UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 33-12791 & 811-5069
EquiTrust Variable Insurance Series Fund
(Exact name of registrant as specified in charter)
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, 2006
Date of reporting period: June 30, 2006
Item 1. Reports to Stockholders.
EquiTrust Variable Insurance Series Fund
SEMI-ANNUAL REPORT
JUNE 30, 2006
5400 University Avenue
West Des Moines, IA 50266
1-877-860-2904
1-515-225-5586
This report is not to be distributed unless preceded or accompanied by a current prospectus.
July 25, 2006
PRESIDENT’S LETTER
Dear Shareholder:
Equity benchmarks recorded mixed results for the first half of 2006, with international and small-cap stocks significantly outpacing domestic large-cap indices like the S&P 500 Composite Index (the “S&P 500”) and the Dow Jones Industrial Average. The S&P 500 gained 2.71% and the Dow 5.22% through June 30, 2006, while the small-cap Russell 2000 Index and the international developed markets benchmark, the MSCI EAFE Index, returned 8.26% and 10.50%, respectively.
Aside from the strong performance of high-yield issues, most fixed-income benchmarks declined for the period. The Lehman Brothers U.S. Aggregate Bond Index, a measure of the broad domestic fixed-income market, declined 0.72% through June 30, 2006, primarily due to the broad rise in interest rates. In contrast, the Lehman Brothers U.S. Corporate High Yield Index gained 3.14%. Most domestic fixed-income benchmarks otherwise recorded declines for the period, again primarily due to the upward shift in the yield curve.
The Federal Reserve Board (the “Fed”) raised short-term interest rates by 25 basis points (0.25%) at each of its four meetings during the first six months of the year, bringing the Federal Funds rate to 5.25% at the end of June. Long-term rates have risen, as well, due to investor concerns about rising inflation. Barometers of the condition of the U.S. economy have been relatively inconsistent so far this year: GDP expanded at close to 5% annualized in the first quarter of 2006, while reports on manufacturing and housing in the second quarter of 2006 have shown some developing weakness; meanwhile, inflation still seems to be a concern, as the Fed has indicated that future rate increases are still possible.
The equity markets have been relatively weak in May and June following a strong start to the year. Concerns about inflation and, at the same time, a weakening economy, have impacted returns across most equity benchmarks. Fixed income returns have likewise been impacted by inflation. In this environment of short-term gyrations, it is all the more important that investors adhere to an appropriate asset allocation plan. The EquiTrust portfolios provide a means for our investors to gain exposure to the domestic equity and fixed income markets.
Money Market: The interest rates offered by money market funds are closely related to the target rates set by the Federal Open Market Committee (“FOMC”). The FOMC meets several times throughout the year to determine the target Federal Funds rate, or overnight lending rates between banks. The Federal Funds target rate has been raised 25 bps at each of the last 17 meetings to 5.25% as of June 30, 2006. During the first half of 2006, the FOMC has shifted from an almost certain monetary policy to one of uncertainty. The FOMC began the year reporting that core inflation, as well as inflation expectations, remained well contained. The committee was confident that a few more rate increases would slow the economy to a sustainable pace while holding inflation in check. As the second fiscal quarter began, the FOMC statements began to change their language. The economy has begun to actually show signs of weakness, while inflation has picked up faster than anticipated. The FOMC now has a challenge that the financial industry has labeled as stagflation, the economy is stalling while inflation is increasing. The FOMC will have to balance two opposing challenges to the economy going forward. On June 30, 2006, the Money Market Portfolio had a 7-day yield of 4.63%.
High Grade Bond: U.S. Treasury yields rose over the six-month reporting period ended June 30, 2006. During the period, the two-year Treasury rose by 75 basis points (0.75%) to 5.15%, the ten-year Treasury rose by 75 basis points (0.75%) to 5.14% and the thirty-year Treasury rose by 65 basis points (0.65%) to 5.19%. The worst performing sector of the Lehman Brothers U.S. Aggregate Index for the period was the Investment Grade Credit Index, as corporate spreads widened modestly from historically narrow levels.
During the six-month period ended June 30, 2006, the High Grade Bond Portfolio outperformed the Lehman Brothers U.S. Aggregate Index (“Aggregate Index”), as reflected by the –0.29% total return produced by the Portfolio versus the –0.72% total return produced by the Aggregate Index. The total returns for the major components of the Aggregate Index for this period were as follows: U.S. Fixed Rate Mortgage Backed Securities (35% of the Index), –0.06%; U.S. Treasury Securities (25% of the Index), –1.29%; and U.S. Investment Grade Credit Securities (23% of the Index), –1.55%. In comparison, the Portfolio had approximately 41% of its assets invested in fixed-rate mortgage backed securities, 31% in corporate securities, 18% in cash equivalents and 11% in U.S. Government Agencies. The Aggregate Index had an effective duration of 4.80 as of June 30, 2006. The effective duration of the Portfolio was 4.14. The Portfolio outperformed the Aggregate Index mainly because its overexposure to outperforming mortgage backed securities and cash was more than enough to offset the Portfolio’s higher exposure to underperforming corporate securities than the Aggregate Index and Fund expenses.
Given our view that the Federal Reserve is close to being done raising the Federal Funds rate we will be more willing to increase the duration of the Portfolio to be more closely aligned with the Aggregate Index.
1
Strategic Yield: The Lehman Brothers U.S. High Yield Index (“High Yield Index”) produced a return of 3.14% over the six-month reporting period ended June 30, 2006. The option-adjusted spread on the High Yield Index finished the current period at 320 basis points (3.20%), which was 37 basis points (0.37%) less than at the start of the period. The High Yield Index was helped by a low level of actual defaults and the relative stability in the overall credit quality of the high yield market.
During the six-month reporting period, the Strategic Yield Portfolio produced a total return of 0.87%, lagging that of the High Yield Index but exceeding the -1.55% return on the Lehman Brothers U.S. Investment Grade Credit Index. The Portfolio’s performance was hindered by having a lower exposure to high yield issues than the High Yield Index and Fund expenses. At the end of the period the Portfolio had approximately 58% of its assets invested in securities rated investment grade, 31% invested in securities rated high yield by Moody’s or S&P and 11% invested in cash equivalents.
The Portfolio has historically invested in a mix of high yield and investment grade issues attempting to find attractive issues in both markets. As always, we will attempt to seek out securities in both the investment grade and non-investment grade markets that we feel offer attractive potential returns for the amount of risk taken.
Managed: The Managed Portfolio returned 3.34% for the six-month period ended June 30, 2006, compared to a gain of 2.71% for the S&P 500. The Portfolio outperformed the Index primarily due to the positive relative performance of its equity allocation.
Equities still constitute the largest portion of the Portfolio’s assets, but we have raised its fixed income allocation — and lowered its cash allocation — concurrent with the rise in interest rates, particularly the increase in the yield on the ten-year Treasury bond. We like the opportunities in the largest names in the domestic equity universe, but high quality fixed-income securities currently present an attractive alternative.
Given the recent volatility in the equity markets, we have been reviewing the Portfolio’s equity holdings to make sure we are comfortable with their quality and valuation.
Value Growth: The Value Growth Portfolio trailed the S&P 500 for the six months ended June 30, 2006, returning 1.90% compared to 2.71% for the Index. The Portfolio’s relative performance was most impacted by underperformance in its consumer discretionary, energy, financials and telecommunication services holdings. It did outperform the Index in its health care and utilities holdings, offsetting some of the underperformance elsewhere.
Within the equity markets, we continue to see the most value in the largest companies of the domestic benchmarks, e.g. General Electric, Citigroup and 3M. Valuations for these companies generally compare favorably to those of the stocks of smaller companies, which are coming off a lengthy period of outperforming their larger peers. As such, while the Portfolio will still hold small- and medium-capitalization stocks, our search for attractively valued names has been most fruitful in the large-/mega-cap segment of the domestic equity market. We have added new positions or added to existing positions in this segment over the past twelve months and certainly during the six-month period ended June 30, 2006. For example, we added a new position in GE early in the year and, through additional purchases since, have now raised the Portfolio’s position close to the S&P 500’s weight of just over 3%. Additionally, we raised the Portfolio’s weighting in other large-cap names like Target, Metlife and Medtronic. We continue to appreciate the long-term risk-reward characteristics such stocks offer at their current valuations.
Blue Chip: The Blue Chip Portfolio passively tracks the direction of the large capitalization equity market. It remains substantially invested in common stocks of large companies and is designed for those investors who prefer substantial exposure to common stocks at all times or who wish to make their own market value judgments. The Portfolio outperformed the S&P 500 for the six-month period ended June 30, 2006, gaining 3.28% compared to 2.71% for the S&P 500. We attribute the Portfolio’s performance advantage to its heavier exposure to the S&P 500’s largest constituents, as these outperformed the Index’s weighting of smaller constituents for the period.
We appreciate your investment in the Fund and we take seriously our task of seeking to grow and protect that investment. Thank you for continued support of the Fund.
Craig A. Lang
President
An investment in the Money Market Portfolio is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Portfolio seeks to preserve the net asset value of $1.00 per share, it is possible to lose money by investing in the Portfolio.
Past performance is not a guarantee of future results.
2
EQUITRUST VARIABLE INSURANCE SERIES FUND
June 30, 2006
Money Market Portfolio
Portfolio Holdings by Asset Type
High Grade Bond Portfolio
Portfolio Holdings by Credit Quality and Type of Security**
Strategic Yield Portfolio
Portfolio Holdings by Credit Quality and Type of Security**
* | 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. |
3
EQUITRUST VARIABLE INSURANCE SERIES FUND
June 30, 2006
Managed Portfolio
Portfolio Holdings by Industry Sector
Value Growth Portfolio
Portfolio Holdings by Industry Sector
Blue Chip Portfolio
Portfolio Holdings by Industry Sector
* | 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
Expense Example:
As a shareholder of the Fund, you incur ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a given Portfolio 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, 2006 and held until June 30, 2006.
Actual Expenses –
The first line for each Portfolio in the table below provides information about actual account values and actual expenses for that Portfolio. 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 to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes –
The second line for each Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of that Portfolio and an assumed rate of return of 5% per year before expenses, which is not the actual return of the Portfolio. 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 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.
Beginning Account Value 1/1/2006 | Ending Account Value 6/30/2006 | Expenses Paid During Period* 1/1/2006 - 6/30/2006 | Annualized Expense Ratio | |||||||||
Value Growth | 0.58 | % | ||||||||||
Actual | $ | 1,000 | $ | 1,019.00 | $ | 2.91 | ||||||
Hypothetical ** | $ | 1,000 | $ | 1,022.12 | $ | 2.91 | ||||||
High Grade Bond | 0.44 | % | ||||||||||
Actual | $ | 1,000 | $ | 997.10 | $ | 2.18 | ||||||
Hypothetical ** | $ | 1,000 | $ | 1,022.81 | $ | 2.21 | ||||||
Strategic Yield | 0.58 | % | ||||||||||
Actual | $ | 1,000 | $ | 1,008.70 | $ | 2.93 | ||||||
Hypothetical ** | $ | 1,000 | $ | 1,022.08 | $ | 2.95 | ||||||
Managed | 0.55 | % | ||||||||||
Actual | $ | 1,000 | $ | 1,033.50 | $ | 2.81 | ||||||
Hypothetical ** | $ | 1,000 | $ | 1,022.24 | $ | 2.79 | ||||||
Money Market | 0.54 | % | ||||||||||
Actual | $ | 1,000 | $ | 1,020.30 | $ | 2.75 | ||||||
Hypothetical ** | $ | 1,000 | $ | 1,022.28 | $ | 2.75 | ||||||
Blue Chip | 0.30 | % | ||||||||||
Actual | $ | 1,000 | $ | 1,032.80 | $ | 1.55 | ||||||
Hypothetical ** | $ | 1,000 | $ | 1,023.48 | $ | 1.54 |
* | Expenses are equal to the Annualized Expense Ratio as shown in the table for each Portfolio, multiplied by the average account value over the period, multiplied by 182 days divided by 364 to reflect the one-half year period. |
** | Hypothetical examples are based on a 5% return before expenses. |
5
EQUITRUST VARIABLE INSURANCE SERIES FUND
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2006
(Unaudited)
Value Growth Portfolio | High Grade Bond Portfolio | Strategic Yield Portfolio | Managed Portfolio | Money Market Portfolio | Blue Chip Portfolio | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Investments in securities, at value (cost — $55,871,316; $37,174,919; $38,027,478; $79,678,934; $8,596,039; and $64,707,833, respectively) | $ | 58,624,811 | $ | 36,389,269 | $ | 37,708,815 | $ | 86,069,839 | $ | 8,596,039 | $ | 81,731,621 | |||||||||
Cash | — | — | — | — | 7,242 | — | |||||||||||||||
Receivables: | |||||||||||||||||||||
Accrued dividends and interest | 82,192 | 275,563 | 612,348 | 224,513 | 5,873 | 81,733 | |||||||||||||||
Fund shares sold | 33,397 | 25,486 | 25,267 | 18,102 | 471 | 35,788 | |||||||||||||||
Investment securities sold | 2,027,107 | — | — | 1,554,918 | — | — | |||||||||||||||
Prepaid expense and other assets | 1,003 | 572 | 610 | 1,398 | 112 | 1,391 | |||||||||||||||
Total Assets | 60,768,510 | 36,690,890 | 38,347,040 | 87,868,770 | 8,609,737 | 81,850,533 | |||||||||||||||
LIABILITIES | |||||||||||||||||||||
Payables: | |||||||||||||||||||||
Fund shares redeemed | 81,801 | 46,893 | 38,462 | 88,926 | 93,460 | 70,881 | |||||||||||||||
Investment securities purchased | 431,461 | — | — | 250,533 | — | — | |||||||||||||||
Dividends | — | — | — | — | 4,664 | — | |||||||||||||||
Accrued expenses | 10,126 | 7,495 | 7,400 | 11,602 | 4,950 | 12,383 | |||||||||||||||
Total Liabilities | 523,388 | 54,388 | 45,862 | 351,061 | 103,074 | 83,264 | |||||||||||||||
NET ASSETS | $ | 60,245,122 | $ | 36,636,502 | $ | 38,301,178 | $ | 87,517,709 | $ | 8,506,663 | $ | 81,767,269 | |||||||||
ANALYSIS OF NET ASSETS | |||||||||||||||||||||
Paid-in Capital | $ | 54,901,776 | $ | 37,403,941 | $ | 40,694,309 | $ | 76,704,929 | $ | 8,506,663 | $ | 70,973,261 | |||||||||
Accumulated undistributed net investment income | 549,977 | — | — | 1,268,729 | — | 844,258 | |||||||||||||||
Accumulated undistributed net realized gain (loss) from investment transactions | 2,039,874 | 18,211 | (2,074,468 | ) | 3,153,146 | — | (7,074,038 | ) | |||||||||||||
Net unrealized appreciation (depreciation) of investments | 2,753,495 | (785,650 | ) | (318,663 | ) | 6,390,905 | — | 17,023,788 | |||||||||||||
NET ASSETS | $ | 60,245,122 | $ | 36,636,502 | $ | 38,301,178 | $ | 87,517,709 | $ | 8,506,663 | $ | 81,767,269 | |||||||||
Shares issued and outstanding as of June 30, 2006 | 4,391,554 | 3,707,935 | 4,280,891 | 5,810,548 | 8,506,663 | 2,288,840 | |||||||||||||||
NET ASSET VALUE PER SHARE | $ | 13.72 | $ | 9.88 | $ | 8.95 | $ | 15.06 | $ | 1.00 | $ | 35.72 | |||||||||
See accompanying notes.
6
EQUITRUST VARIABLE INSURANCE SERIES FUND
STATEMENTS OF OPERATIONS
Six Months Ended June 30, 2006
(Unaudited)
Value Growth Portfolio | High Grade Bond Portfolio | Strategic Yield Portfolio | Managed Portfolio | Money Market Portfolio | Blue Chip Portfolio | ||||||||||||||||||
INVESTMENT INCOME | |||||||||||||||||||||||
Dividends | $ | 496,988 | $ | — | $ | — | $ | 614,026 | $ | — | $ | 889,983 | |||||||||||
Interest | 231,525 | 972,784 | 1,232,063 | 896,609 | 167,001 | 80,779 | |||||||||||||||||
Less foreign tax withholding | (1,628 | ) | — | — | (2,342 | ) | — | — | |||||||||||||||
Total Investment Income | 726,885 | 972,784 | 1,232,063 | 1,508,293 | 167,001 | 970,762 | |||||||||||||||||
EXPENSES | |||||||||||||||||||||||
Paid to EquiTrust Investment Management Services, Inc.: | |||||||||||||||||||||||
Investment advisory and management fees | 138,265 | 53,583 | 85,113 | 195,061 | 9,118 | 83,247 | |||||||||||||||||
Accounting fees | 15,363 | 8,930 | 9,457 | 14,846 | 1,823 | 14,883 | |||||||||||||||||
Custodial fees | 4,408 | 3,500 | 3,133 | 5,087 | 3,654 | 3,498 | |||||||||||||||||
Professional fees | 7,522 | 4,379 | 4,566 | 10,481 | 865 | 10,153 | |||||||||||||||||
Reports to shareholders | 15 | 9 | 9 | 20 | 1 | 21 | |||||||||||||||||
Trustees’ fees and expenses | 2,754 | 1,606 | 1,694 | 3,905 | 341 | 3,730 | |||||||||||||||||
Insurance and bonds | 762 | 428 | 457 | 1,043 | 75 | 1,054 | |||||||||||||||||
Miscellaneous | 7,819 | 5,718 | 5,980 | 9,121 | 3,933 | 9,918 | |||||||||||||||||
Total Expenses | 176,908 | 78,153 | 110,409 | 239,564 | 19,810 | 126,504 | |||||||||||||||||
Net Investment Income | 549,977 | 894,631 | 1,121,654 | 1,268,729 | 147,191 | 844,258 | |||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | |||||||||||||||||||||||
Net realized gain (loss) from investment transactions | 2,825,467 | 18,622 | 185,305 | 3,002,070 | — | (18 | ) | ||||||||||||||||
Change in unrealized appreciation (depreciation) of investments | (2,240,785 | ) | (1,015,555 | ) | (984,915 | ) | (1,477,639 | ) | — | 1,866,014 | |||||||||||||
Net Gain (Loss) on Investments | 584,682 | (996,933 | ) | (799,610 | ) | 1,524,431 | — | 1,865,996 | |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 1,134,659 | $ | (102,302 | ) | $ | 322,044 | $ | 2,793,160 | $ | 147,191 | $ | 2,710,254 | ||||||||||
See accompanying notes.
7
EQUITRUST VARIABLE INSURANCE SERIES FUND
STATEMENTS OF CHANGES IN NET ASSETS
Value Growth Portfolio | High Grade Bond Portfolio | Strategic Yield Portfolio | ||||||||||||||||||||||
Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 | |||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||
Net investment income | $ | 549,977 | $ | 836,213 | $ | 894,631 | $ | 1,485,114 | $ | 1,121,654 | $ | 1,920,635 | ||||||||||||
Net realized gain (loss) from investment transactions | 2,825,467 | 5,643,255 | 18,622 | (411 | ) | 185,305 | 2,105 | |||||||||||||||||
Change in unrealized appreciation (depreciation) of investments. | (2,240,785 | ) | (2,829,929 | ) | (1,015,555 | ) | (636,795 | ) | (984,915 | ) | (850,982 | ) | ||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations. | 1,134,659 | 3,649,539 | (102,302 | ) | 847,908 | 322,044 | 1,071,758 | |||||||||||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||||||||||
Net investment income . | (836,213 | ) | (665,116 | ) | (894,631 | ) | (1,485,114 | ) | (1,121,654 | ) | (1,920,635 | ) | ||||||||||||
Net realized gain from investment transactions . | — | — | — | (43,870 | ) | — | — | |||||||||||||||||
Total Dividends and Distributions. | (836,213 | ) | (665,116 | ) | (894,631 | ) | (1,528,984 | ) | (1,121,654 | ) | (1,920,635 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS | (276,695 | ) | (1,114,667 | ) | 2,687,593 | 5,647,061 | 2,033,446 | 7,278,727 | ||||||||||||||||
Total Increase (Decrease) in Net Assets | 21,751 | 1,869,756 | 1,690,660 | 4,965,985 | 1,233,836 | 6,429,850 | ||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||
Beginning of period . | 60,223,371 | 58,353,615 | 34,945,842 | 29,979,857 | 37,067,342 | 30,637,492 | ||||||||||||||||||
End of period (including accumulated undistributed net investment | $ | 60,245,122 | $ | 60,223,371 | $ | 36,636,502 | $ | 34,945,842 | $ | 38,301,178 | $ | 37,067,342 | ||||||||||||
Accumulated Undistributed Net Investment Income | $ | 549,977 | $ | 836,213 | $ | — | $ | — | $ | — | $ | — | ||||||||||||
See accompanying notes.
8
EQUITRUST VARIABLE INSURANCE SERIES FUND
STATEMENTS OF CHANGES IN NET ASSETS (continued)
Managed Portfolio | Money Market Portfolio | Blue Chip Portfolio | ||||||||||||||||||||||
Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 | Six Months Ended June 30, 2006 (Unaudited) | Year Ended December 31, 2005 | |||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||
Net investment income | $ | 1,268,729 | $ | 1,836,551 | $ | 147,191 | $ | 153,504 | $ | 844,258 | $ | 1,635,261 | ||||||||||||
Net realized gain (loss) from investment transactions | 3,002,070 | 4,991,158 | — | — | (18 | ) | 393 | |||||||||||||||||
Change in unrealized appreciation (depreciation) of investments | (1,477,639 | ) | (3,285,381 | ) | — | — | 1,866,014 | 228,495 | ||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 2,793,160 | 3,542,328 | 147,191 | 153,504 | 2,710,254 | 1,864,149 | ||||||||||||||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM | ||||||||||||||||||||||||
Net investment income . | (1,836,551 | ) | (1,297,777 | ) | (147,191 | ) | (153,504 | ) | (1,635,261 | ) | (1,621,030 | ) | ||||||||||||
�� | ||||||||||||||||||||||||
Net realized gain from investment transactions | (4,783,738 | ) | (1,299,691 | ) | — | — | — | — | ||||||||||||||||
Total Dividends and Distributions | (6,620,289 | ) | (2,597,468 | ) | (147,191 | ) | (153,504 | ) | (1,635,261 | ) | (1,621,030 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS | 7,976,736 | 7,547,535 | 2,219,033 | (304,435 | ) | (1,809,129 | ) | (2,701,841 | ) | |||||||||||||||
Total Increase (Decrease) in Net Assets | 4,149,607 | 8,492,395 | 2,219,033 | (304,435 | ) | (734,136 | ) | (2,458,722 | ) | |||||||||||||||
NET ASSETS | ||||||||||||||||||||||||
Beginning of period | 83,368,102 | 74,875,707 | 6,287,630 | 6,592,065 | 82,501,405 | 84,960,127 | ||||||||||||||||||
End of period (including accumulated undistributed net investment income as set forth below) | $ | 87,517,709 | $ | 83,368,102 | $ | 8,506,663 | $ | 6,287,630 | $ | 81,767,269 | $ | 82,501,405 | ||||||||||||
Accumulated Undistributed Net Investment Income | $ | 1,268,729 | $ | 1,836,551 | $ | — | $ | — | $ | 844,258 | $ | 1,635,261 | ||||||||||||
See accompanying notes.
9
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
VALUE GROWTH PORTFOLIO
June 30, 2006
(Unaudited)
Shares Held | Value | ||||
COMMON STOCKS (83.81%) | |||||
APPAREL AND OTHER TEXTILE PRODUCTS (0.40%) | |||||
Jones Apparel Group, Inc. | 7,500 | $ | 238,425 | ||
BUSINESS SERVICES (4.52%) | |||||
Affiliated Computer Services, Inc.-Class A (1) | 11,400 | 588,354 | |||
CA, Inc. | 12,174 | 250,176 | |||
Compuware Corp. (1) | 16,050 | 107,535 | |||
Electronic Data Systems Corp. | 5,745 | 138,225 | |||
First Data Corp. | 3,520 | 158,541 | |||
Microsoft Corp. | 37,205 | 866,876 | |||
Oracle Corp. (1) | 12,300 | 178,227 | |||
Symantec Corp. (1) | 28,002 | 435,151 | |||
2,723,085 | |||||
CHEMICALS AND ALLIED PRODUCTS (11.08%) | |||||
Abbott Laboratories | 8,000 | 348,880 | |||
Amgen, Inc. (1) | 3,700 | 241,351 | |||
Bristol-Myers Squibb Co. | 13,550 | 350,403 | |||
Colgate-Palmolive Co. | 3,255 | 194,975 | |||
Dow Chemical Co. | 5,330 | 208,030 | |||
E.I. du Pont de Nemours & Co. | 12,555 | 522,288 | |||
GlaxoSmithKline PLC | 5,500 | 306,900 | |||
Johnson & Johnson | 16,020 | 959,918 | |||
KV Pharmaceutical Co.-Class A (1) | 12,700 | 236,982 | |||
Merck & Co., Inc. | 9,764 | 355,703 | |||
Mylan Laboratories, Inc. | 10,205 | 204,100 | |||
Olin Corp. | 6,400 | 114,752 | |||
Pfizer, Inc. | 43,526 | 1,021,555 | |||
Schering-Plough Corp. | 14,980 | 285,069 | |||
Sensient Technologies Corp. | 14,625 | 305,809 | |||
SurModics, Inc. (1) | 3,637 | 131,332 | |||
Taro Pharmaceutical Industries, Ltd. (1) | 6,600 | 70,026 | |||
Teva Pharmaceutical Industries, Ltd. | 17,691 | 558,859 | |||
Wyeth | 5,835 | 259,132 | |||
6,676,064 | |||||
COMMUNICATIONS (2.62%) | |||||
Alltel Corp. | 5,700 | 363,831 | |||
Comcast Corp.-Class A (1) | 12,510 | 409,577 | |||
Sprint Nextel Corp. | 25,603 | 511,804 | |||
Verizon Communications, Inc. | 8,800 | 294,712 | |||
1,579,924 | |||||
DEPOSITORY INSTITUTIONS (7.20%) | |||||
AmSouth Bancorp. | 11,630 | 307,613 | |||
Bank of America Corp. | 12,204 | 587,012 | |||
Bank of New York Co., Inc. | 19,271 | 620,526 | |||
BOK Financial Corp. | 3,500 | 173,845 | |||
Citigroup, Inc. | 23,183 | 1,118,348 |
Shares Held | Value | ||||
National City Corp. | 6,830 | $ | 247,178 | ||
New York Community Bancorp., Inc. | 23,156 | 382,306 | |||
U. S. Bancorp. | 15,710 | 485,125 | |||
Wachovia Corp. | 7,650 | 413,712 | |||
4,335,665 | |||||
EATING AND DRINKING PLACES (0.41%) | |||||
Wendy’s International, Inc. | 4,200 | 244,818 | |||
ELECTRIC, GAS AND SANITARY SERVICES (2.99%) | |||||
Atmos Energy Corp. | 11,267 | 314,462 | |||
CMS Energy Corp. (1) | 28,300 | 366,202 | |||
Pepco Holdings, Inc. | 16,200 | 381,996 | |||
Pinnacle West Capital Corp. | 9,200 | 367,172 | |||
Xcel Energy, Inc. | 19,405 | 372,188 | |||
1,802,020 | |||||
ELECTRONIC AND OTHER ELECTRICAL EQUIPMENT (5.84%) | |||||
Adaptec, Inc. (1) | 43,100 | 187,054 | |||
ADC Telecommunications, Inc. (1) | 18,205 | 306,936 | |||
Cisco Systems, Inc. (1) | 30,600 | 597,618 | |||
ECI Telecom, Ltd. (1) | 10,000 | 80,600 | |||
Emerson Electric Co. | 2,300 | 192,763 | |||
General Electric Co. | 49,110 | 1,618,666 | |||
Helen of Troy, Ltd. (1) | 8,966 | 164,974 | |||
Intel Corp. | 17,500 | 331,625 | |||
JDS Uniphase Corp. (1) | 16,400 | 41,492 | |||
3,521,728 | |||||
FOOD AND KINDRED PRODUCTS (3.26%) | |||||
Anheuser-Busch Cos., Inc. | 8,530 | 388,883 | |||
Coca-Cola Co. (The) | 12,570 | 540,761 | |||
Coca-Cola Enterprises, Inc. | 17,485 | 356,169 | |||
ConAgra Foods, Inc. | 15,000 | 331,650 | |||
General Mills, Inc. | 4,110 | 212,323 | |||
Sara Lee Corp. | 8,540 | 136,811 | |||
1,966,597 | |||||
FOOD STORES (0.71%) | |||||
Kroger Co. | 19,526 | 426,838 | |||
FORESTRY (0.37%) | |||||
Weyerhaeuser Co. | 3,540 | 220,365 | |||
GENERAL MERCHANDISE STORES (3.05%) | |||||
Federated Department Stores, Inc. | 6,016 | 220,186 | |||
Fred’s, Inc. | 35,165 | 469,453 | |||
Target Corp. | 13,790 | 673,917 | |||
Wal-Mart Stores, Inc. | 9,835 | 473,752 | |||
1,837,308 |
10
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
VALUE GROWTH PORTFOLIO (continued)
Shares Held | Value | ||||
HEALTH SERVICES (1.82%) | |||||
Health Management Associates, Inc. | 12,800 | $ | 252,288 | ||
Lifepoint Hospitals, Inc. (1) | 11,463 | 368,306 | |||
Universal Health Services, Inc.-Class B | 9,420 | 473,449 | |||
1,094,043 | |||||
HOLDING AND OTHER INVESTMENT OFFICES (0.58%) | |||||
Highwoods Properties, Inc. | 9,750 | 352,755 | |||
INDUSTRIAL MACHINERY AND EQUIPMENT (4.95%) | |||||
3M Co. | 8,960 | 723,699 | |||
Deere & Co. | 3,990 | 333,125 | |||
EMC Corp. (1) | 53,600 | 587,992 | |||
Hewlett-Packard Co. | 6,000 | 190,080 | |||
Ingersoll-Rand Co., Ltd.-Class A | 19,900 | 851,322 | |||
Solectron Corp. (1) | 22,500 | 76,950 | |||
Stanley Works (The) | 4,600 | 217,212 | |||
2,980,380 | |||||
INSTRUMENTS AND RELATED PRODUCTS (5.47%) | |||||
Agilent Technologies, Inc. (1) | 7,000 | 220,920 | |||
Becton Dickinson & Co. | 13,226 | 808,505 | |||
Biomet, Inc. | 4,220 | 132,044 | |||
Boston Scientific Corp. (1) | 4,770 | 80,327 | |||
Fisher Scientific International, Inc. (1) | 8,176 | 597,257 | |||
Medtronic, Inc. | 14,040 | 658,757 | |||
Perkinelmer, Inc. | 11,900 | 248,710 | |||
Stryker Corp. | 7,030 | 296,033 | |||
Zimmer Holdings, Inc. (1) | 4,480 | 254,106 | |||
3,296,659 | |||||
INSURANCE CARRIERS (3.60%) | |||||
Allstate Corp. | 8,095 | 443,039 | |||
American International Group, Inc. | 9,740 | 575,147 | |||
MBIA, Inc. | 4,690 | 274,599 | |||
MetLife, Inc. | 7,595 | 388,940 | |||
Safeco Corp. | 3,223 | 181,616 | |||
WellPoint, Inc. (1) | 4,222 | 307,235 | |||
2,170,576 | |||||
METAL MINING (1.77%) | |||||
Barrick Gold Corp. | 36,046 | 1,066,962 | |||
MISCELLANEOUS MANUFACTURING INDUSTRIES (0.39%) | |||||
Hasbro, Inc. | 12,900 | 233,619 | |||
MOTION PICTURES (1.39%) | |||||
News Corp.-Class A | 17,040 | 326,827 | |||
Time Warner, Inc. | 29,390 | 508,447 | |||
835,274 | |||||
NONDEPOSITORY INSTITUTIONS (0.46%) | |||||
Federal Home Loan Mortgage Corp. | 4,900 | 279,349 |
Shares Held | Value | ||||
OIL AND GAS EXTRACTION (3.64%) | |||||
Apache Corp. | 5,200 | $ | 354,900 | ||
BJ Services Co. | 11,500 | 428,490 | |||
Noble Corp. | 4,300 | 320,006 | |||
Occidental Petroleum Co. | 4,750 | 487,113 | |||
Rowan Cos., Inc. | 16,900 | 601,471 | |||
2,191,980 | |||||
PAPER AND ALLIED PRODUCTS (2.36%) | |||||
Abitibi Consolidated, Inc. | 92,600 | 253,724 | |||
Bemis Co., Inc. | 10,865 | 332,686 | |||
Kimberly-Clark Corp. | 10,720 | 661,424 | |||
Sonoco Products Co. | 5,500 | 174,075 | |||
1,421,909 | |||||
PETROLEUM AND COAL PRODUCTS (5.45%) | |||||
BP PLC | 6,000 | 417,660 | |||
Chevron Corp. | 14,100 | 875,046 | |||
ConocoPhillips | 30,357 | 1,989,294 | |||
3,282,000 | |||||
PRIMARY METAL INDUSTRIES (0.76%) | |||||
Northwest Pipe Co. (1) | 18,215 | 460,840 | |||
PRINTING AND PUBLISHING (1.11%) | |||||
Belo Corp.-Series A | 14,835 | 231,426 | |||
R.R. Donnelley & Sons Co. | 8,110 | 259,114 | |||
Tribune Co. | 5,450 | 176,744 | |||
667,284 | |||||
RAILROAD TRANSPORTATION (0.33%) | |||||
Union Pacific Corp. | 2,155 | 200,329 | |||
TOBACCO PRODUCTS (1.03%) | |||||
Altria Group, Inc. | 8,460 | 621,218 | |||
TRANSPORTATION EQUIPMENT (2.59%) | |||||
Federal Signal Corp. | 13,300 | 201,362 | |||
Honeywell International, Inc. | 23,500 | 947,050 | |||
ITT Industries, Inc. | 8,370 | 414,315 | |||
1,562,727 | |||||
WHOLESALE TRADE — NONDURABLE GOODS (1.90%) | |||||
Dean Foods Co. (1) | 7,701 | 286,400 | |||
Safeway, Inc. | 18,720 | 486,720 | |||
SYSCO Corp. | 12,130 | 370,693 | |||
1,143,813 | |||||
MISCELLANEOUS EQUITIES (1.76%) | |||||
H & Q Life Sciences Investors | 28,183 | 434,300 | |||
NASDAQ-100 Trust | 16,100 | 624,036 | |||
1,058,336 | |||||
Total Common Stocks | 50,492,890 |
11
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
VALUE GROWTH PORTFOLIO (continued)
Shares Held | Value | |||||
SHORT-TERM INVESTMENTS (13.50%) | ||||||
MONEY MARKET MUTUAL FUND (0.07%) | ||||||
JP Morgan U.S. Treasury Plus Money Market Fund | 43,265 | $ | 43,265 | |||
Principal Amount | ||||||
COMMERCIAL PAPER (3.24%) | ||||||
NONDEPOSITORY INSTITUTIONS | ||||||
American Express Credit Corp., | $ | 350,000 | 350,000 | |||
American General Finance Corp., 5.20%, due 07/13/06 | 750,000 | 750,000 | ||||
HSBC Finance Corp., 5.24%, due 07/14/06 | 850,000 | 850,000 | ||||
Total Commercial Paper | 1,950,000 | |||||
UNITED STATES GOVERNMENT AGENCIES (10.19%) | ||||||
Federal Home Loan Bank, due 07/10/06 | 2,000,000 | 1,997,495 | ||||
Federal Home Loan Bank, due 07/21/06 | 900,000 | 897,439 | ||||
Federal Home Loan Bank, due 07/26/06 | 1,000,000 | 996,437 | ||||
Federal Home Loan Mortgage Corp., | 1,400,000 | 1,399,222 | ||||
Federal National Mortgage Assoc., due 07/17/06 | 850,000 | 848,063 | ||||
Total United States Government Agencies (Cost $6,138,656) | 6,138,656 | |||||
Total Short-Term Investments (Cost $8,131,921) | 8,131,921 | |||||
Total Investments (97.31%) (Cost $55,871,316) | 58,624,811 |
Principal Amount | Value | ||||
OTHER ASSETS LESS LIABILITIES (2.69%) | |||||
Cash, receivables, prepaid expense and other assets, less liabilities | $ | 1,620,311 | |||
Total Net Assets (100.00%) | $ | 60,245,122 | |||
(1) | Non-income producing securities. |
See accompanying notes.
12
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
HIGH GRADE BOND PORTFOLIO
June 30, 2006
(Unaudited)
Shares Held | Value | |||||
PREFERRED STOCKS (0.54%) | ||||||
HOLDING AND OTHER INVESTMENT OFFICES | ||||||
New Plan Excel Realty | 4,000 | $ | 198,250 | |||
Principal Amount | ||||||
CORPORATE BONDS (29.76%) | ||||||
DEPOSITORY INSTITUTIONS (5.24%) | ||||||
Huntington National Bank, | $ | 700,000 | 669,263 | |||
Provident Capital Trust I, | 500,000 | 526,990 | ||||
Washington Mutual Bank, | 750,000 | 722,618 | ||||
1,918,871 | ||||||
ELECTRIC, GAS AND SANITARY SERVICES (6.63%) | ||||||
Maritime & NE Pipeline, 144A, | 700,000 | 757,414 | ||||
Oglethorpe Power Corp., | 866,000 | 882,229 | ||||
PacifiCorp, 6.90%, due 11/15/11 | 750,000 | 787,868 | ||||
2,427,511 | ||||||
FOOD STORES (1.71%) | ||||||
Ahold Finance USA, Inc., | 600,000 | 625,500 | ||||
FOOD AND KINDRED PRODUCTS (2.60%) | ||||||
Diageo Capital PLC, | 1,000,000 | 952,000 | ||||
HOLDING AND OTHER INVESTMENT OFFICES (1.76%) | ||||||
Security Capital Pacific, | 275,000 | 289,000 | ||||
Washington REIT, | 350,000 | 355,698 | ||||
644,698 | ||||||
INSURANCE CARRIERS (2.26%) | ||||||
SunAmerica, Inc., | 700,000 | 828,219 | ||||
SECURITY AND COMMODITY BROKERS (5.46%) | ||||||
Goldman Sachs Group, Inc., | 900,000 | 842,895 | ||||
Morgan Stanley-Series MTNC, | 1,300,000 | 1,158,560 | ||||
2,001,455 |
Principal Amount | Value | |||||
TOBACCO PRODUCTS (2.11%) | ||||||
UST, Inc., 7.25%, due 06/01/09 | $ | 750,000 | $ | 774,390 | ||
TRANSPORTATION — BY AIR (1.66%) | ||||||
Continental Airlines, Inc., | 401,442 | 401,422 | ||||
Federal Express, | 193,763 | 207,907 | ||||
609,329 | ||||||
TRANSPORTATION EQUIPMENT (0.33%) | ||||||
Ford Motor Co., | 150,000 | 119,250 | ||||
Total Corporate Bonds | 10,901,223 | |||||
MORTGAGE-BACKED SECURITIES (35.10%) | ||||||
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) (7.36%) | ||||||
Pool # 3023, 5.50%, due 08/01/35 | 1,826,200 | 1,771,797 | ||||
Pool # 3051, 5.50%, due 10/01/25 | 1,000,000 | 925,870 | ||||
2,697,667 | ||||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (2.58%) | ||||||
Pool # 50276, 9.50%, due 02/01/20 | 1,001 | 1,098 | ||||
Pool # 256103, 5.50%, due 02/01/26 | 973,165 | 944,471 | ||||
945,569 | ||||||
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (25.16%) | ||||||
Pool # 1512, 7.50%, due 12/01/23 | 24,501 | 25,457 | ||||
Pool # 2631, 7.00%, due 08/01/28 | 27,491 | 28,183 | ||||
Pool # 2658, 6.50%, due 10/01/28 | 50,973 | 51,586 | ||||
Pool # 2701, 6.50%, due 01/01/29 | 61,502 | 62,229 | ||||
Pool # 2796, 7.00%, due 08/01/29 | 50,118 | 51,391 | ||||
Pool # 3039, 6.50%, due 02/01/31 | 20,149 | 20,359 | ||||
Pool # 3040, 7.00%, due 02/01/31 | 34,307 | 35,171 | ||||
Pool # 3188, 6.50%, due 02/01/32 | 120,556 | 121,749 | ||||
Pool # 3239, 6.50%, due 05/01/32 | 111,228 | 112,329 | ||||
Pool # 3261, 6.50%, due 07/01/32 | 217,623 | 219,776 | ||||
Pool # 3320, 5.50%, due 12/01/32 | 847,286 | 819,349 | ||||
Pool # 3333, 5.50%, due 01/01/33 | 697,736 | 674,537 | ||||
Pool # 3375, 5.50%, due 04/01/33 | 105,975 | 102,451 | ||||
Pool # 3390, 5.50%, due 05/01/33 | 471,451 | 455,776 | ||||
Pool # 3403, 5.50%, due 06/01/33 | 796,958 | 770,460 | ||||
Pool # 3458, 5.00%, due 10/01/33 | 664,176 | 625,486 | ||||
Pool # 3499, 5.00%, due 01/01/34 | 1,032,607 | 972,643 | ||||
Pool # 3556, 5.50%, due 05/01/34 | 1,078,365 | 1,042,109 | ||||
Pool # 3623, 5.00%, due 10/01/34 | 1,656,110 | 1,559,938 | ||||
Pool # 22630, 6.50%, due 08/01/28 | 28,237 | 28,576 |
13
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
HIGH GRADE BOND PORTFOLIO (continued)
Principal Amount | Value | |||||
GOVERNMENT NATIONAL MORTGAGE | ||||||
Pool # 276337, 10.00%, due 08/01/19 | $ | 5,921 | $ | 6,483 | ||
Pool # 643816, 6.00%, due 07/01/25 | 1,435,887 | 1,430,380 | ||||
9,216,418 | ||||||
Total Mortgage-Backed Securities | 12,859,654 | |||||
UNITED STATES GOVERNMENT AGENCIES (16.57%) | ||||||
Federal Home Loan Bank, | 1,000,000 | 971,041 | ||||
Federal Home Loan Mortgage Corp., 4.65%, due 10/10/13 | 1,000,000 | 938,070 | ||||
Federal National Mortgage Assoc., | 1,000,000 | 992,087 | ||||
Federal National Mortgage Assoc., | 1,000,000 | 974,411 | ||||
Federal National Mortgage Assoc., | 300,000 | 294,774 | ||||
Government National Mortgage Assoc., | 1,000,000 | 953,472 | ||||
Government National Mortgage Assoc., | 1,000,000 | 946,789 | ||||
Total United States Government Agencies | 6,070,644 | |||||
SHORT-TERM INVESTMENTS (17.36%) | ||||||
COMMERCIAL PAPER (3.96%) | ||||||
INSURANCE CARRIERS (0.75%) | ||||||
Prudential Funding LLC, | 275,000 | 275,000 | ||||
NONDEPOSITORY INSTITUTIONS (3.21%) | ||||||
American Express Credit Corp., | 925,000 | 925,000 | ||||
HSBC Finance Corp., | 250,000 | 250,000 | ||||
1,175,000 | ||||||
Total Commercial Paper | 1,450,000 |
Principal Amount | Value | |||||
UNITED STATES GOVERNMENT AGENCIES (13.28%) | ||||||
Federal Home Loan Bank, due 07/14/06 | $ | 1,000,000 | $ | 998,154 | ||
Federal National Mortgage Assoc., due 07/06/06 | 1,325,000 | 1,324,085 | ||||
Federal National Mortgage Assoc., due 07/10/06 | 350,000 | 349,556 | ||||
Federal National Mortgage Assoc., due 07/12/06 | 1,000,000 | 998,441 | ||||
Federal National Mortgage Assoc., due 07/24/06 | 1,200,000 | 1,196,078 | ||||
Total United States | 4,866,314 | |||||
Shares Held | ||||||
MONEY MARKET MUTUAL FUND (0.12%) | ||||||
JPMorgan U.S. Treasury Plus | 43,184 | 43,184 | ||||
Total Short-Term Investments | 6,359,498 | |||||
Total Investments (99.33%) | 36,389,269 | |||||
OTHER ASSETS LESS LIABILITIES (0.67%) | ||||||
Cash, receivables, prepaid expense and other assets, less liabilities | 247,233 | |||||
Total Net Assets (100.00%) | $ | 36,636,502 | ||||
(1) | Each unit was purchased at 104.481 on 04/20/01. As of 06/30/06, the carrying value of each unit was 108.202, representing $757,414 or 2.07% of total net assets. |
See accompanying notes.
14
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
STRATEGIC YIELD PORTFOLIO
June 30, 2006
(Unaudited)
Shares Held | Value | |||||
PREFERRED STOCKS (3.07%) | ||||||
DEPOSITORY INSTITUTIONS (2.16%) | ||||||
Sovereign Capital Trust V, 7.75% | 32,000 | $ | 827,200 | |||
HOLDING AND OTHER INVESTMENT OFFICES (0.91%) | ||||||
New Plan Excel Realty Trust- | 7,000 | 346,937 | ||||
Total Preferred Stocks (Cost $1,150,000) | 1,174,137 | |||||
Principal Amount | ||||||
CORPORATE BONDS (66.84%) | ||||||
APPAREL AND ACCESSORY STORES (3.69%) | ||||||
Woolworth (FW) Corp., | $ | 1,400,000 | 1,414,000 | |||
CHEMICALS AND ALLIED PRODUCTS (8.71%) | ||||||
Chemtura Corp., 6.875%, due 06/01/16 | 1,700,000 | 1,649,000 | ||||
Lyondell Chemical Co., 9.625%, due 05/01/07 | 900,000 | 920,250 | ||||
Nova Chemicals, Ltd., 7.875%, due 09/15/25 | 800,000 | 768,000 | ||||
3,337,250 | ||||||
COMMUNICATIONS (1.31%) | ||||||
Telephone & Data Systems, Inc., | 500,000 | 500,445 | ||||
DEPOSITORY INSTITUTIONS (1.38%) | ||||||
Provident Capital Trust I, | 500,000 | 526,990 | ||||
ELECTRIC, GAS AND SANITARY SERVICES (5.60%) | ||||||
ESI Tractebel, 7.99%, due 12/30/11 | 274,000 | 283,572 | ||||
Indianapolis Power & Light Co., | 750,000 | 767,505 | ||||
Semco Energy, Inc., | 900,000 | 897,750 | ||||
Waterford 3 Nuclear Power Plant, | 190,749 | 195,289 | ||||
2,144,116 | ||||||
HOLDING AND OTHER INVESTMENT OFFICES (20.03%) | ||||||
Bradley Operating LP, | 450,000 | 457,348 | ||||
Federal Realty Investment Trust, | 600,000 | 619,262 |
Principal Amount | Value | |||||
First Industrial LP, | $ | 700,000 | $ | 728,987 | ||
First Industrial LP, | 500,000 | 530,635 | ||||
HRPT Properties, | 1,075,000 | 1,057,596 | ||||
Hospitality Properties Trust, | 1,300,000 | 1,329,588 | ||||
iStar Financial, Inc., | 300,000 | 306,822 | ||||
iStar Financial, Inc.-Series B, | 1,171,000 | 1,128,727 | ||||
Price Development Co., | 225,000 | 225,515 | ||||
Spieker Properties LP, | 1,200,000 | 1,286,940 | ||||
7,671,420 | ||||||
INSURANCE CARRIERS (4.25%) | ||||||
Markel Capital Trust, | 1,000,000 | 1,049,770 | ||||
PXRE Capital Trust, | 670,000 | 579,550 | ||||
1,629,320 | ||||||
MOTION PICTURES (2.31%) | ||||||
Time Warner, Inc., | 800,000 | 885,840 | ||||
PAPER AND ALLIED PRODUCTS (7.49%) | ||||||
Bowater, Inc., 9.375%, due 12/15/21 | 900,000 | 884,250 | ||||
Cascades, Inc., 7.25%, due 02/15/13 | 1,000,000 | 930,000 | ||||
Potlatch Corp., | 900,000 | 1,056,375 | ||||
2,870,625 | ||||||
TRANSPORTATION — BY AIR (3.12%) | ||||||
Continental Airlines, Inc., | 1,221,062 | 1,193,100 | ||||
WATER TRANSPORTATION (5.71%) | ||||||
Overseas Shipholding Group, Inc., 8.75%, due 12/01/13 | 1,100,000 | 1,182,500 | ||||
Windsor Petroleum Transportation, 144A, 7.84%, due 01/15/21 (1) | 1,000,000 | 1,005,480 | ||||
2,187,980 | ||||||
WHOLESALE TRADE — NONDURABLE GOODS (3.24%) | ||||||
Safeway, Inc., 7.45%, due 09/15/27 | 1,200,000 | 1,241,220 | ||||
Total Corporate Bonds (Cost $25,754,795) | 25,602,306 |
15
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
STRATEGIC YIELD PORTFOLIO (continued)
Principal Amount | Value | |||||
MORTGAGE-BACKED SECURITIES (8.35%) | ||||||
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) (5.89%) | ||||||
Pool # 3023, 5.50%, due 08/01/35 | $ | 1,369,650 | $ | 1,328,848 | ||
Pool # 3051, 5.50%, due 10/01/25 | 1,000,000 | 925,870 | ||||
2,254,718 | ||||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (2.46%) | ||||||
Pool # 256103, | 973,165 | 944,470 | ||||
Total Mortgage-Backed Securities (Cost $3,314,844) | 3,199,188 | |||||
UNITED STATES GOVERNMENT AGENCIES (9.47%) | ||||||
Federal Home Loan Bank, | 1,000,000 | 971,041 | ||||
Federal National Mortgage Assoc., 6.00%, due 08/22/13 | 1,000,000 | 992,087 | ||||
Federal National Mortgage Assoc., 5.55%, due 06/08/15 | 1,000,000 | 974,411 | ||||
Federal National Mortgage Assoc., 6.00%, due 11/09/15 | 700,000 | 687,806 | ||||
Total United States Government Agencies (Cost $3,700,000) | 3,625,345 | |||||
SHORT-TERM INVESTMENTS (10.72%) | ||||||
COMMERCIAL PAPER (0.65%) | ||||||
NONDEPOSITORY INSTITUTIONS | ||||||
HSBC Finance Corp., | 250,000 | 250,000 | ||||
UNITED STATES GOVERNMENT AGENCIES (9.97%) | ||||||
Federal Home Loan Bank, due 07/05/06 | 225,000 | 224,874 | ||||
Federal Home Loan Bank, due 07/14/06 | 1,250,000 | 1,247,692 | ||||
Federal Home Loan Bank, due 07/19/06 | 1,000,000 | 997,450 | ||||
Federal Home Loan Mortgage Corp., due 07/11/06 | 1,350,000 | 1,348,078 | ||||
Total United States | 3,818,094 |
Shares Held | Value | ||||
MONEY MARKET MUTUAL FUND (0.10%) | |||||
JPMorgan U.S. Treasury Plus Money Market Fund | 39,745 | $ | 39,745 | ||
Total Short-Term Investments | 4,107,839 | ||||
Total Investments (98.45%) | 37,708,815 | ||||
OTHER ASSETS LESS LIABILITIES (1.55%) | |||||
Cash, receivables, prepaid expense and other assets, less liabilities | 592,363 | ||||
Total Net Assets (100.00%) | $ | 38,301,178 | |||
(1) | Each unit was purchased at 80.500 on 08/26/99. As of 06/30/06, the carrying value of each unit was 100.548, representing $1,005,480 or 2.63% of net assets. |
See accompanying notes.
16
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
MANAGED PORTFOLIO
June 30, 2006
(Unaudited)
Shares Held | Value | ||||
COMMON STOCKS (58.30%) | |||||
APPAREL AND OTHER TEXTILE PRODUCTS (0.35%) | |||||
Jones Apparel Group, Inc. | 9,600 | $ | 305,184 | ||
BUSINESS SERVICES (0.72%) | |||||
Affiliated Computer Services, Inc. (1) | 3,800 | 196,118 | |||
Electronic Data Systems Corp. | 7,500 | 180,450 | |||
Microsoft Corp. | 10,800 | 251,640 | |||
628,208 | |||||
CHEMICALS AND ALLIED PRODUCTS (9.12%) | |||||
Abbott Laboratories | 19,800 | 863,478 | |||
Bristol-Myers Squibb Co. | 18,705 | 483,711 | |||
Colgate-Palmolive Co. | 4,230 | 253,377 | |||
Dow Chemical Co. | 7,680 | 299,750 | |||
E.I. du Pont de Nemours & Co. | 16,475 | 685,360 | |||
GlaxoSmithKline PLC | 4,700 | 262,260 | |||
Johnson & Johnson | 22,622 | 1,355,510 | |||
KV Pharmaceutical Co.- Class A (1) | 12,600 | 235,116 | |||
Merck & Co., Inc. | 15,158 | 552,206 | |||
Mylan Laboratories, Inc. | 11,890 | 237,800 | |||
Olin Corp. | 17,100 | 306,603 | |||
Pfizer, Inc. | 57,854 | 1,357,833 | |||
Schering-Plough Corp. | 15,700 | 298,771 | |||
Sensient Technologies Corp. | 20,370 | 425,937 | |||
Taro Pharmaceutical Industries, Ltd. (1) | 6,030 | 63,978 | |||
Teva Pharmaceutical Industries, Ltd. | 9,399 | 296,914 | |||
7,978,604 | |||||
COMMUNICATIONS (1.29%) | |||||
Comcast Corp.-Class A (1) | 9,060 | 296,624 | |||
Sprint Nextel Corp. | 21,801 | 435,802 | |||
Verizon Communications, Inc. | 11,800 | 395,182 | |||
1,127,608 | |||||
DEPOSITORY INSTITUTIONS (5.65%) | |||||
AmSouth Bancorp. | 17,525 | 463,536 | |||
Bank of America Corp. | 14,072 | 676,863 | |||
Bank of New York Co., Inc. | 11,229 | 361,574 | |||
BOK Financial Corp. | 4,600 | 228,482 | |||
Citigroup, Inc. | 19,822 | 956,213 | |||
National City Corp. | 8,695 | 314,672 | |||
New York Community Bancorp., Inc. | 44,834 | 740,209 | |||
U. S. Bancorp. | 24,470 | 755,634 | |||
Wachovia Corp. | 8,328 | 450,378 | |||
4,947,561 | |||||
ELECTRIC, GAS AND SANITARY SERVICES (4.91%) | |||||
Atmos Energy Corp. | 38,252 | 1,067,613 | |||
Pepco Holdings, Inc. | 40,600 | 957,348 | |||
Pinnacle West Capital Corp. | 24,200 | 965,822 |
Shares Held | Value | ||||
Tortoise Energy Capital Corp. | 38,693 | $ | 833,834 | ||
Xcel Energy, Inc. | 24,690 | 473,554 | |||
4,298,171 | |||||
ELECTRONIC AND OTHER ELECTRICAL | |||||
Cisco Systems, Inc. (1) | 20,100 | 392,553 | |||
Emerson Electric Co. | 800 | 67,048 | |||
General Electric Co. | 71,480 | 2,355,981 | |||
Helen of Troy, Ltd. (1) | 12,334 | 226,946 | |||
Intel Corp. | 11,900 | 225,505 | |||
3,268,033 | |||||
FOOD AND KINDRED PRODUCTS (1.82%) | |||||
Anheuser-Busch Cos., Inc. | 11,995 | 546,852 | |||
Coca-Cola Co. (The) | 10,380 | 446,548 | |||
ConAgra Foods, Inc. | 20,704 | 457,765 | |||
Sara Lee Corp. | 8,800 | 140,976 | |||
1,592,141 | |||||
FOOD STORES (0.63%) | |||||
Kroger Co. | 25,186 | 550,566 | |||
FORESTRY (0.36%) | |||||
Weyerhaeuser Co. | 5,125 | 319,031 | |||
GENERAL MERCHANDISE STORES (1.48%) | |||||
Federated Department Stores, Inc. | 7,662 | 280,429 | |||
Fred’s, Inc. | 27,440 | 366,324 | |||
Wal-Mart Stores, Inc. | 13,390 | 644,996 | |||
1,291,749 | |||||
HEALTH SERVICES (1.07%) | |||||
Health Management Associates, Inc. | 17,400 | 342,954 | |||
Lifepoint Hospitals, Inc. (1) | 8,429 | 270,824 | |||
Universal Health Services, Inc.-Class B | 6,350 | 319,151 | |||
932,929 | |||||
HOLDING AND OTHER INVESTMENT OFFICES (0.54%) | |||||
Highwoods Properties, Inc. | 12,960 | 468,893 | |||
INDUSTRIAL MACHINERY AND EQUIPMENT (2.98%) | |||||
3M Co. | 11,405 | 921,182 | |||
Hewlett-Packard Co. | 6,900 | 218,592 | |||
Ingersoll-Rand Co., Ltd.- Class A | 20,444 | 874,594 | |||
Stanley Works (The) | 12,500 | 590,250 | |||
2,604,618 | |||||
INSTRUMENTS AND RELATED PRODUCTS (2.37%) | |||||
Becton Dickinson & Co. | 13,835 | 845,734 | |||
Biomet, Inc. | 5,840 | 182,734 | |||
Fisher Scientific International, Inc. (1) | 3,920 | 286,356 | |||
Stryker Corp. | 9,790 | 412,257 | |||
Zimmer Holdings, Inc. (1) | 6,200 | 351,664 | |||
2,078,745 |
17
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
MANAGED PORTFOLIO (continued)
Shares Held | Value | ||||
INSURANCE CARRIERS (2.60%) | |||||
Allstate Corp. | 10,395 | $ | 568,918 | ||
American International Group, Inc. | 6,170 | 364,339 | |||
MBIA, Inc. | 3,211 | 188,004 | |||
MetLife, Inc. | 9,755 | 499,554 | |||
Safeco Corp. | 4,693 | 264,451 | |||
WellPoint, Inc. (1) | 5,328 | 387,719 | |||
2,272,985 | |||||
METAL MINING (2.66%) | |||||
Barrick Gold Corp. | 78,716 | 2,329,994 | |||
OIL AND GAS EXTRACTION (2.50%) | |||||
Apache Corp. | 6,700 | 457,275 | |||
Occidental Petroleum Co. | 11,125 | 1,140,869 | |||
Rowan Cos., Inc. | 16,700 | 594,353 | |||
2,192,497 | |||||
PAPER AND ALLIED PRODUCTS (2.62%) | |||||
Abitibi Consolidated, Inc. | 133,500 | 365,790 | |||
Bemis Co., Inc. | 21,670 | 663,535 | |||
Kimberly-Clark Corp. | 15,015 | 926,426 | |||
Sonoco Products Co. | 10,600 | 335,490 | |||
2,291,241 | |||||
PETROLEUM AND COAL PRODUCTS (3.47%) | |||||
BP PLC | 8,100 | 563,841 | |||
ConocoPhillips | 37,770 | 2,475,068 | |||
3,038,909 | |||||
PIPELINES, EXCEPT NATURAL GAS (1.16%) | |||||
Kinder Morgan Management LLC (1) | 23,600 | 1,015,272 | |||
PRIMARY METAL INDUSTRIES (0.05%) | |||||
Wolverine Tube, Inc. (1) | 11,400 | 41,838 | |||
PRINTING AND PUBLISHING (0.98%) | |||||
Belo Corp.-Series A | 17,370 | 270,972 | |||
R.R. Donnelley & Sons Co. | 10,925 | 349,054 | |||
Tribune Co. | 7,375 | 239,171 | |||
859,197 | |||||
RAILROAD TRANSPORTATION (0.29%) | |||||
Union Pacific Corp. | 2,710 | 251,922 | |||
TOBACCO PRODUCTS (0.67%) | |||||
Altria Group, Inc. | 8,045 | 590,744 | |||
TRANSPORTATION EQUIPMENT (2.47%) | |||||
Federal Signal Corp. | 36,400 | 551,096 | |||
Honeywell International, Inc. | 27,400 | 1,104,220 | |||
ITT Industries, Inc. | 10,190 | 504,405 | |||
2,159,721 |
Shares Held | Value | |||||
WHOLESALE TRADE — NONDURABLE | ||||||
Dean Foods Co. (1) | 10,579 | $ | 393,433 | |||
Safeway, Inc. | 25,755 | 669,630 | ||||
SYSCO Corp. | 17,085 | 522,118 | ||||
1,585,181 | ||||||
Total Common Stocks | 51,021,542 | |||||
Principal Amount | ||||||
MORTGAGE-BACKED SECURITIES (2.92%) | ||||||
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) | ||||||
Pool # 2796, 7.00%, due 08/01/29 | $ | 75,177 | 77,087 | |||
Pool # 3040, 7.00%, due 02/01/31 | 42,884 | 43,963 | ||||
Pool # 3188, 6.50%, due 02/01/32 | 120,557 | 121,749 | ||||
Pool # 3239, 6.50%, due 05/01/32 | 186,283 | 188,126 | ||||
Pool # 3333, 5.50%, due 01/01/33 | 305,259 | 295,110 | ||||
Pool # 3403, 5.50%, due 06/01/33 | 251,229 | 242,876 | ||||
Pool # 3442, 5.00%, due 09/01/33 | 996,082 | 938,058 | ||||
Pool # 3459, 5.50%, due 10/01/33 | 671,074 | 648,761 | ||||
Total Mortgage-Backed Securities | 2,555,730 | |||||
UNITED STATES GOVERNMENT AGENCIES (26.02%) | ||||||
Federal National Mortgage Assoc., 6.00%, due 11/09/15 | 975,000 | 958,015 | ||||
Government National Mortgage Assoc., 5.00%, due 09/01/23 | 700,000 | 673,456 | ||||
Government National Mortgage Assoc., 5.50%, due 05/01/24 | 2,000,000 | 1,914,826 | ||||
Government National Mortgage Assoc., 5.00%, due 05/01/29 | 1,000,000 | 921,524 | ||||
Government National Mortgage Assoc., 5.00%, due 09/01/29 | 600,000 | 576,830 | ||||
Government National Mortgage Assoc., 5.00%, due 05/01/30 | 1,560,000 | 1,487,416 | ||||
Government National Mortgage Assoc., 5.00%, due 04/01/31 | 1,500,000 | 1,434,782 | ||||
Government National Mortgage Assoc., 5.00%, due 06/01/31 | 1,300,000 | 1,245,871 | ||||
Government National Mortgage Assoc., 5.50%, due 02/01/32 | 1,300,000 | 1,246,457 | ||||
Government National Mortgage Assoc., 5.00%, due 07/01/32 | 500,000 | 462,136 | ||||
Government National Mortgage Assoc., 5.50%, due 07/01/32 | 2,250,000 | 2,130,275 | ||||
Government National Mortgage Assoc., 5.50%, due 11/01/32 | 2,000,000 | 1,931,644 | ||||
Government National Mortgage Assoc., 5.50%, due 02/01/33 | 2,500,000 | 2,336,085 |
18
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
MANAGED PORTFOLIO (continued)
Principal Amount | Value | |||||
UNITED STATES GOVERNMENT | ||||||
Government National Mortgage Assoc., 5.00%, due 05/01/33 | $ | 780,000 | $ | 718,387 | ||
Government National Mortgage Assoc., 5.00%, due 06/01/33 | 1,693,200 | 1,603,110 | ||||
Government National Mortgage Assoc., 3.47%, due 04/01/34 | 476,106 | 453,357 | ||||
Government National Mortgage Assoc., 4.00%, due 10/01/34 | 841,717 | 802,888 | ||||
Government National Mortgage Assoc., 5.50%, due 12/01/34 | 2,000,000 | 1,872,592 | ||||
Total United States | 22,769,651 | |||||
SHORT-TERM INVESTMENTS (11.11%) | ||||||
COMMERCIAL PAPER (3.77%) | ||||||
DEPOSITORY INSTITUTIONS (1.60%) | ||||||
Citigroup CP, 5.05%, due 07/07/06 | 1,400,000 | 1,400,000 | ||||
NONDEPOSITORY INSTITUTIONS (1.03%) | ||||||
General Electric Capital Corp., | 300,000 | 300,000 | ||||
HSBC Finance Corp., | 600,000 | 600,000 | ||||
900,000 | ||||||
PETROLEUM AND COAL PRODUCTS (1.14%) | ||||||
Chevron Corp., | 1,000,000 | 1,000,000 | ||||
Total Commercial Paper | 3,300,000 | |||||
UNITED STATES GOVERNMENT AGENCIES (7.33%) | ||||||
Federal Home Loan Bank, | 1,400,000 | 1,398,839 | ||||
Federal Home Loan Bank, | 725,000 | 723,881 | ||||
Federal Home Loan Bank, | 1,700,000 | 1,695,625 | ||||
Federal Home Loan Mortgage Corp., | 1,000,000 | 996,578 | ||||
Federal National Mortgage Assoc., due 07/03/06 | 1,200,000 | 1,199,672 | ||||
Federal National Mortgage Assoc., | 400,000 | 399,032 | ||||
Total United States | 6,413,627 |
Shares Held | Value | ||||
MONEY MARKET MUTUAL FUND (0.01%) | |||||
JPMorgan U.S. Treasury Plus | 9,289 | $ | 9,289 | ||
Total Short-Term Investments | 9,722,916 | ||||
Total Investments (98.35%) | 86,069,839 | ||||
OTHER ASSETS LESS LIABILITIES (1.65%) | |||||
Cash, receivables, prepaid expense and other assets, less liabilities | 1,447,870 | ||||
Total Net Assets (100.00%) | $ | 87,517,709 | |||
(1) | Non-income producing securities. |
See accompanying notes.
19
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
MONEY MARKET PORTFOLIO
June 30, 2006
(Unaudited)
Annualized Yield on Purchase Date | Principal Amount | Value | ||||||||
SHORT-TERM INVESTMENTS (101.05%) | ||||||||||
COMMERCIAL PAPER (23.22%) | ||||||||||
FOOD AND KINDRED PRODUCTS (2.94%) | ||||||||||
Coca-Cola Enterprises, Inc., due 07/06/06 | 5.121 | % | $ | 250,000 | $ | 249,822 | ||||
INSURANCE CARRIERS (3.53%) | ||||||||||
Prudential Funding LLC, 5.06%, due 08/14/06 | 5.059 | 300,000 | 300,000 | |||||||
NONDEPOSITORY INSTITUTIONS (13.52%) | ||||||||||
American Express Credit Corp., 5.21%, due 09/18/06 | 5.208 | 300,000 | 300,000 | |||||||
American General Finance Corp., 5.21%, due 07/07/06 | 5.208 | 300,000 | 300,000 | |||||||
General Electric Capital Corp., 5.10%, due 08/18/06 | 5.103 | 300,000 | 300,000 | |||||||
HSBC Finance Corp., 5.34%, due 09/14/06 | 5.340 | 250,000 | 250,000 | |||||||
1,150,000 | ||||||||||
PETROLEUM AND COAL PRODUCTS (3.23%) | ||||||||||
Chevron Corp., 5.05%, due 08/28/06 | 5.053 | 275,000 | 275,000 | |||||||
Total Commercial Paper (Cost $1,974,822) | 1,974,822 | |||||||||
UNITED STATES GOVERNMENT AGENCIES (74.92%) | ||||||||||
Federal Farm Credit Bank, due 07/12/06 | 5.069 | 250,000 | 249,619 | |||||||
Federal Farm Credit Bank, due 07/14/06 | 5.121 | 250,000 | 249,545 | |||||||
Federal Farm Credit Bank, due 07/27/06 | 5.243 | 250,000 | 249,070 | |||||||
Federal Home Loan Bank, due 07/03/06 | 5.049 | 525,000 | 524,855 | |||||||
Federal Home Loan Bank, due 07/05/06 | 5.053 | 225,000 | 224,875 | |||||||
Federal Home Loan Bank, due 07/10/06 | 5.180 | 275,000 | 274,649 | |||||||
Federal Home Loan Bank, due 07/13/06 | 5.182 | 300,000 | 299,490 | |||||||
Federal Home Loan Bank, due 07/21/06 | 4.976 | 250,000 | 249,320 | |||||||
Federal Home Loan Bank, due 09/01/06 | 5.103 | 225,000 | 223,066 | |||||||
Federal Home Loan Mortgage Corp., due 07/11/06 | 4.975 | 250,000 | 249,660 | |||||||
Federal Home Loan Mortgage Corp., due 07/18/06 | 4.991 | 300,000 | 299,304 | |||||||
Federal Home Loan Mortgage Corp., due 07/25/06 | 4.972 | 350,000 | 348,860 | |||||||
Federal Home Loan Mortgage Corp., due 08/01/06 | 4.998 | 250,000 | 248,943 | |||||||
Federal Home Loan Mortgage Corp., due 08/25/06 | 5.326 | 249,000 | 247,018 | |||||||
Federal Home Loan Mortgage Corp., due 09/05/06 | 5.290 | 300,000 | 297,158 | |||||||
Federal Home Loan Mortgage Corp., due 09/12/06 | 5.295 | 300,000 | 296,856 | |||||||
Federal Home Loan Mortgage Corp., due 09/26/06 | 5.371 | 250,000 | 246,840 | |||||||
Federal National Mortgage Assoc., due 07/19/06 | 5.172 | 500,000 | 498,728 | |||||||
Federal National Mortgage Assoc., due 07/24/06 | 5.220 | 250,000 | 249,180 | |||||||
Federal National Mortgage Assoc., due 07/26/06 | 4.988 | 350,000 | 348,808 | |||||||
Federal National Mortgage Assoc., due 07/31/06 | 5.044 | 250,000 | 248,968 | |||||||
Federal National Mortgage Assoc., due 08/16/06 | 5.113 | 250,000 | 248,399 | |||||||
Total United States Government Agencies (Cost $6,373,211) | 6,373,211 | |||||||||
UNITED STATES TREASURY OBLIGATION (2.91%) | ||||||||||
U.S. Treasury Bill, due 08/31/06 (Cost $248,006) | 4.812 | 250,000 | 248,006 | |||||||
Total Short-Term Investments (Cost $8,596,039) | 8,596,039 | |||||||||
OTHER ASSETS LESS LIABILITIES (–1.05%) | ||||||||||
Cash, receivables, prepaid expense and other assets, less liabilities | (89,376 | ) | ||||||||
Total Net Assets (100.00%) | $ | 8,506,663 | ||||||||
See accompanying notes.
20
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
BLUE CHIP PORTFOLIO
June 30, 2006
(Unaudited)
Shares Held | Value | ||||
COMMON STOCKS (97.19%) | |||||
BUSINESS SERVICES (3.70%) | |||||
Microsoft Corp. | 93,758 | $ | 2,184,561 | ||
Oracle Corp. (1) | 58,314 | 844,970 | |||
3,029,531 | |||||
CHEMICALS AND ALLIED PRODUCTS (15.06%) | |||||
Abbott Laboratories | 25,260 | 1,101,589 | |||
Amgen, Inc. (1) | 18,200 | 1,187,186 | |||
Bristol-Myers Squibb Co. | 36,063 | 932,589 | |||
Dow Chemical Co. | 10,720 | 418,402 | |||
E.I. du Pont de Nemours & Co. | 16,081 | 668,970 | |||
Eli Lilly & Co. | 18,022 | 996,076 | |||
Johnson & Johnson | 43,580 | 2,611,314 | |||
Merck & Co., Inc. | 28,928 | 1,053,847 | |||
Pfizer, Inc. | 45,282 | 1,062,768 | |||
Procter & Gamble Co. | 41,042 | 2,281,935 | |||
12,314,676 | |||||
COMMUNICATIONS (4.59%) | |||||
AT&T, Inc. | 35,565 | 991,908 | |||
CBS Corp.-Class B | 12,334 | 333,635 | |||
Comcast Corp.-Class A (1) | 22,486 | 736,192 | |||
Verizon Communications | 37,307 | 1,249,411 | |||
Viacom, Inc.-Class B (1) | 12,334 | 442,050 | |||
3,753,196 | |||||
DEPOSITORY INSTITUTIONS (11.43%) | |||||
Bank of America Corp. | 46,596 | 2,241,268 | |||
Citigroup, Inc. | 49,326 | 2,379,486 | |||
J. P. Morgan Chase & Co. | 47,270 | 1,985,340 | |||
Wachovia Corp. | 25,980 | 1,404,998 | |||
Wells Fargo Co. | 19,900 | 1,334,892 | |||
9,345,984 | |||||
EATING AND DRINKING PLACES (2.13%) | |||||
McDonald’s Corp. | 51,752 | 1,738,867 | |||
ELECTRIC, GAS AND SANITARY SERVICES (3.62%) | |||||
Dominion Resources, Inc. | 11,600 | 867,564 | |||
Exelon Corp. | 24,600 | 1,398,018 | |||
Southern Co. | 21,650 | 693,883 | |||
2,959,465 | |||||
ELECTRONIC AND OTHER ELECTRICAL | |||||
Cisco Systems, Inc. (1) | 62,268 | 1,216,094 | |||
General Electric Co. | 73,576 | 2,425,065 | |||
Intel Corp. | 58,206 | 1,103,004 | |||
Motorola, Inc. | 37,949 | 764,672 | |||
Texas Instruments, Inc. | 27,001 | 817,860 | |||
6,326,695 |
Shares Held | Value | ||||
FOOD AND KINDRED PRODUCTS (3.17%) | |||||
Anheuser Busch Cos., Inc. | 11,432 | $ | 521,185 | ||
Coca-Cola Co. (The) | 26,389 | 1,135,255 | |||
PepsiCo, Inc. | 15,518 | 931,701 | |||
2,588,141 | |||||
FORESTRY (0.49%) | |||||
Weyerhaeuser Co. | 6,400 | 398,400 | |||
GENERAL MERCHANDISE STORES (2.51%) | |||||
Wal-Mart Stores, Inc. | 42,623 | 2,053,150 | |||
INDUSTRIAL MACHINERY AND | |||||
3M Co. | 17,808 | 1,438,352 | |||
Applied Materials, Inc. | 24,000 | 390,720 | |||
Caterpillar, Inc. | 28,614 | 2,131,171 | |||
Dell, Inc. (1) | 31,210 | 761,836 | |||
EMC Corp. (1) | 38,068 | 417,606 | |||
Hewlett-Packard Co. | 41,279 | 1,307,719 | |||
International Business Machines Corp. | 14,821 | 1,138,549 | |||
7,585,953 | |||||
INSURANCE CARRIERS (2.74%) | |||||
American International Group, Inc. | 37,964 | 2,241,774 | |||
LUMBER AND WOOD PRODUCTS (1.13%) | |||||
Home Depot, Inc. | 25,913 | 927,426 | |||
MOTION PICTURES (2.42%) | |||||
Disney (Walt) Co. | 36,832 | 1,104,960 | |||
Time Warner, Inc. | 50,502 | 873,685 | |||
1,978,645 | |||||
NONDEPOSITORY INSTITUTIONS (4.28%) | |||||
American Express Co. | 52,797 | 2,809,856 | |||
Federal National Mortgage Assoc. | 14,400 | 692,640 | |||
3,502,496 | |||||
PETROLEUM AND COAL PRODUCTS (8.23%) | |||||
Chevron Corp. | 39,400 | 2,445,164 | |||
Exxon Mobil Corp. | 69,771 | 4,280,451 | |||
6,725,615 | |||||
PRIMARY METAL INDUSTRIES (1.22%) | |||||
Alcoa, Inc. | 30,898 | 999,859 | |||
SECURITY AND COMMODITY BROKERS (0.58%) | |||||
Ameriprise Financial, Inc. | 10,559 | 471,670 | |||
TOBACCO PRODUCTS (3.50%) | |||||
Altria Group, Inc. | 38,965 | 2,861,200 |
21
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
BLUE CHIP PORTFOLIO (continued)
Shares Held | Value | |||||
TRANSPORTATION EQUIPMENT (9.37%) | ||||||
Boeing Co. (The) | 32,082 | $ | 2,627,837 | |||
General Motors Corp. | 16,700 | 497,493 | ||||
Honeywell International, Inc. | 38,024 | 1,532,367 | ||||
United Technologies Corp. | 47,402 | 3,006,235 | ||||
7,663,932 | ||||||
Total Common Stocks | 79,466,675 | |||||
SHORT-TERM INVESTMENTS (2.77%) | ||||||
MONEY MARKET MUTUAL FUND (0.02%) | ||||||
JPMorgan U.S. Treasury Plus | 18,079 | 18,079 | ||||
Principal Amount | ||||||
COMMERCIAL PAPER (1.04%) | ||||||
NONDEPOSITORY INSTITUTIONS (0.73%) | ||||||
American General Finance Corp., | $ | 200,000 | 200,000 | |||
General Electric Capital Corp., | 200,000 | 200,000 | ||||
HSBC Finance Corp., | 200,000 | 200,000 | ||||
600,000 | ||||||
PETROLEUM AND COAL PRODUCTS (0.31%) | ||||||
Chevron Corp., | 250,000 | 250,000 | ||||
Total Commercial Paper | 850,000 |
Principal Amount | Value | |||||
UNITED STATES GOVERNMENT AGENCIES (1.71%) | ||||||
Federal Home Loan Bank, | $ | 200,000 | $ | 199,485 | ||
Federal Home Loan Bank, | 200,000 | 199,431 | ||||
Federal Home Loan Mortgage Corp., | 350,000 | 349,806 | ||||
Federal Home Loan Mortgage Corp., | 200,000 | 199,116 | ||||
Federal National Mortgage Assoc., | 250,000 | 249,684 | ||||
Federal National Mortgage Assoc., due 07/24/06 | 200,000 | 199,345 | ||||
Total United States Government Agencies (Cost $1,396,867) | 1,396,867 | |||||
Total Short-Term Investments (Cost $2,264,946) | 2,264,946 | |||||
Total Investments (99.96%) (Cost $64,707,833) | 81,731,621 | |||||
OTHER ASSETS LESS LIABILITIES (0.04%) | ||||||
Cash, receivables, prepaid expense and other assets, less liabilities | 35,648 | |||||
Total Net Assets (100.00%) | $ | 81,767,269 | ||||
(1) | Non-income producing securities. |
See accompanying notes.
22
EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(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). 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).
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 as obtained from one or more dealers that make markets in the securities. 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 90 days 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 differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments for certain basis adjustments resulting from a taxable spin-off and taxable mergers. 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.
23
EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS (continued)
1. | Significant Accounting Policies (continued) |
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.
2. | Federal Income Taxes |
No provision for federal income taxes is considered necessary because the Fund is qualified as a “regulated investment company” under the Internal Revenue Code and intends to distribute each year substantially all of its net investment income and realized capital gains to shareholders.
As of June 30, 2006, the following Portfolios had approximate net capital loss carryforwards set forth below:
Portfolio | ||||||
Net Capital Loss Carryforwards Expire In: | Strategic Yield | Blue Chip | ||||
2010 | $ | 1,503,000 | $ | 1,786,000 | ||
2011 | 571,000 | 4,672,000 | ||||
2012 | — | 556,000 | ||||
2013 | — | 60,000 | ||||
$ | 2,074,000 | $ | 7,074,000 | |||
For the six month period ended June 30, 2006, the Value Growth Portfolio utilized approximately $977,000 or all of its previous capital loss carryforwards and the Strategic Yield Portfolio utilized approximately $186,000 of capital loss carryforwards.
As of June 30, 2006, the components of accumulated earnings 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 | Managed | |||||
Undistributed ordinary income | $ | 549,977 | $ | 1,268,729 | ||
Accumulated capital gains (losses) | 1,576,161 | 2,681,462 | ||||
Net unrealized appreciation of investments | 3,217,208 | 6,862,589 | ||||
Total accumulated earnings | $ | 5,343,346 | $ | 10,812,780 | ||
Differences between book and tax amounts are primarily attributable to taxable spin-offs, mergers and corporate inversions.
24
EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS (continued)
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 an agreement 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. There are no 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 six month period ended June 30, 2006, EquiTrust Investment further agreed to reimburse any Portfolio, to the extent that annual operating expenses, including the investment advisory fee, exceed 0.65%. For the six month period ended June 30, 2006, no expense reimbursements were made to the Fund by EquiTrust Investment.
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, 2006, 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:
Portfolio | Shares | |
Value Growth | 4,299,599 | |
High Grade Bond | 3,423,257 | |
Strategic Yield | 3,770,439 | |
Managed | 5,552,452 | |
Money Market | 6,445,584 | |
Blue Chip | 2,229,114 |
4. | Capital Share Transactions |
Transactions in shares of beneficial interest for each Portfolio were as follows:
Shares Sold | Shares Issued In Reinvestment of Dividends and Distributions | Shares Redeemed | Net Increase (Decrease) | |||||||||||||||||||
Portfolio | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||
Six Month period ended June 30, 2006: | ||||||||||||||||||||||
Value Growth | 122,079 | $ | 1,696,557 | 60,639 | $ | 836,213 | 202,352 | $ | 2,809,465 | (19,634 | ) | $ | (276,695 | ) | ||||||||
High Grade Bond | 337,120 | 3,378,215 | 89,507 | 894,631 | 158,355 | 1,585,253 | 268,272 | 2,687,593 | ||||||||||||||
Strategic Yield | 423,431 | 3,841,714 | 123,974 | 1,121,654 | 323,338 | 2,929,922 | 224,067 | 2,033,446 | ||||||||||||||
Managed | 322,945 | 4,881,308 | 445,511 | 6,620,289 | 233,554 | 3,524,861 | 534,902 | 7,976,736 | ||||||||||||||
Money Market | 22,093,620 | 22,093,620 | 121,690 | 121,690 | 19,996,277 | 19,996,277 | 2,219,033 | 2,219,033 | ||||||||||||||
Blue Chip | 47,949 | 1,709,643 | 46,259 | 1,635,261 | 144,206 | 5,154,033 | (49,998 | ) | (1,809,129 | ) | ||||||||||||
25
EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS (continued)
4. | Capital Share Transactions (continued) |
Shares Sold | Shares Issued In Reinvestment of Dividends and Distributions | Shares Redeemed | Net Increase (Decrease) | |||||||||||||||||||
Portfolio | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||
Year ended December 31, 2005: | ||||||||||||||||||||||
Value Growth | 221,957 | $ | 2,908,508 | 53,423 | $ | 665,116 | 358,299 | $ | 4,688,291 | (82,919 | ) | $ | (1,114,667 | ) | ||||||||
High Grade Bond | 664,378 | 6,808,079 | 149,086 | 1,528,984 | 262,031 | 2,690,002 | 551,433 | 5,647,061 | ||||||||||||||
Strategic Yield | 833,599 | 7,731,637 | 206,966 | 1,920,635 | 254,892 | 2,373,545 | 785,673 | 7,278,727 | ||||||||||||||
Managed | 655,902 | 10,084,258 | 175,742 | 2,597,468 | 334,379 | 5,134,191 | 497,265 | 7,547,535 | ||||||||||||||
Money Market | 36,520,136 | 36,520,136 | 122,167 | 122,167 | 36,946,738 | 36,946,738 | (304,435 | ) | (304,435 | ) | ||||||||||||
Blue Chip | 116,352 | 4,011,812 | 48,130 | 1,621,030 | 241,530 | 8,334,683 | (77,048 | ) | (2,701,841 | ) |
5. | Investment Transactions |
For the six month period ended June 30, 2006, 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 | $ | 9,166,837 | $ | 7,885,849 | ||
High Grade Bond | 1,916,608 | 745,782 | ||||
Strategic Yield | 5,237,301 | 1,742,909 | ||||
Managed | 10,550,505 | 8,465,510 | ||||
Blue Chip | — | — |
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, 2006, by Portfolio, was composed of the following:
Portfolio | Tax Cost of Investments in Securities | Gross Unrealized | Net Unrealized Appreciation (Depreciation) of Investments | ||||||||||
Appreciation | Depreciation | ||||||||||||
Value Growth | $ | 55,407,603 | $ | 8,731,232 | $ | 5,514,024 | $ | 3,217,208 | |||||
High Grade Bond | 37,174,919 | 164,518 | 950,168 | (785,650 | ) | ||||||||
Strategic Yield | 38,027,478 | 613,741 | 932,404 | (318,663 | ) | ||||||||
Managed | 78,207,250 | 10,470,870 | 3,608,281 | 6,862,589 | |||||||||
Blue Chip | 64,707,833 | 26,397,061 | 9,373,273 | 17,023,788 |
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.
26
EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS (continued)
6. | Dividends and Distributions to Shareholders |
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:
Portfolio | |||||||||
Payable Date | High Grade Bond | Strategic Yield | Money Market | ||||||
January 31, 2006 | $ | 0.0431 | $ | 0.0462 | $ | 0.0032 | |||
February 28, 2006 | 0.0319 | 0.0388 | 0.0029 | ||||||
March 31, 2006 | 0.0479 | 0.0471 | 0.0034 | ||||||
April 28, 2006 | 0.0388 | 0.0418 | 0.0032 | ||||||
May 31, 2006 | 0.0452 | 0.0490 | 0.0038 | ||||||
June 30, 2006 | 0.0438 | 0.0459 | 0.0037 | ||||||
Total dividends per share | $ | 0.2507 | $ | 0.2688 | $ | 0.0202 | |||
In addition, dividends and distributions to shareholders from net investment income and net realized gain on investment transactions were paid during the six month period ended June 30, 2006 for the following Portfolios:
Ordinary Income Dividends:
Portfolio | Declaration Date | Record Date | Payable Date | Amount Per Share | |||||
Value Growth | 1/18/06 | 1/18/06 | 1/19/06 | $ | 0.1899 | ||||
Managed | 1/18/06 | 1/18/06 | 1/19/06 | 0.3738 | |||||
Blue Chip | 1/18/06 | 1/18/06 | 1/19/06 | 0.7012 |
Capital Gains Distributions:
Portfolio | Declaration Date | Record Date | Payable Date | Amount Per Share | |||||
Managed | 1/18/06 | 1/18/06 | 1/19/06 | $ | 0.8778 |
27
EQUITRUST VARIABLE INSURANCE SERIES FUND
FINANCIAL HIGHLIGHTS
Period ended June 30, 2006 (Unaudited) and
Years Ended December 31, 2005, 2004, 2003, 2002 and 2001
Value Growth Portfolio | High Grade Bond Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | 2001 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | |||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.65 | $ | 12.98 | $ | 11.76 | $ | 9.14 | $ | 10.39 | $ | 9.92 | $ | 10.16 | $ | 10.38 | $ | 10.42 | $ | 10.39 | $ | 10.08 | $ | 9.82 | ||||||||||||||||||||||||
Income From Investment Operations | ||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 0.13 | 0.19 | 0.15 | 0.12 | 0.14 | 0.18 | 0.25 | 0.47 | 0.45 | 0.47 | 0.50 | 0.62 | ||||||||||||||||||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | 0.13 | 0.63 | 1.20 | 2.64 | (1.20 | ) | 0.50 | (0.28 | ) | (0.20 | ) | — | 0.08 | 0.32 | 0.26 | |||||||||||||||||||||||||||||||||
Total from investment operations | 0.26 | 0.82 | 1.35 | 2.76 | (1.06 | ) | 0.68 | (0.03 | ) | 0.27 | 0.45 | 0.55 | 0.82 | 0.88 | ||||||||||||||||||||||||||||||||||
Less Distributions | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends (from net investment income) | (0.19 | ) | (0.15 | ) | (0.13 | ) | (0.14 | ) | (0.19 | ) | (0.21 | ) | (0.25 | ) | (0.47 | ) | (0.45 | ) | (0.47 | ) | (0.50 | ) | (0.62 | ) | ||||||||||||||||||||||||
Distributions (from capital gains) | — | — | — | — | — | — | — | (0.02 | ) | (0.04 | ) | (0.05 | ) | (0.01 | ) | — | ||||||||||||||||||||||||||||||||
Total distributions | (0.19 | ) | (0.15 | ) | (0.13 | ) | (0.14 | ) | (0.19 | ) | (0.21 | ) | (0.25 | ) | (0.49 | ) | (0.49 | ) | (0.52 | ) | (0.51 | ) | (0.62 | ) | ||||||||||||||||||||||||
Net asset value, end of period | $ | 13.72 | $ | 13.65 | $ | 12.98 | $ | 11.76 | $ | 9.14 | $ | 10.39 | $ | 9.88 | $ | 10.16 | $ | 10.38 | $ | 10.42 | $ | 10.39 | $ | 10.08 | ||||||||||||||||||||||||
Total Return: | ||||||||||||||||||||||||||||||||||||||||||||||||
Total investment return based on net asset value (1) | 1.90 | % | 6.41 | % | 11.53 | % | 30.68 | % | (10.43 | )% | 6.98 | % | (0.29 | )% | 2.65 | % | 4.30 | % | 5.43 | % | 8.37 | % | 9.10 | % | ||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 60,245 | $ | 60,223 | $ | 58,354 | $ | 52,812 | $ | 40,953 | $ | 45,522 | $ | 36,637 | $ | 34,946 | $ | 29,980 | $ | 26,659 | $ | 24,984 | $ | 18,908 | ||||||||||||||||||||||||
Ratio of total expenses to average net assets | 0.58 | %(2) | 0.58 | % | 0.58 | % | 0.63 | % | 0.59 | % | 0.57 | % | 0.44 | %(2) | 0.45 | % | 0.45 | % | 0.49 | % | 0.46 | % | 0.45 | % | ||||||||||||||||||||||||
Ratio of net expenses to average net assets | 0.58 | %(2) | 0.58 | % | 0.58 | % | 0.63 | % | 0.59 | % | 0.57 | % | 0.44 | %(2) | 0.45 | % | 0.45 | % | 0.49 | % | 0.46 | % | 0.45 | % | ||||||||||||||||||||||||
Ratio of net investment income to average net assets | 1.79 | %(2) | 1.42 | % | 1.22 | % | 1.26 | % | 1.46 | % | 1.89 | % | 5.01 | %(2) | 4.63 | % | 4.34 | % | 4.51 | % | 4.92 | % | 6.10 | % | ||||||||||||||||||||||||
Portfolio turnover rate | 15 | %(3) | 18 | % | 17 | % | 17 | % | 15 | % | 40 | % | 12 | %(3) | 12 | % | 26 | % | 28 | % | 22 | % | 17 | % |
Note: Per share amounts have been calculated on the basis of monthly per share amounts (using average monthly outstanding shares) accumulated for the period.
(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) | Computed on an annualized basis. |
(3) | Not annualized. |
See accompanying notes.
28
EQUITRUST VARIABLE INSURANCE SERIES FUND
FINANCIAL HIGHLIGHTS (continued)
Strategic Yield Portfolio | Managed Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | 2001 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | |||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 9.14 | $ | 9.37 | $ | 9.13 | $ | 8.75 | $ | 8.90 | $ | 8.82 | $ | 15.80 | $ | 15.67 | $ | 14.73 | $ | 12.34 | $ | 13.00 | $ | 12.58 | ||||||||||||||||||||||||
Income From Investment Operations | ||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income . | 0.27 | 0.53 | 0.55 | 0.63 | 0.62 | 0.73 | 0.24 | 0.35 | 0.27 | 0.30 | 0.34 | 0.44 | ||||||||||||||||||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) . | (0.19 | ) | (0.23 | ) | 0.24 | 0.38 | (0.15 | ) | 0.08 | 0.27 | 0.32 | 0.97 | 2.43 | (0.57 | ) | 0.55 | ||||||||||||||||||||||||||||||||
Total from investment operations | 0.08 | 0.30 | 0.79 | 1.01 | 0.47 | 0.81 | 0.51 | 0.67 | 1.24 | 2.73 | (0.23 | ) | 0.99 | |||||||||||||||||||||||||||||||||||
Less Distributions | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends (from net investment income) | (0.27 | ) | (0.53 | ) | (0.55 | ) | (0.63 | ) | (0.62 | ) | (0.73 | ) | (0.37 | ) | (0.27 | ) | (0.30 | ) | (0.34 | ) | (0.43 | ) | (0.57 | ) | ||||||||||||||||||||||||
Distributions (from capital gains) | — | — | — | — | — | — | (0.88 | ) | (0.27 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total distributions | (0.27 | ) | (0.53 | ) | (0.55 | ) | (0.63 | ) | (0.62 | ) | (0.73 | ) | (1.25 | ) | (0.54 | ) | (0.30 | ) | (0.34 | ) | (0.43 | ) | (0.57 | ) | ||||||||||||||||||||||||
Net asset value, end of period | $ | 8.95 | $ | 9.14 | $ | 9.37 | $ | 9.13 | $ | 8.75 | $ | 8.90 | $ | 15.06 | $ | 15.80 | $ | 15.67 | $ | 14.73 | $ | 12.34 | $ | 13.00 | ||||||||||||||||||||||||
Total Return: | ||||||||||||||||||||||||||||||||||||||||||||||||
Total investment return based on net asset value (1) | 0.87 | % | 3.26 | % | 8.94 | % | 11.97 | % | 5.43 | % | 9.22 | % | 3.34 | % | 4.53 | % | 8.58 | % | 22.72 | % | (1.80 | )% | 8.12 | % | ||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (000's omitted) | $ | 38,301 | $ | 37,067 | $ | 30,637 | $ | 25,498 | $ | 22,395 | $ | 20,182 | $ | 87,518 | $ | 83,368 | $ | 74,876 | $ | 66,733 | $ | 54,428 | $ | 53,795 | ||||||||||||||||||||||||
Ratio of total expenses to average net assets | 0.58 | %(2) | 0.59 | % | 0.59 | % | 0.65 | % | 0.61 | % | 0.59 | % | 0.55 | %(2) | 0.56 | % | 0.56 | % | 0.62 | % | 0.58 | % | 0.56 | % | ||||||||||||||||||||||||
Ratio of net expenses to average net assets | 0.58 | %(2) | 0.59 | % | 0.59 | % | 0.65 | % | 0.61 | % | 0.59 | % | 0.55 | %(2) | 0.56 | % | 0.56 | % | 0.62 | % | 0.58 | % | 0.56 | % | ||||||||||||||||||||||||
Ratio of net investment income to average net assets | 5.93 | %(2) | 5.71 | % | 5.98 | % | 7.07 | % | 7.04 | % | 7.93 | % | 2.93 | %(2) | 2.34 | % | 1.87 | % | 2.35 | % | 2.73 | % | 3.47 | % | ||||||||||||||||||||||||
Portfolio turnover rate | 6 | %(3) | 1 | % | 34 | % | 32 | % | 34 | % | 33 | % | 13 | %(3) | 24 | % | 26 | % | 24 | % | 18 | % | 40 | % |
Note: Per share amounts have been calculated on the basis of monthly per share amounts (using average monthly outstanding shares) accumulated for the period.
(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) | Computed on an annualized basis. |
(3) | Not annualized. |
See accompanying notes.
29
EQUITRUST VARIABLE INSURANCE SERIES FUND
FINANCIAL HIGHLIGHTS (continued)
Money Market Portfolio | Blue Chip Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | 2001 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | |||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 35.27 | $ | 35.17 | $ | 33.65 | $ | 27.22 | $ | 34.14 | $ | 39.29 | ||||||||||||||||||||||||
Income From Investment Operations | ||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 0.02 | 0.02 | 0.01 | 0.01 | 0.01 | 0.03 | 0.37 | 0.70 | 0.67 | 0.50 | 0.46 | 0.50 | ||||||||||||||||||||||||||||||||||||
Net gains (losses) on securities (both realized and unrealized) | — | — | — | — | — | — | 0.78 | 0.07 | 1.35 | 6.38 | (6.88 | ) | (4.83 | ) | ||||||||||||||||||||||||||||||||||
Total from investment operations | 0.02 | 0.02 | 0.01 | 0.01 | 0.01 | 0.03 | 1.15 | 0.77 | 2.02 | 6.88 | (6.42 | ) | (4.33 | ) | ||||||||||||||||||||||||||||||||||
Less Distributions | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends (from net investment income) | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.03 | ) | (0.70 | ) | (0.67 | ) | (0.50 | ) | (0.45 | ) | (0.50 | ) | (0.56 | ) | ||||||||||||||||||||||||
Distributions (from capital gains) | — | — | — | — | — | — | — | — | — | — | — | (0.26 | ) | |||||||||||||||||||||||||||||||||||
Total distributions | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.03 | ) | (0.70 | ) | (0.67 | ) | (0.50 | ) | (0.45 | ) | (0.50 | ) | (0.82 | ) | ||||||||||||||||||||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 35.72 | $ | 35.27 | $ | 35.17 | $ | 33.65 | $ | 27.22 | $ | 34.14 | ||||||||||||||||||||||||
Total Return: | ||||||||||||||||||||||||||||||||||||||||||||||||
Total investment return based on net asset value (1) | 2.03 | % | 2.50 | % | 0.74 | % | 0.52 | % | 1.16 | % | 3.51 | % | 3.28 | % | 2.29 | % | 6.07 | % | 25.70 | % | (19.07 | )% | (11.28 | )% | ||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (000’s omitted) | $ | 8,507 | $ | 6,288 | $ | 6,592 | $ | 6,728 | $ | 8,150 | $ | 9,320 | $ | 81,767 | $ | 82,501 | $ | 84,960 | $ | 79,832 | $ | 63,699 | $ | 79,124 | ||||||||||||||||||||||||
Ratio of total expenses to average net assets | 0.54 | %(2) | 0.61 | % | 0.56 | % | 0.59 | % | 0.52 | % | 0.50 | % | 0.30 | %(2) | 0.31 | % | 0.30 | % | 0.36 | % | 0.31 | % | 0.28 | % | ||||||||||||||||||||||||
Ratio of net expenses to average net assets | 0.54 | %(2) | 0.61 | % | 0.56 | % | 0.59 | % | 0.52 | % | 0.48 | % | 0.30 | %(2) | 0.31 | % | 0.30 | % | 0.36 | % | 0.31 | % | 0.28 | % | ||||||||||||||||||||||||
Ratio of net investment income to average net assets | 4.05 | %(2) | 2.47 | % | 0.72 | % | 0.53 | % | 1.16 | % | 3.41 | % | 2.03 | %(2) | 1.98 | % | 2.00 | % | 1.72 | % | 1.50 | % | 1.42 | % | ||||||||||||||||||||||||
Portfolio turnover rate | — | %(3) | — | % | — | % | — | % | — | % | — | % | — | %(3) | — | % | 1 | % | 17 | % | — | % | — | % |
Note: Per share amounts have been calculated on the basis of monthly per share amounts (using average monthly outstanding shares) accumulated for the period.
(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) | Computed on an annualized basis. |
(3) | Not annualized. |
See accompanying notes.
30
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 Investment 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, 2006 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://www.sec.gov or may be reviewed and copied 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.
31
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 that were implemented after 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 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. |
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/ Dennis M. Marker | |
Name: | Dennis M. Marker | |
Title: | Chief Executive Officer | |
Date: August 24, 2006 |
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/ Dennis M. Marker | |
Name: | Dennis M. Marker | |
Title: | Chief Executive Officer | |
Date: August 24, 2006 | ||
By: | /s/ James W. Noyce | |
Name: | James W. Noyce | |
Title: | Chief Financial Officer | |
Date: August 24, 2006 |
N-CSR Certification
I, Dennis M. Marker, certify that:
1. I have reviewed this report on Form N-CSR of EquiTrust Variable Insurance Series Fund;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent 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; and |
5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: August 31, 2006 | /s/ Dennis M. Marker | |
Dennis M. Marker Chief Executive Officer |
N-CSR Certification
I, James W. Noyce, certify that:
1. I have reviewed this report on Form N-CSR of EquiTrust Variable Insurance Series Fund;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent 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; and |
5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: August 31, 2006 | /s/ James W. Noyce | |
James W. Noyce Chief Financial Officer |
Section 906 Certification
The following certification is provided by the undersigned Chief Executive Officer and Chief Financial Officer of EquiTrust Variable Insurance Series Fund on the basis of such officers’ knowledge and belief for the sole purpose of complying with 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
CERTIFICATION
In connection with the Semi-Annual Report of EquiTrust Variable Insurance Series Fund (the “Company”) on Form N-CSR for the period ended June 30, 2006 as filed with the Securities and Exchange Commission (the “Report”), we, Dennis M. Marker and James W. Noyce, Chief Executive Officer and Chief Financial Officer, respectively, of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
/s/ Dennis M. Marker |
Name: Dennis M. Marker |
Title: Chief Executive Officer |
Date: August 31, 2006 |
/s/ James W. Noyce |
Name: James W. Noyce |
Title: Chief Financial Officer |
Date: August 31, 2006 |