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, 2009
Date of reporting period: June 30, 2009
Item 1. | Reports to Stockholders. |
EquiTrust Variable Insurance Series Fund
SEMI-ANNUAL REPORT
JUNE 30, 2009
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.
PRESIDENT’S LETTER
Dear Shareholders:
As of June 30, 2009, the U.S. economy had endured 18 months of recession, the longest lasting economic contraction for the country since World War II. The country’s gross domestic product (“GDP”) contracted outright in four of those six quarters, with the worst declines occurring in the last quarter of 2008 and first quarter of 2009. Industrial production dropped sharply, with some measures of output dropping to lows not seen in generations. Unemployment, at 9.5% in June, now measures more than twice its level at the start of the recession and threatens to eclipse the post-WWII record of 10.8% reached in the 1980s. The economic downturn spread world-wide, with most regions showing some degree of slowing and many experiencing contraction.
Governments and central banks responded with unprecedented fiscal and monetary actions. China has been the world’s example in scope and speed of counter-cyclical spending, i.e. stimulus. The Chinese government’s focus has been on infrastructure but it has also attempted to spur domestic consumption. Our own government has enacted spending programs intended to ease the pain of unemployment and support essential functions of state and local government. It has additionally incorporated an element of infrastructure stimulus meant to salvage jobs while simultaneously improving the country’s ecological impact.
Central banks world-wide have likewise taken drastic steps to stunt the impact of recession and jump-start growth. For example, the U.S. Federal Reserve has lowered the Fed Funds rate from 4.25% around the start of recession in late 2007 to its current target of 0-0.25%. The Fed has also undertaken emergency lending powers to support credit markets after lending world-wide froze in response to the recession’s most violent storms. These types of actions have become common among central banks throughout the world.
There are now observable signs that the recession has at least seen its worst, though the shape and timing of recovery are not yet well-defined. U.S. GDP appears to have declined at an annualized rate of 1.0% in second quarter 2009, a significant reduction from the declines of 5.4% and 6.4%, respectively, in the fourth quarter of 2008 and first quarter of 2009. While the absolute rate of unemployment remains high and continues to expand, the pace of additions has so far peaked. Home sales, one key driver of this recession, appear to have bottomed, as well, with falling prices now actually benefiting this measure by improving affordability and, consequently, driving sales.
Stock prices and credit spreads are additional indicators that global economic conditions are at least slowing their descent, if not improving. The S&P 500 Composite Stock Index (the “S&P 500”) hit its recession-low in March of this year, at a level nearly 25% below where it started 2009. Like much of the stock market, however, the S&P 500 then surged off that low and erased the year’s losses. For the six-month period ended June 30, 2009, the S&P 500 recorded a gain of 3.19%.
Yield spreads reflect the additional yield over risk-free U.S. Treasury securities that investors require as compensation for bearing credit and liquidity risks. Spreads widened at the peak of this recession due to investor concern for both. These concerns have abated substantially in the last six months, with spreads following suit. As a result, yield sectors generally outperformed Treasury benchmarks for the period. The Barclays Capital U.S. Treasury Index returned -4.30 % and the Barclays Capital U.S. MBS Index 2.91%. The Barclays Capital U.S. Investment Grade Corporate Index and Barclays Capital U.S. High Yield Index returned 8.32% and 30.43%, respectively. Reflecting its substantial weighting in Treasury and agency securities, the broad Barclays Capital U.S. Aggregate Index returned 1.90% for the period.
It appears the economy and, consequently, the financial markets, have survived through the trough of this down-cycle. Full recovery will take time, while even a sustainable recovery may not be imminent in the near-term. We appreciate your support during this tough financial environment through your investment in the Fund. We take seriously our tasks of growing and protecting that investment. Thank you for continued support of the Fund.
Craig A. Lang
President
August 4, 2009
2
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.
3
EQUITRUST VARIABLE INSURANCE SERIES FUND
June 30, 2009
Value Growth Portfolio
Portfolio Holdings by Industry Sector
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. |
4
EQUITRUST VARIABLE INSURANCE SERIES FUND
June 30, 2009
Managed Portfolio
Portfolio Holdings by Industry Sector
Money Market Portfolio
Portfolio Holdings by Asset Type
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. |
5
Expense Example:
As a shareholder of the Fund, you may incur ongoing costs, including management fees and other Fund expenses. In addition, Service Class (SC) shares also incur distribution (12b-1) fees. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a given Portfolio and Share Class of the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested on January 1, 2009 and held until June 30, 2009.
Actual Expenses –
The first line for each Portfolio and Share Class in the following table provides information about actual account values and actual expenses for that Portfolio and Share Class. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” for the same Portfolio and Share Class to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes –
The second line for each Portfolio and Share Class in the following table provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of that Portfolio and Share Class and an assumed rate of return of 5% per year before expenses, which is not the actual return of the Portfolio and Share Class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a given Portfolio and Share Class of the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
6
Portfolio and Share Class | Beginning Account 1/1/2009 | Ending Account 6/30/2009 | Expenses Paid 1/1/2009 - 6/30/2009 | Annualized Expense Ratio (1) | ||||||||
Value Growth — IC | 0.60 | % | ||||||||||
Actual | $ | 1,000 | $ | 1,029.20 | $ | 3.04 | ||||||
Hypothetical (2) | $ | 1,000 | $ | 1,022.00 | $ | 3.03 | ||||||
Value Growth — SC | 0.85 | % | ||||||||||
Actual | $ | 1,000 | $ | 1,027.20 | $ | 4.29 | ||||||
Hypothetical (2) | $ | 1,000 | $ | 1,020.77 | $ | 4.28 | ||||||
High Grade Bond — IC | 0.44 | % | ||||||||||
Actual | $ | 1,000 | $ | 1,052.00 | $ | 2.24 | ||||||
Hypothetical (2) | $ | 1,000 | $ | 1,022.81 | $ | 2.21 | ||||||
High Grade Bond — SC | 0.69 | % | ||||||||||
Actual | $ | 1,000 | $ | 1,050.70 | $ | 3.51 | ||||||
Hypothetical (2) | $ | 1,000 | $ | 1,021.58 | $ | 3.46 | ||||||
Strategic Yield — IC | 0.60 | % | ||||||||||
Actual | $ | 1,000 | $ | 1,116.70 | $ | 3.15 | ||||||
Hypothetical (2) | $ | 1,000 | $ | 1,022.02 | $ | 3.01 | ||||||
Strategic Yield — SC | 0.85 | % | ||||||||||
Actual | $ | 1,000 | $ | 1,115.30 | $ | 4.46 | ||||||
Hypothetical (2) | $ | 1,000 | $ | 1,020.79 | $ | 4.26 | ||||||
Managed — IC | 0.58 | % | ||||||||||
Actual | $ | 1,000 | $ | 1,020.60 | $ | 2.92 | ||||||
Hypothetical (2) | $ | 1,000 | $ | 1,022.11 | $ | 2.93 | ||||||
Managed — SC | 0.83 | % | ||||||||||
Actual | $ | 1,000 | $ | 1,019.20 | $ | 4.18 | ||||||
Hypothetical (2) | $ | 1,000 | $ | 1,020.86 | $ | 4.18 | ||||||
Money Market — IC | 0.14 | % | ||||||||||
Actual | $ | 1,000 | $ | 1,000.70 | $ | 0.72 | ||||||
Hypothetical (2) | $ | 1,000 | $ | 1,024.28 | $ | 0.73 | ||||||
Money Market — SC | 0.13 | % | ||||||||||
Actual | $ | 1,000 | $ | 1,000.60 | $ | 0.66 | ||||||
Hypothetical (2) | $ | 1,000 | $ | 1,024.34 | $ | 0.67 | ||||||
Blue Chip — IC | 0.34 | % | ||||||||||
Actual | $ | 1,000 | $ | 978.30 | $ | 1.69 | ||||||
Hypothetical (2) | $ | 1,000 | $ | 1,023.29 | $ | 1.73 | ||||||
Blue Chip — SC | 0.59 | % | ||||||||||
Actual | $ | 1,000 | $ | 977.20 | $ | 2.91 | ||||||
Hypothetical (2) | $ | 1,000 | $ | 1,022.06 | $ | 2.97 |
(1) | Expenses are equal to the Annualized Expense Ratio as shown in the table for each Portfolio and Class, multiplied by the average account value over the period, multiplied by 181 days, and divided by 365 to reflect the one-half year period. |
(2) | Hypothetical examples are based on 5% return before expenses. |
7
EQUITRUST VARIABLE INSURANCE SERIES FUND
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2009
(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 — $53,492,153; $48,215,775; $38,699,447; $77,013,908; $12,623,212; and $61,664,407, respectively) | $ | 44,444,485 | $ | 46,262,972 | $ | 35,371,014 | $ | 69,561,181 | $ | 12,623,212 | $ | 60,631,497 | |||||||||||
Cash | — | — | — | — | 586,975 | — | |||||||||||||||||
Receivables: | |||||||||||||||||||||||
Accrued dividends and interest | 66,606 | 379,031 | 626,570 | 167,665 | 92 | 88,995 | |||||||||||||||||
Fund shares sold | 11,285 | 29,773 | 2,305 | 8,000 | 71,692 | 14,763 | |||||||||||||||||
Prepaid expense and other assets | 3,059 | 3,201 | 2,578 | 4,960 | 981 | 3,928 | |||||||||||||||||
Total Assets | 44,525,435 | 46,674,977 | 36,002,467 | 69,741,806 | 13,282,952 | 60,739,183 | |||||||||||||||||
LIABILITIES | |||||||||||||||||||||||
Payables: | |||||||||||||||||||||||
Fund shares redeemed | 40,662 | 82,141 | 43,466 | 75,163 | 65,774 | 86,627 | |||||||||||||||||
Investment securities purchased | 233,163 | — | — | — | — | — | |||||||||||||||||
Dividends | — | 21 | 26 | — | 113 | — | |||||||||||||||||
Accrued expenses | 9,330 | 7,090 | 6,896 | 11,307 | 5,894 | 11,995 | |||||||||||||||||
Total Liabilities | 283,155 | 89,252 | 50,388 | 86,470 | 71,781 | 98,622 | |||||||||||||||||
NET ASSETS | $ | 44,242,280 | $ | 46,585,725 | $ | 35,952,079 | $ | 69,655,336 | $ | 13,211,171 | $ | 60,640,561 | |||||||||||
ANALYSIS OF NET ASSETS | |||||||||||||||||||||||
Paid-in capital | $ | 56,892,664 | $ | 48,569,290 | $ | 43,287,137 | $ | 79,066,995 | $ | 13,211,171 | $ | 68,114,035 | |||||||||||
Accumulated undistributed net investment income | 387,725 | — | — | 987,400 | — | 817,746 | |||||||||||||||||
Accumulated net realized loss from investment transactions | (3,990,441 | ) | (30,762 | ) | (4,006,625 | ) | (2,946,332 | ) | — | (7,258,310 | ) | ||||||||||||
Net unrealized depreciation of investments | (9,047,668 | ) | (1,952,803 | ) | (3,328,433 | ) | (7,452,727 | ) | — | (1,032,910 | ) | ||||||||||||
NET ASSETS | $ | 44,242,280 | $ | 46,585,725 | $ | 35,952,079 | $ | 69,655,336 | $ | 13,211,171 | $ | 60,640,561 | |||||||||||
See accompanying notes.
8
EQUITRUST VARIABLE INSURANCE SERIES FUND
STATEMENTS OF ASSETS AND LIABILITIES (continued)
June 30, 2009
(Unaudited)
Value Growth Portfolio | High Grade Bond Portfolio | Strategic Yield Portfolio | Managed Portfolio | Money Market Portfolio | Blue Chip Portfolio | |||||||||||||
NET ASSET VALUE PER SHARE | ||||||||||||||||||
Initial Class: Net Assets | $ | 43,995,573 | $ | 42,658,143 | $ | 35,526,665 | $ | 68,819,294 | $ | 12,817,013 | $ | 59,273,421 | ||||||
Shares issued and outstanding | 4,471,757 | 4,406,412 | 4,406,766 | 5,867,403 | 12,817,013 | 2,177,440 | ||||||||||||
Net asset value per share | $ | 9.84 | $ | 9.68 | $ | 8.06 | $ | 11.73 | $ | 1.00 | $ | 27.22 | ||||||
Service Class: Net Assets | $ | 246,707 | $ | 3,927,582 | $ | 425,414 | $ | 836,042 | $ | 394,158 | $ | 1,367,140 | ||||||
Shares issued and outstanding | 24,662 | 405,620 | 52,763 | 69,256 | 394,158 | 48,833 | ||||||||||||
Net asset value per share | $ | 10.00 | $ | 9.68 | $ | 8.06 | $ | 12.07 | $ | 1.00 | $ | 28.00 | ||||||
See accompanying notes.
9
EQUITRUST VARIABLE INSURANCE SERIES FUND
STATEMENTS OF OPERATIONS
Six Months Ended June 30, 2009
(Unaudited)
Value Growth Portfolio | High Grade Bond Portfolio | Strategic Yield Portfolio | Managed Portfolio | Money Market Portfolio | Blue Chip Portfolio | |||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||
Dividends | $ | 517,708 | $ | — | $ | 31,000 | $ | 667,123 | $ | — | $ | 914,750 | ||||||||||||
Interest | 2,654 | 1,213,786 | 1,239,310 | 522,360 | 19,412 | 2,135 | ||||||||||||||||||
Less foreign tax withholding | (5,562 | ) | — | — | (4,500 | ) | — | — | ||||||||||||||||
Total Investment Income | 514,800 | 1,213,786 | 1,270,310 | 1,184,983 | 19,412 | 916,885 | ||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||
Paid to Affiliates: | ||||||||||||||||||||||||
Investment advisory and management fees | 94,602 | 65,892 | 78,307 | 151,817 | 17,090 | 57,021 | ||||||||||||||||||
Distribution fees | 244 | 4,197 | 377 | 989 | 481 | 1,143 | ||||||||||||||||||
Accounting fees | 10,511 | 10,982 | 8,701 | 15,021 | 3,418 | 14,255 | ||||||||||||||||||
Custodian fees | 3,647 | 3,549 | 2,824 | 4,257 | 3,536 | 3,072 | ||||||||||||||||||
Professional fees | 5,597 | 5,223 | 4,737 | 7,637 | 2,874 | 7,022 | ||||||||||||||||||
Trustees’ fees and expenses | 2,592 | 2,621 | 2,112 | 4,146 | 800 | 3,489 | ||||||||||||||||||
Reports to shareholders | 1,179 | 1,223 | 961 | 1,875 | 372 | 1,591 | ||||||||||||||||||
Insurance and bonds | 2,056 | 2,031 | 1,679 | 3,272 | 640 | 2,702 | ||||||||||||||||||
Miscellaneous | 6,650 | 5,375 | 5,202 | 8,576 | 3,270 | 8,849 | ||||||||||||||||||
Total Expenses | 127,078 | 101,093 | 104,900 | 197,590 | 32,481 | 99,144 | ||||||||||||||||||
Waiver/reimbursement of fees | — | — | — | — | (22,609 | ) | — | |||||||||||||||||
Fees paid indirectly | (4 | ) | (4 | ) | (3 | ) | (6 | ) | (1 | ) | (5 | ) | ||||||||||||
Net Expenses | 127,074 | 101,089 | 104,897 | 197,584 | 9,871 | 99,139 | ||||||||||||||||||
Net Investment Income | 387,726 | 1,112,697 | 1,165,413 | 987,399 | 9,541 | 817,746 | ||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||||||||||||||||||
Net realized loss from investment transactions | (2,809,414 | ) | (30,763 | ) | (1,939,369 | ) | (2,991,118 | ) | — | (789,728 | ) | |||||||||||||
Change in unrealized depreciation of investments | 3,610,018 | 1,199,492 | 4,667,497 | 3,302,390 | — | (1,445,295 | ) | |||||||||||||||||
Net Gain (Loss) on Investments | 800,604 | 1,168,729 | 2,728,128 | 311,272 | — | (2,235,023 | ) | |||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 1,188,330 | $ | 2,281,426 | $ | 3,893,541 | $ | 1,298,671 | $ | 9,541 | $ | (1,417,277 | ) | |||||||||||
See accompanying notes.
10
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, 2009 (Unaudited) | Year Ended December 31, 2008 | Six Months Ended June 30, 2009 (Unaudited) | Year Ended December 31, 2008 | Six Months Ended June 30, 2009 (Unaudited) | Year Ended December 31, 2008 | |||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||
Net investment income | $ | 387,726 | $ | 953,655 | $ | 1,112,697 | $ | 2,306,210 | $ | 1,165,413 | $ | 2,679,829 | ||||||||||||
Net realized gain (loss) from investment transactions | (2,809,414 | ) | (1,090,582 | ) | (30,763 | ) | 157,634 | (1,939,369 | ) | (1,328 | ) | |||||||||||||
Change in unrealized appreciation (depreciation) of investments | 3,610,018 | (19,897,585 | ) | 1,199,492 | (3,310,028 | ) | 4,667,497 | (7,497,534 | ) | |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,188,330 | (20,034,512 | ) | 2,281,426 | (846,184 | ) | 3,893,541 | (4,819,033 | ) | |||||||||||||||
DIVIDENDS AND DISTRIBUTIONS TO | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Initial Class | (952,784 | ) | (1,502,365 | ) | (1,031,446 | ) | (2,267,446 | ) | (1,155,786 | ) | (2,675,714 | ) | ||||||||||||
Service Class | (872 | ) | — | (81,251 | ) | (38,764 | ) | (9,627 | ) | (4,115 | ) | |||||||||||||
Net realized gain from investment transactions: | ||||||||||||||||||||||||
Initial Class | — | (2,736,188 | ) | (146,224 | ) | (19,907 | ) | — | — | |||||||||||||||
Service Class | — | — | (11,409 | ) | — | — | — | |||||||||||||||||
Total Dividends and Distributions | (953,656 | ) | (4,238,553 | ) | (1,270,330 | ) | (2,326,117 | ) | (1,165,413 | ) | (2,679,829 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS | (750,508 | ) | 1,161,657 | 1,173,303 | 1,534,435 | (3,357,513 | ) | (1,166,815 | ) | |||||||||||||||
Total Increase (Decrease) in Net Assets | (515,834 | ) | (23,111,408 | ) | 2,184,399 | (1,637,866 | ) | (629,385 | ) | (8,665,677 | ) | |||||||||||||
NET ASSETS | ||||||||||||||||||||||||
Beginning of period | 44,758,114 | 67,869,522 | 44,401,326 | 46,039,192 | 36,581,464 | 45,247,141 | ||||||||||||||||||
End of period (including accumulated undistributed net investment income as set forth below) | $ | 44,242,280 | $ | 44,758,114 | $ | 46,585,725 | $ | 44,401,326 | $ | 35,952,079 | $ | 36,581,464 | ||||||||||||
Accumulated Undistributed Net Investment Income | $ | 387,725 | $ | 953,655 | $ | — | $ | — | $ | — | $ | — | ||||||||||||
See accompanying notes.
11
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, 2009 (Unaudited) | Year Ended December 31, 2008 | Six Months Ended June 30, 2009 (Unaudited) | Year Ended December 31, 2008 | Six Months Ended June 30, 2009 (Unaudited) | Year Ended December 31, 2008 | |||||||||||||||||||
OPERATIONS | ||||||||||||||||||||||||
Net investment income | $ | 987,399 | $ | 2,336,486 | $ | 9,541 | $ | 304,445 | $ | 817,746 | $ | 1,951,148 | ||||||||||||
Net realized gain (loss) from investment transactions | (2,991,118 | ) | (70,648 | ) | — | — | (789,728 | ) | (1,902,319 | ) | ||||||||||||||
Change in unrealized appreciation (depreciation) of investments | 3,302,390 | (20,814,564 | ) | — | — | (1,445,295 | ) | (28,094,020 | ) | |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,298,671 | (18,548,726 | ) | 9,541 | 304,445 | (1,417,277 | ) | (28,045,191 | ) | |||||||||||||||
DIVIDENDS AND DISTRIBUTIONS TO | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Initial Class | (2,332,629 | ) | (3,357,314 | ) | (9,320 | ) | (304,030 | ) | (1,945,486 | ) | (1,916,168 | ) | ||||||||||||
Service Class | (3,856 | ) | — | (221 | ) | (415 | ) | (5,662 | ) | — | ||||||||||||||
Net realized gain from investment transactions: | ||||||||||||||||||||||||
Initial Class | — | (3,363,319 | ) | — | — | — | — | |||||||||||||||||
Service Class | — | — | — | — | — | — | ||||||||||||||||||
Total Dividends and Distributions | (2,336,485 | ) | (6,720,633 | ) | (9,541 | ) | (304,445 | ) | (1,951,148 | ) | (1,916,168 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS | (1,059,470 | ) | (50,789 | ) | (1,617,360 | ) | (1,635,323 | ) | 1,147,298 | (1,943,081 | ) | |||||||||||||
Total Increase (Decrease) in Net Assets | (2,097,284 | ) | (25,320,148 | ) | (1,617,360 | ) | (1,635,323 | ) | (2,221,127 | ) | (31,904,440 | ) | ||||||||||||
NET ASSETS | ||||||||||||||||||||||||
Beginning of period | 71,752,620 | 97,072,768 | 14,828,531 | 16,463,854 | 62,861,688 | 94,766,128 | ||||||||||||||||||
End of period (including accumulated undistributed net investment income as set forth below) | $ | 69,655,336 | $ | 71,752,620 | $ | 13,211,171 | $ | 14,828,531 | $ | 60,640,561 | $ | 62,861,688 | ||||||||||||
Accumulated Undistributed Net Investment Income | $ | 987,400 | $ | 2,336,486 | $ | — | $ | — | $ | 817,746 | $ | 1,951,148 | ||||||||||||
See accompanying notes.
12
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
VALUE GROWTH PORTFOLIO
June 30, 2009
(Unaudited)
Shares Held | Value | ||||
COMMON STOCKS (96.73%) | |||||
AMUSEMENT AND RECREATION SERVICES (0.59%) | |||||
Bally Technologies, Inc. (1) | 8,700 | $ | 260,304 | ||
APPAREL AND ACCESSORY STORES (1.09%) | |||||
Limited Brands, Inc. | 19,200 | 229,824 | |||
Urban Outfitters, Inc. (1) | 12,100 | 252,527 | |||
482,351 | |||||
BUSINESS SERVICES (8.55%) | |||||
Adobe Systems Inc. (1) | 11,700 | 331,110 | |||
Automatic Data Processing Inc. | 6,700 | 237,448 | |||
eBay Inc. (1) | 13,135 | 225,003 | |||
ManTech International Corp.-Series A (1) | 5,900 | 253,936 | |||
Microsoft Corp. | 55,255 | 1,313,411 | |||
Oracle Corp. | 46,070 | 986,819 | |||
Symantec Corp. (1) | 28,002 | 435,711 | |||
3,783,438 | |||||
CHEMICALS AND ALLIED PRODUCTS (13.99%) | |||||
Abbott Laboratories | 10,400 | 489,216 | |||
Amgen Inc. (1) | 7,625 | 403,668 | |||
Avon Products, Inc. | 4,900 | 126,322 | |||
Charles River Laboratories International, Inc. (1) | 8,500 | 286,875 | |||
Colgate-Palmolive Co. | 5,355 | 378,813 | |||
Dow Chemical Co. (The) | 5,330 | 86,026 | |||
E. I. du Pont de Nemours and Co. | 16,005 | 410,048 | |||
Johnson & Johnson | 16,700 | 948,560 | |||
K-V Pharmaceutical Co.-Class A (1) | 12,700 | 40,767 | |||
Mylan Inc. (1) | 24,650 | 321,683 | |||
Pfizer Inc. | 66,886 | 1,003,290 | |||
Procter & Gamble Co. (The) | 16,425 | 839,317 | |||
Schering-Plough Corp. | 14,980 | 376,298 | |||
Teva Pharmaceutical Industries Ltd. | 9,691 | 478,154 | |||
6,189,037 | |||||
COMMUNICATIONS (2.87%) | |||||
AT&T Inc | 17,660 | 438,674 | |||
Comcast Corp.-Class A | 14,065 | 203,802 | |||
Sprint Nextel Corp. (1) | 17,913 | 86,162 | |||
Time Warner Cable, Inc. | 2,459 | 77,876 | |||
Verizon Communications Inc. | 15,065 | 462,947 | |||
1,269,461 | |||||
DEPOSITORY INSTITUTIONS (3.16%) | |||||
Bank of America Corp. | 16,089 | 212,375 | |||
Bank of New York Mellon Corp. (The) | 7,150 | 209,567 | |||
Citigroup Inc. | 22,363 | 66,418 | |||
JPMorgan Chase & Co. | 6,600 | 225,126 | |||
New York Community Bancorp, Inc. | 23,156 | 247,538 | |||
Northern Trust Corp. | 4,200 | 225,456 | |||
U.S. Bancorp | 9,135 | 163,699 |
Shares Held | Value | ||||
Wells Fargo & Co. | 1,981 | $ | 48,059 | ||
1,398,238 | |||||
EATING AND DRINKING PLACES (0.46%) | |||||
Sonic Corp. (1) | 20,100 | 201,603 | |||
ELECTRIC, GAS AND SANITARY SERVICES (3.42%) | |||||
Atmos Energy Corp. | 11,267 | 282,126 | |||
CMS Energy Corp. | 28,300 | 341,864 | |||
Integrys Energy Group, Inc. | 9,886 | 296,481 | |||
Pepco Holdings, Inc. | 12,335 | 165,782 | |||
Pinnacle West Capital Corp. | 9,200 | 277,380 | |||
Waste Management, Inc. | 5,300 | 149,248 | |||
1,512,881 | |||||
ELECTRONIC AND OTHER ELECTRICAL EQUIPMENT (6.70%) | |||||
BigBand Networks Inc. (1) | 42,700 | 220,759 | |||
Cisco Systems, Inc. (1) | 46,570 | 868,065 | |||
Emerson Electric Co. | 4,600 | 149,040 | |||
Energy Conversion Devices, Inc. (1) | 13,100 | 185,365 | |||
First Solar, Inc. (1) | 800 | 129,696 | |||
General Electric Co. | 66,480 | 779,146 | |||
Helen of Troy Ltd. (1) | 8,966 | 150,539 | |||
Intel Corp. | 17,500 | 289,625 | |||
QUALCOMM Inc. | 4,200 | 189,840 | |||
2,962,075 | |||||
FABRICATED METAL PRODUCTS (1.06%) | |||||
Illinois Tool Works Inc. | 12,580 | 469,737 | |||
FOOD AND KINDRED PRODUCTS (3.53%) | |||||
Coca-Cola Co. (The) | 6,870 | 329,691 | |||
Coca-Cola FEMSA, S.A.B. de C.V. | 3,700 | 148,444 | |||
H.J. Heinz Co. | 6,100 | 217,770 | |||
Kraft Foods Inc. | 12,708 | 322,021 | |||
McCormick & Company, Inc. | 8,000 | 260,240 | |||
PepsiCo, Inc. | 5,180 | 284,693 | |||
1,562,859 | |||||
FOOD STORES (0.58%) | |||||
Kroger Co. (The) | 11,686 | 257,676 | |||
FORESTRY (0.41%) | |||||
Weyerhaeuser Co. | 5,965 | 181,515 | |||
GENERAL MERCHANDISE STORES (2.36%) | |||||
Target Corp. | 8,415 | 332,140 | |||
Wal-Mart Stores, Inc. | 14,735 | 713,763 | |||
1,045,903 | |||||
HOLDING AND OTHER INVESTMENT OFFICES (2.45%) | |||||
Adams Express Co. (The) | 67,123 | 563,833 |
13
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
VALUE GROWTH PORTFOLIO (continued)
Shares Held | Value | ||||
COMMON STOCKS (continued) | |||||
HOLDING AND OTHER INVESTMENT OFFICES (2.45%) — continued | |||||
H&Q Life Sciences Investors | 37,472 | $ | 324,882 | ||
Redwood Trust, Inc. | 13,200 | 194,832 | |||
1,083,547 | |||||
INDUSTRIAL MACHINERY AND EQUIPMENT (5.70%) | |||||
3M Co. | 5,890 | 353,989 | |||
Apple Inc. (1) | 4,160 | 592,509 | |||
EMC Corp. (1) | 62,025 | 812,528 | |||
Hewlett-Packard Co. | 5,270 | 203,686 | |||
Ingersoll-Rand Co. Ltd.-Class A | 19,260 | 402,534 | |||
Sigma Designs, Inc. (1) | 9,700 | 155,588 | |||
2,520,834 | |||||
INSTRUMENTS AND RELATED PRODUCTS (3.57%) | |||||
Agilent Technologies, Inc. (1) | 7,000 | 142,170 | |||
Alcon, Inc. | 1,950 | 226,434 | |||
Becton, Dickinson and Co. | 5,326 | 379,797 | |||
Bio-Rad Laboratories, Inc.-Class A (1) | 3,300 | 249,084 | |||
Danaher Corp. | 2,400 | 148,176 | |||
Mettler-Toledo International Inc. (1) | 3,375 | 260,381 | |||
Stryker Corp. | 4,380 | 174,061 | |||
1,580,103 | |||||
INSURANCE AGENTS, BROKERS AND SERVICE (0.60%) | |||||
Arthur J. Gallagher & Co. | 12,365 | 263,869 | |||
INSURANCE CARRIERS (3.28%) | |||||
Allstate Corp. (The) | 4,910 | 119,804 | |||
American Equity Investment Life Holding Co. | 29,300 | 163,494 | |||
CIGNA Corp. | 10,400 | 250,536 | |||
EMC Insurance Group Inc. | 13,610 | 283,224 | |||
Lincoln National Corp. | 4,485 | 77,187 | |||
MBIA Inc. (1) | 4,690 | 20,308 | |||
MetLife, Inc. | 8,705 | 261,237 | |||
Protective Life Corp. | 4,215 | 48,220 | |||
StanCorp Financial Group, Inc. | 7,900 | 226,572 | |||
1,450,582 | |||||
LEATHER AND LEATHER PRODUCTS (0.56%) | |||||
Coach, Inc. | 9,300 | 249,984 | |||
METAL MINING (3.00%) | |||||
Barrick Gold Corp. | 24,946 | 836,938 | |||
Newmont Mining Corp. | 12,000 | 490,440 | |||
1,327,378 | |||||
MISCELLANEOUS MANUFACTURING INDUSTRIES (0.52%) | |||||
Hasbro, Inc. | 9,500 | 230,280 | |||
Shares Held | Value | ||||
MOTION PICTURES (1.12%) | |||||
Time Warner Inc. | 9,796 | $ | 246,761 | ||
Walt Disney Co. (The) | 10,715 | 249,981 | |||
496,742 | |||||
MOTOR FREIGHT TRANSPORTATION AND WAREHOUSING (0.64%) | |||||
United Parcel Service, Inc.-Class B | 5,675 | 283,693 | |||
OIL AND GAS EXTRACTION (7.82%) | |||||
Anadarko Petroleum Corp. | 10,200 | 462,978 | |||
Apache Corp. | 5,200 | 375,180 | |||
Baker Hughes Inc. | 6,200 | 225,928 | |||
Devon Energy Corp. | 4,600 | 250,700 | |||
Exterran Holdings, Inc. (1) | 5,900 | 94,636 | |||
Helmerich & Payne, Inc. | 14,600 | 450,702 | |||
Noble Corp. | 8,600 | 260,150 | |||
Occidental Petroleum Corp. | 6,800 | 447,508 | |||
Rowan Companies, Inc. | 8,800 | 170,016 | |||
Transocean Inc. (1) | 4,600 | 341,734 | |||
Weatherford International Ltd. (1) | 14,600 | 285,576 | |||
Whiting Petroleum Corp. (1) | 2,700 | 94,932 | |||
3,460,040 | |||||
PAPER AND ALLIED PRODUCTS (1.27%) | |||||
Kimberly-Clark Corp. | 10,720 | 562,050 | |||
PERSONAL SERVICES (0.97%) | |||||
Cintas Corp. | 6,770 | 154,627 | |||
Service Corp. International | 50,000 | 274,000 | |||
428,627 | |||||
PETROLEUM AND COAL PRODUCTS (3.47%) | |||||
Chevron Corp. | 10,300 | 682,375 | |||
ConocoPhillips | 10,257 | 431,409 | |||
Exxon Mobil Corp. | 4,500 | 314,595 | |||
Valero Energy Corp. | 6,300 | 106,407 | |||
1,534,786 | |||||
RAILROAD TRANSPORTATION (0.37%) | |||||
Union Pacific Corp. | 3,140 | 163,468 | |||
RETAIL-DRUG AND PROPRIETARY STORES (0.75%) | |||||
Walgreen Co. | 11,245 | 330,603 | |||
RETAIL-FURNISHINGS AND HOME FURNITURE STORES (1.07%) | |||||
Bed Bath & Beyond Inc. (1) | 7,010 | 215,558 | |||
GameStop Corp.-Class A (1) | 11,700 | 257,517 | |||
473,075 | |||||
RETAIL-JEWELRY STORES (0.43%) | |||||
Tiffany & Co. | 7,500 | 190,200 | |||
14
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
VALUE GROWTH PORTFOLIO (continued)
Shares Held | Value | ||||
COMMON STOCKS (continued) | |||||
RUBBER AND MISCELLANEOUS PLASTICS PRODUCTS (0.47%) | |||||
Tupperware Brands Corp. | 8,000 | $ | 208,160 | ||
SECURITY AND COMMODITY BROKERS (3.70%) | |||||
BGC Partners, Inc.-Class A | 68,775 | 260,657 | |||
Franklin Resources, Inc. | 3,750 | 270,038 | |||
Investment Technology Group, Inc. (1) | 9,600 | 195,744 | |||
Janus Capital Group Inc. | 22,650 | 258,210 | |||
NASDAQ OMX Group, Inc. (The) (1) | 11,600 | 247,196 | |||
SEI Investments Co. | 22,450 | 404,998 | |||
1,636,843 | |||||
SERVICES — ENGINEERING, ACCOUNTING, RESEARCH & MANAGEMENT (0.92%) | |||||
Quest Diagnostics Inc. | 7,200 | 406,296 | |||
TOBACCO PRODUCTS (0.59%) | |||||
Philip Morris International Inc. | 6,010 | 262,156 | |||
TRANSPORTATION EQUIPMENT (3.35%) | |||||
Federal Signal Corp. | 13,300 | 101,745 | |||
Genuine Parts Co. | 6,200 | 208,072 | |||
Honeywell International Inc. | 18,835 | 591,419 | |||
ITT Corp. | 13,020 | 579,390 | |||
1,480,626 | |||||
WHOLESALE TRADE — DURABLE GOODS (0.61%) | |||||
BorgWarner Inc. | 7,900 | 269,627 | |||
WHOLESALE TRADE — NONDURABLE GOODS (0.73%) | |||||
SYSCO Corp. | 14,390 | 323,487 | |||
Total Common Stocks | 42,794,134 | ||||
SHORT-TERM INVESTMENTS (3.73%) | |||||
MONEY MARKET MUTUAL FUND (1.47%) | |||||
JP Morgan U.S. Treasury Plus Money Market Fund | 650,387 | 650,387 |
Principal Amount | Value | ||||||
UNITED STATES GOVERNMENT AGENCIES (2.26%) | |||||||
Federal Home Loan Bank, | $ | 500,000 | $ | 499,989 | |||
Federal Home Loan Mortgage Corp., | 500,000 | 499,975 | |||||
Total United States | 999,964 | ||||||
Total Short-Term Investments | 1,650,351 | ||||||
Total Investments (100.46%) | 44,444,485 | ||||||
OTHER ASSETS LESS LIABILITIES (-0.46%) | |||||||
Cash, receivables, prepaid expense and other assets, less liabilities | (202,205 | ) | |||||
Total Net Assets (100.00%) | $ | 44,242,280 | |||||
(1) | Non-income producing securities. |
See accompanying notes.
15
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
HIGH GRADE BOND PORTFOLIO
June 30, 2009
(Unaudited)
Principal Amount | Value | |||||
CORPORATE BONDS (39.10%) | ||||||
CHEMICALS AND ALLIED PRODUCTS (7.44%) | ||||||
Merck & Co., Inc., 5.00%, due 06/30/19 | $ | 1,500,000 | $ | 1,521,762 | ||
Pfizer Inc., 5.35%, due 03/15/15 | 1,800,000 | 1,943,298 | ||||
3,465,060 | ||||||
DEPOSITORY INSTITUTIONS (8.08%) | ||||||
Comerica Bank, | 1,000,000 | 739,190 | ||||
Fifth Third Bancorp, | 1,000,000 | 766,240 | ||||
Goldman Sachs Group, Inc. (The), | 900,000 | 894,843 | ||||
Huntington National Bank, | 700,000 | 535,094 | ||||
PNC Preferred FD, 144A, | 1,500,000 | 825,915 | ||||
Washington Mutual Bank, FA, | 750,000 | 1,125 | ||||
3,762,407 | ||||||
ELECTRIC, GAS AND SANITARY SERVICES (12.93%) | ||||||
NorthWestern Corp., 144A, | 700,000 | 736,029 | ||||
Oglethorpe Power Corp., | 208,000 | 219,430 | ||||
PacifiCorp, 6.90%, due 11/15/11 | 750,000 | 834,158 | ||||
Public Service Co. of Colorado, | 1,500,000 | 1,550,625 | ||||
South Carolina Electric & Gas Co., | 1,500,000 | 1,708,725 | ||||
Westar Energy, Inc., | 1,000,000 | 976,020 | ||||
6,024,987 | ||||||
FOOD AND KINDRED PRODUCTS (2.20%) | ||||||
Diageo Capital plc, | 1,000,000 | 1,027,050 | ||||
FOOD STORES (1.33%) | ||||||
Ahold Finance U.S.A., LLC, | 600,000 | 621,768 | ||||
FURNITURE AND FIXTURES (1.07%) | ||||||
Steelcase Inc., 6.50%, due 08/15/11 | 500,000 | 496,300 | ||||
HOLDING AND OTHER INVESTMENT OFFICES (1.35%) | ||||||
Washington Real Estate Investment Trust, 5.25%, due 01/15/14 | 700,000 | 627,242 |
Principal Amount | Value | |||||
INSURANCE CARRIERS (3.56%) | ||||||
Prudential Financial, Inc., | $ | 1,500,000 | $ | 1,376,205 | ||
SunAmerica Inc., | 700,000 | 280,266 | ||||
1,656,471 | ||||||
TRANSPORTATION — BY AIR (1.14%) | ||||||
Continental Airlines, Inc. Pass-Through Certificates 1991-1 Class A, | 361,905 | 339,460 | ||||
FedEx Corp. Pass-Through Certificates, | 179,233 | 191,548 | ||||
531,008 | ||||||
Total Corporate Bonds | 18,212,293 | |||||
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES (1.78%) | ||||||
TIAA Seasoned Commercial Mortgage Trust 2007-C4 Class AJ, | 1,500,000 | 827,831 | ||||
Total Commercial Mortgage Pass-Through Certificates | 827,831 | |||||
MORTGAGE-BACKED SECURITIES (51.65%) | ||||||
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) (14.60%) | ||||||
3023 Class TG, 5.50%, due 08/01/35 | 914,266 | 927,441 | ||||
3051 Class MY, 5.50% due 10/01/25 | 1,000,000 | 1,010,660 | ||||
Pool # A53146, 5.50%, due 10/01/36 | 1,241,971 | 1,284,652 | ||||
Pool # A69436, 6.00%, due 12/01/37 | 680,927 | 710,425 | ||||
Pool # G02562, 6.00%, due 01/01/37 | 935,951 | 978,818 | ||||
Pool # G02648, 5.50%, due 12/01/36 | 1,025,399 | 1,060,637 | ||||
Pool # G03803, 5.50%, due 01/01/38 | 802,780 | 829,991 | ||||
6,802,624 | ||||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (13.30%) | ||||||
Pool # 50276, 9.50%, due 02/01/20 | 589 | 648 | ||||
Pool # 256103, 5.50%, due 02/01/26 | 611,217 | 635,681 | ||||
Pool # 257306, 5.50%, due 08/01/38 | 2,463,361 | 2,543,617 | ||||
Pool # 897144, 6.00%, due 09/01/36 | 644,789 | 675,530 | ||||
Pool # 906224, 5.50%, due 01/01/37 | 1,342,636 | 1,388,985 | ||||
Pool # 928570, 6.00%, due 08/01/37 | 909,491 | 951,999 | ||||
6,196,460 | ||||||
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (23.75%) | ||||||
2003-1 Class PE, | 1,000,000 | 1,053,457 |
16
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
HIGH GRADE BOND PORTFOLIO (continued)
Principal Amount | Value | |||||
MORTGAGE-BACKED SECURITIES (continued) | ||||||
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (23.75%) — (continued) | ||||||
2003-116 Class JC, | $ | 1,000,000 | $ | 1,041,129 | ||
Pool # 1512, 7.50%, due 12/01/23 | 11,025 | 12,062 | ||||
Pool # 2631, 7.00%, due 08/01/28 | 16,148 | 17,560 | ||||
Pool # 2658, 6.50%, due 10/01/28 | 28,102 | 30,272 | ||||
Pool # 2701, 6.50%, due 01/01/29 | 37,151 | 40,026 | ||||
Pool # 2796, 7.00%, due 08/01/29 | 27,878 | 30,364 | ||||
Pool # 3039, 6.50%, due 02/01/31 | 10,619 | 11,432 | ||||
Pool # 3040, 7.00%, due 02/01/31 | 17,499 | 19,069 | ||||
Pool # 3188, 6.50%, due 01/01/32 | 62,930 | 67,575 | ||||
Pool # 3239, 6.50%, due 05/01/32 | 60,344 | 64,797 | ||||
Pool # 3261, 6.50%, due 07/01/32 | 118,708 | 127,469 | ||||
Pool # 3320, 5.50%, due 12/01/32 | 498,848 | 515,498 | ||||
Pool # 3333, 5.50%, due 01/01/33 | 415,867 | 429,582 | ||||
Pool # 3375, 5.50%, due 04/01/33 | 63,369 | 65,459 | ||||
Pool # 3390, 5.50%, due 05/01/33 | 276,179 | 285,287 | ||||
Pool # 3403, 5.50%, due 06/01/33 | 465,792 | 481,152 | ||||
Pool # 3458, 5.00%, due 10/01/33 | 447,944 | 456,587 | ||||
Pool # 3499, 5.00%, due 01/01/34 | 664,603 | 677,124 | ||||
Pool # 3556, 5.50%, due 05/01/34 | 675,242 | 697,041 | ||||
Pool # 3623, 5.00%, due 10/01/34 | 1,100,046 | 1,120,770 | ||||
Pool # 22630, 6.50%, due 08/01/28 | 15,743 | 16,959 | ||||
Pool # 276337, 10.00%, due 08/01/19 | 3,727 | 4,053 | ||||
Pool # 643816, 6.00%, due 07/01/25 | 874,232 | 917,609 | ||||
Pool # 704189, 5.50%, due 01/01/39 | 1,187,273 | 1,228,363 | ||||
Pool # 782604, 5.50%, due 03/01/39 | 1,597,360 | 1,652,643 | ||||
11,063,339 | ||||||
Total Mortgage-Backed Securities | 24,062,423 | |||||
SHORT-TERM INVESTMENTS (6.78%) | ||||||
UNITED STATES GOVERNMENT AGENCIES (4.29%) | ||||||
Federal Home Loan Bank, | 150,000 | 149,995 | ||||
Federal Home Loan Bank, | 500,000 | 499,971 | ||||
Federal Home Loan Mortgage Corp., | 500,000 | 499,991 | ||||
Federal National Mortgage Assoc., | 850,000 | 849,938 | ||||
Total United States Government Agencies | 1,999,895 |
Shares Held | Value | ||||
UNITED STATES TREASURY OBLIGATIONS (1.50%) | |||||
U.S. Treasury Bills, due 07/30/09 | 700,000 | $ | 699,932 | ||
MONEY MARKET MUTUAL FUND (0.99%) | |||||
JPMorgan U.S. Treasury Plus Money Market Fund | 460,598 | 460,598 | |||
Total Short-Term Investments | 3,160,425 | ||||
Total Investments (99.31%) | 46,262,972 | ||||
OTHER ASSETS LESS LIABILITIES (0.69%) | |||||
Cash, receivables, prepaid expense and other assets, less liabilities | 322,753 | ||||
Total Net Assets (100.00%) | $ | 46,585,725 | |||
(1) | Restricted Securities: |
NorthWestern Corp. was purchased at 99.933 on 03/23/09. As of 06/30/09, the carrying value of each unit was 105.147, representing $736,029 or 1.58% of total net assets. |
PNC Preferred FD, was purchased at 100.000 on 11/29/06. As of 06/30/09, the carrying value of each unit was 55.061, representing $825,915 or 1.77% of total net assets. |
As of 06/30/09, the carrying value of all restricted securities was $1,561,944 or 3.35% of total net assets. |
See accompanying notes.
17
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
STRATEGIC YIELD PORTFOLIO
June 30, 2009
(Unaudited)
Shares Held | Value | |||||
PREFERRED STOCKS (1.89%) | ||||||
DEPOSITORY INSTITUTIONS | ||||||
Sovereign Capital Trust V, 7.75% | 32,000 | $ | 680,000 | |||
Principal Amount | ||||||
CORPORATE BONDS (74.94%) | ||||||
APPAREL AND ACCESSORY STORES (3.43%) | ||||||
Woolworth (FW) Corp., | $ | 1,400,000 | 1,232,000 | |||
CHEMICALS AND ALLIED PRODUCTS (4.11%) | ||||||
Lubrizol Corp. (The), | 750,000 | 872,910 | ||||
Nova Chemicals, Corp., | 800,000 | 604,000 | ||||
1,476,910 | ||||||
DEPOSITORY INSTITUTIONS (2.30%) | ||||||
PNC Preferred FD, 144A, | 1,500,000 | 825,915 | ||||
ELECTRIC, GAS AND SANITARY SERVICES (18.02%) | ||||||
Avista Corp., 5.95%, due 06/01/18 | 1,400,000 | 1,424,626 | ||||
Bruce Mansfield Unit 1, | 1,487,000 | 1,368,204 | ||||
Entergy Corp., 6.18%, due 03/01/35 | 1,700,000 | 1,615,085 | ||||
ESI Tractebel Acquisition Corp., | 176,000 | 172,700 | ||||
Sabine Pass LNG, L.P., | 1,000,000 | 815,000 | ||||
South Carolina Electric & Gas Co., | 800,000 | 911,320 | ||||
Waterford 3 Nuclear Power Plant, | 168,590 | 172,735 | ||||
6,479,670 | ||||||
FOOD STORES (3.53%) | ||||||
Safeway Inc., 7.45%, due 09/15/27 | 1,200,000 | 1,269,553 | ||||
FURNITURE AND FIXTURES (3.59%) | ||||||
Steelcase Inc., 6.50%, due 08/15/11 | 1,300,000 | 1,290,380 | ||||
HOLDING AND OTHER INVESTMENT OFFICES (12.92%) | ||||||
First Industrial L.P., | 700,000 | 403,235 | ||||
First Industrial L.P., | 500,000 | 286,110 |
Principal Amount | Value | |||||
Hospitality Properties Trust, | $ | 1,300,000 | $ | 1,195,090 | ||
HRPT Properties Trust, | 1,075,000 | 887,445 | ||||
iStar Financial, Inc.-Series B, | 1,171,000 | 511,786 | ||||
Realty Income Corp., | 1,500,000 | 1,362,180 | ||||
4,645,846 | ||||||
INSURANCE CARRIERS (1.16%) | ||||||
PXRE Capital Trust, | 670,000 | 417,075 | ||||
MOTION PICTURES (2.48%) | ||||||
Time Warner Inc., | 800,000 | 893,184 | ||||
OIL AND GAS EXTRACTION (2.25%) | ||||||
Nabors Industries, Inc., 144A, | 700,000 | 808,521 | ||||
PAPER AND ALLIED PRODUCTS (7.66%) | ||||||
Cascades Inc., 7.25%, due 02/15/13 | 1,000,000 | 877,500 | ||||
International Paper Co., | 1,000,000 | 959,010 | ||||
Potlatch Corp., | 900,000 | 918,000 | ||||
2,754,510 | ||||||
PIPELINES (4.25%) | ||||||
NuStar Logistics, L.P., | 1,600,000 | 1,526,608 | ||||
STONE, CLAY, GLASS AND CONCRETE PRODUCTS (1.62%) | ||||||
Owens Corning, 9.00%, due 06/15/19 | 600,000 | 583,710 | ||||
TRANSPORTATION — BY AIR (2.27%) | ||||||
Continental Airlines, Inc. Pass-Through Certificates 1997-1 Class 1A, 7.461%, due 10/01/16 | 1,031,104 | 816,985 | ||||
WATER TRANSPORTATION (5.35%) | ||||||
Overseas Shipholding Group, Inc., | 1,100,000 | 1,017,654 | ||||
Windsor Petroleum Transportation, 144A, 7.84%, due 01/15/21 (1) | 1,000,000 | 905,690 | ||||
1,923,344 | ||||||
Total Corporate Bonds | 26,944,211 |
18
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
STRATEGIC YIELD PORTFOLIO (continued)
Principal Amount | Value | |||||
MORTGAGE-BACKED SECURITIES (18.21%) | ||||||
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) (11.91%) | ||||||
3023 Class TG, 5.50%, due 08/01/35 | $ | 685,700 | $ | 695,581 | ||
3051 Class MY, 5.50%, due 10/01/25 | 1,000,000 | 1,010,660 | ||||
Pool # A53146, 5.50%, due 10/01/36 | 434,690 | 449,627 | ||||
Pool # A69436, 6.00%, due 12/01/37 | 1,021,391 | 1,065,637 | ||||
Pool # G02648, 5.50%, due 12/01/36 | 1,025,399 | 1,060,637 | ||||
4,282,142 | ||||||
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (6.30%) | ||||||
Pool # 256103, 5.50%, due 02/01/26 | 611,217 | 635,681 | ||||
Pool # 897144, 6.00%, due 09/01/36 | 644,789 | 675,530 | ||||
Pool # 928570, 6.00%, due 08/01/37 | 909,491 | 951,999 | ||||
2,263,210 | ||||||
Total Mortgage-Backed Securities | 6,545,352 | |||||
SHORT-TERM INVESTMENTS (3.34%) | ||||||
UNITED STATES GOVERNMENT AGENCIES (2.50%) | ||||||
Federal Home Loan Bank, due 07/15/09 | 400,000 | 399,977 | ||||
Federal Home Loan Mortgage Corp., due 07/07/09 | 500,000 | 499,991 | ||||
Total United States Government Agencies (Cost $899,968) | 899,968 | |||||
Shares Held | ||||||
MONEY MARKET MUTUAL FUND (0.84%) | ||||||
JPMorgan U.S. Treasury Plus Money Market Fund | 301,483 | 301,483 | ||||
Total Short-Term Investments | 1,201,451 | |||||
Total Investments (98.38%) | 35,371,014 | |||||
OTHER ASSETS LESS LIABILITIES (1.62%) | ||||||
Cash, receivables, prepaid expense and other assets, less liabilities | 581,065 | |||||
Total Net Assets (100.00%) | $ | 35,952,079 | ||||
(1) | Restricted Securities: |
Nabors Industries, Inc., was purchased at 99.998 on 01/07/09. As of 06/30/09, the carrying value of each unit was 115.503, representing $808,521 or 2.25% of total net assets. |
PNC Preferred FD, was purchased at 100.000 on 11/29/06. As of 06/30/09, the carrying value of each unit was 55.061, representing $825,915 or 2.30% of total net assets. |
Windsor Petroleum Transportation was purchased at 80.500 on 08/26/99. As of 06/30/09, the carrying value of each unit was 90.569, representing $905,690 or 2.52% of total net assets. |
As of 06/30/09, the carrying value of all restricted securities was $2,540,126 or 7.07% of total net assets. |
See accompanying notes.
19
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
MANAGED PORTFOLIO
June 30, 2009
(Unaudited)
Shares Held | Value | ||||
COMMON STOCKS (66.27%) | |||||
APPAREL AND ACCESSORY STORES (1.11%) | |||||
Limited Brands, Inc. | 30,900 | $ | 369,873 | ||
Urban Outfitters, Inc. (1) | 19,400 | 404,878 | |||
774,751 | |||||
BUSINESS SERVICES (3.58%) | |||||
Automatic Data Processing, Inc. | 11,300 | 400,472 | |||
eBay Inc. (1) | 8,900 | 152,457 | |||
Microsoft Corp. | 59,400 | 1,411,938 | |||
Oracle Corp. | 24,830 | 531,859 | |||
2,496,726 | |||||
CHEMICALS AND ALLIED PRODUCTS (10.91%) | |||||
Abbott Laboratories | 21,600 | 1,016,064 | |||
Amgen Inc. (1) | 3,900 | 206,466 | |||
Colgate-Palmolive Co. | 7,430 | 525,598 | |||
Dow Chemical Co. (The) | 13,965 | 225,395 | |||
E. I. du Pont de Nemours and Co. | 22,875 | 586,057 | |||
Johnson & Johnson | 26,912 | 1,528,601 | |||
K-V Pharmaceutical Co.-Class A (1) | 12,600 | 40,446 | |||
Mylan Inc. (1) | 35,550 | 463,928 | |||
Pfizer Inc. | 90,184 | 1,352,760 | |||
Procter & Gamble Co. (The) | 13,605 | 695,216 | |||
Schering-Plough Corp. | 15,700 | 394,384 | |||
Teva Pharmaceutical Industries Ltd. | 11,399 | 562,427 | |||
7,597,342 | |||||
COMMUNICATIONS (1.82%) | |||||
AT&T Inc. | 12,600 | 312,984 | |||
Comcast Corp.-Class A | 13,590 | 196,919 | |||
Sprint Nextel Corp. (1) | 25,771 | 123,959 | |||
Verizon Communications Inc. | 20,675 | 635,343 | |||
1,269,205 | |||||
DEPOSITORY INSTITUTIONS (3.02%) | |||||
Bank of America Corp. | 17,202 | 227,066 | |||
Bank of New York Mellon Corp. (The) | 12,108 | 354,885 | |||
Citigroup Inc. | 19,822 | 58,871 | |||
JPMorgan Chase & Co. | 10,400 | 354,744 | |||
New York Community Bancorp, Inc. | 44,834 | 479,275 | |||
Northern Trust Corp. | 6,600 | 354,288 | |||
U.S. Bancorp. | 12,895 | 231,078 | |||
Wells Fargo & Co. | 1,658 | 40,223 | |||
2,100,430 | |||||
ELECTRIC, GAS AND SANITARY SERVICES (4.75%) | |||||
Atmos Energy Corp. | 22,952 | 574,718 | |||
Integrys Energy Group, Inc. | 14,304 | 428,977 | |||
Pepco Holdings, Inc. | 17,790 | 239,098 | |||
Pinnacle West Capital Corp. | 24,200 | 729,630 | |||
Tortoise Energy Capital Corp. | 50,394 | 902,557 | |||
Waste Management, Inc. | 15,400 | 433,664 | |||
3,308,644 |
Shares Held | Value | ||||
ELECTRONIC AND OTHER ELECTRICAL EQUIPMENT (4.34%) | |||||
Cisco Systems, Inc. (1) | 35,830 | $ | 667,871 | ||
Energy Conversion Devices, Inc. (1) | 14,000 | 198,100 | |||
General Electric Co. | 106,965 | 1,253,630 | |||
Helen of Troy Ltd. (1) | 12,334 | 207,088 | |||
Intel Corp. | 42,000 | 695,100 | |||
3,021,789 | |||||
FABRICATED METAL PRODUCTS (0.54%) | |||||
Illinois Tool Works Inc. | 10,155 | 379,187 | |||
FOOD AND KINDRED PRODUCTS (2.87%) | |||||
Coca-Cola Co. (The) | 10,380 | 498,136 | |||
Diageo plc | 7,200 | 412,200 | |||
Kraft Foods Inc. | 15,399 | 390,211 | |||
PepsiCo, Inc. | 12,650 | 695,244 | |||
1,995,791 | |||||
FORESTRY (0.82%) | |||||
Weyerhaeuser Co. | 18,770 | 571,171 | |||
GENERAL MERCHANDISE STORES (1.68%) | |||||
Target Corp. | 4,760 | 187,877 | |||
Wal-Mart Stores, Inc. | 20,290 | 982,848 | |||
1,170,725 | |||||
HOLDING AND OTHER INVESTMENT OFFICES (1.16%) | |||||
H&Q Life Sciences Investors | 20,739 | 179,807 | |||
iShares MSCI Japan Index | 34,030 | 320,903 | |||
Redwood Trust, Inc. | 20,900 | 308,484 | |||
809,194 | |||||
INDUSTRIAL MACHINERY AND EQUIPMENT (3.08%) | |||||
3M Co. | 6,535 | 392,754 | |||
Apple Inc. (1) | 4,400 | 626,692 | |||
EMC Corp. (1) | 36,800 | 482,080 | |||
Hewlett-Packard Co. | 5,460 | 211,029 | |||
Ingersoll-Rand Co. Ltd.-Class A | 20,634 | 431,251 | |||
2,143,806 | |||||
INSTRUMENTS AND RELATED PRODUCTS (0.93%) | |||||
Becton, Dickinson and Co. | 6,235 | 444,618 | |||
Stryker Corp. | 5,140 | 204,264 | |||
648,882 | |||||
INSURANCE AGENTS, BROKERS AND SERVICE (0.53%) | |||||
Arthur J. Gallagher & Co. | 17,455 | 372,489 |
20
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
MANAGED PORTFOLIO (continued)
Shares Held | Value | ||||
COMMON STOCKS (continued) | |||||
INSURANCE CARRIERS (3.26%) | |||||
Allstate Corp. (The) | 7,140 | $ | 174,216 | ||
EMC Insurance Group Inc. | 43,593 | 907,170 | |||
Lincoln National Corp. | 6,630 | 114,102 | |||
MetLife, Inc. | 11,370 | 341,214 | |||
Old Republic International Corp. | 31,100 | 306,335 | |||
Protective Life Corp. | 6,225 | 71,214 | |||
StanCorp Financial Group, Inc. | 12,500 | 358,500 | |||
2,272,751 | |||||
METAL MINING (3.82%) | |||||
Barrick Gold Corp. | 57,916 | 1,943,082 | |||
Newmont Mining Corp. | 17,500 | 715,225 | |||
2,658,307 | |||||
MOTOR FREIGHT TRANSPORTATION AND WAREHOUSING (0.48%) | |||||
United Parcel Service, Inc.-Class B | 6,720 | 335,933 | |||
OIL AND GAS EXTRACTION (5.70%) | |||||
Anadarko Petroleum Corp. | 13,700 | 621,843 | |||
Apache Corp. | 6,700 | 483,405 | |||
Baker Hughes Inc. | 8,700 | 317,028 | |||
Devon Energy Corp. | 6,400 | 348,800 | |||
Occidental Petroleum Corp. | 22,250 | 1,464,273 | |||
Rowan Companies, Inc. | 16,700 | 322,644 | |||
Weatherford International Ltd. (1) | 21,000 | 410,760 | |||
3,968,753 | |||||
PAPER AND ALLIED PRODUCTS (1.13%) | |||||
Kimberly-Clark Corp. | 15,015 | 787,236 | |||
PERSONAL SERVICES (0.32%) | |||||
Cintas Corp. | 9,615 | 219,606 | |||
PETROLEUM AND COAL PRODUCTS (1.92%) | |||||
ConocoPhillips | 17,170 | 722,170 | |||
Exxon Mobil Corp. | 6,100 | 426,451 | |||
Valero Energy Corp. | 11,100 | 187,479 | |||
1,336,100 | |||||
PIPELINES (1.92%) | |||||
Kinder Morgan Management, LLC (1) | 29,595 | 1,336,806 | |||
RETAIL-DRUG AND PROPRIETARY STORES (0.66%) | |||||
Walgreen Co. | 15,560 | 457,464 | |||
RETAIL-JEWELRY STORES (0.44%) | |||||
Tiffany & Co. | 12,200 | 309,392 | |||
RUBBER AND MISCELLANEOUS PLASTICS PRODUCTS (0.49%) | |||||
Tupperware Brands Corp. | 13,100 | 340,862 |
Shares Held | Value | |||||
SECURITY AND COMMODITY BROKERS (0.59%) | ||||||
BGC Partners, Inc., Class A | 108,505 | $ | 411,234 | |||
SERVICES-ENGINEERING, ACCOUNTING, RESEARCH & MANAGEMENT (1.02%) | ||||||
Quest Diagnostics Inc. | 12,600 | 711,018 | ||||
TOBACCO PRODUCTS (0.36%) | ||||||
Philip Morris International Inc. | 5,735 | 250,161 | ||||
TRANSPORTATION EQUIPMENT (2.47%) | ||||||
Federal Signal Corp. | 36,400 | 278,460 | ||||
Genuine Parts Co. | 13,600 | 456,416 | ||||
Honeywell International Inc. | 16,905 | 530,817 | ||||
ITT Corp. | 10,190 | 453,455 | ||||
1,719,148 | ||||||
WHOLESALE TRADE — NONDURABLE GOODS (0.55%) | ||||||
Sysco Corp. | 17,085 | 384,071 | ||||
Total Common Stocks | 46,158,974 | |||||
PUBLICLY TRADED PARTNERSHIPS (2.15%) | ||||||
PIPELINES | ||||||
Buckeye Partners, L.P. | 12,500 | 535,375 | ||||
Enbridge Energy Partners, L.P. | 12,200 | 470,676 | ||||
Magellan Midstream Partners, L.P. | 14,100 | 490,116 | ||||
Total Publicly Traded Partnerships | 1,496,167 | |||||
Principal Amount | ||||||
MORTGAGE-BACKED SECURITIES (28.44%) | ||||||
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) | ||||||
2003-1 Class PE, | $ | 2,250,000 | 2,370,278 | |||
2003-11 Class QC, | 2,500,000 | 2,635,225 | ||||
2003-71 Class AK, | 600,000 | 622,618 | ||||
2003-116 Class JC, | 1,560,000 | 1,624,161 | ||||
2004-22 Class BK, | 158,047 | 159,885 | ||||
2004-26 Class GC, | 1,300,000 | 1,360,986 | ||||
2004-72 Class DE, | 500,000 | 522,772 |
21
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
MANAGED PORTFOLIO (continued)
Principal Amount | Value | |||||
MORTGAGE-BACKED SECURITIES (continued) | ||||||
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) — (continued) | ||||||
2004-76 Class VG, | $ | 700,000 | $ | 724,122 | ||
2004-89 Class KC, | 389,042 | 396,847 | ||||
2004-105 Class PB, | 1,693,200 | 1,779,866 | ||||
2004-105 Class VE, | 2,000,000 | 2,133,394 | ||||
2004-109 Class WE, | 780,000 | 811,237 | ||||
2005-44 Class KC, | 1,500,000 | 1,553,978 | ||||
2005-80 Class VC, | 1,000,000 | 1,042,426 | ||||
2006-38 Class OG, | 1,448,667 | 1,491,482 | ||||
Pool # 2796, 7.00%, due 08/01/29 | 41,816 | 45,547 | ||||
Pool # 3040, 7.00%, due 02/01/31 | 21,873 | 23,836 | ||||
Pool # 3188, 6.50%, due 01/01/32 | 62,930 | 67,575 | ||||
Pool # 3239, 6.50%, due 05/01/32 | 101,062 | 108,521 | ||||
Pool # 3333, 5.50%, due 01/01/33 | 181,942 | 187,942 | ||||
Pool # 3403, 5.50%, due 06/01/33 | 146,834 | 151,676 | ||||
Total Mortgage-Backed Securities | 19,814,374 | |||||
SHORT-TERM INVESTMENTS (3.00%) | ||||||
UNITED STATES GOVERNMENT AGENCIES (2.58%) | ||||||
Federal Home Loan Bank, | 500,000 | 499,981 | ||||
Federal Home Loan Bank, | 800,000 | 799,954 | ||||
Federal Home Loan Mortgage Corp., | 500,000 | 499,975 | ||||
Total United States Government Agencies | 1,799,910 |
Shares Held | Value | ||||
MONEY MARKET MUTUAL FUND (0.42%) | |||||
JPMorgan U.S. Treasury Plus Money Market Fund | 291,756 | $ | 291,756 | ||
Total Short-Term Investments | 2,091,666 | ||||
Total Investments (99.86%) | 69,561,181 | ||||
OTHER ASSETS LESS LIABILITIES (0.14%) | |||||
Cash, receivables, prepaid expense and other assets, less liabilities | 94,155 | ||||
Total Net Assets (100.00%) | $ | 69,655,336 | |||
(1) | Non-income producing securities. |
See accompanying notes.
22
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
MONEY MARKET PORTFOLIO
June 30, 2009
(Unaudited)
Annualized Yield on Purchase Date | Principal Amount | Value | |||||||
SHORT-TERM INVESTMENTS (95.55%) | |||||||||
COMMERCIAL PAPER (6.62%) | |||||||||
NONDEPOSITORY INSTITUTIONS (1.89%) | |||||||||
General Electric Capital Corp., due 08/17/09 | 0.230 | % | $ | 250,000 | $ | 250,000 | |||
PETROLEUM AND COAL PRODUCTS (4.73%) | |||||||||
Chevron Corp., due 07/07/09 | 0.170 | 225,000 | 225,000 | ||||||
Chevron Corp., due 07/17/09 | 0.170 | 200,000 | 200,000 | ||||||
Chevron Corp., due 07/28/09 | 0.170 | 200,000 | 200,000 | ||||||
625,000 | |||||||||
Total Commercial Paper (Cost $875,000) | 875,000 | ||||||||
UNITED STATES GOVERNMENT AGENCIES (74.36%) | |||||||||
Federal Home Loan Bank, due 07/06/09 | 0.183 | 250,000 | 249,994 | ||||||
Federal Home Loan Bank, due 07/08/09 | 0.193 | 200,000 | 199,993 | ||||||
Federal Home Loan Bank, due 07/09/09 | 0.132 | 425,000 | 424,988 | ||||||
Federal Home Loan Bank, due 07/10/09 | 0.085 | 225,000 | 224,995 | ||||||
Federal Home Loan Bank, due 07/15/09 | 0.193 | 350,000 | 349,974 | ||||||
Federal Home Loan Bank, due 07/22/09 | 0.117 | 200,000 | 199,986 | ||||||
Federal Home Loan Bank, due 07/27/09 | 0.132 | 250,000 | 249,977 | ||||||
Federal Home Loan Bank, due 07/29/09 | 0.142 | 225,000 | 224,975 | ||||||
Federal Home Loan Bank, due 07/31/09 | 0.122 | 250,000 | 249,975 | ||||||
Federal Home Loan Bank, due 08/05/09 | 0.152 | 250,000 | 249,964 | ||||||
Federal Home Loan Bank, due 08/14/09 | 0.132 | 250,000 | 249,960 | ||||||
Federal Home Loan Bank, due 09/04/09 | 0.152 | 275,000 | 274,925 | ||||||
Federal Home Loan Bank, due 09/17/09 | 0.172 | 275,000 | 274,899 | ||||||
Federal Home Loan Mortgage Corp., due 07/14/09 | 0.152 | 300,000 | 299,984 | ||||||
Federal Home Loan Mortgage Corp., due 07/16/09 | 0.132 | 300,000 | 299,983 | ||||||
Federal Home Loan Mortgage Corp., due 07/20/09 | 0.183 | 350,000 | 349,967 | ||||||
Federal Home Loan Mortgage Corp., due 07/24/09 | 0.142 | 250,000 | 249,978 | ||||||
Federal Home Loan Mortgage Corp., due 08/07/09 | 0.162 | 275,000 | 274,955 | ||||||
Federal Home Loan Mortgage Corp., due 08/18/09 | 0.132 | 200,000 | 199,965 | ||||||
Federal Home Loan Mortgage Corp., due 08/24/09 | 0.178 | 400,000 | 399,895 | ||||||
Federal Home Loan Mortgage Corp., due 09/02/09 | 0.203 | 200,000 | 199,930 | ||||||
Federal Home Loan Mortgage Corp., due 09/03/09 | 0.203 | 350,000 | 349,875 | ||||||
Federal Home Loan Mortgage Corp., due 09/08/09 | 0.193 | 300,000 | 299,891 | ||||||
Federal Home Loan Mortgage Corp., due 09/14/09 | 0.142 | 200,000 | 199,942 | ||||||
Federal National Mortgage Assoc., due 07/01/09 | 0.223 | 250,000 | 250,000 | ||||||
Federal National Mortgage Assoc., due 07/02/09 | 0.132 | 200,000 | 199,999 | ||||||
Federal National Mortgage Assoc., due 07/13/09 | 0.132 | 300,000 | 299,987 | ||||||
Federal National Mortgage Assoc., due 07/21/09 | 0.162 | 300,000 | 299,973 | ||||||
Federal National Mortgage Assoc., due 08/04/09 | 0.112 | 300,000 | 299,969 | ||||||
Federal National Mortgage Assoc., due 08/10/09 | 0.162 | 400,000 | 399,929 | ||||||
Federal National Mortgage Assoc., due 08/12/09 | 0.142 | 300,000 | 299,951 | ||||||
Federal National Mortgage Assoc., due 08/19/09 | 0.147 | 650,000 | 649,871 | ||||||
Federal National Mortgage Assoc., due 08/21/09 | 0.183 | 325,000 | 324,917 | ||||||
Federal National Mortgage Assoc., due 09/09/09 | 0.142 | 250,000 | 249,932 | ||||||
Total United States Government Agencies (Cost $9,823,498). | 9,823,498 | ||||||||
23
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
MONEY MARKET PORTFOLIO (continued)
Annualized Yield on Purchase Date | Principal Amount | Value | |||||||
SHORT-TERM INVESTMENTS (continued) | |||||||||
UNITED STATES TREASURY OBLIGATIONS (14.57%) | |||||||||
U.S. Treasury Bills, due 07/23/09 | 0.142 | % | $ | 400,000 | $ | 399,966 | |||
U.S. Treasury Bills, due 07/30/09 | 0.142 | 300,000 | 299,966 | ||||||
U.S. Treasury Bills, due 08/06/09 | 0.132 | 350,000 | 349,954 | ||||||
U.S. Treasury Bills, due 08/13/09 | 0.134 | 325,000 | 324,949 | ||||||
U.S. Treasury Bills, due 08/20/09 | 0.147 | 300,000 | 299,940 | ||||||
U.S. Treasury Bills, due 08/27/09 | 0.157 | 250,000 | 249,939 | ||||||
Total United States Treasury Obligations (Cost $1,924,714) | 1,924,714 | ||||||||
Total Short-Term Investments (Cost $12,623,212) | 12,623,212 | ||||||||
OTHER ASSETS LESS LIABILITIES (4.45%) | |||||||||
Cash, receivables, prepaid expense and other assets, less liabilities | 587,959 | ||||||||
Total Net Assets (100.00%) | $ | 13,211,171 | |||||||
See accompanying notes.
24
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
BLUE CHIP PORTFOLIO
June 30, 2009
(Unaudited)
Shares Held | Value | ||||
COMMON STOCKS (95.71%) | |||||
BUSINESS SERVICES (5.62%) | |||||
Microsoft Corp. | 91,883 | $ | 2,184,059 | ||
Oracle Corp. | 57,149 | 1,224,132 | |||
3,408,191 | |||||
CHEMICALS AND ALLIED PRODUCTS (17.85%) | |||||
Abbott Laboratories | 24,755 | 1,164,475 | |||
Amgen Inc. (1) | 17,835 | 944,185 | |||
Bristol-Myers Squibb Co. | 41,053 | 833,786 | |||
Colgate-Palmolive Co. | 6,950 | 491,643 | |||
Dow Chemical Co. (The) | 10,505 | 169,551 | |||
E. I. du Pont de Nemours and Co. | 15,756 | 403,669 | |||
Eli Lilly and Co. | 17,662 | 611,812 | |||
Johnson & Johnson. | 42,710 | 2,425,928 | |||
Merck & Co., Inc. | 31,708 | 886,556 | |||
Pfizer Inc. | 44,377 | 665,655 | |||
Procter & Gamble Co. (The) | 43,542 | 2,224,996 | |||
10,822,256 | |||||
COMMUNICATIONS (4.88%) | |||||
AT&T Inc. | 34,855 | 865,798 | |||
CBS Corp.-Class B | 12,084 | 83,621 | |||
Comcast Corp.-Class A | 33,054 | 478,952 | |||
Time Warner Cable Inc. | 4,141 | 131,145 | |||
Verizon Communications Inc. | 36,562 | 1,123,550 | |||
Viacom Inc.-Class B (1) | 12,084 | 274,307 | |||
2,957,373 | |||||
DEPOSITORY INSTITUTIONS (5.60%) | |||||
Bank of America Corp. | 45,666 | 602,791 | |||
Citigroup Inc. | 48,341 | 143,573 | |||
JPMorgan Chase & Co. | 46,325 | 1,580,146 | |||
Wells Fargo & Co. | 44,074 | 1,069,235 | |||
3,395,745 | |||||
EATING AND DRINKING PLACES (4.21%) | |||||
McDonald’s Corp. | 44,467 | 2,556,408 | |||
ELECTRIC, GAS AND SANITARY SERVICES (3.13%) | |||||
Exelon Corp. | 24,105 | 1,234,417 | |||
Southern Co. (The) | 21,215 | 661,059 | |||
1,895,476 | |||||
ELECTRONIC AND OTHER ELECTRICAL EQUIPMENT (6.40%) | |||||
Cisco Systems, Inc. (1) | 61,023 | 1,137,469 | |||
General Electric Co. | 84,256 | 987,480 | |||
Intel Corp. | 57,041 | 944,029 | |||
Motorola, Inc. | 37,189 | 246,563 | |||
Texas Instruments Inc. | 26,461 | 563,619 | |||
3,879,160 |
Shares Held | Value | ||||
FOOD AND KINDRED PRODUCTS (4.94%) | |||||
Coca-Cola Co. (The) | 31,034 | $ | 1,489,322 | ||
Kraft Foods Inc. | 26,424 | 669,584 | |||
PepsiCo, Inc. | 15,208 | 835,832 | |||
2,994,738 | |||||
FORESTRY (0.31%) | |||||
Weyerhaeuser Co. | 6,270 | 190,796 | |||
GENERAL MERCHANDISE STORES (4.11%) | |||||
Target Corp. | 11,900 | 469,693 | |||
Wal-Mart Stores, Inc. | 41,773 | 2,023,484 | |||
2,493,177 | |||||
INDUSTRIAL MACHINERY AND EQUIPMENT (10.26%) | |||||
3M Co. | 17,453 | 1,048,925 | |||
Applied Materials, Inc. | 23,520 | 258,014 | |||
Caterpillar Inc. | 28,044 | 926,574 | |||
Dell Inc. (1) | 30,585 | 419,932 | |||
EMC Corp. (1) | 37,308 | 488,735 | |||
Hewlett-Packard Co. | 40,454 | 1,563,547 | |||
International Business Machines Corp. | 14,526 | 1,516,805 | |||
6,222,532 | |||||
MOTION PICTURES (2.07%) | |||||
Time Warner Inc. | 16,497 | 415,559 | |||
Walt Disney Co. (The) | 36,092 | 842,026 | |||
1,257,585 | |||||
NON-DEPOSITORY CREDIT INSTITUTIONS (2.10%) | |||||
American Express Co. | 54,692 | 1,271,042 | |||
PETROLEUM AND COAL PRODUCTS (12.28%) | |||||
Chevron Corp. | 38,610 | 2,557,913 | |||
Exxon Mobil Corp. | 69,936 | 4,889,226 | |||
7,447,139 | |||||
PRIMARY METAL INDUSTRIES (0.52%) | |||||
Alcoa Inc. | 30,278 | 312,772 | |||
SECURITY AND COMMODITY BROKERS (0.41%) | |||||
Ameriprise Financial, Inc. | 10,349 | 251,170 | |||
TOBACCO PRODUCTS (3.78%) | |||||
Altria Group, Inc. | 38,185 | 625,852 | |||
Philip Morris International Inc. | 38,185 | 1,665,630 | |||
2,291,482 | |||||
TRANSPORTATION EQUIPMENT (7.24%) | |||||
Boeing Co. (The) | 26,912 | 1,143,760 | |||
Honeywell International Inc. | 37,254 | 1,169,776 | |||
United Technologies Corp. | 40,007 | 2,078,764 | |||
4,392,300 | |||||
25
EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
BLUE CHIP PORTFOLIO (continued)
Shares Held | Value | |||||
COMMON STOCKS (continued) | ||||||
Total Common Stocks | $ | 58,039,342 | ||||
SHORT-TERM INVESTMENTS (4.28%) | ||||||
MONEY MARKET MUTUAL FUND (0.32%) | ||||||
JPMorgan U.S. Treasury Plus Money Market Fund | 192,300 | 192,300 | ||||
Principal Amount | ||||||
UNITED STATES GOVERNMENT AGENCIES (2.64%) | ||||||
Federal Home Loan Bank, | $ | 400,000 | 399,964 | |||
Federal Home Loan Mortgage Corp., | 800,000 | 799,968 | ||||
Federal National Mortgage Assoc., | 400,000 | 400,000 | ||||
Total United States Government Agencies | 1,599,932 | |||||
UNITED STATES TREASURY OBLIGATIONS (1.32%) | ||||||
U.S. Treasury Bills, | 800,000 | 799,923 | ||||
Total Short-Term Investments | 2,592,155 | |||||
Total Investments (99.99%) | 60,631,497 | |||||
OTHER ASSETS LESS LIABILITIES (0.01%) | ||||||
Cash, receivables, prepaid expense and other assets, less liabilities | 9,064 | |||||
Total Net Assets (100.00%) | $ | 60,640,561 | ||||
(1) | Non-income producing securities. |
See accompanying notes.
26
EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS
June 30, 2009
(Unaudited)
1. | Significant Accounting Policies |
Organization
EquiTrust Variable Insurance Series Fund (the “Fund”) is registered under the Investment Company Act of 1940, as amended, as a no-load, open-end diversified management investment company, or mutual fund. The Fund is authorized to issue an unlimited number of shares of beneficial interest with no par value. The Fund currently consists of six portfolios (known as the Value Growth, High Grade Bond, Strategic Yield, Managed, Money Market and Blue Chip Portfolios). The Fund offers Initial Class (IC) and Service Class (SC) shares. The Fund began offering SC shares on June 1, 2008. Shares of the Fund are sold only to certain life insurance companies’ separate accounts to fund the benefits under variable insurance contracts issued by such life insurance companies, including Farm Bureau Life Insurance Company and EquiTrust Life Insurance Company (see Note 3).
SC shares are charged distribution fees while IC shares are not. The shares of each Portfolio have equal rights and privileges with all other shares of that Portfolio, except SC shares have separate and exclusive voting rights with respect to the Fund’s Rule 12b-1 Plan. Each share of a Portfolio represents an equal proportionate interest in that Portfolio with each other share, subject to any preferences (such as resulting from Rule 12b-1 distribution fees with respect to the SC shares). In addition, the Board of Trustees of the Fund declares separate dividends on each class of shares.
The Fund allocates daily all income, expenses (other than distribution fees which are only charged to SC shares), and realized and unrealized gains or losses to each class of shares based upon the relative proportion of the value of shares outstanding of each class. Expenses not directly attributed to a Portfolio are apportioned among each of the Portfolios based upon the relative value of each Portfolio. Expenses specifically attributable to a particular class are charged directly to such class.
Security Valuation
All Portfolios, other than the Money Market Portfolio, value their investment securities that are traded on any national exchange at the last sale price on the day of valuation or, lacking any sales, at the mean between the closing bid and asked prices. Investments traded in the over-the-counter market are valued at the mean between the bid and asked prices or yield equivalent. In situations where market quotations are not readily available or quoted market prices are not reliable, investments are valued at fair value in accordance with the procedures adopted by the Fund’s Board of Trustees. Short-term investments are valued at market value, except that obligations maturing in one year or less are valued using the amortized cost method of valuation described below with respect to the Money Market Portfolio, which approximates market value.
The Money Market Portfolio values investments at amortized cost, which approximates market value. Under the amortized cost method, a security is valued at its cost on the date of purchase and thereafter is adjusted to reflect a constant amortization to maturity of the difference between the principal amount due at maturity and the cost of the investment to the Portfolio.
Income and Investment Transactions
For financial reporting purposes, investment transactions are recorded on the trade date. The identified cost basis has been used in determining the net realized gain or loss from investment transactions and unrealized appreciation or depreciation on investments. Dividend income is recorded on the ex-dividend date and interest is recognized on an accrual basis. Discounts and premiums on investments purchased are amortized over the life of the respective investments.
27
EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS (continued)
1. | Significant Accounting Policies (continued) |
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 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.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
Under the Fund’s organizational documents, its present and past officers and trustees are indemnified against certain liability arising out of the performance of their duties to the Fund. At the discretion of the Board of Trustees, employees and agents may also be indemnified. In addition, in the normal course of business the Fund enters into contracts that contain a variety of representations and warranties which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred.
New Accounting Pronouncements
In May 2009, the Financial Accounting Standards Board (FASB) issued Statement on Financial Accounting Standards No. 165 “Subsequent Events.” This standard establishes principles and requirements for potential recognition and disclosure of events or transactions that occur after the balance sheet date. The Fund is not aware of any transactions or events, which occurred after the balance sheet date and before the financial statements were issued, August 26, 2009, which would require recognition or disclosure.
2. | Federal Income Taxes |
No provision for federal income taxes is considered necessary because the Fund is qualified as a “regulated investment company” under Subchapter M of the Internal Revenue Code and intends to distribute each year substantially all of its net investment income and realized capital gains to shareholders. As of June 30, 2009, the Fund is not aware of any uncertain tax positions. The Fund is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for tax tears prior to 2006.
28
EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS (continued)
2. | Federal Income Taxes (continued) |
As of June 30, 2009, the following Portfolios had approximate net capital loss carryforwards set forth below:
Portfolio | |||||||||||||||
Net Capital Loss Carryforwards Expire In: | Value Growth | High Grade Bond | Strategic Yield | Managed | Blue Chip | ||||||||||
2010 | $ | — | $ | — | $ | 1,495,000 | $ | — | $ | — | |||||
2011 | — | — | 571,000 | — | 3,950,000 | ||||||||||
2012 | — | — | — | — | 556,000 | ||||||||||
2013 | — | — | — | — | 60,000 | ||||||||||
2016 | 1,382,000 | — | 1,000 | 96,000 | 1,902,000 | ||||||||||
2017 | 2,787,000 | 31,000 | 1,939,000 | 2,991,000 | 790,000 | ||||||||||
$ | 4,169,000 | $ | 31,000 | $ | 4,006,000 | $ | 3,087,000 | $ | 7,258,000 | ||||||
For the period ended June 30, 2009, none of the Portfolios utilized capital loss carryovers.
The tax character of distributions for the years indicated were as follows:
Period ended June 30, 2009 | Year Ended December 31, 2008 | |||||||||||
Portfolio | Ordinary Income | Long-Term Capital Gains | Ordinary Income | Long-Term Capital Gains | ||||||||
Value Growth | $ | 953,656 | $ | — | $ | 1,619,864 | $ | 2,618,689 | ||||
High Grade Bond | 1,112,780 | 157,550 | 2,306,210 | 19,907 | ||||||||
Strategic Yield | 1,165,413 | — | 2,679,829 | — | ||||||||
Managed | 2,336,485 | — | 3,407,968 | 3,312,665 | ||||||||
Money Market | 9,541 | — | 304,445 | — | ||||||||
Blue Chip | 1,951,148 | — | 1,916,168 | — |
The Fund designates long-term capital gain dividends per Internal Revenue Code Section 852(b)(3)(C). Distributions of short-term capital gain are treated as ordinary income distributions for tax purposes.
As of June 30, 2009, the components of accumulated earnings (deficit) and capital gains (losses) on a tax basis were identical to those reported in the statements of assets and liabilities, except as follows:
Portfolio | ||||||||||||
Value Growth | Strategic Yield | Managed | ||||||||||
Undistributed ordinary income | $ | 387,725 | $ | 7,750 | $ | 987,400 | ||||||
Accumulated capital losses | (4,169,688 | ) | (4,006,625 | ) | (3,087,169 | ) | ||||||
Net unrealized appreciation of investments | (8,868,421 | ) | (3,328,433 | ) | (7,311,890 | ) | ||||||
Other timing differences | — | (7,750 | ) | — | ||||||||
Total accumulated earnings | $ | (12,650,384 | ) | $ | (7,335,058 | ) | $ | (9,411,659 | ) | |||
Differences between book and tax amounts are primarily attributable to taxable spin-offs, mergers and corporate inversions.
29
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 agreements with EquiTrust Investment whereby EquiTrust Investment also serves as the Fund’s shareholder service, transfer and dividend disbursing agent. EquiTrust Marketing Services, LLC serves as the principal underwriter and distributor. Pursuant to these agreements, SC pays a 12b-1 distribution fee at an annual rate of 0.25% of the average daily net asset value attributable to the class of shares. There are no other fees paid by the Fund associated with these services.
EquiTrust Investment has agreed to reimburse the Portfolios annually for total expenses (excluding brokerage, interest, taxes and extraordinary expenses) in excess of 1.50% of each Portfolio’s average daily net assets. The amount reimbursed, however, shall not exceed the amount of the investment advisory and management fee paid by the Portfolio for such period. During the period ended June 30, 2009, EquiTrust Investment further agreed to reimburse any IC Portfolio, to the extent that annual operating expenses, including the investment advisory fee, exceed 0.65%. For the period ended June 30, 2009, no excess expense reimbursements were made to the Fund by EquiTrust Investment.
During the period ended June 30, 2009, EquiTrust Investment voluntarily waived and reimbursed various Portfolio and class level expenses in the Money Market IC and SC Portfolios. These voluntary waivers and reimbursements may be revoked at any time. For the period ended June 30, 2009, the voluntary waiver and reimbursement amounts were as follows:
Money Market Portfolio | ||||||
Fees | IC | SC | ||||
Management Fees | $ | 16,611 | $ | 479 | ||
Distribution Fees | — | 467 | ||||
Accounting Fees | 2,091 | 73 | ||||
Custodial Fees | 1,549 | 56 | ||||
Miscellaneous Expenses | 1,235 | 48 |
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, 2009, the total number of the shares of each Portfolio owned by Farm Bureau Life Insurance Company, EquiTrust Life Insurance Company and related separate accounts were as follows:
IC Portfolio | Shares | |
Value Growth | 4,362,400 | |
High Grade Bond | 3,800,181 | |
Strategic Yield | 3,684,404 | |
Managed | 5,500,263 | |
Money Market | 10,158,244 | |
Blue Chip | 2,100,190 |
30
EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS (continued)
3. | Management Contract and Transactions with Affiliates (continued) |
SC Portfolio | Shares | |
Value Growth | 24,662 | |
High Grade Bond | 403,753 | |
Strategic Yield | 52,715 | |
Managed | 69,137 | |
Money Market | 205,482 | |
Blue Chip | 48,833 |
4. | Fair Value |
Various inputs are used in determining the value of the Portfolio’s investments. These inputs are summarized in three broad levels listed below:
• | Level 1 — Quoted prices in active markets for identical securities on the measurement date |
• | Level 2 — Other significant observable inputs (including quoted prices in active markets for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
• | Level 3 — Significant unobservable inputs (including the Portfolio’s own assumptions in determining the fair value of the investments) |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, money market securities are valued using amortized cost, in accordance with rules under the Investment Company Act of 1940. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.
At January 1, 2009 and June 30, 2009, there were no valuation inputs classified as level 3.
The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2009:
Investments in Securities | ||||||||||||||||||
Valuation Inputs | Value Growth Portfolio | High Grade Bond Portfolio | Strategic Yield Portfolio | Managed Portfolio | Money Market Portfolio | Blue Chip Portfolio | ||||||||||||
Level 1—Quoted Prices: | ||||||||||||||||||
Equities | $ | 43,444,521 | $ | 460,598 | $ | 981,483 | $ | 47,946,897 | $ | — | $ | 58,231,642 | ||||||
Level 2—Other Significant | ||||||||||||||||||
Observable Inputs: | ||||||||||||||||||
Debt securities issued by US government agencies | 999,964 | 2,699,827 | 899,968 | 1,799,910 | 11,748,212 | 2,399,855 | ||||||||||||
Corporate debt securities | — | 18,212,293 | 26,944,211 | — | 875,000 | — | ||||||||||||
Residential mortgage-backed securities | — | 24,062,423 | 6,545,352 | 19,814,374 | — | — | ||||||||||||
Commercial mortgage-backed securities | — | 827,831 | — | — | — | — | ||||||||||||
Level 3—Significant Unobservable Inputs | — | — | — | — | — | — | ||||||||||||
Total | $ | 44,444,485 | $ | 46,262,972 | $ | 35,371,014 | $ | 69,561,181 | $ | 12,623,212 | $ | 60,631,497 | ||||||
31
EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS (continued)
5. | Expense Offset Arrangements |
The Fund and other mutual funds managed by EquiTrust Investment have an agreement with the custodian banks to indirectly pay a portion of the custodians’ fees through credits earned by the Funds’ cash on deposit with the bank. This deposit agreement is an alternative to overnight investments. Custodial fees have been adjusted to reflect amounts that would have been paid without this agreement, with a corresponding adjustment reflected as fees paid indirectly in the statements of operations.
6. | 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 | ||||||||||||||
Period ended June 30, 2009: | ||||||||||||||||||||||
Value Growth IC | 97,798 | $ | 902,538 | 112,756 | $ | 952,784 | 289,245 | $ | 2,676,526 | (78,691 | ) | $ | (821,204 | ) | ||||||||
Value Growth SC | 17,952 | 165,898 | 99 | 855 | 10,006 | 96,057 | 8,045 | 70,696 | ||||||||||||||
High Grade Bond IC | 468,556 | 4,441,154 | 124,423 | 1,177,670 | 579,923 | 5,484,342 | 13,056 | 134,482 | ||||||||||||||
High Grade Bond SC | 213,477 | 2,023,466 | 9,765 | 92,527 | 113,130 | 1,077,172 | 110,112 | 1,038,821 | ||||||||||||||
Strategic Yield IC | 89,497 | 656,051 | 155,656 | 1,155,786 | 707,986 | 5,324,605 | (462,833 | ) | (3,512,768 | ) | ||||||||||||
Strategic Yield SC | 34,951 | 259,565 | 1,267 | 9,489 | 15,144 | 113,799 | 21,074 | 155,255 | ||||||||||||||
Managed IC | 60,929 | 682,518 | 222,792 | 2,332,629 | 373,686 | 4,168,323 | (89,965 | ) | (1,153,176 | ) | ||||||||||||
Managed SC | 26,982 | 300,578 | 356 | 3,836 | 17,621 | 210,708 | 9,717 | 93,706 | ||||||||||||||
Money Market IC | 5,013,659 | 5,013,659 | 8,471 | 8,471 | 6,836,557 | 6,836,557 | (1,814,427 | ) | (1,814,427 | ) | ||||||||||||
Money Market SC | 2,167,540 | 2,167,540 | 218 | 218 | 1,970,691 | 1,970,691 | 197,067 | 197,067 | ||||||||||||||
Blue Chip IC | 72,898 | 1,852,780 | 83,105 | 1,945,486 | 127,976 | 3,284,717 | 28,027 | 513,549 | ||||||||||||||
Blue Chip SC | 27,457 | 729,931 | 234 | 5,639 | 3,916 | 101,821 | 23,775 | 633,749 | ||||||||||||||
Year ended December 31, 2008: | ||||||||||||||||||||||
Value Growth IC | 224,215 | $ | 2,803,884 | 319,650 | $ | 4,238,553 | 500,351 | $ | 6,070,197 | 43,514 | $ | 972,240 | ||||||||||
Value Growth SC | 17,255 | 196,425 | — | — | 638 | 7,008 | 16,617 | 189,417 | ||||||||||||||
High Grade Bond IC | 522,199 | 5,182,828 | 235,136 | 2,287,353 | 911,310 | 8,753,835 | (153,975 | ) | (1,283,654 | ) | ||||||||||||
High Grade Bond SC | 331,619 | 3,163,028 | 4,114 | 38,626 | 40,225 | 383,565 | 295,508 | 2,818,089 | ||||||||||||||
Strategic Yield IC | 499,480 | 4,281,839 | 324,019 | 2,675,714 | 1,017,174 | 8,377,138 | (193,675 | ) | (1,419,585 | ) | ||||||||||||
Strategic Yield SC | 32,472 | 259,198 | 517 | 3,940 | 1,300 | 10,368 | 31,689 | 252,770 | ||||||||||||||
Managed IC | 216,726 | 3,069,388 | 462,853 | 6,720,633 | 770,904 | 10,584,433 | (91,325 | ) | (794,412 | ) | ||||||||||||
Managed SC | 63,223 | 793,850 | — | — | 3,684 | 50,227 | 59,539 | 743,623 | ||||||||||||||
Money Market IC | 28,454,476 | 28,454,476 | 280,319 | 280,319 | 30,567,209 | 30,567,209 | (1,832,414 | ) | (1,832,414 | ) | ||||||||||||
Money Market SC | 397,179 | 397,179 | 381 | 381 | 200,469 | 200,469 | 197,091 | 197,091 | ||||||||||||||
Blue Chip IC | 109,673 | 3,962,079 | 49,488 | 1,916,168 | 244,168 | 8,648,468 | (85,007 | ) | (2,770,221 | ) | ||||||||||||
Blue Chip SC | 27,401 | 906,330 | — | — | 2,343 | 79,190 | 25,058 | 827,140 |
32
EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS (continued)
7. | Investment Transactions |
For the period ended June 30, 2009, 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 | $ | 7,073,598 | $ | 7,327,116 | ||
High Grade Bond | 5,479,716 | 2,315,652 | ||||
Strategic Yield | 2,034,722 | 2,619,263 | ||||
Managed | 3,655,795 | 5,470,708 | ||||
Blue Chip | — | 10,778 |
The basis of the Fund’s investments in securities and the net unrealized depreciation of investments for U.S. federal income tax purposes as of June 30, 2009, by Portfolio, was composed of the following:
Portfolio | Tax Cost of Investments in Securities | Gross Unrealized | Net Unrealized Depreciation of Investments | ||||||||||
Appreciation | Depreciation | ||||||||||||
Value Growth | $ | 53,312,906 | $ | 3,690,521 | $ | 12,558,942 | $ | (8,868,421 | ) | ||||
High Grade Bond | 48,215,775 | 1,470,256 | 3,423,059 | (1,952,803 | ) | ||||||||
Strategic Yield | 38,699,447 | 721,508 | 4,049,941 | (3,328,433 | ) | ||||||||
Managed | 76,873,071 | 6,276,449 | 13,588,339 | (7,311,890 | ) | ||||||||
Blue Chip | 61,664,407 | 15,437,138 | 16,470,048 | (1,032,910 | ) |
The basis for U.S. federal income tax purposes and financial reporting purposes for investments in the Money Market Portfolio is the same and is equal to the underlying investments’ carrying value.
8. | 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 | ||||||||||||||||||
High Grade Bond | Strategic Yield | Money Market | ||||||||||||||||
Payable Date | IC | SC | IC | SC | IC | SC | ||||||||||||
January 30, 2009 | $ | 0.0379 | $ | 0.0360 | $ | 0.0435 | $ | 0.0420 | $ | 0.0002 | $ | 0.0001 | ||||||
February 27, 2009 | 0.0410 | 0.0392 | 0.0513 | 0.0499 | 0.0001 | 0.0001 | ||||||||||||
March 31, 2009 | 0.0402 | 0.0381 | 0.0406 | 0.0391 | 0.0001 | 0.0001 | ||||||||||||
April 30, 2009 | 0.0392 | 0.0373 | 0.0217 | 0.0205 | 0.0001 | 0.0001 | ||||||||||||
May 29, 2009 | 0.0373 | 0.0354 | 0.0426 | 0.0412 | 0.0001 | 0.0001 | ||||||||||||
June 30, 2009 | 0.0432 | 0.0411 | 0.0460 | 0.0443 | 0.0001 | 0.0001 | ||||||||||||
Total dividends per share | $ | 0.2388 | $ | 0.2271 | $ | 0.2457 | $ | 0.2370 | $ | 0.0007 | $ | 0.0006 | ||||||
33
EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS (continued)
8. | Dividends and Distributions to Shareholders (continued) |
In addition, dividends and distributions to shareholders from net investment income and net realized gain on investment transactions were paid during the period ended June 30, 2009 for the following Portfolios:
Ordinary Income Dividends:
Declaration Date | Record Date | Payable Date | Amount Per Share | |||||||||
Portfolio | IC | SC | ||||||||||
Value Growth | 2/24/09 | 2/24/09 | 2/25/09 | $ | 0.2114 | $ | 0.0481 | |||||
Managed | 2/24/09 | 2/24/09 | 2/25/09 | 0.3980 | 0.0614 | |||||||
Blue Chip | 2/24/09 | 2/24/09 | 2/25/09 | 0.9133 | 0.1832 |
Long-Term Capital Gains Distributions:
Declaration Date | Record Date | Payable Date | Amount Per Share | |||||||||
Portfolio | IC | SC | ||||||||||
High Grade Bond | 2/24/09 | 2/24/09 | 2/25/09 | $ | 0.0340 | $ | 0.0340 |
Short-Term Capital Gains Distributions:
Declaration Date | Record Date | Payable Date | Amount Per Share | |||||||||
Portfolio | IC | SC | ||||||||||
High Grade Bond | 2/24/09 | 2/24/09 | 2/25/09 | $ | 0.00002 | $ | 0.00002 |
34
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35
EQUITRUST VARIABLE INSURANCE SERIES FUND
FINANCIAL HIGHLIGHTS
Period ended June 30, 2009 (Unaudited) and
Years ended December 31, 2008, 2007, 2006, 2005 and 2004
Net Asset Value at Beginning of Period | Income from Investment Operations | Less Distributions | ||||||||||||||||||||||||
Net Invest- ment Income | Net Realized and Unrealized Gain (Loss) on Investments | Total from Investment Operations | Dividends from Net Investment Income | Distributions from Capital Gains | Total Distributions | |||||||||||||||||||||
Value Growth Portfolio | ||||||||||||||||||||||||||
Initial Class: | ||||||||||||||||||||||||||
2009 | $ | 9.80 | $ | 0.09 | $ | 0.16 | $ | 0.25 | $ | (0.21 | ) | $ | — | $ | (0.21 | ) | ||||||||||
2008 | 15.06 | 0.21 | (4.53 | ) | (4.32 | ) | (0.33 | ) | (0.61 | ) | (0.94 | ) | ||||||||||||||
2007 | 15.09 | 0.33 | 0.43 | 0.76 | (0.27 | ) | (0.52 | ) | (0.79 | ) | ||||||||||||||||
2006 | 13.65 | 0.27 | 1.36 | 1.63 | (0.19 | ) | — | (0.19 | ) | |||||||||||||||||
2005 | 12.98 | 0.19 | 0.63 | 0.82 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||
2004 | 11.76 | 0.15 | 1.20 | 1.35 | (0.13 | ) | — | (0.13 | ) | |||||||||||||||||
Service Class: | ||||||||||||||||||||||||||
2009 | $ | 9.79 | $ | 0.06 | $ | 0.20 | $ | 0.26 | $ | (0.05 | ) | $ | — | $ | (0.05 | ) | ||||||||||
2008 (3) | 13.97 | 0.05 | (4.23 | ) | (4.18 | ) | — | — | — | |||||||||||||||||
High Grade Bond Portfolio | ||||||||||||||||||||||||||
Initial Class: | ||||||||||||||||||||||||||
2009 | $ | 9.47 | $ | 0.24 | $ | 0.24 | $ | 0.48 | $ | (0.24 | ) | $ | (0.03 | ) | $ | (0.27 | ) | |||||||||
2008 | 10.12 | 0.49 | (0.65 | ) | (0.16 | ) | (0.49 | ) | — | (0.49 | ) | |||||||||||||||
2007 | 10.12 | 0.53 | 0.01 | 0.54 | (0.53 | ) | (0.01 | ) | (0.54 | ) | ||||||||||||||||
2006 | 10.16 | 0.51 | (0.04 | ) | 0.47 | (0.51 | ) | — | (0.51 | ) | ||||||||||||||||
2005 | 10.38 | 0.47 | (0.20 | ) | 0.27 | (0.47 | ) | (0.02 | ) | (0.49 | ) | |||||||||||||||
2004 | 10.42 | 0.45 | — | 0.45 | (0.45 | ) | (0.04 | ) | (0.49 | ) | ||||||||||||||||
Service Class: | ||||||||||||||||||||||||||
2009 | $ | 9.47 | $ | 0.23 | $ | 0.24 | $ | 0.47 | $ | (0.23 | ) | $ | (0.03 | ) | $ | (0.26 | ) | |||||||||
2008 (3) | 9.87 | 0.27 | (0.40 | ) | (0.13 | ) | (0.27 | ) | — | (0.27 | ) | |||||||||||||||
Strategic Yield Portfolio | ||||||||||||||||||||||||||
Initial Class: | ||||||||||||||||||||||||||
2009 | $ | 7.46 | $ | 0.25 | $ | 0.60 | $ | 0.85 | $ | (0.25 | ) | $ | — | $ | (0.25 | ) | ||||||||||
2008 | 8.94 | 0.53 | (1.48 | ) | (0.95 | ) | (0.53 | ) | — | (0.53 | ) | |||||||||||||||
2007 | 9.19 | 0.57 | (0.25 | ) | 0.32 | (0.57 | ) | — | (0.57 | ) | ||||||||||||||||
2006 | 9.14 | 0.55 | 0.05 | 0.60 | (0.55 | ) | — | (0.55 | ) | |||||||||||||||||
2005 | 9.37 | 0.53 | (0.23 | ) | 0.30 | (0.53 | ) | — | (0.53 | ) | ||||||||||||||||
2004 | 9.13 | 0.55 | 0.24 | 0.79 | (0.55 | ) | — | (0.55 | ) | |||||||||||||||||
Service Class: | ||||||||||||||||||||||||||
2009 | $ | 7.46 | $ | 0.24 | $ | 0.60 | $ | 0.84 | $ | (0.24 | ) | $ | — | $ | (0.24 | ) | ||||||||||
2008 (3) | 8.60 | 0.30 | (1.14 | ) | (0.84 | ) | (0.30 | ) | — | (0.30 | ) |
See accompanying notes.
36
Net Asset | Total Investment Return Based on Net Asset Value (1) | Ratios/Supplemental Data | |||||||||||||||||
Net Assets at End of Period (in thousands) | Ratio of Total Expenses to Average Net Assets (4) | Ratio of Net Expenses to Average Net Assets (4) | Ratio of Net Investment Income to Average Net Assets (4) | Portfolio Turnover Rate | |||||||||||||||
$ | 9.84 | 2.92 | % | $ | 43,996 | 0.60 | % | 0.60 | % | 1.85 | % | 18 | % | ||||||
9.80 | (30.31 | )% | 44,595 | 0.58 | % | 0.58 | % | 1.62 | % | 24 | % | ||||||||
15.06 | 5.27 | % | 67,870 | 0.55 | % | 0.55 | % | 2.20 | % | 17 | % | ||||||||
15.09 | 12.07 | % | 65,712 | 0.58 | % | 0.58 | % | 1.88 | % | 30 | % | ||||||||
13.65 | 6.41 | % | 60,223 | 0.58 | % | 0.58 | % | 1.42 | % | 18 | % | ||||||||
12.98 | 11.53 | % | 58,354 | 0.58 | % | 0.58 | % | 1.22 | % | 17 | % | ||||||||
$ | 10.00 | 2.72 | % | $ | 247 | 0.85 | % | 0.85 | % | 1.57 | % | 18 | % | ||||||
9.79 | (29.92 | )% | 163 | 0.84 | % | 0.84 | % | 1.70 | % | 24 | % | ||||||||
$ | 9.68 | 5.20 | % | $ | 42,658 | 0.44 | % | 0.44 | % | 5.08 | % | 14 | % | ||||||
9.47 | (1.60 | )% | 41,603 | 0.43 | % | 0.43 | % | 5.00 | % | 17 | % | ||||||||
10.12 | 5.48 | % | 46,039 | 0.42 | % | 0.42 | % | 5.30 | % | 11 | % | ||||||||
10.12 | 4.78 | % | 39,371 | 0.44 | % | 0.44 | % | 5.08 | % | 17 | % | ||||||||
10.16 | 2.65 | % | 34,946 | 0.45 | % | 0.45 | % | 4.63 | % | 12 | % | ||||||||
10.38 | 4.30 | % | 29,980 | 0.45 | % | 0.45 | % | 4.34 | % | 26 | % | ||||||||
$ | 9.68 | 5.07 | % | $ | 3,928 | 0.69 | % | 0.69 | % | 4.83 | % | 14 | % | ||||||
9.47 | (1.30 | )% | 2,799 | 0.68 | % | 0.68 | % | 4.87 | % | 17 | % | ||||||||
$ | 8.06 | 11.67 | % | $ | 35,527 | 0.60 | % | 0.60 | % | 6.70 | % | 6 | % | ||||||
7.46 | (11.08 | )% | 36,345 | 0.58 | % | 0.58 | % | 6.28 | % | 11 | % | ||||||||
8.94 | 3.56 | % | 45,247 | 0.57 | % | 0.57 | % | 6.26 | % | 17 | % | ||||||||
9.19 | 6.79 | % | 41,481 | 0.58 | % | 0.58 | % | 6.04 | % | 16 | % | ||||||||
9.14 | 3.26 | % | 37,067 | 0.59 | % | 0.59 | % | 5.71 | % | 1 | % | ||||||||
9.37 | 8.94 | % | 30,637 | 0.59 | % | 0.59 | % | 5.98 | % | 34 | % | ||||||||
$ | 8.06 | 11.53 | % | $ | 425 | 0.85 | % | 0.85 | % | 6.35 | % | 6 | % | ||||||
7.46 | (9.90 | )% | 237 | 0.84 | % | 0.84 | % | 6.73 | % | 11 | % |
37
EQUITRUST VARIABLE INSURANCE SERIES FUND
FINANCIAL HIGHLIGHTS (continued)
Period ended June 30, 2009 (Unaudited) and
Years ended December 31, 2008, 2007, 2006, 2005 and 2004
Net Asset Value at Beginning of Period | Income from Investment Operations | Less Distributions | |||||||||||||||||||||||||
Net Invest- ment Income | Net Realized and Unrealized Gain (Loss) on Investments | Total from Investment Operations | Dividends from Net Investment Income | Distributions from Capital Gains | Total Distributions | ||||||||||||||||||||||
Managed Portfolio | |||||||||||||||||||||||||||
Initial Class: | |||||||||||||||||||||||||||
2009 | $ | 11.93 | $ | 0.17 | $ | 0.03 | $ | 0.20 | $ | (0.40 | ) | $ | — | $ | (0.40 | ) | |||||||||||
2008 | 16.05 | 0.40 | (3.40 | ) | (3.00 | ) | (0.56 | ) | (0.56 | ) | (1.12 | ) | |||||||||||||||
2007 | 16.32 | 0.56 | 0.33 | 0.89 | (0.46 | ) | (0.70 | ) | (1.16 | ) | |||||||||||||||||
2006 | 15.80 | 0.49 | 1.28 | 1.77 | (0.37 | ) | (0.88 | ) | (1.25 | ) | |||||||||||||||||
2005 | 15.67 | 0.35 | 0.32 | 0.67 | (0.27 | ) | (0.27 | ) | (0.54 | ) | |||||||||||||||||
2004 | 14.73 | 0.27 | 0.97 | 1.24 | (0.30 | ) | — | (0.30 | ) | ||||||||||||||||||
Service Class: | |||||||||||||||||||||||||||
2009 | $ | 11.91 | $ | 0.15 | $ | 0.07 | $ | 0.22 | $ | (0.06 | ) | $ | — | $ | (0.06 | ) | |||||||||||
2008 (3) | 14.99 | 0.06 | (3.14 | ) | (3.08 | ) | — | — | — | ||||||||||||||||||
Money Market Portfolio | |||||||||||||||||||||||||||
Initial Class: | |||||||||||||||||||||||||||
2009 | $ | 1.00 | $ | — | (2) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
2008 | 1.00 | 0.02 | (2) | — | 0.02 | (0.02 | ) | — | (0.02 | ) | |||||||||||||||||
2007 | 1.00 | 0.05 | — | 0.05 | (0.05 | ) | — | (0.05 | ) | ||||||||||||||||||
2006 | 1.00 | 0.04 | — | 0.04 | (0.04 | ) | — | (0.04 | ) | ||||||||||||||||||
2005 | 1.00 | 0.02 | — | 0.02 | (0.02 | ) | — | (0.02 | ) | ||||||||||||||||||
2004 | 1.00 | 0.01 | — | 0.01 | (0.01 | ) | — | (0.01 | ) | ||||||||||||||||||
Service Class: | |||||||||||||||||||||||||||
2009 | $ | 1.00 | $ | — | (2) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
2008 (3) | 1.00 | 0.01 | (2) | — | 0.01 | (0.01 | ) | — | (0.01 | ) | |||||||||||||||||
Blue Chip Portfolio | |||||||||||||||||||||||||||
Initial Class: | |||||||||||||||||||||||||||
2009 | $ | 28.91 | $ | 0.38 | $ | (1.16 | ) | $ | (0.78 | ) | $ | (0.91 | ) | $ | — | $ | (0.91 | ) | |||||||||
2008 | 42.41 | 0.91 | (13.55 | ) | (12.64 | ) | (0.86 | ) | — | (0.86 | ) | ||||||||||||||||
2007 | 40.61 | 0.86 | 1.73 | 2.59 | (0.79 | ) | — | (0.79 | ) | ||||||||||||||||||
2006 | 35.27 | 0.79 | 5.25 | 6.04 | (0.70 | ) | — | (0.70 | ) | ||||||||||||||||||
2005 | 35.17 | 0.70 | 0.07 | 0.77 | (0.67 | ) | — | (0.67 | ) | ||||||||||||||||||
2004 | 33.65 | 0.67 | 1.35 | 2.02 | (0.50 | ) | — | (0.50 | ) | ||||||||||||||||||
Service Class: | |||||||||||||||||||||||||||
2009 | $ | 28.87 | $ | 0.20 | $ | (0.89 | ) | $ | (0.69 | ) | $ | (0.18 | ) | $ | — | $ | (0.18 | ) | |||||||||
2008 (3) | 39.44 | 0.23 | (10.80 | ) | (10.57 | ) | — | — | — |
See accompanying notes.
38
Net Asset | Total Investment Return Based on Net Asset Value (1) | Ratios/Supplemental Data | |||||||||||||||||
Net Assets at End of Period (in thousands) | Ratio of Total Expenses to Average Net Assets (4) | Ratio of Net Expenses to Average Net Assets (4) | Ratio of Net Investment Income to Average Net Assets (4) | Portfolio Turnover Rate | |||||||||||||||
$ | 11.73 | 2.06 | % | $ | 68,819 | 0.58 | % | 0.58 | % | 2.94 | % | 6 | % | ||||||
11.93 | (19.94 | )% | 71,044 | 0.55 | % | 0.55 | % | 2.70 | % | 19 | % | ||||||||
16.05 | 5.87 | % | 97,073 | 0.54 | % | 0.54 | % | 3.47 | % | 14 | % | ||||||||
16.32 | 11.99 | % | 93,796 | 0.55 | % | 0.55 | % | 2.98 | % | 24 | % | ||||||||
15.80 | 4.53 | % | 83,368 | 0.56 | % | 0.56 | % | 2.34 | % | 24 | % | ||||||||
15.67 | 8.58 | % | 74,876 | 0.56 | % | 0.56 | % | 1.87 | % | 26 | % | ||||||||
$ | 12.07 | 1.92 | % | $ | 836 | 0.83 | % | 0.83 | % | 2.65 | % | 6 | % | ||||||
11.91 | (20.55 | )% | 709 | 0.81 | % | 0.81 | % | 2.87 | % | 19 | % | ||||||||
$ | 1.00 | 0.07 | % | $ | 12,817 | 0.47 | % | 0.14 | % | 0.14 | % | 0 | % | ||||||
1.00 | 1.91 | % | 14,631 | 0.46 | % | 0.45 | % | 1.92 | % | 0 | % | ||||||||
1.00 | 4.71 | % | 16,464 | 0.45 | % | 0.45 | % | 4.60 | % | 0 | % | ||||||||
1.00 | 4.43 | % | 8,557 | 0.54 | % | 0.54 | % | 4.37 | % | 0 | % | ||||||||
1.00 | 2.50 | % | 6,288 | 0.61 | % | 0.61 | % | 2.47 | % | 0 | % | ||||||||
1.00 | 0.74 | % | 6,592 | 0.56 | % | 0.56 | % | 0.72 | % | 0 | % | ||||||||
$ | 1.00 | 0.06 | % | $ | 394 | 0.72 | % | 0.13 | % | 0.12 | % | 0 | % | ||||||
1.00 | 0.71 | % | 197 | 0.73 | % | 0.69 | % | 0.87 | % | 0 | % | ||||||||
$ | 27.22 | (2.17 | )% | $ | 59,273 | 0.34 | % | 0.34 | % | 2.88 | % | 0 | % | ||||||
28.91 | (30.32 | )% | 62,138 | 0.31 | % | 0.31 | % | 2.46 | % | 1 | % | ||||||||
42.41 | 6.49 | % | 94,766 | 0.29 | % | 0.29 | % | 2.04 | % | 2 | % | ||||||||
40.61 | 17.42 | % | 90,261 | 0.31 | % | 0.31 | % | 2.07 | % | 0 | % | ||||||||
35.27 | 2.29 | % | 82,501 | 0.31 | % | 0.31 | % | 1.98 | % | 0 | % | ||||||||
35.17 | 6.07 | % | 84,960 | 0.30 | % | 0.30 | % | 2.00 | % | 1 | % | ||||||||
$ | 28.00 | (2.28 | )% | $ | 1,367 | 0.59 | % | 0.59 | % | 2.53 | % | 0 | % | ||||||
28.87 | (26.80 | )% | 723 | 0.57 | % | 0.57 | % | 2.60 | % | 1 | % |
39
EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL HIGHLIGHTS
(1) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period and is not annualized for periods less than one year.
(2) Without a voluntary waiver/reimbursement of a portion of expenses (see Note 3 to the financial statements) for the periods indicated, the following Portfolio would have had per share net investment income as shown:
Year | Per Share Net Investment Income | Amount Reimbursed | ||||||
Money Market Portfolio | ||||||||
Class IC | 2009 | $ | — | $ | 21,486 | |||
2008 | 0.02 | 1,311 | ||||||
Class SC | 2009 | $ | — | $ | 1,123 | |||
2008 | 0.01 | 18 |
(3) Service Class financial highlights are for the period June 1, 2008 to December 31, 2008. Respective ratios/supplemental data are computed on an annualized basis.
(4) Computed on an annualized basis, unless otherwise indicated.
40
Information on Proxy Voting
EquiTrust Variable Insurance Series Fund (the “Fund”) has delegated the authority to vote proxies related to the Fund’s portfolio securities to the Fund’s investment adviser, EquiTrust Management Services, Inc. (the “Adviser”). A description of the policies and procedures that the Adviser uses in fulfilling this responsibility is available, without charge, upon request by calling 1-877-860-2904. It also appears in the Fund’s Statement of Additional Information, which can be found on the SEC’s website at http://www.sec.gov. The Fund’s proxy voting record for the most recent 12-month period ended June 30, 2009 is available, without charge, by calling the toll-free number listed above or by accessing the SEC’s website.
Form N-Q Disclosure:
The Fund files a complete schedule of portfolio holdings for its first and third quarters of each fiscal year with the SEC on Form N-Q. The Fund’s Forms N-Q are available on the SEC’s website at http://sec.gov or may be reviewed and copies at the SEC’s Public Reference Room in Washington, D.C. Information regarding the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. A copy of Form N-Q is also available, without charge, by calling the Fund at 1-877-860-2904.
41
Item 2. | Code of Ethics. |
Not applicable to this filing.
Item 3. | Audit Committee Financial Expert. |
Not applicable to this filing.
Item 4. | Principal Accountant Fees and Services. |
Not applicable to this filing.
Item 5. | Audit Committee of Listed Registrants. |
Not applicable.
Item 6. | Schedules of Investments. |
See Item 1.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
Item 8. | Portfolio Managers of Closed-End Management Investment Company. |
Not applicable.
Item 9. | Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
Item 10. | Submission of Matters to a Vote of Security Holders. |
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees since the registrant last provided disclosure in response to this Item.
Item 11. | Controls and Procedures |
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date 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. |
N-CSR Certification
I, Kristi Rojohn, 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: 8/24/09 | /s/ Kristi Rojohn | |||
Kristi Rojohn Chief Executive Officer |
N-CSR Certification
I, James P. Brannen, 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: 8/25/09 | /s/ James P. Brannen | |||
James P. Brannen 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, 2008 as filed with the Securities and Exchange Commission (the “Report”), we, Kristi Rojohn and James B. Brannen, 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/ Kristi Rojohn |
Name: Kristi Rojohn |
Title: Chief Executive Officer |
Date: 8/24/09 |
/s/ James P. Brannen |
Name: James P. Brannen |
Title: Chief Financial Officer |
Date: 8/25/09 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) EquiTrust Variable Insurance Series Fund
By: | /s/ Kristi Rojohn | |
Name: Kristi Rojohn | ||
Title: Chief Executive Officer | ||
Date: 8/24/09 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Kristi Rojohn | |
Name: Kristi Rojohn | ||
Title: Chief Executive Officer | ||
Date: 8/24/09 | ||
By: | /s/ James P. Brannen | |
Name: James P. Brannen | ||
Title: Chief Financial Officer | ||
Date: 8/25/09 |