ) | (0.56 | ) | (0.56 | ) | (1.12 | ) | ||||||||||||||||
2007 | 16.32 | 0.56 | 0.33 | 0.89 | (0.46 | ) | (0.70 | ) | (1.16 | ) | ||||||||||||||||||
2006 | 15.80 | 0.49 | 1.28 | 1.77 | (0.37 | ) | (0.88 | ) | (1.25 | ) | ||||||||||||||||||
2005 | 15.67 | 0.35 | 0.32 | 0.67 | (0.27 | ) | (0.27 | ) | (0.54 | ) | ||||||||||||||||||
Service Class: | ||||||||||||||||||||||||||||
2010 | $ | 13.99 | $ | 0.15 | $ | (0.32 | ) | $ | (0.17 | ) | $ | (0.25 | ) | $ | — | $ | (0.25 | ) | ||||||||||
2009 | 11.91 | 0.26 | 1.88 | 2.14 | (0.06 | ) | — | (0.06 | ) | |||||||||||||||||||
2008(3) | 14.99 | 0.06 | (3.14 | ) | (3.08 | ) | — | — | — |
33
Table of Contents
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||
Ratio of | ||||||||||||||||||||||||||||||
Total | Net | |||||||||||||||||||||||||||||
Net Asset | Investment | Ratio of | Ratio of | Investment | ||||||||||||||||||||||||||
Value at | Return Based | Net Assets at | Total Expenses | Net Expenses | Income | Portfolio | ||||||||||||||||||||||||
End | on Net Asset | End of Period | to Average | to Average | to Average | Turnover | ||||||||||||||||||||||||
of Period | Value (1) | (in thousands) | Net Assets (4) | Net Assets (4) | Net Assets (4) | Rate | ||||||||||||||||||||||||
$ | 13.12 | (1.15 | )% | $ | 71,345 | 0.57 | % | 0.57 | % | 2.33 | % | 1 | % | |||||||||||||||||
13.61 | 18.42 | % | 76,878 | 0.57 | % | 0.57 | % | 2.67 | % | 14 | % | |||||||||||||||||||
11.93 | (19.94 | )% | 71,044 | 0.55 | % | 0.55 | % | 2.70 | % | 19 | % | |||||||||||||||||||
16.05 | 5.87 | % | 97,073 | 0.54 | % | 0.54 | % | 3.47 | % | 14 | % | |||||||||||||||||||
16.32 | 11.99 | % | 93,796 | 0.55 | % | 0.55 | % | 2.98 | % | 24 | % | |||||||||||||||||||
15.80 | 4.53 | % | 83,368 | 0.56 | % | 0.56 | % | 2.34 | % | 24 | % | |||||||||||||||||||
$ | 13.57 | (1.29 | )% | $ | 1,273 | 0.82 | % | 0.82 | % | 2.09 | % | 1 | % | |||||||||||||||||
13.99 | 18.13 | % | 1,112 | 0.82 | % | 0.82 | % | 2.39 | % | 14 | % | |||||||||||||||||||
11.91 | (20.55 | )% | 709 | 0.81 | % | 0.81 | % | 2.87 | % | 19 | % | |||||||||||||||||||
$ | 11.26 | (5.66 | )% | $ | 47,153 | 0.59 | % | 0.59 | % | 1.16 | % | 1 | % | |||||||||||||||||
12.10 | 26.56 | % | 52,383 | 0.59 | % | 0.59 | % | 1.53 | % | 35 | % | |||||||||||||||||||
9.80 | (30.31 | )% | 44,595 | 0.58 | % | 0.58 | % | 1.62 | % | 24 | % | |||||||||||||||||||
15.06 | 5.27 | % | 67,870 | 0.55 | % | 0.55 | % | 2.20 | % | 17 | % | |||||||||||||||||||
15.09 | 12.07 | % | 65,712 | 0.58 | % | 0.58 | % | 1.88 | % | 30 | % | |||||||||||||||||||
13.65 | 6.41 | % | 60,223 | 0.58 | % | 0.58 | % | 1.42 | % | 18 | % | |||||||||||||||||||
$ | 11.50 | (5.83 | )% | $ | 580 | 0.84 | % | 0.84 | % | 0.94 | % | 1 | % | |||||||||||||||||
12.29 | 26.24 | % | 470 | 0.84 | % | 0.84 | % | 1.20 | % | 35 | % | |||||||||||||||||||
9.79 | (29.92 | )% | 163 | 0.84 | % | 0.84 | % | 1.70 | % | 24 | % | |||||||||||||||||||
$ | 10.48 | 6.18 | % | $ | 45,251 | 0.45 | % | 0.45 | % | 4.11 | % | 8 | % | |||||||||||||||||
10.07 | 11.90 | % | 44,400 | 0.44 | % | 0.44 | % | 4.75 | % | 24 | % | |||||||||||||||||||
9.47 | (1.60 | )% | 41,603 | 0.43 | % | 0.43 | % | 5.00 | % | 17 | % | |||||||||||||||||||
10.12 | 5.48 | % | 46,039 | 0.42 | % | 0.42 | % | 5.30 | % | 11 | % | |||||||||||||||||||
10.12 | 4.78 | % | 39,371 | 0.44 | % | 0.44 | % | 5.08 | % | 17 | % | |||||||||||||||||||
10.16 | 2.65 | % | 34,946 | 0.45 | % | 0.45 | % | 4.63 | % | 12 | % | |||||||||||||||||||
$ | 10.49 | 6.15 | % | $ | 9,172 | 0.69 | % | 0.69 | % | 3.86 | % | 8 | % | |||||||||||||||||
10.07 | 11.63 | % | 6,510 | 0.69 | % | 0.69 | % | 4.44 | % | 24 | % | |||||||||||||||||||
9.47 | (1.30 | )% | 2,799 | 0.68 | % | 0.68 | % | 4.87 | % | 17 | % | |||||||||||||||||||
$ | 9.11 | 7.53 | % | $ | 39,736 | 0.60 | % | 0.60 | % | 5.69 | % | 4 | % | |||||||||||||||||
8.71 | 24.44 | % | 38,630 | 0.59 | % | 0.59 | % | 6.42 | % | 6 | % | |||||||||||||||||||
7.46 | (11.08 | )% | 36,345 | 0.58 | % | 0.58 | % | 6.28 | % | 11 | % | |||||||||||||||||||
8.94 | 3.56 | % | 45,247 | 0.57 | % | 0.57 | % | 6.26 | % | 17 | % | |||||||||||||||||||
9.19 | 6.79 | % | 41,481 | 0.58 | % | 0.58 | % | 6.04 | % | 16 | % | |||||||||||||||||||
9.14 | 3.26 | % | 37,067 | 0.59 | % | 0.59 | % | 5.71 | % | 1 | % | |||||||||||||||||||
$ | 9.11 | 7.41 | % | $ | 989 | 0.85 | % | 0.85 | % | 5.44 | % | 4 | % | |||||||||||||||||
8.71 | 24.14 | % | 760 | 0.84 | % | 0.84 | % | 6.04 | % | 6 | % | |||||||||||||||||||
7.46 | (9.90 | )% | 237 | 0.84 | % | 0.84 | % | 6.73 | % | 11 | % |
34
Table of Contents
EQUITRUST VARIABLE INSURANCE SERIES FUND
FINANCIAL HIGHLIGHTS (continued)
Period ended June 30, 2010 (Unaudited) and
Years Ended December 31, 2009, 2008, 2007, 2006 and 2005
Income from Investment Operations | Less Distributions | |||||||||||||||||||||||||||
Net Realized | ||||||||||||||||||||||||||||
and | ||||||||||||||||||||||||||||
Net Asset | Net | Unrealized | Total | Dividends | ||||||||||||||||||||||||
Value at | Invest- | Gain | from | from Net | Distributions | |||||||||||||||||||||||
Beginning | ment | (Loss) on | Investment | Investment | from | Total | ||||||||||||||||||||||
of Period | Income | Investments | Operations | Income | Capital Gains | Distributions | ||||||||||||||||||||||
Money Market Portfolio | ||||||||||||||||||||||||||||
Initial Class: | ||||||||||||||||||||||||||||
2010 | $ | 1.00 | $ | — | (2) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
2009 | 1.00 | — | (2) | — | — | — | — | — | ||||||||||||||||||||
2008 | 1.00 | 0.02 | (2) | — | 0.02 | (0.02 | ) | — | (0.02 | ) | ||||||||||||||||||
2007 | 1.00 | 0.05 | — | 0.05 | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||||
2006 | 1.00 | 0.04 | — | 0.04 | (0.04 | ) | — | (0.04 | ) | |||||||||||||||||||
2005 | 1.00 | 0.02 | — | 0.02 | (0.02 | ) | — | (0.02 | ) | |||||||||||||||||||
Service Class: | ||||||||||||||||||||||||||||
2010 | $ | 1.00 | $ | — | (2) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
2009 | 1.00 | — | (2) | — | — | — | — | — | ||||||||||||||||||||
2008(3) | 1.00 | 0.01 | (2) | — | 0.01 | (0.01 | ) | — | (0.01 | ) | ||||||||||||||||||
Blue Chip Portfolio | ||||||||||||||||||||||||||||
Initial Class: | ||||||||||||||||||||||||||||
2010 | $ | 32.82 | $ | 0.37 | $ | (2.32 | ) | $ | (1.95 | ) | $ | (0.75 | ) | $ | — | $ | (0.75 | ) | ||||||||||
2009 | 28.91 | 0.75 | 4.07 | 4.82 | (0.91 | ) | — | (0.91 | ) | |||||||||||||||||||
2008 | 42.41 | 0.91 | (13.55 | ) | (12.64 | ) | (0.86 | ) | — | (0.86 | ) | |||||||||||||||||
2007 | 40.61 | 0.86 | 1.73 | 2.59 | (0.79 | ) | — | (0.79 | ) | |||||||||||||||||||
2006 | 35.27 | 0.79 | 5.25 | 6.04 | (0.70 | ) | — | (0.70 | ) | |||||||||||||||||||
2005 | 35.17 | 0.70 | 0.07 | 0.77 | (0.67 | ) | — | (0.67 | ) | |||||||||||||||||||
Service Class: | ||||||||||||||||||||||||||||
2010 | $ | 33.71 | $ | 0.25 | $ | (2.31 | ) | $ | (2.06 | ) | $ | (0.38 | ) | $ | — | $ | (0.38 | ) | ||||||||||
2009 | 28.87 | 0.38 | 4.64 | 5.02 | (0.18 | ) | — | (0.18 | ) | |||||||||||||||||||
2008(3) | 39.44 | 0.23 | (10.80 | ) | (10.57 | ) | — | — | — |
35
Table of Contents
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||
Ratio of | ||||||||||||||||||||||||||||||
Total | Net | |||||||||||||||||||||||||||||
Net Asset | Investment | Ratio of | Ratio of | Investment | ||||||||||||||||||||||||||
Value at | Return Based | Net Assets at | Total Expenses | Net Expenses | Income | Portfolio | ||||||||||||||||||||||||
End | on Net Asset | End of Period | to Average | to Average | to Average | Turnover | ||||||||||||||||||||||||
of Period | Value (1) | (in thousands) | Net Assets (4) | Net Assets (4) | Net Assets (4) | Rate | ||||||||||||||||||||||||
$ | 1.00 | 0.05 | % | $ | 9,427 | 0.47 | % | 0.00 | % | 0.11 | % | 0 | % | |||||||||||||||||
1.00 | 0.12 | % | 11,348 | 0.46 | % | 0.09 | % | 0.12 | % | 0 | % | |||||||||||||||||||
1.00 | 1.91 | % | 14,631 | 0.46 | % | 0.45 | % | 1.92 | % | 0 | % | |||||||||||||||||||
1.00 | 4.71 | % | 16,464 | 0.45 | % | 0.45 | % | 4.60 | % | 0 | % | |||||||||||||||||||
1.00 | 4.43 | % | 8,557 | 0.54 | % | 0.54 | % | 4.37 | % | 0 | % | |||||||||||||||||||
1.00 | 2.50 | % | 6,288 | 0.61 | % | 0.61 | % | 2.47 | % | 0 | % | |||||||||||||||||||
$ | 1.00 | 0.05 | % | $ | 921 | 0.71 | % | 0.00 | % | 0.12 | % | 0 | % | |||||||||||||||||
1.00 | 0.11 | % | 485 | 0.71 | % | 0.07 | % | 0.10 | % | 0 | % | |||||||||||||||||||
1.00 | 0.71 | % | 197 | 0.73 | % | 0.69 | % | 0.87 | % | 0 | % | |||||||||||||||||||
$ | 30.12 | (6.06 | )% | $ | 63,028 | 0.33 | % | 0.33 | % | 2.21 | % | 0 | % | |||||||||||||||||
32.82 | 17.95 | % | 69,436 | 0.33 | % | 0.33 | % | 2.56 | % | 0 | % | |||||||||||||||||||
28.91 | (30.32 | )% | 62,138 | 0.31 | % | 0.31 | % | 2.46 | % | 1 | % | |||||||||||||||||||
42.41 | 6.49 | % | 94,766 | 0.29 | % | 0.29 | % | 2.04 | % | 2 | % | |||||||||||||||||||
40.61 | 17.42 | % | 90,261 | 0.31 | % | 0.31 | % | 2.07 | % | 0 | % | |||||||||||||||||||
35.27 | 2.29 | % | 82,501 | 0.31 | % | 0.31 | % | 1.98 | % | 0 | % | |||||||||||||||||||
$ | 31.27 | (6.17 | )% | $ | 3,182 | 0.57 | % | 0.57 | % | 1.96 | % | 0 | % | |||||||||||||||||
33.71 | 17.65 | % | 2,503 | 0.57 | % | 0.57 | % | 2.19 | % | 0 | % | |||||||||||||||||||
28.87 | (26.80 | )% | 723 | 0.57 | % | 0.57 | % | 2.60 | % | 1 | % |
36
Table of Contents
EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL HIGHLIGHTS
(1) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period and is not annualized for periods less than one year.
(2) Without a voluntary waiver/reimbursement of a portion of expenses (see Note 3 to the financial statements) for the periods indicated, the following Portfolio would have had per share net investment income as shown:
Per Share | ||||||||||||
Net Investment | Amount | |||||||||||
Year | Income | Reimbursed | ||||||||||
Money Market Portfolio | ||||||||||||
Class IC | 2010 | $ | — | $ | 23,639 | |||||||
2009 | — | 46,613 | ||||||||||
2008 | 0.02 | 1,311 | ||||||||||
Class SC | 2010 | $ | — | $ | 2,850 | |||||||
2009 | — | 2,897 | ||||||||||
2008 | 0.01 | 18 |
(3) Service Class financial highlights are for the period June 1, 2008 to December 31, 2008. Respective ratios/supplemental data are computed on an annualized basis.
(4) Computed on an annualized basis, unless otherwise indicated.
37
Table of Contents
EQUITRUST VARIABLE INSURANCE SERIES FUND
TAX INFORMATION (Unaudited)
Dividends from net investment income for the following Portfolios are declared daily and were payable on the last business day of the month as follows:
Ordinary Income Dividends:
High Grade Bond Portfolio | Strategic Yield Portfolio | Money Market Portfolio | ||||||||||||||||||||||
Payable Date | Class IC | Class SC | Class IC | Class SC | Class IC | Class SC | ||||||||||||||||||
January 29, 2010 | $ | 0.0317 | $ | 0.0297 | $ | 0.0370 | $ | 0.0353 | $ | — | $ | — | ||||||||||||
February 26, 2010 | 0.0354 | 0.0334 | 0.0441 | 0.0424 | 0.0001 | 0.0001 | ||||||||||||||||||
March 31, 2010 | 0.0365 | 0.0345 | 0.0435 | 0.0416 | 0.0001 | 0.0001 | ||||||||||||||||||
April 30, 2010 | 0.0350 | 0.0330 | 0.0397 | 0.0380 | 0.0001 | 0.0001 | ||||||||||||||||||
May 28, 2010 | 0.0306 | 0.0287 | 0.0397 | 0.0380 | 0.0001 | 0.0001 | ||||||||||||||||||
June 30, 2010 | 0.0377 | 0.0356 | 0.0463 | 0.0445 | 0.0001 | 0.0001 | ||||||||||||||||||
Total Dividends per Share | $ | 0.2069 | $ | 0.1949 | $ | 0.2503 | $ | 0.2398 | $ | 0.0005 | $ | 0.0005 | ||||||||||||
In addition, dividends and distributions to shareholders from net investment income and net realized gain from investment transactions were paid during the period ended June 30, 2010, for the following Portfolios:
Ordinary Income Dividends:
Declaration | Record | Payable | Amount Per Share | |||||||||||||||||
Portfolio | Date | Date | Date | Class IC | Class SC | |||||||||||||||
Value Growth | 02/24/10 | 02/24/10 | 02/25/10 | 0.1637 | 0.0775 | |||||||||||||||
Managed | 02/24/10 | 02/24/10 | 02/25/10 | 0.3416 | 0.2453 | |||||||||||||||
Blue Chip | 02/24/10 | 02/24/10 | 02/25/10 | 0.7489 | 0.3814 |
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Information on Proxy Voting
EquiTrust Variable Insurance Series Fund (the “Fund”) has delegated the authority to vote proxies related to the Fund’s portfolio securities to the Fund’s investment adviser, EquiTrust Management Services, Inc. (the “Adviser”). A description of the policies and procedures that the Adviser uses in fulfilling this responsibility is available, without charge, upon request by calling 1-877-860-2904. It also appears in the Fund’s Statement of Additional Information, which can be found on the SEC’s website at http://www.sec.gov. The Fund’s proxy voting record for the most recent 12-month period ended June 30, 2010 is available, without charge, by calling the toll-free number listed above or by accessing the SEC’s website.
Form N-Q Disclosure:
The Fund files a complete schedule of portfolio holdings for its first and third quarters of each fiscal year with the SEC on Form N-Q. The Fund’s Forms N-Q are available on the SEC’s website at http://sec.gov or may be reviewed and copies at the SEC’s Public Reference Room in Washington, D.C. Information regarding the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. A copy of Form N-Q is also available, without charge, by calling the Fund at 1-877-860-2904.
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Item 2. Code of Ethics.
Not applicable to this filing.
Item 3. Audit Committee Financial Expert.
Not applicable to this filing.
Item 4. Principal Accountant Fees and Services.
Not applicable to this filing.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedules of Investments.
See Item 1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Company.
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There 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 provided disclosure in response to this Item. |
Item 11. Controls and Procedures
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date |
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within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)). | |||
(b) | There has been no change to the registrant’s internal control over financial reporting that occurred during the 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) | Not applicable to this filing. | ||
(a)(2) | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. | ||
(a)(3) | Not applicable. | ||
(b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) EquiTrust Variable Insurance Series Fund
By: | /s/Kristi Rojohn | |||||
Name: | Kristi Rojohn | |||||
Title: | Chief Executive Officer | |||||
Date: | 8/25/10 |
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/Kristi Rojohn | |||||
Name: | Kristi Rojohn | |||||
Title: | Chief Executive Officer | |||||
Date: | 8/25/10 | |||||
By: | /s/James P. Brannen | |||||
Name: | James P. Brannen | |||||
Title: | Chief Financial Officer | |||||
Date: | 8/27/10 |