-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Htp9cYl3knDKG4HnuEEP+kcQ6xHLLBTsmKIV8wugvRXuvbwuHss8j1Rc6+q/XPcu gqIdzriSGuN4hsUT5NouYQ== 0001021408-01-506014.txt : 20010829 0001021408-01-506014.hdr.sgml : 20010829 ACCESSION NUMBER: 0001021408-01-506014 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010630 FILED AS OF DATE: 20010828 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SAGE LIFE INVESTMENT TRUST CENTRAL INDEX KEY: 0001054187 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-08623 FILM NUMBER: 1724955 BUSINESS ADDRESS: STREET 1: 101 FEDERAL STREET STREET 2: 101 FEDERAL STREET CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 617-573-1550 MAIL ADDRESS: STREET 1: 53 STATE STREET CITY: BOSTON STATE: MA ZIP: 02109 N-30D 1 dn30d.txt SAGE LIFE INVESTMENT TRUST SEMI-ANNUAL REPORT Sage Life Investment Trust S&P 500(R) EQUITY INDEX FUND ================================================================================ [PICTURE] Semi-Annual Report June 30, 2001 [LOGO]SAGE ================================================================================ [LOGO]SAGE Dear Contract Owner: We are pleased to present you with this semi-annual report about the S&P 500 Equity Index Fund (the "Fund") of the Sage Life Investment Trust for the six month period ending June 30, 2001. The Fund is available only to owners of Sage Life's Asset I and Asset II variable annuities and LifeAsset I variable life insurance contract. The report provides financial information about the Fund. Thank you for your investment in Sage funds and products. Sincerely, SAGE LIFE INVESTMENT TRUST /s/ Robin I. Marsden Robin I. Marsden President and Chief Executive Officer Sage Life Investment Trust S&P 500 Equity Index Fund Illustration of an Assumed Investment of $10,000 The graph below compares the growth in value of a $10,000 investment in the Sage S&P 500 Equity Index Fund with the performance of the S & P 500 Composite Stock Price Index. The graph assumes that distributions are reinvested. S & P 500 Equity Index Fund Total Return Performance [GRAPH] S & P 500 Stock S & P 500 Equity Index Fund Index Returns Feb-19-99 10,000.00 10,000.00 Mar-99 10,350.00 10,380.73 Jun-99 11,070.00 11,077.48 Sep-99 10,340.00 10,351.20 Dec-99 11,872.00 11,856.54 Mar-00 12,195.00 12,093.22 Jun-00 11,801.00 11,738.31 Sep-00 11,690.00 11,592.33 Dec-00 10,826.00 10,890.82 Mar-01 9,532.00 9,363.62 Jun-01 10,068.00 10,165.00 Past performance does not guarantee future results. Average Annual Total Return for the Periods ended June 30, 2001
Period Ended June 30, 2001 Since inception * S & P 500 Equity Index Fund (7.00%) 0.29% S & P 500 Composite Stock Price Index (6.69%) 0.70%
* Inception date February 19, 1999 Past performance is not indicitive of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The returns presented assume the reinvestment of dividend and capital gain distributions. Performance would have been lower during the specified periods had certain fees and expenses not been waived by the Fund. 1 SAGE LIFE INVESTMENT TRUST S&P 500 Equity Index Fund June 30, 2001 Schedule of Investments (Unaudited)
Market Shares Value - ------ ----- COMMON STOCK - 98.6% Advertising - 0.3% 145 Interpublic Group of Co.,......... $ 4,256 Inc 37 Omnicom Group, Inc................ 3,182 100 TMP Worldwide, Inc.*.............. 6,000 ------------ 13,438 ------------ Aerospace - 0.5% 126 General Dynamics Corp............. 9,804 100 Goodrich Corp..................... 3,798 200 Lockheed Martin Corp.............. 7,410 156 Raytheon Co....................... 4,142 ------------ 25,154 ------------ Airlines - 0.1% 64 AMR Corp.*........................ 2,312 51 Delta Air Lines, Inc.............. 2,248 57 US Airways Group, Inc.*........... 1,385 ------------ 5,945 ------------ Automobiles - 0.9% 895 Ford Motor Co..................... 21,972 259 General Motors Corp............... 16,667 162 Harley-Davidson, Inc.............. 7,627 ------------ 46,266 ------------ Auto Parts - 0.2% 100 Dana Corp......................... 2,334 100 Genuine Parts Co.................. 3,150 63 TRW, Inc.......................... 2,583 59 Visteon Corp...................... 1,084 ------------ 9,151 ------------ Banks - 5.9% 757 Bank of America Corp.............. 45,443 319 Bank of New York Co., Inc......... 15,312 571 Bank One Corp..................... 20,442 2,354 Citigroup, Inc.................... 124,385 470 Fleet Boston Financial Corp....... 18,542 121 Huntington Bancshares, Inc........ 1,978 200 Mellon Financial Corp............. 9,200 278 National City Corp................ 8,557 100 St. Paul Co., Inc................. 5,069 186 State Street Corp................. 9,205 123 Suntrust Banks, Inc............... 7,968 905 U.S. Bancorp...................... 20,625 391 Washington Mutual, Inc............ 14,682 ------------ 301,408 ------------ Beverages - 2.1% 422 Anheuser-Busch Co., Inc........... 17,386 50 Brown-Forman Corp................. 3,197 1,168 Coca-Cola Co...................... 52,560 200 Coca-Cola Enterprises, Inc........ 3,270 100 Pepsi Bottling Group, Inc......... 4,010 652 Pepsico, Inc...................... 28,819 ------------ 109,242 ------------ Broadcasting - 1.5% 257 Clear Channel..................... 16,114 Communications, Inc.* 400 Comcast Corp.*.................... 17,360 795 Viacom, Inc.*..................... 41,141 ------------ 74,615 ------------ Building Materials - 0.1% 200 Masco Corp........................ 4,992 100 Sherwin-Williams Co............... 2,220 ------------ 7,212 ------------ Business Services - 0.5% 359 Cendant Corp.*.................... $ 7,001 116 Cintas Corp....................... 5,365 104 Convergys Corp.*.................. 3,146 100 Fiserv, Inc.*..................... 6,398 98 Perkinelmer, Inc.................. 2,698 100 Robert Half International,........ 2,489 Inc.* 110 Sapient Corp.*.................... 1,072 ----------- 28,169 ----------- Chemicals & Allied Products - 4.6% 100 Air Products & Chemicals,......... 4,575 Inc 635 American Home Products Corp....... 37,109 898 Bristol-Myers Squibb Co........... 46,965 422 Dow Chemical Co................... 14,032 516 Du Pont, (E.I.) de Nemours........ 24,892 & Co 47 Eastman Chemical Co............... 2,239 100 Engelhard Corp.................... 2,579 200 Halliburton Co.................... 7,120 640 Pharmacia Corp.................... 29,408 1,056 Philip Morris Co., Inc............ 53,592 75 PPG Industries, Inc............... 3,943 116 Rohm & Haas Co.................... 3,816 100 UST, Inc.......................... 2,886 ----------- 233,156 ----------- Clothing Chains - 0.1% 70 V.F. Corp......................... 2,547 ----------- Commercial Services - 2.3% 2,033 AOL Time Warner, Inc.*............ 107,749 100 Ecolab, Inc....................... 4,097 125 Paychex, Inc...................... 5,000 ----------- 116,846 ----------- Communication Information - 3.0% 100 Alltel Corp....................... 6,126 126 Applied Micro Circuits............ 2,167 Corp.* 1,105 AT&T Corp......................... 24,310 859 BellSouth Corp.................... 34,592 104 Broadcom Corp.*................... 4,447 108 Linear Technology Corp............ 4,776 117 Maxim Integrated Products,........ 5,173 Inc.* 336 Qualcomm, Inc.*................... 19,649 799 Qwest Communication............... 25,464 International, Inc 200 Siebel Systems, Inc.*............. 9,380 52 Univision Communications,......... 2,225 Inc.* 190 Veritas Software Corp.*........... 12,640 ----------- 150,949 ----------- Computer Industry - 7.3% 85 Adobe Systems, Inc................ 3,995 280 Automatic Data Processing,........ 13,916 Inc 100 BMC Software, Inc.*............... 2,254 63 Broadvision, Inc.*................ 315 43 Cabletron Systems, Inc.*.......... 983 100 Computer Sciences Corp.*.......... 3,460 1,178 Dell Computer Corp.*.............. 30,805 1,024 EMC Corp.*........................ 29,747 200 Electronic Data Systems........... 12,500 Corp 165 Gateway, Inc.*.................... 2,715 55 Intuit, Inc.*..................... 2,199 81 Lexmark International,............ 5,447 Inc.*
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Market Shares Value - ------ ----- 2,504 Microsoft Corp.*................... $ 182,792 2,542 Oracle Corp.*...................... 48,298 72 Sabre Holdings Corp.*.............. 3,600 1,548 Sun Microsystems, Inc.*............ 24,334 200 Unisys Corp.*...................... 2,942 309 Yahoo!, Inc.*...................... 6,177 ------------ 376,479 ------------ Computer Software & Services - 1.3% 108 Applera Corp....................... 2,889 100 Ceridian Corp.*.................... 1,917 3,387 Cisco Systems, Inc.*............... 61,643 47 Citrix Systems, Inc.*.............. 1,641 ------------ 68,090 ------------ Conglomerates - 0.1% 63 Textron, Inc....................... 3,467 ------------ Consumer Products - 2.3% 100 Avon Products, Inc................. 4,628 100 Best Buy Co., Inc.*................ 6,352 64 Black & Decker Corp................ 2,525 100 Clorox Co.......................... 3,385 300 Colgate-Palmolive Co............... 17,697 200 Compuware Corp.*................... 2,798 447 Corning, Inc....................... 7,469 100 Fortune Brands, Inc................ 3,836 530 Gillette Co........................ 15,365 100 Goodyear Tire & Rubber Co.......... 2,800 62 Grainger (W.W.), Inc............... 2,552 130 Hasbro, Inc........................ 1,879 44 International Flavors &............ 1,106 Fragrances, Inc 200 Mattel, Inc.*...................... 3,784 50 Maytag Corp........................ 1,463 134 Newell Rubbermaid, Inc............. 3,363 ------------ 601 Procter & Gamble Co................ 38,344 ------------ 119,346 Consumer Services - 3.6% 163 Albertson's, Inc................... 4,888 156 Dollar General Corp................ 3,042 100 Donnelley R.R. & Sons Co........... 2,970 162 Fedex Corp.*....................... 6,512 130 Gannett Co., Inc................... 8,567 128 May Department Stores Co........... 4,385 100 New York Times Co. Class A......... 4,200 100 Office Depot, Inc.*................ 1,038 149 Sears, Roebuck & Co................ 6,304 298 Sysco Corp......................... 8,091 160 TJX Co., Inc....................... 5,099 55 Toys "R" Us, Inc.*................. 1,361 2,057 Wal-Mart Stores, Inc............... 100,382 941 Walt Disney Co.*................... 27,186 ------------ 184,025 ------------ Diversified Manufacturing - 1.7% 200 BB&T Corp.......................... 7,340 11 FMC Corp.*......................... 754 207 Minnesota Mining And............... 23,619 Manufacturing Co 51 Nucor Corp......................... 2,493 100 Pall Corp.......................... 2,353 100 Thermo Electron Corp.*............. 2,202 908 Tyco International Ltd............. 49,486 ------------ 88,247 ------------ Electric Services - 0.5% 20 Ameren Corp........................ 854 100 FirstEnergy Corp................... 3,216 70 GPU, Inc........................... 2,461 70 Nisource, Inc...................... 1,913 232 PG&E Corp.*........................ 2,598 68 PPL Corp........................... 3,740 77 TXU Corp........................... 3,711 200 Williams Co., Inc.................. 6,590 ------------ 25,083 ------------ Electric Machinery Equipment - 0.4% 64 Cooper Industries, Inc............. $ 2,534 100 Deere & Co......................... 3,785 178 Emerson Electric Co................ 10,769 126 Network Appliance, Inc.*........... 1,726 74 Parker-Hannifin Corp............... 3,140 ------------ 21,954 ------------ Electronics - 1.7% 133 Advanced Mirco Devices,............ 3,841 Inc.* 200 Altera Corp.*...................... 5,800 100 American Power Conversion.......... 1,575 Corp.* 155 Analog Devices, Inc.*.............. 6,704 367 Applied Materials, Inc.*........... 18,020 56 Jabil Circuit, Inc.*............... 1,728 100 KLA Tencor Corp.*.................. 5,847 169 LSI Logic Corp.*................... 3,177 252 Micron Technology, Inc.*........... 10,357 141 Molex, Inc......................... 5,151 68 QLogic Corp.*...................... 4,383 100 Rockwell International Corp........ 3,812 130 Sanmina Corp.*..................... 3,043 342 Solectron Corp.*................... 6,259 100 Teradyne, Inc.*.................... 3,310 126 Xilinx, Inc.*...................... 5,196 ------------ 88,203 ------------ Financial Services - 8.7% 337 Allstate Corp...................... 14,825 100 Ambac Financial Group, Inc......... 5,820 600 American Express Co................ 23,280 200 AmSouth Bancorporation............. 3,698 84 Bear Stearns Co., Inc.............. 4,953 100 Capital One Financial Corp......... 6,000 652 Charles Schwab Corp................ 9,976 100 Charter One Financial, Inc......... 3,190 72 Chubb Corp......................... 5,575 73 Comerica, Inc...................... 4,205 139 Concord EFS, Inc.*................. 7,229 73 Countrywide Credit................. 3,349 Industries, Inc 100 Equifax, Inc....................... 3,668 474 Fannie Mae......................... 40,361 257 Fifth Third Bancorp................ 15,433 474 First Union Corp................... 16,562 100 Franklin Resources, Inc............ 4,577 273 Freddie Mac........................ 19,110 96 Golden West Financial Corp......... 6,167 54 H&R Block, Inc..................... 3,486 100 Hartford Financial................. 6,840 Services Group, Inc 200 Household International,........... 13,340 Inc 40 John Hancock Financial............. 1,610 Services, Inc.* 928 J.P. Morgan Chase & Co............. 41,389 200 KeyCorp............................ 5,210 141 Lehman Brothers Holding,........... 10,963 Inc 75 Loews Corp......................... 4,832 75 MBIA, Inc.......................... 4,176 362 MBNA Corp.......................... 11,928 342 Merrill Lynch & Co................. 20,264 479 Morgan Stanley Dean Witter......... 30,766 & Co 100 Northern Trust Corp................ 6,250 118 PNC Financial Services............. 7,763 Group 102 Providian Financial Corp........... 6,038 100 Regions Financial Corp............. 3,200 200 Southtrust Corp.................... 5,200 106 Stilwell Financial, Inc............ 3,557 100 Synovus Financial Corp............. 3,138 100 T. Rowe Price Group, Inc........... 3,739 75 Torchmark Corp..................... 3,016 100 Union Planters Corp................ 4,360 100 USA Education, Inc................. 7,300 72 Wachovia Corp...................... 5,123 771 Wells Fargo & Co................... 35,797 ------------ 447,263 ------------
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Market Shares Value - ------ ----- Food - 1.4% 330 Archer-Daniels-Midland Co........................... $ 4,290 175 Campbell Soup Co.................................... 4,506 300 Conagra Foods, Inc.................................. 5,943 104 General Mills, Inc.................................. 4,553 126 Heinz (H.J.) Co..................................... 5,152 54 Hershey Foods Corp.................................. 3,332 172 Kellogg Co.......................................... 4,988 55 Quaker Oats Co...................................... 5,019 120 Ralston Purina Group................................ 3,602 400 Sara Lee Corp....................................... 7,576 100 Supervalue, Inc..................................... 1,755 308 Unilever NV......................................... 18,348 100 WM. Wrigley Jr. Co.................................. 4,685 ------------- 73,749 ------------- Gold & Mining - 0.1% 177 Barrick Gold Corp................................... 2,682 100 Homestake Mining Co.*............................... 775 100 Newmont Mining Corp................................. 1,861 200 Placer Dome, Inc.................................... 1,959 ------------- 7,277 ------------- Health Care Services - 3.2% 67 Aetna, Inc.*........................................ 1,733 500 Amgen, Inc.*........................................ 30,340 542 Eli Lilly & Co...................................... 40,108 1,366 Johnson & Johnson................................... 68,300 100 McKesson HBOC, Inc.................................. 3,712 156 Tenet Healthcare Corp.*............................. 8,048 150 UnitedHealth Group, Inc............................. 9,263 39 Wellpoint Health Networks, Inc.*.................... 3,675 ------------- 165,179 ------------- Home Furnishings Store - 0.1% 100 Leggett & Platt, Inc................................ 2,203 ------------- Hotels - 0.3% 100 Harrah's Entertainment, Inc.*....................... 3,530 200 Hilton Hotels Corp.................................. 2,320 100 Marriott International, Inc......................... 4,734 100 Starwood Hotel & Resorts............................ 3,728 ------------- Worldwide, Inc...................................... 14,312 ------------- Insurance - 3.5% 255 Aflac, Inc.......................................... 8,030 200 American General Corp............................... 9,290 1,034 American International.............................. 88,924 Group, Inc 150 Aon Corp............................................ 5,250 52 Cigna Corp.......................................... 4,983 100 Cincinnati Financial Corp........................... 3,950 200 Conseco, Inc.*...................................... 2,730 309 Delphi Automotive Systems Corp...................... 4,922 100 Humana, Inc.*....................................... 985 75 Jefferson-Pilot Corp................................ 3,624 100 Lincoln National Corp............................... 5,175 105 Marsh & McLennan Co., Inc........................... 10,605 384 MetLife, Inc.*...................................... 11,896 67 MGIC Investment Corp................................ 4,867 40 Progressive Corp.................................... 5,408 80 Safeco Corp......................................... 2,360 143 Unumprovident Corp.................................. 4,593 ------------- 177,592 ------------- Machinery - 0.2% 160 Caterpillar, Inc.................................... 8,008 100 Ingersoll-Rand Co................................... 4,120 ------------- 12,128 ------------- Manufacturing Industries - 0.9% 122 Alcan, Inc.......................................... 5,126 426 Alcoa, Inc.......................................... 16,784 100 Danaher Corp........................................ 5,600 100 Dover Corp.......................................... 3,765 107 Eastman Kodak Co.................................... 4,995 100 Illinois Tool Works, Inc............................ 6,330 100 Inco Ltd.*.......................................... 1,726 1 Johnson Controls, Inc............................... $ 73 19 Millipore Corp...................................... 1,178 ------------- 45,577 ------------- Medical Equipment & Supplies - 1.5% 310 Baxter International, Inc........................... 15,190 100 Becton, Dickson & Co................................ 3,579 117 Biomet, Inc.*....................................... 5,623 200 Boston Scientific Corp.*............................ 3,400 151 Guidant Corp.*...................................... 5,436 267 HCA, Inc............................................ 12,066 200 Healthsouth Corp.*.................................. 3,194 512 Medtronic, Inc...................................... 23,557 47 Stryker Corp.*...................................... 2,578 ------------- 74,623 ------------- Office & Business Equipment - 0.1% 52 Mercury Interactive Corp.*.......................... 3,115 100 Pitney Bowes, Inc................................... 4,212 ------------- 7,327 ------------- Oil & Gas - 6.9% 145 Anadarko Petroleum Corp............................. 7,834 64 Apache Corp.*....................................... 3,248 200 Baker Hughes, Inc................................... 6,700 100 Burlington Resources, Inc........................... 3,995 316 Chevron Corp........................................ 28,598 300 Conoco, Inc......................................... 8,670 66 Devon Energy Corp................................... 3,465 225 El Paso Corp........................................ 11,822 329 Enron Corp.......................................... 16,121 61 EOG Resources, Inc.................................. 2,169 1,544 Exxon Mobil Corp.................................... 134,868 26 Kerr-McGee Corp..................................... 1,723 100 Keyspan Corp........................................ 3,648 47 Nabors Industries, Inc.*............................ 1,748 50 Noble Drilling Corp.*............................... 1,638 200 Occidental Petroleum Corp........................... 5,318 16 Oneok, Inc.......................................... 315 100 Phillips Petroleum Co............................... 5,700 100 Praxair, Inc........................................ 4,700 33 Rowan Co., Inc.*.................................... 729 954 Royal Dutch Petroleum Co............................ 55,590 272 Schlumberger Ltd.................................... 14,321 244 Texaco, Inc......................................... 16,250 100 Tosco Corp.......................................... 4,405 123 Transocean Sedco Forex, Inc......................... 5,074 100 Unocal Corp......................................... 3,415 100 USX-Marathon Group.................................. 2,951 ------------- 355,015 ------------- Paper & Allied Products - 1.3% 50 Avery Dennison Corp................................. 2,553 57 Dow Jones & Co., Inc................................ 3,403 126 Georgia-Pacific Group............................... 4,265 244 International Paper Co.............................. 8,711 236 Kimberly-Clark Corp................................. 13,192 60 Knight-Ridder, Inc.................................. 3,558 100 McGraw-Hill Co., Inc................................ 6,615 79 Mead Corp........................................... 2,144 100 Moody's Corp........................................ 3,350 100 Pactiv Corp.*....................................... 1,340 50 Sealed Air Corp.*................................... 1,863 170 Tribune Co.......................................... 6,802 100 Weyerhauser Co...................................... 5,497 78 Willamette Industries, Inc.......................... 3,861 ------------- 67,154 ------------- Pharmaceuticals - 5.5% 735 Abbott Laboratories................................. 35,287 79 Allergan, Inc....................................... 6,755 65 Biogen, Inc.*....................................... 3,533 118 Chiron Corp.*....................................... 6,018 106 Forest Laboratories, Inc.*.......................... 7,526 173 IMS Health, Inc..................................... 4,931 47 King Pharmaceuticals, Inc.*......................... 2,526
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Market Shares Value - ------ ----- 58 Medimmune, Inc.*.................................... $ 2,738 1,021 Merck & Co.......................................... 65,252 2,900 Pfizer, Inc......................................... 116,145 721 Schering-Plough Corp................................ 26,129 100 Watson Pharmaceuticals, Inc.*....................... 6,164 ------------- 283,004 ------------- Railroads - 0.2% 100 CSX Corp............................................ 3,624 200 Norfolk Southern Corp............................... 4,140 ------------- 7,764 ------------- Restaurants - 0.6% 100 Darden Restaurants, Inc............................. 2,790 629 McDonald's Corp..................................... 17,021 200 Starbucks Corp.*.................................... 4,600 100 Tricon Global Restaurants, Inc.*.................... 4,390 ------------- 28,801 ------------- Retail - 4.0% 79 Autozone, Inc.*..................................... 2,963 139 Bed, Bath & Beyond, Inc.*........................... 4,170 190 Cardinal Health, Inc................................ 13,110 100 Circuit City Stores................................. 1,800 200 Costco Wholesale Corp.*............................. 8,216 176 CVS Corp............................................ 6,794 100 Federated Department................................ 4,250 Stores, Inc.* 352 Gap, Inc............................................ 10,208 1,040 Home Depot, Inc..................................... 48,412 100 J.C. Penney Co., Inc................................ 2,636 273 Kmart Corp.*........................................ 3,131 148 Kohl's Corp.*....................................... 9,284 371 Kroger Co.*......................................... 9,275 180 Limited, Inc........................................ 2,974 191 Lowe's Co........................................... 13,857 134 Nike, Inc. Class B.................................. 5,627 69 Nordstrom, Inc...................................... 1,280 100 Radioshack Corp..................................... 3,050 200 Safeway, Inc.*...................................... 9,600 200 Staples, Inc.*...................................... 3,198 456 Target Corp......................................... 15,778 105 Tiffany & Co........................................ 3,803 519 Walgreen Co......................................... 17,724 64 Winn-Dixie Stores, Inc.............................. 1,670 ------------- 202,810 ------------- Semiconductors - 0.1% 91 Conexant Systems, Inc.*............................. 814 82 Novellus System, Inc.*.............................. 4,657 ------------- 5,471 ------------- Technology - 11.5% 171 Agilent Technologies, Inc.*......................... 5,558 200 Apple Computer, Inc.*............................... 4,650 364 Boeing Co........................................... 20,238 758 Compaq Computer Corp................................ 11,741 260 Computer Associates................................. 9,360 International, Inc 200 First Data Corp..................................... 12,850 4,616 General Electric Co................................. 225,030 848 Hewlett-Packard Co.................................. 24,253 3,062 Intel Corp.......................................... 89,564 843 International Business.............................. 95,259 Machines Corp 1,030 Motorola, Inc....................................... 17,057 100 National Semiconductor.............................. 2,912 Corp.* 1,499 Nortel Networks Corp.*.............................. 13,626 176 Novell, Inc.*....................................... 1,001 250 Palm, Inc.*......................................... 1,518 100 Parametric Technology............................... 1,399 Corp.* 100 PeopleSoft, Inc.*................................... 4,923 200 Tellabs, Inc.*...................................... 3,876 832 Texas Instruments, Inc.............................. 26,208 235 United Technologies Corp............................ 17,216 325 Xerox Corp.......................................... 3,110 ------------- 591,349 ------------- Telecommunications - 1.6% 412 ADC Telecommunications, Inc.* $.................... 2,719 588 AT&T Wireless Group.*............................... 9,614 110 Avaya, Inc.*........................................ 1,507 25 CenturyTel, Inc..................................... 758 138 Citizens Communications Co.*........................ 1,660 103 Comverse Tecnology, Inc.*........................... 5,881 113 Dominion Resources, Inc............................. 6,795 419 Global Crossing Ltd.*............................... 3,620 658 JDS Uniphase Corp.*................................. 8,225 1,525 Lucent Technologies, Inc............................ 9,455 345 Nextel Communications, Inc.......................... 6,038 Class A.* 85 Scientific Atlanta, Inc............................. 3,451 368 Sprint Corp......................................... 7,860 413 Sprint PCS Corp.*................................... 9,974 142 Symbol Technologies, Inc............................ 3,152 77 Vitesse Semiconductor Corp.*........................ 1,620 ------------- 82,329 ------------- Transportation - 0.5% 200 Burlington Northern Santa Fe........................ 6,034 Corp 300 Carnival Corp....................................... 9,210 343 Southwest Airlines Co............................... 6,342 100 Union Pacific Corp.................................. 5,491 ------------- 27,077 ------------- Transportation Equipment - 0.2% 327 Honeywell International, Inc........................ 11,442 ------------- Utilities - 5.0% 218 AES Corp.*.......................................... 9,385 106 Allegheny Energy, Inc............................... 5,115 44 Amerada Hess Corp................................... 3,555 185 American Electric Power Co.......................... 8,541 116 Calpine Corp.*...................................... 4,385 51 Cinergy Corp........................................ 1,782 100 CMS Energy Corp..................................... 2,785 75 Consolidated Edison, Inc............................ 2,985 67 Constellation Energy Group, Inc..................... 2,854 49 DTE Energy Co....................................... 2,276 366 Duke Energy Corp.................................... 14,278 114 Dynegy, Inc......................................... 5,301 147 Edison International.*.............................. 1,639 100 Entergy Corp........................................ 3,839 163 Exelon Corp......................................... 10,452 49 FPL Group, Inc...................................... 2,950 18 Kinder Morgan, Inc.................................. 905 125 Mirant Corp.*....................................... 4,300 100 Niagara Mohawk Holdings, Inc.*...................... 1,769 18 Power-One, Inc.*.................................... 300 55 Progress Energy, Inc................................ 2,471 56 Public Service Enterprise........................... 2,738 Group, Inc 100 Reliant Energy, Inc................................. 3,221 1,533 SBC Communications, Inc............................. 61,412 66 Sempra Energy....................................... 1,804 301 Southern Co......................................... 6,998 1,246 Verizon Communications, Inc......................... 66,661 1,315 WorldCom, Inc.*..................................... 18,673 164 Xcel Energy, Inc.................................... 4,665 ------------- 258,039 ------------- Waste Management - 0.2% 100 Allied Waste Industries, Inc.*...................... 1,868 300 Waste Management, Inc.*............................. 9,246 ------------- 11,114 ------------- TOTAL INVESTMENTS - 98.6% (Cost $5,219,603)................................... 5,057,591 ------------- Cash & Other Assets, Net of Liabilities - 1.4%...... 73,457 ------------- NET ASSETS - 100.0%................................. $ 5,131,048 ============= Cost for Federal income tax purposes is $5,219,603 and net unrealized depreciation consists of: Gross unrealized appreciation $ 603,413 Gross unrealized depreciation (765,425) ------------- Net unrealized depreciation $ (162,012) =============
* Non-income producing security. 5 SAGE LIFE INVESTMENT TRUST S&P 500 Equity Index Fund Statement of Assets & Liabilities June 30, 2001 (Unaudited) Assets: Investments (Note 1): At identified cost ........................................... $ 5,219,603 =========== At market value .............................................. $ 5,057,591 Cash ............................................................ 71,721 Receivables: Receivable from advisor ...................................... 2,404 Dividends and interest ....................................... 3,717 Prepaid insurance ............................................... 1,475 ----------- Total Assets ............................................... 5,136,908 ----------- Liabilities: Payables: Payable to advisor ........................................... 2,180 Other liabilities ............................................ 3,680 ----------- Total Liabilities .......................................... 5,860 ----------- Total Net Assets ................................................ $ 5,131,048 =========== Net Assets consist of: Paid-in capital ................................................. $ 5,245,914 Undistributed net investment income ............................. 15,994 Accumulated net realized gain on investments .................... 31,152 Net unrealized depreciation on investments ...................... (162,012) ----------- Total Net Assets ................................................ $ 5,131,048 =========== Shares of beneficial interest outstanding ....................... 536,064 =========== Net Asset Value, offering price and redemption price per share .. $ 9.57 =========== See notes to financial statements 6 SAGE LIFE INVESTMENT TRUST S&P 500 Equity Index Fund Statement of Operations For the Six Months Ended June 30, 2001 (Unaudited) Investment Income: Dividends $ 27,818 Interest 764 --------- Total investment income 28,582 --------- Expenses: Investment advisory fees (Note 2) 8,722 Audit expense 6,226 Trustees' fees and expenses 2,571 Insurance expense 621 --------- Total expenses 18,140 Less: Advisory fee waivers and expense reimbursement (Note 2) (5,552) --------- Net expenses 12,588 --------- Net investment income 15,994 --------- Realized and Unrealized Gain (Loss) on Investments: Net realized gain on investments 28,860 Net change in unrealized depreciation (391,194) --------- Net realized and unrealized loss on investments (362,334) --------- Net Decrease in Net Assets Resulting from Operations $(346,340) =========
See notes to financial statements 7 SAGE LIFE INVESTMENT TRUST S&P 500 Equity Index Fund Statement of Changes in Net Assets
Six Months Ended June 30, 2001 Year Ended (Unaudited) December 31, 2000 ================= ====================== Operations: Net investment income $ 15,994 $ 31,754 Net realized gain on investments 28,860 148,906 Net change in unrealized depreciation of investments (391,194) (641,015) --------------- ------------ Net decrease in net assets resulting from operations (346,340) (460,355) --------------- ------------ Distributions: From net investment income -- (31,795) From net realized gain on investments -- (160,201) --------------- ------------ Total Distributions -- (191,996) --------------- ------------ Capital Share Transactions (a): Proceeds from sale of shares 925,572 145,443 Shares issued in reinvestment of dividends & distributions -- 191,996 Cost of shares repurchased (150,077) (950,472) --------------- ------------ Net increase (decrease) in net assets from capital share 775,495 (613,033) transactions --------------- ------------ Net increase (decrease) in net assets 429,155 (1,265,384) Net assets at beginning of period 4,701,893 5,967,277 --------------- ------------ Net assets at end of period $ 5,131,048 $ 4,701,893 =============== ============ (a) Transactions in capital stock were: Shares sold 94,846 12,850 Shares issued in reinvestment of dividends and distributions -- 18,479 Shares repurchased (15,836) (81,732) --------------- ------------ Net increase (decrease) in shares from capital share transactions 79,010 (50,403) =============== ============
See notes to financial statements 8 SAGE LIFE INVESTMENT TRUST S&P 500 Equity Index Fund Financial Highlights The table below sets forth financial data for one share of capital stock outstanding throughout the periods presented.
Six Months Ended June 30, 2001 Year Ended Period Ended (Unaudited) December 31, 2000 December 31, 1999 (1) =================== =================== =================== Net Asset Value, Beginning of Period $ 10.29 $ 11.76 $ 10.00 ------------------- ------------------- ------------------- Operations: Net investment income 0.03 0.07 0.08 Net realized and unrealized gain (loss) on investments (0.75) (1.10) 1.79 ------------------- ------------------- ------------------- Total from Investment Operations (0.72) (1.03) 1.87 ------------------- ------------------- ------------------- Distributions to Shareholders: Dividends from net investment income - (0.07) (0.08) Distributions from net realized gain on investments - (0.37) (0.03) ------------------- ------------------- ------------------- Total Distributions - (0.44) (0.11) ------------------- ------------------- ------------------- Net Asset Value, End of Period $ 9.57 $ 10.29 $ 11.76 =================== =================== =================== Total Return** (7.00%) (8.81%) 18.72% Ratios/Supplemental Data: Net Assets, end of period (in thousands) $ 5,131 $ 4,702 $ 5,967 Ratio of Net Investment Income to Average Net Assets Before waiver/reimbursement of investment advisory fees 0.45% * 0.27% 0.66% * After waiver/reimbursement of investment advisory fees 0.69% * 0.62% 0.83% * Ratio of Expenses to Average Net Assets Before waiver/reimbursement of investment advisory fees 0.79% * 0.90% 0.72% * After waiver/reimbursement of investment advisory fees 0.55% * 0.55% 0.55% * Portfolio Turnover 5% 5% 3%
(1) Commenced operations on February 19, 1999. * Ratios have been annualized. ** Total investment return is calculated assuming an initial investment made at net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period and redemption on the last day of the period. Total investment return is not annualized. See notes to financial statements 9 SAGE LIFE INVESTMENT TRUST S&P 500 EQUITY IINDEX FUND Notes to Financial Statements June 30, 2001 (unaudited) 1. Summary of Significant Accounting Policies The Sage Life Investment Trust (the "Trust") was organized as a Delaware business trust on January 9, 1998 and is registered under the Investment Company Act of 1940, as amended, as a diversified, no-load, open-end management investment company. The Trust is a "series type" which issues separate series of shares, each of which represents a separate diversified portfolio of investments. S&P 500 Equity Index Fund ("the Fund") is one of the funds offered to investors by the Trust. The Fund began operations on February 19, 1999. Shares of the Fund are available to separate accounts funding certain variable annuity and variable life insurance contracts issued by various insurance companies and to various pension and profit-sharing plans. The Fund seeks to replicate as closely as possible the performance of the Standard & Poor's 500 Composite Stock Price Index ("the Index") before the deduction of fund expenses. The Fund will invest in the stocks of companies included in the S&P 500, selected on the basis of computer generated statistical data. The Fund generally intends to allocate its investments among common stock in approximately the same proportions as they are represented in the Index. To the extent that all 500 stocks cannot be purchased, the Fund will purchase a representative sample of the stocks listed in the Index. Index funds are not managed according to traditional methods of "active" investment management, which involve the buying and selling of securities based upon economic, financial, market analysis and investment judgement. Instead, index funds utilize a "passive" or "indexing" investment approach and attempt to replicate the investment performance of their respective index through statistical procedures. The preparation of financial statements in accordance with accounting principles generally accepted in the United States 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. The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States. Valuation: The Fund's investments, which are traded on recognized domestic exchanges for which price quotations are available, are valued each business day on the basis of market valuations furnished by an independent pricing service approved by the Board of Trustees. Securities are valued based on the closing price of the security traded on that exchange prior to the time when the Fund's assets are valued. Short-term obligations with remaining maturities of 60 days or less are valued at amortized cost. Other short-term debt securities are valued on a mark-to-market basis until such time as they reach a remaining maturity of 60 days, whereupon they will be valued at amortized cost using their value on the 61st day. All other securities and other assets are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Board of Trustees. Futures Contracts: The Fund may enter into financial futures contracts which are contracts to buy a standard quantity of securities at a specified price on a future date. The Fund is required to deposit either in cash or securities an amount equal to a certain percentage of the contract amount. Variation margin payments are made or received by the Fund each day, dependent on the daily fluctuations in the value of the underlying security, and are recorded for financial statement purposes as unrealized gains or losses by the Fund. The Fund's investments in financial futures contracts are designed to closely replicate the benchmark index used by the Fund. Risks arise from possible illiquidity of the futures market and from movements in security values. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. Options: The Fund may also purchase and write call and put options on financial index futures contracts. When a Fund writes a call or put option, an amount equal to the premium received is reflected as a liability. The 10 SAGE LIFE INVESTMENT TRUST S&P 500 EQUITY INDEX FUND Notes to Financial Statements June 30, 2001 (unaudited) liability is subsequently "marked-to-market" to reflect the current market value of the option written. The premium paid by a Fund for the purchase of a call or put option is recorded as an investment and subsequently "marked-to-market" to reflect the current market value of the option purchased. The Fund is subject to the risk of an imperfect correlation between movement in the price of the instrument and the price of the underlying security or transaction. Risks may also arise due to illiquid secondary markets for the instruments. Federal Income Taxes: The Fund is a separate entity for federal income tax purposes. No provision for federal income taxes has been made since the Fund has complied and intends to continue to comply with provisions of Subchapter M of the Internal Revenue Code of 1986, as amended, available to regulated investment companies and to distribute its taxable income to shareholders sufficient to relieve it from all, or substantially all, federal income taxes. Securities Transactions and Investment Income: Investment transactions are recorded on trade date. Dividend income and distributions to shareholders are recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed are reported as income when the Fund identifies the dividend. Interest income (including amortization of premium and discount on securities) and expenses are accrued daily. Realized gains and losses from investment transactions are recorded on an identified cost basis which is the same basis the Trust uses for Federal income tax purposes. Purchases of securities under agreements to resell are carried at cost, and the related accrued interest is included in interest receivable. Repurchase Agreements: The Fund may enter into repurchase agreements with a bank, broker-dealer or other financial institution, which are secured by obligations of the U.S. government. Each repurchase agreement is at least 100% collateralized. However, in the event of default or bankruptcy by the counterparty to the agreement, realization of collateral may be subject to certain costs, losses or delays. Dividends and Distributions to Shareholders: The Fund distributes substantially all of its net investment income and capital gains to shareholders each year. The Fund distributes capital gains and income dividends at least annually. All dividends and capital gains distributions paid by the Fund will be automatically reinvested, at net asset value, in the Fund. Income dividends and capital gain distributions of the Fund are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States. This may result in temporary and permanent differences between tax basis earnings and earnings reported for financial statement purposes. Temporary differences that result in over-distributions for financial statement purposes are classified as distributions in excess of net investment income or accumulated net realized gains. Permanent differences in recognition of earnings are reclassified to additional paid-in capital. Distributions in excess of tax-basis earnings are recorded as a return of capital. 2. Investment Advisory Fees and Other Transactions With Affiliates Sage Advisors, Inc. ("Sage"), a wholly-owned subsidiary of Sage Insurance Group, Inc., is the investment manager of the Fund. In connection with its role as investment manager of the Fund, Sage pays all the Fund's expenses, except brokerage fees, expenses of the non-interested Trustees (including Fund counsel fees), audit fees and extraordinary expenses. As compensation for services rendered, the Fund pays Sage a monthly fee based on a percentage of the average daily net assets of the Fund at the annual percentage rate of 0.55%. During the six months ended June 30, 2001, Sage voluntarily waived 0.17% of its fee. 11 SAGE LIFE INVESTMENT TRUST S&P 500 EQUITY INDEX FUND Notes to Financial Statements June 30, 2001 (unaudited) Sage has contractually agreed to limit the expenses of the Fund until May 1, 2002. With this limitation the Fund's total expenses are limited to an annual percentage rate of 0.55%. During the period ended June 30, 2001, Sage reimbursed the Fund $5,552 to prevent its expenses from exceeding an annual percentage rate of 0.55%. Sage has retained the services of SSgA Funds Management, Inc. (the "Sub-Adviser") to serve as the investment adviser to the Fund. As compensation for the Sub-Adviser's services and the related expenses they incur with respect to the Fund, Sage pays the Sub-Adviser a monthly fee based on a percentage of the average daily net assets of the Fund at the annual percentage rate of 0.05% of the first $50 million of assets under management, 0.04% of the next $50 million of assets under management, and 0.02% on amounts in excess of $100 million of assets under management with a minimum annual fee of $50,000. 3. Purchases and Sales of Securities The aggregate cost of purchases and proceeds from sales of securities, other than short-term investments, for the period ended June 30, 2001 were $965,120 and $232,444 respectively. 12 [LOGO]SAGE Sage Life Investment Trust Customer Service Center P.O. Box 290680 Wethersfield, CT 06129-0680 PHONE: 877-TEL-SAGE 877-835-7243 FAX: 877-FAX-SAGE 877-329-7243 E-MAIL: service@sageusa.com Visit us at www.sageusa.com Executive Office 300 Atlantic Street . Stamford, CT 06901 Sage Life Investment Trust MONEY MARKET FUND ================================================================================ [Picture Appears Here] Semi-Annual Report June 30, 2001 [LOGO]SAGE ================================================================================ [LOGO]SAGE Dear Contract Owner: We are pleased to present you with this semi-annual report about the Money Market Fund (the "Fund") of the Sage Life Investment Trust for the six month period ending June 30, 2001. The Fund is available only to owners of Sage Life's Asset I and Asset II variable annuities and LifeAsset I variable life insurance contract. The report provides financial information about the Fund. Thank you for your investment in Sage variable products. Sincerely, SAGE LIFE INVESTMENT TRUST /S/ Robin I. Marsden ------------------------------------- Robin I. Marsden President and Chief Executive Officer SAGE LIFE INVESTMENT TRUST Money Market Fund June 30, 2001 Schedule of Investments (Unaudited)
Par Maturity Market (000) Rate Date Value ----- ---- ---- ----- COMMERCIAL PAPER - 100.3% Athletic Apparel - 2.8% $ 174 Nike, Inc.**.................................... 3.90% 07/09/01 $ 173,849 ---------------- Financial Banks & Services - 47.5% 240 American Express Credit Corp.**................. 3.87% 07/05/01 239,897 300 American General Finance Corp.**................ 3.82% 07/09/01 299,745 300 Chevron USA, Inc.**............................. 3.73% 07/06/01 299,845 300 Countrywide Home Loans, Inc.**.................. 3.83% 07/20/01 299,393 250 Ford Motor Credit Co.**......................... 3.84% 07/13/01 249,680 250 FPL Fuels, Inc.**............................... 4.03% 07/02/01 249,972 150 Goldman Sachs Group, Inc.**..................... 3.96% 07/05/01 149,934 275 Hitachi Credit America Corp.**.................. 3.78% 07/16/01 274,567 200 Household Finance Corp.**....................... 3.80% 07/02/01 199,979 110 IBM Credit Corp.**.............................. 3.83% 07/11/01 109,883 300 Toyota Motor Credit Corp.**..................... 3.90% 07/05/01 299,870 245 Verizon Network Funding**....................... 3.83% 07/18/01 244,558 ---------------- 2,917,323 ---------------- Food - 4.9% 300 Hershey Foods Corp.**........................... 3.65% 07/23/01 299,331 ---------------- Medical - 3.2% 200 Merck & Co., Inc.**............................. 3.88% 07/02/01 199,978 ---------------- Multimedia - 4.1% 250 Walt Disney Co.**............................... 3.83% 07/25/01 249,362 ---------------- Special Purpose Entity - 13.3% 300 BMW US Capital Corp.**.......................... 3.83% 07/06/01 299,840 250 Cooper Association Tractor Dealers, Inc.**...... 4.00% 07/02/01 249,972 100 Cooper Association Tractor Dealers, Inc.**...... 4.05% 09/19/01 99,100 166 Prudential Funding, LLC.**...................... 3.80% 07/02/01 165,983 ---------------- 814,895 ---------------- Utilities - 24.5% 250 Duke Energy Corp.**............................. 3.86% 07/06/01 249,866 210 Florida Power & Light Co.**..................... 3.85% 07/05/01 209,910 250 Florida Power Corp.**........................... 4.15% 07/20/01 249,452 250 National Rural Utility Corp.**.................. 3.89% 07/16/01 249,595 300 Potomac Electric Power Co.**.................... 3.90% 07/10/01 299,708 250 South Carolina Electric & Gas**................. 3.95% 07/02/01 249,972 ---------------- 1,508,503 ---------------- TOTAL INVESTMENTS - 100.3% (Cost $6,163,241*)................................ 6,163,241 ---------------- Liabilities, Net of Cash & Investments - (0.3)%......... (17,430) ---------------- NET ASSETS - 100.0%..................................... $ 6,145,811 ================
* Aggregate cost for Federal income tax purposes. ** Rate displayed is yield at time of purchase. 1 SAGE LIFE INVESTMENT TRUST Money Market Fund Statement of Assets & Liabilities June 30, 2001 (Unaudited) Assets: Investments (Note 1): At identified cost........................................ $ 6,163,241 =========== At market value........................................... $ 6,163,241 Cash......................................................... 4,655 Receivables: Receivable from advisor................................... 3,566 Dividends and interest.................................... 7 Prepaid insurance............................................ 1,458 ----------- Total Assets............................................ 6,171,469 ----------- Liabilities: Payables: Payable to advisor........................................ 3,710 Distribution payable...................................... 18,509 Other liabilities......................................... 4,897 ----------- Total Liabilities....................................... 27,116 ----------- Total Net Assets............................................. $ 6,144,353 =========== Net Assets consist of: Paid-in capital.............................................. $ 6,145,890 Undistributed net investment income.......................... 4 Accumulated net realized loss on investments................. (83) ----------- Total Net Assets............................................. $ 6,145,811 =========== Shares of beneficial interest outstanding.................... 6,145,890 =========== Net Asset Value, offering price and redemption price per share $ 1.00 =========== See notes to financial statements 2 SAGE LIFE INVESTMENT TRUST Money Market Fund Statement of Operations For the Six Months Ended June 30, 2001 (Unaudited) Investment Income: Interest $ 117,674 --------- Total investment income 117,674 --------- Expenses: Investment advisory fees (Note 2) 11,665 Audit expense 7,054 Trustees' fees and expenses 3,025 Insurance expense 727 --------- Total expenses 22,471 Less: Advisory fee waivers and expense reimbursement (Note 2) (6,717) --------- Net expenses 15,754 --------- Net investment income 101,920 --------- Realized Loss on Investments: Net realized loss on investments (80) --------- Net Increase in Net Assets Resulting from Operations $ 101,840 ========= See notes to financial statements 3 SAGE LIFE INVESTMENT TRUST Money Market Fund Statement of Changes in Net Assets
Six Months Ended June 30, 2001 Year Ended (Unaudited) December 31, 2000 =============== ================= Operations: Net investment income $ 101,920 $ 131,141 Net realized loss on investments (80) (4) --------------- ----------------- Net increase in net assets resulting from operations 101,840 131,137 --------------- ----------------- Distributions: From net investment income (101,916) (131,141) From net realized gain on investments -- -- --------------- ----------------- Total Distributions (101,916) (131,141) --------------- ----------------- Capital Share Transactions (a): Proceeds from sale of shares 28,376,804 1,498,981 Shares issued in reinvestment of dividends and distributions 83,370 131,141 Cost of shares repurchased (25,208,721) (821,753) --------------- ----------------- Net increase in net assets resulting from capital share transactions 3,251,453 808,369 --------------- ----------------- Net increase in net assets 3,251,377 808,365 Net assets at beginning of period 2,894,434 2,086,069 --------------- ----------------- Net assets at end of period $ 6,145,811 $ 2,894,434 =============== ================= (a) Transactions in capital stock were: Shares sold 28,376,803 1,498,944 Shares issued in reinvestment of dividends and distributions 83,370 131,178 Shares repurchased (25,208,721) (821,753) --------------- ----------------- Net increase in shares from capital share transactions 3,251,452 808,369 =============== =================
See notes to financial statements 4 SAGE LIFE INVESTMENT TRUST Money Market Fund Financial Highlights The table below sets forth financial data for one share of capital stock outstanding throughout the periods presented.
Six Months Ended June 30, 2001 Year Ended Period Ended (Unaudited) December 31, 2000 December 31, 1999 (1) ================== ===================== ======================== Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 ---------- ----------- ------------ Operations: Net investment income 0.02 0.06 0.04 ---------- ----------- ------------ Total from Investment Operations 0.02 0.06 0.04 ---------- ----------- ------------ Distributions to Shareholders: Dividends from net investment income (0.02) (0.06) (0.04) ---------- ----------- ------------ Total Distributions (0.02) (0.06) (0.04) ---------- ----------- ------------ Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 ========== =========== ============ Total Return** 2.22% 5.94% 4.03% Ratios/Supplemental Data: Net Assets, end of period (in thousands) $6,146 $2,894 $2,086 Ratio of Net Investment Income to Average Net Assets Before waiver/reimbursement of investment advisory fees 4.01%* 5.45% 4.43%* After waiver/reimbursement of investment advisory fees 4.29%* 5.80% 4.60%* Ratio of Expenses to Average Net Assets Before waiver/reimbursement of investment advisory fees 0.95%* 1.00% 0.82%* After waiver/reimbursement of investment advisory fees 0.65%* 0.65% 0.65%* Portfolio Turnover N/A N/A N/A
(1) Commenced operations on February 19, 1999. * Ratios have been annualized. ** Total investment return is calculated assuming an initial investment made at net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period and redemption on the last day of the period. Total investment return is not annualized. See notes to financial statements 5 SAGE LIFE INVESTMENT TRUST MONEY MARKET FUND Notes to Financial Statements June 30, 2001 (unaudited) 1. Summary of Significant Accounting Policies The Sage Life Investment Trust (the "Trust") was organized as a Delaware business trust on January 9, 1998 and is registered under the Investment Company Act of 1940, as amended, as a diversified, no-load, open-end management investment company. The Trust is a "series type" which issues separate series of shares, each of which represents a separate diversified portfolio of investments. Money Market Fund ("the Fund") is one of the funds offered to investors by the Trust. The Fund began operations on February 19, 1999. Shares of the Fund are available to separate accounts funding certain variable annuity and variable life insurance contracts issued by various insurance companies and to various pension and profit-sharing plans. The Money Market Fund seeks to provide high current income consistent with the preservation of capital and liquidity. The Fund also intends to maintain a share price of $1.00. The Fund seeks to achieve its objective by investing in high-quality short-term money market instruments, such as U.S. Government obligations, certificates of deposit, bankers' acceptances and commercial paper. The Fund limits its investments to those short-term securities that it determines present minimal credit risk and meet certain rating requirements. The Fund maintains an average dollar-weighted portfolio maturity of 90 days or less. The preparation of financial statements in accordance with accounting principles generally accepted in the United States 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. The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States. Valuation: The Fund's investments are valued on the basis of amortized cost under the guidance of the Board of Trustees, based on their determination that this constitutes fair value. Amortized cost involves valuing a portfolio instrument at its cost initially and, thereafter, assuming a constant amortization to maturity of any discount or premium, regardless of the impact of fluctuating interest rates on the market value of the instrument. Federal Income Taxes: The Fund is a separate entity for federal income tax purposes. No provision for federal income taxes has been made since the Fund has complied and intends to continue to comply with provisions of Subchapter M of the Internal Revenue Code of 1986, as amended, available to regulated investment companies and to distribute its taxable income to shareholders sufficient to relieve it from all, or substantially all, federal income taxes. Securities Transactions and Investment Income: Investment transactions are recorded on trade date. Interest income (including amortization of premium and discount on securities) and expenses are accrued daily. Realized gains and losses from investment transactions are recorded on an identified cost basis which is the same basis the Trust uses for Federal income tax purposes. Purchases of securities under agreements to resell are carried at cost, and the related accrued interest is included in interest receivable. Repurchase Agreements: The Fund may enter into repurchase agreements with a bank, broker-dealer or other financial institution, which are secured by obligations of the U.S. government. Each repurchase agreement is at least 100% collateralized. However, in the event of default or bankruptcy by the counterparty to the agreement, realization of collateral may be subject to certain costs, losses or delays. Dividends and Distributions to Shareholders: The Fund distributes substantially all of its net investment income and capital gains to shareholders each year. The Fund declares income dividends daily and pays them monthly. 6 SAGE LIFE INVESTMENT TRUST MONEY MARKET FUND Notes to Financial Statements June 30, 2001 (unaudited) The Fund distributes capital gain dividends at least annually. All dividends and capital gains distributions paid by the Fund will be automatically reinvested, at net asset value, in the Fund. Income dividends and capital gain distributions of the Fund are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States. This may result in temporary and permanent differences between tax basis earnings and earnings reported for financial statement purposes. Temporary differences that result in over- distributions for financial statement purposes are classified as distributions in excess of net investment income or accumulated net realized gains. Permanent differences in recognition of earnings are reclassified to additional paid-in capital. Distributions in excess of tax-basis earnings are recorded as a return of capital. 2. Investment Advisory Fees and Other Transactions With Affiliates Sage Advisors, Inc. ("Sage"), a wholly-owned subsidiary of Sage Insurance Group, Inc., is the investment manager of the Fund. In connection with its role as investment manager of the Fund, Sage pays all the Fund's expenses, except brokerage fees, expenses of the non-interested Trustees (including Fund counsel fees), audit fees and extraordinary expenses. As compensation for services rendered, the Fund pays Sage a monthly fee based on a percentage of the average daily net assets of the Fund at the annual percentage rate of 0.65%. During the six months ended June 30, 2001, Sage voluntarily waived 0.17% of its fee. Sage has contractually agreed to limit the expenses of the Fund until May 1, 2002. With this limitation the Fund's total expenses are limited to an annual percentage rate of 0.65%. During the period ended June 30, 2001, Sage reimbursed the Fund $6,717 to prevent its expenses from exceeding an annual percentage rate of 0.65%. Sage has retained the services of Conning Asset Management Company (the "Sub-Adviser") to serve as the investment adviser to the Fund. As compensation for the Sub-Adviser's services and the related expenses they incur with respect to the Fund, Sage pays the Sub-Adviser a quarterly fee based on a percentage of the average daily net assets of the Fund at the annual percentage rate of 0.15% of the first $100 million of assets under management, 0.10% of the next $200 million of assets under management, and 0.07% on amounts in excess of $300 million of assets under management. 7 [LOGO]SAGE Sage Life Investment Trust Customer Service Center P.O. Box 290680 Wethersfield, CT 06129-0680 PHONE: 877-TEL-SAGE 877-835-7243 FAX: 877-FAX-SAGE 877-329-7243 E-MAIL: service@sageusa.com Visit us at www.sageusa.com Executive Office 300 Atlantic Street Stamford, CT 06901 Sage Life Investment Trust NASDAQ-100 INDEX(R) FUND ================================================================================ [PICTURE] Semi-Annual Report June 30, 2001 [LOGO]SAGE ================================================================================ [LOGO]SAGE Dear Contract Owner: We are pleased to present you with this semi-annual report about the Nasdaq-100 Index Fund (the "Fund") of the Sage Life Investment Trust for the six month period ending June 30, 2001. The Fund is available only to owners of Sage Life's Asset I and Asset II variable annuities and LifeAsset I variable life insurance contract. The report provides performance data and financial information about the Fund. Thank you for your investment in Sage funds and products. Sincerely, SAGE LIFE INVESTMENT TRUST /s/ Robin I. Marsden Robin I. Marsden President and Chief Executive Office Sage Life Investment Trust NASDAQ 100 Index Fund Illustration of an Assumed Investment of $10,000 The graph below compares the growth in value of a $10,000 investment in the Sage NASDAQ - 100 Index Fund with the performance of the NASDAQ 100 Stock Index. The graph assumes that distributions are reinvested. NASDAQ - 100 Index Fund Total Return Performance [GRAPH] NASDAQ - 100 Fund NASDAQ - 100 Stock Index ----------------- ------------------------ Sep-18-00 10,000.00 10,000.00 Sep-00 9,850.00 9,958.42 Dec-00 6,540.00 6,530.99 Mar-01 4,410.00 4,387.79 Jun-01 5,100.00 5,104.39 Past performance does not guarantee future results. Total Return for the Periods ended June 30, 2001 Period Ended June 30, 2001 Since inception * NASDAQ - 100 Fund (22.02%) (49.00%) NASDAQ - 100 Stock Index (21.82%) (48.94%) * Inception date September 18, 2000 Past performance is not indicitive of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The returns presented assume the reinvestment of dividend and capital gain distributions. Performance would have been lower during the specified periods had certain fees and expenses not been waived by the Fund. 1 SAGE LIFE INVESTMENT TRUST Nasdaq-100 Index Fund June 30, 2001 Schedule of Investments (Unaudited) Market Shares Value ------ ----- COMMON STOCK - 99.5% Advertising - 0.5% 67 TMP Worldwide, Inc.* $ 4,020 ---------- Auto Manufacturers - 0.3% 50 Paccar, Inc........................ 2,571 ---------- Business Srevices - 2.3% 92 Fiserv, Inc.*...................... 5,886 211 Parametric Technology Corp.*....... 2,952 213 Paychex, Inc....................... 8,520 ---------- 17,358 ---------- Computer Hardware - 3.2% 294 Apple Computer, Inc.*.............. 6,835 575 Dell Computer Corp.*............... 15,036 322 Palm, Inc.*........................ 1,955 ---------- 23,826 ---------- Computer Software & Services - 27.3% 140 Adobe Systems, Inc................. 6,580 220 BEA Systems, Inc.*................. 6,756 212 CMGI, Inc.*........................ 636 1,560 Cisco Sytems, Inc.*................ 28,392 131 Citrix Systems, Inc.*.............. 4,572 137 Compuware Corp.*................... 1,917 80 Electronic Arts, Inc.*............. 4,632 156 Intuit, Inc.*...................... 6,238 53 Mercury Interactive Corp.*......... 3,175 1,108 Microsoft Corp.*................... 80,884 215 Novell, Inc.*...................... 1,223 1,398 Oracle Corp.*...................... 26,562 248 PeopleSoft, Inc.*.................. 12,209 119 Rational Software Corp.*........... 3,338 315 Siebel Systems, Inc.*.............. 14,774 ---------- 201,888 ---------- Computer Systems - 2.6% 137 Brocade Communications Systems, Inc.*.............................. 6,027 850 Sun Microsystems, Inc.*............ 13,362 ---------- 19,389 ---------- Containers & Packaging - 0.3% 140 Smurfit-Stone Container Corp.*..... 2,268 ---------- Data Systems Management - 2.2% 242 Veritas Software Corp.*............ 16,100 ---------- Electronics - 8.1% 323 Altera Corp.*...................... 9,367 207 Applied Micro Circuits Corp.*...... 3,560 98 Broadcom Corp.*.................... 4,190 166 Conexant Systems, Inc.*............ 1,486 315 Flextronics International Ltd.*.... 8,225 259 Gemstar-TV Guide International, Inc.*.............................. 11,033 255 Linear Technology Corp............. 11,276 58 Molex, Inc......................... 2,119 45 Nvidia Corp.*...................... 4,174 202 Sanmina Corp.*..................... 4,729 ---------- 60,159 ---------- Market Shares Value - ------ ----- Financial Services - 1.9% 164 Concord EFS, Inc.* $ 8,530 262 I2 Technologies, Inc.*............. 5,187 ---------- 13,717 ---------- Health Care Services - 2.4% 291 Amgen, Inc.*....................... 17,658 ---------- Internet Software - 4.0% 155 Ariba, Inc.*....................... 853 132 At Home Corp.*..................... 282 192 Broadvision, Inc.*................. 960 136 Check Point Software Technologies Ltd.*.............................. 6,878 88 CNET Networks, Inc.*............... 1,144 338 Exodus Communications, Inc.*....... 696 76 Inktomi Corp.*..................... 729 125 Juniper Networks, Inc.*............ 3,888 203 Network Appliance, Inc.*........... 2,781 95 RealNetworks, Inc.*................ 1,116 114 Verisign, Inc.*.................... 6,841 163 Yahoo!, Inc.*...................... 3,258 ---------- 29,426 ---------- Medical Equipment & Suplies - 3.2% 143 Biomet, Inc.*...................... 6,873 159 Chiron Corp.*...................... 8,109 147 Genzyme Corp.*..................... 8,967 ---------- 23,949 ---------- Office & Business Equipment - 0.4% 183 Staples, Inc.*..................... 2,926 Pharmaceuticals - 5.2% 49 Abgenix, Inc.*..................... 2,205 108 Biogen, Inc.*...................... 5,871 74 Human Genome Sciences, Inc.*....... 4,459 96 IDEC Pharmaceuticals Corp.*........ 6,498 449 Immunex Corp.*..................... 7,970 135 Medimmune, Inc.*................... 6,372 142 Millennium Pharmaceuticals, Inc.*.. 5,052 ---------- 38,427 ---------- Restaurants - 1.0% 313 Starbucks Corp.*................... 7,199 ---------- Retail - 3.9% 143 Amazon.com, Inc.*.................. 2,023 230 Bed, Bath & Beyond, Inc.*.......... 6,900 120 Cintas Corp........................ 5,550 143 Costco Wholesale Corp.*............ 5,874 121 eBay, Inc.*........................ 8,288 ---------- 28,635 ---------- Semiconductors - 15.4% 251 Applied Materials, Inc.*........... 12,324 205 Atmel Corp.*....................... 2,765 1,405 Intel Corp......................... 41,096 811 JDS Uniphase Corp.*................ 10,138 135 KLA Tencor Corp.*.................. 7,893 276 Maxim Integrated Products, Inc.*... 12,202 2 Market Share Value ----- ----- 66 Microchip Technology, Inc.*......... $ 2,206 86 Novellus System, Inc.*.............. 4,884 108 PMC-Sierra, Inc.*................... 3,356 56 QLogic Corp.*....................... 3,609 118 Vitesse Semiconductor Corp.*........ 2,483 261 Xilinx, Inc.*....................... 10,764 ---------- 113,720 ---------- Telecommunications - 15.3% 91 3Com Corp.*......................... 432 581 ADC Telecommunications, Inc.*....... 3,835 98 Adelphia Communications Corp.*...... 4,018 233 Ciena Corp.*........................ 8,854 269 Comcast Corp.*...................... 11,675 107 Comverse Technology, Inc.*.......... 6,110 146 Echostar Communications Corp.*...... 4,733 164 Level 3 Communications, Inc.*....... 900 301 McLeodUSA, Inc.*.................... 1,382 328 Metromedia Fiber Network, Inc.*..... 669 565 Nextel Communications, Inc.*........ 9,888 120 PanAmSat Corp.*..................... 4,665 546 Qualcomm, Inc.*..................... 31,930 113 RF Micro Devices, Inc.*............. 3,048 573 Telefonaktiebolaget LM Ericsson AB.. 3,106 136 Tellabs, Inc.*...................... 2,635 209 USA Networks, Inc.*................. 5,852 625 WorldCom, Inc.-WorldCom Group*...... 8,875 155 XO Communications, Inc.*............ 297 ---------- 112,904 ---------- TOTAL INVESTMENTS - 99.5% (Cost $1,157,684)................... 736,140 ---------- Cash & Other Assets, Net of Liabilities - 0.5%.................. 3,471 ---------- NET ASSETS - 100.0%................. $ 739,611 ========== Cost for Federal income tax purposes is $1,157,684 and net unrealized depreciation consists of: Gross unrealized appreciation..... $ 41,304 Gross unrealized depreciation..... (462,848) ---------- Net unrealized depreciation..... $ (421,544) ========== * Non-income producing security. 3 SAGE LIFE INVESTMENT TRUST Nasdaq-100 Index Fund Statement of Assets & Liabilities June 30, 2001 (Unaudited) Assets: Investments (Note 1): At identified cost ........................................ $ 1,157,684 =========== At market value ........................................... $ 736,140 Cash ......................................................... 5,317 Receivables: Receivable from advisor ................................... 334 Dividends and interest .................................... 34 Prepaid insurance ............................................ 206 ----------- Total Assets ............................................ 741,825 ----------- Liabilities: Payables: Payable to advisor ........................................ 469 Payable for securities purchased .......................... 1,537 Other liabilities ......................................... 414 ----------- Total Liabilities ....................................... 2,420 ----------- Total Net Assets ............................................. $ 739,405 =========== Net Assets consist of: Paid-in capital .............................................. $ 1,251,612 Undistributed net investment loss ............................ (2,481) Accumulated net realized loss on investments ................. (87,976) Net unrealized depreciation on investments ................... (421,544) ----------- Total Net Assets ............................................. $ 739,611 =========== Shares of beneficial interest outstanding .................... 145,038 =========== Net Asset Value, offering price and redemption price per share $ 5.10 =========== See notes to financial statements 4 SAGE LIFE INVESTMENT TRUST Nasdaq-100 Index Fund Statement of Operations For the Six Months Ended June 30, 2001 (Unaudited) Investment Income: Interest $ 184 Dividends 167 --------- Total investment income 351 --------- Expenses: Investment advisory fees (Note 2) 2,651 Audit expense 811 Trustees' fees and expenses 334 Insurance expense 87 --------- Total expenses 3,883 Less: Advisory fee waivers and expense reimbursement (Note 2) (1,051) --------- Net expenses 2,832 --------- Net investment loss (2,481) --------- Realized and Unrealized Loss on Investments: Net realized loss on investments (65,904) Net change in unrealized depreciation of investments (88,151) --------- Net realized and unrealized loss on investments (154,055) --------- Net Decrease in Net Assets Resulting from Operations $(156,536) ========= See notes to financial statements 5 SAGE LIFE INVESTMENT TRUST Nasdaq-100 Index Fund Statement of Changes in Net Assets
Six Months Ended June 30, 2001 Period Ended (Unaudited) December 31, 2000 (1) ================ ================ Operations: Net investment loss $ (2,481) $ (1,733) Net realized loss on investments (65,904) (22,072) Net change in unrealized depreciation of investments (88,151) (333,394) ---------------- ---------------- Net decrease in net assets resulting from operations (156,536) (357,199) ---------------- ---------------- Distributions: From net investment income - - From net realized gain on investments - - ---------------- ---------------- Total Distributions - - ---------------- ---------------- Capital Share Transactions (a): Proceeds from sale of shares 270,497 1,091,339 Cost of shares repurchased (70,710) (37,780) ---------------- ---------------- Net increase in net assets resulting from capital share transactions 199,787 1,053,559 ---------------- ---------------- Net increase in net assets 43,251 696,360 Net assets at beginning of period 696,360 - ---------------- ---------------- Net assets at end of period $ 739,611 $ 696,360 ================ ================ (a) Transactions in capital stock were: Shares sold 52,285 111,687 Shares repurchased (13,800) (5,134) ---------------- ---------------- Net increase in shares from capital share transactions 38,485 106,553 ================ ================
(1) Commenced operations on September 18, 2000. See notes to financial statements 6 SAGE LIFE INVESTMENT TRUST Nasdaq-100 Index Fund Financial Highlights The table below sets forth financial data for one share of capital stock outstanding throughout the periods presented.
Six Months Ended June 30, 2001 Period Ended (Unaudited) December 31, 2000 (1) =============== ===================== Net Asset Value, Beginning of Period $ 6.54 $ 10.00 --------------- -------------------- Operations: Net investment loss (0.02) (0.02) Net realized and unrealized loss on investments (1.42) (3.44) --------------- -------------------- Total from Investment Operations (1.44) (3.46) --------------- -------------------- Distributions to Shareholders: Dividends from net investment income - - Distributions from net realized gain on investments - - --------------- -------------------- Total Distributions 0.00 0.00 --------------- -------------------- Net Asset Value, End of Period $ 5.10 $ 6.54 =============== ==================== Total Return** (22.02%) (34.60%) Ratios/Supplemental Data:* Net Assets, end of period (in thousands) $ 740 $ 696 Ratio of Net Investment Income to Average Net Assets Before waiver/reimbursement of investment advisory fees (1.06%) (0.82%) After waiver/reimbursement of investment advisory fees (0.75%) (0.72%) Ratio of Expenses to Average Net Assets Before waiver/reimbursement of investment advisory fees 1.17% 0.95% After waiver/reimbursement of investment advisory fees 0.85% 0.85% Portfolio Turnover 15% 12%
(1) Commenced operations on September 18, 2000. * Ratios have been annualized. ** Total investment return is calculated assuming an initial investment made at net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period and redemption on the last day of the period. Total investment return is not annualized. See notes to financial statements 7 SAGE LIFE INVESTMENT TRUST NASDAQ-100 INDEX FUND Notes to Financial Statements June 30, 2001 (unaudited) 1. Summary of Significant Accounting Policies The Sage Life Investment Trust (the "Trust") was organized as a Delaware business trust on January 9, 1998 and is registered under the Investment Company Act of 1940, as amended, as a diversified, no-load, open-end management investment company. The Trust is a "series type" which issues separate series of shares, each of which represents a separate diversified portfolio of investments. Nasdaq-100 Index Fund (the "Fund") is one of the funds offered to investors by the Trust. The Fund began operations on September 18, 2000. Shares of the Fund are available to separate accounts funding certain variable annuity and variable life insurance contracts issued by various insurance companies and to various pension and profit-sharing plans. The Fund seeks to provide investment returns that correspond to the performance of the Nasdaq-100 Index before deduction of fund expenses. The Fund will invest in the stocks of companies included in the (the "Index") selected on the basis of computer generated statistical data. Index funds are not managed according to traditional methods of "active" investment management, which involve the buying and selling of securities based upon economic, financial, market analysis and investment judgement. Instead, index funds utilize a "passive" or "indexing" investment approach and attempt to replicate the investment performance of their respective index through statistical procedures. The preparation of financial statements in accordance with accounting principles generally accepted in the United States 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. The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States. Valuation: The Fund's investments, which are traded on recognized domestic exchanges for which price quotations are available, are valued each business day on the basis of market valuations furnished by an independent pricing service approved by the Board of Trustees. Securities are valued based on the closing price of the security traded on that exchange prior to the time when the Fund's assets are valued. Short-term obligations with remaining maturities of 60 days or less are valued at amortized cost. Other short-term debt securities are valued on a mark-to-market basis until such time as they reach a remaining maturity of 60 days, whereupon they will be valued at amortized cost using their value on the 61st day. All other securities and other assets are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Board of Trustees. Futures Contracts: The Fund may enter into financial futures contracts which are contracts to buy a standard quantity of securities at a specified price on a future date. The Fund is required to deposit either in cash or securities an amount equal to a certain percentage of the contract amount. Variation margin payments are made or received by the Fund each day, dependent on the daily fluctuations in the value of the underlying security, and are recorded for financial statement purposes as unrealized gains or losses by the Fund. The Fund's investments in financial futures contracts are designed to closely replicate the benchmark index used by the Fund. Risks arise from possible illiquidity of the futures market and from movements in security values. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. Options: The Fund may also purchase and write call and put options on financial index futures contracts. When a Fund writes a call or put option, an amount equal to the premium received is reflected as a liability. The liability is subsequently "marked-to-market" to reflect the current market value of the option written. The 8 SAGE LIFE INVESTMENT TRUST NASDAQ-100 INDEX FUND Notes to Financial Statements June 30, 2001 (unaudited) premium paid by a Fund for the purchase of a call or put option is recorded as an investment and subsequently "marked-to-market" to reflect the current market value of the option purchased. The Fund is subject to the risk of an imperfect correlation between movement in the price of the instrument and the price of the underlying security or transaction. Risks may also arise due to illiquid secondary markets for the instruments. Federal Income Taxes: The Fund is a separate entity for federal income tax purposes. No provision for federal income taxes has been made since the Fund has complied and intends to continue to comply with provisions of Subchapter M of the Internal Revenue Code of 1986, as amended, available to regulated investment companies and to distribute its taxable income to shareholders sufficient to relieve it from all, or substantially all, federal income taxes. Capital Loss Carryforwards: At December 31, 2000, the Fund had, for federal income tax purposes, capital loss carryforwards available to offset future net realized capital gains in the amount of $3,348 expiring December 31, 2008. Securities Transactions and Investment Income: Investment transactions are recorded on trade date. Dividend income and distributions to shareholders are recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed are reported as income when the Fund identifies the dividend. Interest income (including amortization of premium and discount on securities) and expenses are accrued daily. Realized gains and losses from investment transactions are recorded on an identified cost basis which is the same basis the Trust uses for Federal income tax purposes. Purchases of securities under agreements to resell are carried at cost, and the related accrued interest is included in interest receivable. Repurchase Agreements: The Fund may enter into repurchase agreements with a bank, broker-dealer or other financial institution, which are secured by obligations of the U.S. government. Each repurchase agreement is at least 100% collateralized. However, in the event of default or bankruptcy by the counterparty to the agreement, realization of collateral may be subject to certain costs, losses or delays. Dividends and Distributions to Shareholders: The Fund distributes substantially all of its net investment income and capital gains to shareholders each year. The Fund distributes capital gains and income dividends at least annually. All dividends and capital gains distributions paid by the Fund will be automatically reinvested, at net asset value, in the Fund. Income dividends and capital gain distributions of the Fund are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States. This may result in temporary and permanent differences between tax basis earnings and earnings reported for financial statement purposes. Temporary differences that result in over-distributions for financial statement purposes are classified as distributions in excess of net investment income or accumulated net realized gains. Permanent differences in recognition of earnings are reclassified to additional paid-in capital. Distributions in excess of tax-basis earnings are recorded as a return of capital. 2. Investment Advisory Fees and Other Transactions With Affiliates Sage Advisors, Inc. ("Sage"), a wholly-owned subsidiary of Sage Insurance Group, Inc., is the investment manager of the Fund. In connection with its role as investment manager of the Fund, Sage pays all the Fund's expenses, except brokerage fees, expenses of the non-interested Trustees (including Fund counsel fees), audit 9 SAGE LIFE INVESTMENT TRUST NASDAQ-100 INDEX FUND Notes to Financial Statements June 30, 2001 (unaudited) fees and extraordinary expenses. As compensation for services rendered, the Fund pays Sage a monthly fee based on a percentage of the average daily net assets of the Fund at the annual percentage rate of 0.85%. During the six months ended June 30, 2001, Sage voluntarily waived 0.05% of its fee. Sage has contractually agreed to limit the expenses of the Fund until May 1, 2002. With this limitation the Fund's total expenses are limited to an annual percentage rate of 0.85%. During the period ended June 30, 2001, Sage reimbursed the Fund $1,051 to prevent its expenses from exceeding an annual percentage rate of 0.85%. Sage has retained the services of SSgA Funds Management, Inc. (the "Sub-Adviser") to serve as the investment adviser to the Fund. As compensation for the Sub-Adviser's services and the related expenses they incur with respect to the Fund, Sage pays the Sub-Adviser a monthly fee based on a percentage of the average daily net assets of the Fund at the annual percentage rate of 0.10% of the first $50 million of assets under management, 0.04% of the next $50 million of assets under management, and 0.02% on amounts in excess of $100 million of assets under management. 3. Purchases and Sales of Securities The aggregate cost of purchases and proceeds from sales of securities, other than short-term investments, for the period ended June 30, 2001 were $301,304 and $102,365 respectively. 10 [LOGO]SAGE Sage Life Investment Trust Customer Service Center P.O. Box 290680 Wethersfield, CT 06129-0680 PHONE: 877-TEL-SAGE 877-835-7243 FAX: 877-FAX-SAGE 877-329-7243 E-MAIL: service@sageusa.com Visit us at www.sageusa.com Executive Office 300 Atlantic Street . Stamford, CT 06901 Sage Life Investment Trust ALL-CAP GROWTH FUND - -------------------------------------------------------------------------------- [PICTURE] Semi-Annual Report June 30, 2001 [LOGO]SAGE - -------------------------------------------------------------------------------- [LOGO]SAGE Dear Contract Owner: We are pleased to present you with this semi-annual report about the All- Cap Growth Fund (the "Fund") of the Sage Life Investment Trust for the six month period ending June 30, 2001. The Fund is available only to owners of Sage Life's Asset I and Asset II variable annuities and LifeAsset I variable life insurance contract. The report provides performance data and financial information about the Fund. Thank you for your investment in Sage funds and products. Sincerely, SAGE LIFE INVESTMENT TRUST /s/ Robin I. Marsden Robin I. Marsden President and Chief Executive Officer Sage Life Investment Trust All-Cap Growth Fund Illustration of an Assumed Investment of $10,000 The graph below compares the growth in value of a $10,000 investment in the Sage All - Cap Growth Fund with the performance of the Russell 3000 Growth Index. The graph assumes that distributions are reinvested. All - Cap Growth Fund Total Return Performance [GRAPH] All - Cap Growth Fund Russell 3000 Growth Index --------------------- ------------------------- Sep-18-00 10,000.00 10,000.00 Sep-00 10,130.00 9,869.30 Dec-00 7,860.00 7,766.25 Mar-01 6,600.00 6,168.58 Jun-01 7,320.00 6,725.80 Past performance does not guarantee future results. Total Return for the Period ended June 30, 2001 Period Ended June 30, 2001 Since inception * All - Cap Growth Fund (6.87%) (26.80%) Russell 3000 Growth Index (13.25%) (32.74%) * Inception date September 18, 2000 Past performance is not indicitive of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The returns presented assume the reinvestment of dividend and capital gain distributions. Performance would have been lower during the specified periods had certain fees and expenses not been waived by the Fund. 1 SAGE LIFE INVESTMENT TRUST All-Cap Growth Fund June 30, 2001 Schedule of Investments (Unaudited) Market Shares Value ------ ----- COMMON STOCK - 89.9% Beverage - 2.9% 650 Anheuser-Busch Co., Inc $ 26,780 ----------- Broadcasting - 0.7% 100 Gannett Co., Inc 6,590 ----------- Business Services - 3.5% 150 Concord EFS, Inc.* 7,801 1,050 Doubleclick, Inc.* 14,658 150 Fiserv, Inc.* 9,597 ----------- 32,056 ----------- Computer Hardware - 3.1% 550 Dell Computer Corp.* 14,382 500 EMC Corp.* 14,525 ----------- 28,907 ----------- Computer Software & Services - 10.3% 350 Cadence Design System, Inc.* 6,520 1,100 Cisco Systems, Inc.* 20,020 600 Microsoft Corp.* 43,800 800 Sun Microsystems, Inc.* 12,576 400 Sungard Data Systems, Inc.* 12,004 ----------- 94,920 ----------- Consumer Products - 4.8% 800 Cendent Corp.* 15,600 200 Cintas Corp 9,250 300 Gemstar TV Guide International, Inc.* 2,780 100 Procter & Gamble Co 6,380 ----------- 44,010 ----------- Electronics - 2.4% 100 Altera Corp.* 2,900 200 Celestica, Inc.* 10,300 500 Solectron Corp.* 9,150 ----------- 22,350 ----------- Entertainment - 2.4% 300 Carnival Corp 9,210 50 International Game Technology* 3,137 450 Royal Caribbean Cruises Ltd.* 9,950 ----------- 22,297 ----------- Financial Services - 14.8% 300 American Express Co 11,640 150 Capital One Financial Corp 9,000 550 Citigroup, Inc 29,062 200 Freddie Mac 14,000 200 Goldman Sachs Group, Inc 17,160 450 Lehman Brothers Holdings, Inc 34,988 150 Merrill Lynch & Co., Inc 8,887 200 Providian Financial Corp 11,840 ----------- 136,577 ----------- Internet Software - 5.1% 750 AOL Time Warner, Inc.* 39,750 500 Art Technology Group, Inc.* 2,900 550 Vignette Corp.* 4,879 ----------- 47,529 ----------- Medical Equipment & Supplies - 0.8% 150 Medtronic, Inc 6,902 ----------- Oil & Gas - 2.0% 200 Barrett Resources Corp.* 11,800 200 Noble Drilling Corp.* 6,550 ----------- 18,350 ----------- Market Shares Value ------ ----- Pharmaceuticals - 13.7% 300 American Home Products Corp $ 17,532 100 Bristol-Meyers Squibb Co 5,230 150 Forest Laboratories, Inc.* 10,650 150 Genentech, Inc.* 8,265 200 IDEC Pharmaceuticals Corp.* 13,538 150 Merck & Co., Inc 9,586 450 Pfizer, Inc 18,023 250 Pharmacia Corp 11,488 850 Praecis Pharmaceuticals, Inc.* 13,974 150 Protein Design Labs, Inc.* 13,014 100 Shire Pharmaceuticals Group Plc* 5,550 ----------- 126,850 ----------- Restaurants - 1.5% 600 Starbucks Corp.* 13,800 ----------- Retail - 6.3% 400 Costco Wholesale Corp.* 16,432 400 Home Depot, Inc 18,620 150 Lowe's Co., Inc 10,883 250 Wal Mart Stores, Inc 12,200 ----------- 58,135 ----------- Semiconductors - 11.0% 1,700 Agere Systems, Inc.* 12,750 600 Cypress Semiconductor Corp.* 14,310 600 Fairchild Semiconductor Corp.* 13,800 550 LSI Logic Corp.* 10,340 550 Mattson Technology, Inc.* 9,614 450 National Semiconductor Corp.* 13,104 300 Novellus Systems, Inc.* 17,037 250 Texas Instruments, Inc 7,875 150 Vitesse Semiconductor, Inc.* 3,156 ----------- 101,986 ----------- Telecommunications - 3.1% 400 ADC Telecommunications, Inc.* 2,640 250 Acterna Corp.* 2,750 250 Nextel Communications, Inc.* 4,375 400 Nokia Oyj 8,816 400 Sprint Corp.* 9,660 ----------- 28,241 ----------- Transportation - 1.5% 500 CNF, Inc 14,123 ----------- TOTAL INVESTMENTS - 89.9% (Cost $925,607) 830,403 ----------- Cash & Other Assets, Net of Liabilities - 10.1% 93,174 ----------- NET ASSETS - 100.0% $ 923,577 =========== Cost for Federal income tax purposes is $925,607 and net unrealized depreciation consists of: Gross unrealized appreciation $ 58,958 Gross unrealized depreciation (154,162) ----------- Net unrealized depreciation $ (95,204) =========== * Non-income producing security. 2 SAGE LIFE INVESTMENT TRUST All-Cap Growth Fund Statement of Assets & Liabilities June 30, 2001 (Unaudited) Assets: Investments (Note 1): At identified cost ........................................ $ 925,607 =========== At market value ........................................... $ 830,403 Cash ......................................................... 93,555 Receivables: Receivable from advisor ................................... 423 Dividends and interest .................................... 302 Prepaid insurance ............................................ 250 ----------- Total Assets ............................................ 924,933 ----------- Liabilities: Payables: Payable to advisor ........................................ 763 Other liabilities ......................................... 593 ----------- Total Liabilities ....................................... 1,356 ----------- Total Net Assets ............................................. $ 923,577 =========== Net Assets consist of: Paid-in capital .............................................. $ 1,191,485 Undistributed net investment loss ............................ (1,635) Accumulated net realized loss on investments ................. (171,069) Net unrealized depreciation on investments ................... (95,204) ----------- Total Net Assets ............................................. $ 923,577 =========== Shares of beneficial interest outstanding .................... 126,229 =========== Net Asset Value, offering price and redemption price per share $ 7.32 =========== See notes to financial statements 3 SAGE LIFE INVESTMENT TRUST All-Cap Growth Fund Statement of Operations For the Six Months Ended June 30, 2001 (Unaudited) Investment Income: Dividends $ 1,533 Interest 1,190 ---------- Total investment income 2,723 ---------- Expenses: Investment advisory fees (Note 2) 3,912 Audit expense 1,055 Trustees' fees and expenses 413 Insurance expense 105 ---------- Total expenses 5,485 Less: Advisory fee waivers and expense reimbursement (Note 2) (1,127) ---------- Net expenses 4,358 ---------- Net investment loss (1,635) ---------- Realized and Unrealized Gain (Loss) on Investments: Net realized loss on investments (61,335) Net change in unrealized appreciation of investments 10,314 ---------- Net realized and unrealized loss on investments (51,021) ---------- Net Decrease in Net Assets Resulting from Operations $ (52,656) ==========
See notes to financial statements 4 SAGE LIFE INVESTMENT TRUST All-Cap Growth Fund Statement of Changes in Net Assets
Six Months Ended June 30, 2001 Period Ended (Unaudited) December 31, 2000 (1) ================= ======================== Operations: Net investment loss $ (1,635) $ (701) Net realized loss on investments (61,335) (109,735) Net change in unrealized appreciation / (depreciation) of investments 10,314 (105,517) ------------ ------------ Net decrease in net assets resulting from operations (52,656) (215,953) ------------ ------------ Distributions: - - From net investment income - - From net realized gain on investments ------------ ------------ - - Total Distributions ------------ ------------ Capital Share Transactions (a): Proceeds from sale of shares 284,283 1,028,900 Cost of shares repurchased (118,873) (2,124) ------------ ------------ Net increase in net assets resulting from capital share transactions 165,410 1,026,776 ------------ ------------ Net increase in net assets 112,754 810,823 Net assets at beginning of period 810,823 - ------------ ------------ Net assets at end of period $ 923,577 $ 810,823 ============ ============ (a) Transactions in capital stock were: Shares sold 39,714 103,460 Shares repurchased (16,670) (275) ------------ ------------ Net increase in shares from capital share transactions 23,044 103,185 ============ ============
(1) Commenced operations on September 18, 2000. See notes to financial statements 5 SAGE LIFE INVESTMENT TRUST All-Cap Growth Fund Financial Highlights The table below sets forth financial data for one share of capital stock outstanding throughout the periods presented.
Six Months Ended June 30, 2001 Period Ended (Unaudited) December 31, 2000 (1) ================ ========================= Net Asset Value, Beginning of Period $ 7.86 $ 10.00 --------- ---------- Operations: Net investment loss (0.01) (0.01) Net realized and unrealized loss on investments (0.53) (2.13) --------- ---------- Total from Investment Operations (0.54) (2.14) --------- ---------- Distributions to Shareholders: Dividends from net investment income - - Distributions from net realized gain on investments - - --------- ---------- Total Distributions - - --------- ---------- Net Asset Value, End of Period $ 7.32 $ 7.86 ========= ========== Total Return** (6.87%) (21.40%) Ratios/Supplemental Data:* Net Assets, end of period (in thousands) $ 924 $ 811 Ratio of Net Investment Income to Average Net Assets Before waiver/reimbursement of investment advisory fees (0.70%) (0.51%) After waiver/reimbursement of investment advisory fees (0.41%) (0.28%) Ratio of Expenses to Average Net Assets Before waiver/reimbursement of investment advisory fees 1.38% 1.33% After waiver/reimbursement of investment advisory fees 1.10% 1.10% Portfolio Turnover 43% 90%
(1) Commenced operations on September 18, 2000. * Ratios have been annualized. ** Total investment return is calculated assuming an initial investment made at net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period and redemption on the last day of the period. Total investment return is not annualized. See notes to financial statements 6 SAGE LIFE INVESTMENT TRUST ALL-CAP GROWTH FUND Notes to Financial Statements June 30, 2001 (unaudited) 1. Summary of Significant Accounting Policies The Sage Life Investment Trust (the "Trust") was organized as a Delaware business trust on January 9, 1998 and is registered under the Investment Company Act of 1940, as amended, as a diversified, no-load, open-end management investment company. The Trust is a "series type" which issues separate series of shares, each of which represents a separate diversified portfolio of investments. All-Cap Growth Fund ("the Fund") is one of the funds offered to investors by the Trust. The Fund began operations on September 18, 2000. Shares of the Fund are available to separate accounts funding certain variable annuity and variable life insurance contracts issued by various insurance companies and to various pension and profit-sharing plans. The Fund seeks to provide long-term capital appreciation by investing primarily in a diversified portfolio of common stocks of companies which have one or more of the following characteristics: projected earnings growth and return on equity greater than those of the S&P 500 average; dominance in their industries or market niches; the ability to create and sustain a competitive advantage; superior management teams and high profit margins. The preparation of financial statements in accordance with accounting principles generally accepted in the United States 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. The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States. Valuation: The Fund's investments, which are traded on recognized domestic exchanges for which price quotations are available, are valued each business day on the basis of market valuations furnished by an independent pricing service approved by the Board of Trustees. Securities are valued based on the closing price of the security traded on that exchange prior to the time when the Fund's assets are valued. Short-term obligations with remaining maturities of 60 days or less are valued at amortized cost. Other short-term debt securities are valued on a mark-to-market basis until such time as they reach a remaining maturity of 60 days, whereupon they will be valued at amortized cost using their value on the 61/st/ day. All other securities and other assets are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Board of Trustees. Futures Contracts: The Fund may enter into financial futures contracts which are contracts to buy a standard quantity of securities at a specified price on a future date. The Fund is required to deposit either in cash or securities an amount equal to a certain percentage of the contract amount. Variation margin payments are made or received by the Fund each day, dependent on the daily fluctuations in the value of the underlying security, and are recorded for financial statement purposes as unrealized gains or losses by the Fund. The Fund's investments in financial futures contracts are designed to closely replicate the benchmark index used by the Fund. Risks arise from possible illiquidity of the futures market and from movements in security values. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. Options: The Fund may also purchase and write call and put options on financial index futures contracts. When a Fund writes a call or put option, an amount equal to the premium received is reflected as a liability. The liability is subsequently "marked-to-market" to reflect the current market value of the option written. The premium paid by a Fund for the purchase of a call or put option is recorded as an investment and subsequently "marked-to-market" to reflect the current market value of the option purchased. The Fund is subject to the risk of an imperfect correlation between movement in the price of the instrument and the price of the underlying security or transaction. Risks may also arise due to illiquid secondary markets for the instruments. 7 SAGE LIFE INVESTMENT TRUST ALL-CAP GROWTH FUND Notes to Financial Statements June 30, 2001 (unaudited) Federal Income Taxes: The Fund is a separate entity for federal income tax purposes. No provision for federal income taxes has been made since the Fund has complied and intends to continue to comply with provisions of Subchapter M of the Internal Revenue Code of 1986, as amended, available to regulated investment companies and to distribute its taxable income to shareholders sufficient to relieve it from all, or substantially all, federal income taxes. Capital Loss Carryforwards: At December 31, 2000, the Fund had, for federal income tax purposes, capital loss carryforwards available to offset future net realized capital gains in the amount of $43,022 expiring December 31, 2008. Securities Transactions and Investment Income: Investment transactions are recorded on trade date. Dividend income and distributions to shareholders are recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed are reported as income when the Fund identifies the dividend. Interest income (including amortization of premium and discount on securities) and expenses are accrued daily. Realized gains and losses from investment transactions are recorded on an identified cost basis which is the same basis the Trust uses for Federal income tax purposes. Purchases of securities under agreements to resell are carried at cost, and the related accrued interest is included in interest receivable. Repurchase Agreements: The Fund may enter into repurchase agreements with a bank, broker-dealer or other financial institution, which are secured by obligations of the U.S. government. Each repurchase agreement is at least 100% collateralized. However, in the event of default or bankruptcy by the counterparty to the agreement, realization of collateral may be subject to certain costs, losses or delays. Dividends and Distributions to Shareholders: The Fund distributes substantially all of its net investment income and capital gains to shareholders each year. The Fund distributes capital gains and income dividends at least annually. All dividends and capital gains distributions paid by the Fund will be automatically reinvested, at net asset value, in the Fund. Income dividends and capital gain distributions of the Fund are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States. This may result in temporary and permanent differences between tax basis earnings and earnings reported for financial statement purposes. Temporary differences that result in over- distributions for financial statement purposes are classified as distributions in excess of net investment income or accumulated net realized gains. Permanent differences in recognition of earnings are reclassified to additional paid-in capital. Distributions in excess of tax-basis earnings are recorded as a return of capital. 2. Investment Advisory Fees and Other Transactions With Affiliates Sage Advisors, Inc. ("Sage"), a wholly-owned subsidiary of Sage Insurance Group, Inc., is the investment manager of the Fund. In connection with its role as investment manager of the Fund, Sage pays all the Fund's expenses, except brokerage fees, expenses of the non-interested Trustees (including Fund counsel fees), audit fees and extraordinary expenses. As compensation for services rendered, the Fund pays Sage a monthly fee based on a percentage of the average daily net assets of the Fund at the annual percentage rate of 1.10%. During the six months ended June 30, 2001, Sage voluntarily waived 0.11% of its fee. 8 SAGE LIFE INVESTMENT TRUST ALL-CAP GROWTH FUND Notes to Financial Statements June 30, 2001 (unaudited) Sage has contractually agreed to limit the expenses of the Fund until May 1, 2002. With this limitation the Fund's total expenses are limited to an annual percentage rate of 1.10%. During the period ended June 30, 2001, Sage reimbursed the Fund $1,127 to prevent its expenses from exceeding an annual percentage rate of 1.10%. Sage has retained the services of Eagle Asset Management (the "Sub-Adviser") to serve as the investment adviser to the Fund. As compensation for the Sub-Adviser's services and the related expenses they incur with respect to the Fund, Sage pays the Sub-Adviser a monthly fee based on a percentage of the average daily net assets of the Fund at the annual percentage rate of 0.45% of the first $50 million of assets under management, 0.40% of the next $250 million of assets under management, and 0.30% on amounts in excess of $300 million of assets under management. 3. Purchases and Sales of Securities The aggregate cost of purchases and proceeds from sales of securities, other than short-term investments, for the period ended June 30, 2001 were $477,681 and $326,093 respectively. 9 [LOGO]SAGE Sage Life Investment Trust Customer Service Center P.O. Box 290680 Wethersfield, CT 06129-0680 PHONE: 877-TEL-SAGE 877-835-7243 FAX: 877-FAX-SAGE 877-329-7243 E-MAIL: service@sageusa.com Visit us at www.sageusa.com Executive Office 300 Atlantic Street . Stamford, CT 06901 Sage Life Investment Trust EAFE Index Fund June 30, 2001 Schedule of Investments
Market Shares Value ------ ----- COMMON STOCK - 0.0% Real Estate - 0.0% 127 Westfield Trust DRP................................. $ 217 --------- TOTAL INVESTMENTS - 0.0% (Cost $209).................................... 217 ---------- Cash & Other Assets, Net of Liabilities - 100.0% 737,811 ---------- NET ASSETS - 100.0%................................. $ 738,028. ==========
* Non-income producing security Sage Life Investment Trust EAFE Equity Index Fund Statement of Assets and Liabilities June 30, 2001 (Unaudited) Assets: Investments (Note 1): At identified cost................................................... $ 209 ================ At value ............................................................ $ 217 Cash, including foreign currency, at market value ...................... 155,560 Receivables: Receivable from securities sold...................................... 537,066 Dividends and interest............................................... 61,986 Receivable from advisor.............................................. 3,178 Prepaid insurance.................................................... 133 ---------------- Total Assets...................................................... 758,140 ---------------- Liabilities: Payables: Other liabilities ................................................... 13,054 Payable to advisor .................................................. 7,058 ---------------- Total Liabilities ................................................ 20,112 ---------------- Net Assets.............................................................. $ 738,028 ================ Net Assets Consist of: Paid-in capital......................................................... $ 2,529,755 Undistributed net investment income..................................... 92,257 Accumulated net realized loss on investments............................ (1,878,626) Net unrealized depreciation on investments.............................. (5,358) --------------- Total Net Assets........................................................ $ 738,028 =============== Shares of beneficial interest outstanding............................... 87,225 =============== Net Asset Value, offering price and redemption price per share $ 8.46 ===============
See notes to financial statements Sage Life Investment Trust EAFE Equity Index Fund Statement of Operations For Six Months Ended June 30, 2001 (Unaudited) Investment Income: Dividends (net of foreign withholding taxes of $28,024 respectively) $ 144,809 Interest 12,700 ----------- Total investment income 157,509 ----------- Expenses: Investment advisory fees (Note 2) 55,039 Audit expense 18,902 Trustees' fees and expenses 7,351 Insurance expense 949 ----------- Total expenses 82,241 Less: Advisory fee waivers and expense reimbursement (Note 2) (14,153) ----------- Net expenses 68,088 ----------- Net investment income 89,421 ----------- Realized and Unrealized Loss on Investments and Foreign Currency Transactions: Net realized loss on investments (1,737,172) Net realized loss on foreign currency transactions (130,019) Net change in unrealized depreciation of investments and foreign currency transactions (374,844) Net realized and unrealized loss on investments and ----------- foreign currency transactions (2,242,035) ----------- Net Decrease in Net Assets Resulting from Operations ($2,152,614) ===========
See notes to financial statements Sage Life Investment Trust EAFE Equity Index Fund Statement of Changes in Net assets
Six Months Ended June 30, 2001 Year Ended (Unaudited) December 31, 2000 ============== ====================== Operations: Net investment income $ 89,421 $ 102,357 Net realized gain (loss) on investments and foreign currency transactions (1,867,191) 1,055,185 Net change in unrealized depreciation of investments and foreign currency transactions (374,844) (4,030,984) ------------ ------------ Net decrease in net assets resulting from operations (2,152,614) (2,873,442) ------------ ------------ Distributions: From net investment income -- (87,186) From net realized gain on investments -- (1,161,249) ------------ ------------ Total Distributions -- (1,248,435) ------------ ------------ Capital Share Transactions: Proceeds from sale of shares 250,962 34,393 Shares issued in reinvestment of dividends & distributions -- 1,248,435 Cost of shares repurchased (14,967,331) (4,220,723) ------------ ------------ Net decrease in net assets resulting from capital share transactions (14,716,369) (2,937,895) ------------ ------------ Net decrease in net assets (16,868,983) (7,059,772) Net assets at beginning of period 17,607,011 24,666,783 ------------ ------------ Net assets at end of period $ 738,028 $ 17,607,011 ============ ============ Capital Share Transactions: Shares sold 29,451 3,135 Shares issued in reinvestment of dividends and distributions -- 128,572 Shares repurchased (1,737,857) (351,177) ------------ ------------ Net decrease in shares from capital share transactions (1,708,406) (219,470) ============ ============
See notes to financial statements Sage Life Investment Trust EAFE Equity Index Fund Financial Highlights The table below sets forth financial data for one share of capital stock outstanding throughout the periods presented.
Six Months Ended June 30, 2001 Period Ended Period Ended (Unaudited) December 31, 2000 December 31, 1999 (1) ================ ==================== ====================== Net Asset Value, Beginning of Period $ 9.81 $ 12.24 $ 10.00 -------- -------- -------- Operations: Net investment income 1.06 0.06 0.08 Net realized and unrealized gain (loss) on investments and Foreign currency transactions (2.41) (1.74) 2.25 -------- -------- -------- Total from Investment Operations (1.35) (1.68) 2.33 -------- -------- -------- Distributions to Shareholders: Dividends from net investment income -- (0.05) (0.07) Distributions from net realized gain on investments -- (0.70) (0.02) -------- -------- -------- Total Distributions 0.00 (0.75) (0.09) -------- -------- -------- Net Asset Value, End of Period $ 8.46 $ 9.81 $ 12.24 ======== ======== ======== Total Return** (13.76%) (13.67%) 23.30% Ratios/Supplemental Data: Net Assets, end of period (in thousands) $ 738 $ 17,607 $ 24,667 Ratio of Net Investment Income to Average Net Assets Before waiver/reimbursement of investment advisory fees 1.00% 0.17% 0.86%* After waiver/reimbursement of investment advisory fees 1.19% 0.52% 1.03%* Ratio of Expenses to Average Net Assets Before waiver/reimbursement of investment advisory fees 1.10% 1.25% 1.07%* After waiver/reimbursement of investment advisory fees 0.90% 0.90% 0.90%* Portfolio Turnover 0% 6% 10%
(1) Commenced operations on March 22, 1999. * Ratios have been annualized. ** Total investment return is calculated assuming an initial investment made at net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period and redemption on the last day of the period. Total investment return is not annualized. See notes to financial statements Sage Life Investment Trust EAFE Equity Index Fund Notes to Financial Statements JUNE 30, 2001 (unaudited) 1. Summary of Significant Accounting Policies The Sage Life Investment Trust (the "Trust") was organized as a Delaware business trust on January 9, 1998 and is registered under the Investment Company Act of 1940, as amended, as a diversified, no-load, open-end management investment company. The Trust is a "series type" which issues separate series of shares, each of which represents a separate diversified portfolio of investments. EAFE Equity Index Fund ("the Fund") is one of the funds offered to investors by the Trust. The Fund began operations on March 22, 1999. Shares of the Fund are available to separate accounts funding certain variable annuity and variable life insurance contracts issued by various insurance companies and to various pension and profit-sharing plans. The EAFE Fund seeks to replicate as closely as possible the performance of the Morgan Stanley Capital International Europe, Australasia, Far East Index ("EAFE Index") before the deduction of fund expenses. The EAFE Index is a capitalization-weighted index of stock companies outside the United States. The Fund generally intends to allocate its investments among stocks in approximately the same proportions as they are represented in the EAFE Index. Index Funds are not managed according to traditional methods of "active" investment management, which involve the buying and selling of securities based upon economic, financial, market analysis and investment judgement. Instead, Index Funds utilize a "passive" or "indexing" investment approach and attempt to replicate the investment performance of their respective index through statistical procedures. The preparation of financial statements in accordance with accounting principles generally accepted in the United States 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. The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States. Valuation: The Fund's investments, which are traded on recognized domestic exchanges for which price quotations are available, are valued each business day on the basis of market valuations furnished by an independent pricing service approved by the Board of Trustees. Securities are valued based on the closing price of the security traded on that exchange prior to the time when the Fund's assets are valued. Short-term obligations with remaining maturities of 60 days or less are valued at amortized cost. Other short-term debt securities are valued on a mark-to-market basis until such time as they reach a remaining maturity of 60 days, whereupon they will be valued at amortized cost using their value on the 61/st/ day. All other securities and other assets are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Board of Trustees. Foreign currency: Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the mean of the quoted bid and asked prices of such currencies against the U.S. dollar as of the close of business immediately preceding the time of valuation. Purchases and sales of portfolio securities are translated at the rate of exchange prevailing when such securities were acquired or sold. Income and expenses are translated at the rate of exchange prevailing when accrued. The Trust does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on securities from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain/(loss) on investments. Reported net realized gains or losses on foreign currency transactions arise from sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds' books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized appreciation/(depreciation) on other assets and liabilities denominated in foreign currencies arise from changes in the value of assets and liabilities other than investments in securities at period end, resulting from changes in the exchange rate. Sage Life Investment Trust EAFE Equity Index Fund Notes to Financial Statements JUNE 30, 2001 (unaudited) Futures Contracts: The Fund may enter into financial futures contracts which are contracts to buy a standard quantity of securities at a specified price on a future date. The Fund is required to deposit either in cash or securities an amount equal to a certain percentage of the contract amount. Variation margin payments are made or received by the Fund each day, dependent on the daily fluctuations in the value of the underlying security, and are recorded for financial statement purposes as unrealized gains or losses by the Fund. The Fund's investments in financial futures contracts are designed to closely replicate the benchmark index used by the Fund. Risks arise from possible illiquidity of the futures market and from movements in security values. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. Options: The Fund may also purchase and write call and put options on financial index futures contracts. When a Fund writes a call or put option, an amount equal to the premium received is reflected as a liability. The liability is subsequently "marked-to-market" to reflect the current market value of the option written. The premium paid by a Fund for the purchase of a call or put option is recorded as an investment and subsequently "marked-to-market" to reflect the current market value of the option purchased. The Fund is subject to the risk of an imperfect correlation between movement in the price of the instrument and the price of the underlying security or transaction. Risks may also arise due to illiquid secondary markets for the instruments. Federal Income Taxes: The Fund is a separate entity for federal income tax purposes. No provisions for federal income taxes have been made since each Fund has complied and intends to continue to comply with provisions of Subchapter M of the Internal Revenue Code of 1986, as amended, available to regulated investment companies and to distribute its taxable income to shareholders sufficient to relieve it from all, or substantially all, federal income taxes. Securities Transactions and Investment Income: Investment transactions are recorded on trade date. Dividend income and distributions to shareholders are recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed are reported as income when the Fund identifies the dividend. Interest income (including amortization of premium and discount on securities) and expenses are accrued daily. Realized gains and losses from investment transactions are recorded on an identified cost basis which is the same basis the Trust uses for Federal income tax purposes. Purchases of securities under agreements to resell are carried at cost, and the related accrued interest is included in interest receivable. Repurchase Agreements: The Fund may enter into repurchase agreements with a bank, broker-dealer or other financial institution, which are secured by obligations of the U.S. government. Each repurchase agreement is at least 100% collateralized. However, in the event of default or bankruptcy by the counterparty to the agreement, realization of collateral may be subject to certain costs, losses or delays. Dividends and Distributions to Shareholders: Each Fund distributes substantially all of its net investment income and capital gains to shareholders each year. The Fund distributes capital gains and income dividends at least annually. All dividends and capital gains distributions paid by the Fund will be automatically reinvested, at net asset value, in the Fund. Income dividends and capital gain distributions of the Fund is determined in accordance with income tax regulations which may differ from accounting principals generally accepted in the United States. This may result in temporary and permanent differences between tax basis earnings and earnings reported for financial statement purposes. Temporary differences that result in over-distributions for financial statement purposes are classified as distributions in excess of net investment income or accumulated net realized gains. Permanent differences in recognition of earnings are reclassified to additional paid-in capital. Distributions in excess of tax-basis earnings are recorded as a return of capital. Risks Associated with Foreign Securities: The risks of investing in foreign securities include fluctuations in foreign exchange rates, future political and economic developments, and the possible imposition of exchange controls or other foreign governmental laws and restrictions. In addition, with respect to certain countries, there is the possibility of expropriation of assets, confiscatory taxation, political or social instability or diplomatic developments which could adversely affect investments in these countries. There may be less publicly available information about a foreign company than about a U.S. company, and foreign companies may not be subject to accounting, auditing and financial reporting standards and requirements comparable to or as uniform as those of U.S. Sage Life Investment Trust EAFE Equity Index Fund Notes to Financial Statements JUNE 30, 2001 (unaudited) companies. Non-U.S. securities markets, while growing in volume, have, for the most part, substantially less volume than U.S. markets. Securities of many foreign companies are less liquid and their prices more volatile than securities of comparable U.S. companies. Transaction costs of investing in non-U.S. securities markets are generally higher than in the U.S. There is generally less government supervision and regulation of exchanges, brokers and issuers than there is in the U.S. The Funds might have greater difficulty taking appropriate legal action in non-U.S. courts. Non-U.S. markets also have different clearance and settlement procedures which in some markets have at times failed to keep pace with the volume of transactions. This may create substantial delays and settlement failures that could adversely affect a Fund's performance. Adverse political, economic or social developments in the countries in which the Fund has invested could undermine the value of the Fund's investments or prevent the Fund from realizing their full value. The currency of a country in which the Fund invests may fluctuate in value relative to the U.S. dollar, which could affect the value of the investment itself to U.S. investors. Investments in foreign securities involve higher costs than investments in U.S. securities, including higher transaction costs as well as the imposition of additional taxes by foreign governments. In addition, foreign investments may include additional risks associated with the level of currency exchange rates, less complete financial information about the issuers, less market liquidity, and political instability. Future political and economic developments, the possible imposition of withholding taxes on interest income, the possible seizure or nationalization of foreign holdings, the possible establishment of exchange controls, or the adoption of other governmental restrictions might adversely affect the payment of principal and interest on foreign obligations. Additionally, foreign banks and foreign branches of domestic banks may be subject to less stringent reserve requirements, and to different accounting, auditing and recordkeeping requirements. 2. Investment Advisory Fees and Other Transactions With Affiliates Sage Advisors, Inc. ("Sage"), a wholly-owned subsidiary of Sage Insurance Group, Inc., is the investment manager of the Fund. In connection with its role as investment manager of the Fund, Sage pays all the Fund's expenses, except brokerage fees, and expenses of the non-interested Trustees (including Fund counsel fees), audit fees and extraordinary expenses. As compensation for services rendered, the Fund pay Sage a monthly fee based on a percentage of the average daily net assets of the Fund at the annual percentage rate of 0.90%. During the period ended June 30, 2001, the Investment Manager voluntarily waived .17% of its fee. Sage has contractually agreed to limit the expenses of the Fund until May 1, 2002. With this limitation the fund's total expenses are limited to an annual percentage rate of 0.90%. During the period ended June 30, 2001, the Investment Manager reimbursed the Fund $40,568 to prevent its expenses from exceeding an annual percentage rate of 0.90%. Sage has retained the services of SSgA Funds Management, Inc. to serve as the investment adviser to the Fund. As compensation for the advisers' services and the related expenses they incur with respect to the Fund, Sage pays the adviser a monthly fee based on a percentage of the average daily net assets of the Fund at the annual percentage rate of 0.15% of the first $50 million of assets under management, 0.10% of the next $50 million of assets under management, and 0.08% on amounts in excess of $100 million of assets under management with a minimum annual fee of $65,000. 3. Purchases and Sales of Securities The aggregate cost of purchases and proceeds from sales of securities, other than short-term investments, for the period ended June 30, 2001 were $23,200 and $15,349,256 respectively. 4. Subsequent Events Effective May 30, 2001 all shareholders except Sage Life had been redeemed from the Fund and no new shareholder subscriptions were being accepted into the Fund. Liquidation of the portfolio began in June 2001 with completion expected by end of July 2001. -----END PRIVACY-ENHANCED MESSAGE-----