<PAGE>
June 30, 1997
Dear PGA Professional:
Congratulations on opening your PGA Retirement Annuity account. We are pleased
to present this semi-annual report on behalf of Providian Life and Health
Insurance Company. This report provides a detailed look at the composition and
performance of the investment portfolios in your annuity since inception, May 9,
1997.
We hope you find this information useful. Providian Life and Health is
committed to helping PGA Professionals invest for a successful retirement and we
look forward to serving you for many years to come.
Sincerely,
<TABLE>
<S><C>
/s/ Sarah J. Strange /s/ Jesse Holshouser /s/ Thomas J. Hartlage
Sarah Strange Jesse Holshouser Thomas J. Hartlage
Vice President Chief Financial Officer Trustee and Chief Executive Officer
Providian Securities Corp. PGA of America Providian Series Trust
</TABLE>
PROVIDIAN LIFE AND HEALTH LNSURANCE COMPANY PROVIDES THE VARIABLE ANNUITY.
SECURITIES ARE OFFERED THROUGH PROVIDIAN SECURITIES CORPORATION, 400 WEST MARKET
STREET, LOUISVILLE, KY 40202. BOTH ARE SUBSIDIARIES OF PROVIDIAN CORPORATION.
THE PGA OF AMERICA IS NOT A REGISTERED BROKER/DEALER.
<PAGE>
PROVIDIAN SERIES TRUST
CAPITAL PRESERVATION PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ -----
INVESTMENT COMPANIES 100.0%
Providian Series Trust
Money Market Fund . . . . . . . . . . . . . . 1,754 $ 1,754
Providian Series Trust
Fixed Income Fund . . . . . . . . . . . . . . 173 1,751
-----------
TOTAL INVESTMENT COMPANIES
- (Cost $3,508) 3,505
-----------
TOTAL INVESTMENTS - (Cost $3,508) - 100.0% 3,505
OTHER ASSETS LESS LIABILITIES - 0.0% 1
-----------
NET ASSETS - 100.0% $ 3,506
-----------
-----------
The percentage shown for each investment category is the total value of
that category as a percentage of the net assets of the Portfolio.
PROVIDIAN SERIES TRUST
GROWTH AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ -----
INVESTMENT COMPANIES 100.0%
Providian Series Trust
Money Market Fund . . . . . . . . . . . . . . 2,634 $ 2,634
Providian Series Trust
High Quality Stock Fund . . . . . . . . . . . 1,023 10,669
Providian Series Trust
Fixed Income Fund . . . . . . . . . . . . . . 1,041 10,534
Providian Series Trust
International Active Fund . . . . . . . . . . 257 2,677
-----------
TOTAL INVESTMENT COMPANIES
- (Cost $26,274) 26,514
-----------
TOTAL INVESTMENTS - (Cost $26,274) - 100.0% 26,514
OTHER ASSETS LESS LIABILITIES - 0.0% 0
-----------
NET ASSETS - 100.0% . . . . . . . . . . . . . . . $ 26,514
-----------
-----------
The percentage shown for each investment category is the total value of
that category as a percentage of the net assets of the Portfolio.
2
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
<PAGE>
PROVIDIAN SERIES TRUST
CAPITAL GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ -----
INVESTMENT COMPANIES 100.0%
Providian Series Trust
High Quality Stock Fund . . . . . . . . . . . 763 $ 7,957
Providian Series Trust
Fixed Income Fund . . . . . . . . . . . . . . 323 3,268
Providian Series Trust
International Active Fund . . . . . . . . . . 190 1,980
-----------
TOTAL INVESTMENT COMPANIES
- (Cost $13,005) 13,205
-----------
TOTAL INVESTMENTS - (Cost $13,005) - 100.0% 13,205
OTHER ASSETS LESS LIABILITIES - 0.0% 6
-----------
NET ASSETS - 100.0% $ 13,211
-----------
-----------
The percentage shown for each investment category is the total value of
that category as a percentage of the net assets of the Portfolio.
PROVIDIAN SERIES TRUST
MAXIMUM APPRECIATION PORTFOLIO
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ -----
INVESTMENT COMPANIES 100.0%
Providian Series Trust
High Quality Stock Fund . . . . . . . . . . . 1,235 $ 12,882
Providian Series Trust
International Active Fund . . . . . . . . . . 309 3,220
-----------
TOTAL INVESTMENT COMPANIES
-(Cost $15,815) 16,102
-----------
TOTAL INVESTMENTS - (Cost $15,815) - 100.0% 16,102
OTHER ASSETS LESS LIABILITIES - 0.0% 0
-----------
NET ASSETS - 100.0% $ 16,102
-----------
-----------
The percentage shown for each investment category is the total value of
that category as a percentage of the net assets of the Portfolio.
3
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
<PAGE>
PROVIDIAN SERIES TRUST
HIGH QUALITY STOCK FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ -----
COMMON STOCK AND OTHER
EQUITY INTERESTS- 90.9%
AEROSPACE - 1.4%
Allied Signal Incorporated . . . . . . . . . 500 $ 42,000
Boeing Company. . . . . . . . . . . . . . . . 1,300 68,981
OEA Incorporated. . . . . . . . . . . . . . . 1,000 39,500
-----------
150,481
-----------
APPAREL & TEXTILES - 1.7%
G & K Services Incorporated . . . . . . . . . 1,200 44,700
Guilford Mills Incorporated.. . . . . . . . . 2,200 45,788
Nautica Enterprises Incorporated (a). . . . . 1,800 47,587
Unifi Incorporated. . . . . . . . . . . . . . 1,100 41,112
-----------
179,187
-----------
AUTO PARTS - 2.0%
Clarcor Incorporated (a). . . . . . . . . . . 1,700 42,075
Eaton Corporation.. . . . . . . . . . . . . . 1,100 96,044
Modine Manufacturing Company. . . . . . . . . 1,100 32,725
Superior Industries International
Incorporated (a). . . . . . . . . . . . . . . 1,300 34,450
-----------
205,294
-----------
AUTOMOBILES - 0.3%
Federal Signal Corporation (a). . . . . . . . 1,300 32,663
-----------
BANKS - 6.6%
Banc One Corporation. . . . . . . . . . . . . 2,200 106,562
BancorpSouth Incorporated . . . . . . . . . . 1,400 40,600
CCB Financial Corporation . . . . . . . . . . 600 43,875
Citizens Banking Corporation. . . . . . . . . 1,300 44,525
CoreStates Financial Corporation. . . . . . . 1,800 96,750
Deposit Guaranty Corporation. . . . . . . . . 1,300 40,950
First Commercial Corporation. . . . . . . . . 1,000 41,125
First Virginia Banks Incorporated . . . . . . 600 36,187
Firstbank of Illinois Company . . . . . . . . 1,100 43,038
Old Kent Financial Corporation (a). . . . . . 630 34,020
Union Planters Corporation. . . . . . . . . . 700 36,312
Wachovia Corporation. . . . . . . . . . . . . 1,500 87,468
Wilmington Trust Corporation. . . . . . . . . 800 36,600
-----------
688,012
-----------
BROADCASTING - 0.4%
TCA Cable TV Incorporated . . . . . . . . . . 1,200 45,150
-----------
BUILDING CONSTRUCTION - 0.8%
Harsco Corporation (a). . . . . . . . . . . . 900 36,450
Lawson Products Incorporated (a). . . . . . . 1,700 45,900
-----------
82,350
-----------
BUSINESS SERVICES - 4.8%
ABM Industries Incorporated (a) . . . . . . . 2,100 40,556
Automatic Data Processing Incorporated. . . . 2,100 98,700
Banta Corporation (a) . . . . . . . . . . . . 1,500 40,687
Fair Issac & Company Incorporated . . . . . . 900 40,106
Interpublic Group of Companies
Incorporated. . . . . . . . . . . . . . . . . 1,600 98,100
Kronos Incorporated . . . . . . . . . . . . . 1,600 44,000
Logicon Incorporated. . . . . . . . . . . . . 800 42,400
Olsten Corporation. . . . . . . . . . . . . . 1,700 33,043
Rollins Incorporated. . . . . . . . . . . . . 1,700 34,212
Sun Guard Data Systems Incorporated (a) . . . 700 32,550
-----------
504,354
-----------
CHEMICALS - 1.8%
E.I du Pont de Nemours & Company. . . . . . . 1,100 69,162
Fuller H.B. Company . . . . . . . . . . . . . 800 44,000
MacDermid Incorporated. . . . . . . . . . . . 900 41,288
Nalco Chemical Company (a). . . . . . . . . . 900 34,763
-----------
189,213
-----------
COMMUNICATIONS SERVICES - 0.5%
True North Communications
Incorporated. . . . . . . . . . . . . . . . . 2,100 51,975
-----------
COMPUTERS & BUSINESS EQUIPMENT - 2.6%
American Management Systems
Incorporated (a). . . . . . . . . . . . . . . 1,300 34,775
Cabletron Systems Incorporated (a). . . . . . 3,300 93,431
General Binding Corporation . . . . . . . . . 1,400 39,900
Hewlett-Packard Company . . . . . . . . . . . 1,900 106,400
-----------
274,506
-----------
CONGLOMERATES - 1.0%
Textron Incorporated. . . . . . . . . . . . . 1,600 106,200
-----------
CONSTRUCTION & MINING EQUIPMENT - 0.3%
Foster Wheeler Corporation. . . . . . . . . . 900 36,450
-----------
CONSTRUCTION MATERIALS - 0.3%
Vulcan Materials Company. . . . . . . . . . . 400 31,400
-----------
CONTAINERS & GLASS - 0.7%
Bemis Company Incorporated. . . . . . . . . . 800 34,600
Mark IV Industries Incorporated . . . . . . . 1,500 36,000
-----------
70,600
-----------
COSMETICS & TOILETRIES - 0.4%
Block Drug Company Incorporated.. . . . . . . 900 39,375
-----------
DRUGS & HEALTH CARE - 7.8%
Abbott Laboratories (a) . . . . . . . . . . . 1,500 100,125
Bard C. R. Incorporated . . . . . . . . . . . 1,000 36,313
Biomet Incorporated . . . . . . . . . . . . . 1,900 35,387
Diagnostic Products Corporation . . . . . . . 1,300 41,031
Invacare Corporation. . . . . . . . . . . . . 1,600 37,400
Johnson & Johnson . . . . . . . . . . . . . . 1,500 96,563
Life Technologies Incorporated. . . . . . . . 1,500 41,625
Manor Care Incorporated . . . . . . . . . . . 1,100 35,888
Mylan Laboratories Incorporated. . . . . . . 2,100 30,975
Patterson Dental Company (a). . . . . . . . . 1,200 41,175
Pfizer Incorporated (a) . . . . . . . . . . . 300 35,850
Rotech Medical Corporation (a). . . . . . . . 2,700 54,168
Schering Plough Corporation (a) . . . . . . . 1,600 76,600
Thermedics Incorporated (a) . . . . . . . . . 2,500 39,218
Warner-Lambert Company (a). . . . . . . . . . 900 111,825
-----------
814,143
-----------
ELECTRONICS - 3.6%
Avnet Incorporated. . . . . . . . . . . . . . 500 28,750
Dionex Corporation. . . . . . . . . . . . . . 800 41,000
Harris Corporation. . . . . . . . . . . . . . 400 33,600
Intel Corporation (a) . . . . . . . . . . . . 700 99,269
Linear Technology Corporation . . . . . . . . 600 31,050
Teleflex Incorporated . . . . . . . . . . . . 1,200 37,500
4
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
<PAGE>
PROVIDIAN SERIES TRUST
HIGH QUALITY STOCK FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ -----
COMMON STOCK AND OTHER
EQUITY INTERESTS (CONTINUED)
ELECTRONICS - (CONTINUED)
Thomas & Betts Corporation. . . . . . . . . . 600 $ 31,538
Varian Associates Incorporated. . . . . . . . 600 32,550
Wyle Electronics. . . . . . . . . . . . . . . 1,100 43,450
-----------
378,707
-----------
ELECTRICAL EQUIPMENT - 3.5%
Baldor Electric Company . . . . . . . . . . . 1,400 41,387
Cohu Incorporated . . . . . . . . . . . . . . 1,500 46,875
Dentsply International Incorporated . . . . . 600 29,400
General Electric Company (a). . . . . . . . . 1,500 98,063
Hubbell Incorporated. . . . . . . . . . . . . 800 35,200
MTS Systems Corporation . . . . . . . . . . . 1,800 54,900
National Service Industries . . . . . . . . . 800 38,950
Park Electrochemical Corporation. . . . . . . 900 23,681
-----------
368,456
-----------
ELECTRIC UTILITIES - 2.4%
Central & South West Corporation. . . . . . . 4,900 104,125
Duke Energy Corporation . . . . . . . . . . . 2,200 105,463
UtiliCorp United Incorporated . . . . . . . . 1,300 37,863
-----------
247,451
-----------
FINANCIAL SERVICES - 1.5%
Legg Mason Incorporated . . . . . . . . . . . 800 43,050
Merrill Lynch & Company . . . . . . . . . . . 600 35,775
ReliaStar Financial Corporation (a) . . . . . 500 36,563
United States Trust Corporation (a) . . . . . 900 42,413
-----------
157,801
-----------
FOOD & BEVERAGES - 2.4%
CPC International Incorporated. . . . . . . . 1,200 110,775
Dean Foods Company. . . . . . . . . . . . . . 900 36,338
Hormel Foods Corporation (a). . . . . . . . . 1,300 34,938
PepsiCo Incorporated. . . . . . . . . . . . . 1,900 71,369
-----------
253,420
-----------
GAS EXPLORATION - 0.4%
Energen Corporation . . . . . . . . . . . . . 1,200 40,425
-----------
GAS & PIPELINE UTILITIES - 3.9%
American Water Works Incorporated . . . . . . 1,600 34,200
Coastal Corporation . . . . . . . . . . . . . 2,000 106,375
Eastern Enterprises . . . . . . . . . . . . . 1,200 41,625
Equitable Resources Incorporated. . . . . . . 1,200 34,050
National Fuel Gas Company . . . . . . . . . . 800 33,550
Northwest Natural Gas Company (a) . . . . . . 1,600 41,900
Piedmont Natural Gas Company
Incorporated. . . . . . . . . . . . . . . . . 1,600 41,100
Questar Corporation . . . . . . . . . . . . . 800 32,300
Southwestern Energy Company (a) . . . . . . . 3,200 41,600
-----------
406,700
-----------
HOME BUILDERS - 0.3%
Lennar Corporation (a). . . . . . . . . . . . 1,100 35,131
-----------
HOUSEHOLD APPLIANCES - 1.8%
Interface Incorporated. . . . . . . . . . . . 1,700 37,613
La- Z- Boy Incorporated . . . . . . . . . . . 1,200 43,200
Newell Company. . . . . . . . . . . . . . . . 2,600 103,025
-----------
183,838
-----------
HOUSEHOLD PRODUCTS - 2.2%
Clorox Company. . . . . . . . . . . . . . . . 700 92,400
Colgate-Palmolive Company . . . . . . . . . . 1,500 97,875
Proctor & Gamble Company (a). . . . . . . . . 300 42,375
-----------
232,650
-----------
HOTELS & RESTAURANTS - 0.3%
Cracker Barrel Old Country Store
Incorporated. . . . . . . . . . . . . . . . . 1,200 31,800
-----------
INVESTMENT ADVISORY FIRMS - 1.8%
A.G. Edwards Incorporated . . . . . . . . . . 900 38,475
Eaton Vance Corporation . . . . . . . . . . . 1,500 41,719
T. Price Rowe & Associates Incorporated . . . 700 36,138
Quick & Reilly Group Incorporated (a) . . . . 1,800 41,850
United Asset Management Corporation . . . . . 1,200 33,975
-----------
192,157
-----------
INDUSTRIAL MACHINERY - 2.4%
Camco International Incorporated. . . . . . . 910 49,823
Crane Company . . . . . . . . . . . . . . . . 800 33,450
Graco Incorporated. . . . . . . . . . . . . . 1,400 42,175
Tennant Company . . . . . . . . . . . . . . . 1,400 46,550
Tyco International Limited. . . . . . . . . . 500 34,781
X-Rite Incorporated (a) . . . . . . . . . . . 2,500 47,500
-----------
254,279
-----------
INSURANCE - 8.0%
American Bankers Insurance
Group Incorporated. . . . . . . . . . . . . . 800 50,600
American Heritage Life Investment
Corporation (a) . . . . . . . . . . . . . . . 1,500 49,500
American International Group
Incorporated (a). . . . . . . . . . . . . . . 700 104,563
Chubb Corporation . . . . . . . . . . . . . . 1,500 100,313
Equifax Incorporated. . . . . . . . . . . . . 3,100 115,281
Equitable of Iowa Companies . . . . . . . . . 600 33,600
Fremont General Corporation . . . . . . . . . 900 36,225
Frontier Insurance Group Incorporated . . . . 700 45,325
General Re Corporation. . . . . . . . . . . . 500 91,000
Liberty Corporation . . . . . . . . . . . . . 1,000 40,750
NAC Re Corporation. . . . . . . . . . . . . . 900 43,538
Orion Capital Corporation . . . . . . . . . . 600 44,250
Protective Life Corporation . . . . . . . . . 700 35,175
W.R. Berkley Corporation. . . . . . . . . . . 700 41,213
-----------
831,333
-----------
INTERNATIONAL OIL - 2.0%
Exxon Corporation . . . . . . . . . . . . . . 1,600 98,400
Mobil Corporation . . . . . . . . . . . . . . 1,400 97,825
-----------
196,225
-----------
NEWSPAPERS -1.3%
Lee Enterprises Incorporated. . . . . . . . . 1,300 34,288
Tribune Company . . . . . . . . . . . . . . . 2,100 100,931
-----------
135,219
-----------
NON-FERROUS METALS - 0.4%
Commercial Metals Company (a) . . . . . . . . 1,300 41,925
-----------
OFFICE FURNISHINGS & SUPPLIES - 0.4%
American Business Products
Incorporated. . . . . . . . . . . . . . . . . 1,800 40,950
-----------
5
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
<PAGE>
PROVIDIAN SERIES TRUST
HIGH QUALITY STOCK FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ -----
COMMON STOCK AND OTHER
EQUITY INTERESTS (CONTINUED)
PAPER - 2.0%
Lydall Incorporated (a) . . . . . . . . . . . 1,800 $ 38,025
Pentair Incorporated. . . . . . . . . . . . . 1,000 32,875
Sonoco Products Company . . . . . . . . . . . 3,400 103,488
Wausau Paper Mills Company. . . . . . . . . . 2,100 39,638
-----------
214,026
-----------
PETROLEUM SERVICES - 1.4%
Dresser Industries Incorporated . . . . . . . 2,900 108,025
MAPCO Incorporated. . . . . . . . . . . . . . 1,100 34,650
-----------
142,675
-----------
PUBLISHING - 0.9%
Houghton Mifflin Company (a). . . . . . . . . 700 46,725
Pulitzer Publishing Company (a) . . . . . . . 800 42,400
-----------
89,125
-----------
RAILROADS & EQUIPMENT - 1.3%
GATX Corporation. . . . . . . . . . . . . . . 600 34,650
Norfolk Southern Corporation. . . . . . . . . 1,000 100,750
-----------
135,400
-----------
RETAIL GROCERY - 0.8%
Casey's General Stores Incorporated (a) . . . 2,200 47,368
Quality Foods Centers Incorporated (a). . . . 1,000 38,000
-----------
85,368
-----------
RETAIL TRADE - 3.1%
Arbor Drugs Incorporated. . . . . . . . . . . 2,000 40,250
Dollar General Corporation. . . . . . . . . . 1,000 37,500
Home Depot Incorporated . . . . . . . . . . . 1,500 103,406
Pep Boys-Manny Moe & Jack (a) . . . . . . . . 1,100 37,468
Wal-Mart Stores Incorporated. . . . . . . . . 3,200 108,200
-----------
326,824
-----------
SAVINGS AND LOAN - 0.4%
First Financial Corporation . . . . . . . . . 1,500 44,062
-----------
SOFTWARE - 0.6%
Autodesk Incorporated . . . . . . . . . . . . 900 34,481
Computer Associates International
Incorporated. . . . . . . . . . . . . . . . . 600 33,412
-----------
67,893
-----------
STEEL - 1.6%
Carpenter Technology Corporation. . . . . . . 900 41,175
Nucor Corporation . . . . . . . . . . . . . . 1,700 96,050
Worthington Industries Incorporated . . . . . 1,800 32,963
-----------
170,188
-----------
TELEPHONE - 3.7%
Aliant Communications Incorporated. . . . . . 2,500 48,750
Alltel Corporation. . . . . . . . . . . . . . 3,100 103,656
Century Telephone Enterprises
Incorporated. . . . . . . . . . . . . . . . . 1,100 37,056
Frontier Corporation. . . . . . . . . . . . . 5,100 101,681
Southern New England Telecom
Corporation . . . . . . . . . . . . . . . . . 2,400 93,300
-----------
384,443
-----------
TIRES & RUBBER - 1.2%
Carlise Companies Incorporated. . . . . . . . 1,200 41,850
Lancaster Colony Corporation. . . . . . . . . 800 38,700
Myers Industries Incorporated . . . . . . . . 2,300 38,812
-----------
119,362
-----------
TOBACCO - 1.0%
Philip Morris Companies Incorporated. . . . . 2,300 102,062
-----------
TRUCKING & FREIGHT FORWARDING - 0.9%
Air Express International Corporation . . . . 1,200 47,700
Rollins Truck Leasing Corporation . . . . . . 2,900 43,138
-----------
90,838
TOTAL COMMON STOCK
(Cost $9,109,706) 9,502,086
-----------
PRINCIPAL
AMOUNT
------
SHORT TERM INVESTMENTS - 9.1%
INVESTMENT COMPANY - 4.3%
SSgA U.S. Government
Money Market Fund,
5.130% * . . . . . . . . . . . . . . . . . $ 450,000 450,000
-----------
REPURCHASE AGREEMENT - 4.8%
Agreement with State Street Bank and Trust
Company, dated 6/30/1997, bearing
4.25%, to be repurchased at $503,203 on
7/01/1997 (secured by $510,000 par value
U.S. Treasury Notes, 6.125%, due
5/15/1998, with a value of $515,100 ) 503,143 503,143
-----------
TOTAL SHORT TERM INVESTMENTS
(Cost $953,143) 953,143
-----------
TOTAL INVESTMENTS - (Cost $10,062,849) - 100.0% 10,455,229
OTHER ASSETS LESS LIABILITIES - 0.0% 2,160
-----------
NET ASSETS - 100.0% $10,457,389
-----------
-----------
The percentage shown for each investment category is the total value of
that category as a percentage of the net assets of the Fund.
(a) Non-income producing securities.
* The rate shown reflects the yield in effect on June 30, 1997.
6
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
<PAGE>
PROVIDIAN SERIES TRUST
FIXED INCOME FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
- -------------------- ------ -----
U.S. GOVERNMENT AND AGENCY
SECURITIES - 73.3%
GOVERNMENT AGENCY - 28.9%
Federal Home Loan Mortgage Corporation
5.950%, 01/19/06 . . . . . . . . . . . . . $ 750,000 $ 709,920
Federal National Mortgage Association
6.375%, 01/16/02 . . . . . . . . . . . . . 500,000 497,655
5.875%, 02/02/06 . . . . . . . . . . . . . 275,000 259,102
-----------
1,466,677
-----------
U.S. GOVERNMENT - 44.4%
U.S. Treasury Note
6.250%, 05/31/99 . . . . . . . . . . . . . 1,000,000 1,002,810
6.500%, 08/15/05 . . . . . . . . . . . . . 1,250,000 1,246,488
-----------
2,249,298
-----------
TOTAL U.S.GOVERNMENT AND
AGENCY SECURITIES
- (Cost $3,704,912) 3,715,975
-----------
SHORT TERM INVESTMENTS - 25.3%
INVESTMENT COMPANY - 4.4%
SSgA U.S. Government
Money Market Fund,
5.130% * . . . . . . . . . . . . . . . . . 225,000 225,000
-----------
REPURCHASE AGREEMENT - 1.8%
Agreement with State Street Bank and Trust
Company, dated 6/30/1997, bearing
4.250%, to be repurchased at $92,652 on
7/01/1997 (secured by $95,000
par value U.S. Treasury Notes, 6.125%, due
5/15/1998, with a value of $95,950 ) 92,642 92,642
-----------
GOVERNMENT AGENCY - 19.1%
Federal Farm Credit Bank Discount Note
6.390%, 09/19/97 . . . . . . . . . . . . . 500,000 494,011
Federal Home Loan Bank Discount Note
6.080%, 5/29/98. . . . . . . . . . . . . . 500,000 474,915
-----------
968,926
-----------
TOTAL SHORT TERM INVESTMENTS
- (Cost $1,286,568) . . . . . . . . . . . . . 1,286,568
-----------
TOTAL INVESTMENTS - (Cost $4,991,480) - 98.6% 5,002,543
OTHER ASSETS LESS LIABILITIES - 1.4% 72,216
-----------
NET ASSETS - 100.0% $ 5,074,759
-----------
-----------
The percentage shown for each investment category is the total value of
that category as a percentage of the net assets of the Fund.
* The rate shown reflects the yield in effect on June 30, 1997.
PROVIDIAN SERIES TRUST
INTERNATIONAL ACTIVE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNADUITED)
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ -----
COMMON STOCK AND OTHER
EQUITY INTERESTS -97.1%
AUSTRALIA - 1.0%
Amcor Limited . . . . . . . . . . . . . . . . 1,485 $ 9,863
Broken Hill Proprietary Company Limited . . . 1,213 17,840
Comalco Limited . . . . . . . . . . . . . . . 1,946 10,501
Leighton Holdings Limited . . . . . . . . . . 1,117 5,438
News Corporation Limited. . . . . . . . . . . 2,340 11,214
Pasminco Limited. . . . . . . . . . . . . . . 8,806 17,878
QNI Limited . . . . . . . . . . . . . . . . . 2,569 4,634
TABCORP Holdings Limited. . . . . . . . . . . 1,044 5,673
Westpac Banking Corporation Limited . . . . . 3,463 20,831
-----------
103,872
-----------
BELGIUM - 3.0%
Webs Index Fund Incorporated. . . . . . . . . 18,075 316,313
-----------
BRAZIL - 1.5%
Aracruz Celulose SA ADR . . . . . . . . . . . 1,863 37,959
Electricas Centrais Electricas Brasileiras
Sponsored ADR . . . . . . . . . . . . . . . . 934 28,370
Companhia Siderurgica Nacional
Sponsored ADR . . . . . . . . . . . . . . . . 1,068 34,844
Companhia Vale do Rio Doce ADR. . . . . . . . 911 20,839
TELEBRAS Sponsored ADR. . . . . . . . . . . . 241 36,575
-----------
158,587
-----------
CHILE - 1.5%
Banco Santander Chile ADR . . . . . . . . . . 1,020 15,061
Chilgener SA Sponsored ADR. . . . . . . . . . 517 14,476
Compania Cervecerias Unidas SA
Sponsored ADR . . . . . . . . . . . . . . . . 339 7,437
Compania de Telecom De Chile
Sponsored ADR . . . . . . . . . . . . . . . . 1,015 33,495
Empresa Nacional Electricidad
Sponsored ADR . . . . . . . . . . . . . . . . 1,169 26,376
Enersis Sponsored ADR . . . . . . . . . . . . 945 33,607
Madeco SA Sponsored ADR . . . . . . . . . . . 273 6,689
Maderas Y Sinteticos Sponsored ADR. . . . . . 432 7,182
Quimica Y Minera Chile SA
Sponsored ADR . . . . . . . . . . . . . . . . 190 12,564
-----------
156,887
-----------
FINLAND - 2.5%
Hartwall Ab Oy. . . . . . . . . . . . . . . . 379 21,947
Metsa Serla Oy. . . . . . . . . . . . . . . . 1,781 14,517
Neste Oy. . . . . . . . . . . . . . . . . . . 606 16,115
Nokia Ab Oy . . . . . . . . . . . . . . . . . 1,030 76,998
Okobank Osuuspankk. . . . . . . . . . . . . . 1,252 16,888
Rautaruukki Oy. . . . . . . . . . . . . . . . 1,573 16,520
Stockmann Ab Oy . . . . . . . . . . . . . . . 233 12,392
UPM Kymmene Corporation Oy. . . . . . . . . . 836 19,332
Valmet Corporation. . . . . . . . . . . . . . 1,023 17,705
Werner Soderstrom Osakeyhtio. . . . . . . . . 1,002 34,756
YIT-Yhtymaoy Oy . . . . . . . . . . . . . . . 1,399 18,467
-----------
265,637
-----------
FRANCE - 9.4%
Alcatel Alsthom . . . . . . . . . . . . . . . 632 79,165
AXA UAP . . . . . . . . . . . . . . . . . . . 685 42,610
Banque Nationale de Paris . . . . . . . . . . 1,460 60,182
BIC SA. . . . . . . . . . . . . . . . . . . . 399 65,258
Carrefour SA. . . . . . . . . . . . . . . . . 126 91,527
Compagnie Generale des Eaux . . . . . . . . . 521 66,768
7
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
<PAGE>
PROVIDIAN SERIES TRUST
INTERNATIONAL ACTIVE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ -----
COMMON STOCK AND OTHER
EQUITY INTERESTS (CONTINUED)
FRANCE - (CONTINUED)
Elf Aquitaine SA. . . . . . . . . . . . . . . 936 $ 100,996
Groupe Danone . . . . . . . . . . . . . . . . 411 67,920
Hermes International. . . . . . . . . . . . . 729 68,238
Larfarge SA . . . . . . . . . . . . . . . . . 914 56,855
Rhone-Poulenc SA. . . . . . . . . . . . . . . 2,228 91,008
Schneider SA (a). . . . . . . . . . . . . . . 504 26,831
Societe Generale. . . . . . . . . . . . . . . 577 64,419
Synthelabo. . . . . . . . . . . . . . . . . . 458 59,630
Valeo SA. . . . . . . . . . . . . . . . . . . 685 42,552
-----------
983,959
-----------
GERMANY - 11.8%
Allianz AG (a). . . . . . . . . . . . . . . . 395 84,408
Bayer AG. . . . . . . . . . . . . . . . . . . 3,243 125,020
Commerzbank AG. . . . . . . . . . . . . . . . 1,465 41,856
Daimler-Benz AG . . . . . . . . . . . . . . . 1,107 90,117
Degussa AG. . . . . . . . . . . . . . . . . . 1,936 102,400
Deutsche Telekom. . . . . . . . . . . . . . . 3,788 93,116
Dresdner Bank AG. . . . . . . . . . . . . . . 1,541 54,015
MAN AG. . . . . . . . . . . . . . . . . . . . 381 96,607
Mannesmann AG . . . . . . . . . . . . . . . . 233 104,125
Siemens AG. . . . . . . . . . . . . . . . . . 1,785 106,957
VEBA AG . . . . . . . . . . . . . . . . . . . 3,040 171,780
Volkswagen AG . . . . . . . . . . . . . . . . 205 155,471
-----------
1,225,872
-----------
HONG KONG - 1.6%
Amoy Properties Limited . . . . . . . . . . . 12,000 13,243
Cheung Kong Limited . . . . . . . . . . . . . 2,000 19,749
China Light & Power Company Limited . . . . . 2,500 14,166
Citic Pacific Limited . . . . . . . . . . . . 3,000 18,745
HSBC Holdings PLC . . . . . . . . . . . . . . 400 12,030
Hutchison Whampoa Limited . . . . . . . . . . 3,000 25,945
New World Development
Company Limited . . . . . . . . . . . . . . . 3,000 17,890
Sun Hung Kai Properties Limited . . . . . . . 2,000 24,076
Wharf Holdings Limited. . . . . . . . . . . . 4,000 17,348
-----------
163,192
-----------
INDIA - 1.5%
Hindalco Industries Limited
Sponsored GDR . . . . . . . . . . . . . . . . 1,150 40,652
Indian Hotel Company Limited
Sponsored GDR . . . . . . . . . . . . . . . . 1,325 31,468
State Bank of India GDR (a) . . . . . . . . . 1,520 39,444
Videsh Sanchar Nigam Limited GDR (a). . . . . 2,240 44,408
-----------
155,972
-----------
ISRAEL - 1.6%
Bank Hapoalim Limited (a) . . . . . . . . . . 7,900 16,440
Bezeq Israeli Telecommunication
Corporation Limited (a) . . . . . . . . . . . 4,500 11,367
Blue Square-Israel Limited (a). . . . . . . . 1,100 10,708
Clal Israel Limited . . . . . . . . . . . . . 40,000 11,406
ECI Telecommunication Limited . . . . . . . . 1,000 28,750
Elco Holdings Limited (a) . . . . . . . . . . 1,200 10,689
Elite Industries Limited (a). . . . . . . . . 300 7,254
Formula Systems Limited (a) . . . . . . . . . 410 6,694
Industrial Buildings Corporation (a). . . . . 7,800 13,758
Israel Chemicals Limited (a). . . . . . . . . 12,800 15,063
Teva Pharmaceutical Industries Limited. . . . 480 30,966
-----------
163,095
-----------
ITALY - 5.6%
Alleanza Assicurazioni (a). . . . . . . . . . 5,521 $ 43,449
Banca Commerciale Italiana. . . . . . . . . . 25,167 52,205
Benetton Group SPA. . . . . . . . . . . . . . 2,080 33,277
Danieli & Company . . . . . . . . . . . . . . 5,001 33,094
Eni SPA . . . . . . . . . . . . . . . . . . . 22,903 129,900
Fiat SPA (a). . . . . . . . . . . . . . . . . 18,456 66,559
Instituto Nazionale delle Assicurazioni
Istituto (a). . . . . . . . . . . . . . . . . 37,646 57,456
Istituto Mobiliare Italiano SPA . . . . . . . 5,018 45,241
Telcom Italia Mobile. . . . . . . . . . . . . 19,944 59,820
Telecom Italia. . . . . . . . . . . . . . . . 18,000 58,338
-----------
579,339
-----------
JAPAN - 23.1%
Aoyama Trading Company Limited (a). . . . . . 4,500 144,630
Autobacs Seven Company Limited. . . . . . . . 1,400 111,021
Dainippon Screen Manufacturing
Company Limited . . . . . . . . . . . . . . . 12,000 113,190
Daiwa Securities Company Limited. . . . . . . 15,000 118,427
Fanuc . . . . . . . . . . . . . . . . . . . . 4,500 172,925
Fujisawa Pharmaceutical Company . . . . . . . 6,000 61,834
Marubeni Corporation. . . . . . . . . . . . . 28,000 127,164
Matsushita Electric Works . . . . . . . . . . 14,000 158,951
Mitsui O.S.K. Lines Limited(a). . . . . . . . 36,000 74,200
Murata Manufacturing Company Limited. . . . . 3,000 119,475
NEC Corporation . . . . . . . . . . . . . . . 12,000 167,687
Nippon Oil Company Limited. . . . . . . . . . 24,000 131,423
Nippon Telephone & Telegraph Corporation. . . 16 153,714
NKK Corporation . . . . . . . . . . . . . . . 52,000 111,720
Sumitomo Bank Limited . . . . . . . . . . . . 10,000 164,192
Sumitomo Metal Mining Company . . . . . . . . 13,000 91,965
Sumitomo Trust & Banking. . . . . . . . . . . 10,000 107,423
Tokyu Corporation . . . . . . . . . . . . . . 19,000 117,982
Tokyo Steel Manufacturing . . . . . . . . . . 4,200 46,951
Tokyo Tatemono Company Limited. . . . . . . . 21,000 110,960
-----------
2,405,834
-----------
MALAYSIA - 2.6%
DCB Holdings Berhad . . . . . . . . . . . . . 5,000 15,847
Edaran Otomobil Berhad. . . . . . . . . . . . 2,000 17,036
IOI Properties Berhad . . . . . . . . . . . . 4,000 7,606
Land & General Berhad . . . . . . . . . . . . 12,000 13,787
Malayan Banking Berhad. . . . . . . . . . . . 3,000 31,497
Metacorp Berhad . . . . . . . . . . . . . . . 11,000 22,880
Perusahaan Otomobil Nasional Berhad . . . . . 4,000 18,700
Resorts World Berhad. . . . . . . . . . . . . 6,000 18,066
Road Builder M Holdings Berhad. . . . . . . . 5,000 23,576
Sungei Way Holdings Berhad. . . . . . . . . . 11,000 20,744
Telekom Malaysia Berhad . . . . . . . . . . . 9,000 42,079
UMW Holdings Berhad . . . . . . . . . . . . . 4,000 18,858
United Engineers (Malaysia) Limited (a) . . . 3,000 21,633
-----------
272,309
-----------
NETHERLANDS - 4.4%
ABN AMRO Holdings NV. . . . . . . . . . . . . 1,532 28,580
Akzo Nobel. . . . . . . . . . . . . . . . . . 203 27,833
DSM NV. . . . . . . . . . . . . . . . . . . . 186 18,515
Elsevier NV . . . . . . . . . . . . . . . . . 2,091 34,958
ING Groep NV. . . . . . . . . . . . . . . . . 569 26,247
Koninklijke Ahold NV. . . . . . . . . . . . . 283 23,887
Philips Electronics NV. . . . . . . . . . . . 424 30,386
Royal Dutch Petroleum Company . . . . . . . . 2,548 132,604
Royal PTT Nederlands NV . . . . . . . . . . . 755 29,631
8
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
<PAGE>
PROVIDIAN SERIES TRUST
INTERNATIONAL ACTIVE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ -----
COMMON STOCK AND OTHER
EQUITY INTERESTS (CONTINUED)
NETHERLANDS - (CONTINUED)
Unilever NV, PLC. . . . . . . . . . . . . . . 234 $ 49,285
Vendex International NV . . . . . . . . . . . 593 32,492
VNU-Verenigde Nederlandse
Uitgeversbedrijven Verenigd Bezit . . . . . . 1,110 24,554
-----------
458,972
-----------
PHILIPPINES - 0.6%
Ayala Corporation (a) . . . . . . . . . . . . 23,900 17,216
Metropolitan Bank & Trust Company . . . . . . 500 10,615
Petron Corporation (a). . . . . . . . . . . . 14,000 3,556
Philippine Long Distance Telephone
Company Sponsored, ADR. . . . . . . . . . . . 189 12,143
San Miguel Corporation. . . . . . . . . . . . 3,800 10,012
SM Prime Holdings Incorporated. . . . . . . . 32,000 9,463
-----------
63,005
-----------
SINGAPORE - 2.7%
City Developments Limited . . . . . . . . . . 2,300 22,522
Development Bank of Singapore Limited . . . . 3,500 44,065
Fraser & Neave Limited. . . . . . . . . . . . 2,400 17,122
Keppel Corporation Limited (a). . . . . . . . 7,500 33,311
Overseas-Chinese Banking
Corporation Limited . . . . . . . . . . . . . 6,120 63,353
Singapore Airlines Limited. . . . . . . . . . 5,500 49,242
United Overseas Bank Limited. . . . . . . . . 5,000 51,409
-----------
281,024
-----------
SPAIN - 1.0%
Banco Bilbao Vizcaya SA . . . . . . . . . . . 253 20,560
Banco Santander SA. . . . . . . . . . . . . . 531 16,367
Gas Y Electridad SA . . . . . . . . . . . . . 180 9,669
Iberdrola SA. . . . . . . . . . . . . . . . . 921 11,630
Repsol SA . . . . . . . . . . . . . . . . . . 233 9,855
Tabacalera SA . . . . . . . . . . . . . . . . 198 10,633
Telefonica de Espana. . . . . . . . . . . . . 829 23,976
-----------
102,690
-----------
SWITZERLAND - 9.2%
ABB AG (a). . . . . . . . . . . . . . . . . . 30 45,426
Credit Suisse Group . . . . . . . . . . . . . 443 56,911
Clariant AG . . . . . . . . . . . . . . . . . 91 58,920
Holderbankk Financiere Glarus AG. . . . . . . 51 48,187
Kuoni Reisen Holding AG . . . . . . . . . . . 14 47,961
Nestle SA . . . . . . . . . . . . . . . . . . 97 128,004
Novartis AG . . . . . . . . . . . . . . . . . 126 201,496
Roche Holding AG. . . . . . . . . . . . . . . 22 199,049
Tag Heuer International SA (a). . . . . . . . 349 52,369
Union Bank of Switzerland . . . . . . . . . . 107 122,433
-----------
960,756
-----------
TURKEY - 1.6%
Adana Cimento Sanayii . . . . . . . . . . . . 151,689 14,047
Akal Tekstil Sanayii A.S. (Non-Trading) . . . 80,306 9,465
Akbank T.A.S. . . . . . . . . . . . . . . . . 102,390 8,792
Arcelik A.S.. . . . . . . . . . . . . . . . . 127,987 17,240
Bagfas Bandirma Gubre Fabrikalari A.S.. . . . 34,708 8,298
Ege Biracilik Ve Malt Sanayii A.S.. . . . . . 26,595 7,106
Eregli Demir Ve Celik Fabrikalari T.A.S.. . . 92,556 15,428
Izmir Demir Celik Sanayii A.S. (a). . . . . . 713,164 8,405
Kordsa Kord Bezi Sanayi ve Ticaret A.S. . . . 40,550 6,827
Kordsa Kord Bezi Sanayi ve
Ticaret A.S. rights (a) . . . . . . . . . . . 60,825 1,570
Migros Turk T.A.S.. . . . . . . . . . . . . . 16,765 $ 11,856
Northern Elektrik Telekomunikasyon A.S. . . . 36,405 10,052
Sabanci Holdings. . . . . . . . . . . . . . . 250,000 9,092
Tansas A.S. . . . . . . . . . . . . . . . . . 37,922 7,790
Tat Konserve Sanayii A.S. . . . . . . . . . . 128,447 9,516
Turkiye Garanti Bankasi A.S. (a). . . . . . . 324,650 12,244
Yapi Ve Kredi Bankasi A.S.. . . . . . . . . . 444,000 10,167
-----------
167,895
-----------
UNITED KINGDOM - 10.9%
Abbey National PLC. . . . . . . . . . . . . . 7,575 103,328
Boots Company PLC . . . . . . . . . . . . . . 3,986 46,647
British Telcommunications PLC . . . . . . . . 8,774 65,096
Burton Group PLC. . . . . . . . . . . . . . . 19,585 38,364
Commercial Union PLC. . . . . . . . . . . . . 3,467 36,420
EMI Group PLC . . . . . . . . . . . . . . . . 2,831 50,743
IMI PLC . . . . . . . . . . . . . . . . . . . 8,777 50,079
Lasmo PLC . . . . . . . . . . . . . . . . . . 10,500 45,326
Lloyds TSB Group PLC. . . . . . . . . . . . . 10,546 108,068
Prudential Corporation PLC. . . . . . . . . . 5,185 50,155
Scottish & Newcastle PLC. . . . . . . . . . . 6,371 68,517
Scottish Power PLC. . . . . . . . . . . . . . 10,484 68,190
Shell Transport & Trading Company PLC . . . . 9,777 66,604
Smithkline Beecham PLC. . . . . . . . . . . . 5,744 105,632
Unilever PLC. . . . . . . . . . . . . . . . . 1,813 51,919
Wolseley PLC. . . . . . . . . . . . . . . . . 7,359 57,352
Zeneca Group PLC (a). . . . . . . . . . . . . 3,596 118,801
-----------
1,131,241
-----------
TOTAL COMMON STOCK AND OTHER
EQUITY INTERESTS (Cost $9,759,343). . . . . . 10,116,451
-----------
SHORT TERM INVESTMENTS - 1.2%
PRINCIPAL
AMOUNT
------
TIME DEPOSIT - 1.2%
State Street Bank and Trust
Company Time Deposit,
4.75%, 7/01/97 * . . . . . . . . . . . . . $ 133,156 133,156
-----------
TOTAL SHORT TERM INVESTMENTS
- (Cost $133,156) 133,156
-----------
TOTAL INVESTMENTS - (Cost $9,892,499) - 98.3% 10,249,607
OTHER ASSETS LESS LIABILITIES - 1.7% 173,318
NET ASSETS - 100.0% $10,422,925
-----------
-----------
The percentage shown for each investment category is the total value of
that category as a percentage of the net assets of the Fund.
(a) Non-income producing securities.
ADR- American Depositary Receipts.
GDR- Global Depositary Receipts.
* The rate shown reflects the yield in effect on June 30, 1997.
9
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
<PAGE>
PROVIDIAN SERIES TRUST
INTERNATIONAL ACTIVE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
TEN LARGEST INDUSTRY HOLDINGS AT JUNE 30, 1997
Banking 12.53%
Telecommunications 7.50%
Health & Personal Care 7.07%
Energy Sources 6.23%
Merchandising 5.74%
Electrical & Electronics 5.62%
Chemicals 4.47%
Electronic Components, Instruments 4.36%
Automobiles 3.51%
Food & Household Products 3.24%
PROVIDIAN SERIES TRUST
MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
PRINCIPAL
SECURITY DESCRIPTION AMOUNT VALUE
- -------------------- ------ -----
U.S. GOVERNMENT AGENCY
DISCOUNT NOTES - 86.3%
GOVERNMENT AGENCY - 86.3%
Federal Farm Credit Bank Discount Note
5.980%, 07/01/97 . . . . . . . . . . . . . $ 200,000 $ 200,000
Federal Home Loan Bank Discount Note
6.000%, 07/01/97 . . . . . . . . . . . . . 200,000 200,000
Federal Home Loan Mortgage Corporation
Discount Note
6.000%, 07/01/97 . . . . . . . . . . . . . 1,000,000 1,000,000
Student Loan Marketing Association
Discount Note
6.000%, 07/01/97 . . . . . . . . . . . . . 350,000 350,000
-----------
TOTAL U.S. GOVERNMENT AGENCY
DISCOUNT NOTES- (Cost $1,750,000) . . . . . . 1,750,000
-----------
COMMERCIAL PAPER - 4.9%
Copelco Capital Funding Corporation
5.809%, 06/20/98. . . . . . . . . . . . . . . 100,000 100,000
-----------
TOTAL COMMERCIAL PAPER
- (Cost $100,000) 100,000
-----------
VARIABLE RATE NOTES - 8.4%
International Processing Corporation
5.790%, 01/02/08 +. . . . . . . . . . . . . . 10,000 10,000
Scranton Times, LP., Series 1997
5.710%, 05/31/07 +. . . . . . . . . . . . . . 100,000 100,000
Westcourt
5.790%, 06/01/16 +. . . . . . . . . . . . . . 60,000 60,000
-----------
TOTAL VARIABLE RATE NOTES
- (Cost $170,000) 170,000
TOTAL INVESTMENTS AT AMORTIZED
COST AND VALUE -99.6 % . . . . . . . . . . . . . . 2,020,000
OTHER ASSETS LESS LIABILITIES - 0.4% 7,702
-----------
NET ASSETS - 100.0% $ 2,027,702
-----------
-----------
The percentage shown for each investment category is the total value of
that category as a percentage of the net assets of the Fund.
+ Variable rate demand notes are payable upon not more than one, seven, or
thirty day's notice. The interest rate shown reflects the rate currently
in effect.
10
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
<PAGE>
PROVIDIAN SERIES TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
CAPITAL GROWTH & CAPITAL
PRESERVATION INCOME GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO
-----------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in securities, at value (a) . . . . . . . . . . . . . . . $3,505 $26,514 $13,205
Cash, including foreign currency, at value. . . . . . . . . . . . . . -- -- --
Receivable for securities sold. . . . . . . . . . . . . . . . . . . . -- -- --
Interest receivable . . . . . . . . . . . . . . . . . . . . . . . . . -- -- --
Dividends receivable. . . . . . . . . . . . . . . . . . . . . . . . . -- -- --
Receivable for fund shares sold . . . . . . . . . . . . . . . . . . . -- -- --
Receivable due from Investment Adviser (Note 3) . . . . . . . . . . . 3,329 3,329 3,329
Foreign income tax reclaim receivable . . . . . . . . . . . . . . . . -- -- --
-----------------------------------------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . 6,834 29,843 16,534
LIABILITIES
Payable for securities purchased. . . . . . . . . . . . . . . . . . . -- -- --
Payable for forward currency contracts (Note 6) . . . . . . . . . . . -- -- --
Payable for fund shares redeemed. . . . . . . . . . . . . . . . . . . -- -- --
Payable for trustee's fees. . . . . . . . . . . . . . . . . . . . . . 323 323 323
Payable due to investment adviser . . . . . . . . . . . . . . . . . . -- -- --
Accounts payable and accrued expenses . . . . . . . . . . . . . . . . 3,005 3,006 3,000
-----------------------------------------
TOTAL LIABILITIES. . . . . . . . . . . . . . . . . . . . . . . . 3,328 3,329 3,323
-----------------------------------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,506 $26,514 $ 13,211
-----------------------------------------
-----------------------------------------
NET ASSETS CONSIST OF:
Paid-in capital (Note 5). . . . . . . . . . . . . . . . . . . . . . . $3,505 $26,267 $ 13,011
Undistributed net investment income (Note 2). . . . . . . . . . . . . 4 7 --
Accumulated net realized gain on investments and
foreign currency transactions. . . . . . . . . . . . . . . . . . -- -- --
Net unrealized appreciation (depreciation) of:
Investments. . . . . . . . . . . . . . . . . . . . . . . . . . . (3) 240 200
Foreign currency translations. . . . . . . . . . . . . . . . . . -- -- --
-----------------------------------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,506 $26,514 $ 13,211
-----------------------------------------
-----------------------------------------
NET ASSET VALUE PER SHARE
Offering and redemption price per share
(based on shares of beneficial interest outstanding). . . . . . . . $10.10 $ 10.27 $ 10.35
Total shares outstanding at end of period . . . . . . . . . . . . . . 347 2,582 1,277
(a) Investments in securities and repurchase agreements, at cost. . . $3,508 $26,274 $13,005
</TABLE>
11
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
<PAGE>
<TABLE>
<CAPTION>
MAXIMUM HIGH FIXED MONEY
APPRECIATION QUALITY INCOME INTERNATIONAL MARKET
PORTFOLIO STOCK FUND FUND ACTIVE FUND FUND
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments in securities, at value (a). . . . . . . . . . . $16,102 $10,455,229 $5,002,543 $10,249,607 $2,020,000
Cash, including foreign currency, at value . . . . . . . . . -- 1,890 945 -- 9,936
Receivable for securities sold . . . . . . . . . . . . . . . -- -- -- 199,002 --
Interest receivable. . . . . . . . . . . . . . . . . . . . . -- 124 76,898 18 860
Dividends receivable . . . . . . . . . . . . . . . . . . . . -- 9,672 -- 24,023 --
Receivable for fund shares sold. . . . . . . . . . . . . . . -- 350 62 88 --
Receivable due from Investment Adviser (Note 3). . . . . . . 3,329 792 1,494 1,812 1,894
Foreign income tax reclaim receivable. . . . . . . . . . . . -- -- -- 7,634 --
--------------------------------------------------------------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . 19,431 10,468,057 5,081,942 10,482,184 2,032,690
LIABILITIES
Payable for securities purchased . . . . . . . . . . . . . . -- -- -- 41,251 --
Payable for forward currency contracts (Note 6). . . . . . . -- -- -- 3,460 --
Payable for fund shares redeemed . . . . . . . . . . . . . . -- -- -- -- 251
Payable for trustee's fees . . . . . . . . . . . . . . . . . 323 323 323 323 323
Payable due to investment adviser. . . . . . . . . . . . . . -- 5,519 2,705 7,612 661
Accounts payable and accrued expenses. . . . . . . . . . . . 3,006 4,826 4,155 6,613 3,753
-----------------------------------------------------------------
TOTAL LIABILITIES. . . . . . . . . . . . . . . . . . . . . 3,329 10,668 7,183 59,259 4,988
-----------------------------------------------------------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . $16,102 $10,457,389 $5,074,759 $10,422,925 $2,027,702
-----------------------------------------------------------------
-----------------------------------------------------------------
NET ASSETS CONSIST OF:
Paid-in capital (Note 5) . . . . . . . . . . . . . . . . . . $15,804 $10,030,959 $5,015,518 $10,007,740 $2,027,702
Undistributed net investment income (Note 2) . . . . . . . . -- 34,050 37,866 48,770 --
Accumulated net realized gain on investments and
foreign currency transactions. . . . . . . . . . . . . . . 11 -- 10,312 20,787 --
Net unrealized appreciation (depreciation) of:
Investments. . . . . . . . . . . . . . . . . . . . . . . . 287 392,380 11,063 357,108 --
Foreign currency translations. . . . . . . . . . . . . . . -- -- -- (11,480) --
-----------------------------------------------------------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . $16,102 $10,457,389 $5,074,759 $10,422,925 $2,027,702
-----------------------------------------------------------------
-----------------------------------------------------------------
NET ASSET VALUE PER SHARE
Offering and redemption price per share
(based on shares of beneficial interest outstanding) . . . $ 10.42 $ 10.43 $ 10.12 $ 10.42 $ 1.00
Total shares outstanding at end of period. . . . . . . . . . 1,545 1,003,022 501,538 1,000,757 2,027,702
(a) Investments in securities and repurchase agreements,
at cost. . . . . . . . . . . . . . . . . . . . . . . . $15,815 $10,062,849 $4,991,480 $ 9,892,499 $2,020,000
</TABLE>
12
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
<PAGE>
PROVIDIAN SERIES TRUST
STATEMENTS OF OPERATIONS
FOR THE PERIOD MAY 9, 1997* THROUGH JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
CAPITAL GROWTH & CAPITAL
PRESERVATION INCOME GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO
-------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ -- $ -- $ --
Dividend income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 7 --
Less foreign taxes withheld. . . . . . . . . . . . . . . . . . . . . . -- -- --
-------------------------------------------
TOTAL INVESTMENT INCOME. . . . . . . . . . . . . . . . . . . . . . . . . 4 7 --
EXPENSES
Investment adviser fee (Note 3). . . . . . . . . . . . . . . . . . . . . -- -- --
Accounting fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 895 895 895
Audit fee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 224 224
Custodian fees and expenses. . . . . . . . . . . . . . . . . . . . . . . 239 239 239
Trustee's fees (Note 3). . . . . . . . . . . . . . . . . . . . . . . . . 323 323 323
Printing expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . 745 745 745
Legal fee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373 373 373
Insurance expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . 467 467 467
Miscellaneous expense. . . . . . . . . . . . . . . . . . . . . . . . . . 63 63 63
-------------------------------------------
Total operating expenses before reimbursement. . . . . . . . . . . . . 3,329 3,329 3,329
Expenses reimbursed by the Investment Adviser (Note 3) . . . . . . . . . (3,329) (3,329) (3,329)
-------------------------------------------
NET EXPENSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0
-------------------------------------------
NET INVESTMENT INCOME. . . . . . . . . . . . . . . . . . . . . . . . . 4 7 --
NET REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS AND FOREIGN CURRENCY
Net realized gain on:
Investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- -- --
Foreign currency transactions. . . . . . . . . . . . . . . . . . . . . -- -- --
-------------------------------------------
-- -- --
Change in unrealized appreciation (depreciation)
during the period on:
Investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) 240 200
Translations of assets and liabilities in foreign currencies . . . . . -- -- --
-------------------------------------------
(3) 240 200
-------------------------------------------
NET REALIZED AND UNREALIZED GAIN . . . . . . . . . . . . . . . . . . . . (3) 240 200
-------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . $ 1 $ 247 $ 200
-------------------------------------------
-------------------------------------------
</TABLE>
* Commencement of investment operations.
13
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
<PAGE>
<TABLE>
<CAPTION>
MAXIMUM HIGH FIXED MONEY
APPRECIATION QUALITY INCOME INTERNATIONAL MARKET
PORTFOLIO STOCK FUND FUND ACTIVE FUND FUND
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income . . . . . . . . . . . . . . . . . . . . . . . . $ -- $ 31,421 $ 44,448 $ 13,397 $ 16,220
Dividend income . . . . . . . . . . . . . . . . . . . . . . . . -- 15,972 -- 58,353 --
Less foreign taxes withheld . . . . . . . . . . . . . . . . . -- -- -- (5,962) --
-----------------------------------------------------------------
TOTAL INVESTMENT INCOME . . . . . . . . . . . . . . . . . . . . -- 47,393 44,448 65,788 16,220
EXPENSES
Investment adviser fee (Note 3) . . . . . . . . . . . . . . . . -- 9,637 4,753 13,318 1,164
Accounting fee. . . . . . . . . . . . . . . . . . . . . . . . . 895 895 895 2,683 895
Audit fee . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 1,118 1,118 1,118 1,118
Custodian fees and expenses . . . . . . . . . . . . . . . . . . 239 660 332 660 136
Trustee's fees (Note 3) . . . . . . . . . . . . . . . . . . . . 323 323 323 323 323
Printing expense. . . . . . . . . . . . . . . . . . . . . . . . 745 932 932 932 932
Legal fee . . . . . . . . . . . . . . . . . . . . . . . . . . . 373 688 346 688 141
Insurance expense . . . . . . . . . . . . . . . . . . . . . . . 467 467 467 467 467
Miscellaneous expense . . . . . . . . . . . . . . . . . . . . . 63 65 65 65 65
-----------------------------------------------------------------
Total operating expenses before reimbursement . . . . . . . . 3,329 14,785 9,231 20,254 5,241
Expenses reimbursed by the Investment Adviser (Note 3). . . . . (3,329) (1,442) (2,649) (3,236) (3,347)
-----------------------------------------------------------------
NET EXPENSES. . . . . . . . . . . . . . . . . . . . . . . . . 0 13,343 6,582 17,018 1,894
-----------------------------------------------------------------
NET INVESTMENT INCOME . . . . . . . . . . . . . . . . . . . . -- 34,050 37,866 48,770 14,326
NET REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS AND FOREIGN CURRENCY
Net realized gain on:
Investments . . . . . . . . . . . . . . . . . . . . . . . . . 11 -- 10,312 1,669 --
Foreign currency transactions . . . . . . . . . . . . . . . . -- -- -- 19,118 --
-----------------------------------------------------------------
11 -- 10,312 20,787 --
Change in unrealized appreciation (depreciation)
during the period on:
Investments . . . . . . . . . . . . . . . . . . . . . . . . . 287 392,380 11,063 357,108 --
Translations of assets and liabilities in foreign currencies. -- -- -- (11,480) --
-----------------------------------------------------------------
287 392,380 11,063 345,628 --
-----------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN. . . . . . . . . . . . . . . . 298 392,380 21,375 366,415 --
-----------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS. . . . . . . . . . . . . . . . . . . . $ 298 $ 426,430 $ 59,241 $ 415,185 $ 14,326
-----------------------------------------------------------------
-----------------------------------------------------------------
</TABLE>
14
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
<PAGE>
PROVIDIAN SERIES TRUST
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD MAY 9, 1997* THROUGH JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
CAPITAL GROWTH & CAPITAL
PRESERVATION INCOME GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO
-------------------------------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1997
Net investment income. . . . . . . . . . . . . . . . . . . $ 4 $ 7 $ --
Net realized gain. . . . . . . . . . . . . . . . . . . . . -- -- --
Change in unrealized appreciation (depreciation)
during the period . . . . . . . . . . . . . . . . . . . . (3) 240 200
-------------------------------------
Net increase in net assets resulting from operations . . 1 247 200
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income . . . . . . . . . . . . . . . . . . -- -- --
FUND SHARE TRANSACTIONS (Note 5) . . . . . . . . . . . . . 3,505 26,267 13,011
-------------------------------------
TOTAL INCREASE IN NET ASSETS . . . . . . . . . . . . . . . 3,506 26,514 13,211
NET ASSETS:
Beginning of period. . . . . . . . . . . . . . . . . . . . -- -- --
-------------------------------------
END OF PERIOD (a). . . . . . . . . . . . . . . . . . . . . $ 3,506 $ 26,514 $ 13,211
-------------------------------------
-------------------------------------
(a) Including undistributed net investment income . . . . . $ 4 $ 7 $ --
-------------------------------------
-------------------------------------
</TABLE>
* Commencement of investment operations.
15
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
<PAGE>
<TABLE>
<CAPTION>
MAXIMUM HIGH FIXED MONEY
APPRECIATION QUALITY INCOME INTERNATIONAL MARKET
PORTFOLIO STOCK FUND FUND ACTIVE FUND FUND
---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1997
Net investment income. . . . . . . . . . . . . . . . . . $ -- $ 34,050 $ 37,866 $ 48,770 $ 14,326
Net realized gain. . . . . . . . . . . . . . . . . . . . 11 -- 10,312 20,787 --
Change in unrealized appreciation (depreciation)
during the period . . . . . . . . . . . . . . . . . . . 287 392,380 11,063 345,628 --
---------------------------------------------------------------------
Net increase in net assets resulting from operations. 298 426,430 59,241 415,185 14,326
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income . . . . . . . . . . . . . . . . . -- -- -- -- (14,326)
FUND SHARE TRANSACTIONS (Note 5) . . . . . . . . . . . . 15,804 10,030,959 5,015,518 10,007,740 2,022,702
---------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS . . . . . . . . . . . . . . 16,102 10,457,389 5,074,759 10,422,925 2,022,702
NET ASSETS:
Beginning of period. . . . . . . . . . . . . . . . . . . -- -- -- -- 5,000
---------------------------------------------------------------------
END OF PERIOD (a). . . . . . . . . . . . . . . . . . . . $ 16,102 $ 10,457,389 $ 5,074,759 $ 10,422,925 $ 2,027,702
---------------------------------------------------------------------
---------------------------------------------------------------------
(a) Including undistributed net investment income . . . . . $ -- $ 34,050 $ 37,866 $ 48,770 $ --
---------------------------------------------------------------------
---------------------------------------------------------------------
</TABLE>
16
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
<PAGE>
PROVIDIAN SERIES TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period May 9, 1997
(commencement of investment operations) through June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Capital Growth & Capital
Preservation Income Growth
Portfolio Portfolio Portfolio
<S> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . . . . . . . . . $10.00 $10.00 $10.00
----------- ----------- -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (1). . . . . . . . . . . . . . . . . . . . . . . . . . . 0.12 0.01 --
Net realized and unrealized gain on investments. . . . . . . . . . . . . . . . (0.02) 0.26 0.35
----------- ----------- -----------
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . 0.10 0.27 0.35
----------- ----------- -----------
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . . . . . $10.10 $10.27 $10.35
----------- ----------- -----------
----------- ----------- -----------
Total Return (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00% 2.70% 3.50%
----------- ----------- -----------
----------- ----------- -----------
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period. . . . . . . . . . . . . . . . . . . . . . . . . . . $3,506 $26,514 $ 13,211
Ratio of operating expenses to average net assets (1)(3) . . . . . . . . . . . 0.00% 0.00% 0.00%
Ratio of operating expenses to average net assets before voluntary
expense reimbursement (1)(3) . . . . . . . . . . . . . . . . . . . . . . . . 6,557.44% 255.71% 471.62%
Ratio of net investment income to average net assets (3) . . . . . . . . . . . 7.88% 0.54% 0.00%
Ratio of net investment income (loss) to average net assets before voluntary
expense reimbursement (1)(3) . . . . . . . . . . . . . . . . . . . . . . . . (6,549.56%) (255.17%) (471.61%)
Net investment income (loss) before voluntary expense reimbursement (1)(3) . . $ 0.00 $ 0.00 $ 0.00
Portfolio turnover rate (4). . . . . . . . . . . . . . . . . . . . . . . . . . 0% 0% 0%
</TABLE>
- ------------
(1) Net investment income is after reimbursement of certain fees and expenses
by Providian Investment Advisors, Inc. (See Note 3 to the financial
statements). Had Providian not undertaken to reimburse expenses related
to the Lifestyle Portfolios and Underlying Funds, net investment income per
share and ratio of operating expenses to average net assets would have been
as noted above.
(2) Total return figures are not annualized for periods less than one year.
Total returns does not reflect expenses that apply to the separate account
or related variable insurance contracts and inclusion of these charges
would result in reducing the total return figures for the period shown.
(3) Annualized for periods less than one year.
(4) Portfolio turnover rates are not annualized.
17
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
<PAGE>
PROVIDIAN SERIES TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period May 9, 1997
(commencement of investment operations) through June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Maximum High Fixed
Appreciation Quality Income
Portfolio Stock Fund Fund
<S> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . . . . . . . . . $10.00 $10.00 $10.00
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (1). . . . . . . . . . . . . . . . . . . . . . . . . . . -- 0.03 0.08
Net realized and unrealized gain on investments. . . . . . . . . . . . . . . . 0.42 0.40 0.04
---------- ---------- ----------
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . 0.42 0.43 0.12
---------- ---------- ----------
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . . . . . $10.42 $10.43 $10.12
---------- ---------- ----------
---------- ---------- ----------
Total Return (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.20% 4.30% 1.20%
---------- ---------- ----------
---------- ---------- ----------
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period. . . . . . . . . . . . . . . . . . . . . . . . . . . $16,102 $10,457,389 $5,074,759
Ratio of operating expenses to average net assets (1)(3) . . . . . . . . . . . 0.00% 0.90% 0.90%
Ratio of operating expenses to average net assets before voluntary
expense reimbursement (1)(3) . . . . . . . . . . . . . . . . . . . . . . . . 344.23% 1.00% 1.26%
Ratio of net investment income to average net assets (3) . . . . . . . . . . . $0.00 2.30% 5.18%
Ratio of net investment income (loss) to average net assets before voluntary
expense reimbursement (1)(3) . . . . . . . . . . . . . . . . . . . . . . . . (344.23%) 2.19% 4.81%
Net investment income (loss) before voluntary expense reimbursement (1)(3) . . $0.00 $0.03 $0.07
Portfolio turnover rate (4). . . . . . . . . . . . . . . . . . . . . . . . . . 0% 0% 139%
Average commission rate paid . . . . . . . . . . . . . . . . . . . . . . . . . -- $0.0598 N/A
</TABLE>
- -------------
(1) Net investment income is after reimbursement of certain fees and expenses
by Providian Investment Advisors, Inc. (See Note 3 to the financial
statements). Had Providian not undertaken to reimburse expenses related to
the Lifestyle Portfolios and Underlying Funds, net investment income per
share and ratio of operating expenses to average net assets would have been
as noted above.
(2) Total return figures are not annualized for periods less than one year.
Total returns does not reflect expenses that apply to the separate account
or related variable insurance contracts and inclusion of these charges
would result in reducing the total return figures for the period shown.
(3) Annualized for periods less than one year.
(4) Portfolio turnover rates are not annualized.
18
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
<PAGE>
PROVIDIAN SERIES TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period May 9, 1997
(commencement of investment operations) through June 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
International Money
Active Market
Fund Fund
<S> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . . . . . . . . . $10.00 $1.00
---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (1). . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05 0.01
Net realized and unrealized gain on investments. . . . . . . . . . . . . . . . 0.37 --
---------- ----------
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . 0.42 0.01
---------- ----------
LESS DISTRIBUTIONS:
Distributions from net investment income . . . . . . . . . . . . . . . . . . . -- (0.01)
---------- ----------
Total distributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (0.01)
---------- ----------
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . . . . . $10.42 $1.00
---------- ----------
---------- ----------
Total Return (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.20% 1.00%
---------- ----------
---------- ----------
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period . . . . . . . . . . . . . . . . . . . . . . . . . . $10,422,925 $2,027,702
Ratio of operating expenses to average net assets (1)(3) . . . . . . . . . . . 1.15% 0.65%
Ratio of operating expenses to average net assets before voluntary
expense reimbursement (1)(3) . . . . . . . . . . . . . . . . . . . . . . . . 1.37% 1.80%
Ratio of net investment income to average net assets (3) . . . . . . . . . . . 3.29% 4.92%
Ratio of net investment income to average net assets before voluntary
expense reimbursement (1)(3) . . . . . . . . . . . . . . . . . . . . . . . . 3.07% 3.77%
Net investment income (loss) before voluntary expense reimbursement (1)(3) . . $0.05 $0.01
Portfolio turnover rate (4). . . . . . . . . . . . . . . . . . . . . . . . . . 11% N/A
Average commission rate paid . . . . . . . . . . . . . . . . . . . . . . . . . $0.0145 N/A
</TABLE>
- --------------
(1) Net investment income is after reimbursement of certain fees and expenses
by Providian Investment Advisors, Inc. (See Note 3 to the financial
statements). Had Providian not undertaken to reimburse expenses related to
the Lifestyle Portfolios and Underlying Funds, net investment income per
share and ratio of operating expenses to average net assets would have been
as noted above.
(2) Total return figures are not annualized for periods less than one year.
Total returns does not reflect expenses that apply to the separate account
or related variable insurance contracts and inclusion of these charges
would result in reducing the total return figures for the period shown.
(3) Annualized for periods less than one year.
(4) Portfolio turnover rates are not annualized.
19
THE NOTES TO THE FINANCIALS ARE AN INTEGRAL PART OF THIS REPORT.
<PAGE>
PROVIDIAN SERIES TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 (UNAUDITED)
NOTE 1 - ORGANIZATION
Providian Series Trust (the "Trust") was organized as a Massachusetts business
trust on October 22, 1996 and is registered under the Investment Company Act of
1940 and the Securities Act of 1933, as a diversified, no-load, open-end
management investment company. The Trust is a "series type" of mutual fund
which issues separate classes (or series) of stock, each of which represents a
separate diversified portfolio of investments. The Trust is currently composed
of nine series ( the "Series") which consist of five investment portfolios
(Capital Preservation Portfolio, Income Oriented Portfolio, Growth and Income
Portfolio, Capital Growth Portfolio, and Maximum Appreciation Portfolio -
collectively, the "Investment Portfolios") and four underlying funds (Fixed
Income Fund, High Quality Stock Fund, International Active Fund, and Money
Market Fund - collectively, the "Underlying Funds") with each Fund having
differing investment objectives and policies. The Investment Portfolios seek to
achieve their investment objectives by investing within specific ranges among
the Underlying Funds. On February 3, 1997, Providian Life and Health Separate
Account V ( the "Separate Account") made an initial purchase of shares of
beneficial interest in the amount of 5,000 shares of the Money Market Fund. On
May 9, 1997, the Separate Account purchased an additional 1,995,000 shares of
the Money Market Fund, 1,000,000 shares of the High Quality Stock Fund and
International Active Fund, and 500,000 shares of the Fixed Income Fund. Shares
of the Investment Portfolios are offered to separate accounts of insurance
companies to fund variable annuity contracts. The shares of the Underlying
Funds are purchased by the Investment Portfolios and are offered to qualified
plans and separate accounts of insurance companies to fund variable annuity
contracts. As of June 30, 1997, the only activity for the Income Oriented
Portfolio was the initial purchase of one share by Providian Investment
Advisors, Inc. on May 9, 1997.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements.
ESTIMATES - The preparation of the financial statements in conformity with
generally accepted accounting principles may require management to make certain
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of these financial statements and the reported amounts
of increases and decreases in net assets from operations during the reporting
period. Actual results could differ from those estimates.
VALUATION OF INVESTMENTS - Securities held by the Funds (other than the Money
Market Fund) that are traded on a national securities exchange are valued on
the basis of the last sale price as of the close of business on the day the
securities are being valued, or lacking any sales, at the last quoted bid
price. Bonds and other fixed income securities with maturities greater than
60 days at the time of purchase, are valued by a pricing service. Securities
and assets for which market quotations are not readily available are valued
at fair value as determined in good faith by or under the direction of the
Board of Trustees of the Trust. Short-term securities and debt securities
with a remaining maturity of 60 days or less, are valued at amortized cost
which approximates market value. The Money Market Fund by the approval of
the Board of Trustees, utilizes the amortized cost method for valuing
securities, whereby all investments are valued by reference to their
acquisition cost as adjusted for amortization of premium or accretion of
discount.
FOREIGN SECURITIES - Foreign securities traded on a recognized securities
exchange are valued at the last sale price in the principal market where they
are traded, or if closing prices are unavailable, at the last bid price
available prior to the time a Fund's net assets value is determined. Foreign
prices are furnished by quotation services expressed in the local currency's
value and translated into the U.S. dollars at the current rate of exchange.
20
<PAGE>
NOTE 2 (CONTINUED)
REPURCHASE AGREEMENTS - The Trust may enter into repurchase agreements with
institutions that the Trust's investment advisor, Providian Investment
Advisors, Inc. has determined are creditworthy pursuant to criteria adopted
by the Board of Trustees. In connection with transactions in repurchase
agreements, the Trust's custodian takes possession of the underlying
collateral securities, the value of which is at least equal to the principal
amount, including interest, of the repurchase agreement. To the extent that
the term of any repurchase agreement exceeds one business day, the value of
the collateral is marked-to-market on a daily basis to ensure the adequacy of
the collateral. In the event of default of the obligation to repurchase, the
Trust has the right to liquidate the collateral and apply the proceeds in
satisfaction of the obligation. Under certain circumstances, in the event of
default or bankruptcy by the other party to the agreement, realization and/or
retention of the collateral or proceeds may be subject to legal proceedings.
INVESTMENT TRANSACTIONS - Investment security transactions are accounted for on
the date the securities are purchased or sold. Realized gains and losses from
security transactions are determined on an identified cost basis.
INVESTMENT INCOME - Dividend income is recorded on the ex-dividend date.
Interest income, which includes accretion of original discount, is accrued as
earned. Investment income is recorded net of foreign taxes withheld where
recovery of such taxes is uncertain.
FOREIGN CURRENCY TRANSLATIONS - The records of the Trust are maintained in
U.S. dollars. Investment securities and other assets and liabilities
denominated in a foreign currency are translated into U.S. dollars based on
current exchange rates supplied by a quotation service. The affects of
changes in foreign currency exchange rates on investments in securities are
included in net realized and unrealized gain or loss on investments in the
statement of operations .
Reported net realized gains and losses on foreign currency transactions
represent net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, currency gains and losses realized
between the trade and settlement dates on security transactions, and the
difference between the amount of net investment income accrued and the U.S.
dollar amount actually received. Net unrealized foreign exchange gains and
losses arise from changes in the value of receivables and payables resulting
from changes in exchange rates.
FORWARD CURRENCY CONTRACTS - A forward foreign currency contract ("Forward")
is an agreement between two parties to buy and sell a currency at a set price
on a future date. The market value of the Forward fluctuates with changes in
currency exchange rates. The Forward is marked-to-market daily and the
change in the market value is recorded by a Fund as an unrealized gain or
loss. Realized gains and losses are recognized when contracts are settled and
are reflected in the statement of operations. The Fund could be exposed to
risk if a counter-party is unable to meet the terms of the contract or if the
value of the currency changes unfavorably. The Fund may enter into these
contacts for the purpose of hedging against foreign exchange risk arising
from the Fund's investment or anticipated investment in securities
denominated in foreign currencies. The Fund also may enter into these
contracts for purpose of increasing exposure to a foreign currency to hedge
against adverse changes in the value of another currency when exchange rates
between the two currencies are positively correlated.
EXPENSES - Expenses directly attributable to a Investment Portfolio or
Underlying Fund are charged to that Portfolio or Fund. Expenses not directly
attributable to a Portfolio or Fund are allocated among the affected Portfolios
and Funds. Costs related to the organization and registration of the Trust have
been funded by Providian Corporation and it's subsidiaries. The Trust will not
reimburse Providian for these organizational costs.
DISTRIBUTIONS TO SHAREHOLDERS - Each of the Investment Portfolios and Underlying
Funds (except the Money Market Fund) declares and distributes dividends from net
investment income and distributes its net realized capital gains, if any, at
least annually. The Money Market Fund declares dividends daily and distributes
monthly. All distributions are paid in shares of the relevant Portfolio/Fund at
net asset value. Income and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles. These differences are primarily due to differing
treatments for market discount, foreign currency transactions, losses deferred
due to wash sales, "post October 31 losses" and excise tax regulations.
Distributions are recorded on the ex-dividend date.
21
<PAGE>
NOTE 2 (CONTINUED)
FEDERAL INCOME TAXES - Each Investment Portfolio and Underlying Fund is
treated as a separate entity for federal tax purposes. Each Investment
Portfolio and Underlying Fund intends to qualify each year as a regulated
investment company under Subchapter M of the Internal Revenue Code of 1986.
By so qualifying, each Investment Portfolio and Underlying Fund will not be
subject to federal income taxes to the extent that they distribute all of
their taxable income, including realized capital gains, for the fiscal year.
In addition, by distributing substantially all of their net investment
income, capital gains and certain other amounts during the calendar year, the
Investment Portfolios and Underlying Funds will not be subject to a federal
excise tax.
NOTE 3 - AGREEMENTS AND FEES
Providian Investment Advisors, Inc., (the "Adviser"), a wholly owned
subsidiary of Providian Corporation, a wholly owned indirect subsidiary of
AEGON N.V., has been retained under an Investment Advisory Agreement ( the
"Agreement") with the Trust, in general to supervise the management and
investment program of the Trust. In addition, the Adviser generally manages
the affairs of the Trust subject to the supervision of the Board of Trustees.
The Adviser does not receive an investment management fee for the advisory
and asset allocation services it provides to the Investment Portfolios.
As full compensation for its services under the Agreement, each Underlying Fund
will pay the Adviser a monthly fee at the following rates based on the average
daily net assets of each Fund:
High Quality Stock Fund 0.65%
Fixed Income Fund 0.65%
International Active Fund 0.90%
Money Market Fund 0.40%
Under an Advisory Agreement with each Investment Portfolio and Underlying Fund,
the Adviser has agreed to waive all operating expenses of each Portfolio and to
limit the operating expenses of each Underlying Fund so that the ratio of
expenses (excluding advisory fees) to net assets on an annual basis incurred
does not exceed 0.25%. Expenses in excess of such amount will be assumed by the
Adviser until the earlier of the end of three years after commencement of
operations or the termination by the Trustees or the Funds' or the Portfolios'
shareholders, but not the Adviser, of the Trust's Advisory Agreement with the
Adviser. For the period ended June 30, 1997, Providian Investment Advisors,
Inc. had agreed to reimburse the Trust $23,990 for expenses in excess of the
voluntary expense limitations, of which $19,308 was owed to the Trust as of June
30, 1997.
Providian Investment Advisors, Inc. has entered into a Sub-Advisory Agreement
with Atlanta Capital Management, L.L.C. to serve as sub-adviser to the
Investment Portfolios. Subject to the supervision and direction of the Board of
Trustees, they will determine how each Investment Portfolio's assets will be
invested in the Underlying Funds. Atlanta Capital also serves as sub-adviser of
the High Quality Stock Fund and the Fixed Income Portfolio for which it receives
a fee equal to 0.50% annually on assets up to $25 million, 0.40% annually on
assets above $25 million and up to $50 million, and 0.30% annually on assets
above $50 million.
Providian Investment Advisors, Inc. has entered into a Sub-Advisory Agreement
with Blairlogie Capital Management to serve as sub-adviser to the International
Active Fund. As compensation for its services, the Adviser pays Blairlogie for
which it receives a fee equal to 0.65% annually on assets up to $50 million, and
0.50% annually on assets above $50 million.
Providian Investment Advisors, Inc. has entered into a Sub-Advisory Agreement
with Federated Investment Counseling to serve as sub-adviser to the Money Market
Fund. As compensation for its services, the Adviser pays Federated for which it
receives a fee equal to 0.25% annually on assets up to $75 million, and 0.20%
annually on assets above $75 million
Each Trustee of the Trust who is not an interested person of the Trust or
Adviser or Sub-Adviser receives $1,500 for each Trustees' meeting attended.
22
<PAGE>
NOTE 4 - INVESTMENT TRANSACTIONS
Purchases and proceeds from sales and maturities of investments, excluding
short-term securities, for the period ended June 30, 1997 were as follows:
<TABLE>
<CAPTION>
Non-U.S. U.S. Non-U.S. U.S.
Government Government Government Government
Purchases Purchases Sales Sales
--------------------------------------------------------
<S> <C> <C> <C> <C>
Capital Preservation Portfolio . . . . . $3,508 $ -- $ -- $ --
Growth & Income Portfolio. . . . . . . . 26,274 -- -- --
Capital Growth Portfolio . . . . . . . . 13,005 -- -- --
Maximum Appreciation Portfolio . . . . . 16,208 -- 404 --
High Quality Stock Fund. . . . . . . . . 9,109,706 -- -- --
Fixed Income Fund. . . . . . . . . . . . -- 7,451,195 -- 3,757,266
International Active Fund. . . . . . . . 10,479,897 -- 722,223 --
Money Market Fund. . . . . . . . . . . . -- -- -- --
</TABLE>
The identified cost of investments in securities and repurchase agreements owned
by the Trust for federal income tax purposes and their respective gross
unrealized appreciation and depreciation at June 30, 1997 were as follows:
<TABLE>
<CAPTION>
Net
Gross Gross Unrealized
Identified Unrealized Unrealized Appreciation
Cost Appreciation (Depreciation) (Depreciation)
--------------------------------------------------------
<S> <C> <C> <C> <C>
Capital Preservation Portfolio . . . . . $ 3,508 $ -- $ (3) $ (3)
Growth & Income Portfolio. . . . . . . . 26,274 240 -- 240
Capital Growth Portfolio . . . . . . . . 13,005 200 -- 200
Maximum Appreciation Portfolio . . . . . 15,815 287 -- 287
High Quality Stock Fund. . . . . . . . . 10,062,849 469,094 (76,714) 392,380
Fixed Income Fund. . . . . . . . . . . . 4,991,480 16,848 (5,785) 11,063
International Active Fund. . . . . . . . 9,892,499 514,191 (157,083) 357,108
Money Market Fund. . . . . . . . . . . . 2,020,000 -- -- --
</TABLE>
The aggregate cost of each Portfolio's investments was the same for book and
federal income tax purposes at June 30, 1997.
23
<PAGE>
NOTE 5 - SHAREHOLDER TRANSACTIONS:
Transactions in shares and dollars were as follows for the period May 9, 1997*
through June 30, 1997:
<TABLE>
<CAPTION>
CAPITAL PRESERVATION PORTFOLIO GROWTH & INCOME PORTFOLIO
SHARES DOLLARS SHARES DOLLARS
------ ------- ------ -------
<S> <C> <C> <C> <C>
Shares sold. . . . . . . . . . . . 347 $ 3,505 2,582 $ 26,267
Shares issued to shareholders in
reinvestment of dividends. . . . -- -- -- --
Shares redeemed. . . . . . . . . . -- -- -- --
------------- ------------- ------------- -------------
Net increase . . . . . . . . . . . 347 $ 3,505 2,582 $ 26,267
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
<CAPTION>
CAPITAL GROWTH PORTFOLIO MAXIMUM APPRECIATION PORTFOLIO
SHARES DOLLARS SHARES DOLLARS
------ ------- ------ -------
<S> <C> <C> <C> <C>
Shares sold. . . . . . . . . . . . 1,277 $ 13,011 1,584 $ 16,208
Shares issued to shareholders in
reinvestment of dividends. . . . -- -- -- --
Shares redeemed. . . . . . . . . . -- -- (39) (404)
------------- ------------- ------------- -------------
Net increase . . . . . . . . . . . 1,277 $ 13,011 1,545 $ 15,804
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
<CAPTION>
HIGH QUALITY STOCK FUND FIXED INCOME FUND
SHARES DOLLARS SHARES DOLLARS
------ ------- ------ -------
<S> <C> <C> <C> <C>
Shares sold. . . . . . . . . . . . 1,003,053 $ 10,031,283 501,538 $ 5,015,518
Shares issued to shareholders in
reinvestment of dividends. . . . -- -- -- --
Shares redeemed. . . . . . . . . . (31) (324) -- --
------------- ------------- ------------- -------------
Net increase . . . . . . . . . . . 1,003,022 $ 10,030,959 501,538 $ 5,015,518
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
<CAPTION>
INTERNATIONAL ACTIVE FUND MONEY MARKET FUND
SHARES DOLLARS SHARES DOLLARS
------ ------- ------ -------
<S> <C> <C> <C> <C>
Shares sold. . . . . . . . . . . . 1,000,765 $10,007,821 2,008,633 $ 2,008,633
Shares issued to shareholders in
reinvestment of dividends. . . . -- -- 14,326 14,326
Shares redeemed. . . . . . . . . . (8) (81) (257) (257)
------------- ------------- ------------- -------------
Net increase . . . . . . . . . . . 1,000,757 $10,007,740 2,022,702 $ 2,022,702
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
* Commencement of investment operations.
24
<PAGE>
NOTE 6 - FORWARD FOREIGN CURRENCY CONTRACTS
At June 30, 1997, the outstanding forward exchange currency contracts, which
contractually obligate the Trust to deliver currencies at a specified date, were
as follows:
INTERNATIONAL ACTIVE FUND
U.S. DOLLAR
COST ON U.S. DOLLAR UNREALIZED
CURRENCY CURRENCY SETTLEMENT ORIGINATION CURRENT APPRECIATION/
PURCHASED SOLD DATE DATE VALUE (DEPRECIATION)
- -------------------------------------------------------------------------------
JPY USD 07/16/1997 $ 440,141 $ 436,681 $ 3,460
GLOSSARY OF TERMS
- -----------------
JPY - Japanese Yen
USD - United States Dollar
25
<PAGE>
PROVIDIAN SERIES TRUST
--------------------
TRUSTEES AND EXECUTIVE OFFICERS
Thomas J. Hartlage, TRUSTEE, CHIEF EXECUTIVE OFFICER AND PRESIDENT*
David L. Eager, TRUSTEE
Jesse A. Holshouser III, TRUSTEE
William T. Mills III, TRUSTEE
Kirk Buese, TRUSTEE *
Michael Ayers, CHIEF FINANCIAL OFFICER
Kimberly A. Scouller, SECRETARY
Steve Zeitz, TREASURER
Michael Herp, VICE PRESIDENT
* INTERESTED TRUSTEE
--------------------
Ernst & Young LLP, INDEPENDENT AUDITORS
Jorden Burt Berenson & Johnson LLP, LEGAL COUNSEL
Providian Investment Advisors, Inc., INVESTMENT ADVISOR
- --------------------------------------------------------------------------------
The information contained in this report is intended for general informational
purposes only. This report is not authorized for distribution to prospective
investors unless preceded or accompanied by current Trust and Separate Account
prospectuses which contain important information concerning the Trust, the
Company, and its current public offering of variable annuity contracts.
- --------------------------------------------------------------------------------
26
