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VIEWS: 14 PAGES: 19

									                                LVIP Money Market Fund




LVIP Money Market Fund
 a series of Lincoln Variable
 Insurance Products Trust
Annual Report
December 31, 2010
LVIP Money Market Fund
Index
   Commentary                                1
   Disclosure of Fund Expenses               2
   Sector Allocation                         3
   Statement of Net Assets                   4
   Statement of Operations                   7
   Statements of Changes in Net Assets       7
   Financial Highlights                      8
   Notes to Financial Statements             10
   Report of Independent Registered Public
    Accounting Firm                          13
   Other Fund Information                    14
   Officer/Trustee Information               16
LVIP Money Market Fund
2010 Annual Report Commentary



Managed by:                                                                                        Growth of $10,000 invested 12/31/00 through 12/31/10
                                                                                                              LVIP Money Market Fund Standard Class
                                                                                                              Citigroup 90 Day T-Bill Index


                                                                                                       $13,000
                                                                                                                                                                                    $12,499
The Fund returned 0.05% (Standard Class shares with distributions reinvested) for                                                                                                   $12,427

the fiscal year ended December 31, 2010, while its benchmark, the Citigroup                            $12,000
90-day Treasury-Bill Index*, returned 0.13%.
The Federal Reserve’s Zero Interest Rate Policy has dominated money markets for                        $11,000
over two years. Throughout calendar year 2010 money market interest rates
persisted at low levels in consequence, and the money market yield curve                               $10,000
remained flat throughout the year. At this point in time, there is every
indication this environment could persist through 2011 and into early 2012.
                                                                                                        $9,000 12/31/00                                                  12/31/10
That having been said, money markets in calendar year 2010 were not without
                                                                                                   This chart illustrates, hypothetically, that $10,000 was invested in the LVIP Money Market
change. There were two significant developments in calendar year 2010.                             Fund Standard Class shares on 12/31/00. Performance of the Service Class shares would be lower
                                                                                                   than Standard Class shares as a result of higher expenses. As the chart shows, by December 31,
1. The supply of U.S. commercial paper has stabilized. Through the first two                       2010, the value of the investment at net asset value, with any dividends and distributions
quarters of 2010 money markets were faced with a relative scarcity and declining                   reinvested, would have increased to $12,427. For comparison, look at how the Citigroup 90 Day
availability of commercial paper in which to invest. Since June commercial paper                   T-Bill Index did over the same period. The same $10,000 investment would have increased to
outstanding stabilized and then grew, both for financial and non-financial issuers.                $12,499. Earnings from a variable annuity investment compound tax-free until withdrawn, so no
                                                                                                   adjustments were made for income taxes. Past performance is not indicative of future
The expectation is that the expansion slowly manifesting itself in the general                     performance. Remember, an investor cannot invest directly in an index. An expense waiver
economy should increase commercial paper issuance.                                                 was in effect for the Fund’s during the period shown. Performance would have been lower had the
                                                                                                   expense waiver not been in effect.
2. Also in mid-year the outflows of investor money from money market funds
generally have subsided. Taxable money fund assets have stabilized around the                      Average annual total returns                                                     Ended
$2.4 trillion mark. This is a major improvement compared to the $428 billion                       on investment                                                                   12/31/10
outflow which exited money markets in the first half of the calendar year.
                                                                                                   Standard Class Shares
The year 2010 brought significant regulatory and accounting changes to the money
funds. Chief among them were changes to Rule 2a7, which were implemented in
                                                                                                   One Year                                                                           +0.05%
stages throughout the year. The new amendments to the rule intend to limit risk,                   Five Years                                                                         +2.45%
which includes new liquidity requirements and stricter quality requirements for                    Ten Years                                                                          +2.20%
money market funds, enhance money market fund transparency, particularly
through increased disclosure of portfolio information, and address a variety of                    Service Class Shares
other issues through a heightened regimen of monthly stress testing (e.g. impact of                One Year                                                                           +0.04%
swings in market conditions, consequences of large redemptions, and other factors
that could threaten to break the buck).                                                            Five Years                                                                         +2.25%
Although the economy is showing signs of improvement, the greatest challenge to                    Inception (5/15/03)                                                                +1.92%
money market funds for calendar year 2011 is likely to be the continuation of very                 * The Citigroup 90 Day T-Bill Index is an unmanaged index that measures the rate of return for
low yields into their third year.                                                                    90-day U.S. Treasury Bills.
                                                                                                   Delaware Investments, a member of Macquarie Group, refers to Delaware Management
Cynthia Isom                                                                                       Holdings, Inc. (DMHI) and its subsidiaries, including Delaware Management Business Trust,
                                                                                                   sub-advisor to the Fund. Macquarie Group refers to Macquarie Group Limited (MGL) and its
Delaware Investments                                                                               subsidiaries and affiliates worldwide.
The views expressed represent the Manager’s assessment of the Fund and market environment
                                                                                                   Delaware Management Business Trust is not an authorized deposit taking institution for the
as of the most recent quarter end and should not be considered a recommendation to buy, hold, or
                                                                                                   purposes of the Banking Act 1959 (Commonwealth of Australia) and its obligations do not
sell any security, and should not be relied on as research or investment advice.
                                                                                                   represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL).
                                                                                                   MBL does not guarantee or otherwise provide assurance in respect of the obligations of Delaware
                                                                                                   Investments, unless otherwise noted.
                                                                                                   All third-party trademarks are the property of their respective owners.
                                                                                                   (c) 2011 Delaware Management Holdings Inc.




                                                                                 LVIP Money Market Fund–1
LVIP Money Market Fund
Disclosure
      OF FUND EXPENSES
For the Period July 1, 2010 to December 31, 2010

The Fund’s shares are sold directly or indirectly to The Lincoln National Life        Please note that the expenses shown in the table are meant to highlight your
Insurance Company and its affiliates for allocation to their variable annuity and     ongoing costs only. The Fund does not charge transaction fees, such as sales charges
variable universal life products. The insurance company separate account              (loads), redemption fees, or exchange fees. Therefore, the second section of the table
beneficial owners incur ongoing costs such as the separate account’s cost of          is useful in comparing ongoing costs only, and will not help you determine the
owning shares of the Fund. The ongoing Fund costs incurred by beneficial              relative total costs of owning different funds. The Fund’s actual expenses shown in
owners are included in the Expense Analysis table. The Expense Analysis table         the table reflect fee waivers in effect.
does not include other costs incurred by beneficial owners such as insurance
company separate account fees and variable annuity or variable life contract          Expense Analysis of an Investment of $1,000
charges.
                                                                                                                                                                           Expenses
As a shareholder of the Fund, you incur ongoing costs, including management fees;                                          Beginning       Ending                        Paid During
distribution and/or service (12b-1) fees; and other Fund expenses. Shareholders of                                          Account        Account       Annualized         Period
                                                                                                                             Value          Value         Expense         7/1/10 to
other funds may also incur transaction costs, including sales charges (loads) on                                            7/1/10        12/31/10         Ratio          12/31/10*
purchase payments, reinvested dividends or other distributions, redemption fees,
and exchange fees. This Example is intended to help you understand your ongoing       Actual
costs (in dollars) of investing in the Fund and to compare these costs with the       Standard Class Shares               $1,000.00       $1,000.30        0.26%            $1.31
ongoing costs of investing in other mutual funds.                                     Service Class Shares                 1,000.00        1,000.30        0.26%             1.31
The Example is based on an investment of $1,000 invested at the beginning of the      Hypothetical (5% return before expenses)
period and held for the entire period from July 1, 2010 to December 31, 2010.         Standard Class Shares        $1,000.00 $1,023.89                     0.26%            $1.33
                                                                                      Service Class Shares           1,000.00  1,023.89                    0.26%             1.33
Actual Expenses                                                                       * “Expenses Paid During Period” are equal to the Fund’s annualized expense ratio, multiplied by
The first section of the table, “Actual”, provides information about actual account     the average account value over the period, multiplied by 184/365 (to reflect the one-half year
                                                                                        period).
values and actual expenses. You may use the information in this section of the
table, together with the amount you invested, to estimate the expenses that you
paid over the period. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number in the first section under the heading entitled “Expenses Paid During
Period” to estimate the expenses you paid on your account during the period.

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




                                                                      LVIP Money Market Fund–2
LVIP Money Market Fund
Sector Allocation
As of December 31, 2010

Sector designations may be different than the sector designations presented in other Fund materials.
                                                                    Percentage
Sector                                                             of Net Assets
Agency Obligation                                                       2.83%
Certificates of Deposit                                                18.94%
Commercial Paper                                                       65.81%
Capital Markets                                                         6.23%
Colleges & Universities                                                25.26%
Commercial Banks                                                       26.04%
Diversified Financial Services                                          2.23%
Health Care Providers & Services                                        3.70%
Multi-Utilities                                                         1.78%
Oil, Gas & Consumable Fuels                                             0.57%
Corporate Bonds                                                         2.57%
Municipal Bonds                                                         9.81%
Sovereign Bond                                                          0.29%
Total Value of Securities                                            100.25%
Liabilities Net of Receivables and Other Assets                        (0.25%)
Total Net Assets                                                     100.00%




                                                                   LVIP Money Market Fund–3
LVIP Money Market Fund
Statement of Net Assets
December 31, 2010


                                                         Principal                                                                                 Principal
                                                         Amount          Value                                                                     Amount           Value
                                                          (U.S. $)      (U.S. $)                                                                    (U.S. $)       (U.S. $)
 AGENCY OBLIGATION–2.83%                                                                   COMMERCIAL PAPER (continued)
 Federal Home Loan Banks                                                                   Colleges & Universities (continued)
  0.40% 11/18/11 . . . . . . . . . . . . . . . . . .    $25,000,000   $ 25,000,000         Leland Stanford Junior University
 Total Agency Obligation                                                                    0.23% 1/21/11. . . . . . . . . . . . . . . . . . .    $15,000,000   $ 14,998,083
  (Cost $25,000,000) . . . . . . . . . . . . . . .                      25,000,000         Massachusetts Health & Education
                                                                                            Facilities Authority (Harvard University)
 CERTIFICATES OF DEPOSIT–18.94%                                                             0.23% 1/11/11. . . . . . . . . . . . . . . . . . .     30,000,000     30,000,000
 Bank of Montreal Chicago                                                                  University of Chicago
  0.22% 1/3/11 . . . . . . . . . . . . . . . . . . .     40,000,000     40,000,000          0.26% 1/12/11. . . . . . . . . . . . . . . . . . .     16,350,000     16,348,701
 Barclays Bank                                                                              0.26% 2/1/11 . . . . . . . . . . . . . . . . . . .      6,250,000      6,248,601
  0.23% 1/12/11. . . . . . . . . . . . . . . . . . .     10,000,000     10,000,000          0.27% 2/16/11. . . . . . . . . . . . . . . . . . .     12,500,000     12,495,688
 •0.408% 2/1/11 . . . . . . . . . . . . . . . . . .       7,500,000      7,500,000         Vanderbilt University
 Credit Suisse New York                                                                     0.351% 5/10/11 . . . . . . . . . . . . . . . . . .      5,073,000      5,066,638
  0.25% 1/20/11. . . . . . . . . . . . . . . . . . .     25,000,000     25,000,000          0.40% 1/11/11. . . . . . . . . . . . . . . . . . .     31,950,000     31,946,450
 Deutsche Bank New York                                                                    Yale University 0.25% 1/31/11 . . . . . . . . .         20,000,000     19,995,833
  0.25% 1/20/11. . . . . . . . . . . . . . . . . . .     25,000,000     25,000,000
                                                                                                                                                                 223,120,451
•Rabobank Nederland
  0.352% 9/13/11 . . . . . . . . . . . . . . . . . .     20,000,000     20,000,000         Commercial Banks–26.04%
 Toronto Dominion Bank New York                                                            Abbey National North America
  0.23% 1/18/11. . . . . . . . . . . . . . . . . . .     14,000,000     14,000,000           0.20% 1/7/11 . . . . . . . . . . . . . . . . . . .    10,000,000      9,999,667
 •0.311% 5/19/11. . . . . . . . . . . . . . . . . .      12,250,000     12,250,000          0.25% 1/13/11 . . . . . . . . . . . . . . . . . .      30,000,000     30,000,000
 •0.331% 10/28/11 . . . . . . . . . . . . . . . . .      13,500,000     13,500,000         BNP Paribas Finance Canada
 Total Certificates of Deposit                                                              0.41% 1/3/11 . . . . . . . . . . . . . . . . . . .     40,000,000     39,999,584
  (Cost $167,250,000) . . . . . . . . . . . . . .                      167,250,000         Credit Agricole Cheuvreux North America
                                                                                            0.225% 1/7/11. . . . . . . . . . . . . . . . . . .     23,780,000     23,779,108
 COMMERCIAL PAPER–65.81%                                                                   Danske
 Capital Markets–6.23%                                                                      0.27% 1/18/11. . . . . . . . . . . . . . . . . . .     20,000,000     19,997,450
 Credit Suisse New York                                                                     0.32% 3/15/11. . . . . . . . . . . . . . . . . . .     15,000,000     14,990,267
  0.23% 1/3/11 . . . . . . . . . . . . . . . . . . .     15,000,000     14,999,808         HSBC USA 0.24% 1/3/11 . . . . . . . . . . . .           15,000,000     14,999,800
 Societe Generale North America                                                            National Australian Funding
  0.11% 1/3/11 . . . . . . . . . . . . . . . . . . .     40,000,000     39,999,756          0.466% 1/3/11. . . . . . . . . . . . . . . . . . .     20,000,000     19,999,483
                                                                        54,999,564         Nordea North America
                                                                                            0.29% 3/17/11. . . . . . . . . . . . . . . . . . .     25,000,000     24,984,896
 Colleges & Universities–25.26%                                                            Skandinav Enskilda Bank
 Brown University                                                                           0.30% 2/8/11 . . . . . . . . . . . . . . . . . . .     15,000,000     14,995,250
  0.27% 2/3/11 . . . . . . . . . . . . . . . . .   ..     8,850,000      8,847,810          0.32% 2/23/11. . . . . . . . . . . . . . . . . . .     16,250,000     16,242,344
  0.30% 1/12/11. . . . . . . . . . . . . . . . .   ..    10,200,000     10,199,065
 Connecticut Health & Education                                                                                                                                  229,987,849
  (Yale University Series)                                                                 Diversified Financial Services–2.23%
  0.26% 1/13/11. . . . . . . . . . . . . . . . .   ..     4,160,000      4,160,000         Cargill Global Fund
  0.28% 1/11/11. . . . . . . . . . . . . . . . .   ..     5,130,000      5,130,000          0.26% 1/10/11. . . . . . . . . . . . . . . . . . .     15,000,000     14,999,025
 Cornell University                                                                         0.27% 1/7/11 . . . . . . . . . . . . . . . . . . .      4,750,000      4,749,786
  0.27% 4/6/11 . . . . . . . . . . . . . . . . .   ..     4,000,000      3,997,150
                                                                                                                                                                  19,748,811
  0.27% 4/7/11 . . . . . . . . . . . . . . . . .   ..     8,050,000      8,044,204
  0.29% 2/3/11 . . . . . . . . . . . . . . . . .   ..     8,750,000      8,747,674         Health Care Providers & Services–3.70%
  0.30% 1/25/11. . . . . . . . . . . . . . . . .   ..    10,000,000      9,998,000         Catholic Health Initiatives
 Dartmouth College                                                                          0.28% 2/8/11 . . . . . . . . . . . . . . . . . . .  7,650,000          7,650,000
  0.29% 2/3/11 . . . . . . . . . . . . . . . . .   ..     4,250,000      4,248,870          0.30% 2/8/11 . . . . . . . . . . . . . . . . . . . 10,000,000         10,000,000
 Duke University                                                                            0.34% 3/10/11. . . . . . . . . . . . . . . . . . . 15,000,000         15,000,000
  0.30% 3/7/11 . . . . . . . . . . . . . . . . .   ..     4,275,000      4,272,684                                                                                32,650,000
 Emory University
  0.30% 3/9/11 . . . . . . . . . . . . . . . . .   ..     8,375,000      8,375,000
  0.32% 2/3/11 . . . . . . . . . . . . . . . . .   ..    10,000,000     10,000,000




                                                                         LVIP Money Market Fund–4
LVIP Money Market Fund
Statement of Net Assets (continued)


                                                         Principal                                                                               Principal
                                                         Amount          Value                                                                   Amount           Value
                                                          (U.S. $)      (U.S. $)                                                                  (U.S. $)       (U.S. $)
 COMMERCIAL PAPER (continued)                                                              MUNICIPAL BONDS–9.81%
 Multi-Utilities–1.78%                                                                    •Variable Demand Notes–9.81%
 Los Angeles California Water & Power                                                      California State Revenue Anticipation
  Resources 0.28% 3/1/11 . . . . . . . . . . . .        $15,750,000   $ 15,750,000          Notes Series A-2 3.00% 6/28/11
                                                                                            (LOC–JPMorgan Chase Bank). . . . . . . .            $14,750,000   $ 14,838,928
                                                                        15,750,000
                                                                                           Colorado Educational & Cultural Facilities
 Oil, Gas & Consumable Fuels–0.57%                                                          Authority Revenue
 Northwest Natural Gas                                                                      (National Jewish Federation Program)
  0.26% 1/12/11. . . . . . . . . . . . . . . . . . .      5,000,000      4,999,603          Series A-8 0.29% 9/1/35
                                                                         4,999,603          (LOC–Bank of America N.A.) . . . . . . . .            7,270,000      7,270,000
                                                                                           Delaware River Port Authority
 Total Commercial Paper                                                                     Pennsylvania & New Jersey Revenue
  (Cost $581,256,278) . . . . . . . . . . . . . .                      581,256,278          Refunding Series C
 CORPORATE BONDS–2.57%                                                                      0.32% 1/1/26
 Capital Markets–0.64%                                                                      (LOC–PNC Bank N.A.) . . . . . . . . . . . .          10,250,000     10,250,000
 Goldman Sachs Group                                                                       Hanover County, Virginia Economic
  6.875% 1/15/11 . . . . . . . . . . . . . . . . . .      5,156,000      5,168,425          Development Authority Revenue (Bon
 Morgan Stanley                                                                             Secours Health)
  5.05% 1/21/11. . . . . . . . . . . . . . . . . . .       500,000         501,263          Series D-2 0.31% 11/1/25
                                                                         5,669,688          (LOC–U.S. Bank N.A.) . . . . . . . . . . . . .        5,900,000      5,900,000
                                                                                           Harrisonburg, Virginia Redevelopment &
 Commercial Banks–1.00%                                                                     Housing Authority Multi-Family Housing
 National City Bank Cleveland                                                               Revenue Refunding (Amberton
  6.25% 3/15/11-00. . . . . . . . . . . . . . .    ..     3,115,000      3,148,443          Apartments) Series A 0.45% 5/1/26
 National City Bank Kentucky                                                                (LOC–Bank of America N.A.) . . . . . . . .            7,000,000      7,000,000
  6.30% 2/15/11. . . . . . . . . . . . . . . . .   ..     2,400,000      2,416,889         Maryland State Health & Higher
 U.S. Bank 6.375% 8/1/11 . . . . . . . . . .       ..       825,000        853,402          Educational Facilities Authority Revenue
 Wells Fargo Bank                                                                           (Adjustable Pooled Loan Program)
  4.875% 1/12/11 . . . . . . . . . . . . . . . .   ..       470,000        470,586          Series B 0.31% 4/1/35 (LOC–JPMorgan
  6.375% 8/1/11. . . . . . . . . . . . . . . . .   ..     1,885,000      1,942,397          Chase Bank) . . . . . . . . . . . . . . . . . . .    12,600,000     12,600,000
                                                                         8,831,717         Massachusetts State Port Authority
                                                                                            Revenue Refunding Series D 0.36% 7/1/29
 Diversified Financial Services–0.83%                                                       (LOC–Bank of America N.A.) (AMT) . . . .              9,500,000      9,500,000
 Bank of America                                                                           Nassau County, New York Health Care
  7.40% 1/15/11. . . . . . . . . . . . . . . . . . .      2,265,000      2,270,598          Revenue Series C2 0.32% 8/1/29
 JPMorgan Chase                                                                             (LOC–Wachovia Bank N.A). . . . . . . . . .            7,400,000      7,400,000
  6.75% 2/1/11 . . . . . . . . . . . . . . . . . . .      5,000,000      5,023,798         New York, New York City Health &
                                                                         7,294,396          Hospital Revenue (Health System)
                                                                                            Series E 0.29% 2/15/26
 Thrifts & Mortgage Finance–0.04%
                                                                                            (LOC–JPMorgan Chase Bank). . . . . . . .             11,890,000     11,890,000
 Countrywide Home Loans
  4.00% 3/22/11. . . . . . . . . . . . . . . . . . .       350,000         352,441         Total Municipal Bonds
                                                                                            (Cost $86,648,928) . . . . . . . . . . . . . . .                    86,648,928
                                                                          352,441
                                                                                           SOVEREIGN BOND–0.29%
 Pharmaceuticals–0.06%                                                                     Eksportfinans
 Wyeth 6.95% 3/15/11. . . . . . . . . . . . . . .          520,000         526,654          5.125% 10/26/11 . . . . . . . . . . . . . . . . .     2,500,000      2,596,036
                                                                          526,654          Total Sovereign Bond
 Total Corporate Bonds                                                                      (Cost $2,596,036). . . . . . . . . . . . . . . .                     2,596,036
  (Cost $22,674,896) . . . . . . . . . . . . . . .                      22,674,896




                                                                         LVIP Money Market Fund–5
LVIP Money Market Fund
Statement of Net Assets (continued)


TOTAL VALUE OF SECURITIES–100.25% (Cost $885,426,138) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $885,426,138
LIABILITIES NET OF RECEIVABLES AND OTHER ASSETS–(0.25%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             (2,191,604)
NET ASSETS APPLICABLE TO 88,323,522 SHARES OUTSTANDING–100.00% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $883,234,534
NET ASSET VALUE–LVIP MONEY MARKET FUND STANDARD CLASS ($518,603,503 / 51,859,245 Shares) . . . . . . . . . . . . . . . . . . . . . . .                                  $10.000
NET ASSET VALUE–LVIP MONEY MARKET FUND SERVICE CLASS ($364,631,031 / 36,464,277 Shares) . . . . . . . . . . . . . . . . . . . . . . . .                                 $10.000
COMPONENTS OF NET ASSETS AT DECEMBER 31, 2010:
Shares of beneficial interest (unlimited authorization-no par) . . . .               ........   ........   ........   ........   ........   ........   ......   . . $883,233,280
Undistributed net investment income . . . . . . . . . . . . . . . . . . .            ........   ........   ........   ........   ........   ........   ......   ..           137
Accumulated net realized gain on investments . . . . . . . . . . . . .               ........   ........   ........   ........   ........   ........   ......   ..         1,117
Total net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   ........   ........   ........   ........   ........   ........   ......   . . $883,234,534

    The rate shown is the effective yield at the time of purchase.
k   Variable rate security. The rate shown is the rate as of December 31, 2010. Interest rates reset periodically.
    Also the cost for federal income tax purposes.
Summary of Abbreviations:
AMT–Alternative Minimum Tax
LOC–Letter of Credit

                                                      See accompanying notes, which are an integral part of the financial statements.




                                                                                     LVIP Money Market Fund–6
LVIP Money Market Fund                                                                          LVIP Money Market Fund
Statement of Operations                                                                         Statements of Changes in Net Assets
Year Ended December 31, 2010

                                                                                                                                                                Year Ended
                                                                                                                                                        12/31/10          12/31/09

INVESTMENT INCOME:                                                                              INCREASE IN NET ASSETS FROM
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,379,960     OPERATIONS:
EXPENSES:                                                                                       Net investment income . . . . . . . . . . . . $             451,165 $       2,963,294
Management fees . . . . . . . . . . . . . . . . . . . .        ........   ..    3,586,300       Net realized gain on investments. . . . . .                   1,117             4,100
Distribution expenses-Service Class . . . . . . . .            ........   ..    1,080,602       Net increase in net assets resulting from
Accounting and administration expenses . . . . .               ........   ..      468,168        operations . . . . . . . . . . . . . . . . . . . .         452,282         2,967,394
Reports and statements to shareholders. . . . . .              ........   ..       89,300
                                                                                                DIVIDENDS AND DISTRIBUTIONS
Trustees’ fees. . . . . . . . . . . . . . . . . . . . . . .    ........   ..       41,687
                                                                                                 TO SHAREHOLDERS FROM:
Professional fees . . . . . . . . . . . . . . . . . . . . .    ........   ..       31,533
                                                                                                Net investment income:
Custodian fees . . . . . . . . . . . . . . . . . . . . . .     ........   ..       14,299
                                                                                                 Standard Class. . . . . . . . . . . . . . . . .           (274,926)       (2,460,977)
Pricing fees . . . . . . . . . . . . . . . . . . . . . . . .   ........   ..        5,342
                                                                                                 Service Class . . . . . . . . . . . . . . . . . .         (176,239)         (502,188)
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . .   ........   ..       42,269
                                                                                                Net realized gain on investments:
                                                                                5,359,500        Standard Class. . . . . . . . . . . . . . . . .             (2,279)           (8,501)
Less expenses waived/reimbursed. . . . . . . . . . . . . . . . . . . .         (1,379,913)       Service Class . . . . . . . . . . . . . . . . . .           (1,821)           (6,114)
Less waived distribution expenses-Service Class . . . . . . . . . .            (1,050,792)
                                                                                                                                                           (455,265)       (2,977,780)
Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . . .      2,928,795
                                                                                                CAPITAL SHARE TRANSACTIONS:
NET INVESTMENT INCOME . . . . . . . . . . . . . . . . . . . .                     451,165       Proceeds from shares sold:
NET REALIZED GAIN ON INVESTMENTS . . . . . . . . . .                                 1,117       Standard Class. . . . . . . . . . . . . . . . .        472,987,316      476,962,606
NET INCREASE IN NET ASSETS RESULTING FROM                                                        Service Class . . . . . . . . . . . . . . . . . .      361,381,339      329,427,928
 OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 452,282               Net asset value of shares issued upon
                                                                                                 reinvestment of dividends and
                                                                                                 distributions:
See accompanying notes, which are an integral part of the financial statements.
                                                                                                 Standard Class. . . . . . . . . . . . . . . . .            269,858         2,453,957
                                                                                                 Service Class . . . . . . . . . . . . . . . . . .          182,345           502,655
                                                                                                                                                        834,820,858      809,347,146
                                                                                                Cost of shares repurchased:
                                                                                                 Standard Class. . . . . . . . . . . . . . . . .       (611,693,452)     (713,910,557)
                                                                                                 Service Class . . . . . . . . . . . . . . . . . .     (446,553,468)     (529,703,739)
                                                                                                                                                      (1,058,246,920) (1,243,614,296)
                                                                                                Decrease in net assets derived from
                                                                                                 capital share transactions . . . . . . . . . .        (223,426,062)     (434,267,150)
                                                                                                NET DECREASE IN NET ASSETS . .                         (223,429,045)     (434,277,536)
                                                                                                NET ASSETS:
                                                                                                Beginning of year. . . . . . . . . . . . . . . .      1,106,663,579     1,540,941,115
                                                                                                End of year (including undistributed net
                                                                                                 investment income of $137 and $137,
                                                                                                 respectively) . . . . . . . . . . . . . . . . . . $ 883,234,534 $ 1,106,663,579

                                                                                                See accompanying notes, which are an integral part of the financial statements.




                                                                                LVIP Money Market Fund–7
LVIP Money Market Fund
Financial Highlights
Selected data for each share of the Fund outstanding throughout each period were as follows:

                                                                                                                LVIP Money Market Fund Standard Class
                                                                                                                               Year Ended
                                                                                                    12/31/10       12/31/09      12/31/08    12/31/07          12/31/06

Net asset value, beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10.000               $ 10.000     $ 10.000     $ 10.000          $ 10.000
Income from investment operations:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            0.005          0.034        0.232        0.484             0.457
Total from investment operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . .              0.005          0.034        0.232        0.484             0.457

Less dividends and distributions from:1
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           (0.005)        (0.034)      (0.232)      (0.484)           (0.457)
Total dividends and distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           (0.005)        (0.034)      (0.232)      (0.484)           (0.457)

Net asset value, end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10.000             $ 10.000     $ 10.000     $ 10.000          $ 10.000

Total return2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     0.05%          0.32%        2.34%        4.97%             4.68%
Ratios and supplemental data:
Net assets, end of period (000 omitted) . . . . . . . . . . . . . . . . . . . . . . . . . $518,604                $657,041     $891,527     $620,605          $444,150
Ratio of expenses to average net assets . . . . . . . . . . . . . . . . . . . . . . . . .   0.29%                   0.43%        0.43%        0.44%             0.49%
Ratio of expenses to average net assets prior to expenses waived/reimbursed
 and expense paid indirectly. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.42%                    0.43%        0.43%        0.44%             0.49%
Ratio of net investment income to average net assets . . . . . . . . . . . . . . . .        0.05%                    0.31%        2.23%        4.84%             4.62%
Ratio of net investment income (loss) to average net assets prior to expenses
 waived/reimbursed and expense paid indirectly . . . . . . . . . . . . . . . . . . . (0.08%)                         0.31%        2.23%        4.84%             4.62%

1
    For the years ended December 31, 2010, 2009 and 2008, net realized gain on investments distributions of $2,279, $8,501 and $3,216, respectively, were made by the Fund,
    which calculated to de minimus amounts of $0.000, $0.000 and $0.000 per share, respectively.
2
    Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value.
    Total investment return reflects a waiver by the manager, as applicable. Performance would have been lower had the waiver not been in effect.

                                                       See accompanying notes, which are an integral part of the financial statements.




                                                                                     LVIP Money Market Fund–8
LVIP Money Market Fund
Financial Highlights (continued)
Selected data for each share of the Fund outstanding throughout each period were as follows:

                                                                                                                LVIP Money Market Fund Service Class
                                                                                                                              Year Ended
                                                                                                    12/31/10      12/31/09      12/31/08     12/31/07          12/31/06
Net asset value, beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10.000              $ 10.000     $ 10.000      $ 10.000          $ 10.000
Income from investment operations:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            0.004         0.009        0.207         0.459             0.432
Total from investment operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . .              0.004         0.009        0.207         0.459             0.432

Less dividends and distributions from:1
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           (0.004)       (0.009)      (0.207)       (0.459)           (0.432)
Total dividends and distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           (0.004)       (0.009)      (0.207)       (0.459)           (0.432)

Net asset value, end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10.000            $ 10.000     $ 10.000      $ 10.000          $ 10.000

Total return2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     0.04%         0.08%        2.10%         4.72%             4.43%
Ratios and supplemental data:
Net assets, end of period (000 omitted) . . . . . . . . . . . . . . . . . . . . . . . . . $364,631               $449,623     $649,414      $292,117          $176,812
Ratio of expenses to average net assets . . . . . . . . . . . . . . . . . . . . . . . . .   0.30%                  0.65%        0.68%         0.69%             0.74%
Ratio of expenses to average net assets prior to expenses waived/reimbursed
 and expense paid indirectly. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.67%                   0.68%        0.68%         0.69%             0.74%
Ratio of net investment income to average net assets . . . . . . . . . . . . . . . .        0.04%                   0.09%        1.98%         4.59%             4.37%
Ratio of net investment income (loss) to average net assets prior to expenses
 waived/reimbursed and expense paid indirectly . . . . . . . . . . . . . . . . . . . (0.33%)                        0.06%        1.98%         4.59%             4.37%

1
    For the years ended December 31, 2010, 2009 and 2008, net realized gain on investments distributions of $1,821, $6,114 and $1,871, respectively, were made by the Fund,
    which calculated to de minimus amounts of $0.000, $0.000 and $0.000 per share, respectively.
2
    Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of dividends and distributions at net asset value.
    Total investment return reflects waivers by the manager and distributor, as applicable. Performance would have been lower had the waivers not been in effect.

                                                       See accompanying notes, which are an integral part of the financial statements.




                                                                                     LVIP Money Market Fund–9
LVIP Money Market Fund
Notes to Financial Statements
December 31, 2010

Lincoln Variable Insurance Products Trust (LVIP or the Trust) is organized as a Delaware statutory trust and consists of 56 series (Series). These financial statements and the
related notes pertain to the LVIP Money Market Fund (Fund). The financial statements of the other Series are included in separate reports to their shareholders. The Trust is
an open-end investment company. The Fund is considered diversified under the Investment Company Act of 1940, as amended, and offers Standard Class and Service Class
shares. The Service Class shares are subject to a distribution and service (Rule 12b-1) fee. The Fund’s shares are sold directly or indirectly to The Lincoln National Life
Insurance Company (Lincoln Life) and its affiliates (collectively, the Companies) for allocation to their variable annuity products and variable universal life products.
The Fund’s investment objective is to maximize current income while maintaining stability of net asset value and preservation of capital.

1. Significant Accounting Policies
The following accounting policies are in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and are consistently followed by the Fund.
Security Valuation–Securities are valued at amortized cost, which approximates market value and is permitted under Rule 2a-7 under the 1940 Act. This method involves
valuing a portfolio security initially at its cost and thereafter adjusting for amortization of premium or accretion of discount to maturity. Significant inputs to the amortized cost
method include purchase cost of security, premium or discount at the purchase date and time to maturity.
Federal Income Taxes–No provision for federal income taxes has been made as the Fund intends to continue to qualify for federal income tax purposes as a regulated
investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to shareholders. The Fund evaluates tax
positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained
by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Management
has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years (December 31, 2007–December 31, 2010), and has concluded that no provision
for federal income tax is required in the Fund’s financial statements.
Class Accounting–Investment income and common expenses are allocated to the classes of the Fund on the basis of “settled shares” of each class in relation to the net assets of
the Fund. Realized and unrealized gain (loss) on investments are allocated to the classes of the Fund on the basis of daily net assets of each class. Distribution expenses relating
to a specific class are charged directly to that class.
Use of Estimates–The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates and the differences could be material.
Other–Expenses common to all Series of the Trust are allocated to each Series based on their relative net assets. Expenses exclusive to a specific Series within the Trust are
charged directly to the applicable Series. Security transactions are recorded on the date the securities are purchased or sold (trade date) for financial reporting purposes. Costs
used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Interest income is recorded on the accrual basis.
Discounts and premiums on debt securities are amortized to interest income over the lives of the respective securities. The Fund declares dividends daily from net investment
income and pays such dividends daily and declares and pays distributions from net realized gain on investments, if any, annually. Dividends and distributions, if any, are
recorded on the ex-dividend date.
The Fund may receive earnings credits from its custodian when positive cash balances are maintained, which are used to offset custodian fees. There were no earnings credits
for the year ended December 31, 2010.

2. Management Fees and Other Transactions With Affiliates
Lincoln Investment Advisors Corporation (LIAC) is responsible for overall management of the Fund’s investment portfolio, including monitoring of the Fund’s investment sub-
advisor, and provides certain administrative services to the Fund. LIAC is a registered investment advisor and subsidiary of Lincoln National Corporation. For its services,
LIAC receives a management fee at an annual rate of 0.48% of the first $200 million of the average daily net assets of the Fund; 0.40% of the next $200 million; and 0.30% of the
average daily net assets of the Fund in excess of $400 million.
Delaware Management Company (DMC) (Sub-Advisor), a series of Delaware Management Business Trust, provides day-to-day portfolio management services to the Fund.
For these services, LIAC, not the Fund, pays DMC at an annual rate of 0.08% of the first $500 million of the average daily net assets of the Fund; 0.07% of the next $500 million;
and 0.06% of the average daily net assets of the Fund in excess of $1 billion. Prior to March 9, 2010, LIAC, not the Fund, paid DMC at an annual rate of 0.18% of the Fund’s
average daily net assets.
Pursuant to an Administration Agreement, Lincoln Life, an affiliate of LIAC, provides various administrative services necessary for the operation of the Fund. For these
services, the Trust paid $1,045,236 for the year ended December 31, 2010, which was allocated to the Series based on average daily net assets. In addition, the cost of certain
support services provided by Lincoln Life, such as legal and corporate secretary services are charged to the Trust. For the year ended December 31, 2010, fees for
administrative and support services amounted to $66,323 and $24,021, respectively. Beginning January 1, 2011, the Trust will pay Lincoln Life a monthly fee which will be
0.01% of the average daily net assets of the Fund during the month and will reimburse Lincoln Life for the cost of the legal services.
Pursuant to a distribution and service plan, the Fund is authorized to pay the Companies or others, out of the assets of the Service Class shares, an annual fee (Plan Fee) not to
exceed 0.35% of average daily net assets of the Service Class shares, as compensation, or reimbursement, for services rendered and/or expenses borne. The Trust entered into a
distribution agreement with Lincoln Financial Distributors, Inc. (LFD), an affiliate of LIAC, whereby the Plan Fee is currently limited to 0.25% of the average daily net assets
of the Service Class shares. The Plan Fee may be adjusted by the Trust’s Board of Trustees (Board). Effective January 20, 2010, the Trust implemented a full plan fee waiver of


                                                                        LVIP Money Market Fund–10
LVIP Money Market Fund
Notes to Financial Statements (continued)

2. Management Fees and Other Transactions With Affiliates (continued)
0.25%. Prior to January 20, 2010, the Trust had implemented a 0.10% plan fee waiver to reduce this amount to 0.15%. No distribution expenses are paid by Standard Class
shares.
LFD and LIAC have voluntarily agreed to waive fees and/or reimburse expenses to the extent necessary to prevent a negative yield for each class of shares of the Fund. These
voluntary waivers and reimbursements may be modified or terminated at any time, without notice, and are subject to future recapture by LFD and LIAC. As of December 31,
2010, LFD had waived $1,050,792 and LIAC had waived $1,379,913 for the entire Fund, which are subject to reimbursement.
At December 31, 2010, the Fund had liabilities payable to affiliates as follows:
Management fees payable to LIAC . . . . . . . . . . . . . . . . . . . . . . $161,700
Certain officers and trustees of the Fund are also officers or directors of the Companies and receive no compensation from the Fund. The compensation of unaffiliated trustees
is borne by the Fund.

3. Investments
U.S. GAAP defines fair value as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the
measurement date under current market conditions. A three level hierarchy for fair value measurements has been established based upon the transparency of inputs to the
valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or
liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of
the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or
liability developed based on the best information available under the circumstances. The Fund’s investment in its entirety is assigned a level based upon the observability of the
inputs which are significant to the overall valuation. The three level hierarchy of inputs is summarized below.
Level 1–inputs are quoted prices in active markets for identical investments (e.g., equity securities, open-end investment companies, futures contracts, options contracts)
Level 2–other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar
        assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves,
        volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) (e.g., debt securities, government securities, swap
        contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing)
Level 3–inputs are significant unobservable inputs (including the Fund’s own assumptions used to determine the fair value of investments) (e.g., broker-quoted securities, fair
        valued securities)
The following table summarizes the valuation of the Fund’s investments by fair value hierarchy levels as of December 31, 2010:
                                                                                  Level 2

Agency Obligation . . . . . .    ........      ........       ......     . . $ 25,000,000
Corporate Bonds . . . . . . .    ........      ........       ......     ..    22,674,896
Municipal Bonds. . . . . . .     ........      ........       ......     ..    86,648,928
Sovereign Bond . . . . . . .     ........      ........       ......     ..     2,596,036
Short-Term Investments . .       ........      ........       ......     . . 748,506,278
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $885,426,138

There were no Level 3 securities at the beginning or end of the year.
During the year ended December 31, 2010, there were no transfers between Level 1 investments, Level 2 investments or Level 3 investments that had a material impact to the
Fund.

4. Dividend and Distribution Information
Income and long-term capital gain distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Additionally,
distributions from net short-term gains on sales of investment securities are treated as ordinary income for federal income tax purposes. The tax character of dividends and
distributions paid during the years ended December 31, 2010 and 2009 was as follows:
                                                        Year Ended              Year Ended
                                                          12/31/10                12/31/09

Ordinary income . . . . . . . . . . . . . . . . . . .     $455,265               $2,977,780




                                                                               LVIP Money Market Fund–11
LVIP Money Market Fund
Notes to Financial Statements (continued)

5. Components of Net Assets on a Tax Basis
As of December 31, 2010, the components of net assets on a tax basis were as follows:
Shares of beneficial interest. . . . . . . . . . . . . . . . . . . . . . . . $883,233,280
Undistributed ordinary income. . . . . . . . . . . . . . . . . . . . . .            1,254
Net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $883,234,534


6. Capital Shares
Transactions in capital shares were as follows:
                                                        Year Ended             Year Ended
                                                          12/31/10               12/31/09

Shares sold:
 Standard Class . . . . . . . . . . . . . . . . . . . 47,298,731                47,696,242
 Service Class . . . . . . . . . . . . . . . . . . . . 36,138,134               32,942,799
Shares issued upon reinvestment of
 dividends and distributions:
 Standard Class . . . . . . . . . . . . . . . . .           26,986                 245,396
 Service Class. . . . . . . . . . . . . . . . . . .         18,235                  50,265
                                                       83,482,086               80,934,702
Shares repurchased:
 Standard Class . . . . . . . . . . . . . . . . .      (61,169,345)            (71,391,056)
 Service Class. . . . . . . . . . . . . . . . . . .    (44,655,347)            (52,970,374)
                                                      (105,824,692)           (124,361,430)
Net decrease. . . . . . . . . . . . . . . . . . . .    (22,342,606)            (43,426,728)


7. Credit and Market Risk
The Fund had investments in securities issued by banks, including foreign banks, foreign branches of domestic banks, and other financial institutions representing 58.78% of
net assets at December 31, 2010. The ability of these entities to meet their obligations may be affected by economic conditions related to the industry.

8. Contractual Obligations
The Fund enters into contracts in the normal course of business that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is
unknown. However, the Fund has not had prior claims or losses pursuant to these contracts. Management has reviewed the Fund’s existing contracts and expects the risk of
loss to be remote.

9. Subsequent Events
Management has determined no material events or transactions occurred subsequent to December 31, 2010, that would require recognition or disclosure in the Fund’s
financial statements.




                                                                              LVIP Money Market Fund–12
                                           Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees
LVIP Money Market Fund
We have audited the accompanying statement of net assets of the LVIP Money Market Fund (one of the series constituting Lincoln Variable Insurance Products Trust) (the
Fund) as of December 31, 2010, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period
then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the
Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to
perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement
presentation. Our procedures included confirmation of securities owned as of December 31, 2010 by correspondence with the custodian and brokers or by other appropriate
auditing procedures when replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the LVIP Money Market Fund
of Lincoln Variable Insurance Products Trust at December 31, 2010, the results of its operations for the year then ended, the changes in its net assets for each of the two years in
the period then ended, and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.




Philadelphia, Pennsylvania
February 18, 2011




                                                                       LVIP Money Market Fund–13
LVIP Money Market Fund
Other Fund Information
Tax Information (Unaudited)
For the fiscal year ended December 31, 2010, the Fund designates distributions paid during the year as follows:
                                                      (A)
                                                  Long-Term                          (B)
                                                 Capital Gain                  Ordinary Income                       Total
                                                 Distributions                  Distributions                    Distributions
                                                  (Tax Basis)                    (Tax Basis)                      (Tax Basis)

                                                     0.00%                         100.00%                         100.00%

(A) and (B) are based on a percentage of the Fund’s total distributions.

Approval of Investment Management Agreement
On September 13 and 14, 2010, the Board of Trustees of Lincoln Variable Insurance Products Trust (the “Trust”) met to consider, among other things, the renewal of the
investment management agreement with Lincoln Investment Advisors Corporation (“LIAC”) and the sub-advisory agreement with various sub-advisers (collectively, the
“Advisory Agreements”) for various series of the Trust (each a “Fund”). The trustees who are not “interested persons” of the Trust (as such term is defined in the Investment
Company Act of 1940, as amended) (the “Independent Trustees”) reported that they had requested and reviewed materials provided by LIAC, The Lincoln National Life
Insurance Company (“Lincoln Life”) and the sub-advisers prior to the meeting, and had reviewed a memorandum from their independent legal counsel that advised them of
their fiduciary duties pertaining to approval and renewal of investment management and sub-advisory agreements and the factors that they should consider in evaluating
such agreements. Among other information, LIAC, Lincoln Life and the sub-advisers provided, including information to assist the Independent Trustees in assessing the
nature, extent and quality of services provided, information comparing the investment performance, advisory fees and total expenses of each Fund to other funds, information
about profitability and/or financial condition and compliance and regulatory matters. The Independent Trustees were assisted in their evaluation of performance by the
Investment Committee. After reviewing the information received, the Independent Trustees requested supplemental information that was provided by LIAC. The
Independent Trustees also had received information about the Funds in connection with the regular quarterly Board meetings from LIAC throughout the year.
The Independent Trustees and their independent legal counsel met separately from the “interested” Trustees and officers and employees of Lincoln Life and LIAC to consider
the renewal of the Advisory Agreements. In considering the renewal or approval of the Advisory Agreements, the Independent Trustees did not identify any single factor or
group of factors as all-important or controlling and considered a variety of factors. The Independent Trustees reported that they had considered, among others, the following
factors and reached the following conclusions with respect to their recommendations to the Board of Trustees. Based upon their review, the Independent Trustees concluded
that it was in the best interests of each Fund to renew the Advisory Agreements and accordingly, recommended to the Board of Trustees the renewal of the Advisory
Agreements. Upon receiving the report of the Independent Trustees, the Board of Trustees adopted the considerations and conclusions of the Independent Trustees.

Investment Management Agreement with LIAC
In considering the renewal of the investment management agreement with LIAC, the Board considered the nature, extent and quality of services provided to the Fund by
LIAC, including LIAC personnel, resources, compliance and LIAC’s criteria for review of the sub-adviser’s performance. The Board reviewed the services provided by LIAC in
serving as investment adviser and overseeing the sub-adviser, the personnel constituting the investment oversight and compliance staff and regulatory and compliance
matters and considered that LIAC had delegated day-to-day portfolio management responsibility to the sub-adviser. The Board noted the ongoing oversight activities
performed by LIAC, including review of returns on a relative and absolute basis, the sub-adviser’s use of soft dollars, evaluation of execution quality and brokerage allocation
and on-site compliance reviews. The Board also considered that certain Lincoln Life personnel would continue to provide services to the Fund on behalf of LIAC and that
Lincoln Life provided administrative services to the Fund under a separate administration agreement. Based on this information, the Board concluded that the services
provided by LIAC were satisfactory.
The Board reviewed performance information provided by Lipper Inc., an independent provider of investment company data, as of June 30, 2010, for the Fund compared to the
performance of a peer group of funds in the same Lipper category underlying variable insurance products (“performance group”) and a benchmark index. The Board considered
that LIAC does not directly control investment performance but had delegated those duties to the sub-adviser. The Board concluded that LIAC had appropriately reviewed and
monitored the sub-adviser’s investment performance.
The Board reviewed the Fund’s investment management fee and expense ratio and reviewed information comparing the investment management fee, sub-advisory fee and
expense ratio to those of a Lipper expense peer group for the Fund. For the Fund, the expense peer group consists of the Fund and other funds in the same Lipper category
underlying variable insurance products, as classified by Lipper (“expense group”).
The Board noted that the investment management fees for the Fund were above the average, although within an acceptable range of the average investment management fee
of the Lipper expense group. On the basis of the information provided, the Board concluded that the Fund’s investment management fee was reasonable in light of the nature,
quality and extent of services provided by LIAC.
The Board considered the extent to which economies of scale would be realized as the Fund grows and whether fee levels reflect a reasonable sharing of such economies of scale
for the benefit of Fund investors. The Board considered that the Fund had breakpoints in the investment management fee schedule and LIAC’s temporary advisory fee waiver
and concluded that economies of scale were appropriately shared with investors.



                                                                      LVIP Money Market Fund–14
LVIP Money Market Fund
Other Fund Information (continued)

Investment Management Agreement with LIAC (continued)
The Board also reviewed the profitability analysis to LIAC and its affiliates with respect to the Fund and concluded that the estimated profitability of LIAC in connection with
the management of the Fund was not unreasonable.
The Board reviewed materials provided by management as to any additional benefits LIAC may receive due to its association with the Fund, and noted that affiliates of LIAC
provide a variety of services to the Fund for which the affiliates are separately paid. The Board also noted that Lincoln Life may be eligible to claim on its tax returns dividends
received deductions in connection with dividends received from Lincoln Funds by Lincoln Life holding Fund shares on behalf of contract holders.

Overall Conclusions
Based on all of the information considered and the conclusions reached, the Board determined that the terms of the investment management agreement for the Fund are and
continue to be, fair and reasonable, and that the continuation of the agreement is in the best interests of the Fund. The Board unanimously approved the renewal of the
investment management agreement.




                                                                       LVIP Money Market Fund–15
Officer/Trustee Information for Lincoln VIP Trust
                                                                                                                                    Number of
                                                                                                                                     Funds in
                                                                                                                                      Trust
                            Position(s)         Term of Office                                                                       Complex
 Name, Address and          Held with           and Length of                           Principal Occupation(s)                    Overseen by     Other Directorships
   Year of Birth            the Trust           Time Served2                           During the Past Five Years                    Trustee        Held by Trustee
Daniel R. Hayes1         Chairman,          Chairman since            Vice President, The Lincoln National Life Insurance              56        N/A
Radnor Financial         President          September 2009;           Company. Formerly: Senior Vice President, Fidelity
Center, 150 N. Radnor    and Trustee        President and             Investments
Chester Road,                               Trustee since
Radnor, PA 19087                            December 2008
YOB: 1957
Michael D. Coughlin      Trustee            Trustee since             Management Consultant, Coughlin Associates                       56        Merrimack County
1300 S. Clinton Street                      April 2007                                                                                           Savings Bank; Trustee
Fort Wayne, IN 46802                                                                                                                             of Merrimack Bankcorp,
YOB: 1942                                                                                                                                        MHC.
Nancy L. Frisby          Trustee            Trustee since             Retired; Formerly: Senior Vice President and Chief               56        N/A
1300 S. Clinton Street                      April 1992                Financial Officer, DeSoto Memorial Hospital
Fort Wayne, IN 46802
YOB: 1941
Elizabeth S. Hager       Trustee            Trustee since             Executive Director of United Way of Merrimack County;            56        N/A
1300 S. Clinton Street                      April 2007                Representative, New Hampshire House of Representatives
Fort Wayne, IN 46802
YOB: 1944
Gary D. Lemon, PH.D      Trustee            Trustee since February    Joseph Percival Allen III University Professor, James W.         56        N/A
1300 S. Clinton Street                      2006; Formerly            Emerson Director of the Robert C. McDermond Center for
Fort Wayne, IN 46802                        Advisory Trustee since    Management and Entrepreneurship, Professor of Economics
YOB: 1948                                   November 2004             and Management, DePauw University
Thomas D. Rath           Trustee            Trustee since             Managing Partner, Rath, Young and Pignatelli, P.C.               56        Associated Grocers of
1300 S. Clinton Street                      April 2007                                                                                           New England
Fort Wayne, IN 46802
YOB: 1945
Kenneth G. Stella        Trustee            Trustee since             Retired; Formerly: President Emeritus, Indiana Health            56        Advisory Board of
1300 S. Clinton Street                      February 1998             Association, Formerly: President, Indiana Hospital &                       Harris Bank
Fort Wayne, IN 46802                                                  Health Association
YOB: 1943
David H. Windley         Trustee            Trustee since             Retired; Formerly: Director of Blue & Co., LLC.                  56        N/A
1300 S. Clinton Street                      August 2004
Fort Wayne, IN 46802
YOB: 1943
Cynthia A. Rose1         Secretary          Secretary since           Secretary, Lincoln VIP Trust                                    N/A        N/A
1300 S. Clinton Street                      February 1995
Fort Wayne, IN 46802
YOB: 1954
William P. Flory, Jr.1   Second Vice        Second Vice President     Second Vice President and Director of Separate Account          N/A        N/A
1300 S. Clinton Street   President and      since August 2007;        Operations and Mutual Fund Administration, The Lincoln
Fort Wayne, IN 46802     Chief Accounting   Chief Accounting          National Life Insurance Company; Assistant Vice President,
YOB: 1961                Officer            Officer since             Lincoln Life and Annuity Company of New York; Formerly:
                                            May 2006                  Second Vice President and Director of Corporate
                                                                      Procurement, The Lincoln National Life Insurance
                                                                      Company
Rise’ C.M. Taylor1       Vice President     Vice President since      Vice President and Treasurer, The Lincoln National Life         N/A        N/A
1300 S. Clinton Street   and Treasurer      August 2003 and           Insurance Company; Vice President and Treasurer, Lincoln
Fort Wayne, IN 46802                        Treasurer since           Life & Annuity Company of New York
YOB: 1967                                   May 2006
Kevin J. Adamson1        Second             Second Vice President     Second Vice President, Director of Funds Management, The        N/A        N/A
1300 S. Clinton Street   Vice               since May 2006            Lincoln National Life Insurance Company; Formerly:
Fort Wayne, IN 46802     President                                    Director of Financial Operations, Swiss Re/Lincoln Re
YOB: 1966
John A. Weston1          Chief              Chief Compliance          Vice President for Fund and Advisor Compliance, The             N/A        N/A
One Granite Place,       Compliance         Officer since             Lincoln National Life Insurance Company; Formerly:
Concord, NH 03301        Officer            May 2007                  Treasurer, Jefferson Pilot Variable Fund, Inc.
YOB: 1959


                                                                     LVIP Money Market Fund–16
Officer/Trustee Information for Lincoln VIP Trust (continued)

                                                                                                                                            Number of
                                                                                                                                             Funds in
                                                                                                                                              Trust
                                Position(s)         Term of Office                                                                           Complex
    Name, Address and           Held with           and Length of                            Principal Occupation(s)                       Overseen by      Other Directorships
      Year of Birth             the Trust           Time Served2                            During the Past Five Years                       Trustee         Held by Trustee
David Weiss1                Assistant Vice     Assistant Vice             Assistant Vice President, Funds Management Research,                 N/A       N/A
One Granite Place,          President          President since            The Lincoln National Life Insurance Company; Formerly:
Concord, NH 03301                              August 2007                Director, Funds Management Research; Mutual
YOB: 1976                                                                 Fund/Securities Analyst; Senior Mutual Fund Analyst,
                                                                          Jefferson Pilot Corp.
Diann L. Eggleston     Assistant Vice          Assistant Vice             Vice President, Lincoln National Corporation                         N/A       N/A
1300 S. Clinton Street President               President since
Fort Wayne, IN 46802                           March 2008
YOB: 1962

Additional information on the officers and trustees can be found in the Statement of Additional Information (“SAI”) to the Trust’s prospectus. To obtain a free copy of the SAI,
write: Lincoln National Life Insurance Company, P.O. Box 2340, Fort Wayne, Indiana 46801, or call 1-800-4LINCOLN (454-6265). The SAI is also available on the SEC’s web
site (http://www.sec.gov).
1
    All of the officers are “interested persons” of the Trust, as that term is defined by Section 2(a)(19) of the 1940 Act, by reason of their being officers of the Trust.
2
    The officers and trustees hold their position with the Trust until retirement or resignation. The Bylaws of the Trust do not specify a term of office.




The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The
Trust’s Form N-Q is available without charge on the Commission’s website at http://www.sec.gov. The Trust’s Form N-Q may be reviewed and copied at the Commission’s
Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. You may also request a
copy by calling 1-800-4LINCOLN (454-6265).
For a free copy of the Fund’s proxy voting procedures and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month
period ended June 30, please call 1-800-4LINCOLN (454-6265) or visit the Securities and Exchange Commission’s website at http://www.sec.gov.


                                                                         LVIP Money Market Fund–17

								
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