MML Series Investment Fund

This material must be preceded or accompanied by a current prospectus (or summary prospectus, if available) for the MML Series Investment Fund. Investors should consider a Fund’s investment objective, risks, and charges and expenses carefully before investing. This and other information about the investment company is available in the prospectus (or summary prospectus, if available). Read it carefully before investing.

The most common retirement plan investments – stocks, bonds, and short-term/money market investments – typically (although not always) behave differently from one another at any given time. Each of these asset classes contains an array of sub-categories, such as small-cap stocks, international stocks, and high-yield bonds. Many financial professionals believe that investors can reduce the risk of over-exposure to one or two poorly performing investment types by investing in a diverse mix of investment types and sub-categories.

Choose the investments you feel are right for you – and seek professional guidance

Many financial advisors believe that retirement savers who select an appropriate combination of investments that aligns with both their retirement income goals and how they feel about investing can help them withstand the inevitable ups and downs of the markets.

If you work with a financial professional, you may wish to consider reaching out to him or her for assistance in helping you ensure:

MassMutual believes that your long-term financial security is crucial. Our ongoing commitment is to help people financially protect their families and put themselves on the path to a more secure retirement. And that’s why we continually remind retirement investors of the importance of maintaining a long-term perspective on retirement planning. Our view is that planning isn’t about crunching numbers – it’s about those moments when it all pays off – and that the more you plan for life’s greatest moments, the more you can relax and enjoy them. Thank you for your continued confidence and trust in MassMutual.

^© 2020 Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA. All rights reserved. www.massmutual.com Underwriter: MML Distributors, LLC. (MMLD) Member FINRA and SIPC (www.FINRA.org and www.SIPC.org), 100 Bright Meadow Blvd., Enfield, CT 06082. MMLD is a wholly-owned subsidiary of MassMutual. Investment advisory services provided to the Funds by MML Investment Advisers, LLC (MML Advisers), a wholly-owned subsidiary of MassMutual. The information provided is the opinion of MML Advisers as of 1/1/20 and is subject to change without notice. It is not to be construed as tax, legal, or investment advice. Of course, past performance does not guarantee future results.

U.S. equity investors benefited from a decrease in volatility in 2019 and expectations that a global recession would be avoided in the near term. U.S. stocks delivered positive returns in each of the four quarters of the year. The S&P 500^® Index* (the “S&P 500”) and the Dow Jones Industrial Average^SM (the “Dow”) each posted strong positive results for the year, gaining 31% and 25% respectively.

In the first quarter of 2019, investors pushed aside concerns over slowing global economic growth and increased market volatility to push global stock prices to near all-time highs. The market rally was fueled by the Fed’s decision to hold off on interest rate hikes in 2019 (and to instead lower rates), the end of the government shutdown (which ran from December 22, 2018 to January 25, 2019), and evidence that the trade war between the U.S. and China was on a path to resolution.

Markets continued to gain traction in the second quarter, as investors tamped down fears of a global economic slowdown, and continued to send global stock prices on an upward trajectory. The market rally was bolstered by expectations that the Fed would be cutting interest rates as early as July 2019 and the belief that the trade negotiations between the U.S. and China remained on track.

Volatility returned to the markets in the third quarter, as investor concerns that trade war-related conflicts would spark a global economic slowdown flew in the face of strong consumption in the United States, a rebound in U.S. housing, and renewed monetary stimulus from a majority of the world’s central banks. The temporary inversion of the U.S. yield curve also troubled investors. Inversions of the yield curve, where short-term rates are higher than long-term rates, have historically signaled future economic contractions.

It was back to the races in the fourth quarter, with investors responding positively to the Fed’s move to lower the federal funds rate (i.e., the interest rate that banks and financial institutions charge each other for borrowing funds overnight), better-than-expected corporate earnings, the resurgence of the housing sector in the U.S., and progress being made in the U.S.-China trade war. Emerging-market stocks led global markets upward in the face of a weakening U.S. dollar.

At year end, the broad market S&P 500 ended up 31.49% and the Dow followed a similar pattern, advancing 25.34%. The technology-heavy NASDAQ Composite Index gained 36.69%, led by technology giant Apple, which appreciated 87% for the year. Small-cap stocks underperformed their larger peers and growth stocks continued to outperform their value counterparts during the period.

All sectors of the S&P 500 delivered positive results for the year, with the information technology sector being the clear winner, up 50.29%. The information technology, communication services, and financials sectors were the only areas of the market that outperformed the broad market, as represented by the S&P 500. The energy sector, while up, was the top laggard, up just 11.81% for the year.

Developed international markets, as measured by the MSCI EAFE^® Index, had a strong year, although they trailed their U.S. peers, and ended the year 22.01% higher. Emerging markets, as measured by the MSCI Emerging Markets Index, also had a strong year, with an advance of 18.42%. International stocks benefited from accommodative monetary policy, investors’ belief that the U.S.-China trade war was done escalating, and diminished concerns that the global economy was on the brink of a recession.

The Fed’s influence on markets was considerable in 2019. In the first quarter, it signaled that it was done raising interest rates over concerns that higher rates were impacting economic expansion. In the second quarter, Fed Chairperson Jerome Powell addressed fears of how the continuing U.S.-China trade war could hurt the U.S. economy and commented that the Fed would “act as appropriate to sustain the expansion.” This perceived willingness to cut interest rates was positive for risk assets and drove equities higher. In the second half of 2019, the Fed took action to sustain the economic expansion, cutting interest rates in July, September, and October.

Bond yields fell during the year, with the 10-year U.S. Treasury bond falling below 1.50% in September. After starting the year at 2.69%, yields fell 0.77% to end 2019 at 1.92%. Since falling yields drive bond prices up, returns on the Bloomberg Barclays U.S. Aggregate Bond Index were strong for the year, with an 8.72% advance. Investment-grade corporate bonds also fared well in the falling yield environment. The Bloomberg Barclays U.S. Corporate Bond Index, which tracks investment-grade corporate bonds, ended the year with a gain of 14.54%. The Bloomberg Barclays U.S. Corporate High Yield Index also ended the year in positive territory, appreciating 14.32%.

As we enter 2020, we continue to see high valuations in the equity market, from a historical perspective. At MassMutual, we remain convinced that a broadly diversified portfolio aligned with a long-term strategy is the wisest course for those investors seeking retirement income. We remind you that it is important to maintain perspective and have realistic expectations about the future performance of your investment portfolio. As described in this report, financial markets can reverse suddenly, stumble along sideways, and reverse again. As always, we recommend that you work with a personal financial professional, who can help you define an investment strategy that aligns with your comfort level with respect to markets like these, taking into consideration how long you have to save and invest, as well as your financial goals and risk tolerance. Thank you for your confidence in MassMutual.

The information provided is the opinion of MML Investment Advisers, LLC as of 1/1/20 and is subject to change without notice. It is not to be construed as tax, legal, or investment advice. Of course, past performance does not guarantee future results.

What are the investment approaches of the Funds that constitute the MML Allocation Series (the “Series”), and who is the Series’ investment adviser?

The MML Allocation Series comprises five Funds – each of which has a “fund of funds” structure. The five Funds in the Series are MML Conservative Allocation Fund, MML Balanced Allocation Fund, MML Moderate Allocation Fund, MML Growth Allocation Fund, and MML Aggressive Allocation Fund.

Each Fund seeks to achieve as high a total return over time as is considered consistent with prudent investment risk, preservation of capital, and recognition of the Fund’s stated asset allocation. Each Fund invests in a combination of U.S. domestic and international mutual funds (“MML Underlying Funds”) using an asset allocation strategy. MML Underlying Funds will include a combination of series of the MML Series Investment Fund and MML Series Investment Fund II (advised by MML Investment Advisers, LLC (MML Advisers), a wholly-owned subsidiary of Massachusetts Mutual Life Insurance Company (MassMutual)), and may also include other, non-affiliated mutual funds. The MML Underlying Funds may invest in various asset classes, including equity securities, fixed income securities, and money market instruments. The Series’ investment adviser is MML Advisers.

Each Fund will normally invest most of its assets in MML Underlying Funds advised by MML Advisers; each Fund will normally invest no more than 10% of its assets in mutual funds not advised by MML Advisers (referred to here as “non-affiliated” funds).

Each Fund’s assets are allocated to its MML Underlying Funds according to an asset allocation strategy stated below.

All of the MML Allocation Series Funds underperformed their respective Custom Index as well as the Russell 3000 Index. Only the MML Aggressive Allocation Fund outperformed the MSCI ACWI ex USA Index, but all five funds in the Series outperformed the Bloomberg U.S. Aggregate Bond Index for the full year.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2019, please see the Economic and Market Review, beginning on page 3.

Investment adviser discussion of factors that contributed to the Funds’ performance

For the year ended December 31, 2019, the Series Funds delivered positive double-digit returns for the year, as stocks outperformed fixed-income investments. Consequently, those Series Funds with higher equity allocations outperformed their Series counterparts with higher fixed-income allocations.

Stock markets across the globe were up significantly in 2019, as were the more credit- and interest rate-sensitive fixed-income markets. Allocations across various asset classes intended to diversify risk in the Funds delivered mixed results. The allocation to alternative asset classes detracted from performance, as these investments underperformed the global stock market, while the allocation to international and emerging-market stocks also hampered performance, as non-U.S. stocks underperformed U.S. stocks in the face of a weakening global economy.

Manager selection of underlying Funds contributed to the Funds’ overall performance in 2019. Strong performance by MML International Equity Fund, MML Global Fund, MML Strategic Emerging Markets Fund, and MML Managed Bond Fund helped the Funds’ overall full-year returns. Weak results from MML Foreign Fund and MML Fundamental Value Fund significantly detracted from the Funds’ performance.

As we enter 2020, Fund management views the stock markets as extended and valuations high, relative to historical levels. Although the economy has continued to grow modestly, Fund management expects that growth could remain muted in 2020 and beyond, though they believe that the likelihood of recession remains low. Several factors that support their views include the fact that we are late in a typical economic growth cycle, there are diminishing tailwinds from a declining unemployment rate, company profit margins remain above long-term trends, and corporate debt levels are back near all-time highs. Fund management believes that more accommodative monetary policy from the U.S. Federal Reserve Board or fiscal policy from state and federal governments could extend the economic cycle. Against this backdrop, Fund management believes that diversification across global assets could be a smart approach for what they believe could be a bumpy ride in 2020.

The graph above illustrates a representative class of the Fund’s historical performance for the past 10 fiscal years or since inception (for Funds lacking 10-year records) in comparison to its benchmark index, as well as one or more additional indexes, if applicable. The performance of other share classes will be greater than or less than the class depicted above.

Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.

Performance results in the graph and table reflect the percentage change in net asset value, including reinvestment of dividends and capital gains distributions. Investors should note that the Fund is a professionally managed mutual fund, while the index or indexes shown above are unmanaged, cannot be purchased directly, and, with the exception of any peer group index, do not incur expenses.

Performance data quoted in the graph and table represents past performance; past performance is not predictive of future results. The investment return and principal value of shares of the Fund fluctuate, so your shares, when sold, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-888-309-3539.

Investors should read the Fund’s prospectus with regard to the Fund’s investment objectives, risks, and charges and expenses in conjunction with these financial statements. The Fund’s return reflects changes in the net asset value per share without the deduction of any product charges (e.g., cost of insurance, mortality and expense risk charges, administrative fees, and CDSL). The inclusion of these charges would have reduced the performance shown here.

What is the investment approach of MML American Funds Growth Fund, and who is the Fund’s investment adviser?

The Fund seeks to provide investors with growth of capital through a “master feeder” relationship. (See page 50 of this report for information about the “master feeder” relationship.) The Fund invests all of its assets in Class 1 shares of the American Funds Insurance Series – Growth Fund (the “Master Growth Fund”), a series of the American Funds Insurance Series, a registered open-end investment company, managed by Capital Research and Management Company (Capital Research) with substantially the same investment objective. The Master Growth Fund invests primarily in common stocks and seeks to invest in companies that appear to offer superior opportunities for growth of capital. The Master Growth Fund may invest up to 25% of its assets in common stocks and other securities of issuers domiciled outside the United States. The Master Growth Fund may hold a portion of its assets in cash or cash equivalents. The Fund’s investment adviser is MML Investment Advisers, LLC (MML Advisers).

The Fund returned 30.22%, underperforming the 31.49% return of the S&P 500^® Index (the “benchmark”), which measures the performance of 500 widely held stocks in the U.S. equity market. The Fund significantly underperformed the 36.39% return of the Russell 1000^® Growth Index, which measures the performance of the large-cap growth segment of U.S. equity securities. It includes the Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2019, please see the Economic and Market Review, beginning on page 3.

Capital Research’s discussion of factors that contributed to the Fund’s performance

In 2019, U.S. equities had their strongest annual gains since 2013, ending the year near all-time highs. Stocks rose steadily, posting gains in 10 of 12 months. The U.S. trade war with China occasionally caused volatility, but the resilient U.S. economy and the Federal Reserve Board’s return to accommodative policies helped steer markets higher. Information technology companies posted the highest returns, with a gain of nearly 48% in aggregate. Outside the U.S., European stocks advanced, despite signs of slowing economic growth, a near-recession in Germany, and Brexit-related uncertainty in the U.K. that remained unresolved until the very last month of the year. (“Brexit” – an abbreviation for “British exit” – refers to the United Kingdom’s referendum to leave the European Union.) Emerging-market stocks advanced, overcoming bouts of volatility tied to global trade tensions, China’s economic slowdown, and a strong U.S. dollar.

For the year ended December 31, 2019, Fund holdings in the consumer discretionary and health care sectors detracted from the Fund’s relative performance. The Fund holding that was the top detractor from relative returns was information technology company Apple. The Fund was significantly underweight in Apple, relative to the benchmark, and the technology leader proved to be one of the top performers for the year.

Fund holdings in the communication services sector contributed to the Fund’s relative performance, led by social media giant Facebook, which was boosted by strong user and revenue growth.

Although U.S. economic growth remained solid, Fund management is keeping a close watch on near-term economic indicators, such as wage growth, monetary policy, and trade relations. They continue to favor well-positioned, growth-oriented companies that are capable of generating free cash flow in myriad near-term economic environments – and remain optimistic that their firm’s global research will help Fund management identify attractive long-term investment opportunities.

The graph above illustrates the Fund’s historical performance for the past 10 fiscal years or since inception (for Funds lacking 10-year records) in comparison to its benchmark index, as well as one or more additional indexes, if applicable.

What is the investment approach of MML American Funds International Fund, and who is the Fund’s investment adviser?

The Fund seeks long-term capital growth of assets through a “master-feeder” relationship. (See page 50 of this report for information about the “master feeder” relationship.) The Fund invests all of its assets in Class 1 shares of the American Funds Insurance Series – International Fund (the “Master International Fund”), a series of the American Funds Insurance Series, a registered open-end investment company managed by Capital Research and Management Company (Capital Research) with substantially the same investment objective. The Master International Fund invests primarily in common stocks of companies domiciled outside the United States, including companies domiciled in emerging markets, that Capital Research believes have the potential for growth. The Master International Fund may hold a portion of its assets in cash or cash equivalents. The Fund’s investment adviser is MML Investment Advisers, LLC (MML Advisers).

The Fund returned 22.31%, outperforming the 21.51% return of MSCI All Country World Index (ACWI) ex USA (the “benchmark”), which measures the performance of the large- and mid-cap segments of the particular regions, excluding U.S. equity securities, including developed and emerging markets. The Fund outperformed the 22.01% return of the MSCI EAFE Index, which measures the performance of the large- and mid-cap segments of developed markets, excluding the U.S. and Canada equity securities.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2019, please see the Economic and Market Review, beginning on page 3.

Capital Research’s discussion of factors that contributed to the Fund’s performance

Global stocks generated the best returns in a decade in 2019, boosted by aggressive central bank stimulus measures and easing trade tensions toward the end of the year. U.S. stocks soared to near record highs in December, as the U.S. and China agreed to a limited trade war truce, with the aim of avoiding the imposition of new tariffs and other protectionist measures. Information technology stocks posted the highest returns, with a gain of nearly 48% in aggregate. Outside of the U.S., European stocks advanced, despite signs of slowing economic growth, a near-recession in Germany, and Brexit-related uncertainty in the U.K. that remained unresolved until the very last month of the year. (“Brexit” – an abbreviation for “British exit” – refers to the United Kingdom’s referendum to leave the European Union.) Emerging-market stocks advanced, overcoming bouts of volatility tied to global trade tensions, China’s economic slowdown, and a strong U.S. dollar.

For the year ended December 31, 2019, Fund holdings in the communication services and financials sectors boosted the Fund’s relative returns, with Amsterdam-based Altice Europe among the top contributors thanks to better-than-expected growth. One of the biggest detractors from relative returns was health-care sector stock Teva Pharmaceutical Industries, whose stock price suffered amid continued opioid litigation.

Fund management continues to monitor volatility and potential headwinds brought about by political and trade uncertainty. Given how late it may be in the current bull market, they seek opportunities in particular within those regions, countries, and sectors less affected by these global headlines. Their focus on a company’s fundamental growth drivers and intrinsic worth is critical to helping them identify investments that they believe represent the best value over the long term.

What is the investment approach of MML American Funds Core Allocation Fund, and who is the Fund’s investment adviser?

The Fund seeks to achieve as high a total return over time as is considered consistent with prudent investment risk, preservation of capital, and recognition of the Fund’s stated asset allocation. The Fund is a “fund of funds” and seeks to achieve its investment objective by principally investing in a combination of series of the American Funds Insurance Series (the “American Underlying Funds”), managed by Capital Research and Management Company (Capital Research), using a flexible asset allocation approach. The Fund’s investment adviser invests the Fund’s assets in a combination of U.S. domestic and international American Underlying Funds. As of the date of this report, it is expected that the American Underlying Funds will include Class 1 shares of the American Funds Insurance Series – Bond Fund, the American Funds Insurance Series – Blue Chip Income and Growth Fund, the American Funds Insurance Series – Growth-Income Fund, and the American Funds Insurance Series – International Fund. The Fund’s investment adviser allocates the Fund’s assets among a variety of different asset classes through investing in American Underlying Funds in response to changing market, economic, and investment conditions. The Fund’s investment adviser is MML Investment Advisers, LLC (MML Advisers).

The Fund returned 18.12%, substantially underperforming the 31.49% return of the S&P 500^® Index (the “benchmark”), which measures the performance of 500 widely held stocks in the U.S. equity market. The Fund underperformed the 21.51% return of the MSCI All Country World Index (ACWI) ex USA, which measures the performance of the large- and mid-cap segments of the particular regions, excluding U.S. equity securities, including developed and emerging markets. The Fund outperformed the 8.72% return of the Bloomberg Barclays U.S. Aggregate Bond Index, which measures the performance of the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (MBS) (agency fixed-rate and hybrid ARM pass-throughs), asset-backed securities (ABS), and commercial mortgage-backed securities (CMBS). Finally, the Fund’s 18.12% return underperformed the 22.29% return of the Custom MML Core Allocation Index, which comprises the benchmark (55%), the Bloomberg Barclays U.S. Aggregate Bond Index (35%), and the MSCI ACWI ex USA (10%).

For a discussion on the economic and market environment during the 12-month period ended December 31, 2019, please see the Economic and Market Review, beginning on page 3.

Capital Research’s discussion of factors that contributed to the Fund’s performance

The following paragraphs discuss the results of each of the Fund’s underlying portfolio components. Because the Fund invests in both stock- and bond-based portfolios, its overall performance may vary considerably from the broad market indexes listed above, which each measure the performance of a specific group of securities. These component-specific discussions focus on results and positioning versus each component’s main comparative index, not how the Fund as a whole performed or was positioned versus those indexes.

The American Funds Insurance Series – Bond Fund (the “Bond Fund”) outperformed the Bloomberg Barclays U.S. Aggregate Bond Index (the “Index”) for the year, as the Bond Fund benefited from active duration management as interest rates declined over the period. (Duration is a measure of a bond fund’s sensitivity to interest rates. The longer the duration, the greater the price impact on the bond or portfolio when interest rates rise or fall.) Sector selection was also a positive factor, as larger-than-Index investments in Treasury Inflation Protected Securities (TIPS), investment-grade corporate bonds, high yield, and emerging markets all contributed to full-year performance. Security selection within agency mortgage backed pass-through securities was the primary detractor from the Bond Fund’s relative results for the period.

The American Funds Insurance Series – Blue Chip Income and Growth Fund (the “Income and Growth Fund”) underperformed the benchmark in 2019, despite U.S. equities having had their strongest annual gains since 2013, ending the year near all-time highs. Performance was mixed within the Income and Growth Fund holdings in the health care sector. Specifically, pharmaceutical companies such as AbbVie and Teva Pharmaceutical hurt results relative to the benchmark. However, UnitedHealth Group was among the top contributors to relative returns within health care, which consistently surpassed earnings estimates each quarter throughout the year. Another top contributor to the Income and Growth Fund’s performance was Qualcomm, where an improved relationship with Apple and the prospect of a 5G wireless network bolstered both earnings prospects and the company’s valuation.

The American Funds Insurance Series – Growth-Income Fund (the “Growth-Income Fund”) underperformed the benchmark for the year, as the Growth-Income Fund’s underweight position, relative to the benchmark, in information technology stocks, a sector that performed strongly over the period, weighed on relative returns. In particular, an underweight allocation to technology leader Apple hindered results the most, as Apple shares outperformed the broader market over the period. Growth-Income Fund holdings in the industrials sector contributed the most to relative returns. Among industrials, aircraft component manufacturer TransDigm Group was a top contributor.

The American Funds Insurance Series – International Fund (the “International Fund”) outperformed the MSCI ACWI ex USA (the “Index”) for the year, as global stocks generated the best returns in a decade in 2019, boosted by aggressive central bank stimulus measures and easing trade tensions toward the end of the year. The International Fund’s holdings in the communication services and financials sectors boosted relative returns, with Amsterdam-based Altice Europe among the top contributors thanks to better-than-expected growth. One of the biggest detractors from relative returns was health care sector stock Teva Pharmaceutical Industries, whose stock price suffered amid continued opioid litigation.

In the near term, Fund management is aware that the market is keeping a close watch on U.S. monetary policy, U.S. trade relationships, the current shape of the yield curve, and the implications of those three factors on the U.S. economy. Fund management continues to favor well-managed, high-quality companies that are capable of paying dividends in various economic environments. Fund management remains optimistic that this focus, supported by their global research, will help them identify attractive long-term investment opportunities.

On the international stage, Fund management continues to monitor volatility and potential headwinds brought about by political and trade uncertainty. Given how late Fund management believes it may be in the current bull market, they seek opportunities in particular within those regions, countries, and sectors less affected by these global headlines. Fund management believes their focus on a company’s fundamental growth drivers and intrinsic worth is critical to helping them identify investments that they believe represent the best value over the long term.

MML Series Investment Fund (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized under the laws of the Commonwealth of Massachusetts as a Massachusetts business trust pursuant to an Agreement and Declaration of Trust dated December 19, 1984, as restated May 14, 1993, and further amended and restated as of December 15, 2011, as it may be further amended from time to time. The following are eight series of the Trust (each individually referred to as a “Fund” or collectively as the “Funds”):

MML American Funds International Fund (“MML American Funds International Fund”)

MML American Funds Core Allocation Fund (“MML American Funds Core Allocation Fund”)

The Trust makes shares of the Funds available for the investment of assets of various separate investment accounts established by Massachusetts Mutual Life Insurance Company (“MassMutual”) and by life insurance companies which are subsidiaries of MassMutual. Shares of the Trust are not offered to the general public. MassMutual, MML Bay State Life Insurance Company, and C.M. Life Insurance Company are the record owners of all of the outstanding shares of the Funds.

Each share class of a Fund represents an interest in the same portfolio of assets. The principal difference among the classes is the level of service and administration fees, and shareholder and distribution service expenses borne by the classes. Because each class will have different fees and expenses, performance and share prices will vary between the classes. The classes of shares are offered to different types of investors, as outlined in the Funds’ Prospectus.

The Conservative Allocation Fund, Balanced Allocation Fund, Moderate Allocation Fund, Growth Allocation Fund, and Aggressive Allocation Fund (the “Allocation Funds”) invest their investable assets in shares of series of the Trust and MML Series Investment Fund II (advised by MML Investment Advisers, LLC (“MML Advisers”), a wholly-owned subsidiary of MassMutual) and non-affiliated mutual funds (together, the “MML Underlying Funds”). The financial statements included herein are those of the Funds. The financial statements of the applicable MML Underlying Funds are presented separately and can be obtained from the Securities and Exchange Commission’s (“SEC”) EDGAR database on its website at http://www.sec.gov or by calling MML Advisers at 1-888-309-3539.

MML American Funds Growth Fund and MML American Funds International Fund (each a “Feeder Fund,” collectively the “Feeder Funds”) invest all of their assets in Class 1 shares of the Growth and International Funds, respectively, each a series of the American Funds Insurance Series (each a “Master Fund,” collectively the “Master Funds”). Each Master Fund is an open-end investment company and organized as a Massachusetts business trust. Each Feeder Fund has an investment objective that is consistent with its corresponding Master Fund. Each Master Fund intends to comply with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), applicable to mutual funds and intends to distribute substantially all of its taxable income and capital gains to shareholders, which includes the applicable Feeder Fund, to qualify as a regulated investment company. The performance of the Feeder Funds is directly affected by the performance of the Master Funds. The financial statements of the Master Funds, including the Summary Investment Portfolios, are provided separately and should be read in conjunction with the Feeder Funds’ financial statements. As of December 31, 2019, the MML American Funds Growth Fund and MML American Funds International Fund owned 0.69% and 0.63% of the Growth and International Master Funds, respectively. The MML American Funds Core Allocation Fund invests all of its investable assets in shares of various series of American Funds Insurance Series, which are managed by Capital Research and Management Company (together, the “American Underlying Funds” and collectively with the MML Underlying Funds, the “Underlying Funds”).

The SEC file number for the American Funds Insurance Series is 811-03857. Additional information related to the Master Funds’ and American Underlying Funds’ financial reports can be located on the SEC’s EDGAR database on its website at http://www.sec.gov.

The following is a summary of significant accounting policies followed consistently by each Fund in the preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America (“generally accepted accounting principles”). The preparation of the financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

The net asset value of each Fund’s shares is determined once daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), on each day the NYSE is open for trading (a “business day”). The NYSE normally closes at 4:00 p.m. Eastern Time, but may close earlier on some days. If the NYSE is scheduled to close early, the business day will be considered to end as of the time of the NYSE’s scheduled close. A Fund will not treat an intraday disruption in NYSE trading or other event that causes an unscheduled closing of the NYSE as a close of business of the NYSE for these purposes and will instead fair value securities in accordance with procedures approved annually by the Board of Trustees (“Trustees”), and under the general oversight of the Trustees. On holidays and other days when the NYSE is closed, each Fund’s net asset value generally is not calculated and the Funds do not anticipate accepting buy or sell orders. However, the value of each Fund’s assets may still be affected on such days to the extent that an Underlying Fund or Master Fund holds foreign securities that trade on days that foreign securities markets are open.

The net asset value of each Fund is based upon the net asset value(s) of its corresponding Master Fund or Underlying Funds. Shares of the Master Fund and Underlying Funds are valued at their closing net asset values as reported on each business day.

Certain Underlying Funds or Master Funds may invest in securities that are traded principally in foreign markets and that trade on weekends and other days when the Funds do not price their shares. As a result, the values of the Funds’ portfolio securities may change on days when the prices of the Funds’ shares are not calculated. The prices of the Funds’ shares will reflect any such changes when the prices of the Funds’ shares are next calculated, which is the next business day.

The Prospectuses and Statements of Additional Information (“SAIs”) for the Underlying Funds and Master Funds, as applicable, explain the valuation methods for the Underlying Funds and Master Funds, including the circumstances under which the Underlying Funds or Master Funds, may use fair value pricing and the effects of doing so. Such Prospectuses and SAIs are available on the SEC’s EDGAR database on its website at http://www.sec.gov.

Various inputs may be used to determine the value of the Funds’ investments. The Funds categorize the inputs to valuation techniques used to value their investments into a disclosure hierarchy consisting of three levels as summarized below. The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.

Level 1 – quoted prices (unadjusted) in active markets for identical investments that the Funds can access at the measurement date

Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Level 3 – significant unobservable inputs, to the extent observable inputs are not available (including the Funds’ own assumptions in determining the fair value of investments)

Each Fund characterized all investments at Level 1, as of December 31, 2019. For each Fund, the level classification by major category of investments is the same as the category presentation in the Portfolio of Investments.

Investment transactions are accounted for on the trade date. Realized gains and losses on sales of investments and unrealized appreciation and depreciation of investments are computed by the specific identification cost method. Proceeds received from litigation, if any, are included in realized gains on investment transactions for any investments that are no longer held in the portfolio and as a reduction in cost for investments that continue to be held in the portfolio. Interest income, adjusted for amortization of discounts and premiums on debt securities, is earned from the settlement date and is recorded on the accrual basis. Dividend income and distributions including realized gain distributions are recorded on the ex-dividend date. Withholding taxes on foreign interest, dividends, and capital gains have been provided for in accordance with the applicable country’s tax rules and rates. Foreign dividend income is recorded on the ex-dividend date or as soon as practicable after the Fund determines the existence of a dividend declaration after exercising reasonable due diligence. Distributions received on securities that represent a return of capital or capital gains are recorded as a reduction of cost of investments and/or as a realized gain. The Funds determine the classification of distributions received as return of capital distributions or capital gain distributions.

In maintaining the records for the Funds, the income and expense accounts are allocated daily to each class of shares. Investment income and loss, and unrealized and realized gains or losses are prorated among the classes of shares based on the relative net assets of each. Expenses are allocated to each class of shares depending on the nature of the expenditures. Administration and service fees, if any, which are directly attributable to a class of shares, are charged to that class’s operations. Expenses of a Fund not directly attributable to the operations of any specific class of shares of the Fund are prorated among the classes to which the expense relates based on relative net assets or another alternative method.

In addition, each Fund will also incur certain fees and expenses indirectly as a shareholder in the Underlying Funds or Master Funds. Because the Underlying Funds have varied expense and fee levels, and the Allocation Funds and MML American Funds Core Allocation Fund may own different proportions of Underlying Funds at different times, the amount of fees and expenses indirectly incurred by each of the Allocation Funds and MML American Funds Core Allocation Fund will vary.

Certain Underlying Funds or Master Funds may invest in foreign securities. Foreign securities, including American Depositary Receipts, are subject to additional risks compared to securities of U.S. issuers, including international trade, currency, political, regulatory, and diplomatic risks. In addition, fluctuations in currency exchange rates may adversely affect the values of foreign securities and the price of a Fund’s shares. Emerging markets securities are subject to greater risks than securities issued in developed foreign markets, including less liquidity, greater price volatility, higher relative rates of inflation, greater political, economic, and social instability, greater custody and operational risks, and greater volatility in currency exchange rates.

It is each Fund’s intent to continue to comply with the provisions of Subchapter M of the Code, applicable to a regulated investment company. Under such provisions, the Funds would not be subject to federal income taxes on their ordinary income and net realized capital gains to the extent they are distributed or deemed to have been distributed to their shareholders. Therefore, the Funds have not made any provision for federal income tax.

Dividends from net investment income and distributions of any net realized capital gains of each Fund are declared and paid annually and at other times as may be required to satisfy tax or regulatory requirements.

Distributions to shareholders are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. As a result, net investment income and net realized capital gains on investment transactions for a reporting period may differ significantly from distributions during such period.

MML Advisers, a wholly-owned subsidiary of MassMutual, serves as investment adviser to each Fund. Under the investment advisory agreements between MML Advisers and the Trust on behalf of each Fund, MML Advisers is responsible for providing investment management services for each Fund. In return for these services, MML Advisers receives advisory fees, based upon each Fund’s average daily net assets, computed and accrued daily and payable monthly, at the following annual rates:

For the MML American Funds Growth Fund, MML American Funds International Fund, and MML American Funds Core Allocation Fund, under a separate Administrative and Shareholder Services Agreement between the Trust and MML Advisers, on behalf of each Fund, MML Advisers is obligated to provide administrative and shareholder services and bear some of the Fund specific administrative expenses. In return for these services, MML Advisers receives an administrative services fee based upon the average daily net assets of the applicable class of shares of the Funds, at the following annual rates:

MML Distributors, LLC (the “Distributor”) acts as distributor to the Funds. Pursuant to a Distribution and Services Plan adopted by the Funds pursuant to Rule 12b-1 under the 1940 Act, Service Class shares and Service Class I shares of the Funds pay an annual fee of 0.25% of the average daily net asset value of Service Class shares and Service Class I shares. This fee, or a portion thereof, is paid to: (i) the Distributor for services provided and expenses incurred by it in connection with the distribution of Service Class shares or Service Class I shares, as applicable, of each Fund; and/or (ii) MassMutual for services provided and expenses incurred by it for purposes of maintaining or providing personal services to Service Class and Service Class I shareholders. The Distributor is a wholly-owned subsidiary of MassMutual.

Prior to May 1, 2019, MML Advisers agreed to cap the fees and expenses of the Funds noted below (other than extraordinary litigation and legal expenses, Master Fund Fees and Expenses^#, interest expense, short sale dividend and loan expense, or other

non-recurring or unusual expenses such as organizational expenses and shareholder meeting expenses, as applicable) based upon the average daily net assets of the applicable class of shares of the Funds, as follows:

Expense caps and waiver amounts are reflected as a reduction of expenses on the Statements of Operations.

Trustees of the Funds who are not officers or employees of MassMutual may elect to defer receipt of their annual fees in accordance with terms of a Non-Qualified Deferred Compensation Plan. Amounts deferred shall accrue interest or earnings and shall be recorded on the Funds’ books as other liabilities. Deferred compensation is included within Trustees’ fees and expenses in the Statements of Assets and Liabilities.

Certain officers and trustees of the Funds may also be employees of MassMutual. The compensation of a trustee who is not an employee of MassMutual is borne by the Funds.

Cost of purchases and proceeds from sales of investments in Underlying Funds or Master Funds (excluding short-term investments) for the year ended December 31, 2019, were as follows:

At December 31, 2019, the aggregate cost of investments and the unrealized appreciation (depreciation) in the value of all investments owned by the Fund(s), as computed on a federal income tax basis, were as follows:

as they relate to regulated investment companies. Capital losses generated in tax years beginning after the date of enactment may now be carried forward indefinitely, and retain the character of the original loss. Under pre-enactment law, capital losses could be carried forward for up to eight tax years as short-term capital losses. The provisions affecting the utilization of capital loss carryforwards under the Modernization Act also require the utilization of post-enactment losses prior to the utilization of pre-enactment losses.

At December 31, 2019, for federal income tax purposes, there were no unused capital losses.

Generally accepted accounting principles in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital.

The tax character of distributions (including capital gain dividends, if any, designated pursuant to Section 852 of the Code) paid during the year ended December 31, 2019, was as follows:

The tax character of distributions (including capital gain dividends, if any, designated pursuant to Section 852 of the Code) paid during the year ended December 31, 2018, was as follows:

The following Fund(s) have elected to pass through the foreign tax credit for the year ended December 31, 2019:

Capital accounts within the financial statements are periodically adjusted for permanent differences between book and tax accounting. These adjustments have no impact on net assets or the results of operations. Temporary book and tax accounting differences will reverse in subsequent periods. At December 31, 2019, temporary book and tax accounting differences were primarily attributable to the deferral of wash sale losses, deferred Trustee compensation, and other temporary basis adjustments.

At December 31, 2019, the components of distributable earnings on a tax basis were as follows:

During the year ended December 31, 2019, the following amounts were reclassified due to permanent differences between book and tax accounting:

The Funds did not have any unrecognized tax benefits at December 31, 2019, nor were there any increases or decreases in unrecognized tax benefits for the year then ended. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as an income tax expense in the Statements of Operations. During the year ended December 31, 2019, the Funds did not incur any such interest or penalties. The Funds are subject to examination by U.S. federal and state tax authorities for returns filed for the prior three fiscal years. Foreign taxes are provided for based on the Funds’ understanding of the tax rules and rates that exist in the foreign markets in which they invest.

A summary of the Funds’ transactions in the securities of affiliated issuers during the year ended December 31, 2019, was as follows:

Under the Funds’ organizational documents, current and former Trustees and Officers are provided with specified rights to indemnification against liabilities arising in connection with the performance of their duties to the Funds, and shareholders are indemnified against personal liability for obligations of the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.

To the Board of Trustees of MML Series Investment Fund and Shareholders of MML Conservative Allocation Fund, MML Balanced Allocation Fund, MML Moderate Allocation Fund, MML Growth Allocation Fund, MML Aggressive Allocation Fund, MML American Funds Growth Fund, MML American Funds International Fund, and MML American Funds Core Allocation Fund (collectively, the “Funds,” certain of the funds constituting MML Series Investment Fund):

We have audited the accompanying statements of assets and liabilities of the Funds, including the portfolios of investments, as of December 31, 2019, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2019, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2019, by correspondence with the custodian and transfer agents; when replies were not received from the transfer agents, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more MassMutual investment companies since 1995.

The following table lists the Trust’s Trustees and Principal Officers; their address and year of birth; their position with the Trust; the length of time holding that position with the Trust; their principal occupation(s) during at least the past five years; the number of portfolios in the fund complex they oversee; and other directorships they hold in companies subject to registration or reporting requirements of the Securities Exchange Act of 1934 (generally called “public companies”) or in registered investment companies. The Trust’s Statements of Additional Information include additional information about the Trust’s Trustees and is available, without charge, upon request by calling 1-888-309-3539 or by writing MML Series Investment Fund, c/o Massachusetts Mutual Life Insurance Company, 100 Bright Meadow Blvd., Enfield, Connecticut 06082-1981, Attention: MassMutual U.S. Product and Marketing.

For corporate shareholders, a portion of the ordinary dividends paid during the Fund(s)’ year ended December 31, 2019, qualified for the dividends received deduction, as follows:

For the year ended December 31, 2019, the following Fund(s) earned the following foreign sources of income:

A description of the policies and procedures that each Fund’s investment adviser uses to vote proxies relating to the Fund’s portfolio securities is available, without charge, upon request, by calling 1-888-309-3539, and on the SEC’s EDGAR database on its website at http://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available, without charge, upon request, on the MassMutual website at http://www.massmutual.com/funds and on the SEC’s EDGAR database on its website at http://www.sec.gov.

For periods ending on or after March 31, 2019, the Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s EDGAR database on its website at http://www.sec.gov. For periods ending prior to March 31, 2019, this information was filed on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s EDGAR database on its website at http://www.sec.gov.

The following information is in regards to expenses for the six months ended December 31, 2019:

As a shareholder of the Funds, you incur ongoing costs, including advisory fees, distribution and/or service (12b-1) fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested for the six months ended December 31, 2019.

The first four columns of the table below provide information about actual account values and actual expenses. You may use this information, 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 under the heading entitled “Operating Expenses Incurred” to estimate the expenses you paid on your account during this period.

The last two columns of the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the last two columns of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Choose the investments you feel are right for you – and seek professional guidance

If you work with a financial professional, you may wish to consider reaching out to him or her for assistance in helping you ensure:

What is the investment approach of MML Blue Chip Growth Fund, and who is the Fund’s subadviser?

The Fund seeks long-term capital growth. Income is a secondary objective. Under normal circumstances, the Fund invests at least 80% of net assets (plus the amount of any borrowings for investment purposes) in the common stocks of large- and medium-sized blue chip growth companies. The Fund’s subadviser currently defines blue chip growth companies to mean firms that, in its view, are well-established in their industries and have the potential for above-average earnings growth. The Fund’s subadviser is T. Rowe Price Associates, Inc. (T. Rowe Price).

The Fund’s Initial Class shares returned 29.84%, substantially underperforming the 36.39% return of the Russell 1000^® Growth Index (the “benchmark”), which measures the performance of the large-cap growth segment of U.S. equity securities. It includes the Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. In addition, the Fund underperformed the 31.49% return of the S&P 500^® Index, which measures the performance of 500 widely held stocks in the U.S. equity market.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2019, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the year ended December 31, 2019, stock selection was the primary driver of the Fund’s underperformance, relative to the benchmark, as Fund holdings in the information technology, health care, and financials sectors were the key laggards for the year.

Information technology was the largest relative underperformer, due to stock selection and an underweight position within the sector. The Fund’s underweight stake in strong-performing technology giant Apple detracted from relative performance, as its shares increased in value during the year, spurred by accelerating growth of services and wearables, along with improving conditions for iPhone sales in China. The Fund maintained its underweight position in Apple, relative to the benchmark, due to Fund management’s concerns over saturation and elongation of replacement cycles for smartphones and Apple’s ability to monetize its installed base of users, as hardware has been reaching parity and operating systems have become less differentiated. The health care sector also detracted from the Fund’s results on a relative basis, due to an unfavorable overweight position.

Financials hampered the Fund’s relative returns, due to less-than-favorable stock selection. Shares of Fund holding TD Ameritrade underperformed due to unfavorable interest rate cuts by the Federal Reserve Board (the “Fed”) and fee pressure among online brokers that eventually led the company to drop its trading commissions to zero.

The consumer staples and real estate sectors were the largest contributors to the Fund’s relative performance for the year. The Fund’s underweight allocation to consumer staples proved beneficial for its full-year results. The real estate sector also bolstered relative returns, due to its beneficial underweight position within the Fund’s portfolio, although this positive impact was partially offset by detrimental stock selection.

For Fund management, the long duration of the current bull market is not a particular concern. Their view is that, rather than dying of old age, bull markets often succumb to one of four ills: an economic downturn, regulatory or policy uncertainty, Fed policy errors, or valuation excess. On balance, Fund management believes that current signals suggest slightly positive returns for the market in 2020, with a highly accommodative Fed likely having the potential to offset any significant volatility caused by the regulatory and political environment. Nevertheless, they believe that the possibility of extreme outcomes in either a negative or positive direction appears higher than in recent years.

What is the investment approach of MML Equity Income Fund, and who is the Fund’s subadviser?

The Fund seeks dividend income and long-term capital growth by investing primarily in common stocks, with an emphasis on large-capitalization companies that have a strong track record of paying dividends or that the Fund’s subadviser believes to be undervalued. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in common stocks. The Fund’s subadviser is T. Rowe Price Associates, Inc. (T. Rowe Price).

The Fund’s Initial Class shares returned 26.45%, underperforming the 26.54% return of the Russell 1000^® Value Index (the “benchmark”), which measures the performance of the large-cap value segment of U.S. equity securities. It includes the Russell 1000 Index companies with lower price-to-book ratios and lower expected growth values. The Russell 1000 Value Index became the Fund’s benchmark on May 1, 2019, because the Russell 1000 Value Index more closely represents the Fund’s investment strategy than does the Fund’s former benchmark, the S&P 500 Index. In addition, the Fund underperformed the 31.49% return of the S&P 500^® Index, which measures the performance of 500 widely held stocks in the U.S. equity market.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2019, please see the Economic and Market Review, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the year ended December 31, 2019, stock selection in the communication services sector detracted from the Fund’s relative performance. Shares of Fund holding Telefonica, a Spanish multinational telecommunications company based in Madrid, underperformed during the year. The company’s returns suffered due to unfavorable changes in foreign exchange rates related to Argentina and Great Britain and less-than-favorable performance of the broader Spanish telecommunications sector due to an increasingly competitive landscape.

Fund holdings in the materials sector also weighed on the Fund’s relative performance. Shares of DuPont de Nemours traded lower as a result of falling commodity chemical input prices, slowing demand in end markets, and the announced merger of DuPont’s Nutrition and Biosciences segment with International Flavors & Fragrances.

Overall, the Fund’s security selection was the primary contributor to favorable relative returns. Fund holdings in the consumer staples, information technology, and energy sectors were the largest relative contributors. Within consumer staples, Tyson Foods continued to benefit from the ongoing effects of African swine fever, causing global animal protein prices to rise in the wake of the outbreak, and the reopening of the Chinese market to U.S. poultry sales later in the year. This Fund holding has enjoyed accelerating growth in the prepared foods market and strong long-term earnings prospects.

Fund holdings in the information technology sector also aided relative performance. Shares of Qualcomm finished higher as a result of the chip manufacturer reaching a multibillion-dollar settlement with Apple in the second quarter of 2019, followed by a strong revenue report later in the year. Similarly, the energy sector bolstered relative returns due to the Fund’s beneficial stock choices, such as TC Energy.

As of December 31, 2019, the Fund held no derivatives, although it did hold index futures and rights at other points during the period. (Index futures are futures contracts that allow investors to buy or sell a financial index today to be settled at a date in the future. Rights give stockholders the ability to buy stock at a predetermined price, normally at a discount, in proportion to the number of shares already owned. Rights are issued only for a limited time, after which they expire.) The return impact from employing rights and futures was negligible.

Fund management believes that caution is warranted in light of the current balance of risks in the marketplace. While a strong consumer and more accommodative monetary policy provide support for economic growth, they believe regulatory and political risks could be elevated in 2020. Given neutral valuations, they expect positive, but muted, returns for the equity market in 2020, coupled with the potential for more extreme outcomes. Share price appreciation in recent periods has made pockets of attractive investment opportunities tougher to come by. Despite this challenging environment, Fund management has identified attractively valued investment opportunities through bottom-up, fundamental analysis and continues to maintain a disciplined, longer-term approach, while also taking advantage of volatility to selectively add shares of high-quality companies to the Fund’s portfolio.

What is the investment approach of MML Equity Index Fund, and who is the Fund’s subadviser?

The Fund’s investment objective is to provide investment results that correspond to the price and yield performance of publicly traded common stocks in the aggregate as represented by the S&P 500^® Index* (the “Index”). Under normal circumstances, the Fund invests at least 80% (and, typically, substantially all) of its net assets (plus the amount of any borrowings for investment purposes) in the equity securities of companies included within the Index. The Fund’s subadviser is Northern Trust Investments, Inc. (NTI).

The Fund’s Class I shares returned 30.86%, underperforming the 31.49% return of the Index, which measures the performance of 500 widely held stocks in the U.S. equity market.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2019, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

Generally, the Fund’s underperformance versus the Index was mainly attributable to the impact of fees and expenses necessary for the management and operation of the Fund. The Index is not subject to fees or expenses and it is not possible to invest directly in the Index.

For the year ended December 31, 2019, information technology and communication services were the strongest-performing sectors within the Index, returning 50% and 33%, respectively. The energy and health care sectors exhibited the worst performance, returning 12% and 21%, respectively.

Despite muted economic growth and flat-to-negative earnings growth, 2019 was the best year for U.S. equities since 2009. After a decline in the fourth quarter of 2018 that brought valuations near their long-term historical averages, the markets started the year from a low base. When considering the low interest rate environment, such valuations were attractive, but investor growth expectations were low. Investors believed the global economy would suffer from U.S.-China trade tensions. Further, they were unconvinced that central banks were willing to do anything about it. In fact, there was concern that the U.S. Federal Reserve Board (the “Fed”) would continue raising interest rates.

As investors navigated 2019, they began to realize that things weren’t so dire. First, U.S.-China trade tensions were hurting the manufacturing sector, but the services sector – a much larger percentage of the global economy – was doing reasonably well, thwarting a recession. Second, despite widespread concerns that tariffs would push prices higher, inflation remained low. In fact, inflation was too low for central bankers’ liking – and led them to ultimately relent on their monetary policy tightening campaigns. The Fed cut rates three times during 2019, contravening expectations at the start of the year that more rate hikes were inevitable. Finally, the fourth quarter of 2019 brought a U.S.-China “phase one” trade agreement, which removed some political uncertainties and capped a year that easily surpassed low expectations.

Fund management notes that the combination of strong equity returns and flat-to-negative earnings growth has resulted in valuations that are back to levels found prior to 2018’s fourth quarter decline. In their view, these elevated valuations have the potential to be supported if: global growth can continue as political uncertainties are reduced, allowing for a resumption of global equity earnings growth, and inflation remains tame, allowing for a continuation of the accommodative monetary policy reinstated in 2019.

* The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by MML Advisers. Standard & Poor’s^®, S&P^® and S&P 500^® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones^® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by MML Advisers. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.

What is the investment approach of MML Focused Equity Fund, and who is the Fund’s subadviser?

The Fund seeks growth of capital over the long-term by investing primarily in equity securities of U.S. companies that the Fund’s subadviser believes are financially sound, valued conservatively by the market, and have improving prospects. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in equity securities. The Fund is non-diversified, which means that it may hold larger positions in a smaller number of stocks than a diversified fund. The Fund’s subadviser is Wellington Management Company LLP (Wellington Management).

The Fund’s Class II shares returned 30.15%, underperforming the 31.43% return of the Russell 1000^® Index (the “benchmark”), which measures the performance of the large-cap segment of U.S. equity securities. It is a subset of the Russell 3000^® Index and includes approximately 1000 of the largest securities based on a combination of their market cap and current index membership.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2019, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the year ended December 31, 2019, weak sector allocation, a residual of the Fund’s bottom-up stock selection process, detracted from the Fund’s relative performance. Its underweight allocation, relative to the benchmark, to the information technology sector and an overweight stake in the health care sector weighed on the Fund’s relative results. Security selection partially offset the allocation effect, with strong stock choices in the health care and materials sectors outweighing weak stock selection in the industrials and consumer staples sectors.

Top relative detractors from the Fund’s performance for the period included Fund holdings McDonald’s (consumer discretionary) and Public Storage (real estate), as well as not owning benchmark constituent Apple (information technology), which posted strong returns over the period. Shares of McDonald’s, a multinational fast food restaurant chain, gained on strong earnings in the first two quarters and solid growth in same-store revenues. However, the stock declined in the fourth quarter after CEO Steve Easterbrook was fired. Prior to his termination, Easterbrook had driven innovation to boost same-store sales through smartphone apps, online pay, and food delivery. Public Storage, a self-storage facilities provider, declined toward the end of the year after releasing third-quarter earnings that missed consensus estimates. The company showed improved profit, but revenue and funds from operations fell short of expectations.

Fund holdings that were among the top relative contributors to the Fund’s full-year performance were American Tower (real estate) and Danaher (health care). Shares of American Tower (AMT), a leading independent owner, operator, and developer of multi-tenant communications real estate, traded higher on strong earnings over the last three quarters. Earlier in the year, the company acquired Eaton Towers in a push to take advantage of accelerating mobile phone usage and the rollout of 4G technology in Africa. In September, AT&T signed a new master lease agreement with AMT, pushing shares up another 3%. Shares of Danaher, a provider of medical equipment, climbed early in the year on the announcement of a deal to acquire General Electric’s biopharma unit, putting Danaher at the forefront of biotechnology equipment makers. Strong earnings and the announced split-off of dental business Envista further benefited the stock.

Fund management believes there is no shortage of research showing dividend growth as a disproportionate contributor to the absolute returns among stocks versus other sources, like yield and valuation adjustments. Over certain periods, dividend growth has accounted for nearly two-third of returns. Over more recent periods the percentage has been smaller, owing to the massive expansion of valuation in the current low rate environment. Over long periods (three or more years) it appears inarguable to Fund management that dividend growth reigns supreme.

At the end of the period, the Fund had its largest overweight allocation to the consumer staples and health care sectors, and its greatest underweight stakes in the information technology and communication services sectors.

What is the investment approach of MML Foreign Fund, and who is the Fund’s subadviser?

The Fund seeks long-term capital growth by investing, under normal circumstances, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in investments of issuers located outside of the U.S., including those in emerging markets. Under normal market conditions, the Fund invests predominantly in equity securities, primarily to predominantly common stocks, and, while there are no set percentage targets, the Fund invests predominantly in large- to medium-capitalization companies with market capitalization values greater than $2 billion and may invest a portion in smaller companies. The Fund’s subadviser is Templeton Investment Counsel, LLC (Templeton). Effective January 7, 2020, Thompson, Siegel & Walmsley LLC replaced Templeton as the subadviser of the Fund. Also, effective January 7, 2020, the Fund’s investment approach changed to the following:

The Fund seeks long-term total return by investing primarily in common stocks of companies listed on foreign securities exchanges. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in investments of issuers located outside of the U.S., including those in emerging markets. Under normal market conditions, the Fund invests in equity securities of foreign companies representing at least three countries other than the United States. Although the Fund may invest in companies of any size as measured by assets, sales, or market capitalization, the Fund will tend to focus on larger, more seasoned or established companies.

The Fund’s Initial Class shares returned 13.17%, underperforming, by a wide margin, the 21.51% return of the MSCI All Country World Index (ACWI) ex USA (the “benchmark”), which measures the performance of the large- and mid-cap segments of the particular regions, excluding U.S. equity securities, including developed and emerging markets.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2019, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the year ended December 31, 2019, stock selection in Asia and Europe hindered the Fund’s performance relative to the benchmark. Within those regions, China, Japan, and Germany were the largest relative detractors. The Fund’s stock selection and an overweight allocation to Israel (relative to the benchmark), the only country in the Middle East held by the Fund at year end, also detracted from relative performance.

The Fund’s stock selection and its overweight stake in communication services hurt relative results. Within that sector, Fund holdings that were significant detractors included Chinese wireless and mobile services provider China Telecom, Luxembourg-based satellite communications firm SES, and Chinese search engine provider Baidu. Fund holdings in health care also hindered relative performance, with Israeli pharmaceutical company Teva Pharmaceutical Industries significantly detracting from results. In energy, stock selection and an overweight allocation to the sector also hurt results. Specifically, Italian multinational oil and gas company Eni was a notable detractor from the Fund’s full-year performance.

While no regions as a whole contributed to the Fund’s relative results, its overweights stakes in France and the Netherlands, along with stock selection in South Korea, benefited relative performance. The Fund’s lack of exposure to Indian stocks also helped relative performance.

From a sector perspective, stock selection in the materials, financials, and information technology (IT) sectors contributed to relative performance. In materials, Fund holdings that were significant contributors included Canadian precious metals mining company Wheaton Precious Metals and Irish construction materials manufacturer and distributor CRH. French banking and financial services firm BNP Paribas was another Fund holding that contributed in the financials sector, while Dutch semiconductor manufacturer NXP Semiconductors was an IT holding that helped drive the Fund’s full-year performance.

Fund management believes that one counterintuitive characteristic of financial markets is that the better things seem, the riskier they may be. Fund management resolves to avoid complacency, and plans to continue to take profits at that point in the cycle where and when Fund management believes it appears fundamentally warranted. However, they also plan to remain invested in equity markets with a focus, in the words of founder, Sir John Templeton, on “those stocks having the lowest prices in relation to possible earning power of future years.”

What is the investment approach of MML Fundamental Growth Fund, and who is the Fund’s subadviser?

The Fund seeks long-term growth of capital by investing primarily in domestic equity securities that the Fund’s subadviser believes offer the potential for long-term growth. The Fund’s subadviser is Wellington Management Company LLP (Wellington Management).

The Fund’s Class II shares returned 33.74%, underperforming the 36.39% return of the Russell 1000^® Growth Index (the “benchmark”), which measures the performance of the large-cap growth segment of U.S. equity securities. It includes the Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2019, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the year ended December 31, 2019, security selection within the information technology, consumer discretionary, and communication services sectors was the primary driver of the Fund’s underperformance. Stronger stock selection within the industrials and health care sectors partially offset the less-than-favorable results. Sector allocation, a residual of the Fund’s bottom-up stock selection process, contributed to relative performance due to the Fund’s overweight exposure, relative to the benchmark, to the information technology sector. The Fund’s underweight exposure to the energy sector also contributed, although this was partially offset by an underweight stake in the industrials sector.

Fund holdings that were the top detractors from relative performance included Apple (information technology), in which the Fund had an underweight stake, and Biogen (health care), in which the Fund had an overweight stake. Apple advanced during the period, reporting positive fourth-quarter results and beating consensus estimates. The company benefited from a surge in sales in its wearables market. Biogen is a U.S.-based biotechnology company. Shares declined in the first quarter after Biogen announced it would discontinue two late-stage Alzheimer’s drug trials. In the fourth quarter, shares of Biogen rebounded after a new analysis of additional data from the two failed clinical trials showed promising results. The company plans to resubmit the drug for FDA approval.

Fund holdings that were top contributors to benchmark-relative returns included UnitedHealth Group (health care) and Global Payments (information technology). Shares of UnitedHealth Group advanced during the period, as the company continued to benefit from improving investor sentiment for the managed care group. Global Payments is a U.S.-based provider of payment technology services. The company recently reported strong third-quarter results ahead of expectations and raised annual guidance on better margins. Global Payments also raised the expectation of synergies from its merger with TSYS, which provided a boost to consensus 2020 earnings per share estimates.

As we head into 2020, Fund management’s economic outlook for the U.S. remains healthy. The consumer appears strong, as reflected by solid job growth and retail sales, low interest rates, and high net worth. U.S. industrial production appears to be stabilizing and Fund management sees several catalysts for future growth. They anticipate that the U.S. Federal Reserve Board will continue to stimulate the economy, as U.S. growth converges with the rest of the world and inflation remains low.

At the end of the year, the Fund’s largest overweight allocations were to the financial services and industrials sectors, and its greatest underweight stakes were in the consumer staples and consumer discretionary sectors.

What is the investment approach of MML Fundamental Value Fund, and who is the Fund’s subadviser?

The Fund seeks long-term total return by investing primarily in equity securities of issuers that the Fund’s subadviser believes are undervalued. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in equity securities, with a focus on companies with large market capitalizations (which the subadviser believes are generally above $1 billion). The Fund’s subadviser is Boston Partners Global Investors, Inc. (Boston Partners), which replaced Wellington Management Company LLP (Wellington Management) effective February 5, 2019.

The Fund’s Class II shares returned 22.79%, underperforming the 26.54% return of the Russell 1000^® Value Index (the “benchmark”), which measures the performance of the large-cap value segment of U.S. equity securities. It includes the Russell 1000 Index companies with lower price-to-book ratios and lower expected growth values.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2019, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the portion of the year that Wellington Management served as subadviser of the Fund (January 1, 2019–February 4, 2019), stock selection in the information technology, industrials, and energy sectors detracted from the Fund’s performance, while strong security selection in the financials, consumer staples, and health care sectors was the primary driver of the Fund’s strong absolute returns.

For the part of the year that Boston Partners served as subadviser of the Fund (February 5, 2019–December 31, 2019), stock selection in the information technology (IT), health care, and communication services sectors detracted from relative performance. IT services company DXC Technology was one Fund holding that detracted from relative returns after the company announced better revenues than expected, but at the expense of lower operating margins. (Boston Partners Fund management subsequently eliminated DXC Technology from the Fund’s portfolio.) In the health care sector, health insurers Cigna and CVS were two Fund holdings that underperformed during the first nine months of the year due to merger integration concerns and fear of nationalized health care. Both companies rebounded in the fourth quarter, as they continued to exceed earnings expectations and the prospects for “Medicare for All” diminished. In the communication services sector, owning Verizon instead of AT&T also hurt the Fund’s relative returns. During the reporting period, the Fund’s sector allocations proved positive for performance, mainly due to the Fund’s underweight positioning in the real estate sector and its overweight stake in the industrials sector.

During the period, Boston Partners increased the Fund’s exposure to the health care and consumer discretionary sectors, while reducing its allocations to the industrials and consumer staples sectors. Boston Partners believes that over time, the Fund will benefit from Fund management’s focus on low-valuation, high-quality, and improving business momentum.

What is the investment approach of MML Global Fund, and who is the Fund’s subadviser?

The Fund seeks long-term capital appreciation by investing primarily in the equity securities of U.S. and foreign companies, including companies in developed and emerging markets. The Fund may invest a significant percentage of its assets in issuers in a single industry, sector, country, or region. The Fund’s subadviser is Massachusetts Financial Services Company (MFS).

The Fund’s Class I shares returned 30.59%, outperforming the 27.67% return of the MSCI World Index (the “benchmark”), which measures the performance of the large- and mid-cap segments of world equity securities.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2019 please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the year ended December 31, 2019, security selection within the health care, industrials, and consumer discretionary sectors contributed to the Fund’s performance relative to the benchmark. Within the health care sector, the Fund’s overweight positions, relative to the benchmark, in precision instruments manufacturer Olympus (Japan), life sciences supply company Thermo Fisher Scientific, and orthopedic products maker Zimmer Biomet benefited relative performance. The Fund’s avoidance of poorly performing pharmaceutical giant Pfizer further aided relative returns, as that stock underperformed the benchmark during the period. Within the industrials sector, the Fund’s overweight investments in railroad company Kansas City Southern and electrical distribution equipment manufacturer Schneider Electric (France) helped relative returns. Within the consumer discretionary sector, an overweight to luxury goods company LVMH (France) further lifted the Fund’s relative results.

Elsewhere, the Fund’s overweight positions in information technology (IT) servicing firm Accenture, global payments technology company Visa, and beauty products company Coty positively impacted relative performance for the year, although Coty was no longer a Fund holding at year end.

Security selection in the IT sector hurt relative performance during the reporting period. There, the Fund’s avoidance of the strongly performing computer and personal electronics maker Apple and software giant Microsoft held back relative returns. The Fund’s overweight holdings of custom IT consulting and technology services provider Cognizant Technology Solutions and security software provider Check Point Software Technologies (Israel) further hurt relative returns.

Fund holdings in other sectors also negatively impacted relative returns for the year. These included overweight positions in diversified technology company 3M, household products manufacturer Reckitt Benckiser (United Kingdom), wine and alcoholic beverage producer Pernod Ricard (France), and global financial services provider Bank of New York Mellon. Not holding shares of the strongly performing social media giant Facebook also detracted from relative performance, as the stock price outperformed the benchmark during the reporting period.

The Fund’s cash and/or cash equivalents position also detracted from relative performance during the period. Under normal market conditions, the Fund strives to be fully invested and generally holds cash to buy new holdings and to provide liquidity. In a period when equity markets appreciated, holding cash hurt performance versus the benchmark, which has no cash position.

Fund management believes that the current drumbeat of global stimulus could continue, as interest rates and inflation levels remain subdued, while the consumer continues to spend. However, their view is that the economy is exhibiting late-cycle dynamics, which bears watching and places increased importance on diligent and insightful security selection. They believe that we remain in a “muddle-through” economic environment of low growth, low inflation, and low interest rates, along with high political uncertainty. In such an environment, Fund management continues to favor the areas of consumer staples (strong brands, organic growth, and stable earnings), medical equipment (above-average growth, less relative pricing pressures, and aging demographics), and the emerging-markets consumer (rising wages and growing middle class) via multinational companies. The Fund maintains its long-term investment horizon and Fund management remains focused on owning companies with above-average growth and return prospects at reasonable valuations.

What is the investment approach of MML Growth & Income Fund, and who is the Fund’s subadviser?

The Fund seeks capital appreciation and income by investing, under normal circumstances, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in equity securities and equity-related securities, including convertible securities, preferred stocks, options, and warrants, of U.S. companies with market capitalizations at the time of purchase greater than $1 billion. The Fund’s subadviser is Massachusetts Financial Services Company (MFS).

The Fund’s Initial Class shares returned 32.10%, outperforming the 31.49% return of the S&P 500^®Index (the “benchmark”), which measures the performance of 500 widely held stocks in the U.S. equity market.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2019, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the year ended December 31, 2019, stock selection in the health care, financials, and consumer discretionary sectors contributed to the Fund’s performance relative to the benchmark. Within the health care sector, not owning shares of pharmaceutical giant Pfizer and the Fund’s overweight position, relative to the benchmark, in health care tools company Danaher aided relative returns. Within the financials sector, the Fund’s position in global alternative asset manager Blackstone Group (not a benchmark constituent) and not owning shares of insurance and investment firm Berkshire Hathaway supported relative performance. Within the consumer discretionary sector, the Fund’s investment in luxury goods company LVMH (France), which the Fund sold before year end, and not owning shares of internet retail giant Amazon also helped relative performance. Fund holdings in the materials sector further boosted relative results, led by consumer goods packaging products manufacturer Crown Holdings, which is not represented in the benchmark.

In other sectors, the Fund’s overweight positions in broadcast and communication tower management firm American Tower and debit and credit card transaction processing company Mastercard bolstered relative results. Additionally, not owning shares of integrated oil and gas company ExxonMobil helped relative performance.

Security selection detracted from the Fund’s full-year relative performance in the information technology (IT) sector. The Fund’s underweight positions in computer and personal electronics maker Apple and software giant Microsoft, as well as its overweight positions in IT company DXC Technology and custom IT consulting and technology services provider Cognizant Technology Solutions, detracted from the Fund’s performance. The Fund eliminated DXC Technology from its portfolio by year end.

Stock selection in the energy sector also weighed on the Fund’s relative performance. Within the sector, an overweight position in energy exploration and production company EOG Resources and the Fund’s position in core and fluid analysis provider in the petroleum industry Core Laboratories (Netherlands), which is not a benchmark constituent, detracted from performance.

Elsewhere, the timing of the Fund’s ownership of shares in biotechnology company Biogen and commercial products manufacturer Newell Brands detracted from relative performance. Additionally, Fund holdings TD Ameritrade, an electronic brokerage firm not represented in the benchmark, and wine and alcoholic beverage producer Pernod Ricard (France), also not a benchmark constituent, weakened relative returns. Fund management eliminated both Biogen and Newell Brands from the Fund’s portfolio before year end.

Fund management believes that stock prices moved higher in 2019 in anticipation of improving earnings. As we head into 2020, they believe that earnings growth will be required for the market to continue to move higher. Their view is that, even if earnings rebound, with U.S. elections looming and the potential for geopolitical tensions, the markets are at risk. Fund management will continue to build the Fund’s portfolio stock by stock, while continuing to seek investment opportunities that Fund management believes have the potential to drive performance over the long term.

What is the investment approach of MML Income & Growth Fund, and who is the Fund’s subadviser?

The Fund seeks long-term total return and current income by investing primarily in equity securities of issuers that the Fund’s subadviser believes are undervalued. Although the Fund may invest in companies of any size, the Fund will tend to focus on companies with large market capitalizations (which the Fund’s subadviser believes are generally above $2 billion). The Fund’s subadviser is Barrow, Hanley, Mewhinney & Strauss, LLC (Barrow Hanley).

The Fund’s Initial Class shares returned 24.43%, underperforming the 26.54% return of the Russell 1000^® Value Index (the “benchmark”), which measures the performance of the large-cap value segment of U.S. equity securities. It includes the Russell 1000 Index companies with lower price-to-book ratios and lower expected growth values.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2019, please see the Economic and Market Review, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the year ended December 31, 2019, growth benchmarks outperformed their value counterparts by a significant margin, and domestic benchmarks outperformed their non-U.S. peers – although emerging markets rallied sharply in the fourth quarter. Within U.S. markets, the technology sector continued its long-standing dominance, rising more than 50% in the past year alone. While financials, communication services, and industrials had their best year of performance in quite some time, energy stocks trailed the market and were ultimately the worst-performing sector. Further, in a notable shift in sentiment, the “bond proxy” defensive sectors (i.e., real estate, utilities, and consumer staples) lagged significantly in the fourth quarter after holding sustained leadership positions for most of 2019.

The Fund’s allocation to the real estate sector detracted from its performance relative to the benchmark. Specifically, Fund holding Simon Property Group, Inc. (SPG) underperformed, driven in part by the market’s late-year rotation out of real estate investment trusts (REITs) into higher-beta sectors. With high-quality Class A assets, a premier balance sheet, and its consistent free cash flow generation, Fund management believes SPG is a compelling value stock within REITs.

Fund holdings within the consumer discretionary sector added to the Fund’s relative performance for the year. Specifically, Royal Caribbean Cruises Ltd. (RCL), the world’s second-largest cruise line, contributed to results, as RCL continued to provide travelers with unique and authentic experiences, most notably via its world-class water park (called “Perfect Day”) on RCL’s private island, CocoCay. Perfect Day at CocoCay has contributed not only to increased on-board/on-island revenues, but also meaningful ticket premiums for those ships visiting the island. Recently, RCL announced the second resort in the “Perfect Day Collection,” with plans to expand the collection in the future.

Fund management notes that this bull market has not produced the euphoria seen in past cycles, as many retail investors have been cautious to the point of not fully participating in the market’s advance. They do believe that there is, however, a growing degree of complacency among stock investors that is concerning. In their view, interest rates have been so much lower, for so much longer than expected, that the consensus thinking is that the trend could continue indefinitely. A belief that rates will be “lower for longer” generally drives investors to also believe that growth stock investing will continue to outperform value, despite valuation premiums for growth stocks that Fund management believes are increasingly risky.

Fund management believes that today’s “superstars” and market leaders within the equity world could be very different from those that will emerge within the next decade. Fund management’s view is that the consensus thinking that drives certain stocks to the top weightings in the indexes rarely proves as profitable in the decade that follows.

What is the investment approach of MML International Equity Fund, and who is the Fund’s subadviser?

The Fund seeks long-term capital growth by investing, under normal circumstances, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in equity securities of non-U.S. companies located in non-U.S. markets throughout the world, including emerging markets. The Fund may invest a substantial portion of its assets in just one region or country and may, but does not currently intend to, invest in U.S. companies. Ordinarily, the Fund’s portfolio typically holds thirty to sixty stocks and the Fund invests in the securities of at least five countries outside the U.S. The Fund’s subadviser is Harris Associates L.P. (Harris).

The Fund’s Class II shares returned 24.63%, outperforming the 22.49% return of the MSCI World Index ex USA (the “benchmark”), which measures the performance of the large-and mid-cap segments of world, excluding U.S. equity securities.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2019, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

As the Fund uses a bottom-up approach in selecting stocks, country and sector allocations are a result of the Fund’s stock selection process. With respect to country and sector performance relative to the benchmark, both stock selection and weightings drove the Fund’s outperformance for the year ended December 31, 2019.

From a geographic perspective, stock selection in the U.K., Japan, and Sweden produced the best benchmark-relative performance for the year. In addition, the U.K. and Sweden were the largest contributors to the Fund’s absolute return, as all but one of the Fund holdings in these geographies gained value. Capital goods firm Ashtead Group (+56%) and aerospace and defense company Meggitt (+50%) generated the largest absolute returns in the U.K., while specialty and apparel retail company H&M (+49%) and industrial machinery firm SKF (+37%) posted the top absolute returns in Sweden.

The Fund’s positions in Germany, Switzerland, and France detracted most from its relative performance. However, these geographies were positive contributors to the Fund’s absolute return, as six of eight Germany-based holdings, six of seven Switzerland-based holdings, and seven of eight France-based holdings gained value for the year.

The best relative performance for 2019 came from Fund holdings in the financials sector, as 11 of 12 underlying holdings generated positive absolute returns, led by asset management and custody bank firm Schroders (+48%), diversified financial services company EXOR (+44%), and banking firm BNP Paribas (+38%). The energy and industrials sectors produced the next-best relative returns for the year.

The materials sector detracted the most from relative results, though its collective absolute return was positive, owing to four of six underlying Fund holdings that posted double-digit returns. Consumer discretionary and communications services were the only other sectors that detracted on a relative basis. All invested sectors delivered positive collective absolute performance and contributed to the Fund’s total return for the period.

Derivatives are securities that derive their value from the performance of one or more other investments and take the form of a contract between two or more parties. Derivatives can be used for hedging, speculation, or both. As of year end, the Fund held hedges on the Swiss franc. Approximately 10% of the Fund’s exposure to the Swiss franc was hedged, on Fund management’s belief that the currency had appreciated above the range of its intrinsic value as measured by purchasing power parity and other economic fundamentals. Currency hedges detracted slightly from the Fund’s performance for the year.

Market volatility prevailed around the world during the year, but the fourth quarter of 2019 brought a steady recovery in global markets. Fund management is prepared to confidently navigate a wide array of macro environments. They apply the same disciplined investment approach when markets advance as well as when markets retreat. Consistent implementation of Fund managements’ philosophy and intensive research process offers good upside potential. Fund management continues to stay alert for attractive investment opportunities. Despite the rebound, Fund management still believes their investment approach offers good upside potential.

What is the investment approach of MML Large Cap Growth Fund, and who is the Fund’s subadviser?

The Fund seeks long-term capital appreciation by investing primarily in large-capitalization companies that the Fund’s subadviser believes offer the potential for long-term growth. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in the common stocks of companies whose market capitalizations at the time of purchase are within the market capitalization range of companies included in the Russell 1000^® Growth Index. The Fund’s subadviser is Loomis, Sayles & Company, L.P. (Loomis Sayles).

The Fund’s Initial Class shares returned 31.99%, underperforming the 36.39% return of the Russell 1000 Growth Index (the “benchmark”), which measures the performance of the large-cap growth segment of U.S. equity securities. It includes the Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2019, please see the Economic and Market Review, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the year ended December 31, 2019, stock selection in the information technology, industrials, and consumer staples sectors detracted from the Fund’s performance, relative to the benchmark. Also hampering full-year returns was the Fund’s allocation to the consumer staples, information technology, energy, consumer discretionary, health care, communication services, and financials sectors. Stock selection in the consumer discretionary, communication services, financials, and energy sectors – as well as the Fund’s allocation to the industrials sector – contributed positively to relative returns.

With respect to specific Fund holdings, Facebook and Alibaba were the top contributors to returns for the year; Alcon was the only detractor and United Parcel Service (UPS) was the smallest contributor.

In April 2019, Novartis completed a spinoff of its Alcon eye care division to shareholders. This benefited the Fund, as Novartis was a Fund holding at the time. Subsequently, Alcon, the newly public company, had modestly negative returns for the period. Fund management substantially trimmed the Fund’s position in Alcon in favor of better reward-to-risk opportunities. UPS is the world’s largest package delivery company and a leading global provider of specialized transportation and logistics services. The Fund sold its position in UPS in January 2019 because UPS had approached Fund management’s estimate of intrinsic value. As a result of the company’s substantial appreciation following its elimination from the Fund’s portfolio, UPS was among the lowest contributors to the Fund’s performance for the year. The Fund used the proceeds from the sale of UPS to initiate a position in Nvidia Corporation, the world leader in visual computing that enables computers to produce and utilize highly realistic three-dimensional graphic imagery and models. Nvidia ultimately returned 62% for the year and was a top ten contributor to the Fund’s performance.

With respect to Facebook, a Fund holding since its IPO in 2012, the social media company reported strong and above-expectation growth in revenue. Despite reporting in July that it had reached a $5 billion settlement with the U.S. Federal Trade Commission (FTC) regarding its privacy practices and that the FTC has also opened an antitrust investigation, Facebook continued to grow its global user base, and user engagement remained solid. In addition, demand from advertisers remained robust, and the company grew its average revenue per user throughout the year. With respect to Alibaba, the China e-commerce and consumer-engagement platform provider reported fundamentally strong results during the period. Alibaba’s revenue growth was in the mid double digits, well above Fund management’s estimates. Alibaba continued to execute well on its business model, allowing it to expand its already dominant market position and to invest in an effort to strengthen its competitive advantages.

The Fund’s investment process is characterized by bottom-up, fundamental research and a long-term investment time horizon. This process is designed to lead to a lower-turnover portfolio, where sector positioning is the result of stock selection. At year-end, the Fund was overweight, relative to the benchmark, in the consumer staples, consumer discretionary, health care, energy, and financials sectors – and underweight in the information technology, industrials, and communication services sectors. The Fund held no positions in the real estate or materials sectors. Fund management remains committed to its long-term investment approach to invest in those few high-quality businesses with sustainable competitive advantages and profitable growth when they trade at a significant discount to intrinsic value.

What is the investment approach of MML Managed Volatility Fund and who is the Fund’s subadviser?

The Fund seeks to capture the majority of the returns associated with equity market investments, while exposing investors to less risk than other equity investments. Under normal circumstances, the Fund invests in a broadly diversified portfolio of common stocks, while also selling index call options and purchasing index put options. The Fund’s stock portfolio will have approximately 500 stocks, and seeks to duplicate the investment composition and return of the S&P 500^® Index* (the “Index”) by holding each stock included in the Index in approximately the same proportion as each stock’s relative weighting in the Index. The Fund’s subadviser is Gateway Investment Advisers, LLC (Gateway).

The Fund’s Initial Class shares returned 11.90%, underperforming, by a wide margin, the 31.49% return of the Index, which measures the performance of 500 widely held stocks in the U.S. equity market. The Index is the Fund’s benchmark. The Fund outperformed the 8.72% return of the Bloomberg Barclays U.S. Aggregate Bond Index, which measures the performance of the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (MBS) (agency fixed-rate and hybrid ARM pass-throughs), asset-backed securities (ABS), and commercial mortgage-backed securities (CMBS).

For a discussion on the economic and market environment during the 12-month period ended December 31, 2019, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the year ended December 31, 2019, the Fund underperformed its benchmark, which Fund management generally expects in periods when the market has a strong advance combined with below-average implied volatility levels. The Fund’s two-part option strategy aims to consistently reduce risk and deliver equity market participation during market advances, while mitigating losses during market declines. The Fund returned 5.50% and 3.47% during the strong equity market advances of the first and fourth quarters, respectively – as compared to the Index’s first quarter return of 13.65% and fourth quarter return of 9.07% – generating the majority of the Fund’s underperformance for the year during those two time frames.

The Fund’s equity portfolio returned 31.74% in 2019, a performance differential of positive 0.25% versus the Index. Consistent with its investment objective, the measured risk of the Fund was low relative to the U.S. equity market, as its standard deviation of daily returns for 2019 was 5.81% versus 12.47% for the Index.

If current market and economic trends continue in 2020, Fund management believes that both the equity bull market and the U.S. economic expansion could be poised to enter their 12th consecutive year in March and July, respectively. While the economic expansion has already set a record for duration, the equity market begins 2020 just one and one-half years shy of the longest bull market on record. In Fund management’s view, a continuation of economic expansion, the equity bull market, and the low volatility trend is uncertain due to several potential threats, including domestic politics, geopolitical tensions, and monetary policy challenges.

Fund management’s investment philosophy is informed by its long history and maintains that the U.S. equity market is the most reliable source of attractive long-term returns, despite its high volatility relative to other asset classes and tendency to periodically deliver significant short-term losses. Their investment philosophy also holds that consistency is key to long-term success and that generating cash flow with index options, rather than by seeking to forecast the market, can be a lower-risk means to participate in equity markets. By staying true to this philosophy and continuing to manage strategies consistent with the firm’s historical approach, Fund management aims to assist Fund shareholders in managing risk while pursuing long-term returns in an uncertain environment.

What is the investment approach of MML Mid Cap Growth Fund, and who is the Fund’s subadviser?

The Fund seeks long-term capital appreciation by investing primarily in equity securities of mid-capitalization companies that the Fund’s subadviser believes offer the potential for above-average earnings growth. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in a broadly diversified portfolio of common stocks of mid-cap companies whose earnings the subadviser expects to grow at a faster rate than the average company. The Fund’s subadviser is T. Rowe Price Associates, Inc. (T. Rowe Price). Effective January 7, 2020, Wellington Management Company LLP was added as a subadviser of the Fund.

The Fund’s Initial Class shares returned 31.30%, underperforming the 35.47% return of the Russell Midcap^® Growth Index (the “benchmark”), which measures the performance of the mid-cap growth segment of the U.S. equity universe. It includes Russell Midcap Index companies with higher price-to-book ratios and higher forecasted growth values. The Fund outperformed, by a wide margin, the 26.20% return of the S&P MidCap 400^® Index, which measures the performance of mid-sized U.S. companies, reflecting the distinctive risk and return characteristics of this market segment. It comprises stocks in the middle capitalization range, covering approximately 7% of the U.S. equity market.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2019, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the year ended December 31, 2019, broadly speaking, sector allocation detracted from the Fund’s performance. At the sector level, energy, financials, and information technology detracted from benchmark-relative returns, while health care and materials aided relative results.

The energy sector was the largest detractor from the Fund’s relative performance, due to stock selection and an overweight position in the sector, relative to the benchmark. Shares of Fund holding Concho Resources fell over the summer, after experiments to test new spacing techniques for drilling failed, resulting in disappointing earnings and guidance. The failure translated into lower-than-expected productivity, sparking concern in the market about the quality of the company’s assets, and management’s ability to execute.

In financials, security selection weighed on relative results, driven by TD Ameritrade. Shares of this Fund holding were volatile over the period, falling precipitously in September before rebounding sharply in November to close out the year on a slightly positive note. Despite the recovery, TD Ameritrade’s shares failed to keep pace with the outperforming financials sector, and the Fund holding ultimately detracted from the Fund’s relative performance. The online broker industry was roiled by peer-driven fee compression, and shares of TD Ameritrade and others plummeted after competitor Charles Schwab announced a plan to take commissions to $0. (TD Ameritrade was highly exposed to fee-based commissions.) Information technology also hampered the Fund’s relative returns due to an underweight allocation to the sector, although favorable stock choices within the sector moderated the negative impact.

In contrast, the health care sector was the leading contributor to the Fund’s relative performance due to strong stock selection. Catalent, a provider of contract manufacturing services to the pharmaceutical industry, advanced on the April news that the Fund holding would acquire market-leading gene therapy contract development and manufacturing organization (CDMO) Paragon Bioservices in an all-cash transaction. The market viewed the acquisition favorably, as it would give Catalent access to high-quality assets with scarcity value in the fast-growing CDMO technologies space.

Security selection in materials also aided relative returns, although the positive impact was partially offset by an adverse overweight allocation. Within the sector, metal and glass containers manufacturer Ball Corp. was one Fund holding that drove the Fund’s relative performance.

Fund management regards the Federal Reserve Board’s (the “Fed”) 2019 rate cuts as an extension of the extraordinary monetary easing that has afforded U.S. companies nearly cost-free financing for the past several years. As a result, they believe that many companies with weak business models or uncertain profitability prospects (that could have ordinarily gone out of business due to lack of available or affordable financing) have been bid up by risk-oblivious investors, putting off a potentially inevitable correction. Fund management cannot predict when the market’s exuberance will end, but does believe that caution is warranted and that the Fund’s fundamentals-based, valuation-sensitive approach to growth investing has the potential to reward investors in the long run.

What is the investment approach of MML Mid Cap Value Fund, and who is the Fund’s subadviser?

The Fund seeks long-term capital growth. Income is a secondary objective. The Fund invests primarily in equity securities of mid-capitalization companies that the Fund’s subadviser believes offer prospects for long-term capital growth. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in equity securities of medium-size companies. The Fund’s subadviser is American Century Investment Management, Inc. (American Century).

The Fund’s Initial Class shares returned 29.13%, outperforming the 27.06% return of Russell Midcap^® Value Index (the “benchmark”), which measures the performance of the mid-cap value segment of the U.S. equity universe. It includes Russell Midcap Index companies with lower price-to-book ratios and lower forecasted growth values.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2019, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

During the year ended December 31, 2019, growth stocks outperformed their value counterparts. According to the FTSE Russell indexes, mid-cap stocks outperformed small-cap issues, but underperformed large caps.

During the period, stock selection fueled the Fund’s relative outperformance. In the health care sector, Fund holding Zimmer Biomet Holdings was a top contributor. Stock selection among food products companies also lifted relative performance in the consumer staples sector. On the other hand, stock selection in the financials sector, and especially in the insurance industry, detracted from relative performance.

Among other contributors to the Fund’s full-year performance were two Fund holdings: Applied Materials and Hubbell. Applied Materials, a semiconductor company, had a strong year, as it delivered solid financial results despite an uncertain global economic environment. Fund management trimmed the position as the stock appreciated, but retained it in the Fund’s portfolio on the belief that Applied Materials remains well positioned. This was supported by greenfield investments, a type of foreign direct investment, and market share gain from its new tool offerings. Hubbell, a high-quality industrials company, reported solid results with continued strength in electrical transmission and distribution.

Fund holdings that were key detractors from full-year performance included EQT and MSC Industrial Direct. During the year, weak gas prices hurt the share price of natural gas producer EQT. The Fund exited its position in EQT in the third quarter, as Fund management identified more attractive investment opportunities elsewhere. MSC Industrial Direct, one of the largest industrial equipment distributors in the world, lost value as well, as its stock price fell in the second quarter after the company reported disappointing organic growth and guidance as demand for its industrial products continued to decelerate. Fund management reduced the Fund’s position in the stock in the fourth quarter.

The Fund is permitted to use derivative instruments. Derivatives are securities that derive their value from the performance of one or more other investments and take the form of a contract between two or more parties. Derivatives can be used for hedging, speculation, or both. The Fund’s use of currency hedges in 2019 detracted from its full-year performance.

The Fund invests in companies where Fund management believes the valuation does not reflect the quality and normal earnings power of the company. The investment process is based on individual security selection, but broad themes have emerged. For example, Fund management has identified what it sees as select opportunities in the industrials sector, where companies have underperformed due to concerns such as tariffs, input cost pressure, and operational execution. While the Fund held an overweight allocation to industrials, relative to the benchmark, at year end, Fund management has avoided names within the sector that it believes are lower quality. As of December 31, 2019, the Fund had a notable overweight allocation to health care, as Fund management found what it believes to be attractive opportunities within the sector due to increased political rhetoric and company-specific issues. Within the sector, the vast majority of Fund holdings are in the health care providers and services as well as the health care equipment and supplies industries.

Fund management believes that real estate remains overvalued, and that real estate stocks remain expensive relative to their historical valuation and to other areas of the equity market. Therefore, the Fund holds only a limited number of higher-quality real estate stocks that, in Fund management’s view, offer compelling valuations.

What is the investment approach of MML Small Cap Growth Equity Fund, and who is the Fund’s subadviser?

The Fund seeks long-term capital appreciation by investing primarily in equity securities of smaller companies that the Fund’s subadviser believes offer potential for long-term growth. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in the equity securities of companies whose market capitalizations at the time of purchase are within the market capitalization range of companies included in the Russell 2000^® Index or the S&P SmallCap 600 Index. The Fund’s subadviser is Wellington Management Company LLP (Wellington Management).

The Fund’s Initial Class shares returned 34.32%, substantially outperforming the 28.48% return of the Russell 2000 Growth Index (the “benchmark”), which measures the performance of the small- to mid-cap growth segment of the U.S. equity universe. It includes Russell 2000 Index companies with higher price-to-book ratios and higher forecasted growth values. The Fund’s 34.32% return outperformed, by a wide margin, the 25.52% return of the Russell 2000 Index, which measures the performance of the small-cap segment of the U.S. equity universe. It is a subset of the Russell 3000^® Index and includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2019, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the year ended December 31, 2019, strong stock selection in the health care, industrials, and information technology sectors primarily drove the Fund’s positive absolute and relative returns. These results were slightly offset by weaker stock selection in the energy and materials sectors. Sector allocation, which results from the Fund’s bottom-up stock selection process, also contributed during the period, driven by the Fund’s underweight allocation, relative to the benchmark, to the energy and communication services sectors, and its overweight stake in the industrials sector.

Fund holdings that were top individual contributors to relative performance during the period included Insulet (health care) and Lattice Semiconductor (information technology). Shares of Insulet, a medical device maker, rose after the company reported quarterly earnings that exceeded both management guidance and market expectations, as all three of its revenue segments outperformed. Notably, adoption rates of the company’s Omnipod DASH system showed signs of growth. Shares of Lattice Semiconductor, a manufacturer of high-performance programmable logic devices, rose throughout the year on the back of strong quarterly results and top-line growth.

Fund holdings that were top relative detractors for the period included 2U (information technology) and Tenneco (consumer discretionary). Shares of the education technology company 2U – which enables the online delivery of university graduate programs and non-degree offerings – declined, as the company lowered guidance for the full year due to a slowdown in revenue growth for its graduate program segment. Tenneco is one of the world’s largest designers, manufacturers, and marketers of clean air and ride performance products and systems for automotive, commercial truck, and off-highway equipment. The company’s shares declined after experiencing consecutive fourth-quarter 2018 and first-quarter 2019 earnings misses, and margin and leverage views that fell short of expectations. Fund management eliminated both Fund holdings from the portfolio in the period.

After a volatile end to 2018, equities rebounded in 2019 in response to a more accommodative U.S. Federal Reserve Board, a strong U.S. consumer, and progress in the U.S.-China trade discussions. This rally led to higher valuations across most equities, including those in the small-cap space. While Fund management does not believe prices or valuations are unsustainable, in their view it is as important as ever to focus on companies with strong balance sheets, quality management teams, and a competitive edge. They believe that the risks of higher interest rates and geopolitical tension remain – which, in Fund management’s view, warrants building resiliency into the portfolio through the Fund’s bottom-up stock selection.

At the end of the period, the Fund’s largest overweight stakes were in the consumer discretionary and financials sectors and its largest underweight allocations were to the industrials, utilities, and consumer staples sectors. The most notable shifts in positioning include increased exposures to the consumer discretionary and industrials sectors, and decreased exposure to health care.

What is the investment approach of MML Small Company Value Fund, and who is the Fund’s subadviser?

The Fund seeks long-term capital appreciation by investing primarily in equity securities that the Fund’s subadviser believes are undervalued. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in the securities of companies whose market capitalizations at the time of purchase are within the market capitalization range of companies included in the Russell 2000^® Index. The Fund’s subadviser is T. Rowe Price Associates, Inc. (T. Rowe Price).

The Fund’s Class II shares returned 25.54%, outperforming the 22.39% return of the Russell 2000 Value Index (the “benchmark”), which measures the performance of the small-cap value segment of the U.S. equity universe. It includes those Russell 2000 Index companies with lower price-to-book ratios and lower forecasted growth values. The Fund modestly outperformed the 25.52% return of the Russell 2000 Index, which measures the performance of the small-cap segment of the U.S. equity universe. It is a subset of the Russell 3000^® Index and includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2019, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the year ended December 31, 2019, stock selection aided the Fund’s benchmark-relative outperformance. The industrial and business services sector was the leading contributor, primarily due to stock selection, led by Triumph Group, which is a global supplier of aerospace components and systems. The Fund holding is a rollup of several acquisitions whose customers include aircraft manufacturers and airlines.

The energy sector also contributed to the Fund’s relative returns, due to favorable stock selection coupled with an underweight position, relative to the benchmark. Within the sector, two Fund holdings, International Seaways and WPX Energy, drove performance. The latter is an oil and natural gas producer with assets in the Delaware portion of the Permian Basin and in the Williston Basin in North Dakota. WPX Energy posted solid quarterly results and has been executing well, divesting some high-cost gas assets and improving its balance sheet.

Communication services also aided the Fund’s performance during the period, due to specific Fund holdings within the sector, such as Cable One. Cable One is a fully integrated provider of high-speed internet, cable television, and telephony services. Its shares rose on solid quarterly results and positive investor sentiment toward the recent acquisitions of Clearwave and Fidelity Communications, which are expected to generate significant synergies.

On the other side of the ledger, stock selection in the information technology sector weighed on the Fund’s relative performance, driven by Fund holding Littelfuse, a Chicago-based multinational electronic manufacturing company. Additionally, Fund holdings in the financials sector detracted from relative results for the period, due to less-than-favorable stock choices. For example, shares of Green Dot, the leading provider of general-purpose reloadable cards in the U.S., plunged following a 20% cut to forward guidance in order to fund a marketing campaign for a new direct bank.

For Fund management, the long duration of the current bull market is not a particular concern. Their view is that, rather than dying of old age, bull markets often succumb to one of four ills: an economic downturn, regulatory or policy uncertainty, Federal Reserve Board (the “Fed”) policy errors, or valuation excess. On balance, Fund management believes that current signals suggest slightly positive returns for the market in 2020, with a highly accommodative Fed likely having the potential to offset any significant volatility caused by the regulatory and political environment. Nevertheless, they believe that the possibility of extreme outcomes in either a negative or positive direction appears higher than in recent years.

What is the investment approach of MML Small/Mid Cap Value Fund, and who is the Fund’s subadviser?

The Fund seeks long-term total return by investing primarily in securities that the Fund’s subadviser believes to be undervalued. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in securities of small- and mid-cap companies. The Fund’s subadviser is AllianceBernstein L.P. (AllianceBernstein).

The Fund’s Initial Class Shares returned 20.28%, significantly underperforming the 23.56% return of the Russell 2500^TM Value Index (the “benchmark), which measures the performance of the small- to mid-cap value segment of the U.S. equity universe. It includes Russell 2500 Index companies with lower price-to-book and lower forecasted growth values.

For a discussion on the economic and market environment during the 12-month period ended December 31, 2019, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

For the year ended December 31, 2019, smaller-cap stocks lagged their larger-cap counterparts. Within small-cap markets, investors continued to favor growth and stability. Despite brief periods of outperformance, value stocks nevertheless significantly trailed their growth peers for the year.

In the Fund, overall stock selection detracted, primarily owing to Fund holdings in the industrials, materials, and technology sectors. Overweight positions, relative to the benchmark, in the consumer staples and consumer discretionary sectors also detracted. An overweight position in technology and an underweight position in utilities contributed, as did stock selection in consumer staples, consumer discretionary, and utilities.

Fund holdings that were detractors from performance included Cooper Standard, which declined after the auto supplier missed third-quarter earnings expectations and gave disappointing 2019 guidance on revenue and cash flow. The shortfall was driven by continued weakness in Asia. Commvault Systems, a data protection and information management software company, was another Fund holding that detracted after reporting disappointing first-quarter revenues. The company hired a new CEO who is focused on bolstering the company’s products and marketing strategy. Oil pressure pumping services company RPC was another Fund holding that lagged during the year. The company reported disappointing earnings amid weak demand for its services and resultant lower spot pricing for pressure pumping services, as oil exploration and production companies cut back on their capital expenditure budgets.

Fund holdings that contributed to full-year performance included Cypress Semiconductor, which rose after reporting better-than-expected earnings guidance and positive commentary on order and revenue patterns. Cypress shares also benefited when the company announced it would be acquired by Infineon, a competing semiconductor producer. Sun Communities contributed, as the manufactured housing real estate investment trust reported second-quarter results that beat expectations and raised guidance for 2019. The Fund holding benefited from stronger-than-expected revenue growth. Masonite International was another Fund holding that rose after beating expectations for its third-quarter earnings. Investors were also encouraged by the door manufacturer’s plan to increase prices early in 2020.

Growth stocks and those with perceived lower volatility have seen their valuation multiples expand dramatically over the past three years. Value stocks, in contrast, have lagged, despite strong growth in revenues and cash flow.

Fund management believes that, within value stocks, an opportunity has emerged. While Fund management believes it is true that some value stock profits will fall victim to the economic cycle or technological disruption, their view is that this will not be the case for others, and that many remain in strong competitive positions. It is in these high-quality value stocks that Fund management sees significant potential. Fund management’s view is that those companies have the business models and balance-sheet strengths to navigate troubled waters and generate compelling free cash flow, which Fund management expects the market could recognize over time.

What is the investment approach of MML Total Return Bond Fund, and who is the Fund’s subadviser?

The Fund seeks maximum total return, consistent with preservation of capital and prudent investment management, by investing, under normal circumstances, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in a diversified portfolio of investment grade fixed income securities (rated Baa3 or higher by Moody’s, BBB- or higher by Standard & Poor’s, BBB- or higher by Fitch, or A-2 by S&P, P-2 by Moody’s, or F-2 by Fitch for short-term debt obligations, or, if unrated, determined by the Fund’s subadviser to be of comparable quality). The Fund’s subadviser is Metropolitan West Asset Management, LLC (MetWest).

The Fund’s Class II shares returned 8.91%, outperforming the 8.72% return of the Bloomberg Barclays U.S. Aggregate Bond Index (the “benchmark”), which measures the performance of the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (MBS) (agency fixed-rate and hybrid ARM pass-throughs), asset-backed securities (ABS), and commercial mortgage-backed securities (CMBS).

For a discussion on the economic and market environment during the 12-month period ended December 31, 2019, please see the Economic and Market Overview, beginning on page 3.

Subadviser discussion of factors that contributed to the Fund’s performance

Volatility eased in 2019 on the dovish pivot by the Federal Reserve Board (the “Fed”) – with the central bank reducing rates by 0.25% for the first time since 2007 – in July, with the impetus being weak global data (especially in manufacturing) and persistently low cost pressures. The Fed instituted two more interest rate cuts in September and October. Toward the end of 2019, sentiments improved, as progress was made in trade negotiations with a phase one deal agreed to by the U.S. and China, while election results in the U.K. portended well for Brexit. (“Brexit” – an abbreviation for “British exit” – refers to the United Kingdom’s referendum to leave the European Union.) In addition, the Fed telegraphed its intent to hold steady on rates and accommodate as needed. Against this backdrop, the S&P 500^® Index soared over 30%, while the fall in U.S. Treasury yields modestly retraced to end the year and the yield curve steepened, assuaging recession fears from curve inversion earlier in the year. The yield curve is a graph showing the term structure of interest rates by plotting the yields of all bonds of comparable quality with maturities ranging from the shortest – typically one month – to the longest – typically 30 years – available. The resulting curve shows whether short-term interest rates are higher or lower than long-term rates.

For the year ended December 31, 2019, issue selection among investment-grade corporates (favoring consumer non-cyclicals and financials, particularly food and beverage, pharmaceuticals, finance companies, and health care real estate investment trusts), bolstered Fund returns. Further contributing was the Fund’s allocation to high-yield corporates, as yield spreads in the sector compressed. Additionally, issue selection in non-agency MBS helped drive the Fund’s performance, as that sector continued to benefit from solid demand and still generally favorable housing fundamentals (i.e. steady, albeit slowing, home price appreciation). (Non-agency securities are issued and/or guaranteed by entities other than government agencies.) Finally, the Fund’s duration profile contributed on the margin, with the position shortening from slightly long the benchmark to a neutral stance during the year, then returning to a longer profile to end 2019. (Duration is a measure of a bond fund’s sensitivity to interest rates. The longer the duration, the greater the price impact on the bond or portfolio when interest rates rise or fall.)

On the downside, as credit spreads – the difference in yields between nearly identical bonds with comparable maturities but different quality ratings – compressed amid investors’ bid for yield, the Fund’s underweight to the corporate sector proved to be a drag on performance.

During the year, the Fund’s use of derivatives to manage duration and yield curve had no material impact on performance. Derivatives are securities that derive their value from the performance of one or more other investments and take the form of a contract between two or more parties. Derivatives can be used for hedging, speculation, or both.

Despite the Fed’s willingness to support markets, monetary policy has limits, particularly in the face of late-cycle challenges, such as corporate credit leverage, ongoing trade uncertainty, U.S. elections, and other downside risks. In Fund management’s view, the Fed’s dovish policy does not alter the underlying fundamental picture, and is unlikely to serve as a catalyst for a broader, sustained rebound in economic activity, particularly against a precarious global backdrop rife with uncertainty and studded with important elections.

Notably, Fund management believes that fear of recession still tops the list of U.S. business executives’ concerns, reflecting the uncertain environment going forward and standing at odds with the heady 2019 market returns. As such, the Fund continues to be positioned defensively, with minimal exposure to what Fund management views to be the more vulnerable issuers and industries, while favoring higher-quality, senior bonds. That said, the Fund remains agile to expand the risk budget when Fund management views long-term expected returns to be more favorable.

MML Series Investment Fund (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized under the laws of the Commonwealth of Massachusetts as a Massachusetts business trust pursuant to an Agreement and Declaration of Trust dated December 19, 1984, as restated May 14, 1993, and further amended and restated as of December 15, 2011, as it may be further amended from time to time. The following are 19 series of the Trust (each individually referred to as a “Fund” or collectively as the “Funds”):

The Trust makes shares of the Funds available for the investment of assets of various separate investment accounts established by Massachusetts Mutual Life Insurance Company (“MassMutual”) and by life insurance companies which are subsidiaries of MassMutual. Shares of the Trust are not offered to the general public. MassMutual, MML Bay State Life Insurance Company, C.M. Life Insurance Company, and the MML Allocation Funds, which are “funds of funds” series of the Trust, are the record owners of all of the outstanding shares of the Funds.

The net asset value of each Fund’s shares is determined once daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), on each day the NYSE is open for trading (a “business day”). The NYSE normally closes at 4:00 p.m. Eastern Time, but may close earlier on some days. If the NYSE is scheduled to close early, the business day will be considered to end as of the time of the NYSE’s scheduled close. A Fund will not treat an intraday disruption in NYSE trading or other event that causes an unscheduled closing of the NYSE as a close of business of the NYSE for these purposes and will instead fair value securities in accordance with procedures approved annually by the Board of Trustees (“Trustees”), and under the general oversight of the Trustees. On holidays and other days when the NYSE is closed, each Fund’s net asset value generally is not calculated and the Funds do not anticipate accepting buy or sell orders. However, the value of each Fund’s assets may still be affected on such days to the extent that a Fund holds foreign securities that trade on days that foreign securities markets are open.

Equity securities and derivative contracts that are actively traded on a national securities exchange or contract market are valued on the basis of information furnished by a pricing service, which provides the last reported sale price, or, in the case of futures contracts, the settlement price, for securities or derivatives listed on the exchange or contract market or the official closing price on the NASDAQ National Market System (“NASDAQ System”), or in the case of over-the-counter (“OTC”) securities for which an official closing price is unavailable or not reported on the NASDAQ System, the last reported bid price. Portfolio securities traded on more than one national securities exchange are valued at the last price at the close of the exchange representing the principal market for such securities. Debt securities are valued on the basis of valuations furnished by a pricing service, which generally determines valuations taking into account factors such as institutional-size trading in similar securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data. Shares of other open-end mutual funds are valued at their closing net asset values as reported on each business day.

Investments for which market quotations are readily available are marked to market daily based on those quotations. Market quotations may be provided by third-party vendors or market makers, and may be determined on the basis of a variety of factors, such as broker quotations, financial modeling, and other market data, such as market indexes and yield curves, counterparty information, and foreign exchange rates. U.S. Government and agency securities may be valued on the basis of market quotations or using a model that may incorporate market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, quoted market prices, and reference data. The fair values of OTC derivative contracts, including forward, swap, and option contracts related to interest rates, foreign currencies, credit standing of reference entities, equity prices, or commodity prices, may be based on market quotations or may be modeled using a series of techniques, including simulation models, depending on the contract and the terms of the transaction. The fair values of asset-backed securities and mortgage-backed securities are estimated based on models that consider the estimated cash flows of each debt tranche of the issuer, established benchmark yield, and estimated tranche-specific spread to the benchmark yield based on the unique attributes of the tranche, including, but not limited to, prepayment speed assumptions and attributes of the collateral. Restricted securities are generally valued at a discount to similar publicly traded securities.

Investments for which market quotations are not available or for which a pricing service or vendor does not provide a value, or for which such market quotations or values are considered by the investment adviser or subadviser to be unreliable (including, for example, certain foreign securities, thinly-traded securities, certain restricted securities, certain initial public offerings, or securities whose values may have been affected by a significant event) are stated at fair valuations determined in good faith by the Funds’ Valuation Committee¹ in accordance with procedures approved annually by the Trustees, and under the general oversight of the Trustees. The Funds’ Valuation Committee employs various methods to determine fair valuations including a regular review of significant inputs and assumptions and review of any related market activity. The Funds’ Valuation Committee reports to the Trustees at its regularly scheduled meetings. It is possible that fair value prices will be used by the Funds to a significant extent. The value determined for an investment using the Funds’ fair value procedures may differ from recent market prices for the investment and may be significantly different from the value realized upon the sale of such investment.

The Funds may invest in securities that are traded principally in foreign markets and that trade on weekends and other days when the Funds do not price their shares. As a result, the values of the Funds’ portfolio securities may change on days when the prices of

the Funds’ shares are not calculated. The prices of the Funds’ shares will reflect any such changes when the prices of the Funds’ shares are next calculated, which is the next business day. The Funds may use fair value pricing more frequently for securities primarily traded in foreign markets because, among other things, most foreign markets close well before the Funds value their securities. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim. The Funds’ investments may be priced based on fair values provided by a third-party vendor, based on certain factors and methodologies applied by such vendor, in the event that there is movement in the U.S. market, between the close of the foreign market and the time the Funds calculate their net asset values. All assets and liabilities expressed in foreign currencies are converted into U.S. dollars at the mean between the buying and selling rates of such currencies against the U.S. dollar at the end of each business day.

For investments in equity or debt issued by privately held companies or funds (“Private Company” or collectively, the “Private Companies”) and any other investments fair valued using significant unobservable inputs, as described below, the fair valuation approaches used by third party service providers and/or the Funds’ subadvisers utilize one or a combination of, but not limited to, the following inputs:

Market approach: (i) recent market transactions, including subsequent rounds of financing, in the underlying investment or comparable issuers; (ii) recapitalizations and other transactions across the capital structure; and (iii) market multiples of comparable issuers.

Income approach: (i) future cash flows discounted to present value and adjusted as appropriate for liquidity, credit, and/or market risks; (ii) quoted prices for similar investments or assets in active markets; and (iii) other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts, and/or default rates.

Cost approach: (i) audited or unaudited financial statements, investor communications, and financial or operational metrics issued by the Private Company; (ii) changes in the valuation of relevant indices or publicly traded companies comparable to the Private Company; (iii) relevant news and other public sources; and (iv) known secondary market transactions in the Private Company’s interests and merger or acquisition activity in companies comparable to the Private Company.

Investments in series of preferred stock issued by Private Companies are typically valued utilizing Market approach in determining the enterprise value of the company. Such investments often contain rights and preferences that differ from other series of preferred and common stock of the same issuer. Valuation techniques such as the current value method (“CVM”), an option pricing model (“OPM”), a probability weighted expected return model (“PWERM”), or a hybrid of those techniques are used in allocating enterprise value of the company, as deemed appropriate under the circumstances. The CVM allocates value among the various parts of a company’s capital structure assuming that the value of convertible preferred stock is represented by the most favorable claim the preferred stockholders have on the enterprise value as of the valuation date. The use of OPM and PWERM techniques involve a determination of the exit scenarios of the investment in order to appropriately allocate the enterprise value of the company among the various parts of its capital structure.

The Private Companies are not subject to the public company disclosure, timing, and reporting standards as other investments held by a Fund. Typically, the most recently available information for a Private Company is as of a date that is earlier than the date a Fund is calculating its net asset value. This factor may result in a difference between the value of the investment and the price a Fund could receive upon the sale of the investment.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-tier hierarchy is utilized to maximize the use of observable market data inputs and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in

the three broad Levels listed below. The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to each security.

Level 1 – quoted prices (unadjusted) in active markets for identical investments that the Funds can access at the measurement date

Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Level 3 – significant unobservable inputs, to the extent observable inputs are not available (including the Funds’ own assumptions in determining the fair value of investments)

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

Changes in valuation techniques may result in transfers in or out of an investment’s assigned Level within the hierarchy. In addition, in periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition, as well as changes related to liquidity of investments, could cause a security to be reclassified between Levels.

In certain cases, the inputs used to measure fair value may fall into different Levels of the fair value hierarchy. In such cases, for disclosure purposes, the Level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest Level input that is significant to the overall fair value measurement.

The Fundamental Value Fund, Income & Growth Fund, and Small/Mid Cap Value Fund characterized all long-term investments at Level 1, and all short-term investments at Level 2, as of December 31, 2019. For each Fund noted in the preceding sentence, the level classification by major category of investments is the same as the category presentation in the Portfolio of Investments.

The following is the aggregate value by input level, as of December 31, 2019, for the remaining Funds’ investments:

For certain Fund(s) the Statement of Assets and Liabilities show any applicable Fund(s) receivables from investments sold on a when-issued basis and collateral pledged for open swap agreements, as well as, any applicable liabilities for investments purchased on a when-issued basis, amounts due to custodian, and collateral held for securities on loan. These amounts approximate fair value and would be categorized at Level 2 for each applicable Fund as of December 31, 2019.

The Funds, with the exception of the Small Cap Growth Equity Fund, had no Level 3 transfers during the year ended December 31, 2019. The Small Cap Growth Equity Fund had Level 3 transfers during the year ended December 31, 2019; however, none of the transfers individually or collectively had a material impact on the Small Cap Growth Equity Fund.

Derivatives are financial instruments whose values are based on the values of one or more indicators, such as a security, asset, currency, interest rate, or index. Derivative transactions can create investment leverage and may be highly volatile. Losses from derivatives can be substantially greater than the derivatives’ original cost and can sometimes be unlimited. A Fund may not be able to close out a derivative transaction at a favorable time or price.

At December 31, 2019, and during the year then ended, the Fund(s) had the following derivatives and transactions in derivatives, grouped into the indicated risk categories:

For the year ended December 31, 2019, the number of contracts, notional amounts, or shares/units for each derivative type was as follows:

The Portfolio of Investments included in a Fund’s financial statements shows the assets or liabilities of a Fund associated with individual derivatives transactions. The terms of many of those transactions contemplate that derivatives receivables and payables between the same two parties may be netted and that the parties will collateralize certain obligations. The following tables provide an illustration of the possible effect of netting provisions and of collateral (delivered or received) on a Fund’s derivatives exposure as of December 31, 2019. Netting arrangements vary among different counterparties, and the actual disposition of derivatives receivables and payables, and of collateral, in a bankruptcy or insolvency can be complicated and difficult to predict.

The following table presents derivative assets by counterparty net of amounts available for offset under a master netting agreement (“MNA”) or similar agreement and net of the related collateral received by the Fund(s) as of December 31, 2019.

The following table presents derivative liabilities by counterparty net of amounts available for offset under an MNA or similar agreement and net of the related collateral pledged by the Fund(s) as of December 31, 2019.

Such agreements typically permit a single net payment in the event of default, including the bankruptcy or insolvency of the counterparty. Typically, the Fund(s) and counterparties are not permitted to sell, re-pledge, or use the collateral they receive.

Further details regarding the derivatives and other investments held by the Fund(s) during the year ended December 31, 2019, are discussed below.

A Fund may engage in foreign currency exchange transactions for hedging purposes in order to protect against uncertainty in the level of future foreign currency exchange rates, or for other, non-hedging purposes.

A Fund may enter into foreign currency exchange transactions, including foreign currency forward contracts. These contracts call for the Fund to deliver in the future an amount of one currency in return for an amount of another currency, at an exchange rate determined at the time the contract is entered into. Forward contracts are private contractual arrangements and a Fund is subject to the risk that its counterparty will not, or will not be able to, perform its obligations. This type of arrangement may require the Fund to post margin. A Fund may enter into foreign currency exchange transactions in order to hedge against changes in the values of the assets or liabilities denominated in one or more foreign currencies, or otherwise to increase or reduce a Fund’s exposure to various foreign currencies. The use of foreign currency exchange transactions may create investment leverage.

Whenever a Fund enters into a foreign currency exchange transaction, it is subject to the risk that the value of the transaction will move in a direction unfavorable to it. When the Fund uses the transactions for hedging purposes, it is likely that the Fund will have an asset or liability that will offset any loss (or gain) on the transactions, at least in part. If a Fund enters into foreign currency exchange transactions other than for hedging purposes (for example, seeking to profit from an anticipated change in the values of currencies by creating directional exposures in the portfolio with respect to one or more currencies), it will generally be subject to the same risks, but is less likely to have assets or liabilities that will offset any losses on the transactions. There can be no assurance that a Fund will be able to terminate any foreign currency exchange transaction prior to its maturity in order to limit its loss on the transaction.

Forward foreign currency contracts are marked to market daily and the change in their value is recorded by the Funds as an unrealized gain or loss. Forward foreign currency contracts are valued at the settlement price established through dealers or other market sources on the day which they are traded. When a forward foreign currency contract is extinguished, through delivery or offset by entering into another forward foreign currency contract, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it was extinguished or offset. The notional or contractual amounts of these instruments do not necessarily represent the amounts potentially subject to risk. The measurement of the risk associated with these instruments is meaningful only when all related and offsetting transactions and counterparty risks are considered.

A Fund’s current exposure to a counterparty is the unrealized appreciation on the contract.

A Fund may seek to manage a variety of different risks, such as interest rate risk, equity price risk, and currency risk, through the use of futures contracts. A Fund may use interest rate futures contracts to adjust the interest rate sensitivity (duration) of its portfolio or the credit exposure of the portfolio. Interest rate futures contracts obligate the long or short holder to take or make delivery of a specified quantity of a financial instrument, such as a specific fixed income security, during a specified future period at a specified price. A Fund may use index futures contracts to hedge against broad market risks to its portfolio or to gain broad market exposure when it holds uninvested cash or as an inexpensive substitute for cash investments directly in securities or other assets, including commodities and precious metals. Securities index futures contracts are contracts to buy or sell units of a securities index at a specified future date at a price agreed upon when the contract is made and are settled in cash. Positions in futures contracts may be closed out only on an exchange or board of trade which provides a secondary market for such futures. Because futures contracts are exchange-traded, they typically have minimal exposure to counterparty risk.

Parties to a futures contract are not required to post the entire notional amount of the contract, but rather a small percentage of that amount (by way of margin), both at the time they enter into futures transactions, and then on a daily basis if their positions decline in value; as a result, futures contracts are highly leveraged. Such payments are known as variation margin and are recorded by the Funds as unrealized gains or losses. Because futures markets are highly leveraged, they can be extremely volatile, and there can be no assurance that the pricing of a futures contract will correlate precisely with the pricing of the asset or index underlying it or the asset or liability of the Fund that is the subject of the hedge. It may not always be possible for a Fund to enter into a closing transaction with respect to a futures contract it has entered into, at a favorable time or price. When a Fund enters into a futures transaction, it is subject to the risk that the value of the futures contract will move in a direction unfavorable to it. When a Fund uses futures contracts for hedging purposes, it is likely that the Fund will have an asset or liability that will offset any loss (or gain) on the transactions, at least in part.

When a futures contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.

Swap agreements are typically two-party contracts entered into primarily by institutional investors. In a standard “swap” transaction, two parties agree to exchange the returns (or differentials in rates of return) earned or realized on particular predetermined investments or instruments or rates, which may be adjusted for an interest factor. The gross returns to be exchanged or “swapped” between the parties are generally calculated with respect to a “notional amount,” (i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or in a “basket” of securities representing a particular index).

Interest Rate Swaps. When a Fund enters into an interest rate swap, it typically agrees to make payments to its counterparty based on a specified long- or short-term interest rate and will receive payments from its counterparty based on another interest rate. Other forms of interest rate swap agreements include, among others, interest rate caps, under which, in return for a specified payment stream, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”; interest rate floors, under which, in return for a specified payment stream, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”; and interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels. A Fund may enter into an interest rate swap in order, for example, to hedge against the effect of interest rate changes on the value of specific securities in its portfolio, or to adjust the interest rate sensitivity (duration) or the credit exposure of its portfolio overall, or otherwise as a substitute for a direct investment in debt securities.

Whenever a Fund enters into a swap agreement, it takes on counterparty risk — the risk that its counterparty will be unable or unwilling to meet its obligations under the swap agreement. The Fund also takes the risk that the market will move against its position in the swap agreement. In the case of an interest rate swap, the value of the swap may increase or decrease depending on changes in interest rates. When the Fund enters into any type of swap for hedging purposes, it is likely that the Fund will have an

asset or liability that will offset any loss (or gain) on the swap, at least in part. Swap agreements may be non-transferable or otherwise highly illiquid, and a Fund may not be able to terminate or transfer a swap agreement at any particular time or at an acceptable price.

Centrally Cleared Swaps. Certain clearinghouses currently offer clearing for limited types of derivatives transactions, principally certain interest rate swaps, certain index swaps, and credit derivatives. In a cleared derivative transaction, a Fund typically enters into the transaction with a financial institution counterparty, and performance of the transaction is effectively guaranteed by a central clearinghouse, thereby reducing or eliminating the Fund’s exposure to the credit risk of its original counterparty. The Fund will be required to post amounts (“initial margin”) with the clearinghouse or at the instruction of the clearinghouse. The initial margin required by a clearinghouse may be greater than the initial margin the Fund would be required to post in an uncleared transaction. If cash is deposited as the initial margin, it is shown as collateral on a Fund’s Statement of Assets and Liabilities. Swap agreements are marked-to-market daily and subsequent payments (“variation margin”) are made or received by a Fund depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on a Fund’s Statement of Assets and Liabilities (“Variation margin on open derivative instruments”) and as a component of net change in unrealized appreciation (depreciation) on a Fund’s Statement of Operations. Only a limited number of transaction types are currently eligible for clearing.

During the term of a swap transaction, changes in the value of the swap are recognized as unrealized gains or losses by marking to market to reflect the market value of the swap. When the swap is terminated, a Fund will record a realized gain or loss equal to the difference, if any, between the proceeds from (or cost of) the closing transaction and a Fund’s basis in the agreement. Upfront swap premium payments paid or received by a Fund, if any, are recorded within the value of the open swap agreement on the Fund’s Statement of Assets and Liabilities and represent payments paid or received upon entering into the swap agreement to compensate for differences between stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, and other relevant factors). These upfront payments are recorded as realized gain or loss on the Fund’s Statement of Operations upon termination or maturity of the swap agreement.

During the term of a swap transaction, the periodic net payments can be made for a set period of time or may be triggered by a predetermined credit event. The net periodic payments may be based on a fixed or variable interest rate, the change in market value of a specified security, basket of securities or index, or the return generated by a security. These periodic payments received or made by the Funds are recorded in the accompanying Statements of Operations as realized gains and losses, respectively.

A Fund’s current exposure to a counterparty is the fair value of the transaction.

A Fund may purchase and sell put and call options on securities or an index of securities to enhance investment performance or to protect against changes in market prices. A Fund that invests in debt securities may also purchase and sell put and call options to adjust the interest rate sensitivity of its portfolio or the credit exposure of the portfolio.

Call Options. A call option gives the holder the right to purchase, and obligates the writer to sell, a security at the strike price at any time before the expiration date.

Put Options. A put option gives the holder the right to sell, and obligates the writer to buy, a security at the exercise price at any time before the expiration date.

Writing put and call options. A Fund may write call options on a security it owns, in a “directional” strategy hoping to realize a greater current return through the receipt of premiums. In return for the option premium, the Fund takes the risk that it will have to forego any increase in the value of the security over the strike price. When a Fund has written a call option on a security it does not own, its exposure on such an option is theoretically unlimited. A Fund may enter into closing purchase transactions in order to realize a profit or limit a loss on a previously written call option or, in the case of a call option on a security it owns, to free itself to sell the underlying security or to write another call on the security, or protect a security from being called in an unexpected market rise. Any profits from a closing purchase transaction in the case of a call option on a security a Fund owns may be offset by a

decline in the value of the underlying security. Conversely, because increases in the market price of a call option will generally reflect increases in the market price of the underlying security, any loss resulting from a closing purchase transaction relating to a call option on a security a Fund owns is likely to be offset in whole or in part by unrealized appreciation of the underlying security owned by the Fund. A Fund may not be able to close out a call option that it has previously written. A Fund may write put options in order to enhance its current return by taking a long directional position as to a security or index of securities. By writing a put option, the Fund assumes the risk that it may be required to purchase the underlying security for an exercise price higher than its then current market value, resulting in a potential capital loss unless the security later appreciates in value. A Fund may terminate a put option that it has written before it expires by entering into a closing purchase transaction. Any loss from this transaction may be partially or entirely offset by the premium received on the terminated option. A Fund may not be able to close out a put option that it has previously written.

When a Fund writes a call or put option, an amount equal to the premium received is recorded as a liability. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against the amount paid on the underlying investment to determine the realized gain or loss.

Purchasing put and call options. A Fund may purchase put options to protect portfolio holdings against a decline in market value of a security or securities held by it. A Fund may also purchase a put option hoping to profit from an anticipated decline in the value of the underlying security. If the Fund holds the security underlying the option, the option premium and any transaction costs will reduce any profit the Fund might have realized had it sold the underlying security instead of buying the put option. A Fund may purchase call options to hedge against an increase in the price of securities that the Fund wants ultimately to buy. A Fund may also purchase a call option as a long directional investment hoping to profit from an anticipated increase in the value of the underlying security. In order for a call option to be profitable, the market price of the underlying security must rise sufficiently above the exercise price to cover the premium and transaction costs. These costs will reduce any profit the Fund might have realized had it bought the underlying security at the time it purchased the call option.

When a Fund purchases an option, it runs the risk that it will lose its entire investment in the option in a relatively short period of time, unless the Fund exercises the option or enters into a closing sale transaction before the option’s expiration. If the price of the underlying security does not rise (in the case of a call) or fall (in the case of a put) to an extent sufficient to cover the option premium and transaction costs, the Fund will lose part or all of its investment in the option. This contrasts with an investment by a Fund in the underlying security, since the Fund will not realize a loss if the security’s price does not change. Premiums paid for purchasing options that expire are treated as realized losses.

Exchange Traded Options. Exchange traded options purchased or sold by a Fund may be traded on a securities or options exchange or market. Such options typically have minimal exposure to counterparty risk. However, an exchange or market may at times find it necessary to impose restrictions on particular types of options transactions, such as opening transactions. If an underlying security ceases to meet qualifications imposed by the market or the Options Clearing Corporation, new series of options on that security will no longer be opened to replace expiring series, and opening transactions in existing series may be prohibited. Exchange traded options are valued at the last sale price, or if no sales are reported, the last bid price.

Rights and Warrants. A Fund may purchase or hold warrants or rights in order to gain exposure to the underlying security without owning the security, including, for example, cases where the Fund hopes to lock in the price today of a security it may wish to purchase in the future. Warrants generally give the holder the right, but not the obligation, to buy a security at a stated price. In order for a warrant to be profitable, the market price of the underlying security must rise sufficiently above the exercise price to cover any premium and transaction costs. Rights may similarly confer on the holder the right to purchase or acquire securities, including through participation in a so-called rights offering. Bonds may be issued with warrants or other rights attached to purchase or acquire equity or other debt securities, typically of the bond issuer. The market prices of bonds with warrants or rights attached to purchase equity securities or bonds may, to some degree, reflect changes in the values of the underlying securities.

When a Fund purchases or otherwise acquires warrants or other rights, it runs the risk that it will lose its entire investment in the warrants or rights, unless the Fund exercises the warrant or right, acquires the underlying securities, or enters into a closing transaction before expiration. If the price of the underlying security does not rise to an extent sufficient to cover any premium and

transaction costs, the Fund will lose part or all of its investment. Any premiums or purchase price paid for warrants or other rights that expire are treated as realized losses. Warrants and similar rights differ from options in that they are typically written by the issuer of the security underlying the warrant or right. Although some warrants and rights may be non-transferable, others may be traded over-the-counter or on an exchange.

Inflation-linked securities are typically fixed income securities whose principal values are periodically adjusted according to a measure of inflation. If the index measuring inflation falls, the principal value of an inflation-linked security will be adjusted downward, and consequently the interest payable on the security (calculated with respect to a smaller principal amount) will be reduced. Repayment of the original principal of the security upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-linked securities. For securities that do not provide a similar guarantee, the adjusted principal value of the security repaid at maturity may be less than the original principal.

Alternatively, the interest rates payable on certain inflation-linked securities may be adjusted according to a measure of inflation. As a result, the principal values of such securities do not adjust according to the rate of inflation, although the interest payable on such securities may decline during times of falling inflation.

The values of inflation-linked securities are expected to change in response to changes in real interest rates. Real interest rates are tied to the relationship between nominal interest rates and the rate of inflation. If nominal interest rates increase at a faster rate than inflation, real interest rates may rise, leading to a decrease in value of inflation-linked securities. Inflation-linked securities may cause a potential cash flow mismatch to investors, because an increase in the principal amount of an inflation-linked security will be treated as interest income currently subject to tax at ordinary income rates even though investors will not receive repayment of principal until maturity. If a Fund invests in such securities, it will be required to distribute such interest income in order to qualify for treatment as a regulated investment company and eliminate the Fund-level tax, without a corresponding receipt of cash, and therefore may be required to dispose of portfolio securities at a time when it may not be advantageous to do so in order to make such distributions.

A Fund may invest in bank loans including, for example, corporate loans, loan participations, direct debt, bank debt, and bridge debt. A Fund may invest in a loan by lending money to a borrower directly as part of a syndicate of lenders. In a syndicated loan, the agent that originated and structured the loan typically administers and enforces the loan on behalf of the syndicate. Failure by the agent to fulfill its obligations may delay or adversely affect receipt of payment by a Fund. A Fund may also invest in loans through novations, assignments, and participation interests. In a novation, a Fund typically assumes all of the rights of a lending institution in a loan, including the right to receive payments of principal and interest and other amounts directly from the borrower and to enforce its rights as a lender directly against the borrower. When a Fund takes an assignment of a loan, the Fund acquires some or all of the interest of another lender (or assignee) in the loan. In such cases, the Fund may be required generally to rely upon the assignor to demand payment and enforce rights under the loan. If a Fund acquires a participation in the loan, the Fund purchases an indirect interest in a loan held by a third party and the Fund typically will have a contractual relationship only with the third party loan investor, not with the borrower. As a result, a Fund may have the right to receive payments of principal, interest, and any fees to which it is entitled only from the loan investor selling the participation and only upon receipt by such loan investor of such payments from the borrower. In such cases, a Fund assumes the credit risk of both the borrower and the loan investor selling the participation, and the Fund may be unable to realize some or all of the value of its interest in the loan in the event of the insolvency of the third party.

Changes in the financial condition of the borrower or economic conditions or other circumstances may reduce the capacity of the borrower to make principal and interest payments on such instruments and may lead to defaults. The value of any collateral securing a bank loan may decline after the Fund invests, and there is a risk that the value of the collateral may not be sufficient to cover the amount owed to the Fund.

Each Fund may enter into repurchase agreements with certain banks and broker-dealers whereby a Fund acquires a security for cash and obtains a simultaneous commitment from the seller to repurchase the security at an agreed upon price and date. A Fund, through its custodian, takes possession of the securities collateralizing the repurchase agreement in a segregated account. Repurchase agreements must be fully collateralized at all times, but involve some risk to a Fund if the other party should default on its obligation and the Fund is delayed or prevented from recovering the collateral, or if the Fund is required to return collateral to a borrower at a time when it may realize a loss on the investment of that collateral.

When-Issued, Delayed-Delivery, Forward Commitment, and To-Be-Announced Transactions

A Fund may enter into when-issued, delayed-delivery, forward commitment, or to-be-announced (“TBA”) transactions (collectively, the “Forward Transactions”) in order to lock in the purchase price of the underlying security, or in order to adjust the interest rate exposure of the Fund’s existing portfolio. In Forward Transactions, a Fund commits to purchase or sell particular securities, with payment and delivery to take place at a future date. In the case of TBA purchase commitments, the unit price and the estimated principal amount are established when the Fund enters into a commitment, with the actual principal amount being within a specified range of the estimate. Although a Fund does not typically pay for the securities in these types of transactions until they are delivered, it immediately assumes the risks of ownership, including the risk of price fluctuation. As a result, each of these types of transactions may create investment leverage in a Fund’s portfolio and increase the volatility of the Fund. If a Fund’s counterparty fails to deliver a security purchased in a Forward Transaction, there may be a loss, and the Fund may have missed an opportunity to make an alternative investment.

These securities are valued on the basis of valuations furnished by a pricing service, selected pursuant to procedures approved by the Trustees, which determines valuations taking into account appropriate factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data. Securities for which no market quotation is available are valued at fair value in accordance with procedures approved by the Trustees. The Funds record on a daily basis the unrealized appreciation (depreciation) based upon changes in the values of these securities. When a Forward Transaction is closed, the Funds record a realized gain or loss equal to the difference between the value of the transaction at the time it was opened and the value of the transaction at the time it was closed.

A Fund may enter into dollar roll transactions, in which the Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to purchase substantially similar securities on a specified future date from the same party. A Fund may invest in dollar rolls in order to benefit from anticipated changes in pricing for the mortgage-backed securities during the term of the transaction, or for the purpose of creating investment leverage. In a dollar roll, the securities that are to be purchased will be of the same type as the securities sold, but will be supported by different pools of mortgages.

Dollar rolls involve the risk that the Fund’s counterparty will be unable to deliver the mortgage-backed securities underlying the dollar roll at the fixed time. If the counterparty files for bankruptcy or becomes insolvent, a Fund’s use of the transaction proceeds may be restricted pending a determination by the counterparty or its representative, whether to enforce the Fund’s obligation to repurchase the securities. A Fund can incur a loss on a dollar roll transaction (either because its counterparty fails to perform or because the value of the mortgages subject to the transaction declines) and on the investments made by the Fund with the proceeds of the dollar roll transaction.

A Fund accounts for a dollar roll transaction as a purchase and sale whereby the difference in the sales price and purchase price of the security sold is recorded as a realized gain (loss). If certain criteria are met, these dollar roll transactions may be considered financing transactions, whereby the difference in the sales price and the future purchase price is recorded as an adjustment to interest income. Dollar roll transactions generally have the effect of creating leverage in a Fund’s portfolio.

Each Fund may lend its securities; however, lending cannot exceed 33% of the total assets of the Fund taken at current value. The Funds’ securities lending activities are governed by a Securities Lending Agency Agreement (“Lending Agreement”) between each Fund and the lending agent (“Agent”). The Lending Agreement authorizes the Agent to lend portfolio securities held by a Fund to approved borrowers (each, a “Borrower”).

Each Fund expects that in connection with any securities on loan, the loan will be secured continuously by collateral consisting of cash (U.S. currency) and/or securities (U.S. Treasury and Agency obligations) adjusted daily to have value at least equal to the current market value of the securities loaned. The market value of the loaned securities is determined at the close of business of a Fund and any additional collateral is delivered to the Fund the next business day. The Funds bear the risk of loss with respect to the investment of cash collateral. As with other extensions of credit, the Funds may bear the risk of delay in recovery of the loaned securities or even loss of rights in the collateral should the Borrower of the securities fail financially. Pursuant to the Lending Agreement, the Agent has provided indemnification to the Funds in the event of default by a Borrower with respect to a loan. The Funds receive compensation for lending their securities in the form of a securities loan fee paid by the Borrower, as well as a share of the income earned on investment of the cash collateral received for the loaned securities. At December 31, 2019, the Funds’ collateral was equal to or greater than 100% of the market value of securities on loan.

Subject to the terms of the Lending Agreement and the agreement between the Agent and the applicable Borrower (“Borrowing Agreement”), security loans can be terminated by the Agent, the Fund, or the Borrower and the related securities must be returned within the earlier of the customary settlement period for such securities or the period of time specified in the Borrowing Agreement.

The Funds employ the Agent to implement their securities lending program and the Agent receives a fee from the Funds for its services. In addition, the Funds may be required to pay a rebate to the Borrower. Accordingly, a Fund’s compensation for lending its securities is reduced by any such fees or rebate paid to the Agent or Borrower, respectively. Income received by the Funds in securities lending transactions during the year ended December 31, 2019, is reflected as securities lending income on the Statement of Operations.

Investment transactions are accounted for on the trade date. Realized gains and losses on sales of investments and unrealized appreciation and depreciation of investments are computed by the specific identification cost method. Proceeds received from litigation, if any, are included in realized gains on investment transactions for any investments that are no longer held in the portfolio and as a reduction in cost for investments that continue to be held in the portfolio. Interest income, adjusted for amortization of discounts and premiums on debt securities, is earned from the settlement date and is recorded on the accrual basis. Dividend income and realized capital gain distributions are recorded on the ex-dividend date. Non-cash dividends received in the form of stock are recorded as dividend income at market value. Withholding taxes on foreign interest, dividends, and capital gains have been provided for in accordance with the applicable country’s tax rules and rates. Foreign dividend income is recorded on the ex-dividend date or as soon as practicable after the Fund determines the existence of a dividend declaration after exercising reasonable due diligence. Distributions received on securities that represent a return of capital or capital gains are recorded as a reduction of cost of investments and/or as a realized gain. The Funds determine the classification of distributions received as return of capital distributions or capital gain distributions.

The books and records of the Funds are maintained in U.S. dollars. The market values of foreign currencies, foreign securities, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the mean of the buying and selling rates of such currencies against the U.S. dollar at the end of each business day. Purchases and sales of foreign securities and income and expense items are translated at the rates of exchange prevailing on the respective dates of such transactions. The Funds do not isolate that portion of the results of operations arising from changes in the exchange rates from that portion arising from changes in the market prices of securities. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date on investment securities transactions, foreign currency transactions, and the difference between the amounts of dividends or interest recorded on the books of the Funds and the amount actually received.

The Global Fund invests a significant amount of its assets in foreign securities and each of the Foreign Fund and the International Equity Fund invests substantially all of its assets in foreign securities. The other Funds may also invest in foreign securities. Foreign securities, including American Depositary Receipts, are subject to additional risks compared to securities of U.S. issuers, including international trade, currency, political, regulatory, and diplomatic risks. In addition, fluctuations in currency exchange rates may adversely affect the values of foreign securities and the price of a Fund’s shares. Emerging markets securities are subject to greater risks than securities issued in developed foreign markets, including less liquidity, greater price volatility, higher relative rates of inflation, greater political, economic, and social instability, greater custody and operational risks, and greater volatility in currency exchange rates.

It is each Fund’s intent to continue to comply with the provisions of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to a regulated investment company. Under such provisions, the Funds would not be subject to federal income taxes on their ordinary income and net realized capital gains to the extent they are distributed or deemed to have been distributed to their shareholders. Therefore, the Funds have not made any provision for federal income tax.

MML Investment Advisers, LLC (“MML Advisers”), a wholly-owned subsidiary of MassMutual, serves as investment adviser to each Fund. Under the investment advisory agreements between MML Advisers and the Trust on behalf of each Fund, MML Advisers is responsible for providing investment management services for each Fund. In return for these services, MML Advisers receives advisory fees, based upon each Fund’s average daily net assets, computed and accrued daily and payable monthly, at the annual rates shown in the following table.

MML Advisers has also entered into investment subadvisory agreements for each Fund with the unaffiliated investment subadviser(s) shown in the following table. MML Advisers pays a subadvisory fee to each of these subadvisers based upon the aggregate net assets under management which include (1) the average daily net assets of the specified Fund which it manages, and, if applicable, (2) the average daily net assets of other Funds or accounts of MML Advisers or its affiliates for which the subadviser provides subadvisory services.

The Funds’ subadvisory fees are paid monthly by MML Advisers out of the advisory fees.

For the Equity Index Fund, Focused Equity Fund, Fundamental Growth Fund, Fundamental Value Fund, Global Fund, International Equity Fund, Small Company Value Fund, and Total Return Bond Fund, under a separate Administrative and Shareholder Services Agreement between the Trust and MML Advisers, on behalf of each Fund, MML Advisers is obligated to

provide administrative and shareholder services and bear some of the Fund specific administrative expenses. In return for these services, MML Advisers receives an administrative services fee based upon the average daily net assets of the applicable class of shares of the Funds, at the following annual rates:

MML Advisers has agreed to cap the fees and expenses of the Funds noted below (other than extraordinary litigation and legal expenses, Acquired Fund Fees and Expenses^#, interest expense, short sale dividend and loan expense, or other non-recurring or unusual expenses such as organizational expenses and shareholder meeting expenses, as applicable) based upon the average daily net assets of the applicable class of shares of the Funds, as follows:

Prior to May 1, 2019, MML Advisers agreed to cap the fees and expenses of the Fund noted below (other than extraordinary litigation and legal expenses, Acquired Fund Fees and Expenses^#, interest expense, short sale dividend and loan expense, or other non-recurring or unusual expenses such as organizational expenses and shareholder meeting expenses, as applicable) based upon the average daily net assets of the applicable class of shares of the Fund, as follows:

MML Advisers has agreed to voluntarily waive 0.03% of the advisory fee of the Equity Income Fund and 0.05% of the advisory fee of the Small Company Value Fund. MML Advisers may amend or discontinue these waivers at any time without advance notice.

MML Advisers has agreed to waive 0.04% of the advisory fee of the Foreign Fund through April 30, 2020. Effective July 1, 2019, MML Advisers has agreed to waive an additional 0.01% of the advisory fee of the Foreign Fund. MML Advisers may amend or discontinue this additional waiver at any time without advance notice.

MML Advisers has agreed to waive 0.02% of the advisory fee of each of the Fundamental Value Fund and Small Cap Growth Equity Fund through April 30, 2020.

Prior to May 1, 2019, MML Advisers agreed to voluntarily waive 0.05% of the advisory fee of the Focused Equity Fund.

Expense caps and waiver amounts are reflected as a reduction of expenses on the Statements of Operations.

The Funds listed below have entered into agreements with certain brokers whereby the brokers will rebate to the Funds, in cash, a portion of brokerage commissions. Rebated brokerage commissions are amounts earned by the Funds and are included with realized gain or loss on investment transactions presented in the Statements of Operations. For the year ended December 31, 2019, brokerage commissions rebated under these agreements were as follows:

Certain officers and trustees of the Funds may also be employees of MassMutual. The compensation of a trustee who is not an employee of MassMutual is borne by the Funds.

Cost of purchases and proceeds from sales of investment securities (excluding short-term investments) for the year ended December 31, 2019, were as follows:

The Funds may purchase from, or sell securities to, other affiliated Funds under procedures adopted by the Trustees. These procedures have been designed to ensure that cross trades conducted by the Funds comply with Rule 17a-7 under the 1940 Act. The cross trades disclosed in the table below are included within the respective purchases and sales amounts shown in the table above, as applicable.

Net capital loss carryforwards may be applied against any net realized taxable gains in succeeding years, subject to the carryforward period limitations, where applicable. On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”) was signed by the President. The Modernization Act changed the capital loss carryforward rules as they relate to regulated investment companies. Capital losses generated in tax years beginning after the date of enactment may now be carried forward indefinitely, and retain the character of the original loss. Under pre-enactment law, capital losses could be carried forward for up to eight tax years as short-term capital losses. The provisions affecting the utilization of capital loss carryforwards under the Modernization Act also require the utilization of post-enactment losses prior to the utilization of pre-enactment losses.

At December 31, 2019, the following Fund(s) had post-enactment accumulated capital loss carryforwards:

Net capital loss carryforwards for the Fund(s) shown in the above table are from post-enactment years and are, therefore, not subject to the eight-year carryforward period and possible expiration.

The tax character of distributions (including capital gain dividends, if any, designated pursuant to Section 852 of the Code) paid during the year ended December 31, 2019, was as follows:

The tax character of distributions (including capital gain dividends, if any, designated pursuant to Section 852 of the Code) paid during the year ended December 31, 2018, was as follows:

The following Fund(s) have elected to pass through the foreign tax credit for the year ended December 31, 2019:

At December 31, 2019, the components of distributable earnings on a tax basis were as follows:

During the year ended December 31, 2019, the following amounts were reclassified due to permanent differences between book and tax accounting:

indemnified against personal liability for obligations of the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.

In March 2017, FASB issued Accounting Standards Update 2017-08, Receivables — Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”). For entities that hold callable debt securities at a premium, ASU 2017-08 requires that the premium be amortized to the earliest call date. ASU 2017-08 is effective for the fiscal year ended December 31, 2019. Management has implemented the applicable changes, and they did not have a material impact on the Funds’ financial statements.

In August 2018, FASB issued Accounting Standards Update 2018-13 — Fair Value Measurement (Topic 820) Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). ASU 2018-13 eliminates the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the timing of transfers between levels of the fair value hierarchy, and the valuation processes for Level 3 fair value measurements. ASU 2018-13 requires that information is provided about the measurement uncertainty of Level 3 fair value measurements as of the reporting date. The amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Management has evaluated the impact of ASU 2018-13 and has early adopted the disclosure requirements and the impact, if any, is reflected within the Funds’ financial statements.

On December 7, 2010, the Trust was named as a defendant and putative member of the proposed defendant class of shareholders named in an adversary proceeding brought by The Official Committee of Unsecured Creditors of Tribune Company (the “Official Committee”) in the U.S. Bankruptcy Court for the District of Delaware, in connection with Tribune Company’s Chapter 11 bankruptcy proceeding (In re Tribune Company). The proceeding relates to a leveraged buyout (“LBO”) transaction by which Tribune Company converted to a privately-held company in 2007, and the putative defendant class is comprised of beneficial owners of shares of Tribune Company who received proceeds (the “Proceeds”) of the LBO. The Official Committee seeks to recover payments of those Proceeds. On April 5, 2012, the adversary proceeding was transferred to the Southern District of New York for consolidated pretrial proceedings. The action is now being prosecuted by the litigation trustee (“Trustee”) for the Tribune Litigation Trust.

The potential amounts sought to be recovered from the Equity Income Fund and Equity Index Fund are approximately $4,562,800 and $207,706, respectively, plus interest and the Official Committee’s court costs.

In addition, on June 2, 2011, the Equity Income Fund was named as a defendant in two closely related, parallel adversary proceedings brought in connection with the Tribune Company’s LBO by Deutsche Bank Trust Company Americas, in its capacity as successor indenture trustee for a certain series of Senior Notes, Law Debenture Trust Company of New York, in its capacity as successor indenture trustee for a certain series of Senior Notes, and Wilmington Trust Company, in its capacity as successor indenture trustee for the PHONES Notes (together, the “Plaintiffs”), one in the United States District Court for the District of Massachusetts and one in the United States District Court for the District of Connecticut. The Plaintiffs also seek to recover payments of the Proceeds. On December 20, 2011, these actions were transferred to the Southern District of New York for consolidated pretrial proceedings.

The Funds cannot predict the outcome of these proceedings. Accordingly, the Funds have not accrued any amounts related to these proceedings. If the proceedings were to be decided in a manner adverse to the Funds, or if the Funds were to enter into a settlement agreement with the Trustee or the Plaintiffs, as applicable, the payment of such judgment or settlement could potentially have a material adverse effect on the Funds’ net asset values depending on the net assets of each applicable Fund at the time of such judgment or settlement.

In preparation of these financial statements, management has evaluated the events and transactions subsequent to December 31, 2019, through the date when the financial statements were issued, and determined that there are no subsequent events or transactions that would require adjustments to or disclosures in the Funds’ financial statements other than those disclosed below.

Effective January 7, 2020, Thompson, Siegel & Walmsley LLC replaced Templeton Investment Counsel, LLC as the subadviser to the Foreign Fund and Wellington Management Company LLP was added as a subadviser to the Mid Cap Growth Fund.

To the Board of Trustees of MML Series Investment Fund and Shareholders of MML Blue Chip Growth Fund, MML Equity Income Fund, MML Equity Index Fund, MML Focused Equity Fund, MML Foreign Fund, MML Fundamental Growth Fund, MML Fundamental Value Fund, MML Global Fund, MML Growth & Income Fund, MML Income & Growth Fund, MML International Equity Fund, MML Large Cap Growth Fund, MML Managed Volatility Fund, MML Mid Cap Growth Fund, MML Mid Cap Value Fund, MML Small Cap Growth Equity Fund, MML Small Company Value Fund, MML Small/Mid Cap Value Fund, and MML Total Return Bond Fund (collectively, the “Funds,” certain of the funds constituting MML Series Investment Fund):

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2019, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more MassMutual investment companies since 1995.

For corporate shareholders, a portion of the ordinary dividends paid during the Fund(s)’ year ended December 31, 2019, qualified for the dividends received deduction, as follows:

For the year ended December 31, 2019, the following Fund(s) earned the following foreign sources of income:

Under Section 854(b)(2) of the Code, the Fund(s) hereby designate the following maximum amounts as qualified dividends for purposes of the maximum rate under Section 1(h)(11) of the Code for the year ended December 31, 2019:

A description of the policies and procedures that each Fund’s investment adviser and subadvisers use to vote proxies relating to the Fund’s portfolio securities is available, without charge, upon request, by calling 1-888-309-3539, and on the Securities and Exchange Commission’s (“SEC”) EDGAR database on its website at http://www.sec.gov.

At their meeting in September 2019, the Trustees, including the Trustees who are not “interested persons” (as such term is defined in the 1940 Act) of the Trust, MML Advisers, or the subadvisers (the “Independent Trustees”), reviewed and approved a proposal to make changes to the existing subadvisory agreement between MML Advisers and Massachusetts Financial Services Company (“MFS”) for the Global Fund in order to lower the subadvisory fee paid on behalf of the Fund. In arriving at their decision, the Trustees discussed the fees payable to MFS by MML Advisers on behalf of the Global Fund and the effect of such fees on the profitability to MML Advisers. The Trustees concluded that they were satisfied that MML Advisers’ projected level of profitability due to the amended subadvisory agreement are not excessive and the subadvisory fee amount under the amended subadvisory agreement is fair and reasonable. In their deliberations, the Trustees were advised by independent counsel.

Prior to the vote being taken to approve the amended subadvisory agreement discussed above, the Independent Trustees met separately in executive session to discuss the appropriateness of such contract. The Independent Trustees weighed the foregoing matters in light of the advice given to them by their independent legal counsel as to the law applicable to the review of investment advisory contracts. In arriving at a decision, the Trustees, including the Independent Trustees, did not identify any single matter as all-important or controlling. The foregoing summary does not detail all of the matters considered.

Also at their meeting in September 2019, the Trustees, including the Independent Trustees, approved a new subadvisory agreement with AllianceBernstein L.P. (“AllianceBernstein”) for the Small/Mid Cap Value Fund due to the expected change in control of AXA Equitable Holdings, Inc. (“Equitable”), AllianceBernstein’s indirect parent company. The Trustees considered the representations made to them regarding the change in control of Equitable, the fact that the terms of the new subadvisory agreement would be substantially identical to the terms of the subadvisory agreement currently in place, and that there would be no change in the investment strategies or portfolio management team of the Small/Mid Cap Value Fund, or in the fees or expenses of the Fund. The Trustees considered the statements of AllianceBernstein that the change in control was not expected to have any material impact on AllianceBernstein or the services it provides to the Small/Mid Cap Value Fund, including the personnel providing services to the Fund.

Prior to the vote being taken to approve the new subadvisory agreement discussed above, the Independent Trustees met separately in executive session to discuss the appropriateness of such contract. The Independent Trustees weighed the foregoing matters in light of the advice given to them by their independent legal counsel as to the law applicable to the review of investment advisory contracts. In arriving at a decision, the Trustees, including the Independent Trustees, did not identify any single matter as all-important or controlling. The foregoing summary does not detail all of the matters considered.

At their meeting in December 2019, the Trustees, including the Independent Trustees, approved new subadvisory agreements with Thompson, Siegel & Walmsley LLC (“TSW”), Invesco Advisers, Inc. (“Invesco”), and Wellington Management Company LLP (“Wellington Management”) for each of the Foreign Fund, Fundamental Growth Fund, and Mid Cap Growth Fund, respectively (the “Funds” and the “New Subadvisory Agreements”). In preparation for the meeting, the Trustees requested, and MML Advisers provided in advance, certain materials relevant to the consideration of the New Subadvisory Agreements. In all of their deliberations, the Trustees were advised by independent counsel.

In reviewing the New Subadvisory Agreements, the Independent Trustees discussed with MML Advisers and considered a wide range of information about, among other things: (i) TSW, Invesco, and Wellington Management and their personnel with responsibility for providing services to each Fund, respectively; (ii) the terms of the New Subadvisory Agreements; (iii) the scope and quality of services that TSW, Invesco, and Wellington Management will provide under the New Subadvisory Agreements; (iv) the historical investment performance track records of TSW, Invesco, and Wellington Management; and (v) the fees payable to TSW, Invesco, and Wellington Management by MML Advisers, the effect of such fees on the profitability to MML Advisers, and any information provided by TSW, Invesco, and Wellington Management regarding the fees paid to TSW, Invesco, and Wellington Management by other funds with similar investment objectives as the respective Fund. The Trustees also noted the fact that each Fund’s advisory fees and total expenses were not expected to change as a result of the New Subadvisory Agreements and that MML Advisers was proposing to implement a voluntary fee waiver of two basis points for the Fundamental Growth Fund.

Prior to the votes being taken to approve the New Subadvisory Agreements, the Independent Trustees met separately in executive session to discuss the appropriateness of such contracts. The Independent Trustees weighed the foregoing matters in light of the advice given to them by their independent legal counsel as to the law applicable to the review of investment advisory contracts. In arriving at a decision, the Trustees, including the Independent Trustees, did not identify any single matter as all-important or controlling. The foregoing summary does not detail all of the matters considered.

Based on the foregoing, and following their review, the Trustees concluded, with respect to the New Subadvisory Agreements, that (i) overall, they were satisfied with the nature, extent, and quality of services expected to be provided under the New Subadvisory Agreements; (ii) MML Advisers’ projected levels of profitability due to the New Subadvisory Agreements are not excessive and the subadvisory fee amounts under the New Subadvisory Agreements are fair and reasonable; (iii) the investment processes and strategies of each of TSW, Invesco, and Wellington Management appear well suited to each respective Fund given its investment objective and policies; and (iv) the terms of the New Subadvisory Agreements are fair and reasonable with respect to each respective Fund, and are in the best interests of each Fund’s shareholders. After carefully considering the information summarized above, the Trustees, including a majority of the Independent Trustees voting separately, unanimously voted to approve the New Subadvisory Agreements.

The New Subadvisory Agreements for the Foreign Fund and Mid Cap Growth Fund became effective on January 7, 2020. The New Subadvisory Agreement for the Fundamental Growth Fund is expected to become effective on March 2, 2020.

The following information is in regards to expenses for the six months ended December 31, 2019:

American Funds Insurance Series, by Capital Group, is the underlying investment vehicle for many variable annuities and insurance products. For nearly 90 years, Capital Group has invested with a long-term focus based on thorough research and attention to risk.

Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.

Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries. Investing in small-capitalization stocks can involve greater risk than is customarily associated with investing in stocks of larger, more established companies. The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. High-yield bonds are subject to greater fluctuations in value and risk of loss of income and principal than investment-grade bonds. Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor’s, Moody’s and/or Fitch as an indication of an issuer’s creditworthiness. Futures may not provide an effective hedge of the underlying securities because changes in the prices of futures may not track those of the securities they are intended to hedge. In addition, the managed risk strategy may not effectively protect the funds from market declines and will limit the funds’ participation in market gains. The use of the managed risk strategy could cause the funds’ returns to lag those of the applicable underlying funds in certain rising market conditions. Refer to the funds’ prospectuses and the Risk Factors section of this report for more information on these and other risks associated with investing in the funds.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Global stocks generated the best one-year returns in a decade as measured by the 26.60% gain in the MSCI ACWI (All Country World Index)^1,2boosted by aggressive central bank stimulus measures and easing trade tensions toward the end of the year. These returns were assisted by a low starting point for 2019, after sharp market declines in the last quarter of 2018. Information technology companies posted the highest returns, with a gain of nearly 48% (as measured by the MSCI World Index). The sector was driven by strong growth from U.S. tech giants such as Apple, Microsoft and Facebook. The next best sector, industrials, rose 28% amid an improving outlook for trade activity and global economic growth.

U.S. equities had their strongest annual gains since 2013, ending the year near all-time highs, with an increase of 31.64% recorded by the MSCI USA Index^1,3. The current economic expansion became the longest in U.S. history, surpassing the 10-year boom from the 1990s. For the first 11 months of the year, average hourly earnings topped at least 3% annualized growth. In November, the unemployment rate fell to 3.5%, matching its lowest level in 50 years. The robust labor market supported consumer spending, more than offsetting weaker business sentiment and manufacturing. The U.S. trade war with China occasionally caused volatility, but the resilient U.S. economy and the Federal Reserve’s return to accommodative policies helped steer markets higher. The central bank cut its policy rate three times in 2019 amid concerns over slowing economic growth, which perhaps helped prevent further slowing. In addition, potential bubbles like WeWork and certain billion-dollar tech “unicorns” were deflated without broad damage to the rest of the market.

European stocks rallied despite signs of slowing economic growth, a near-recession in Germany and Brexit-related uncertainty in the U.K. that remained unresolved until the very last month of the year. Boosted by easy monetary policy, European investors cheered aggressive interest rate cuts by the European Central Bank. The MSCI Europe Index^1,4gained 23.77% for the year. The progress of U.S.-China trade negotiations heavily influenced European markets throughout the year as share prices moved sharply higher or lower on the tenor of trade-related headlines. Germany’s auto industry was particularly hard hit. With Europe’s economy highly dependent on global trade, the announcement of a “phase one” trade deal between the U.S. and China in December helped to bolster investor sentiment heading into the new year. Elsewhere among developed markets, the Japanese economy expanded modestly through the first three quarters of 2019 despite a manufacturing slowdown driven largely by the U.S.-China trade dispute. The MSCI Japan Index^1,5rose 19.61% over the year.

All market returns referenced in this report are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. Country returns are based on MSCI indexes, which reflect reinvestment of distributions and dividends net of withholding taxes, except for the MSCI USA Index, which reflects dividends gross of withholding taxes. Source: MSCI.

Emerging markets stocks advanced, overcoming bouts of volatility tied to global trade tensions, China’s economic slowdown and a strong U.S. dollar. Growth stocks outpaced more defensive parts of the market, led by the information technology and consumer discretionary sectors. Overall, the MSCI Emerging Markets Investable Market Index^1,6gained 17.64% for the year. Chinese stocks rose despite slower growth and trade tensions with the U.S. Indian equities lagged most other emerging markets while Brazilian stocks posted their best annual return since 2016.

Bonds advanced as central banks around the world cut interest rates in an attempt to blunt concerns about a slowing economy. The Fed paused rate hikes for the first half of the year and cut three times in the second half and the federal funds rate ended the year between 1.50% and 1.75%. Credit saw very sizable returns, with the Bloomberg Barclays U.S. Corporate Investment Grade Index^7,8and the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index^7,9gaining 14.54% and 14.32%, respectively. More broadly, the Bloomberg Barclays Global Aggregate Index^7,10was up 6.84%, while the Bloomberg Barclays U.S. Aggregate Index^7,11advanced 8.72%. The J.P. Morgan Emerging Markets Bond Index^7,12– Global gained 14.42%.

In foreign exchange markets, the U.S. dollar rose nearly 2% against the euro while declining 1% against the yen. Meanwhile, the British pound ended the year with a historic rally after U.K. voters gave the Conservative Party a strong majority in Parliament, increasing the likelihood that the U.K. will be able to begin the Brexit process and leave the European Union.

The current environment is rife with uncertainty, from trade-related disputes to geopolitical tensions to an upcoming U.S. presidential election. We will be following and analyzing each of these issues closely. In this environment, it would be reasonable to expect some volatility. Valuation measures are also giving mixed signals – some look high, some look just fine. So, we will continue to focus on individual securities and bring our research and judgment to bear. With our long-term approach, we welcome opportunities to see past short-term trends and invest our shareholder’s money for the long run.

Our time-tested process — based on extensive research, a long-term outlook and close attention to valuation — has served investors well over time. As always, we thank you for your continued support of our efforts and we look forward to reporting to you again in six months.

Summary investment portfolios are designed to streamline this report and help investors better focus on the funds’ principal holdings. Ultra-Short Bond Fund, Managed Risk Growth Fund, Managed Risk International Fund, Managed Risk Blue Chip Income and Growth Fund, Managed Risk Growth-Income Fund and Managed Risk Asset Allocation Fund show a complete listing of portfolio holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings for each fund in the series.

Unless otherwise indicated, American Funds Insurance Series investment results are for Class 1 shares (Class P1 shares for managed risk funds). Class 1A shares began operations on January 6, 2017. Class 2 shares began operations on April 30, 1997. Class 3 shares began operations on January 16, 2004. Class 4 shares began operations on December 14, 2012. Results encompassing periods prior to those dates assume a hypothetical investment in Class 1 shares and include the deduction of additional annual expenses (0.25% for Class 1A shares, 0.25% for Class 2 shares, 0.18% for Class 3 shares and 0.50% for Class 4 shares).

The variable annuities and life insurance contracts that use the series funds contain certain fees and expenses not reflected in this report. Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information.

For the managed risk funds, the investment adviser is currently waiving a portion of its management fee equal to 0.05% of the funds’ net assets. In addition, the investment adviser is currently reimbursing a portion of other expenses for Managed Risk International Fund. The waivers and reimbursement will be in effect through at least May 1, 2021, unless modified or terminated by the series board. After that time, the investment adviser may elect to extend, modify or terminate the reimbursement. The waivers may only be modified or terminated with the approval of the series board. Applicable fund results shown reflect the waivers and reimbursement, without which results would have been lower. See the Financial Highlights tables in this report for details.

The Managed Risk Growth Fund pursues its objective by investing in shares of American Funds Insurance Series – Growth Fund^SMand American Funds Insurance Series – Bond Fund^SM. The Managed Risk International Fund pursues its objective by investing in shares of American Funds Insurance Series –International Fund^SMand American Funds Insurance Series – Bond Fund^SM. The Managed Risk Blue Chip Income and Growth Fund pursues its objective by investing in shares of American Funds Insurance Series –Blue Chip Income and Growth Fund^SMand American Funds Insurance Series – U.S. Government/AAA-Rated Securities Fund^SM. The Managed Risk Growth-Income Fund pursues its objective by investing in shares of American Funds Insurance Series – Growth-Income Fund^SMand American Funds Insurance Series – Bond Fund^SM. The Managed Risk Asset Allocation Fund pursues its objective by investing in shares of American Funds Insurance Series – Asset Allocation Fund.^SMThe funds seek to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the funds’ managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the funds’ results can be expected to lag those of the underlying fund.

Funds are listed in the report as follows: equity, balanced, fixed income and managed risk.

Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit capitalgroup.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.

Global Growth Fund rose 35.61% for the 12 months ended December 31, 2019, compared with a 26.60% increase for the MSCI ACWI (All Country World Index),¹a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, consisting of more than 40 developed and emerging market country indexes.

Global stocks generated the best returns in a decade, boosted by aggressive central bank stimulus measures and easing trade tensions toward the end of the year. U.S. stocks soared to near record highs in December as the U.S. and China agreed to a limited trade war truce with the aim of avoiding the imposition of new tariffs and other protectionist measures. Information technology stocks posted the highest returns with a gain of nearly 48% in aggregate. Outside the U.S., European stocks advanced despite signs of slowing economic growth, a near-recession in Germany and Brexit-related uncertainty in the U.K. that remained unresolved until the very last month of the year. Emerging markets stocks advanced, overcoming bouts of volatility tied to global trade tensions, China’s economic slowdown and a strong U.S. dollar.

The fund’s higher-than-index position relative to the top performing information technology sector as well as individual stock selection in that sector boosted the fund’s returns compared with the index. The fund’s relative weightings in ASML and TSMC benefitted the fund as both outpaced the wider market and were among the top contributors to the fund’s relative returns. Consumer discretionary stock Alibaba Group also helped the fund’s relative returns, as its returns outpaced the market.

The biggest drag on relative results was Apple – a stock the fund didn’t own – as it proved to be one of the strongest performers for the year.

On a geographic basis, stocks of companies domiciled in the Netherlands and Taiwan were additive to results, while stocks of companies based in the Philippines and Belgium lagged.

The fund’s portfolio managers are optimistic they will continue to find good companies globally that offer high-quality products, and whose values are not yet fully reflected in their share prices.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are as of the fund’s prospectus dated May 1, 2020 (unaudited). See the Financial Highlights table in this report for details.

Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

Global Small Capitalization Fund increased 31.84% for the 12 months ended December 31, 2019. Its benchmark, the MSCI All Country World Small Cap Index,¹a free float-adjusted market capitalization-weighted index designed to measure equity market results of smaller capitalization companies in both developed and emerging markets, gained 24.65%.

U.S. equities had their strongest annual gains since 2013, ending the year near all-time highs. Stocks rose steadily, posting gains in 10 of 12 months. The U.S. trade war with China occasionally caused volatility, but the resilient U.S. economy and the Federal Reserve’s return to accommodative policies helped steer markets higher. Information technology companies posted the highest returns, with a gain of nearly 48% in aggregate. Outside the U.S., European stocks advanced despite signs of slowing economic growth, a near-recession in Germany and Brexit-related uncertainty in the U.K. that remained unresolved until the very last month of the year. Emerging markets stocks advanced, overcoming bouts of volatility tied to global trade tensions, China’s economic slowdown and a strong U.S. dollar.

Fund holdings in the information technology sector contributed the most to relative returns. Information technology stock Paycom widely outpaced the broader market and was among the fund’s top contributors over the period. However, the fund’s holdings of health care companies NuCana and Evolent Health detracted from returns.

While investments in U.S. companies were additive to returns, investments in companies domiciled in the U.K. detracted.

The fund’s portfolio managers continue to seek investment opportunities in undervalued companies that have the potential to change industries and benefit shareholders. They believe rigorous bottom-up research into each potential equity investment can help achieve this goal. The fund currently holds nearly 300 companies diversified across geographies and industries. As always, we maintain our commitment to investing for the long term.

Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

Growth Fund gained 31.11% for the 12 months ended December 31, 2019, compared with a 31.49% increase in its benchmark index, Standard & Poor’s 500 Composite Index,¹a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.

Companies in the communication services sector contributed to relative results, led by Facebook, which was boosted by strong user and revenue growth. Investments in the consumer discretionary and health care sectors detracted from the fund’s relative results. The fund’s top detractor to relative returns was information technology company Apple. The fund had a significantly lower investment in Apple compared to the index and Apple proved to be one of the top performers for the year.

Although U.S. economic growth remained solid, the fund’s portfolio managers are keeping a close watch on near-term economic indicators, such as wage growth, monetary policy and trade relations. Portfolio managers continue to favor well-positioned, growth-oriented companies that are capable of generating free cash flow in myriad near-term economic environments and remain optimistic that our global research will help us identify attractive long-term investment opportunities.

Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

International Fund gained 23.21% for the 12 months ended December 31, 2019. Its benchmark, the MSCI ACWI (All Country World Index) ex USA,¹a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets (consisting of more than 40 developed and emerging market country indexes excluding the U.S.), increased 21.51%.

Investments in the communication services and financials sectors boosted relative returns with Amsterdam-based Altice Europe among the top contributors thanks to better than expected growth. One of the biggest detractors to relative returns was health-care sector stock Teva Pharmaceutical, whose stock price suffered amid continued opioid litigation.

The fund’s portfolio managers continue to monitor volatility and potential headwinds brought about by political and trade uncertainty. Given how late it may be in the current bull market, they seek opportunities in particular within those regions, countries and sectors less affected by these global headlines. Their focus on a company’s fundamental growth drivers and intrinsic worth is critical to helping them identify investments that they believe represent the best value over the long term.

Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

New World Fund was up 29.47% for the 12 months ended December 31, 2019. Its benchmark index, the MSCI ACWI (All Country World Index),¹a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets (consisting of more than 40 developed and emerging market country indexes), was up 26.60%. The MSCI Emerging Markets (EM) Index,¹a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global emerging markets (consisting of more than 20 emerging market country indexes), increased by 18.42%.

Global stocks generated the best returns in a decade, boosted by aggressive central bank stimulus measures and easing trade tensions toward the end of the year. U.S. stocks soared to near record highs in December as the U.S. and China agreed to a limited trade war truce with the aim of avoiding the imposition of new tariffs and other protectionist measures. Technology stocks posted the highest returns with a gain of nearly 48% in aggregate. Outside the U.S., European stocks advanced despite signs of slowing economic growth, a near-recession in Germany and Brexit-related uncertainty in the U.K. that remained unresolved until the very last month of the year. Emerging markets stocks advanced, overcoming bouts of volatility tied to global trade tensions, China’s economic slowdown and a strong U.S. dollar.

The fund’s relative returns outpaced emerging markets in general. Investments in the information technology and financial sectors were beneficial to the fund. Payment processing company PagSeguro contributed to relative returns as its stock price rose on the back of strong revenue growth. Among detractors, the fund’s lower investment in Apple compared with the MSCI ACWI hurt relative results as it outpaced the overall market.

The fund’s portfolio managers continue to pursue a bottom-up approach to investing and search for undervalued companies with solid foundations around the world, as well as stocks that are domestically focused and more insulated from geopolitical events given increased volatility at this point in the market cycle.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The investment adviser intends to waive a portion of its management fees beginning May 1, 2020. This waiver will be in effect through at least May 1, 2021. The waiver may only be modified or terminated with the approval of the fund’s board. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are as of the fund’s prospectus dated May 1, 2020 (unaudited). See the Financial Highlights table in this report for details.

Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

Blue Chip Income and Growth Fund gained 21.66% for the 12 months ended December 31, 2019, trailing the 31.49% rise in its benchmark index, Standard & Poor’s 500 Composite Index,¹a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.

Certain investments in health care helped the fund’s results relative to the index. Among the fund’s top contributors to relative returns within health care was UnitedHealth Group, as it consistently surpassed earnings estimates each quarter throughout the year. Another top contributor was QUALCOMM, where an improved relationship with Apple and the prospect of a 5G wireless network bolstered both earnings prospects and the company’s valuation.

Other holdings in the health care sector hindered relative returns. Investments in pharmaceutical companies, such as AbbVie and Teva Pharmaceutical, hurt results relative to the index. Overall, this proved to be a relatively disappointing year for the fund, but we continue to believe the focus on dividend-paying stocks will pay off over the long term.

Nearer term, the fund’s portfolio managers are aware that the market is keeping a close watch on U.S. monetary policy, our trade relationships and the current shape of the yield curve and their implications on the U.S. economy. Portfolio managers continue to favor well-managed, high-quality companies that are capable of paying dividends in myriad economic environments. We remain optimistic that this focus, supported by our global research, will help us to identify attractive long-term investment opportunities.

Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

Global Growth and Income Fund advanced 31.39% for the 12 months ended December 31, 2019, compared with a 26.60% increase in its benchmark index, MSCI ACWI (All Country World Index),¹a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, consisting of more than 40 developed and emerging market country indexes.

Global stocks generated the best returns in a decade, boosted by aggressive central bank stimulus measures and easing trade tensions toward the end of the year. U.S. stocks soared to near record highs in December as the U.S. and China agreed to a limited trade war truce with the aim of avoiding the imposition of new tariffs and other protectionist measures. Technology stocks posted the highest returns with a gain of nearly 48% in aggregate. Outside the U.S., European stocks advanced despite signs of slowing economic growth, a near-recession in Germany and Brexit-related uncertainty in the U.K. that remained unresolved until the very last month of the year. Emerging markets stocks advanced, overcoming bouts of volatility tied to global trade tensions, China’s economic slowdown and a strong U.S. dollar.

The fund’s relative performance benefited from specific stock selection, particularly within the industrials and energy sectors. Industrial company Airbus rallied on positive tail winds from strong global demand, and likely benefited from Boeing’s troubles with its 737MAX. On the downside, some investments in the materials sector hindered relative returns. In particular, Brazil’s Vale was a top relative detractor.

On a country basis, holdings in Japan and France contributed the most to relative returns, and holdings in the U.S. and Canada were a drag on returns (the former due to a lower-than-index position).

The fund’s portfolio managers recognize that we are experiencing a slowdown in global economic growth. With dovish monetary strategy back under consideration in the U.S. and Europe, the fund’s managers remain cautiously optimistic about the prospects for the global economy and are monitoring the potential impact on global growth. Portfolio managers continue to invest based on a bottom-up approach to long-term investing and believe they can uncover promising companies with strong positions in their industries, sustainable growth and income opportunities globally – including emerging markets.

Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

Growth-Income Fund gained 26.46% for the 12 months ended December 31, 2019. Standard & Poor’s 500 Composite Index,¹a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, rose 31.49%.

Regarding the fund, investments in the industrials sector contributed the most to the fund’s relative returns. Among industrials, aircraft component manufacturer TransDigm Group added the most to the fund’s relative results. On the downside, the fund’s lower-than-index position in information technology stocks, a sector that performed strongly over the period, weighed on relative returns. In particular, the fund’s lower-than-index investment in Apple hindered sector results the most as Apple shares outperformed the broader market over the period.

The fund’s portfolio managers continue to look for compelling investment opportunities, buying stocks they believe represent the best value over the long term.

Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

International Growth and Income Fund gained 23.06% for the 12 months ended December 31, 2019, compared to the 21.51% increase in its benchmark index, the MSCI ACWI (All Country World Index) ex USA,¹ a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets (consisting of more than 40 developed and emerging market country indexes excluding the U.S.).

Global stocks generated the best returns in a decade, boosted by aggressive central bank stimulus measures and easing trade tensions toward the end of the year. U.S. stocks soared to near record highs in December as the U.S. and China agreed to a limited trade war truce with the aim of avoiding the imposition of new tariffs and other protectionist measures. Technology stocks posted the highest returns with a gain of nearly 48% in aggregate. Outside the U.S., European stocks advanced despite signs of slowing economic growth, a near-recession in Germany and Brexit-related uncertainty in the U.K. that remained unresolved until the very last month of the year. Emerging markets stocks advanced, overcoming bouts of volatility tied to global trade tensions, China’s economic slowdown and a strong U.S. dollar.

The top contributors to the fund’s relative returns were the consumer discretionary and utilities sectors due in part to good stock selection. Luckin Coffee was the top contributor to the fund’s relative returns as it benefited from strong growth in the Chinese retail coffee market. Health care stock Daiichi Sankyo also contributed strong relative returns.

On the downside, investments in the energy and real estate sectors detracted from the fund’s relative returns. Among energy stocks, Royal Dutch Shell was one of the fund’s biggest drags on returns as a result of lower oil prices and market volatility.

The fund’s portfolio managers follow signs of some economic weakness in Europe and parts of emerging markets, as well as a number of geopolitical uncertainties, with an aim to preserve value in any potential market correction while being in a position to take advantage of buying opportunities, should they present themselves later in the year.

Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

Capital Income Builder, which invests in a mix of stocks and bonds, gained 18.16% for the 12 months ended December 31, 2019. During the same period, the MSCI ACWI (All Country World Index)¹, free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets (consisting of more than 40 developed and emerging market country indexes), gained 26.60%. The Bloomberg Barclays U.S. Aggregate Index², which represents the U.S. investment-grade (rated BBB/Baa and above) fixed-rate bond market, gained 8.72%. The index blend of 70%/30% MSCI ACWI/Bloomberg Barclays U.S. Aggregate Index³gained 21.21%. The Lipper Global Equity Income Funds Average⁴, a measure of similar funds, was up 21.01%.

In the equity portfolio, the top contributors in relative terms were the utilities and consumer discretionary sectors. American Tower added the most to the fund’s relative returns as it notched higher returns than the general market.

On the downside, the information technology sector, which comprised the second-largest share of the fund’s equity holdings, detracted from returns. The fund’s top detractor to relative returns was information technology company Apple. The fund had a significantly lower investment in Apple compared to the index and Apple proved to be one of the top performers for the year. The fund’s fixed income portfolio was a drag on relative results.

The current market environment is rife with uncertainty. Given that the U.S. is late in the economic cycle, the fund’s portfolio managers are paying close attention to companies’ leverage and are more sharply focused on monitoring balance sheets. They seek to avoid companies that take on debt to pay dividends, and are focused on identifying companies with strong business models and a commitment to paying and growing dividends over time. Higher interest rates should also allow portfolio managers to reinvest bond coupon payments into higher yielding securities, thereby generating more income from the bond portfolio.

Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

Asset Allocation Fund, which is a mix of stocks and bonds, gained 21.54% for the 12 months ended December 31, 2019. Standard & Poor’s 500 Composite Index¹, a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, was up 31.49% over the same period, while the Bloomberg Barclays U.S. Aggregate Index², which represents the U.S. investment-grade (rated BBB/Baa and above) fixed-rate bond market, returned 8.72%.A blend of the two indexes, the 60%/40% S&P 500 Index/Bloomberg Barclays U.S. Aggregate Index³, gained 22.18%. Effective May 1, 2020, the fund has elected to use the 60%/40% S&P 500 Index/Bloomberg Barclays U.S. Aggregate Index as its primary benchmark, because it comes closest to reflecting its investment universe and best measures its long-term results and portfolio managers’ success over time.

Investments in the financials sector — one of the fund’s largest sector holdings — contributed to the fund’s relative returns. Within financials, Arch Capital Group, Berkshire Hathaway and Apollo boosted results, as all three companies had at least double-digit returns that outpaced the general market. On the downside, health care stock AbbVie detracted from relative returns as its best-selling drug Humira faced generic competition. The fund’s fixed income investments somewhat detracted from relative returns due to duration positioning and security selection.

The fund’s portfolio managers continue to evaluate the economic and market-sector implications of the current administration’s decisions regarding trade. The fund’s cash position allows portfolio managers to remain flexible and better navigate uncertainty by focusing on opportunities when stock prices are favorable.

Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

Global Balanced Fund gained 20.79% for the 12 months ended December 31, 2019. The MSCI ACWI (All Country World Index),¹a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets (consisting of more than 40 developed and emerging market country indexes), increased by 26.60%, while the Bloomberg Barclays Global Aggregate Index,²a measure of global investment-grade bonds (rated BBB/Baa and above), increased 6.84%. The 60%/40% MSCI ACWI/Bloomberg Barclays Global Aggregate Index,³a blend of the two indexes, gained 18.55%.

Global stocks generated the best returns in a decade, boosted by aggressive central bank stimulus measures and easing trade tensions toward the end of the year. U.S. stocks soared near record highs in December as the U.S. and China agreed to a limited trade war truce. Outside the U.S., European stocks advanced despite signs of slowing economic growth, a near-recession in Germany and Brexit-related uncertainty in the U.K. that remained unresolved until the very last month of the year. Emerging markets stocks advanced, overcoming bouts of volatility tied to global trade tensions.

The fund’s higher-than-index position relative to the top performing information technology sector as well as individual stock selection in that sector boosted the fund’s returns compared with the index. The fund’s fixed income investments also helped relative returns. On the downside, investments in tobacco company Altria detracted from the fund’s relative returns as its share price dipped lower than the broader market.

The fund’s portfolio managers exercise caution and continue to monitor cross-border trade discussions that could lead to further tensions on the one hand and central bank activity on the other, which could result in lower rates. Rate reductions could help mitigate some of the negative economic impacts of a reduction in global trade. Portfolio managers continue to stay the course of focusing on global research and stock-by-stock, bottom-up analysis.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Expense ratios are as of the fund’s prospectus dated May 1, 2020 (unaudited). See the Financial Highlights table in this report for details.

Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

Bond Fund gained 9.70% for the 12 months ended December 31, 2019. In comparison, the fund’s benchmark, the Bloomberg Barclays U.S. Aggregate Index¹, which represents the U.S. investment-grade (rated BBB/Baa and above) fixed-rate bond market, returned 8.72%.

The Federal Reserve began the year by pausing its rate hike campaign in response to market turbulence at the end of 2018. It then began to cut the federal funds rate over the summer. It reduced the rate three times to end the year with the target in a range of 1.50%-1.75%.

Security selection within agency mortgage backed pass-through securities was the primary detractor from relative results over the period. On the positive side, the fund benefitted from active duration management as interest rates declined over the period. Sector selection was also a positive factor as out-of-benchmark investments in Treasury Inflation Protected Securities (TIPS), investment grade corporate bonds, high yield, and emerging markets all helped results.

With the current economic expansion now more than 10 years old, it is the longest in the post-war period. While we expect the expansion to continue in 2020, late cycle economies may be susceptible to risks or idiosyncratic problems throwing them off balance. For that reason, we feel strongly that a core bond fund like Bond Fund should remain conservatively positioned with a long-term focus. Managers remain committed to pursuing all four roles of fixed income: income, diversification from equities, capital preservation and inflation protection. We aim to manage a fund that will help to provide stability for your portfolio in any market environment.

Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

Global Bond Fund gained 8.08% for the 12 months ended December 31, 2019. This outpaced the fund’s benchmark, the Bloomberg Barclays Global Aggregate Index¹, which measures global investment-grade bonds (rated BBB/Baa and above) and increased 6.84%.

Government bonds advanced as central banks around the world cut interest rates in an attempt to blunt the negative effects of a trade war. After raising rates in 2018, the U.S. Federal Reserve abruptly changed course and cut rates three times in 2019. Many other central banks followed the same path, while the European Central Bank took rates further into negative territory. The Treasury curve ultimately steepened after some flattening amid declining yields. Credit saw very sizable returns, with investment-grade and high-yield bonds gaining more than 14%. U.S. corporate spreads tightened sharply, by 60 basis points, to end at 93 basis points on an option-adjusted basis. The federal funds rate ended the year between 1.50% and 1.75%.

Sector/industry allocation helped results relative to the market index, as did careful security selection and the fund’s chosen exposure to countries. Investments in government bonds from Greece and Mexico were the largest individual contributors to relative results while Argentine government bonds were among the larger individual detractors.

As growth in the U.S. moderates, the fund’s portfolio managers seek to identify long-term investments around the world such as in emerging markets where corporate and high-yield debt may present opportunities. Given the fund’s core objective is to provide a high-level of total return over the long term, the fund’s portfolio managers maintain a cautious approach to investing in different sectors of the bond market, such as high-yield debt.

Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

High-Income Bond Fund gained 12.85% for the 12 months ended December 31, 2019. In comparison, the fund’s benchmark, the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index,¹which measures fixed-rate non-investment-grade bonds and limits the exposure of an issuer to 2% was up 14.32%.

Bond returns were strong during the period. The Federal Reserve maintained its target rate for the first half of the year, but then reduced the target rate three times in the second half. The federal funds rate ended the year between 1.50% and 1.75%. The Treasury curve ultimately steepened after some flattening amid declining yields.

The fund’s portfolio managers continue to believe current fundamentals support a mildly constructive outlook for the high yield market. We continue to monitor global central bank monetary policy actions, and believe that the higher yields and relatively short duration of high yield bonds should help mitigate any impact should rates begin to rise from current levels.

Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

Mortgage Fund gained 5.30% for the 12 months ended December 31, 2019, while the Bloomberg Barclays U.S. Mortgage-Backed Securities Index,¹which covers the mortgage-backed pass-through securities of Ginnie Mae, Fannie Mae and Freddie Mac, rose 6.35%.

Bond returns were strong. The Federal Reserve paused rate hikes for the first half of the year and cut three times in the second half. The federal funds target rate ended the year between 1.50% and 1.75%. The Treasury curve ultimately steepened after some flattening amid declining yields.

Sector and security selection detracted from relative results, including holdings in U.S. Treasuries and interest rate swaps.

The fund’s portfolio managers remain focused on meeting the core objectives of the fund providing current income and protecting capital. The fund’s relatively low allocation to MBS Pass-Through securities, combined with an interest rate stance that anticipates that the yield curve will steepen, are positions that the portfolio managers expect will contribute to relative results in the future as markets evolve. More attractive valuations for mortgage investments are expected to emerge going forward amid a transition from our extended period of extremely low volatility to a more normal period of economic and asset price uncertainty.

Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

Ultra-Short Bond Fund gained 1.92% for the 12 months ended December 31, 2019, compared with a 2.69% rise in the Bloomberg Barclays Short-Term Government/Corporate Index¹, which consists of investment-grade (rated BBB/Baa and above), fixed-rate, publicly placed, dollar-denominated and non-convertible securities with remaining maturity from one up to (but not including) 12 months within either the government or corporate sector. With a focus on capital preservation and liquidity, the fund continues to be managed in a relatively conservative manner compared to the above-described index.

The fund’s returns were higher than in 2018 even as the Federal Reserve paused rate hikes for the first half of the year and cut three times in the second half. The federal funds rate ended the year between 1.50% and 1.75%. The Treasury curve ultimately steepened after some flattening amid declining yields. Assuming the current interest rate environment and solid U.S. economic conditions persist, the fund has the potential to continue to provide income.

Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

U.S. Government/AAA-Rated Securities Fund rose 5.69% for the 12 months ended December 31, 2019, while the Bloomberg Barclays U.S. Government/Mortgage-Backed Securities Index,¹which covers obligations issued by the U.S. Treasury and U.S. government agencies, increased by 6.63%.

During the period, the fund’s interest rate positioning detracted from relative returns, including investments in interest rate swaps.

The fund strives to meet its objective of providing a high level of current income consistent with the preservation of capital. The fund’s portfolio managers have positioned the fund with the expectation that rate hikes in the near future are unlikely as the Federal Reserve wants to extend the economic expansion and to also raise inflation closer to its stated “strong commitment” to a symmetric target of 2%. We believe this stance by the Federal Reserve can lead to a steepening yield curve and potentially higher inflation expectations.

Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

The fund gained 22.01% for the 12 months ended December 31, 2019. S&P 500 Managed Risk Index – Moderate Aggressive¹ was up 20.47%. Standard & Poor’s 500 Composite Index², a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, increased 31.49%.

The fund pursues its objective by investing in shares of American Funds Insurance Series – Growth Fund^SMand American Funds Insurance Series – Bond Fund^SM while seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying fund.

The underlying Growth Fund’s investments in communication services added to relative returns, while investments in consumer discretionary detracted from the fund’s relative results.

The investment adviser is currently waiving a portion of its management fee. This waiver will be in effect through at least May 1, 2021. The waiver may only be modified or terminated with the approval of the fund’s board. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit capitalgroup.com for more information. Expense ratios are restated to reflect current fees and are as of the fund’s prospectus dated May 1, 2020 (unaudited).

Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

Milliman Financial Risk Management LLC serves as the subadviser with respect to the management of the fund’s managed risk strategy.

The fund gained 17.91% for the 12 months ended December 31, 2019, compared to the S&P EPAC Ex. Korea LargeMidCap Managed Risk Index – Moderate Aggressive¹, which increased 18.78%. The MSCI ACWI (All Country World Index) ex USA²increased by 21.51%.

The fund pursues its objective by investing in shares of American Funds Insurance Series – International Fund^SMand American Funds Insurance Series – Bond Fund^SM while seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying fund.

The underlying International Fund’s security selection and a lower-than-index position in the communication services sector added to relative returns, while stock selection in the materials sector detracted from relative results.

Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

Milliman Financial Risk Management LLC serves as the subadviser with respect to the management of the fund’s managed risk strategy.

The fund gained 14.14% for the 12 months ended December 31, 2019. S&P 500 Managed Risk Index – Moderate¹was up 19.14%. Standard & Poor’s 500 Composite Index², a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, increased 31.49%.

The fund pursues its objective by investing in shares of American Funds Insurance Series – Blue Chip Income and Growth Fund^SMand American Funds Insurance Series – U.S. Government/AAA-Rated Securities Fund^SMwhile seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying fund.

The underlying Blue Chip Income and Growth Fund’s investments in the real estate sector added to relative returns, while investments in health care detracted from the fund’s relative results.

Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

Milliman Financial Risk Management LLC serves as the subadviser with respect to the management of the fund’s managed risk strategy.

The fund gained 19.14% for the 12 months ended December 31, 2019. S&P 500 Managed Risk Index – Moderate¹was up 19.14%. Standard & Poor’s 500 Composite Index², a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, increased 31.49%.

The fund pursues its objective by investing in shares of American Funds Insurance Series – Growth-Income Fund^SMand American Funds Insurance Series – Bond Fund^SMwhile seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying fund.

The underlying Growth-Income Fund’s investments in industrials added to relative returns, while investments in materials detracted from the fund’s relative results. At the security level within the materials sector, a top detractor from relative results included Vale in the metals and mining industry.

Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

Milliman Financial Risk Management LLC serves as the subadviser with respect to the management of the fund’s managed risk strategy.

The fund gained 18.25% for the 12 months ended December 31, 2019. S&P 500 Managed Risk Index – Moderate Conservative¹was up 18.05%. Standard & Poor’s 500 Composite Index², a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, increased 31.49%.

The fund pursues its objective by investing in shares of American Funds Insurance Series – Asset Allocation Fund^SM while seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying fund.

The underlying Asset Allocation Fund’s investments in the financials sector added to relative returns, while investments in health care detracted from the fund’s relative results.

Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

Milliman Financial Risk Management LLC serves as the subadviser with respect to the management of the fund’s managed risk strategy.

This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. Some securities in “Other securities” (with an aggregate value of $44,058,000, an aggregate cost of $37,986,000, and which represented .95% of the net assets of the fund) were acquired from 5/1/2015 to 12/26/2019 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject them to legal or contractual restrictions on resale.

A company is an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings represent 5% or more of the outstanding voting shares of that company. The value of the fund’s affiliated-company holding is included in “Other securities” under the respective industry sector in the summary investment portfolio. Further details on this holding and related transactions during the year ended December 31, 2019, appear below.

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. One security in “Other securities” (with a value of $38,849,000, an aggregate cost of $37,000,000, and which represented .14% of the net assets of the fund) was acquired on 12/21/2018 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject it to legal or contractual restrictions on resale.

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” also includes securities (with an aggregate value of $49,827,000, which represented .49% of the net assets of the fund) which were acquired in transactions exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers.

New World Fund

Summary investment portfolio December 31, 2019

Common stocks 88.36%	Shares		Value (000)
Information technology 23.02%
Taiwan Semiconductor Manufacturing Co., Ltd.¹		9,405,000	$	104,155
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR)		250,000		14,525
PagSeguro Digital Ltd., Class A²		2,921,023		99,782
Microsoft Corp.		538,524		84,925
StoneCo Ltd., Class A²		1,780,826		71,037
Keyence Corp.¹		140,000		49,553
Broadcom Inc.		156,350		49,410
Visa Inc., Class A		223,400		41,977
PayPal Holdings, Inc.²		353,000		38,184
EPAM Systems, Inc.²		158,100		33,543
Adobe Inc.²		100,400		33,113
Largan Precision Co., Ltd.¹		181,000		30,243
Autodesk, Inc.²		146,100		26,804
Mastercard Inc., Class A		79,800		23,827
Halma PLC¹		843,000		23,666
Other securities				140,773
				865,517

Financials 13.11%
HDFC Bank Ltd.¹		4,410,200		78,598
Kotak Mahindra Bank Ltd.¹		2,942,900		69,409
B3 SA - Brasil, Bolsa, Balcao		5,593,400		59,748
AIA Group Ltd.¹		5,316,600		55,939
Sberbank of Russia PJSC (ADR)¹		1,371,100		22,560
Sberbank of Russia PJSC (ADR)		682,500		11,193
HDFC Life Insurance Co. Ltd.¹		3,387,520		29,718
XP Inc., Class A²		725,900		27,962
Bank Central Asia Tbk PT¹		9,869,000		23,709
Other securities				114,102
				492,938

Energy 9.90%
Reliance Industries Ltd.¹		11,548,513		245,304
Royal Dutch Shell PLC, Class B¹		1,126,400		33,564
Petróleo Brasileiro SA (Petrobras), ordinary nominative (ADR)		1,429,000		22,778
Other securities				70,542
				372,188

Health care 9.15%
Notre Dame Intermédica Participações SA		2,800,868		47,520
BioMarin Pharmaceutical Inc.²		389,600		32,941
Carl Zeiss Meditec AG, non-registered shares¹		216,552		27,619
AstraZeneca PLC¹		269,800		26,993
Yunnan Baiyao Group Co., Ltd., Class A¹		2,000,000		25,699
Abbott Laboratories		263,000		22,844
Illumina, Inc.²		67,000		22,227
Other securities				138,229
				344,072

Materials 8.32%
Vale SA, ordinary nominative		2,881,660		38,182
Vale SA, ordinary nominative (ADR)		1,976,000		26,083
Freeport-McMoRan Inc.		3,945,000		51,758
Fortescue Metals Group Ltd.¹		4,618,395		34,809
UPM-Kymmene Oyj¹		894,000		30,984
First Quantum Minerals Ltd.		2,305,000		23,377
Other securities				107,595
				312,788

58	American Funds Insurance Series

New World Fund

Common stocks	Shares		Value (000)
Consumer discretionary 7.02%
Alibaba Group Holding Ltd.^1,2		1,355,096	$	36,032
Alibaba Group Holding Ltd. (ADR)²		30,300		6,427
Melco Resorts & Entertainment Ltd. (ADR)		931,500		22,514
Marriott International, Inc., Class A		144,800		21,927
Other securities				177,095
				263,995

Communication services 5.88%
Facebook, Inc., Class A²		268,000		55,007
Alphabet Inc., Class C²		23,220		31,046
Alphabet Inc., Class A²		10,000		13,394
Other securities				121,865
				221,312

Consumer staples 5.58%
Kweichow Moutai Co., Ltd., Class A¹		334,161		56,813
Nestlé SA¹		333,296		36,108
Treasury Wine Estates Ltd.¹		2,885,454		32,974
Other securities				83,858
				209,753

Industrials 4.40%
Airbus SE, non-registered shares¹		276,729		40,601
Shanghai International Airport Co., Ltd., Class A¹		2,014,760		22,791
Nidec Corp.¹		165,000		22,540
Other securities				79,556
				165,488

Real estate 1.09%
Other securities				41,216

Utilities 0.89%
Other securities				33,336

Total common stocks (cost: $2,372,140,000)				3,322,603

Preferred securities 1.90%
Industrials 0.65%
Azul SA, preferred nominative (ADR)²		433,223		18,542
Azul SA, preferred nominative²		419,250		6,074
				24,616

Other 1.25%
Other securities				46,788

Total preferred securities (cost: $50,498,000)				71,404

Rights & warrants 0.70%
Other 0.70%
Other securities				26,479

Total rights & warrants (cost: $15,629,000)				26,479

Bonds, notes & other debt instruments 2.57%	Principal amount (000)
Bonds & notes of governments & government agencies outside the U.S. 2.35%
Other securities				88,624

American Funds Insurance Series

New World Fund

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
Corporate bonds & notes 0.22%
Other 0.22%
Other securities			$	8,190

Total corporate bonds & notes				8,190
Total bonds, notes & other debt instruments (cost: $92,583,000)				96,814

Short-term securities 6.56%		Shares
Money market investments 6.35%
Capital Group Central Cash Fund 1.73%³		2,386,731		238,673

	Principal amount (000)
Other short-term securities 0.21%
Other securities				7,930

Total short-term securities (cost: $251,630,000)				246,603
Total investment securities 100.09% (cost: $2,782,480,000)				3,763,903
Other assets less liabilities (0.09)%				(3,492	)

Net assets 100.00%			$	3,760,411

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” also includes securities (with an aggregate value of $61,434,000, which represented 1.63% of the net assets of the fund) which were acquired in transactions exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers.

“Other securities” also includes securities on loan. The total value of securities on loan was $2,679,000, which represented .07% of the net assets of the fund. Refer to Note 5 for more information on securities lending.

¹	Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $1,928,580,000, which represented 51.29% of the net assets of the fund. This amount includes $1,899,554,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading.
²	Security did not produce income during the last 12 months.
³	Rate represents the seven-day yield at 12/31/2019.

Key to abbreviation

ADR = American Depositary Receipts

See notes to financial statements.

60	American Funds Insurance Series

Blue Chip Income and Growth Fund

Summary investment portfolio December 31, 2019

Common stocks 96.37%	Shares		Value (000)
Health care 21.60%
Abbott Laboratories		5,266,500	$	457,448
UnitedHealth Group Inc.		1,137,000		334,255
AbbVie Inc.		3,603,660		319,068
Amgen Inc.		1,194,510		287,961
Gilead Sciences, Inc.		2,845,712		184,914
Teva Pharmaceutical Industries Ltd. (ADR)¹		10,333,800		101,271
Humana Inc.		259,000		94,929
Medtronic PLC		700,000		79,415
Other securities				146,171
				2,005,432

Information technology 15.66%
Microsoft Corp.		2,469,200		389,393
QUALCOMM Inc.		2,846,800		251,173
Broadcom Inc.		575,100		181,743
Apple Inc.		400,000		117,460
Mastercard Inc., Class A		337,000		100,625
Intel Corp.		1,680,000		100,548
Texas Instruments Inc.		780,000		100,066
Accenture PLC, Class A		400,000		84,228
Automatic Data Processing, Inc.		338,500		57,715
Other securities				70,326
				1,453,277

Energy 13.73%
Exxon Mobil Corp.		4,883,200		340,750
EOG Resources, Inc.		3,208,800		268,769
Diamondback Energy, Inc.		1,320,033		122,578
Schlumberger Ltd.		2,602,000		104,600
Baker Hughes Co., Class A		3,942,000		101,034
Concho Resources Inc.		859,500		75,266
TC Energy Corp.		1,350,000		71,969
Royal Dutch Shell PLC, Class B (ADR)		1,134,000		68,006
Other securities				121,236
				1,274,208

Consumer staples 10.82%
Philip Morris International Inc.		3,005,600		255,747
British American Tobacco PLC (ADR)		4,935,830		209,575
Constellation Brands, Inc., Class A		793,100		150,491
Costco Wholesale Corp.		273,000		80,240
Coca-Cola Co.		1,387,000		76,770
Altria Group, Inc.		1,500,000		74,865
Other securities				156,377
				1,004,065

Industrials 9.91%
CSX Corp.		3,628,500		262,558
General Dynamics Corp.		1,421,634		250,705
Illinois Tool Works Inc.		650,000		116,760
Airbus Group SE (ADR)		2,639,000		96,983
United Technologies Corp.		500,000		74,880
Union Pacific Corp.		400,000		72,316
Other securities				45,917
				920,119

American Funds Insurance Series

Blue Chip Income and Growth Fund

Common stocks (continued)	Shares		Value (000)
Communication services 6.88%
Facebook, Inc., Class A¹		1,339,800	$	274,994
Alphabet Inc., Class A¹		103,775		138,995
Alphabet Inc., Class C¹		3,000		4,011
Verizon Communications Inc.		1,604,500		98,516
Comcast Corp., Class A		1,970,000		88,591
Other securities				33,749
				638,856

Financials 5.12%
JPMorgan Chase & Co.		1,309,000		182,475
Wells Fargo & Co.		1,500,000		80,700
U.S. Bancorp		1,000,000		59,290
Other securities				152,813
				475,278

Consumer discretionary 4.87%
Lowe’s Cos., Inc.		1,314,975		157,481
McDonald’s Corp.		500,000		98,805
Other securities				196,078
				452,364

Utilities 3.10%
Public Service Enterprise Group Inc.		2,594,000		153,176
American Electric Power Co., Inc.		600,000		56,706
Other securities				78,146
				288,028

Real estate 2.35%
Other securities				217,896

Materials 2.33%
Linde PLC		884,700		188,353
Other securities				27,638
				215,991

Total common stocks (cost: $6,823,043,000)				8,945,514

Rights & warrants 0.14%
Financials 0.14%
Other securities				13,179

Total rights & warrants (cost: $19,905,000)				13,179

Convertible stocks 0.06%
Health care 0.06%
Other securities				5,777

Total convertible stocks (cost: $4,979,000)				5,777

62	American Funds Insurance Series

Blue Chip Income and Growth Fund

Short-term securities 3.37%	Shares		Value (000)
Money market investments 3.37%
Capital Group Central Cash Fund 1.73%²		3,124,623	$	312,462

Total short-term securities (cost: $312,432,000)				312,462
Total investment securities 99.94% (cost: $7,160,359,000)				9,276,932
Other assets less liabilities 0.06%				5,429

Net assets 100.00%			$	9,282,361

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.

¹	Security did not produce income during the last 12 months.
²	Rate represents the seven-day yield at 12/31/2019.

Key to abbreviation

ADR = American Depositary Receipts

See notes to financial statements.

American Funds Insurance Series

Global Growth and Income Fund

Summary investment portfolio December 31, 2019

Common stocks 96.65%	Shares		Value (000)
Information technology 15.69%
Taiwan Semiconductor Manufacturing Co., Ltd.¹		8,650,800	$	95,803
Microsoft Corp.		281,000		44,314
PagSeguro Digital Ltd., Class A²		1,128,752		38,558
Broadcom Inc.		121,200		38,302
Apple Inc.		112,390		33,003
ASML Holding NV¹		70,000		20,847
Other securities				64,750
				335,577

Industrials 12.59%
Airbus SE, non-registered shares¹		623,200		91,434
CCR SA, ordinary nominative		7,680,800		36,240
Lockheed Martin Corp.		66,000		25,699
Safran SA¹		123,500		19,144
Rheinmetall AG¹		151,500		17,422
Boeing Co.		49,400		16,093
Other securities				63,201
				269,233

Financials 11.87%
Sberbank of Russia PJSC (ADR)¹		1,710,000		28,136
AIA Group Ltd.¹		2,503,000		26,336
HDFC Bank Ltd.¹		1,288,000		22,955
Toronto-Dominion Bank (CAD denominated)		300,700		16,865
DBS Group Holdings Ltd.¹		803,000		15,478
Ping An Insurance (Group) Co. of China, Ltd., Class H¹		1,195,000		14,156
CME Group Inc., Class A		70,000		14,050
Sony Financial Holdings Inc.¹		550,000		13,165
Other securities				102,601
				253,742

Consumer discretionary 9.58%
LVMH Moët Hennessy-Louis Vuitton SE¹		56,200		26,174
Home Depot, Inc.		75,500		16,488
Norwegian Cruise Line Holdings Ltd.²		275,000		16,063
Flutter Entertainment PLC¹		124,000		15,143
Alibaba Group Holding Ltd.^1,2		558,400		14,848
Other securities				116,164
				204,880

Health care 9.36%
UnitedHealth Group Inc.		86,300		25,370
AstraZeneca PLC¹		167,000		16,708
Boston Scientific Corp.²		351,000		15,872
Merck & Co., Inc.		169,850		15,448
Abbott Laboratories		171,000		14,853
Novartis AG¹		148,000		14,022
Fleury SA, ordinary nominative		1,750,000		13,281
Other securities				84,510
				200,064

Communication services 8.45%
Nintendo Co., Ltd.¹		235,700		95,140
Alphabet Inc., Class A²		21,800		29,199
Alphabet Inc., Class C²		7,000		9,359
Comcast Corp., Class A		296,000		13,311
Other securities				33,697
				180,706

64	American Funds Insurance Series

Global Growth and Income Fund

Common stocks		Shares		Value (000)
Materials 7.57%
Fortescue Metals Group Ltd.¹			4,763,816	$	35,905
Freeport-McMoRan Inc.			2,499,000		32,787
Vale SA, ordinary nominative			2,220,000		29,415
Koninklijke DSM NV¹			109,000		14,228
Other securities					49,629
					161,964

Energy 6.53%
Reliance Industries Ltd.¹			2,714,148		57,652
Gazprom PJSC (ADR)¹			3,431,000		28,254
Other securities					53,777
					139,683

Utilities 5.79%
E.ON SE¹			3,644,000		38,972
Ørsted AS¹			345,482		35,794
Enel SpA¹			3,539,000		28,154
Other securities					20,931
					123,851

Real estate 5.19%
MGM Growth Properties LLC REIT, Class A			1,101,200		34,104
Gaming and Leisure Properties, Inc. REIT			425,000		18,296
Alexandria Real Estate Equities, Inc. REIT			103,000		16,643
Other securities					42,014
					111,057

Consumer staples 4.03%
Nestlé SA¹			324,275		35,131
Other securities					50,996
					86,127

Total common stocks (cost: $1,433,746,000)					2,066,884

Preferred securities 0.37%
Financials 0.37%
Other securities					7,892

Total preferred securities (cost: $6,929,000)					7,892

Bonds, notes & other debt instruments 1.63%	Principal amount (000)
Corporate bonds & notes 1.63%
Communication services 1.63%
Sprint Corp. 7.25% 2021		$	33,000		34,957

Total bonds, notes & other debt instruments (cost: $32,020,000)					34,957

Short-term securities 1.34%			Shares
Money market investments 1.34%
Capital Group Central Cash Fund 1.73%³			285,611		28,561

Total short-term securities (cost: $28,489,000)					28,561
Total investment securities 99.99% (cost: $1,501,184,000)					2,138,294
Other assets less liabilities 0.01%					189

Net assets 100.00%				$	2,138,483

American Funds Insurance Series

Global Growth and Income Fund

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.

Forward currency contracts

Contract amount				Unrealized depreciation
Purchases (000)	Sales (000)	Counterparty	Settlement date	at 12/31/2019 (000)
USD7,235	AUD10,500	Citibank	1/17/2020		$	(137	)

¹	Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $1,146,095,000, which represented 53.59% of the net assets of the fund. This entire amount relates to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading.
²	Security did not produce income during the last 12 months.
³	Rate represents the seven-day yield at 12/31/2019.

Key to abbreviations and symbol

ADR = American Depositary Receipts

AUD = Australian dollars

CAD = Canadian dollars

USD/$ = U.S. dollars

See notes to financial statements.

66	American Funds Insurance Series

Growth-Income Fund

Summary investment portfolio December 31, 2019

Common stocks 94.10%	Shares		Value (000)
Health care 16.21%
UnitedHealth Group Inc.		3,133,668	$	921,236
Abbott Laboratories		6,789,069		589,698
Amgen Inc.		2,000,500		482,261
Gilead Sciences, Inc.		6,917,600		449,506
Eli Lilly and Co.		2,892,600		380,174
Merck & Co., Inc.		3,338,880		303,671
Cigna Corp.		1,327,418		271,444
AstraZeneca PLC¹		1,643,500		164,430
AstraZeneca PLC (ADR)		1,228,600		61,258
Other securities				2,215,742
				5,839,420

Information technology 15.04%
Microsoft Corp.		9,454,500		1,490,975
Broadcom Inc.		2,152,434		680,212
Intel Corp.		6,651,600		398,098
Texas Instruments Inc.		2,127,082		272,883
Accenture PLC, Class A		1,067,900		224,868
Visa Inc., Class A		1,160,200		218,002
Mastercard Inc., Class A		710,000		211,999
Other securities				1,923,211
				5,420,248

Communication services 12.02%
Facebook, Inc., Class A²		6,826,100		1,401,057
Netflix, Inc.²		2,352,425		761,174
Alphabet Inc., Class C²		296,784		396,806
Alphabet Inc., Class A²		247,980		332,142
Comcast Corp., Class A		6,693,400		301,002
Charter Communications, Inc., Class A²		438,369		212,644
Verizon Communications Inc.		3,379,400		207,495
Other securities				719,670
				4,331,990

Financials 10.86%
JPMorgan Chase & Co.		4,005,030		558,301
CME Group Inc., Class A		1,642,100		329,602
Intercontinental Exchange, Inc.		3,183,555		294,638
Willis Towers Watson PLC		1,314,000		265,349
Aon PLC, Class A		1,214,800		253,031
Nasdaq, Inc.		2,129,600		228,080
Bank of New York Mellon Corp.		4,159,300		209,338
Other securities				1,773,710
				3,912,049

Industrials 10.57%
Airbus SE, non-registered shares¹		2,904,564		426,151
BWX Technologies, Inc.³		5,414,670		336,143
TransDigm Group Inc.		578,800		324,128
Northrop Grumman Corp.		733,200		252,199
General Dynamics Corp.		1,381,600		243,645
Equifax Inc.		1,386,600		194,290
Other securities				2,031,239
				3,807,795

American Funds Insurance Series

Growth-Income Fund

Common stocks (continued)	Shares		Value (000)
Consumer staples 7.10%
Coca-Cola Co.		7,316,100	$	404,946
British American Tobacco PLC¹		8,069,260		343,793
British American Tobacco PLC (ADR)		479,440		20,357
Keurig Dr Pepper Inc.		7,241,735		209,648
Carlsberg A/S, Class B¹		1,390,224		207,388
Other securities				1,372,011
				2,558,143

Energy 6.94%
Exxon Mobil Corp.		6,274,200		437,814
EOG Resources, Inc.		3,943,800		330,333
Chevron Corp.		2,485,800		299,564
Enbridge Inc. (CAD denominated)		7,486,412		297,658
Canadian Natural Resources, Ltd. (CAD denominated)		8,803,800		284,748
Other securities				849,638
				2,499,755

Consumer discretionary 5.06%
Amazon.com, Inc.²		297,400		549,548
Other securities				1,274,385
				1,823,933

Materials 4.83%
Celanese Corp.		3,243,233		399,307
Linde PLC		1,152,000		245,261
Other securities				1,096,901
				1,741,469

Real estate 2.97%
Equinix, Inc. REIT		533,800		311,579
Crown Castle International Corp. REIT		2,071,500		294,464
Other securities				462,520
				1,068,563

Utilities 2.45%
Sempra Energy		1,784,000		270,241
Other securities				610,705
				880,946

Mutual funds 0.05%
Other securities				16,337

Total common stocks (cost: $23,281,968,000)				33,900,648

Convertible stocks 0.51%
Real estate 0.24%
Crown Castle International Corp. REIT, Series A, convertible preferred, 6.875% 2020		67,900		87,030

Health care 0.16%
Other securities				58,952

Information technology 0.11%
Broadcom Inc., Series A, cumulative convertible preferred, 8.00% 2022		32,900		38,755

Total convertible stocks (cost: $162,141,000)				184,737

68	American Funds Insurance Series

Growth-Income Fund

Bonds, notes & other debt instruments 0.02%	Principal amount (000)		Value (000)
Corporate bonds & notes 0.02%
Energy 0.02%
Other securities			$	5,722

Total bonds, notes & other debt instruments (cost: $5,266,000)				5,722

Short-term securities 5.39%		Shares
Money market investments 5.39%
Capital Group Central Cash Fund 1.73%⁴		19,405,997		1,940,600

Total short-term securities (cost: $1,939,508,000)				1,940,600
Total investment securities 100.02% (cost: $25,388,883,000)				36,031,707
Other assets less liabilities (0.02)%				(5,441	)

Net assets 100.00%			$	36,026,266

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities“ also includes a security (with a value of $5,722,000, which represented .02% of the net assets of the fund) which was acquired in transactions exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers.

Investments in affiliates

A company is an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings represent 5% or more of the outstanding voting shares of that company. The value of the fund’s affiliated-company holding is shown in the summary investment portfolio. Further details on this holding and related transactions during the year ended December 31, 2019, appear below.

	Beginning shares		Additions		Reductions		Ending shares		Net realized loss (000)			Net unrealized appreciation (000)		Dividend income (000)		Value of affiliates at 12/31/2019 (000)
Common stocks 0.93%
Industrials 0.93%
BWX Technologies, Inc.		5,290,948		489,900		366,178		5,414,670	$	(1,021	)	$	128,124	$	3,592	$	336,143

¹	Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $3,637,561,000, which represented 10.10% of the net assets of the fund. This amount includes $3,621,224,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading.
²	Security did not produce income during the last 12 months.
³	Represents an affiliated company as defined under the Investment Company Act of 1940.
⁴	Rate represents the seven-day yield at 12/31/2019.

Key to abbreviations

ADR = American Depositary Receipts

CAD = Canadian dollars

See notes to financial statements.

American Funds Insurance Series

International Growth and Income Fund

Summary investment portfolio December 31, 2019

Common stocks 88.41%	Shares		Value (000)
Financials 16.74%
HDFC Bank Ltd.¹		2,457,600	$	43,799
Zurich Insurance Group AG¹		92,200		37,815
AIA Group Ltd.¹		2,338,600		24,606
Banco Santander, SA¹		4,834,538		20,413
ING Groep NV¹		1,367,000		16,429
Sony Financial Holdings Inc.¹		660,400		15,808
Prudential PLC¹		738,000		14,200
Bank Rakyat Indonesia (Persero) Tbk PT¹		43,843,000		13,837
DBS Group Holdings Ltd.¹		558,000		10,756
Haci Ömer Sabanci Holding AS¹		6,520,900		10,463
Other securities				43,052
				251,178

Industrials 10.95%
Airbus SE, non-registered shares¹		216,160		31,715
Shanghai International Airport Co., Ltd., Class A¹		2,590,033		29,298
ASSA ABLOY AB, Class B¹		681,100		15,916
Komatsu Ltd.¹		629,600		15,095
Airports of Thailand PCL, foreign registered¹		5,250,000		12,974
SMC Corp.¹		23,300		10,651
Adani Ports & Special Economic Zone Ltd.¹		1,975,327		10,135
Other securities				38,511
				164,295

Consumer discretionary 10.51%
Luckin Coffee Inc., Class A (ADR)²		987,340		38,862
Sony Corp.¹		430,000		29,269
LVMH Moët Hennessy-Louis Vuitton SE¹		48,000		22,355
Kering SA¹		29,000		19,104
Galaxy Entertainment Group Ltd.¹		2,365,000		17,432
Alibaba Group Holding Ltd. (ADR)²		79,100		16,777
Other securities				13,788
				157,587

Health care 9.46%
Novartis AG¹		502,545		47,612
Daiichi Sankyo Co., Ltd.¹		561,000		37,044
Takeda Pharmaceutical Co. Ltd.¹		518,353		20,536
Fresenius SE & Co. KGaA¹		275,800		15,568
Other securities				21,085
				141,845

Energy 7.44%
Royal Dutch Shell PLC, Class A (GBP denominated)¹		2,147,691		63,839
Royal Dutch Shell PLC, Class B¹		138,000		4,112
TOTAL SA¹		404,534		22,356
Canadian Natural Resources, Ltd. (CAD denominated)		272,500		8,814
Canadian Natural Resources, Ltd.		92,000		2,976
Other securities				9,504
				111,601

Utilities 6.31%
E.ON SE¹		3,488,000		37,304
ENN Energy Holdings Ltd.¹		1,658,000		18,128
Other securities				39,281
				94,713

70	American Funds Insurance Series

International Growth and Income Fund

Common stocks		Shares		Value (000)
Materials 6.11%
Rio Tinto PLC¹			658,800	$	39,144
Kansai Paint Co., Ltd.¹			512,000		12,514
Air Liquide SA, non-registered shares¹			79,200		11,256
Other securities					28,698
					91,612

Information technology 5.64%
Taiwan Semiconductor Manufacturing Co., Ltd.¹			2,804,000		31,053
Tokyo Electron Ltd.¹			96,500		21,206
ASML Holding NV¹			47,800		14,235
Samsung Electronics Co., Ltd.¹			259,000		12,480
Other securities					5,577
					84,551

Consumer staples 5.21%
British American Tobacco PLC¹			548,402		23,365
Pernod Ricard SA¹			128,650		23,029
Coca-Cola Icecek AS, Class C¹			2,631,000		17,131
Other securities					14,657
					78,182

Communication services 5.15%
Singapore Telecommunications Ltd.¹			9,429,449		23,646
SoftBank Group Corp.¹			487,600		21,229
Yandex NV, Class A²			470,000		20,440
Other securities					12,003
					77,318

Real estate 4.89%
Sun Hung Kai Properties Ltd.¹			2,061,500		31,622
CK Asset Holdings Ltd.¹			2,626,000		19,032
China Overseas Land & Investment Ltd.¹			3,944,000		15,403
Other securities					7,322
					73,379

Total common stocks (cost: $1,069,560,000)					1,326,261

Preferred securities 2.10%
Financials 1.83%
Itaú Unibanco Holding SA, preferred nominative (ADR)			2,993,550		27,391

Energy 0.27%
Other securities					4,072

Total preferred securities (cost: $26,377,000)					31,463

Bonds, notes & other debt instruments 1.12%	Principal amount (000)
Bonds & notes of governments & government agencies outside the U.S. 0.58%
Bonds & notes of governments & government agencies outside the U.S. 0.58%
Other securities					8,743

Corporate bonds & notes 0.54%
Other 0.54%
Other securities					8,076

Total bonds, notes & other debt instruments (cost: $15,646,000)					16,819

American Funds Insurance Series

International Growth and Income Fund

Short-term securities 8.54%	Shares		Value (000)
Money market investments 8.54%
Capital Group Central Cash Fund 1.73%³		1,280,263	$	128,026

Total short-term securities (cost: $127,980,000)				128,026
Total investment securities 100.17% (cost: $1,239,563,000)				1,502,569
Other assets less liabilities (0.17)%				(2,483	)

Net assets 100.00%			$	1,500,086

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities“ also includes a security (with a value of $1,931,000, which represented .13% of the net assets of the fund) which was acquired in transactions exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers.

Forward currency contracts

Contract amount				Unrealized depreciation
Purchases (000)	Sales (000)	Counterparty	Settlement date	at 12/31/2019 (000)
USD1,609	GBP1,223	Bank of America	1/9/2020		$	(11	)

¹	Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $1,211,171,000, which represented 80.74% of the net assets of the fund. This entire amount relates to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading.
²	Security did not produce income during the last 12 months.
³	Rate represents the seven-day yield at 12/31/2019.

Key to abbreviations and symbol

ADR = American Depositary Receipts

CAD = Canadian dollars

GBP = British pounds

USD/$ = U.S. dollars

See notes to financial statements.

72	American Funds Insurance Series

Capital Income Builder

Summary investment portfolio December 31, 2019

Common stocks 68.57%	Shares		Value (000)
Consumer staples 10.33%
Philip Morris International Inc.		188,220	$	16,016
British American Tobacco PLC¹		307,500		13,101
Diageo PLC¹		303,200		12,777
Coca-Cola Co.		225,000		12,454
Carlsberg A/S, Class B¹		72,426		10,804
Altria Group, Inc.		205,470		10,255
Nestlé SA¹		69,277		7,505
Imperial Brands PLC¹		291,600		7,225
Other securities				13,015
				103,152

Information technology 9.62%
Microsoft Corp.		119,020		18,769
Broadcom Inc.		51,500		16,275
Taiwan Semiconductor Manufacturing Co., Ltd.¹		1,366,800		15,137
Intel Corp.		221,100		13,233
QUALCOMM Inc.		123,400		10,888
Other securities				21,730
				96,032

Financials 8.43%
CME Group Inc., Class A		66,166		13,281
Zurich Insurance Group AG¹		31,098		12,755
JPMorgan Chase & Co.		72,900		10,162
Truist Financial Corp.		152,006		8,561
Sampo Oyj, Class A¹		153,061		6,678
Swedbank AB, Class A¹		419,333		6,254
Other securities				26,516
				84,207

Real estate 7.88%
American Tower Corp. REIT		81,369		18,700
Crown Castle International Corp. REIT		130,300		18,522
Link Real Estate Investment Trust REIT¹		848,000		9,003
CK Asset Holdings Ltd.¹		971,500		7,041
Other securities				25,386
				78,652

Energy 6.06%
Royal Dutch Shell PLC, Class B¹		661,840		19,721
Royal Dutch Shell PLC, Class B (ADR)		8,500		510
Royal Dutch Shell PLC, Class A (GBP denominated)¹		101		3
Enbridge Inc. (CAD denominated)		458,570		18,233
Chevron Corp.		57,700		6,953
Other securities				15,110
				60,530

Health care 5.32%
AstraZeneca PLC¹		123,900		12,396
AstraZeneca PLC (ADR)		145,100		7,235
GlaxoSmithKline PLC¹		541,100		12,730
Pfizer Inc.		207,500		8,130
Other securities				12,654
				53,145

Communication services 4.89%
Vodafone Group PLC¹		6,536,800		12,690
Koninklijke KPN NV¹		2,808,662		8,299
Nippon Telegraph and Telephone Corp.¹		263,000		6,662
Other securities				21,142
				48,793

American Funds Insurance Series

Capital Income Builder

Common stocks (continued)		Shares		Value (000)
Utilities 4.80%
Enel SpA¹			2,008,308	$	15,977
Edison International			159,800		12,050
SSE PLC¹			339,756		6,510
Other securities					13,413
					47,950

Industrials 4.52%
Airbus SE, non-registered shares¹			92,765		13,610
Boeing Co.			21,750		7,085
BOC Aviation Ltd.¹			646,700		6,570
Other securities					17,891
					45,156

Consumer discretionary 4.07%
Las Vegas Sands Corp.			195,000		13,463
Sands China Ltd.¹			1,782,000		9,556
Other securities					17,667
					40,686

Materials 2.65%
Dow Inc.			164,133		8,983
Other securities					17,517
					26,500

Total common stocks (cost: $597,003,000)					684,803

Rights & warrants 0.00%
Energy 0.00%
Other securities					—	²

Total rights & warrants (cost: $1,000)					—	²

Convertible stocks 1.61%
Utilities 0.74%
Sempra Energy, Series A, convertible preferred, 6.00% 2021			61,600		7,393

Information technology 0.46%
Broadcom Inc., Series A, cumulative convertible preferred, 8.00% 2022			3,900		4,594

Real estate 0.41%
Crown Castle International Corp. REIT, Series A, convertible preferred, 6.875% 2020			3,150		4,038

Total convertible stocks (cost: $13,498,000)					16,025

Bonds, notes & other debt instruments 21.35%	Principal amount (000)
U.S. Treasury bonds & notes 10.37%
U.S. Treasury 9.79%
U.S. Treasury 1.75% 2020		$	8,000		8,008
U.S. Treasury 2.00% 2022³			15,000		15,159
U.S. Treasury 2.125% 2022			8,800		8,931
U.S. Treasury 2.00% 2025			13,200		13,384
U.S. Treasury 1.875% 2026			6,300		6,331
U.S. Treasury 2.00% 2026			7,500		7,588
U.S. Treasury 0%–3.13% 2021–2049³			40,841		38,435
					97,836

74	American Funds Insurance Series

Capital Income Builder

Bonds, notes & other debt instruments	Principal amount (000)			Value (000)
U.S. Treasury inflation-protected securities 0.58%
U.S. Treasury Inflation-Protected Securities 0.50%–0.63% 2023–2028⁴		$	5,698	$	5,788

Total U.S. Treasury bonds & notes					103,624

Corporate bonds & notes 4.87%
Utilities 0.85%
Edison International 3.55%–5.75% 2024–2028			865		903
Southern California Edison Co. 3.60%–4.13% 2028–2048			694		720
Other securities					6,900
					8,523

Consumer staples 0.69%
Altria Group, Inc. 5.95% 2049			327		396
British American Tobacco PLC 3.22%–4.76% 2026–2049			1,190		1,211
Philip Morris International Inc. 3.375% 2029			450		472
Other securities					4,829
					6,908

Financials 0.68%
JPMorgan Chase & Co. 2.739% 2030 (USD-SOFR + 1.51% on 10/15/2029)⁵			246		246
Other securities					6,580
					6,826

Information technology 0.65%
Broadcom Inc. 4.75% 2029⁶			490		536
Broadcom Ltd. 3.875% 2027			370		384
Microsoft Corp. 1.55%–2.40% 2021–2022			1,505		1,519
Other securities					4,008
					6,447

Health care 0.53%
AstraZeneca PLC 3.375% 2025			200		212
Other securities					5,106
					5,318

Energy 0.41%
Enbridge Energy Partners, LP 7.375% 2045			73		109
Shell International Finance BV 2.00% 2024			420		419
Other securities					3,548
					4,076

Communication services 0.30%
Vodafone Group PLC 4.25% 2050			75		79
Other securities					2,904
					2,983

Other 0.76%
Other securities					7,557

Total corporate bonds & notes					48,638

Mortgage-backed obligations 4.64%
Federal agency mortgage-backed obligations 4.13%
Freddie Mac 3.01%–3.50% 2045–2049^7,8			13,624		13,995
Other securities					27,245
					41,240

American Funds Insurance Series

Capital Income Builder

Bonds, notes & other debt instruments (continued)	Principal amount (000)			Value (000)
Mortgage-backed obligations (continued)
Collateralized mortgage-backed obligations (privately originated) 0.51%
Other securities				$	5,082

Total mortgage-backed obligations					46,322

Asset-backed obligations 1.43%
Ford Credit Auto Owner Trust, Series 2015-1, Class A, 2.12% 2026^6,7		$	6,959		6,959
Other securities					7,310

Total asset-backed obligations					14,269

Municipals 0.04%
Other securities					415

Total bonds, notes & other debt instruments (cost: $208,835,000)					213,268

Short-term securities 7.66%		Shares
Money market investments 7.66%
Capital Group Central Cash Fund 1.73%⁹			765,198		76,520

Total short-term securities (cost: $76,393,000)					76,520
Total investment securities 99.19% (cost: $895,730,000)					990,616
Other assets less liabilities 0.81%					8,100

Net assets 100.00%				$	998,716

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.

Futures contracts

Contracts	Type	Number of contracts	Expiration	Notional amount (000)	¹⁰	Value at 12/31/2019 (000)	¹¹	Unrealized (depreciation) appreciation at 12/31/2019 (000)
2 Year U.S. Treasury Note Futures	Long	422	April 2020	$84,400		$90,941			$	(41	)
5 Year U.S. Treasury Note Futures	Short	50	April 2020	(5,000	)	(5,930	)			27
10 Year U.S. Treasury Note Futures	Long	37	March 2020	3,700		4,752				(40	)
10 Year Ultra U.S. Treasury Note Futures	Short	6	March 2020	(600	)	(844	)			10
20 Year U.S. Treasury Bond Futures	Long	49	March 2020	4,900		7,639				(162	)
30 Year Ultra U.S. Treasury Bond Futures	Long	23	March 2020	2,300		4,178				(125	)
									$	(331	)

76	American Funds Insurance Series

Capital Income Builder

Swap contracts

Interest rate swaps

Receive	Pay	Expiration date	Notional (000)		Value at 12/31/2019 (000)			Upfront payments/ receipts (000)			Unrealized appreciation (depreciation) at 12/31/2019 (000)
2.197%	U.S. EFFR	4/15/2021	$	31,000		$253			$	—		$	253
1.6325%	U.S. EFFR	7/18/2021		40,000		75				—			75
1.3615%	U.S. EFFR	11/1/2021		23,500		(36	)			—			(36	)
1.281%	U.S. EFFR	11/4/2021		23,500		(70	)			—			(70	)
U.S. EFFR	1.335%	11/26/2021		38,000		77				—			77
2.21875%	U.S. EFFR	3/14/2024		9,000		271				—			271
U.S. EFFR	1.485%	10/23/2029		5,000		76				—			76
U.S. EFFR	1.4869%	10/23/2029		4,600		69				—			69
U.S. EFFR	1.453%	10/24/2029		5,800		105				—			105
U.S. EFFR	1.4741%	10/24/2029		5,800		94				—			94
U.S. EFFR	1.4495%	10/24/2029		4,200		78				—			78
U.S. EFFR	1.446%	10/24/2029		600		11				—			11
1.419%	U.S. EFFR	11/26/2029		8,000		(174	)			—			(174	)
									$	—		$	829

The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.

¹	Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $345,473,000, which represented 34.59% of the net assets of the fund. This amount includes $345,261,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading.
²	Amount less than one thousand.
³	All or a portion of this security was pledged as collateral. The total value of pledged collateral was $1,180,000, which represented .12% of the net assets of the fund.
⁴	Index-linked bond whose principal amount moves with a government price index.
⁵	Step bond; coupon rate may change at a later date.
⁶	Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $21,329,000, which represented 2.14% of the net assets of the fund.
⁷	Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
⁸	Coupon rate may change periodically. Reference rate and spread are as of the most recent information available. Some coupon rates are determined by the issuer or agent based on current market conditions; therefore, the reference rate and spread are not available.
⁹	Rate represents the seven-day yield at 12/31/2019.
¹⁰	Notional amount is calculated based on the number of contracts and notional contract size.
¹¹	Value is calculated based on the notional amount and current market price.

Key to abbreviations and symbol

ADR = American Depositary Receipts

CAD = Canadian dollars

EFFR = Effective Federal Funds Rate

GBP = British pounds

SOFR = Secured Overnight Financing Rate

USD/$ = U.S. dollars

See notes to financial statements.

American Funds Insurance Series

Asset Allocation Fund

Summary investment portfolio December 31, 2019

Common stocks 64.44%	Shares		Value (000)
Information technology 15.65%
Microsoft Corp.		6,891,900	$	1,086,852
Broadcom Inc.		2,097,200		662,757
ASML Holding NV (New York registered)		1,865,000		551,928
ASML Holding NV¹		70,000		20,847
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR)		6,806,700		395,469
MKS Instruments, Inc.²		2,800,000		308,028
VeriSign, Inc.³		1,400,000		269,752
Intel Corp.		3,500,000		209,475
Visa Inc., Class A		1,032,000		193,913
Dell Technologies Inc., Class C³		3,387,100		174,063
Mastercard Inc., Class A		451,000		134,664
Other securities				284,508
				4,292,256

Financials 11.02%
First Republic Bank		3,380,000		396,981
Chubb Ltd.		2,375,000		369,693
Arch Capital Group Ltd.³		7,331,500		314,448
JPMorgan Chase & Co.		1,600,000		223,040
Bank of America Corp.		6,000,000		211,320
Capital One Financial Corp.		2,000,000		205,820
Citigroup Inc.		2,500,000		199,725
CME Group Inc., Class A		977,200		196,144
Apollo Global Management, Inc., Class A		3,090,000		147,424
Other securities				758,031
				3,022,626

Health care 10.65%
UnitedHealth Group Inc.		2,016,300		592,752
Johnson & Johnson		3,200,000		466,784
Humana Inc.		1,265,000		463,648
Abbott Laboratories		3,000,000		260,580
Cigna Corp.		1,250,000		255,612
Merck & Co., Inc.		2,420,300		220,126
Other securities				660,419
				2,919,921

Industrials 5.90%
Northrop Grumman Corp.		1,449,400		498,550
Boeing Co.		1,417,300		461,700
Lockheed Martin Corp.		847,200		329,883
CSX Corp.		1,875,000		135,675
Other securities				191,830
				1,617,638

Consumer discretionary 4.89%
Home Depot, Inc.		1,188,000		259,435
Amazon.com, Inc.³		103,000		190,328
Suzuki Motor Corp.¹		4,500,000		188,490
Aramark		4,300,000		186,620
General Motors Co.		4,100,000		150,060
VF Corp.		1,400,000		139,524
Kontoor Brands, Inc.²		3,250,000		136,467
Other securities				90,610
				1,341,534

78	American Funds Insurance Series

Asset Allocation Fund

Common stocks		Shares		Value (000)
Communication services 4.32%
Charter Communications, Inc., Class A³			942,126	$	457,006
Alphabet Inc., Class C³			133,600		178,626
Alphabet Inc., Class A³			111,200		148,940
Facebook, Inc., Class A³			1,077,100		221,075
Other securities					178,690
					1,184,337

Consumer staples 4.20%
Philip Morris International Inc.			6,243,000		531,217
Nestlé SA¹			3,006,689		325,734
Nestlé SA (ADR)			900,000		97,434
Altria Group, Inc.			3,200,000		159,712
Other securities					37,280
					1,151,377

Energy 3.76%
Noble Energy, Inc.			13,500,000		335,340
Cenovus Energy Inc. (CAD denominated)			29,000,000		294,790
Royal Dutch Shell PLC, Class B (ADR)			2,745,000		164,618
Other securities					234,790
					1,029,538

Materials 2.55%
Dow Inc.			5,416,666		296,454
Other securities					401,213
					697,667

Real estate 0.87%
Other securities					238,213

Utilities 0.63%
CMS Energy Corp.			2,284,700		143,570
Other securities					29,351
					172,921

Total common stocks (cost: $11,151,198,000)					17,668,028

Rights & warrants 0.00%
Other 0.00%
Other securities					1,070

Total rights & warrants (cost: $3,366,000)					1,070

Convertible stocks 0.52%
Information technology 0.26%
Broadcom Inc., Series A, cumulative convertible preferred, 8.00% 2022⁴			60,000		70,678

Other 0.26%
Other securities					72,133

Total convertible stocks (cost: $126,588,000)					142,811

Convertible bonds 0.00%	Principal amount (000)
Communication services 0.00%
Other securities					127

Total convertible bonds (cost: $101,000)					127

American Funds Insurance Series

Asset Allocation Fund

Bonds, notes & other debt instruments 29.78%	Principal amount (000)			Value (000)
U.S. Treasury bonds & notes 11.77%
U.S. Treasury 9.68%
U.S. Treasury 2.50% 2021		$	200,000	$	201,868
U.S. Treasury 1.75% 2024			155,150		155,659
U.S. Treasury 2.50% 2024⁵			225,000		232,461
U.S. Treasury 1.13%–3.00% 2020–2049⁵			2,040,982		2,063,170
					2,653,158

U.S. Treasury inflation-protected securities 2.09%
U.S. Treasury Inflation-Protected Securities 0.13%–1.38% 2024–2049^5,6			545,525		573,509

Total U.S. Treasury bonds & notes					3,226,667

Corporate bonds & notes 10.36%
Health care 1.67%
UnitedHealth Group Inc. 2.38%–4.45% 2024–2048			14,455		16,075
Other securities					441,912
					457,987

Financials 1.52%
ACE INA Holdings Inc. 2.30%–4.35% 2020–2045			7,405		7,765
Other securities					410,159
					417,924

Energy 1.34%
Cenovus Energy Inc. 3.80%–5.40% 2023–2047			11,635		12,381
Noble Energy, Inc. 3.25%–4.95% 2028–2047			9,438		9,703
Other securities					344,613
					366,697

Communication services 1.07%
Alphabet Inc. 1.998% 2026			3,000		2,984
CCO Holdings LLC and CCO Holdings Capital Corp. 4.50%–6.48% 2023–2050⁷			37,855		41,961
Other securities					248,604
					293,549

Industrials 0.82%
Boeing Co. 2.70%–3.90% 2022–2049			17,781		18,552
Lockheed Martin Corp. 2.50%–3.55% 2020–2026			10,935		11,243
Northrop Grumman Corp. 2.55%–3.25% 2022–2028			16,052		16,535
Other securities					179,446
					225,776

Consumer discretionary 0.72%
Home Depot, Inc. 2.95%–4.50% 2028–2048			14,113		15,332
Other securities					180,639
					195,971

Consumer staples 0.64%
Nestlé Holdings, Inc. 3.35% 2023⁷			750		785
Philip Morris International Inc. 1.88%–3.38% 2020–2029			12,186		12,513
Other securities					162,290
					175,588

Information technology 0.47%
Broadcom Inc. 3.13%–4.75% 2022–2029⁷			26,670		28,598
Broadcom Ltd. 3.50%–3.88% 2024–2028			7,524		7,700
Microsoft Corp. 1.55%–4.25% 2021–2047			20,985		22,758
Other securities					71,003
					130,059

80	American Funds Insurance Series

Asset Allocation Fund

Bonds, notes & other debt instruments	Principal amount (000)			Value (000)
Other 2.11%
Other securities				$	577,127

Total corporate bonds & notes					2,840,678

Mortgage-backed obligations 6.93%
Federal agency mortgage-backed obligations 6.68%
Fannie Mae 0%–7.50% 2021–2050^8,9		$	628,513		649,074
Freddie Mac 2.45%–5.42% 2023–2049^8,9			289,392		299,107
Government National Mortgage Assn. 3.50%–4.50% 2048–2050^8,10			535,819		556,289
Other securities					327,651
					1,832,121

Other 0.25%
Other securities					68,092

Total mortgage-backed obligations					1,900,213

Federal agency bonds & notes 0.05%
Fannie Mae 1.875% 2026			13,000		12,974

Other 0.67%
Other securities					186,876

Total bonds, notes & other debt instruments (cost: $8,000,047,000)					8,167,408

Short-term securities 5.80%		Shares
Money market investments 5.80%
Capital Group Central Cash Fund 1.73%¹¹			15,848,444		1,584,844
Fidelity Institutional Money Market Funds - Government Portfolio 1.49%^11,12			997,009		997
Goldman Sachs Financial Square Government Fund 1.50%^11,12			960,737		961
Morgan Stanley Institutional Liquidity Funds - Government Portfolio 1.51%^11,12			2,634,650		2,635
					1,589,437

Total short-term securities (cost: $1,588,867,000)					1,589,437
Total investment securities 100.54% (cost: $20,870,167,000)					27,568,881
Other assets less liabilities (0.54)%					(149,226	)

Net assets 100.00%				$	27,419,655

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” also includes loan participations and assignments, which may be subject to legal or contractual restrictions on resale. The total value of all such loans was $40,104,000, which represented .15% of the net assets of the fund. Some securities in “Other securities” (with an aggregate value of $4,194,000, an aggregate cost of $9,168,000, and which represented .02% of the net assets of the fund) were acquired from 9/26/2013 to 9/4/2018 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject them to legal or contractual restrictions on resale.

American Funds Insurance Series

Asset Allocation Fund

Futures contracts

Contracts	Type	Number of contracts		Expiration	Notional amount (000)		¹³	Value at 12/31/2019 (000)			¹⁴	Unrealized (depreciation) appreciation at 12/31/2019 (000)
2 Year U.S. Treasury Note Futures	Long		5,773	April 2020	$	1,154,600			$	1,244,082			$	(625	)
5 Year U.S. Treasury Note Futures	Long		5,836	April 2020		583,600				692,204				(2,360	)
10 Year U.S. Treasury Note Futures	Short		214	March 2020		(21,400	)			(27,482	)			290
10 Year Ultra U.S. Treasury Note Futures	Short		836	March 2020		(83,600	)			(117,628	)			1,420
30 Year Ultra U.S. Treasury Bond Futures	Long		291	March 2020		29,100				52,862				(1,687	)
													$	(2,962	)

Swap contracts

Interest rate swaps

Receive	Pay	Expiration date	Notional (000)		Value at 12/31/2019 (000)			Upfront payments/ receipts (000)			Unrealized (depreciation) appreciation at 12/31/2019 (000)
3-month USD-LIBOR	2.18075%	3/29/2024	$	26,400		$	(518	)	$	—		$	(518	)
3-month USD-LIBOR	2.194%	3/29/2024		101,900			(2,056	)		—			(2,056	)
3-month USD-LIBOR	2.21875%	3/29/2024		107,250			(2,273	)		—			(2,273	)
3-month USD-LIBOR	1.5615%	11/27/2024		130,000			1,035			—			1,035
									$	—		$	(3,812	)

Investments in affiliates

A company is an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings represent 5% or more of the outstanding voting shares of that company. The value of the fund’s affiliated-company holdings is either shown in the summary investment portfolio or included in the value of “Other securities” under the respective industry sectors. Further details on these holdings and related transactions during the year ended December 31, 2019, appear below.

	Beginning shares or principal amount		Additions		Reductions		Ending shares or principal amount		Net realized loss (000)				Net unrealized appreciation (000)			Dividend or interest income (000)			Value of affiliates at 12/31/2019 (000)
Common stocks 1.62%
Information technology 1.12%
MKS Instruments, Inc.		—		2,800,000		—		2,800,000		$	—			$	70,752		$	1,510		$	308,028

Consumer discretionary 0.50%
Kontoor Brands, Inc.		—		3,250,000		—		3,250,000			—				45,066			3,548			136,467
Dillard’s, Inc., Class A (USA)¹⁵		1,700,000		—		1,700,000		—			(5,248	)			7,584			340			—
																					136,467

Energy 0.00%
Weatherford International PLC^3,15		60,000,000		—		60,000,000		—			(446,158	)			415,322			—			—

Total common stocks																					444,495

Bonds, notes & other debt instruments 0.00%
Energy 0.00%
Weatherford International LLC 9.875% 2025^15,16		—	$	2,550,000	$	2,550,000		—			(1,906	)			—			108			—
Weatherford International PLC 4.50% 2022^15,16	$	6,365,000		—	$	6,365,000		—			(4,097	)			1,849			198			—
Weatherford International PLC 8.25% 2023^15,16	$	5,800,000		—	$	5,800,000		—			(4,441	)			2,224			243			—
Weatherford International PLC 9.875% 2024^15,16	$	1,000,000		—	$	1,000,000		—			(778	)			391			49			—
Weatherford International PLC 9.875% 2025^7,15	$	2,550,000		—	$	2,550,000		—			—				973			19			—

82	American Funds Insurance Series

Asset Allocation Fund

	Beginning shares or principal amount		Additions		Reductions		Ending shares or principal amount		Net realized loss (000)				Net unrealized appreciation (000)			Dividend or interest income (000)			Value of affiliates at 12/31/2019 (000)
Weatherford International PLC 6.50% 2036^15,16	$	7,595,000		—	$	7,595,000		—		$	(4,703	)		$	2,519		$	249		$	—
Weatherford International PLC 6.75% 2040^15,16	$	7,825,000		—	$	7,825,000		—			(3,983	)			1,811			270			—
																					—
Total 1.62%										$	(471,314	)		$	548,491		$	6,534		$	444,495

The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.

¹	Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $923,930,000, which represented 3.37% of the net assets of the fund. This amount includes $906,137,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading.
²	Represents an affiliated company as defined under the Investment Company Act of 1940.
³	Security did not produce income during the last 12 months.
⁴	All or a portion of this security was on loan. The total value of all such securities, including those in “Other securities,” was $5,211,000, which represented .02% of the net assets of the fund. Refer to Note 5 for more information on securities lending.
⁵	All or a portion of this security was pledged as collateral. The total value of pledged collateral was $15,999,000, which represented .06% of the net assets of the fund.
⁶	Index-linked bond whose principal amount moves with a government price index.
⁷	Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $975,763,000, which represented 3.56% of the net assets of the fund.
⁸	Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
⁹	Coupon rate may change periodically. Reference rate and spread are as of the most recent information available. Some coupon rates are determined by the issuer or agent based on current market conditions; therefore, the reference rate and spread are not available.
¹⁰	Purchased on a TBA basis.
¹¹	Rate represents the seven-day yield at 12/31/2019.
¹²	Security purchased with cash collateral from securities on loan. Refer to Note 5 for more information on securities lending.
¹³	Notional amount is calculated based on the number of contracts and notional contract size.
¹⁴	Value is calculated based on the notional amount and current market price.
¹⁵	Unaffiliated issuer at 12/31/2019.
¹⁶	Scheduled interest and/or principal payment was not received.

Key to abbreviations and symbol

ADR = American Depositary Receipts

CAD = Canadian dollars

LIBOR = London Interbank Offered Rate

TBA = To-be-announced

USD/$ = U.S. dollars

See notes to financial statements.

American Funds Insurance Series

Global Balanced Fund

Summary investment portfolio December 31, 2019

Common stocks 64.17%	Shares		Value (000)
Information technology 13.78%
ASML Holding NV¹		34,500	$	10,275
Taiwan Semiconductor Manufacturing Co., Ltd.¹		860,000		9,524
Broadcom Inc.		26,895		8,500
Microsoft Corp.		49,620		7,825
PagSeguro Digital Ltd., Class A²		154,528		5,279
Temenos AG¹		18,000		2,846
Visa Inc., Class A		14,600		2,743
Tokyo Electron Ltd.¹		11,800		2,593
Other securities				10,638
				60,223

Health care 11.01%
Merck & Co., Inc.		116,325		10,580
AstraZeneca PLC¹		102,050		10,210
Humana Inc.		16,330		5,985
Coloplast A/S, Class B¹		23,150		2,878
Mettler-Toledo International Inc.²		3,500		2,776
Other securities				15,696
				48,125

Financials 9.46%
JPMorgan Chase & Co.		43,800		6,106
Zurich Insurance Group AG¹		13,940		5,717
Sberbank of Russia PJSC (ADR)¹		331,000		5,446
Berkshire Hathaway Inc., Class A²		16		5,434
AIA Group Ltd.¹		426,000		4,482
B3 SA - Brasil, Bolsa, Balcao		376,000		4,016
BlackRock, Inc.		5,730		2,881
Other securities				7,260
				41,342

Consumer staples 8.98%
Nestlé SA¹		64,100		6,944
British American Tobacco PLC¹		156,300		6,659
Altria Group, Inc.		122,500		6,114
Philip Morris International Inc.		59,300		5,046
Anheuser-Busch InBev SA/NV¹		47,200		3,871
Keurig Dr Pepper Inc.		106,000		3,069
Other securities				7,540
				39,243

Industrials 7.38%
Boeing Co.		12,700		4,137
Edenred SA¹		66,528		3,442
MTU Aero Engines AG¹		9,800		2,798
Other securities				21,883
				32,260

Consumer discretionary 4.48%
Home Depot, Inc.		21,275		4,646
General Motors Co.		110,500		4,044
Alibaba Group Holding Ltd.^1,2		109,600		2,915
LVMH Moët Hennessy-Louis Vuitton SE¹		5,765		2,685
Other securities				5,264
				19,554

Materials 2.71%
Givaudan SA¹		815		2,551
Other securities				9,273
				11,824

84	American Funds Insurance Series

Global Balanced Fund

Common stocks		Shares		Value (000)
Real estate 2.39%
Crown Castle International Corp. REIT			23,940	$	3,403
Gaming and Leisure Properties, Inc. REIT			59,720		2,571
Other securities					4,444
					10,418

Communication services 1.65%
Alphabet Inc., Class C²			3,579		4,785
Other securities					2,422
					7,207

Energy 1.64%
Canadian Natural Resources, Ltd. (CAD denominated)			89,000		2,878
Other securities					4,303
					7,181

Utilities 0.69%
Ørsted AS¹			29,100		3,015

Total common stocks (cost: $202,304,000)					280,392

Bonds, notes & other debt instruments 32.18%	Principal amount (000)
Bonds & notes of governments & government agencies outside the U.S. 13.76%
Japan, Series 346, 0.10% 2027		¥	304,250		2,842
Japan, Series 356, 0.10% 2029			420,000		3,911
Japan 0.10%–1.70% 2020–2044³			1,089,927		10,551
Other securities					42,821
					60,125

U.S. Treasury bonds & notes 11.68%
U.S. Treasury 9.42%
U.S. Treasury 2.25% 2021		$	5,000		5,043
U.S. Treasury 1.625% 2022⁴			2,850		2,851
U.S. Treasury 2.25% 2024			3,055		3,129
U.S. Treasury 2.25% 2027			2,800		2,880
U.S. Treasury 1.13%–3.13% 2020–2048⁴			26,442		27,242
					41,145

U.S. Treasury inflation-protected securities 2.26%
U.S. Treasury Inflation-Protected Security 0.875% 2029³			4,306		4,575
U.S. Treasury Inflation-Protected Security 1.00% 2049^3,4			2,301		2,561
U.S. Treasury Inflation-Protected Securities 0.13%–1.38% 2022–2044^3,4			2,643		2,761
					9,897

Total U.S. Treasury bonds & notes					51,042

Corporate bonds & notes 4.82%
Financials 1.07%
JPMorgan Chase & Co. 2.55%–3.25% 2021–2023			254		259
JPMorgan Chase & Co., Series S, junior subordinated, 6.75% (3-month USD-LIBOR + 3.78% on 2/1/2024)⁵			135		153
JPMorgan Chase Bank NA (3-month USD-LIBOR + 0.34%) 2.276% 2021⁶			300		300
Other securities					3,955
					4,667

Health care 0.68%
AstraZeneca PLC 2.38%–3.50% 2022–2023			260		268
Humana Inc. 3.15% 2022			100		103
Other securities					2,621
					2,992

American Funds Insurance Series

Global Balanced Fund

Bonds, notes & other debt instruments (continued)	Principal amount (000)			Value (000)
Corporate bonds & notes (continued)
Consumer staples 0.53%
Altria Group, Inc. 2.63%–5.80% 2020–2039		$	225	$	247
Altria Group, Inc. 1.00%–2.20% 2023–2027		€	380		447
British American Tobacco PLC 2.79%–4.76% 2024–2049		$	455		462
Philip Morris International Inc. 2.00%–2.63% 2020–2022			70		70
Reynolds American Inc. 4.00%–4.45% 2022–2025			120		129
Other securities					951
					2,306

Information technology 0.25%
Broadcom Ltd. 3.875% 2027			190		198
Microsoft Corp. 2.40%–3.30% 2026–2027			577		600
Other securities					297
					1,095

Other 2.29%
Other securities					10,014

Total corporate bonds & notes					21,074

Mortgage-backed obligations 1.92%
Federal agency mortgage-backed obligations 1.63%
Other securities					7,162

Other mortgage-backed securities 0.29%
Other securities					1,205

Total mortgage-backed obligations					8,367
Total bonds, notes & other debt instruments (cost: $136,525,000)					140,608

Short-term securities 3.41%
Other short-term securities 2.77%
Alberta (Province of) 1.77% due 1/8/2020⁷			5,750		5,748
Toronto-Dominion Bank 1.91% due 1/22/2020⁷			4,250		4,245
Other securities					2,102
					12,095

		Shares
Money market investments 0.64%
Capital Group Central Cash Fund 1.73%⁸			28,249		2,825

Total short-term securities (cost: $14,874,000)					14,920
Total investment securities 99.76% (cost: $353,703,000)					435,920
Other assets less liabilities 0.24%					1,030

Net assets 100.00%				$	436,950

86	American Funds Insurance Series

Global Balanced Fund

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.

Futures contracts

Contracts	Type	Number of contracts	Expiration	Notional amount (000)	⁹	Value at 12/31/2019 (000)			¹⁰	Unrealized depreciation at 12/31/2019 (000)
2 Year U.S. Treasury Note Futures	Long	53	April 2020	$10,600			$	11,421			$	(7	)
5 Year U.S. Treasury Note Futures	Long	21	April 2020	2,100				2,491				(9	)
											$	(16	)

Forward currency contracts

Contract amount

Unrealized
appreciation
(depreciation)

Purchases
(000)

Sales
(000)

Counterparty

Settlement
date

at 12/31/2019
(000)

EUR375

USD417

Standard Chartered Bank

1/6/2020

$ 4

USD857

ILS2,960

JPMorgan Chase

1/6/2020

—

¹¹

USD257

ZAR3,800

Citibank

1/6/2020

(14

)

USD636

JPY69,000

UBS AG

1/7/2020

USD173

ILS600

UBS AG

1/7/2020

)

JPY90,700

USD838

JPMorgan Chase

1/7/2020

)

CZK11,700

EUR458

Goldman Sachs

1/8/2020

USD113

CNH800

HSBC Bank

1/8/2020

)

CLP875,800

USD1,101

Morgan Stanley

1/9/2020

EUR300

USD335

Citibank

1/9/2020

USD334

EUR300

Morgan Stanley

1/9/2020

)

USD123

CLP98,800

Bank of America

1/9/2020

)

USD143

CLP114,114

Citibank

1/9/2020

)

USD344

CLP275,886

Citibank

1/9/2020

(24

)

USD569

BRL2,396

Goldman Sachs

1/9/2020

(26

)

USD474

CLP387,000

HSBC Bank

1/9/2020

(41

)

USD107

INR7,675

JPMorgan Chase

1/10/2020

)

EUR1,540

USD1,710

HSBC Bank

1/13/2020

GBP526

USD693

Bank of America

1/13/2020

USD335

EUR300

Citibank

1/13/2020

)

USD525

THB15,900

Standard Chartered Bank

1/13/2020

)

USD564

JPY61,000

Bank of New York Mellon

1/14/2020

JPY61,000

USD560

Bank of New York Mellon

1/14/2020

EUR217

USD242

Bank of New York Mellon

1/15/2020

GBP200

USD264

JPMorgan Chase

1/15/2020

KRW175,200

USD151

Standard Chartered Bank

1/15/2020

GBP730

EUR864

Goldman Sachs

1/15/2020

)

ILS2,600

USD745

Bank of America

1/16/2020

GBP900

USD1,185

HSBC Bank

1/16/2020

CAD10

USD8

JPMorgan Chase

1/16/2020

—

¹¹

USD517

MXN9,900

Citibank

1/16/2020

)

EUR1,456

NOK14,752

Bank of America

1/16/2020

(45

)

EUR700

USD783

Bank of America

1/17/2020

EUR410

USD459

Citibank

1/17/2020

EUR400

USD448

Standard Chartered Bank

1/17/2020

AUD1,450

USD1,000

Citibank

1/21/2020

USD55

JPY6,000

UBS AG

1/21/2020

—

¹¹

GBP370

USD495

Standard Chartered Bank

1/21/2020

)

EUR155

USD173

Citibank

1/23/2020

American Funds Insurance Series

Global Balanced Fund

Forward currency contracts (continued)

Contract amount

Unrealized
appreciation
(depreciation)

Purchases
(000)

Sales
(000)

Counterparty

Settlement
date

at 12/31/2019
(000)

USD250

INR17,800

HSBC Bank

1/23/2020

USD290

MXN5,515

UBS AG

1/23/2020

—

¹¹

USD235

CNH1,645

JPMorgan Chase

1/23/2020

)

EUR1,804

USD2,011

Standard Chartered Bank

1/27/2020

USD117

INR8,300

Standard Chartered Bank

1/27/2020

—

¹¹

USD73

BRL300

JPMorgan Chase

1/27/2020

)

CNH4,000

USD565

Standard Chartered Bank

2/10/2020

CNH1,550

USD220

Standard Chartered Bank

2/10/2020

USD284

CNH2,000

HSBC Bank

2/10/2020

)

USD1,456

CNH10,410

Standard Chartered Bank

2/10/2020

(38

)

USD510

MXN10,100

JPMorgan Chase

3/4/2020

(19

)

USD365

JPY39,400

Bank of New York Mellon

6/15/2020

)

USD212

BRL900

JPMorgan Chase

7/1/2020

(10

)

(99

)

Swap contracts

Interest rate swaps
Receive	Pay	Expiration date	Notional (000)		Value at 12/31/2019 (000)			Upfront payments/ receipts (000)			Unrealized (depreciation) appreciation at 12/31/2019 (000)
(0.0955)%	6-month EURIBOR	7/22/2024	€	4,400	$	(11	)		$	—		$	(11	)
6-month HUF-BUBOR	1.39%	11/11/2029	HUF	161,000		8				—			8
6-month PLN-WIBOR	1.90%	11/12/2029	PLN	2,100		(2	)			—			(2	)
6-month PLN-WIBOR	1.88%	11/20/2029		2,120		(1	)			—			(1	)
3-month USD-LIBOR	2.0105%	12/18/2049	$	215		4				—			4
									$	—		$	(2	)

The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.

¹	Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $134,619,000, which represented 30.81% of the net assets of the fund. This entire amount relates to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading.
²	Security did not produce income during the last 12 months.
³	Index-linked bond whose principal amount moves with a government price index.
⁴	All or a portion of this security was pledged as collateral. The total value of pledged collateral was $133,000, which represented .03% of the net assets of the fund.
⁵	Step bond; coupon rate may change at a later date.
⁶	Coupon rate may change periodically. Reference rate and spread are as of the most recent information available. Some coupon rates are determined by the issuer or agent based on current market conditions; therefore, the reference rate and spread are not available.
⁷	Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $18,373,000, which represented 4.20% of the net assets of the fund.
⁸	Rate represents the seven-day yield at 12/31/2019.
⁹	Notional amount is calculated based on the number of contracts and notional contract size.
¹⁰	Value is calculated based on the notional amount and current market price.
¹¹	Amount less than one thousand.

88	American Funds Insurance Series

Global Balanced Fund

Key to abbreviations and symbols

ADR = American Depositary Receipts

AUD = Australian dollars

BRL = Brazilian reais

BUBOR = Budapest Interbank Offered Rate

CAD = Canadian dollars

CLP = Chilean pesos

CNH = Chinese yuan renminbi

CZK = Czech korunas

EUR/€ = Euros

EURIBOR = Euro Interbank Offered Rate

GBP = British pounds

HUF = Hungarian forints

ILS = Israeli shekels

INR = Indian rupees

JPY/¥ = Japanese yen

KRW = South Korean won

LIBOR = London Interbank Offered Rate

MXN = Mexican pesos

NOK = Norwegian kroner

PLN = Polish zloty

THB = Thai baht

USD/$ = U.S. dollars

WIBOR = Warsaw Interbank Offer Rate

ZAR = South African rand

See notes to financial statements.

American Funds Insurance Series

Bond Fund

Summary investment portfolio December 31, 2019

Bonds, notes & other debt instruments 97.76%	Principal amount (000)			Value (000)
Mortgage-backed obligations 31.88%
Federal agency mortgage-backed obligations 31.62%
Fannie Mae Pool #AJ9355 3.00% 2027¹		$	125	$	128
Fannie Mae Pool #MA3827 2.50% 2034¹			162,370		163,798
Fannie Mae Pool #MA3764 2.50% 2034¹			70,404		71,022
Fannie Mae Pool #BM5632 3.00% 2047¹			73,142		74,824
Fannie Mae Pool #CA0858 3.50% 2047¹			58,233		60,512
Fannie Mae Pool #MA3495 4.00% 2048¹			74,668		77,777
Fannie Mae Pool #MA3803 3.50% 2049¹			103,395		106,391
Fannie Mae Pool #MA3775 3.50% 2049¹			61,937		63,696
Fannie Mae Pool #MA3905 3.00% 2050¹			270,650		274,433
Fannie Mae 2.50%–9.16% 2023–2058^1,2			599,696		623,075
Freddie Mac 3.50% 2047¹			95,958		99,954
Freddie Mac 3.50% 2047¹			53,152		55,281
Freddie Mac Pool #G08799 3.00% 2048¹			56,530		57,578
Freddie Mac Pool #SD8010 3.00% 2049¹			74,000		75,069
Freddie Mac Pool #SD7509 3.00% 2049¹			60,137		61,702
Freddie Mac Pool #SD8011 3.50% 2049¹			126,986		130,515
Freddie Mac 0%–5.50% 2021–2049¹			615,958		639,781
Government National Mortgage Assn. 3.50% 2050^1,3			77,460		79,824
Government National Mortgage Assn. Pool #MA5817 4.00% 2049¹			83,163		86,151
Government National Mortgage Assn. Pool #MA5878 5.00% 2049¹			104,318		109,869
Government National Mortgage Assn. 4.00%–5.00% 2049–2050^1,3			123,889		129,464
Uniform Mortgage-Backed Security 3.00% 2035^1,3			275,708		282,323
Uniform Mortgage-Backed Securities 3.00%–4.50% 2035–2050^1,3			5,537		5,750
Other securities					7,317
					3,336,234

Other 0.26%
Other securities					27,735

Total mortgage-backed obligations					3,363,969

Corporate bonds & notes 29.59%
Financials 6.30%
Intesa Sanpaolo SpA 5.017% 2024⁴			67,843		71,278
Intesa Sanpaolo SpA 3.38%–5.71% 2023–2028⁴			33,400		34,861
Other securities					558,756
					664,895

Health care 5.18%
Teva Pharmaceutical Finance Co. BV 2.80% 2023			86,064		80,004
Teva Pharmaceutical Finance Co. BV 2.20%–6.75% 2021–2046			141,821		122,608
Other securities					343,751
					546,363

Energy 4.46%
Petróleos Mexicanos 6.50%–6.88% 2026–2027			73,343		79,670
Other securities					390,604
					470,274

Utilities 3.58%
Edison International 3.13%–5.75% 2022–2028			11,700		12,239
Southern California Edison Co. 2.85%–6.05% 2021–2048			87,298		95,762
Other securities					269,642
					377,643
Consumer discretionary 3.54%
Other securities					373,697

90	American Funds Insurance Series

Bond Fund

Bonds, notes & other debt instruments	Principal amount (000)			Value (000)
Consumer staples 2.33%
Other securities				$	246,148

Information technology 1.59%
Broadcom Inc. 4.25% 2026⁴		$	41,375		43,995
Broadcom Inc. 4.75% 2029⁴			61,009		66,768
Broadcom Ltd. 3.00%–3.88% 2022–2027			26,822		27,566
Other securities					28,982
					167,311
Industrials 1.18%
Other securities					124,948

Other 1.43%
Other securities					151,141

Total corporate bonds & notes					3,122,420

U.S. Treasury bonds & notes 28.74%
U.S. Treasury 24.36%
U.S. Treasury 1.625% 2022			70,000		70,022
U.S. Treasury 2.50% 2023			57,200		58,775
U.S. Treasury 2.625% 2023			70,000		72,625
U.S. Treasury 2.75% 2023			173,600		179,831
U.S. Treasury 1.50% 2024			75,423		74,802
U.S. Treasury 2.125% 2024			72,100		73,554
U.S. Treasury 2.125% 2024⁵			72,100		73,520
U.S. Treasury 2.25% 2024			65,000		66,521
U.S. Treasury 2.75% 2025			132,000		138,843
U.S. Treasury 2.875% 2025⁵			96,200		102,032
U.S. Treasury 2.875% 2025			72,100		76,361
U.S. Treasury 1.375% 2026			150,000		145,940
U.S. Treasury 1.625% 2026			75,000		74,118
U.S. Treasury 2.25% 2026			146,369		150,433
U.S. Treasury 2.375% 2026			67,586		69,975
U.S. Treasury 2.25% 2027⁵			120,200		123,645
U.S. Treasury 2.25% 2027⁵			72,100		74,148
U.S. Treasury 2.875% 2028			72,100		77,679
U.S. Treasury 1.75% 2029			69,308		68,252
U.S. Treasury 2.25% 2049⁵			364,471		353,646
U.S. Treasury 3.00% 2049⁵			182,915		206,346
U.S. Treasury 1.63%–8.75% 2020–2049⁵			227,943		239,298
					2,570,366

U.S. Treasury inflation-protected securities 4.38%
U.S. Treasury Inflation-Protected Security 0.125% 2024⁶			25,074		25,235
U.S. Treasury Inflation-Protected Security 0.375% 2025⁶			55,368		56,544
U.S. Treasury Inflation-Protected Security 0.375% 2027^5,6			105,195		107,342
U.S. Treasury Inflation-Protected Security 0.50% 2028^5,6			130,403		133,824
U.S. Treasury Inflation-Protected Security 1.00% 2049⁶			124,504		138,576
					461,521

Total U.S. Treasury bonds & notes					3,031,887

Bonds & notes of governments & government agencies outside the U.S. 3.03%
Italy (Republic of) 0.95% 2023		€	45,000		51,635
Japan, Series 20, 0.10% 2025⁶		¥	11,475,000		107,563
United Mexican States, Series M, 5.75% 2026		MXN	527,500		26,459
Other securities					134,251
					319,908

American Funds Insurance Series

Bond Fund

Bonds, notes & other debt instruments (continued)	Principal amount (000)			Value (000)
Asset-backed obligations 2.26%
Other securities				$	238,376

Municipals 2.14%
Illinois 1.91%
G.O. Bonds, Pension Funding, Series 2003, 4.95% 2023		$	27,639		28,850
G.O. Bonds, Pension Funding, Series 2003, 5.10% 2033			106,125		114,494
G.O. Bonds, Series 2013-B, 3.65% 2020			1,825		1,831
G.O. Bonds, Series 2013-B, 4.11% 2022			750		762
G.O. Bonds, Series 2013-B, 4.31% 2023			2,125		2,167
G.O. Bonds, Taxable Build America Bonds, Series 2010-2, 5.65% 2020			250		251
G.O. Bonds, Taxable Build America Bonds, Series 2010-2, 5.85% 2022			2,370		2,504
G.O. Bonds, Taxable Build America Bonds, Series 2010-2, 5.95% 2023			3,210		3,447
G.O. Bonds, Taxable Build America Bonds, Series 2010-3, 5.727% 2020			2,400		2,419
G.O. Bonds, Taxable Build America Bonds, Series 2010-5, 6.20% 2021			3,892		4,034
Other securities					41,384
					202,143
Other 0.23%
Other securities					24,014

Total municipals					226,157

Federal agency bonds & notes 0.12%
Fannie Mae 2.125% 2026			11,910		12,086

Total bonds, notes & other debt instruments (cost: $9,994,467,000)					10,314,803

Common stocks 0.00%			Shares
Other 0.00%
Other securities					144

Total common stocks (cost: $605,000)					144

Rights & warrants 0.00%
Energy 0.00%
Other securities					3

Total rights & warrants (cost: $18,000)					3

Short-term securities 5.71%
Money market investments 5.71%
Capital Group Central Cash Fund 1.73%⁷			6,024,511		602,451

Total short-term securities (cost: $602,341,000)					602,451
Total investment securities 103.47% (cost: $10,597,431,000)					10,917,401
Other assets less liabilities (3.47)%					(366,241	)

Net assets 100.00%				$	10,551,160

92	American Funds Insurance Series

Bond Fund

Futures contracts

Contracts	Type	Number of contracts		Expiration	Notional amount (000)		⁸	Value at 12/31/2019 (000)		⁹	Unrealized (depreciation) appreciation at 12/31/2019 (000)
2 Year U.S. Treasury Note Futures	Long		9,081	April 2020	$	1,816,200		$	1,956,956			$	(375	)
5 Year Euro-Bobl Futures	Short		1,633	March 2020	€	(163,300	)		(244,775	)			804
5 Year U.S. Treasury Note Futures	Long		11,307	April 2020	$	1,130,700			1,341,116				(5,279	)
10 Year Euro-Bund Futures	Short		532	March 2020	€	(53,200	)		(101,739	)			972
10 Year U.S. Treasury Note Futures	Short		489	March 2020	$	(48,900	)		(62,798	)			663
10 Year Ultra U.S. Treasury Note Futures	Short		3,335	March 2020		(333,500	)		(469,245	)			5,934
30 Year Euro-Buxl Futures	Long		272	March 2020	€	27,200			60,526				(1,684	)
30 Year Ultra U.S. Treasury Bond Futures	Long		924	March 2020	$	92,400			167,850				(5,114	)
												$	(4,079	)

Forward currency contracts

Contract amount				Unrealized appreciation (depreciation)
Purchases (000)	Sales (000)	Counterparty	Settlement date	at 12/31/2019 (000)
EUR69,777	USD77,714	Citibank	1/6/2020		$	584
EUR3,926	USD4,371	Bank of New York Mellon	1/6/2020			35
USD81,563	EUR73,700	Morgan Stanley	1/6/2020			(1,137	)
USD38,670	MXN755,000	Barclays Bank PLC	1/7/2020			(1,224	)
KRW96,758,000	USD82,788	Citibank	1/9/2020			899
KRW96,758,000	USD82,809	JPMorgan Chase	1/9/2020			878
USD104	MXN2,000	Barclays Bank PLC	1/13/2020			(2	)
USD121,292	EUR109,250	HSBC Bank	1/13/2020			(1,355	)
USD99,139	JPY10,730,000	Citibank	1/14/2020			306
USD13,351	JPY1,445,000	Goldman Sachs	1/15/2020			41
USD51,458	EUR46,000	Morgan Stanley	1/23/2020			(216	)
					$	(1,191	)

American Funds Insurance Series

Bond Fund

Swap contracts

Interest rate swaps

Receive	Pay	Expiration date	Notional (000)		Value at 12/31/2019 (000)			Upfront payments/ receipts (000)		Unrealized (depreciation) appreciation at 12/31/2019 (000)
1.355%	U.S. EFFR	10/24/2021	$	95,600	$	(160	)	$	—		$	(160	)
1.339%	U.S. EFFR	10/24/2021		173,700		(341	)		—			(341	)
3-month USD-LIBOR	2.18075%	3/29/2024		31,600		(621	)		—			(621	)
3-month USD-LIBOR	2.194%	3/29/2024		31,900		(644	)		—			(644	)
3-month USD-LIBOR	2.21875%	3/29/2024		33,500		(710	)		—			(710	)
3-month USD-LIBOR	2.3105%	5/3/2024		275,590		(7,009	)		—			(7,009	)
6-month EURIBOR	0.9852%	10/17/2024	€	25,000		(1,512	)		—			(1,512	)
3-month USD-LIBOR	1.556%	11/27/2024	$	148,600		1,222			—			1,222
3-month USD-LIBOR	1.561%	11/27/2024		148,600		1,187			—			1,187
3-month USD-LIBOR	1.554%	11/27/2024		126,300		1,051			—			1,051
3-month USD-LIBOR	1.5335%	11/29/2024		148,500		1,373			—			1,373
6-month JPY-LIBOR	0.0875%	3/10/2026	¥	11,100,000		(228	)		—			(228	)
6-month JPY-LIBOR	0.58295%	3/23/2046		2,000,000		(760	)		—			(760	)
0.64355%	6-month JPY-LIBOR	4/27/2046		2,000,000		1,046			—			1,046
								$	—		$	(6,106	)

The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.

¹	Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
²	Coupon rate may change periodically. Reference rate and spread are as of the most recent information available. Some coupon rates are determined by the issuer or agent based on current market conditions; therefore, the reference rate and spread are not available.
³	Purchased on a TBA basis.
⁴	Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $1,120,890,000, which represented 10.62% of the net assets of the fund.
⁵	All or a portion of this security was pledged as collateral. The total value of pledged collateral was $40,365,000, which represented .38% of the net assets of the fund.
⁶	Index-linked bond whose principal amount moves with a government price index.
⁷	Rate represents the seven-day yield at 12/31/2019.
⁸	Notional amount is calculated based on the number of contracts and notional contract size.
⁹	Value is calculated based on the notional amount and current market price.

Key to abbreviations and symbols

EFFR = Effective Federal Funds Rate

EUR/€ = Euros

EURIBOR = Euro Interbank Offered Rate

G.O. = General Obligation

JPY/¥ = Japanese yen

KRW = South Korean won

LIBOR = London Interbank Offered Rate

MXN = Mexican pesos

TBA = To-be-announced

USD/$ = U.S. dollars

See notes to financial statements.

94	American Funds Insurance Series

Global Bond Fund

Summary investment portfolio December 31, 2019

Bonds, notes & other debt instruments 93.61%	Principal amount (000)		Value (000)
Euros 17.85%
Canada 3.50% 2020	€	2,500	$	2,807
China (People’s Republic of) 0.125% 2026		1,400		1,565
French Republic O.A.T. 0.50% 2029		14,440		16,845
French Republic O.A.T. 0%–2.00% 2029–2048		6,215		7,390
Germany (Federal Republic of) 0% 2029		12,440		14,209
Germany (Federal Republic of) 0.10%–1.25% 2026–2048¹		9,753		12,574
Greece (Hellenic Republic of) 3.45% 2024		11,275		14,205
Greece (Hellenic Republic of) 3.75% 2028		12,204		16,210
Greece (Hellenic Republic of) 3.875% 2029		24,005		32,521
Greece (Hellenic Republic of) 3.38%–4.20% 2025–2042		14,304		19,355
Israel (State of) 1.50%–1.50% 2027–2029		1,500		1,834
Italy (Republic of) 0.10% 2023¹		22,007		25,004
Italy (Republic of) 2.80% 2028		32,938		41,841
Italy (Republic of) 3.00% 2029		7,440		9,620
Italy (Republic of) 1.35%–3.85% 2022–2049		10,995		13,803
Portuguese Republic 2.875% 2025		7,625		9,934
Romania 4.625% 2049		12,905		17,913
Romania 2.88%–4.63% 2029–2049		11,085		14,042
Serbia (Republic of) 1.50% 2029		9,729		11,127
Spain (Kingdom of) 1.45% 2027		8,975		10,990
State Grid Europe Development (2014) PLC 1.50% 2022		194		224
State Grid Overseas Investment Ltd. 1.25%–2.13% 2022–2030		1,406		1,646
Other securities				84,217
				379,876

Japanese yen 13.35%
Export-Import Bank of India 0.59% 2022	¥	400,000		3,667
Japan, Series 19, 0.10% 2024¹		2,438,212		22,821
Japan, Series 18, 0.10% 2024¹		1,966,375		18,378
Japan, Series 346, 0.10% 2027		3,125,000		29,185
Japan, Series 23, 0.10% 2028¹		2,001,246		18,953
Japan, Series 356, 0.10% 2029		6,560,000		61,085
Japan, Series 24, 0.10% 2029¹		1,614,981		15,294
Japan, Series 116, 2.20% 2030		1,735,000		19,571
Japan, Series 145, 1.70% 2033		2,210,000		24,705
Japan, Series 42, 1.70% 2044		911,900		11,047
Japan 0.10%–2.30% 2025–2048¹		4,244,123		42,504
United Mexican States 0.62%–0.70% 2021–2022		700,000		6,468
Other securities				10,438
				284,116

Chinese yuan renminbi 3.25%
China (People’s Republic of), Series 1906, 3.29% 2029	CNY	49,600		7,199
China (People’s Republic of), Series 1910, 3.86% 2049		172,240		25,394
China Development Bank Corp., Series 1905, 3.48% 2029		203,200		28,709
China Development Bank Corp. 4.04%–4.15% 2025–2028		53,900		7,966
				69,268

Malaysian ringgits 1.83%
Malaysia (Federation of), Series 0319, 3.478% 2024	MYR	61,900		15,312
Malaysia (Federation of), Series 0418, 4.893% 2038		61,226		17,060
Malaysia (Federation of) 4.06%–4.92% 2024–2048		24,420		6,472
				38,844

Indian rupees 1.66%
India (Republic of) 6.79%–8.83% 2023–2029	INR	2,171,550		31,489
Other securities				3,807
				35,296


American Funds Insurance Series	95

Global Bond Fund

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
Brazilian reais 1.58%
Brazil (Federative Republic of) 0% 2020	BRL	91,700	$	22,329
Brazil (Federative Republic of) 0%–10.00% 2020–2025		43,700		11,304
				33,633

South African rand 1.46%
South Africa (Republic of), Series R-214, 6.50% 2041	ZAR	168,450		8,383
South Africa (Republic of), Series R-2044, 8.75% 2044		192,925		12,121
South Africa (Republic of), Series R-2048, 8.75% 2048		167,350		10,554
				31,058

Danish kroner 1.45%
Nykredit Realkredit AS, Series 01E, 1.50% 2040²	DKr	134,552		20,876
Nykredit Realkredit AS 1.50%–2.50% 2037–2047²		64,600		10,069
				30,945

British pounds 1.37%
United Kingdom 1.50%–4.25% 2023–2047	£	17,380		27,482
Other securities				1,731
				29,213

Canadian dollars 1.29%
Canada 2.25% 2025	C$	29,450		23,346
Canada 1.00%–2.75% 2022–2048		4,550		4,093
				27,439

Mexican pesos 1.26%
Petróleos Mexicanos 7.19%–7.47% 2024–2026	MXN	99,000		4,619
United Mexican States, Series M, 7.50% 2027		291,520		16,028
United Mexican States, Series M20, 8.50% 2029		106,000		6,244
				26,891

Norwegian kroner 1.16%
Norway (Kingdom of) 3.75% 2021	NKr	111,851		13,170
Norway (Kingdom of) 2.00% 2023		99,579		11,570
				24,740

Israeli shekels 1.11%
Israel (State of) 2.00% 2027	ILS	42,900		13,547
Israel (State of) 5.50% 2042		20,200		10,041
				23,588

Polish zloty 0.82%
Poland (Republic of), Series 0922, 5.75% 2022	PLN	36,700		10,733
Poland (Republic of) 2.75%–5.75% 2021–2029		24,080		6,804
				17,537

U.S. dollars 41.38%
Electricité de France SA 4.875% 2038³	$	795		934
Fannie Mae Pool #MA3692 3.50% 2049²		21,336		21,926
Fannie Mae Pool #MA3776 4.00% 2049²		9,182		9,583
Fannie Mae 2.18%–4.00% 2022–2049²		29,820		30,981
Freddie Mac Pool #ZT1545 4.00% 2048²		21,875		22,779
Freddie Mac 0%–4.00% 2030–2049^2,4		23,510		24,327
Government National Mortgage Assn. Pool #MA5987 4.50% 2049²		9,195		9,643
Petróleos Mexicanos 6.35% 2048		927		898
Poland (Republic of) 3.25%–4.00% 2024–2026		5,570		5,932
South Africa (Republic of) 5.50% 2020		1,900		1,913
State Grid Overseas Investment Ltd. 3.50% 2027³		5,600		5,865
Statoil ASA 3.70%–4.25% 2024–2041		2,950		3,235
U.S. Treasury 1.50% 2024⁵		38,920		38,608
U.S. Treasury 2.75% 2025		10,140		10,683


96	American Funds Insurance Series

Global Bond Fund

Bonds, notes & other debt instruments	Principal amount (000)		Value (000)
U.S. Treasury 2.875% 2028⁵	$	19,850	$	21,358
U.S. Treasury 1.625% 2029		12,500		12,176
U.S. Treasury 3.00% 2048⁵		8,325		9,378
U.S. Treasury 1.50%–3.00% 2020–2049⁵		54,050		56,040
U.S. Treasury Inflation-Protected Security 0.25% 2029^1,5		13,782		13,935
U.S. Treasury Inflation-Protected Security 0.875% 2029^1,5		78,843		83,772
U.S. Treasury Inflation-Protected Security 1.00% 2049^1,5		29,605		32,951
U.S. Treasury Inflation-Protected Securities 0.38%–1.38% 2025–2044^1,5		13,875		15,113
Other securities				448,836
				880,866

Other 2.79%
Other securities				59,257

Total bonds, notes & other debt instruments (cost: $1,932,196,000)				1,992,567

Convertible bonds 0.00%
U.S. dollars 0.00%
Other securities				10

Total convertible bonds (cost: $8,000)				10

Convertible stocks 0.04%	Shares
U.S. dollars 0.04%
Other securities				847

Total convertible stocks (cost: $816,000)				847

Common stocks 0.05%
U.S. dollars 0.05%
Other securities				1,142

Total common stocks (cost: $2,504,000)				1,142

Rights & warrants 0.01%
U.S. dollars 0.01%
Other securities				130

Total rights & warrants (cost: $427,000)				130

Short-term securities 5.83%
Money market investments 3.65%
Capital Group Central Cash Fund 1.73%⁶		777,446		77,745


American Funds Insurance Series	97

Global Bond Fund

Short-term securities (continued)	Principal amount (000)		Value (000)
Other short-term securities 2.18%
Canadian Treasury Bills 1.67%–1.68% due 9/17/2020–10/15/2020	C$	24,270	$	18,446
Greek Treasury Bills (0.03)% due 6/5/2020	€	7,275		8,167
Other securities				19,839
				46,452

Total short-term securities (cost: $125,174,000)				124,197
Total investment securities 99.54% (cost: $2,061,125,000)				2,118,893
Other assets less liabilities 0.46%				9,751

Net assets 100.00%			$	2,128,644

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” includes securities that were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities that were valued under fair value procedures was $2,425,000, which represented .11% of the net assets of the fund. “Other securities” also includes loan participations and assignments, which may be subject to legal or contractual restrictions on resale. The total value of all such loans was $3,927,000, which represented .18% of the net assets of the fund. One security in “Other securities” (with a value of $27,000, an aggregate cost of $116,000, and which represented less than .01% of the net assets of the fund) was acquired on 8/31/2018 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject it to legal or contractual restrictions on resale.

Futures contracts

Contracts	Type	Number of contracts		Expiration	Notional amount (000)		⁷	Value at 12/31/2019 (000)		⁸	Unrealized (depreciation) appreciation at 12/31/2019 (000)
2 Year U.S. Treasury Note Futures	Long		410	April 2020	$	82,000		$	88,355			$	(46	)
5 Year U.S. Treasury Note Futures	Long		922	April 2020		92,200			109,358				(407	)
10 Year Euro-Bund Futures	Short		92	March 2020	€	(9,200	)		(17,594	)			76
10 Year U.S. Treasury Note Futures	Long		165	March 2020	$	16,500			21,189				(197	)
20 Year U.S. Treasury Bond Futures	Long		37	March 2020		3,700			5,768				(129	)
30 Year Euro-Buxl Futures	Long		42	March 2020	€	4,200			9,346				(260	)
30 Year Ultra U.S. Treasury Bond Futures	Short		28	March 2020	$	(2,800	)		(5,086	)			158
												$	(805	)

Forward currency contracts

Contract amount				Unrealized appreciation (depreciation)
Purchases (000)	Sales (000)	Counterparty	Settlement date	at 12/31/2019 (000)
AUD10,600	USD7,267	Goldman Sachs	1/6/2020		$	173
EUR2,575	USD2,859	JPMorgan Chase	1/6/2020			31
EUR2,800	USD3,113	Standard Chartered Bank	1/6/2020			29
THB20	USD1	JPMorgan Chase	1/6/2020			—	⁹
USD11,342	ILS39,170	JPMorgan Chase	1/6/2020			(4	)
USD3,598	ZAR53,200	Citibank	1/6/2020			(198	)
USD10,597	JPY1,149,000	UBS AG	1/7/2020			18
USD592	ZAR8,780	Morgan Stanley	1/7/2020			(35	)
JPY1,496,000	USD13,823	JPMorgan Chase	1/7/2020			(48	)
USD2,740	MXN54,000	Goldman Sachs	1/7/2020			(113	)
USD10,625	EUR9,610	HSBC Bank	1/7/2020			(159	)


98	American Funds Insurance Series

Global Bond Fund

Contract amount				Unrealized appreciation (depreciation)
Purchases (000)	Sales (000)	Counterparty	Settlement date	at 12/31/2019 (000)
USD5,087	ZAR74,900	Bank of America	1/7/2020		$	(256	)
USD5,533	ZAR82,000	JPMorgan Chase	1/7/2020			(317	)
EUR6,400	USD7,142	Citibank	1/8/2020			41
CZK165,000	EUR6,461	Goldman Sachs	1/8/2020			28
USD11,470	JPY1,244,630	UBS AG	1/8/2020			10
USD1,516	CNH10,700	HSBC Bank	1/8/2020			(21	)
USD7,105	EUR6,400	Goldman Sachs	1/8/2020			(77	)
CLP12,189,000	USD15,324	Morgan Stanley	1/9/2020			888
AUD5,850	USD3,994	Citibank	1/9/2020			112
EUR6,815	USD7,578	Morgan Stanley	1/9/2020			71
GBP2,800	USD3,683	Bank of America	1/9/2020			27
USD7,142	EUR6,400	Citibank	1/9/2020			(41	)
USD1,225	CLP982,000	Bank of America	1/9/2020			(82	)
USD2,071	CLP1,654,653	Citibank	1/9/2020			(130	)
USD7,386	BRL31,080	Goldman Sachs	1/9/2020			(338	)
USD4,981	CLP4,000,347	Citibank	1/9/2020			(340	)
USD6,794	CLP5,552,000	HSBC Bank	1/9/2020			(591	)
USD1,522	INR109,575	JPMorgan Chase	1/10/2020			(12	)
EUR7,100	USD7,883	HSBC Bank	1/13/2020			88
GBP7,659	USD10,086	Bank of America	1/13/2020			63
USD829	EUR745	Standard Chartered Bank	1/13/2020			(8	)
USD4,717	EUR4,249	HSBC Bank	1/13/2020			(53	)
EUR9,079	USD10,137	Bank of New York Mellon	1/15/2020			56
KRW10,058,500	USD8,651	Standard Chartered Bank	1/15/2020			50
GBP15,670	EUR18,547	Goldman Sachs	1/15/2020			(59	)
CLP10,219,000	USD13,139	Goldman Sachs	1/16/2020			454
GBP18,640	USD24,544	HSBC Bank	1/16/2020			159
ILS12,500	USD3,581	Bank of America	1/16/2020			42
JPY1,900,496	USD17,468	Citibank	1/16/2020			40
CHF1,000	USD1,019	Citibank	1/16/2020			15
CAD880	USD668	JPMorgan Chase	1/16/2020			10
USD818	INR58,300	Standard Chartered Bank	1/16/2020			2
USD7,771	CLP5,841,270	Goldman Sachs	1/16/2020			1
USD9,358	ILS32,500	UBS AG	1/16/2020			(61	)
USD7,864	MXN150,700	Citibank	1/16/2020			(87	)
EUR21,331	NOK216,090	Bank of America	1/16/2020			(664	)
JPY2,842,160	USD26,002	Barclays Bank PLC	1/17/2020			181
EUR7,460	USD8,345	Bank of America	1/17/2020			32
EUR6,190	USD6,925	Citibank	1/17/2020			26
EUR3,200	USD3,582	Standard Chartered Bank	1/17/2020			11
USD20,818	EUR18,600	Morgan Stanley	1/17/2020			(68	)
AUD21,200	USD14,619	Citibank	1/21/2020			266
MXN172,760	USD9,081	Standard Chartered Bank	1/21/2020			26
JPY398,400	USD3,649	UBS AG	1/21/2020			22
USD9,099	MXN172,760	UBS AG	1/21/2020			(8	)
USD4,856	MYR20,120	HSBC Bank	1/21/2020			(59	)
GBP5,460	USD7,302	Standard Chartered Bank	1/21/2020			(65	)
EUR23,977	USD26,822	Citibank	1/23/2020			113
JPY1,354,660	USD12,395	Goldman Sachs	1/23/2020			89
USD3,582	INR254,800	HSBC Bank	1/23/2020			20
USD3,158	MXN59,979	UBS AG	1/23/2020			(2	)
USD3,400	CNH23,800	JPMorgan Chase	1/23/2020			(18	)
USD4,756	CNH33,330	UBS AG	1/23/2020			(30	)
USD33,503	EUR29,950	Morgan Stanley	1/23/2020			(141	)
USD1,658	COP5,509,000	Citibank	1/24/2020			(16	)
USD7,324	AUD10,670	Citibank	1/24/2020			(169	)
EUR25,135	USD28,021	Standard Chartered Bank	1/27/2020			221


American Funds Insurance Series	99

Global Bond Fund

Forward currency contracts (continued)

Contract amount				Unrealized appreciation (depreciation)
Purchases (000)	Sales (000)	Counterparty	Settlement date	at 12/31/2019 (000)
USD4,205	INR299,650	Standard Chartered Bank	1/27/2020		$	19
USD514	BRL2,100	JPMorgan Chase	1/27/2020			(7	)
USD5,822	EUR5,220	JPMorgan Chase	1/27/2020			(44	)
EUR5,010	USD5,594	Standard Chartered Bank	1/30/2020			36
CNH60,800	USD8,591	Standard Chartered Bank	2/10/2020			135
CNH18,800	USD2,668	Standard Chartered Bank	2/10/2020			30
USD3,927	CNH27,700	HSBC Bank	2/10/2020			(48	)
USD19,976	CNH142,790	Standard Chartered Bank	2/10/2020			(517	)
USD7,131	MXN141,260	JPMorgan Chase	3/4/2020			(269	)
EUR27,760	USD31,090	HSBC Bank	3/17/2020			200
USD4,553	EUR3,940	Bank of America	3/26/2020			109
EUR2,580	USD2,888	HSBC Bank	3/26/2020			22
USD393	EUR340	JPMorgan Chase	3/26/2020			10
USD2,937	BRL12,100	JPMorgan Chase	4/1/2020			(59	)
USD21,630	BRL91,700	Citibank	7/1/2020			(972	)
					$	(2,210	)

Swap contracts

Interest rate swaps

Receive	Pay	Expiration date	Notional (000)		Value at 12/31/2019 (000)			Upfront payments/ receipts (000)			Unrealized (depreciation) appreciation at 12/31/2019 (000)
(0.0955)%	6-month EURIBOR	7/22/2024	€	64,700	$	(156	)		$	—		$	(156	)
(0.356)%	6-month EURIBOR	8/9/2024		60,000		(511	)		—				(511	)
6-month HUF-BUBOR	1.39%	11/11/2029	HUF	2,335,000		106			—				106
6-month PLN-WIBOR	1.90%	11/12/2029	PLN	30,800		(26	)		—				(26	)
6-month PLN-WIBOR	1.88%	11/20/2029		30,710		(11	)		—				(11	)
3-month USD-LIBOR	2.0105%	12/18/2049	$	3,125		59			—				59
									$	—		$	(539	)

Credit default swaps

Centrally cleared credit default swaps on credit indices — sell protection

Receive/

Expiration

Notional

Value at
12/31/2019

Upfront
receipts

Unrealized
appreciation
at 12/31/2019

Payment frequency

Pay

date

(000)

1.00%/Quarterly

CDX.NA.IG.33

12/20/2024

$130,250

$3,377

$2,646

$731


100	American Funds Insurance Series

Global Bond Fund

The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.

¹	Index-linked bond whose principal amount moves with a government price index.
²	Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
³	Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $185,840,000, which represented 8.73% of the net assets of the fund.
⁴	Coupon rate may change periodically. Reference rate and spread are as of the most recent information available. Some coupon rates are determined by the issuer or agent based on current market conditions; therefore, the reference rate and spread are not available.
⁵	All or a portion of this security was pledged as collateral. The total value of pledged collateral was $9,498,000, which represented .45% of the net assets of the fund.
⁶	Rate represents the seven-day yield at 12/31/2019.
⁷	Notional amount is calculated based on the number of contracts and notional contract size.
⁸	Value is calculated based on the notional amount and current market price.
⁹	Amount less than one thousand.

Key to abbreviations and symbols

AUD = Australian dollars

BRL = Brazilian reais

BUBOR = Budapest Interbank Offered Rate

CAD/C$ = Canadian dollars

CHF = Swiss francs

CLP = Chilean pesos

CNH/CNY = Chinese yuan renminbi

COP = Colombian pesos

CZK = Czech korunas

DKr = Danish kroner

EUR/€ = Euros

EURIBOR = Euro Interbank Offered Rate

GBP/£ = British pounds

HUF = Hungarian forints

ILS = Israeli shekels

INR = Indian rupees

JPY/¥ = Japanese yen

KRW = South Korean won

MXN = Mexican pesos

MYR = Malaysian ringgits

NOK/NKr = Norwegian kroner

PLN = Polish zloty

THB = Thai baht

WIBOR = Warsaw Interbank Offer Rate

ZAR = South African rand

See notes to financial statements.

American Funds Insurance Series

101

High-Income Bond Fund

Summary investment portfolio December 31, 2019

Bonds, notes & other debt instruments 92.80%	Principal amount (000)		Value (000)
Corporate bonds & notes 92.80%
Communication services 16.19%
Cablevision Systems Corp. 6.75% 2021	$	5,025	$	5,419
CCO Holdings LLC and CCO Holdings Capital Corp. 5.75% 2026¹		6,450		6,817
CCO Holdings LLC and CCO Holdings Capital Corp. 4.00%–5.88% 2023–2030¹		10,165		10,491
CenturyLink, Inc. 6.75% 2023		7,100		7,940
CenturyLink, Inc. 5.13%–7.50% 2022–2026¹		3,875		4,037
Embarq Corp. 7.995% 2036		1,275		1,351
Frontier Communications Corp. 11.00% 2025		16,070		7,834
Frontier Communications Corp. 8.00%–10.50% 2020–2027¹		12,790		9,411
Gogo Inc. 9.875% 2024¹		14,750		15,610
Intelsat Jackson Holding Co. 8.50% 2024¹		6,100		5,569
Level 3 Communications, Inc. 3.875% 2029¹		1,450		1,464
MDC Partners Inc. 6.50% 2024¹		9,510		8,630
Qwest Capital Funding, Inc. 6.875% 2028		1,100		1,087
Sprint Corp. 6.875% 2028		5,395		5,823
Sprint Corp. 7.13%–11.50% 2021–2032		10,350		11,813
Univision Communications Inc. 5.125% 2023¹		6,200		6,200
Other securities				95,517
				205,013

Health care 15.42%
Bausch Health Cos. Inc. 5.00%–7.00% 2028–2030¹		6,955		7,296
Centene Corp. 4.625% 2029¹		6,985		7,374
Centene Corp. 4.25%–6.13% 2022–2027¹		15,605		16,182
Endo International PLC 5.75%–6.00% 2022–2025^1,2		15,759		11,863
Kinetic Concepts, Inc. 12.50% 2021¹		6,573		6,781
Mallinckrodt PLC 4.875% 2020¹		11,135		8,610
Molina Healthcare, Inc. 5.375% 2022		10,235		10,898
Molina Healthcare, Inc. 4.875% 2025¹		1,744		1,797
Par Pharmaceutical Cos. Inc. 7.50% 2027¹		5,755		5,741
Rotech Healthcare Inc., Term Loan, (3-month USD-LIBOR + 11.00%) 13.31% 2023 (100% PIK)^3,4,5,6,7		5,665		5,721
Tenet Healthcare Corp. 4.875% 2026¹		9,600		10,067
Tenet Healthcare Corp. 4.63%–8.13% 2022–2027¹		8,717		9,359
Teva Pharmaceutical Finance Co. BV 2.80% 2023		6,891		6,406
Teva Pharmaceutical Finance Co. BV 6.00% 2024		8,192		8,307
Teva Pharmaceutical Finance Co. BV 2.20%–7.13% 2021–2028¹		8,526		8,079
Valeant Pharmaceuticals International, Inc. 6.125% 2025¹		12,430		12,869
Valeant Pharmaceuticals International, Inc. 9.25% 2026¹		4,670		5,373
Valeant Pharmaceuticals International, Inc. 5.88%–9.00% 2023–2027¹		6,235		6,642
Other securities				45,896
				195,261

Materials 12.07%
Cleveland-Cliffs Inc. 4.875% 2024¹		5,375		5,505
Cleveland-Cliffs Inc. 5.75% 2025		6,831		6,758
Cleveland-Cliffs Inc. 5.875% 2027¹		8,285		7,969
First Quantum Minerals Ltd. 7.25% 2023¹		8,150		8,455
First Quantum Minerals Ltd. 7.50% 2025¹		11,100		11,373
First Quantum Minerals Ltd. 6.875% 2026¹		5,075		5,148
First Quantum Minerals Ltd. 6.50%–7.25% 2021–2024¹		5,665		5,696
LSB Industries, Inc. 9.625% 2023¹		5,010		5,159
Ryerson Inc. 11.00% 2022¹		5,191		5,489
Venator Materials Corp. 5.75% 2025¹		6,535		6,045
Other securities				85,249
				152,846


102	American Funds Insurance Series

High-Income Bond Fund

Bonds, notes & other debt instruments	Principal amount (000)		Value (000)
Energy 10.52%
CONSOL Energy Inc. 5.875% 2022	$	7,366	$	7,390
Weatherford International PLC 11.00% 2024¹		6,660		7,218
Other securities				118,661
				133,269

Consumer discretionary 9.69%
PetSmart, Inc. 7.125% 2023¹		10,565		10,380
PetSmart, Inc. 5.875% 2025¹		8,093		8,265
PetSmart, Inc. 8.875% 2025¹		9,205		9,113
Scientific Games Corp. 8.25% 2026¹		5,130		5,665
Staples, Inc. 7.50% 2026¹		8,100		8,419
Other securities				80,879
				122,721

Industrials 8.71%
Builders FirstSource, Inc. 5.625% 2024¹		5,958		6,209
Dun & Bradstreet Corp. 10.25% 2027¹		5,303		6,108
FXI Holdings, Inc. 12.25% 2026¹		5,155		5,377
LSC Communications, Inc. 8.75% 2023¹		9,510		5,163
Other securities				87,400
				110,257

Information technology 6.29%
Almonde Inc., Term Loan, (3-month USD-LIBOR + 7.25%) 9.446% 2025^5,7		5,370		5,263
Genesys Telecommunications Laboratories, Inc. 10.00% 2024¹		7,370		7,984
Infor (US), Inc. 6.50% 2022		5,400		5,491
Kronos Inc., Term Loan B, (3-month USD-LIBOR + 8.25%) 10.159% 2024^5,7		8,645		8,883
Unisys Corp. 10.75% 2022¹		6,600		7,113
Other securities				44,854
				79,588

Financials 5.68%
Compass Diversified Holdings 8.00% 2026¹		5,260		5,709
FS Energy and Power Fund 7.50% 2023¹		7,115		7,308
Other securities				58,955
				71,972

Utilities 2.96%
Talen Energy Corp. 10.50% 2026¹		5,425		5,173
Other securities				32,249
				37,422

Real estate 2.64%
Howard Hughes Corp. 5.375% 2025¹		6,070		6,343
Other securities				27,139
				33,482

Consumer staples 2.63%
Other securities				33,285

Total corporate bonds & notes				1,175,116

Municipals 0.00%
Other securities				5

Total bonds, notes & other debt instruments (cost: $1,171,836,000)				1,175,121


American Funds Insurance Series	103

High-Income Bond Fund

Convertible bonds 0.37%	Principal amount (000)		Value (000)
Communication services 0.22%
Gogo Inc., convertible notes, 6.00% 2022	$	797	$	1,001
Other securities				1,784
				2,785

Health care 0.10%
Teva Pharmaceutical Finance Co. BV, Series C, convertible bonds, 0.25% 2026		1,375		1,310

Materials 0.05%
Cleveland-Cliffs Inc., convertible notes, 1.50% 2025		500		599

Total convertible bonds (cost: $4,531,000)				4,694

Convertible stocks 0.63%	Shares
Other 0.63%
Other securities				8,057

Total convertible stocks (cost: $7,673,000)				8,057

Preferred securities 0.17%
Consumer discretionary 0.17%
Other securities				2,187

Total preferred securities (cost: $1,656,000)				2,187

Common stocks 1.11%
Communication services 0.03%
Frontier Communications Corp.⁸		13,333		12
Other securities				384
				396

Other 1.08%
Other securities				13,639

Total common stocks (cost: $19,328,000)				14,035

Rights & warrants 0.06%
Energy 0.06%
Other securities				711

Total rights & warrants (cost: $2,287,000)				711

Short-term securities 3.09%
Money market investments 3.09%
Capital Group Central Cash Fund 1.73%⁹		391,124		39,112

Total short-term securities (cost: $38,979,000)				39,112
Total investment securities 98.23% (cost: $1,246,290,000)				1,243,917
Other assets less liabilities 1.77%				22,376

Net assets 100.00%			$	1,266,293


104	American Funds Insurance Series

High-Income Bond Fund

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. Some securities in “Other securities” (with an aggregate value of $5,152,000, an aggregate cost of $5,650,000, and which represented .41% of the net assets of the fund) were acquired from 9/26/2013 to 8/31/2018 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject them to legal or contractual restrictions on resale.

Futures contracts

Contracts	Type	Number of contracts		Expiration	Notional amount (000)		¹⁰	Value at 12/31/2019 (000)		¹¹	Unrealized (depreciation) appreciation at 12/31/2019 (000)
2 Year U.S. Treasury Note Futures	Long		295	April 2020	$	59,000		$	63,572			$	(33	)
10 Year Ultra U.S. Treasury Note Futures	Short		113	March 2020		(11,300	)		(15,899	)			192
												$	159

Swap contracts

Credit default swaps

Centrally cleared credit default swaps on credit indices — buy protection

Receive	Pay/ Payment frequency	Expiration date	Notional (000)		Value at 12/31/2019 (000)			Upfront payments (000)				Unrealized depreciation at 12/31/2019 (000)
CDX.NA.IG.33	1.00%/Quarterly	12/20/2024	$	41,200	$	(1,068	)		$	(970	)		$	(98	)
CDX.NA.HY.33	5.00%/Quarterly	12/20/2024		53,680		(5,171	)			(3,691	)			(1,480	)
									$	(4,661	)		$	(1,578	)

The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.

¹	Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $792,983,000, which represented 62.62% of the net assets of the fund.
²	Step bond; coupon rate may change at a later date.
³	Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $23,174,000, which represented 1.83% of the net assets of the fund.
⁴	Value determined using significant unobservable inputs.
⁵	Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans, including those in “Other securities,” was $64,996,000, which represented 5.13% of the net assets of the fund.
⁶	Payment in kind; the issuer has the option of paying additional securities in lieu of cash. Most recent payment was 100% cash unless otherwise noted.
⁷	Coupon rate may change periodically. Reference rate and spread are as of the most recent information available. Some coupon rates are determined by the issuer or agent based on current market conditions; therefore, the reference rate and spread are not available.
⁸	Security did not produce income during the last 12 months.
⁹	Rate represents the seven-day yield at 12/31/2019.
¹⁰	Notional amount is calculated based on the number of contracts and notional contract size.
¹¹	Value is calculated based on the notional amount and current market price.

Key to abbreviations and symbol

LIBOR = London Interbank Offered Rate

USD/$ = U.S. dollars

See notes to financial statements.

American Funds Insurance Series

105

Mortgage Fund

Summary investment portfolio December 31, 2019

Bonds, notes & other debt instruments 81.04%	Principal amount (000)			Value (000)
Mortgage-backed obligations 63.38%
Federal agency mortgage-backed obligations 59.31%
Fannie Mae Pool #AL3803 3.00% 2028¹		$	13	$	13
Fannie Mae Pool #BJ9590 3.00% 2034¹			1,855		1,901
Fannie Mae Pool #BM4488 3.435% 2048^1,2			1,690		1,730
Fannie Mae Pool #MA3692 3.50% 2049¹			3,160		3,247
Fannie Mae Pool #CA4566 3.50% 2049¹			2,992		3,077
Fannie Mae Pool #FM0020 3.50% 2049¹			1,296		1,336
Fannie Mae 3.00%–5.00% 2026–2049^1,2			3,840		3,958
Freddie Mac 4.00% 2036¹			4,219		4,497
Freddie Mac Pool #SB8002 3.00% 2034¹			1,750		1,794
Freddie Mac Pool #SB8027 3.00% 2035¹			1,278		1,313
Freddie Mac Pool #760014 3.486% 2045^1,2			1,595		1,627
Freddie Mac Pool #SD8005 3.50% 2049¹			4,462		4,585
Freddie Mac Pool #SD8001 3.50% 2049¹			3,325		3,417
Freddie Mac, Series K031, Class A2, Multi Family, 3.30% 2023¹			4,722		4,908
Freddie Mac, Series K032, Class A2, Multi Family, 3.31% 2023¹			1,250		1,301
Freddie Mac 2.60%–5.00% 2020–2049^1,2			5,214		5,423
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-2, Class HA, 3.00% 2056^1,3			1,490		1,515
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-2, Class MA, 3.00% 2056¹			1,437		1,464
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-4, Class HT, 3.25% 2057^1,3			10,713		11,041
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2018-2, Class MT, 3.50% 2057¹			9,853		10,390
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-4, Class MT, 3.50% 2057¹			6,803		7,063
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2019-4, Class MA, 3.00% 2059¹			3,737		3,808
Freddie Mac Seasoned Loan Structured Transaction Trust, Series 2019-3, Class A1C, 2.75% 2029¹			9,962		10,100
Freddie Mac Seasoned Loan Structured Transaction Trust, Series 2018-2, Class A1, 3.50% 2028¹			6,847		7,090
Freddie Mac Seasoned Loan Structured Transaction Trust, Series 2018-1, Class A1, 3.50% 2028¹			1,873		1,934
Government National Mortgage Assn. 5.50% 2040¹			1,469		1,640
Government National Mortgage Assn. 3.50% 2043¹			1,887		1,973
Government National Mortgage Assn. 3.50% 2043¹			1,535		1,605
Government National Mortgage Assn. 3.50% 2043¹			1,214		1,275
Government National Mortgage Assn. 4.25% 2044¹			1,574		1,682
Government National Mortgage Assn. 4.50% 2049¹			16,600		17,345
Government National Mortgage Assn. 4.00% 2050^1,4			4,760		4,927
Government National Mortgage Assn. 4.50% 2050^1,4			2,639		2,759
Government National Mortgage Assn. Pool #MA5877 4.50% 2049¹			1,727		1,804
Government National Mortgage Assn. 3.50%–6.50% 2034–2066¹			16,007		16,733
Uniform Mortgage-Backed Security 3.00% 2035^1,4			15,493		15,864
Uniform Mortgage-Backed Security 3.00% 2035^1,4			17		17
Uniform Mortgage-Backed Security 4.50% 2050^1,4			3,000		3,159
Vendee Mortgage Trust, Series 2011-2, Class V, 3.75% 2028¹			3,774		3,806
Vendee Mortgage Trust, Series 2010-1, Class DA, 4.25% 2035¹			292		298
Other securities					1,252
					174,671

Collateralized mortgage-backed obligations (privately originated) 4.07%
Finance of America HECM Buyout, Series 2019-AB1, Class A, 2.656% 2049^1,5,6			1,271		1,270
Other securities					10,709
					11,979

Total mortgage-backed obligations					186,650

106	American Funds Insurance Series

Mortgage Fund

Bonds, notes & other debt instruments	Principal amount (000)			Value (000)
U.S. Treasury bonds & notes 9.65%
U.S. Treasury 4.86%
U.S. Treasury 2.00% 2022		$	2,400	$	2,425
U.S. Treasury 1.75% 2023			3,500		3,513
U.S. Treasury 2.875% 2023			4,350		4,547
U.S. Treasury 2.50% 2024			2,500		2,588
U.S. Treasury 2.13%–2.75% 2022–2023			1,224		1,247
					14,320

U.S. Treasury inflation-protected securities 4.79%
U.S. Treasury Inflation-Protected Security 0.625% 2023⁷			6,216		6,315
U.S. Treasury Inflation-Protected Security 2.125% 2041⁷			129		170
U.S. Treasury Inflation-Protected Security 0.75% 2042^7,8			7,328		7,629
					14,114

Total U.S. Treasury bonds & notes					28,434

Federal agency bonds & notes 6.42%
Fannie Mae 2.00% 2022			5,800		5,849
Federal Home Loan Bank 1.375% 2021			3,000		2,992
Federal Home Loan Bank 1.875% 2021			10,000		10,055
					18,896

Asset-backed obligations 1.59%
Hertz Vehicle Financing LLC, Rental Car Asset-Backed Notes, Series 2015-1, Class A, 2.73% 2021^1,6			1,823		1,825
Other securities					2,856
					4,681

Total bonds, notes & other debt instruments (cost: $234,202,000)					238,661

Short-term securities 13.90%
Federal agency discount notes 13.05%
Fannie Mae 1.50%–1.55% due 1/22/2020–1/23/2020			12,500		12,489
Federal Farm Credit Banks 1.57% due 1/30/2020			8,000		7,990
Federal Home Loan Bank 1.55%–1.59% due 1/3/2020–2/18/2020			13,000		12,988
Freddie Mac 1.64% due 3/18/2020			5,000		4,984
					38,451

Commercial paper 0.85%
Starbird Funding Corp. 1.58% due 1/2/2020⁶			2,500		2,500

Total short-term securities (cost: $40,948,000)					40,951
Total investment securities 94.94% (cost: $275,150,000)					279,612
Other assets less liabilities 5.06%					14,898

Net assets 100.00%				$	294,510

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.

American Funds Insurance Series

107

Mortgage Fund

Futures contracts

Contracts	Type	Number of contracts	Expiration	Notional amount (000)	⁹	Value at 12/31/2019 (000)	¹⁰	Unrealized depreciation at 12/31/2019 (000)
2 Year U.S. Treasury Note Futures	Long	425	April 2020	$85,000		$91,588			$	(49	)
5 Year U.S. Treasury Note Futures	Long	427	April 2020	42,700		50,646				(176	)
10 Year Ultra U.S. Treasury Note Futures	Long	126	March 2020	12,600		17,729				(213	)
10 Year U.S. Treasury Note Futures	Long	79	March 2020	7,900		10,145				(95	)
20 Year U.S. Treasury Bond Futures	Long	56	March 2020	5,600		8,731				(186	)
30 Year Ultra U.S. Treasury Bond Futures	Long	5	March 2020	500		908				(27	)
									$	(746	)

Swap contracts

Interest rate swaps

Receive	Pay	Expiration date	Notional (000)	Value at 12/31/2019 (000)		Upfront payments/ receipts (000)			Unrealized (depreciation) appreciation at 12/31/2019 (000)
1.553%	U.S. EFFR	1/29/2020	$102,700	$ —	¹¹		$	—		$	—	¹¹
1.5365%	U.S. EFFR	1/29/2020	81,500	(1	)			—			(1	)
1.535%	U.S. EFFR	1/29/2020	85,500	(1	)			—			(1	)
1.531%	U.S. EFFR	3/18/2020	95,000	(4	)			—			(4	)
1.515%	U.S. EFFR	3/18/2020	86,100	(6	)			—			(6	)
1.5155%	U.S. EFFR	3/18/2020	182,000	(12	)			—			(12	)
1.5135%	U.S. EFFR	3/18/2020	181,900	(13	)			—			(13	)
3-month USD-LIBOR	2.806%	8/29/2020	300	(2	)			—			(2	)
1.4555%	U.S. EFFR	12/10/2020	16,900	(10	)			—			(10	)
1.454%	U.S. EFFR	12/10/2020	20,100	(12	)			—			(12	)
1.487%	U.S. EFFR	12/16/2020	18,375	(5	)			—			(5	)
1.491%	U.S. EFFR	12/16/2020	18,625	(5	)			—			(5	)
1.34%	U.S. EFFR	10/18/2021	21,000	(42	)			—			(42	)
2.0135%	3-month USD-LIBOR	10/20/2021	30,000	171				—			171
1.3615%	U.S. EFFR	11/1/2021	29,500	(45	)			—			(45	)
1.281%	U.S. EFFR	11/4/2021	29,500	(88	)			—			(88	)
U.S. EFFR	1.335%	11/26/2021	30,000	61				—			61
2.012%	3-month USD-LIBOR	10/4/2022	9,000	82				—			82
2.00%	3-month USD-LIBOR	10/5/2022	41,500	364				—			364
2.1045%	3-month USD-LIBOR	10/31/2022	4,000	48				—			48
3-month USD-LIBOR	2.2835%	1/5/2023	36,000	(640	)			—			(640	)
2.21875%	U.S. EFFR	3/14/2024	9,000	271				—			271
3-month USD-LIBOR	2.322%	5/2/2024	10,100	(262	)			—			(262	)
3-month USD-LIBOR	2.325%	5/2/2024	23,300	(606	)			—			(606	)
3-month USD-LIBOR	2.24%	12/5/2026	10,500	(313	)			—			(313	)
3-month USD-LIBOR	2.05%	7/18/2029	6,000	(92	)			—			(92	)
U.S. EFFR	1.485%	10/23/2029	2,100	32				—			32
U.S. EFFR	1.4869%	10/23/2029	1,900	29				—			29
U.S. EFFR	1.453%	10/24/2029	2,500	45				—			45
U.S. EFFR	1.4741%	10/24/2029	2,500	41				—			41
U.S. EFFR	1.4495%	10/24/2029	1,800	33				—			33
U.S. EFFR	1.446%	10/24/2029	200	4				—			4
1.419%	U.S. EFFR	11/26/2029	6,000	(130	)			—			(130	)
3-month USD-LIBOR	3.206%	7/31/2044	1,000	(222	)			—			(222	)
3-month USD-LIBOR	3.238%	8/8/2044	2,000	(457	)			—			(457	)
3-month USD-LIBOR	3.2265%	9/25/2044	3,000	(682	)			—			(682	)
U.S. EFFR	2.155%	11/10/2047	1,280	(86	)			—			(86	)
U.S. EFFR	2.5635%	2/12/2048	4,528	(714	)			—			(714	)
2.98%	3-month USD-LIBOR	3/15/2048	300	59				—			59

108	American Funds Insurance Series

Mortgage Fund

Receive	Pay	Expiration date	Notional (000)	Value at 12/31/2019 (000)	Upfront payments/ receipts (000)			Unrealized (depreciation) appreciation at 12/31/2019 (000)
2.9625%	3-month USD-LIBOR	3/15/2048	$ 300	$ 57		$	—		$	57
2.917%	3-month USD-LIBOR	3/16/2048	600	109			—			109
3-month USD-LIBOR	1.934%	12/12/2049	2,200	80			—			80
3-month USD-LIBOR	1.935%	12/17/2049	2,480	90			—			90
3-month USD-LIBOR	2.007%	12/19/2049	900	18			—			18
3-month USD-LIBOR	2.045%	12/27/2049	2,200	24			—			24
						$	—		$	(2,832	)

The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.

¹	Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
²	Coupon rate may change periodically. Reference rate and spread are as of the most recent information available. Some coupon rates are determined by the issuer or agent based on current market conditions; therefore, the reference rate and spread are not available.
³	Step bond; coupon rate may change at a later date.
⁴	Purchased on a TBA basis.
⁵	Valued under fair value procedures adopted by authority of the board of trustees. The total value of the security was $1,270,000, which represented .43% of the net assets of the fund.
⁶	Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $17,782,000, which represented 6.04% of the net assets of the fund.
⁷	Index-linked bond whose principal amount moves with a government price index.
⁸	All or a portion of this security was pledged as collateral. The total value of pledged collateral was $4,195,000, which represented 1.42% of the net assets of the fund.
⁹	Notional amount is calculated based on the number of contracts and notional contract size.
¹⁰	Value is calculated based on the notional amount and current market price.
¹¹	Amount less than one thousand.

Key to abbreviations and symbol

EFFR = Effective Federal Funds Rate

LIBOR = London Interbank Offered Rate

TBA = To-be-announced

USD/$ = U.S. dollars

See notes to financial statements.

American Funds Insurance Series

109

Ultra-Short Bond Fund

Investment portfolio December 31, 2019

Short-term securities 99.86%	Principal amount (000)			Value (000)
Commercial paper 71.65%
Alberta (Province of) 1.78% due 1/8/2020¹		$	9,000	$	8,997
American Honda Finance Corp. 1.84% due 1/6/2020			11,000		10,997
BMW U.S. Capital LLC 1.61% due 1/8/2020¹			7,000		6,997
Chariot Funding, LLC 2.00% due 1/7/2020¹			9,300		9,297
CHARTA, LLC 1.78% due 1/16/2020¹			10,000		9,992
Eli Lilly and Co. 1.66% due 1/6/2020¹			10,000		9,997
ExxonMobil Corp. 1.65% due 2/18/2020			10,000		9,977
Henkel of America, Inc. 1.75% due 2/4/2020¹			7,000		6,989
LVMH Moët Hennessy Louis Vuitton Inc. 1.70% due 2/13/2020¹			10,000		9,980
National Rural Utilities Cooperative Finance Corp. 1.72% due 1/13/2020			8,100		8,095
Nederlandse Waterschapsbank N.V. 1.84% due 3/18/2020¹			10,000		9,961
New York Life Capital Corp. 1.60% due 2/12/2020¹			10,000		9,980
NRW.BANK 1.90% due 1/21/2020¹			9,000		8,991
OMERS Finance Trust 1.87% due 1/22/2020¹			10,000		9,990
Oversea-Chinese Banking Corp. Ltd. 1.87% due 1/24/2020¹			10,800		10,787
Pfizer Inc. 2.04% due 1/23/2020¹			11,700		11,688
Simon Property Group, LP 1.70% due 1/13/2020¹			8,100		8,095
ST Engineering North America, Inc. 1.87% due 1/21/2020¹			2,000		1,998
Starbird Funding Corp. 1.58% due 1/2/2020¹			6,000		6,000
United Overseas Bank Ltd. 1.83% due 2/25/2020¹			10,000		9,974
United Parcel Service Inc. 1.62% due 1/13/2020¹			10,200		10,195
Victory Receivables Corp. 1.82% due 2/3/2020¹			10,000		9,983
Walt Disney Co. 1.69% due 2/26/2020¹			5,000		4,986
					203,946

Federal agency discount notes 14.73%
Fannie Mae 1.53% due 1/10/2020			10,000		9,996
Federal Farm Credit Banks 1.55% due 3/4/2020			7,000		6,981
Federal Home Loan Bank 1.57% due 1/31/2020			15,000		14,982
Freddie Mac 1.55% due 3/10/2020			10,000		9,971
					41,930

Bonds & notes of governments & government agencies outside the U.S. 9.97%
CPPIB Capital Inc. 1.82% due 1/24/2020			10,000		9,989
Ontario (Province of) 1.74% due 2/3/2020			7,400		7,389
Québec (Province of) 1.85% due 1/16/2020¹			11,000		10,992
					28,370

U.S. Treasury bonds & notes 3.51%
U.S. Treasury Bill 1.50% due 2/11/2020			10,000		9,983

Total short-term securities (cost: $284,222,000)					284,229
Total investment securities 99.86% (cost: $284,222,000)					284,229
Other assets less liabilities 0.14%					401

Net assets 100.00%				$	284,630

Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $185,869,000, which represented 65.30% of the net assets of the fund.

See notes to financial statements.

110	American Funds Insurance Series

U.S. Government/AAA-Rated Securities Fund

Summary investment portfolio December 31, 2019

Bonds, notes & other debt instruments 96.81%	Principal amount (000)			Value (000)
U.S. Treasury bonds & notes 51.15%
U.S. Treasury 43.49%
U.S. Treasury 1.75% 2021¹		$	33,540	$	33,641
U.S. Treasury (3-month U.S. Treasury Bill Yield + 0.30%) 1.826% 2021²			51,589		51,671
U.S. Treasury 2.00% 2021			46,300		46,669
U.S. Treasury 2.125% 2021			23,450		23,661
U.S. Treasury 2.25% 2021			23,580		23,820
U.S. Treasury 1.75% 2022			174,300		174,930
U.S. Treasury 1.875% 2022			63,000		63,391
U.S. Treasury 1.875% 2022			25,000		25,170
U.S. Treasury 1.875% 2022			23,000		23,167
U.S. Treasury 2.00% 2022			69,500		70,238
U.S. Treasury 2.125% 2023¹			57,739		58,782
U.S. Treasury 2.875% 2023			43,000		44,952
U.S. Treasury 2.875% 2023			22,500		23,538
U.S. Treasury 1.50% 2024			47,000		46,623
U.S. Treasury 2.00% 2024			30,050		30,469
U.S. Treasury 2.125% 2024¹			31,975		32,620
U.S. Treasury 2.50% 2024			44,000		45,540
U.S. Treasury 2.75% 2025			38,000		39,970
U.S. Treasury 1.625% 2026			77,000		76,037
U.S. Treasury 1.875% 2026			86,000		86,393
U.S. Treasury 1.75% 2029			35,000		34,467
U.S. Treasury 2.25% 2049¹			25,700		24,937
U.S. Treasury 2.875% 2049¹			26,000		28,663
U.S. Treasury 1.50%–2.88% 2021–2049¹			148,885		150,278
					1,259,627

U.S. Treasury inflation-protected securities 7.66%
U.S. Treasury Inflation-Protected Security 0.625% 2023³			36,777		37,362
U.S. Treasury Inflation-Protected Security 0.125% 2024³			72,013		72,476
U.S. Treasury Inflation-Protected Security 0.25% 2025³			24,054		24,283
U.S. Treasury Inflation-Protected Security 0.75% 2042^1,3			22,423		23,344
U.S. Treasury Inflation-Protected Securities 0.13%–2.13% 2022–2049³			61,709		64,292
					221,757

Total U.S. Treasury bonds & notes					1,481,384

Mortgage-backed obligations 27.67%
Federal agency mortgage-backed obligations 27.67%
Fannie Mae Pool #BH2597 4.00% 2047⁴			25,092		26,390
Fannie Mae Pool #MA3775 3.50% 2049⁴			44,907		46,182
Fannie Mae 0%–9.16% 2022–2049^2,4			75,935		79,030
Freddie Mac Pool #SD8001 3.50% 2049⁴			90,895		93,422
Freddie Mac Pool #SD8005 3.50% 2049⁴			34,320		35,264
Freddie Mac 0%–5.50% 2020–2049^2,4			79,149		81,942
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2018-2, Class MT, 3.50% 2057⁴			37,774		39,835
Freddie Mac Seasoned Loan Structured Transaction Trust, Series 2018-2, Class A1, 3.50% 2028⁴			39,374		40,773
Government National Mortgage Assn. 3.50% 2050^4,5			40,000		41,221
Government National Mortgage Assn. 4.00% 2050^4,5			30,870		31,952
Government National Mortgage Assn. 2.26%–6.64% 2034–2065^2,4,5			81,733		85,971
Uniform Mortgage-Backed Security 3.00% 2035^4,5			76,804		78,695
Uniform Mortgage-Backed Security 3.00% 2035^4,5			28,225		28,903
Uniform Mortgage-Backed Security 4.50% 2050^4,5			16		17
Other securities					91,827
					801,424

American Funds Insurance Series

111

U.S. Government/AAA-Rated Securities Fund

Bonds, notes & other debt instruments (continued)	Principal amount (000)			Value (000)
Federal agency bonds & notes 17.99%
Fannie Mae 2.75% 2021		$	26,500	$	26,938
Fannie Mae 2.875% 2023			36,000		37,533
Fannie Mae 1.25%–7.13% 2021–2030			6,900		8,673
Federal Home Loan Bank 3.25%–5.50% 2023–2036			30,315		32,747
Freddie Mac 2.375% 2021			40,000		40,340
Private Export Funding Corp. 3.266% 2021⁶			34,000		34,994
Private Export Funding Corp. 2.25%–3.55% 2020–2024			11,340		11,768
Tennessee Valley Authority, Series A, 3.875% 2021			32,975		33,756
Tennessee Valley Authority 2.88%–5.88% 2027–2060			14,330		16,251
U.S. Agency for International Development, Iraq (State of) 2.149% 2022			6,670		6,749
U.S. Agency for International Development, Jordan (Kingdom of) 2.503% 2020			88,000		88,693
U.S. Agency for International Development, Jordan (Kingdom of) 2.578% 2022			43,000		43,884
U.S. Agency for International Development, Jordan (Kingdom of) 3.00% 2025			43,250		45,794
U.S. Agency for International Development, Morocco (Kingdom of) 7.55% 2026			3,010		3,549
U.S. Agency for International Development, Tunisia (Kingdom of) 1.416% 2021			3,000		2,990
U.S. Agency for International Development, Ukraine 1.471% 2021			4,410		4,397
U.S. Department of Housing and Urban Development 1.98%–3.70% 2020–2034			73,632		76,567
Other securities					5,422
					521,045

Total bonds, notes & other debt instruments (cost: $2,765,266,000)					2,803,853

Short-term securities 8.05%
Commercial paper 7.88%
Bank of New York Co., Inc. 1.60% due 1/2/2020			26,700		26,698
Exxon Mobil Corp. 1.62% due 2/3/2020			50,000		49,923
Pfizer Inc. 1.67% due 1/16/2020⁶			64,800		64,755
Starbird Funding Corp. 1.58% due 1/2/2020⁶			28,100		28,098
Toronto-Dominion Bank 1.70% due 1/7/2020⁶			50,000		49,983
Other securities					8,695
					228,152

Federal agency discount notes 0.17%
Other securities					4,994

Total short-term securities (cost: $233,152,000)					233,146
Total investment securities 104.86% (cost: $2,998,418,000)					3,036,999
Other assets less liabilities (4.86)%					(140,665	)

Net assets 100.00%				$	2,896,334

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.

112	American Funds Insurance Series

U.S. Government/AAA-Rated Securities Fund

Futures contracts

Contracts	Type	Number of contracts	Expiration	Notional amount (000)		⁷	Value at 12/31/2019 (000)			⁸	Unrealized (depreciation) appreciation at 12/31/2019 (000)
30 Day Federal Funds Futures	Long	451	January 2020	$	187,932			$	185,014			$	(118	)
90 Day Euro Dollar Futures	Long	565	March 2020		141,250				138,799				543
2 Year U.S. Treasury Note Futures	Long	4,270	April 2020		854,000				920,185				90
5 Year U.S. Treasury Note Futures	Long	6,935	April 2020		693,500				822,556				(3,396	)
10 Year U.S. Treasury Note Futures	Long	1,481	March 2020		148,100				190,193				(1,498	)
10 Year Ultra U.S. Treasury Note Futures	Short	32	March 2020		(3,200	)			(4,502	)			54
20 Year U.S. Treasury Bond Futures	Long	219	March 2020		21,900				34,144				(596	)
30 Year Ultra U.S. Treasury Bond Futures	Long	569	March 2020		56,900				103,362				(3,027	)
												$	(7,948	)

Swap contracts

Interest rate swaps

Receive	Pay	Expiration date	Notional (000)	Value at 12/31/2019 (000)			Upfront payments/ receipts (000)			Unrealized appreciation (depreciation) at 12/31/2019 (000)
1.553%	U.S. EFFR	1/29/2020	$1,624,100		$ 1			$	—		$	1
1.5365%	U.S. EFFR	1/29/2020	1,288,300		(16	)			—			(16	)
1.535%	U.S. EFFR	1/29/2020	1,351,500		(18	)			—			(18	)
1.531%	U.S. EFFR	3/18/2020	741,200		(33	)			—			(33	)
1.515%	U.S. EFFR	3/18/2020	671,100		(45	)			—			(45	)
1.5155%	U.S. EFFR	3/18/2020	1,419,000		(93	)			—			(93	)
1.5135%	U.S. EFFR	3/18/2020	1,418,700		(97	)			—			(97	)
1.5435%	U.S. EFFR	4/29/2020	770,000		(9	)			—			(9	)
1.535%	U.S. EFFR	4/29/2020	1,187,700		(25	)			—			(25	)
3-month USD-LIBOR	2.806%	8/29/2020	34,300		(223	)			—			(223	)
1.4555%	U.S. EFFR	12/10/2020	129,200		(77	)			—			(77	)
1.454%	U.S. EFFR	12/10/2020	152,800		(94	)			—			(94	)
1.4995%	U.S. EFFR	12/20/2020	283,000		(43	)			—			(43	)
2.197%	U.S. EFFR	4/15/2021	174,000		1,418				—			1,418
1.605%	U.S. EFFR	6/20/2021	116,816		124				—			124
1.6325%	U.S. EFFR	7/18/2021	243,000		453				—			453
1.34%	U.S. EFFR	10/18/2021	50,000		(99	)			—			(99	)
1.355%	U.S. EFFR	10/24/2021	34,100		(57	)			—			(57	)
1.339%	U.S. EFFR	10/24/2021	62,000		(122	)			—			(122	)
1.3065%	U.S. EFFR	10/25/2021	83,800		(213	)			—			(213	)
1.39%	U.S. EFFR	10/31/2021	116,000		(116	)			—			(116	)
1.3615%	U.S. EFFR	11/1/2021	252,400		(383	)			—			(383	)
1.281%	U.S. EFFR	11/4/2021	252,700		(756	)			—			(756	)
1.411%	U.S. EFFR	11/7/2021	56,875		(35	)			—			(35	)
1.3925%	U.S. EFFR	11/7/2021	56,875		(54	)			—			(54	)
U.S. EFFR	1.335%	11/26/2021	222,000		451				—			451
1.433%	U.S. EFFR	12/16/2021	137,600		(21	)			—			(21	)
3-month USD-LIBOR	2.2175%	3/17/2022	52,000		(612	)			—			(612	)
2.197%	U.S. EFFR	4/18/2022	47,400		768				—			768
3-month USD-LIBOR	1.75918%	4/29/2022	58,000		(111	)			—			(111	)
1.8475%	3-month USD-LIBOR	7/11/2022	34,900		150				—			150
2.5775%	U.S. EFFR	7/16/2022	181,639		2,107				—			2,107
3-month USD-LIBOR	1.948%	7/28/2022	20,000		(139	)			—			(139	)
2.80%	3-month USD-LIBOR	9/2/2022	280,000		6,379				—			6,379
2.75%	3-month USD-LIBOR	9/2/2022	280,000		6,107				—			6,107
2.009%	3-month USD-LIBOR	10/4/2022	50,000		450				—			450

American Funds Insurance Series

113

U.S. Government/AAA-Rated Securities Fund

Swap contracts (continued)

Interest rate swaps (continued)

Receive	Pay	Expiration date	Notional (000)	Value at 12/31/2019 (000)		Upfront payments/ receipts (000)			Unrealized appreciation (depreciation) at 12/31/2019 (000)
3-month USD-LIBOR	2.0815%	2/10/2024	$ 28,700	$ (441	)		$	—		$	(441	)
2.21875%	U.S. EFFR	3/14/2024	54,000	1,627				—			1,627
3-month USD-LIBOR	2.21079%	3/27/2024	48,318	(1,010	)			—			(1,010	)
3-month USD-LIBOR	2.33%	5/2/2024	48,460	(1,272	)			—			(1,272	)
3-month USD-LIBOR	2.588%	1/26/2025	15,600	(647	)			—			(647	)
3-month USD-LIBOR	1.867%	7/11/2025	49,400	(84	)			—			(84	)
3-month USD-LIBOR	2.27%	12/5/2026	44,900	(1,426	)			—			(1,426	)
2.91%	3-month USD-LIBOR	2/1/2028	16,000	723				—			723
2.908%	3-month USD-LIBOR	2/1/2028	16,000	721				—			721
2.925%	3-month USD-LIBOR	2/1/2028	12,800	587				—			587
2.92%	3-month USD-LIBOR	2/2/2028	12,200	556				—			556
U.S. EFFR	2.5065%	3/22/2028	8,700	(610	)			—			(610	)
U.S. EFFR	2.535%	3/23/2028	6,700	(484	)			—			(484	)
U.S. EFFR	2.471%	3/27/2028	8,100	(546	)			—			(546	)
U.S. EFFR	2.4575%	3/29/2028	9,638	(639	)			—			(639	)
U.S. EFFR	2.424%	3/30/2028	8,160	(520	)			—			(520	)
U.S. EFFR	2.412%	4/5/2028	3,702	(233	)			—			(233	)
3-month USD-LIBOR	1.9675%	6/21/2029	50,700	(418	)			—			(418	)
3-month USD-LIBOR	2.05%	7/18/2029	41,000	(629	)			—			(629	)
3-month USD-LIBOR	1.995%	7/19/2029	25,400	(266	)			—			(266	)
U.S. EFFR	1.485%	10/23/2029	16,000	244				—			244
U.S. EFFR	1.4869%	10/23/2029	14,600	220				—			220
U.S. EFFR	1.453%	10/24/2029	18,500	336				—			336
U.S. EFFR	1.4741%	10/24/2029	18,500	300				—			300
U.S. EFFR	1.4495%	10/24/2029	13,600	251				—			251
U.S. EFFR	1.446%	10/24/2029	1,800	34				—			34
1.419%	U.S. EFFR	11/26/2029	47,000	(1,021	)			—			(1,021	)
3-month USD-LIBOR	2.97125%	9/2/2030	62,000	(5,923	)			—			(5,923	)
3-month USD-LIBOR	3.005%	9/2/2030	62,000	(6,114	)			—			(6,114	)
3-month USD-LIBOR	2.986%	2/1/2038	7,800	(449	)			—			(449	)
3-month USD-LIBOR	2.9625%	2/1/2038	9,800	(545	)			—			(545	)
3-month USD-LIBOR	2.963%	2/1/2038	9,800	(546	)			—			(546	)
3-month USD-LIBOR	2.967%	2/2/2038	7,600	(426	)			—			(426	)
3-month USD-LIBOR	3.34%	6/27/2044	10,000	(2,481	)			—			(2,481	)
3-month USD-LIBOR	3.206%	7/31/2044	16,000	(3,559	)			—			(3,559	)
3-month USD-LIBOR	3.238%	8/8/2044	16,000	(3,659	)			—			(3,659	)
3-month USD-LIBOR	2.7045%	1/2/2045	12,000	(1,489	)			—			(1,489	)
3-month USD-LIBOR	2.4945%	1/9/2045	2,000	(164	)			—			(164	)
3-month USD-LIBOR	2.5055%	1/9/2045	11,000	(925	)			—			(925	)
3-month USD-LIBOR	2.52822%	11/23/2045	4,390	(398	)			—			(398	)
U.S. EFFR	2.155%	11/10/2047	8,640	(580	)			—			(580	)
U.S. EFFR	2.5635%	2/12/2048	33,204	(5,234	)			—			(5,234	)
3-month USD-LIBOR	1.934%	12/12/2049	19,300	704				—			704
3-month USD-LIBOR	1.935%	12/17/2049	17,280	627				—			627
3-month USD-LIBOR	2.007%	12/19/2049	21,500	423				—			423
3-month USD-LIBOR	2.045%	12/27/2049	15,100	166				—			166
							$	—		$	(20,302	)

114	American Funds Insurance Series

U.S. Government/AAA-Rated Securities Fund

The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.

¹	All or a portion of this security was pledged as collateral. The total value of pledged collateral was $46,115,000, which represented 1.59% of the net assets of the fund.
²	Coupon rate may change periodically. Reference rate and spread are as of the most recent information available. Some coupon rates are determined by the issuer or agent based on current market conditions; therefore, the reference rate and spread are not available.
³	Index-linked bond whose principal amount moves with a government price index.
⁴	Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
⁵	Purchased on a TBA basis.
⁶	Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $177,830,000, which represented 6.14% of the net assets of the fund.
⁷	Notional amount is calculated based on the number of contracts and notional contract size.
⁸	Value is calculated based on the notional amount and current market price.

Key to abbreviations and symbol

EFFR = Effective Federal Funds Rate

LIBOR = London Interbank Offered Rate

TBA = To-be-announced

USD/$ = U.S. dollars

See notes to financial statements.

American Funds Insurance Series

115

Managed Risk Growth Fund

Investment portfolio December 31, 2019

Growth funds 81.52%	Shares		Value (000)
American Funds Insurance Series – Growth Fund, Class 1		4,413,020	$	358,426

Total growth funds (cost: $314,327,000)				358,426

Fixed income funds 15.17%
American Funds Insurance Series – Bond Fund, Class 1		5,970,036		66,685

Total fixed income funds (cost: $64,788,000)				66,685

Short-term securities 3.38%
Government Cash Management Fund 1.51%¹		14,836,148		14,836

Total short-term securities (cost: $14,836,000)				14,836
Total investment securities 100.07% (cost: $393,951,000)				439,947
Other assets less liabilities (0.07)%				(297	)

Net assets 100.00%			$	439,650

Futures contracts

Contracts		Type		Number of contracts		Expiration		Notional amount (000)		²		Value at 12/31/2019 (000)		³	Unrealized depreciation at 12/31/2019 (000)
5 Year U.S. Treasury Note Futures		Long		142		March 2020		$	14,200			$	16,843			$	(61	)

Investments in affiliates

These holdings are affiliates of the fund under the Investment Company Act of 1940 since they are controlled by the same board of trustees as the series. Further details on these holdings and related transactions during the year ended December 31, 2019, appear below.

	Beginning shares		Additions		Reductions		Ending shares		Net realized gain (loss) (000)			Net unrealized appreciation (000)		Dividend income (000)		Value of affiliates at 12/31/2019 (000)
Growth funds 81.52%
American Funds Insurance Series – Growth Fund, Class 1		3,963,500		841,360		391,840		4,413,020	$	3,636		$	45,980	$	3,243	$	358,426
Fixed income funds 15.17%
American Funds Insurance Series – Bond Fund, Class 1		5,110,855		1,716,104		856,923		5,970,036		(16	)		3,708		1,763		66,685
Total 96.69%									$	3,620		$	49,688	$	5,006	$	425,111

¹	Rate represents the seven-day yield at 12/31/2019.
²	Notional amount is calculated based on the number of contracts and notional contract size.
³	Value is calculated based on the notional amount and current market price.

See notes to financial statements.

116	American Funds Insurance Series

Managed Risk International Fund

Investment portfolio December 31, 2019

Growth funds 80.75%	Shares		Value (000)
American Funds Insurance Series – International Fund, Class 1		6,417,163	$	133,862

Total growth funds (cost: $119,729,000)				133,862

Fixed income funds 14.76%
American Funds Insurance Series – Bond Fund, Class 1		2,190,172		24,465

Total fixed income funds (cost: $23,789,000)				24,465

Short-term securities 4.55%
Government Cash Management Fund 1.51%¹		7,541,294		7,541

Total short-term securities (cost: $7,541,000)				7,541
Total investment securities 100.06% (cost: $151,059,000)				165,868
Other assets less liabilities (0.06)%				(99	)

Net assets 100.00%			$	165,769

Futures contracts

Contracts		Type		Number of contracts		Expiration		Notional amount (000)		²	Value at 12/31/2019 (000)			³	Unrealized depreciation at 12/31/2019 (000)
5 Year U.S. Treasury Note Futures		Long		72		March 2020		$	7,200			$	8,540			$	(30	)

Investments in affiliates

	Beginning shares		Additions		Reductions		Ending shares		Net realized gain (000)		Net unrealized appreciation (000)		Dividend income (000)		Value of affiliates at 12/31/2019 (000)
Growth funds 80.75%
American Funds Insurance Series – International Fund, Class 1		6,802,836		422,276		807,949		6,417,163	$	553	$	20,856	$	2,158	$	133,862
Fixed income funds 14.76%
American Funds Insurance Series – Bond Fund, Class 1		2,162,908		382,186		354,922		2,190,172		64		1,507		667		24,465
Total 95.51%									$	617	$	22,363	$	2,825	$	158,327

¹	Rate represents the seven-day yield at 12/31/2019.
²	Notional amount is calculated based on the number of contracts and notional contract size.
³	Value is calculated based on the notional amount and current market price.

See notes to financial statements.

American Funds Insurance Series

117

Managed Risk Blue Chip Income and Growth Fund

Investment portfolio December 31, 2019

Growth-and-income funds 81.97%	Shares		Value (000)
American Funds Insurance Series – Blue Chip Income and Growth Fund, Class 1		22,089,727	$	299,536

Total growth-and-income funds (cost: $295,807,000)				299,536

Fixed income funds 14.64%
American Funds Insurance Series – U.S. Government/AAA-Rated Securities Fund, Class 1		4,337,434		53,524

Total fixed income funds (cost: $52,792,000)				53,524

Short-term securities 3.45%
Government Cash Management Fund 1.51%¹		12,608,727		12,609

Total short-term securities (cost: $12,609,000)				12,609
Total investment securities 100.06% (cost: $361,208,000)				365,669
Other assets less liabilities (0.06)%				(234	)

Net assets 100.00%			$	365,435

Futures contracts

Contracts

Type

Number of
contracts

Expiration

Notional
amount
(000)

Value at
12/31/2019
(000)

Unrealized
depreciation
at 12/31/2019
(000)

5 Year U.S. Treasury Note Futures

Long

121

March 2020

12,100

14,352

$(52

)

Investments in affiliates

	Beginning shares		Additions		Reductions		Ending shares		Net realized gain (000)		Net unrealized appreciation (000)		Dividend income (000)		Value of affiliates at 12/31/2019 (000)
Growth-and-income funds 81.97%
American Funds Insurance Series – Blue Chip Income and Growth Fund, Class 1		21,901,978		2,725,657		2,537,908		22,089,727	$	139	$	27,211	$	6,403	$	299,536

Fixed income funds 14.64%
American Funds Insurance Series – U.S. Government/AAA-Rated Securities Fund, Class 1		4,484,388		702,066		849,020		4,337,434		30		1,747		1,181		53,524

Total 96.61%									$	169	$	28,958	$	7,584	$	353,060

¹	Rate represents the seven-day yield at 12/31/2019.
²	Notional amount is calculated based on the number of contracts and notional contract size.
³	Value is calculated based on the notional amount and current market price.

See notes to financial statements.

118	American Funds Insurance Series

Managed Risk Growth-Income Fund

Investment portfolio December 31, 2019

Growth-and-income funds 81.15%	Shares		Value (000)
American Funds Insurance Series – Growth-Income Fund, Class 1		36,320,774	$	1,841,827

Total growth-and-income funds (cost: $1,679,355,000)				1,841,827

Fixed income funds 14.86%
American Funds Insurance Series – Bond Fund, Class 1		30,186,789		337,186

Total fixed income funds (cost: $317,192,000)				337,186

Short-term securities 3.81%
Government Cash Management Fund 1.51%¹		86,525,815		86,526

Total short-term securities (cost: $86,526,000)				86,526

Options purchased 0.19%
Options purchased*				4,322

Total options purchased (cost: $14,443,000)				4,322
Total investment securities 100.01% (cost: $2,097,516,000)				2,269,861
Other assets less liabilities (0.01)%				(137	)

Net assets 100.00%			$	2,269,724

* Options purchased

Put

Description	Number of contracts		Notional amount (000)		Exercise price		Expiration date	Value at 12/31/2019 (000)
S&P 500 Index		110	$	355	$	2,050.00	3/20/2020		$	8
S&P 500 Index		2,720		8,788		2,100.00	3/20/2020			231
S&P 500 Index		1,200		3,877		2,150.00	3/20/2020			144
S&P 500 Index		50		162		2,175.00	3/20/2020			5
S&P 500 Index		715		2,310		2,200.00	3/20/2020			82
S&P 500 Index		135		436		2,225.00	3/20/2020			17
S&P 500 Index		170		549		2,250.00	3/20/2020			25
S&P 500 Index		95		307		2,225.00	6/19/2020			50
S&P 500 Index		250		808		2,250.00	6/19/2020			148
S&P 500 Index		130		420		2,275.00	6/19/2020			92
S&P 500 Index		3,520		11,372		2,325.00	6/19/2020			3,041
S&P 500 Index		160		517		2,350.00	6/19/2020			130
S&P 500 Index		180		582		2,375.00	6/19/2020			160
S&P 500 Index		70		226		2,400.00	6/19/2020			78
S&P 500 Index		65		210		2,450.00	6/19/2020			86
S&P 500 Index		15		48		2,325.00	9/18/2020			25
									$	4,322

American Funds Insurance Series

119

Managed Risk Growth-Income Fund

Futures contracts

Contracts	Type	Number of contracts	Expiration	Notional amount (000)		²	Value at 12/31/2019 (000)		³	Unrealized (depreciation) appreciation at 12/31/2019 (000)
5 Year U.S. Treasury Note Futures	Long	876	March 2020	$	87,600		$	103,902			$	(375	)
S&P 500 E-mini Index Contracts	Long	380	March 2020		19			61,391				1,045
											$	670

Investments in affiliates

	Beginning shares		Additions		Reductions		Ending shares		Net realized gain (000)		Net unrealized appreciation (000)		Dividend income (000)		Value of affiliates at 12/31/2019 (000)
Growth-and-income funds 81.15%
American Funds Insurance Series – Growth-Income Fund, Class 1		33,123,343		5,204,328		2,006,897		36,320,774	$	10,843	$	181,776	$	32,844	$	1,841,827

Fixed income funds 14.86%
American Funds Insurance Series – Bond Fund, Class 1		26,945,898		5,339,384		2,098,493		30,186,789		551		19,412		9,121		337,186
Total 96.01%									$	11,394	$	201,188	$	41,965	$	2,179,013

¹	Rate represents the seven-day yield at 12/31/2019.
²	Notional amount is calculated based on the number of contracts and notional contract size.
³	Value is calculated based on the notional amount and current market price.

See notes to financial statements.

120	American Funds Insurance Series

Managed Risk Asset Allocation Fund

Investment portfolio December 31, 2019

Asset allocation funds 95.49%	Shares		Value (000)
American Funds Insurance Series – Asset Allocation Fund, Class 1		112,462,863	$	2,704,731

Total asset allocation funds (cost: $2,461,096,000)				2,704,731

Short-term securities 4.57%
Government Cash Management Fund 1.51%¹		129,388,605		129,389

Total short-term securities (cost: $129,389,000)				129,389
Total investment securities 100.06% (cost: $2,590,485,000)				2,834,120
Other assets less liabilities (0.06)%				(1,616	)

Net assets 100.00%			$	2,832,504

Futures contracts

Contracts		Type		Number of contracts		Expiration		Notional amount (000)		²		Value at 12/31/2019 (000)		³	Unrealized depreciation at 12/31/2019 (000)
5 Year U.S. Treasury Note Futures		Long		1,222		March 2020		$	122,200			$	144,941			$	(525	)

Investment in affiliates

This holding is an affiliate of the fund under the Investment Company Act of 1940 since it is controlled by the same board of trustees as the series. Further details on this holding and related transactions during the year ended December 31, 2019, appear below.

	Beginning shares		Additions		Reductions		Ending shares		Net realized gain (000)		Net unrealized appreciation (000)		Dividend income (000)		Value of affiliates at 12/31/2019 (000)
Asset allocation funds 95.49%
American Funds Insurance Series – Asset Allocation Fund, Class 1		115,468,223		9,622,390		12,627,750		112,462,863	$	18,556	$	297,458	$	55,061	$	2,704,731

¹	Rate represents the seven-day yield at 12/31/2019.
²	Notional amount is calculated based on the number of contracts and notional contract size.
³	Value is calculated based on the notional amount and current market price.

See notes to financial statements.

American Funds Insurance Series

121

Financial statements

Statements of assets and liabilities
at December 31, 2019

	Global Growth Fund		Global Small Capitalization Fund		Growth Fund		International Fund		New World Fund
Assets:
Investment securities, at value:
Unaffiliated issuers	$	6,834,678	$	4,695,009	$	28,530,215	$	10,090,299	$	3,763,903
Affiliated issuers		—		12,711		—		—		—
Cash		77		984		961		1,558		5,500
Cash collateral received for securities on loan		—		9,581		—		—		—
Cash denominated in currencies other than U.S. dollars		187		5,130		822		3,548		730
Unrealized appreciation on open forward currency contracts		—		—		—		—		—
Receivables for:
Sales of investments		—		2,285		7,836		2,831		261
Sales of fund’s shares		2,516		3,547		5,850		1,503		1,370
Dividends and interest		12,553		3,331		40,016		17,475		6,799
Closed forward currency contracts		—		—		—		—		—
Variation margin on futures contracts		—		—		—		—		—
Variation margin on swap contracts		—		—		—		—		—
Securities lending income		—		384		—		—		9
Other		468		226		53		96		1,978
		6,850,479		4,733,188		28,585,753		10,117,310		3,780,550
Liabilities:
Collateral for securities on loan		—		95,814		—		—		—
Unrealized depreciation on open forward currency contracts		—		—		—		131		—
Payables for:
Purchases of investments		218		2,571		19,404		1,808		841
Repurchases of fund’s shares		40,573		4,821		82,386		18,480		3,083
Investment advisory services		2,924		2,682		7,647		4,148		2,180
Insurance administrative fees		226		121		897		230		382
Services provided by related parties		1,061		653		4,372		1,231		429
Trustees’ deferred compensation		77		52		497		207		36
Closed forward currency contracts		—		—		—		—		—
Variation margin on futures contracts		—		—		—		—		—
Variation margin on swap contracts		—		—		—		—		—
Non-U.S. taxes		4,857		6,103		811		15,406		13,045
Other		96		98		80		238		143
		50,032		112,915		116,094		41,879		20,139
Net assets at December 31, 2019	$	6,800,447	$	4,620,273	$	28,469,659	$	10,075,431	$	3,760,411

Net assets consist of:
Capital paid in on shares of beneficial interest	$	3,735,844	$	3,169,995	$	15,151,170	$	7,794,312	$	2,756,659
Total distributable earnings		3,064,603		1,450,278		13,318,489		2,281,119		1,003,752
Net assets at December 31, 2019	$	6,800,447	$	4,620,273	$	28,469,659	$	10,075,431	$	3,760,411

Investment securities on loan, at value	$	—	$	102,111	$	—	$	—	$	2,679
Investment securities, at cost:
Unaffiliated issuers		3,948,846		3,495,309		16,010,216		7,618,504		2,782,480
Affiliated issuers		—		45,916		—		—		—
Cash denominated in currencies other than U.S. dollars, at cost		186		5,130		822		3,531		745

See end of statements of assets and liabilities for footnote.

See notes to financial statements.

122	American Funds Insurance Series

(dollars in thousands)

Blue Chip Income and Growth Fund		Global Growth and Income Fund		Growth- Income Fund		International Growth and Income Fund		Capital Income Builder		Asset Allocation Fund		Global Balanced Fund		Bond Fund		Global Bond Fund

$	9,276,932	$	2,138,294	$	35,695,564	$	1,502,569	$	990,616	$	27,124,386	$	435,920	$	10,917,401	$	2,118,893
	—		—		336,143		—		—		444,495		—		—		—
	199		226		2,015		48		114		5,535		62		7,258		459
	—		—		—		—		—		510		—		—		—
	170		299		180		427		278		1,146		3		64		94
	—		—		—		—		—		—		173		2,743		3,976

	—		112		88		131		22,405		213,442		1		669,867		18,110
	1,708		662		5,285		300		1,104		9,829		140		7,295		2,121
	15,592		5,398		71,629		4,137		3,549		83,460		1,682		63,827		18,545
	—		—		—		—		—		—		—		—		53
	—		—		—		—		22		437		2		2,378		167
	—		—		—		—		97		292		13		948		200
	—		—		—		—		—		126		—		—		—
	10		393		394		40		22		160		32		61		162
	9,294,611		2,145,384		36,111,298		1,507,652		1,018,207		27,883,818		438,028		11,671,842		2,162,780

	—		—		—		—		—		5,103		—		—		—
	—		137		—		11		—		—		272		3,934		6,186

	509		44		12,801		184		18,310		434,944		264		1,108,141		25,517
	7,089		2,594		57,734		6,267		235		11,152		104		1,500		294
	3,021		1,056		7,672		755		397		6,088		242		3,237		954
	365		86		724		60		275		2,677		57		303		30
	1,007		369		4,017		111		118		2,703		73		1,126		276
	91		24		579		12		4		284		3		125		26
	—		—		—		—		—		—		—		—		66
	—		—		—		—		48		473		1		2,265		196
	—		—		—		—		56		17		7		51		218
	164		2,545		1,411		112		38		586		49		—		273
	4		46		94		54		10		136		6		—		100
	12,250		6,901		85,032		7,566		19,491		464,163		1,078		1,120,682		34,136
$	9,282,361	$	2,138,483	$	36,026,266	$	1,500,086	$	998,716	$	27,419,655	$	436,950	$	10,551,160	$	2,128,644

$	7,024,809	$	1,446,699	$	24,318,085	$	1,269,718	$	924,094	$	20,498,664	$	354,288	$	10,126,847	$	2,039,155
	2,257,552		691,784		11,708,181		230,368		74,622		6,920,991		82,662		424,313		89,489
$	9,282,361	$	2,138,483	$	36,026,266	$	1,500,086	$	998,716	$	27,419,655	$	436,950	$	10,551,160	$	2,128,644

$	—	$	—	$	—	$	—	$	—	$	5,211	$	—	$	—	$	—

	7,160,359		1,501,184		25,109,357		1,239,563		895,730		20,541,489		353,703		10,597,431		2,061,125
	—		—		279,526		—		—		328,678		—		—		—
	170		298		180		426		278		1,146		3		64		94

American Funds Insurance Series

123

Statements of assets and liabilities
at December 31, 2019

	High- Income Bond Fund			Mortgage Fund		Ultra-Short Bond Fund		U.S. Government/ AAA-Rated Securities Fund		Managed Risk Growth Fund
Assets:
Investment securities, at value:
Unaffiliated issuers	$	1,243,917		$	279,612	$	284,229	$	3,036,999	$	14,836
Affiliated issuers		—			—		—		—		425,111
Cash		726			262		109		2,199		99
Cash collateral pledged for futures contracts		154			—		—		—		—
Cash collateral pledged for swap contracts		2,100			—		—		—		—
Cash denominated in currencies other than U.S. dollars		—	*		—		—		—		—
Receivables for:
Sales of investments		2,727			83,408		—		298,428		447
Sales of fund’s shares		209			235		696		1,934		32
Dividends and interest		20,007			732		—		10,545		21
Variation margin on futures contracts		33			20		—		217		—
Variation margin on swap contracts		41			329		—		3,682		—
Other		3			1		—		—		—
		1,269,917			364,599		285,034		3,354,004		440,546
Liabilities:
Payables for:
Purchases of investments		2,150			69,602		—		453,440		29
Repurchases of fund’s shares		686			164		234		637		472
Investment advisory services		506			105		78		835		37
Insurance administrative fees		38			17		14		78		264
Services provided by related parties		188			25		62		386		89
Trustees’ deferred compensation		46			3		16		58		2
Variation margin on futures contracts		—			65		—		1,058		—
Variation margin on swap contracts		9			108		—		1,177		3
Other		1			—		—		1		—
		3,624			70,089		404		457,670		896
Net assets at December 31, 2019	$	1,266,293		$	294,510	$	284,630	$	2,896,334	$	439,650

Net assets consist of:
Capital paid in on shares of beneficial interest	$	1,456,035		$	291,684	$	283,903	$	2,843,203	$	375,936
Total (accumulated loss) distributable earnings		(189,742	)		2,826		727		53,131		63,714
Net assets at December 31, 2019	$	1,266,293		$	294,510	$	284,630	$	2,896,334	$	439,650

Investment securities on loan, at value	$	—		$	—	$	—	$	—	$	—
Investment securities, at cost:
Unaffiliated issuers		1,246,290			275,150		284,222		2,998,418		14,836
Affiliated issuers		—			—		—		—		379,115
Cash denominated in currencies other than U.S. dollars, at cost		—	*		—		—		—		—

See end of statements of assets and liabilities for footnote.

See notes to financial statements.

124	American Funds Insurance Series

(dollars in thousands)

Managed Risk International Fund		Managed Risk Blue Chip Income and Growth Fund		Managed Risk Growth- Income Fund		Managed Risk Asset Allocation Fund

$	7,541	$	12,609	$	90,848	$	129,389
	158,327		353,060		2,179,013		2,704,731
	50		85		2,356		856
	—		—		—		—
	—		—		—		—
	—		—		—		—

	134		89		21,241		649
	3		—		1,026		590
	10		18		117		178
	—		—		—		—
	—		—		126		—
	—		—		—		—
	166,065		365,861		2,294,727		2,836,393

	—		—		754		—
	144		94		22,617		1,273
	14		31		192		238
	101		221		1,376		1,735
	34		75		58		588
	1		2		6		26
	—		—		—		—
	2		3		—		29
	—		—		—		—
	296		426		25,003		3,889
$	165,769	$	365,435	$	2,269,724	$	2,832,504

$	154,345	$	346,751	$	1,940,147	$	2,449,900
	11,424		18,684		329,577		382,604
$	165,769	$	365,435	$	2,269,724	$	2,832,504

$	—	$	—	$	—	$	—

	7,541		12,609		100,969		129,389
	143,518		348,599		1,996,547		2,461,096
	—		—		—		—

American Funds Insurance Series

125

Statements of assets and liabilities
at December 31, 2019

		Global Growth Fund		Global Small Capitalization Fund		Growth Fund		International Fund		New World Fund
Shares of beneficial interest issued and outstanding (no stated par value) — unlimited shares authorized

Class 1:	Net assets	$	2,515,595	$	2,050,138	$	10,840,676	$	5,353,248	$	2,128,928
	Shares outstanding		77,246		76,500		133,471		256,566		82,393
	Net asset value per share	$	32.57	$	26.80	$	81.22	$	20.86	$	25.84
Class 1A:	Net assets	$	7,914	$	575	$	18,051	$	7,041	$	4,461
	Shares outstanding		244		22		223		339		173
	Net asset value per share	$	32.47	$	26.74	$	80.92	$	20.80	$	25.74
Class 2:	Net assets	$	3,894,942	$	2,363,250	$	15,884,538	$	4,310,970	$	981,055
	Shares outstanding		120,828		90,815		197,149		207,441		38,339
	Net asset value per share	$	32.24	$	26.02	$	80.57	$	20.78	$	25.59
Class 3:	Net assets					$	213,515	$	24,708
	Shares outstanding		Not applicable		Not applicable		2,609		1,181		Not applicable
	Net asset value per share					$	81.84	$	20.92
Class 4:	Net assets	$	381,996	$	206,310	$	1,512,879	$	379,464	$	645,967
	Shares outstanding		11,917		7,887		19,051		18,478		25,360
	Net asset value per share	$	32.05	$	26.16	$	79.41	$	20.54	$	25.47

		High- Income Bond Fund		Mortgage Fund		Ultra-Short Bond Fund		U.S. Government/ AAA-Rated Securities Fund		Managed Risk Growth Fund
Shares of beneficial interest issued and outstanding (no stated par value) — unlimited shares authorized

Class 1:	Net assets	$	524,749	$	210,225	$	29,304	$	1,418,254
	Shares outstanding		53,157		19,906		2,592		114,937		Not applicable
	Net asset value per share	$	9.87	$	10.56	$	11.30	$	12.34
Class 1A:	Net assets	$	726	$	493	$	10	$	2,474
	Shares outstanding		74		47		1		201		Not applicable
	Net asset value per share	$	9.86	$	10.55	$	11.30	$	12.32
Class 2:	Net assets	$	667,518	$	56,269	$	230,044	$	1,343,065
	Shares outstanding		68,819		5,338		20,889		109,962		Not applicable
	Net asset value per share	$	9.70	$	10.54	$	11.01	$	12.21
Class 3:	Net assets	$	9,941			$	3,187	$	8,818
	Shares outstanding		1,002		Not applicable		286		713		Not applicable
	Net asset value per share	$	9.92			$	11.13	$	12.37
Class 4:	Net assets	$	63,359	$	27,523	$	22,085	$	123,723
	Shares outstanding		5,997		2,637		1,984		10,128		Not applicable
	Net asset value per share	$	10.56	$	10.44	$	11.13	$	12.22
Class P1:	Net assets									$	5,745
	Shares outstanding		Not applicable		Not applicable		Not applicable		Not applicable		417
	Net asset value per share									$	13.78
Class P2:	Net assets									$	433,905
	Shares outstanding		Not applicable		Not applicable		Not applicable		Not applicable		31,656
	Net asset value per share									$	13.71

*	Amount less than one thousand.

See notes to financial statements.

126	American Funds Insurance Series

(dollars and shares in thousands, except per-share amounts)

Blue Chip Income and Growth Fund		Global Growth and Income Fund		Growth- Income Fund		International Growth and Income Fund		Capital Income Builder		Asset Allocation Fund		Global Balanced Fund		Bond Fund		Global Bond Fund

$	5,558,836	$	624,992	$	21,056,972	$	1,140,298	$	533,359	$	17,729,567	$	133,417	$	6,481,599	$	1,077,241
	409,812		39,269		415,250		62,738		49,708		737,257		9,877		580,461		88,893
$	13.56	$	15.92	$	50.71	$	18.18	$	10.73	$	24.05	$	13.51	$	11.17	$	12.12
$	9,073	$	1,904	$	10,901	$	2,475	$	5,710	$	10,719	$	2,284	$	6,646	$	456
	671		120		215		137		533		447		169		598		38
$	13.51	$	15.88	$	50.54	$	18.15	$	10.72	$	23.99	$	13.49	$	11.13	$	12.10
$	3,092,785	$	1,366,688	$	13,585,491	$	256,730	$	5,567	$	5,153,699	$	207,099	$	3,561,089	$	1,001,945
	231,052		86,034		271,274		14,170		519		216,630		15,358		323,062		83,303
$	13.39	$	15.89	$	50.08	$	18.12	$	10.72	$	23.79	$	13.48	$	11.02	$	12.03
				$	156,432					$	32,567
	Not applicable		Not applicable		3,079		Not applicable		Not applicable		1,352		Not applicable		Not applicable		Not applicable
				$	50.81					$	24.08
$	621,667	$	144,899	$	1,216,470	$	100,583	$	454,080	$	4,493,103	$	94,150	$	501,826	$	49,002
	46,696		9,268		24,567		5,586		42,408		189,815		7,048		45,627		4,112
$	13.31	$	15.63	$	49.52	$	18.01	$	10.71	$	23.67	$	13.36	$	11.00	$	11.92

Managed Risk International Fund		Managed Risk Blue Chip Income and Growth Fund		Managed Risk Growth- Income Fund		Managed Risk Asset Allocation Fund

	Not applicable		Not applicable		Not applicable		Not applicable


	Not applicable		Not applicable		Not applicable		Not applicable


	Not applicable		Not applicable		Not applicable		Not applicable


	Not applicable		Not applicable		Not applicable		Not applicable


	Not applicable		Not applicable		Not applicable		Not applicable

$	683	$	805	$	1,987,005	$	2,174
	62		67		144,442		157
$	11.01	$	12.01	$	13.76	$	13.81
$	165,086	$	364,630	$	282,719	$	2,830,330
	15,122		30,625		20,645		210,242
$	10.92	$	11.91	$	13.69	$	13.46

American Funds Insurance Series

127

Statements of operations
for the year ended December 31, 2019

	Global Growth Fund			Global Small Capitalization Fund			Growth Fund			International Fund			New World Fund
Investment income:
Income (net of non-U.S. taxes*):
Dividends	$	100,513		$	44,813		$	367,210		$	188,002		$	50,154
Interest		1,513			1,993			10,907			12,319			15,536
Securities lending income		—			5,572			—			—			9
		102,026			52,378			378,117			200,321			65,699
Fees and expenses*:
Investment advisory services		32,238			29,892			84,702			47,450			23,766
Distribution services		9,991			6,096			41,091			11,232			3,708
Insurance administrative services		810			445			3,298			867			1,405
Transfer agent services		1			1			3			1			—	^†
Administrative services		1,268			873			5,329			1,937			689
Reports to shareholders		218			163			948			351			132
Registration statement and prospectus		159			142			557			292			117
Trustees’ compensation		42			28			175			64			23
Auditing and legal		78			102			72			94			98
Custodian		869			796			492			1,634			933
Other		20			110			140			92			96
Total fees and expenses before waivers/reimbursements		45,694			38,648			136,807			64,014			30,967
Less waivers/reimbursements of fees and expenses:
Investment advisory services waivers		—			—			—			—			—
Miscellaneous fee reimbursements		—			—			—			—			—
Total waivers/reimbursements of fees and expenses		—			—			—			—			—
Total fees and expenses after waivers/reimbursements		45,694			38,648			136,807			64,014			30,967
Net investment income		56,332			13,730			241,310			136,307			34,732

Net realized gain (loss) and unrealized appreciation (depreciation):
Net realized gain (loss) on:
Investments
Unaffiliated issuers		194,169			251,392			746,022			(125,118	)		33,329
Affiliated issuers		—			—			—			—			—
Futures contracts		—			—			—			—			—
Forward currency contracts		—			—			—			(981	)		303
Swap contracts		—			—			—			—			—
Currency transactions		(251	)		(122	)		(486	)		(1,893	)		(681	)
		193,918			251,270			745,536			(127,992	)		32,951
Net unrealized appreciation (depreciation) on:
Investments
Unaffiliated issuers		1,619,656			899,816			6,038,099			1,988,055			789,738
Affiliated issuers		—			(17,366	)		—			—			—
Futures contracts		—			—			—			—			—
Forward currency contracts		—			—			—			394			(303	)
Swap contracts		—			—			—			—			—
Currency translations		91			109			133			(22	)		1,965
		1,619,747			882,559			6,038,232			1,988,427			791,400
Net realized gain (loss) and unrealized appreciation (depreciation)		1,813,665			1,133,829			6,783,768			1,860,435			824,351
Net increase in net assets resulting from operations	$	1,869,997		$	1,147,559		$	7,025,078		$	1,996,742		$	859,083

See end of statements of operations for footnotes.

See notes to financial statements.

128	American Funds Insurance Series

(dollars in thousands)

Blue Chip Income and Growth Fund			Global Growth and Income Fund			Growth- Income Fund			International Growth and Income Fund			Capital Income Builder			Asset Allocation Fund			Global Balanced Fund			Bond Fund			Global Bond Fund

$	234,613		$	51,517		$	766,259		$	45,191		$	25,475		$	375,876		$	6,913		$	16,529		$	1,213
	1,841			3,480			16,017			2,742			5,377			258,983			3,712			306,813			66,060
	—			—			—			—			—			126			—			—			—
	236,454			54,997			782,276			47,933			30,852			634,985			10,625			323,342			67,273

	34,092			11,970			85,788			8,588			4,075			67,563			2,697			37,299			11,276
	8,746			3,618			35,549			821			1,026			22,631			700			9,950			2,662
	1,255			304			2,707			218			1,025			10,170			211			1,084			114
	1			—	^†		4			—	^†		—	^†		3			—	^†		1			—	^†
	1,765			408			6,796			284			174			5,173			83			2,083			426
	355			60			1,336			27			17			1,018			7			286			68
	157			65			509			38			44			331			19			225			64
	59			13			221			9			6			170			3			68			14
	47			55			89			80			51			74			57			56			52
	237			443			598			330			77			257			64			211			404
	39			22			124			8			5			55			7			56			35
	46,753			16,958			133,721			10,403			6,500			107,445			3,848			51,319			15,115

	—			—			—			—			24			—			—			—			—
	—			—			—			—			—			—			—			—			—
	—			—			—			—			24			—			—			—			—
	46,753			16,958			133,721			10,403			6,476			107,445			3,848			51,319			15,115
	189,701			38,039			648,555			37,530			24,376			527,540			6,777			272,023			52,158

	85,832			51,401			903,747			(35,910	)		(7,360	)		488,583			9,817			195,373			11,564
	—			—			(1,021	)		—			—			(471,314	)		—			—			—
	—			—			—			—			(501	)		22,485			557			72,397			13,348
	—			579			—			(14	)		—			—			(440	)		58			(2,623	)
	—			—			—			—			985			(18,948	)		31			(25,282	)		1,525
	(3	)		(143	)		(250	)		(1,100	)		(2	)		103			(139	)		786			(2,149	)
	85,829			51,837			902,476			(37,024	)		(6,878	)		20,909			9,826			243,332			21,665

	1,423,937			449,977			6,047,455			293,943			117,252			3,772,779			59,030			433,411			101,447
	—			—			128,124			—			—			548,491			—			—			—
	—			—			—			—			(760	)		(8,123	)		(196	)		(23,687	)		(5,076	)
	—			(488	)		—			(12	)		—			—			(181	)		8,081			(9,128	)
	—			—			—			—			829			(255	)		(7	)		(6,333	)		141
	23			379			406			8			22			86			17			153			173
	1,423,960			449,868			6,175,985			293,939			117,343			4,312,978			58,663			411,625			87,557

	1,509,789			501,705			7,078,461			256,915			110,465			4,333,887			68,489			654,957			109,222
$	1,699,490		$	539,744		$	7,727,016		$	294,445		$	134,841		$	4,861,427		$	75,266		$	926,980		$	161,380

American Funds Insurance Series

129

Statements of operations
for the year ended December 31, 2019

	High- Income Bond Fund			Mortgage Fund			Ultra-Short Bond Fund			U.S. Government/ AAA-Rated Securities Fund			Managed Risk Growth Fund
Investment income:
Income (net of non-U.S. taxes*):
Dividends	$	994		$	—		$	—		$	—	^†	$	5,338
Interest		90,296			7,989			6,571			70,374			—
		91,290			7,989			6,571			70,374			5,338
Fees and expenses*:
Investment advisory services		6,009			1,231			925			9,824			590
Distribution services		1,855			202			640			3,611			974
Insurance administrative services		143			60			51			276			984
Transfer agent services		—	^†		—	^†		—	^†		—	^†		—	^†
Administrative services		253			59			58			582			—
Accounting and administrative services		—			—			—			—			54
Reports to shareholders		28			5			7			63			8
Registration statement and prospectus		34			15			10			55			21
Trustees’ compensation		8			2			1			20			2
Auditing and legal		50			45			43			46			15
Custodian		17			21			1			37			11
Other		32			3			2			8			3
Total fees and expenses before waivers/reimbursements		8,429			1,643			1,738			14,522			2,662
Less waivers/reimbursements of fees and expenses:
Investment advisory services waivers		—			—			—			—			197
Miscellaneous fee reimbursements		—			—			—			—			13
Total waivers/reimbursements of fees and expenses		—			—			—			—			210
Total fees and expenses after waivers/reimbursements		8,429			1,643			1,738			14,522			2,452
Net investment income		82,861			6,346			4,833			55,852			2,886

Net realized gain (loss) and unrealized appreciation (depreciation):
Net realized gain (loss) on:
Investments
Unaffiliated issuers		(18,671	)		2,660			(1	)		43,914			—
Affiliated issuers		—			—			—			—			3,620
Futures contracts		(236	)		6,233			—			85,989			(5,811	)
Swap contracts		(986	)		1,047			—			(7,749	)		—
Currency transactions		—	^†		—			—			—	^†		30
Capital gain distributions received from affiliated issuers		—			—			—			—			32,790
		(19,893	)		9,940			(1	)		122,154			30,629
Net unrealized appreciation (depreciation) on:
Investments
Unaffiliated issuers		89,670			5,462			15			52,718			—
Affiliated issuers		—			—			—			—			49,688
Futures contracts		159			(2,645	)		—			(35,398	)		(5,952	)
Swap contracts		(2,898	)		(4,026	)		—			(39,656	)		—
		86,931			(1,209	)		15			(22,336	)		43,736
Net realized gain (loss) and unrealized appreciation (depreciation)		67,038			8,731			14			99,818			74,365
Net increase in net assets resulting from operations	$	149,899		$	15,077		$	4,847		$	155,670		$	77,251

*	Additional information related to non-U.S. taxes, class-specific fees and expenses and affiliated income is included in the notes to financial statements.
^†	Amount less than one thousand.

See notes to financial statements.

130	American Funds Insurance Series

(dollars in thousands)

Managed Risk International Fund			Managed Risk Blue Chip Income and Growth Fund			Managed Risk Growth- Income Fund			Managed Risk Asset Allocation Fund

$	2,945		$	7,880		$	43,834		$	57,102
	—			—			—			—
	2,945			7,880			43,834			57,102

	239			527			3,162			4,046
	398			877			647			6,739
	399			878			5,270			6,744
	—	^†		—	^†		—	^†		—	^†
	—			—			—			—
	50			53			80			110
	4			7			30			49
	12			17			223			49
	1			2			12			21
	15			15			16			18
	11			11			12			11
	3			3			3			11
	1,132			2,390			9,455			17,798

	80			176			1,054			1,349
	47			14			—			—
	127			190			1,054			1,349
	1,005			2,200			8,401			16,449
	1,940			5,680			35,433			40,653

	—			—			(21,805	)		—
	617			169			11,394			18,556
	(1,246	)		(5,543	)		(7,635	)		(17,863	)
	—			—			—			—
	(4	)		26			114			117
	3,310			22,171			167,499			131,016
	2,677			16,823			149,567			131,826

	—			—			(11,132	)		—
	22,363			28,958			201,188			297,458
	(1,249	)		(5,833	)		(9,637	)		(25,848	)
	—			—			—			—
	21,114			23,125			180,419			271,610

	23,791			39,948			329,986			403,436
$	25,731		$	45,628		$	365,419		$	444,089

American Funds Insurance Series

131

Statements of changes in net assets

	Global Growth Fund						Global Small Capitalization Fund						Growth Fund
	Year ended December 31,						Year ended December 31,						Year ended December 31,
	2019			2018			2019			2018			2019			2018
Operations:
Net investment income	$	56,332		$	50,276		$	13,730		$	10,787		$	241,310		$	162,005
Net realized gain (loss)		193,918			343,542			251,270			247,061			745,536			2,848,894
Net unrealized appreciation (depreciation)		1,619,747			(919,676	)		882,559			(673,158	)		6,038,232			(2,971,090	)
Net increase (decrease) in net assets resulting from operations		1,869,997			(525,858	)		1,147,559			(415,310	)		7,025,078			39,809
Distributions paid to shareholders		(417,934	)		(474,814	)		(284,752	)		(196,135	)		(2,978,202	)		(2,648,515	)
Net capital share transactions		(153,769	)		267,749			102,952			(49,079	)		974,922			1,071,109
Total increase (decrease) in net assets		1,298,294			(732,923	)		965,759			(660,524	)		5,021,798			(1,537,597	)
Net assets:
Beginning of year		5,502,153			6,235,076			3,654,514			4,315,038			23,447,861			24,985,458
End of year	$	6,800,447		$	5,502,153		$	4,620,273		$	3,654,514		$	28,469,659		$	23,447,861

	International Growth and Income Fund						Capital Income Builder						Asset Allocation Fund
	Year ended December 31,						Year ended December 31,						Year ended December 31,
	2019			2018			2019			2018			2019			2018
Operations:
Net investment income	$	37,530		$	37,077		$	24,376		$	18,120		$	527,540		$	495,623
Net realized gain (loss)		(37,024	)		19,646			(6,878	)		(12,903	)		20,909			1,250,899
Net unrealized appreciation (depreciation)		293,939			(222,569	)		117,343			(53,867	)		4,312,978			(2,879,563	)
Net increase (decrease) in net assets resulting from operations		294,445			(165,846	)		134,841			(48,650	)		4,861,427			(1,133,041	)
Distributions paid to shareholders		(53,548	)		(35,982	)		(24,614	)		(20,515	)		(1,801,337	)		(1,587,775	)
Net capital share transactions		(78,069	)		77,119			213,209			149,988			1,434,114			(13,827	)
Total increase (decrease) in net assets		162,828			(124,709	)		323,436			80,823			4,494,204			(2,734,643	)
Net assets:
Beginning of year		1,337,258			1,461,967			675,280			594,457			22,925,451			25,660,094
End of year	$	1,500,086		$	1,337,258		$	998,716		$	675,280		$	27,419,655		$	22,925,451

See end of statements of changes in net assets for footnote.

See notes to financial statements.

132	American Funds Insurance Series

(dollars in thousands)

International Fund						New World Fund						Blue Chip Income and Growth Fund						Global Growth and Income Fund						Growth-Income Fund
Year ended December 31,						Year ended December 31,						Year ended December 31,						Year ended December 31,						Year ended December 31,
2019			2018			2019			2018			2019			2018			2019			2018			2019			2018

$	136,307		$	147,886		$	34,732		$	32,835		$	189,701		$	183,892		$	38,039		$	35,857		$	648,555		$	479,019
	(127,992	)		247,240			32,951			126,203			85,829			687,384			51,837			99,872			902,476			3,357,516
	1,988,427			(1,741,754	)		791,400			(647,033	)		1,423,960			(1,602,222	)		449,868			(325,530	)		6,175,985			(4,232,991	)

	1,996,742			(1,346,628	)		859,083			(487,995	)		1,699,490			(730,946	)		539,744			(189,801	)		7,727,016			(396,456	)

	(394,620	)		(646,470	)		(164,192	)		(126,412	)		(878,225	)		(883,615	)		(140,198	)		(186,991	)		(3,957,175	)		(2,606,909	)

	(536,801	)		1,245,386			54,641			92,573			429,824			265,984			(76,937	)		90,220			2,392,290			2,175,138
	1,065,321			(747,712	)		749,532			(521,834	)		1,251,089			(1,348,577	)		322,609			(286,572	)		6,162,131			(828,227	)

	9,010,110			9,757,822			3,010,879			3,532,713			8,031,272			9,379,849			1,815,874			2,102,446			29,864,135			30,692,362
$	10,075,431		$	9,010,110		$	3,760,411		$	3,010,879		$	9,282,361		$	8,031,272		$	2,138,483		$	1,815,874		$	36,026,266		$	29,864,135

Global Balanced Fund						Bond Fund						Global Bond Fund						High-Income Bond Fund						Mortgage Fund
Year ended December 31,						Year ended December 31,						Year ended December 31,						Year ended December 31,						Year ended December 31,
2019			2018			2019			2018			2019			2018			2019			2018			2019			2018

$	6,777		$	6,105		$	272,023		$	269,087		$	52,158		$	55,434		$	82,861		$	84,812		$	6,346		$	6,148
	9,826			3,576			243,332			(168,412	)		21,665			(11,729	)		(19,893	)		(24,544	)		9,940			(7,618	)
	58,663			(33,957	)		411,625			(164,842	)		87,557			(70,008	)		86,931			(86,196	)		(1,209	)		2,541

	75,266			(24,276	)		926,980			(64,167	)		161,380			(26,303	)		149,899			(25,928	)		15,077			1,071

	(16,934	)		(9,700	)		(280,200	)		(267,421	)		(35,756	)		(56,130	)		(79,066	)		(79,933	)		(7,525	)		(6,505	)

	12,429			46,266			49,693			(511,419	)		(84,997	)		(297,128	)		(8,439	)		(144,120	)		(4,217	)		(43,561	)
	70,761			12,290			696,473			(843,007	)		40,627			(379,561	)		62,394			(249,981	)		3,335			(48,995	)

	366,189			353,899			9,854,687			10,697,694			2,088,017			2,467,578			1,203,899			1,453,880			291,175			340,170
$	436,950		$	366,189		$	10,551,160		$	9,854,687		$	2,128,644		$	2,088,017		$	1,266,293		$	1,203,899		$	294,510		$	291,175

American Funds Insurance Series

133

Statements of changes in net assets

	Ultra-Short Bond Fund						U.S. Government/ AAA-Rated Securities Fund						Managed Risk Growth Fund
	Year ended December 31,						Year ended December 31,						Year ended December 31,
	2019			2018			2019			2018			2019			2018
Operations:
Net investment income	$	4,833		$	4,036		$	55,852		$	56,785		$	2,886		$	1,509
Net realized gain (loss)		(1	)		—			122,154			(86,715	)		30,629			21,463
Net unrealized appreciation (depreciation)		15			33			(22,336	)		49,517			43,736			(26,917	)
Net increase (decrease) in net assets resulting from operations		4,847			4,069			155,670			19,587			77,251			(3,945	)
Distributions paid to shareholders		(5,093	)		(3,517	)		(60,961	)		(55,819	)		(30,222	)		(21,941	)
Net capital share transactions		(21,528	)		1,047			(67,678	)		(197,780	)		49,348			81,200
Total increase (decrease) in net assets		(21,774	)		1,599			27,031			(234,012	)		96,377			55,314
Net assets:
Beginning of year		306,404			304,805			2,869,303			3,103,315			343,273			287,959
End of year	$	284,630		$	306,404		$	2,896,334		$	2,869,303		$	439,650		$	343,273

See notes to financial statements.

134	American Funds Insurance Series

(dollars in thousands)

Managed Risk International Fund						Managed Risk Blue Chip Income and Growth Fund						Managed Risk Growth-Income Fund						Managed Risk Asset Allocation Fund
Year ended December 31,						Year ended December 31,						Year ended December 31,						Year ended December 31,
2019			2018			2019			2018			2019			2018			2019			2018

$	1,940		$	2,317		$	5,680		$	5,276		$	35,433		$	2,685		$	40,653		$	62,566
	2,677			5,722			16,823			18,018			149,567			6,953			131,826			97,415
	21,114			(25,332	)		23,125			(49,299	)		180,419			(21,166	)		271,610			(366,555	)

	25,731			(17,293	)		45,628			(26,005	)		365,419			(11,528	)		444,089			(206,574	)

	(7,796	)		(3,428	)		(23,415	)		(23,525	)		(32,440	)		(12,352	)		(177,811	)		(242,968	)

	(3,125	)		23,257			6,553			19,295			44,643			1,707,014			23,729			(1,462,371	)
	14,810			2,536			28,766			(30,235	)		377,622			1,683,134			290,007			(1,911,913	)

	150,959			148,423			336,669			366,904			1,892,102			208,968			2,542,497			4,454,410
$	165,769		$	150,959		$	365,435		$	336,669		$	2,269,724		$	1,892,102		$	2,832,504		$	2,542,497

American Funds Insurance Series

135

Notes to financial statements

1. Organization

American Funds Insurance Series (the “series”) is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company with 34 different funds (“the funds”), including 23 funds in the series covered in this report. The other 11 funds in the series are covered in separate reports. Six funds in the series are covered in the American Funds Insurance Series -Target Date Series report and five funds in the series are covered in the American Funds Insurance Series - Portfolio Series report. The assets of each fund are segregated, with each fund accounted for separately. Capital Research and Management Company (“CRMC”) is the series’ investment adviser. Milliman Financial Risk Management LLC (“Milliman FRM”) is the subadviser for the risk management strategy for eight of the funds (the “managed risk funds”), five of which are covered in this report.

The managed risk funds covered in this report are Managed Risk Growth Fund, Managed Risk International Fund, Managed Risk Blue Chip Income and Growth Fund, Managed Risk Growth-Income Fund and Managed Risk Asset Allocation Fund. The managed risk funds invest in other funds within the series (the “underlying funds”) and employ Milliman FRM to implement the risk management strategy, which consists of using hedging instruments — primarily short positions on exchange-traded futures contracts — to attempt to stabilize the volatility of the funds around target volatility levels and reduce the downside exposure of the funds during periods of significant market declines.

Shareholders approved a proposal to reorganize the series from a Massachusetts business trust to a Delaware statutory trust. The series reserved the right to delay implementing the reorganization and has elected to do so.

The investment objectives for each fund covered in this report are as follows:

Global Growth Fund — To provide long-term growth of capital.

Global Small Capitalization Fund — To provide long-term growth of capital.

Growth Fund — To provide growth of capital.

International Fund — To provide long-term growth of capital.

New World Fund — To provide long-term capital appreciation.

Blue Chip Income and Growth Fund — To produce income exceeding the average yield on U.S. stocks generally and to provide an opportunity for growth of principal consistent with sound common stock investing.

Global Growth and Income Fund — To provide long-term growth of capital while providing current income.

Growth-Income Fund — To achieve long-term growth of capital and income.

International Growth and Income Fund — To provide long-term growth of capital while providing current income.

Capital Income Builder — The two primary objectives are (1) to provide a level of current income that exceeds the average yield on U.S. stocks generally and (2) to provide a growing stream of income over the years. The secondary objective is to provide growth of capital.

Asset Allocation Fund — To provide high total return (including income and capital gains) consistent with preservation of capital over the long term.

Global Balanced Fund — Seeks the balanced accomplishment of three objectives: long-term growth of capital, conservation of principal and current income.

Bond Fund — To provide as high a level of current income as is consistent with the preservation of capital.

Global Bond Fund — To provide, over the long term, a high level of total return consistent with prudent investment management.

High-Income Bond Fund — The primary objective is to provide a high level of current income. The secondary objective is capital appreciation.

136	American Funds Insurance Series

Mortgage Fund — To provide current income and preservation of capital.

Ultra-Short Bond Fund — To provide current income, consistent with the maturity and quality standards applicable to the fund, and preservation of capital and liquidity.

U.S. Government/AAA-Rated Securities Fund — To provide a high level of current income consistent with preservation of capital.

Managed Risk Growth Fund — To provide growth of capital while seeking to manage volatility and provide downside protection.

Managed Risk International Fund — To provide long-term growth of capital while seeking to manage volatility and provide downside protection.

Managed Risk Blue Chip Income and Growth Fund — To produce income exceeding the average yield on U.S. stocks generally and to provide an opportunity for growth of principal consistent with sound common stock investing, in each case while seeking to manage volatility and provide downside protection.

Managed Risk Growth-Income Fund — To achieve long-term growth of capital and income while seeking to manage volatility and provide downside protection.

Managed Risk Asset Allocation Fund — To provide high total return (including income and capital gains) consistent with preservation of capital over the long term while seeking to manage volatility and provide downside protection.

Each fund in the series, except the managed risk funds, offers either four or five share classes (Classes 1, 1A, 2, 3 or 4); the managed risk funds offer two share classes (Classes P1 and P2). Holders of all share classes of each fund have equal pro rata rights to assets, dividends and liquidation proceeds of each fund held. Each share class of each fund has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses (“class-specific fees and expenses”), primarily due to different arrangements for certain distribution expenses. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class of each fund.

2. Significant accounting policies

Each fund is an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. Each fund’s financial statements have been prepared to comply with U.S. generally accepted accounting principles (“U.S. GAAP”). These principles require the series’ investment adviser to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Subsequent events, if any, have been evaluated through the date of issuance in the preparation of the financial statements. The funds follow the significant accounting policies described in this section, as well as the valuation policies described in the next section on valuation.

Security transactions and related investment income — Security transactions are recorded by the funds as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. In the event a security is purchased with a delayed payment date, the funds will segregate liquid assets sufficient to meet their payment obligations. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.

Fees and expenses — The fees and expenses of the underlying funds held by the managed risk funds are not included in the fees and expenses reported for each of the managed risk funds; however, they are indirectly reflected in the valuation of each of the underlying funds. These fees are included in the net effective expense ratios that are provided as additional information in the financial highlights tables.

Class allocations — Income, fees and expenses (other than class-specific fees and expenses) and realized and unrealized gains and losses are allocated daily among the various share classes of each fund based on their relative net assets. Class-specific fees and expenses, such as distribution expenses, are accrued daily and charged directly to the respective share class of each fund.

Distributions paid to shareholders — Income dividends and capital gain distributions are recorded on each fund’s ex-dividend date.

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Currency translation — Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates supplied by one or more pricing vendors on the valuation date. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions. The effects of changes in exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments in the funds’ statements of operations. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in currencies other than U.S. dollars are disclosed separately.

3. Valuation

CRMC, the series’ investment adviser, values the funds’ investments at fair value as defined by U.S. GAAP. The net asset value of each share class of each fund is generally determined as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.

Methods and inputs — The series’ investment adviser uses the following methods and inputs to establish the fair value of each fund’s assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.

Equity securities are generally valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market on which the security trades. The value of an underlying fund is based on its reported net asset value.

Fixed-income securities, including short-term securities, are generally valued at prices obtained from one or more pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the funds are authorized to invest. However, these classifications are not exclusive and any of the inputs may be used to value any other class of fixed-income security.

Fixed-income class	Examples of standard inputs
All	Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”)
Corporate bonds & notes; convertible securities	Standard inputs and underlying equity of the issuer
Bonds & notes of governments & government agencies	Standard inputs and interest rate volatilities
Mortgage-backed; asset-backed obligations	Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information
Municipal securities	Standard inputs and, for certain distressed securities, cash flows or liquidation values using a net present value calculation based on inputs that include, but are not limited to, financial statements and debt contracts

When the series’ investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be representative), fixed-income securities will be valued in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask prices are not available) or at prices for securities of comparable maturity, quality and type.

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Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described for either equity or fixed-income securities, depending on which method is deemed most appropriate by the series’ investment adviser. The Government Cash Management Fund held by the managed risk funds is managed to maintain a $1.00 net asset value per share. The Capital Group Central Cash Fund (“CCF”) is valued based upon a floating net asset value, which fluctuates with changes in the value of CCF’s portfolio securities. The underlying securities are valued based on the policies and procedures in CCF’s statement of additional information. The net asset value of each share class of each managed risk fund is calculated based on the reported net asset values of the underlying funds in which each fund invests.

Exchange-traded options and futures are generally valued at the official closing price for options and official settlement price for futures of the exchange or market on which such instruments are traded, as of the close of business on the day such instruments are being valued. Forward currency contracts are valued at the mean of representative quoted bid and ask prices, generally based on prices supplied by one or more pricing vendors. Interest rate swaps and credit default swaps are generally valued by pricing vendors based on market inputs that include the index and term of index, reset frequency, payer/receiver, currency and pay frequency.

Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the series’ investment adviser are fair valued as determined in good faith under fair value guidelines adopted by authority of the series’ board of trustees as further described. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. In addition, the closing prices of equity securities and futures that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of each fund is determined. Fair valuations and valuations of investments and futures that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.

Processes and structure — The series’ board of trustees has delegated authority to the series’ investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees. The series’ board and audit committee also regularly review reports that describe fair value determinations and methods.

The series’ investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.

Classifications — The series’ investment adviser classifies the funds’ assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities.

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The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following tables present the funds’ valuation levels as of December 31, 2019 (dollars in thousands):

Global Growth Fund
	Investment securities
	Level 1		Level 2		Level 3		Total
Assets:
Common stocks:
Information technology	$	1,185,255	$	794,324	$	—	$	1,979,579
Consumer discretionary		474,696		744,806		—		1,219,502
Health care		527,781		214,362		—		742,143
Financials		302,133		398,337		—		700,470
Consumer staples		291,919		259,874		—		551,793
Communication services		372,299		163,033		—		535,332
Industrials		73,839		453,487		—		527,326
Materials		144,609		41,190		—		185,799
Energy		12,046		125,318		—		137,364
Utilities		—		5,646		—		5,646
Preferred securities		—		112,584		—		112,584
Short-term securities		137,140		—		—		137,140
Total	$	3,521,717	$	3,312,961	$	—	$	6,834,678

Global Small Capitalization Fund

	Investment securities
	Level 1		Level 2		Level 3		Total
Assets:
Common stocks:
Health care	$	832,166	$	191,178	$	—	$	1,023,344
Information technology		472,972		397,575		—		870,547
Industrials		128,020		558,859		—		686,879
Consumer discretionary		450,887		224,996		—		675,883
Financials		194,307		161,242		—		355,549
Real estate		121,286		62,447		—		183,733
Materials		98,936		80,609		—		179,545
Communication services		56,064		89,863		—		145,927
Consumer staples		46,475		76,569		—		123,044
Energy		32,183		26,545		14,352		73,080
Utilities		17,485		46,609		—		64,094
Preferred securities		17,503		—		29,706		47,209
Rights & warrants		—		53		—		53
Short-term securities		278,833		—		—		278,833
Total	$	2,747,117	$	1,916,545	$	44,058	$	4,707,720

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Growth Fund

	Investment securities
	Level 1		Level 2			Level 3		Total
Assets:
Common stocks:
Information technology	$	6,232,866	$	927,524		$	—	$	7,160,390
Communication services		5,180,447		—			—		5,180,447
Health care		4,685,272		29,104			38,849		4,753,225
Consumer discretionary		3,070,193		143,533			—		3,213,726
Financials		2,245,437		171,043			—		2,416,480
Industrials		1,283,561		551,356			—		1,834,917
Materials		758,550		47,905			—		806,455
Consumer staples		522,509		251,756			—		774,265
Energy		698,230		—			—		698,230
Real estate		486,857		—			—		486,857
Utilities		77,731		—			—		77,731
Convertible bonds		—		—			25,000		25,000
Short-term securities		1,102,492		—			—		1,102,492
Total	$	26,344,145	$	2,122,221		$	63,849	$	28,530,215

International Fund

	Investment securities
	Level 1		Level 2			Level 3		Total
Assets:
Common stocks:
Financials	$	63,111	$	1,589,115		$	—	$	1,652,226
Consumer discretionary		549,505		856,658			—		1,406,163
Industrials		31,330		1,364,421			—		1,395,751
Health care		89,208		1,162,960			—		1,252,168
Information technology		47,551		682,008			—		729,559
Materials		297,118		380,773			—		677,891
Consumer staples		22,274		654,869			—		677,143
Communication services		12,395		482,238			—		494,633
Energy		91,650		398,340			—		489,990
Utilities		—		358,981			—		358,981
Real estate		—		223,309			—		223,309
Preferred securities		50,234		70,526			—		120,760
Rights & warrants		—		22,939			—		22,939
Bonds, notes & other debt instruments		—		44,329			—		44,329
Short-term securities		544,457		—			—		544,457
Total	$	1,798,833	$	8,291,466		$	—	$	10,090,299

	Other investments*
	Level 1		Level 2			Level 3		Total
Liabilities:
Unrealized depreciation on open forward currency contracts	$	—	$	(131	)	$	—	$	(131	)

*	Forward currency contracts are not included in the investment portfolio.

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New World Fund

	Investment securities
	Level 1		Level 2			Level 3		Total
Assets:
Common stocks:
Information technology	$	585,583	$	279,934		$	—	$	865,517
Financials		118,563		374,375			—		492,938
Energy		41,325		330,863			—		372,188
Health care		186,827		157,245			—		344,072
Materials		161,739		151,049			—		312,788
Consumer discretionary		111,867		152,128			—		263,995
Communication services		181,968		39,344			—		221,312
Consumer staples		10,237		199,516			—		209,753
Industrials		13,319		152,169			—		165,488
Real estate		20,109		21,107			—		41,216
Utilities		17,612		15,724			—		33,336
Preferred securities		42,757		28,620			27		71,404
Rights & warrants		—		26,479			—		26,479
Bonds, notes & other debt instruments		—		96,814			—		96,814
Short-term securities		238,673		7,930			—		246,603
Total	$	1,730,579	$	2,033,297		$	27	$	3,763,903

Blue Chip Income and Growth Fund At December 31, 2019, all of the fund’s investment securities were classified as Level 1. Global Growth and Income Fund

	Investment securities
	Level 1		Level 2			Level 3		Total
Assets:
Common stocks:
Information technology	$	177,115	$	158,462		$	—	$	335,577
Industrials		116,335		152,898			—		269,233
Financials		87,217		166,525			—		253,742
Consumer discretionary		90,534		114,346			—		204,880
Health care		137,436		62,628			—		200,064
Communication services		72,048		108,658			—		180,706
Materials		82,829		79,135			—		161,964
Energy		25,886		113,797			—		139,683
Utilities		13,510		110,341			—		123,851
Real estate		95,121		15,936			—		111,057
Consumer staples		22,758		63,369			—		86,127
Preferred securities		7,892		—			—		7,892
Bonds, notes & other debt instruments		—		34,957			—		34,957
Short-term securities		28,561		—			—		28,561
Total	$	957,242	$	1,181,052		$	—	$	2,138,294

	Other investments*
	Level 1		Level 2			Level 3		Total
Liabilities:
Unrealized depreciation on open forward currency contracts	$	—	$	(137	)	$	—	$	(137	)

*	Forward currency contracts are not included in the investment portfolio.

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Growth-Income Fund

	Investment securities
	Level 1		Level 2			Level 3		Total
Assets:
Common stocks:
Health care	$	5,175,002	$	664,418		$	—	$	5,839,420
Information technology		5,204,952		215,296			—		5,420,248
Communication services		4,182,848		149,142			—		4,331,990
Financials		3,510,960		401,089			—		3,912,049
Industrials		3,108,920		698,875			—		3,807,795
Consumer staples		1,541,333		1,016,810			—		2,558,143
Energy		2,399,987		99,768			—		2,499,755
Consumer discretionary		1,775,002		48,931			—		1,823,933
Materials		1,577,903		163,566			—		1,741,469
Real estate		1,068,563		—			—		1,068,563
Utilities		717,617		163,329			—		880,946
Mutual funds		—		16,337			—		16,337
Convertible stocks		184,737		—			—		184,737
Bonds, notes & other debt instruments		—		5,722			—		5,722
Short-term securities		1,940,600		—			—		1,940,600
Total	$	32,388,424	$	3,643,283		$	—	$	36,031,707

International Growth and Income Fund

	Investment securities
	Level 1		Level 2			Level 3		Total
Assets:
Common stocks:
Financials	$	4,550	$	246,628		$	—	$	251,178
Industrials		—		164,295			—		164,295
Consumer discretionary		55,639		101,948			—		157,587
Health care		6,488		135,357			—		141,845
Energy		21,294		90,307			—		111,601
Utilities		—		94,713			—		94,713
Materials		6,679		84,933			—		91,612
Information technology		—		84,551			—		84,551
Consumer staples		—		78,182			—		78,182
Communication services		20,440		56,878			—		77,318
Real estate		—		73,379			—		73,379
Preferred securities		31,463		—			—		31,463
Bonds, notes & other debt instruments		—		16,819			—		16,819
Short-term securities		128,026		—			—		128,026
Total	$	274,579	$	1,227,990		$	—	$	1,502,569

	Other investments*
	Level 1		Level 2			Level 3		Total
Liabilities:
Unrealized depreciation on open forward currency contracts	$	—	$	(11	)	$	—	$	(11	)

*	Forward currency contracts are not included in the investment portfolio.

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Capital Income Builder

	Investment securities
	Level 1			Level 2			Level 3		Total
Assets:
Common stocks:
Consumer staples	$	38,725		$	64,427		$	—	$	103,152
Information technology		66,952			29,080			—		96,032
Financials		45,772			38,435			—		84,207
Real estate		47,566			31,086			—		78,652
Energy		40,806			19,724			—		60,530
Health care		23,819			29,326			—		53,145
Communication services		4,574			44,219			—		48,793
Utilities		14,681			33,269			—		47,950
Industrials		17,339			27,817			—		45,156
Consumer discretionary		21,286			19,400			—		40,686
Materials		18,022			8,478			—		26,500
Rights & warrants		—			—	*		—		—	*
Convertible stocks		16,025			—			—		16,025
Bonds, notes & other debt instruments:
U.S. Treasury bonds & notes		—			103,624			—		103,624
Corporate bonds & notes		—			48,638			—		48,638
Mortgage-backed obligations		—			46,322			—		46,322
Asset-backed obligations		—			14,269			—		14,269
Municipals		—			415			—		415
Short-term securities		76,520			—			—		76,520
Total	$	432,087		$	558,529		$	—	$	990,616

	Other investments^†
	Level 1			Level 2			Level 3		Total
Assets:
Unrealized appreciation on futures contracts	$	37		$	—		$	—	$	37
Unrealized appreciation on interest rate swaps		—			1,109			—		1,109
Liabilities:
Unrealized depreciation on futures contracts		(368	)		—			—		(368	)
Unrealized depreciation on interest rate swaps		—			(280	)		—		(280	)
Total	$	(331	)	$	829		$	—	$	498

*	Amount less than one thousand.
^†	Futures contracts and interest rate swaps are not included in the investment portfolio.

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Asset Allocation Fund

	Investment securities
	Level 1			Level 2			Level 3		Total
Assets:
Common stocks:
Information technology	$	4,271,389		$	20,847		$	20	$	4,292,256
Financials		2,943,889			78,737			—		3,022,626
Health care		2,830,970			85,268			3,683		2,919,921
Industrials		1,502,299			115,339			—		1,617,638
Consumer discretionary		1,098,602			242,932			—		1,341,534
Communication services		1,184,337			—			—		1,184,337
Consumer staples		788,363			363,014			—		1,151,377
Energy		1,028,032			1,506			—		1,029,538
Materials		697,667			—			—		697,667
Real estate		238,213			—			—		238,213
Utilities		172,921			—			—		172,921
Rights & warrants		—			—			1,070		1,070
Convertible stocks		137,828			—			4,983		142,811
Convertible bonds		—			127			—		127
Bonds, notes & other debt instruments:
U.S. Treasury bonds & notes		—			3,226,667			—		3,226,667
Corporate bonds & notes		—			2,834,147			6,531		2,840,678
Mortgage-backed obligations		—			1,900,213			—		1,900,213
Federal agency bonds & notes		—			12,974			—		12,974
Other		—			186,876			—		186,876
Short-term securities		1,589,437			—			—		1,589,437
Total	$	18,483,947		$	9,068,647		$	16,287	$	27,568,881

	Other investments*
	Level 1			Level 2			Level 3		Total
Assets:
Unrealized appreciation on futures contracts	$	1,710		$	—		$	—	$	1,710
Unrealized appreciation on interest rate swaps		—			1,035			—		1,035
Liabilities:
Unrealized depreciation on futures contracts		(4,672	)		—			—		(4,672	)
Unrealized depreciation on interest rate swaps		—			(4,847	)		—		(4,847	)
Total	$	(2,962	)	$	(3,812	)	$	—	$	(6,774	)

*	Futures contracts and interest rate swaps are not included in the investment portfolio.

American Funds Insurance Series

145

Global Balanced Fund

	Investment securities
	Level 1			Level 2			Level 3		Total
Assets:
Common stocks:
Information technology	$	30,609		$	29,614		$	—	$	60,223
Health care		26,812			21,313			—		48,125
Financials		22,318			19,024			—		41,342
Consumer staples		20,634			18,609			—		39,243
Industrials		11,263			20,997			—		32,260
Consumer discretionary		12,095			7,459			—		19,554
Materials		2,530			9,294			—		11,824
Real estate		10,418			—			—		10,418
Communication services		4,785			2,422			—		7,207
Energy		4,309			2,872			—		7,181
Utilities		—			3,015			—		3,015
Bonds, notes & other debt instruments:
Bonds & notes of governments & government agencies outside the U.S.		—			60,125			—		60,125
U.S. Treasury bonds & notes		—			51,042			—		51,042
Corporate bonds & notes		—			21,074			—		21,074
Mortgage-backed obligations		—			8,367			—		8,367
Short-term securities		2,825			12,095			—		14,920
Total	$	148,598		$	287,322		$	—	$	435,920

	Other investments*
	Level 1			Level 2			Level 3		Total
Assets:
Unrealized appreciation on open forward currency contracts	$	—		$	173		$	—	$	173
Unrealized appreciation on interest rate swaps		—			12			—		12
Liabilities:
Unrealized depreciation on futures contracts		(16	)		—			—		(16	)
Unrealized depreciation on open forward currency contracts		—			(272	)		—		(272	)
Unrealized depreciation on interest rate swaps		—			(14	)		—		(14	)
Total	$	(16	)	$	(101	)	$	—	$	(117	)

*	Futures contracts, forward currency contracts and interest rate swaps are not included in the investment portfolio.

Bond Fund

	Investment securities
	Level 1		Level 2		Level 3		Total
Assets:
Bonds, notes & other debt instruments:
Mortgage-backed obligations	$	—	$	3,363,969	$	—	$	3,363,969
Corporate bonds & notes		—		3,122,420		—		3,122,420
U.S. Treasury bonds & notes		—		3,031,887		—		3,031,887
Bonds & notes of governments & government agencies outside the U.S.		—		319,908		—		319,908
Asset-backed obligations		—		238,376		—		238,376
Municipals		—		226,157		—		226,157
Federal agency bonds & notes		—		12,086		—		12,086
Common stocks		—		135		9		144
Rights & warrants		—		1		2		3
Short-term securities		602,451		—		—		602,451
Total	$	602,451	$	10,314,939	$	11	$	10,917,401

146	American Funds Insurance Series

	Other investments*
		Level 1			Level 2			Level 3		Total
Assets:
Unrealized appreciation on futures contracts	$	8,373		$	—		$	—	$	8,373
Unrealized appreciation on open forward currency contracts		—			2,743			—		2,743
Unrealized appreciation on interest rate swaps		—			5,879			—		5,879
Liabilities:
Unrealized depreciation on futures contracts		(12,452	)		—			—		(12,452	)
Unrealized depreciation on open forward currency contracts		—			(3,934	)		—		(3,934	)
Unrealized depreciation on interest rate swaps		—			(11,985	)		—		(11,985	)
Total	$	(4,079	)	$	(7,297	)	$	—	$	(11,376	)

*	Futures contracts, forward currency contracts and interest rate swaps are not included in the investment portfolio.

Global Bond Fund

	Investment securities
	Level 1			Level 2			Level 3		Total
Assets:
Bonds, notes & other debt instruments:
Euros	$	—		$	379,876		$	—	$	379,876
Japanese yen		—			284,116			—		284,116
Chinese yuan renminbi		—			69,268			—		69,268
Malaysian ringgits		—			38,844			—		38,844
Indian rupees		—			35,296			—		35,296
Brazilian reais		—			33,633			—		33,633
South African rand		—			31,058			—		31,058
Danish kroner		—			30,945			—		30,945
British pounds		—			29,213			—		29,213
Canadian dollars		—			27,439			—		27,439
Mexican pesos		—			26,891			—		26,891
Norwegian kroner		—			24,740			—		24,740
Israeli shekels		—			23,588			—		23,588
Polish zloty		—			17,537			—		17,537
U.S. dollars		—			879,679			1,187		880,866
Other		—			59,257			—		59,257
Convertible bonds		—			10			—		10
Convertible stocks		—			—			847		847
Common stocks		881			258			3		1,142
Rights & warrants		—			—			130		130
Short-term securities		77,745			46,452			—		124,197
Total	$	78,626		$	2,038,100		$	2,167	$	2,118,893

	Other investments*
	Level 1			Level 2			Level 3		Total
Assets:
Unrealized appreciation on futures contracts	$	234		$	—		$	—	$	234
Unrealized appreciation on open forward currency contracts		—			3,976			—		3,976
Unrealized appreciation on interest rate swaps		—			165			—		165
Unrealized appreciation on credit default swaps		—			731			—		731
Liabilities:
Unrealized depreciation on futures contracts		(1,039	)		—			—		(1,039	)
Unrealized depreciation on open forward currency contracts		—			(6,186	)		—		(6,186	)
Unrealized depreciation on interest rate swaps		—			(704	)		—		(704	)
Total	$	(805	)	$	(2,018	)	$	—	$	(2,823	)

*	Futures contracts, forward currency contracts, interest rate swaps and credit default swaps are not included in the investment portfolio.

American Funds Insurance Series

147

High-Income Bond Fund

	Investment securities
	Level 1			Level 2			Level 3		Total
Assets:
Bonds, notes & other debt instruments:
Corporate bonds & notes	$	—		$	1,165,929		$	9,187	$	1,175,116
Municipals		—			5			—		5
Convertible bonds		—			4,694			—		4,694
Convertible stocks		3,223			—			4,834		8,057
Preferred securities		—			2,187			—		2,187
Common stocks		7,454			1,635			4,946		14,035
Rights & warrants		—			3			708		711
Short-term securities		39,112			—			—		39,112
Total	$	49,789		$	1,174,453		$	19,675	$	1,243,917

	Other investments¹
	Level 1			Level 2			Level 3		Total
Assets:
Unrealized appreciation on futures contracts	$	192		$	—		$	—	$	192
Liabilities:
Unrealized depreciation on futures contracts		(33	)		—			—		(33	)
Unrealized depreciation on credit default swaps		—			(1,578	)		—		(1,578	)
Total	$	159		$	(1,578	)	$	—	$	(1,419	)

¹	Futures contracts and credit default swaps are not included in the investment portfolio.

The following table reconciles the valuation of the fund’s Level 3 investment securities and related transactions for the year ended December 31, 2019 (dollars in thousands):

	Beginning value at 1/1/2019		Transfers into Level 3		²	Purchases		Sales			Net realized gain		³	Unrealized depreciation		³	Transfers out of Level 3		²	Ending value at 12/31/2019
Investment securities	$	17,537	$	—		$	10,278	$	(5,076	)	$	6		$	(3,050	)	$	(20	)	$	19,675
Net unrealized depreciation during the period on Level 3 investment securities held at December 31, 2019																				$	(3,075	)

²	Transfers into or out of Level 3 are based on the beginning market value of the quarter in which they occurred.
³	Net realized gain and unrealized depreciation are included in the related amounts on investments in the statement of operations.

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Unobservable inputs — Valuation of the fund’s Level 3 securities is based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The following table provides additional information used by the fund’s investment adviser to fair value the fund’s Level 3 securities (dollars in thousands):

Value at
12/31/2019

Valuation
techniques

Unobservable
inputs

Range
(if appropriate)

Weighted
average

Impact to
valuation from
an increase in
input*

Bonds, notes & other debt instruments

9,187

Yield analysis

Yield to maturity risk premium

N/A

Decrease

Redemption value

N/A

Market comparable security

N/A

Convertible stocks

4,834

Multiple of revenue

Revenue multiple

0.85x

Increase

Market comparable companies

EBITDA multiple

4.8x

Increase

Discount for lack of marketability

20%

Decrease

Common stocks

4,946

Multiple of revenue

Revenue multiple

1.4x

Increase

Expected proceeds

Discount to reflect timing of receipt and amount of proceeds

50%

Decrease

Black-Scholes

Implied volatility

30%

Increase

Rights & warrants

708

Market comparables

$ per acre

$4.5K

Increase

$ per thousand barrels of oil equivalent per day

$25K

Increase

19,675

This column represents the directional change in fair value of the Level 3 securities that would result in an increase from the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these inputs in isolation could result in significantly higher or lower fair value measurements.

Key to abbreviation

EBITDA = Earnings before income taxes, depreciation and amortization

Mortgage Fund

	Investment securities
	Level 1			Level 2			Level 3		Total
Assets:
Bonds, notes & other debt instruments:
Mortgage-backed obligations	$	—		$	186,650		$	—	$	186,650
U.S. Treasury bonds & notes		—			28,434			—		28,434
Federal agency bonds & notes		—			18,896			—		18,896
Asset-backed obligations		—			4,681			—		4,681
Short-term securities		—			40,951			—		40,951
Total	$	—		$	279,612		$	—	$	279,612

	Other investments*
	Level 1			Level 2			Level 3		Total
Assets:
Unrealized appreciation on interest rate swaps	$	—		$	1,618		$	—	$	1,618
Liabilities:
Unrealized depreciation on futures contracts		(746	)		—			—		(746	)
Unrealized depreciation on interest rate swaps		—			(4,450	)		—		(4,450	)
Total	$	(746	)	$	(2,832	)	$	—	$	(3,578	)

*	Futures contracts and interest rate swaps are not included in the investment portfolio.

Ultra-Short Bond Fund

At December 31, 2019, all of the fund’s investment securities were classified as Level 2.

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149

U.S. Government/AAA-Rated Securities Fund

	Investment securities
	Level 1			Level 2			Level 3		Total
Assets:
Bonds, notes & other debt instruments:
U.S. Treasury bonds & notes	$	—		$	1,481,384		$	—	$	1,481,384
Mortgage-backed obligations		—			801,424			—		801,424
Federal agency bonds & notes		—			521,045			—		521,045
Short-term securities		—			233,146			—		233,146
Total	$	—		$	3,036,999		$	—	$	3,036,999

	Other investments*
	Level 1			Level 2			Level 3		Total
Assets:
Unrealized appreciation on futures contracts	$	687		$	—		$	—	$	687
Unrealized appreciation on interest rate swaps		—			25,927			—		25,927
Liabilities:
Unrealized depreciation on futures contracts		(8,635	)		—			—		(8,635	)
Unrealized depreciation on interest rate swaps		—			(46,229	)		—		(46,229	)
Total	$	(7,948	)	$	(20,302	)	$	—	$	(28,250	)

*	Futures contracts and interest rate swaps are not included in the investment portfolio.

Managed Risk Growth Fund

At December 31, 2019, all of the fund’s investments were classified as Level 1.

Managed Risk International Fund

At December 31, 2019, all of the fund’s investments were classified as Level 1.

Managed Risk Blue Chip Income and Growth Fund

At December 31, 2019, all of the fund’s investments were classified as Level 1.

Managed Risk Growth-Income Fund

At December 31, 2019, all of the fund’s investments were classified as Level 1.

Managed Risk Asset Allocation Fund

At December 31, 2019, all of the fund’s investments were classified as Level 1.

4. Risk factors

Investing in the funds may involve certain risks including, but not limited to, those described below.

Market conditions — The prices of, and the income generated by, the common stocks, bonds and other securities held by a fund may decline — sometimes rapidly or unpredictably — due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

Issuer risks — The prices of, and the income generated by, securities held by a fund may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation related to the issuer, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

Investing in stocks — Investing in stocks may involve larger price swings and greater potential for loss than other types of investments. As a result, the value of a fund may be subject to sharp declines in value. Income provided by a fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the fund invests. These risks may be even greater in the case of smaller capitalization stocks.

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Investing in small companies — Investing in smaller companies may pose additional risks. For example, it is often more difficult to value or dispose of small company stocks and more difficult to obtain information about smaller companies than about larger companies. Furthermore, smaller companies often have limited product lines, operating histories, markets and/or financial resources, may be dependent on one or a few key persons for management, and can be more susceptible to losses. Moreover, the prices of their stocks may be more volatile than stocks of larger, more established companies, particularly during times of market turmoil.

Investing outside the U.S. — Securities of issuers domiciled outside the U.S., or with significant operations or revenues outside the U.S., may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as nationalization, currency blockage or the imposition of price controls or punitive taxes, each of which could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the U.S. Investments outside the U.S. may also be subject to different accounting practices and different regulatory, legal and reporting standards and practices, and may be more difficult to value, than those in the U.S. In addition, the value of investments outside the U.S. may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by the fund. The risks of investing outside the U.S. may be heightened in connection with investments in emerging markets.

Investing in developing countries — Investing in countries with developing economies and/or markets may involve risks in addition to and greater than those generally associated with investing in developed countries. For instance, emerging market countries may have less developed legal and accounting systems than those in developed countries. The governments of these countries may be less stable and more likely to impose capital controls, nationalize a company or industry, place restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, and/or impose punitive taxes that could adversely affect the prices of securities. In addition, the economies of these countries may be dependent on relatively few industries that are more susceptible to local and global changes. Securities markets in these countries can also be relatively small and have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid, and may be more difficult to value, than securities issued in countries with more developed economies and/or markets. Less certainty with respect to security valuations may lead to additional challenges and risks in calculating the fund’s net asset value. Additionally, emerging markets are more likely to experience problems with the clearing and settling of trades and the holding of securities by banks, agents and depositories that are less established than those in developed countries.

Investing in emerging markets — Investing in emerging markets may involve risks in addition to and greater than those generally associated with investing in the securities markets of developed countries. For instance, emerging market countries may have less developed legal and accounting systems than those in developed countries. The governments of these countries may be less stable and more likely to impose capital controls, nationalize a company or industry, place restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, and/or impose punitive taxes that could adversely affect the prices of securities. In addition, the economies of these countries may be dependent on relatively few industries that are more susceptible to local and global changes. Securities markets in these countries can also be relatively small and have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid, and may be more difficult to value, than securities issued in countries with more developed economies and/or markets. Less certainty with respect to security valuations may lead to additional challenges and risks in calculating a fund’s net asset value. Additionally, emerging markets are more likely to experience problems with the clearing and settling of trades and the holding of securities by banks, agents and depositories that are less established than those in developed countries.

Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by a fund may be affected by changing interest rates and by changes in the effective maturities and credit ratings of these securities.

Rising interest rates will generally cause the prices of bonds and other debt securities to fall. A general rise in interest rates may cause investors to sell debt securities on a large scale, which could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from a fund. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in a fund failing to recoup the full amount of its initial investment and having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.

Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer or guarantor will weaken or be perceived to be weaker, and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. A downgrade or default affecting any of a fund’s securities could cause the value of a fund’s shares to decrease. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than

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higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which a fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The fund’s investment adviser relies on its own credit analysts to research issuers and issues in seeking to assess credit and default risks.

Investing in lower rated debt instruments — Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to investments in junk bonds.

Investing in derivatives — The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional securities, such as stocks and bonds. Changes in the value of a derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a derivative instrument may expose a fund to losses in excess of its initial investment. Derivatives may be difficult to value, difficult for a fund to buy or sell at an opportune time or price and difficult, or even impossible, to terminate or otherwise offset. A fund’s use of derivatives may result in losses to the fund, and investing in derivatives may reduce a fund’s returns and increase a fund’s price volatility. A fund’s counterparty to a derivative transaction (including, if applicable, the fund’s clearing broker, the derivatives exchange or the clearinghouse) may be unable or unwilling to honor its financial obligations in respect of the transaction. In certain cases, the fund may be hindered or delayed in exercising remedies against or closing out derivative instruments with a counterparty, which may result additional losses.

Currency — The prices of, and the income generated by, most debt securities held by a fund may also be affected by changes in relative currency values. If the U.S. dollar appreciates against foreign currencies, the value in U.S. dollars of a fund’s securities denominated in such currencies would generally fall and vice versa. U.S. dollar-denominated securities of foreign issuers may also be affected by changes in relative currency values.

Investing in mortgage-related and other asset-backed securities — Mortgage-related securities, such as mortgage-backed securities, and other asset-backed securities, include debt obligations that represent interests in pools of mortgages or other income-bearing assets, such as consumer loans or receivables. Such securities often involve risks that are different from or more acute than the risks associated with investing in other types of debt securities. Mortgage-backed and other asset-backed securities are subject to changes in the payment patterns of borrowers of the underlying debt, potentially increasing the volatility of the securities and a fund’s net asset value. When interest rates fall, borrowers are more likely to refinance or prepay their debt before its stated maturity. This may result in a fund having to reinvest the proceeds in lower yielding securities, effectively reducing a fund’s income. Conversely, if interest rates rise and borrowers repay their debt more slowly than expected, the time in which the mortgage-backed and other asset-backed securities are paid off could be extended, reducing a fund’s cash available for reinvestment in higher yielding securities. Mortgage-backed securities are also subject to the risk that underlying borrowers will be unable to meet their obligations and the value of property that secures the mortgages may decline in value and be insufficient, upon foreclosure, to repay the associated loans. Investments in asset-backed securities are subject to similar risks.

Investing in future delivery contracts — A fund may enter into contracts, such as to-be-announced contracts and mortgage dollar rolls, that involve a fund selling mortgage-related securities and simultaneously contracting to repurchase similar securities for delivery at a future date at a predetermined price. This can increase a fund’s market exposure, and the market price of the securities that the fund contracts to repurchase could drop below their purchase price. While a fund can preserve and generate capital through the use of such contracts by, for example, realizing the difference between the sale price and the future purchase price, the income generated by the fund may be reduced by engaging in such transactions. In addition, these transactions may increase the turnover rate of a fund.

Investing in inflation linked bonds — The values of inflation linked bonds generally fluctuate in response to changes in real interest rates — i.e., rates of interest after factoring in inflation. A rise in real interest rates may cause the prices of inflation linked securities to fall, while a decline in real interest rates may cause the prices to increase. Inflation linked bonds may experience greater losses than other debt securities with similar durations when real interest rates rise faster than nominal interest rates. There can be no assurance that the value of an inflation linked security will be directly correlated to changes in interest rates; for example, if interest rates rise for reasons other than inflation, the increase may not be reflected in the security’s inflation measure.

Investing in inflation linked bonds may also reduce a fund’s distributable income during periods of deflation. If prices for goods and services decline throughout the economy, the principal and income on inflation linked securities may decline and result in losses to a fund.

Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates and the credit rating of the U.S. government. Securities

152	American Funds Insurance Series

issued by government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.

Investing in repurchase agreements — Upon entering into a repurchase agreement, a fund purchases a security from a bank or broker-dealer, which simultaneously commits to repurchase the security within a specified time at the fund’s cost with interest. The security purchased by the fund constitutes collateral for the seller’s repurchase obligation. If the party agreeing to repurchase should default, the fund may seek to sell the security it holds as collateral. The fund may incur a loss if the value of the collateral securing the repurchase obligation falls below the repurchase price. The fund may also incur disposition costs and encounter procedural delays in connection with liquidating the collateral.

Interest rate risk — The values and liquidity of the securities held by a fund may be affected by changing interest rates. For example, the values of these securities may decline when interest rates rise and increase when interest rates fall. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities. A fund may invest in variable and floating rate securities. When a fund holds variable or floating rate securities, a decrease in market interest rates will adversely affect the income received from such securities and the net asset value of a fund’s shares. Although the values of such securities are generally less sensitive to interest rate changes than those of other debt securities, the value of variable and floating rate securities may decline if their interest rates do not rise as quickly, or as much, as market interest rates. Conversely, floating rate securities will not generally increase in value if interest rates decline. During periods of extremely low short-term interest rates, a fund may not be able to maintain a positive yield and, given the current low interest rate environment, risks associated with rising rates are currently heightened.

Credit and liquidity support — Changes in the credit quality of banks and financial institutions providing credit and liquidity support features with respect to securities held by a fund could cause the values of these securities to decline.

Asset allocation — A fund’s percentage allocation to equity securities, debt securities and money market instruments could cause the fund to underperform relative to relevant benchmarks and other funds with similar investment objectives.

Nondiversification risk— As nondiversified funds, certain funds have the ability to invest a larger percentage of their assets in the securities of a smaller number of issuers than diversified funds. Although the funds do not intend to limit their investments to the securities of a small number of issuers, if they were to do so, poor performance by a single large holding could adversely impact the funds’ investment results more than if the funds were invested in a larger number of issuers.

Liquidity risk — Certain fund holdings may be or may become difficult or impossible to sell, particularly during times of market turmoil. Liquidity may be impacted by the lack of an active market for a holding, legal or contractual restrictions on resale, or the reduced number and capacity of market participants to make a market in such holding. Market prices for less liquid or illiquid holdings may be volatile, and reduced liquidity may have an adverse impact on the market price of such holdings. Additionally, the sale of less liquid or illiquid holdings may involve substantial delays (including delays in settlement) and additional costs and the fund may be unable to sell such holdings when necessary to meet its liquidity needs or may be forced to sell at a loss.

Management — The investment adviser to the funds actively manages the funds’ investments. Consequently, the funds are subject to the risk that the methods and analyses, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and may not produce the desired results. This could cause the funds to lose value or their investment results to lag relevant benchmarks or other funds with similar objectives.

Investing in the managed risk funds may involve additional risks including, but not limited to, those described below.

Fund structure — The managed risk funds invest in underlying funds and incur expenses related to those underlying funds. In addition, investors in the managed risk funds will incur fees to pay for certain expenses related to the operations of the managed risk funds. An investor holding the underlying fund directly would incur lower overall expenses but would not receive the benefit of the managed risk strategy. Additionally, in accordance with an exemption under the Investment Company Act of 1940, as amended, the investment adviser considers only proprietary funds when selecting underlying investment options and allocations. This means that the fund’s investment adviser did not, nor does it expect to, consider any unaffiliated funds as underlying investment options for the fund. This strategy could raise certain conflicts of interest when choosing underlying investments for the fund, including the selection of funds that result in greater compensation to the adviser or funds with relatively lower historical investment results. The investment adviser has policies and procedures designed to mitigate material conflicts of interest that may arise in connection with its management of the fund.

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Management — The managed risk funds are subject to the risk that the managed risk strategy or the methods employed by the subadviser in implementing the managed risk strategy may not produce the desired results. This could cause the managed risk funds to lose value or their investment results to lag relevant benchmarks or other funds with similar objectives.

Underlying fund risks — Because the managed risk funds’ investments consist of investments in underlying funds, the managed risk funds’ risks are directly related to the risks of the respective underlying fund in which each managed risk fund invests. For this reason, it is important to understand the risks associated with investing both in the managed risk fund and in each of the underlying funds.

Investing in options and futures contracts — In addition to the risks generally associated with investing in derivative instruments, options and futures contracts are subject to the creditworthiness of the clearing organizations, exchanges and, in the case of futures, futures commission merchants with which a fund transacts. Additionally, although futures require only a small initial investment in the form of a deposit of initial margin, the amount of a potential loss on a futures contract could greatly exceed the initial amount invested. While both options and futures contracts are generally liquid instruments, under certain market conditions, options and futures may be deemed to be illiquid. For example, a fund may be temporarily prohibited from closing out its position in an options or futures contract if intraday price change limits or limits on trading volume imposed by the applicable exchange are triggered. If a fund is unable to close out a position on an options or futures contract, the fund would remain subject to the risk of adverse price movements until the fund is able to close out the position in question. The ability of a fund to successfully utilize options and futures contracts may depend in part upon the ability of the fund’s investment adviser or subadviser to accurately forecast interest rates and other economic factors and to assess and predict the impact of such economic factors on the options and futures in which the fund invests. If the investment adviser or subadviser incorrectly forecasts economic developments or incorrectly predicts the impact of such developments on the options and futures in which it invests, a fund could be exposed to the risk of loss. Whereas the risk of loss on a put option purchased by the fund is limited to the initial cost of the option, the amount of a potential loss on a futures contract could greatly exceed the relatively small initial amount invested in entering the futures position.

Hedging — There may be imperfect or even negative correlation between the prices of the options and futures contracts in which a fund invests and the prices of the underlying securities or indexes which the fund seeks to hedge. For example, options and futures contracts may not provide an effective hedge because changes in options and futures contract prices may not track those of the underlying securities or indexes they are intended to hedge. In addition, there are significant differences between the securities market, on the one hand, and the options and futures markets, on the other, that could result in an imperfect correlation between the markets, causing a given hedge not to achieve its objectives. The degree of imperfection of correlation depends on circumstances such as variations in speculative market demand for options and futures, including technical influences in options and futures trading, and differences between the financial instruments being hedged and the instruments underlying the standard contracts available for trading. A decision as to whether, when and how to hedge involves the exercise of skill and judgment, and even a well-conceived hedge may be unsuccessful to some degree because of market behavior or unexpected interest rate trends. In addition, the fund’s investment in exchange-traded options and futures and their resulting costs could limit the fund’s gains in rising markets relative to those of the underlying funds, or to those of unhedged funds in general.

Short positions — Losses from short positions in futures contracts occur when the underlying index increases in value. As the underlying index increases in value, the holder of the short position in the corresponding futures contract is required to pay the difference in value of the futures contract resulting from the increase in the index on a daily basis. Losses from a short position in an index futures contract could potentially be very large if the value of the underlying index rises dramatically in a short period of time.

5. Certain investment techniques

Securities lending — Some of the funds have entered into securities lending transactions in which the funds earn income by lending investment securities to brokers, dealers or other institutions. Each transaction involves three parties: the fund, acting as the lender of the securities, a borrower, and a lending agent that acts as an intermediary.

Securities lending transactions are entered into by the fund under the securities lending agreement with the lending agent. The lending agent facilitates the exchange of securities between the lender and the borrower, generally provides protection from borrower default, marks to market the value of collateral daily, secures additional collateral from the borrower if it falls below preset terms, and may reinvest the collateral on behalf of the fund according to agreed parameters. The lending agent has indemnified the fund against losses resulting from borrower default. Although risk is mitigated by the collateral and indemnification, the fund could experience a delay in recovering its securities and a potential loss of income or value if the borrower fails to return the securities, collateral investments decline in value or the lending agent fails to perform.

154	American Funds Insurance Series

The borrower is required to post highly liquid assets, such as cash or U.S. government securities, as collateral for the loan in an amount at least equal to the value of the securities loaned. Investments made with cash collateral are recognized as assets in the fund’s investment portfolio. The same amount is recorded as a liability in the fund’s statement of assets and liabilities. While securities are on loan, the fund will continue to receive the equivalent of the interest, dividends or other distributions paid by the issuer, as well as a portion of the interest on the investment of the collateral. Additionally, although the fund does not have the right to vote on securities while they are on loan, the fund has a right to consent on corporate actions and a right to recall loaned securities to vote on proposals affecting them. The borrower is obligated to return the loaned security at the conclusion of the loan or, during the pendency of the loan, on demand from the fund.

The following table presents the value of the securities on loan, the type and value of collateral received and the value of the investment securities purchased, if any, from the cash collateral received by each fund (dollars in thousands):

			Collateral type
Fund		Value of securities on loan		Cash	U.S. government securities	Value of investment securities purchased
Global Small Capitalization Fund	$	102,111	$	95,814	$ 11,588	$ 86,233
New World Fund		2,679		—	2,733	—
Asset Allocation Fund		5,211		5,103	232	4,593

Investment securities purchased from cash collateral are disclosed in the summary investment portfolio as short-term securities. Securities received as collateral, if any, are not recognized as fund assets. The contractual maturity of collateral received under the securities lending agreement is classified as overnight and continuous.

Index-linked bonds — Some of the funds have invested in index-linked bonds, which are fixed-income securities whose principal value is periodically adjusted to a government price index. Over the life of an index-linked bond, interest is paid on the adjusted principal value. Increases or decreases in the principal value of index-linked bonds are recorded as interest income in the fund’s statement of operations.

Mortgage dollar rolls — Some of the funds have entered into mortgage dollar roll transactions in which the fund sells a mortgage-backed security to a counterparty and simultaneously enters into an agreement with the same counterparty to buy back a similar security on a specific future date at a predetermined price. Mortgage dollar rolls are accounted for as purchase and sale transactions, which may increase the funds’ portfolio turnover rates.

Loan transactions — Some of the funds have entered into loan transactions in which the fund acquires a loan either through an agent, by assignment from another holder, or as a participation interest in another holder’s portion of a loan. The loan is often administered by a financial institution that acts as agent for the holders of the loan, and the fund may be required to receive approval from the agent and/or borrower prior to the sale of the investment. The loan’s interest rate and maturity date may change based on the terms of the loan, including potential early payments of principal.

Short-term securities — The managed risk funds hold shares of the Government Cash Management Fund, a cash management vehicle offered by the Bank of New York Mellon (“BNY Mellon”), the funds’ custodian bank. The Government Cash Management Fund is managed by the Dreyfus Corporation.

Unfunded commitments — High-Income Bond Fund has participated in transactions that involve unfunded commitments, which may obligate the fund to purchase new or additional bonds if certain contingencies are met. As of December 31, 2019, the maximum exposure of unfunded loan commitments for High-Income Bond Fund was $131,000, which would represent 0.01% of the net assets of the fund should such commitments become due.

Options contracts — The Managed Risk Growth-Income Fund has entered into options contracts, which give the holder of the option, in return for a premium payment, the right to buy from (in the case of a call) or sell to (in the case of a put) the writer of the option, the security underlying the option (or the cash value of the index underlying the option) at a specified price. As part of its managed risk strategy, the Managed Risk Growth-Income Fund will at times purchase put options on equity indexes in standardized contracts traded on foreign or domestic securities exchanges, boards of trade, or similar entities. By purchasing a put option on an equity index, the fund obtains the right (but not the obligation) to sell the cash value of the index underlying the option at a specified exercise price, and in return for this right, the fund pays the current market price, or the option premium, for the option.

American Funds Insurance Series

155

The fund may terminate its position in a put option by allowing the option to expire or by exercising the option. If the option is allowed to expire, the fund will lose the entire premium. If the option is exercised, the fund completes the sale of the underlying instrument (or delivers the cash value of the index underlying the option) at the exercise price. The fund may also terminate a put option position by entering into opposing close-out transactions in advance of the option expiration date.

Premiums paid on options purchased, as well as the daily fluctuation in market value, are included in investment securities in the fund’s statement of assets and liabilities. Realized gains or losses are recorded at the time the option contract is closed or expires. Net realized gains or losses and net unrealized appreciation or depreciation from options contracts are recorded in the fund’s statement of operations.

Futures contracts — Some of the funds have entered into futures contracts, which provide for the future sale by one party and purchase by another party of a specified amount of a specific financial instrument for a specified price, date, time and place designated at the time the contract is made. Futures contracts are used to strategically manage the fund’s interest rate sensitivity by increasing or decreasing the duration of the fund or a portion of the fund’s portfolio. For the managed risk funds, futures contracts are used to strategically manage portfolio volatility and downside equity risk.

Upon entering into futures contracts, and to maintain the fund’s open positions in futures contracts, the fund is required to deposit with a futures broker, known as a futures commission merchant (“FCM”), in a segregated account in the name of the FCM an amount of cash, U.S. government securities or other liquid securities, known as initial margin. The margin required for a particular futures contract is set by the exchange on which the contract is traded to serve as collateral, and may be significantly modified from time to time by the exchange during the term of the contract. Securities deposited as initial margin, if any, are disclosed in the investment portfolio and cash deposited as initial margin, if any, is reflected as cash pledged for futures contracts in the fund’s statement of assets and liabilities.

On a daily basis, each fund pays or receives variation margin based on the increase or decrease in the value of the futures contracts and records variation margin on futures contracts in each fund’s statement of assets and liabilities. In addition, each fund segregates liquid assets equivalent to the fund’s outstanding obligations under the contract in excess of the initial margin and variation margin, if any. Futures contracts may involve a risk of loss in excess of the variation margin shown on each fund’s statement of assets and liabilities. Each fund records realized gains or losses at the time the futures contract is closed or expires. Net realized gains or losses and net unrealized appreciation or depreciation from futures contracts are recorded in each fund’s statement of operations.

Forward currency contracts — Some of the funds have entered into forward currency contracts, which represent agreements to exchange currencies on specific future dates at predetermined rates. The series’ investment adviser uses forward currency contracts to manage the fund’s exposure to changes in exchange rates. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from possible movements in exchange rates.

On a daily basis, the series’ investment adviser values forward currency contracts based on the applicable exchange rates and records unrealized appreciation or depreciation for open forward currency contracts in each fund’s statement of assets and liabilities. Realized gains or losses are recorded at the time the forward contract is closed or offset by another contract with the same broker for the same settlement date and currency. Closed forward currency contracts that have not reached their settlement date are included in the respective receivables or payables for closed forward currency contracts in each fund’s statement of assets and liabilities. Net realized gains or losses from closed forward currency contracts and net unrealized appreciation or depreciation from open forward currency contracts are recorded in each fund’s statement of operations.

Interest rate swaps — Some of the funds have entered into interest rate swaps, which are agreements to exchange one stream of future interest payments for another based on a specified notional amount. Typically, interest rate swaps exchange a fixed interest rate for a payment that floats relative to a benchmark or vice versa. The series’ investment adviser uses interest rate swaps to manage the interest rate sensitivity of the fund by increasing or decreasing the duration of the fund or a portion of the fund’s portfolio. Risks may arise as a result of the series’ investment adviser incorrectly anticipating changes in interest rates, increased volatility, reduced liquidity and the potential inability of counterparties to meet the terms of their agreements.

Upon entering into an interest rate swap contract, the fund is required to deposit cash, U.S. government securities or other liquid securities, which is known as initial margin. Generally, the initial margin required for a particular interest rate swap is set and held as collateral by the clearinghouse on which the contract is cleared. The amount of initial margin required may be significantly modified from time to time by the clearinghouse during the term of the contract.

On a daily basis, the series’ investment adviser records daily interest accruals related to the exchange of future payments as a receivable and payable in each fund’s statement of assets and liabilities. Each fund also pays or receives a variation margin based on the increase or decrease in the value of the interest rate swaps, including accrued interest, and records variation margin on interest rate swaps in

156	American Funds Insurance Series

each fund’s statement of assets and liabilities. Each fund records realized gains and losses on both the net accrued interest and any gain or loss recognized at the time the interest rate swap is closed or expires. Net realized gains or losses, as well as any net unrealized appreciation or depreciation, from interest rate swaps are recorded in each fund’s statement of operations.

Credit default swap indices — Some of the funds have entered into centrally cleared credit default swap agreements on credit indices (“CDSI”) that involve one party (the protection buyer) making a stream of payments to another party (the protection seller) in exchange for the right to receive a specified return upon the occurrence of a credit event, such as a default or restructuring, with respect to any of the underlying issuers (reference obligations) in the referenced index. The series’ investment adviser uses credit default swaps to assume exposure to a diversified portfolio of credits or to hedge against existing credit risks.

CDSI are portfolios of credit instruments or exposures designed to be representative of some part of the credit market, such as the high-yield or investment-grade credit market. CDSI are generally traded using standardized terms, including a fixed spread and standard maturity dates, and reference all the names in the index. If there is a credit event, it is settled based on that name’s weight in the index. The composition of the underlying issuers or obligations within a particular index may change periodically, usually every six months. A specified credit event may affect all or individual underlying reference obligations included in the index, and will be settled based upon the relative weighting of the affected obligation(s) within the index. The value of each CDSI can be used as a measure of the current payment/performance risk of the CDSI and represents the likelihood of an expected liability or profit should the notional amount of the CDSI be closed or sold as of the period end. An increasing value, as compared to the notional amount of the CDSI, represents a deterioration of the referenced indices’ credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement. When a fund provides sell protection, its maximum exposure is the notional amount of the credit default swap agreement.

Upon entering into a centrally cleared CDSI contract, the fund is required to deposit with a derivatives clearing member (“DCM”) in a segregated account in the name of the DCM an amount of cash, U.S. government securities or other liquid securities, which is known as initial margin. Generally, the initial margin required for a particular credit default swap is set and held as collateral by the clearinghouse on which the contract is cleared. The amount of initial margin required may be significantly modified from time to time by the clearinghouse during the term of the contract. Securities deposited as initial margin are designated on the investment portfolio.

On a daily basis, interest accruals related to the exchange of future payments are recorded as a receivable and payable in each fund’s statement of assets and liabilities. Each fund also pays or receives a variation margin based on the increase or decrease in the value of the centrally cleared swaps, and records variation margin in each fund’s statement of assets and liabilities. Each fund records realized gains and losses on both the net accrued interest and any gain or loss recognized at the time the swap is closed or expires. Net realized gains or losses, as well as any net unrealized appreciation or depreciation, from credit default swaps are recorded in each fund’s statement of operations.

The following table presents the average month-end notional amounts of options contracts purchased, futures contracts, forward currency contracts, interest rate swaps and credit default swaps while held for each fund (dollars in thousands):

Options
contracts
purchased

Futures
contracts

Forward
currency
contracts

Interest
rate
swaps

Credit
default
swaps

International Fund

Not applicable

$79,279

Not applicable

New World Fund

Not applicable

5,048

Not applicable

Global Growth and Income Fund

Not applicable

7,314

Not applicable

International Growth and Income Fund

Not applicable

1,564

Not applicable

Capital Income Builder

Not applicable

$117,725

Not applicable

$229,667

Not applicable

Asset Allocation Fund

Not applicable

2,471,967

Not applicable

503,101

Not applicable

Global Balanced Fund

Not applicable

11,883

23,258

29,983

Not applicable

Bond Fund

Not applicable

4,367,285

671,642

1,344,692

Not applicable

Global Bond Fund

Not applicable

470,248

678,676

532,130

$130,250

High-Income Bond Fund

Not applicable

75,400

Not applicable

31,175

61,207

Mortgage Fund

Not applicable

158,792

Not applicable

587,735

Not applicable

U.S. Government/AAA-Rated Securities Fund

Not applicable

2,472,410

Not applicable

13,841,522

Not applicable

Managed Risk Growth Fund

Not applicable

27,364

Not applicable

Managed Risk International Fund

Not applicable

46,121

Not applicable

Managed Risk Blue Chip Income and Growth Fund

Not applicable

23,146

Not applicable

Managed Risk Growth-Income Fund

$29,328

130,576

Not applicable

Managed Risk Asset Allocation Fund

Not applicable

139,336

Not applicable

*	No contracts were held at the end of the reporting period; amount represents the average month-end notional amount of contracts while they were held.

American Funds Insurance Series

157

The following tables identify the location and fair value amounts on the funds’ statements of assets and liabilities and the effect on the funds’ statements of operations resulting from the funds’ use of options, futures contracts, forward currency contracts, interest rate swaps and/or credit default swaps as of, or for the year ended, December 31, 2019 (dollars in thousands):

International Fund

Assets

Liabilities

Contracts

Risk type

Location on statement of
assets and liabilities

Value

Location on statement of
assets and liabilities

Value

Forward currency

Currency

Unrealized appreciation on open forward currency contracts

—

Unrealized depreciation on open forward currency contracts

131

Net realized loss

Net unrealized appreciation

Contracts

Risk type

Location on statement of
operations

Value

Location on statement of
operations

Value

Forward currency

Currency

Net realized loss on forward currency contracts

(981

)

Net unrealized appreciation on forward currency contracts

394

New World Fund

Net realized gain

Net unrealized depreciation

Contracts

Risk type

Location on statement of
operations

Value

Location on statement of
operations

Value

Forward currency

Currency

Net realized gain on forward currency contracts

303

Net unrealized depreciation on forward currency contracts

(303

)

Global Growth and Income Fund

Assets

Liabilities

Contracts

Risk type

Location on statement of
assets and liabilities

Value

Location on statement of
assets and liabilities

Value

Forward currency

Currency

Unrealized appreciation on open forward currency contracts

—

Unrealized depreciation on open forward currency contracts

137

Net realized gain

Net unrealized depreciation

Contracts

Risk type

Location on statement of
operations

Value

Location on statement of
operations

Value

Forward currency

Currency

Net realized gain on forward currency contracts

579

Net unrealized depreciation on forward currency contracts

(488

)

International Growth and Income Fund

Assets

Liabilities

Contracts

Risk type

Location on statement of
assets and liabilities

Value

Location on statement of
assets and liabilities

Value

Forward currency

Currency

Unrealized appreciation on open forward currency contracts

—

Unrealized depreciation on open forward currency contracts

158	American Funds Insurance Series

		Net realized loss				Net unrealized depreciation
Contracts	Risk type	Location on statement of operations	Value			Location on statement of operations	Value
Forward currency	Currency	Net realized loss on forward currency contracts	$	(14	)	Net unrealized depreciation on forward currency contracts	$	(12	)

Capital Income Builder

		Assets				Liabilities
Contracts	Risk type	Location on statement of assets and liabilities	Value			Location on statement of assets and liabilities	Value
Futures	Interest	Unrealized appreciation¹	$	37		Unrealized depreciation¹	$	368
Swap	Interest	Unrealized appreciation¹		1,109		Unrealized depreciation¹		280
			$	1,146			$	648

		Net realized (loss) gain				Net unrealized (depreciation) appreciation
Contracts	Risk type	Location on statement of operations	Value			Location on statement of operations	Value
Futures	Interest	Net realized loss on futures contracts	$	(501	)	Net unrealized depreciation on futures contracts	$	(760	)
Swap	Interest	Net realized gain on swap contracts		985		Net unrealized appreciation on swap contracts		829
			$	484			$	69

Asset Allocation Fund

		Assets				Liabilities
Contracts	Risk type	Location on statement of assets and liabilities	Value			Location on statement of assets and liabilities	Value
Futures	Interest	Unrealized appreciation¹	$	1,710		Unrealized depreciation¹	$	4,672
Swap	Interest	Unrealized appreciation¹		1,035		Unrealized depreciation¹		4,847
			$	2,745			$	9,519

		Net realized gain (loss)				Net unrealized depreciation
Contracts	Risk type	Location on statement of operations	Value			Location on statement of operations	Value
Futures	Interest	Net realized gain on futures contracts	$	22,485		Net unrealized depreciation on futures contracts	$	(8,123	)
Swap	Interest	Net realized loss on swap contracts		(18,948	)	Net unrealized depreciation on swap contracts		(255	)
			$	3,537			$	(8,378	)

See end of tables for footnotes.

American Funds Insurance Series

159

Global Balanced Fund
		Assets				Liabilities
Contracts	Risk type	Location on statement of assets and liabilities	Value			Location on statement of assets and liabilities	Value
Futures	Interest	Unrealized appreciation¹	$	—		Unrealized depreciation¹	$	16
Forward currency	Currency	Unrealized appreciation on open forward currency contracts		173		Unrealized depreciation on open forward currency contracts		272
Swap	Interest	Unrealized appreciation¹		12		Unrealized depreciation¹		14
			$	185			$	302

		Net realized gain (loss)				Net unrealized depreciation
Contracts	Risk type	Location on statement of operations	Value			Location on statement of operations	Value
Futures	Interest	Net realized gain on futures contracts	$	557		Net unrealized depreciation on futures contracts	$	(196	)
Forward currency	Currency	Net realized loss on forward currency contracts		(440	)	Net unrealized depreciation on forward currency contracts		(181	)
Swap	Interest	Net realized gain on swap contracts		31		Net unrealized depreciation on swap contracts		(7	)
			$	148			$	(384	)

Bond Fund

		Assets				Liabilities
Contracts	Risk type	Location on statement of assets and liabilities	Value			Location on statement of assets and liabilities	Value
Futures	Interest	Unrealized appreciation¹	$	8,373		Unrealized depreciation¹	$	12,452
Forward currency	Currency	Unrealized appreciation on open forward currency contracts		2,743		Unrealized depreciation on open forward currency contracts		3,934
Swap	Interest	Unrealized appreciation¹		5,879		Unrealized depreciation¹		11,985
			$	16,995			$	28,371

		Net realized gain (loss)				Net unrealized (depreciation) appreciation
Contracts	Risk type	Location on statement of operations	Value			Location on statement of operations	Value
Futures	Interest	Net realized gain on futures contracts	$	72,397		Net unrealized depreciation on futures contracts	$	(23,687	)
Forward currency	Currency	Net realized gain on forward currency contracts		58		Net unrealized appreciation on forward currency contracts		8,081
Swap	Interest	Net realized loss on swap contracts		(24,940	)	Net unrealized depreciation on swap contracts		(6,333	)
Swap	Credit	Net realized loss on swap contracts		(342	)	Net unrealized appreciation on swap contracts		—
			$	47,173			$	(21,939	)

160	American Funds Insurance Series

Global Bond Fund

		Assets				Liabilities
Contracts	Risk type	Location on statement of assets and liabilities	Value			Location on statement of assets and liabilities	Value
Futures	Interest	Unrealized appreciation¹	$	234		Unrealized depreciation¹	$	1,039
Forward currency	Currency	Unrealized appreciation on open forward currency contracts		3,976		Unrealized depreciation on open forward currency contracts		6,186
Forward currency	Currency	Receivables for closed forward currency contracts		53		Payables for closed forward currency contracts		66
Swap	Interest	Unrealized appreciation¹		165		Unrealized depreciation¹		704
Swap	Credit	Unrealized appreciation¹		731		Unrealized depreciation¹		—
			$	5,159			$	7,995

		Net realized gain (loss)				Net unrealized (depreciation) appreciation
Contracts	Risk type	Location on statement of operations	Value			Location on statement of operations	Value
Futures	Interest	Net realized gain on futures contracts	$	13,348		Net unrealized depreciation on futures contracts	$	(5,076	)
Forward currency	Currency	Net realized loss on forward currency contracts		(2,623	)	Net unrealized depreciation on forward currency contracts		(9,128	)
Swap	Interest	Net realized gain on swap contracts		1,160		Net unrealized depreciation on swap contracts		(590	)
Swap	Credit	Net realized gain on swap contracts		365		Net unrealized appreciation on swap contracts		731
			$	12,250			$	(14,063	)

High-Income Bond Fund

		Assets				Liabilities
Contracts	Risk type	Location on statement of assets and liabilities	Value			Location on statement of assets and liabilities	Value
Futures	Interest	Unrealized appreciation¹	$	192		Unrealized depreciation¹	$	33
Swap	Credit	Unrealized appreciation¹		—		Unrealized depreciation¹		1,578
			$	192			$	1,611

		Net realized loss				Net unrealized appreciation (depreciation)
Contracts	Risk type	Location on statement of operations	Value			Location on statement of operations	Value
Futures	Interest	Net realized loss on futures contracts	$	(236	)	Net unrealized appreciation on futures contracts	$	159
Swap	Interest	Net realized loss on swap contracts		(268	)	Net unrealized appreciation on swap contracts		224
Swap	Credit	Net realized loss on swap contracts		(718	)	Net unrealized depreciation on swap contracts		(3,122	)
			$	(1,222	)		$	(2,739	)

See end of tables for footnotes.

American Funds Insurance Series

161

Mortgage Fund

Assets

Liabilities

Contracts

Risk type

Location on statement of
assets and liabilities

Value

Location on statement of
assets and liabilities

Value

Futures

Interest

Unrealized appreciation¹

—

Unrealized depreciation¹

746

Swap

Interest

Unrealized appreciation¹

1,618

Unrealized depreciation¹

4,450

1,618

5,196

Net realized gain

Net unrealized depreciation

Contracts

Risk type

Location on statement of
operations

Value

Location on statement of
operations

Value

Futures

Interest

Net realized gain on futures contracts

6,233

Net unrealized depreciation on futures contracts

(2,645

)

Swap

Interest

Net realized gain on swap contracts

1,047

Net unrealized depreciation on swap contracts

(4,026

)

7,280

(6,671

)

U.S. Government/AAA-Rated Securities Fund

Assets

Liabilities

Contracts

Risk type

Location on statement of
assets and liabilities

Value

Location on statement of
assets and liabilities

Value

Futures

Interest

Unrealized appreciation¹

687

Unrealized depreciation¹

8,635

Swap

Interest

Unrealized appreciation¹

25,927

Unrealized depreciation¹

46,229

26,614

54,864

Net realized gain (loss)

Net unrealized depreciation

Contracts

Risk type

Location on statement of
operations

Value

Location on statement of
operations

Value

Futures

Interest

Net realized gain on futures contracts

85,989

Net unrealized depreciation on futures contracts

(35,398

)

Swap

Interest

Net realized loss on swap contracts

(7,749

)

Net unrealized depreciation on swap contracts

(39,656

)

78,240

(75,054

)

Managed Risk Growth Fund

Assets

Liabilities

Contracts

Risk type

Location on statement of
assets and liabilities

Value

Location on statement of
assets and liabilities

Value

Futures

Interest

Unrealized appreciation¹

—

Unrealized depreciation¹

162	American Funds Insurance Series

		Net realized (loss) gain				Net unrealized appreciation (depreciation)
Contracts	Risk type	Location on statement of operations	Value			Location on statement of operations	Value
Futures	Currency	Net realized loss on futures contracts	$	(111	)	Net unrealized appreciation on futures contracts	$	45
Futures	Equity	Net realized loss on futures contracts		(7,821	)	Net unrealized depreciation on futures contracts		(4,022	)
Futures	Interest	Net realized gain on futures contracts		2,121		Net unrealized depreciation on futures contracts		(1,975	)
			$	(5,811	)		$	(5,952	)

Managed Risk International Fund

		Assets				Liabilities
Contracts	Risk type	Location on statement of assets and liabilities	Value			Location on statement of assets and liabilities	Value
Futures	Interest	Unrealized appreciation¹	$	—		Unrealized depreciation¹	$	30

		Net realized (loss) gain				Net unrealized appreciation (depreciation)
Contracts	Risk type	Location on statement of operations	Value			Location on statement of operations	Value
Futures	Currency	Net realized loss on futures contracts	$	(228	)	Net unrealized appreciation on futures contracts	$	278
Futures	Equity	Net realized loss on futures contracts		(1,772	)	Net unrealized depreciation on futures contracts		(882	)
Futures	Interest	Net realized gain on futures contracts		754		Net unrealized depreciation on futures contracts		(645	)
			$	(1,246	)		$	(1,249	)

Managed Risk Blue Chip Income and Growth Fund

		Assets				Liabilities
Contracts	Risk type	Location on statement of assets and liabilities	Value			Location on statement of assets and liabilities	Value
Futures	Interest	Unrealized appreciation¹	$	—		Unrealized depreciation¹	$	52

		Net realized (loss) gain				Net unrealized appreciation (depreciation)
Contracts	Risk type	Location on statement of operations	Value			Location on statement of operations	Value
Futures	Currency	Net realized loss on futures contracts	$	(51	)	Net unrealized appreciation on futures contracts	$	30
Futures	Equity	Net realized loss on futures contracts		(7,602	)	Net unrealized depreciation on futures contracts		(3,946	)
Futures	Interest	Net realized gain on futures contracts		2,110		Net unrealized depreciation on futures contracts		(1,917	)
			$	(5,543	)		$	(5,833	)

See end of tables for footnotes.

American Funds Insurance Series

163

Managed Risk Growth-Income Fund

		Assets				Liabilities
Contracts	Risk type	Location on statement of assets and liabilities	Value			Location on statement of assets and liabilities	Value
Options	Equity	Investment securities from unaffiliated issuers²	$	4,322		Investment securities from unaffiliated issuers²	$	—
Futures	Equity	Unrealized appreciation¹		1,045		Unrealized depreciation¹		—
Futures	Interest	Unrealized appreciation¹		—		Unrealized depreciation¹		375
			$	5,367			$	375

		Net realized (loss) gain				Net unrealized (depreciation) appreciation
Contracts	Risk type	Location on statement of operations	Value			Location on statement of operations	Value
Options purchased	Equity	Net realized loss on options purchased contracts³	$	(21,805	)	Net unrealized depreciation on options purchased contracts⁴	$	(11,132	)
Futures	Currency	Net realized loss on futures contracts		(698	)	Net unrealized appreciation on futures contracts		497
Futures	Equity	Net realized loss on futures contracts		(15,325	)	Net unrealized depreciation on futures contracts		(2,840	)
Futures	Interest	Net realized gain on futures contracts		8,388		Net unrealized depreciation on futures contracts		(7,294	)
			$	(29,440	)		$	(20,769	)

Managed Risk Asset Allocation Fund

		Assets				Liabilities
Contracts	Risk type	Location on statement of assets and liabilities	Value			Location on statement of assets and liabilities	Value
Futures	Interest	Unrealized appreciation¹	$	—		Unrealized depreciation¹	$	525

		Net realized (loss) gain				Net unrealized appreciation (depreciation)
Contracts	Risk type	Location on statement of operations	Value			Location on statement of operations	Value
Futures	Currency	Net realized loss on futures contracts	$	(252	)	Net unrealized appreciation on futures contracts	$	182
Futures	Equity	Net realized loss on futures contracts		(27,273	)	Net unrealized depreciation on futures contracts		(17,157	)
Futures	Interest	Net realized gain on futures contracts		9,662		Net unrealized depreciation on futures contracts		(8,873	)
			$	(17,863	)		$	(25,848	)

¹	Includes cumulative appreciation/depreciation on futures contracts, interest rate swaps and/or credit default swaps as reported in the applicable table following each fund’s investment portfolio. Only current day’s variation margin is reported within the statements of assets and liabilities.
²	Includes options purchased as reported in the fund’s investment portfolio.
³	Options purchased are included in net realized gain (loss) on unaffiliated investments.
⁴	Options purchased are included in net unrealized appreciation (depreciation) on unaffiliated investments.

164	American Funds Insurance Series

Collateral — Some funds participate in a collateral program that calls for the funds to either receive or pledge highly liquid assets, such as cash or U.S. government securities, as collateral due to securities lending and/or their use of futures contracts, forward currency contracts, interest rate swaps, credit default swaps and/or future delivery contracts. For securities lending, each participating fund receives collateral in exchange for lending investment securities. The purpose of the collateral is to cover potential losses that could occur in the event that the borrower cannot meet its contractual obligation. The lending agent may reinvest collateral from securities lending transactions according to agreed parameters. For futures contracts, interest rate swaps and credit default swaps, the program calls for each participating fund to pledge collateral for initial and variation margin by contract. For forward currency contracts, the program calls for each participating fund to either receive or pledge collateral based on the net gain or loss on unsettled forward currency contracts by counterparty. For future delivery contracts, the program calls for each participating fund to either receive or pledge collateral based on the net gain or loss on unsettled contracts by certain counterparties. The purpose of the collateral is to cover potential losses that could occur in the event that either party cannot meet its contractual obligation. Non-cash collateral pledged by each participating fund, if any, is disclosed in each fund’s investment portfolio, and cash collateral pledged by each participating fund, if any, is held in a segregated account with the fund’s custodian, which is reflected as pledged cash in each fund’s statement of assets and liabilities.

Rights of offset — Funds that hold forward currency contracts have enforceable master netting agreements with certain counterparties, where amounts payable by each party to the other in the same currency (with the same settlement date and with the same counterparty) are settled net of each party’s payment obligation. If an early termination date occurs under these agreements following an event of default or termination event, all obligations of each party to its counterparty are settled net through a single payment in a single currency (“close-out netting”). For financial reporting purposes, the funds do not offset financial assets and financial liabilities that are subject to these master netting arrangements in the statements of assets and liabilities.

The following tables present each fund’s forward currency contracts by counterparty that are subject to master netting agreements but that are not offset in the funds’ statements of assets and liabilities. The net amount column shows the impact of offsetting on the funds’ statement of assets and liabilities as of December 31, 2019, if close-out netting was exercised (dollars in thousands):

International Fund

Gross amounts not offset in the

Gross amounts

statement of assets and liabilities and

recognized in the

subject to a master netting agreement

statement of assets

Available

Non-cash

Cash

Net

Counterparty

and liabilities

to offset

collateral*

amount

Liabilities:

Barclays Bank PLC

131

—

131

Global Growth and Income Fund

Gross amounts not offset in the

Gross amounts

statement of assets and liabilities and

recognized in the

subject to a master netting agreement

statement of assets

Available

Non-cash

Cash

Net

Counterparty

and liabilities

to offset

collateral*

amount

Liabilities:

Citibank

137

—

137

International Growth and Income Fund

Gross amounts not offset in the

Gross amounts

statement of assets and liabilities and

recognized in the

subject to a master netting agreement

statement of assets

Available

Non-cash

Cash

Net

Counterparty

and liabilities

to offset

collateral*

amount

Liabilities:

Bank of America

—

See end of tables for footnote.

American Funds Insurance Series

165

Global Balanced Fund

			Gross amounts not offset in the
	Gross amounts		statement of assets and liabilities and
	recognized in the		subject to a master netting agreement
	statement of assets		Available			Non-cash			Cash			Net
Counterparty	and liabilities		to offset			collateral*			collateral*			amount
Assets:
Bank of America	$	16	$	(16	)	$	—		$	—		$	—
Bank of New York Mellon		4		(1	)		—			—			3
Citibank		23		(23	)		—			—			—
Goldman Sachs		2		(2	)		—			—			—
HSBC Bank		28		(28	)		—			—			—
JPMorgan Chase		1		(1	)		—			—			—
Morgan Stanley		64		(3	)		—			—			61
Standard Chartered Bank		34		(34	)		—			—			—
UBS AG		1		(1	)		—			—			—
Total	$	173	$	(109	)	$	—		$	—		$	64
Liabilities:
Bank of America	$	53	$	(16	)	$	—		$	—		$	37
Bank of New York Mellon		1		(1	)		—			—			—
Citibank		55		(23	)		—			—			32
Goldman Sachs		29		(2	)		—			—			27
HSBC Bank		47		(28	)		—			—			19
JPMorgan Chase		35		(1	)		—			—			34
Morgan Stanley		3		(3	)		—			—			—
Standard Chartered Bank		48		(34	)		—			—			14
UBS AG		1		(1	)		—			—			—
Total	$	272	$	(109	)	$	—		$	—		$	163

Bond Fund

			Gross amounts not offset in the
	Gross amounts		statement of assets and liabilities and
	recognized in the		subject to a master netting agreement
	statement of assets		Available			Non-cash			Cash			Net
Counterparty	and liabilities		to offset			collateral*			collateral*			amount
Assets:
Bank of New York Mellon	$	35	$	—		$	—		$	—		$	35
Citibank		1,789		—			—			(1,789	)		—
Goldman Sachs		41		—			—			—			41
JPMorgan Chase		878		—			(825	)		—			53
Total	$	2,743	$	—		$	(825	)	$	(1,789	)	$	129
Liabilities:
Barclays Bank PLC	$	1,226	$	—		$	(1,226	)	$	—		$	—
HSBC Bank		1,355		—			(1,186	)		—			169
Morgan Stanley		1,353		—			(1,156	)		—			197
Total	$	3,934	$	—		$	(3,568	)	$	—		$	366

166	American Funds Insurance Series

Global Bond Fund

			Gross amounts not offset in the
	Gross amounts		statement of assets and liabilities and
	recognized in the		subject to a master netting agreement
	statement of assets		Available			Non-cash			Cash			Net
Counterparty	and liabilities		to offset			collateral*			collateral*			amount
Assets:
Bank of America	$	273	$	(273	)	$	—		$	—		$	—
Bank of New York Mellon		56		—			—			—			56
Barclays Bank PLC		181		—			—			—			181
Citibank		613		(613	)		—			—			—
Goldman Sachs		745		(587	)		—			—			158
HSBC Bank		489		(489	)		—			—			—
JPMorgan Chase		104		(104	)		—			—			—
Morgan Stanley		959		(244	)		—			(715	)		—
Standard Chartered Bank		559		(559	)		—			—			—
UBS AG		50		(50	)		—			—			—
Total	$	4,029	$	(2,919	)	$	—		$	(715	)	$	395
Liabilities:
Bank of America	$	1,002	$	(273	)	$	(729	)	$	—		$	—
Citibank		2,019		(613	)		(1,406	)		—			—
Goldman Sachs		587		(587	)		—			—			—
HSBC Bank		931		(489	)		(442	)		—			—
JPMorgan Chase		778		(104	)		(548	)		—			126
Morgan Stanley		244		(244	)		—			—			—
Standard Chartered Bank		590		(559	)		(31	)		—			—
UBS AG		101		(50	)		—			—			51
Total	$	6,252	$	(2,919	)	$	(3,156	)	$	—		$	177

*	Collateral is shown on a settlement basis.

6. Taxation and distributions

Federal income taxation — Each fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The funds are not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.

As of and during the period ended December 31, 2019, none of the funds had a liability for any unrecognized tax benefits. Each fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in their respective statements of operations. During the period, none of the funds incurred any significant interest or penalties.

Each fund’s tax returns are not subject to examination by federal, state and, if applicable, non-U.S. tax authorities after the expiration of each jurisdiction’s statute of limitations, which is generally three years after the date of filing but can be extended in certain jurisdictions.

Non-U.S. taxation — Dividend and interest income, if any, are recorded net of non-U.S. taxes paid. The funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. As a result of rulings from European courts, the funds filed for additional reclaims related to prior years. These reclaims are recorded when the amount is known and there are no significant uncertainties on collectability. Gains realized by the funds on the sale of securities in certain countries, if any, may be subject to non-U.S. taxes. If applicable, the funds record an estimated deferred tax liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.

American Funds Insurance Series

167

Distributions — Distributions paid to shareholders are based on each fund’s net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to different treatment for items such as currency gains and losses; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; unrealized appreciation of certain investments in securities outside the U.S.; deferred expenses; cost of investments sold; paydowns on fixed-income securities; net capital losses; non-U.S. taxes on capital gains; amortization of premiums and discounts and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the funds for financial reporting purposes.

Additional tax basis disclosures for each fund as of December 31, 2019, were as follows (dollars in thousands):

				Global												Blue Chip
	Global			Small									New			Income and
	Growth			Capitalization			Growth			International			World			Growth
	Fund			Fund			Fund			Fund			Fund			Fund
Undistributed ordinary income	$	13,148		$	11,186		$	76,916		$	19,253		$	25,462		$	37,136
Undistributed long-term capital gains		194,055			273,289			738,170			—			16,027			104,256
Capital loss carryforward*		—			—			—			(149,822	)		—			—
Gross unrealized appreciation on investments		2,976,734			1,338,057			12,680,487			2,723,168			1,025,046			2,435,492
Gross unrealized depreciation on investments		(115,480	)		(165,363	)		(176,640	)		(296,533	)		(51,959	)		(319,251	)
Net unrealized appreciation on investments		2,861,254			1,172,694			12,503,847			2,426,635			973,087			2,116,241
Cost of investments		3,973,424			3,535,026			16,026,368			7,663,533			2,790,816			7,160,691
Reclassification from (to) total distributable earnings/accumulated loss to (from) capital paid in on shares of beneficial interest		1			(1	)		—			1			1			—

	Global						International
	Growth			Growth-			Growth			Capital			Asset			Global
	and Income			Income			and Income			Income			Allocation			Balanced
	Fund			Fund			Fund			Builder			Fund			Fund
Undistributed ordinary income	$	6,550		$	238,333		$	3,236		$	1,926		$	118,751		$	17
Undistributed long-term capital gains		51,450			820,299			—			—			123,690			1,437
Capital loss carryforward*		—			—			(35,828	)		(19,754	)		—			—
Gross unrealized appreciation on investments		657,067			11,402,210			307,883			119,069			7,134,453			85,707
Gross unrealized depreciation on investments		(21,291	)		(751,877	)		(44,941	)		(23,709	)		(431,268	)		(4,511	)
Net unrealized appreciation on investments		635,776			10,650,333			262,942			95,360			6,703,185			81,196
Cost of investments		1,502,381			25,381,374			1,239,616			895,754			20,858,922			354,608
Reclassification from (to) total distributable earnings/accumulated loss to (from) capital paid in on shares of beneficial interest		—			(1	)		—			—			—			12

168	American Funds Insurance Series

																U.S.
							High-									Government/
				Global			Income						Ultra-Short			AAA-Rated
	Bond			Bond			Bond			Mortgage			Bond			Securities
	Fund			Fund			Fund			Fund			Fund			Fund
Undistributed ordinary income	$	101,879		$	31,468		$	12,900		$	1,209		$	737		$	33,112
Undistributed long-term capital gains		42,007			8,412			—			390			—			16,400
Capital loss carryforward*		—			—			(190,113	)		—			(1	)		—
Capital loss carryforward utilized		159,206			3,784			—			6,175			—			52,033
Gross unrealized appreciation on investments		359,213			92,798			49,688			6,927			12			78,457
Gross unrealized depreciation on investments		(49,858	)		(37,745	)		(61,045	)		(5,296	)		(5	)		(60,713	)
Net unrealized appreciation (depreciation) on investments		309,355			55,053			(11,357	)		1,631			7			17,744
Cost of investments		10,596,670			2,058,371			1,258,516			274,404			284,222			2,991,005
Reclassification from (to) total distributable earnings/accumulated loss to (from) capital paid in on shares of beneficial interest		1			—			—			(2	)		—			1

							Managed			Managed			Managed
	Managed			Managed			Risk Blue			Risk			Risk
	Risk			Risk			Chip Income			Growth-			Asset
	Growth			International			and Growth			Income			Allocation
	Fund			Fund			Fund			Fund			Fund
Undistributed ordinary income	$	3,505		$	1,934		$	5,703		$	33,307		$	40,690
Undistributed long-term capital gains		21,766			1,312			10,865			118,369			105,973
Gross unrealized appreciation on investments		46,058			14,843			4,513			192,587			244,160
Gross unrealized depreciation on investments		(7,615	)		(6,664	)		(2,398	)		(14,687	)		(8,220	)
Net unrealized appreciation on investments		38,443			8,179			2,115			177,900			235,940
Cost of investments		401,443			157,659			363,502			2,092,631			2,597,655

*	Capital loss carryforwards will be used to offset any capital gains realized by the funds in future years. The funds will not make distributions from capital gains while a capital loss carryforward remains.

Distributions paid by each fund were characterized for tax purposes as follows (dollars in thousands):

Global Growth Fund

	Year ended December 31, 2019						Year ended December 31, 2018
					Total						Total
	Ordinary		Long-term		distributions		Ordinary		Long-term		distributions
Share class	income		capital gains		paid		income		capital gains		paid
Class 1	$	31,022	$	121,251	$	152,273	$	28,611	$	134,884	$	163,495
Class 1A		82		367		449		47		273		320
Class 2		40,119		204,481		244,600		41,238		251,323		292,561
Class 4		3,204		17,408		20,612		2,414		16,024		18,438
Total	$	74,427	$	343,507	$	417,934	$	72,310	$	402,504	$	474,814

See end of tables for footnote.

American Funds Insurance Series

169

Global Small Capitalization Fund

	Year ended December 31, 2019						Year ended December 31, 2018
					Total						Total
	Ordinary		Long-term		distributions		Ordinary		Long-term		distributions
Share class	income		capital gains		paid		income		capital gains		paid
Class 1	$	28,009	$	97,912	$	125,921	$	21,329	$	55,968	$	77,297
Class 1A		6		23		29		4		12		16
Class 2		28,406		119,280		147,686		26,294		86,037		112,331
Class 4		1,932		9,184		11,116		1,456		5,035		6,491
Total	$	58,353	$	226,399	$	284,752	$	49,083	$	147,052	$	196,135

Growth Fund

	Year ended December 31, 2019						Year ended December 31, 2018
					Total						Total
	Ordinary		Long-term		distributions		Ordinary		Long-term		distributions
Share class	income		capital gains		paid		income		capital gains		paid
Class 1	$	150,838	$	964,757	$	1,115,595	$	88,940	$	792,865	$	881,805
Class 1A		193		1,290		1,483		76		634		710
Class 2		192,058		1,500,212		1,692,270		117,331		1,515,757		1,633,088
Class 3		2,713		20,442		23,155		1,723		20,248		21,971
Class 4		14,770		130,929		145,699		6,414		104,527		110,941
Total	$	360,572	$	2,617,630	$	2,978,202	$	214,484	$	2,434,031	$	2,648,515

International Fund

	Year ended December 31, 2019						Year ended December 31, 2018
					Total						Total
	Ordinary		Long-term		distributions		Ordinary		Long-term		distributions
Share class	income		capital gains		paid		income		capital gains		paid
Class 1	$	85,943	$	130,060	$	216,003	$	174,418	$	165,915	$	340,333
Class 1A		95		141		236		156		140		296
Class 2		59,246		104,778		164,024		136,977		146,986		283,963
Class 3		354		637		991		887		970		1,857
Class 4		4,496		8,870		13,366		9,465		10,556		20,021
Total	$	150,134	$	244,486	$	394,620	$	321,903	$	324,567	$	646,470

New World Fund

	Year ended December 31, 2019						Year ended December 31, 2018
					Total						Total
	Ordinary		Long-term		distributions		Ordinary		Long-term		distributions
Share class	income		capital gains		paid		income		capital gains		paid
Class 1	$	23,315	$	71,500	$	94,815	$	21,450	$	54,023	$	75,473
Class 1A		39		132		171		24		50		74
Class 2		8,693		34,958		43,651		8,194		26,593		34,787
Class 4		4,452		21,103		25,555		3,419		12,659		16,078
Total	$	36,499	$	127,693	$	164,192	$	33,087	$	93,325	$	126,412

170	American Funds Insurance Series

Blue Chip Income and Growth Fund

	Year ended December 31, 2019						Year ended December 31, 2018
					Total						Total
	Ordinary		Long-term		distributions		Ordinary		Long-term		distributions
Share class	income		capital gains		paid		income		capital gains		paid
Class 1	$	118,657	$	410,713	$	529,370	$	232,769	$	299,947	$	532,716
Class 1A		163		435		598		120		135		255
Class 2		60,118		238,793		298,911		134,358		186,318		320,676
Class 4		10,646		38,700		49,346		13,348		16,620		29,968
Total	$	189,584	$	688,641	$	878,225	$	380,595	$	503,020	$	883,615

Global Growth and Income Fund

	Year ended December 31, 2019						Year ended December 31, 2018
					Total						Total
	Ordinary		Long-term		distributions		Ordinary		Long-term		distributions
Share class	income		capital gains		paid		income		capital gains		paid
Class 1	$	12,475	$	27,971	$	40,446	$	16,289	$	31,541	$	47,830
Class 1A		33		66		99		28		53		81
Class 2		24,591		66,794		91,385		40,436		90,173		130,609
Class 4		2,298		5,970		8,268		2,682		5,789		8,471
Total	$	39,397	$	100,801	$	140,198	$	59,435	$	127,556	$	186,991

Growth-Income Fund

	Year ended December 31, 2019						Year ended December 31, 2018
					Total						Total
	Ordinary		Long-term		distributions		Ordinary		Long-term		distributions
Share class	income		capital gains		paid		income		capital gains		paid
Class 1	$	455,391	$	1,825,184	$	2,280,575	$	341,172	$	1,049,641	$	1,390,813
Class 1A		206		825		1,031		124		344		468
Class 2		272,097		1,260,360		1,532,457		241,470		886,942		1,128,412
Class 3		3,204		14,500		17,704		2,907		10,337		13,244
Class 4		21,474		103,934		125,408		15,471		58,501		73,972
Total	$	752,372	$	3,204,803	$	3,957,175	$	601,144	$	2,005,765	$	2,606,909

International Growth and Income Fund

	Year ended December 31, 2019						Year ended December 31, 2018
					Total						Total
	Ordinary		Long-term		distributions		Ordinary		Long-term		distributions
Share class	income		capital gains		paid		income		capital gains		paid
Class 1	$	41,626	$	—	$	41,626	$	28,476	$	—	$	28,476
Class 1A		84		—		84		44		—		44
Class 2		8,726		—		8,726		5,865		—		5,865
Class 4		3,112		—		3,112		1,597		—		1,597
Total	$	53,548	$	—	$	53,548	$	35,982	$	—	$	35,982

See end of tables for footnote.

American Funds Insurance Series

171

Capital Income Builder

	Year ended December 31, 2019						Year ended December 31, 2018
					Total						Total
	Ordinary		Long-term		distributions		Ordinary		Long-term		distributions
Share class	income		capital gains		paid		income		capital gains		paid
Class 1	$	13,476	$	—	$	13,476	$	9,421	$	617	$	10,038
Class 1A		126		—		126		66		3		69
Class 2		137		—		137		90		6		96
Class 4		10,875		—		10,875		9,550		762		10,312
Total	$	24,614	$	—	$	24,614	$	19,127	$	1,388	$	20,515

Asset Allocation Fund

	Year ended December 31, 2019						Year ended December 31, 2018
					Total						Total
	Ordinary		Long-term		distributions		Ordinary		Long-term		distributions
Share class	income		capital gains		paid		income		capital gains		paid
Class 1	$	356,589	$	816,841	$	1,173,430	$	386,982	$	666,856	$	1,053,838
Class 1A		189		416		605		147		263		410
Class 2		94,178		253,101		347,279		103,332		210,133		313,465
Class 3		608		1,581		2,189		686		1,413		2,099
Class 4		71,682		206,152		277,834		69,096		148,867		217,963
Total	$	523,246	$	1,278,091	$	1,801,337	$	560,243	$	1,027,532	$	1,587,775

Global Balanced Fund

	Year ended December 31, 2019						Year ended December 31, 2018
					Total						Total
	Ordinary		Long-term		distributions		Ordinary		Long-term		distributions
Share class	income		capital gains		paid		income		capital gains		paid
Class 1	$	1,912	$	3,479	$	5,391	$	1,808	$	1,346	$	3,154
Class 1A		28		61		89		30		25		55
Class 2		2,521		5,487		8,008		2,555		2,290		4,845
Class 4		954		2,492		3,446		804		842		1,646
Total	$	5,415	$	11,519	$	16,934	$	5,197	$	4,503	$	9,700

Bond Fund

	Year ended December 31, 2019						Year ended December 31, 2018
					Total						Total
	Ordinary		Long-term		distributions		Ordinary		Long-term		distributions
Share class	income		capital gains		paid		income		capital gains		paid
Class 1	$	177,855	$	—	$	177,855	$	156,337	$	8,915	$	165,252
Class 1A		165		—		165		76		4		80
Class 2		90,796		—		90,796		88,266		5,217		93,483
Class 4		11,384		—		11,384		8,153		453		8,606
Total	$	280,200	$	—	$	280,200	$	252,832	$	14,589	$	267,421

Global Bond Fund

	Year ended December 31, 2019						Year ended December 31, 2018
					Total						Total
	Ordinary		Long-term		distributions		Ordinary		Long-term		distributions
Share class	income		capital gains		paid		income		capital gains		paid
Class 1	$	19,173	$	—	$	19,173	$	25,210	$	3,256	$	28,466
Class 1A		7		—		7		9		1		10
Class 2		15,927		—		15,927		23,308		3,412		26,720
Class 4		649		—		649		816		118		934
Total	$	35,756	$	—	$	35,756	$	49,343	$	6,787	$	56,130

172	American Funds Insurance Series

High-Income Bond Fund

	Year ended December 31, 2019						Year ended December 31, 2018
					Total						Total
	Ordinary		Long-term		distributions		Ordinary		Long-term		distributions
Share class	income		capital gains		paid		income		capital gains		paid
Class 1	$	33,304	$	—	$	33,304	$	34,114	$	—	$	34,114
Class 1A		45		—		45		40		—		40
Class 2		41,753		—		41,753		43,382		—		43,382
Class 3		611		—		611		664		—		664
Class 4		3,353		—		3,353		1,733		—		1,733
Total	$	79,066	$	—	$	79,066	$	79,933	$	—	$	79,933

Mortgage Fund

	Year ended December 31, 2019						Year ended December 31, 2018
					Total						Total
	Ordinary		Long-term		distributions		Ordinary		Long-term		distributions
Share class	income		capital gains		paid		income		capital gains		paid
Class 1	$	5,573	$	—	$	5,573	$	4,938	$	—	$	4,938
Class 1A		12		—		12		15		—		15
Class 2		1,355		—		1,355		1,128		—		1,128
Class 4		585		—		585		424		—		424
Total	$	7,525	$	—	$	7,525	$	6,505	$	—	$	6,505

Ultra-Short Bond Fund

	Year ended December 31, 2019								Year ended December 31, 2018
						Total							Total
	Ordinary			Long-term		distributions			Ordinary		Long-term		distributions
Share class	income			capital gains		paid			income		capital gains		paid
Class 1	$	604		$	—	$	604		$	561	$	—	$	561
Class 1A		—	*		—		—	*		—		—		—
Class 2		4,088			—		4,088			2,762		—		2,762
Class 3		59			—		59			41		—		41
Class 4		342			—		342			153		—		153
Total	$	5,093		$	—	$	5,093		$	3,517	$	—	$	3,517

U.S. Government/AAA-Rated Securities Fund

	Year ended December 31, 2019						Year ended December 31, 2018
					Total						Total
	Ordinary		Long-term		distributions		Ordinary		Long-term		distributions
Share class	income		capital gains		paid		income		capital gains		paid
Class 1	$	31,700	$	—	$	31,700	$	29,881	$	—	$	29,881
Class 1A		50		—		50		29		—		29
Class 2		26,790		—		26,790		24,431		—		24,431
Class 3		180		—		180		165		—		165
Class 4		2,241		—		2,241		1,313		—		1,313
Total	$	60,961	$	—	$	60,961	$	55,819	$	—	$	55,819

See end of tables for footnote.

American Funds Insurance Series

173

Managed Risk Growth Fund

	Year ended December 31, 2019						Year ended December 31, 2018
					Total						Total
	Ordinary		Long-term		distributions		Ordinary		Long-term		distributions
Share class	income		capital gains		paid		income		capital gains		paid
Class P1	$	61	$	256	$	317	$	14	$	135	$	149
Class P2		3,581		26,324		29,905		1,397		20,395		21,792
Total	$	3,642	$	26,580	$	30,222	$	1,411	$	20,530	$	21,941

Managed Risk International Fund

	Year ended December 31, 2019						Year ended December 31, 2018
					Total						Total
	Ordinary		Long-term		distributions		Ordinary		Long-term		distributions
Share class	income		capital gains		paid		income		capital gains		paid
Class P1	$	11	$	16	$	27	$	8	$	1	$	9
Class P2		2,974		4,795		7,769		2,681		738		3,419
Total	$	2,985	$	4,811	$	7,796	$	2,689	$	739	$	3,428

Managed Risk Blue Chip Income and Growth Fund

	Year ended December 31, 2019						Year ended December 31, 2018
					Total						Total
	Ordinary		Long-term		distributions		Ordinary		Long-term		distributions
Share class	income		capital gains		paid		income		capital gains		paid
Class P1	$	13	$	40	$	53	$	15	$	7	$	22
Class P2		5,566		17,796		23,362		11,391		12,112		23,503
Total	$	5,579	$	17,836	$	23,415	$	11,406	$	12,119	$	23,525

Managed Risk Growth-Income Fund

	Year ended December 31, 2019						Year ended December 31, 2018
					Total						Total
	Ordinary		Long-term		distributions		Ordinary		Long-term		distributions
Share class	income		capital gains		paid		income		capital gains		paid
Class P1	$	14,564	$	14,505	$	29,069	$	42	$	122	$	164
Class P2		1,352		2,019		3,371		2,374		9,814		12,188
Total	$	15,916	$	16,524	$	32,440	$	2,416	$	9,936	$	12,352

Managed Risk Asset Allocation Fund

	Year ended December 31, 2019						Year ended December 31, 2018
					Total						Total
	Ordinary		Long-term		distributions		Ordinary		Long-term		distributions
Share class	income		capital gains		paid		income		capital gains		paid
Class P1	$	5	$	65	$	70	$	31,787	$	66,960	$	98,747
Class P2		62,691		115,050		177,741		36,816		107,405		144,221
Total	$	62,696	$	115,115	$	177,811	$	68,603	$	174,365	$	242,968

*	Amount less than one thousand.

7. Fees and transactions

CRMC, the series’ investment adviser, is the parent company of American Funds Distributors^®, Inc. (“AFD”), the distributor of the series’ shares, and American Funds Service Company^® (“AFS”), the series’ transfer agent. CRMC, AFD and AFS are considered related parties to the series.

174	American Funds Insurance Series

Investment advisory services — The series has an investment advisory and service agreement with CRMC that provides for monthly fees accrued daily. These fees are based on annual rates that generally decrease as net asset levels increase. CRMC receives investment advisory fees from the underlying funds held by the managed risk funds. These fees are included in the net effective expense ratios that are provided as additional information in the financial highlights tables. Subadvisory fees for the managed risk funds are paid by CRMC to Milliman FRM. The managed risk funds are not responsible for paying any subadvisory fees.

Investment advisory services waivers — On March 4, 2019, the series board of trustees approved amended agreements effective May 1, 2019, decreasing the annual rate to 0.500% on daily net assets in excess of $1.5 billion for International Growth and Income Fund, and decreasing the annual rate to 0.410% on daily net assets in excess of $1 billion for Capital Income Builder. CRMC voluntarily reduced the investment advisory services fees to the approved rates in advance of the effective date. CRMC is also waiving a portion of its investment advisory services fees for each of the managed risk funds. Investment advisory services fees are presented in each fund’s statement of operations gross of the waivers from CRMC. For the year ended December 31, 2019, total investment advisory services fees waived by CRMC were $2,880,000.

The range of rates, net asset levels and the current annualized rates of average daily net assets for each fund before and after any investment advisory services waivers (if applicable), are as follows:

											For the			For the
							Net asset level				year ended			year ended
	Rates						(in billions)				December 31,			December 31,
	Beginning			Ending					In excess		2019,			2019,
Fund	with			with			Up to		of		before waiver			after waiver
Global Growth Fund		.690	%		.460	%	$	.6	$	5.0		.516	%		.516	%
Global Small Capitalization Fund		.800			.635			.6		5.0		.696			.696
Growth Fund		.500			.280			.6		34.0		.322			.322
International Fund		.690			.430			.5		21.0		.492			.492
New World Fund		.850			.580			.5		4.0		.701			.701
Blue Chip Income and Growth Fund		.500			.350			.6		10.5		.390			.390
Global Growth and Income Fund		.690			.480			.6		3.0		.595			.595
Growth-Income Fund		.500			.219			.6		34.0		.256			.256
International Growth and Income Fund		.690			.500			.5		1.5		.608			.608
Capital Income Builder		.500			.410			.6		1.0		.489			.486
Asset Allocation Fund		.500			.240			.6		21.0		.266			.266
Global Balanced Fund		.660			.510			.5		1.0		.660			.660
Bond Fund		.480			.320			.6		13.0		.364			.364
Global Bond Fund		.570			.450			1.0		3.0		.533			.533
High-Income Bond Fund		.500			.420			.6		2.0		.475			.475
Mortgage Fund		.420			.290			.6		3.0		.420			.420
Ultra-Short Bond Fund		.320			.270			1.0		2.0		.320			.320
U.S. Government/AAA-Rated Securities Fund		.420			.290			.6		3.0		.340			.340
Managed Risk Growth Fund		.150						all				.150			.100
Managed Risk International Fund		.150						all				.150			.100
Managed Risk Blue Chip Income and Growth Fund		.150						all				.150			.100
Managed Risk Growth-Income Fund		.150						all				.150			.100
Managed Risk Asset Allocation Fund		.150						all				.150			.100

Distribution services — The series has plans of distribution for all share classes except Class 1. Under the plans, the board of trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares. The plans provide for payments to pay service fees to firms that have entered into agreements with the series. These payments, based on an annualized percentage of average daily net assets, range from 0.18% to 0.50% as noted in the table below. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans.

Share class	Currently approved limits			Plan limits
Class 1A		0.00	%		0.25	%
Class 2		0.25			0.25
Class 3		0.18			0.18
Class 4		0.25			0.25
Class P1		0.00			0.25
Class P2		0.25			0.50

American Funds Insurance Series

175

Insurance administrative services — The series has an insurance administrative services plan for Class 1A, 4, P1 and P2 shares. Under the plan, these share classes pay 0.25% of each insurance company’s respective average daily net assets in each share class to compensate the insurance companies for services provided to their separate accounts and contractholders for which the shares of the fund are beneficially owned as underlying investments of such contractholders’ annuities. These services include, but are not limited to, maintenance, shareholder communications and transactional services. The insurance companies are not related parties to the series.

Transfer agent services — The series has a shareholder services agreement with AFS under which the funds compensate AFS for providing transfer agent services to all of the funds’ share classes. These services include recordkeeping, shareholder communications and transaction processing. In addition, the managed risk funds reimburse AFS for amounts paid to third parties for performing transfer agent services on behalf of fund shareholders.

Administrative services — The series has an administrative services agreement with CRMC under which each fund compensates CRMC for providing administrative services to all of the funds’ share classes except Class P1 and P2 shares. Administrative services are provided by CRMC and its affiliates to help assist third parties providing non-distribution services to fund shareholders. These services include providing in depth information on each fund and market developments that impact fund investments. Administrative services also include, but are not limited to, coordinating, monitoring and overseeing third parties that provide services to fund shareholders. The agreement provides each fund, other than the managed risk funds, the ability to charge an administrative services fee at the annual rate of 0.05% of daily net assets attributable to each share class. Prior to July 1, 2019, all share classes of each fund, other than the managed-risk funds, paid CRMC an administrative services fee at the annual rate of 0.01% of daily net assets. The series board of trustees authorized the funds, other than the managed risk funds, to pay CRMC effective July 1, 2019, an administrative services fee at the annual rate of 0.03% of the daily net assets of each share class for CRMC’s provision of administrative services. For the managed risk funds, CRMC receives administrative services fees at an annual rate of 0.03% of daily net assets from Class 1 shares of the underlying funds for administrative services provided to the series.

Accounting and administrative services — The managed risk funds have a subadministration agreement with BNY Mellon under which the fund compensates BNY Mellon for providing accounting and administrative services to each of the managed risk funds’ share classes. These services include, but are not limited to, fund accounting (including calculation of net asset value), financial reporting and tax services. BNY Mellon is not a related party to the managed risk funds.

Class-specific expenses under the agreements described above were as follows (dollars in thousands):

Global Growth Fund

			Insurance
	Distribution		administrative		Administrative
Share class	services		services		services
Class 1	Not applicable		Not applicable		$	458
Class 1A	$	—	$	17		2
Class 2		9,198	Not applicable			742
Class 4		793		793		66
Total class-specific expenses	$	9,991	$	810	$	1,268

Global Small Capitalization Fund

			Insurance
	Distribution		administrative		Administrative
Share class	services		services		services
Class 1	Not applicable		Not applicable		$	382
Class 1A	$	—	$	1		—	*
Class 2		5,652	Not applicable			454
Class 4		444		444		37
Total class-specific expenses	$	6,096	$	445	$	873

Growth Fund

			Insurance
	Distribution		administrative		Administrative
Share class	services		services		services
Class 1	Not applicable		Not applicable		$	1,999
Class 1A	$	—	$	35		3
Class 2		37,459	Not applicable			3,017
Class 3		369	Not applicable			41
Class 4		3,263		3,263		269
Total class-specific expenses	$	41,091	$	3,298	$	5,329

International Fund

			Insurance
	Distribution		administrative		Administrative
Share class	services		services		services
Class 1	Not applicable		Not applicable		$	1,031
Class 1A	$	—	$	15		1
Class 2		10,335	Not applicable			830
Class 3		45	Not applicable			5
Class 4		852		852		70
Total class-specific expenses	$	11,232	$	867	$	1,937

176	American Funds Insurance Series

New World Fund

			Insurance
	Distribution		administrative		Administrative
Share class	services		services		services
Class 1	Not applicable		Not applicable		$	386
Class 1A	$	—	$	9		1
Class 2		2,312	Not applicable			187
Class 4		1,396		1,396		115
Total class-specific expenses	$	3,708	$	1,405	$	689

Blue Chip Income and Growth Fund

			Insurance
	Distribution		administrative		Administrative
Share class	services		services		services
Class 1	Not applicable		Not applicable		$	1,058
Class 1A	$	—	$	16		1
Class 2		7,507	Not applicable			601
Class 4		1,239		1,239		105
Total class-specific expenses	$	8,746	$	1,255	$	1,765

Global Growth and Income Fund

			Insurance
	Distribution		administrative		Administrative
Share class	services		services		services
Class 1	Not applicable		Not applicable		$	115
Class 1A	$	—	$	4		1
Class 2		3,318	Not applicable			267
Class 4		300		300		25
Total class-specific expenses	$	3,618	$	304	$	408

Growth-Income Fund

			Insurance
	Distribution		administrative		Administrative
Share class	services		services		services
Class 1	Not applicable		Not applicable		$	3,919
Class 1A	$	—	$	22		2
Class 2		32,591	Not applicable			2,624
Class 3		273	Not applicable			30
Class 4		2,685		2,685		221
Total class-specific expenses	$	35,549	$	2,707	$	6,796

International Growth and Income Fund

				Insurance
		Distribution		administrative		Administrative
Share class		services		services		services
Class 1	Not applicable		Not applicable		$	217
Class 1A	$	—	$	5		—	*
Class 2		608	Not applicable			49
Class 4		213		213		18
Total class-specific expenses	$	821	$	218	$	284

Capital Income Builder

			Insurance
	Distribution		administrative		Administrative
Share class	services		services		services
Class 1	Not applicable		Not applicable		$	89
Class 1A	$	—	$	11		1
Class 2		12	Not applicable			1
Class 4		1,014		1,014		83
Total class-specific expenses	$	1,026	$	1,025	$	174

Asset Allocation Fund

			Insurance
	Distribution		administrative		Administrative
Share class	services		services		services
Class 1	Not applicable		Not applicable		$	3,332
Class 1A	$	—	$	22		2
Class 2		12,426	Not applicable			1,002
Class 3		57	Not applicable			6
Class 4		10,148		10,148		831
Total class-specific expenses	$	22,631	$	10,170	$	5,173

Global Balanced Fund

			Insurance
	Distribution		administrative		Administrative
Share class	services		services		services
Class 1	Not applicable		Not applicable		$	26
Class 1A	$	—	$	5		—	*
Class 2		495	Not applicable			40
Class 4		205		206		17
Total class-specific expenses	$	700	$	211	$	83

See end of tables for footnote.

American Funds Insurance Series

177

Bond Fund

			Insurance
	Distribution		administrative		Administrative
Share class	services		services		services
Class 1	Not applicable		Not applicable		$	1,277
Class 1A	$	—	$	12		1
Class 2		8,877	Not applicable			715
Class 4		1,073		1,072		90
Total class-specific expenses	$	9,950	$	1,084	$	2,083

Global Bond Fund

			Insurance
	Distribution		administrative		Administrative
Share class	services		services		services
Class 1	Not applicable		Not applicable		$	212
Class 1A	$	—	$	1		—	*
Class 2		2,549	Not applicable			204
Class 4		113		113		10
Total class-specific expenses	$	2,662	$	114	$	426

High-Income Bond Fund

			Insurance
	Distribution		administrative		Administrative
Share class	services		services		services
Class 1	Not applicable		Not applicable		$	104
Class 1A	$	—	$	2		—	*
Class 2		1,696	Not applicable			135
Class 3		18	Not applicable			2
Class 4		141		141		12
Total class-specific expenses	$	1,855	$	143	$	253

Mortgage Fund

			Insurance
	Distribution		administrative		Administrative
Share class	services		services		services
Class 1	Not applicable		Not applicable		$	42
Class 1A	$	—	$	1		—	*
Class 2		143	Not applicable			12
Class 4		59		59		5
Total class-specific expenses	$	202	$	60	$	59

Ultra-Short Bond Fund

			Insurance
	Distribution		administrative		Administrative
Share class	services		services		services
Class 1	Not applicable		Not applicable		$	6
Class 1A	$	—	$	—*		—	*
Class 2		583	Not applicable			47
Class 3		6	Not applicable			1
Class 4		51		51		4
Total class-specific expenses	$	640	$	51	$	58

U.S. Government/AAA-Rated Securities Fund

			Insurance
	Distribution		administrative		Administrative
Share class	services		services		services
Class 1	Not applicable		Not applicable		$	288
Class 1A	$	—	$	5		—	*
Class 2		3,325		Not applicable		269
Class 3		16		Not applicable		2
Class 4		270		271		23
Total class-specific expenses	$	3,611	$	276	$	582

Managed Risk Growth Fund

			Insurance
	Distribution		administrative
Share class	services		services
Class P1	Not applicable		$	10
Class P2	$	974		974
Total class-specific expenses	$	974	$	984

Managed Risk International Fund

			Insurance
	Distribution		administrative
Share class	services		services
Class P1	Not applicable		$	1
Class P2	$	398		398
Total class-specific expenses	$	398	$	399

Managed Risk Blue Chip Income and Growth Fund

			Insurance
	Distribution		administrative
Share class	services		services
Class P1	Not applicable		$	1
Class P2	$	877		877
Total class-specific expenses	$	877	$	878

Managed Risk Growth-Income Fund

			Insurance
	Distribution		administrative
Share class	services		services
Class P1	Not applicable		$	4,623
Class P2	$	647		647
Total class-specific expenses	$	647	$	5,270

178	American Funds Insurance Series

Managed Risk Asset Allocation Fund

Insurance

Distribution

administrative

Share class

services

Class P1

Not applicable

Class P2

6,739

Total class-specific expenses

6,739

6,744

*	Amount less than one thousand.

Miscellaneous fee reimbursements — CRMC has agreed to reimburse a portion of miscellaneous fees and expenses of Managed Risk Growth Fund, Managed Risk International Fund and Managed Risk Blue Chip Income and Growth Fund. Miscellaneous expenses exclude investment advisory services and distribution services fees. These reimbursements may be adjusted or discontinued by CRMC, subject to any restrictions in the series’ prospectus. For the year ended December 31, 2019, total fees and expenses reimbursed by CRMC were $74,000. Fees and expenses in each fund’s statement of operations are presented gross of any reimbursements from CRMC.

Trustees’ deferred compensation — Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the funds, are treated as if invested in one or more of the American Funds. These amounts represent general, unsecured liabilities of the funds and vary according to the total returns of the selected funds. Trustees’ compensation, shown on the accompanying financial statements, reflects current fees (either paid in cash or deferred) and a net increase in the value of the deferred amounts as follows (dollars in thousands):

				Increase in value of				Total trustees’
Fund	Current fees			deferred amounts				compensation
Global Growth Fund		$	31		$	11			$	42
Global Small Capitalization Fund			21			7				28
Growth Fund			130			45				175
International Fund			48			16				64
New World Fund			17			6				23
Blue Chip Income and Growth Fund			44			15				59
Global Growth and Income Fund			10			3				13
Growth-Income Fund			164			57				221
International Growth and Income Fund			7			2				9
Capital Income Builder			4			2				6
Asset Allocation Fund			127			43				170
Global Balanced Fund			2			1				3
Bond Fund			51			17				68
Global Bond Fund			11			3				14
High-Income Bond Fund			6			2				8
Mortgage Fund			1			1				2
Ultra-Short Bond Fund			1			—	*			1
U.S. Government/AAA-Rated Securities Fund			15			5				20
Managed Risk Growth Fund			1			1				2
Managed Risk International Fund			1			—	*			1
Managed Risk Blue Chip Income and Growth Fund			1			1				2
Managed Risk Growth-Income Fund			8			4				12
Managed Risk Asset Allocation Fund			16			5				21

*	Amount less than one thousand.

Affiliated officers and trustees — Officers and certain trustees of the series are or may be considered to be affiliated with CRMC, AFD and AFS. No affiliated officers or trustees received any compensation directly from any fund in the series.

Investment in CCF — Some of the funds hold shares of CCF, an institutional prime money market fund managed by CRMC. CCF invests in high-quality, short-term money market instruments. CCF is used as the primary investment vehicle for each fund’s short-term investments. CCF shares are only available for purchase by CRMC, its affiliates, and other funds managed by CRMC. CCF shares are not available to the public. CRMC does not receive an investment advisory services fee from CCF.

American Funds Insurance Series

179

Security transactions with related funds — The funds may purchase from, or sell securities to, other CRMC-managed funds (or funds managed by certain affiliates of CRMC) under procedures adopted by the fund’s board of trustees. The funds involved in such transactions are considered related by virtue of having a common investment adviser (or affiliated investment advisers), common trustees and/or common officers. When such transactions occur, each transaction is executed at the current market price of the security and no brokerage commissions or fees are paid in accordance with Rule 17a-7 of the 1940 Act.

The following table presents purchase and sale transactions between each fund and related funds as of December 31, 2019 (dollars in thousands):

Fund	Purchases			Sales			Net realized gain (loss)
Global Growth Fund		$	24,083		$	81,665		$	14,006
Global Small Capitalization Fund			36,878			122,208			33,693
Growth Fund			268,036			905,939			9,860
International Fund			81,543			407,486			47,090
New World Fund			13,140			16,223			457
Blue Chip Income and Growth Fund			99,516			104,771			10,930
Global Growth and Income Fund			14,247			26,182			572
Growth-Income Fund			200,557			806,347			(8,638	)
International Growth and Income Fund			10,521			12,522			(737	)
Capital Income Builder			27,947			2,175			(137	)
Asset Allocation Fund			404,052			977,305			(21,921	)
Global Balanced Fund			1,871			906			(25	)
Bond Fund			51,636			102,897			(719	)
Global Bond Fund			4,273			1,394			(2	)
High-Income Bond Fund			4,365			9,431			(2,079	)

8. Committed line of credit

Global Small Capitalization Fund, New World Fund and High-Income Bond Fund participate with other funds managed by CRMC in a $1.5 billion credit facility (the “line of credit”) to be utilized for temporary purposes to fund shareholder redemptions. Each fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which are reflected in other expenses in each fund’s statement of operations. None of the funds borrowed on this line of credit at any time during the year ended December 31, 2019.

9. Capital share transactions

Capital share transactions in the funds were as follows (dollars and shares in thousands):

Global Growth Fund

	Sales*				Reinvestments of distributions				Repurchases*						Net increase (decrease)
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended December 31, 2019

Class 1	$	230,089		7,777	$	152,273		5,192	$	(333,318	)		(11,180	)	$	49,044			1,789
Class 1A		1,744		62		449		15		(572	)		(19	)		1,621			58
Class 2		44,842		1,552		244,600		8,453		(555,704	)		(18,803	)		(266,262	)		(8,798	)
Class 4		70,615		2,415		20,612		716		(29,399	)		(1,009	)		61,828			2,122
Total net increase (decrease)	$	347,290		11,806	$	417,934		14,376	$	(918,993	)		(31,011	)	$	(153,769	)		(4,829	)

Year ended December 31, 2018

Class 1	$	318,393		10,738	$	163,496		5,459	$	(199,573	)		(6,616	)	$	282,316			9,581
Class 1A		4,760		162		320		11		(1,942	)		(64	)		3,138			109
Class 2		71,745		2,511		292,561		9,830		(465,838	)		(15,407	)		(101,532	)		(3,066	)
Class 4		94,068		3,163		18,437		622		(28,678	)		(983	)		83,827			2,802
Total net increase (decrease)	$	488,966		16,574	$	474,814		15,922	$	(696,031	)		(23,070	)	$	267,749			9,426

180	American Funds Insurance Series

Global Small Capitalization Fund

	Sales*				Reinvestments of distributions				Repurchases*						Net increase (decrease)
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended December 31, 2019

Class 1	$	337,817		13,612	$	125,498		5,216	$	(226,381	)		(9,119	)	$	236,934			9,709
Class 1A		196		8		28		2		(96	)		(4	)		128			6
Class 2		21,553		917		147,687		6,340		(327,909	)		(13,596	)		(158,669	)		(6,339	)
Class 4		35,449		1,468		11,115		475		(22,005	)		(911	)		24,559			1,032
Total net increase (decrease)	$	395,015		16,005	$	284,328		12,033	$	(576,391	)		(23,630	)	$	102,952			4,408

Year ended December 31, 2018

Class 1	$	138,128		5,551	$	76,990		2,920	$	(160,148	)		(6,253	)	$	54,970			2,218
Class 1A		318		12		16		1		(110	)		(5	)		224			8
Class 2		47,093		2,015		112,331		4,349		(309,646	)		(12,397	)		(150,222	)		(6,033	)
Class 4		56,525		2,282		6,491		249		(17,067	)		(693	)		45,949			1,838
Total net increase (decrease)	$	242,064		9,860	$	195,828		7,519	$	(486,971	)		(19,348	)	$	(49,079	)		(1,969	)

Growth Fund

	Sales*				Reinvestments of distributions				Repurchases*						Net increase (decrease)
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended December 31, 2019

Class 1	$	896,700		11,839	$	1,112,851		15,532	$	(1,155,174	)		(15,026	)	$	854,377			12,345
Class 1A		6,106		81		1,482		21		(1,574	)		(20	)		6,014			82
Class 2		294,401		3,907		1,692,272		23,866		(2,108,133	)		(27,828	)		(121,460	)		(55	)
Class 3		1,763		23		23,154		321		(29,706	)		(390	)		(4,789	)		(46	)
Class 4		227,023		3,055		145,699		2,087		(131,942	)		(1,767	)		240,780			3,375
Total net increase (decrease)	$	1,425,993		18,905	$	2,975,458		41,827	$	(3,426,529	)		(45,031	)	$	974,922			15,701

Year ended December 31, 2018

Class 1	$	1,574,676		19,928	$	879,237		11,221	$	(1,126,624	)		(14,082	)	$	1,327,289			17,067
Class 1A		8,204		103		710		9		(563	)		(7	)		8,351			105
Class 2		292,909		3,756		1,633,088		20,970		(2,436,432	)		(30,703	)		(510,435	)		(5,977	)
Class 3		1,809		22		21,971		279		(27,844	)		(348	)		(4,064	)		(47	)
Class 4		274,892		3,534		110,941		1,441		(135,865	)		(1,758	)		249,968			3,217
Total net increase (decrease)	$	2,152,490		27,343	$	2,645,947		33,920	$	(3,727,328	)		(46,898	)	$	1,071,109			14,365

See end of tables for footnotes.

American Funds Insurance Series

181

International Fund

	Sales*				Reinvestments of distributions				Repurchases*						Net (decrease) increase
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended December 31, 2019

Class 1	$	171,233		8,812	$	215,640		10,988	$	(699,395	)		(35,642	)	$	(312,522	)		(15,842	)
Class 1A		2,060		106		236		12		(1,174	)		(59	)		1,122			59
Class 2		175,514		9,064		164,024		8,407		(591,706	)		(30,261	)		(252,168	)		(12,790	)
Class 3		238		13		991		50		(4,348	)		(224	)		(3,119	)		(161	)
Class 4		60,129		3,112		13,366		694		(43,609	)		(2,263	)		29,886			1,543
Total net increase (decrease)	$	409,174		21,107	$	394,257		20,151	$	(1,340,232	)		(68,449	)	$	(536,801	)		(27,191	)

Year ended December 31, 2018

Class 1	$	987,191		47,885	$	339,738		16,682	$	(479,241	)		(23,102	)	$	847,688			41,465
Class 1A		4,302		204		296		14		(269	)		(14	)		4,329			204
Class 2		481,518		22,952		283,963		13,909		(441,465	)		(21,109	)		324,016			15,752
Class 3		506		23		1,857		91		(4,389	)		(209	)		(2,026	)		(95	)
Class 4		96,985		4,701		20,021		990		(45,627	)		(2,234	)		71,379			3,457
Total net increase (decrease)	$	1,570,502		75,765	$	645,875		31,686	$	(970,991	)		(46,668	)	$	1,245,386			60,783

New World Fund

	Sales*				Reinvestments of distributions				Repurchases*						Net increase (decrease)
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended December 31, 2019

Class 1	$	149,338		6,057	$	94,601		3,981	$	(207,841	)		(8,743	)	$	36,098			1,295
Class 1A		1,685		70		171		7		(408	)		(17	)		1,448			60
Class 2		68,793		2,911		43,651		1,861		(165,106	)		(6,991	)		(52,662	)		(2,219	)
Class 4		83,946		3,576		25,555		1,096		(39,744	)		(1,687	)		69,757			2,985
Total net increase (decrease)	$	303,762		12,614	$	163,978		6,945	$	(413,099	)		(17,438	)	$	54,641			2,121

Year ended December 31, 2018

Class 1	$	169,684		6,947	$	75,282		3,139	$	(240,756	)		(10,008	)	$	4,210			78
Class 1A		2,616		108		73		3		(572	)		(24	)		2,117			87
Class 2		70,536		2,954		34,787		1,456		(144,167	)		(5,934	)		(38,844	)		(1,524	)
Class 4		140,212		5,922		16,079		674		(31,201	)		(1,315	)		125,090			5,281
Total net increase (decrease)	$	383,048		15,931	$	126,221		5,272	$	(416,696	)		(17,281	)	$	92,573			3,922

Blue Chip Income and Growth Fund

	Sales*				Reinvestments of distributions				Repurchases*						Net increase (decrease)
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended December 31, 2019

Class 1	$	213,624		16,737	$	525,212		41,913	$	(484,978	)		(37,271	)	$	253,858			21,379
Class 1A		5,177		403		598		47		(451	)		(35	)		5,324			415
Class 2		28,815		2,244		298,911		24,211		(366,595	)		(28,328	)		(38,869	)		(1,873	)
Class 4		198,327		15,485		49,345		4,013		(38,161	)		(2,979	)		209,511			16,519
Total net increase (decrease)	$	445,943		34,869	$	874,066		70,184	$	(890,185	)		(68,613	)	$	429,824			36,440

Year ended December 31, 2018

Class 1	$	189,059		13,527	$	528,528		38,135	$	(524,399	)		(36,270	)	$	193,188			15,392
Class 1A		2,957		203		254		19		(106	)		(8	)		3,105			214
Class 2		34,615		2,528		320,676		23,381		(472,476	)		(32,985	)		(117,185	)		(7,076	)
Class 4		190,787		13,641		29,968		2,200		(33,879	)		(2,399	)		186,876			13,442
Total net increase (decrease)	$	417,418		29,899	$	879,426		63,735	$	(1,030,860	)		(71,662	)	$	265,984			21,972

182	American Funds Insurance Series

Global Growth and Income Fund

	Sales*				Reinvestments of distributions				Repurchases*						Net increase (decrease)
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended December 31, 2019

Class 1	$	43,801		2,986	$	38,762		2,639	$	(61,157	)		(4,174	)	$	21,406			1,451
Class 1A		809		55		100		7		(205	)		(14	)		704			48
Class 2		15,277		1,057		91,385		6,251		(232,647	)		(15,758	)		(125,985	)		(8,450	)
Class 4		34,845		2,405		8,268		574		(16,175	)		(1,116	)		26,938			1,863
Total net increase (decrease)	$	94,732		6,503	$	138,515		9,471	$	(310,184	)		(21,062	)	$	(76,937	)		(5,088	)

Year ended December 31, 2018

Class 1	$	105,981		7,092	$	45,562		3,107	$	(46,619	)		(3,060	)	$	104,924			7,139
Class 1A		951		60		81		6		(40	)		(2	)		992			64
Class 2		27,421		1,842		130,608		8,898		(208,022	)		(13,672	)		(49,993	)		(2,932	)
Class 4		42,459		2,827		8,471		586		(16,633	)		(1,102	)		34,297			2,311
Total net increase (decrease)	$	176,812		11,821	$	184,722		12,597	$	(271,314	)		(17,836	)	$	90,220			6,582

Growth-Income Fund

	Sales*				Reinvestments of distributions				Repurchases*						Net increase (decrease)
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended December 31, 2019

Class 1	$	1,061,581		21,810	$	2,276,758		48,690	$	(1,229,398	)		(25,018	)	$	2,108,941			45,482
Class 1A		3,121		63		1,031		22		(929	)		(19	)		3,223			66
Class 2		173,237		3,593		1,532,457		33,240		(1,626,668	)		(33,632	)		79,026			3,201
Class 3		2,080		42		17,705		379		(21,190	)		(431	)		(1,405	)		(10	)
Class 4		180,857		3,787		125,407		2,752		(103,759	)		(2,175	)		202,505			4,364
Total net increase (decrease)	$	1,420,876		29,295	$	3,953,358		85,083	$	(2,981,944	)		(61,275	)	$	2,392,290			53,103

Year ended December 31, 2018

Class 1	$	2,594,038		53,950	$	1,388,000		27,742	$	(1,325,537	)		(25,872	)	$	2,656,501			55,820
Class 1A		5,817		114		467		10		(933	)		(18	)		5,351			106
Class 2		128,833		2,587		1,128,412		22,770		(1,901,203	)		(37,514	)		(643,958	)		(12,157	)
Class 3		1,014		20		13,244		264		(26,871	)		(525	)		(12,613	)		(241	)
Class 4		193,427		3,881		73,971		1,507		(97,541	)		(1,958	)		169,857			3,430
Total net increase (decrease)	$	2,923,129		60,552	$	2,604,094		52,293	$	(3,352,085	)		(65,887	)	$	2,175,138			46,958

See end of tables for footnotes.

American Funds Insurance Series

183

International Growth and Income Fund

	Sales*				Reinvestments of distributions				Repurchases*						Net (decrease) increase
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended December 31, 2019

Class 1	$	9,331		555	$	41,626		2,406	$	(130,370	)		(7,620	)	$	(79,413	)		(4,659	)
Class 1A		364		22		83		5		(75	)		(4	)		372			23
Class 2		14,448		831		8,726		507		(37,612	)		(2,202	)		(14,438	)		(864	)
Class 4		20,154		1,195		3,113		182		(7,857	)		(466	)		15,410			911
Total net increase (decrease)	$	44,297		2,603	$	53,548		3,100	$	(175,914	)		(10,292	)	$	(78,069	)		(4,589	)

Year ended December 31, 2018

Class 1	$	102,396		5,829	$	28,476		1,796	$	(62,238	)		(3,472	)	$	68,634			4,153
Class 1A		276		16		44		3		(453	)		(27	)		(133	)		(8	)
Class 2		13,046		753		5,865		371		(28,666	)		(1,702	)		(9,755	)		(578	)
Class 4		29,607		1,717		1,597		101		(12,831	)		(752	)		18,373			1,066
Total net increase (decrease)	$	145,325		8,315	$	35,982		2,271	$	(104,188	)		(5,953	)	$	77,119			4,633

Capital Income Builder

	Sales*				Reinvestments of distributions				Repurchases*						Net increase
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended December 31, 2019

Class 1	$	160,592		15,806	$	13,476		1,322	$	(12,510	)		(1,240	)	$	161,558			15,888
Class 1A		2,709		268		126		12		(345	)		(34	)		2,490			246
Class 2		1,661		165		137		13		(567	)		(56	)		1,231			122
Class 4		66,462		6,575		10,875		1,070		(29,407	)		(2,903	)		47,930			4,742
Total net increase (decrease)	$	231,424		22,814	$	24,614		2,417	$	(42,829	)		(4,233	)	$	213,209			20,998

Year ended December 31, 2018

Class 1	$	96,466		9,624	$	10,037		1,010	$	(12,240	)		(1,241	)	$	94,263			9,393
Class 1A		2,709		270		70		7		(761	)		(77	)		2,018			200
Class 2		2,658		264		96		10		(180	)		(18	)		2,574			256
Class 4		66,457		6,627		10,312		1,037		(25,636	)		(2,556	)		51,133			5,108
Total net increase (decrease)	$	168,290		16,785	$	20,515		2,064	$	(38,817	)		(3,892	)	$	149,988			14,957

Asset Allocation Fund

	Sales*				Reinvestments of distributions				Repurchases*						Net increase (decrease)
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended December 31, 2019

Class 1	$	1,081,611		47,062	$	1,173,430		52,076	$	(1,121,605	)		(48,857	)	$	1,133,436			50,281
Class 1A		2,765		122		605		27		(689	)		(30	)		2,681			119
Class 2		111,154		4,871		347,279		15,613		(575,603	)		(25,266	)		(117,170	)		(4,782	)
Class 3		991		43		2,189		97		(4,150	)		(180	)		(970	)		(40	)
Class 4		356,681		15,732		277,834		12,559		(218,378	)		(9,706	)		416,137			18,585
Total net increase (decrease)	$	1,553,202		67,830	$	1,801,337		80,372	$	(1,920,425	)		(84,039	)	$	1,434,114			64,163

Year ended December 31, 2018

Class 1	$	1,402,434		60,588	$	1,053,838		46,034	$	(2,607,246	)		(117,896	)	$	(150,974	)		(11,274	)
Class 1A		3,797		162		411		18		(678	)		(30	)		3,530			150
Class 2		89,621		3,865		313,464		13,808		(682,422	)		(29,567	)		(279,337	)		(11,894	)
Class 3		897		38		2,098		91		(7,614	)		(325	)		(4,619	)		(196	)
Class 4		380,567		16,509		217,964		9,642		(180,958	)		(7,998	)		417,573			18,153
Total net increase (decrease)	$	1,877,316		81,162	$	1,587,775		69,593	$	(3,478,918	)		(155,816	)	$	(13,827	)		(5,061	)

184	American Funds Insurance Series

Global Balanced Fund

	Sales*				Reinvestments of distributions				Repurchases*						Net increase (decrease)
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended December 31, 2019

Class 1	$	10,073		777	$	5,390		408	$	(9,768	)		(718	)	$	5,695			467
Class 1A		111		9		89		7		(237	)		(19	)		(37	)		(3	)
Class 2		7,858		607		8,009		608		(22,255	)		(1,722	)		(6,388	)		(507	)
Class 4		15,727		1,225		3,446		264		(6,014	)		(470	)		13,159			1,019
Total net increase (decrease)	$	33,769		2,618	$	16,934		1,287	$	(38,274	)		(2,929	)	$	12,429			976

Year ended December 31, 2018

Class 1	$	24,581		1,901	$	3,154		265	$	(847	)		(66	)	$	26,888			2,100
Class 1A		2,209		171		56		5		(292	)		(24	)		1,973			152
Class 2		11,812		914		4,844		408		(24,153	)		(1,905	)		(7,497	)		(583	)
Class 4		35,652		2,821		1,646		140		(12,396	)		(987	)		24,902			1,974
Total net increase (decrease)	$	74,254		5,807	$	9,700		818	$	(37,688	)		(2,982	)	$	46,266			3,643

Bond Fund

	Sales*				Reinvestments of distributions				Repurchases*						Net increase (decrease)
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended December 31, 2019

Class 1	$	562,508		51,468	$	176,372		15,842	$	(614,303	)		(56,025	)	$	124,577			11,285
Class 1A		3,719		336		165		15		(744	)		(67	)		3,140			284
Class 2		133,036		12,239		90,797		8,262		(413,489	)		(38,133	)		(189,656	)		(17,632	)
Class 4		149,767		13,753		11,384		1,037		(49,519	)		(4,574	)		111,632			10,216
Total net increase (decrease)	$	849,030		77,796	$	278,718		25,156	$	(1,078,055	)		(98,799	)	$	49,693			4,153

Year ended December 31, 2018

Class 1	$	856,250		80,879	$	164,110		15,776	$	(1,296,873	)		(122,086	)	$	(276,513	)		(25,431	)
Class 1A		2,864		271		80		8		(674	)		(64	)		2,270			215
Class 2		107,831		10,281		93,483		9,101		(518,189	)		(49,721	)		(316,875	)		(30,339	)
Class 4		118,851		11,386		8,606		839		(47,758	)		(4,587	)		79,699			7,638
Total net increase (decrease)	$	1,085,796		102,817	$	266,279		25,724	$	(1,863,494	)		(176,458	)	$	(511,419	)		(47,917	)

Global Bond Fund

	Sales*				Reinvestments of distributions				Repurchases*						Net increase (decrease)
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended December 31, 2019

Class 1	$	94,035		7,945	$	19,056		1,588	$	(113,011	)		(9,529	)	$	80			4
Class 1A		84		7		7		1		(59	)		(5	)		32			3
Class 2		33,181		2,816		15,927		1,338		(140,715	)		(11,911	)		(91,607	)		(7,757	)
Class 4		13,230		1,132		649		55		(7,381	)		(629	)		6,498			558
Total net increase (decrease)	$	140,530		11,900	$	35,639		2,982	$	(261,166	)		(22,074	)	$	(84,997	)		(7,192	)

Year ended December 31, 2018

Class 1	$	126,990		10,666	$	28,466		2,515	$	(375,280	)		(31,456	)	$	(219,824	)		(18,275	)
Class 1A		575		49		10		1		(241	)		(21	)		344			29
Class 2		41,190		3,507		26,720		2,377		(156,625	)		(13,571	)		(88,715	)		(7,687	)
Class 4		28,055		2,394		934		84		(17,922	)		(1,548	)		11,067			930
Total net increase (decrease)	$	196,810		16,616	$	56,130		4,977	$	(550,068	)		(46,596	)	$	(297,128	)		(25,003	)

See end of tables for footnotes.

American Funds Insurance Series

185

High-Income Bond Fund

	Sales*				Reinvestments of distributions				Repurchases*						Net (decrease) increase
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended December 31, 2019

Class 1	$	9,412		933	$	33,027		3,374	$	(48,250	)		(4,826	)	$	(5,811	)		(519	)
Class 1A		353		35		45		5		(350	)		(35	)		48			5
Class 2		10,165		1,039		41,753		4,340		(84,344	)		(8,552	)		(32,426	)		(3,173	)
Class 3		613		61		611		62		(1,328	)		(132	)		(104	)		(9	)
Class 4		64,302		6,070		3,353		321		(37,801	)		(3,523	)		29,854			2,868
Total net increase (decrease)	$	84,845		8,138	$	78,789		8,102	$	(172,073	)		(17,068	)	$	(8,439	)		(828	)

Year ended December 31, 2018

Class 1	$	15,126		1,484	$	34,114		3,526	$	(136,193	)		(13,306	)	$	(86,953	)		(8,296	)
Class 1A		621		61		40		5		(365	)		(36	)		296			30
Class 2		12,354		1,231		43,383		4,563		(111,276	)		(11,157	)		(55,539	)		(5,363	)
Class 3		1,837		179		664		68		(4,223	)		(418	)		(1,722	)		(171	)
Class 4		51,449		4,747		1,733		168		(53,384	)		(4,942	)		(202	)		(27	)
Total net increase (decrease)	$	81,387		7,702	$	79,934		8,330	$	(305,441	)		(29,859	)	$	(144,120	)		(13,827	)

Mortgage Fund

	Sales*				Reinvestments of distributions				Repurchases*						Net (decrease) increase
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended December 31, 2019

Class 1	$	31,595		3,007	$	5,573		528	$	(41,843	)		(3,959	)	$	(4,675	)		(424	)
Class 1A		166		16		12		1		(444	)		(42	)		(266	)		(25	)
Class 2		4,351		413		1,355		129		(7,802	)		(738	)		(2,096	)		(196	)
Class 4		11,996		1,146		585		56		(9,761	)		(944	)		2,820			258
Total net increase (decrease)	$	48,108		4,582	$	7,525		714	$	(59,850	)		(5,683	)	$	(4,217	)		(387	)

Year ended December 31, 2018

Class 1	$	17,819		1,730	$	4,658		457	$	(74,088	)		(7,185	)	$	(51,611	)		(4,998	)
Class 1A		732		71		15		2		(111	)		(11	)		636			62
Class 2		4,682		456		1,128		111		(10,509	)		(1,023	)		(4,699	)		(456	)
Class 4		14,315		1,403		424		41		(2,626	)		(257	)		12,113			1,187
Total net increase (decrease)	$	37,548		3,660	$	6,225		611	$	(87,334	)		(8,476	)	$	(43,561	)		(4,205	)

186	American Funds Insurance Series

Ultra-Short Bond Fund

	Sales*				Reinvestments of distributions						Repurchases*						Net (decrease) increase
Share class	Amount		Shares		Amount			Shares			Amount			Shares			Amount			Shares

Year ended December 31, 2019

Class 1	$	9,753		856	$	604			53		$	(17,930	)		(1,576	)	$	(7,573	)		(667	)
Class 1A		—		—		—	^†		—	^†		—			—			—	^†		—	^†
Class 2		85,259		7,676		4,088			371			(106,127	)		(9,561	)		(16,780	)		(1,514	)
Class 3		714		64		59			5			(2,101	)		(188	)		(1,328	)		(119	)
Class 4		21,513		1,920		342			31			(17,702	)		(1,580	)		4,153			371
Total net increase (decrease)	$	117,239		10,516	$	5,093			460		$	(143,860	)		(12,905	)	$	(21,528	)		(1,929	)

Year ended December 31, 2018

Class 1	$	25,371		2,233	$	561			50		$	(26,198	)		(2,310	)	$	(266	)		(27	)
Class 1A		—		—		—	^†		—	^†		—			—			—	^†		—	^†
Class 2		103,165		9,332		2,762			250			(107,692	)		(9,741	)		(1,765	)		(159	)
Class 3		4,222		378		42			4			(3,944	)		(353	)		320			29
Class 4		16,908		1,513		153			14			(14,303	)		(1,281	)		2,758			246
Total net increase (decrease)	$	149,666		13,456	$	3,518			318		$	(152,137	)		(13,685	)	$	1,047			89

U.S. Government/AAA-Rated Securities Fund

	Sales*				Reinvestments of distributions						Repurchases*						Net (decrease) increase
Share class	Amount		Shares		Amount			Shares			Amount			Shares			Amount			Shares

Year ended December 31, 2019

Class 1	$	63,401		5,184	$	31,462			2,550		$	(170,411	)		(13,819	)	$	(75,548	)		(6,085	)
Class 1A		1,348		110		50			4			(488	)		(40	)		910			74
Class 2		105,457		8,638		26,789			2,193			(155,177	)		(12,760	)		(22,931	)		(1,929	)
Class 3		975		79		180			15			(1,521	)		(124	)		(366	)		(30	)
Class 4		69,032		5,652		2,241			183			(41,016	)		(3,366	)		30,257			2,469
Total net increase (decrease)	$	240,213		19,663	$	60,722			4,945		$	(368,613	)		(30,109	)	$	(67,678	)		(5,501	)

Year ended December 31, 2018

Class 1	$	67,360		5,655	$	29,446			2,499		$	(191,451	)		(16,111	)	$	(94,645	)		(7,957	)
Class 1A		1,389		118		28			2			(214	)		(18	)		1,203			102
Class 2		43,398		3,680		24,431			2,094			(200,280	)		(17,045	)		(132,451	)		(11,271	)
Class 3		628		53		165			14			(1,997	)		(168	)		(1,204	)		(101	)
Class 4		45,391		3,857		1,313			113			(17,387	)		(1,474	)		29,317			2,496
Total net increase (decrease)	$	158,166		13,363	$	55,383			4,722		$	(411,329	)		(34,816	)	$	(197,780	)		(16,731	)

Managed Risk Growth Fund

	Sales*				Reinvestments of distributions						Repurchases*						Net increase
Share class	Amount		Shares		Amount			Shares			Amount			Shares			Amount			Shares

Year ended December 31, 2019

Class P1	$	2,619		201	$	317			25		$	(523	)		(41	)	$	2,413			185
Class P2		47,485		3,690		29,905			2,419			(30,455	)		(2,336	)		46,935			3,773
Total net increase (decrease)	$	50,104		3,891	$	30,222			2,444		$	(30,978	)		(2,377	)	$	49,348			3,958

Year ended December 31, 2018

Class P1	$	1,861		140	$	150			11		$	(596	)		(45	)	$	1,415			106
Class P2		79,190		6,025		21,792			1,658			(21,197	)		(1,594	)		79,785			6,089
Total net increase (decrease)	$	81,051		6,165	$	21,942			1,669		$	(21,793	)		(1,639	)	$	81,200			6,195

See end of tables for footnotes.

American Funds Insurance Series

187

Managed Risk International Fund

	Sales*				Reinvestments of distributions				Repurchases*						Net increase (decrease)
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended December 31, 2019

Class P1	$	357		34	$	27		3	$	(140	)		(14	)	$	244			23
Class P2		7,251		702		7,769		772		(18,389	)		(1,773	)		(3,369	)		(299	)
Total net increase (decrease)	$	7,608		736	$	7,796		775	$	(18,529	)		(1,787	)	$	(3,125	)		(276	)

Year ended December 31, 2018

Class P1	$	321		30	$	9		1	$	(44	)		(4	)	$	286			27
Class P2		33,085		3,040		3,419		323		(13,533	)		(1,240	)		22,971			2,123
Total net increase (decrease)	$	33,406		3,070	$	3,428		324	$	(13,577	)		(1,244	)	$	23,257			2,150

Managed Risk Blue Chip Income and Growth Fund

	Sales*				Reinvestments of distributions				Repurchases*						Net increase
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended December 31, 2019

Class P1	$	547		46	$	53		5	$	(313	)		(28	)	$	287			23
Class P2		16,518		1,448		23,362		2,128		(33,614	)		(2,932	)		6,266			644
Total net increase (decrease)	$	17,065		1,494	$	23,415		2,133	$	(33,927	)		(2,960	)	$	6,553			667

Year ended December 31, 2018

Class P1	$	358		29	$	22		2	$	(43	)		(4	)	$	337			27
Class P2		31,213		2,567		23,504		1,964		(35,759	)		(2,843	)		18,958			1,688
Total net increase (decrease)	$	31,571		2,596	$	23,526		1,966	$	(35,802	)		(2,847	)	$	19,295			1,715

Managed Risk Growth-Income Fund

	Sales*				Reinvestments of distributions				Repurchases*						Net increase
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended December 31, 2019

Class P1	$	86,511		6,809	$	29,069		2,244	$	(82,465	)		(6,312	)	$	33,115			2,741
Class P2		28,190		2,218		3,371		263		(20,033	)		(1,562	)		11,528			919
Total net increase (decrease)	$	114,701		9,027	$	32,440		2,507	$	(102,498	)		(7,874	)	$	44,643			3,660

Year ended December 31, 2018

Class P1	$	1,696,532		144,131	$	164		13	$	(30,979	)		(2,639	)	$	1,665,717			141,505
Class P2		45,914		3,658		12,188		977		(16,805	)		(1,320	)		41,297			3,315
Total net increase (decrease)	$	1,742,446		147,789	$	12,352		990	$	(47,784	)		(3,959	)	$	1,707,014			144,820

188	American Funds Insurance Series

Managed Risk Asset Allocation Fund

	Sales*				Reinvestments of distributions				Repurchases*						Net increase (decrease)
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended December 31, 2019

Class P1	$	626		47	$	70		5	$	(334	)		(25	)	$	362			27
Class P2		106,039		8,229		177,741		14,380		(260,413	)		(20,223	)		23,367			2,386
Total net increase (decrease)	$	106,665		8,276	$	177,811		14,385	$	(260,747	)		(20,248	)	$	23,729			2,413

Year ended December 31, 2018

Class P1	$	158,125		11,883	$	98,747		7,599	$	(1,735,518	)		(141,232	)	$	(1,478,646	)		(121,750	)
Class P2		122,897		9,265		144,221		11,089		(250,843	)		(19,040	)		16,275			1,314
Total net increase (decrease)	$	281,022		21,148	$	242,968		18,688	$	(1,986,361	)		(160,272	)	$	(1,462,371	)		(120,436	)

*	Includes exchanges between share classes of the fund.
^†	Amount less than one thousand.

American Funds Insurance Series

189

10. Investment transactions and other disclosures

The following tables present additional information for each of the funds for the year ended December 31, 2019 (dollars in thousands):

		Global Growth Fund			Global Small Capitalization Fund			Growth Fund		International Fund		New World Fund		Blue Chip Income and Growth Fund
Purchases of investment securities*	$	849,859		$	2,016,867		$	5,239,850	$	2,829,700	$	1,380,037	$	3,114,494
Sales of investment securities*		1,161,452			1,978,561			6,056,342		2,959,294		1,201,958		3,287,588
Non-U.S. taxes paid on dividend income		6,906			2,961			8,895		15,544		3,090		740
Non-U.S. taxes (refunded) paid on interest income		—			9			—		—		24		—
Non-U.S. taxes (refunded) paid on realized gains		—			—			—		2		95		—
Non-U.S. taxes provided on unrealized gains		4,247			7,065			—		14,853		12,751		—

		Global Growth and Income Fund			Growth- Income Fund			International Growth and Income Fund		Capital Income Builder		Asset Allocation Fund		Global Balanced Fund
Purchases of investment securities*	$	566,776		$	8,540,898		$	367,762	$	617,629	$	16,313,978	$	256,445
Sales of investment securities*		665,217			8,266,596			406,434		454,046		15,144,557		250,980
Non-U.S. taxes paid on dividend income		3,365			11,677			3,815		1,062		7,745		315
Non-U.S. taxes (refunded) paid on interest income		—			(1	)		—		—		—		17
Non-U.S. taxes (refunded) paid on realized gains		—			515			152		—		—		8
Non-U.S. taxes provided on unrealized gains		2,362			600			10		—		104		27
Dividend income from affiliated issuers		—			3,592			—		—		5,398		—
Interest income from affiliated issuers		—			—			—		—		1,136		—

		Bond Fund			Global Bond Fund			High- Income Bond Fund		Mortgage Fund		Ultra-Short Bond Fund		U.S. Government/ AAA-Rated Securities Fund
Purchases of investment securities*	$	31,591,809		$	2,815,896		$	692,973	$	924,220	$	—	$	5,774,305
Sales of investment securities*		33,147,847			2,894,376			734,772		1,047,226		74,850		6,141,505
Non-U.S. taxes (refunded) paid on interest income		(6	)		416			—		—		—		—
Non-U.S. taxes (refunded) paid on realized gains		(2	)		369			—		—		—		—
Non-U.S. taxes provided on unrealized gains		—			225			—		—		—		—

		Managed Risk Growth Fund			Managed Risk International Fund			Managed Risk Blue Chip Income and Growth Fund		Managed Risk Growth- Income Fund		Managed Risk Asset Allocation Fund
Purchases of investment securities*	$	80,311		$	12,427		$	42,893	$	303,447	$	217,416
Sales of investment securities*		39,304			19,864			43,650		122,609		287,016
Dividend income from affiliated issuers		5,006			2,825			7,584		41,965		55,061

*	Excludes short-term securities and U.S. government obligations, if any.

190	American Funds Insurance Series

11. Ownership concentration

At December 31, 2019, American Funds Insurance Series - Portfolio Series Managed Risk Growth and Income Portfolio held 33% and 12% of the outstanding shares of Capital Income Builder and Global Growth and Income Fund, respectively. In addition, American Funds Insurance Series - Portfolio Series Managed Risk Global Allocation Portfolio held 24% of the outstanding shares of Global Balanced Fund.

American Funds Insurance Series

191

Financial highlights

			Income (loss) from investment operations¹									Dividends and distributions
Period ended	Net asset value, beginning of period		Net investment income (loss)			Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return			Net assets, end of period (in millions)			Ratio of expenses to average net assets²			Ratio of net income (loss) to average net assets

Global Growth Fund

Class 1:
12/31/2019	$	25.74	$	.32		$	8.60		$	8.92		$	(.41	)	$	(1.68	)	$	(2.09	)	$	32.57		35.61	%	$	2,515			.56	%		1.07	%
12/31/2018		30.51		.29			(2.65	)		(2.36	)		(.28	)		(2.13	)		(2.41	)		25.74		(8.81	)		1,942			.55			.98
12/31/2017		24.05		.26			7.30			7.56			(.26	)		(.84	)		(1.10	)		30.51		31.80			2,010			.55			.94
12/31/2016		26.39		.25			(.14	)		.11			(.29	)		(2.16	)		(2.45	)		24.05		.87			1,630			.56			1.00
12/31/2015		27.48		.25			1.80			2.05			(.35	)		(2.79	)		(3.14	)		26.39		7.24			1,626			.55			.90
Class 1A:
12/31/2019		25.69		.25			8.55			8.80			(.34	)		(1.68	)		(2.02	)		32.47		35.22			8			.81			.83
12/31/2018		30.46		.23			(2.66	)		(2.43	)		(.21	)		(2.13	)		(2.34	)		25.69		(9.02	)		5			.80			.77
12/31/2017^3,4		24.50		.11			6.94			7.05			(.25	)		(.84	)		(1.09	)		30.46		29.13	⁵		2			.80	⁶		.39	⁶
Class 2:
12/31/2019		25.50		.24			8.51			8.75			(.33	)		(1.68	)		(2.01	)		32.24		35.28			3,895			.81			.83
12/31/2018		30.24		.22			(2.63	)		(2.41	)		(.20	)		(2.13	)		(2.33	)		25.50		(9.04	)		3,306			.80			.73
12/31/2017		23.85		.19			7.23			7.42			(.19	)		(.84	)		(1.03	)		30.24		31.47			4,012			.80			.69
12/31/2016		26.19		.18			(.14	)		.04			(.22	)		(2.16	)		(2.38	)		23.85		.62			3,483			.81			.76
12/31/2015		27.30		.18			1.78			1.96			(.28	)		(2.79	)		(3.07	)		26.19		6.94			3,817			.80			.66
Class 4:
12/31/2019		25.39		.17			8.45			8.62			(.28	)		(1.68	)		(1.96	)		32.05		34.87			382			1.06			.57
12/31/2018		30.13		.14			(2.60	)		(2.46	)		(.15	)		(2.13	)		(2.28	)		25.39		(9.24	)		249			1.05			.47
12/31/2017		23.81		.10			7.22			7.32			(.16	)		(.84	)		(1.00	)		30.13		31.11			211			1.05			.37
12/31/2016		26.16		.12			(.14	)		(.02	)		(.17	)		(2.16	)		(2.33	)		23.81		.37			94			1.06			.50
12/31/2015		27.34		.09			1.81			1.90			(.29	)		(2.79	)		(3.08	)		26.16		6.69			91			1.05			.34

Global Small Capitalization Fund

Class 1:
12/31/2019	$	21.75	$	.12		$	6.61		$	6.73		$	(.10	)	$	(1.58	)	$	(1.68	)	$	26.80		31.84	%	$	2,050			.75	%		.48	%
12/31/2018		25.38		.11			(2.51	)		(2.40	)		(.09	)		(1.14	)		(1.23	)		21.75		(10.31	)		1,453			.73			.42
12/31/2017		20.24		.12			5.17			5.29			(.15	)		—			(.15	)		25.38		26.22			1,639			.73			.54
12/31/2016		24.41		.12			.17			.29			(.11	)		(4.35	)		(4.46	)		20.24		2.35			1,532			.74			.57
12/31/2015		26.09		.04			.36			.40			—			(2.08	)		(2.08	)		24.41		.50			1,706			.73			.15
Class 1A:
12/31/2019		21.71		.05			6.61			6.66			(.05	)		(1.58	)		(1.63	)		26.74		31.56			1			.99			.22
12/31/2018		25.36		.05			(2.52	)		(2.47	)		(.04	)		(1.14	)		(1.18	)		21.71		(10.56	)		—	⁷		.98			.21
12/31/2017^3,4		20.70		.08			4.71			4.79			(.13	)		—			(.13	)		25.36		23.19	⁵		—	⁷		.96	⁶		.35	⁶
Class 2:
12/31/2019		21.16		.05			6.43			6.48			(.04	)		(1.58	)		(1.62	)		26.02		31.52			2,363			1.00			.22
12/31/2018		24.72		.04			(2.44	)		(2.40	)		(.02	)		(1.14	)		(1.16	)		21.16		(10.55	)		2,056			.98			.17
12/31/2017		19.72		.06			5.04			5.10			(.10	)		—			(.10	)		24.72		25.89			2,551			.98			.27
12/31/2016		23.90		.07			.15			.22			(.05	)		(4.35	)		(4.40	)		19.72		2.10			2,303			.99			.31
12/31/2015		25.64		(.03	)		.37			.34			—			(2.08	)		(2.08	)		23.90		.27			2,492			.98			(.10	)
Class 4:
12/31/2019		21.28		(.01	)		6.47			6.46			—	⁸		(1.58	)		(1.58	)		26.16		31.24			206			1.25			(.04	)
12/31/2018		24.91		(.02	)		(2.46	)		(2.48	)		(.01	)		(1.14	)		(1.15	)		21.28		(10.80	)		146			1.24			(.08	)
12/31/2017		19.91		—	⁸		5.09			5.09			(.09	)		—			(.09	)		24.91		25.62			125			1.23			—	⁹
12/31/2016		24.11		.01			.16			.17			(.02	)		(4.35	)		(4.37	)		19.91		1.85			42			1.24			.03
12/31/2015		25.92		(.10	)		.37			.27			—			(2.08	)		(2.08	)		24.11		(.02	)		34			1.23			(.37	)

192	American Funds Insurance Series

			Income (loss) from investment operations¹						Dividends and distributions
Period ended	Net asset value, beginning of period		Net investment income (loss)		Net gains (losses) on securities (both realized and unrealized)		Total from investment operations		Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return			Net assets, end of period (in millions)		Ratio of expenses to average net assets²			Ratio of net income (loss) to average net assets

Growth Fund

Class 1:
12/31/2019	$	69.96	$	.83	$	19.63	$	20.46	$	(.76	)	$	(8.44	)	$	(9.20	)	$	81.22		31.11	%	$	10,841		.35	%		1.09	%
12/31/2018		77.85		.64		.25		.89		(.54	)		(8.24	)		(8.78	)		69.96		(.01	)		8,474		.34			.81
12/31/2017		67.29		.55		17.89		18.44		(.55	)		(7.33	)		(7.88	)		77.85		28.62			8,100		.35			.75
12/31/2016		68.02		.67		5.40		6.07		(.67	)		(6.13	)		(6.80	)		67.29		9.77			6,931		.35			1.03
12/31/2015		80.15		.64		5.08		5.72		(.61	)		(17.24	)		(17.85	)		68.02		7.12			6,796		.35			.87
Class 1A:
12/31/2019		69.77		.65		19.55		20.20		(.61	)		(8.44	)		(9.05	)		80.92		30.79			18		.60			.85
12/31/2018		77.74		.47		.24		.71		(.44	)		(8.24	)		(8.68	)		69.77		(.26	)		10		.59			.60
12/31/2017^3,4		68.84		.35		16.38		16.73		(.50	)		(7.33	)		(7.83	)		77.74		25.47	⁵		3		.59	⁶		.47	⁶
Class 2:
12/31/2019		69.48		.63		19.47		20.10		(.57	)		(8.44	)		(9.01	)		80.57		30.77			15,885		.60			.83
12/31/2018		77.35		.44		.27		.71		(.34	)		(8.24	)		(8.58	)		69.48		(.25	)		13,701		.59			.55
12/31/2017		66.92		.37		17.76		18.13		(.37	)		(7.33	)		(7.70	)		77.35		28.28			15,716		.60			.50
12/31/2016		67.69		.51		5.36		5.87		(.51	)		(6.13	)		(6.64	)		66.92		9.49			13,978		.60			.78
12/31/2015		79.84		.46		5.06		5.52		(.43	)		(17.24	)		(17.67	)		67.69		6.86			14,414		.60			.62
Class 3:
12/31/2019		70.44		.69		19.77		20.46		(.62	)		(8.44	)		(9.06	)		81.84		30.86			213		.53			.90
12/31/2018		78.32		.50		.26		.76		(.40	)		(8.24	)		(8.64	)		70.44		(.18	)		187		.52			.62
12/31/2017		67.67		.42		17.98		18.40		(.42	)		(7.33	)		(7.75	)		78.32		28.39			212		.53			.57
12/31/2016		68.37		.56		5.42		5.98		(.55	)		(6.13	)		(6.68	)		67.67		9.56			183		.53			.85
12/31/2015		80.47		.51		5.11		5.62		(.48	)		(17.24	)		(17.72	)		68.37		6.92			194		.53			.69
Class 4:
12/31/2019		68.64		.44		19.19		19.63		(.42	)		(8.44	)		(8.86	)		79.41		30.44			1,513		.85			.59
12/31/2018		76.56		.24		.28		.52		(.20	)		(8.24	)		(8.44	)		68.64		(.50	)		1,076		.84			.31
12/31/2017		66.41		.18		17.61		17.79		(.31	)		(7.33	)		(7.64	)		76.56		27.99			954		.85			.25
12/31/2016		67.26		.34		5.32		5.66		(.38	)		(6.13	)		(6.51	)		66.41		9.22			458		.85			.53
12/31/2015		79.74		.29		5.02		5.31		(.55	)		(17.24	)		(17.79	)		67.26		6.59			394		.85			.42

See end of tables for footnotes.

American Funds Insurance Series

193

Financial highlights (continued)

			Income (loss) from investment operations¹								Dividends and distributions
Period ended	Net asset value, beginning of period		Net investment income (loss)		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return			Net assets, end of period (in millions)		Ratio of expenses to average net assets²			Ratio of net income (loss) to average net assets

International Fund

Class 1:
12/31/2019	$	17.66	$	.30	$	3.74		$	4.04		$	(.34	)	$	(.50	)	$	(.84	)	$	20.86		23.21	%	$	5,353		.54	%		1.54	%
12/31/2018		21.71		.34		(2.97	)		(2.63	)		(.40	)		(1.02	)		(1.42	)		17.66		(12.94	)		4,811		.53			1.62
12/31/2017		16.82		.26		5.16			5.42			(.30	)		(.23	)		(.53	)		21.71		32.46			5,014		.53			1.33
12/31/2016		18.08		.27		.30			.57			(.28	)		(1.55	)		(1.83	)		16.82		3.78			3,652		.54			1.57
12/31/2015		20.35		.29		(1.03	)		(.74	)		(.35	)		(1.18	)		(1.53	)		18.08		(4.25	)		3,427		.54			1.41
Class 1A:
12/31/2019		17.62		.25		3.72			3.97			(.29	)		(.50	)		(.79	)		20.80		22.90			7		.79			1.27
12/31/2018		21.67		.27		(2.93	)		(2.66	)		(.37	)		(1.02	)		(1.39	)		17.62		(13.11	)		5		.78			1.32
12/31/2017^3,4		17.17		.09		4.93			5.02			(.29	)		(.23	)		(.52	)		21.67		29.46	⁵		2		.77	⁶		.43	⁶
Class 2:
12/31/2019		17.60		.25		3.72			3.97			(.29	)		(.50	)		(.79	)		20.78		22.88			4,311		.79			1.29
12/31/2018		21.63		.29		(2.95	)		(2.66	)		(.35	)		(1.02	)		(1.37	)		17.60		(13.13	)		3,875		.78			1.40
12/31/2017		16.76		.22		5.13			5.35			(.25	)		(.23	)		(.48	)		21.63		32.14			4,422		.78			1.10
12/31/2016		18.02		.23		.30			.53			(.24	)		(1.55	)		(1.79	)		16.76		3.53			3,710		.79			1.35
12/31/2015		20.29		.24		(1.03	)		(.79	)		(.30	)		(1.18	)		(1.48	)		18.02		(4.53	)		3,978		.79			1.17
Class 3:
12/31/2019		17.70		.27		3.75			4.02			(.30	)		(.50	)		(.80	)		20.92		23.05			25		.72			1.37
12/31/2018		21.75		.31		(2.98	)		(2.67	)		(.36	)		(1.02	)		(1.38	)		17.70		(13.10	)		24		.71			1.48
12/31/2017		16.85		.23		5.17			5.40			(.27	)		(.23	)		(.50	)		21.75		32.23			31		.71			1.17
12/31/2016		18.11		.24		.30			.54			(.25	)		(1.55	)		(1.80	)		16.85		3.57			27		.72			1.42
12/31/2015		20.38		.25		(1.03	)		(.78	)		(.31	)		(1.18	)		(1.49	)		18.11		(4.44	)		32		.72			1.24
Class 4:
12/31/2019		17.40		.20		3.69			3.89			(.25	)		(.50	)		(.75	)		20.54		22.67			379		1.04			1.03
12/31/2018		21.42		.23		(2.93	)		(2.70	)		(.30	)		(1.02	)		(1.32	)		17.40		(13.41	)		295		1.03			1.13
12/31/2017		16.64		.11		5.16			5.27			(.26	)		(.23	)		(.49	)		21.42		31.89			289		1.03			.55
12/31/2016		17.93		.18		.29			.47			(.21	)		(1.55	)		(1.76	)		16.64		3.21			66		1.04			1.03
12/31/2015		20.23		.17		(1.00	)		(.83	)		(.29	)		(1.18	)		(1.47	)		17.93		(4.75	)		46		1.04			.88

New World Fund

Class 1:
12/31/2019	$	20.98	$	.28	$	5.79		$	6.07		$	(.29	)	$	(.92	)	$	(1.21	)	$	25.84		29.47	%	$	2,129		.76	%		1.18	%
12/31/2018		25.30		.27		(3.65	)		(3.38	)		(.27	)		(.67	)		(.94	)		20.98		(13.83	)		1,702		.77			1.11
12/31/2017		19.72		.26		5.59			5.85			(.27	)		—			(.27	)		25.30		29.73			2,050		.77			1.14
12/31/2016		18.87		.24		.81			1.05			(.20	)		—			(.20	)		19.72		5.59			1,743		.78			1.25
12/31/2015		20.72		.19		(.71	)		(.52	)		(.17	)		(1.16	)		(1.33	)		18.87		(2.96	)		1,562		.79			.92
Class 1A:
12/31/2019		20.92		.22		5.76			5.98			(.24	)		(.92	)		(1.16	)		25.74		29.11			4		1.01			.92
12/31/2018		25.25		.21		(3.64	)		(3.43	)		(.23	)		(.67	)		(.90	)		20.92		(14.02	)		2		1.02			.91
12/31/2017^3,4		20.14		.13		5.24			5.37			(.26	)		—			(.26	)		25.25		26.72	⁵		1		1.00	⁶		.53	⁶
Class 2:
12/31/2019		20.79		.22		5.73			5.95			(.23	)		(.92	)		(1.15	)		25.59		29.15			981		1.01			.93
12/31/2018		25.07		.20		(3.61	)		(3.41	)		(.20	)		(.67	)		(.87	)		20.79		(14.04	)		843		1.02			.85
12/31/2017		19.54		.20		5.55			5.75			(.22	)		—			(.22	)		25.07		29.44			1,055		1.02			.89
12/31/2016		18.71		.19		.79			.98			(.15	)		—			(.15	)		19.54		5.26			911		1.03			1.00
12/31/2015		20.54		.14		(.69	)		(.55	)		(.12	)		(1.16	)		(1.28	)		18.71		(3.14	)		961		1.04			.68
Class 4:
12/31/2019		20.71		.16		5.70			5.86			(.18	)		(.92	)		(1.10	)		25.47		28.82			646		1.26			.67
12/31/2018		24.99		.14		(3.59	)		(3.45	)		(.16	)		(.67	)		(.83	)		20.71		(14.25	)		464		1.27			.61
12/31/2017		19.51		.14		5.52			5.66			(.18	)		—			(.18	)		24.99		29.06			427		1.27			.61
12/31/2016		18.69		.14		.80			.94			(.12	)		—			(.12	)		19.51		5.04			240		1.28			.75
12/31/2015		20.56		.08		(.68	)		(.60	)		(.11	)		(1.16	)		(1.27	)		18.69		(3.37	)		171		1.29			.39

194	American Funds Insurance Series

			Income (loss) from investment operations¹								Dividends and distributions
Period ended	Net asset value, beginning of period		Net investment income (loss)		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return			Net assets, end of period (in millions)			Ratio of expenses to average net assets²			Ratio of net income (loss) to average net assets

Blue Chip Income and Growth Fund

Class 1:
12/31/2019	$	12.38	$	.30	$	2.25		$	2.55		$	(.30	)	$	(1.07	)	$	(1.37	)	$	13.56		21.66	%	$	5,559			.42	%		2.28	%
12/31/2018		14.96		.31		(1.44	)		(1.13	)		(.31	)		(1.14	)		(1.45	)		12.38		(8.45	)		4,810			.41			2.13
12/31/2017		13.53		.32		1.96			2.28			(.32	)		(.53	)		(.85	)		14.96		17.30			5,581			.41			2.27
12/31/2016		12.62		.31		1.97			2.28			(.29	)		(1.08	)		(1.37	)		13.53		19.06			5,099			.41			2.39
12/31/2015		14.69		.31		(.64	)		(.33	)		(.29	)		(1.45	)		(1.74	)		12.62		(2.72	)		3,638			.41			2.23
Class 1A:
12/31/2019		12.35		.26		2.24			2.50			(.27	)		(1.07	)		(1.34	)		13.51		21.35			9			.67			2.03
12/31/2018		14.94		.26		(1.42	)		(1.16	)		(.29	)		(1.14	)		(1.43	)		12.35		(8.67	)		3			.66			1.84
12/31/2017^3,4		13.75		.28		1.75			2.03			(.31	)		(.53	)		(.84	)		14.94		15.21	⁵		1			.65	⁶		2.01	⁶
Class 2:
12/31/2019		12.24		.26		2.22			2.48			(.26	)		(1.07	)		(1.33	)		13.39		21.38			3,093			.67			2.03
12/31/2018		14.80		.27		(1.42	)		(1.15	)		(.27	)		(1.14	)		(1.41	)		12.24		(8.66	)		2,850			.66			1.88
12/31/2017		13.39		.28		1.94			2.22			(.28	)		(.53	)		(.81	)		14.80		17.04			3,551			.66			2.02
12/31/2016		12.51		.28		1.94			2.22			(.26	)		(1.08	)		(1.34	)		13.39		18.70			3,412			.66			2.16
12/31/2015		14.57		.27		(.62	)		(.35	)		(.26	)		(1.45	)		(1.71	)		12.51		(2.93	)		3,228			.66			1.97
Class 4:
12/31/2019		12.19		.23		2.20			2.43			(.24	)		(1.07	)		(1.31	)		13.31		21.03			621			.92			1.78
12/31/2018		14.77		.23		(1.42	)		(1.19	)		(.25	)		(1.14	)		(1.39	)		12.19		(8.92	)		368			.91			1.62
12/31/2017		13.39		.25		1.93			2.18			(.27	)		(.53	)		(.80	)		14.77		16.70			247			.91			1.76
12/31/2016		12.53		.24		1.96			2.20			(.26	)		(1.08	)		(1.34	)		13.39		18.49			132			.91			1.81
12/31/2015		14.63		.24		(.63	)		(.39	)		(.26	)		(1.45	)		(1.71	)		12.53		(3.21	)		32			.91			1.75

Global Growth and Income Fund

Class 1:
12/31/2019	$	13.02	$	.31	$	3.67		$	3.98		$	(.32	)	$	(.76	)	$	(1.08	)	$	15.92		31.39	%	$	625			.65	%		2.08	%
12/31/2018		15.81		.29		(1.62	)		(1.33	)		(.28	)		(1.18	)		(1.46	)		13.02		(9.36	)		492			.63			1.94
12/31/2017		13.02		.35		3.06			3.41			(.36	)		(.26	)		(.62	)		15.81		26.40			485			.63			2.43
12/31/2016		12.35		.28		.66			.94			(.27	)		—			(.27	)		13.02		7.61			571			.63			2.18
12/31/2015		12.78		.36		(.50	)		(.14	)		(.29	)		—			(.29	)		12.35		(1.14	)		293			.64			2.79
Class 1A:
12/31/2019		13.00		.26		3.68			3.94			(.30	)		(.76	)		(1.06	)		15.88		31.04			2			.90			1.77
12/31/2018		15.81		.26		(1.63	)		(1.37	)		(.26	)		(1.18	)		(1.44	)		13.00		(9.62	)		1			.88			1.74
12/31/2017^3,4		13.21		.18		3.03			3.21			(.35	)		(.26	)		(.61	)		15.81		24.54	⁵		—	⁷		.84	⁶		1.20	⁶
Class 2:
12/31/2019		12.99		.27		3.68			3.95			(.29	)		(.76	)		(1.05	)		15.89		31.14			1,366			.90			1.84
12/31/2018		15.78		.26		(1.63	)		(1.37	)		(.24	)		(1.18	)		(1.42	)		12.99		(9.63	)		1,228			.88			1.70
12/31/2017		13.00		.31		3.05			3.36			(.32	)		(.26	)		(.58	)		15.78		26.06			1,538			.88			2.11
12/31/2016		12.33		.25		.65			.90			(.23	)		—			(.23	)		13.00		7.34			1,405			.88			1.98
12/31/2015		12.75		.22		(.39	)		(.17	)		(.25	)		—			(.25	)		12.33		(1.34	)		1,479			.89			1.73
Class 4:
12/31/2019		12.81		.23		3.61			3.84			(.26	)		(.76	)		(1.02	)		15.63		30.73			145			1.15			1.56
12/31/2018		15.60		.21		(1.60	)		(1.39	)		(.22	)		(1.18	)		(1.40	)		12.81		(9.89	)		95			1.13			1.43
12/31/2017		12.89		.22		3.08			3.30			(.33	)		(.26	)		(.59	)		15.60		25.83			79			1.14			1.49
12/31/2016		12.26		.21		.65			.86			(.23	)		—			(.23	)		12.89		7.04			16			1.13			1.63
12/31/2015		12.71		.17		(.37	)		(.20	)		(.25	)		—			(.25	)		12.26		(1.60	)		5			1.14			1.32

See end of tables for footnotes.

American Funds Insurance Series

195

Financial highlights (continued)

			Income (loss) from investment operations¹								Dividends and distributions
Period ended	Net asset value, beginning of period		Net investment income (loss)		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return			Net assets, end of period (in millions)		Ratio of expenses to average net assets²			Ratio of net income (loss) to average net assets

Growth-Income Fund

Class 1:
12/31/2019	$	45.39	$	1.00	$	10.40		$	11.40		$	(.92	)	$	(5.16	)	$	(6.08	)	$	50.71		26.46	%	$	21,057		.29	%		2.05	%
12/31/2018		50.22		.84		(1.25	)		(.41	)		(.84	)		(3.58	)		(4.42	)		45.39		(1.55	)		16,783		.28			1.65
12/31/2017		44.41		.81		8.89			9.70			(.78	)		(3.11	)		(3.89	)		50.22		22.68			15,765		.28			1.69
12/31/2016		45.40		.79		4.09			4.88			(.75	)		(5.12	)		(5.87	)		44.41		11.80			12,588		.29			1.79
12/31/2015		52.76		.79		.37			1.16			(.75	)		(7.77	)		(8.52	)		45.40		1.72			10,747		.29			1.59
Class 1A:
12/31/2019		45.28		.89		10.36			11.25			(.83	)		(5.16	)		(5.99	)		50.54		26.14			11		.54			1.82
12/31/2018		50.15		.72		(1.25	)		(.53	)		(.76	)		(3.58	)		(4.34	)		45.28		(1.78	)		7		.53			1.43
12/31/2017^3,4		45.39		.67		7.96			8.63			(.76	)		(3.11	)		(3.87	)		50.15		19.83	⁵		2		.52	⁶		1.41	⁶
Class 2:
12/31/2019		44.90		.87		10.27			11.14			(.80	)		(5.16	)		(5.96	)		50.08		26.14			13,586		.53			1.80
12/31/2018		49.71		.71		(1.23	)		(.52	)		(.71	)		(3.58	)		(4.29	)		44.90		(1.79	)		12,035		.53			1.40
12/31/2017		44.00		.68		8.80			9.48			(.66	)		(3.11	)		(3.77	)		49.71		22.38			13,930		.53			1.45
12/31/2016		45.04		.67		4.05			4.72			(.64	)		(5.12	)		(5.76	)		44.00		11.51			12,854		.54			1.54
12/31/2015		52.41		.66		.37			1.03			(.63	)		(7.77	)		(8.40	)		45.04		1.45			12,895		.54			1.34
Class 3:
12/31/2019		45.47		.91		10.43			11.34			(.84	)		(5.16	)		(6.00	)		50.81		26.24			156		.46			1.87
12/31/2018		50.29		.75		(1.25	)		(.50	)		(.74	)		(3.58	)		(4.32	)		45.47		(1.72	)		140		.46			1.47
12/31/2017		44.47		.72		8.90			9.62			(.69	)		(3.11	)		(3.80	)		50.29		22.47			168		.46			1.52
12/31/2016		45.46		.71		4.09			4.80			(.67	)		(5.12	)		(5.79	)		44.47		11.59			156		.47			1.61
12/31/2015		52.82		.70		.37			1.07			(.66	)		(7.77	)		(8.43	)		45.46		1.53			161		.47			1.41
Class 4:
12/31/2019		44.47		.74		10.18			10.92			(.71	)		(5.16	)		(5.87	)		49.52		25.86			1,216		.79			1.56
12/31/2018		49.31		.58		(1.23	)		(.65	)		(.61	)		(3.58	)		(4.19	)		44.47		(2.05	)		899		.78			1.15
12/31/2017		43.73		.56		8.73			9.29			(.60	)		(3.11	)		(3.71	)		49.31		22.08			827		.78			1.19
12/31/2016		44.82		.56		4.02			4.58			(.55	)		(5.12	)		(5.67	)		43.73		11.25			495		.79			1.29
12/31/2015		52.39		.58		.33			.91			(.71	)		(7.77	)		(8.48	)		44.82		1.21			410		.79			1.25

International Growth and Income Fund

Class 1:
12/31/2019	$	15.35	$	.46	$	3.03		$	3.49		$	(.47	)	$	(.19	)	$	(.66	)	$	18.18		23.06	%	$	1,140		.66	%		2.73	%
12/31/2018		17.72		.45		(2.39	)		(1.94	)		(.43	)		—			(.43	)		15.35		(11.00	)		1,034		.65			2.62
12/31/2017		14.48		.46		3.20			3.66			(.42	)		—			(.42	)		17.72		25.31			1,121		.66			2.75
12/31/2016		14.72		.43		(.19	)		.24			(.42	)		(.06	)		(.48	)		14.48		1.71			820		.68			2.93
12/31/2015		16.27		.42		(1.25	)		(.83	)		(.38	)		(.34	)		(.72	)		14.72		(5.34	)		707		.68			2.60
Class 1A:
12/31/2019		15.33		.41		3.04			3.45			(.44	)		(.19	)		(.63	)		18.15		22.76			2		.91			2.41
12/31/2018		17.70		.41		(2.39	)		(1.98	)		(.39	)		—			(.39	)		15.33		(11.24	)		2		.90			2.35
12/31/2017^3,4		14.69		.34		3.08			3.42			(.41	)		—			(.41	)		17.70		23.36	⁵		2		.91	⁶		1.99	⁶
Class 2:
12/31/2019		15.30		.42		3.02			3.44			(.43	)		(.19	)		(.62	)		18.12		22.76			257		.91			2.49
12/31/2018		17.66		.41		(2.38	)		(1.97	)		(.39	)		—			(.39	)		15.30		(11.23	)		230		.90			2.38
12/31/2017		14.43		.43		3.17			3.60			(.37	)		—			(.37	)		17.66		25.03			276		.91			2.60
12/31/2016		14.68		.40		(.21	)		.19			(.38	)		(.06	)		(.44	)		14.43		1.44			244		.93			2.72
12/31/2015		16.22		.38		(1.24	)		(.86	)		(.34	)		(.34	)		(.68	)		14.68		(5.60	)		254		.93			2.32
Class 4:
12/31/2019		15.22		.37		3.01			3.38			(.40	)		(.19	)		(.59	)		18.01		22.47			101		1.16			2.18
12/31/2018		17.58		.36		(2.36	)		(2.00	)		(.36	)		—			(.36	)		15.22		(11.46	)		71		1.15			2.10
12/31/2017		14.38		.37		3.18			3.55			(.35	)		—			(.35	)		17.58		24.72			63		1.16			2.24
12/31/2016		14.63		.36		(.19	)		.17			(.36	)		(.06	)		(.42	)		14.38		1.18			37		1.18			2.43
12/31/2015		16.19		.33		(1.23	)		(.90	)		(.32	)		(.34	)		(.66	)		14.63		(5.82	)		32		1.18			2.02

196	American Funds Insurance Series

			Income (loss) from investment operations¹								Dividends and distributions
Period ended	Net asset value, beginning of period		Net investment income (loss)		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return			Net assets, end of period (in millions)			Ratio of expenses to average net assets²			Ratio of net income (loss) to average net assets

Capital Income Builder

Class 1:
12/31/2019	$	9.37	$	.32	$	1.36		$	1.68		$	(.32	)	$	—		$	(.32	)	$	10.73		18.16	%	$	533			.53	%		3.17	%
12/31/2018		10.40		.31		(1.00	)		(.69	)		(.32	)		(.02	)		(.34	)		9.37		(6.77	)		317			.54			3.08
12/31/2017		9.46		.32		.93			1.25			(.31	)		—			(.31	)		10.40		13.29			254			.54			3.21
12/31/2016		9.40		.32		.07			.39			(.33	)		—			(.33	)		9.46		4.17			156			.54			3.39
12/31/2015		9.81		.28		(.40	)		(.12	)		(.29	)		—			(.29	)		9.40		(1.23	)		80			.56			2.88
Class 1A:
12/31/2019		9.36		.29		1.37			1.66			(.30	)		—			(.30	)		10.72		17.90			6			.78			2.84
12/31/2018		10.39		.28		(.99	)		(.71	)		(.30	)		(.02	)		(.32	)		9.36		(7.01	)		2			.79			2.82
12/31/2017^3,4		9.57		.27		.84			1.11			(.29	)		—			(.29	)		10.39		11.72	⁵		1			.79	⁶		2.63	⁶
Class 2:
12/31/2019		9.36		.30		1.35			1.65			(.29	)		—			(.29	)		10.72		17.89			6			.78			2.91
12/31/2018		10.40		.28		(1.00	)		(.72	)		(.30	)		(.02	)		(.32	)		9.36		(7.08	)		4			.79			2.83
12/31/2017		9.46		.29		.93			1.22			(.28	)		—			(.28	)		10.40		13.04			1			.79			2.82
12/31/2016		9.40		.27		.11			.38			(.32	)		—			(.32	)		9.46		4.08			—	⁷		.80			2.82
12/31/2015		9.81		.31		(.43	)		(.12	)		(.29	)		—			(.29	)		9.40		(1.23	)¹⁰		—	⁷		.46	¹⁰		3.12	¹⁰
Class 4:
12/31/2019		9.35		.27		1.36			1.63			(.27	)		—			(.27	)		10.71		17.62			454			1.03			2.68
12/31/2018		10.38		.26		(1.00	)		(.74	)		(.27	)		(.02	)		(.29	)		9.35		(7.25	)		352			1.04			2.58
12/31/2017		9.45		.27		.92			1.19			(.26	)		—			(.26	)		10.38		12.65			338			1.04			2.72
12/31/2016		9.38		.27		.08			.35			(.28	)		—			(.28	)		9.45		3.78			256			1.04			2.88
12/31/2015		9.80		.25		(.42	)		(.17	)		(.25	)		—			(.25	)		9.38		(1.79	)		157			1.05			2.55

Asset Allocation Fund

Class 1:
12/31/2019	$	21.29	$	.51	$	3.94		$	4.45		$	(.50	)	$	(1.19	)	$	(1.69	)	$	24.05		21.54	%	$	17,730			.29	%		2.21	%
12/31/2018		23.71		.48		(1.43	)		(.95	)		(.44	)		(1.03	)		(1.47	)		21.29		(4.35	)		14,627			.28			2.04
12/31/2017		21.68		.44		3.06			3.50			(.41	)		(1.06	)		(1.47	)		23.71		16.51			16,556			.29			1.90
12/31/2016		20.62		.42		1.54			1.96			(.39	)		(.51	)		(.90	)		21.68		9.69			13,008			.29			1.97
12/31/2015		22.23		.40		(.02	)		.38			(.40	)		(1.59	)		(1.99	)		20.62		1.64			10,913			.29			1.85
Class 1A:
12/31/2019		21.26		.45		3.92			4.37			(.45	)		(1.19	)		(1.64	)		23.99		21.19			11			.54			1.95
12/31/2018		23.69		.42		(1.42	)		(1.00	)		(.40	)		(1.03	)		(1.43	)		21.26		(4.58	)		7			.53			1.82
12/31/2017^3,4		21.97		.39		2.78			3.17			(.39	)		(1.06	)		(1.45	)		23.69		14.78	⁵		4			.53	⁶		1.69	⁶
Class 2:
12/31/2019		21.08		.45		3.89			4.34			(.44	)		(1.19	)		(1.63	)		23.79		21.23			5,154			.54			1.96
12/31/2018		23.49		.41		(1.41	)		(1.00	)		(.38	)		(1.03	)		(1.41	)		21.08		(4.60	)		4,668			.53			1.78
12/31/2017		21.49		.37		3.04			3.41			(.35	)		(1.06	)		(1.41	)		23.49		16.23			5,480			.54			1.64
12/31/2016		20.45		.36		1.53			1.89			(.34	)		(.51	)		(.85	)		21.49		9.41			5,144			.54			1.72
12/31/2015		22.06		.34		(.01	)		.33			(.35	)		(1.59	)		(1.94	)		20.45		1.40			5,008			.54			1.60
Class 3:
12/31/2019		21.32		.47		3.93			4.40			(.45	)		(1.19	)		(1.64	)		24.08		21.30			32			.47			2.02
12/31/2018		23.73		.43		(1.41	)		(.98	)		(.40	)		(1.03	)		(1.43	)		21.32		(4.49	)		29			.46			1.85
12/31/2017		21.70		.39		3.07			3.46			(.37	)		(1.06	)		(1.43	)		23.73		16.29			38			.47			1.72
12/31/2016		20.64		.38		1.54			1.92			(.35	)		(.51	)		(.86	)		21.70		9.49			35			.47			1.79
12/31/2015		22.25		.36		(.02	)		.34			(.36	)		(1.59	)		(1.95	)		20.64		1.46			36			.47			1.67
Class 4:
12/31/2019		20.99		.39		3.87			4.26			(.39	)		(1.19	)		(1.58	)		23.67		20.92			4,493			.79			1.71
12/31/2018		23.40		.35		(1.40	)		(1.05	)		(.33	)		(1.03	)		(1.36	)		20.99		(4.83	)		3,594			.78			1.54
12/31/2017		21.43		.32		3.02			3.34			(.31	)		(1.06	)		(1.37	)		23.40		15.91			3,582			.79			1.40
12/31/2016		20.40		.31		1.53			1.84			(.30	)		(.51	)		(.81	)		21.43		9.16			2,861			.79			1.47
12/31/2015		22.11		.30		(.02	)		.28			(.40	)		(1.59	)		(1.99	)		20.40		1.14			2,414			.79			1.45

See end of tables for footnotes.

American Funds Insurance Series

197

Financial highlights (continued)

			Income (loss) from investment operations¹								Dividends and distributions
Period ended	Net asset value, beginning of period		Net investment income (loss)		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return			Net assets, end of period (in millions)			Ratio of expenses to average net assets²			Ratio of net income (loss) to average net assets

Global Balanced Fund

Class 1:
12/31/2019	$	11.67	$	.24	$	2.17		$	2.41		$	(.20	)	$	(.37	)	$	(.57	)	$	13.51		20.79	%	$	134			.72	%		1.88	%
12/31/2018		12.75		.23		(.96	)		(.73	)		(.20	)		(.15	)		(.35	)		11.67		(5.81	)		110			.72			1.82
12/31/2017		11.08		.21		1.99			2.20			(.15	)		(.38	)		(.53	)		12.75		19.91			93			.72			1.68
12/31/2016		10.74		.19		.32			.51			(.17	)		—			(.17	)		11.08		4.73			64			.72			1.73
12/31/2015		11.11		.20		(.28	)		(.08	)		(.14	)		(.15	)		(.29	)		10.74		(.69	)		47			.72			1.80
Class 1A:
12/31/2019		11.65		.21		2.17			2.38			(.17	)		(.37	)		(.54	)		13.49		20.54			2			.97			1.63
12/31/2018		12.74		.18		(.94	)		(.76	)		(.18	)		(.15	)		(.33	)		11.65		(6.03	)		2			.98			1.44
12/31/2017^3,4		11.18		.16		1.92			2.08			(.14	)		(.38	)		(.52	)		12.74		18.71	⁵		—	⁷		.94	⁶		1.27	⁶
Class 2:
12/31/2019		11.65		.21		2.16			2.37			(.17	)		(.37	)		(.54	)		13.48		20.44			207			.97			1.64
12/31/2018		12.72		.20		(.96	)		(.76	)		(.16	)		(.15	)		(.31	)		11.65		(6.01	)		185			.97			1.57
12/31/2017		11.06		.18		1.98			2.16			(.12	)		(.38	)		(.50	)		12.72		19.57			210			.96			1.43
12/31/2016		10.72		.16		.32			.48			(.14	)		—			(.14	)		11.06		4.48			178			.97			1.48
12/31/2015		11.09		.18		(.28	)		(.10	)		(.12	)		(.15	)		(.27	)		10.72		(.95	)		171			.97			1.60
Class 4:
12/31/2019		11.55		.18		2.14			2.32			(.14	)		(.37	)		(.51	)		13.36		20.21			94			1.22			1.37
12/31/2018		12.63		.17		(.96	)		(.79	)		(.14	)		(.15	)		(.29	)		11.55		(6.31	)		69			1.22			1.34
12/31/2017		11.00		.13		1.99			2.12			(.11	)		(.38	)		(.49	)		12.63		19.38			51			1.22			1.07
12/31/2016		10.69		.12		.33			.45			(.14	)		—			(.14	)		11.00		4.21			10			1.24			1.12
12/31/2015		11.09		.06		(.17	)		(.11	)		(.14	)		(.15	)		(.29	)		10.69		(1.00	)		1			1.34			.58

Bond Fund

Class 1:
12/31/2019	$	10.47	$	.30	$	.71		$	1.01		$	(.31	)	$	—		$	(.31	)	$	11.17		9.70	%	$	6,481			.39	%		2.76	%
12/31/2018		10.82		.29		(.35	)		(.06	)		(.28	)		(.01	)		(.29	)		10.47		(.45	)		5,962			.38			2.70
12/31/2017		10.80		.24		.18			.42			(.24	)		(.16	)		(.40	)		10.82		3.88			6,434			.38			2.19
12/31/2016		10.70		.21		.14			.35			(.21	)		(.04	)		(.25	)		10.80		3.27			6,829			.38			1.91
12/31/2015		11.08		.22		(.17	)		.05			(.21	)		(.22	)		(.43	)		10.70		.45			5,731			.38			1.95
Class 1A:
12/31/2019		10.45		.27		.71			.98			(.30	)		—			(.30	)		11.13		9.36			7			.64			2.48
12/31/2018		10.80		.26		(.33	)		(.07	)		(.27	)		(.01	)		(.28	)		10.45		(.60	)		3			.63			2.50
12/31/2017^3,4		10.82		.22		.15			.37			(.23	)		(.16	)		(.39	)		10.80		3.46	⁵		1			.62	⁶		2.01	⁶
Class 2:
12/31/2019		10.34		.27		.70			.97			(.29	)		—			(.29	)		11.02		9.36			3,561			.64			2.51
12/31/2018		10.69		.26		(.34	)		(.08	)		(.26	)		(.01	)		(.27	)		10.34		(.71	)		3,524			.63			2.45
12/31/2017		10.67		.21		.18			.39			(.21	)		(.16	)		(.37	)		10.69		3.67			3,966			.63			1.94
12/31/2016		10.58		.18		.13			.31			(.18	)		(.04	)		(.22	)		10.67		2.95			3,959			.63			1.65
12/31/2015		10.95		.18		(.15	)		.03			(.18	)		(.22	)		(.40	)		10.58		.28			4,135			.63			1.69
Class 4:
12/31/2019		10.33		.24		.70			.94			(.27	)		—			(.27	)		11.00		9.08			502			.89			2.25
12/31/2018		10.68		.23		(.33	)		(.10	)		(.24	)		(.01	)		(.25	)		10.33		(.89	)		366			.88			2.22
12/31/2017		10.70		.19		.16			.35			(.21	)		(.16	)		(.37	)		10.68		3.29			297			.88			1.72
12/31/2016		10.61		.15		.15			.30			(.17	)		(.04	)		(.21	)		10.70		2.80			102			.88			1.41
12/31/2015		11.01		.16		(.16	)		—			(.18	)		(.22	)		(.40	)		10.61		(.08	)		59			.88			1.47

198	American Funds Insurance Series

			Income (loss) from investment operations¹								Dividends and distributions
Period ended	Net asset value, beginning of period		Net investment income (loss)		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return			Net assets, end of period (in millions)			Ratio of expenses to average net assets²			Ratio of net income (loss) to average net assets

Global Bond Fund

Class 1:
12/31/2019	$	11.42	$	.31	$	.61		$	.92		$	(.22	)	$	—		$	(.22	)	$	12.12		8.08	%	$	1,077			.58	%		2.60	%
12/31/2018		11.88		.30		(.44	)		(.14	)		(.28	)		(.04	)		(.32	)		11.42		(1.14	)		1,015			.57			2.56
12/31/2017		11.22		.28		.52			.80			(.07	)		(.07	)		(.14	)		11.88		7.11			1,273			.56			2.37
12/31/2016		11.01		.26		.06			.32			(.09	)		(.02	)		(.11	)		11.22		2.92			1,115			.57			2.26
12/31/2015		11.77		.27		(.71	)		(.44	)		(.01	)		(.31	)		(.32	)		11.01		(3.75	)		1,032			.57			2.34
Class 1A:
12/31/2019		11.41		.28		.60			.88			(.19	)		—			(.19	)		12.10		7.75			1			.83			2.35
12/31/2018		11.87		.27		(.43	)		(.16	)		(.26	)		(.04	)		(.30	)		11.41		(1.29	)		1			.82			2.36
12/31/2017^3,4		11.22		.26		.52			.78			(.06	)		(.07	)		(.13	)		11.87		7.00	⁵		—	⁷		.72	⁶		2.27	⁶
Class 2:
12/31/2019		11.34		.28		.60			.88			(.19	)		—			(.19	)		12.03		7.77			1,002			.83			2.35
12/31/2018		11.79		.27		(.43	)		(.16	)		(.25	)		(.04	)		(.29	)		11.34		(1.33	)		1,032			.82			2.32
12/31/2017		11.14		.25		.51			.76			(.04	)		(.07	)		(.11	)		11.79		6.86			1,164			.81			2.12
12/31/2016		10.93		.23		.07			.30			(.07	)		(.02	)		(.09	)		11.14		2.71			1,121			.82			2.01
12/31/2015		11.72		.24		(.71	)		(.47	)		(.01	)		(.31	)		(.32	)		10.93		(4.07	)		1,208			.82			2.09
Class 4:
12/31/2019		11.24		.24		.60			.84			(.16	)		—			(.16	)		11.92		7.54			49			1.08			2.09
12/31/2018		11.70		.24		(.43	)		(.19	)		(.23	)		(.04	)		(.27	)		11.24		(1.61	)		40			1.07			2.09
12/31/2017		11.08		.22		.51			.73			(.04	)		(.07	)		(.11	)		11.70		6.63			31			1.06			1.89
12/31/2016		10.89		.20		.06			.26			(.05	)		(.02	)		(.07	)		11.08		2.42			12			1.07			1.76
12/31/2015		11.70		.21		(.71	)		(.50	)		—	⁸		(.31	)		(.31	)		10.89		(4.27	)		6			1.07			1.86

High-Income Bond Fund

Class 1:
12/31/2019	$	9.34	$	.67	$	.52		$	1.19		$	(.66	)	$	—		$	(.66	)	$	9.87		12.85	%	$	525			.51	%		6.71	%
12/31/2018		10.19		.64		(.84	)		(.20	)		(.65	)		—			(.65	)		9.34		(2.15	)		501			.50			6.32
12/31/2017		10.18		.63		.10			.73			(.72	)		—			(.72	)		10.19		7.25			632			.49			5.98
12/31/2016		9.19		.61		1.02			1.63			(.64	)		—			(.64	)		10.18		17.83			949			.49			6.18
12/31/2015		10.54		.64		(1.36	)		(.72	)		(.63	)		—			(.63	)		9.19		(6.94	)		1,017			.48			6.12
Class 1A:
12/31/2019		9.33		.65		.51			1.16			(.63	)		—			(.63	)		9.86		12.61			1			.75			6.47
12/31/2018		10.18		.62		(.84	)		(.22	)		(.63	)		—			(.63	)		9.33		(2.35	)		1			.75			6.11
12/31/2017^3,4		10.28		.60		.02			.62			(.72	)		—			(.72	)		10.18		6.02	⁵		—	⁷		.72	⁶		5.74	⁶
Class 2:
12/31/2019		9.19		.64		.50			1.14			(.63	)		—			(.63	)		9.70		12.55			667			.76			6.45
12/31/2018		10.03		.61		(.83	)		(.22	)		(.62	)		—			(.62	)		9.19		(2.34	)		661			.75			6.07
12/31/2017		10.04		.59		.10			.69			(.70	)		—			(.70	)		10.03		6.89			776			.74			5.72
12/31/2016		9.06		.58		1.01			1.59			(.61	)		—			(.61	)		10.04		17.69			799			.74			5.92
12/31/2015		10.41		.60		(1.35	)		(.75	)		(.60	)		—			(.60	)		9.06		(7.30	)		765			.73			5.85
Class 3:
12/31/2019		9.38		.66		.52			1.18			(.64	)		—			(.64	)		9.92		12.70			10			.69			6.52
12/31/2018		10.23		.63		(.85	)		(.22	)		(.63	)		—			(.63	)		9.38		(2.33	)		10			.68			6.14
12/31/2017		10.22		.61		.10			.71			(.70	)		—			(.70	)		10.23		7.02			12			.67			5.79
12/31/2016		9.22		.59		1.03			1.62			(.62	)		—			(.62	)		10.22		17.68			13			.67			5.99
12/31/2015		10.57		.62		(1.37	)		(.75	)		(.60	)		—			(.60	)		9.22		(7.13	)		12			.66			5.91
Class 4:
12/31/2019		9.96		.67		.54			1.21			(.61	)		—			(.61	)		10.56		12.27			63			1.01			6.21
12/31/2018		10.82		.63		(.90	)		(.27	)		(.59	)		—			(.59	)		9.96		(2.64	)		31			1.00			5.83
12/31/2017		10.79		.61		.10			.71			(.68	)		—			(.68	)		10.82		6.63			34			.99			5.46
12/31/2016		9.73		.60		1.07			1.67			(.61	)		—			(.61	)		10.79		17.29			21			.99			5.55
12/31/2015		11.05		.62		(1.43	)		(.81	)		(.51	)		—			(.51	)		9.73		(7.42	)		1			.98			5.51

See end of tables for footnotes.

American Funds Insurance Series

199

Financial highlights (continued)

			Income (loss) from investment operations¹									Dividends and distributions
Period ended	Net asset value, beginning of period		Net investment income (loss)			Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return			Net assets, end of period (in millions)			Ratio of expenses to average net assets²			Ratio of net income (loss) to average net assets

Mortgage Fund

Class 1:
12/31/2019	$	10.30	$	.24		$	.30		$	.54		$	(.28	)	$	—		$	(.28	)	$	10.56		5.30	%	$	210			.47	%		2.26	%
12/31/2018		10.47		.20			(.14	)		.06			(.23	)		—			(.23	)		10.30		.58			209			.48			1.97
12/31/2017		10.56		.16			—	⁸		.16			(.18	)		(.07	)		(.25	)		10.47		1.47			265			.47			1.52
12/31/2016		10.61		.15			.11			.26			(.20	)		(.11	)		(.31	)		10.56		2.50			269			.46			1.39
12/31/2015		10.70		.10			.13			.23			(.18	)		(.14	)		(.32	)		10.61		2.09			272			.45			.89
Class 1A:
12/31/2019		10.28		.22			.30			.52			(.25	)		—			(.25	)		10.55		5.09			1			.71			2.04
12/31/2018		10.46		.18			(.14	)		.04			(.22	)		—			(.22	)		10.28		.36			1			.73			1.77
12/31/2017^3,4		10.55		.14			—	⁸		.14			(.16	)		(.07	)		(.23	)		10.46		1.31	⁵		—	⁷		.70	⁶		1.38	⁶
Class 2:
12/31/2019		10.28		.21			.31			.52			(.26	)		—			(.26	)		10.54		5.04			56			.72			2.01
12/31/2018		10.45		.18			(.15	)		.03			(.20	)		—			(.20	)		10.28		.32			57			.73			1.72
12/31/2017		10.54		.14			(.01	)		.13			(.15	)		(.07	)		(.22	)		10.45		1.22			63			.72			1.27
12/31/2016		10.59		.12			.12			.24			(.18	)		(.11	)		(.29	)		10.54		2.25			63			.71			1.14
12/31/2015		10.68		.07			.13			.20			(.15	)		(.14	)		(.29	)		10.59		1.86			59			.70			.65
Class 4:
12/31/2019		10.19		.18			.31			.49			(.24	)		—			(.24	)		10.44		4.80			28			.97			1.71
12/31/2018		10.38		.15			(.15	)		—	⁸		(.19	)		—			(.19	)		10.19		.07			24			.98			1.49
12/31/2017		10.48		.11			—	⁸		.11			(.14	)		(.07	)		(.21	)		10.38		.97			12			.97			1.03
12/31/2016		10.52		.09			.12			.21			(.14	)		(.11	)		(.25	)		10.48		2.01			8			.96			.86
12/31/2015		10.65		.04			.14			.18			(.17	)		(.14	)		(.31	)		10.52		1.62			11			.97			.37

Ultra-Short Bond Fund

Class 1:
12/31/2019	$	11.31	$	.22		$	—	⁸	$	.22		$	(.23	)	$	—		$	(.23	)	$	11.30		1.92	%	$	30			.36	%		1.92	%
12/31/2018		11.29		.18			—	⁸		.18			(.16	)		—			(.16	)		11.31		1.58			37			.35			1.60
12/31/2017		11.27		.08			(.01	)		.07			(.05	)		—			(.05	)		11.29		.66			37			.35			.68
12/31/2016¹¹		11.26		.01			—	⁸		.01			—			—			—			11.27		.09			37			.35			.11
12/31/2015		11.28		(.03	)		.01			(.02	)		—			—			—			11.26		(.18	)		39			.34			(.24	)
Class 1A:
12/31/2019		11.31		.22			—	⁸		.22			(.23	)		—			(.23	)		11.30		1.92	¹⁰		—	⁷		.37	¹⁰		1.90	¹⁰
12/31/2018		11.29		.18			—	⁸		.18			(.16	)		—			(.16	)		11.31		1.58	¹⁰		—	⁷		.35	¹⁰		1.60	¹⁰
12/31/2017^3,4		11.27		.08			—	⁸		.08			(.06	)		—			(.06	)		11.29		.67	^5,10		—	⁷		.34	^6,10		.69	^6,10
Class 2:
12/31/2019		11.03		.18			—	⁸		.18			(.20	)		—			(.20	)		11.01		1.62			230			.61			1.66
12/31/2018		11.01		.15			—	⁸		.15			(.13	)		—			(.13	)		11.03		1.36			247			.60			1.34
12/31/2017		10.99		.05			—	⁸		.05			(.03	)		—			(.03	)		11.01		.46			249			.60			.42
12/31/2016¹¹		11.01		(.02	)		—	⁸		(.02	)		—			—			—			10.99		(.18	)		297			.60			(.14	)
12/31/2015		11.06		(.05	)		—	⁸		(.05	)		—			—			—			11.01		(.45	)		302			.59			(.49	)
Class 3:
12/31/2019		11.14		.20			—	⁸		.20			(.21	)		—			(.21	)		11.13		1.76			3			.54			1.74
12/31/2018		11.12		.16			(.01	)		.15			(.13	)		—			(.13	)		11.14		1.38			4			.53			1.42
12/31/2017		11.10		.06			—	⁸		.06			(.04	)		—			(.04	)		11.12		.54			4			.53			.50
12/31/2016¹¹		11.11		(.01	)		—	⁸		(.01	)		—			—			—			11.10		(.09	)		4			.53			(.08	)
12/31/2015		11.16		(.05	)		—	⁸		(.05	)		—			—			—			11.11		(.45	)		6			.52			(.42	)
Class 4:
12/31/2019		11.15		.16			—	⁸		.16			(.18	)		—			(.18	)		11.13		1.40			22			.86			1.40
12/31/2018		11.13		.12			.01			.13			(.11	)		—			(.11	)		11.15		1.14			18			.86			1.11
12/31/2017		11.12		.02			—	⁸		.02			(.01	)		—			(.01	)		11.13		.16			15			.85			.19
12/31/2016¹¹		11.17		(.04	)		(.01	)		(.05	)		—			—			—			11.12		(.45	)		13			.85			(.40	)
12/31/2015		11.25		(.08	)		—	⁸		(.08	)		—			—			—			11.17		(.71	)		16			.85			(.74	)

200	American Funds Insurance Series

			Income (loss) from investment operations¹							Dividends and distributions
Period ended	Net asset value, beginning of period		Net investment income (loss)		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations		Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return			Net assets, end of period (in millions)			Ratio of expenses to average net assets²			Ratio of net income (loss) to average net assets

U.S. Government/AAA-Rated Securities Fund

Class 1:
12/31/2019	$	11.94	$	.25	$	.43		$	.68	$	(.28	)	$	—		$	(.28	)	$	12.34		5.69	%	$	1,418			.37	%		2.07	%
12/31/2018		12.08		.24		(.13	)		.11		(.25	)		—			(.25	)		11.94		.91			1,445			.36			2.02
12/31/2017		12.05		.21		.01			.22		(.19	)		—			(.19	)		12.08		1.83			1,558			.36			1.68
12/31/2016		12.31		.16		.03			.19		(.20	)		(.25	)		(.45	)		12.05		1.44			1,467			.36			1.31
12/31/2015		12.40		.13		.09			.22		(.21	)		(.10	)		(.31	)		12.31		1.93			1,426			.35			1.02
Class 1A:
12/31/2019		11.93		.22		.43			.65		(.26	)		—			(.26	)		12.32		5.42			2			.62			1.82
12/31/2018		12.08		.22		(.14	)		.08		(.23	)		—			(.23	)		11.93		.70			1			.61			1.82
12/31/2017^3,4		12.05		.18		.03			.21		(.18	)		—			(.18	)		12.08		1.73	⁵		—	⁷		.58	⁶		1.53	⁶
Class 2:
12/31/2019		11.82		.22		.42			.64		(.25	)		—			(.25	)		12.21		5.31			1,343			.62			1.82
12/31/2018		11.96		.21		(.14	)		.07		(.21	)		—			(.21	)		11.82		.73			1,323			.61			1.77
12/31/2017		11.93		.17		.02			.19		(.16	)		—			(.16	)		11.96		1.59			1,473			.61			1.43
12/31/2016		12.20		.13		.02			.15		(.17	)		(.25	)		(.42	)		11.93		1.19			1,503			.61			1.05
12/31/2015		12.29		.10		.09			.19		(.18	)		(.10	)		(.28	)		12.20		1.59			1,579			.60			.79
Class 3:
12/31/2019		11.97		.23		.43			.66		(.26	)		—			(.26	)		12.37		5.49			9			.55			1.88
12/31/2018		12.11		.22		(.14	)		.08		(.22	)		—			(.22	)		11.97		.71			9			.54			1.84
12/31/2017		12.07		.18		.03			.21		(.17	)		—			(.17	)		12.11		1.72			10			.54			1.50
12/31/2016		12.34		.14		.02			.16		(.18	)		(.25	)		(.43	)		12.07		1.24			11			.54			1.12
12/31/2015		12.43		.11		.09			.20		(.19	)		(.10	)		(.29	)		12.34		1.64			11			.53			.85
Class 4:
12/31/2019		11.84		.19		.42			.61		(.23	)		—			(.23	)		12.22		5.14			124			.87			1.56
12/31/2018		11.98		.18		(.12	)		.06		(.20	)		—			(.20	)		11.84		.50			91			.86			1.53
12/31/2017		11.96		.14		.01			.15		(.13	)		—			(.13	)		11.98		1.28			62			.86			1.18
12/31/2016		12.22		.10		.03			.13		(.14	)		(.25	)		(.39	)		11.96		.99			57			.86			.82
12/31/2015		12.34		.07		.08			.15		(.17	)		(.10	)		(.27	)		12.22		1.29			46			.85			.56

See end of tables for footnotes.

American Funds Insurance Series

201

Financial highlights (continued)

			Income from investment operations¹									Dividends and distributions																	Ratio of expenses			Ratio of expenses
Period ended	Net asset value, beginning of period		Net investment income (loss)			Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distribu- tions (from capital gains)			Total dividends and distribu- tions			Net asset value, end of period		Total return¹²			Net assets, end of period (in millions)			to average net assets before waivers/ reimburse- ments			to average net assets after waivers/ reimburse- ments¹²			Net effective expense ratio^12,13			Ratio of net income to average net assets¹²

Managed Risk Growth Fund

Class P1:
12/31/2019	$	12.30	$	.15		$	2.44		$	2.59		$	(.19	)	$	(.92	)	$	(1.11	)	$	13.78		22.01	%	$	6			.42	%		.37	%		.73	%		1.19	%
12/31/2018		13.22		.11			(.04	)		.07			(.10	)		(.89	)		(.99	)		12.30		(.04	)¹⁰		3			.42	¹⁰		.37	¹⁰		.71	¹⁰		.82	¹⁰
12/31/2017		10.71		.08			2.70			2.78			(.07	)		(.20	)		(.27	)		13.22		26.23	¹⁰		2			.42	¹⁰		.36	¹⁰		.70	¹⁰		.69	¹⁰
12/31/2016		11.49		.08			.20			.28			(.05	)		(1.01	)		(1.06	)		10.71		2.89	¹⁰		1			.50	¹⁰		.34	¹⁰		.68	¹⁰		.79	¹⁰
12/31/2015		11.37		.09			.03			.12			—			—			—			11.49		1.06	¹⁰		—	⁷		.53	¹⁰		.29	¹⁰		.63	¹⁰		.80	¹⁰
Class P2:
12/31/2019		12.21		.09			2.45			2.54			(.12	)		(.92	)		(1.04	)		13.71		21.74			434			.68			.63			.99			.73
12/31/2018		13.14		.06			(.04	)		.02			(.06	)		(.89	)		(.95	)		12.21		(.37	)		340			.68			.63			.97			.46
12/31/2017		10.64		.04			2.70			2.74			(.04	)		(.20	)		(.24	)		13.14		25.99			286			.69			.63			.97			.34
12/31/2016		11.43		.05			.19			.24			(.02	)		(1.01	)		(1.03	)		10.64		2.52			200			.79			.63			.97			.43
12/31/2015		11.35		.04			.04			.08			—			—			—			11.43		.71			146			.89			.66			1.00			.31

Managed Risk International Fund

Class P1:
12/31/2019	$	9.82	$	.17		$	1.54		$	1.71		$	(.20	)	$	(.32	)	$	(.52	)	$	11.01		17.91	%¹⁰	$	1			.41	%¹⁰		.33	%¹⁰		.84	%¹⁰		1.64	%¹⁰
12/31/2018		11.25		.32			(1.44	)		(1.12	)		(.26	)		(.05	)		(.31	)		9.82		(10.11	)¹⁰		—	⁷		.33	¹⁰		.28	¹⁰		.77	¹⁰		3.02	¹⁰
12/31/2017		8.89		.11			2.47			2.58			(.10	)		(.12	)		(.22	)		11.25		29.28	¹⁰		—	⁷		.28	¹⁰		.20	¹⁰		.69	¹⁰		1.13	¹⁰
12/31/2016		9.48		.10			(.35	)		(.25	)		(.12	)		(.22	)		(.34	)		8.89		(2.59	)¹⁰		—	⁷		.39	¹⁰		.23	¹⁰		.74	¹⁰		1.15	¹⁰
12/31/2015		10.10		.18			(.80	)		(.62	)		—	⁸		—			—	⁸		9.48		(6.12	)¹⁰		—	⁷		.45	¹⁰		.21	¹⁰		.72	¹⁰		1.75	¹⁰
Class P2:
12/31/2019		9.76		.13			1.55			1.68			(.20	)		(.32	)		(.52	)		10.92		17.64			165			.71			.63			1.14			1.21
12/31/2018		11.15		.16			(1.32	)		(1.16	)		(.18	)		(.05	)		(.23	)		9.76		(10.50	)		151			.69			.64			1.13			1.49
12/31/2017		8.83		.11			2.41			2.52			(.08	)		(.12	)		(.20	)		11.15		28.69			148			.71			.63			1.12			1.03
12/31/2016		9.43		.09			(.38	)		(.29	)		(.09	)		(.22	)		(.31	)		8.83		(3.05	)		97			.79			.63			1.14			.97
12/31/2015		10.09		.13			(.79	)		(.66	)		—	⁸		—			—	⁸		9.43		(6.52	)		83			.90			.66			1.17			1.30

Managed Risk Blue Chip Income and Growth Fund

Class P1:
12/31/2019	$	11.28	$	.25		$	1.28		$	1.53		$	(.20	)	$	(.60	)	$	(.80	)	$	12.01		14.14	%¹⁰	$	1			.38	%¹⁰		.33	%¹⁰		.74	%¹⁰		2.14	%¹⁰
12/31/2018		13.04		.40			(1.27	)		(.87	)		(.45	)		(.44	)		(.89	)		11.28		(6.99	)¹⁰		—	⁷		.33	¹⁰		.28	¹⁰		.67	¹⁰		3.21	¹⁰
12/31/2017		11.67		.19			1.59			1.78			(.22	)		(.19	)		(.41	)		13.04		15.48	¹⁰		—	⁷		.30	¹⁰		.25	¹⁰		.64	¹⁰		1.59	¹⁰
12/31/2016		10.80		.20			1.25			1.45			(.21	)		(.37	)		(.58	)		11.67		13.77	¹⁰		—	⁷		.43	¹⁰		.27	¹⁰		.67	¹⁰		1.83	¹⁰
12/31/2015		11.70		.19			(1.02	)		(.83	)		(.07	)		—			(.07	)		10.80		(7.07	)¹⁰		—	⁷		.50	¹⁰		.27	¹⁰		.66	¹⁰		1.64	¹⁰
Class P2:
12/31/2019		11.21		.18			1.31			1.49			(.19	)		(.60	)		(.79	)		11.91		13.88			365			.68			.63			1.04			1.62
12/31/2018		12.96		.19			(1.10	)		(.91	)		(.40	)		(.44	)		(.84	)		11.21		(7.38	)		336			.68			.63			1.02			1.49
12/31/2017		11.61		.17			1.55			1.72			(.18	)		(.19	)		(.37	)		12.96		15.03			367			.68			.63			1.02			1.43
12/31/2016		10.76		.23			1.18			1.41			(.19	)		(.37	)		(.56	)		11.61		13.39			291			.79			.63			1.03			2.04
12/31/2015		11.67		.18			(1.05	)		(.87	)		(.04	)		—			(.04	)		10.76		(7.43	)		137			.89			.66			1.05			1.57

Managed Risk Growth-Income Fund

Class P1:
12/31/2019	$	11.73	$	.22		$	2.01		$	2.23		$	(.10	)	$	(.10	)	$	(.20	)	$	13.76		19.14	%	$	1,987			.42	%		.37	%		.67	%		1.71	%
12/31/2018		12.66		(.02	)		(.15	)		(.17	)		(.19	)		(.57	)		(.76	)		11.73		(1.66	)		1,662			.40			.35			.64			(.20	)
12/31/2017		11.07		.19			2.03			2.22			(.13	)		(.50	)		(.63	)		12.66		20.64	¹⁰		2			.44	¹⁰		.37	¹⁰		.66	¹⁰		1.61	¹⁰
12/31/2016		11.25		.16			.52			.68			(.16	)		(.70	)		(.86	)		11.07		6.49	¹⁰		1			.52	¹⁰		.36	¹⁰		.64	¹⁰		1.46	¹⁰
12/31/2015		11.67		.25			(.63	)		(.38	)		(.04	)		—			(.04	)		11.25		(3.27	)¹⁰		1			.56	¹⁰		.31	¹⁰		.59	¹⁰		2.17	¹⁰
Class P2:
12/31/2019		11.67		.19			2.00			2.19			(.07	)		(.10	)		(.17	)		13.69		18.84			283			.67			.62			.92			1.47
12/31/2018		12.58		.16			(.36	)		(.20	)		(.14	)		(.57	)		(.71	)		11.67		(1.97	)		230			.69			.64			.93			1.25
12/31/2017		11.02		.13			2.05			2.18			(.12	)		(.50	)		(.62	)		12.58		20.40			206			.70			.63			.92			1.08
12/31/2016		11.22		.12			.52			.64			(.14	)		(.70	)		(.84	)		11.02		6.08			160			.79			.63			.91			1.13
12/31/2015		11.65		.12			(.54	)		(.42	)		(.01	)		—			(.01	)		11.22		(3.64	)		122			.89			.66			.94			1.04

202	American Funds Insurance Series

			Income from investment operations¹								Dividends and distributions																Ratio of expenses			Ratio of expenses
Period ended	Net asset value, beginning of period		Net investment income (loss)		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distribu- tions (from capital gains)			Total dividends and distribu- tions			Net asset value, end of period		Total return¹²			Net assets, end of period (in millions)		to average net assets before waivers/ reimburse- ments			to average net assets after waivers/ reimburse- ments¹²			Net effective expense ratio^12,13			Ratio of net income to average net assets¹²

Managed Risk Asset Allocation Fund

Class P1:
12/31/2019	$	12.23	$	.26	$	1.92		$	2.18		$	(.03	)	$	(.57	)	$	(.60	)	$	13.81		18.25	%	$	2		.41	%		.36	%		.65	%		2.01	%
12/31/2018		13.59		.22		(.80	)		(.58	)		(.25	)		(.53	)		(.78	)		12.23		(4.63	)		2		.37			.32			.59			1.67
12/31/2017		12.02		.19		1.60			1.79			(.10	)		(.12	)		(.22	)		13.59		15.06			1,656		.43			.38			.66			1.45
12/31/2016		11.72		.19		.67			.86			(.19	)		(.37	)		(.56	)		12.02		7.57			1,217		.43			.38			.66			1.65
12/31/2015		12.29		.25		(.34	)		(.09	)		(.22	)		(.26	)		(.48	)		11.72		(.83	)		712		.54			.40			.68			2.06
Class P2:
12/31/2019		12.22		.19		1.93			2.12			(.31	)		(.57	)		(.88	)		13.46		17.98			2,830		.66			.61			.90			1.51
12/31/2018		13.55		.17		(.79	)		(.62	)		(.18	)		(.53	)		(.71	)		12.22		(4.89	)		2,541		.62			.57			.84			1.27
12/31/2017		12.01		.15		1.61			1.76			(.10	)		(.12	)		(.22	)		13.55		14.80			2,798		.68			.63			.91			1.13
12/31/2016		11.71		.14		.69			.83			(.16	)		(.37	)		(.53	)		12.01		7.27			2,342		.68			.63			.91			1.20
12/31/2015		12.27		.14		(.26	)		(.12	)		(.18	)		(.26	)		(.44	)		11.71		(1.07	)		1,953		.79			.66			.94			1.16

See end of tables for footnotes.

American Funds Insurance Series

203

Portfolio turnover rate for all share classes	Period ended December 31,
excluding mortgage dollar roll transactions^14,15	2019		2018			2017			2016			2015
Capital Income Builder	44	%		42	%		59	%		41	%		38	%
Asset Allocation Fund	47			34			39			43			28
Global Balanced Fund	60			30			28			43			36
Bond Fund	146			98			153			108			141
Global Bond Fund	110			78			74			70			88
Mortgage Fund	84			60			98			113			138
U.S. Government/AAA-Rated Securities Fund	103			76			120			273			352

Portfolio turnover rate for all share classes	Period ended December 31,
including mortgage dollar roll^14,15	2019			2018			2017			2016			2015
Global Growth Fund	14	%		25	%		31	%		27	%		29	%
Global Small Capitalization Fund	50			43			33			40			36
Growth Fund	21			35			24			26			20
International Fund	32			29			29			31			37
New World Fund	38			58			56			32			39
Blue Chip Income and Growth Fund	37			49			34			30			26
Global Growth and Income Fund	29			49			41			57			37
Growth-Income Fund	27			39			27			27			25
International Growth and Income Fund	28			38			51			32			35
Capital Income Builder Fund	72			98			88			53			128
Asset Allocation Fund	79			86			85			83			76
Global Balanced Fund	74			51			41			65			76
Bond Fund	373			514			502			375			434
Global Bond Fund	159			125			105			154			159
High-Income Bond Fund	58			67			78			89			66
Mortgage Fund	350			811			680			713			1103
U.S. Government/AAA-Rated Securities Fund	277			446			551			539			901
Ultra-Short Bond Fund	—	¹⁶		—	¹⁶		—	¹⁶		—	^11,16		N/A
Managed Risk Growth Fund	10			7			25			15			16
Managed Risk International Fund	8			8			25			26			15
Managed Risk Blue Chip Income and Growth Fund	13			11			32			9			20
Managed Risk Growth-Income Fund	6			14			26			14			11
Managed Risk Asset Allocation Fund	8			12			1			3			3

¹	Based on average shares outstanding.
²	Ratios do not include expenses of any Central Funds. The fund indirectly bears its proportionate share of the expenses of any Central Funds, if applicable.
³	Based on operations for a period that is less than a full year.
⁴	Class 1A shares began investment operations on January 6, 2017.
⁵	Not annualized.
⁶	Annualized.
⁷	Amount less than $1 million.
⁸	Amount less than $.01.
⁹	Amount less than .01%.
¹⁰	All or a significant portion of assets in this class consisted of seed capital invested by CRMC and/or its affiliates. Certain fees (including, where applicable, fees for distribution services) are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower.
¹¹	On May 1, 2016, the fund converted from a cash fund to an ultra-short-term bond fund and changed its name from Cash Management Fund to Ultra-Short Bond Fund.
¹²	This column reflects the impact of certain waivers/reimbursements by CRMC. CRMC waived a portion of investment advisory services and reimbursed a portion of miscellaneous fees and expenses for the managed risk funds.
¹³	This column reflects the net effective expense ratios for each fund and class, which are unaudited. These ratios include each class’s expense ratio combined with the weighted average net expense ratio of the underlying funds for the periods presented. See expense example for further information regarding fees and expenses.
¹⁴	Refer to Note 5 for further information on mortgage dollar rolls.
¹⁵	Rates do not include the fund’s portfolio activity with respect to any Central Funds, if applicable.
¹⁶	Amount is either less than 1% or there is no turnover.

See notes to financial statements.

204	American Funds Insurance Series

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of American Funds Insurance Series and Shareholders of Global Growth Fund, Global Small Capitalization Fund, Growth Fund, International Fund, New World Fund^®, Blue Chip Income and Growth Fund, Global Growth and Income Fund, Growth-Income Fund, International Growth and Income Fund, Capital Income Builder^®, Asset Allocation Fund, Global Balanced Fund, Bond Fund, Global Bond Fund, High-Income Bond Fund, Mortgage Fund, Ultra-Short Bond Fund, U.S. Government/AAA-Rated Securities Fund, Managed Risk Growth Fund, Managed Risk International Fund, Managed Risk Blue Chip Income and Growth Fund, Managed Risk Growth-Income Fund and Managed Risk Asset Allocation Fund

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including summary investment portfolios of Global Growth Fund, Global Small Capitalization Fund, Growth Fund, International Fund, New World Fund^®, Blue Chip Income and Growth Fund, Global Growth and Income Fund, Growth-Income Fund, International Growth and Income Fund, Capital Income Builder^®, Asset Allocation Fund, Global Balanced Fund, Bond Fund, Global Bond Fund, High-Income Bond Fund, Mortgage Fund and U.S. Government/AAA-Rated Securities Fund and investment portfolios of Ultra-Short Bond Fund, Managed Risk Growth Fund, Managed Risk International Fund, Managed Risk Blue Chip Income and Growth Fund, Managed Risk Growth-Income Fund and Managed Risk Asset Allocation Fund, (twenty-three of the funds constituting American Funds Insurance Series, hereafter collectively referred to as the “Funds”) as of December 31, 2019, the related statements of operations for the year ended December 31, 2019, the statements of changes in net assets for each of the two years in the period ended December 31, 2019, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2019, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended December 31, 2019 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2019 by correspondence with the custodians, transfer agent and brokers; when replies were not received from the transfer agent and brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

/s/PricewaterhouseCoopers LLP

Los Angeles, California

February 11, 2020

We have served as the auditor of one or more investment companies in The Capital Group Companies Investment Company Complex since 1934.

American Funds Insurance Series

205

Expense example

unaudited

The funds in American Funds Insurance Series serve as the underlying investment vehicle for various insurance products. As an owner of an insurance contract that invests in one of the funds in the series, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. Additional fees are charged by the insurance companies related to the various benefits they provide. This example is intended to help you understand your ongoing costs (in dollars) of investing in the underlying funds so you can compare these costs with the ongoing costs of investing in other mutual funds that serve a similar function in other annuity products. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period (July 1, 2019, through December 31, 2019).

Actual expenses:

The first line of each share class in the tables on the following pages provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading titled “Expenses paid during period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes:

The second line of each share class in the tables on the following pages provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.

Notes:

Additional fees are charged by the insurance companies related to the various benefits they provide. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.

Note that the expenses shown in the tables on the following pages are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the second line of each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

206	American Funds Insurance Series

	Beginning account value 7/1/2019		Ending account value 12/31/2019		Expenses paid during period¹		Annualized expense ratio
Global Growth Fund
Class 1 – actual return	$	1,000.00	$	1,116.96	$	3.04		.57	%
Class 1 – assumed 5% return		1,000.00		1,022.33		2.91		.57
Class 1A – actual return		1,000.00		1,115.38		4.37		.82
Class 1A – assumed 5% return		1,000.00		1,021.07		4.18		.82
Class 2 – actual return		1,000.00		1,115.67		4.37		.82
Class 2 – assumed 5% return		1,000.00		1,021.07		4.18		.82
Class 4 – actual return		1,000.00		1,113.99		5.70		1.07
Class 4 – assumed 5% return		1,000.00		1,019.81		5.45		1.07
Global Small Capitalization Fund
Class 1 – actual return	$	1,000.00	$	1,095.88	$	4.01		.76	%
Class 1 – assumed 5% return		1,000.00		1,021.37		3.87		.76
Class 1A – actual return		1,000.00		1,094.41		5.28		1.00
Class 1A – assumed 5% return		1,000.00		1,020.16		5.09		1.00
Class 2 – actual return		1,000.00		1,094.51		5.33		1.01
Class 2 – assumed 5% return		1,000.00		1,020.11		5.14		1.01
Class 4 – actual return		1,000.00		1,093.20		6.65		1.26
Class 4 – assumed 5% return		1,000.00		1,018.85		6.41		1.26
Growth Fund
Class 1 – actual return	$	1,000.00	$	1,122.54	$	1.93		.36	%
Class 1 – assumed 5% return		1,000.00		1,023.39		1.84		.36
Class 1A – actual return		1,000.00		1,121.15		3.26		.61
Class 1A – assumed 5% return		1,000.00		1,022.13		3.11		.61
Class 2 – actual return		1,000.00		1,121.13		3.26		.61
Class 2 – assumed 5% return		1,000.00		1,022.13		3.11		.61
Class 3 – actual return		1,000.00		1,121.54		2.89		.54
Class 3 – assumed 5% return		1,000.00		1,022.48		2.75		.54
Class 4 – actual return		1,000.00		1,119.60		4.59		.86
Class 4 – assumed 5% return		1,000.00		1,020.87		4.38		.86
International Fund
Class 1 – actual return	$	1,000.00	$	1,071.97	$	2.87		.55	%
Class 1 – assumed 5% return		1,000.00		1,022.43		2.80		.55
Class 1A – actual return		1,000.00		1,070.89		4.18		.80
Class 1A – assumed 5% return		1,000.00		1,021.17		4.08		.80
Class 2 – actual return		1,000.00		1,070.65		4.18		.80
Class 2 – assumed 5% return		1,000.00		1,021.17		4.08		.80
Class 3 – actual return		1,000.00		1,071.19		3.81		.73
Class 3 – assumed 5% return		1,000.00		1,021.53		3.72		.73
Class 4 – actual return		1,000.00		1,069.66		5.48		1.05
Class 4 – assumed 5% return		1,000.00		1,019.91		5.35		1.05
New World Fund
Class 1 – actual return	$	1,000.00	$	1,085.93	$	4.05		.77	%
Class 1 – assumed 5% return		1,000.00		1,021.32		3.92		.77
Class 1A – actual return		1,000.00		1,084.04		5.36		1.02
Class 1A – assumed 5% return		1,000.00		1,020.06		5.19		1.02
Class 2 – actual return		1,000.00		1,084.63		5.36		1.02
Class 2 – assumed 5% return		1,000.00		1,020.06		5.19		1.02
Class 4 – actual return		1,000.00		1,082.83		6.67		1.27
Class 4 – assumed 5% return		1,000.00		1,018.80		6.46		1.27

See end of tables for footnotes.

American Funds Insurance Series

207

	Beginning account value 7/1/2019		Ending account value 12/31/2019		Expenses paid during period¹		Annualized expense ratio
Blue Chip Income and Growth Fund
Class 1 – actual return	$	1,000.00	$	1,094.67	$	2.27		.43	%
Class 1 – assumed 5% return		1,000.00		1,023.04		2.19		.43
Class 1A – actual return		1,000.00		1,094.36		3.59		.68
Class 1A – assumed 5% return		1,000.00		1,021.78		3.47		.68
Class 2 – actual return		1,000.00		1,094.61		3.59		.68
Class 2 – assumed 5% return		1,000.00		1,021.78		3.47		.68
Class 4 – actual return		1,000.00		1,092.10		4.90		.93
Class 4 – assumed 5% return		1,000.00		1,020.52		4.74		.93
Global Growth and Income Fund
Class 1 – actual return	$	1,000.00	$	1,099.74	$	3.49		.66	%
Class 1 – assumed 5% return		1,000.00		1,021.88		3.36		.66
Class 1A – actual return		1,000.00		1,098.34		4.81		.91
Class 1A – assumed 5% return		1,000.00		1,020.62		4.63		.91
Class 2 – actual return		1,000.00		1,098.41		4.81		.91
Class 2 – assumed 5% return		1,000.00		1,020.62		4.63		.91
Class 4 – actual return		1,000.00		1,096.37		6.13		1.16
Class 4 – assumed 5% return		1,000.00		1,019.36		5.90		1.16
Growth-Income Fund
Class 1 – actual return	$	1,000.00	$	1,088.69	$	1.53		.29	%
Class 1 – assumed 5% return		1,000.00		1,023.74		1.48		.29
Class 1A – actual return		1,000.00		1,087.42		2.84		.54
Class 1A – assumed 5% return		1,000.00		1,022.48		2.75		.54
Class 2 – actual return		1,000.00		1,087.19		2.84		.54
Class 2 – assumed 5% return		1,000.00		1,022.48		2.75		.54
Class 3 – actual return		1,000.00		1,087.79		2.47		.47
Class 3 – assumed 5% return		1,000.00		1,022.84		2.40		.47
Class 4 – actual return		1,000.00		1,085.97		4.15		.79
Class 4 – assumed 5% return		1,000.00		1,021.22		4.02		.79
International Growth and Income Fund
Class 1 – actual return	$	1,000.00	$	1,071.75	$	3.50		.67	%
Class 1 – assumed 5% return		1,000.00		1,021.83		3.41		.67
Class 1A – actual return		1,000.00		1,069.92		4.80		.92
Class 1A – assumed 5% return		1,000.00		1,020.57		4.69		.92
Class 2 – actual return		1,000.00		1,069.79		4.80		.92
Class 2 – assumed 5% return		1,000.00		1,020.57		4.69		.92
Class 4 – actual return		1,000.00		1,068.59		6.10		1.17
Class 4 – assumed 5% return		1,000.00		1,019.31		5.96		1.17
Capital Income Builder
Class 1 – actual return	$	1,000.00	$	1,073.57	$	2.82		.54	%
Class 1 – assumed 5% return		1,000.00		1,022.48		2.75		.54
Class 1A – actual return		1,000.00		1,072.29		4.13		.79
Class 1A – assumed 5% return		1,000.00		1,021.22		4.02		.79
Class 2 – actual return		1,000.00		1,071.26		4.12		.79
Class 2 – assumed 5% return		1,000.00		1,021.22		4.02		.79
Class 4 – actual return		1,000.00		1,071.03		5.43		1.04
Class 4 – assumed 5% return		1,000.00		1,019.96		5.30		1.04

208	American Funds Insurance Series

	Beginning account value 7/1/2019		Ending account value 12/31/2019		Expenses paid during period¹		Annualized expense ratio
Asset Allocation Fund
Class 1 – actual return	$	1,000.00	$	1,084.13	$	1.58		.30	%
Class 1 – assumed 5% return		1,000.00		1,023.69		1.53		.30
Class 1A – actual return		1,000.00		1,082.52		2.89		.55
Class 1A – assumed 5% return		1,000.00		1,022.43		2.80		.55
Class 2 – actual return		1,000.00		1,082.42		2.89		.55
Class 2 – assumed 5% return		1,000.00		1,022.43		2.80		.55
Class 3 – actual return		1,000.00		1,082.90		2.52		.48
Class 3 – assumed 5% return		1,000.00		1,022.79		2.45		.48
Class 4 – actual return		1,000.00		1,080.99		4.20		.80
Class 4 – assumed 5% return		1,000.00		1,021.17		4.08		.80
Global Balanced Fund
Class 1 – actual return	$	1,000.00	$	1,068.79	$	3.86		.74	%
Class 1 – assumed 5% return		1,000.00		1,021.48		3.77		.74
Class 1A – actual return		1,000.00		1,067.15		5.11		.98
Class 1A – assumed 5% return		1,000.00		1,020.27		4.99		.98
Class 2 – actual return		1,000.00		1,067.14		5.16		.99
Class 2 – assumed 5% return		1,000.00		1,020.21		5.04		.99
Class 4 – actual return		1,000.00		1,065.63		6.46		1.24
Class 4 – assumed 5% return		1,000.00		1,018.95		6.31		1.24
Bond Fund
Class 1 – actual return	$	1,000.00	$	1,027.08	$	2.04		.40	%
Class 1 – assumed 5% return		1,000.00		1,023.19		2.04		.40
Class 1A – actual return		1,000.00		1,025.83		3.32		.65
Class 1A – assumed 5% return		1,000.00		1,021.93		3.31		.65
Class 2 – actual return		1,000.00		1,025.29		3.32		.65
Class 2 – assumed 5% return		1,000.00		1,021.93		3.31		.65
Class 4 – actual return		1,000.00		1,023.86		4.59		.90
Class 4 – assumed 5% return		1,000.00		1,020.67		4.58		.90
Global Bond Fund
Class 1 – actual return	$	1,000.00	$	1,013.93	$	2.99		.59	%
Class 1 – assumed 5% return		1,000.00		1,022.23		3.01		.59
Class 1A – actual return		1,000.00		1,012.09		4.26		.84
Class 1A – assumed 5% return		1,000.00		1,020.97		4.28		.84
Class 2 – actual return		1,000.00		1,012.71		4.26		.84
Class 2 – assumed 5% return		1,000.00		1,020.97		4.28		.84
Class 4 – actual return		1,000.00		1,011.15		5.53		1.09
Class 4 – assumed 5% return		1,000.00		1,019.71		5.55		1.09
High-Income Bond Fund
Class 1 – actual return	$	1,000.00	$	1,027.67	$	2.66		.52	%
Class 1 – assumed 5% return		1,000.00		1,022.58		2.65		.52
Class 1A – actual return		1,000.00		1,026.78		3.93		.77
Class 1A – assumed 5% return		1,000.00		1,021.32		3.92		.77
Class 2 – actual return		1,000.00		1,025.96		3.93		.77
Class 2 – assumed 5% return		1,000.00		1,021.32		3.92		.77
Class 3 – actual return		1,000.00		1,027.04		3.58		.70
Class 3 – assumed 5% return		1,000.00		1,021.68		3.57		.70
Class 4 – actual return		1,000.00		1,024.88		5.21		1.02
Class 4 – assumed 5% return		1,000.00		1,020.06		5.19		1.02

See end of tables for footnotes.

American Funds Insurance Series

209

	Beginning account value 7/1/2019		Ending account value 12/31/2019		Expenses paid during period¹		Annualized expense ratio
Mortgage Fund
Class 1 – actual return	$	1,000.00	$	1,010.94	$	2.48		.49	%
Class 1 – assumed 5% return		1,000.00		1,022.74		2.50		.49
Class 1A – actual return		1,000.00		1,010.25		3.75		.74
Class 1A – assumed 5% return		1,000.00		1,021.48		3.77		.74
Class 2 – actual return		1,000.00		1,009.74		3.75		.74
Class 2 – assumed 5% return		1,000.00		1,021.48		3.77		.74
Class 4 – actual return		1,000.00		1,008.46		5.01		.99
Class 4 – assumed 5% return		1,000.00		1,020.21		5.04		.99
Ultra-Short Bond Fund
Class 1 – actual return	$	1,000.00	$	1,008.13	$	1.92		.38	%
Class 1 – assumed 5% return		1,000.00		1,023.29		1.94		.38
Class 1A – actual return		1,000.00		1,008.13		2.08		.41
Class 1A – assumed 5% return		1,000.00		1,023.14		2.09		.41
Class 2 – actual return		1,000.00		1,007.15		3.19		.63
Class 2 – assumed 5% return		1,000.00		1,022.03		3.21		.63
Class 3 – actual return		1,000.00		1,007.58		2.88		.57
Class 3 – assumed 5% return		1,000.00		1,022.33		2.91		.57
Class 4 – actual return		1,000.00		1,006.17		4.45		.88
Class 4 – assumed 5% return		1,000.00		1,020.77		4.48		.88
U.S. Government/AAA-Rated Securities Fund
Class 1 – actual return	$	1,000.00	$	1,009.49	$	1.92		.38	%
Class 1 – assumed 5% return		1,000.00		1,023.29		1.94		.38
Class 1A – actual return		1,000.00		1,008.69		3.19		.63
Class 1A – assumed 5% return		1,000.00		1,022.03		3.21		.63
Class 2 – actual return		1,000.00		1,008.33		3.19		.63
Class 2 – assumed 5% return		1,000.00		1,022.03		3.21		.63
Class 3 – actual return		1,000.00		1,008.76		2.84		.56
Class 3 – assumed 5% return		1,000.00		1,022.38		2.85		.56
Class 4 – actual return		1,000.00		1,007.70		4.45		.88
Class 4 – assumed 5% return		1,000.00		1,020.77		4.48		.88

210	American Funds Insurance Series

	Beginning account value 7/1/2019		Ending account value 12/31/2019		Expenses paid during period^1,2		Annualized expense ratio²			Effective expenses paid during period³		Effective annualized expense ratio⁴
Managed Risk Growth Fund
Class P1 – actual return	$	1,000.00	$	1,093.69	$	2.01		.38	%	$	3.85		.73	%
Class P1 – assumed 5% return		1,000.00		1,023.29		1.94		.38			3.72		.73
Class P2 – actual return		1,000.00		1,092.56		3.32		.63			5.22		.99
Class P2 – assumed 5% return		1,000.00		1,022.03		3.21		.63			5.04		.99
Managed Risk International Fund
Class P1 – actual return	$	1,000.00	$	1,059.67	$	1.71		.33	%	$	4.36		.84	%
Class P1 – assumed 5% return		1,000.00		1,023.54		1.68		.33			4.28		.84
Class P2 – actual return		1,000.00		1,058.14		3.32		.64			5.91		1.14
Class P2 – assumed 5% return		1,000.00		1,021.98		3.26		.64			5.80		1.14
Managed Risk Blue Chip Income and Growth Fund
Class P1 – actual return	$	1,000.00	$	1,070.42	$	1.77		.34	%	$	3.86		.74	%
Class P1 – assumed 5% return		1,000.00		1,023.49		1.73		.34			3.77		.74
Class P2 – actual return		1,000.00		1,069.12		3.34		.64			5.42		1.04
Class P2 – assumed 5% return		1,000.00		1,021.98		3.26		.64			5.30		1.04
Managed Risk Growth-Income Fund
Class P1 – actual return	$	1,000.00	$	1,069.78	$	1.88		.36	%	$	3.50		.67	%
Class P1 – assumed 5% return		1,000.00		1,023.39		1.84		.36			3.41		.67
Class P2 – actual return		1,000.00		1,068.16		3.18		.61			4.80		.92
Class P2 – assumed 5% return		1,000.00		1,022.13		3.11		.61			4.69		.92
Managed Risk Asset Allocation Fund
Class P1 – actual return	$	1,000.00	$	1,077.11	$	1.88		.36	%	$	3.40		.65	%
Class P1 – assumed 5% return		1,000.00		1,023.39		1.84		.36			3.31		.65
Class P2 – actual return		1,000.00		1,075.10		3.19		.61			4.71		.90
Class P2 – assumed 5% return		1,000.00		1,022.13		3.11		.61			4.58		.90

¹	The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 365 (to reflect the one-half year period).
²	The “expenses paid during period” and “annualized expense ratio” do not include the expenses of the underlying funds in which each fund invests.
³	The “effective expenses paid during period” are equal to the “effective annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 365 (to reflect the period).
⁴	The “effective annualized expense ratio” reflects the net annualized expense ratio of the class plus the class’s pro-rata share of the weighted average expense ratio of the underlying funds in which it invests.

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211

Liquidity Risk Management Program

The series has adopted a liquidity risk management program (the “program”). The series’ board has designated Capital Research and Management Company (“CRMC”) as the administrator of the program. Personnel of CRMC or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by the Capital Group Liquidity Risk Management Committee.

Under the program, CRMC manages each fund’s liquidity risk, which is the risk that the fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the fund. This risk is managed by monitoring the degree of liquidity of each fund’s investments, limiting the amount of each fund’s illiquid investments, and utilizing various risk management tools and facilities available to each fund for meeting shareholder redemptions, among other means. CRMC’s process of determining the degree of liquidity of each fund’s investments is supported by one or more third-party liquidity assessment vendors.

The series’ board reviewed a report prepared by CRMC regarding the operation and effectiveness of the program for the period December 1, 2018, through September 30, 2019. No significant liquidity events impacting any of the funds were noted in the report. In addition, CRMC provided its assessment that the program had been effective in managing each fund’s liquidity risk.

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Board of trustees and other officers

Independent trustees¹

Name and year of birth	Year first elected a trustee of the series²	Principal occupation(s) during past five years	Number of portfolios in fund complex overseen by trustee	Other directorships³ held by trustee
William H. Baribault, 1945	2009	Chairman of the Board and CEO, Oakwood Advisors (private investment and consulting); former CEO and President, Richard Nixon Foundation	89	General Finance Corporation
James G. Ellis, 1947	2010	Professor of Marketing and former Dean, Marshall School of Business, University of Southern California	99	Mercury General Corporation
Nariman Farvardin, 1956	2018	President, Stevens Institute of Technology	86	None
Mary Davis Holt, 1950	2015–2016; 2017	Principal, Mary Davis Holt Enterprises, LLC (leadership development consulting); former Partner, Flynn Heath Holt Leadership, LLC (leadership consulting); former COO, Time Life Inc. (1993–2003)	86	None
R. Clark Hooper, 1946	2010	Private investor	89	None
Merit E. Janow, 1958	2007	Dean and Professor, Columbia University, School of International and Public Affairs	88	Mastercard Incorporated; Trimble Inc.
Margaret Spellings, 1957 Chairman of the Board (Independent and Non-Executive)	2010	CEO, Texas 2036; former President, Margaret Spellings & Company (public policy and strategic consulting); former President, The University of North Carolina; former President, George W. Bush Foundation	90	None
Alexandra Trower, 1964	2018	Executive Vice President, Global Communications and Corporate Officer, The Estée Lauder Companies	85	None

Interested trustees^4,5

Name, year of birth and position with series	Year first elected a trustee or officer of the series²	Principal occupation(s) during past five years and positions held with affiliated entities or the principal underwriter of the series	Number of portfolios in fund complex overseen by trustee	Other directorships³ held by trustee
Donald D. O’Neal, 1960 Co-President	1998	Partner — Capital International Investors, Capital Research and Management Company; Partner — Capital International Investors, Capital Bank and Trust Company;⁶Director, Capital Research and Management Company	35	None
Michael C. Gitlin, 1970	2019	Vice Chairman and Director, Capital Research and Management Company; Partner — Capital Fixed Income Investors, Capital Research and Management Company; Director, The Capital Group Companies, Inc.;⁶served as Head of Fixed Income at a large investment management firm prior to joining Capital Research and Management Company in 2015	85	None

The series statement of additional information includes further details about the series trustees and is available without charge upon request by calling American Funds Service Company at (800) 421-4225 or by visiting the Capital Group website at capitalgroup.com. The address for all trustees and officers of the series is 333 South Hope Street, Los Angeles, CA 90071, Attention: Secretary.

222	American Funds Insurance Series

Other officers⁵

Name, year of birth and position with series	Year first elected an officer of the series²	Principal occupation(s) during past five years and positions held with affiliated entities or the principal underwriter of the series
Alan N. Berro, 1960 Co-President	1998	Partner — Capital World Investors, Capital Research and Management Company; Partner — Capital World Investors, Capital Bank and Trust Company;⁶Director, The Capital Group Companies, Inc.⁶
Maria Manotok, 1974 Executive Vice President	2012	Senior Vice President and Senior Counsel — Fund Business Management Group, Capital Research and Management Company; Senior Vice President, Senior Counsel and Director, Capital International, Inc.;⁶ Director, Capital Group Investment Management Limited⁶
John H. Smet, 1956 Senior Vice President	1994	Partner — Capital Fixed Income Investors, Capital Research and Management Company
Martin Jacobs, 1962 Vice President	2016	Partner — Capital Research Global Investors, Capital Research and Management Company
Carl M. Kawaja, 1964 Vice President	2008	Partner — Capital World Investors, Capital Research and Management Company; Chairman and Director, Capital Research and Management Company; Partner — Capital World Investors, Capital Bank and Trust Company;⁶Director, The Capital Group Companies, Inc.⁶
Sung Lee, 1966 Vice President	2008	Partner — Capital Research Global Investors, Capital International, Inc.⁶
Keiko McKibben, 1969 Vice President	2010	Partner — Capital Research Global Investors, Capital Research and Management Company
Renaud H. Samyn, 1974 Vice President	2010	Partner — Capital Research Global Investors, Capital International, Inc.⁶
Dylan Yolles, 1969 Vice President	2012	Partner — Capital International Investors, Capital Research and Management Company
Steven I. Koszalka, 1964 Secretary	2003	Vice President — Fund Business Management Group, Capital Research and Management Company
Gregory F. Niland, 1971 Treasurer	2008	Vice President — Investment Operations, Capital Research and Management Company
Susan K. Countess, 1966 Assistant Secretary	2014	Associate — Fund Business Management Group, Capital Research and Management Company
Sandra Chuon, 1972 Assistant Treasurer	2019	Assistant Vice President — Investment Operations, Capital Research and Management Company
Brian C. Janssen, 1972 Assistant Treasurer	2015	Vice President — Investment Operations, Capital Research and Management Company

¹	The term independent trustee refers to a trustee who is not an “interested person” of the series within the meaning of the Investment Company Act of 1940.
²	Trustees and officers of the series serve until their resignation, removal or retirement.
³	This includes all directorships/trusteeships (other than those in the American Funds or other funds managed by Capital Research and Management Company or its affiliates) that are held by each trustee as a trustee or director of a public company or a registered investment company.
⁴	The term interested trustee refers to a trustee who is an “interested person” within the meaning of the Investment Company Act of 1940, on the basis of their affiliation with the series investment adviser, Capital Research and Management Company, or affiliated entities (including the series principal underwriter).
⁵	All of the trustees and/or officers listed, with the exception of Martin Jacobs, Keiko McKibben and Renaud H. Samyn, are officers and/or directors/trustees of one or more of the other funds for which Capital Research and Management Company serves as investment adviser.
⁶	Company affiliated with Capital Research and Management Company.

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223

Office of the series
333 South Hope Street
Los Angeles, CA 90071-1406

Investment adviser
Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406

Investment subadviser
Milliman Financial Risk Management LLC
(Managed Risk Funds only)
71 South Wacker Drive, 31st Floor
Chicago, IL 60606

Custodians of assets
State Street Bank and Trust Company
One Lincoln Street
Boston, MA 02111

Bank of New York Mellon
(Managed Risk Funds only)
One Wall Street
New York, NY 10286

Counsel
Morgan, Lewis & Bockius LLP
One Federal Street
Boston, MA 02110-1726

Independent registered public accounting firm
PricewaterhouseCoopers LLP
601 South Figueroa Street
Los Angeles, CA 90017-3874

224	American Funds Insurance Series

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the series prospectuses and summary prospectuses, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the Capital Group website at capitalgroup.com.

“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on the Capital Group website or upon request by calling AFS. The series files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on the Capital Group website.

Complete December 31, 2019, portfolios of American Funds Insurance Series’ investments are available free of charge by calling AFS or visiting the SEC website (where they are part of Form N-CSR).

American Funds Insurance Series files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form NPORT-P. This filing is available free of charge on the SEC website. Additionally, the list of portfolio holdings is available by calling AFS.

This report is for the information of American Funds Insurance Series investors, but it also may be used as sales literature when preceded or accompanied by the current prospectuses or summary prospectuses for American Funds Insurance Series and the prospectus for the applicable insurance contract, which give details about charges, expenses, investment objectives and operating policies of the series. If used as sales material after March 31, 2020, this report must be accompanied by a statistical update for the most recently completed calendar quarter.

Fund attribution data was produced using FactSet, a third-party software system, based on daily portfolios. Securities in their initial period of acquisition may not be included in this analysis. The analysis includes equity investments only and excludes forward contracts and fixed income investments, if applicable. It does not account for buy-and-sell transactions that might have occurred intraday. As a result, average portfolio weight percentages are approximate, and the actual average portfolio weight percentages might be higher or lower. Data elements, such as pricing, income, market cap, etc., were provided by FactSet. The indexes provided for attribution are based on FactSet’s methodology. The indexes are broad-based market benchmarks and may not be used by Capital Group^® as the sole comparative index for the funds. Capital Group believes the software and information from FactSet to be reliable. However, Capital Group cannot be responsible for inaccuracies, incomplete information or updating of information by FactSet.

Futures may not provide an effective hedge of the underlying securities because changes in the prices of futures may not track those of the securities they are intended to hedge. In addition, the managed risk strategy may not effectively protect the fund from market declines and will limit the fund’s participation in market gains. The use of the managed risk strategy could cause the fund’s return to lag that of the underlying fund in certain market conditions.

Bloomberg^® is a trademark and service mark of Bloomberg Finance L.P. (collectively with its affiliates, “Bloomberg”). Barclays^® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approve or endorse this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. This report, and any product, index or fund referred to herein, is not sponsored, endorsed or promoted in any way by J.P. Morgan or any of its affiliates who provide no warranties whatsoever, express or implied, and shall have no liability to any prospective investor in connection with this report. J.P. Morgan disclaimer: http://www.jpmorgan.com/pages/jpmorgan/ib/girg. MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products. The S&P 500 is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group. Copyright © 2019 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.

American Funds Distributors, Inc., member FINRA.

The Capital Advantage^®

Since 1931, Capital Group, home of American Funds, has helped investors pursue long-term investment success. Our consistent approach — in combination with The Capital System^SM— has resulted in superior outcomes.

	Aligned with investor success
	We base our decisions on a long-term perspective, which we believe aligns our goals with the interests of our clients. American Funds Insurance Series portfolio managers average 28 years of investment experience, including 23 years at our company, reflecting a career commitment to our long-term approach.¹

	The Capital System
	The Capital System combines individual accountability with teamwork. Funds using The Capital System are divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. An extensive global research effort is the backbone of our system.

	American Funds Insurance Series superior outcomes
	American Funds Insurance Series equity funds have beaten their comparable Lipper indexes in 90% of 10-year periods and 100% of 20-year periods.²Our fixed income funds have helped investors achieve diversification through attention to correlation between bonds and equities.³We strive to keep management fees competitive. Over the past 20 years, most funds’ fees have been below industry averages.⁴

	¹	Portfolio manager experience as of the American Funds Insurance Series prospectus dated May 1, 2020.
	²	Based on Class 1 share results for rolling periods through December 31, 2019. Periods covered are the shorter of the fund’s lifetime or since the inception date of the comparable Lipper index or average. The comparable Lipper indexes are: Global Funds Index (Global Growth Fund, Global Growth and Income Fund), Growth Funds Index (Growth Fund), International Funds Index (International Fund), Emerging Markets Funds Index (New World Fund), Growth & Income Funds Index (Blue Chip Income and Growth Fund, Growth-Income Fund) and Balanced Funds Index (Asset Allocation Fund). The Lipper Global Small-/Mid-Cap Funds Average was used for Global Small Capitalization Fund. Lipper source: Refinitiv Lipper. There have been periods when the fund has lagged the index.
	³	Based on Class 1 share results as of December 31, 2019. Four of our five fixed income funds showed a three-year correlation below 0.1. Standard & Poor’s 500 Composite Index was used as an equity market proxy. Correlation based on monthly total returns. Correlation is a statistical measure of how two securities move in relation to each other. A correlation ranges from –1 to 1. A positive correlation close to 1 implies that as one security moves, either up or down, the other security will move in “lockstep,” in the same direction. A negative correlation close to –1 indicates that the securities have moved in the opposite direction.
	⁴	Based on management fees for the 20-year period ended December 31, 2019, versus comparable Lipper categories, excluding funds of funds.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

As of December 31, 2019, the Registrant adopted a Code of Ethics that applies to the Principal Executive Officer and Principal Financial Officer pursuant to the Sarbanes-Oxley Act of 2002. For the year ended December 31, 2019, there were no reportable amendments to a provision of the Code of Ethics. A copy of its Code of Ethics is filed with this Form N-CSR under Item 13(a)(1).

The Registrant’s Board of Trustees has determined that Susan B. Sweeney and Nabil N. El-Hage, both members of the Audit Committee, are audit committee financial experts as defined by the Securities and Exchange Commission (the “SEC”). Ms. Sweeney and Mr. El-Hage are both “independent” as defined by the SEC for purposes of audit committee financial expert determinations.

References below to Deloitte & Touche LLP include its affiliates where applicable.

Please see portfolio of investments contained in the Reports to Stockholders included under Item 1 of this form N-CSR.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

(a) The Registrant’s Principal Executive Officer and Principal Financial Officer 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 this Form N-CSR, to provide reasonable assurance that the information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, based on their evaluation of these disclosure 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 Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during 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. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies

(a)(2) Certifications of the Principal Executive Officer and Principal Financial Officer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) are attached hereto as Exhibit 99CERT.

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 as required by Rule 30a-2(b), under the 1940 Act (17 CFR 270.30a-2(b)), Rule 15d-14(b) under the Securities Exchange Act of 1934 (17 CFR 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) are attached hereto as Exhibit 99.906CERT.

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.

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.


MML Series Investment Fund
(Exact name of registrant as specified in charter)

100 Bright Meadow Blvd., Enfield, CT 06082
(Address of principal executive offices)		(Zip code)
Eric Wietsma
100 Bright Meadow Blvd., Enfield, CT 06082
(Name and address of agent for service)


	Fund’s Initial Class Return	Custom Index Return	Russell 3000^® Index Return	MSCI ACWI ex USA Return	Bloomberg Barclays U.S. Aggregate Bond Index Return
MML Conservative Allocation Fund	15.20%	16.50%	31.02%	21.51%	8.72%*

MML Balanced Allocation Fund	16.75%	18.48%	31.02%*	21.51%	8.72%

MML Moderate Allocation Fund	18.58%	20.48%	31.02%*	21.51%	8.72%

MML Growth Allocation Fund	21.21%	23.50%	31.02%*	21.51%	8.72%

MML Aggressive Allocation Fund	23.93%	26.55%	31.02%*	21.51%	8.72%



MML Conservative Allocation Fund Asset Allocation (% of Net Assets) on 12/31/19

Fixed Income Funds	61.6	%
Equity Funds	38.5	%

Total Long-Term Investments	100.1	%
Other Assets & Liabilities	(0.1	)%

Net Assets	100.0	%



MML Balanced Allocation Fund Asset Allocation (% of Net Assets) on 12/31/19

Fixed Income Funds	51.5	%
Equity Funds	48.6	%

Total Long-Term Investments	100.1	%
Other Assets & Liabilities	(0.1	)%

Net Assets	100.0	%



MML Moderate Allocation Fund Asset Allocation (% of Net Assets) on 12/31/19

Equity Funds	60.8	%
Fixed Income Funds	39.3	%

Total Long-Term Investments	100.1	%
Other Assets & Liabilities	(0.1	)%

Net Assets	100.0	%



President’s Letter to Shareholders (Unaudited)			1

Economic and Market Review (Unaudited)			3

Portfolio Manager Report (Unaudited)			5

Portfolio of Investments
MML Conservative Allocation Fund			23
MML Balanced Allocation Fund			24
MML Moderate Allocation Fund			25
MML Growth Allocation Fund			26
MML Aggressive Allocation Fund			27
MML American Funds Growth Fund			28
MML American Funds International Fund			29
MML American Funds Core Allocation Fund			30

Statements of Assets and Liabilities			32

Statements of Operations			36

Statements of Changes in Net Assets			38

Financial Highlights			42

Notes to Financial Statements			50

Report of Independent Registered Public Accounting Firm			66

Trustees and Principal Officers (Unaudited)			67

Federal Tax Information (Unaudited)			71

Other Information (Unaudited)
Proxy Voting			72
Quarterly Reporting			72
Fund Expenses			73



*MML Growth Allocation Fund* Asset Allocation (% of Net Assets) on 12/31/19

Equity Funds	72.2	%
Fixed Income Funds	27.9	%

Total Long-Term Investments	100.1	%
Other Assets & Liabilities	(0.1	)%

Net Assets	100.0	%



MML Aggressive Allocation Fund Asset Allocation (% of Net Assets) on 12/31/19

Equity Funds	86.6	%
Fixed Income Funds	13.5	%

Total Long-Term Investments	100.1	%
Other Assets & Liabilities	(0.1	)%

Net Assets	100.0	%


Average Annual Total Returns (for the period ended 12/31/2019)

	Inception Date of Class	1 Year	5 Years	10 Years
Initial Class	08/31/2007	15.20%	5.13%	6.75%
Service Class	08/15/2008	14.93%	4.87%	6.48%
Bloomberg Barclays U.S. Aggregate Bond Index*		8.72%	3.05%	3.75%
Russell 3000 Index		31.02%	11.24%	13.42%
MSCI ACWI ex USA		21.51%	5.51%	4.97%
Custom MML Conservative Allocation Index		16.50%	5.89%	6.99%



MML American Funds Growth Fund Asset Allocation (% of Net Assets) on 12/31/19

Equity Funds	100.1	%

Total Long-Term Investments	100.1	%
Other Assets & Liabilities	(0.1	)%

Net Assets	100.0	%



MML American Funds International Fund Asset Allocation (% of Net Assets) on 12/31/19

Mutual Funds	100.2	%

Total Long-Term Investments	100.2	%
Other Assets and Liabilities	(0.2	)%

Net Assets	100.0	%



MML American Funds Core Allocation Fund Asset Allocation (% of Net Assets) on 12/31/19

Equity Funds	66.0	%
Fixed Income Funds	34.1	%

Total Long-Term Investments	100.1	%
Other Assets & Liabilities	(0.1	)%

Net Assets	100.0	%


	Number of Shares		Value
MUTUAL FUNDS — 100.1%
Equity Funds — 38.5%
Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund/VA, Series I		25,474	$	2,135,217
Invesco Oppenheimer V.I. Global Fund/VA, Series I		91,373		3,887,904
Invesco Oppenheimer V.I. International Growth Fund/VA, Series I		416,722		1,020,969
Invesco Oppenheimer V.I. Main Street Fund/VA, Series I		172,360		5,074,267
MML Blue Chip Growth Fund, Initial Class (a)		705,673		11,636,554
MML Equity Income Fund, Initial Class (a)		1,151,744		12,876,499
MML Equity Index Fund, Class III (a)		29,145		944,007
MML Focused Equity Fund, Class II (a)		2,462,663		16,672,231
MML Foreign Fund, Initial Class (a)		797,178		8,051,494
MML Fundamental Growth Fund, Class II (a)		710,111		7,115,314
MML Fundamental Value Fund, Class II (a)		917,438		12,009,269
MML Global Fund, Class I (a)		1,533,318		19,718,465
MML Income & Growth Fund, Initial Class (a)		1,324,227		13,162,819
MML International Equity Fund, Class II (a)		972,009		9,817,292
MML Large Cap Growth Fund, Initial Class (a)		276,208		3,063,152
MML Mid Cap Growth Fund, Initial Class (a)		656,891		10,431,430
MML Mid Cap Value Fund, Initial Class (a)		861,113		9,127,793
MML Small Cap Growth Equity Fund, Initial Class (a)		130,152		1,839,468
MML Small Company Value Fund, Class II (a)		284,660		4,198,729
MML Small/Mid Cap Value Fund, Initial Class (a)		227,058		2,511,258
MML Strategic Emerging Markets Fund, Class II (a)		129,465		1,640,316

				156,934,447

Fixed Income Funds — 61.6%
Invesco Oppenheimer V.I. Global Strategic Income Fund/VA, Series I		2,227,463		11,070,494
MML Dynamic Bond Fund, Class II (a)		5,490,534		55,344,583
MML High Yield Fund, Class II (a)		1,249,415		11,956,901


	Number of Shares		Value
MML Inflation-Protected and Income Fund, Initial Class (a)		1,640,662	$	16,866,008
MML Managed Bond Fund, Initial Class (a)		6,770,992		85,527,270
MML Short-Duration Bond Fund, Class II (a)		2,357,407		22,843,273
MML Total Return Bond Fund, Class II (a)		4,446,233		47,752,538

				251,361,067


TOTAL MUTUAL FUNDS (Cost $401,202,155)				408,295,514


TOTAL LONG-TERM INVESTMENTS (Cost $401,202,155)				408,295,514


TOTAL INVESTMENTS — 100.1% (Cost $401,202,155) (b)				408,295,514

Other Assets/(Liabilities) — (0.1)%				(347,531	)


NET ASSETS — 100.0%			$	407,947,983


	Number of Shares		Value
MUTUAL FUNDS — 100.2%
Equity Funds — 100.2%
American Funds International Fund, Class 1		3,070,273	$	64,045,900


TOTAL MUTUAL FUNDS (Cost $58,725,825)				64,045,900


TOTAL LONG-TERM INVESTMENTS (Cost $58,725,825)				64,045,900


TOTAL INVESTMENTS — 100.2% (Cost $58,725,825) (a)				64,045,900

Other Assets/(Liabilities) — (0.2)%				(102,758	)


NET ASSETS — 100.0%			$	63,943,142


	MML Conservative Allocation Fund		MML Balanced Allocation Fund
Assets:
Investments, at value — unaffiliated issuers (Note 2) (a)	$	23,188,851	$	33,021,664
Investments, at value — affiliated issuers (Notes 2 & 7) (b)		385,106,663		501,737,745

Total investments		408,295,514		534,759,409

Receivables from:
Investments sold		568,953		-
Fund shares sold		44,272		97,587

Total assets		408,908,739		534,856,996

Liabilities:
Payables for:
Investments purchased		-		54,010
Fund shares repurchased		613,224		43,577
Trustees’ fees and expenses (Note 3)		48,032		59,049
Affiliates (Note 3):
Investment advisory fees		36,244		46,776
Administration fees		-		-
Service fees		199,458		256,050
Accrued expense and other liabilities		63,798		64,497

Total liabilities		960,756		523,959

Net assets	$	407,947,983	$	534,333,037

Net assets consist of:
Paid-in capital	$	388,758,145	$	505,773,940
Accumulated Gain (Loss)		19,189,838		28,559,097

Net assets	$	407,947,983	$	534,333,037


(a) Cost of investments — unaffiliated issuers:	$	22,492,883	$	31,729,224
(b) Cost of investments — affiliated issuers:	$	378,709,272	$	494,741,523


MML Moderate Allocation Fund		MML Growth Allocation Fund		MML Aggressive Allocation Fund		MML American Funds Growth Fund		MML American Funds International Fund		MML American Funds Core Allocation Fund

$	106,383,145	$	94,985,454	$	12,198,344	$	197,276,612	$	64,045,900	$	1,002,568,466
	2,024,904,492		1,457,516,150		151,339,466		-		-		-

	2,131,287,637		1,552,501,604		163,537,810		197,276,612		64,045,900		1,002,568,466


	663,211		-		-		4,566,437		604,052		333,671
	102,878		574,933		9,180		139,231		1,446		8,985

	2,132,053,726		1,553,076,537		163,546,990		201,982,280		64,651,398		1,002,911,122



	-		381,242		1,077		-		-		-
	766,089		193,691		8,103		4,705,668		605,498		342,657
	220,435		176,749		13,536		14,195		6,205		88,990

	185,220		135,168		14,155		26,054		8,356		168,991
	-		-		-		43,424		13,927		217,933
	1,086,362		607,269		58,239		120,579		39,364		620,047
	103,910		89,168		55,729		36,667		34,906		61,111

	2,362,016		1,583,287		150,839		4,946,587		708,256		1,499,729

$	2,129,691,710	$	1,551,493,250	$	163,396,151	$	197,035,693	$	63,943,142	$	1,001,411,393


$	1,993,428,943	$	1,422,667,225	$	151,023,260	$	151,088,906	$	54,870,588	$	894,158,695
	136,262,767		128,826,025		12,372,891		45,946,787		9,072,554		107,252,698

$	2,129,691,710	$	1,551,493,250	$	163,396,151	$	197,035,693	$	63,943,142	$	1,001,411,393


$	99,132,570	$	88,721,158	$	11,493,694	$	175,460,314	$	58,725,825	$	956,378,378
$	1,992,983,602	$	1,430,529,240	$	147,999,034	$	-	$	-	$	-


	MML Conservative Allocation Fund		MML Balanced Allocation Fund
Initial Class shares:
Net assets	$	95,290,391	$	125,465,114

Shares outstanding (a)		9,580,397		12,679,797

Net asset value, offering price and redemption price per share	$	9.95	$	9.89

Service Class shares:
Net assets	$	312,657,592	$	408,867,923

Shares outstanding (a)		31,780,708		41,725,566

Net asset value, offering price and redemption price per share	$	9.84	$	9.80

Service Class I shares:
Net assets	$	-	$	-

Shares outstanding (a)		-		-

Net asset value, offering price and redemption price per share	$	-	$	-


	MML Conservative Allocation Fund			MML Balanced Allocation Fund
Investment income (Note 2):
Dividends — unaffiliated issuers	$	-		$	-
Dividends — affiliated issuers (Note 7)		11,050,769			12,928,884

Total investment income		11,050,769			12,928,884

Expenses (Note 3):
Investment advisory fees		411,144			529,862
Custody fees		22,352			22,381
Audit fees		32,938			33,206
Legal fees		12,188			12,893
Proxy fees		1,370			1,370
Shareholder reporting fees		29,014			34,219
Trustees’ fees		19,798			25,536

		528,804			659,467
Administration fees:
Service Class I		-			-
Distribution and Service fees:
Service Class		793,482			1,018,311
Service Class I		-			-

Total expenses		1,322,286			1,677,778
Expenses waived (Note 3):
Service Class I fees reimbursed by adviser		-			-

Net expenses:		1,322,286			1,677,778

Net investment income (loss)		9,728,483			11,251,106

Realized and unrealized gain (loss):
Net realized gain (loss) on:
Investment transactions — unaffiliated issuers		-			-
Investment transactions — affiliated issuers (Note 7)		(2,326,670	)		(4,877,035	)
Realized gain distributions — unaffiliated issuers		-			-
Realized gain distributions — affiliated issuers (Note 7)		12,954,270			21,319,461

Net realized gain (loss)		10,627,600			16,442,426

Net change in unrealized appreciation (depreciation) on:
Investment transactions — unaffiliated issuers		695,968			1,292,440
Investment transactions — affiliated issuers (Note 7)		35,963,251			51,995,720

Net change in unrealized appreciation (depreciation)		36,659,219			53,288,160

Net realized gain (loss) and change in unrealized appreciation (depreciation)		47,286,819			69,730,586

Net increase (decrease) in net assets resulting from operations	$	57,015,302		$	80,981,692


	MML Conservative Allocation Fund
	Year Ended December 31, 2019			Year Ended December 31, 2018
Increase (Decrease) in Net Assets:
Operations:
Net investment income (loss)	$	9,728,483		$	8,942,002
Net realized gain (loss)		10,627,600			14,650,602
Net change in unrealized appreciation (depreciation)		36,659,219			(38,676,162	)

Net increase (decrease) in net assets resulting from operations		57,015,302			(15,083,558	)

Distributions to shareholders (Note 2):
Initial Class		(5,987,929	)		(4,578,931	)
Service Class		(19,874,970	)		(14,533,651	)

Total distributions		(25,862,899	)		(19,112,582	)

Net fund share transactions (Note 5):
Initial Class		(2,731,337	)		(8,677,685	)
Service Class		(17,500,386	)		(36,235,951	)

Increase (decrease) in net assets from fund share transactions		(20,231,723	)		(44,913,636	)

Total increase (decrease) in net assets		10,920,680			(79,109,776	)
Net assets
Beginning of year		397,027,303			476,137,079

End of year	$	407,947,983		$	397,027,303


MML Balanced Allocation Fund						MML Moderate Allocation Fund						MML Growth Allocation Fund
Year Ended December 31, 2019			Year Ended December 31, 2018			Year Ended December 31, 2019			Year Ended December 31, 2018			Year Ended December 31, 2019			Year Ended December 31, 2018


$	11,251,106		$	10,343,559		$	38,604,248		$	36,852,395		$	22,650,964		$	21,702,965
	16,442,426			23,266,475			81,319,671			126,757,835			86,057,251			130,745,975
	53,288,160			(58,352,656	)		235,039,836			(286,045,480	)		180,346,855			(260,669,321	)

	80,981,692			(24,742,622	)		354,963,755			(122,435,250	)		289,055,070			(108,220,381	)


	(8,806,961	)		(8,016,875	)		(31,558,407	)		(26,266,683	)		(58,967,879	)		(49,457,550	)
	(28,322,059	)		(25,727,972	)		(144,073,299	)		(124,671,100	)		(99,752,639	)		(81,733,948	)

	(37,129,020	)		(33,744,847	)		(175,631,706	)		(150,937,783	)		(158,720,518	)		(131,191,498	)


	(837,627	)		(10,129,837	)		(2,709,458	)		(21,673,573	)		(12,292,505	)		(22,368,057	)
	(16,089,521	)		(23,329,001	)		(86,865,404	)		(129,890,525	)		(18,633,415	)		(14,476,181	)

	(16,927,148	)		(33,458,838	)		(89,574,862	)		(151,564,098	)		(30,925,920	)		(36,844,238	)

	26,925,524			(91,946,307	)		89,757,187			(424,937,131	)		99,408,632			(276,256,117	)

	507,407,513			599,353,820			2,039,934,523			2,464,871,654			1,452,084,618			1,728,340,735

$	534,333,037		$	507,407,513		$	2,129,691,710		$	2,039,934,523		$	1,551,493,250		$	1,452,084,618


	MML Aggressive Allocation Fund
	Year Ended December 31, 2019			Year Ended December 31, 2018
Increase (Decrease) in Net Assets:
Operations:
Net investment income (loss)	$	1,642,529		$	1,491,704
Net realized gain (loss)		8,932,582			14,143,351
Net change in unrealized appreciation (depreciation)		21,689,527			(28,171,514	)

Net increase (decrease) in net assets resulting from operations		32,264,638			(12,536,459	)

Distributions to shareholders (Note 2):
Initial Class		(6,937,589	)		(4,023,507	)
Service Class		(9,487,948	)		(5,643,220	)
Service Class I		-			-

Total distributions		(16,425,537	)		(9,666,727	)

Net fund share transactions (Note 5):
Initial Class		5,117,999			(1,349,671	)
Service Class		3,031,713			6,197,083
Service Class I		-			-

Increase (decrease) in net assets from fund share transactions		8,149,712			4,847,412

Total increase (decrease) in net assets		23,988,813			(17,355,774	)
Net assets
Beginning of year		139,407,338			156,763,112

End of year	$	163,396,151		$	139,407,338


MML American Funds Growth Fund						MML American Funds International Fund						MML American Funds Core Allocation Fund
Year Ended December 31, 2019			Year Ended December 31, 2018			Year Ended December 31, 2019			Year Ended December 31, 2018			Year Ended December 31, 2019			Year Ended December 31, 2018


$	570,854		$	11,374		$	587,822		$	781,870		$	15,031,237		$	15,009,554
	23,576,540			24,089,387			3,242,397			3,966,820			47,561,727			77,288,807
	23,915,036			(24,719,323	)		8,463,025			(13,493,195	)		101,458,840			(140,549,710	)

	48,062,430			(618,562	)		12,293,244			(8,744,505	)		164,051,804			(48,251,349	)


	-			-			-			-			-			-
	-			-			-			-			-			-
	(24,103,348	)		(20,518,506	)		(4,781,345	)		(2,601,370	)		(93,729,834	)		(91,047,579	)

	(24,103,348	)		(20,518,506	)		(4,781,345	)		(2,601,370	)		(93,729,834	)		(91,047,579	)


	-			-			-			-			-			-
	-			-			-			-			-			-
	10,716,727			11,600,753			(281,004	)		1,126,970			(24,961,620	)		1,076,141

	10,716,727			11,600,753			(281,004	)		1,126,970			(24,961,620	)		1,076,141

	34,675,809			(9,536,315	)		7,230,895			(10,218,905	)		45,360,350			(138,222,787	)

	162,359,884			171,896,199			56,712,247			66,931,152			956,051,043			1,094,273,830

$	197,035,693		$	162,359,884		$	63,943,142		$	56,712,247		$	1,001,411,393		$	956,051,043


			Income (loss) from investment operations								Less distributions to shareholders														Ratios / Supplemental Data
	Net asset value, beginning of period		Net investment income (loss)^c		Net realized and unrealized gain (loss) on investments			Total income (loss) from investment operations			From net investment income			From net realized gains			Total distributions			Net asset value, end of the period		Total return^m			Net assets, end of the period (000’s)		Ratio of expenses to average daily net assets^w		Net investment income (loss) to average daily net assets
Initial Class
12/31/19	$	9.23	$	0.25	$	1.13		$	1.38		$	(0.28	)	$	(0.38	)	$	(0.66	)	$	9.95		15.20%		$	95,290		0.13%		2.55%
12/31/18		10.01		0.22		(0.55	)		(0.33	)		(0.25	)		(0.20	)		(0.45	)		9.23		(3.50%	)		90,797		0.12%		2.22%
12/31/17		9.63		0.22		0.70			0.92			(0.23	)		(0.31	)		(0.54	)		10.01		9.62%			107,294		0.12%		2.23%
12/31/16		9.83		0.20		0.37			0.57			(0.24	)		(0.53	)		(0.77	)		9.63		5.78%			112,989		0.12%		2.01%
12/31/15		10.94		0.21		(0.25	)		(0.04	)		(0.32	)		(0.75	)		(1.07	)		9.83		(0.38%	)		117,636		0.12%		1.96%
Service Class
12/31/19	$	9.13	$	0.22	$	1.12		$	1.34		$	(0.25	)	$	(0.38	)	$	(0.63	)	$	9.84		14.93%		$	312,658		0.38%		2.31%
12/31/18		9.90		0.19		(0.53	)		(0.34	)		(0.23	)		(0.20	)		(0.43	)		9.13		(3.70%	)		306,230		0.37%		1.94%
12/31/17		9.53		0.20		0.68			0.88			(0.20	)		(0.31	)		(0.51	)		9.90		9.33%			368,843		0.37%		2.00%
12/31/16		9.74		0.18		0.35			0.53			(0.21	)		(0.53	)		(0.74	)		9.53		5.48%			364,364		0.37%		1.80%
12/31/15		10.85		0.19		(0.26	)		(0.07	)		(0.29	)		(0.75	)		(1.04	)		9.74		(0.63%	)		338,677		0.37%		1.76%


	Year ended December 31
	2019			2018			2017			2016			2015
Portfolio turnover rate^x		29	%		18	%		14	%		24	%		29	%


Fund		Investment Advisory Fee
Conservative Allocation Fund		0.10%
Balanced Allocation Fund		0.10%
Moderate Allocation Fund		0.10%
Growth Allocation Fund		0.10%
Aggressive Allocation Fund		0.10%
MML American Funds Growth Fund		0.15% on the first $500 million; and
		0.125% on any excess over $500 million
MML American Funds International Fund		0.15% on the first $500 million; and
		0.125% on any excess over $500 million
MML American Funds Core Allocation Fund		0.20% on the first $750 million; and
		0.175% on any excess over $750 million


	Service Class I
MML American Funds Growth Fund		0.25%
MML American Funds International Fund		0.25%
MML American Funds Core Allocation Fund		0.25%


	Service Class I
MML American Funds Growth Fund		0.70%
MML American Funds International Fund		0.70%


	Purchases				Sales
	Long-Term U.S. Government Securities		Other Long-Term Securities		Long-Term U.S. Government Securities		Other Long-Term Securities
Conservative Allocation Fund	$	-	$	119,588,904	$	-	$	143,020,951
Balanced Allocation Fund		-		149,478,861		-		170,989,889
Moderate Allocation Fund		-		587,529,052		-		717,901,490
Growth Allocation Fund		-		434,353,109		-		515,111,818
Aggressive Allocation Fund		-		52,451,201		-		48,513,515
MML American Funds Growth Fund		-		27,756,619		-		21,315,097
MML American Funds International Fund		-		4,650,862		-		7,563,988
MML American Funds Core Allocation Fund		-		159,848,327		-		215,348,067


	Federal Income Tax Cost		Tax Basis Unrealized Appreciation		Tax Basis Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)
Conservative Allocation Fund	$	411,154,572	$	102,103	$	(2,961,161	)	$	(2,859,058	)
Balanced Allocation Fund		535,965,930		4,108,049		(5,314,570	)		(1,206,521	)
Moderate Allocation Fund		2,127,783,177		32,865,178		(29,360,718	)		3,504,460
Growth Allocation Fund		1,539,578,401		36,846,057		(23,922,854	)		12,923,203
Aggressive Allocation Fund		163,712,665		2,473,963		(2,648,818	)		(174,855	)
MML American Funds Growth Fund		175,460,314		21,816,298		-			21,816,298
MML American Funds International Fund		58,798,650		5,247,250		-			5,247,250
MML American Funds Core Allocation Fund		961,670,518		40,897,948		-			40,897,948


	Ordinary Income		Long Term Capital Gain
Conservative Allocation Fund	$	10,342,993	$	15,519,906
Balanced Allocation Fund		12,564,829		24,564,191
Moderate Allocation Fund		48,785,966		126,845,740
Growth Allocation Fund		32,280,377		126,440,141
Aggressive Allocation Fund		2,782,167		13,643,370
MML American Funds Growth Fund		581,644		23,521,704
MML American Funds International Fund		1,681,469		3,099,876
MML American Funds Core Allocation Fund		23,619,099		70,110,735


	Amount
Conservative Allocation Fund	$	69,897
Balanced Allocation Fund		126,681
Moderate Allocation Fund		660,331
Growth Allocation Fund		622,374
Aggressive Allocation Fund		76,988
MML American Funds International Fund		114,304
MML American Funds Core Allocation Fund		247,562


	Undistributed Ordinary Income		Undistributed Long Term Capital Gain (Capital Loss Carryover)		Other Temporary Differences			Unrealized Appreciation (Depreciation)
Conservative Allocation Fund	$	10,449,885	$	11,643,550	$	(44,539	)	$	(2,859,058	)
Balanced Allocation Fund		12,332,861		17,487,297		(54,540	)		(1,206,521	)
Moderate Allocation Fund		43,751,101		89,209,838		(202,632	)		3,504,460
Growth Allocation Fund		28,093,176		87,973,489		(163,843	)		12,923,203
Aggressive Allocation Fund		2,214,201		10,345,755		(12,210	)		(174,855	)
MML American Funds Growth Fund		1,556,780		22,586,311		(12,602	)		21,816,298
MML American Funds International Fund		585,678		3,245,303		(5,677	)		5,247,250
MML American Funds Core Allocation Fund		16,119,788		50,315,604		(80,642	)		40,897,948


	Paid-in Capital		Accumulated Net Realized Gain (Loss) on Investments			Undistributed Net Investment Income (Loss)
Conservative Allocation Fund	$	-	$	(682,390	)	$	682,390
Balanced Allocation Fund		-		(1,084,751	)		1,084,751
Moderate Allocation Fund		-		(5,205,353	)		5,205,353
Growth Allocation Fund		-		(4,747,506	)		4,747,506
Aggressive Allocation Fund		-		(576,079	)		576,079
MML American Funds Growth Fund		-		(990,227	)		990,227
MML American Funds Core Allocation Fund		-		(1,117,870	)		1,117,870


	Beginning Value as of 12/31/18		Purchases		Sales			Change in Unrealized Appreciation/ Depreciation			Net Realized Gain (Loss)			Value as of 12/31/19			Number of Shares Held as of 12/31/19		Dividend Income		Realized Gains Distributions
Conservative Allocation Fund

Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund/VA, Series I	$	2,444,532	$	369,448	$	(1,234,189	)	$	489,007		$	66,419		$	2,135,217	#		25,474	$	-	$	256,933

Invesco Oppenheimer V.I. Global Fund/VA, Series I		6,015,043		1,186,365		(3,796,925	)		288,621			194,800			3,887,904	#		91,373		55,946		883,704

Invesco Oppenheimer V.I. Global Strategic Income Fund/VA, Series I		-		10,971,382		-			99,112			-			11,070,494	#		2,227,463		401,381		-

Invesco Oppenheimer V.I. International Growth Fund/VA, Series I		5,246,382		414,496		(5,481,090	)		682,500			158,681			1,020,969	#		416,722		15,309		75,065

Invesco Oppenheimer V.I. Main Street Fund/VA, Series I		4,201,052		998,150		(618,494	)		513,201			(19,642	)		5,074,267	#		172,360		50,889		766,072

MML Blue Chip Growth Fund, Initial Class		8,639,754		4,091,452		(2,493,479	)		1,047,165			351,662			11,636,554			705,673		-		1,322,091

MML Dynamic Bond Fund, Class II		63,036,979		5,609,885		(16,259,425	)		2,870,001			87,143			55,344,583			5,490,534		2,126,555		-

MML Equity Income Fund, Initial Class		11,259,033		3,513,059		(3,404,767	)		1,580,691			(71,517	)		12,876,499			1,151,744		262,004		1,054,997

MML Equity Index Fund, Class III		11,881,555		175,541		(12,926,422	)		(311,664	)		2,124,997			944,007			29,145		27,093		77,971

MML Focused Equity Fund, Class II		2,409,391		14,339,701		(2,240,212	)		2,547,851			(384,500	)		16,672,231			2,462,663		44,941		353,461

MML Foreign Fund, Initial Class		8,108,780		1,461,233		(2,294,503	)		1,041,970			(265,986	)		8,051,494			797,178		142,982		118,601

MML Fundamental Growth Fund, Class II		6,255,798		1,754,896		(1,486,568	)		769,009			(177,821	)		7,115,314			710,111		34,390		1,315,209

MML Fundamental Value Fund, Class II		8,514,994		5,056,432		(2,297,792	)		888,407			(152,772	)		12,009,269			917,438		200,644		1,208,651

MML Global Fund, Class I		10,337,781		9,443,196		(3,202,194	)		3,273,927			(134,245	)		19,718,465			1,533,318		127,987		609,720

MML High Yield Fund, Class II		11,812,135		3,376,062		(3,890,129	)		1,223,905			(565,072	)		11,956,901			1,249,415		720,794		-

MML Income & Growth Fund, Initial Class		12,229,220		1,421,397		(2,572,355	)		2,478,578			(394,021	)		13,162,819			1,324,227		252,969		479,798

MML Inflation-Protected and Income Fund, Initial Class		16,508,925		2,459,201		(3,081,575	)		1,048,068			(68,611	)		16,866,008			1,640,662		416,166		-

MML International Equity Fund, Class II		6,747,836		3,832,032		(1,839,157	)		1,147,426			(70,845	)		9,817,292			972,009		187,641		633,681

MML Large Cap Growth Fund, Initial Class		2,599,324		1,179,178		(1,151,696	)		405,410			30,936			3,063,152			276,208		17,618		372,486

MML Managed Bond Fund, Initial Class		79,263,697		24,166,014		(22,869,624	)		5,532,459			(565,276	)		85,527,270			6,770,992		3,200,876		-

MML Mid Cap Growth Fund, Initial Class		6,778,479		4,599,114		(1,870,234	)		1,009,898			(85,827	)		10,431,430			656,891		2,149		1,346,965

MML Mid Cap Value Fund, Initial Class		7,785,334		1,917,330		(1,768,240	)		1,406,067			(212,698	)		9,127,793			861,113		143,639		886,184